Presentation on Impact of Proposed Iowa Property Tax BillsCity of Dubuque
City Council
ACTION ITEMS # 2.
Copyrighted
February 16, 2026
ITEM TITLE:
Presentation on Impact of Proposed Iowa Property Tax Bills
SUMMARY:
Chief Financial Officer Jennifer Larson will make a
presentation on the impact of the proposed Iowa property tax
bills, which include Senate Study Bill 3001, the Governor's bill
Senate Study Bill 3004, and House Study Bill 596.
SUGGUESTED
Receive and File; Presentation
DISPOSITION:
ATTACHMENTS:
1. MVM Memo - Presentation on Proposed Iowa Property Tax Bills_MVM Memo
2. Iowa_Property_Tax_BiIIs_Impact _Presentation (1)
3. Tax Increment Financing in Dubuque - Jan 29 2026
4. TIF 15-Year Impact - State
5. Property Tax Handout 2026
Page 1031 of 1214
THE CITY OF
DUBE
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Presentation on Impact of Proposed Iowa Property Tax Bills
DATE February 12, 2026
Dubuque
AI WIN av
2007-2012.2013
2017*2019
Chief Financial Officer Jennifer Larson will make a presentation on the impact of the
proposed Iowa property tax bills, which include Senate Study Bill 3001, the Governor's
bill Senate Study Bill 3004, and House Study Bill 596.
I respectfully recommend you receive and file the presentation.
k�4
Mic ael C. Van Milligen
MCVM:jml
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jennifer Larson, Chief Financial Officer
Page 1032 of 1214
Senate Study Bill (SSB) 3004 (Governor's Bill)
Senate Study Bill (SSB) 3001
House Study Bill (HSB) 596
Key Terms: Levy — Tax rate applied to property value; TIF — Tax Increment Financing for development projects.
Page 1033 of 1214
• SSB 3004 Governor's Bill: Caps levies, limits
reserve, changes assessments, restricts TIF
• SSB 3001: General Fund Levy cap formulas,
rollback phase -out, homestead exemptions,
LOST increase, Gas Excise Tax CPI increase
• HSB 596: Caps levies, adds exemption,
Taxpayer Budget Statement improvements,,
voter approval for bonds
Key Terms: Rollback — Percentage reducing taxable value; Homestead Exemption — Deduction from taxable
value for primary residence. CPI — Consumer Price Index for inflation adjustments.
Page 1034 of 1214
• Property
Tax Growth
Cap:
Max levy =
102% of
prior year +
new
valuation
growth
• Reserve Limit: 10% cap
• Assessment Changes: Rollback
threshold raised, homestead
exemption replaces credit
• Urban Renewal Restrictions: TIF
limited to infrastructure/demolition &
new TIF areas 20 years
Key Terms: Property Tax Growth Cap — Limit on annual levy increase; Reserve Limit —
Max 10% of general fund; TIF — Restricted to infrastructure/demolition.
Page 1035 of 1214
F
SSB 3004
Current
SSB 3004
Current
Category
FY28
FY28
Diff FY28
FY39
FY39
Diff FY39
Avg Residential
$968
$1,007
-$38
$929
$1,094
-$164
a
Avg Multiresidential
$1,751
$1,915
-$164
$1,680
$2,054
-$374
Avg Commercial
$4,511T
$5,422
-$911
$5.378
$6.877
-$1,499
Avg Industrial
$5,473
$6,473
-$11000
$5,606
$7,218
-$11611
City Tax Revenue
(Million)
$32.2
$36.1
-$3.8
$42.3
$60.0
-$17.7
TIF Revenue
(Million)
$16.11
$19.6
-$3.41
$19.21
$29.9
-$10.7
Key Terms: FY — Fiscal Year; TIF Revenue — Taxes diverted for development; Avg — Average tax per property
class.
