There will be 3 public hearings on Monday, April 22 at 5:30 p.m. for the FY2025 budget and certifying the property tax levy, a budget amendment for FY2024, and the 5-year capital plan. The FY2025 budget is for the fiscal year July 1, 2024, to June 30, 2025. The proposed budget would keep the City property tax levy rate the same in FY2025 as it is for FY2024. The budget has been discussed at Council meetings from January through April. For the final proposed budget documents, go to Departments, Finance Department, Budget Documents, and the Capital Improvement Plan.
The FY25 budget documents show that the property tax levy rate will stay the same for FY2025 as it is for FY2024. Page 2 shows the dollar amounts and rates for each levy. The proposed levy will be $16 per $1,000 of taxable property valuations. If your house has an assessed value of $100,000, your taxable value would be $46,343; therefore, your property tax paid to the city would be $741 annually. Other budget pages reflect the revenues and expenditures, ending fund balances, long-term debt payments, etc. Local option sales tax received is allocated between property tax relief (78%) and Council designated for any legal purpose (22%) in FY25. (With the recent election, this allocation will change to 75% and 25% respectively beginning in FY 2026). In FY2025, a total of $4,120,000 in local option sales tax is being used to help keep the property tax levy rate the same as in FY2024.
The FY24 budget amendment reflects changes in revenues and expenditures in the current fiscal year due to new grants and other funding sources, bonds issued, increased liability/property and health insurance costs, updates to payroll expenses due to vacancies, changes reflected for the Capital Improvement Plan and the timing of those projects. The totals of pages 5-7 of the FY25 budget documents above are incorporated into the amounts for the FY24 budget amendment. The budget amendment does not have any effect on property tax levies.
The Five Year Capital Improvement Plan shows the capital outlay for equipment and construction-related projects. Only funds 030 and 032 are supported by property tax levy revenue. The other funds are supported with grant funds, road use tax, local option sales tax, donations, bond funds, ARPA funds, or Enterprise funds. Fund 353 reflects the proposed projects for future bond funding projects.
If you are interested in seeing more budget-related documents, from the City's homepage go to Departments, Finance, Budget Documents. This provides more detail of department activity, cash balances, transfers between funds, etc. You can also review the discussion items on the Council Agenda for the January through April meetings.
Released by: Diana Steiner, Finance Director, 641-754-5760 x2100, dsteiner@marshalltown-ia.gov.