Dubuque, Iowa — The Dubuque City Council will hold a public hearing Monday, March 23, at 6:30 p.m. as the first formal step in adopting the city’s Fiscal Year 2027 budget, which runs from July 1, 2026, to June 30, 2027. At the hearing, council members will review and consider a proposed maximum property tax rate and the corresponding dollar amount of revenue it would generate. Under Iowa law, the rate approved Monday becomes the legal ceiling; it can be lowered in later meetings but cannot be raised.

City staff are recommending a modest increase of $0.1011 per $1,000 of assessed value — exactly 1% — raising the rate from the current $10.0637 to $10.1648. Because of rising property values across the city, however, the typical Dubuque homeowner would see a larger dollar impact. The average residential property is currently assessed at $213,211. At the proposed rate, the city portion of that homeowner’s annual tax bill would rise from $889.20 to $915.87 — an additional $26.68, or about 3%.

If adopted, the new maximum rate would allow the city to collect up to $31,940,934 in property-tax revenue for the general fund, a 6.9% increase over the current fiscal year. That money supports core city operations but does not fund utilities or enterprise funds such as sanitary sewer, solid waste, stormwater, or water service. Those must be paid for entirely through user fees that are reviewed separately each year.

Where the money goes (FY2027 proposed breakdown)

• Public safety: 52.2%

• Parks and recreation: 22.6%

• General government: 9.3%

• Public works: 7.5%

• Community and economic development: 6.0%

• Health and social services: 1.9%

• Debt service: 0.5%

Even with the proposed increase, Dubuque would retain the lowest property tax rate among Iowa’s 11 cities with populations over 50,000. In the current fiscal year, the average rate of the other 10 cities was 55% higher than Dubuque’s, and the highest — Waterloo — was 116% higher. City officials say the recommended rate keeps Dubuque competitive while still covering rising costs for essential services.

Timeline and decision limits

Monday’s hearing is limited by state law: council can only approve the proposed rate and dollar amount or lower it. The final city property tax rate for FY2027 will be set at a second public hearing on Tuesday, April 28, when the full budget is adopted.

The recommended operating and capital budgets will first be presented to council at its regular meeting on Monday, April 6. Seven additional public meetings featuring departmental budget presentations are scheduled before April 28. The full schedule is posted at cityofdubuque.org/fy2027budget.

Public input encouraged

Residents can attend in person or participate virtually. All meetings begin at 6:30 p.m. in the City Council Chambers on the second floor of the Historic Federal Building, 350 W. Sixth St. Virtual access is available at www.cityofdubuque.org/virtualmeeting. Written comments can be submitted anytime at cityofdubuque.org/fy2027budget.

Details on how the proposed rate would affect commercial, industrial, and other property classes — including full tables — are available in the city’s official announcement at https://cityofdubuque.org/CivicSend/ViewMessage/Message/285792.

The March 23 hearing marks the start of a month-long public process that will ultimately determine how much Dubuque homeowners and businesses pay in city property taxes next year and how those dollars are allocated across police and fire protection, parks, streets, libraries, and other services. With property values continuing to rise, the 1% rate increase translates into a 3% bill increase for the average homeowner — a nuance many taxpayers may want to consider when deciding whether to speak at Monday’s hearing or the upcoming budget meetings.

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