Des Moines property owners will likely see a reduction in the city portion of their property tax bill after the City Council on Monday unanimously approved a resolution directing the city manager to prepare a budget using a lower levy rate.

A proposed property tax levy of $16.24 per $1,000 of assessed valuation would be the lowest rate Des Moines has had in 24 years, Polk County assessor data shows. The new rate, 40 cents lower than the current levy, would be effective in the fiscal year that begins July 1.

“We need to clarify that we’re not going to reduce the services that we provide to our citizens and no employees are going to lose their job,” Councilman Joe Gatto said. 

He also cautioned that a lower tax levy doesn’t guarantee that property owners will see a decrease in their property tax bills.

Property valuations increased by double digits this year with homeowners seeing an average increase of 10% in assessments. Property tax bills are determined by multiplying the tax rate and a property’s assessed value. Even though a levy decreases, property owners could pay more because of their property’s higher assessment.  

In addition, Des Moines only controls a third of a property owners’ tax bill. The remainder is made up of levies from the county, school districts and smaller taxing bodies.

Mayor Frank Cownie proposed the resolution during a council workshop Monday morning. 

“People are happy that their assessments are going up,” Councilman Chris Coleman said. “But when they go up too quickly, the city has to respond.”