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HomeMy WebLinkAbout2024-12-05 Info Packet 4 City Council Information Packet CITY OF IOWA CITY December 5, 2024 Council Tentative Meeting Schedule IP1. Council Tentative Meeting Schedule December 10 Work Session IP2. Work Session Agenda IP3. Pending City Council Work Session Topics Miscellaneous IP4. Memo from City Manager's Office: Housing Information IP5. Memo from Grants Specialist: American Rescue Plan Act (ARPA Update) - Scrivner's error with date of memo. IP6. Iowa League of Cities: FY 2025-26 Budget Special Report IP7. Press Release: City Council Listening Post announced for Dec. 7 at Pheasant Ridge Neighborhood Center IP8. Building Statistics: November 2024 Draft Minutes IP9• Community Police Review Board: November 12 IP10. Human Rights Commission: November 26 December 5, 2024 City of Iowa City � r rr®�■ City Council Information Packet CITY OF IOWA CITY December 5`2024 Council Tentative Meeting/Schedule IP1\, Council Tentative Meeting Schedule December 10 Work SIP2. Work\Session Agenda IP3. Pendin`City Council Work Session Top Miscellaneous: IP4. Memo from Cit�,Manager's Office: using Information IP5. Memo from Grants pecialist: ' erican Rescue Plan Act (ARPA Update) IP6. Iowa League of Cities. Y 2 -26 Budget Special Report IP7. Press Release: City Ca- I Listening Post announced for Dec. 7 at Pheasant Ridge Neighborhood Ce I1138. Building Statistics: N/ ember 024 Draft M i utes I1129. Community c li,,C/e Review Board: November 12 I1310. Human ights Commission: November 6 December 5,2024 City of Iowa City Item Number: IP1. CITY OF IOWA CITY COUNCIL ACTION REPORT December 5, 2024 Council Tentative Meeting Schedule Attachments: Council Tentative Meeting Schedule j , City Council Tentative Meeting Schedule Subject to change CITY OF IOVVA CITY December 5,2024 Date Time Meeting Location 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 8:00 AM Budget Work Session City Hall,Emma J.Harvat Hall 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 4,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,February 18,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,March 11,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,April 1,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,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 6,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,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 3,2025 4:00 PM Work session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,June 17,2025 4:00 PM Work Session City Hall,Emma J.Harvat Hall 6:00 PM Formal Meeting 410 E.Washington Street Tuesday,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 Monday,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 December 5, 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 =— kt ` ��� Work Session December 10, 2024 - 4:00 PIVI 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: ■ https://citychannel4.com/live * https://www.youtube.com/user/citychannel4/live * https://facebook.com/CitvoflowaCity 1. Clarification of Agenda Items 2. Information Packet Discussion [November 21, November 27, December 5] 3. University of Iowa Student Government (USG) Updates 4. Local Option Sales Tax and other alternative revenue streams discussion 5. Council updates on assigned boards, commissions, and committees Item Number: IP3. CITY OF IOWA CITY COUNCIL ACTION REPORT December 5, 2024 Pending City Council Work Session Topics Attachments: Pending City Council Work Session Topics � r lk CITY OF IOWA CITY UNESCO CITY OF LITERATURE PENDING CITY COUNCIL WORK SESSION TOPICS December 5, 2024 Currently Scheduled • January 7, 2025: National Community Survey Results Presentation • January 21, 2025: Comprehensive Plan Update Kick-off Presentation FY23-25 Strategic Plan Action Item Topics Reguiring 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 • License plate reader technology discussion • Air quality discussion • Alternative crisis response discussion • Historic preservation incentive discussion • Review of the Aid to Agencies grant program Note: Some items on the Pending List may require staff research and information gathering prior to scheduling. Item Number: IP4. r 1 CITY OF IOWA CITY a � COUNCIL ACTION REPORT December 5, 2024 Memo from City Manager's Office: Housing Information Attachments: Memo from City Manager's Office: Housing Information �*I- CITY OF IOWA CITY gin MEMORANDUM Date: December 5, 2024 To: Mayor and City Council From: City Manager's Office Re: Housing Information At your October 15, 2024 work session you asked staff to provide you housing related information on a recurring basis prior to each City Council meeting. Staff intends to add to this memo with each Information Packet that is publicly released prior to formal City Council meetings. We welcome feedback on the type of information that you believe will be most informative and useful in your roles as City Councilors. Date Topic Source October 31, HUD Point-in-Time Count: This is Institute for Community Alliances (ICA) 2024 a required count conducted across https://icalliances.org/pit the country of sheltered and unsheltered people experiencing homelessness on a single night in January. In 2023, the count revealed 160 sheltered and 18 unsheltered individuals in Johnson County. In 2024, the count revealed 159 sheltered and 22 unsheltered individuals in Johnson County. November 14, Housing Choice Voucher HUD Housing Choice Voucher Data 2024 Utilization Rate: The utilization Dashboard rate refers to the number of https://www.hud.gov/program offices/pu housing choice vouchers that are blic indian housing/programs/hcv/dashb under lease as a percentage of oard December 5, 2024 Page 2 total vouchers available. As of July 2024, the national utilization rate is 86.23%. The State of Iowa utilization rate is 82.74%. The Iowa City Housing Authority utilization rate of 92.85% exceeds both the national and state figures. December 5, ICAAR Market Trends: ICAAR Iowa City Area Association of Realtors 2024 collects data about home sales (ICAAR): httr)s://icaar.org/market-trends/ monthly. In Oct. 2024, the median sales price was $376,250 for single-family (up 29.9% from Oct. 2023) and was $274,000 for a condominium (up 8.5%). However, the median sales price per square foot only increased 8.3%, which suggests some of the increase is due to the size of homes. In addition, the active inventory has increased 37.7%, which can help slow inflationary pressures. �*I- CITY OF IOWA CITY gin MEMORANDUM Date: December 5, 2024 To: Mayor and City Council From: City Manager's Office Re: Housing Information In December 2024, Mayor Pro Tem Salih clarified with the City Manager's Office which specific data was of interest for regular reporting. That is reflected in the table below. Month HCV Waiting List* Public Housing Waiting List* Homeless (# in Top Preference Category) (# in Top Preference Category) Count** Dec `24 10,091 (1,205) 1,386 (522) * Data is sourced from the Iowa City Housing Authority (ICHA). The Top preference category includes households that are elderly, disabled or have minor children; and are also living and working in the ICHA jurisdiction (Johnson County, Iowa County and Washington County north of Highway 92). **Data source is still being investigated. Item Number: IP5. r 1 CITY OF IOWA CITY a � COUNCIL ACTION REPORT December 5, 2024 Memo from Grants Specialist: American Rescue Plan Act (ARPA Update) Attachments: Memo from Grants Specialist: American Rescue Plan Act (ARPA Update) + r �.�. . 3 N City Council Supplemental Meeting Packet CITY OF IOWA CITY December 10, 2024 Late Handout(s): =1-22�mensions for New Patios in Rental Housing - See revised ordinance IP5• Mptno from Grants Specialist: American Rescue Plan Act (ARPA) Update - �� —J--8crivener's error with date of memo. December 10, 2024 City of Iowa City Item Number: IP5. r 1 CITY OF IOWA CITY a � COUNCIL ACTION REPORT December 10, 2024 Memo from Grants Specialist: American Rescue Plan Act (ARPA) Update - Scrivener's error with date of memo. Attachments: Memo from Grants Specialist: American Rescue Plan Act (ARPA) Update r 3y6 +r.�lp:d� CITY OF IOWA CITY =Pm MEMORANDUM Late Handouts Distributed Date: December 9, 2024 To: City Council From: Sam Turnbull, Grants Specialist Re: American Rescue Plan Act Update (Date) 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 that entire allocation 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 $479,260.90 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 $438,072.66 In Progress Strategic Investments: BIPOC Business Support 1 �� Framework/ Infrastructure $4- $6M $3,980,000 $1,212,980 In Progress Social Service Needs Assessment, Capital Planning & $3- $6M $3,000,000 $1,135,896.56 In Progress Seed Funding Affordable Housing Initiatives $2.5 - $6M $1,713,909.37 $1,707,823.00 In Progress Mental Health Services $1.5 - $3M $939,082.00 $855,005.21 In Progress Workforce Development $1.5 - $3M $1,250,000 $724,260.59 In Progress Climate Resiliency and Hazard No Longer Assessment Planning $500k- $3M Planned Small Business, Arts, Culture, Tourism Recovery: and Tourism Investments $250,000 SSMID: $1 - $2M $500,000 $221,617.79 In Progress Skate Park: $5001000 (committed) Utility Accounts: Completed $676,146.49 $2,313,917.44 $1 -$3M Government Services and City Lead Reduction: Revenue Replacement $500,000 � *Admin. Costs $188 Retention Incentive: * ,119.11 reported as $1,137,770.95 incurred December 9, 2024 Page 2 Admin. Cost: Actual Total 2021 Estimated Funding Range: $18-$38 million City's ARPA Allocation: $18,325,190.00 ARPA Funds Encumbered(includes $18,325,190.00 committed): Total Unencumbered ARPA Funds): $0 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: $479,260.90 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. Throughout the ARPA- funded timeframe coordinated entry has responded to 2,968 calls and 257 online portal submissions. Twelve RentWise courses have been hosted with 87 attendees. At the courthouse 58 help desks have been staffed with 300 unique landlord contacts and 198 FED eviction dismissals have occurred. 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. Overall, 560 unique individuals have been served with homeless prevention services. Currently nine households are enrolled in the landlord risk mitigation program. 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: In Progress Amount Funded: $485,000 Amount Expended: $438,072.66 December 9, 2024 Page 3 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 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, $26,976.15 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 $65,048.81 to date, assisted 84 workers and recovered $83,466.82 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: $1,212,980 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 has begun renovation of their entrepreneurial hub at 611 Southgate Avenue and begun hosting lunch and learns. A total of 42 entrepreneurs are involved with Dream Center's services. Wright House of Fashion has held mentoring sessions with 11 entrepreneurs, marketing strategy sessions with seven entrepreneurs and has 12 students enrolled in the graphic design program. Multicultural Development Center has held 1 business accelerator cohort, provided business coaching to 34 businesses and 12 businesses have received Technical Assistance grants. Dotlizhi LLC has distributed two grants to small businesses and now has a paid program coordinator. Tailored Tax and Accounting has provided no cost financial services to 11 small businesses. Neighborhood Centers of Johnson County have their first economic development workshops planned in December. Social Services Capital Funding Program Status: In Progress Amount Funded—Free Medical Clinic: $1 million Amount Expended: $35,896.56 Amount Funded-Neighborhood Centers of Johnson County: $2 million December 9, 2024 Page 4 Amount Expended: $1.1 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 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 $35,896.56 has been expended in architectural and equipment costs and the project bid has been awarded to Apex with construction planned to begin after Thanksgiving. 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 1st. A groundbreaking was held at the Early Childhood Center on September 21, 2024. Interior renovations have begun on the Early Childhood Center. 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. Services at the Family Resource Center are now underway. A Unity U (an empowering educational program for community members) cohort is being held and the Family Resource Center is serving as the hub of a partnership with Johnson County focused on the Community Violence Intervention Program. Affordable Housing Initiatives Status: In Proqress Amount Funded: $1,713,909.37 Amount Expended: $1,707,823 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. Rental permits have been obtained and the units are being advertised for applicants. On October 1, 2024 City Council approved a purchase agreement for 1002 & 1006 N Summit St, currently vacant properties where future development will allow the construction of up to 36 units of affordable housing. Next Steps: Staff are investigating funding sources for a potential affordable housing development project at 1002 and 1006 N Summit St. Staff are completing an environmental review on the property and have consulted with the State Historic Preservation Office and tribal contacts to determine necessary next steps. December 9, 2024 Page 5 Mental Health Services Status: In Progress Amount Funded: $939,082 Amount Expended: $855,005.21 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 22 minutes within Iowa City responding to a total of 5,218 calls since July 2022. Over the course of the grant funding the program has achieved a 94.9% hospital and jail diversion rate. Workforce Development Status: In Progress Amount Funded - Childcare Navigator (4Cs): $100,000 Amount Expended: $ 73,797.52 Amount Funded - Pre-Apprenticeship Program (UI Labor Center): $400,000 Amount Expended: $150,463.07 Amount Funded - Childcare Workforce Development: $750,000 Amount Expended: $500,000.00 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 five 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 is currently working with 9 in-home providers starting childcare programs. Monthly Training Sessions are held with Starting Strong Providers. 4C's has been approved to become a Registered Apprenticeship through Workforce Development. 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$229,347.80 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 December 9, 2024 Page 6 allocation) to assist in funding an Employer Engagement Program Manager. The Employer Engagement Program Manager has recently been hired. Michael Chen 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. Next Steps: None. Small Business, Arts & Culture, and Tourism Investments Status: In Progress Amount Funded: $750,000 Amount Expended: $221,617.79 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 nine 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. • $10,000 to the Empowerment Symposium: Inspiring Black and Brown Professionals to Lead held September 19-20, 2024. i $10,000 to the African Festival of Arts and Culture held September 28, 2024. Think Iowa City continues to accept applications on a rolling basis. December 9, 2024 Page 7 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. The Iowa City Downtown District has begun utilizing funds for design of the Graduate Walkway lighting project. South of 6 recently hired a new executive director- Maurice Davis. 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: $2,502,036.55 Utilitv Assistance Program 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 $188,119.11. 