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HomeMy WebLinkAbout2024-08-29 Info Packet 4 City Council Information Packet CITY OF IOWA CITY August 29, 2024 Council Tentative Meeting Schedule IP1. Council Tentative Meeting Schedule September 3 Work Session IP2. Work Session Agenda IP3. Memo from City Manager: City Council FY2026 Budget Priorities IP4. Pending City Council Work Session Topics Miscellaneous IP5. Memo from Councilor Moe: Pop-Up Metro Site visit, August 13 - 14, 2024 IP6. Memo from Councilor Moe: Listening Post, August 17, 2024 IP7. Memo from Grants Specialist: American Rescue Plan Act (ARPA) Update IP8. Charter Review Commission: Community Input Forums IP9. Civil Service Examination: Civilian Crime Analyst IP10. Civil Service Examination: Parts/Inventory Clerk - Equipment Draft Minutes IN 1. Human Rights Commission: August 27 IP12. Senior Center Commission: August 15 August 29,2024 City of Iowa City Item Number: IP1. CITY OF IOWA CITY COUNCIL ACTION REPORT August 29, 2024 Council Tentative Meeting Schedule Attachments: Council Tentative Meeting Schedule j , City Council Tentative Meeting Schedule Subject to change CITY OF IQWA CITY August 29,2024 Date Time Meeting Location Tuesday,September 3,2024 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,September 17,2024 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,October 1,2024 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,October 15,2024 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Monday,October 21,2024 4:30 PM Joint Entities Meeting TBD Hosted by the City of University Heights Monday,November 4,2024 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,November 19,2024 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,December 10,2024 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,Janaury 7,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Monday,January 13,2025 4:30 PM Joint Entities Meeting TBD Hosted by Johnson County Brd of Supervisors Tuesday,January 21,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Wednesday,January 22,2025 2:00 PM Budget Work Session(CIP) City Hall,Emma J.Harvat Hall 410 E.Washington Street Tuesday,February 4,2024 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,February 18,2024 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,March 11,2024 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tueaday,April 1,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tueaday,April 15,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,May 6,2024 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tueaday,May 20,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,June 3,2024 4:00 PM Work session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tueaday,June 17,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tueaday,July 8,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,August 5,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,August 19,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,September 2,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,September 16,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,October 7,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,October 21,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,November 3,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,November 18,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,December 9,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Item Number: IP2. CITY OF IOWA CITY COUNCIL ACTION REPORT August 29, 2024 Work Session Agenda Attachments: Work Session Agenda Subject to change as finalized by the City Clerk. For a final official copy, contact the City Clerk's Office 356-5041 If you will need disability-related accommodations in order to participate in this program/event, please contact Kellie Grace at 319-356-5041, kgrace@iowa- city.org. Early requests are strongly encouraged to allow sufficient time to meet your access needs. Iowa City City Council - Work Session Agenda A�;; � Work Session September 3, 2024 - 4:00 PM CITY OF IOWA CITY Emma J. Harvat Hall 410 E. Washington Street www.icgov.org City of Iowa City Land Acknowledgment can be found at: icgov.org/landacknowledgement Meeting Rules can be found at: icgov.org/meetingrules You can watch the meeting on cable channel 4 (118.2 QAM) in Iowa City, University Heights and Coralville, or you can watch it online at any of the following websites: hfts:l/citychannel4.com/live channel4.com/live * https://www.youtube.com/user/citvchannel4/live ■ https://facebook.com/CitVoflowaCitv 1. Clarification of Agenda Items 2. Information Packet Discussion [August 22, August 291 3. University of Iowa Student Government (USG) Updates 4. Preliminary FY2026 budget discussion 5. Council updates on assigned boards, commissions, and committees Item Number: IP3. r 1 CITY OF IOWA CITY a � COUNCIL ACTION REPORT August 29, 2024 Memo from City Manager: City Council FY2026 Budget Priorities Attachments: Memo from City Manager - City Council FY 2026 Budget Priorities.pdf FY2025 Budget Submittal Letter.pdf � I ,r CITY OF IOWA CITY fIE MEMORANDUM �N�iWTT_*C Date: August 29, 2024 To: City Council From: Geoff Fruin, City Manager Re: City Council FY 2026 Budget Priorities Planning for development of the FY 2026 budget is underway and departments are beginning to prepare capital and operating budget proposals. Each year, staff requests that the City Council share any new budget priorities early in the budget process to ensure staff can pursue funding strategies and balance other demands on financial and labor resources accordingly. Identifying new shared priorities at this early stage helps avoid more difficult changes to the budget during Council's formal budget review in January and February. Absent alternative direction, the City Council can assume that staff will prioritize core services and Strategic Plan priorities. Current Budget & Fiscal Climate FY 2024 marked the end of a number of phased property tax reforms that were passed by the State of Iowa in 2013, including the drastic drop in taxable valuations for multifamily properties (100% taxability in FY 2014 to 46.34% in FY 2025). In 2021, the Iowa Legislature passed legislation which phases out commercial/industrial property tax replacement payments ("backfill") put into place with the 2013 property tax reform. Iowa City's backfill of$1.5 million started being phased out in FY 2023 and the City will no longer receive any backfill payments in FY 2027. Finally, in 2022 the State again pursued property tax reform with legislation signed into law by Governor Reynolds that phases out the voter-approved supplemental Library Levy ($0.27) and the Emergency Levy ($0.20), which was previously used to support our Climate Action grants and programming. Combined these levies generated approximately $2 million in revenue that is now no longer available to the City to support Library and Climate Action operations. Thus, without cutting services, these expenses need to be absorbed into an already tight General Fund. The cumulative result of these legislative impacts is that in FY 2023-24, the City experienced a .8% decline in taxable valuation, the lowest two year cycle in a ten year period by a wide margin. FY 2025 experienced a modest 3.61% growth in valuations, which means over the last three years our average valuation growth averaged less than 1% per year. FY 2026 is a non-valuation year, which generally means that valuation growth will be minimal. With an eye to FY 2027 and beyond, new construction has slowed considerably in the second half and 2024 and first half of 2025, which is a negative leading indicator for future valuation growth. On the expense side, the City is also still experiencing the impacts of the inflationary pressures that began in 2022. Numerous capital projects have been over budget due to material costs, supply chain August 27, 2024 Page 2 disruptions and labor shortages. Operating inputs including insurance, chemicals, and other supplies also continue to impact department budgets. Pressures on both the revenue and expense sides paint a clear picture of difficult budget environments ahead in the next two or more fiscal years. Unfortunately, demands for many of our public services and the services of external organizations that we support financially continue to grow. It is highly unlikely we can meet these growing demands based on the budget environment. To provide more detail on the above noted pressures, the FY 2025 budget transmittal letter is attached to this memo. Budget Goals The FY 2025 budget included three goals (listed below). City Council may choose to continue prioritizing these considerations or identify new areas of focus for the FY 2026 budget. ■ Continue to dedicate resources towards advancing City Council's Strategic Plan priorities and adopted Master Plans. • Seek fiscal stability and maintenance of service levels despite compounding financial pressures due to state property tax reform and escalating costs of operations. • Ensure reliability of core services and infrastructure remains high while balancing cost impacts on residents and businesses. Conclusion FY 2026 brings with it considerably more challenges than in past years. This is especially true recognizing that business and household expenses are increasing, and that higher taxation and service charges may be increasingly difficult to absorb. The ongoing phase in of the Library and Emergency levies means that the City will need to continue to absorb those operations into other levies over the next couple of years. Despite these challenges staff will work diligently to ensure core services remain strong, strategic plan priorities are well-resourced, our financial stability remains solid, and that we recognize the financial pressures that residents and businesses face when determining our property tax needs. While the FY 2026 budget is being prepared and reviewed, the City will be negotiating full collective bargaining agreements with Police and Fire and a re-opener with AFSCME. The agreed upon wage settlements will have a significant impact on the City's budget environment in the coming years. As with all budgets, staff will review service charges and recommended adjustments as needed in a manner consistent with our strategic plan. Of notable need in FY 2026 will be an estimated $1 million in new revenue to fill the final gap projected for continued fare free transit service. At the time of the FY 2025 budget, staff anticipated that this gap would be filled by an increase of 1% in the utility tax. August 27, 2024 Page 3 Staff looks forward to any input the City Council has for the FY 2026 budget at this time. To the Honorable Mayor and City Council Members, It is my pleasure to submit Iowa City's operating and capital budget for Fiscal Year 2025.Although Iowa Code only requires formal adoption of an annual budget, we have included a three-year financial plan (FY 2024-2026) and five-year Capital Improvement Program (2024-2028) for planning purposes. The budget is one of the most important documents the City prepares as it identifies the services to be provided and the mechanisms to finance those services. Any future modifications of this budget will be fully disclosed through formal City Council actions at public meetings, in accordance with State of Iowa law. This budget aims to provide resources to deliver reliable and efficient municipal services, invest in critical infrastructure, further strategic plan priorities, and implement adopted master plans rooted in public input. The budget also contains prudent contingency line items and reserves which aid the City in weathering both unexpected expenditures and revenue shortfalls. However, the current challenging economic climate and both the 2013 and 2023 State of Iowa property tax reform laws have resulted in significant and still emerging budgetary strains. In Fiscal Years 2023 and 2024, the City's taxable valuation declined in consecutive years for the first time in recent history as impacts from legislative reforms and state-mandated valuation rollbacks outpaced taxable growth. The financial strain from the State of Iowa tax reform and gradual recovery of the local economy from the pandemic is compounded by macroeconomic challenges including inflationary and labor supply pressures that are increasing operating and capital expenditures and diminishing the City's overall purchasing power. Any further budgetary pressures, such as additional State of Iowa mandated property tax reform measures or an economic