MPCSD proposes decrease in property tax rate for coming year

MT. PLEASANT — The Mt. Pleasant Community School District is proposing a modest reduction in its property tax levy for the 2025—26 fiscal year, offering some relief to local property owners amid rising property valuations.

“So, just quickly we've the board has gone we've gone over this a time or two already in our finance committee meeting,” MPCSD Superintendent John Henriksen explained. “This is the first of two public hearings to certify the fiscal year 26 budget.”

The current tax levy rate is $12.23 per $1,000 of taxable valuation. Under the proposed budget, the rate would decrease to $11.97 per $1,000, representing a drop of about 26 cents.

The district’s fiscal year runs from July 1 through June 30. Despite the lower levy rate, overall property tax revenue is expected to increase slightly due to higher property valuations. The proposed budget projects $7.981 million in property tax revenue, an $18,000 increase from the current year.

The total proposed property tax revenue includes $5.572 million from the general fund levy, $403,939 from the instructional support levy, $990,697 for the management fund, $916,116 from the voted physical plant and equipment levy, and $225,611 from the regular physical plant and equipment levy.

During the public hearing on March 24, Henriksen explained, “The proposed property tax rate this year is $11.97, just a little over $11.97, so an increase of just about 26 cents from previous [year].”

District officials noted that the school district levy is only one portion of a property owner’s total tax bill.

“The school levy of $11.90 is just a part of a property owners’ overall tax rate,” Henriksen continued.

For homeowners, the proposed change could result in a noticeable increase in tax bills due to rising property assessments.

According to Henriksen, “On a residential property with a value of $100,000, current year property taxes will be $567, and the proposed property tax rate will go up to $620.”

While the tax rate itself is set to decrease slightly, the impact on taxpayers may still be felt due to increased property values. The district attributes the need for continued funding to rising costs related to staff salaries, benefits and instructional supplies. Still, the proposal aims to balance fiscal responsibility with educational needs, ensuring quality services without substantial increases to the tax rate.

Comments: AnnaMarie.Kruse@southeastiowaunion.com