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Home My WebLink About2025-06-12 Info PacketCity Council Information Packet CITY OF IOWA CITY Council Tentative Meeting Schedule IP1. City Council Tentative Meeting Schedule June 17 Work Session IP2. Work Session Agenda June 12, 2025 IP3. Memo from Assistant City Manager: Local Option Sales Tax Discussion IP4. Pending City Council Work Session Topics Miscellaneous IP5. Memo from City Manager's Office: Housing Information IP6. Quarterly Investment Report: January 1, 2025 to March 31, 2025 IP7. Civil Service Entrance Examination - Customer Service Representative - Revenue IP8. Civil Service Entrance Examination - Electrician - Traffic Engineering Draft Minutes IP9. Public Art Advisory Committee: June 5 June 12, 2025 City of Iowa City Item Number: IP1. CITY OF IOWA CITY COUNCIL ACTION REPORT June 12, 2025 City Council Tentative Meeting Schedule Attachments: Council Tentative Meeting Schedule r City Council Tentative Meeting Schedule Subject to change CITY OF IOWA CITY June 12, 2025 Date Time Mee£inJ1 Location 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 Monday, July 21, 2025 4:30 PM Joint Entities Meeting City of Coralville TBD 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 Monday, October 20, 2025 4:30 PM Joint Entities Meeting City Hall, Emma J. Harvat Hall 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 June 12, 2025 Work Session Agenda Attachments: June 17 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 Work Session June 17, 2025 - 4:00 PM Emma J. Harvat Hall 410 E. Washington Street www.icgov.org � r A CITY OF IOWA CITY 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://citychanne[4.com/live • https://www.youtube.com/user/citychannel4/live • https://facebook.com/CityoflowaCity 1. Joint meeting with the Community Police Review Board 2. Clarification of Agenda Items 3. Information Packet Discussion [June 5, June 12] 4. University of Iowa Student Government (USG) Updates 5. Local Option Sales Tax Presentation and Discussion [Continued from June 31 6. Council updates on assigned boards, commissions, and committees Item Number: IP3. a CITY OF IOWA CITY "QR T-4 COUNCIL ACTION REPORT June 12, 2025 Memo from Assistant City Manager: Local Option Sales Tax Discussion Attachments: Memo from Assistant City Manager - Local Option Sales Tax Discussion CITY OF I O WA CITY .�.�� MEMORANDUM Date: June 12, 2025 To: Mayor and City Council From: Kirk Lehmann, Assistant City Manager Re: Local Option Sales Tax Discussion Introduction During the June 3, 2025 work session City Council expressed interest in pursuing the addition of a 1 % Local Option Sales Tax (LOST) to an upcoming election ballot. Draft ballot language reflecting that discussion is included as Attachment 1. The purpose of this memo is to outline key decisions Council must make in order to place a LOST measure on a future election ballot. Background In Iowa, local governments may implement a 1 % LOST on certain sales and services following voter approval. Many expenditures of daily life are exempt from LOST (see Attachment 2). However, most other sales or services, including ticket sales for University of Iowa athletic events and concession stands operated by third party vendors, must pay any locally adopted LOST. For Iowa City to adopt LOST, a simple majority of voters must approve a ballot measure at a regular election or at one of the special election dates allowed by State Code. Revenue generated from LOST must be used for purposes specified in the ballot measure, which must include 50% to be used for property tax relief. The remaining amount may be used for other community priorities. The process may be initiated by a petition of electors or by City Council adopting a resolution with specific ballot language. Financial Impact Staff estimates implementing a 1% LOST could generate $8-10 million annually in new revenue, depending on economic conditions and consumer spending. Discussion To move forward with LOST, Council is asked to provide direction on the following questions: 1. Election Date: On what date would Council like to place the LOST measure before voters? Note: The next regular election is November 4, 2025. 2. Sunset Clause: Should the LOST initiative include a sunset provision? If so, for how many years should the tax remain in effect following its implementation? 3. Use of Revenues: What revisions, if any, would Council like to make to the proposed language describing how LOST revenues will be used? 4. Allocation of Funds: What changes, if any, would Council like to make to the proposed percentage breakdown of revenues allocated among the specified uses? Draft ballot language is meant to serve as a starting point and will be updated based on Council direction. At the Mayor's invitation, the Affordable Housing Coalition also prepared draft ballot language, included as Attachment 3. Once Council reaches consensus on the questions above, staff will prepare a resolution with final ballot language for Council consideration at an upcoming regular meeting. The resolution should be adopted by August 5 to ensure the LOST measure is included on the regular November 4 election ballot. Attachment 1 Draft Ballot Language "SHALL THE FOLLOWING PUBLIC MEASURE BE ADOPTED?" Summary: To authorize imposition of a local option sales and services tax in the City of Iowa City, Iowa at the rate of one percent (1 %) to be effective starting July 1, 2026. A local option sales and services tax shall be imposed in the City of Iowa City, Iowa at the rate of one percent (1%) to be effective from July 1, 2026. Revenues from the sales and services tax shall be allocated as follows: 50% of such revenues to be allocated for property tax relief; and the specific purpose(s) for which the revenues shall otherwise be expended is: 20% of such revenues shall be used for programs and initiatives that increase housing supply and access, including affordable housing or other housing projects designated by City Council. 20% of such revenues shall be used for maintenance and construction of streets, sidewalks, trails, parks, and public facilities that support arts, culture, learning, recreation, and public safety as designated by City Council. 10% of such revenues shall be used for community partnerships, including, but not limited to, partnerships that support intergovernmental, economic development, arts and culture, and social service priorities as designated by City Council. Attachment 2 Iowa Department of Revenue Sales & Use Tax Guide Taxable or Exempt Source: Vid-e Date Downloaded: June 9, 2025 Unless otherwise noted, the tax rate for all taxable items shown below is: • 6% state sales tax, plus ■ 1 % local option sales tax, if applicable 911 Surcharge Exempt: ■ The surcharge for "enhanced" 911 emergency telephone service The surcharge can be no more than $1 per month per telephone access line. Advertising Exempt: • Envelopes used primarily for advertising ■ Advertising and promotional materials, such as: ■ Seed catalogs • Brochures • Leaflets • Return envelopes, and • Other similar materials which are stored in Iowa before being sent for use out- of-state Agriculture See Farmers Guide to Iowa Taxes Aircraft Taxable: ■ Tax collected by the Iowa Department of Transportation at the time of registration in Iowa The purchase of an aircraft does not qualifyfor exemption as a "casual sale" Tax Rate • 6% state use tax • NO local option sales tax Exempt: ■ If registered out-of-state ■ Exempt only to aircraft used in Interstate Federal Aviation Administration certified air carrier operations: • Sale or rental of aircraft (scheduled operation only) • Exempt for all aircraft: • Sale or rental of any tangible personal property permanently affixed to any aircraft that is a component part of an aircraft ■ Rendering, furnishing, or performing of services in connection with repair, remodeling, or maintenance of aircraft • For purposes of these exemptions, "aircraft" means the same as defined in Code_s.e;ctiion 328.1, which defines it as "any contrivance now known or later invented which is designed and used for navigation and flight in the air, and made to transport people or property." Taxable: = ATVs, including off -road vehicles and off -road motorcycles, if delivery is taken in Iowa or if purchased out-of-state for use in Iowa. ATVs do not qualify for exemption as a "casual sale" If sold by an individual, the county will collect the tax upon registration. Exempt: ATVs used primarily in agricultural production. Prior to 7-1-15, ATVs were required to be directly and primarily used in agricultural production to qualify for exemption. American Indians See the Government Entities section below for additional information regarding sales to tribal governments. Taxable: • Purchases by persons who are not American Indians where delivery takes place on the settlement or reservation and • Purchases by American Indians where delivery occurs off the settlement or reservation Exempt: • Sales to American Indians where delivery occurs on the American Indian settlement or reservation Amusement Tickets or