recession, could drive impacts to service levels in the coming years. This risk is only heightened by growing demands for service as our population continues to expand. Additionally, the City's flexibility to pursue bold investments in new initiatives with traditional local revenue streams will be extremely limited. Although I remain confident in the City's financial foundation, the budget keeps discretionary expenditure growth to a minimum due to these lingering pressures. Resources were prioritized to advance the City Council's Strategic Plan, implement various adopted master plans, and support core service levels in critical areas such as public safety, transportation infrastructure, and our public utility operations. Investment in the City Council's Strategic Plan The following section highlights examples of investments this budget makes in the values, strategies, action items, and resources prioritized in the City Council's Strategic Plan. Strategic Values Social Justice, Racial Equity, and Human Rights: For the third consecutive year, $100,000 is provided forthe Social Justice and Racial Equity Grant Program.Approximately$600,000 in Black Lives Matter funding remains unallocated and is available for the City to invest in supportive programming. Sponsorship funds are included for community commemorations such as Martin Luther King Jr. Day, Indigenous Peoples' Day and Juneteenth. Programming and outreach 10 activities are expected to increase as a result of the newly created Equity and Human Rights Engagement Specialist that was approved in Fiscal Year 2024. Commitments to social justice, racial equity, and human rights are demonstrated in various department budgets in ways such as topical programming in Parks and Recreation,the Iowa City Public Library and the Senior Center. Other value-aligned examples throughout the budget include funding for non-profit crisis response services, free fare transit, annual ADA improvement projects, and expanding translation of important materials. Climate Action: With the State of Iowa's elimination of the Emergency Property Tax Levy, this budget fully incorporates all Climate Action activities in the General Fund. The Fiscal Year 2025 budget includes funding for a variety of programs that aim to help the City achieve our Climate Action and Adaptation goals. Over$400,000 is included for programs including residential energy efficiency grants, Root for Trees vouchers, HERS grants to homebuilders, community climate action grants and multiple supplemental affordable housing dollars for both public and private housing providers. Many of the City's sustainability efforts are also incorporated into various master plans and capital projects such as solar panel installation, tree plantings, prairie management, fare free transit, expanded electric vehicle charging stations, multi-modal roadway improvements, community gardens, and waste reduction programs. Partnerships & Engagement: This budget includes funds to support various outreach events throughout the City such as Party in the Park and Rec 'N Roll events, National Night Out and other proactive public safety outreach events, Emergency Services Youth Camp, and a focus on engagement of all ages through Recreation, Library, and Senior Center programming budgets. Partnerships with private and public entities are commonplace in operating budgets. Examples of new partnerships in the FY 2025 budget include enhanced funding for trash removal and general maintenance of the central business district with the Iowa City Downtown District, a new civilian data analyst position in Police that will help Iowa City support the County's emerging community violence intervention program and funding for the new winter shelter service agreement with Shelter House. Strategic Impact Areas Neighborhoods & Housing: In alignment with the City's Affordable Housing Action Plan, the General Fund transfer to the Affordable Housing Fund is projected to increase by 3% to $1,030,000. Allocations from this fund will now include an approximately $75,000 increase in support of the community's winter shelter. Funding is allocated to continue to support the Shelter House Street Outreach program. Similarly, funding is included to launch an update to the City's Comprehensive Plan. Supplemental revenue streams including fee-in-lieu payments, tax increment financing revenue and federal grants will continue to expand the City's capacity for investments in affordable housing. Planned investments in parks and trails, including renovation and acquisition, that contribute to the City's public open space accessibility goals can be found throughout the City's Capital Improvement Program. Mobility: The Fiscal Year 2025 budget continues to invest in projects and programs that promote a healthy multi-modal transportation network in Iowa City. Parking and Climate Action funds are budgeted to bolster both public and private electric vehicle charging stations in the community. 11 Bicycle and pedestrian infrastructure improvements will be pursued with the implementation on numerous Capital Improvement Program projects including the replacement of the Gilbert Street Bridge and reconstruction of Dubuque Street will provide safer pedestrian accommodations in heavily traveled areas of the community. Sidewalk infill, curb ramp, and transit stop improvement projects will continue to make our streets more accessible for all users.The City will begin design for the Highway 6 bicycle and pedestrian trail extension project between Broadway and Fairmeadows in Fiscal Year 2025 in anticipation of that work being constructed in 2026. This budget also begins to lay the financial foundation for fare-free transit service after the current pilot project sets to expire in the summer of 2025. The first step is the implementation of several parking related parking fee increases that will support enhanced cleaning, a more aggressive annual parking deck maintenance program and fare-free transit. Fee increases include moving to $2/hour in all parking decks (first hour free is maintained), and on-street meters increasing to $1.50-$3.00/hour depending on location. In addition, several parking related citations will be increased. The combined impact of the parking fee increases is approximately S3 million. Of that amount, approximately$1.5 million is targeted for continuation of the fare-free transit program. In Fiscal Year 2026, staff will also recommend a 1% utility tax increase, which would be the final revenue stream projected to be needed to maintain the fare-free transit service. The long-term commitment to fare-free transit, combined with the planned construction of the new transit building will ensure our community has one of the most robust and accessible transit systems in the country. Economy: Fiscal Year 2025 funding to support Greater Iowa City, Inc. will ensure that Iowa City remains in active partner in regional economic and community development. Additionally, this budget continues to provide $25,000 to support a BIPOC Business Accelerator Program and $115,000 in Opportunity Funds set aside for small business grant programs and technical assistance needs that may arise. Community development funding is also provided to support local arts and cultural and entrepreneurial support agencies. Consistent with the Strategic Plan, General Fund dollars and American Rescue Plan Act monies are budgeted to support priority investments in partnership with the Downtown and South of Six SSMIDs. Previous ARPA obligations which advance the City's strategic economic action items will continue to be implemented in Fiscal Year 2025. This includes $4 million to support the regional Inclusive Economic Development Plan and $750,000 to support the Johnson County childcare wage supplement program. Safety & Well Being: Several strategic action items are advanced in the Safety & Well-Being category through this budget. The City's Aid to Agencies grant program is increased by 3% in the Fiscal Year 2025 budget and additional funds are also budgeted for the aforementioned winter shelter agreement with Shelter House. American Rescue Plan Act funds will be invested in capacity building projects for the Free Medical Clinic and Neighborhood Centers of Johnson County, both of which provide critical well-being services to our community. The Fire Department budget contains an extra $300,000 boost in the staffing contingency line as the City continues to prudently plan for the opening of a future fifth fire station. A Civilian Data Analyst position is added in the Police Department. This position will support numerous efforts, 12 from enhancing public transparency to investigative support and participation in community partnerships such as non-profit capacity building efforts and the Johnson County community violence intervention program. The budget also provides training and support to move our mental health liaison partnership with CommUnity to a co-responder model with the goal of continuing to increase the contacts our mental health liaisons have with the community. The health and well-being of the older population is supported through investments in the Senior Center building and programming. The Fiscal Year 2025 budget provides for the ability to offer expanded evening and weekend hours at the Senior Center. The Capital Improvement Program also contains funding to complete two exterior renovation projects that will commence in 2024 and begin to plan for and construct interior improvements to the historic building in 2025-2027. Strategic Resarrrces: Staffing & People: The macroeconomic headwinds and continued State mandated property tax reform significantly limits the City's ability to add personnel with the Fiscal 2025 budget. Only two new positions are introduced in the budget, including a previously approved and hired Senior Facilities Design and Construction Manager position in Public Works. This position will support major public facility projects in the Capital Improvement Program, most notably the new transit and equipment buildings that are now fully funded. The second position is the previously mentioned Civilian Data Analyst in the Police Department. Both positions relate directly to the City's Strategic Plan with the data analyst position being specifically requested by the City Council in the August 2023 preparatory work session for the Fiscal Year 2025 budget. Many other operations are in need of additional resources to support our growing community.The City must keep core staffing and resource needs in sight as those investments will be needed when budgetary resources allow. Facilities, Equipment, and Technology: Funding is provided in several operations to support continued data collection and management for the ongoing buildout of our asset management system. This investment is helping the City build a value-informed data-driven foundation for our organization as outlined in the Strategic Plan. Supplementing this is newly budgeted funds in the City Manager's Office to complete a comprehensive statistically valid community survey that will help staff and elected officials better understand needs and desires of those we serve. The Capital Improvement Program outlines a very aggressive investment in public facilities that will support current and future generations. New, expanded or renovated facilities that are funded in the plan include the Senior Center, transit building, equipment building, landfill equipment building, wastewater digester complex, City Park pool and more. Many of these projects are supported by the Facility Reserve Fund, which has been building up financial capacity over the last several years. However, no Fiscal Year 2025 transfer is planned for the Facility Reserve Fund, which is now drawing its fund balance back down to support the construction of the equipment building, City Park Pool and the Senor Center. It is hoped that any future surplus funds will be directed to the Facility Reserve Fund. Financial: This budget maintains a steady tax rate and adopts several rate and fee increases to ensure fiscal health and stability. The "Fiscal Year 2025 Budget Overview" section of this 13 document further details the City's tax and fee rates and debt Financial Goals service strategy for Fiscal Year 2025. The strategic plan goal to annually increase the Emergency Fund balance by 5% is not met Continue to dedicate resources with the Fiscal Year 2025 budget, but it is hoped that future towards advancing City Council's surpluses may provide such opportunity. The Emergency Fund Strategic