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 15 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. r CITY OF IOWA CITY MEMORANDU Da October 23, 2024 To: City Council From: Sam Turnbull, Grants Specialist Re: American Rescue Plan Act Update The U.S.Tr sury has allocated $18.3 million to the City of Iowa City in cal fiscal recovery funds through the A erican Rescue Plan Act (ARPA). The City has seen r encumbered that entire allocation to da . At the Sept. 7, 2021 Work Session, City Council ignaled their support for the following expends re priorities, categorized by emergent needs d strategic investments: Program 2R nEst Funded Expended Status ge Emergent Needs: Direct Payments to Eligible Adults $1 -$1.5M $1/4,071.19 $1,184,071.19 Complete Eviction Prevention $1 -$2M 1,137,710.0 $479,260.90 In Progress Housing Repair/ Relocation $6k0k-$1.5M 0$1,071,500.00 $1,071,500.00 Complete Emergency Non-Profit Assistance $5 k-$1 M $485,000.00 $438,072.66 In Progress strategic Investments: BIPOC Business Support 980 In Progress - M Framework/Infrastructure $4 $3,980,000 $1,212, Social Service Needs Assessment, Capital Planning & 3-$6M $3,000,000 $1,135,896.56 In Progress Seed Funding Affordable Housing Initiatives $2.5-$6M $1,713,909.37 $1,707,823.00 In Progress Mental Health Services $1.5-$3M $939,082.00 $855,005.21 In Progress Workforce Development $1.5-$3M $1,250,000 $724,260.59 In Progress Climate Resiliency and Hazar No Longer Assessment Planning $500k-$3M 71 Planned Small Business, Arts, Cul re, Tourism Re\Park: and Tourism Investmen $ $1 -$2M $ $221,617.79 ' In Progress Ska $500,000 (committed) Utility Accounts: Completed $676,146.49 Govern nt Services and City Lead Reduction: $2, 13,917.44 Reven Replacement $1 -$3M $500,000 *Admin. Costs Retention Incentive: *$188,119.11 reported as $1,137,770.95 incurred December 2, 2024 Page 2 \ I Admin. Cost: Actual otal 2021 Estimated Funding Range: $18-$38 million City's ARPA Allocation: $18,325,190.00 A17 Funds Encumbered(includes $18,325,190.00 committed): Testa nencumbered ARPA Funds): $0 Program Stat Update: Emergent Priorities Direct Paymentsa Eligible Adults Status: Complete Amount Funded: $1,184,071 The Johnson County\irectssistance Program r/eddt8 eligible applications from throughout Johnson Chnson County funded8 applicants and the City of Iowa City funded 791 (472 residing in Iowa, residing outside Iowa City). i Eviction Prevention Status: In Progress Amount Funded: $1,137,710 Amount Expended:$479,260.90 The pandemic created and exacerbate using instability for many populations. Shelter House developed the Housing Stability Pilot pr g m for ARPA-funded community eviction prevention that will extend and enhance previous ailo ted federal, state, and local dollars. Shelter House entered an agreement on January 1 , 2023. Housing Stability and Eviction Pr enti❑n service are now fully staffed. Throughout the ARPA- funded timeframe coordinated try has responde o 2,968 calls and 257 online portal submissions. Twelve RentVll courses have been sted with 87 attendees. At the courthouse 58 help desks h e been staffed with 300 ique landlord contacts and 198 FED eviction dismissals have o urred. To date Shelter Hous held three expungement clinics, one in April 2023, one in Oct er 2023, and one in March 2024 ith a total of 61 attendees and 129 records expunged. Ov rall, 560 unique individuals have bee served with homeless prevention services. Currently n' a households are enrolled in the landlor risk mitigation program. Forest View Re ocation Status: Complete ' Am unt Funded: $1,071,500 As of Febrl}ary 1, 2023, all residents vacated by the deadline and were ligible for relocation assistance,. In total, 80 Forest View residents received the full relocation am nt of$15,750. The Center f r Worker Justice worked directly with residents to assist them in ❑ aining affordable housin opportunities. mergency Non-Profit Assistance Status: In Progress Amount Funded: $485,000 Amount Expended:$438,072.66 December 2, 2024 Page 3 No rofit Operating Assistance: Applications for operating assistance were reviewed and $400, 00 in funding recommendations were approved by City Council at the October 18, 2022 meeting. Twelve non-profit agencies were awarded funding. All agreements Kaye been finalized. leven of the projects have expended all their funds. Of the $400,000 awarded to the twelve no ofits, $26,976.15 remains unexpended. Wage Theft: In c ordination with commitments from Johnson County„Coralville, and North Liberty, Iowa City located $85,000 over five years to the Center for Worker Justice for an expanded campaign o confront wage theft, promote worker rights; and hire a full-time Wage Theft Organizer. The WJ Wage Theft program has expended $65,048.81 to date, assisted 84 workers and recovered 83,466.82 in lost wages since May 2022. Program Status Update: Strat is Investments BIPOC Business Support Frame rk &Infrastructure Status: Amount Funded: $3,980,000 Amount Expended:$1,212,980 In an effort to advance the recommendatio in the Inclusive Economic Development Plan, the City launched an APRA-funded Inclusive ec omit development program for underestimated businesses and entrepreneurs located in Iowa ity. On March 19, 2024 City Council approved subrecipient agreements with Dream Center($2. illion- $100,000 was previously awarded for technical assistance), Multicultural Development Ce prof Iowa ($600,000), and Wright House of Fashion ($100,000). On April 16, 2024 City Counci approved subrecipient agreements with Dotlizhi LLC ($100,000), Neighborhood Centers of John n County ($80,000), and Tailored Tax and Accounting LLC ($100,000). To date, Dream Center has begun renovation of their entr reneurial hub at 611 Southgate /and and begun fisting lunch and learns. A total of 42 entrep neurs are involved with Dream services. right House of Fashion has held mentoring s sions with 11 entrepreneurs, ng strate y sessions with seven entrepreneurs and has 12 stu ents enrolled in the graphic progr . Multicultural Development Center has held 1 bu ess accelerator cohort, b iness coaching to 34 businesses and 12 businesses h e received Technical t grants. Dotlizhi LLC has distributed two grants to small busin ses and now has a ram coordinator. Tailored Tax and Accounting has provided no co financial services mall businesses. Neighborhood Centers of Johnson County have th it first economic ment workshops planned in December. 1 Social Services Capital Funding Program Status: Amount Funded—Free Medical Clinic: $1 million Amount Expended:$35,896.56 Amount Funded-Neighborhood Centers of Johnson County: $2 million December 2, 2024 Page 4 Amoun/E-xpend* illion Wt ouncil direction, staff developed a Non-Profit Capacity Building Capitaland releas a Request for Statements of Interest in December 2022. Eight fionprofit agencies submitte a Statement of Interest for consideration under the program. a review committee held inform onal interviews with a set of applicants in February 2023 a developed preliminary funding recom endations, which were approved at the March 21, 202 City Council meeting. Next Steps: Tw nonprofits, Neighborhood Centers of Johnson ounty and Iowa City Free Medical Clinic, recer ed preliminary funding recommendations. Council's December 12, 2023 meeting, they approv an agreement with Iowa City Free edical Clinic for $1,000,000 to renovate their facility. Th lanned renovations will increase a number of exam rooms available to an increased number of lunteer practitioners, provide cessibility to the lower level, increase medical storage (including efrigerated medication) create a dental laboratory, create administrative offices, a multi-p pose room, and acq re related medical equipment to serve a growing number of uninsured an underinsured in iduals seeking care. To date $35,896.56 has been expended in architectural nd equipme costs and the project bid has been awarded to Apex with construction planned to b in after hanksgiving. At Council's May 7, 2024 meeting, they pr ved an agreement with Neighborhood Centers of Johnson County for $2,000,000 to acquir two buildings in the Towncrest neighborhood for a Family Resource Center and an Early C Id od Center. Neighborhood Centers purchased the Early Childhood Center and Family Re urce nter buildings on August 1st. A groundbreaking was held at the Early Childhood Cent r on Septe er 21, 2024. Interior renovations have begun on the Early Childhood Center. T Early Childhao Center will have five licensed classrooms, for at least 50 early childcare slo , a library, compute lab, a multi-purpose space with a kitchen, and a large after-school classr m. Services at the FarNy Resource Center are now underway. A Unity U (an empowering a ucational program for community members) cohort is being held and the Family Resource enter is serving as the hub of,a partnership with Johnson County focused on the Communi Violence Intervention Program. y Affordable Housin Initiatives Status: AmorJsit Funded: $1,713,909.37 A aunt Expended:$1,707,823 On June 18, 24 City Council approved a purchase agreement for three 3 edroom townhomes on Herbert Dover Highway. The townhomes will be managed by the Iowa Ci Housing Authority and will b rented at an affordable rate. Rental permits have been obtained nd the units are being a ertised for applicants. On October 1, 2024 City Council appro d a purchase agree ent for 1002 & 1006 N Summit St, currently vacant properties where futur development will a ow the construction of up to 36 units of affordable housing. N Ste s: Staff are investigating funding sources for a potential affordable housing de lopment oject at 1002 and 1006 N Summit St. Staff are completing an environmental revie ,an the property and have consulted with the State Historic Preservation Office and tribal contacts to determine necessary next steps. December 2, 2024 Page 5 Menf\response h Services Status: In Pro s Amount Fu ed: $939,082 Amount Ex nded: $855,005 21 City pproved a subrecipient agreement with CommUnity at the ebruary 15, 2022 meetp d Mobile Crisis Outreach in response to the exacerbated ental health impacts of theic. free Mobile Crisis Response counselors work full ti a providing emergency respo fleet eight Mobile Crisis Response vehicles has allo d the program to maintain an aysponse ti a of 22 minutes within Iowa City respondin to a total of 5,218 calls since July 2er the cour a of the grant funding the program ha achieved a 94.9% hospital and jail diate. Workforce Development Status: Amoun unded - Chi ldcare Navigator(4Cs): $100,000 Amount Expended:$ 73,797.52 Amount Funded - Pre- renticeship Program (UI Labor Center): $400,000 Amount Expended:$150,463.07 Amount unde - Childcare Workforce Development: $750,000 Amount Expended:$500,000 00 Workforce Devel❑ ment: An agreem t with the 61 Labor Center for a pre-apprenticeship program targeting underserved popu tions in the building and construction trades was approved by Council on December 6'h, 2022. 4 residents were enro)ld in the FY23 cohort. 28 individuals graduated from the FY24 coh . Forty five percent of he graduates were employed in construction trades and/or app enticeship programs within on year of graduating. The FY25 cohort will be held February- arch 2025 so that they will grad ate as the Spring construction hiring begins. Childcare Workforce D el❑ meat: In June 2022, 4Cs and the I wa City Area Business Partnership presented an update on regional childcare efforts and ne%stoCity Council and recommended Cou it consider funding a childcare navigator positCs was awarded $100,000inARP funds for the navigator position. 4C's added aItant focused on recruitment and avigation of the childcare workforce. The consultant is curren�y working with 9 in-home/ee s starting childcare programs. Monthly Training Sessions are held with Starting Strong . 4C's has been approved to become a Registered Apprenticeship through Workforopment. Chitdcar Enhancement Program: Johnson County, Better Together 2030, an \City. comm nity partners presented a proposed Childcare Wage Supplement Program at the Ma 202 City Council Work Session. Council approved the agreement at the June 6, 2023, pro $7 0,000 over three years to support the Wage Enhancement Program. To date, the Coun thorized payment of$229,347.80 in wage enhancements to six childcare centers in Iowa 1n August 2024 the agreement was amended to include $25,000 per year (of the original December 2, 2024 Page 6 1 L \ontinueaft to assist in funding an Employer Engagement Program Manager. The ployer nt Program Manager has recently been hired. Michael Chen will be house t Greater c. and will be funded by Johnson County, the City, and Greater Iowa Ety Inc. The f the Employer Engagement Program Manager is to secure a, going funding is from local businesses to allow the Childcare Wage Enhancement Program to t the ARPA funding has been exhausted.silience nd Hazard Assessment Planning Status: L No Longer Planned Staff will continue to utilize mergency Levy fund balance and General Fund dollars to meet our Climate Action goals. Supple ental ARPA expenditures are no longer planned. Next Steps: None. L Small Business, Arts &Culture, and T urism' Investments Status: In Progress Amount Funded: $750,000 Amount Expended:$221,617.79 At the June 6, 2022 City Council meeting, Coun 'I approved an agreement with Think Iowa City to replace $125,000 in lost hot ellmPOt tax reve ue due to COVID-19 and to develop and administer a $125,000 tourism and,visitor recovery g nt program to spur tourism and economic activity in the Iowa City area. Oft✓ie $125,000 available through the grant program, Think Iowa City has awarded nine projects�o date: $7,500 to the Iowa G Iden Gloves to host the 2023 �kwa Golden Gloves Championships boxing tournament' Iowa City, organized by the ICOR,\6oxing Club. $15,000 to the R ocus Film Festival hosted by FilmScene in Iowa City in 2022 and 2023. $30,000 to the owa City Downtown District to host the Winter Night Lights light display and winter pr gramming in downtown Iowa City for 2023. • $5,000 to treFEST to host a two-day entrepreneurship and innovation conference in downtow Iowa City in June 2023. • $5,000 The Black Voice Project to host the 2023 Juneteenth cel bration downtown ■ $5,00 to the Core4 cycling event that incorporates four fundam ntal surface types: grav I, b-roads, singletrack, and pavement. With 850 participants, p s spectators and su port staff, the event brought over 1,200 people to Iowa City the week d of August 19, 23. • $5,000 to the Los Trompos temporary art exhibit downtown. $10,000 to the Empowerment Symposium: Inspiring Black and Brown Prof sionals to Lead held September 19-20, 2024. • $10,000 to the African Festival of Arts and Culture held September 28, 2024. Think Iowa City continues to accept applications on a rolling basis. December 2, 2024 Page 7 r 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 (Sout of 6 and Iowa City wntown District). These grants provide flexible support to allowtheySMIDs to meet their org izational needs. The Iowa City Downtown District has begun g funds for design of the duate Walkway lighting project. South of 6 recently hired executive director- Maurice avis. Next_5tens: taff intends to supplement the Skate Park Reno ation Project in the CIP with a $500,000 awa to ensure that project can be carried out in manner that provides maximum value to the com nity. Staffs previous efforts to secure nt funding for this project have not been successful an his award will allow the project top ceed. Once complete, the facility will be a regional tourism d w and a premiere community r crea#final amenity along the Iowa River. Public input has been gat red on the Skate Park sign. The project is currently in the final stages of design developmen with bids and constr tion anticipated for late 2025. Government Services and Revenu Replac ment Status: In Progress Amount Expended:$2,502,036.55 Utility Assistance Program Council approved the resolution a horizin Utility Billing Revenue Replacement at their September 6, 2022 meeting, bringi utility acc unts current as of June 1, 2022 and resuming regular collection procedures. T e total cost for Utility Billing Revenue Replacement was $676,146.49. Administrative Expenses Administrative expenses attr' uted to ARPA are paid thro {gh the interest derived from the City's receipt of ARPA funds. To I administrative costs incurred�q date is $188,119.11. Lead Reduction Council approved the esolution authorizing $500,000 for a City dministered program to assist property owners wit replacement of their lead water service lin at their November 6, 2023 meeting. This pro am will help qualifying property owners avoid a lanned, costly repairs and can be successful launched without placing the burden on utility cost ers. The City hosted an Open House to aise awareness about the program on January 24, 24. The program has enabled 15 ho eholds to replace their lead or lead contaminated sere a lines to date. The related insura Ice program has been used by at least one household to rep ce their service line. Workforce etention Incentive Council a roved the resolution authorizing$1,137,770.95 for worker retention in ntive bonuses to empl ees in the American Federation of State, County and Municipal E loyees and Admini trative, Confidential and Executive employee groups on December 12, 023, The incen ve is in response to an increase in turnover rates and a shrinking applicant poo or many criti I positions. 