Admimions Taxable: ■ Places of amusement ■ Fairs • Athletic events • Amusement devices • Games of skill* • Games of chance* • Raffles* • Bingo games* • Card game tournaments* • Commercial amusement enterprises • Fees for participation in any game or other form of amusement • Musical devices • Weighing machines • Shooting galleries • Billiard and pool tables • Bowling alleys • Pinball machines • SLot-operated devices • Vending machines of all types • Devices or systems where prizes are awarded * A state gambling license may be required. Call the Iowa Department of Inspections and Appeals at 515-281-6848. Exempt: • Athletic events of elementary and secondary schools • State and county fairs ■ Entry fees if the admission charge is subject to tax Athletic Fees 1 Facilities Taxable: • Private club fees paid for participating in athletic sports, fitness centers, or commercial recreation - this generally includes any special assessments ■ Fees paid to cities and counties for participating in any athletic sport. gget Sales Taxable if: ■ Delivery is taken in Iowa • Purchased out-of-state for use in Iowa A boat does not qualify for exemption as a "casual sale! If sold by an individual, the county will collect the tax upon registration. Casual Sales Exempt: • This exemption does not apply to vehicles subject to registration, ATVs, off -road motorcycles, off -road utility vehicles, aircraft, orwatercraft. The Casual Sale Exemption Applies If: 1. It is a sale of a nonrecurring nature, and 2. The seller at the time of the sale is not engaged in selling goods or taxable services for profit; or if the seller is so engaged, the casual sale must be outside the regular course of business Nonrecurring Two separate selling events outside the regular course of business within a 12-month period Recurring Three separate selling events within a 12-month period are considered recurring. Tax applies beginning with the third separate selling event. When a sale event is planned and occurs consistently over a span of years, the sale is recurring and not casual, even though only one sale event occurs each year. Outside the Regular Course of Business Sales of capital assets such as equipment, machinery, and furnishings are usually considered to be outside the regular course of business, and the casual sale exemption applies as long as the sales are nonrecurring. Selling Property Used in the Course of Business In addition to the casual sales exemption provisions mentioned above, when a retailer sells all or substantially all of the tangible personal property held or used in the course of business, the casual sale exemption also applies when the following circumstances exist: • The trade or business is transferred to another person(s), and • The transferee(s) engages in a similar trade or business. Services Performed by Students The casual sale exemption also applies when the following circumstances exist: • The owner of the business is the only person performing the services; and • The owner of the business is a full-time student; and • Total gross receipts from the services do not exceed $5,000 for a calendar year. Communication Service Taxable: ■ Sale of intrastate communication • Prepaid telephone calling cards and prepaid authorization numbers ■ Intrastate fax services • Services of transmitting messages, night letters, day letters, and all other messages of similar nature ■ Sales from coin -operated telephones • Telegrams and similar charges • Charges for directory assistance if the service is intrastate Exempt: Sale of interstate communication Computers and Software Taxable: ■ Computer hardware (see also exempt section below) • Software delivered in physical or digital form • Services arising from or related to installing, maintaining, servicing, repairing, operating, upgrading, or enhancing specified digital products • Software as a service Exempt: ■ Computers and computer peripherals used by a manufacturer in certain exempt manners described in Iowa Code section 423.3(47) See Taxsaui-da—ar_e-a 5_Lt_ceiates tq computers Conditional Sales 1 installment Sales A conditional sales contract allows the purchaser to use the item purchased, but title to the property does not pass to the buyer until a condition has been met— usually full payment of the purchase price. Therefore, an installment sale is a conditional sales contract. Taxable: The full contract price at the time the purchaser takes delivery of the property Exempt: • Interest and finance charges when separately stated and reasonable in amount • The periodic payments made under the contract Conference and Banquet Rooms Exempt: ■ The rental of conference rooms and banquet rooms are exempt from state tax, local option tax, and local hotel and motel tax. Con-gruction Contractors_ See Iowa Contractors Guide Q12nstruction Caantracts with Designated -Exempt Entities See Ca_rl$t�ucjor�or�racts.snt�il� Designated Exempt br�tities Containers Exempt when: (1) sold to retailers or manufacturers for the purpose of packaging or facilitating the transportation of tangible personal property sold at retail or to further transfer the property to the customer in association with the maintenance or repair of fabric or clothing, or (2) sold to be used directly and primarily in agricultural, livestock, or dairy production: • Containers • Labels • Cartons • Pallets • Packing cases • Wrapping paper • Twine • Bags • Bottles • Shipping cases, and • Other similar articles Credit Card Fees A credit card processing or transaction fee is subject to tax when charged on taxable sales. For further discussion, see the "sales price" section above. Coupons, Discounts, Rebates.-Q-QmpDn 6 nd Gift Certificates/Cards Taxable: • Tax is due at the time the coupon or certificate is redeemed by the customer Exempt: • Coupon books and gift certificates are exempt from tax at the time they are purchased Discount means "to buy at a reduction" Iowa sales tax applies to the reduced price paid by the customer. Certain retailers bill their customers on a gross and net basis, with the difference considered to be a discount for payment purposes. When a customer does not resolve the bill within the net payment period, tax applies on the gross charge shown on the billing. A rebate is a return of part of an amount paid for a product. Manufacturers' rebates are not discounts and cannot be used to reduce the gross receipts received from a sale or reduce the purchase price of a product. This rule applies even though the rebate is used by the seller to reduce the selling price or is used by the purchaser as a down payment. The rebate is considered a transaction between the manufacturer and the purchaser. Iowa sales tax applies to the amount paid by the purchaser to the seller. That amount cannot be reduced by the amount of the rebate before sales tax is applied. In most situations, sales tax will be charged on the full price of the item purchased. Finance Charges Taxable: • Finance charges included in the selling price as a condition of sale Exempt: • Interest or other types of charges that result from selling on creditor under installment contracts if separately stated and reasonable in amount Florists Taxable: • Orders taken by an Iowa florist and communicated to a second florist in Iowa The "sending florist" is responsible for collecting the tax. Exempt: • Orders taken by an Iowa florist and communicated to a second florist located outside Iowa for delivery to a point outside Iowa Food For a full listing, see Ipma 5_les Tax on EQ-d. [bttps:/lreven ue. io we. goyItaxesltax-guidencelsa(es-use-excise-taxliowa-sales-tax-food ] Taxable (General Listing): • Alcoholic beverages • Candy, candy -coated items, and candy products, including gum ■ Certain beverages, including those with 50% or less fruit or vegetable juice ■ Cosmetics • Dietary supplements • Chewing gum • Garden seeds and plants used to produce food unless (not produce from seeds and plants grown for resale) • Health aids such as aspirin, cough drops or syrups, and other cold remedies, antacids, and all patent medicines or other products used as health aids • Household aids • Paper products • Pet foods and supplies • Soaps and detergents • Tobacco products • Toiletry articles ■ Tonics ■ Vitamins, minerals, and dietary supplements Exempt (General Listing): Sales of the following types of food products for consumption off the premises of the retailer are exempt from tax. Retailer -prepared food for immediate consumption, candy, candy -coated items, candy products, and certain beverages are taxable. This list is intended to provide a general understanding of the types of foods that are exempt. ■ Anyfood stamp purchases • Bread and flour products • Bottled water ■ Cereal and cereal products, unless taxable as candy in the form of a bar • Cocoa and cocoa products, unless taxable as candy • Coffee and coffee substitutes • Dietary substitutes and specialty foods, including diabetic and dietetic, enriched or fortified foods, infant formulas, and certain foods commonly referred to as health food items or dietary replacements • Eggs and egg products • Fish and fish products • Food or cooking ingredients incorporated into food items, such as lard, vegetable oils, or pectin (commonly used as a base in making jams and jellies). • Frozen foods • Fruits /fruit products /fruit juices containing more than 50%fruit or vegetable juice • Ice unless specifically labeled for nonfood use • Margarine, butter, and shortening • Meats and meat products ■ Milk and milk products, including packaged ice cream products • Snack foods generally, such as nuts, potato chips, popcorn, corn chips, and pretzels. • Spices, condiments, extracts, and artificial food coloring ■ Sugar, sugar products and substitutes, unless taxable as candy • Tea ■ Trail mix ■ Vegetables and vegetable products Freight, Shiani.n--and Handling Charges Taxable: Inbound freight or freight -in charges do not fall within the definition of delivery charges, and are taxable when added to the price of a taxable retail sale. An example of when "freight -in" charges might appear is a situation where a purchaser wishes to buy a product from a retailer, but that retailer doesn't have the item in stock and must order the product. If the retailer prices the product at a certain amount, plus the shipping costs associated with obtaining the product by ordering from their supplier, those associated costs (freight -in) are not exempt delivery charges even if separately stated. These charges reflect the costs a seller may incur to secure possession of the product from their supplier. Exempt delivery charges constitute the costs necessary to transfer the product from the seller to the purchaser. Exempt: • If separately invoiced or separately stated on the bill Fuel Taxable: • Dyed diesel, unless used for agricultural production or other exempt purpose • LPG (propane), unless used for manufacturing or other exempt purpose or to power a registered vehicle Exempt: • Clear diesel and other motor fuel and special fuel if: The fuel is consumed for highway use, in watercraft, or in aircraft, The Iowa fuel tax has been imposed and paid, and No refund or credit of fuel tax has been made or will be allowed Gambling A state gambling license may be required. Call the Iowa Department of Inspections and Appeals at 515-281-6848. See lQwa Tax_on Ga nh-Ung Gifts by Retailer Taxable: ■ Tangible personal property purchased exempt from tax for the purpose of resale and Later given away or donated The retailer includes the purchase price of the item under "goods consumed" on the sales tax return. Government Entities Taxable: ■ Sales to any municipally -owned public utility engaged in selling gas, electricity, or heat to the general public • Sales made by the State of Iowa ■ Sales of utilities and fees for participating in athletic sports made by a county or city Exempt: • Sales to the federal government • Sales to a tribal government, defined by lava Cade section 216A.1181 as "the governing body of a federally recognized Indian tribe." • Sales to any tax -certifying or tax -levying body of the State of Iowa, or governmental subdivision, including:Sales by a county or city— except for utilities and fees charged for participating in athletic sports State Board of Regents State Department of Human Services State Department of Public Health • State Department of Transportation ■ Any municipally -owned solid waste facility which sells all or part of its processed waste asfuelto a municipally -owned public utility ■ Regional transit systems, and • All divisions, boards, commissions, agencies, or instrumentalities of state, federal, tribal, county or municipal government which have no earnings going to the benefit of an equity investor or stockholder See Iowa Tax Resportsi&iljtie at Ci_ties_�.d Counties See G_oms#ruction Qo rack_ th Designated Exemp# E-iti; ies Gratuities and Tips Taxable: Gratuities that are mandatory charges and automatically added to the bill Exempt: Gratuities given voluntarily by the customer Greenhouses Taxable: • Heating or cooling office space • Repair labor Exempt: If used to produce flowering, ornamental or vegetable plants in commercial greenhouses or other places for sale: ■ Fuel used for heating or cooling of production areas • Electricity used in production • Machinery and equipment used directly and primarily in production • Auxiliary attachments • Replacement or repair parts • Water used for production Internet Taxable: • Internet sales of taxable goods delivered in Iowa • Items delivered to the purchaser electronically or digitally Exempt: • Internet access fees Interstate CQnI Lrce Taxable: Delivery to a buyer in Iowa or the buyer's agent (other than a common carrier) in Iowa Exempt under certain circumstances: • Services performed on property delivered into interstate commerce, and ■ Tangible personal property delivered into interstate commerce Delivery into interstate commerce is made when the seller uses his or her own vehicles to deliver the goods out of Iowa or directly assigns goods to a common carrier for shipment out of Iowa. Janitorial I Building Maintenance / CleanirigService.$ Taxable: Janitorial / Building Maintenance / Cleaning Services are taxable. Exempt: Services performed in a private residence, including an apartment or multiple housing unit, and the person paying for the services is an occupant of the residence. Laundry Taxable Laundering, dry cleaning, pressing, and dyeing Exempt The use of self -pay washers and dryers LayawaySale Taxable: Taxable products purchased on layaway Tax is reported duringthe period in which delivery of the layaway occurs, usuallywhen the final payment has been made. l Taxable: ■ Equipment and tangible personal property • Receipts from the rental of certain motor vehicles subject to registration with a gross weight of 13 tons or less when the lease or rental contract is for a period of 60 days or Less • Recreational vehicles ■ Lease or rental of film, tapes, discs, records, and other media to the ultimate user, unless the ultimate user will be broadcasting it to the public Tax Rate 6% state tax, plus Local option tax, if any, plus Automobile rental tax, when applicable Exempt: • Tangible personal property purchased for leasing ■ Film, tapes, discs, records, and other media which can be seen, heard, or read if the sale is to a person regularly engaged in the leasing or renting of these items Lodging See tom Hot0LAnd Mote( T.aXc Q_udance. Manufacturing and Processing The Department maintains an in-depth guide to sales and use tax on manufacturing and processing. Please see that guide for more information. Medical Exempt for human use and consumption: ■ Certain medical devices when sold or rented to the ultimate user ■ Oxygen equipment and oxygen; prescriptions not required • Insulin, hypodermic syringes, and diabetic testing materials • Prescription drugs dispensed by a registered pharmacist or licensed physician, surgeon, dentist, or podiatrist See M]e_diQaLC i,ni�s and_Rel�te Businesses_( ►41�i �[gs_and l� Tex information Newspapers Exempt: • Newspapers • Free newspapers ■ Shoppers' guides Nonprofit Organization$ Taxable: Tangible personal property or services purchased and used by churches and most other nonprofit organizations Exempt: • Sales to any Iowa private nonprofit educational institution used for educational purposes ■ Sales to nonprofit hospitals (licensed under Iowa Code chapter 13513) for use in the operation of the hospital • Sales to nonprofit hospices • Sales to nonprofit private museums • Sales of building materials to Habitat for Humanity in Iowa • Proceeds from fundraising activities that are used for educational, religious, or charitable purposes if the profits from the sales are used by or donated to one of the following: • An entitythat is exempt from federal income tax under Internal Revenue Code section 501(c)(3); • A government entity (including public schools); or • A private nonprofit educational institution See Iowa Tax Issues for Nonprofit.Entities, which includes the full list of nonprofit entities that qualify for exemption. See Q t ca_ .n-P-t�diesit Optional Warranty Contracts Taxable: Optional service or warranty contracts that furnish taxable labor or materials Computer software maintenance contracts that provide the taxable transfer of tangible personal property Additional charges for parts and taxable labor in addition to that covered by a warranty or maintenance contract— only parts and not labor will be subject to tax where a nontaxable service is performed if the labor charge is separately stated Partially Taxable: computer software maintenance contracts that provide technical support services and the taxable transfer of tangible personal property, and no separate fee is stated for either the performance of the service or the transfer of the property, then tax is imposed on 50% of the sales price of the contract Exempt: Residential warranty contracts Computer software maintenance contracts that provide technical support services only and do not provide any materials Preventive maintenance contracts which require only the visual inspection of equipment and no repair is included PortabLe T it # RigntigLA i1ndrvi in Taxable: The