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OKAY. ALL RIGHT. THIS SPECIAL SESSION OF THE CEDAR RAPIDS CITY COUNCIL WILL COME TO ORDER.
I'D LIKE TO WELCOME THOSE OF YOU WHO ARE HERE FOR THIS SPECIAL CITY COUNCIL MEETING ON TUESDAY, MARCH 24TH, 2026. I'LL NOTE MY COLLEAGUE TYLER OLSON IS ABSENT TODAY AS WELL AS COUNCIL MEMBER MARTY HOEGER.
I'LL NOW ACCEPT A MOTION TO APPROVE THE AGENDA.
[1. Motion to approve the agenda.]
MOTION TO APPROVE. SECOND. THANK YOU. ALL IN FAVOR? AYE, AYE. OPPOSED? ALL RIGHT, THE MOTION CARRIES.[2. A public hearing will be held to consider the property tax revenue and property tax levy for the fiscal year 2027 budget (Abhi Deshpande). CIP/DID #FIN2026-06]
WE WILL GET STARTED COUNCIL. IT'S NOW TIME FOR OUR PUBLIC HEARING AND I'LL REMIND EVERYBODY WHO WISHES TO SPEAK TODAY OF A FEW MATTERS, JUST TO ENSURE THAT WE HAVE AN ORDERLY MEETING. 1ST, REMAIN AT THE LECTERN. IF YOU HAVE DOCUMENTS YOU NEED TO SHARE WITH US, GIVE THEM THE OFFICER AND SHE WILL GET THEM TO US.YOU'LL NOTICE SOME LIGHTS ON THE ON THE PODIUM THERE, WHEN IT TURNS, YOU HAVE 5 MINUTES TOTAL.
WHEN IT TURNS YELLOW, YOU HAVE ONE MINUTE, AND WHEN IT'S RED, WE'LL ASK YOU TO TAKE YOUR SEAT.
AND PLEASE BE AWARE THAT ALL COMMENTS MUST BE DIRECTED TO THE MATTER OF THE PUBLIC HEARING.
SO NO OBSCENE, ABUSIVE, LOUD, THREATENING, IRRELEVANT COMMENTS WILL BE ALLOWED AND THEN FINALLY, SO THAT WE CAN HAVE AN ORDERLY MEETING TODAY, WE ASK FOR NO APPLAUSE, BOOING OR OTHER DISRUPTIONS FROM THE AUDIENCE TODAY.
DOES THE CLERK HAVE ANY WRITTEN COMMENTS OR OBJECTIONS IN REGARD TO THE PUBLIC HEARING ON OUR AGENDA? YOUR HONOR, THERE ARE 3 OBJECTIONS FILED. 3 OBJECTIONS FILED.
BUDGET DIRECTOR ABHI DESHPANDE IS HERE. ABHI, I'LL RECOGNIZE YOU.
THANK YOU. MAYOR. GOOD AFTERNOON, MAYOR AND THE COUNCIL.
ABHAY DESHPANDE, FINANCE DIRECTOR SO TODAY THE PUBLIC HEARING IS ABOUT THE PROPOSED FY 27 PROPERTY TAX LEVY AND THE REVENUE. JUST TO GIVE YOU SOME PURPOSE IN THE BACKGROUND OF THIS PUBLIC HEARING.
AS PER THE IOWA CODE SECTION 24.2 A, THE CITIES ARE REQUIRED TO HAVE THIS PUBLIC HEARING BEFORE THE BUDGET GETS APPROVED AND ADOPTED IN, IN IN FEW WEEKS.
BASICALLY THIS REQUIRES TO FURTHER INFORM AND NOTIFY THE PUBLIC OF CHANGES IN PROPERTY TAX REVENUE LEVY RATES AND THE ANY KIND OF RELATED REASONS FOR THAT INCREASE OR DECREASE.
THE COUNTY AUDITORS THE MAIL, EACH TAXPAYER SHOWING THE PROPOSED CITY, COUNTY AND THE SCHOOL DISTRICT PROPERTY TAX RATES AND REVENUE FOR THE BUDGET YEAR. SUBSEQUENT TO THAT MAILING, THE CITY'S HOLD A SEPARATE PUBLIC HEARING PRESENTING CITY'S MAXIMUM PROPERTY TAX LEVY RATE AND THE REVENUE INFORMATION ARE AT THIS HEARING, ANY RESIDENTS OR PROPERTY OWNER OF THE CITY MAY PRESENT ANY OBJECTION OR PROVIDE ANY ARGUMENTS IN FAVOR OF THAT PROPERTY TAX REVENUE AND THE LEVY RATE. THIS PUBLIC HEARING ALSO CANNOT FOCUS ON OTHER ASPECTS OF THE BUDGET OR THE FULL BUDGET.