Plan priorities and balance is approximately$5.4 million. adopted Master Plans. Investment in Master Plans and Core Services Seek fiscal stability and maintenance of service levels As previously outlined, this budget provides funding to support despite compounding financial continued implementation of various City Master Plans including pressures due to state property the Climate Action Plan, Bicycle Master Plan, and Affordable tax reform and escalating costs Housing Action Plan. Over $23 million in the five-year Capital of operations. Improvement Program is budgeted for parks and recreation projects, many of which implement the Parks&Recreation Gather Ensure reliability of core services Here Master Plans.The Fiscal Year 2025 budget includes funding and infrastructure remains high `"hies balancing cost impacts on for playground improvements at College Green Park, residents and businesses. redevelopment of the Terrell Mill Skate Park, Mercer Park Ball Diamond improvements, and new park amenities at the Shannon Drive park. Funding is also provided in Fiscal Years 2025 and 2026 for the replacement of the City Park Pool facility. Finally, the bulk of this budget is dedicated towards ensuring core service levels are maintained, including responsible funding levels for roadway repairs and equipment replacement. In addition to annual over $2 million in funding for the annual pavement rehabilitation program, several important road rehabilitation and reconstruction projects are planned for 2024-25, including the Gilbert Street Bridge replacement, Dubuque Street reconstruction, Camp Cardinal Road extension, and the rehabilitation of the Iowa Avenue pedestrian bridge across Riverside Drive. Various water, sewer, and landfill projects are also planned in accordance with replacement and maintenance schedules. Inflation, supply chain issues, and labor shortages continue to have significant impacts on operations, as well as project budgets and completion timelines. Additionally, rising insurance premiums continue to have a significant impact on the budget. Liability insurance is projected to increase 21.4% in Fiscal Year 2025 after increasing 11.6% in Fiscal Year 2024. Similarly, Fire and Casualty insurance is projected to increase 35% in Fiscal Year 2025 after increasing 25% in Fiscal Year 2024.These significant market adjustments in the insurance industry have increased costs over$850,000 over Fiscal Years 2024 and 2025. As these essential costs eat up more of the available resources, value-added programs and services are impacted in the form of stagnated or reduced budget allocations. Budget Impacts and Financial Goals This budget was developed within the context of several significant financial impacts: • The continued phase out of the commerical and industrial backfill from the State of Iowa which was previously approximately $1.5 million and is projected to be only $617,000 in Fiscal Year 2025 before being fully zeroed out in Fiscal Year 2027. 14 The elimination of the Emergency and Library levies and additional growth restrictions placed on city budgets in the 2023 State of Iowa proprty tax reform legislation. The two levies totaled .47 cents per$1,000 of taxable property valuation and will be fully phased out of the combined General Fund levy over the next few years. A sharp drop of 8.3% in the State's residential rollback rate, the single largest drop since the late 1970s. The impact of this drop is significant for Iowa City as multi-family properties were now classified as residential due to the 2013 State of Iowa property tax reform law. • Economic inflation, higher costs for goods and services, and ongoing financial impacts caused by the pandemic and assocaited economic recovery. In light of these impacts, the preparation of this budget was guided by three primary financial goals that seek to establish a sound fiscal strategy for the next year and beyond. First, within the context of heightened financial challenges, the budget aims to prioritize adequate resources for making progress on City Council's Strategic Plan goals and adopted Master Plans. Second, this budget continues to respond to the 2013 and 2023 State of Iowa property tax reform laws while also confronting macro-economic inflationary impacts on services and capital projects. Finally, as the City navigates the next few years of strong financial headwinds and competing budgetary pressures, it will be critical to ensure sufficient resources are provided to maintain core service levels. As such, this budget maintains a stable property tax rate and several utility rate and fee increases to help address some acute challenges in our core service areas. Any new, non- essential or strategic initiatives must be carefully evaluated for long-term financial impact and will likely need to rely on alternative funding sources to implement. Fiscal Health and Outlook In general, Iowa City benefits from a strong local economy anchored by the presence of the University of Iowa and the University of Iowa Hospitals and Clinics. The local economy consists of a diverse set of successful industries that together help sustain one of the most consistent stretches of low unemployment rates in the nation. The City of Iowa City has a long tradition of responsible budgeting policies which has created a strong financial foundation and helped the community weather both past and recent economic downturns while sustaining top-notch service delivery. In 2023, Moody's Investors Service reaffirmed its highest quality bond rating (Aaa) for the City's general obligation debt. Moody's noted factors that could negatively impact the City's bond rating include a substantial and sustained reduction in reserve funds or large growth in debt leverage. Iowa City's bond rating is the product of'exceptional budget management practices, policy credibility and effectiveness, and transparency and disclosure' (Moody's Credit Opinion April 2023). Ultimately, our strong financial position lowers the cost of borrowing and ensures more of our community's dollars are spent on service delivery and Strategic Plan priorities, rather than interest payments. Despite the stable financial position of the organization, the public should be aware of the economic trends shaping the community. Iowa City has many attributes that attract new residents to our city. A strong job market, good schools, world class healthcare, and diverse cultural amenities all contribute to the desirability of our area for families, retirees, and young professionals to make their permanent homes. New residents, including students, bring a social 15 and economic vibrancy that helps define Iowa City. However, population growth has a profound effect on service delivery, land use, and housing affordability. Growth creates additional service demands and stresses transportation and utility infrastructure. All of these challenges must be acknowledged and managed for Iowa City to retain its attractiveness and competitiveness. Prior to the pandemic, strong growth in our tax base allowed the City to absorb the necessary expenditure increases that accompany population growth and devote significant resources to new programs while weathering the implementation of the State of Iowa's 2013 ten-year property tax reform legislation. However, Fiscal Years 2023 and 2024 saw the City's tax base shrink due to both a plateau in development activity and large valuation rollbacks mandated by the 2013 state property tax reform law that reduced the taxable percentage of multi-residential properties. Additionally, about$1.5 million in annual backfill payments the State previously made to the City to compensate for lost commercial and industrial property tax revenue is now being phased out and is estimated to be approximately only $617,000 in Fiscal Year 2025. This will decrease to $308,000 in Fiscal Year 2026 until it is eliminated in Fiscal Year 2027. While state property tax reform has strained the City's primary revenue source, rising operational costs tied to inflation and growing service demands have created additional budgetary pressures over the last two years. These factors make moving forward with cautious budgeting and strong reserves critical. Although the City benefits from a strong financial foundation, any additional financial stressors such as lingering inflation pressures, an economic recession, new property tax reform legislation, natural disasters, or public health crises could tip the scales towards higher expenditure cuts, service level reductions, or necessary rate increases. Fiscal Year 2025 Budget Overview The Fiscal Year 2025 budgetary expenditures total $241,809,952. Of the total budget, $71,132,899 is forthe General Fund and$76,118,294 is directed to Capital Projects.A breakdown of the budget by fund type follows: Fiscal Year 2025 Expenditure Comparison by Fund Type excludes transfers $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $ General Enterprise Special Revenue Debt Service Capital Projects FY2025 $71,092,899 $64,588,642 $16,219,777 $13,787,740 $76,118,294 16 Property taxes and charges for services account for the majority of City revenues. The following table depicts a year-over-year comparison of Iowa City's revenue mix across all funds. Fundsi FY2024 Revised FY2025 Budget Percent Change Property Taxes $ 66,312,743 $ 68,821,500 3.8% Other City Taxes $ 7,656,308 $ 7,964,400 4.0% Licenses&Permits $ 2,574,121 $ 2,592,880 0.7% Use of Money&Prop $ 3,299,263 $ 3,292,385 -0.2% Intergovernmental $ 53.846.889 $ 65,568,611 21.8% Charges for Services $ 43,734,534 $ 49,415,585 13.0% Misc. $ 10,860,983 $ 9,052,601 -16.7% Other Financial Sources $ 44,315,267 $ 17,144,900 -61.3% Total $ 232,600,108 S 223,852,862 -3.9% The modest 3.8% increase in property taxes follows the previous year where those same tax receipts actually declined. Thus, the two-year growth in property tax receipts is notably low, especially considering the inflationary environment and growing demands on City operations. Larger swings in Intergovernmental and Other Financial Sources are not considered atypical as those categories are influenced greatly by the timing of state and federal grants as well as debt sales. The following pie chart displays revenue across all funds for FY 2025 only. The chart shows the heavy reliance on taxes and charges for services to support the various projects and services contained in this budget. All Funds Revenue Sources (FY 2025) ■ Misc. A. 4% Other Sources Intergovernmental rA Use of Money&Prop,1% Licenses&Permits,1% Other City Taxes,4% It is imperative to consider how the overall revenues and expenditures in this budget will impact local households and businesses. The property tax rate remains unchanged at$15.63. Although this rate represents a 12% reduction in our property tax rate over the past decade, it is likely 17 further reductions will not be possible in the coming years and failure to grow the City's tax base could actually force property tax rates back upwards. Economic inflation has significantly impacted budgets while diminishing the City's purchasing power.To address some of these acute challenges in the utility and enterprise funds,this budget includes several rate increases including a 5% Wastewater rate increase, 3% Water rate increase, $1/month Recycling rate increase, a $2.50 increase to the Landfill tipping fee, and several parking related fee and citation increases. Based on a flat property tax rate and the aforementioned utility rate increases, it is estimated in Fiscal Year 2025 a household with a $100,000 assessed home value will pay approximately$83 less per year (approximately $6.92 less per month) in taxes and fees for basic City services compared to the previous year (3.9% decrease). However, it is important to remember that assessed values of residential property have likely also increased for most residents. For example, if a$100,000 home's assessed value increased by 20% between FY 2024 and FY 2025 then actual property taxes paid to the City will increase approximately $15 per year (as opposed to dropping $130 per year). The following bar chart illustrates the estimated overall financial impact of tax and fee changes to resident households. For simplicity purposes, the table uses $100,000 in assessed home value with no assessment growth so the reader may easily calculate tax payments based on their own home value. Annual Financial Impact to Residential Households $2,500 $2,000 $1,500 I $1,000 $500 $o -$500 — - - — - - FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 ■Property