Cedar Falls staff propose $12.29 max levy for FY27; council approves sending notices and schedules April hearing

City staff recommended that the City Council set a proposed maximum city property tax rate of $12.29 for fiscal year 2027 and direct staff to include that rate in the required property‑tax notices mailed to owners. Jen (staff) told the Committee of the Whole that the proposed max rate — up 9¢ from the current $12.20 — would appear in letters the county mails in March and that the full FY27 budget will be finalized through hearings in April.

"What's being proposed tonight is a rate of... $12.29," Jen said, explaining that FY27 (July 1, 2026–June 30, 2027) is a reassessment year and Cedar Falls’ assessed value rose by about $449 million (roughly 10%). Jen said the residential rollback factor will decline to about 44.53, and she illustrated the combination of reassessment, rollback and the proposed rate with a $100,000 home example: the city portion of the tax bill would rise by about $23 annually, roughly a 4% increase.

Jen summarized several state policy changes affecting city revenues. She described House File 718 (passed in late 2023 and signed by the governor) as eliminating some levies (library and band levies) and changing how the combined general fund levy is calculated; she also referenced a business property tax reimbursement measure (described in the presentation as House File 2552/backfill) that makes the first $150,000 of commercial/industrial value taxed like residential property. Jen and councilors said the city has received state backfill funds in prior years (figures cited in discussion included prior backfill totals near $600,000 and a currently referenced backfill of about $330,000) and noted the state‑level phase‑down of some backfill amounts creates future uncertainty.

Council discussion focused on fiscal risk if state backfill provisions are reduced or eliminated, and on whether the city should use one‑time backfill funds for capital versus operations. Council moved, seconded and approved the motion to set the $12.29 maximum levy for the letters and to hold a special public hearing on April 6 at 5:15 p.m. There was no public comment at the Committee meeting. The mayor declared the motion carried and adjourned the Committee of the Whole; the budget will return to council for hearings in April and potential final adoption in late April as required by statute.

Next steps: staff will submit the $12.29 rate to the county for the March mailings, publish required notices, hold the special public hearing on April 6 at 5:15 p.m., and return to council for the final budget hearing and adoption.