rental of a portable toilet is the sale of tangible personal property, the sales price of which is subject to sales tax. Waste removal exempt if separately itemized: When a portable toilet rental company also sells waste removal services and itemizes that service separately on an invoice, the waste removal service is not subject to tax: sewage sludge is excluded from the definition of "solid waste," the removal of which is otherwise taxable under Iowa Code section 423.2(7). However, if the rental company does not separately itemize the waste removal service and the portable toilet rental in a contract to provide such products and services, the entire sales price is taxable as a bundled transaction under Iowa Code section 423.2(8). Painters and Publishers Exempt: Sales and rentals to printers and publishers of numerous supplies used to complete a finished printed product for retail sale. Prizes Exempt if purchased by the sponsor: Tangible personal property to be given as a prize to a player in games of skill, chance, bingo, or raffle Processing Exempt: Electricity or steam or any taxable service purchased and used in the actual processing of tangible personal property intended to be ultimately sold at retail Tangible personal property sold for processing when it: • By means of fabrication, compounding, manufacturing, or germination becomes an integral part of other tangible personal property intended to be ultimately sold at retail. Is a chemical, solvent, sorbent, or reagent, which is directly used and consumed, dissipated, or depleted in processing tangible personal property intended to be sold ultimately at retail, even if it does not become a component or integral part of the finished product. Similar items are also exempt when consumed in the maintenance or repair of fabric or clothing. Is consumed as fuel in creating heat, power, or steam for processing, including grain drying, in maintenance of the quality of the product being manufactured, for providing heat or cooling for livestock buildings or for generating electric current, or consumed in self-propelled implements of husbandry engaged in agricultural production, such as fuel used in a farm tractor used to plant corn Railroads Taxable: Taxable services performed on railroad rolling stock Exempt: • Personal property used or to be used as railroad rolling stock or as materials or parts thereof ■ Locomotives • Railroad cars • Maintenance —of —way equipment which is used to transport persons or property Fuel and lubricants used in railroad rolling stock Rent -to -Own Taxable: Rent -to -own contracts are taxable as conditional / installment sales Resale Exempt: Tangible personal property and services purchased for resale The purchaser should provide the seller a properly completed Sales Tax Exemption CeIiiIiCate (3,1-01-E). Resale of tangible personal property Tangible personal property is for resale when sold to retailers, wholesalers, jobbers, or any person who is not the ultimate user or consumer of the property and who holds the property for the purpose of selling it to another. Resale of a service An example of a service sold for resale is when an auto repair shop subcontracts a job to another auto repair shop. Resale of property connected with a service Property that is resold in connection with a service is exempt when all of the following occur: The provider and the user of the service intend that a sale of property will occur, and The property is transferred to the user in a form or quantity which is capable of any fixed or definite price value and is actually sold to the customer in conjunction with the performance of the service, or the property is entirely consumed in connection with the performance of an auto body repair service purchased by the ultimate user, and 3. The charge for the property is listed separately on the bill, unless the property is entirely consumed in connection with the performance of an auto body repair service purchased by the ultimate user. Examples: 1. An investment counselor purchases envelopes. These envelopes are used to send out monthly reports to the investment counselor's clients regarding their accounts. Tax is due at the time the investment counselor purchases the envelopes if the clients are not billed for these items. Each envelope is transferred to a client in a form or quantity which is capable of a fixed or definite price value. However, there must also be an actual sale to the client (customer) of an item of personal property in order that there be a "resale" of the item. 2. Ajeweler purchases materials such as main springs and crystals to be used in the performance of a service. These items are purchased by the jeweler for resale where they are transferred to the customer in a form or quantity capable of a fixed or definite price value and each item is actually sold to the customer as evidenced by a separate charge. 3. An accounting firm purchases plastic binders used to cover reports issued to its customers. The firm must pay sales tax on the binders when purchasing them since they are not being sold to their customers. Services Taxable: • Iowa taxes about 75 services • See Iowa Sales and Use Tax: Taxable Services Exempt • Sales of services are not subject to Iowa sales tax unless specifically taxed by state law. • Services performed on or in connection with new construction, reconstruction, alteration, expansion, or remodeling of a building or structure ■ Services used in reconditioning or repairing tangible personal property normally sold in the regular course of the retailer's business and which is held for sale by the retailer Sn:iwr�Jai.LAs..a -rQraft Taxable: • If delivery is taken in Iowa • If purchased out-of-state for use in Iowa Snowmobiles and watercraft do not qualify for exemption as "casual sales" If sold by an individual, the countywill collect the tax upon registration. 5o_lar Energy q_u_i.pment Exempt: ■ Iowa law allows an exemption from sales tax forth e sale of "solar energy equipment" Iowa Code section 423.3(90) defines solar energy equipment as "equipment that is primarily used to collect and convert incident solar radiation into thermal, mechanical, or electrical energy or equipment that is primarily used to transform such converted solar energy to a storage point or to a point of use" This includes but is not limited to panels, inverters, solar roof tiles or shingles, and energy transmission devices. It does not include a battery or other storage point, equipment used for safety or security of the equipment such as fencing, or equipment not used to collect, convert, or transmit solar energy. It also does not include materials used to manufacture, install, or construct solar energy equipment, such as racking to install or mount solar energy equipment or pads or foundations to support a solar energy equipment installation. Tariffs While not defined in this exemption, the Department typically interprets "primary use" as requiring equipment be used in the prescribed manner for more than half of its use. This will likely not be an issue for this exemption since once the equipment is installed, it is likely not used for any other purpose. There are no Limitations or qualifications for the type of purchaser claiming an exemption for the purchase of solar energy equipment. Tariffs are duties the federal government imposes on imports. When a product that was subject to a tariff is sold, the seller may add the amount of the tariff to the final sales price, or the seller may impose a separate charge for the tariff. Taxable: • The amount of tariff that is either added to the final sales price or imposed as a separate charge is subject to Iowa sales or use tax when the related product is also taxable. Exempt: • When a product is exempt from Iowa sales or use tax, the amount of a related tariff is also exempt. For retailers: When you sell a product that is subject to Iowa sales or use tax, you must also collect sales tax on any charge for tariffs related to that product. If you impose a separate tariff charge on your customer, both the sales price for the product and the tariff charge are subject to Iowa sales or use tax if the product is also taxable. If your supplier imposes a separate tariff charge on your purchase, any amount you add to the sales price due to the tariff when selling to your customer is also subject to Iowa sales or use tax. If the product is exempt from sales or use tax, the tariff charge is also exempt from sales or use tax. For purchasers: When you buy a product that is subject to Iowa sales or use tax, you must also pay Iowa sales or use tax on any charge for tariffs related to that product. If you pay a separate tariff charge, both the sales price for the product and the tariff charge are subject to Iowa sales or use tax if the product is also taxable. If the product is exempt from sales or use tax, the tariff charge is also exempt from sales or use tax. For importers: If the importer's purchase is subject to Iowa sales or use tax (for example, a purchaser directly buys and imports a product for their own use and not for resale), any tariff is