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Iowa City holds required public hearing on proposed property tax levy; total levy unchanged
Summary
Council held a state-required April 1 public hearing on the city's proposed fiscal 2026 property tax levy. Finance staff said the total levy would remain flat from FY25; two residents raised concerns about rising home valuations and procurement transparency. No council action was taken at the meeting.
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Iowa City held a state-required public hearing April 1 on the proposed property tax levy for the fiscal year ending June 30, 2026. Finance staff told the council the city's total property tax levy is unchanged from last year and that the special meeting was convened only to take public comment; no policy action was taken.
Nicole Davies, the city's finance director, told the council the hearing is required by state law and emphasized the meeting would not produce any council votes on the levy. "We're required to have a special meeting just on the proposed property tax levy to take public comment. No action is taken at this meeting," Davies said. She said the city's total property tax levy is flat from last year but that staff had made small adjustments between levy subcomponents: a decrease to the employee benefits levy that is offset by an increase to the debt service levy.
The hearing drew two in-person commenters. Kaye Orchard, an Iowa City resident, said she and neighbors received notices showing large increases in assessed values and expressed concern about tax burdens and local services. "We received our notice that increases our value of our house by over $20,000," Orchard said, adding that a neighbor who moved in a year ago saw a $32,000 increase. Orchard questioned whether rising valuations and taxes matched the city's visible services and commercial vitality, citing businesses leaving Sycamore Mall and other local changes.
Dennis Orchard, who said he recently retired to Iowa City after operating a manufacturing plant, asked the council about the city's procurement practices and whether procurement results and cost-savings goals are published. "I'm just curious what, how our procurement works in Iowa City," Dennis Orchard said. "Maybe you do and I'm not aware of it." City staff did not provide a procurement policy document or additional procurement detail during the hearing.
The presiding official opened the hearing for public comment and, after the two speakers, closed the hearing. The council then moved to adjourn. A motion to adjourn was made by Thompson and seconded by Alter; the motion carried on a voice vote.
Because the hearing was procedural and no ordinance, budget adoption, or levy rate was voted on at the meeting, the council took no substantive action and left its proposed levy information for later meetings where formal budget or levy votes would occur.