Page 1036 of 1214
• Levy Cap Formulas: Formula A (2% growth), Formula B
(0.5% increase)
• Assessment Changes: Commercial/industrial at 100%,
residential rollback phases out
• Homestead Exemptions: 25%-50% over time
• 65+ No Mortgage Exemption: 25%-100% over 4 years
• LOST Increase: Up to 1.5
• CPI on Gas Excise Taxes
Key Terms: Levy Cap — Formula limiting tax growth; Homestead Exemption — Percentage of home value
exempt; LOST — Local Option Sales Tax.
Page 1037 of 1214
ISSB 3001 1 Current SSB 3001 Current
Category
FY28
FY28
Diff FY28
FY39
FY39
Diff FY39
Avg
Residential
$943
$1,006
-$63
$938
$1,219
-$281
Avg
Multiresidential
$2,273
$1,915
$358
$3,390
$2,290
$1,100
Avg
Commercial
$5,267
$5,422
-$155
$5,086
$6,217
-$1,131
Avg
Industrial
$6,1671
$6,4731
-$3061
$6,437I
$8,0461
-$1,609
City Tax Revenue
(Million) $36.0 $36.1 -$0.1 $55.0 $54.2 +$0.8
TIF Revenue
(Million) $18.3 $19.6 -$1.3 $24.2 $29.9 -$5.7
Key Terms: BAF — Budget Adjustment Factor tied to CPI; CPI — Consumer Price Index for
inflation adjustments.
Page 1038 of 1214
• All Levies Cap: 102% limit
• Residential Exemption: $25,,000 taxable value
• Taxpayer Budget Statement improvements
• Bond Restrictions: 60% voter approval for
General Corporate Purpose
Key Terms: Exemption — Fixed amount deducted from taxable value; Debt Service — Levy for bond repayment; Voter
Approval — 60% required for bonds.
Page 1039 of 1214
Category
vg Residential
vg Multiresidential
vg Commercial
vg Industrial
City Tax Revenue
(Million)
TIF Revenue
(Million)
HSB596
FY28
$734
$1,919
$5,433
$6,486
Current
FY28
$1,007
$1,915
$5,422
$6,473
Diff FY28
-$272
HSB596
FY39
$722
Current
FY39
$89
Diff FY39
-$175
$4
$1,754
$1,709
$45
$10
$5,583
$4,885
$698
$12
$5,938
$5,834
$276
$32.2, $36.11 -$3.91 $42.71 $54.21 -$11.5
$17.81 $19.61 -$1.81 $18.7 $29.9 -$11.2
Key Terms: Tax Levy — Rate applied to assessed value; TIF — Tax Increment Financing revenue.
Page 1040 of 1214
Comparison of Iowa Property Tax Bills
Feature
Tax Levy Limitation
Taxpayer Budget Statement
General Obligation Bonds
General Fund Reserve Limit
Assessment Changes
65+ Homestead Exemptions
Revenue Increases
TIF Restrictions
erms: HOm
HSB 596
102% cap on all levies (excludes
debt service)
Revises mailed property tax info;
consults Iowa League of Cities &
[SAC
Special election required for
general corporate purpose bonds
(fire stations, parking) 60% for
None
$25,000 homestead exemption in
addition to homestead credit
None
None
SSB 3004 Governor's SSB 3001
102% cap on all levies (excludes
debt service)
Not addressed
102% cap on general fund levy,
budget adjustment factor if taxable
value growth >102%
Allows online posting of taxpayer
budget statement
No bonds for general operations. No bonds for general operations.
10% of current year general fund None
expenditures
Commercial/Industrial tier 1 Residential and Multiresidential
rollback threshold increases from rollback phases out 70% in FY28 to
$150K to $250K. Homestead credit 100% by FY39.Eliminates
becomes an exemption. Homestead Credit. Phases in
Assessment cycle changes from Homestead Exemption 25% & cap
every two years to every three of $175k in FY28, rising to 50% &
years cap of $300K in FY38.
Eliminates 65+ Homestead $6500
exemption.