MOVING ON. THIS IS THE TAXPAYER STATEMENT THAT THE PROPERTY TAX OWNERS, THEY RECEIVED THIS NOTICE WAS ALSO PUBLISHED BY THE CITY FOR THE PUBLIC HEARING BASED ON THE FORMAT THAT WAS PRESCRIBED BY THE STATE.
AS YOU CAN SEE, THERE ARE 3 DIFFERENT COLUMNS IN THIS TAX STATEMENT.
THE 1ST COLUMN TALKS ABOUT THE CURRENT YEAR, WHICH IS THE FISCAL YEAR 2026 BUDGET INFORMATION AS PER THAT COLUMN, YOU CAN SEE THAT THE IN FISCAL YEAR 26, THE CITY'S TOTAL PROPERTY TAX REVENUE IS AROUND $128 MILLION.
WHICH WHAT DOES THAT MEAN IS BASICALLY IF WE KEPT THE 27 BUDGET AT THE SAME LEVEL AT 26 YOU WOULD SEE THE CHANGES IN THE PROPERTY TAX LEVY RATE AND WHICH WOULD BE BASICALLY DECREASE FROM 1665 TO 1635.
ONLY IF WE REMAIN AT THE SAME LEVEL OF FY 26.
THE 3RD COLUMN TALKS ABOUT BASICALLY FY 27 BUDGET AS PER THE PROPOSED BUDGET THE PROPERTY TAX REVENUE WILL GO FROM FROM $128 MILLION TO $130.4 MILLION.
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SO 1 THING THAT I WOULD LIKE TO HIGHLIGHT THAT BASICALLY THE PROPERTY TAX LEVY RATE REMAINS SAME FROM FY 26 TO FY 27 THERE IS NO PROPERTY TAX LEVY INCREASE FOR PROPOSED BUDGET.WHAT ALSO THE INCREASED REVENUE WILL FUND ITEMS SUCH AS THE LIABILITY PROPERTY AND VEHICLE INSURANCE, DEBT PAYMENT, EMPLOYEE BENEFITS SUCH AS THE FICA, IPERS, RETIREMENT, POLICE AND FIRE RETIREMENT AND HEALTH CARE BENEFITS.
THESE ARE THE LARGE TICKET ITEMS, THIS THERE ARE SOME OTHER ITEMS ALSO THAT WILL BE FUNDED, SUCH AS THE GENERAL GOVERNMENT OPERATIONS, BUT THESE ARE THE SOME OF THE LARGE TICKET ITEMS THAT WILL BE FUNDED FROM THIS REVENUE.
ALSO PROPERTY TAX OWNERS RECEIVED ALONG WITH THEIR STATEMENT, THEY RECEIVED 2 EXAMPLES SHOWING BASICALLY THE IMPACT OF PROPERTY TAX LEVY RATE ON THEIR ON PROPERTY TAXES.
BASICALLY THIS STATEMENT SHOWS 2 EXAMPLES. IF A HOUSEHOLD AND THEIR PROPERTY VALUATION GOES BY $10,000 FROM 100,000 TO $110,000 FROM FY 26 TO 27, THEY WILL SEE AROUND $26 INCREASE IN THEIR PROPERTY TAXES, AND THE PERCENT CHANGE WILL BE AROUND 3% SUCH.
THAT'S ON THE RESIDENTIAL SIDE. ON THE COMMERCIAL SIDE, IF THE.
IN THIS EXAMPLE, IF THE PROPERTY VALUE INCREASES BY 30,000 FROM 300,000 TO $330,000, THEY WILL SEE AROUND $377 INCREASE IN THEIR PROPERTY TAX FROM THE PREVIOUS YEAR, AND THAT'S 11% CHANGE.
IT IS NOT BECAUSE OF THE THE PROPERTY TAX LEVY RATE HAS INCREASED.
SO, FOR EXAMPLE, IF THAT 100,000 HOUSE WOULD HAVE VALUED AT 100,000 THIS YEAR, ALSO THEY WOULD NOT SEE ANY PROPERTY TAX INCREASE. SAME THING IF THE COMMERCIAL PROPERTY WAS REMAINED TO ONLY 300,000 VALUATION, THEY WOULDN'T SEE THAT INCREASE AS WELL.