not included in the taxable sales price if the tariff is legally imposed on the importer and separately stated on the invoice, bill of sale, or similar document given to the purchaser. Any tariff the importer pays directlyto the customs authority is not included in the taxable sales price and is not subject to Iowa sales or use tax. Tangible Personal Prooertv Taxable: Unless a specific exemption has been written into the law Trade -Ins Trade-ins may reduce the taxable price of a transaction when: ■ Tangible personal property is traded toward the purchase price of other tangible personal property and • The trade-in is the type of item that is sold in the retailer's regular course of business and • The item traded -in is to be ultimately sold at retail. Transportation -Services, Taxable: • Armored car services • Personaltransportation services, including: • Taxis • Driver services • Ride sharing services • Rides for hire • Limousine services • Bus services • Shuttle services • Certain car and airplane rentals Tax Rate ■ 6% state tax, plus • Local option tax, if any, plus ■ Automobile rental tax, when applicable Exempt: ■ Airline • Railroad For more information about personal transportation service, see addition l uidancg. Utilities Generally, the sales, furnishing, or service of gas, electricity, water, heat, pay television and communication services, including the sale of these items by municipal corporations, are taxable. Residential Energy • Exempt from state sales tax • Local option tax, if any, applies Sewage / Solid Waste and Disposal Services Taxable when billed to nonresidential commercial operations. Vending Machines and Other Coin --Operated_ Devices Taxable: • Candy, candy -coated items, candy products, and ■ Certain beverages An operator who places vending or other coin -operated machines in different locations needs only one permit. This could be a sales tax permit for in -state retailers or a retailer's use tax permit for out-of-state retailers. Tax Rate applied at location of machine ■ 6% state tax, plus Local option tax, if any Wind_Energy CQny_ey-sioa-Ma�r�als Exempt: Materials used to manufacture, install, or construct property used to convert wind energy to electrical energy Attachment 3 Kirk Lehmann From: Jessica Andino <jessica@jcaffordablehousing.org> Sent: Tuesday, June 10, 2025 7:34 PM To: Kirk Lehmann Cc: Geoff Fruin Subject: Re: LOST Language I R151t ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** This message is from an extemal sender. Hello Kirk, Thank you for taking the time to meet with us yesterday. We truly appreciate your openness and the opportunity to discuss how we can work together to strengthen our community. As a follow-up, we would like to respectfully request that the following language be shared with Iowa City Councilors for consideration in relation to the proposed Local Option Sales Tax ballot language: "30% of such revenues shall be used to preserve existing affordable housing stock, increase shelter supports, and increase access to and the supply of affordable housing for households with low incomes." We believe this language reflects both resident priorities and the City's ongoing commitment to addressing housing needs in a meaningful, targeted way. Additionally, we encourage the other 20% of revenues to be designated to target City investments that directly benefit residents with lower incomes, recognizing that this is a regressive tax and should be structured to prioritize equity. We look forward to working alongside City staff, community partners, and all Iowa City residents to help promote this initiative. Together, we can ensure this effort reflects our shared values. In partnership, JOHNSON COUNTY Affordable Housing Coalition EXECUTIVE DIRECTOR (319) 382-0938 u jessica@jcaffordablehousing.org ® www.jcaffordablehousing.org &g @jcaffordablehousing Join us as a member to preserve housing rights in Johnson County C �l Q1l t City Council Supplemental Meeting Packet CITY OF )OWA CITY June 17, 2025 Information submitted between distribution of the meeting packet on Thursday and 4:00 pm on Monday. Late Handout(s): a.c-d. (8,c) Rezoning - N Governor St. and Final Plat - Scarlett Point Subdivision and (8.d) Final Plat - Scarlett Point Subdivision - See Council Correspondence from Jon Marner. IP3. Memo from Assistant City Manager: Local Option Sales Tax Discussion: See Council Correspondence from John Kenyon. June 17, 2025 City of Iowa City -AZp 5 Late Handouts Distributed Yulissa Caro From: John Kenyon <john-kenyon@iowacityofliterature.org> V I V Sent: Monday, June 16, 2025 2A2 PM To: "City Council; Kellie Grace (Date) Subject: Letter to City Council re: Arts & Culture support for LOST Attachments: We sent you safe versions of your files; Arts org response to LOST proposal.pdf R SK ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. "- Mimecast Attachment Protection has deemed this file to be safe, but always exercise caution when opening files. This message Is from an external sender. Good afternoon. I am writing on behalf of a group of arts & culture leaders who would like to share the attached letterwith the City Council in advance of its Tuesday, June 17, work session discussion of the Local Option Sales Tax proposal. Thank you for your help, and please let me know if you need anything else from us. John John Kenyan ExmsAw Director Iowa CityUNESCO Ciry or Lilenature iohn-kenvonCa)iowacitvo0 iterature.or v .iowaciwo9iterature.am Links: h9oeltllnke.eell.ClNofLlt 0:(319)35&5245 MARKS THE ARTS CULTURAL AND ENTERTAINMENT DISTRICT June 16, 2025 To the City Council of Iowa City: ARTS ALLIANCE We write on behalf of a coalition of organizations and individuals working across arts & culture, driving economic impact to build a stronger, more inclusive community. We strongly support the adoption of a Local Option Sales Tax (LOST), and we stand ready to actively support the campaign in partnership with Greater Iowa City, Inc. in leading this campaign across our region. We urge the City Council to adopt a LOST framework that dedicates at least 10%to arts organizations and arts & culture partnerships, both of which are foundational to Iowa City's economic vitality and quality of life, without diluting a minimum of 20% to affordable housing initiatives as defined by that sector and for supports for those in low income socio- economic strata. According to the Arts & Economic Prosperity 6 (AEP6) study (2022), arts & culture drive more than $32 million in economic impact annually in Johnson County, produce over 500 jobs, and generate visitor spending that will directly contribute to LOST revenues that are spent by outside-ofcounty visitors, creating a positive net result from this investment. The AEP6 study estimated that each visitor to a downtown Iowa City arts or cultural event, on average, spends $47 beyond the ticket fee. This may include food, drinks, souvenirs, and purchases from surrounding retailers. The survey also found that nationally, one third of event attendees travel from outside the county in which the activity takes place. They spend an average of $60 beyond the ticket fee — even more than their local counterparts. Moreover, each of our organizations provide essential equity -centered programming that helps offset the regressive impacts of a sales tax and remain focused on addressing social determinants of health in addition to improving arts - centered impact and economic development. We further urge the Council to avoid zero -sum funding structures or ballot language that pit sectors against one another. A healthy, thriving Iowa City depends on investments across housing, arts & culture, and human services, not one at the expense of the others. Finally, we call on the Council to adopt a clear resolution relating to LOST expenditures that ensures accountability and transparency in the use of LOST revenues —giving voters confidence their support will translate into real, equitable outcomes. With this focus, we commit to be an active partner in advocating for a LOST framework that truly reflects the values and needs of our community. In support, Katie Roche X Marks the Arts Co -Chair; Former Development Director, Englert Theatre and Strengthen Crow Evolve; Former Executive Director, Summer of the Arts John Kenyon Iowa City UNESCO City of Literature; X Marks the Arts Co -Chair; Iowa City Downtown Arts Alliance John Scbickedanz The Englert; Iowa City Downtown Arts Alliance; X Marks the Arts Tammie Walker Member and former co-chair of Iowa City X Marks the Arts Committee Lisa Barnes Summer of the Arts; Iowa City Downtown Arts Alliance John Engelbrecht Executive Director, Public Space One; Partner Member, Iowa City Downtown Arts Alliance Jan Knights X Marks the Arts; Summer of the Arts; Iowa City Art Alliance Feasibility Steering Committee; Rapson Collaborative Emily Edwards Public Space One Andre Perry Iowa City resident; arts worker Lauren Lessing Karen Kubby Beadology Iowa; X Marks the Arts Adam Knight Riverside Theatre; X Marks the Arts Andrew Sherburne FilmScene t r , �+ I� City Council Supplemental Meeting Packet CITY OF IOWA