None
None Only street & demolition allowed;
New TIF areas limited to 20 years
ad Ueditvs Lxemption — Credit reduces tax owe Exemption reduces
LOST — Local Option Sales Tax.
Creates additional exemption for
65+ with no mortgage. FY28: 25%
of remaining taxable value,
increasing to 100% in FY31
LOST cap from 1% to 1.5%.
CPI on Gas Excise Tax
None
xaoie value;
Page 1041 of 1214
TAX INCREMENT
FINANCING
Creating and retaining jobs and
facilitating growth in Dubuque, Iowa
Greater Dubuque
DEVELOPMENT CORP.
THE CITY OF
DUB E
Masterpiece on the Mississippi
TV
FAe 1042 of 1214
"Would the last person to leave Dubuque please turn off the lights?"
Commonly repeated, residents used this dark humor to help deal with
Dubuque's dire unemployment rate which hit 23% in January 1982. High school
and college graduates left for more prosperous cities and states, taking their
talent with them.
Enter Tax Increment Financing. In 1985, the Iowa State Legislature amended
urban renewal law to allow cities to use Tax Increment Financing (TIF) for
economic development purposes. This tool simply directs the increase in
property tax generated from property improvements to the city, which can
use this increment as a financial incentive to companies that invest and create
jobs in the urban renewal area. This is how the City of Dubuque built over
1,400 acres of industrial parks, now home to 56 businessses, including 47 local
businesses that needed a place to expand.
TIF is the only meaningful local economic incentive available to Iowa cities
and Dubuque's responsible use of TIF has created a nationally -recognized
transformation. Dubuque has been ranked by Forbes, Kiplinger, the U.S.
Conference of Mayors, the National Civic League, and the Milken Institute as
one of the best cities in the United States to live, work, and play.
TIF Incentives
2010 - 2026:
$95,138,429
Leveraged Private
Investment:
$863,296,204
Employment Impact
2010 - 2026:
4,204 jobs retained
866 jobs created
Housing Creation
2010 - 2026:
1,461 units created
(Totals as of jonuary 2026)
From small, local companies to global brands, over 70 projects in our
community have benefitted from tax increment financing since 2001, including
• Advanced Data -Comm
• Andersen Window & Door
• Art's Way Manufacturing
• AY McDonald Manufacturing
• Cottingham & Butler
• Dubuque Screw Products
• Dupaco Community Credit Union
• E91 (formerly Entegee)
• FEH Design
• Geisler Brothers Company
• Giese Manufacturing
• Green Industrial Supply
• Hartig Drug
• Heartland Financial Services
• Hodge Companies
• Hormel/Progressive Processing
• ITC Midwest
• Kendall -Hunt Publishing
• Klauer Manufacturing
• Kunkel Ex Associates
• McCoy Group
• McGraw-Hill
• Medline Industries
• Nordstrom
• Prairie Farms
• Rite -Hite
7/no
PROJECTS
• Rockfarm Holdings
• Rousselot, Inc.
• Sedgwick CMS
• Simmons Pet Food Inc.
• Spahn & Rose Lumber Co.
• Theisen's Supply
• Tri-State Industries
• Tri-State Quality Metals
• Unison Solutions
• Universal Tank
• Vanguard Industries
• Verena Street Coffee
• Woodward Communications
Frage 1043 of 1214
D U PACO
COMMUNITY CREDIT UNION
_1
TIF Investment:
15 years of TIF rebates
Project Investment: �Ir`
�- 1, �
$38,000,000�
a
Employment Impact:
40 new jobs
More QualityJobs Where
Employees Can Live, Work, and Play
Dupaco Community Credit Union is a not -for -profit
financial cooperative owned and controlled by more
than 112,000 members, most of whom live in Dubuque
and the Tri-State area. The credit union was founded in
1948 by 10 employees of the Dubuque Packing Company
Dupaco redeveloped 82,800 square feet of office space
in a five -story building on Jackson St. in Dubuque's
Historic Millwork District. The project was completed in
2022. As part of the project's development agreement,
Dupaco agreed to expand its operation in Dubuque from
150 operations employees by at least 40 new full-time
employees prior to October 1, 2023.
