Proposed 2025 property tax levy to impact services, homeowner finances and local transit

IOWA CITY, Iowa — The fiscal year 2025 proposed property tax levy could have significant implications for municipal services and homeowners' finances.

Key highlights of the proposed property tax levy changes include:

1. Increased funding for local services: The rise in the Consolidated General Fund property tax would add resources for essential services like police, fire and road maintenance.
2. Enhanced public transit: The increase in funding for the operation and maintenance of public transit. That could translate to more frequent buses, extended routes and easier commutes.
3. Higher costs for insurance and employee benefits: There are significant increases in property taxes allocated to liability, property, self-insurance, FICA, IPERS and other employee benefits. This could mean tighter budgets for some businesses, but it ensures city services stay reliable and helps take care of employees.
4. Potential tax decrease for property owners: The proposed changes could lead to a slight decrease in property taxes for homes and businesses valued at $100,000. That means a bit more money in residents' pockets at the end of the day.

The Iowa City City Council will hold a public hearing on the proposed property tax levy at 4 p.m. on Tuesday, April 2, 2024, at Emma Harvat Hall in City Hall, 410 E. Washington St.

During the public hearing, any resident or taxpayer can voice their objections or approval for the proposed tax levy.

After the public hearing, the Council will set the date and time for a public hearing on the fiscal year 2025 proposed city budget and authorize the City Clerk to publish the notice of that public hearing.

For detailed budget information, visit www.icgov.org/budget.