515 employees received the bonus in December 2023. Item Number: IP6. r 1 CITY OF IOWA CITY a � COUNCIL ACTION REPORT December 5, 2024 Iowa League of Cities: FY 2025-26 Budget Special Report Attachments: Iowa League of Cities: FY 2025-26 Budget Special Report of doc archived in LF. BUDGET SPECIAL REPORT • IOWA LEAGUE Significant changes to Iowa's property tax system have been adopted by the Iowa Legislature the last several years which have directly impacted city budgets,causing concern among many city officials as they try to Of C ITI ES provide essential public services under growing constraints.At the same time,the cost of providing services continues to rise for all cities,making the important task of balancing the budget even more difficult. The League's Budget Special Report contains the latest revenue and expenditure projections to aid city officials as they work through the annual budget process.It should be noted that the information detailed in this report is timely at publication and city officials need to continually monitor relevant data to make informed decisions. All city budgets Table of Contents completed using the online Revenues ...............................................................................................2 system provided by the Iowa • Legislation approved in 2024 and in previous years made significant changes to the Department ofManagementproperty tax system and will impact city revenues,including the creation of a new /• and submitted Combined General Fund Levy. electronicallyprescribed by IDOM.The budget form must also Expenditures........................................................................................10 • The FY 2026 IPERS contribution rates for regular members will remain the same,as •_ _• _ county • • the employee rate will be 6.29 percent and the employer rate will be 9.44 percent. Formsbe found at The contribution rate for protection class members will also hold steady with a 6.21 dom.iowa.gov/local- percent employee rate and a 9.31 percent employer rate. • • • The cost of many raw materials,goods and services returned to a historically average number as over the last year the Consumer Price Index for All Urban Consumers(CPI-U)rose 2.4 percent from September 2023 to September 2024. 500 SW 7th Street, Legislation............................................................................................13 Suite 1 • A review of legislation passed in 2024 that may affect city budgets. Des Moines, IA 50309 OtherBudget Issues............................................................................. 15 • • BudgetCalendar.................................................................................. 21 One-Stop Web References....................................................................23 Iowa League of Cities I November 2024 2 FY 2025-2026 BudgetReport Revenues A wide variety of factors have impacted municipal revenues in recent years,including major changes to the property tax system,property valuations,the 2020 Census and more.Each city can be affected differently and it is critical for city officials to carefully review revenues as they make budget decisions. Assessment Limitation Order— Rollback and More Major Changes to Iowa's Property Tax System The January 1,2024 property valuation serves as the basis for calculating property taxes in fiscal year (FY)2026. Since 1978,residential and agricultural property has been subject to an assessment limitation order,or"rollback",that limits annual growth of property values(all other classes of property were eventually added).Prior to the 2013 overhaul of the property tax system,property value growth was limited to 4 percent per year for agricultural,commercial,industrial and residential properties.If property values grew by more than 4 percent,the taxable value was rolled back to comply with the assessment limitation system. In addition,the rollback included a formula that tied the growth of residential property to that of agricultural property.This connection is commonly referred to as"coupling" and limited the valuation of either property class to the smaller of the two.Since the law's inception,residential property has always been subject to significant rollbacks while the other property classes did not grow as much and were often taxed at or near their full assessed value. While the property tax rollback system remains in place,several major changes were made during the 2013 legislative session and additional measures passed in 2021 and 2022 that further overhauled the system.The Iowa Legislature then adopted legislation in both 2023 and 2024 that fundamentally altered key components of the system. For each assessment year,beginning in 2013,residential and agricultural property value growth is now capped at 3 percent,or whichever is lowest between the two classes(the coupling provision remains). A separate rollback was instituted for commercial,industrial and railroad which began at 95 percent for valuations established during the 2013 assessment year(affecting FY 2015)and went to 90 percent for the 2014 assessment year and thereafter.The rollback percentage for these properties will remain fixed at 90 percent regardless of how fast or slow valuations grow. The legislature created a standing appropriation,beginning in FY 2015,to reimburse local governments for the property tax revenue reductions resulting from the new rollback for commercial and industrial property(railroad not included).The"backfill"was funded at 100 percent by the legislature for fiscal years 2015-2022 and cities received the funds in a similar manner as property tax revenue. Iowa League of Cities November 2024 FY 2025-2026 Budget Special Report 3 Part of the 2021 property tax legislation included a provision to reduce,and eventually eliminate,the backfill.Cities are divided into two categories based on property valuation growth from FY 2014 to FY 2021,which then determines the schedule they have for the reduction in backfill payments.The table below details these categories and the reductions. Property Valuation Growth Less than Statewide Average of Property Valuation Growth More than Statewide Average of 31.24%(FY 2014-FY 2021) 31.24%(FY 2014-FY 2021) Backfill reduced over 8 years(1/8 of amount each year Backfill reduced over 5 years(1/5 of amount each year until it reaches zero) until it reaches zero) 679 cities 261 cities The reduction in backfill payments has begun and will continue on the respective schedules before it is eventually eliminated.Cities in the 5-year category will receive their last backfill payment in FY 2026,while the 8-year cities will have their final payment in FY 2029. The backfill funds should be recorded as intergovernmental revenue from the state.For those using the standard Chart of Accounts the account number is 4464:Commercial4ndustrial Replacement Claim Payments. Another major component of the 2021 legislation eliminated the multi-residential property class,which had been created through the 2013 property tax law.The class was established in FY 2017 and included several types of properties,such as mobile home parks,assisted living facilities,and property primarily used or intended for human habitation containing three or more separate living quarters(including the portion of a building used for human habitation, even if human habitation was not the primary use of the building).Multi-residential property was given its own eight-year rollback schedule that resulted in a decline in taxable values over time.No backfill was created as part of the 2013 legislation. Prior to the re-classifying of these properties in FY 2017,the vast majority were commercial properties and taxed at their full assessed value.The 2021 legislation moved these into the residential category going forward. In 2022,the state legislature passed a bill that eliminated the Business Property Tax Credit and replaced it with the equivalent of a rollback on all commercial,industrial and railroad properties.While not all eligible properties applied for and received the previous tax credit,the legislation placed a rollback on the first$150,000 of taxable value on all commercial,industrial and railroad properties that is equal to the residential rollback percentage(the value that exceeds$150,000 will be subject to the commercial,industrial and railroad rollback of 90%). The$125 million state appropriation that funded the Business Property Tax Credit was converted to a backfill payment.Importantly,the Department of Revenue released a fiscal note that shows the appropriation is already insufficient due property valuation growth of affected properties.This change took effect in FY 2024. Iowa League of Cities November 2024 2025-2026 BudgetReport Moving to the 2023 legislation,several sections have a direct impact on city budgets.First,a new Combined General Fund Levy(CGFL)is required to be used by cities that replaces the regular general fund levy.A variety of levies that had been previously available to city governments, including several that were approved by voters at the local level,were eliminated.There is also a mechanism in place that can automatically force a city's CGFL to decrease for those that experience certain levels of taxable property valuation growth.More details can be found in the following section. The 2023 bill also expanded upon the Homestead Tax Credit by providing a new Homestead Exemption for property owners 65 and older as well as an expansion of the Military Service Exemption.The new Homestead Tax Exemption is not funded by the state.The entire Military Service Tax Credit,including the expansion and the portion that used to be partially state funded,is also not funded by the state.The impact is a lower taxable value on such properties. New restrictions were put in place for property tax abatement programs by requiring the use of minimum assessment agreement for commercial properties.Such agreements must contain specified information,including a minimum actual value for the completed improvements, and must be certified by the assessor.This applies to revitalization areas created in FY 2025 and after,and for first-year exemption applications in existing revitalization areas filed on or after July 1,2024. Another important piece of the 2023 legislation restricted when city governments can put forward a referendum to voters for certain types of general obligation bonds.Such referendums can now only be held at November elections—previously,cities had the ability to schedule special elections for these types of bond referendums. Finally,the 2023 changes altered the budget adopting and filing process in several important ways that took effect immediately.Further modifications were made in 2024 by the legislature. Please read the Budget Calendar section in this report for the full details and to see a revised recommended budget adoption schedule. Both separately and together,the Property 1 1 1 1 recent legislation has greatly impacted Agricultural 73.8575% 71.8370% 91.6430% 89.0412% local revenues and budgets.As always,it is crucial for city officials to Commercial 90%* 90%* 90%* 90% understand the overall property tax system and analyze its ability to fund Industrial 90%* 90%* 90%* 90% needed services.The League offers Railroad 90%* 90%* 90%* 90% a variety of resources to help cities better understand the property tax Residential 47.4316% 46.3428% 54.6501% 54.1302% system,including how assessments are done,analysis of levies that are *The first$150,000 of taxable valuation on commercial,industrial and railroad utilized by cities and more.Please properties is subject to the current residential rollback; any value over is visit www.iowaleague.org to access subject to the 90%rollback these helpful resources. Iowa League of Cities November 2024 FY 2025-2026 Budget Special Report 5 Property Tax Levies Prior to FY 2025,cities could levy up to$8.10 per$1,000 of taxable value on residential, commercial and industrial property and up to$3.00375 per$1,000 on the taxable value of agricultural property for their general fund(Code of Iowa Section 384.1). In 2023,the Iowa Legislature approve legislation that significantly reduced the levies available for use and implemented a Combined General Fund Levy(CGFL)that may result in revenue reductions for most cities.A key provision establishes a system that automatically reduces a city's CGFL if it exceeds certain annual non TIF taxable property valuation growth thresholds(this system was altered by 2024 legislation).The system utilizes FY 2024 as the base year and then has three non TIF taxable value growth thresholds as detailed in the table below.If a city's annual non TIF taxable value exceeds the thresholds,its CGFL will be reduced as detailed in the table. Annual Non-TIF Taxable Value Growth =Less than 2.75% CGFL is not impacted, but if rate is above$8.10 it becomes the maximum Annual Non-TIF Taxable Value Growth =2.75-3.99% CGFL revenue growth reduced by about 1% Annual Non-TIF Taxable Value Growth =4%-5.99% CGFL revenue growth reduced by about 2% Annual Non-TIF Taxable Value Growth =6%or Higher CGFL revenue growth reduced by about 3% The formula used for these calculations is based on the city's non TIF taxable valuations,which are provided by the county assessor.The total for each year is utilized to determine the growth figure on a year-over-year basis(with the FY 2024 values serving as the base year).As such,the first step is identifying the non TIF taxable values and calculating the annual growth. For cities that exceed one of the three thresholds in a given year,their CGFL will be reduced accordingly for the next annual budget and fiscal year.This is done through a formula established in state code.The Iowa Department of Management has a tool that includes the formula as required by the state code and calculates the resulting change,if necessary,to a city's CGFL. The legislation requires cities to utilize the CGFL for FY 2025-2028.It is possible for cities that begin with a base CGFL over$8.10 to continue to be above$8.10 if they do not exceed the 2.75% taxable value growth threshold.Importantly,the law restricts a city's maximum CGFL to its previously established highest level within the four-fiscal year period,even if its taxable valuation growth is less than 2.75%in a particular year.In data provided by the Legislative Services Agency, nearly all cities exceeded 2.75%taxable valuation growth at least once in the past six years and therefore most cities can expect to have its CGFL reduced at some point over the four fiscal years covered by the system. Finally,the legislation places a firm maximum on the CGFL at$8.10 beginning in FY 2029 for all cities—regardless of taxable valuation growth or decline,past CGFL levels(including those that were above$8.10)or other budgetary considerations. Iowa League of Cities November 2024 2025-2026 BudgetReport The legislation also eliminated a number of levies cities could use to help support its general fund,including some that were voter approved and could be used for specific purposes.Below is a list of levies that can no longer be used by city governments. • Regular General Fund Levy(replaced with CGFL,see above) • Emergency Levy • Instrumental/Vocal Music Groups • Memorial Buildings • Symphony Orchestra • Cultural&Scientific Facilities • County Bridge • Mississippi or Missouri River Bridge Construction • Bridge Purchase • Contract for Use of Bridge • Aid to a Transit Company • Rent,Insurance,Maintenance of Civic Center • Operation&Maintenance of City-Owned Civic Center • Planning a Sanitary Disposal Project • Levee Improvement Fund in a Special Charter City • Maintain Institution Received by Gift/Devise • City Emergency Medical District • Support Public Library Other levies that some cities utilize were not affected,including ones for debt service,pensions, employee benefits,and tort and self-insurance.More details on these can be seen here: • A city may levy for the city's contribution under the Federal Insurance Contributions Act(FICA),the Iowa Public Employees'Retirement System(IPERS),the Municipal Fire and Police Retirement System of Iowa(MFPRSI)and certain other employee benefits. On the state budget forms,these are shown in the special revenues fund column of the Revenues Detail(Form 631B).The expense would be shown on the Expenditures Schedule (Form 631A)under the appropriate activity in the special revenues fund(column D). Alternatively,the city may need to transfer the benefits into the general fund where the expenses are recorded.