Iowa City Community School District measured against the strongest large districts in the state — one measure at a time · June 2026
Iowa City Community School District (ICCSD) is one of the largest districts in the state — about 14,400 students. To keep the comparison fair, it is measured here only against other large districts, not small ones. For each financial measure it sits beside two size-matched peer groups:
• Large districts — every Iowa district in this study with 5,000+ students (12 districts).
• Best-run large districts — the 5 highest-scoring of those large districts.
Each card explains the measure in plain language, why it matters to your community, and what Iowa City's number means next to its peers.
What it is: A single 1–5 grade blending everything below: financial health, the quality of financial management, and whether building plans are affordable.
Why it matters: It's the one-glance answer to “how is this district doing financially?” — 5 is excellent, 1 is in serious trouble.
Iowa City scores 2.4 out of 5 — the lowest of the 15 large districts studied — while comparably large districts average 3.9, and the best-run large districts average 4.4.
What it is: Iowa law caps how much a district may spend each year — separately from how much cash it has. This is the unused “room” left over, as a share of its budget.
Why it matters: It is the single most important measure of an Iowa district's financial health. Running it to zero (or negative) is unlawful and forces a state-supervised recovery plan.
Iowa City has just 2.3% of room left — roughly a seventh of the 16% that comparably large districts carry — and it actually went negative in 2023, the level that triggers state review.
What it is: The district's savings cushion (its general-fund reserves) measured against one year of revenue.
Why it matters: Reserves absorb surprises — a bad budget year, a late state payment, an emergency repair. In Iowa, 5–15% is considered healthy. This reserves-as-a-percent-of-revenue measure is the one the credit-rating agencies (Moody's, S&P) actually use to score a district.
Iowa City's cushion is about 8.1% — well below the 5–15% healthy range — versus 14% for large districts and 19% for the best-run large districts.
What it is: How many days the district could keep running on its rainy-day reserves — unassigned general-fund balance divided by average daily spending. (This is the strict, spendable-reserves view; it excludes restricted money, so it's lower than total cash on hand — which ran ~33 days at FY2025 close.)
Why it matters: A plain-English liquidity gauge: the GFOA guideline is to keep at least ~60 days (about two months) of cash. A thin cushion means little buffer for a bad month, a late state payment, or an emergency. (Days-of-cash is a GFOA/analyst convention; the rating agencies score reserves as a percent of revenue — the 'Rainy-day reserves' measure above.)
Iowa City could operate only about 30 days on its reserves — versus ~44 days for large districts and ~61 for the best-run (GFOA recommends ~60). It is the thinnest cushion of any large district except Waterloo, whose reserves are negative.
What it is: Whether the district took in more than it spent, averaged over the last three years (its “operating margin”).
Why it matters: Consistently spending more than you bring in drains reserves and, eventually, spending authority. Above zero means it's living within its means.
Here Iowa City is roughly break-even (+0.8%), actually a touch better than the large-district average (-1.1%) — its problem is depleted reserves and authority, not runaway recent spending.
What it is: How many years behind the current cycle the district's most recent finished audit is. (The current year is 2025.)
Why it matters: Audited financial statements are how the public, lenders, and the state verify the numbers. Falling behind erodes trust — and cost Iowa City its bond rating.
Iowa City's newest finished audit is for 2024 — one year behind, and it filed about two years late (June 2026) with five material weaknesses; its 2025 audit still isn't filed. The top districts are current.
What it is: A 1–5 grade for how cleanly the books are kept: audit opinions, internal-control problems, repeat findings, on-time filing, and reporting-excellence awards.
Why it matters: Even with money in the bank, a district needs accurate, timely, well-controlled books to make sound decisions and keep the public's trust.
Iowa City scores 1.0 of 5 — the bottom of the group — against 4.3 for large districts, reflecting late audits, unreconciled accounts, and repeat control findings.
What it is: How much of its allowed “cash-reserve” property tax the district is using — a levy whose only purpose is to build up cash.
Why it matters: Leaning hard on this tax can mean a district is taxing residents heavily just to keep cash on hand. Lower is generally better for taxpayers.
Iowa City is using 57% of this tax's limit — about three times the large-district average (18%) — i.e. taxing heavily to stay liquid, even as its spending authority is exhausted.
What it is: The school portion of the local property-tax rate, stated per $1,000 of taxable property value.
Why it matters: This is what local property owners actually pay to fund the schools — the most direct cost to the community. A higher rate is a heavier burden, worth weighing against how well the money is managed.
Iowa City's school tax rate is about $16.82 per $1,000 of value — roughly 14% above the large-district average of $14.80 (among the higher rates, though a few growing districts are higher). Paired with its heavy use of the cash-reserve levy, local taxpayers are paying comparatively more.
What it is: Everything the district has borrowed for buildings — both SAVE (sales-tax) bonds and voter-approved GO (property-tax) bonds — divided by the number of students.
Why it matters: Borrowed money is repaid for years out of restricted building funds and property taxes, so more debt per student means more of tomorrow's revenue is already committed. Some debt is healthy — especially in fast-growing districts building new schools — so it's best read alongside enrollment.
Iowa City carries about $21,232 per student in building debt — roughly 1.7× the large-district average of $12,751, and the 3rd-highest of the 15. It's one of only a few districts carrying both SAVE and voter-approved GO debt, which is why its total load is so high despite its mid-pack size.
What it is: How much the district pays each year to repay its building debt, per student.
Why it matters: This is money committed to past borrowing rather than to current students or new projects. It comes from restricted building funds and property taxes — not the classroom budget — but a higher figure means less room to maneuver.
Iowa City spends about $1,966 per student each year on building-debt payments — above the $1,582 large-district average (4th-highest of 15), though several fast-growing districts pay more. A moderate burden, on top of an already-stretched operating budget.
What it is: SAVE is the statewide penny sales tax Iowa schools use to pay for buildings. This is how many years of that sales-tax revenue the district has already pledged to existing bond payments.
Why it matters: The more years committed, the less SAVE money is free for new projects. When it's fully committed, a district must lean on property-tax borrowing (PPEL or GO bonds) or wait years for room to open up.
Iowa City has pledged about 8.2 years of its SAVE sales-tax revenue to existing bonds — the 2nd-most of any large district and well above the 5.4-year peer average — so SAVE can't fund new building until the mid-2030s, leaving PPEL and new borrowing to cover the gap.
What it is: The yearly change in the number of students, which drives most of a district's funding.
Why it matters: Declining enrollment is a common cause of school budget trouble. This shows whether Iowa City's problems stem from shrinking — they don't.
Iowa City's enrollment is essentially flat (+0.1%/yr), in line with peers — so its financial troubles are not caused by losing students. They are about how the money has been managed.