Water rates, other fees to rise in Coralville’s budget

CORALVILLE — The Coralville City Council has unanimously approved the fiscal 2026 city budget that slightly decreases the property tax rate but increases utility charges and other fees.

For the fiscal year that begins July 1, Coralville’s general fund budget will increase roughly 2.7 percent, up from about $33.18 million to about $34.49 million.

“...(G)eneral fund expansions reflect other costs necessary to provide services in a growing community, and include things like three new police vehicles and equipment, new parking ticket software and license plate read system (and) access for future fire vehicle replacement,” Ann Hester, Coralville director of finance, said at a City Council meeting last week.

The city is creating a full-time English language learning instructor position at the public library and budgeting for an increase in costs of library materials, including laptops.

The property tax levy is set to decrease to $14.527 per $1,000 of taxable valuation, from $14.55 in the current fiscal year. However, Coralville homeowners still will see an increase in their residential property tax bills due to the state raising the residential rollback rate from 46.34 to 47.43 percent. That means property tax rates will be applied to a larger portion of a property’s value.

City staff and council members noted that upcoming city budgets could look different depending on proposed property tax reform legislation under consideration in the Iowa Legislature. The latest version of that proposal, Senate Study Bill 1227 and House Study Bill 328, would end the rollback rate, institute a $50,000 homestead exemption for all homeowners and have the state pick up some education costs now supported by local property taxes.

“...We're facing a lot of unknowns coming out of Des Moines that's going to affect every municipality in the future. That's something that we have to keep in our radar. But I guess a lot of things in the future are unknown,” said City Council member Rich Vogelzang.

Utility rates and user fee changes

City water rates are set to increase for the fourth straight year for both residential and commercial customers.

Residential rates will increase from $8.29 per month, for the first 200 cubic feet of water, to $8.75 per month. Additionally, each additional 100 cubic feet of water will cost $2.25, up from $2.14.

The city has also approved a 2 percent utility franchise fee, up from 1 percent, for the first time since fiscal 2011. The fees are expected to generate between $325,00 and $350,000 in revenue to be put toward general fund expenditures.

Annual yard waste sticker fees are set to increase from $25 to $40 and yard waste bag fees will increase from $1 to $1.50.

Overnight and continuous parking rates in the city’s north ramp and south lot will increase from $8 to $10 each time. Additionally, the monthly park and ride fee will increase from $50 to $55.

Comments: megan.woolard@thegazette.com

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