City Budgets Should Come Into Focus Soon
Iowa lawmakers sent Governor Kim Reynolds a bill last week to prevent a $133 million residential property tax increase from taking effect.
The lost tax revenue from Senate File 181 will result in the reduction of services in many Iowa cities — as much as $39 million in tax revenue across the state, according to the Legislative Services Agency.
For cities like New Hampton and Charles City, early estimates indicated the adjustment could mean a loss of about $25,000 in operating funds for Fiscal Year 2023-24. While it may not seem like alot in the overall budget picture, New Hampton Mayor Bobby Schwickerath says it has a trickle down effect.
Charles City Administrator Steve Diers told the City Council last week that they’ll need to wait a little longer before knowing the final impact of their financial shortfall for the new fiscal year starting July 1st.
Diers acknowledges that reducing property taxes is good for taxpayers, but it means less money for city services, which could lead to cuts.