Taxes $900 $901 $869 $884 $848 $854 I $724 ■Stormwater $54 $60 $60 $60 $60 $66 $66 ■Refuse $229 $229 $240 $240 $276 $300 $312 8 Sewer-800cubic feet $433 $433 $433 $433 $433 $442 $464 9 Water--800 cubic feet $380 $399 $399 $419 $419 $436 $449 Total $1,996 $2,022 $2,001 $2,036 $2,036 $2,098 $2,015 ' Percent Change 0.6% 1.3% -1.1% 1.8% 0.0% 3.0% 1 -3.9% Property Tax Overview The taxable valuation of property subject to all levies in Iowa City decreased approximately 0.4% in both Fiscal Years 2023 and 2024, despite assessed growth increasing approximately 5% over this same two-year period. This was driven largely by residential tax rollbacks imposed by the State which significantly reduced the taxable portion of residential properties. Prior to assessment year 2013 (Fiscal Year 2015), multi-residential properties were classified as commercial and 18 taxed at 100% of assessed value. Since then, the taxable percentage of multi-residential properties has dropped 34% annually and in Fiscal Year 2024, the taxable percentage dropped over 9%. Multi-residential properties are now permanently taxed at the same rate as residential properties. While the 2013 property tax reform legislation has clearly provided significant benefit to multi-residential property owners, it places additional strain on the City's budget. Taxable % of Residential Properties 100.00% -- 90.00% 80.00% 70.00% 60.00% -- 50.00% �- 40.00% � FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 1 Taxable% o 0 0 0 0 o a o 0 0 0 of Multi-Family 95.00% 90.00% 86.25% 82.50% 78.7S% 75.00% 71.25% 67.50% 63.75% 54.65% 46.34% ■ Taxable% 54.40% 55.73% 55.63% 56.94% 55.62% 56.92% 55.07% 56.41% 54.13% 54.65% 46.34% of Residential With multi-residential properties now being collapsed into the residential tax rate, a higher percentage of the City's tax base is subject to the residential rollback rate set annually by the State. The Fiscal Year 2025 residential rollback rate dropped 8.3% to 46.34% causing a significant reduction in taxable valuation in the residential sector. The 2023 State of Iowa tax reform eliminated both the Emergency and Library levies and added them to the General Fund levy taking it from $8.10 to $8.57. However, State mandated growth limitations will force this levy back down to$8.40 in Fiscal Year 2025 and the levy will be mandated to again be no higher than $8.10 by Fiscal Year 2029 (although State growth limitations may drop it lower than $8.10 during this period). This change, along with added property exemptions for seniors and military veterans will further strain our primary revenue source going forward and place additional pressure on other property tax levies and alternative revenue sources. For Fiscal Year 2025, the taxable valuation of property subject to all levies in Iowa City increased slightly by 3.606%while total assessed values grew robustly by 18.173%.While new construction and higher property values pre-pandemic were sufficient to make up for the reduction in the taxability of residential and multi-residential properties, the Fiscal Year 2023 and 2024 budget years marked a juncture in this trend with rollback rates outpacing the assessed growth. It is important to remember that tax valuations occur in a two-year cycle. Typically, the City experiences a larger boost in taxable value in valuation years (odd years). However, Fiscal Year 2023 deviated from that trend and the taxable valuation decreased, again due largely to a reduction in the taxable percentage of residential properties (including multi-family). These rollback impacts, combined with stagnant valuations and inflation reducing buying power, led to another decrease in taxable valuations for Fiscal Year 2024. While the 3.606% taxable growth in Fiscal Year 2025 is a positive step forward, it falls well short of needed levels of growth that were 19 experienced in the previous Fiscal Years of 2015, 2017, 2019 and 2021. As shown by the following chart, Fiscal Year 2023 and 2024 marked the lowest two-year total in taxable valuations growth within the last ten years by a wide margin followed by a modest increase in FY Year 2025. Total Property Tax Valuations & Percent Change over Prior Fiscal Year $5,000,000,000 10.00% v $4,000,000,000 - 9.00% $3,000,000,000 6.00% m $2,000,000,000 4.00% F- 2.00% $1,000,000,000 J ' 0.00% r� o 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 -2.00/a Taxable Value $3,182, $3,421, $3,542, $3,745, $3,923, $4,258, $4,396 $4,375 $4,360 $4,517 Val%Change 1.46% 7.50% 3.55% 5.72% 4.74% 8.54% 3.24% -0.46% -0.36% 3.61% In light of these financial impacts and for the second consecutive year, the Fiscal Year 2025 budget includes no change in the overall property tax levy rate. For the previous eleven consecutive years ending in Fiscal Year 2023,tax rate reductions were made possible by prudent debt strategies, operational efficiencies, and valuation growth. Notably, reductions in the debt service portion of the tax levy had been achieved through debt restructuring and early bond retirement strategies, fueled by valuation growth. However, our debt service revenue is no longer keeping up with project costs in this hyperinflationary market and in Fiscal Year 2025 the debt service rate is increased slightly to help maintain the investment impact of our Capital Improvement Program. 0 Property Tax Rate vs. Valuations E 4,000 17 3,000 16.5 2 000 16 v 11,05 15.5 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 15 v ■ Tax Value(millions) $3,183 $3,421 $3,543 $3,745 $3,923 $4,258 $4,396 $4,376 $4,360 $4,517 M X Val%Change 1.46% 7.50% 3.55% 5.72% 4.74% 8.54% 3.24% -0.46% -0.36% 3.61% m ~ t•Ptax Rate 16.651 16.583 16.333 16.183 15.833 15.773 15.673 15.633 15.633 15.633 Rate%Change -0.32% -0.41% -1.51% -0.92% -2.16% -0.38% -1.01% -0.26% 0.00% 0.00% The following chart shows a detailed breakdown of the City's property tax asking for Fiscal Year 2025 compared to the previous year. The total in property tax dollars levied by the City increases by 4.8% in Fiscal Year 2025.Total property revenue is projected to be$69.5 million. This revenue source provides approximately two-thirds of total revenue, excluding transfers, in Fiscal Year 2025. The following table shows a decrease in the General tax levy with offsetting increases in the Tort Liability and Debt Service levies. 20 Please note that a property tax bill is a function of property value, the taxable percentage of the property as determined by the state, and local levy rates from all taxing bodies. Thus, most property owners' tax bills will increase despite the City's stable tax levy rates. FY2024 FY2025 Tax Rate Dollars 11D011ars IIE per ffl General Fund Tax Levies: General $33,866,983 8.100 $36,792,773 8.402 Transit $3,972,054 0.950 S4,160,117 0.950 Tort Liability $1,214,361 0.290 S 1,578,392 0.360 Library $1,128,899 0.270 0.000 Emergency $836,222 0.200 0.000 Subtotal: $41,018,519 9.810 $42,531,282 9.712 Agland Levy $4.543 3.003 $3.861 3.003 General Fund Property Taxes $41,023,062 $42,535,143 Special Revenue Levies: Employee Benefits $13,982,255 3.344 S14,644.268 3.344 Subtotal: $13,982,255 3.344 $14.644,268 3.344 Debt Service $10,695,221 2.478 $11,636,020 2.577 %Change from prior year -0.37% 0.00% 4.74% 0.00% SSMID Levy-Downtown $505,532 2.500 $544,919 2.500 SSMID Levy-South District $106,673 5.000 $117.475 5.000 Iowa City's tax rate reflects enhanced levels of public services (e.g. full-time fire department, senior center, human rights, FY2024 Municipal Property transit service, etc.), unique state and federal mandates (e.g. Tax Rates in Eastern Iowa Chapter 411 public safety pension contributions), a lack of alternative revenue sources (e.g. local option sales tax, North Liberty $11.45 gaming, etc.), and other factors such as a significant number Coralville $14.31 of University of Iowa affiliated tax-exempt properties within the Iowa City $15.63 Cedar Rapids $16.25 jurisdiction. Past efforts to reduce Iowa City's property tax rate Davenport $16.78 have brought our community in closer alignment to the tax . rates of other cities in Eastern Iowa. When compared to the ten largest cities in Iowa, Iowa City has moved from one of the highest tax rates in the state to the middle of the pack. Looking ahead, 21 it is unlikely additional rate reductions will be possible in coming years, and rate increases could become necessary in response to the many competing financial stressors discussed throughout this transmittal letter. General Fund Overview The General Fund,which includes services such as police,fire, parks and recreation, and general government, represents approximately one third of the total budget. General Fund operations are largely supported by property taxes, which constitute approximately 67% of the total revenue in this fund. FY2025 Revenues & Other Financing Sources excludes transfers `other Financing Miscellaneous_ Sources Charges for Fees& 12% o Services 2% Intergovernmental Use of Money& 7% Property Licenses&Permits 2% 4% Property Taxes 67% Other City Taxes 5% if - Prioritization of General Fund expenditures is crucial considering annual salary and benefit growth (generally 3-5% annually), rising supply and material costs, and increased service demands due to a growing population. On the expense side, the Fiscal Year 2025 budget includes an increase of 4.50% in General Fund expenditures (excluding transfers) over the Fiscal Year 2024 Adopted. That increase was fueled by non-discretionary line items such as collectively bargained wages, mandated employment benefits and necessary insurance costs. Total FTE increased two from 647.7 to 649.7. Personnel expenditures increased 4.52% over Fiscal Year 2024. The overall increase in expenditures is reflective of supplies and services at current service levels costing more, rather than new expenditures being added. Contingency for Fiscal Year 2025 is 30.62% which is primarily an increase for anticipated staffing in a future fire station. FY 2025 General Fund Expenditures by Category exrlud s nsfers Services 18% Contingency rsonne 2% 5% Supplies Capital Ou3ay 2% 22 In Fiscal Year 2024 the City drew down General Fund reserves by approximately $4.5 million to support a land purchase in Downtown Iowa City. That acquisition is expected to be short-term as the City will look to lead on a public/private partnership that will build taxable value on the site. Similarly, Fiscal Years 2024 and 2025 include reserve drawdowns from the Facility Master Plan reserve to support planned projects including the Senior Center renovation, equipment building construction and reconstruction of City Park Pool. The planned reserve draw down will take the General Fund unassigned fund balance from the 42% level in Fiscal Year 2023 to 31% in Fiscal Year 2025. While this number falls within the City's policy of maintaining a balance between 25- 35%, a close eye will need to be kept on this number given the financial headwinds previously outlined. Enterprise / Business Fund Overview Enterprise or Business Funds refer to specific operations intended to be self-sustaining without the need for subsidy from property taxes or revenue sources other than fee collection directly related to the operation. The budgeted revenues, expenditures, and corresponding fund balances of the City's enterprise funds are detailed in the following table. Each of the City's enterprise funds are in varying, yet stable conditions.A column has been added to indicate the approximate health of each fund (AAA= Good, AA= Adequate, A= Needs Monitoring). Y Estimated Unassigned �— Restricted, Unassigned Fund Transfers In Committed, Fund Balance, m Estimated Budgeted Transfers Fund Balance as% _ Revenues Bcpendltures out Balance of Rev 8 Trans 6130125 Assigned 6/3012025 In LL Parking 8,963,8151 1,500,000 5,162,374 3,244,800 3,981,4821 498,702 3,482,780 33% A Transil 7,928,300 4,997,200 11,955,550 2,955,500 4,439,524 2,761,556 1,677,968 13% A Wastewater 13,353,500 5,375,000 12,714,600 6,732,500 21,185,210 8,317,873 12,867,336 69% AA Water 12,250,200 1,872,200 10,356,952 3,640,200 14,234,372 4,965,050 9,269,322 66% AAA Refuse 5,149,300 7,000 4,731,600 250,000 2,186,413 - 2,186,413 42% AA Landfill 7,964,900 1,514,800 6,079,450 1,525,000 22,800,762 20,061,054 2,739,708 29% AA Airport 440,500 100,000 436.550 350,000 42,505 42,505 8% A Stormwater 1,916,800 1,101,200 681,900 2,135,000 1,716,909 662,961 1,053,948 350% AA ICHA 12,892,728 0 12,469,766 30,700 7.098,425 1.378,686 5,719,739 44% AA In response to some of current and anticipated pressures on many of the Enterprise Funds, this budget adopts several rate and fee increases. Although some funds present stable or adequate positions, proactive, incremental increases to some rates are included to avoid larger hikes when the fund is in a more critical condition. ■ $1/month Recycling rate increase ■ $2.50 per ton increase to the Landfill tipping fee • 5% Wastewater rate increase (approximately +$1.84/mo. per home) • 3% Water Rate increase (approximately +$1.09/mo. per home) Additionally, this budget adopts multiple parking related fee changes. This includes standardizing all parking decks at $2/hour while maintaining the existing first hour free program. Parking meter 23 costs will increase between $.50 to$1.50 per hour depending on location. Lastly, several parking related citations, including expired meter violations, will are proposed to be increased with this budget. 