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District proposes lower maximum property tax levy; CFO cites valuation gains and end of early retirement costs
Summary
CFO Adam Kurth told the board the district will publish a preliminary maximum levy of $16.10 per $1,000 taxable valuation for FY26, a decline driven largely by increased property valuations and the end of a multi‑year early retirement program.
The Iowa City Community School District presented its preliminary certified budget and proposed maximum property tax levy at the Feb. 25 board meeting. CFO Adam Kurth said the district proposes a total maximum levy of $16.10 per $1,000 of taxable valuation for fiscal year 2026.
Kurth told the board the proposed decline in the levy follows two main factors: an increase in taxable property valuations in the district (a 3.2% valuation increase cited in his slides) and the conclusion of a multi‑year early retirement program that had previously driven levy growth. "One of the big drivers for the decline in our rate is the fact that we had very aggressive early retirement programs funded out of the management fund," Kurth said.
Kurth said he used a 2.5% supplemental state aid (SSA) assumption for the certified budget maximum because the certified‑rate process establishes an upper bound; the district does not want to publish a maximum that would prevent funding higher than expected SSA if the state adopts a larger increase. He also warned that the state’s sample card assumes a 10% valuation increase when showing tax impacts on a $100,000 home, which can make the mailed example appear to show a higher tax bill despite a lower levy. "This assumes a 10% valuation increase. So yes, if my home increased 10% in value I would owe more in taxes," Kurth said, adding that the district does not expect a valuation jump that large for most properties.
Kurth listed other key inputs: certified enrollment of 14,550.6 students, a roughly 15% expected increase in property and liability insurance costs, and an unchanged IPERS contribution rate for FY26 as set by the state. He also noted the district’s 2017 general obligation bond continues to add $1.67 to the levy each year.
Kurth said the board will publish the maximum rate to the Johnson County Auditor and the Department of Management after the meeting, publish the first hearing date and the mailed tax card, hold a budget hearing and a second certified budget hearing in April, and adopt the final budget before the April 30 deadline, per state timelines.
No formal board action setting the final levy occurred at the Feb. 25 meeting; members asked clarifying questions of staff.
