Iowa City budget proposal would keep tax rate flat

IOWA CITY – A proposed budget for the Iowa City school district keeps the property tax rate flat, although property owners would still pay more in taxes.

That would put the tax rate at $14.69 per $1,000 of assessed value for fiscal year 2012, which starts July 1.

The owners of a $100,000 home would pay $712.89 in school taxes next year, up from $689.08 this year. The increase comes because the state-set rollback, which is the percentage of a residential property's value that is subject to taxation, will go up nearly 2 percentage points to 48.53 percent next fiscal year.

The school board is to receive the budget proposal at its meeting Tuesday night.

District administrators have forecast a difficult budget that likely will include cuts.

Of particular concern is a proposal by Republican state lawmakers to offer 0 percent allowable growth, which is the amount of new state money districts receive. Democrats have said they are aiming for 2 percent allowable growth.

With the Legislature still in session, the Iowa City school district's proposed budget is based on 0 percent allowable growth. Once the draft budget is published, the school board cannot increase the property tax rate but could lower it. The board is scheduled to vote on the budget April 14.

Because its enrollments is projected to increase, the school district estimates it still will get $633,660 in new state money.

The Iowa City school district has the lowest tax rate this year among the state's eight urban school systems, according to information provided by the district. The seventh-lowest is Cedar Rapids, at $15.17.