Council Bluffs approves slight cut to city property tax levy; homeowners likely to see small increase in bills

Council Bluffs city officials held a public hearing and approved a resolution setting the city property tax levy for the fiscal year ending June 30, 2026, at 17.69, down from 17.85, the presiding city official said.

The change to the levy came after city officials reviewed a budget summary and heard public comments about a state-issued property tax notice that several residents called confusing. The city official said the overall taxable valuation in Council Bluffs increased about 5.3% and that, because of valuation changes and the state's rollback calculation, many homeowners will likely see their city-tax portion rise by roughly 1.4 percent despite the lower levy.

Why it matters: Property taxes fund most city services. City officials told residents the city expects to collect roughly $62 million to $63 million in property taxes for the coming fiscal year, with about $46,955,000 allocated to public safety. Officials also said 37.1% of total property taxes goes to the Council Bluffs School District, while approximately 17% goes to Pottawattamie County and about 3.4% to Iowa Western Community College.

During the public comment period, resident Robert Donahue of Stutzman Street criticized the state form used to notify taxpayers as “very difficult to read” and questioned a hypothetical example on the back of the notice that he said showed a 10% jump in valuation. “This is a non assessment year,” Donahue said, adding that most individual house valuations do not increase by 10% absent physical changes.

City officials explained the mailed form is produced by the State of Iowa and populated by the county auditor, and they offered to run residents’ specific addresses through a city calculator to show the city-only portion of any change. The presiding city official instructed residents that Brandon Garrett could pull up individual properties during the meeting or that the same calculator is available on the city’s website under Government → Finance → Property Tax Levy.

Officials also discussed pending state legislation intended to change how property taxes are calculated. The presiding city official said a proposal introduced by State Rep. Dan Dawson and modeled by the Iowa League of Cities and PFM would eliminate the current rollback, cap annual growth, and shift how valuations and levy rates interact; the official said the city had not yet fully assessed the proposal’s effects and that any change would require legislative approval.

Procedure and timing: The council closed the public hearing, and the presiding city official made a motion to adopt the levy change; a second was recorded and the council voted in favor by voice. City staff reminded residents that property tax payments are due in March and September and that the city operates on a fiscal year beginning July 1.

Residents who want a city-only estimate were directed to provide their address to staff during or after the meeting, or to use the online calculator. City officials said they expect the state to continue discussions about property tax reform that could change the calculation and taxpayer notices next year.