Coralville tax rate won't change, but residents will still pay more

Starting July 1, homeowners will pay slightly higher property taxes even though the city will maintain its current tax rate.

The tax rate of $13.53 per $1,000 of taxable valuation will continue during fiscal 2012, but the state's rollback formula - which determines the percentage of a residential property's value that's subject to taxation - is increasing from 46.91 percent to 48.53 percent.

That means the owner of a home assessed at $100,000 will pay $657 in Coralville property taxes next year, up from $635 this year.

The city's projected total budget is $16.1 million, a 7 percent increase over fiscal 2011. Revenue from property taxes makes up about 56 percent of the general fund - just under $9 million.

The largest expenditure is estimated to be culture and recreation, at 39 percent. Included in that estimate is the new Coralville Center for the Performing Arts, set to open in August. Finance Officer Terry Kaeding said the charge for services relating to the building will offset its cost.

The budget will be adopted after a public hearing at 7 p.m. March 8, when public hearings for two bond issues also will be held.

A $4 million general obligation bond would refinance previous bonds, Kaeding said. No new money is involved, but the move will save the city around $220,000 in interest if approved.

The second bond - a general obligation essential corporate purpose bond not to exceed

$3 million - would be used to fund an Oakdale Boulevard extension, a new Parks & Transit facility, and parks and recreation improvements.