The City of Carroll’s budget may be somewhat squeezed in the coming fiscal year as it recorded minimal property valuation growth and only slightly higher taxable valuation. According to data from the Iowa Department of Management, Carroll’s total assessed valuation as of Jan. 1, 2024, which is used to prepare the FY26 budget, increased by only 0.29 percent to $1.059 billion. After removing tax increment finance (TIF) districts and calculating rollbacks, the city’s taxable valuation grew by 1.25 percent to $575.15 million. Finance Director Laura Schaefer says that leaves little room in the city’s budget for scheduled wage increases, rising operational costs, and other expenses.
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City Manager Aaron Kooiker says the state’s residential property tax rollback, increasing from 46.2 percent to 47.3 percent, gives them a little breathing room. However, he notes that the rollback is well below what it was just a few years ago.
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Historically, city officials have compared Carroll’s tax rates to those of their peer communities throughout the state, which includes towns like Keokuk, Denison, Storm Lake, and Pella. Schaefer says Carroll is one of the lowest for consolidated levies, which include county and school taxes, and for the city rate.
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Keokuk has the highest consolidated tax rate at $52.71 among Carroll’s peers, followed by Storm Lake at $41.19, Denison at $38.93, and Pella at $34.41. Carroll’s consolidated tax rate in the current fiscal year is $27.24, $12.16 of which comes from the city. According to Kooiker, the staff is operating under the assumption the city’s tax levy will not change in FY26. While the city can handle a year of low growth, he says it emphasizes how important economic development is for a community.
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Cities have until April 30 to file their budgets with the Iowa Department of Management. That deadline is proceeded by several public hearings, including the proposed property tax levy and another for the general budget.