WITH THAT THE NEXT STEPS ARE BASICALLY APRIL 14TH, WE'LL HAVE A MOTION FOR THE PUBLIC HEARING FOR BUDGET ADOPTION AND APRIL 28TH, WE'LL HAVE THE PUBLIC HEARING TO ADOPT THE, THE FISCAL YEAR 2027 BUDGET.
WITH THAT MAYOR, I WILL TURN IT BACK TO YOU. ALL RIGHT.
THANK YOU SO MUCH, ABHI. THIS IS A TIME AND A PLACE FOR A PUBLIC HEARING ON THIS MATTER.
DOES ANYONE IN THE AUDIENCE WISH TO ADDRESS COUNCIL? YEAH. OKAY. GO AHEAD. ALL RIGHT. LET THE RECORD SHOW A PUBLIC HEARING HAS BEEN HELD WITH 3 OBJECTIONS FOR THE RECORD. THAT BRINGS US TO COUNCIL COMMENTS. COUNCIL MEMBER OLSON.
YEAH. THANK YOU. MAYOR. ABHI, WE WE DISCUSSED A LOT MORE DETAIL ON YOUR PRESENTATION HERE.
NUMBER 1, WE HAD A CHART THAT SHOWED WHAT HAPPENED TO THE STATE PERCENTAGE OF TAXABLE IN AND REVENUE BECAUSE THAT VARIES EVERY YEAR WITH A STATE LAW.
WOULD YOU EXPLAIN THAT NUMBER 1? SURE. SO YES IN FY 26 THE ROLLBACK RATE WAS BASICALLY AROUND 47%.
SO THAT MEANS LIKE YOU'RE ONLY 47% OF YOUR PROPERTY WAS A TAXABLE, THAT PERCENTAGE HAVE DECREASED NOW FOR THIS YEAR TO AROUND 43.7%. SO THAT MEANS BASICALLY AS YOU POINTED 3% DECREASE IN THE TAXABLE VALUE OF YOUR HOME.
HOW DOES THAT THE FORMULA WORKS IS BASICALLY NOW IF, FOR EXAMPLE FOR MY PROPERTY, I WOULDN'T SEE.
ACTUALLY, I WOULD EXPERIENCE A TAX DECREASE IF MY PROPERTY TAX.
IF MY PROPERTY VALUE REMAINED THE SAME AT THE PREVIOUS YEAR.
SO DEFINITELY BECAUSE THE ROLLBACK RATES ARE GOING DOWN THAT HELPS IN PROPERTY TAX OWNER TO
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EXPERIENCE A LOWER AMOUNT OF TAXES THAN THE PREVIOUS YEAR.NOW THE 2ND PART OF THAT QUESTION IS WHAT THE CITY ASSESSOR DOES AND WHAT WE'RE SEEING.
BECAUSE I WAS LOOKING AT MINE AND MY TOTAL TAX WENT UP SLIGHTLY BECAUSE THE AREA I'M LIVING IN, THEY'RE SELLING AT HIGHER PRICES THAN THE ASSESSMENT.
AND THE STATE REQUIRES THE ASSESSOR TO RAISE YOUR VALUATIONS.
AND THAT'S WHERE MOST PEOPLE ARE SEEING A POSSIBLE INCREASE.
SO EXPLAIN THAT PROCESS. SURE. SO BASICALLY I THINK YOU'RE TALKING ABOUT THE EQUALIZATION AND THE SO THE ASSESSORS BASICALLY LOOK AT THE PROPERTY VALUES BASED ON SOME OF THE AREAS AND HOW THE ALL THE COMPARABLE SALES ARE GOING IN THAT AREA.
AND IN THAT CASE, IF BASICALLY THE, IF THE PROPERTY TAX, THE VALUES ARE INCREASED BY, LET'S SAY, LIKE FIVE BY 5%, THAT ALL OF THAT NEIGHBORHOOD OR IN THAT AREA WILL EXPERIENCE AROUND THE SAME GROWTH AROUND THOSE HOUSES COMPARED TO THE PREVIOUS YEAR. I THINK THE VALUES WILL BE EQUALIZED IN THAT PARTICULAR NEIGHBORHOOD BY THAT PERCENT OF GROWTH RATE. HOWEVER ALSO, AGAIN, BECAUSE OF THE VALUES HAVE INCREASED OR DECREASED, THEN THEY WILL EXPERIENCE THE TAXES GOING DOWN OR UP.
