Establishing municipality budgets for the 2023-24 fiscal year continues to be held up as state lawmakers debate setting the rollback percentage on property taxes.
Charles City City Administrator Steve Diers says reducing property taxes is good for taxpayers, but it means less money for city services.
With what the City gets from property taxes expected to go down, Diers says the City has already decided not to fill some positions, including two in the fire department.
The City of New Hampton is also expected to have less money to operate City services in the next fiscal year starting July 1st. Still, Mayor Bobby Schwickerath says they’ll hold their public hearing on the budget at their next City Council meeting Monday (02.20) night.
Currently, property taxes are assessed at 54% of their assessed valuation. The Iowa legislature could reduce that number by one to two percentage points, which could leave the cities of Charles City and New Hampton about $25,000 less in operating revenue for the next fiscal year.