An additional component of the agreement is the
required collaboration between the City, Dupaco,
and other stakeholders in the area regarding the uses
of existing infrastructure and transportation needs.
Ongoing communication in the form of monthly meetings
and annual reports highlight the ability for these types of
agreements to bring the community together.
SIMMONS PET FOOD
National company chooses Dubuque and
expands within 2 years
Simmons Pet Food, Inc., a family -owned business based in Arkansas, is
the leading North American private -label and contract manufacturer of
wet pet food with three locations in the US and one in Canada. Simmons
purchased a vacant existing manufacturing facility in Dubuque in summer
2021. By summer 2022, they already expanded, introduced a second pet
food line at the location, and hired additional employees. In spring 2023,
they partnered with a local developer on a new $25.5 million warehouse
project, also supported by 10 years of TIF rebates.
The original and subsequent development agreements with Simmons
required them to provide a total of 281 jobs but, as of February 2025, they
had provided over400 new jobs in Dubuque!
TIF Investment:
10 years of TIF rebates
Project Investment:
$71,000,000
Employment Impact:
441 new jobs
XMy'a'�
,� -
Expansion Afterjust Four Years in Dubuque
Progressive Processing, LLC, a subsidiary of Hormel
Foods Corporation, has a processing plant located in the
Dubuque Industrial Center West. In 2014, the company
expanded operations at its Dubuque location, moving
the production of its bacon topping products and Spam
line to the facility.
The original project, completed in 2014, created 91 new
jobs and had a capital investment of $34.4 million in new
HORMEL
/PROGRESSIVE PROCESSING
TIF Investment:
5 years of TIF rebates
Project Investment:
$123,400,000
Employment Impact:
381 new jobs
equipment and building improvements. This expansion
followed Progressive Processing's 2010 investment of
$89 million to construct the new facility at the site and
create 196 jobs. An additional $13 million investment in
machinery and building improvements in 2019 allowed
Hormel to increase production capacity and add two
additional product lines to this facility, as well as another
58 new jobs. Today, Progressive Processing reports 381
jobs at its Dubuque facility.
TRI-STATE
QUALITY METALS
TIF Investment:
10 years of TIF rebates
Project Investment:
$5,150,000
Employment Impact:
10 new employees
Fabricator Finds New Home for Growth
Tri-State Quality Metals, LLC is a locally owned sheet metal fabrication manufacturer formed in 2010 in Peosta, Iowa.
The company performs laser cutting of sheet metal, as well as plasma cutting, bending, drilling, tapping, sawing, and
welding to create customized parts. Tri-State Quality Metals also provides services including plating, machining,
sheering, and painting that are outsourced to other area manufacturers. The company has grown from a local customer
base to one that is regional, serving manufacturers in eastern Iowa, northwestern Illinois, and southwestern Wisconsin.
The largest customer, Rite -Hite, sells products to worldwide markets. In addition, Tri-State Quality Metals produces
parts for companies that ultimately sell to international manufacturers such as John Deere, Caterpillar, and Volvo.
In 2014, the Tri-State Quality Metals constructed a new $3.4 million, 44,000 square -foot production facility in the
Dubuque Industrial Center South. The expansion allowed the company to add 10 new employees, bringing its total
number of employees to 23. In 2023, the Tri-State Quality Metals constructed a $1.75 million, 31,500 square -foot
expansion to their facility. This expansion did not require additional TIF but was made possible by the original TIF
support.
Page 1045 of 1214
ROASTING SOLUTIONS
/VERENA STREET COFFEE
TIF Investment:
10 years of TIF rebates
Project Investment:
$10,200,000
Employment Impact:
20 new jobs
New Facility Meets Needs of Coffee Roaster's Growing Market
Roasting Solutions/Verena Street Coffee opened their
new state -of -the art production facility and national
headquarters in the Dubuque Industrial Center South
in 2016. The locally owned 34,000 square -foot facility
is nearly five times larger than its previous facility.
