Waterloo finance director: proposed FY2026 levy rate will fall, but homeowners face small tax rise due to state rollback

Waterloo Finance Director Bridget Wood told the City Council at a special session that the city will certify a lower FY2026 levy rate than the figure published in notices, but many homeowners will still see a small increase in their property tax bills because the state’s rollback percentage rose.

Wood said the city had published a maximum levy rate of 22.68, but that the city will actually certify a levy near $21.79. “However, it would be approximately $11 a year increase in total property tax on a hundred thousand dollar house due to the rollback going up from 46% to 47%,” Wood said. She also described the state-required notice forms as “a little confusing.”

The discrepancy matters because the state Department of Revenue’s rollback determines the taxable value used to compute each homeowner’s bill. Council and staff explained the rollback—set by the state—is why an individual homeowner’s tax bill can rise even when the city’s certified levy rate is lower.

Wood described public engagement on the draft budget: the city’s Balancing Act budget simulator attracted 3,658 page views and 15 submissions with an average time of 16 minutes, 30 seconds. Submissions favored increased library funding, asked for better communication, and suggested cuts to police or fire…