AND IF SOMEBODY WANTS TO APPEAL THAT VALUATION, THEY THEN APPLY TO THE CITY ASSESSOR'S OFFICE, WHICH IS OVER IN PUBLIC WORKS. I THINK THAT'S APPLICATION TIME IS IN THE END OF APRIL THROUGH THE 1ST WEEK IN MAY, WHERE THEY CAN SAY, HEY, THIS IS WAY TOO HIGH, I THINK IT SHOULD BE LOWER AND SO PEOPLE THAT HAVE THEIR ASSESSMENTS GO UP SHOULD BE AWARE OF THAT DATE. AND IT'S AN ONLINE THING, YOU CAN FILE ONLINE EITHER FOR A FILE A FORM OR ACTUALLY GO AND GET A 10 MINUTE PRESENTATION.
SO WE WANT TO ENCOURAGE PEOPLE THAT IF THAT'S IF THE ASSESSMENT IS WHAT'S DRIVING, IT'S NOT OUR LEVY GOING UP, IT'S THE ASSESSMENTS GOING UP BECAUSE OF HOW SALES THAT THEY SHOULD GET IN LINE OVER AT THE ASSESSOR'S OFFICE.
SURE. I CANNOT SPEAK FOR THE ASSESSOR'S OFFICE.
THE 1 THING IS THAT THE CITY ASSESSOR IS A SEPARATE ENTITY.
YES IT IS. IT'S NOT THE CITY. THE CITY GOVERNMENT IS 2 SEPARATE ENTITIES.
AND AND THEY'RE INDEPENDENT AND CITY GOVERNMENT.
HOWEVER YOU WRITE THAT YOU KNOW, THERE IS A PROCESS THAT YOU CAN APPEAL YOUR EVALUATION.
AND AS YOU SAID THAT I WOULD ENCOURAGE THEM TO CONTACT.
YEAH, IT'S THE LAST WEEK OF MAY AND FIRST WEEK OF APRIL, YOU HAVE TO HAVE IT IN.
YOU DON'T HAVE A VERY LARGE FILING TIME, BUT YOU CAN START FILING NOW IF YOU WANT.
BUT I THINK THE IMPORTANT THING WE'RE WE HAVE A VERY STRONG ECONOMY.
AND IF SOMEBODY WANTS THEY DON'T WANT TO MOVE.
I DON'T WANT TO MOVE. BUT MY VALUATIONS GOING UP.
AND THAT'S JUST BECAUSE EVERYTHING AROUND ME IS SELLING FOR MORE THAN WHAT THE ASSESSOR IS REQUIRED TO DO TO MEET STATE LAW, AND THAT IMPACTS THEIR TAXES. AND I'M PROUD OF THE FACT THAT WE WERE ABLE TO HOLD OUR LEVY THE SAME THIS YEAR, PLUS THEY GOT THE ROLLBACK OF 3%. SO WE WERE VERY FORTUNATE THIS YEAR TO HAVE THOSE2 THINGS HAPPENING VERSUS.
AND THEN THE ASSESSMENT THING IS A SEPARATE ISSUE. SO I WANTED TO THANK YOU FOR THAT EFFORT. ABHI, I JUST WANT TO SECOND THAT BECAUSE I KNOW FIRSTHAND THE TIME AND EFFORT THAT YOU AND THE DIRECTORS WITH ZERO BALANCED BUDGETING WERE ABLE TO MAKE AND MAKE THIS POSSIBLE, THAT WAS A REQUEST TO DO WHAT WE COULD TO HOLD THE LINE, THE THINGS THAT ARE UNDER OUR CONTROL.
I KNOW I TALKED TO SOME FOLKS HERE IN THE GALLERY YOU KNOW, THE LEVY IS IN OUR CONTROL AND YOU HELPED FIGURE OUT A WAY TO HOLD THAT STEADY, THAT IS THE PART THAT WE CAN PLAY. NOW, YOU KNOW, AS, AS MY COLLEAGUE MENTIONED YOU KNOW, VALUATIONS OF HOMES, THAT'S A WHOLE OTHER THING.
THE STATE IS DOING WORK TO SUPPORT OUR VETERANS, FOR EXAMPLE, AND CAP THAT I THINK THERE'S EVEN SOME LEGISLATION NOW FOR SENIORS TRYING TO FREEZE THAT. SO YOU'RE NOT PENALIZED FOR YOUR, YOU KNOW, BASICALLY YOUR VALUE OR YOUR HOME GOING UP.
