Though levy is unchanged, C.R. homeowners will pay more taxes

CEDAR RAPIDS - The City Council Tuesday night unanimously approved a new budget for the fiscal year beginning July 1 that will see residential property owners pay an average of 4.5 percent more in property taxes for the city's portion of the bill.

Though the tax levy is $15.22 per $1,000 of taxable value, the same as this year's rate, the owner of a home assessed at $100,000 will pay $772 in Cedar Rapids property taxes next year, up from $739 this year. The change comes from the fact that the state's rollback formula - which determines the percentage of a residential property's value that's subject to taxation - is increasing from 48.53 percent to 50.75 percent.

In the Cedar Rapids school district, the city and the school district each receive about 40 percent of the revenue from every property tax bill, while Linn County's share is another 16 percent. Other entities, including Kirkwood Community College and the City Assessor's Office, receive the remainder.

The council's unanimous vote came after a public hearing at which just one person, longtime critic of council spending Carol Martin, spoke.

Cedar Rapids councils over the years have generally held several public budget-building sessions leading up to their budget vote, but this year members held just one. Mayor Ron Corbett that's all that was needed because City Manager Jeff Pomeranz did “a great job” putting the budget together.

Pomeranz has called it a “hold-the-line” budget because it holds the tax rate in place and adds just 1.5 positions to a work force of 1,255 full-time employees, 51 regular part-time ones and additional seasonal employees, according to city figures. Planned spending from the general operating fund totals $104.8 million.

The budget calls for $38.5 million in new bond debt, including $10 million for streets, $11 million for the Convention Complex project and $12 million for a parking ramp near the new federal courthouse. Revenue generated by the parking ramp and the city-owned hotel attached to the Convention Complex will help pay off that debt.

Like other large Iowa cities, Cedar Rapids will pay an amount equal to 26.12 percent of police and fire salaries into the state public safety pension system. That $6 million total is up $600,000 from the current year, when the required contribution was 24.76 percent. Revenue from traffic enforcement cameras will help cover the expense.

The budget also increases city utility rates - water, wastewater and sanitary sewer, solid waste and recycling, and storm sewer - by 4.4 percent, or $38.52 a year.