Roasting Solutions invested over $10.2 million on the
project which created 10 new jobs.
RITE
H ITE
ALWAYS LOOKING AHEAD
Roasting Solutions is a privately -held, family -owned
organization founded in 2010. The company roasts and
packages its coffees at its Dubuque facility. Verena
Street coffee can currently be found in over 750
grocery stores, club stores, warehouse stores, and mass
merchandisers in Iowa, Illinois, Wisconsin, Minnesota,
Nebraska, surrounding areas, and online.
RITE-H ITE
TIF Investment:
10 years of TIF rebates
Project Investment:
$8,900,000
Employment Impact:
138 new jobs
Project Creates Operational Efficiencies for Manufacturer
Rite -Hite manufactures doors, seals and shelters, barrier systems, and other aftermarket products at its Dubuque
production facility at 4343 Chavenelle Drive in the Dubuque Industrial Center. The company is a longtime Dubuque
corporate citizen of and employs 270 at its Dubuque location where it completed an $8.9 million expansion project in
2017 to add 138,000 square feet of manufacturing space and 24 new employees.
In addition to the new production space, the project included a partial remodel of offices, and approximately
$420,000 for new machinery and equipment. The project improved productivity and operational efficiencies and
expanded research and development capabilities. Today, Rite Hite employs 407 employees at its expanded facility.
Page 1046 of 1214
THEISEN SUPPLY INC.
Family -Owned Company
Invests in Distribution Center
A local company whose owner is very generous with
non-profit agencies across the state was looking to
expand for the second time in a five-year period. A
consultant advised Theisen Supply to relocate its
proposed distribution center outside of Dubuque,
closer to a major US interstate highway. Jim Theisen,
then president and CEO, credited programs like TIF
with helping make the decision to stay in Dubuque.
The $2.8 million investment is located in Dubuque's
Industrial Center West —helping the company
maintain 48 full-time positions and create 32
additional positions to date.
The 160,000 square -foot distribution center supplies
Theisen's 22 stores in Iowa and two in Wisconsin —up
from 15 stores in 2007. The extra space allows the
company to maximize its buying potential and offer
the lowest prices and best selection of products to
their loyal customers ... a definite win for Iowans!
TIF Investment:
5 years of TIF rebates
Project Investment:
$4,800,000
Employment Impact:
117 jobs
GREEN INDUSTRIAL SUPPLY
Dubuque -Based Supplier
Expands Local Footprint
In 2022, Green Industrial Supply, Inc. announced
plans to expand its operations including the
construction of a 97,000 sq. ft. building addition.
Originally founded in 1971, Green Industrial Supply,
Inc. is locally owned and headquartered in Dubuque
and offers services such as competitive parts
sourcing, quality inspection, knitting, assembly, and
packaging.
The company's use of innovative technology allows
customers the opportunity to lower overhead costs
and make better use of human and capital resources.
Green Industrial Supply's expansion projects included
a capital investment of approximately $7.8 million
dollars, the retention of 61 full time positions, and the
creation of 10 new full-time positions.
TIF Investment:
10 years of TIF rebates
Project Investment:
$7,800,000
Employment Impact:
10 new jobs
Page 1047 of 1214
zzk
ROSHEK BUILDING
History Meets High Tech
From a posh department store built in the 1930s, to
a tired office building that had suffered from "urban '
renewal" in the 1970s, the Roshek Building was given
new life in 2009 in the form of a $40 million historic
rehabilitation. The 250,000 square -foot, LEED Platinum
rehab project now houses offices for Cottingham & Butler,
UMB Bank, RSM, Community Foundation of Greater
Dubuque, and other local firms —with retail on the first floor
catering to the needs of the building's employees.