CITY June 17, 2025 Information submitted between distribution of the meeting packet on Thursday and 3:00 pm on Tuesday. Late Handout(s) iP3. Memo from Assistant City Manager: Local Option Sales Tax Discussion: See Council Correspondence from Carolyn Scherf Ryan June 17, 2025 City of Iowa City Yulissa Caro From: Scherf Ryan, Carolyn G <carolyn-ryan@uiowa.edu> Sent: Tuesday, June 17, 2025 1:40 PM Late Handouts Distributed To: *City Council Subject: LOSST proposal & process m�r�) R SK ** This email originated outside of the City of Iowa City email system. Please take extra care opening any links or attachments. ** This message is from an external sender. Dear Iowa City Council Members, I'm writingto express my deep concern about the process surrounding the Local Option Sales and Service Tax (LOSST) ballot measure. While I understand that local governments across our state are facing increasing fiscal constraints, the way this tax was developed and advanced represents a failure of transparency, democratic engagement, and basic equity. Let's start with the fundamentals: LOSST is a regressive tax. It places a disproportionate burden on lower -income households —those already facing rising housing costs, inflation, and limited access to childcare. Because of that, any decision to pursue a LOSST measure should have begun by centering the voices of those most burdened, not sidelining them. Instead, Greater Iowa City was given the reins to Lead this process. While Greater Iowa City represents some Important stakeholders, they do not represent the people who will feel this tax most acutely. Their process was closed, exclusive, and designed more to secure political consensus than to reflect community needs. It's even more disappointing to learn —and not thorough public notice —that tonight's work session appears intended to finalize a decision on this ballot measure. That's not public discourse. This is not what democracy looks like. Even more troubling is what LOSST revenues are being proposed to fund: roads, public art, and vague "quality of life" initiatives. These are Important civic investments —but they should not be funded through a tax that falls heaviest on the poor and working class. Using a regressive tax to fund aesthetic or discretionary projects, and with no definable parameters around "housing" (eg: affordability guidelines) is a misuse of public trust. If we must turn to LOSST, then we must also commit to usingthose funds to directly alleviate the burden it creates. That means prioritizing deeply affordable housing, equitable transit, and basic services like childcare that will help our community and poverty not roads and art projects. The City Council should have Led with transparency. Instead, you followed a Greater Iowa City -led process that excluded far too many. Please take a step back and ask whether this represents the equity and inclusion we aspire to. Sincerely, Carolyn Scharf Ryan Iowa City resident 319-471-2575 Item Number: IP4. CITY OF IOWA CITY COUNCIL ACTION REPORT June 12, 2025 Pending City Council Work Session Topics Attachments: Pending City Council Work Session Topics � r IW AM:, CE A �Qi1f�� CITY OF IOWA CITY UNESCO CITY OF LITERATURE PENDING CITY COUNCIL WORK SESSION TOPICS June 11, 2025 Currently Scheduled ■ July 8, 2025: Recap of the State of Iowa legislative session (June) FY23-25 Strategic Plan Action Item Topics Requiring Council Discussion: • Explore legal steps to discourage or prevent bad faith and predatory property investors • Advance prioritized recommendations in the 2022 Affordable Housing Action Plan. Work with partners to undertake significant -scale affordable housing efforts • Develop a vision statement for a singular regional transit system with metro Johnson County entities and obtain initial commitments to study a regional system from each entity's elected officials Other Topics: • Discussion of board and commission appointment process • License plate reader technology discussion ■ Air quality discussion • Historic preservation incentive discussion ■ University of Iowa update • Conference Board (Sept. 16, 2025) • Overview of the Iowa City Human Rights Ordinance • Sidewalk connection to Happy Hollow Park • Low Income Utility Discount Program (IP2 from 4.24.25) • Affordable housing discussion • Discuss land acquisition and/or banking for affordable housing development Note: Some items on the Pending List may require staff research and information gathering prior to scheduling. Item Number: IP5. a CITY OF IOWA CITY "QR T-4 COUNCIL ACTION REPORT June 12, 2025 Memo from City Manager's Office: Housing Information Attachments: Memo from City Manager's Office - Housing Information Memo from City Manager's Office - Iowa City Housing Authority Waiting List Update r :.:, ,tom-4 CITY OF 1OWA CITY , �P MEMORANDUM Date: June 11, 2025 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 October 31, 2024 November 14, 2024 Topic HUD Point -in -Time Count: This is a required count Source Institute for Community conducted across the country of sheltered and unsheltered Alliances (ICA) people experiencing homelessness on a single night in https://!calliances.orp/pit 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. Housing Choice Voucher Utilization Rate: The utilization rate refers to the number of housing choice vouchers that are under lease as a percentage of 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 I ICAAR Market Trends: ICAAR collects data about home 5, 2024 sales monthly. In Oct. 2024, the median sales price was $376,250 for single-family (up 29.9% from Oct. 2023) and HUD Housing Choice Voucher Data Dashboard https://www.hud.gov/pro pram offices/public indi an housing/programs/h cv/dashboard Iowa City Area Association of Realtors (ICAAR): June 11, 2025 Page 2 was $274,000 for a condominium (up 8.5%). However, the I https./licaar.org/market- 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. January 2, 2-Bedroom Housing Wage: The National Low Income 2025 Housing Coalition computes housing wages across the country (the hourly wage rate needed to afford housing in the selected geographic region). In Iowa, the 2-bedroom housing wage across the state is $18.86. For the Iowa City metropolitan area, the 2-bedroom housing wage is $20.81. January I Cost Burden: A household is considered housing cost 21, 2025 1 burdened if it spends more than 30% of its income on February 4, 2025 housing expenses, including rent, mortgage payments, and utilities. In 2023, 59.3% of renters and 18.0% of owners were housing cost burdened. Households with lower incomes are more likely to experience cost burden 91 % of households making less than $35,000 are cost burdened. Cost of Home Construction: The NAHB regularly conducts a national, non -statistically valid survey of builders about the cost breakdowns for a new single-family home. In 2024, the average finished area of a new home was 2,647 square feet, and the average total sales price was $665,298. Construction costs accounted for approximately 64.4% of the sales price. Meanwhile, the finished lot cost was 13.7% of the sales price, while other overhead costs - including financing, general expenses, marketing, and sales commissions - made up another trends/ National Low Income Housing Coalition Out of Reach Report. https://nlihc.org/oor/stat e/ia i 2023 5-Year American Community Survey Data by the U.S. Census Bureau https://data. censu s.gov/ table/ACS DT5Y2023. B2 5106?q=iowa°I%20city% 20cost%20burden%20b Y%20tenure&t-Owner/ Renter°I%20(Tenure) Cost of Constructing a Home-2024 by the National Association of Home Builders (NAHB) https://www.nahb. /- /media/NAHB/news- and- econom ics/docs/housi n g-economics- plus/special- studies/2025/special- June 11, 2025 Page 3 This left an average of 11.0% which constituted profit. February HUD Point -in -Time Count: This is a required count 13, 2025 conducted across the country of sheltered and unsheltered March 6, 2025 people experiencing homelessness on a single night in study -cost -of - constructing -a -home - 2024-ia n u a ry-202 5. pdf Institute for Community Alliances (ICA) - 2025 not yet available. January. In 2023, the count revealed 160 sheltered and 18 https://icalliances.org/pit unsheltered individuals in Johnson County. In 2024, the count revealed 159 sheltered and 22 unsheltered individuals in Johnson County. The 2025 count of sheltered individuals is being gathered for submission to HUD. Unofficially, the 2025 count revealed 38 unsheltered individuals in Johnson County. ICAAR Days on Market Trends: ICAAR collects data Iowa City Area about how long homes are listed for sale on the market. In I Association of Realtors Feb. 2025, the median Days on Market (DOM) in Iowa City (ICAAR): was 36 for single-family (up 38.5% from Feb. 2024) and was 28 for condominiums (up 24.4%). While DOM increased this past year, these numbers still suggest many homes are selling relatively quickly, and there is a strong demand for housing compared to supply. May 1, Utility Expenses: The cost of utilities is an important 2025 component of monthly housing expenditures. The Iowa