(Section 384.6) • Insurance premiums,including workers'compensation,necessary for the operation of the city and the costs of self-insurance or risk pools may also be levied outside the CGFL limit. The levy rate is the actual cost of the premiums divided by the total property tax base. Insurance costs on projects or improvements covered by revenue bonds and insurance on proprietary fund activities may not be levied,as these activities should fund themselves. These revenues are typically credited to the general fund even though they are restricted. (Section 384.12(17)) • A city may levy to cover principal and interest payments on general obligation bonds under debt service.Provided proper procedures were followed on lease-purchase or loan agreements,the annual principal and interest payments may also be levied under debt service.The debt service levy is the dollars needed to cover the annual debt obligations divided by the total property tax base.(Section 384.4) Iowa League of Cities November 2024 FY 2025-2026 BudgetReport • As permitted under administrative rules adopted by the City Finance Committee, cities may levy for the city's contribution to certain employee benefits.The definition of employee benefits includes workers'compensation costs or insurance premiums, unemployment benefits,employer's share of employee benefits plans,employee wellness and assistance programs,regularly-scheduled,city-required post-employment physicals for employees,police reserves and volunteer firefighters,and more. Utility Replacement Tax The Utility Replacement Excise Tax is collected on the generation,distribution and delivery of electricity and natural gas.This tax replaced the taxation on utility property in 1999.Cities are required to calculate their property tax revenues with and without utility property valuations. The difference that is calculated is necessary to establish the General Property Tax Equivalents, the basis for determining the distribution of the excise tax.The Iowa Department of Revenue calculates the amount of revenue that a city will receive and includes this information with the budget information cities receive from the Iowa Department of Management. Franchise Fee Legislation Cities are able to collect gas and electric franchise fees not to exceed five percent of the franchisee's gross revenues"without regard to the city's cost of inspecting,supervising,and otherwise regulating the franchise' Revenue from franchise fees can only be used for certain purposes outlined in the state code,but does include such items as public improvements,property tax relief,public safety,energy conservation and economic development activities.A bill approved during the 2015 legislative session requires cities to hold public hearings prior to increasing or amending a franchise fee. Road Use Tax Fund The Road Use Tax Fund(RUTF)is accumulated through motor vehicle registration fees,motor vehicle fuel taxes,an excise tax imposed on the rental of automobiles and a use tax on trailers.The state legislature approved a League-supported gas tax increase in 2015 to bring additional funding to the system for critical road infrastructure needs.The per gallon tax increase of 10 cents adds an estimated$215 million annually to the fund,from which cities receive per capita distributions to pay for the construction,repair and maintenance of road infrastructure. Results from the 2020 Census were certified in 2021,which directly impacted the statewide distribution formula and each city's per capita amount.The Iowa Department of Transportation (IDOT)released calculations that showed cities with more than 4.78 percent growth in population were expected to see an increase in RUTF allocations,while cities less than 4.78 percent growth in population were likely to have a reduction. Iowa League of Cities November 2024 8 FY 2025-2026 BudgetReport Cities are reminded that economic instability and fluctuating Iowa OT fuel consumption and costs can result in immediate changes Fiscal Year Per � in the fund.The IDOT issues per capita forecasts only and Forecast Capita cities are only entitled to receive their share of the amount actually collected.The estimates are subject to dramatic FY 2025 $139.50 changes and cities should consider using a conservative estimate. FY 2026 $140.50 Also,the estimates are based on current law regarding specific FY 2027 $141.50 revenue to and disbursement from the RUTS Any change in FY 2028 $142.50 the law could change the per capita amount to be distributed to cities. FY 2029 $143.50 Transfer of Road Jurisdiction: Cities Under 500 In 2004,counties in Iowa assumed responsibility for maintenance of Farm-to-Market(FM)roads in cities with a population less than 500.A transfer of RUTF money based on the total length of the FM roads in each of these cities was also transferred to the respective county.Many cities have entered into 28E agreements with the county to return a portion or all of the responsibility for the road back to the city,along with a corresponding amount of RUTF funds.The State Auditor's Office has stated that funds transferred back to the city from the county are still restricted in the same manner as all Road Use Tax revenue,because road use tax funds are restricted to be spent for roads by Article VII(8),Iowa Constitution.As such,the revenue received under the 28E agreement should be recorded in the city's Special Revenue Fund as: • Intergovernmental • Local Grants and Reimbursements This revenue should not be recorded as road use tax revenue by the city since it is already recorded as road use tax revenue when received by the county.The money must also be spent in accordance with Code of Iowa Chapter 312 and any terms and conditions of the 28E agreement. The IDOT modified how FM roads are designated,which altered the amount of such roads in some communities.Additionally,the 2020 Census resulted in ten cities dropping below 500 in population and therefore being subject to this law. Local Option Sales and Service Tax Cities in Iowa are allowed to establish a Local Option Sales and Service Tax(LOSST)upon approval by its citizens.Rates are limited to one percent and cities must specify on the ballot the purposes of the revenue,including any that will be used for property tax relief. Beginning in FY 2023,the Iowa Department of Revenue(IDR)implemented a distribution system based on revenues actually collected,which replaced the previous system that based distributions on estimates. Iowa League of Cities November 2024 FY 2025 estimates from the IDR show a statewide increase of 13.9%in distributions for all local governments with a LOSST from the previous year.It is important to note that LOSST distributions are based on a formula that includes a variety of local factors,such as sales tax collections,populations,property values and more,resulting in different actual distributions for each city. The IDR has several helpful files regarding LOSST,including a history of revenues for each city,monthly estimates,and a tool that shows how distributions would be impacted by a city approving or rescinding a LOSST.Those files can be accessed at revenue.iowa.gov/taxeWtax-guidance/sales-use-excise-tax/local-option-sales-tax lost. More detailed information may be obtained by contacting the IN at (800)367-3388 or revenue.iowa.gov. Hotel/Motel Tax A city may impose a hotel/motel tax at a rate not to exceed 7 percent after successful approval of a simple majority vote within the city.State law requires that 50 percent of such revenues are used for acquiring,improving,operating or improving recreational,cultural or entertainment facilities or for the promotion and encouragement of tourist and convention business.The remaining revenues may be spent on any other lawful purpose. The IDR has additional information, including files showing rates and quarterly payment distributions, at revenue.iowa.gov/taxes/tax-guidance/property-tax/iowa-hotel-and-motel-tax. Enrich Iowa Funds for Libraries The Enrich Iowa Program includes Direct State Aid,Open Access and Interlibrary Loan. • Direct State Aid is a direct payment to public libraries and is intended to be used to improve and enhance library services. • Open Access provides a partial reimbursement to participating libraries to make it possible for patrons to check out materials at other participating libraries. • Interlibrary Loan provides partial reimbursement for interlibrary loans among all types of libraries. Additional information on these programs is available at the State Library of Iowa website, www.statelibraryofiowa.gov/index.php/libraries/funding-grants/enrich-iowa. Iowa League of Cities November 2024 1 FY 2025-2026 . . - .- Report Fuel Tax Refunds Cities are eligible for refunds from both federal and state governments for taxes paid on gasoline. In most cases,cities must pay the fuel taxes at the pump and then file for a refund with the state and federal governments.Cities on a modified accrual accounting basis should not consider payment of the tax as an expenditure nor should they consider the refund as revenue.However, cities on a cash accounting basis should charge the tax as an expense and receipt the refund as revenue.In order to receive a refund from the state,the city must: 1. Have a refund number; 2. Keep a record of gallons purchased(cities are not required to send the actual invoices with the refund request);and 3. Apply for the refund within one year of purchase. Cities may apply for a refund number and obtain forms necessary for filing the refund by contacting the Iowa Department of Revenue at(800)367-3388 or download the forms by visiting tax.iowa.gov/other-iowa-motor-fuel-tax-information.Cities may also file for a refund by telephone and request direct deposit of their refunds. If your city is entitled to a federal refund of$750 or more per quarter for tax paid on gasoline purchases,you may file quarterly for a refund.If the refund is less than$750 per quarter,you must file annually.To receive the refund on the gas tax,a refund request must be filed on Internal Revenue Service(IRS)Form 8849.See IRS Publication 510 Fuel Tax Credits and Refunds for further information. You may request IRS forms by calling (877)829-4933 or download the forms at www.irs.gov/forms-instrLictions. Expenditures U.S. Consumer Price Index The U.S.Consumer Price Index(CPI)is a measure of the changes in retail prices of a fixed market grouping of consumer goods and services.The CPI for all urban consumers(not seasonally adjusted)for September 2024 increased 2.4 percent from September 2023.The CPI is based on the major expenditure categories of food and beverages,housing,clothing,transportation and energy,medical care,recreation,education and communication as well as other goods and services.The Midwest Region CPI rose 2.5 percent from September 2023 to September 2024. The most recent CPI figures and more information can be obtained by visiting www.bls.gov/cpi. U.S. Employment Cost Index Another measure of cost trends,the U.S.Employment Cost Index(ECI),factors in expenses related to wages,benefits and total compensation.The ECI total compensation index for state and local government workers increased 4.7 percent from September 2023 to September 2024. The most recent ECI figures and more information can be obtained by visiting www.bls.gov/ect. Iowa League of Cities November 2024 FY 2025-2026 Budget . • . . FICA Deductions The city(employer)and the employee each contribute 7.65 percent of wages for Social Security and Medicare.The maximum taxable earnings subject to the Social Security portion(6.2 percent) of the Federal Insurance Contributions Act(FICA)is currently$168,600 and will increase to $176,100 in 2025.There is no limit on the salary covered for the Medicare portion(1.45 percent) of FICA.Please note that rates may change during the fiscal year.Questions on FICA may be directed to the Des Moines office of the Social Security Administration(SSA)at(800)772-1213. You can also visit the SSA website at www.ssa.gov for questions, publications and other information. Iowa Public Employees' Retirement System (IPERS) IPERS Contribution Rates Regular Class Members IPERS contribution rates for employers and employees have been steady Regular Class Members July 1, 2023 July 1,2024 July 1, 2025 the past several years.Contribution rates for regular and protection class Employee Rate 6.29% 6.29% 6.29% members will not change in FY 2026. Employer Rate 9.44% 9.44% 9.44% City officials are encouraged to consult with an IPERS representative should Combined Rate 15.73% 15.73% 15.73% they have any questions about their retirement account. IPERS Contribution Rates Protection Class Members Employer and employee contribution rates are posted to the IPERS website at Protection Class Members July 1, 2023 July 1,2024 July 1, 2025 www.ipers.org/about/contribution-rates. Employee Rate 6.21% 6.21% 6.21% Important Note:All part-time elected Employer Rate 9.31% 9.31% 9.31% officials must be covered by IPERS unless they specifically opt out of coverage.All Combined Rate 15.52% 15.52% 15.52% employers will be audited on a regular cycle,based on the number of employees. Questions may be directed to the IPERS office at(800)622-3849 or visit their website at www.ipers.org for more information. Municipal Fire and Police Retirement System of Iowa (MFPRSI) The MFPRSI contribution rate formula MFPRSI Contribution Rates is established in Code of Iowa Chapter MFPRSI City Contribution July 1 2023 July 1 2024 July 1 2025 411 and currently sets the employee Rates , , , rate at a fixed 9.40 percent.Each year, the MFPRSI Board of Trustees sets the Employee Rate 9.40% 9.40% 9.40% employer rate after the completion of Employer Rate 22.98% 22.66% 22.68% an annual actuarial valuation.The city's contribution rate,effective July 1,2024, Combined Rate 32.38% 32.06% 32.08% is 22.66 percent.The rate will see a slight increase to 22.68 percent for FY 2026. Iowa League of Cities I November 2024 Mileage Cities may reimburse city officials and employees using their own vehicles up to the amount allowable under Internal Revenue Service(IRS)rules.While cities are not required to use the IRS rate,any changes made in the city reimbursement rate should be done by resolution.The current IRS rate of 67 cents per mile was set in January 1 and is valid until December 31,2024.Rates for 2025 have not yet been determined and will be available at www.irs.gov in December. Minimum Wage Rate Both the state and federal minimum wage have remained the same since 2009.The state hourly wage is$7.25 and the hourly wage for youth employees working less than 90 days is$6.35 (the lower rate only applies to employees under the age of 20).The federal minimum wage is also $7.25 per hour.As a reminder,if there is a disparity between the federal and state minimum wage rate,employers are required to pay the higher of the two. The state legislature approved House File 295 in the 2017 legislative session that,among other things,prohibits cities and counties from adopting local minimum wages that are higher than the state level.The bill nullifies all existing local minimum wage ordinances that differ from the state level. Unemployment Compensation Most cities are reimbursable for unemployment compensation upon application,unless they elect to be contributory by completing an additional form stating such.Cities must reimburse the state for actual unemployment benefits paid out by Iowa Workforce Development(IWD)within 30 days following the billing for any quarter in which the state has made payments to the city's former employees.If a city anticipates the possibility of layoffs during a fiscal year,they may want to budget for the expense of reimbursing unemployment benefits. Contributory tax rates are based on the extent that tax payments made by the city are in excess of benefits paid out by IWD,and this reserve balance is then divided by the average taxable