BUT I JUST WANT TO COMMEND CITY STAFF, SPECIFICALLY YOU, DIRECTOR DESHPANDE, FOR FINDING A WAY BECAUSE I THINK PEOPLE NEGLECT TO REMEMBER WHAT AN INCREDIBLE CITY WE HAVE AND INCREDIBLE CITY SERVICES THAT OUR COMMUNITY HAS RIGHTFULLY EXPECTED FROM US. RECORD HISTORIC LOW CRIME NUMBERS, $1 BILLION FLOOD PROTECTION SYSTEM.
I MEAN, WE ARE A CITY WITH 0 CONTRIBUTION FROM OUR COUNTY.
BY THE WAY, WITH STATE AND FEDERAL DOLLARS. I'M SORRY.
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IT'S JUST THE TRUTH. I JUST WANT TO LET PEOPLE KNOW WHAT A HEAVY LIFT.OUR TAXPAYERS ARE ALREADY DOING $1 BILLION TO PROTECT OUR CITY, THAT'S THEIR COMMITMENT.
SO WE HAVE EXPENSES, WE HAVE RESPONSIBILITIES, AND WE TAKE IT REALLY SERIOUSLY, NEVER FORGETTING, YOU KNOW, WHO WE REPORT TO. AND I WISH WE COULD SAY THAT, YOU KNOW, EVERYBODY ACROSS THE BOARD WAS GOING TO GET RELIEF THIS YEAR BUT FOR US, IT REALLY IS VICTORY BEING ABLE TO HOLD THE LINE.
I ALSO WANT TO REMIND PEOPLE THAT, YOU KNOW, THE CITY IS JUST 1 PORTION OF PROPERTY TAXES, A SIGNIFICANT ALMOST MAJORITY OR MORE THAN OURS GO TO EDUCATION, FOR EXAMPLE.
SO I THINK THOSE, YOU KNOW, THOSE OF YOU THAT MAY HAVE QUESTIONS ABOUT, YOU KNOW, WHERE YOUR TAX DOLLARS GO, DON'T FORGET ABOUT OUR OTHER PARTNERS IN THAT IN THAT PROPERTY TAX NUMBER, BECAUSE OFTEN WHAT YOU'LL SEE ON THAT LETTER ISN'T NECESSARILY WHAT YOU'RE GOING TO PAY, BUT A LOT OF FIGURES, A LOT OF DATA GOES INTO CREATING THOSE NUMBERS.
SO FOR OUR PART, I COULDN'T BE MORE PROUD AND GRATEFUL THAT YOU WERE ABLE TO FIND A WAY.
THANK YOU MAYOR. OKAY. IF THERE'S NOTHING FURTHER.
YES. COUNCIL MEMBER OVERLAND. ABHI IN GOING THROUGH THE BUDGET, AS I ALWAYS DO EVERY YEAR, AND THE REST OF US DO, THE THING THAT STRIKES ME, HAVING THIS MY 11TH YEAR ON THE COUNCIL IS ALL THE ENCOURAGEMENT THAT WE'VE DONE OVER THE LAST 10 PLUS YEARS TO GROW OUR COMMERCIAL AND INDUSTRIAL REVENUE, OUR BASE HAS LED TO INCREASED VALUATION FROM COMMERCIAL AND INDUSTRIAL. AND SO THEY CERTAINLY PLAY A BIG ROLE IN BEING ABLE TO KEEP THE RATE THE SAME FOR RESIDENTIAL TAXPAYERS.
AND I DON'T THINK WE SHOULD OVERLOOK THAT, THAT THAT IF WE HADN'T DONE THOSE THINGS AND COMMERCIAL INDUSTRIAL HADN'T GROWN THE WAY IT HAS, WE'D BE HAVING PERHAPS A DIFFERENT CONVERSATION TODAY.
SO I TO COMMEND YOU AND THE STAFF. I KNOW YOU GUYS HAVE BEEN WORKING ON THIS VERY HARD FOR THE LAST 4 TO 5 MONTHS, SO THANK YOU. THANK YOU. AND THE BUILDING VALUATIONS FROM LAST YEAR TOPPLED $7.5 BILLION.
SURE. ALL RIGHT. IF THERE ARE NO OTHER FURTHER QUESTIONS OR BUSINESS TO COME BEFORE COUNCIL, DO I HAVE A MOTION TO ADJOURN? MOTION TO ADJOURN.
SECOND. SECOND OVERLAND. ALL THOSE IN FAVOR, SAY AYE.
AYE. THOSE OPPOSED SAY NO. AND THE MOTION CARRIES.
WE ARE ADJOURNED. THANK YOU COUNCIL.
* This transcript was compiled from uncorrected Closed Captioning.