2. Capital Improvement Program (CIP) Highlights The capital budget for Fiscal Year 2025 totals$76,043,300 in planned expenditures and the five- year CIP totals $274,559,947. The majority of CIP projects in the five-year period aim to improve the local transportation network, municipal utility system, and public parks and open spaces. The five-year program continues to reflect the City Council's priorities established in previous fiscal years. It is also informed by adopted master plans, data-driven road condition index analyses and long-term utility system plans. Since 2021 it has not been uncommon to see capital project budgets increase by 20-30% due to cost increases driven by labor supply, inflation and supply chain disruptions. As such, we are buying less with our dollars and relying on reserves to keep projects moving forward without even more costly delay and disruption to the community. Each year, significant resources are committed to annual capital projects including water and Capital Improvement Projects by Category 2024-2028 Airport 5i_reet5,8.ridges,:�nd Government 45°Y Buildings Publichafety 2% — Culture&Rec—/ Water/Wastewater/ 12% — Stormwater Transit&Parkt Landfill 21% 12% 4% sewer main replacements, fire truck replacements, roadway improvements, facility projects, and curb ramp replacements. Examples of recurring projects in this five-year Capital Improvement Plan include bicycle master plan improvements, annual tree plantings, bus stop improvements, and ADA improvements. Other examples of significant projects that align with Council priorities and are budgeted for in the 2024-2028 Capital Improvement Program include the following (many projects will span multiple years): 2024 • Wastewater Digester Complex rehab • Mercer Park ball diamond improvements a Gilbert Street Bridge replacement• Dubuque Street reconstruction • College Green Playground replacement• Shannon Drive Park buildout • Iowa Ave Pedestrian Bridge Rehab • Terrell Mill Skate Park redevelopment • Fire Station #1 bay floor rehab P Landfill equipment building replacement 24 2025 Equipment building replacement + Court Street reconstruction Transit building replacement • N. Gilbert Street reconstruction • Airport terminal building reconstruction • Parkland acquisition Landfill Compost pad expansion ■ Bradford Drive water main replacement City Park Pool replacement • Carson Lake buildout 2026 Dodge Street reconstruction Senior Center interior improvements • Library carpet and furnishings • Highway 6 trail extension • Library carpet and furnishings • Fire Department apparatus replacement • Napoleon Park field renovation Benton Hill Park playground • River Street storm sewer • N Market Square Park playground • Collector Well upgrade 2027 • Fire Station #5 and #3 construction Y Palisades Park buildout • Taft Avenue reconstruction s Napoleon lift station improvements • Iowa Avenue improvements a Water Plant roof replacement • Columbarium expansion ■ Ground storage reservoir upgrade • Mercer Park shelter replacement 2028 • Market&Jefferson two-way conversion • Tower Place ramp drainage repair • Burlington Street bridge replacement • Wastewater plant upgrades • Reno Street Park improvements • Water Plant treatment upgrades • Lower City Park restrooms and shelters Debt Service Staff is projecting general obligation bond issues of$9.98 million in Fiscal Year 2024 and $16.35 million in Fiscal Year 2025, including 2% for bond issuance costs. The use of G.O. bonds is required to carry out the planned capital projects. This level of bonding projected is well below the thresholds established by the State and is consistent with Iowa City's debt policies. The State of Iowa limits city debt to no more than 5% of the total assessed value of taxable property within the corporate limits as established by the City Assessor. The City Council's Debt Management policy follows best practices for Aaa rated communities and aims to limit outstanding general obligation and tax increment revenue bonded debt to no more than 0.75% of total assessed property valuations. The budget anticipates outstanding debt of$67.6 million at Fiscal Year 2025 year-end, which is approximately 0.78%of total valuations and equal to roughly 15.5% of the allowable debt level established by the State. Iowa City's internal fiscal policy also specifies 25 that the debt service levy shall not exceed 30% of the total property tax levy. The debt service levy included in the Fiscal Year 2025 budget increased $0.098 from the prior fiscal year and accounts for approximately 16.5% of the City's total levy. The following depicts outstanding general obligation and TIF revenue debt as a percentage of total valuations. General Bonded Debt Outstanding and Percent of Total Valuation 80 � 1.40% 70 - i n n - 1.20% 60 Hwc I If II 1.00% 50 0.80% 40 0.60% 30 0.40%20 0 10 0.20% 0 0.00/ FYI FYI FY17 Y8 FY19 FY20 FY23 FY24 W25 'FY2G Ice Debt(millions), 62 58 67 67 67 68 67 66 64 63 68 71 .97%-i %of Val 1.25% 1.22% 1.14% 1.11% 0 0.94% 0.88°/a 0.85°/a 0.78% 0.79% Internal Service Fund Highlights internal Service Funds serve needs that are internal to the City as an organization. These are non-budgetary funds and are an internal financing mechanism for operations such as vehicle replacement and information technology services. Expenditures made from these funds are charged back to departments. All funds are in good condition with healthy balances. Strong balances create reserves that can provide flexibility to deal with unexpected costs. Looking Ahead In summary, although the Fiscal Year 2025 budget is built on a strong foundation from past years of prudent financial decision-making, the City is wading through some of the most challenging budgetary years in the last two decades.Additional State mandated property tax reforms including the latest elimination of both the Library and Emergency levies, new property tax exemptions for seniors and veterans, new growth limitations, the fully phased shift from commercial to residential taxability of multi-family properties, stagnating taxable property values, inflationary impacts on operational inputs, and volatile expenses such as property and liability insurance are just several of the variables creating significant headwinds on City finances. Threats of new property tax reform measures in upcoming legislative sessions could worsen conditions, as could a lingering threat of a nationwide economic recession. The pressure placed by these challenges on many core City services and critical infrastructure projects cannot be understated. Because the City budget relies heavily on property taxes as a revenue source, it is imperative for the City to focus on economic development and smart growth of the City's tax base to ensure property taxes can support increased service demands and generally higher costs of providing services and maintaining critical public infrastructure. Diminished purchasing power due to inflation means a higher portion of operating revenues will be allocated towards existing services. Investments in new initiatives and discretionary projects 26 may require new revenue streams. The clearest example of this is with our fare free transit program, which cannot be maintained on existing revenue sources alone.This budget calls for an increase in parking related rates and an eventual increase in the utility tax to maintain this level of service to the community. The City Council and public should expect that similar approaches will be needed to execute on larger discretionary spending desires or new service level initiatives. Capital investments outlined in this budget continue to largely focus on addressing critical infrastructure maintenance. As we look ahead, infrastructure expenses are rapidly outpacing growth in user fees and road use tax receipts. This means that a higher burden is falling to property taxes. The City will need to adapt accordingly in order to fall behind on the progress we have made over the last decade in addressing deferred maintenance with our streets, utilities and parks. Adapting may mean increased borrowing and debt service rates or exploration of new funding sources to relieve property taxpayers, including a local option sales tax. Conclusion and Acknowledgements This budget document reflects Iowa City's focus on providing high quality municipal services in a fiscally responsible manner. It was crafted with guidance provided by the City Council through the 2023-2028 Strategic Plan and various adopted master plans. Although the City's financial condition is stable, property tax reforms and the current economic environment continue to pose serious challenges ahead and financial prudence is strongly encouraged. A strong financial foundation takes years to build, and Iowa City is fortunate to have such stability. However, that position can be compromised in a short period of time without careful stewardship and restraint. In conclusion, I would be remiss if I did not acknowledge the efforts of our department directors, management team, and staff in submitting thoughtful and responsible spending plans for the coming year. I would like to specifically recognize the efforts of the Finance Department, led by Director Nicole Davies. Additionally, I would like to recognize the hard work and analysis of Assistant Finance Director Jacklyn Fleagle, Budget Management Analyst Angie Ogden, and Risk Management and Finance Assistant, Michelle Cook. Appreciation also is directed to Deputy City Manager Redmond Jones 11 who participated on the budget review team. The individuals noted above worked diligently as a team to pull this budget together and I am proud of the work they have performed to present you with this fiscally responsible budget. Sincerely, Geoff Fruin City Manager 27 Item Number: IP4. CITY OF IOWA CITY COUNCIL ACTION REPORT August 29, 2024 Pending City Council Work Session Topics Attachments: Pending City Council Work Session Topics � r mogul% CITY OF IOWA CITY UNESCO CITY OF LITERATURE PENDING CITY COUNCIL WORK SESSION TOPICS August 27, 2024 Currently Scheduled Pending Special Work Session: Strategic Plan review and update FY23-25 Strategic Plan Action Item Topics Requiring Council Discussion: • Explore legal steps to discourage or prevent bad faith and predatory property investors • Advance prioritized recommendations in the 2022 Affordable Housing Action Plan. Work with partners to undertake significant-scale affordable housing efforts ■ Develop a vision statement for a singular regional transit system with metro Johnson County entities and obtain initial commitments to study a regional system from each entity's elected officials Other Topics• • Discussion of board and commission appointment process • UNESCO City of Literature update • License plate reader technology discussion • Local Option Sales Tax and other alternative revenue streams discussion • Air quality discussion • Review of City grant programs(Social Justice Racial Equity, Climate Action,Public Art,and Aid to Agencies) • Alternative crisis response discussion • Historic preservation incentive discussion Note: Some items on the Pending List may require staff research and information gathering prior to scheduling. Item Number: IP5. r 1 CITY OF IOWA CITY a � COUNCIL ACTION REPORT August 29, 2024 Memo from Councilor Moe: Pop-Up Metro Site visit, August 13 - 14, 2024 Attachments: Memo from Councilor Moe: Pop-Up Metro Site visit, August 13 - 14, 2024 Josh Moe Iowa City Council, At-Large e: jrnoe@iowa-city.org August 25, 2024 Subject: Pop-Up Metro Site visit, August 13-14, 2024 Esteemed Councilors: On August 13— 14 1 traveled to Rockhill, Pennsylvania to learn more about an evolving opportunity whereby passenger rail service could be re-introduced on the CRANDIC Rail. The opportunity with Pop Up Metro (PUM) is different from the previous rail study in many ways: The PUM model is a "turnkey" train system with lower initial costs and faster start-up than the previous rail study. A full proposal is currently being reviewed. During the trip, I was able to see a demonstration of PUM trains and meet key members from PUM's engineering and operations staff. The local delegation included representatives from Coralville, North Liberty,Johnson County, ECICOG, The Eastern Iowa Airport, Greater IC, Inc., and Think IC. The University of Iowa, Kirkwood and VA were not present. I. Company: a. Pop Up Metro (PUM) is a subsidiary of the Railroad Development Corporation (RDC). The Iowa Interstate Railroad is also a subsidiary of(RDC). Train Cars (Rolling Stock) would be provided by PUM. b. The CRANDIC railroad (Travero) is a separate company and a different rail line. Representatives of PUM and Greater IC, Inc are working with CRANDIC to allow use of existing (improved) rails. 