The rehabilitation of this downtown icon has enabled local
businesses to expand their downtown employment base
while maintaining 1,144 jobs.
TIF Investment:
10 years of TIF rebates
Project Investment:
$40,000,000
Employment Impact:
32 new jobs
KU N KEL &t ASSOCIATES
Making Iowa Competitive
a
TIN
L3 TA El
I li
ii@D
TA TA :A aaq «:.
hiAlMmi
�
711
A
Project Accolades
• Excellence in Economic Development in Historic
Preservation -Led Strategies Award - Iowa Economic
Development Authority
• Excellence in Economic Development Award in the
Category of Public -Private Partnerships - International
Economic Development Council
• J. Timothy Anderson Award - National Housing &
Rehabilitation Association
• National Preservation Honor Award - National Trust for
Historic Preservation
• Platinum LEED Certification - Leadership in Energy and
Environmental Design Core and Shell Platinum - U.S.
Green Building Council
• Best Development Award - 1000 Friends of Iowa
• Outstanding Total Building Rehabilitation Award -
Dubuque Main Street
• Best Total Building Rehabilitation Award - Main Street
Iowa
• Preservation Award - Dubuque County Historical Society
Locally owned Kunkel a Associates announced plans to relocate from
Wisconsin to Dubuque in 2006. The company provides insurance consulting,
commercial and personal insurance, employee benefits, claim consulting,
and patient advocate services. The company invested $1.8 million and built a
10,000 square -foot office complex in the Dubuque Technology Park, initially
bringing 24 newjobs to Iowa. The facility also serves as the company's
corporate headquarters.
In 2015, Kunkel & Associates expanded its operation and invested over
$2.5 million to double their office space to 20,000 square feet. Along with
the expansion, the company hired 16 new employees. The most recentjob
reporting showed Kunkel & Associates bringing their total employment to 76.
TIF Investment:
10 years of TIF rebates
Project Investment:
$1,800,000
Employment Impact:
76 new job:
HOW IT WORKS
When a TIF district is created, a "base" valuation of the property value is established.
The base valuation accounts for assessed values prior to the TIF designation. The
tax revenue from this base value remains with all taxing authorities. Increases in the
assessed value over time over and above the base are called the "increment." The TIF
authority (in this case, the City of Dubuque) may access the tax revenue generated by
the increment, to fulfill the designated purpose of the district.
TIF is typically used by cities to fund public improvement projects or private project -
based financial assistance, in conjunction with developing or redeveloping different
parts of a city. This may include upgrading areas of the city suffering from slum and
blight, helping residential development efforts, and enhancing economic development
activities. Depending on the size of the project, cities may use the annual increment to
provide project funding or may need to incur debt to finance an improvement, such as
installing infrastructure.
$1,000
1
l
$100
TODAY TIME END OFTIF
TIF FOR DUBUQUE HOUSING CREATION: 2010-2025
$34.5 million in TIF spread across 60 projects
leveraged $326 million in private investments to
create nearly 1,500 housing units within the city.
Projects are located throughout the community and range in size from 2
units to 201 units, with individual TIF grants ranging from $15,000 to nearly
$7 million.
Multiple housing studies have shown Dubuque needs thousands of additional
housing units to address the need. Housing TIF has been a critical tool to
support private housing creation of all types to address the housing gap.
By state law, when TIF is used for housing development, approximately 38
percent of the future tax increment revenues from the project must be used
to provide housing assistance to low- and moderate -income families whose
incomes are no greater than 80 percent of the median income anywhere in
the city. This is starter housing for Dubuque's current and future workforce,
and our most vulnerable residents, the elderly and disabled.
V
1
i
r..
CONTACT US City of Dubuque Economic Development www.cityofdubuque.org/econdev
ED009-01262026
563-589-4393
Page 1049 of 1214
Tax Increment Financing
in Dubuque: 2010m2025
$95 million in TIF has leveraged $836 million
in private investment in 91 projects.
