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Waterloo finance director outlines FY2027 budget, proposes certification that would lower city share of property tax
Summary
Finance Director Bridget Wood presented the proposed FY2027 budget and the mayor’s recommended certified levy. Wood said a state rollback and use of the 20% local option sales tax transfer would reduce the city’s share on a $100,000 house by about $63 (roughly 6%); the budget will be published tomorrow with a public hearing set for April 20.
Bridget Wood, Waterloo’s finance director, presented the proposed fiscal year 2027 budget at the April 6 work session and recommended certifying a levy that she said would lower the city’s portion of property taxes for many residents.
Wood explained that a state rollback — which she cited at 44.5345% — reduces the taxable portion of assessed value and that, under the mayor’s proposed levy, the city’s share on an example $100,000 home would fall from about $1,034 to $971, a roughly $63 decrease. She said the city estimates a net-zero increase overall by balancing roughly $2.285 million in expense increases with about $2.28 million in additional revenues.
The finance director outlined the principal revenue changes: modest increases in police reimbursements and clerk/finance receipts, a full-year transfer of the 20% local option sales tax authorized by voters (estimated to funnel about $2.6 million into the general fund), and a continued multi-year replacement of prior rollback revenue from the state. She also said the employee benefits levy is being managed to hold at 21.79 and that the budget includes a placeholder draw on fund balance of $2,234,590 (part of a roughly $4 million planned use of funds that includes ARPA and transfers).
Wood emphasized constraints on the process: because the budget and levy will be published tomorrow, the city cannot increase the published amounts thereafter but may decrease them before final certification. She reminded the council the public hearing on the FY2027 budget is scheduled for April 20 and invited members to meet with staff in the coming two weeks before certification.
Council members asked for clarifications about discrete items: the library grout project is funded at $625,000 and remains in the department’s budget, the increase in the debt service levy (about $1.7 million) reflects ongoing city projects and delayed paybacks, and restrictions tied to ballot language limit how local option road funds may be used (maintenance/construction/reconstruction rather than general debt service). Wood said the city plans to use ARPA funds conservatively and that ARPA spending must be completed by December.
No formal vote to adopt the budget occurred at the work session; staff will publish the proposed budget and bring certification items back to council after the April 20 public hearing.