2. Train Technology: a. PUM uses technology and equipment developed by Vivarail (2012-2022). b. There are currently two "pairs/sets" of train cars (rolling stock) in existence. PUM staff said that only one pair would be used, but the second pair could be shipped as backup or expansion. c. Vivarail trains can be either fully electric or Disel Electric. The current proposal is fully electric. d. The battery-operated trains are very quiet. Train interiors are accessible, modern, comfortable, and can be adapted for different seating configurations. josh Moe Iowa City Council, At-Large e: jmoe@iowa-citV.org Depending on seat configuration, bike racks, and passenger comfort for standing, the pair could move up to 192 people per trip. 3. Platforms: a. The demonstration included a sample platform. It was constructed of standard aluminum members and rests on a concrete slab. The sample platform was similar in width and length as the two-car test train and is ADA compliant. 4. Maintenance Facility: a. A covered area (shed) with tracks is needed for the trains. The shed should be near the proposed route. The shed will be used for maintenance and charging (power) 5. Operations a. PUM would not operate the cars; rather they would train local conductors, likely 2 per train set. PUM staff would be in Eastern Iowa to maintain cars and train conductors. b. The train would serve three cities and the University of Iowa. Given this would be a regional transportation service, a regional transportation authority should be developed to operate the service. 6. Track Improvements: a. The CRANDIC Tracks covered by the current proposal are "about a class II track" i. Passenger service on Class I Track, under FRA rules, may travel 15 mph. ii. Passenger service on Class 2 Track, under FRA rules, may travel 30 MPH. iii. Passenger service on Class 3 Track, under FRA rules, may travel 60 MPH. b. The proposed service would require a class 2 track to achieve 30 MPH. Given the closeness of proposed stops, upgrades to a class 3 track (60mph) is not currently being studied. i. NOTE: Track Classification is different from Railroad Class. Railroad Classes are a system whereby railroads are assigned according to their annual revenue. c. Improvements are needed to improve the rail line and make crossings safer. 7. Stops a. Major extensions or additional tracks are not part of the study. The currently proposed stops are positioned to serve the University of Iowa Hospital Main Campus, VA Hospital, Kirkwood College, and the New University of Iowa Hospital on Forevergreen Road. Josh Moe Iowa City Council, At-Large e: imoe@iowa-city.or i. Burlington Street (UI Art Museum & UI Campus Recreation and Wellness Center) ii. West Campus (College of Public Health, UIHC Hospital, VA) iii. Iowa River Landing (I st Ave/ 6th St/ 2nd Ave) iv. Oakdale Blvd (UI Oakdale Campus & Kirkwood) V. Forevergreen Road (HyVee/UIHC New Hospital) b. While the existing CRANDIC rail line extends into Cedar Rapids, the current proposal focuses on service between Iowa City, Coralville, and North Liberty. The PUM proposal (including budget) is currently being reviewed; however, this proposal is likely to be less expensive than the previous rail study. Additionally, the MPO is finalizing a study to use the existing CRANDIC line as a dedicated bus route. This fall, we should have three unique proposals to evaluate. Respectfully, /}( 15 Josh Moe Item Number: IP6. r 1 CITY OF IOWA CITY a � COUNCIL ACTION REPORT August 29, 2024 Memo from Councilor Moe: Listening Post, August 17, 2024 Attachments: Memo from Councilor Moe: Listening Post, August 17, 2024 Josh Moe Iowa City Council, At-Large e: jmoe@iowa-city.or August 25, 2024 Subject: Listening Post, August 17, 2024 Esteemed Councilors: Councilor Dunn and I had a productive listening post on Saturday, August 17, at the Iowa City Farmer's Market. Thank you to the community members who spoke with us, city staff who set up our table and promoted the event, and the city staff who helped provide follow-up answers. During our time we received several questions that required additional research. Below are some questions, with answers. Q-Why does Iowa City "Yield" to pedestrian in crosswalk rather than "Stop?" Also, when (as a motorist) should you stop for pedestrians who are about to enter the crosswalk? A-Iowa City has chosen the `Yield'to pedestrians signs as they most closely represent the State Law— whereby you are required to Yield to pedestrians in'a crosswalk—but not at the curb. You are only required to come to a full stop if the situation necessitates. Staffsuggest that motorists only yield or stop for a pedestrian at the curb on low-speed roadways, when only two-travel lanes are present, and onl i you are certain you can do so safely. While seemingly unfriendly to pedestrians, stopping abruptly for a pedestrian waiting at the curb can put the pedestrians in the vicinity in danger of being struck due to rear-end collisions. Staff is currently working on a video regarding this very topic with hopes that it can provide some public education. Q-Prairie Du Chien Rd is in bad condition. It has a lot of bikers. When will it get fixed (and will Bike Lanes be added). A-Prairie Du Chien is only 25'wide which is not sufficient width to allow for bike lanes to be installed. These could only be added with full reconstruction of the street where it would be widened. In 2020, the City hired a consultant to develop a pavement management program. The goal of this program was to review pavement distress data and the existing pavement condition index(PCI), establish a preferred PCI and prepare a prioritized list of street corridors in need of rehabilitation. At that time, Prairie Du Chien was considered to be in fair condition. With the Program now being about 4 years old, the city is working to update josh Moe Iowa City Council, At-Large e: jmoe@iowa-city.or the PCl to reflect current pavement distress data. By the end of the calendar year, we should have an updated prioritized list of street corridors in need of some form of rehabilitation. Given the amount of funding allocated to the annual pavement rehabilitation account(S3824), the city is only able to rehabilitate approximately 2 to 3 street corridors from this list each year. Q- Downtown looks great, except Clinton Street. Why did the city cut down all the trees? Will the city improve Clinton to match the rest of downtown? A-;The trees removed on Clinton were mostly Ash that were diseased and several other species that were in decline and had become hazards. Staff does not plan to immediately replant trees on Clinton because any work in the next 5-/0 years to fix the street/sidewalks would likely involve removing the new trees. Additionally, there is no space in the old tree pits to put new trees because they are filled with underground roots. Regarding the improvement of Clinton Street, the downtown streetscape projects that the City has completed in the last 8 years have been based on the recommendations as provided in the 20/4 Downtown and Pedestrian Mal/Streetscape Master Plan. Clinton Steet is included in the plan. While the design has not yet been completed, we would anticipate some of the same elements being incorporated into a future project. Q-Are lights on Burlington timed to make drivers stop/go/stop/go? Can they be "fixed" (Constituent was concerned he was wasting gas). A-Burlington Street the signals are timed to minimize delay for pedestrians and motorists, to the extent possible. The reason that the signals do not seem well timed(or coordinated) for motorists, is because of the pedestrians `calling'for a pedestrian signal. This additional pedestrian phase throws off the signal coordination for vehicles until the signals can fall back into cycle and `catch-up' lfyou were to drive Burlington Street when no pedestrians are present, they are well timed for efficient flow of motorists. Q- There is only one sign on S. Van Buren street just East of the Farmer's Market indicating no parking. Where does that no parking zone end? A-Staff is investigating and will post additional signs as needed if community members think a traffic sign is missing,you can always submit a concern through lCgovExpress on the City's Website, icgo v.org. Josh Moe Iowa City Council, At-Large e: in-ioe@iowa-city.org Q- There was a smash and grab robbery in the Burlington Street Parking garage the other night, but no one got caught. Where are the security cameras? A-All of Iowa City's parking ramps have a few cameras that are used for operational and/or security purposes. Cameras are typically located near the entrances and exits of each facility and near stairwells and elevators, but they do not provide full coverage. In recent years, the city has expanded camera coverage in garages with a focus on areas where we have experienced property damage or criminal activity. The use of those cameras is governed by the city's Video Management Systems Use Policy. The ALCU reviewed this policy in 1010 and commented that cameras are appropriate where, `:.privacy interests are low and property is stored unattended, such as an unstaffed building or parking lot..."Additionally, cameras are expensive. In addition to the cost of purchasing the cameras, there are typically long runs of conduit for power and data. I..e,,ectfully, t. �7er►s ( 1< Josh Moe Item Number: IP7. r 1 CITY OF IOWA CITY a � COUNCIL ACTION REPORT August 29, 2024 Memo from Grants Specialist: American Rescue Plan Act (ARPA) Update Attachments: Memo from Grants Specialist: American Rescue Plan Act (ARPA) Update f,.:= _j* CITY OF IOWA CITY *4;4, �,� MEMORANDUM Date: August 7, 2024 To: City Council From: Sam Turnbull, Grants Specialist Re: American Rescue Plan Act Update The U.S. Treasury has allocated $18.3 million to the City of Iowa City in local fiscal recovery funds through the American Rescue Plan Act(ARPA). The City has spent or encumbered approximately $17 million to date. At the Sept. 7, 2021 Work Session, City Council signaled their support for the following expenditure priorities, categorized by emergent needs and strategic investments: Program 2021 Est. Funded Expended Status Range Emergent Needs: Direct Payments to Eligible Adults $1 - $1.5M $1,184,071.19 $1,184,071.19 Complete Eviction Prevention $1 - $2M $1,137,710.00 $406,854.73 In Progress Housing Repair/ Relocation $500k_- $1.5M $1,071,500.00 $1,071,500.00 Complete Emergency Non-Profit Assistance $500k- $1 M $485,000.00 $417,952.62 In Progress Strategic Investments: BIPOC Business Support Framework/ Infrastructure $4- $6M $3,980,000 $847,001.26 In Progress Social Service Needs I I Assessment, Capital Planning & $3 - $6M $3,000,000 $23,822.17 In Progress Seed Funding 1 Affordable Housing Initiatives $945,700 $2.5 - $6M (committed) $768,209.30 In Progress (pending) Mental Health Services $1.5 - $3M $939,082.00 $812,723.64 In Progress Workforce Development $1.5 - $3M $1,250,000 $452,159.65 In Progress Climate Resiliency and Hazard No Longer Assessment Planning $500k - $3M _ Planned Small Business, Arts, Culture, Tourism Recovery: and Tourism Investments $250,000 $1 - $2M SSMID: $500,000 $196,803.53 In Progress Skate Park: $500,000 (pending) Utility Accounts: $676,146.49 Government Services and City $676,146.49 Completed Revenue Replacement $1 - $3M Lead Reduction: $500,000 $500,000 August 23, 2024 Page 2 Retention Incentive: $1,137,770.95 *Admin. Costs $1,137,770.95 reported as Admin. Cost: Actual *$169,547.23 incurred Total 2021 Estimated Funding Range: $18-$38 