Private investment to TIF ratio = 9:7
Tax increment financing (TIF) is the only meaningful local economic incentive available to Iowa
cities. It is an important and flexible tool used in communities for three main purposes: promoting
economic development, eliminating slum and blight, and facilitating housing development.
The ability to use TIF to assist private economic development projects in urban renewal districts is
an essential ingredient of the City of Dubuque's nationally recognized success, providing financing
and incentives for private investment.
TIF directs the increase in property tax generated from property improvements to the city, which
can use this increment as a financial incentive to the private sector to invest in and create jobs in
TIF for Dubuque Job Creation: 2010-2025
TIF supported 35 companies in retaining or creating 5,000 jobs.
$38 million in TIF leveraged $348 million in private investments
From small, local companies to global brands, TIF has supported a variety of Dubuque employers
over the last 15 years, including:
• Andersen Window & Door,
• AY McDonald Manufacturing,
• Cottingham & Butler,
• Dubuque Screw Products,
• Dupaco Community Credit Union,
• Geisler Brothers,
-
• Giese Manufacturing,
• Green Industrial Supply, lubuque Screw Products
• Hormel,
• Klauer Manufacturing,
• McCoy Group,
• Prairie Farms,
-' •� �`� ��•
• Rite Hite,
• Rousselot, -
• Simmons Pet Food,
• Theisen's Supply,
/
• Tri-State Quality Metals,
THE CITY OF
• Unison Solutions,
• Universal Tank,
DUB
• Vanguard Industries, and
• Woodward Communications.
Masterpiece on the Mississippi
Page 1050 of 1214
TIF for Dubuque Housing Creation:2010-2025
$34.5 million in TIF spread across 60 projects leveraged $326 million in
private investments to create nearly 1,500 housing units within the city.
Projects are located throughout the community and ranged in size from 2 units to 201 units, with
individual TIF grants ranging from $15,000 to nearly $7 million.
When a TIF district is created, a "base"
valuation of the property value is established.
The base valuation accounts for assessed
values prior to the TIF designation. The tax
revenue from this base value remains with all
taxing authorities. Increases in the assessed
value over time over and above the base are
called the "increment." The TIF authority (in
this case, the City of Dubuque) may access
the tax revenue generated by the increment,
to fulfill the designated purpose of the district.
By state law, when TIF is used for housing
development, approximately 38 percent of
the future tax increment revenues from the
project must be used to provide housing
assistance to low- and moderate -income
families whose incomes are no greater than 80 percent of the median income anywhere in the
city. This is starter housing for Dubuque's current and future workforce, and our most vulnerable
residents, the elderly and disabled.
TIF is typically used by cities to fund public
improvement projects or private project -
based financial assistance, in conjunction
with developing or redeveloping
different parts of a city. This may include
upgrading areas of the city suffering
from slum and blight, helping residential
development efforts, and enhancing
economic development activities.
Depending on the size of the project, cities
may use the annual increment to provide
project funding or may need to incur
debt to finance an improvement, such as
installing infrastructure.
Requested Action
• Support efforts to maintain Tax Increment Financing as an economic development financing
tool.
• Oppose restrictions on use of TIF for public infrastructure and oppose the "sunsetting" of TIF
districts.
Page 1051 of 1214
Page 1052 of 1214
THE CITY OF
DUB E
Masterpiece on the Mississippi
The property tax system in Iowa is a key revenue source for local governments, including cities,
counties, school districts, and other taxing districts.
Where Do Dubuque
Property Taxes Go?
FY2026 Consolidated Rate of $30.37767
per $7,000 assessed value
NICC
3.1%
Other
2.2%
How Does the City of Dubuque
Use Property Taxes?
blic Safety - 42.8%
:ulture & Recreation -18.8%
General Government - 16.2%
Public Works - 9.7%
Community & Economic
Development - 6.4%
Other - 4.5%
Health & Social Services - 1.2%
Capital Projects - 0.3%
>ebt Service - 0.1%
Local governments set property tax rates to deliver essential services residents want and need.