payroll. The tax due is found by taking the percentage calculated for the city multiplied by the first $38,200 of each employee's gross salary(this will increase to$39,500 in 2025).IWD will mail tax rate notices giving the percentage for each city in November.The city has 30 days from the Rate Notice Date on the form to appeal their contribution rate. All cities have the option to change their status to contributory or reimbursable.Cities can change their status by December 1 for the next calendar year by contacting IWD for the appropriate forms in advance of the deadline.However,if a city opts to switch from contributory to reimbursable,it is required to pay to IWD any deficit that may be due to claims against its current account in excess of contributions. Information regarding IWD can be found at www.iowaworkforcedevelopment.gov. Workers' Compensation Insurance Premium for workers'compensation coverage can be estimated using the audited payroll from the previous year with adjustments for cost of living and other increases,taking into consideration anticipated changes in personnel and/or operations.Once payroll has been adjusted for each class code,apply the rate for each code per$100 of payroll.The city should check with its agent to see if any rate changes will go into effect prior to its renewal. Iowa League of Cities November 2024 FY 2025-2026 Budget Special Report 13 General Liability and Property Insurance Liability coverage contribution is based on several factors such as number of employees,number and types of automobiles and expenditures.However,the easiest way to project cost of liability coverage is to apply the current inflation factor.Premium for liability coverage is based on the number of employees and a five percent increase to the entity's total budget.Rating for property and auto physical damage coverage is based solely on the total insured value(TIV)of the schedule.A simple way to project cost is to calculate the TIV of the previous year,divide it into last year's contribution and apply the factor to this year's TIV. It is anticipated that cities will experience significant increases in property insurance premiums in FY 2025.City officials are encouraged to contact their insurance providers to help determine future expenses. Legislation When re-estimating revenues and expenditures for FY 2025 and budgeting for FY 2026,cities should be mindful of recent legislative actions that may have a significant fiscal impact on the city.Full coverage of the laws passed by the 2024 General Assembly is included in the New Laws of Interest to Iowa Cities report,which can be found on the League website at www.iowaleague.org. SF 24421 Property Tax Change Omnibus This tax omnibus bill makes many changes that relate to various taxes.Alters thresholds within the Targeted Jobs Withholding Tax Credit.Allows a city that fails to file necessary information regarding property taxes with the Department of Management by the deadline to certify a levy that is not more than the previous year's budget.Changes the date that cities must report budget and levy information related to the Property Tax Notification Statement to the Department of Management from March 15 to March 5.Alters the information contained in the Property Tax Notification Statement which is mailed to each property owner.Allows a city which has a levy rate of$0 for the prior fiscal year to certify a Budget Year General Fund Levy up to$8.10.Allows for a limited extension of a Tax Increment Finance division of revenue with the approval of all taxing entities whose revenues would be affected.Creates a new tier of Consolidated General Fund Levy ratcheting which is based on the non TIF taxable valuation growth that is between 2.75%and 4%growth.Incrementally changes the rollback applied to pipeline and cable property until it is equal to the commercial rollback. Amends numerous sections in Chapters 8,24, 384,403,422,425,and 441 /Multiple effective dates HF 23981 Public Official Bonds or Insurance Allows a public officer,such as a mayor or city clerk,to hold an insurance policy in lieu of a bond as required in Code of Iowa Chapter 64.Alters the provisions which regulate the failure to give bond so that suspension from office is first and removal from office can take place after a reasonable timeframe. Creates Section 64.3 and amends Section 64.25/Effective July 1,2024 Iowa League of Cities November 2024 SF 23311 Publication Requirements Creates new regulations and requirements on Newspapers of Record in regards to accepting and publishing governmental notices that includes posting online,restrictions on charging local governments for proof of publishing,as well as the ability for cities to publish on their own website in the event a newspaper refuses to publish.Alters language about when a city clerk has to provide a meeting summary following a meeting of the council to a newspaper to be published. Amends Section 372.13 and numerous sections of Chapter 618/Multiple effective dates SF 5741 MEGA Economic Development Program Creates the Major Economic Growth Attraction(MEGA)Program for the purposes of attracting large economic development projects in the fields of advanced manufacturing,biosciences, or research and development to the State of Iowa.Administered within the Iowa Economic Development Authority.Limits the property tax exemption and local incentives to 20 years and cannot include school district taxes. Creates numerous sections in Chapter 15/Effective May 10,2024 HF 23971 Emergency Medical Service Transport Reimbursement Allows emergency medical transport services to transport a person experiencing a mental health crisis to a mental health access center and directs the Department of Health and Human Services to reimburse for this service at rates similar to transportation to hospital emergency departments. Creates Section 147A.19/Effective July 1, 2024 HF 26801 MFPRSI Benefits Enhances the benefits within the Municipal Fire and Police Retirement System of Iowa,Chapter 411.Strikes the definite time and place language within Code of Iowa Chapter 411 and replaces it with"arising out of or in the course of the employment."Stipulates that a mental incapacity that will be considered compensable under Chapter 411 will have to be demonstrated to be a readily identifiable work event manifesting from a sudden and traumatic experience that is unusual for firefighters or police.Allows for the conversion of ordinary disability to accidental disability. Clarifies that cities shall provide physical and mental medical attention and can utilize group health insurance to do so.Allows vested members to make claims related to employment up to three years after the last date of employment,subject to restrictions. Amends numerous Sections of Chapter 400 and 411 /Effective January 1,2024 HF 26611 Sheriff Pension, Officer Relocation Grants, Enhanced Penalty for Assaulting an Officer Enhances the pension benefits for Sheriff and Sheriff Deputies for retirements that occur after July 1 of 2024.Creates the crime of felonious assault of an officer and prevents bail from being awarded to a defendant who is charged with murdering a police officer.Creates an income tax credit for officers who move to Iowa. Amends Sections 97B.49C, 811.1,and creates 422.12P/Multiple effective dates Iowa League of Cities November 2024 Other Budget Issues City Annual Financial Report The Iowa Department of Management(IDOM)requires that the Annual Financial Report(AFR) forms be filed using an online reporting and filing system.The AFR portal can be found at dom4ocalgov .iowa.gov.The AFR is a statement of actual revenues,expenditures,and fund balances from the prior fiscal year.This report has a filing deadline of December 1 each year.The online report,a signed copy of the All Funds P1 summary page,and the proof of publication/ affidavit of posting must be submitted and received by the Auditor of State's Office not later than December 1.The AFR must be completed and submitted before the city budget hearing process can be started.Failure to complete the AFR in a timely manner will lead to the next year's budget facing a financial penalty.Also,timely filing is required as the actual financial data from the AFR auto-fills to the budget forms. The Iowa Department of Management(IDOM)requires that the Annual Financial Report(AFR) forms be filed using an online reporting and filing system.The AFR portal can be found at dom4ocalgov.iowa.gov/home.The AFR is a statement of actual revenues,expenditures,and fund balances from the prior fiscal year.This report has a filing deadline of December 1 each year.The online report,a signed copy of the All Funds P1 summary page,and the proof of publication/ affidavit of posting must be submitted and received by the Auditor of State's Office not later than December 1.The AFR must be completed and submitted before the city budget hearing process can be started.Failure to complete the AFR in a timely manner will lead to the next year's budget facing a financial penalty.Also,timely filing is required as the actual financial data from the AFR auto-fills to the budget forms.New for FY 2024-2025:HF718 created a requirement to report more information on city debts. To accommodate this,a new page has been added to the city AFR for future years. The new long-term debt page has been added to the AFR for future years to collect the required data. IDOM has a recorded training webinar on how to complete the AFR.The webinar and other helpful information can be found at dom.iowa.gov/local-government/city-resources#city-annual-financial-report-afr-tutorial. Annual Urban Renewal Report Legislation approved in 2012 requires all cities that have an urban renewal area,whether actively generating tax increment or not,to submit the Annual Urban Renewal Report.Cities must provide a variety of information for each of their urban renewal areas,including urban renewal plans,maps,tax increment financing ordinances,debt and financing data,and urban renewal projects. The report is due December 1 of each year and must be completed and filed using the IDOM online reporting system(www.legis.iowa.gov/tif/la).The system requires users to upload associated documents in PDF format.City councils must approve the form prior to submittal. Failure to file the report by the deadline will result in the city being unable to certify their budget,which could lead to financial penalty of being held to the prior year's property tax revenue,and being placed on a list of delinquent cities sent to the Legislature and Governor. The League and IDOM recorded training webinars on how to complete the report. Those webinars and other helpful information can be found at www.iowaleague.org and dom.iowa.gov/tax-increment-financing. Iowa League of Cities November 2024 Certification of TIF Debt Cities must certify debt payable with Tax Increment Financing(TIF)funds on or before December 1.Code of Iowa Section 403.19 requires cities to certify to the county auditor the amount of any"loans,advances,indebtedness,or bonds"that qualify for payment from TIF revenue from a TIF district.This certification of TIF debt is only required once.However,due to the unique nature of many TIF programs,some cities may need to file on an annual basis or make adjustments to the amount needed in the next year. The county auditor is responsible for collecting and distributing the funds available from the increment in subsequent years until the entire certified amount is paid into the city's tax increment fund.However,if additional debt is incurred,that amount must be certified by the following December 1 in order for the county auditor to make the proper distribution in the next fiscal year.Failure to certify the debt before December 1 will delay payments to the city by one year.IDOM and the State Auditor's Office have developed a TIF Debt Certification form that cities may use when certifying their debt to the county auditor.Due to the unique nature of each urban renewal area and TIF request,be sure to proactively communicate with your County Auditor about your TIF request. The League and IDOM recorded training webinars on how to complete the report. Those webinars and other helpful information can be found at www.iowaleague.org and dom.iowa.gov/tax-increment-financing. City Budget Forms IDOM requires that the city budget and subsequent budget amendments be completed in the online budget system at dom4ocalgov .iowa.gov.The budget form,which requires two separate hearings to approve,must be filed with IDOM and the county auditor by April 30.Be sure to complete the AFR by December 1 so that your city will be able to complete the budget process and file the budget by April 30.Late budgets are penalized by being restricted to the prior years' property tax revenue. American Rescue Plan Act and the Coronavirus State and Local Fiscal Recovery Fund The American Rescue Plan Act(ARPA)was approved by Congress in early 2021,and included funding for local governments as a pass-through grant from the U.S.Department of Treasury.As the plan was developed,cities were required to request ARPA funding through the state of Iowa and the funds were provided to cities on a per capita basis.Following that process,cities received their first installment of funding that represented half of the total amount in the fall of 2022,and the remaining funding was distributed starting in the summer of 2023. The ARPA grant funds are part of the U.S.Department of Treasury's Coronavirus State and Local Fiscal Recovery Fund(SLFRF).When cities accepted the funding,they agreed to periodically file reports through Treasury's SLFRF portal.As part of the reporting process,cities are required to report obligations and expenditures. The definition of obligation under Treasury rules means having an executed contract in place,and not just allocating how the funds are to be spent. Cities have until December 31,2024 to fully obligate the funds they have received,and expend all funds before December 31,2026.If cities do not meet the deadlines that have been established,it is likely the Department of Treasury will require the city to return any funds that have not been obligated or expended. Iowa League of Cities November 2024 FY 2025-2026 BudgetReport Infrastructure Investment and Jobs Act The Infrastructure Investment and Jobs Act(IIJA),also known as the Bipartisan Infrastructure Law(BIL),was passed by Congress in November 2021.The law authorizes$1.2 trillion for roads,bridges,water,broadband,and other uses through 2026.Unlike the ARPA pass-through grant cities received,local governments have and will be able to apply for funding through a competitive grant process for specific funding. It is anticipated Iowa stands to gain at least$5 billion in funding through 2026.The funds specific to Iowa have and will continue to be disbursed to state agencies such as the Iowa Finance Authority,Iowa Economic Development Authority,and the Iowa Department of Transportation. Cities interested in applying for Iowa's portion of IIJA funds apply directly through the applicable agency.The available funding serves a number of needs including,but not limited to: • Water infrastructure including funding for lead service line replacement • Highway aid to address highways in poor condition • Bridge replacement and repairs • Public transportation • Airport infrastructure and upgrades • Electric vehicle programs including funding for charging stations • Broadband expansion The Buy America,Build America Act(BABA)is part of the requirements of IIJA regardless if the grant is applied for through the federal government or a state agency.As it relates to infrastructure projects and awarding of funds,the following BABA requirements must be met: • All iron and steel used on a project must be made in the United States; • All manufactured products must be produced in the United States and must be greater than 55%of the total cost of all components of the manufactured product;and • All construction materials must be made in the United States. Iowa League of Cities November 2024 Bid and Quote Thresholds for Cities The bid and quote thresholds for qualifying public improvement projects as defined in Chapter 26 of the Code of Iowa can be seen in the following tables. ThresholdsCurrent bridges,Horizontal Infrastructure—Roads,streets, Cities Less Than 50,000 Cities Greater Than 50,000 Competitive Bid Required $65,000 $93,000 Competitive Quote