Finance Authority (IFA) recently funded a dashboard that allows public utility providers in Iowa to compare water and sewer rates from FY23. For a residential customer using 5,000 gallons of water and sewer service, Iowa City httgs://i caar.orq/market- trends/ zucs Iowa vvater ana Wastewater Rates Dashboard, Environmental Finance Center at the University of North Carolina at monthly rate is $60.73 which is in the lowest 20% of bills I Chapel Hill (UNC EFC): charged (the median in Iowa is $85.60). When a residential I https://dashboards.efc.s customer only uses 4,000 gallons of water and sewer I og.unc.edu/ia service, Iowa City's rate drops to the lowest 10% of bills June 11, 2025 Page 4 May 15, 2025 May 29, 2025 June 12, 2025 charged at $50.30 (compared to the Iowa median of $74.32). While Iowa City's rates have increased since FY23, this highlights the comparative affordability of Iowa City's water and sewer service. ICAAR Inventory and Sales Trends: ICAAR collects data Iowa City Area on several housing market variables by city. The April 2025 Association of Realtors data shows that active inventory of homes for Iowa City is (ICAAR): up 54.5% compared to April 2024 while closed sales are https:/Iicaar.org/market- down 20% for that same period. This data suggests fewer trends/ buyers may be participating in the market. Household Size: Household size affects housing needs 2023 5-Year American within a community. For example, larger households may Community Survey require homes with more bedrooms and living space, whereas smaller households, such as singles or couples without children, can drive demand for smaller units. In 2023, 37% of Iowa City households consisted of 1 person, 35% consisted of 2 persons, 14% consisted of 3 persons, and 13% consisted of 4 persons. However, there is a reciprocal relationship: smaller units may attract smaller households rather than small households driving the demand for smaller units. Data by the U.S. Census Bureau httos://data.census.gov/ table/ACSST5Y2023. S2 501 ?q=iowa+city,+ia Fair Market Rents (FMR): Every year, the U.S. FY 2025 Fair Market Department of Housing & Urban Development publishes FMRs which estimate reasonable rental prices for housing in specific geographic areas. It is considered a benchmark for rent affordability and is used by many affordable housing programs to establish maximum rents. Effective June 1, 2025, the monthly FMR is $921 for a 1-bedroom unit, $1,105 for a 2-bedroom unit, and $1,548 for a 3-bedroom unit in Iowa City. Compared to 2024, FMR increased 4.2% for efficiency units, 2.1% for 1- and 2-bedroom units, 1.5% for 3-bedroom units, and 1.1 % for larger units. Rent for Iowa City, IA https://www.huduser.go v/portalldatasets/f_m r/fm r s/FY2025 code/2025su mmarv.odn r 00- —„M&14It CITY OF IOWA CITY MEMORANDUM Date: June 11, 2025 To: Mayor and City Council From: City Manager's Office Re: Iowa City Housing Authority Waiting List Update Data on the Housing Choice Voucher (HCV) and Public Housing (PH) waitlists is provided monthly by the Iowa City Housing Authority (ICHA). ICHA prioritizes applicants using criteria reviewed and approved by City Council, with the top preference category consisting of households that live and/or work in ICHA's jurisdiction (Johnson and Iowa Counties, and Washington County north of Highway 92) and are elderly, disabled or have minor children. Waitlists are regularly updated consistent with best practice to ensure applicants remain eligible, are interested in staying on the waitlist, and are accurately classified in the appropriate preference category. The most recent waitlist update was implemented May 2025. Table 1: ICHA Waiting Lists and Homeless Counts Month HCV Waiting List PH Waiting List Homeless (# in Top Preference Category) (# in Top Preference Category) Count" Dec '24 10,091 (1,205) Jan '25 10,087 (1,204) 1,627 (570) Feb'25 10,035 (1,157) 1,614 (573) -- 1,688 of the 10,305, or 16.8%. -- 452 of the 1,614, or 28%, have have an Iowa Citv address -- an Iowa Citv address -- * Data source for monthly tracking is still being investigated. Item Number: IP6. CITY OF IOWA CITY COUNCIL ACTION REPORT June 12, 2025 Quarterly Investment Report: January 1, 2025 to March 31, 2025 Attachments: Quarterly Investment Report - January 1, 2025 to March 31, 2025 City of Iowa City Quarterly Investment Report January 1, 2025 to March 31, 2025 Finance Department Prepared by: Emily Droll Senior Accountant -Revenue Overview The City of Iowa City's investment objectives are safety, liquidity and yield. The primary objective of the City of Iowa City's investment activities is the preservation of capital and the protection of investment principal. The City's investment portfolio remains sufficiently liquid to enable the City to meet operating requirements that cash management procedures anticipate. Investments purchased by the City of Iowa City for the second quarter of this fiscal year had an average return of 4.245%. The City purchased two new investments in this quarter. The Federal Funds Rate remained at 4.33%. In investing public funds, the City's cash management portfolio is designed with the objective of regularly exceeding the average return on the six-month U.S. Treasury Bill. The Treasury Bill is considered a benchmark for riskless investment transactions and therefore comprises a minimum standard for the portfolio's rate of return. Since the city's investments are mostly between the six-month and twelve-month range, the yield curve for the twelve-month U.S. Treasury Bill has been added to the chart. The rolling average return on the six-month U.S. Treasury Bill for the prior 365 days was 4.753% and the twelve-month return was 4.511 %. The investment program seeks to achieve returns above this threshold, consistent with risk limitations and prudent investment principles. The rate of return on the City's entire portfolio for the quarter was 3.7%. Investments for this year are $15,886,646 higher than last year. The increase in investments is due to investing more of the City's cash on hand as interest rates have maintained favorability. City of Iowa City vs. 6 and 12 Month Treasury Bill 6.0 5.0 c L 3 4.0 e• w 0 W to 1O 3.0 M c a L a 2.0 1.0 0.0 ,mach q�c, ro� ,mooQ Qho mt 4� 4" —City of Iowa City --A®6 Month T-bill --i-12 Month T-bill Treasury bills and fed funds are competing investments in the money market. The federal funds rate is highly influential and often has a direct effect on the U.S. economy, because it serves as a base for interest rates offered by various financial and credit institutions to businesses and consumers. The Federal Open Market Committee (FOMC) seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate. In support of it's goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage -backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective. Federal Funds Rate M. 5.0 N 4.0 M ry 3.0 N 2.0 N C: 1.0 Me do ry N ti N r V rV rV rV (� rV rV NV rV (V NV 10, N ry� t i C ' L� City of Iowa City Investments On Hand Listing By Institution 3/31 /25 3/31 /24 Investment Investment Depository Institution Name Amount Amount Limit MidwestOne Bank $ 91,909,199 $ 71,959,764 $ 150,000,000 Piper Sandler Companies $ 31,999,689 $ 39,999,021 N/A Iowa Public Agency Investment Trust $ 38,646,646 $ 32,076,727 N/A US Bank $ - $ - $ 65,000,000 Green State Credit Union $ 5,000,000 $ 25,000,000 $ 50,000,000 Hills Bank & Trust $ 101,292 $ 101,039 $ 25,000,000 Bankers Trust $ 37,501,339 $ 12,732,085 $ 50,000,000 Cedar Rapids Bank and Trust $ 5,267,998 $ 15,000,000 $ 50,000,000 West Bank $ 77,626,249 $ 75,297,131 $ 100,000,000 Total $ 288,052,412 $ 272,165,767 Hills Bank & Trust_ Green State Credi Union Io,u/a Public Agency investment Trust Piper Sang Compani City of Iowa City Investments by Institution March 31, 2025 Bankers Trust Cedar Rapids Bank and Trust Vest Bank ie Rank Fund Type Operating General Fund Reserve Equipment Reserve Health Insurance Reserve Landfill Closure Total Operating City of Iowa City Investments On Hand Summary By Fund 3/31 /25 Investment Amount $ 266,052,723 $ 7,999,689 $ 2,000,000 $ 4,000,000 $ 8,000,000 $ 288,052,412 City of Iowa City Investments by Fund March 31, 2025 3/31 /24 Investment Amount $ 242,166,746 $ 9,999,021 $ 6,000,000 $ 6,000,000 $ 8,000.000 $ 272,165,767 iI Fund erve Hea:,Lh -- - Insurance Reserve Landfill Closure City of Iowa City Investment Activity For The Quarter Ended March 31, 2025 Institution Fund Type Investment Type Purchase Maturity Date Date Investment Amount Investments on Hand at 12/31/24 $ 287,001,218.27 Purchases MidwestOne Operating CD 02/04/2025 02/04/2026 5,000,000 00 IPAIT Operating CD 02/14/2025 02/13/2026 5,000,000.00 MidwestOne Operating Money Market 10,000,000.00 Bankers Trust Operating Money Market 12,173,643 06 Interest and Accretion 882,897.27 Total Purchases 33,056,540.33 Redemptions MidwestOne Operating CD 01/30/2024 01/30/2025 5,000,000.00 GreenState Operating CD 01/26/2024 01/26/2025 5,000,000.00 Federal Home Loan Mortgage Corp Equipment Replacement Fund Agency Bond 08/19/2020 02/14/2025 2,000,000.00 Federal National Mortgage Assoc Operating