million City's ARPA Allocation: $18,325,190.00 ARPA Funds Encumbered(includes $17,056,980.63 committed): Total Unencumbered ARPA Funds(includes $1,268,209 pending): Program Status Update: Emergent Priorities Direct Payments to Eligible Adults Status: Complete Amount Funded: $1,184,071 The Johnson County Direct Assistance Program received 2,238 eligible applications from throughout Johnson County. Johnson County funded the first 1,428 applicants and the City of Iowa City funded 791 applicants (472 residing in Iowa City and 319 residing outside Iowa City). Eviction Prevention Status: n Progress Amount Funded: $1,137,710 Amount Expended: $406,854.73 The pandemic created and exacerbated housing instability for many populations. Shelter House developed the Housing Stability Pilot program for ARPA-funded community eviction prevention that will extend and enhance previously allocated federal, state, and local dollars. Shelter House entered an agreement on January 10, 2023. Housing Stability and Eviction Prevention services are now fully staffed. Seven households are enrolled in Risk Mitigation. To date Shelter House held three expungement clinics, one in April 2023, one in October 2023, and one in March 2024 with a total of 61 attendees and 129 records expunged. There are 137 households currently enrolled in case management. Forest View Relocation Status: Complete Amount Funded: $1,071,500 As of February 1, 2023, all residents vacated by the deadline and were eligible for relocation assistance. In total, 80 Forest View residents received the full relocation amount of$15,750. The Center for Worker Justice worked directly with residents to assist them in obtaining affordable housing opportunities. Emergency Non-Profit Assistance Status: n Progress Amount Funded: $485,000 Amount Expended: $417,952.62 Nonprofit Operating Assistance: Applications for operating assistance were reviewed and $400,000 in funding recommendations were approved by City Council at the October 18, 2022 August 23, 2024 Page 3 meeting. Twelve non-profit agencies were awarded funding. All agreements have been finalized. Eleven of the projects have expended all their funds. Of the $400,000 awarded to the twelve non-profits, $37,440.26 remains unexpended. Wage Theft: In coordination with commitments from Johnson County, Coralville, and North Liberty, Iowa City allocated $85,000 over five years to the Center for Worker Justice for an expanded campaign to confront wage theft, promote worker rights, and hire a full-time Wage Theft Organizer. The CWJ Wage Theft program has expended $55,392.88 to date, assisted 66 workers and recovered $80,376.82 in lost wages since May 2022. Program Status Update: Strategic Investments BIPOC Business Support Framework & Infrastructure Status: In Progress Amount Funded: $3,980,000 Amount Expended: $847,001.26 In an effort to advance the recommendations in the Inclusive Economic Development Plan, the City launched an APRA-funded inclusive economic development program for underestimated businesses and entrepreneurs located in Iowa City. On March 19, 2024 City Council approved subrecipient agreements with Dream Center($2.9 million- $100,000 was previously awarded for technical assistance), Multicultural Development Center of Iowa ($600,000), and Wright House of Fashion ($100,000). On April 16, 2024 City Council approved subrecipient agreements with Dotlizhi LLC ($100,000), Neighborhood Centers of Johnson County ($80,000), and Tailored Tax and Accounting LLC ($100,000). To date, Dream Center acquired the building located at 611 Southgate Avenue, begun demolition, and held an entrepreneurial roundtable attended by over 100 participants. Wright House of Fashion has held mentoring sessions with six entrepreneurs, marketing strategy sessions with four entrepreneurs and has nine students enrolled in the graphic design program. Multicultural Development Center has provided business coaching to 17 businesses and seven businesses have received Technical Assistance grants. Dotlizhi LLC has distributed one grant to a small business and now has a paid program coordinator. Tailored Tax and Accounting has provided no cost financial services to six small businesses. Neighborhood Centers of Johnson County inclusive economic development programming is set to begin in the new fiscal year. Social Services Capital Funding Program Status: In Progre Amount Funded —Free Medical Clinic: $1 million Amount Expended: $23,822.17 Amount Funded-Neighborhood Centers of Johnson County: $2 million With Council direction, staff developed a Non-Profit Capacity Building Capital Grant Program and released a Request for Statements of Interest in December 2022. Eight nonprofit agencies August 23, 2024 Page 4 submitted a Statement of Interest for consideration under the program. The review committee held informational interviews with a set of applicants in February 2023 and developed preliminary funding recommendations, which were approved at the March 21, 2023 City Council meeting. Next Steps: Two nonprofits, Neighborhood Centers of Johnson County and Iowa City Free Medical Clinic, received preliminary funding recommendations. At Council's December 12, 2023 meeting, they approved an agreement with Iowa City Free Medical Clinic for $1,000,000 to renovate their facility. The planned renovations will increase the number of exam rooms available to an increased number of volunteer practitioners, provide accessibility to the lower level, increase medical storage (including refrigerated medication), create a dental laboratory, create administrative offices, a multi-purpose room, and acquire related medical equipment to serve a growing number of uninsured and underinsured individuals seeking care. To date $23,822.17 has been expended in architectural and equipment costs and the project is anticipated to go out to bid shortly. At Council's May 7, 2024 meeting, they approved an agreement with Neighborhood Centers of Johnson County for $2,000,000 to acquire two buildings in the Towncrest neighborhood for a Family Resource Center and an Early Childhood Center. Neighborhood Centers purchased the Early Childhood Center and Family Resource Center buildings on August 11t. The Family Resource Center will house offices for administrative staff and family support workers, as well as conference/training rooms. The Early Childhood Center will have five licensed classrooms, for at least 50 early childcare slots, a library, computer lab, a multi-purpose space with a kitchen, and a large after-school classroom. Affordable Housing Initiatives Status: In Progress In order to expand permanent affordable housing opportunities, staff is investigating use of funds to expand the publicly owned housing portfolio of the Iowa City Housing Authority. Next Steps: On June 18, 2024 City Council approved a purchase agreement for three 3-bedroom townhomes on Herbert Hoover Highway. The townhomes will be managed by the Iowa City Housing Authority and will be rented at an affordable rate. The City has solicited a realtor to assist with the purchase of additional units to be utilized as affordable housing. Mental Health Services Status: Prog, Amount Funded: $939,082 Amount Expended: $812,723.64 City Council approved a subrecipient agreement with CommUnity at the February 15, 2022 meeting to expand Mobile Crisis Outreach in response to the exacerbated mental health impacts of the pandemic. Three Mobile Crisis Response counselors work full time providing emergency response. The fleet of eight Mobile Crisis Response vehicles has allowed the program to maintain an average response time of 26 minutes within Iowa City responding to a total of 1,546 calls this fiscal year. August 23, 2024 Page 5 Workforce Development Status: Amount Funded - Childcare Navigator (4Cs): $100,000 Amount Expended: $68,424.01 Amount Funded - Pre-Apprenticeship Program (UI Labor Center): $400,000 Amount Expended: $133,735.64 Amount Funded - Childcare Workforce Development: $750,000 Amount Expended: $250,000.00 Workforce Development: An agreement with the UI Labor Center for a pre-apprenticeship program targeting underserved populations in the building and construction trades was approved by Council on December 6th, 2022. 14 residents were enrolled in the FY23 cohort. 28 individuals graduated from the FY24 cohort. Forty four percent of the graduates were employed in construction trades and/or apprenticeship programs within one year of graduating. The FY25 cohort will be held February-March 2025 so that they will graduate as the Spring construction hiring begins. Childcare Workforce Development: In June 2022, 4Cs and the Iowa City Area Business Partnership presented an update on regional childcare efforts and needs to City Council and recommended Council consider funding a childcare navigator position. 4Cs was awarded $100,000 in ARPA funds for the navigator position. 4C's added a consultant focused on recruitment and navigation of the childcare workforce. The consultant serves the Starting Strong Program which has served 16 Iowa City providers, adding one new Iowa City provider. Monthly Training Sessions are held with Starting Strong Providers. 4C's has applied to become a Registered Apprenticeship through Workforce Development that would allow the establishment of a pre-apprenticeship training at area high schools. Childcare Wage Enhancement Program: Johnson County, Better Together 2030, and other community partners presented a proposed Childcare Wage Supplement Program at the March 7, 2023 City Council Work Session. Council approved the agreement at the June 6, 2023, providing $750,000 over three years to support the Wage Enhancement Program. To date, the County has authorized payment of$177,248.49 in wage enhancements to six childcare centers in Iowa City. In August 2024 the agreement was amended to include $25,000 per year (of the original allocation) to assist in funding an Employer Engagement Program Manager. The Employer Engagement Program Manager will be housed at Greater Iowa City Inc. and will be funded by Johnson County, the City, and Greater Iowa City Inc. The purpose of the Employer Engagement Program Manager is to secure ongoing funding commitments from local businesses to allow the Childcare Wage Enhancement Program to continue after the ARPA funding has been exhausted. Climate Resilience and Hazard Assessment Planning Status: No Longer Planned Staff will continue to utilize Emergency Levy fund balance and General Fund dollars to meet our Climate Action goals. Supplemental ARPA expenditures are no longer planned. August 23, 2024 Page 6 Next Steps: None. Small Business, Arts & Culture, and Tourism Investments Status: i Proaress Amount Funded: $750,000 Amount Expended: $196,803.53 At the June 6, 2022 City Council meeting, Council approved an agreement with Think Iowa City to replace $125,000 in lost hotel/motel tax revenue due to COVID-19 and to develop and administer a $125,000 tourism and visitor recovery grant program to spur tourism and economic activity in the Iowa City area. Of the $125,000 available through the grant program, Think Iowa City has awarded seven projects to date: • $7,500 to the Iowa Golden Gloves to host the 2023 Iowa Golden Gloves Championships boxing tournament in Iowa City, organized by the ICOR Boxing Club. ■ $15,000 to the Refocus Film Festival hosted by FilmScene in Iowa City in 2022 and 2023. ■ $30,000 to the Iowa City Downtown District to host the Winter Night Lights light display and winter programming in downtown Iowa City for 2023. ■ $5,000 to EntreFEST to host a two-day entrepreneurship and innovation conference in downtown Iowa City in June 2023. • $5,000 to The Black Voice Project to host the 2023 Juneteenth celebration downtown. • $5,000 to the Core4 cycling event that incorporates four fundamental surface types: gravel, b-roads, singletrack, and pavement. With 850 participants, plus spectators and support staff, the event brought over 1,200 people to Iowa City the weekend of August 19, 2023. $5,000 to the Los Trompos temporary art exhibit downtown. Think Iowa City continues to accept applications on a rolling basis. At the June 4, 2024 City Council meeting, Council approved Self-Supported Municipal District (SSMID) grants in the amount of $250,000 each for the two SSMIDs (South of 6 and Iowa City Downtown District). These grants provide flexible support to allow the SSMIDs to meet their organizational needs. Next Steps: Staff intends to supplement the Skate Park Renovation Project in the CIP with a $500,000 award to ensure that project can be carried out in a manner