Required N/A N/A ThresholdsCurrent parkingVertical Infrastructure—Buildings, Cities Less Than 50,000 Cities Greater Than 50,000 Competitive Bid Required $196,000 $196,000 Competitive Quote Required $81,000 $109,000 January 1,2025 Thresholds bridges,Horizontal Infrastructure—Roads,streets, Cities Less Than 50,000 Cities Greater Than 50,000 Competitive Bid Required $62,000 $89,000 Competitive Quote Required N/A N/A Thresholds parkingVertical Infrastructure—Buildings, Cities Less Than 50,000 Cities Greater Than 50,000 Competitive Bid Required $206,000 $206,000 Competitive Quote Required $82,000 $114,000 For a detailed explanation of construction bidding and quotation procedures please visit the Resources section at www.iowaleague.org. Water Service Excise Tax Legislation adopted in 2018 created a new Water Service Excise Tax(WET)at a rate of six percent, which replaced the state sales and use tax on charges for water service.Cities must apply the WET to charges or fees related to the sale of water service,which can include usage charges and minimum monthly charges that may comprise a total water service charge.Local option sales tax is longer be applied to water service charges.A portion of the revenue collected will go to the state water quality infrastructure and water quality assistance funds. Additional information can be found on the Iowa Department of Revenue's website, including examples of how the WET is applied to different water service charges, at revenue.iowa.gov/taxes/tax-guidance/sales-use-excise-tax/water-service-excise-tax. Iowa League of Cities I November 2024 W-2 and 1099 Forms Cities are reminded that W-2 and 1099 forms are due to employees and vendors,respectively,by January 31 of each year.The deadline for filing W-2 forms(paper or electronic)with the Social Security Administration is also January 31.Similarly,1099 forms(paper or electronic)must be filed with the IRS by January 31 if reporting nonemployee compensation payments in Box 7. The Affordable Care Act requires employers to report the cost of coverage under an employer- sponsored group health plan on an employee's Form W-2 in Box 12 using Code DD.For cities filing fewer than 250 W-2 forms this requirement is optional. GASB 45 Governmental Accounting Standards Board Statement 45(GASB 45)requires many public entities to reflect the value of post-employment benefits(health,life,dental,etc.)that are provided to retired employees in your future audited financial statements.Your auditor has likely informed you when(and if)your city will meet the requirements for compliance with this accounting standard. GASB 54 Governmental Accounting Standards Board Statement Number 54(GASB 54)provides guidance for fund balance categories and classifications and governmental fund type definitions.In Iowa, the Annual Financial Report,sent to the State Auditor's office by December 1 of each year,has been changed due to GASB 54.This means all cities in Iowa are impacted. GASB 54 changed the way we look at cash balances,specifically reporting what cash balances, by major governmental fund type,are or are not available for public purposes.Additional information can be found at www.iowaleague.org/resource/gasb-54-fund-balance-classifications. GASB 68 Governmental Accounting Standards Board Statement Number 68(GASB 68)requires state and local government to make significant changes to how they account and report finances related to pension plans.This includes new requirements for reporting pension-related liabilities and obligations.The State Auditor's Office has created a variety of resources to help cities prepare for the requirements,which can be found at www.auditor.iowa.gov/city-resources/gasb-68-pensions. GASB 77 Governmental Accounting Standards Board Statement Number 77(GASB 77)requires governments to disclose in the notes to their financial statements the amount of revenues they promise to forgo through agreements with individuals or entities which promise to take specific actions after the agreements have been entered into that contribute to economic development or otherwise benefit the governments or the citizens of those governments. GASB 77 also requires governments to disclose the portion of revenues which the government would have otherwise received that other governments have promised to forgo through their tax abatement agreements.The Iowa Department of Management has developed resources to help cities comply with these requirements,which can be seen at dom.iowa.gov/local-govemment/gasb-77. Iowa League of Cities November 2024 Affordable Care Act Cities are reminded to be in compliance with applicable provisions of the Affordable Care Act (ACA)or they could be subject to penalties for employers and individuals.With that in mind, cities need to know how the ACA affects them and their employees and prepare for any coming changes.The various aspects of the ACA could impact cities in many different ways and cities are encouraged to consult with their health care advisors to determine the best course of action. Red Flag Rules The Fair and Accurate Credit Transactions(FACT)Act of 2003 requires utilities and government entities to implement identity theft prevention programs.These provisions are known more commonly as the Red Flags Rule.Municipal utilities,local governments and any entity that can broadly be classified as a creditor should develop and implement a written identity theft prevention program.More information regarding this policy is available at www.ftc.gov/tips-advice/business-center/privacy-and-security/red-flags-rule. Consumer Confidence Report Cities are required to complete a Consumer Confidence Report,which is designed to inform consumers of their local water quality.A copy of the report must be mailed or otherwise directly delivered to each customer annually by July 1.A city with a population less than 10,000 with no violations during the past year may use a mailing waiver.If these cities choose to use the mailing waiver: • For a city with a population less than 500,the mailing waiver must provide notice at least once per year to their customers by mail,door-to-door delivery or posting that the report is available upon request. • For a city between 500 and 10,000 in population,the mailing waiver must inform customers that the report will not be mailed.The cities must publish the report in the newspaper and make the report available upon request. Single Audit Act Cities that expend a total of$750,000 or more in federal assistance in a fiscal year must comply with the Single Audit Act,which requires a single or program-specific audit of city financial records. Training Costs The League and others offer several training events directed at city officials throughout the year. Be sure to check www.iowaleague.org throughout the year to get information about these events and the associated registration fees. Iowa League of Cities November 2024 Budget Calendar Legislation approved by the Iowa Legislature made significant changes to the city budget approval and filing process.Beginning with the FY 2025 budget,cities are required to complete a Proposed Tax Rate form and submit it to the Iowa Department of Management(IDOM)by March 5. A form is provided by the IDOM and cities are to provide information related to its current property tax rate;the total amount of dollars to be collected via its proposed property tax rate;a statement explaining the reasons for an increase in the dollars collected from the previous fiscal year(if an increase is anticipated);examples comparing a property owner's tax obligation from the current fiscal year to the next; and information on the public hearing regarding the proposed property tax rate. Then,by March 20,county auditors must compile each taxing entity's statements and mail each property owner or taxpayer within the county an individual statement that breaks out the information from each political subdivision. The new law then requires cities to hold a public hearing on the proposed property tax levies and amounts as detailed in the Proposed Property Tax Rate form.This hearing must be held at a meeting that is separate from any other council meeting-no other business may be included in this hearing and meeting.At the hearing,the council shall receive oral or written testimony from any resident or property owner of the political subdivision.After such comments,the council may decrease(but not increase)the proposed property tax amount to be included in the city's budget. Cities must provide notice of this hearing no less than 10 and no more than 20 days prior to the meeting where the hearing will be held by publishing a notice in a newspaper that is published at least once weekly and has general circulation in the city.Cities with populations 200 and fewer may meet the publication requirement by posting the notice in three public places in the city. All cities must also post an electronic link to the notice on any and all existing city websites and social media sites. Notice of the hearing shall also be posted and clearly identified on the city's internet site for public viewing beginning on the date of the newspaper publication(or posting)and shall be maintained on the city's internet site with all prior year notices and copies of the statements mailed.Additionally,if the city maintains a social media account on one or more social media applications,the public hearing notice or an electronic link to the public hearing notice shall be posted on each such account on the same day as the publication of the notice. The new law also states that a municipality shall not certify or levy in any fiscal year a property tax unless and until the estimates have been made,filed and considered.The verified proof of publication of the notice shall be filed in the office of the county auditor and preserved by the auditor. Following that part of the process,cities can proceed to the traditional annual budget approval steps that have long included a notice of the proposed city budget,public hearing and resolution to approve the city budget.Cities must file the full annual budget by April 30. The following schedule is an example for cities to follow during the budgeting process.The example assumes the city has a Thursday newspaper publication with a Tuesday deadline and the council meets on the first and third Monday.Cities should adopt a calendar that meets their specific circumstances and council meeting schedule. Iowa League of Cities November 2024 2025-2026 Budget . Report Typical Budget Timeline *Dates noted by an asterisk are statutory deadlines or requirements. M Budget Timelline WMI Date City elected officials and staff members meet to hold preliminary budget November and December discussions and schedule formal work sessions and budget adoption dates City department heads give budget and proposals to city finance officer Early January January 20 (some cities may hold Budget work session(s)with staff members and city council additional work sessions and would add those into their schedule) City finalizes budget plan to complete information required in Proposed Tax March 3 Rate form; council schedules Proposed Tax Rate public hearing City submits Proposed Tax Rate form to Iowa Department of Management March 5* Notice of hearing on Proposed Tax Rate published March 27 Public hearing on Proposed Tax Rate(state code requires this hearing to be held separately of any other city council meeting and no other business April 7 may be discussed Council receives and adopts final proposed budget and schedules public hearing (this can be done in the same evening as the Proposed Tax Rate April 7 hearing, but it must be set up as a separate, regular council meeting) Notice of hearing on adoption of final budget published April 10 Budget hearing and adoption of final budget by resolution April 21 Certified budget to county auditor and filed with IDOM April 30* Persons affected by the budget have 10 days after the date of certification May 10* to file a written protest IDOM certifies taxes back to county auditor June 15* Budget takes effect July 1* NOTICE REQUIREMENT: Notice of the hearing on the Proposed Tax Rate and of the proposed annual budget must be given not more than 20*days nor less than 10*days before the date of the hearing. DETAILED BUDGET: The detailed budget must be available for public inspection at least 10*days before the final budget hearing and 20*days before final date for certification, and is to be available at the clerk's and mayor's offices and the public library, or posted at three places designated by ordinance if there is no library. Iowa League of Cities I November 2024 FY 2025-2026 BudgetReport Q a I One-Stop Web Referencer- IOWA LEAGUE The League's website has numerous reports and resources on budget matters. QfCITIES Resources Website www.iowaleague.org Iowa League of Cities • Finance Section in Resources area • Publications on Iowa's Property Tax System, City Property Tax Levies, Property Tax Assessments, Franchise Fees, Tax Increment Finance and more Iowa Department of dom.iowa.gov/local-government/city-resources Management Iowa Department of Revenue revenue.iowa.gov/taxes/tax-guidance/sales-use-excise-tax/iowa-fuel-tax-information Fuel Tax Refund Forms Iowa Public Employees' Retirement System www.ipers.org Iowa Workforce Development workforce.iowa.gov Internal Revenue Service www.irs.gov Local Option Sales and Service revenue.iowa.gov/taxes/tax-guidance/sales-use-excise-tax/local-option-sales-tax-lost Tax Information Minimum Wage The Iowa Division of Labor I dial.iowa.gov The U.S Department of Labor I www.dol.gov Municipal Fire& Police Retirement System of Iowa www.mfprsi.org Publication Rates www.inanews.com Social Security Administration www.ssa.gov State Library of Iowa Enrich www.statelibraryofiowa.gov Iowa Funds U.S. Department of Labor Consumer Price Index I www.bls.gov/cpi Employment Cost Index I www.bls.gov/eci/home.htm Iowa League of Cities November 2024 C."D o , IOWA LEAGUE QfCITIES 500 SW 7th Street, Suite 1011 Des Moines, IA 50309 Phone (515) 244-72821 mbrsvcs@iowaleague.org I www.iowaleague.org Item Number: IP7. r 1 CITY OF IOWA CITY a � COUNCIL ACTION REPORT December 5, 2024 Press Release: City Council Listening Post announced for Dec. 7 at Pheasant Ridge Neighborhood Center Attachments: Press Release: City Council Listening Post announced for Dec. 7 at Pheasant Ridge Neighborhood Center Kellie Grace From: City of Iowa City: Do Not Reply <CityoflowaCity@public.govdelivery.com> Sent: Tuesday, December 3, 2024 11:32 AM To: Kellie Grace Subject: City Council Listening Post announced for Dec. 7 at Pheasant Ridge Neighborhood Center SHRRE Having trouble viewing this email? View it as a Web pace. City ofIOWA CITY FOR IMMEDIATE RELEASE Date: 12/03/2024 Contact: Kellie Grace, City Clerk Phone: 319-356-5041 City Council Listening Post announced for Dec. 7 at Pheasant Ridge Neighborhood Center Join Iowa City Council members at their next community listening post from 10 a.m. to 11:30 a.m. on Saturday, Dec. 7, 2024, at the Pheasant Ridge Neighborhood Center, 2651 Roberts Road. Council listening posts provide opportunities for the community to engage with City leaders on topics that are important to them in an informal setting. Two members attend each event and report back to the entire Council on what they have heard from the community during their discussion. All residents are encouraged to stop by to discuss any issue. No formal agenda or presentation is planned. RSVP to the Council Listening Post event on Facebook for updates and reminders. For additional information, questions, or suggestions on future locations for listening posts, contact City Clerk Kellie Grace at k race Iowa-cit .oru or 319-356-5041. 1 r * +1045 Questions? Contact Us CITY OF 10%VA CITY u%E5Cou YCKuttRAWRt STAY CONNECTED 2 'r- .�. _ SIL i� 7J E m m �► O a a -a o .� e-1 •- p E .a ❑ CD •�° n V v a zko L a cn y ^' � tw.- •- f V .w • Y • 3u � 4 � Item Number: IP8. 