Agency Bond 10/18/2024 01/17/2025 5,000,000.00 Federal Home Loan Bank Operating Agency Bond 11/13/2024 02/13/2025 5,000,000.00 MidwestOne Operating Money Market 10,000,000.00 Expenses 5,34653 Total Redemptions 32,005,346.53 Investments on Hand at 3/31/25 $288,052,412.07 City of Iowa City Investments On Hand March 31,2025 Institution Name Fund Investment Type Purchase Date Maturity Date Investment Amount Federal Home Loan Bank Equipment Replacement Fund Agency Bond 02/17/2021 02/17/2026 2,000,000.00 Federal Home Loan Bank General Fund Reserve Agency Bond 10/02/2020 09/22/2025 1,999,689.26 Federal Home Loan Bank General Fund Reserve Agency Bond 01/14/2021 01/14/2026 2,000,000.00 Federal Home Loan Bank General Fund Reserve Agency Bond 01/28/2021 01/28/2026 2,000,000.00 Federal Home Loan Bank General Fund Reserve Agency Bond 03/30/2021 03/30/2026 2,000,000.00 Federal Home Loan Bank Health Insurance Reserve Agency Bond 08/23/2021 05/23/2025 2,000,000.00 Federal Farm Credit Bank Health Insurance Reserve Agency Bond 09/10/2020 09/10/2040 2,000,000.00 Federal Home Loan Bank Landfill Closure Fund Agency Bond 01/27/2021 07/27/2026 2,000,000 00 Federal Home Loan Bank Landfill Closure Fund Agency Bond 01/29/2021 01/29/2027 2,000,000.00 Federal Home Loan Mortgage Corp Landfill Closure Fund Agency Bond 12/29/2020 12/29/2027 2,000,000.00 Federal Home Loan Mortgage Corp Landfill Closure Fund Agency Bond 12/22/2020 06/22/2029 2,000,000.00 Bankers Trust Operating CD 11/15/2024 11/15/2025 9,000,000.00 Green State Operating CD 07/31/2024 07/31/2025 5,000,000.00 MidWestOne Operating CD 04/22/2024 04/22/2025 10,000,000.00 MidWestOne Operating CD 06/28/2024 06/28/2025 5,000,000.00 MidWestOne Operating CD 08/23/2024 08/23/2025 5,000,000.00 MidWestOne Operating CD 09/16/2024 09/16/2025 5,000,000.00 MidWestOne Operating CD 10/16/2024 10/16/2025 5,000,000.00 MidWestOne Operating CD 10/22/2024 10/22/2025 10,000,000.00 MidWestOne Operating CD 11/07/2024 11/07/2025 5,000,000.00 MidWestOne Operating CD 11/08/2024 11/08/2025 20,000,000.00 MidWestOne Operating CD 02/04/2025 02/04/2026 5,000,000.00 West Bank Operating CD 11/08/2024 11/08/2025 67,000,000.00 CR Bank & Trust Operating CD 12/15/2024 12/16/2025 5,267,997.97 IPAIT Operating CD 02/14/2025 02/13/2026 5,000,000 00 United States Treasury Operating US Gov 11/12/2024 11/15/2025 20,334,924.32 Federal Home Loan Bank Operating Agency Bond 12/19/2024 12/19/2025 10,000,000.00 West Bank Operating Money Mkt --- -- 10,626,249.40 CR Bank & Trust Operating Money Mkt --- 11,036,161.62 Bankers Trust Operating Money Mkt ... — 28,501,339.20 Hills Bank Operating Money Mkt — - 101,291.65 IPAIT Operating Money Mkt 2,275,559.50 MidWestOne Operating Money Mkt 21,909,199.15 � LiSrf,UbL,4lL.U/ Item Number: IP7. a CITY OF IOWA CITY "QF T-4 COUNCIL ACTION REPORT June 12, 2025 Civil Service Entrance Examination - Customer Service Representative - Revenue Attachments: Civil Service Entrance Examination - Customer Service Representative - Revenue l i �:.�. r I i CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240- 1 826 (319) 356-5000 (319) 356-5009 FAX wvww.icgov.org June 6, 2025 TO: The Honorable Mayor and the City Council RE: Civil Service Entrance Examination — Customer Service Representative — Revenue Under the authority of the Civil Service Commission of Iowa City, Iowa, I do hereby certify the following named person(s) as eligible for the position of Customer Service Representative — Revenue. Monica Davis Iowa City Civil Service Commission Rick Wyss, 6hair Item Number: IP8. a CITY OF IOWA CITY "QR T-4 COUNCIL ACTION REPORT June 12, 2025 Civil Service Entrance Examination - Electrician - Traffic Engineering Attachments: Civil Service Entrance Examination - Electrician - Traffic Engineering i r 1 I N- CITY OF IOWA CITY 410 East Washington Street Iowa City, loiva S2240-1826 (319) 3 5 6 - 5 0 0 0 (319) 356-5009 FAX 1vww.1cg0v.0rg June 6, 2025 TO: The Honorable Mayor and the City Council RE: Civil Service Entrance Examination — Electrician — Traffic Engineering Under the authority of the Civil Service Commission of Iowa City, Iowa, I do hereby certify the following named person(s) as eligible for the position of Electrician — Traffic Engineering. Logan Carter Iowa City Civil Service Commission Rick W s, Chair Item Number: IP9. CITY OF IOWA CITY COUNCIL ACTION REPORT June 12, 2025 Public Art Advisory Committee: June 5 Attachments: Public Art Advisory Committee: June 5 Draft, p.1 Public Art Advisory Committee Mtg, 61512025 Minutes Public Art Advisory Committee June 5, 2025 Emma J. Harvat Hall Public Art Advisory Committee Members Present: Leslie Finer, Juli Seydell Johnson, Andrea Truitt, Ron Knoche, Sophie Donta, Rachel Kinker Members Absent: Anita Jung, Nate Sullivan Staff present: Rachel Kilburg Varley Public Present: Megan Randall, Midwest Arts Conservation Center Call to Order Truitt called the meeting to order at 3:32 p.m. Public Discussion of Any Item Not on the A enda None. Consider minutes of the May 1. 2025 PAAC meeting_ Donta moved and Finer seconded that the minutes from the May 1, 2025, meeting be approved with edits. Motion passed (5-0). Review Public Art Condition Survey & Report Note that Johnson joined the meeting during this agenda item. Kilburg Varley reminded the Committee that the Midwest Arts Conservation Center (MAAC) completed a condition survey and report for the PACC's public art inventory. The survey forms for each artwork and the summary report were included in the meeting agenda packet. The objects conservator, Megan Randall, was present via Zoom to answer questions. The contract includes three additional in-depth treatment proposals. Randall suggested focusing on the pieces that are within the top ten ranking of priority, such as Neighborhood of Seasons and the neighborhood historic markers. Kilburg Varley and Randall clarified that next steps would be to identify the three in- depth proposals MAAC should develop, including cost estimates. These proposals can be updated in future years if the Committee does not have funding to address all at once. Draft, p.2 Public Art Advisory Committee Mtg, 61512025 Johnson noted that Triaxial Hemicylindrical was not originally painted and suggested that piece be restored to the unpainted cor-ten steel. The Committee also discussed that Four Module Piece just needs to be evaluated closer by City staff to determine how severe the damage is and what the true priority of that piece is. The Committee also discussed checking in with the artist of Neighborhood of Seasons because there may be some restoration challenges that were previously discussed with the artist and not reflected in this report. Kilburg Varley will meet with City staff to further refine the restoration plan based on historical knowledge of certain pieces such as those mentioned and, based on that, suggest three proposals for the Committee at the July meeting. Knoche shared that performing and training staff on cleaning and re -waxing the bronze sculptures would be a strong priority as that would impact many pieces in the inventory. Kilburg Varley also shared an update on the Iowa Avenue Literary Walk. She had previously been working the artist to develop a restoration and maintenance plan, however that has not been successful and they may need to ask MACC to survey the walk another time. Consider FY26 — FY30 Public Art Strategic Plan Kilburg Varley noted that a redlined version was included in the agenda packet based on last meeting's work session. She invited any final comments on the plan language or approval if there were none. Following approval of the plan language, City Communications staff will develop a designed version. Committee members had no additional comments. Finer made a motion to approve the FY26-FY30 Public Art Strategic Plan, Donta seconded. Motion passed (6-0). Staff Updates Kilburg Varley shared that a ribbon -cutting is planned to celebrate the South District bus stop bench sculpture, Uplift, on June 19, 2025 at 6pm at Fairmeadows Park in conjunction with the Party in the Park event. Old or New Business None. Adiournment Knoche moved to adjourn at 4:06 pm. Kinker seconded. Motion passed (6-0). Draft, p.3 Public Art Advisory Committee Mtg, 61512025 Public Art Advisory Committee Attendance Record 2024-2025 Name Term Expires 414124 6l6/24 8/1/24 915/24 10/3/24 1117124 1215124 216/25 3/6/25 4/3/25 5/1/25 6/5/25 Ron Knoche N/A X* X X O/E X X* X X* X X* X X Juli Seydell- N/A O/E X X X X* X X X X X X* X Johnson Steve Miller 12/31/23 X X X --- --- --- --- --- --- --- -- --- Eddie 12/31/24 --- -- --- --- -- - - --- - --- --- --- --- Boyken Andrea 12/31/25 X O/E X X X X X X X X X X Truitt Anita Jung 6/30/23 O/E X X X 0 X X 0 0 0 O/E O/E Jenny 12/31 /23 -- - - -- --- -- --- --- --- -- -- --- Gringer Jeremy 12/31/25 X X X X O/E X O/E X X O/E — --- Endsley Nate 6/30/26 X X X O/E X O/E O/E X O/E X X O/E Sullivan Leslie Finer 12/31/26 X X X X X X X X X X X X Rachel 12/31 /27 X X O/E X X O/E X X O/E X X X Kinker Sophie 12/31/26 -- --- - X X O/E X X X X Donta Key: X = Present X* = Delegate attended 0 = Absent O/E = Absent/Excused --- = Not a member