that provides maximum value to the community. Staff's previous efforts to secure grant funding for this project have not been successful and this award will allow the project to proceed. Once complete, the facility will be a regional tourism draw and a premiere community recreational amenity along the Iowa River. Public input has been gathered on the Skate Park design. The project is currently in the final stages of design development with bids and construction anticipated for late 2025. Government Services and Revenue Replacement Status: In Progress Amount Expended: $2,483,464.67 Utility Assistance Program August 23, 2024 Page 7 Council approved the resolution authorizing Utility Billing Revenue Replacement at their September 6, 2022 meeting, bringing utility accounts current as of June 1, 2022 and resuming regular collection procedures. The total cost for Utility Billing Revenue Replacement was $676,146.49. Administrative Expenses Administrative expenses attributed to ARPA are paid through the interest derived from the City's receipt of ARPA funds. Total administrative costs incurred to date is $169,547.23 Lead Reduction Council approved the resolution authorizing $500,000 for a City administered program to assist property owners with replacement of their lead water service lines at their November 6, 2023 meeting. This program will help qualifying property owners avoid unplanned, costly repairs and can be successfully launched without placing the burden on utility customers. The City hosted an Open House to raise awareness about the program on January 24, 2024. The program has enabled eleven households to replace their lead or lead contaminated service lines to date. The related insurance program has been used by at least one household to replace their service line. Workforce Retention Incentive Council approved the resolution authorizing $1,137,770.95 for worker retention incentive bonuses to employees in the American Federation of State, County and Municipal Employees and Administrative, Confidential and Executive employee groups on December 12, 2023. The incentive is in response to an increase in turnover rates and a shrinking applicant pool for many critical positions. 515 employees received the bonus in December 2023. Item Number: IP8. r 1 CITY OF IOWA CITY a � COUNCIL ACTION REPORT August 29, 2024 Charter Review Commission: Community Input Forums Attachments: Charter Review Commission: Community Input ForumsA COMMUNITY INPUT FORUM CHARTER REVIEW COMMISSION ICE INDITE YOU TO ATTEND. When: Tuesday, September 10, 2024 - Time: 6:30 p.m. Where: Iowa City Public Library, Rm A,B,C - 123 S. Linn St. AND When: Saturday, September 28, 2024 - Time: 10:30 a.m. Where: Emma J. Harvat Hall, City Hall - 410 E Washington St. The Charter is a document that determines how the government of Iowa City is organized and administered, such as: Composition and election of the City Council and Mayor Division into Council Districts Employment and duties of the City Manager Restrictions on campaign contributions Procedures for initiatives and referendums The Charter Review Commission invites you to come and give your input regarding potential changes to the Iowa City Charter as part of the 10-year review process. For more information about the Charter Review ■ &71-7 1 ■ Commission, access to past meeting packets with ' - minutes an public comment, n ��d pub c co a t, and to review the zrq working draft of proposed amendments please : • . 4 check out our QR code: A L COMMENTS: MAIL OR IN PERSON: *Send your comments to : Charter Review Commissior i i CityCharter@iowa-city.org % City Clerks .. City of Iowa City 16 *All correspondence is public record 4�10 E. Washington St �-Tl ' CITY OF IOWA CITY Item Number: IP9. r 1 CITY OF IOWA CITY a � COUNCIL ACTION REPORT August 29, 2024 Civil Service Examination: Civilian Crime Analyst Attachments: Civil Service Examination: Civilian Crime Analyst j r r CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 5 2 240-1 826 (319) 356-5000 (319) 356-5009 FAX www.icgov.org August 28, 2024 TO: The Honorable Mayor and the City Council RE: Civil Service Entrance Examination — Civilian Crime Analyst Under the authority of the Civil Service Commission of Iowa City, Iowa, I do hereby certify the following named person(s) as eligible for the position of Civilian Crime Analyst. Margaret Wood Iowa City Civil Service Commission Rick W s, Chair Item Number: IP10. r 1 CITY OF IOWA CITY a Qa, COUNCIL ACTION REPORT August 29, 2024 Civil Service Examination: Parts/Inventory Clerk - Equipment Attachments: Civil Service Examination: Parts/Inventory Clerk - Equipment � r CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 5 2240-1 826 (319) 356-S000 (319) 3S6-5009 FAX w'wwJcgov.org August 28, 2024 TO: The Honorable Mayor and the City Council RE: Civil Service Entrance Examination — Parts/Inventory Clerk — Equipment Under the authority of the Civil Service Commission of Iowa City, Iowa, I do hereby certify the following named person(s) as eligible for the position of Parts/Inventory Clerk — Equipment. John O'Leary Iowa City Civil Service Commission Rick Wyss, Chair Item Number: IP11. r 1 CITY OF IOWA CITY a � COUNCIL ACTION REPORT August 29, 2024 Human Rights Commission: August 27 Attachments: Human Rights Commission: August 27 Draft Minutes Human Rights Commission August 27, 2024 Emma Harvat Hall Commissioners present: Roger Lusala, Jahnavi Pandya, Doug Kollasch, Mark Pries, Vianna Qaduora, Commissioners present via Zoom: Idriss Abdullahi. Commissioners absent: Elizabeth Mendez Shannon, Kelsey Paul Shantz, Schafer-Van Houtte. Staff present: Stefanie Bowers. Recommendation to City Council: No. Meeting called to order: 5:32 PM. Native American Land Acknowledgement: Lusala read the Land Acknowledgement. Public comment of items not on the agenda: No. Approval of meeting minutes of July 23,2024: Pries moved; and Lusala seconded. Motion passed 6-0. Updates on Outreach and Engagement by the Police Department: No report. Support for a Community Transportation Commission: No update. Human Rights Awards: Kollasch, Pandya, and Lusala will serve on the selection committee. Staff will send the nominations to them on September 20" Revisiting the Commission's Strategic Plan:The commission will hold special meetings on Tuesday, October 15 and Monday November 5 to review and revise its current plan. Both meetings will begin at 5:30 PM and be held in Meeting Room B at the Robert A. Lee Community Recreation Center. Welcoming America Initiative: Cady Gerlach and Evan Doyle updated the commission on this annual week long event. This year it is being supported with funding from the Racial Equity and Social Justice Grant. The website is welcomeicarea.org. Yard signs will be distributed by the city and other area governments. A proclamation will be read at the City Council September 3 formal meeting and the committee is working on getting the Iowa City area certified, which requires an assessment of programs, policies, and other selective criteria. The criteria framework has seven points of interest: civic engagement, government/community leadership, equitable access, connected communities, education, economic development, and safe communities. As the committee works through each point, the commission will be given the opportunity to assist in the endeavors. 1 Commission Committees' Update: Building Bridges (Paul Shantz, Kollasch, Pandya): No update. Reciprocal Relationships (Lusala, Pries, Abdullahi): No update. Breaking Bread (Dr. Liz, Qaduora) No update. CCAN-Con 2024:The commission will host a vendor table at the event and will decide at its September meeting date whether to also present a program. National Hispanic Heritage Month:Staff will submit a proclamation and reach out to Manny Galvez and the other persons who helped to plan Latino Fest to see if they are interested in accepting it. Mental Health Celebration: Idriss will represent the commission at this event being held on September 22nd from 1-3 PM at Terry Trueblood Area. Indigenous Peoples Day: Pandya and Lusala (tentative) will represent the commission. Announcements of Commissioners: Pries recently visited the Negro Leagues Baseball Museum in Kansas City. Pries also spoke upon a program he helped plan that included a viewing of the film God and Country followed by a discussion.There were over 90 community members in attendance. Lusala and Abdullahi attended the Latino Festival this past weekend. Lusala also asked commissioners to save the date for the inaugural African Festival being held on Saturday, September 21'. Abdullahi and Qaduora reflected on their participation in the Benefit for Palestine events held at The Englert.The events raised $15,000 for Palestinian children. Qadoura recently viewed the documentary Where Olive Trees Weep on the history of the Palestinian struggle and resilience. In September,the Mariam Girls Club will serve the harvest vegetables for the Coralville Food Pantry. Announcements of staff: Reminder the September meeting will be held on the 25'and not the 24'. Adjourned:6:19 PM. The meeting can be viewed at https://citychannel4.com/video.html?series=Local%20Government. 2 � 3 � � � ■ § � u � § U gz 2 x k k x x x N N « � � § - N a \ / / / ƒ 4 m m m m m m m m m § § £ / 6 t II II II 2 _ a ; J § ® n # ® ■ k § ? 2 © w ; ■ . � # Item Number: IP12. r 1 CITY OF IOWA CITY a � COUNCIL ACTION REPORT August 29, 2024 Senior Center Commission: August 15 Attachments: Senior Center Commission: August 15 Preliminary Minutes August 15, 2024 MINUTES SENIOR CENTER COMMISSION August 15, 2024 Room 311, Iowa City Senior Center Members Present: Nancy Ostrognai, Jay Gilchrist, Lee McKnight, Angie McConville Members Absent: Ross Taylor, Warren Paris, Betty Rosse Staff Present: Michelle Buhman, LaTasha DeLoach Others Present: None CALL TO ORDER: The meeting was called to order by Gilchrist at 4:00 PM. RECOMMENDATIONS TO COUNCIL: None. APPROVAL OF MINUTES FROM THE MAY 16, 2024 MEETING: Motion: To accept the minutes from the May 16, 2024. Motion carried on a 4/0 vote. Ostrognai/McKnight PUBLIC DISCUSSION: None. OPERATIONAL OVERVIEW: There will be a Healthy Aging Fair on August 22 at the Senior Center, which is a partnership with Johnson County Healthy Communities. There will be over 60 organizations involved as well as some demonstration classes. Buhman reviewed the September/October program guide. She highlighted a handful of programs including the partnership with Film Scene for Cinema Salon, Climate Fest programming, a new class "How to deal with conflict", a new member lunch, and a new Zumba class started this summer. The second annual Pickleball Jamboree will be held September 29th at the Greenstate Field House. This is a fundraiser for Friends of the Senior Center. 1 Preliminary Minutes August 15, 2024 This summer Buhman piloted the Matter of Balance program, and it went well. She trained additional instructors for the program, and it has continued. Additionally, she hopes to have a Matter of Balance class in North Liberty this winter. Gilchrist asked about members from Coralville. DeLoach noted that she intends to reach out to the Parks and Rec Coordinator in Coralville soon. Coralville has had some senior programming in the past. She noted that without additional staffing it is unlikely we will be able to expand more off site. She noted that North Liberty has given a grant to the Senior Center so that is why the collaboration has continued to bring some programming there. DeLoach reported the Senior Center installed door counters to be able to have good statistics on how many people are utilizing the facility. DeLoach noted we are a pickup location for Field to Family on Thursday nights. COMMISSION DISCUSSION: The Senior Center had some water flood part of the ground floor through the emergency exit due to the heavy rain this week. The building temperature is still of concern. There is a HVAC project on the horizon this fall that will help with this. A full HVAC overhaul will be in the works for a few years out. DeLoach reported that she spoke with commissioner Ostrognai regarding creating a bulletin board for members to recommend service professionals and post obituaries. Meeting Adjourned. 2 N N M N ? X X X X O O � U-) 0 cu U) N Ea z z � X X W X X z X o � cli N N 00 co z F N na M C � � O Q i X O X X i X i O p � U � M W ' z z U s. M y N w O X X X •� N � z z z z z z z u M O N O X X X X 0 M i X X X X X X N N z. � a N N N N N N N W M M M M M M M M M N N N N N N N N N cd j b_0 p SC >, C n O N z y p cOcz m bA p aUi CA a^Ui C O as O >, 's csC cda