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CITY OF IOWA CITY COUNCIL ACTION REPORT December 5, 2024 Community Police Review Board: November 12 Attachments: Community Police Review Board: November 12 Draft Community Police Review Board Minutes — November 12, 2024 Call to Order: Chair Mekies called the meeting to order at 5:30 p.m. Members Present: Colette Atkins, David Schwindt, Jerri MacConnell, Melissa Jensen, Saul Mekies Members Absent: Ricky Downing, Jessica Hobart-Collis Staff Present: Staff Connie McCurdy, Legal Counsel Patrick Ford Others Present: Police Chief Dustin Liston Recommendations to City Council: • Accept CPRB Complaint#24-05 Public Report. Consent Calendar: Draft minutes from the October 8, 2024 meeting. • Correspondence from Mary McCann. Motion by Jensen, seconded by Atkins to adopt the consent calendar as presented. Motion carried 5/0. Downing and Hobart-Collis were absent. New Business: • Police policy review process: Board member Atkins mentioned preparing a schedule to review police policies. Staff McCurdy noted she had received three months worth of police use of force reports and twelve to fourteen police policies, which will be in the December meeting packet. Chief Liston noted that they are working through re-writing the policies using Lexipol. Liston suggested a review process to the Board and said that when an updated policy is sent out to the police department, it's also sent to Communications for publishing to the website. Board member Jensen asked Liston what the rotation was for policy review. Liston said that Lexipol will do the rotation of policy review on their own and has attorneys on staff that check the policies for code changes who make sure that ICPD's policies align with theirs. Vice-Chair MacConnell asked if the current policies remain effective until the new policies take effect. Liston stated that the current policies are followed until the new ones take effect and said that the police department archives their current policies because if a complaint was filed before the new policy took effect, the police would have to use the current policy. Chair Mekies asked where the policies were located, and staff McCurdy showed the members how to navigate to the polices on the website. Liston noted that the way the policies currently are set up on the website differs from how it's set up in Lexipol and plans to have the website changed once all the policies have been reviewed in Lexipol. Board member Schwindt mentioned that the Board may want to start out looking at the policies that are reviewed every year. Liston mentioned that anytime a policy is updated, it will be in the Board's meeting packet. The Board members agreed to accepting the policies when they receive them in their packets, and then add the policies to a future agenda for discussion. Liston suggested reviewing the policies at the Board's leisure because not all the policies require an in-depth discussion. CPRB November 12, 2024 Draft Page 2 Old Business: ■ Community Forum discussion: Vice-Chair MacConnell mentioned that there were more people at this forum than previous forums. Chair Mekies noted that he was late to the forum due to an emergency phone call, and he thanked the members that were in attendance for their support. Mekies stated that there were a lot of redundant questions from the public, and suggested next year the board do a PowerPoint presentation explaining what the Board's responsibilities are. Mekies noted the police are sometimes contacted for situations that have little to do with police action, which the public is not aware of. Mekies mentioned that it would be enlightening for the public to learn more about the responsibilities that are put on the police and the Board. Mekies volunteered to draft the forum summary report. Board member Atkins noted she was pleased at the number of people who came to the forum and mentioned to make the expectations of the Board clearer for the public next time. Atkins felt there was a lot of conversation going back and forth between the Board and the public. Atkins also noted that the Board receives the comments and questions from the public and should let them know that the Board will discuss at a future meeting. MacConnell suggested handing out a bulletin to the public as they walk in, which tells them how the forum works. Board member Schwindt suggested setting a standard at the beginning of the forum letting the public know that questions will be received by the Board, and if the question needs to be discussed by the Board, it will be put on a future agenda. Schwindt also noted a person could attend the monthly meeting to hear the answer. Public Comment of Items not on the Agenda: • Mary McCann noted that the Iowa City police blotter does not have the same information as the JECC. McCann will be updating the information so the police blotter and JECC are the same. Board Information: • Vice-Chair MacConnell stated that she was not sure of the meaning of"intensity" and "intentionality" that was mentioned by members in a previous meeting. MacConnell would like to discuss these terms, so the Board members understand the definitions of them. • MacConnell wants to discuss the last line of the Executive Session verbiage: "Communications not required by law, rule or procedure that are made to a government body or to any of its employees by identified persons outside of government, to the extent that the government body receiving those communications from such persons outside of government could reasonably believe that those persons would be discouraged from making them to that government body if they were available for general public examination." • MacConnell wants to discuss the meaning of commissioner and board member and what the difference is between the two. Staff Information: 0 None. CPRB November 12, 2024 Draft Page 3 Tentative Meeting Schedule and Future Agendas subiect to change): December 10, 2024, 5:30 p.m. — Helling Conference Room • January 14, 2025, 5:30 p.m. — Helling Conference Room • February 11, 2025, 5:30 p.m. — Helling Conference Room • March 11, 2025, 5:30 p.m. — Helling Conference Room Executive Session: Motion by Jensen, seconded by Atkins, to adjourn to Executive Session based on Section 21.5(1)(a) of the Code of Iowa to review or discuss records which are required or authorized by state or federal law to be kept confidential or to be kept confidential as a condition for that government body's possession or continued receipt of federal funds, and 22.7(11) personal information in confidential personnel records of public bodies including but not limited to cities, boards of supervisors and school districts, and 22-7(5) police officer investigative reports, except where disclosure is authorized elsewhere in the Code; and 22.7(18) Communications not required by law, rule or procedure that are made to a government body or to any of its employees by identified persons outside of government, to the extent that the government body receiving those communications from such persons outside of government could reasonably believe that those persons would be discouraged from making them to that government body if they were available for general public examination. Motion carried 5/0. Downing and Hobart-Collis were absent. Open session adjourned: 6:23 p.m. Return to Open Session: Returned to open session: 7:12 p.m. Motion by Jensen, seconded by Atkins to accept CPRB public report for Complaint 24-05 as amended and forward to City Council. Motion carried 5/0. Downing and Hobart-Collis were absent. Adjournment: Motion by Atkins, seconded by Jensen to adjourn. Motion carried 5/0. Downing and Hobart-Collis were absent. Meeting adjourned: 7:14 p.m. a N N E N x x C7 'ZT Q+ O N N G YC' yC' YC it j I C iC O N G CC O •; � N o NN N O O >C O O yG U o N O 7 N O O O O h"] N ff .H. •O � L to in oo ao L O O O O O O O O O o o " ea E E s. o ca u o - -1ITR � tivsdfxOF� AvlUd COMMUNITY POLICE REVIEW BOARD A Board of the City of Iowa City 410 East Washington Street Iowa City, IA 52240-1826 (319) 356-5041 November 12, 2024 To: City Council Complainant NOV 12 2024 City Manager Chief of Police City Clerk Officer(s) involved in complaint Iowa City, Iowa From: Community Police Review Board Re: Investigation of CPRB Complaint#24-05 This is the Report of the Community Police Review Board's (the "Board") review of the investigation of Complaint CPRB#24-05 (the "Complaint"). BOARD'S RESPONSIBILITY: Under the City Code of the City of Iowa City, the Board's responsibilities are as follows: 1. The Board forwards all complaints to the Police Chief, who completes an investigation. (Iowa City Code Section 8-8-7(A).) 2. When the Board receives the Police Chiefs report, the Board must select one or more of the following levels of review, in accordance with Iowa City Code Section 8-8-7(B)(1): a. On the record with no additional investigation. b. Interview/meet with complainant. c. Interview/meet with named officer(s) and other officers. d. Request additional investigation by the police chief, or request police assistance in the board's own investigation. e. Perform its own investigation with the authority to subpoena witnesses. f. Hire independent investigators. 3. In reviewing the Police Chiefs report, the Board must apply a "reasonable basis" standard of review. This means that the Board must give deference to the Police Chiefs report, because of the Police Chiefs professional expertise. (Iowa City Code Section 8- 8-7(13)(2)).) 4. According to Iowa City Code Section 8-8-7(B)(2), the Board can recommend that the Police Chief reverse or modify the Chiefs findings only if: a. The findings are not supported by substantial evidence; or b. The findings are unreasonable, arbitrary, or capricious; or F I LEICI NOV 1 51; 2024 City Clerk c. The findings are contrary to a police department policy or practkNbPA'y1W&ral, state, or local law. 5. When the Board has completed its review of the Police Chiefs report, the Board issues a public report to the city council. The public report must include: (1) detailed findings of fact; and (2) a clearly articulated conclusion explaining why and the extent to which the complaint is either"sustained" or"not sustained ". (Iowa City Code Section 8-8-7(B)(3)).) 6. Even if the Board finds that the complaint is sustained, the Board has no authority to discipline the officer involved. BOARD'S PROCEDURE: The Complaint was initiated by the Complainant on May 28th, 2024. As required by Section 8-8-5(B) of the City Code, the Complaint was referred to the Chief of Police for investigation. The Chiefs Report was filed with the City Clerk on August 21st, 2024. As per Section 8-8-6(D) of the City Code, the Complainant was given the opportunity to respond to the Chiefs report. The Complainant did not further submit a response to the Chiefs report. The Board met to consider the Report on September 10, October 8, and November 12, 2024. The Board voted on September 10th, 2024 to apply the following Level of Review to the Chiefs Report: On the record with no additional investigation, pursuant to Iowa City Code Section 8-8-7 (B)(1)(a). Prior to the September 10th, 2024 meeting, the Board had the opportunity to review the complaint, the Police Chiefs report, and to watch and listen to body-worn camera footage showing the interaction between the officers and the complainant. FINDINGS OF FACT: On May 23rd, 2024 investigators executed a search warrant pursuant to a fraud investigation, the search warrant occurred at Complainant's home; within the same investigation, another search warrant took place at an additional address on the same date. During the search warrant at the Complainant's home, multiple documents and financial paperwork were seized by officers. While the search and seizure was actively pursued, the Complainant and the complainant's daughter remained in the living room area of the home with officers, as viewed on the body-cam footage, the two individuals remained in conversation with the police officers on- site. At the end of the search and seizure, it is observed on the body-cam footage the police officers placed items not seized back in the home and took all seized items with them while exiting the property. The Complainant and their daughter remained at the home. COMPLAINANT'S ALLEGATION#1 —Violation of 320.5.9, Conduct. Within the complainant's report, they indicated that their car title has been missing since the search and seizure on their property. This is an alleged violation of Iowa City Police Department policy 320.5.9 (generally regulating officer conduct), which reads, in part, as follows: F1 LE ' 1 ,OV � 2 2024 City Clerk Iowa City, Iowa (a) Failure of any member to promptly and fully report activities on his/her part or the part of any other member where such activities resulted in contact with any other law enforcement agency or that may result in criminal prosecution or discipline under this policy. (b) Unreasonable force to a person encountered or a person under arrest. (c) Exceeding lawful peace officer powers by unreasonable, unlawful or excessive conduct. (d) Unauthorized or unlawful fighting, threatening or attempting to inflict unlawful bodily harm on another. (e) Engaging in horseplay that reasonably could result in injury or property damage. (f) Discourteous, disrespectful or discriminatory treatment of any member of the public or any member of this department or the City. (g) Use of obscene, indecent, or derogatory language while on-duty or in uniform. (h) Criminal, dishonest or disgraceful conduct, whether on- or off-duty, that adversely affects the member's relationship with this department. (i) Unauthorized possession of, loss of, or damage to department property or the property of others, or endangering it through carelessness or maliciousness. Q) Attempted or actual theft of department property; misappropriation or misuse of public funds, property, personnel or the services or property of others; unauthorized removal or possession of department property or the property of another person. (k)Activity that is incompatible with a member's conditions of employment or appointment as established by law or that violates a provision of any collective bargaining agreement or contract, including fraud in securing the appointment or hire. (1) Initiating any civil action for recovery of any damages or injuries incurred in the course and scope of employment or appointment without first notifying the Chief of Police of such action. (m) Any other on- or off-duty conduct which any member knows or reasonably should know is unbecoming a member of this department, is contrary to good order, efficiency or morale, or tends to reflect unfavorably upon this department or its members. Chief's conclusion: Not sustained Board's conclusion: Not sustained Basis for the Board's conclusion: Upon the Board's review of the body-cam footage, it is observed that all documents removed were placed in a central location for review by officers rFILrD N0V .1 2 2024 City Clevk and listed on the appropriate Property Control Form. After viewing all body-cam footdgk'a City, Iowa available to the Board, the title was observed, via the video, to have been left in the home. Complainant's allegation is not sustained. COMPLAINANT'S ALLEGATION #2—Violation of General Order 00-0i, Search &Seizure. The complaint also alleges that the officers violated Iowa City Police Department General Order 00-01 (regarding search and seizure of property), which reads as follows: It is the policy of this department to conduct searches and seizures that are both legal and thorough. Such searches are to be conducted in strict observance of the Constitutional and statutory rights of persons being searched and with due regard for the safety of the officers involved. All seizures shall comply with all relevant state and federal Constitutional provisions and statutes governing the seizure of persons or property. Full policy can be found at https:/Iwww.iowa- city.orgNVebLink/ElectronicFile.aspx?dbid=0&docid=1489984& Chief's conclusion: Not sustained Board's conclusion: Not sustained Basis for the Board's conclusion: The officers had probable cause to secure the warrant (which was issued by a judge), and the officers complied with all state and federal constitutional and statutory requirement for lawful search and seizure of property. Upon review of the Chiefs report and the indicated measures taken to obtain the warrant for the complainant's property, the complainant's allegation is not sustained. COMMENTS: An additional allegation was included in the Chiefs report: General Order 99-08, Body Worn Cameras & In-Car Recorders. The Board discussed during their September 10, 2024 meeting that the Complainant did not directly include this in their complaint report, thus the Board does not support that this was an allegation from the complainant and should not be documented as such. The Board understands, however, that General Order 99-08 will be amended in response to the circumstances involved in this complaint. Item Number: IP10. r 1 CITY OF IOWA CITY a Qa, COUNCIL ACTION REPORT December 5, 2024 Human Rights Commission: November 26 Attachments: Human Rights Commission November 26 Draft Minutes Human Rights Commission November 26, 2024 Emma J. Harvat Hall Commissioners present: Roger Lusala, Doug Kollasch, Mark Pries,Vianna Qadoura, Kelsey Paul Shantz, Idriss Abdullahi, Emily Harkin. Commissioners present via Zoom: None. Commissioners absent:Jahnavi Pandya, Elizabeth Mendez Shannon. Staff present: Stefanie Bowers. Recommendation to City Council: None. Meeting called to order: 5:34 PM. Native American Land Acknowledgement: Kollasch read the Land Acknowledgement. Public comment of items not on the agenda: None. Approval of meeting minutes of October 22,2024& November 4,2024: Pries moved;the motion was seconded by Lusala. Motion passed 7-0. Updates on Outreach and Engagement by the Police Department:Staff provided a handout from the new Community Outreach Sergeant Eric Nieland. Funding request: Pries moved and Lusala seconded, to provide funding to the Johnson County United Nations Association for its program, Human Rights: Engagement into Action being held on Tuesday, December 10 at 6PM in Meeting Room A at the Iowa City Public Library. The event will engage seven of the former"Night of 1000 Dinners" honorary NGOs in a set of roundtable discussions about the state of human rights in Johnson County, specifically in the areas that they work in. Strategic Plan: Commissioners spoke about meeting in December in order to go into the New Year with a clear plan. Paul Shantz asked if there will be new commission members joining at the start of the new year. Staff answered there will be one new commissioner. Lusala asked when the new member would start with the commission and staff answered their term starts the first of January. It was agreed that commissioners would read the Strategic Plan document on their own time and come prepared to discuss it at their next meeting. A motion was announced to put the strategic plan on the agenda for a special December meeting date. Paul Shantz suggested to use the December meeting to discuss the material but wait until January to vote to approve the plan. It was agreed this matter could be included in next meeting's discussion. 