This flexibility is crucial for several reasons:
■ Meeting Local Needs
Communities have unique needs, and a one -size -fits -all tax
rate wouldn't address these differences.
■ Maintaining Fiscal Freedom
Local freedom to use local dollars enables governments to
respond to local residents' needs and community -specific
challenges. It allows local governments to be more self-reliant
and less dependent on state or federal funding, which can
fluctuate or come with restrictive conditions.
■ Encouraging Community Investment
When property taxes are effectively used for visible, high -
quality services, residents are more likely to see value in their
tax contributions. This investment in the community can
encourage long-term growth, retain existing residents and
attract new residents, circulate money in the local economy,
and increase property values over time.
Dubuque has the lowest
property tax rate of the
11 cities in Iowa with a
population over 50,000.
In 2023, Moody's Investor
Services upgraded the City's
bond rating to the third -
highest rating possible.
Valuation of Property
• Assessment: Property is assessed by the county assessor every odd -
numbered year (e.g., 2021, 2023, 2025). The assessor estimates the
market value of the property, which is essentially what it would likely sell
for under current market conditions.
• Classification: Properties are classified as residential, agricultural,
commercial, industrial, or multi -residential. Each classification can have
different assessment rates, as well as tax credits and exemptions.
Calculation of Property Taxes
Taxable Value Calculation: Once the rollback is applied, the property's
taxable value is determined. Then, each taxing authority's levy rate is
applied to calculate the actual tax owed.
Rollback and State Equalization
• Rollback: The Iowa Department of Revenue applies a "rollback" rate to
certain property classes. In the current year, residential property owners
only pay taxes on 47.4% of the assessed value of their property.
• Equalization: Every two years, the Iowa Department of Revenue
conducts an equalization process to adjust property valuations across
counties. This helps to standardize assessment levels statewide and
prevent wide disparities. This is based on actual land sales.
Levy Rates
• Levy Rates: Property taxes in Iowa are determined by applying a levy
rate to the taxable value of the property. Local governments, school
districts, and other taxing authorities each set a levy rate according to
their funding needs.
Tax Credits and Exemptions
Iowa offers property tax credits and exemptions that can reduce the tax
burden. Key programs include:
• Homestead Credit: Provides tax relief for Iowa residents who own and
occupy their homes.
• Homestead Exemption for 65+: Provides additional tax relief for Iowa
residents age 65 and over who own and occupy their homes.
• Military Exemption: Offers a property tax exemption for eligible veterans.
• Agricultural Land Tax Credit: Provides tax relief for farmland.
Appeals Process
If a property owner disagrees with the assessment, they may appeal to
their local Board of Review, typically in April or May. If the owner disagrees
with the Board of Review's decision, further appeals can be made to the
Property Assessment Appeal Board or through district court.
DUBUQUE EXAMPLE
Assessed Value of the Average
Residential Property:
$196,508
Taxable Value of the Average
Residential Property After Rollback:
$93,207
CITY PORTION of FY2026 Average
Residential Property Tax Bill:
$889.20
with homestead tax credit
TOTAL FY2026 Average
Residential Property Tax Bill:
$2,678.77
with homestead tax credit
FINANCIAL
TRANSPARENCY
Budget Adoption Process
• Multiple public input meetings
and input opportunities as
recommended budget is
developed
• City Council holds public hearing
to set the maximum property tax
levy
• City Council holds series
of 7 public meetings as
recommended budget is
considered.
• City Council holds public hearing
to adopt the budget
Open Budget Portal
cityofdubuque.org/budget
• Explore and visually interact with
the City's operation and capital
budgets
Open Expenses Portal
cityofdubuque.org/finance
• Interactive "checkbook" to view
all City payments to vendors
° 0 0 0 0 0 0 0°°'
'0 0 0 0 0 0 0 0 0°
> 0 0 0 0 0 0 0 0 0°.