Cedar Rapids city budget proposal takes a ‘hold-the-line’ approach, does not plan to spend more than it takes in

CEDAR RAPIDS — The property tax levy for the City of Cedar Rapids would increase next year under a budget proposal discussed by city officials Monday afternoon.

The current levy of $16.46620 per $1,000 of taxable valuation would increase 19 cents, to $16.6562 per $1,000. The increase includes 22 cents for the city’s flood control system and a three-cent decrease in other levies.

City property taxes on a home with an assessed value of $200,000 would increase by $54 for the year, city officials said.

The proposed tax levy’s impact on commercial/industrial property valued at $1 million shows an increase of 1.35 percent, or $186 for the year.

Cedar Rapids city officials met at the downtown DoubleTree by Hilton hotel Monday to review the proposed budget. City Manager Jeff Pomeranz spoke about the proposal and a 36-page budget document that explains the plan.

A first public hearing on the budget will be held March 25. The second public hearing will be April 22, followed by a council vote to adopt the budget. The budget is for Fiscal Year 2026, from July 1, 2025 to June 30, 2026.

Cedar Rapids' general fund budget will increase $5.1 million, or 3 percent under the proposal. The "balanced general fund" budget is $168,620,211, compared to $163,551,398 in the current fiscal year. About 47 percent of the general fund income comes from taxes. It's the largest income source for the general fund.

"Our revenues and expenditures are balanced. We're not spending more than we are taking in," Pomeranz told The Gazette. Accomplishing that was not easy, given the rise in costs for nearly everything, he noted.

"We are not relying on reserves. We have $50 million in reserves. We used a hold-the-line approach on the budget. (It contains) no new personnel. We're not filling vacant positions. We'll continue looking at more ways to get the job done with limited (financial) growth," Pomeranz said.

Cedar Rapids' total taxable valuation — excluding tax increment financing districts — increased 4.81 percent to $7.8 billion, up from $7.45 billion this fiscal year. That includes all properties in the city.

The city's largest general fund expense is personnel. The proposed personnel budget for fiscal year 2026 is $119,862,564, up 5 percent, or $6,165,006 from the current fiscal year.