1 Racial Equity and Social Justice Grant (RESJ): Kollasch started the discussion by asking commissioners if they had any questions on the reports submitted to the commission. Lusala shared the idea of possibly inviting members who submit reports to the meetings in order to ask questions and discuss their work. Kollasch shared that he would like to add into the criteria of the grant that the recipients would present a progress report to the commission. Paul Shantz brought up a previous idea of assigning a commissioner to each grant recipient in order to maintain communication and a positive relationship with the commission. Kollasch brought up the fact that City Council had concerns about grants and the process that boards and commission use to recommend awardees. Kollasch asked staff if there were any directives that came from the discussion that would be important for the commission to know. Staff answered that the focus wasn't necessarily on the racial equity and social justice grant. The main concern seems to come from who has received funding previously. Staff also mentioned making sure those applying for the grant are applying to the right grant or if they should be directed to other city funding opportunities. Pries asked staff if all grants are approved City Council regardless of the board or commission. Staff answered that all grants that come from a city board or commission go to City Council for approval. The commission discussed whether the City Council reviews who has or hasn't received a grant previously from the city. RESJ Grant Review The commission reviewed the updated RESJ Grant application and rubric with staff. • Staff read the updated Purpose section of the grant and prefaced that the language used comes from the Human Rights Ordinance along with the City Council's strategic plan. Staff also explained that the grant period would likely start sometime in February and questioned if the commission would like to give less time than the four weeks currently allocated for applications to be submitted. • Commissioners discussed the timeline and clarified that with a potential release date of February 1s' submissions would be ready for review by March 15Y which would keep the commission on a similar timeline they have previously operated on. Lusala suggested allowing three weeks for submissions due to the fact the starting date for applications is later than usual and would allow the commission to review applications sooner. Paul Shantz confirmed with staff the timeline and staff noted the commission is about one month behind their usual release date on the grant. However, if the applications are opened by February 1s'and reviewed in March it would be pretty much the same timeline. Paul Shantz suggested keeping submissions open for a full four weeks to allow all applicants ample time. Kollasch agreed the four weeks may be best for applicants. Staff noted a decision could be made later. • Project Requirements were discussed next with staff noting the language of this section comes from the Human Rights Ordinance and/or the City Council's strategic plan. Points 1, 2, 5 and 6 of this section come from the City Council's strategic plan, 3 and 4 come from the Human Rights Ordinance. 2 • Project Eligibility Criteria was reviewed, and staff confirmed the project duration dates are not at all flexible. Lusala asked for clarification that it can be a repeat organization as long as their project is new. Staff confirmed,yes. Kollasch asked if there is a way to define a "new" project. Lusala offered that although the mission may be the same for an organization the commission should look at the target of the project being proposed to consider if it is "new" compared to their last grant submission. Staff confirmed the main purpose of this statement is to avoid giving the same organizations money for the same project(s) year after year. Paul Shantz suggested defining what the commission's definition of a "project" is and using that as a chance to disclaim they would like the project to be a new effort that contributes something beneficial to the community. Staff suggested linking people to previously funded projects to use as an example. Qadoura asked staff if there is a list of previous recipients of the grant. Staff confirmed,yes. Lusala clarified that the commissioners will receive the list in a later email when it is time to review applications. Lusala also clarified that the commission will be responsible for reviewing each application and accepting or denying applicants,which is when previous recipients come into consideration. Staff confirmed that the city is requiring staff to provide a list of previous recipients to board and commissions offering grant opportunities. • Ineligible Expenses, Paul Shantz asked Staff if it may be necessary to provide an explanation for "operational costs" listed under ineligible expenses due to confusion in the past. Staff confirmed a previous description can be included. Paul Shantz also requested clarification for"consultant fees" listed under ineligible expenses. Staff agreed to provide clarification. Kollasch requested including specifics in the clarification on the application. • P2. Next,Applicant Eligibility was reviewed. Staff noted a new ineligibility requirement"Applicants cannot be for profit businesses..." Kollasch brought up that some organizations have concerns regarding budget restrictions. Kollasch read from an email from CommUnity that noted while they have a large annual budget a lot of the money is restricted to specific services and does not properly reflect their operating budget for new projects. Lusala shared his experiences working with non-profits and the reality that a majority of annual budgets are restricted to one particular service or resource. Qadoura agreed it is hard to draw a line and recommended considering the organization itself. Paul Shantz proposed removing the limit and writing "The annual budget of requesting organizations will be reviewed." Pries clarified that they will still be asking for the annual budget total in the application. Staff confirmed,yes. Paul Shantz suggested requiring that question to be answered. Staff confirmed it is required. Lusala suggested requesting an organization's 990 in order to get a better picture of the organization's entire budget. Paul Shantz questioned the wording of the first bullet point"The organization must be physically located in Iowa City." Paul Shantz suggested an alternative requirement that would read "The project must serve Iowa City residents primarily." Staff was unsure of the City's stance on the matter but shared that there is a strong preference for the organizations to be Iowa City based. Staff also noted that there would need to be a way to quantify the amount of people being helped within Iowa City. Qadoura shared her concerns for organizations operating out of Coralville but benefiting Iowa City residents as well.The alternative would be to change the wording that allows the commissioners to decide if Iowa City residents benefit from the organization enough to be considered. Harkin suggested changing the wording to "The project must only serve Iowa City residents." Lusala brought up the fact that this would be hard to track and may discriminate to those living outside of Iowa City. Staff clarified this rule comes 3 more for the selection process rather than the applicants themselves. With all things considered it was agreed to leave the rule as is for the time being. • Funding Restrictions was discussed with staff explaining that the$10,000 suggested maximum would allow for more organizations to be funded, however the decision will ultimately be up to the commission. Kollasch and Pries stated they agree with the$10,000. Paul Shantz shared her reservations on the limit stating organizations may then be limited to what they can accomplish. Kollasch recognized Paul Shantz concerns and offered a possible limit of fifteen to twenty thousand dollars. Kollasch also explained that a new goal is to spread the funding out more across the city to more groups. Paul Shantz responded that her understanding was a focus on diversification rather than reach. Lusala shared that he was in favor of reaching more people/organizations rather than allocating a majority of funds between fewer organizations. Kollasch confirmed with staff that this can be changed in later years if the commission feels they would like to change the maximum amount to be allocated to each organization. Lusala offered the idea of$12,500 as a maximum amount. Qadoura asked about including a clause that states if the organization has previously received this grant, they cannot receive more than X amount this time around. Qadoura's question will be addressed in the next bullet point. Staff informed the commission that some organizations do not use the full amount of the grant they receive and have to return the remaining balance to the city, therefore limiting the maximum amount to be received may help with this concern. Staff suggested settling on $20,000 as the maximum amount to be received. Commissioners agreed. Paul Shantz requested to include in the presentation given to new applicants an average amount typically granted so there is an understanding that receiving the full amount ($20,000) is exceptional. The next point regarding previous recipients of the grant receiving a lesser amount was discussed. Kollasch shared he fully supports this point.The commission decided the maximum to be received by previous grant recipients (in the last two years) is no more than$5,000. • Reviews and Funding Allocation. All were in agreement and understanding for this section. • Grant Responsibilities were discussed. Pries clarified that the grant would operate on a reimbursement basis. Staff reiterated this will be a new approach to allocating grant funds. Paul Shantz and commissioners agreed the new reimbursement approach is favored. Staff explained the next point would require grant recipients to submit three quarterly reports to the commission along with a final report. Pries asked if the report would be solely up to the recipient or if there is a form/template that can be provided. Staff confirmed a template can be created and provided if need be. Commissioners agreed that a quarterly report could include video and photos. • Application: Staff read through the application. Commissioners had no changes. • Rubric: Lusala asked if applicants will have access to the rubric. Staff confirmed,yes. Paul Shantz asked about reworking the section of project outcome expectations to make it more accessible and to create meaningful feedback. Staff will reword this part of the rubric. 4 Qadoura asked how commissioners are to know if applicants have a history of implementing projects well (Scoring Criteria#6). Lusala answered they will receive a list of previous recipients. Pries agreed that is not enough information for commissioners to understand and score organizations off. Paul Shantz suggested encouraging applicants to include as much detail as possible when it comes to touching on topics the commission is clearly looking for. Lusala commented it may be the commissions responsibility to check the history of applicants. Staff suggested changing the wording of the criteria and adding a question that addresses their ability to follow through with the project. Commissioners agreed to staff's suggestion. Abdullahi touched on the third point of the criteria regarding the project's benefit to the community.Abdullahi suggested adding into the application how they will measure the success/impact of their project. Staff stated a similar question was used in a previous application and can be included in the new one as well. Commissioners agreed to the change. Kollasch stated question 5 on the application may help commissioners measure the impact and goal for each project. Paul Shantz asked staff if there could be character limits for each text section to keep answers on topic and meaningful. Staff offered to check with other departments about lowest and highest character counts for other grants to come up with a suggested limit. A motion to approve the Racial Equity and Social Justice Grant for fiscal year 2025 as discussed and edited was moved by Lusala and seconded by Qadooura. Motion carried 7-0. December Meeting Date: Kollasch suggested Thursday, December 12'for a special meeting on the strategic plan. Commissioners agreed this time would work to meet. Announcements of Commissioners: Lusala: Wished all a happy time with family. Abdullahi: Wished those celebrating a Happy Thanksgiving and all commissioner to enjoy the holiday. Paul Shantz: Shared news that a member of the Peace in Our Cities network she works with has successfully launched an office of violence prevention in Bristol, UK. Kollasch: Shared he has been reappointed for a full term and also accepted the proclamation for Transgender Day of Remembrance at last week's City Council meeting. Kollasch wished all a happy holiday and to enjoy the time with family. Harkin:Thanked the commissioners for welcoming her to her first commission meeting. Pries: Encouraged commissioners to visit the Cedar Rapids Art Museum to view an exhibit titled A More Perfect Union:Political Art from the Collection. Pries also spoke on his work with Interfaith Alliance and the film on Christian Nationalism. 5 Qadoura: Shared that the Iowa City Mosque has welcomed a Christian Homeschooling Co-Op group. Also, the Coralville Food Pantry will host a community meal on December 6'"at S:OOpm. She ended with asking commissioners to keep those suffering due to war in mind. Announcements of staff:Staff announced there will be a third-floor remodel so the Equity and Human Rights Office will be relocating to the Robert A. Lee Recreational Center Meeting Room A. Adjourned: 7:32 pm. 6 N N N d a a a a a a a d a M x N DC � A o � U W N Ate' DC DC DC DC DC DC N N ee W xi d' M DC DC DC DC DC DC DC N x x x x x x x c N II II II N :e s