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HomeMy WebLinkAbout2025-09-11 Info Packet4 CITY OF IOWA CITY City Council Information Packet Council Tentative Meeting Schedule IN. City Council Tentative Meeting Schedule September 16 Iowa City Conference Board September 11, 2025 IP2. Iowa City Conference Board Meeting Packet: September 16, 2025 September 16 Work Session IP3. Work Session Agenda IP4. Memo from City Manager: City Council FY 2027 Budget Priorities IP5. Pending City Council Work Session Topics Miscellaneous IP6. Letter to Governor Reynolds and Director Paulsen: Announced Closure of the State Historical Society of Iowa Research Center in Iowa City IP7. Memo from City Manager's Office: Housing Information IP8. Memo from Transportation Services Director: Update on Bus Stop Improvement Program IP9. City Steps 2025 Highlights IP10. The Johnson County Board of Supervisors Minutes of the Joint Meeting with Iowa City Council, September 10, 2025 Draft Minutes IP11. Airport Commission: August 14 IP12. Climate Action Commission: August 4 September 11, 2025 City of Iowa City Item Number: IP1. CITY OF IOWA CITY COUNCIL ACTION REPORT September 11, 2025 City Council Tentative Meeting Schedule Attachments: City Council Tentative Meeting Schedule r City Council Tentative Meeting Schedule Subject to change CITY OF IOWA CITY September 11, 2025 Date Time Meeting Location 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. a CITY OF IOWA CITY "QR T-4 COUNCIL ACTION REPORT September 11, 2025 Iowa City Conference Board Meeting Packet: September 16, 2025 Attachments: Iowa City Conference Board Meeting Packet - Sept 16, 2025 OFFICE OF THE IOWA CITY ASSESSOR JOHNSON COUNTY ADMINISTRATION BUILDING BRAD COMER ASSESSOR MARTIN BURKLE CHIEF DEPUTY TONY STAMMLER DEPUTY September 9, 2025 Dear Conference Board Member: The meeting of the Iowa City Conference Board to consider reappointing the incumbent assessor to a new term is scheduled for Tuesday, September 16, 2025, at 4:00 P.M. at City Hall — Emma J. Harvat Hall. Enclosed for your review before the meeting are: 1. The agenda. 2. A copy of the March 11, 2025, minutes. 3. Iowa Administrative Code 701-103.16(441) Reappointment of Assessor 4. Department of Revenue letter stating eligibility for reappointment. Please contact me if you have questions about individual items or wish to see any of the supporting documents for this budget. Sincerely, Brad Comer Iowa City Assessor bcomer@j ohnsoncountyiowa. gov (319) 356-6066 913 SOUTH DUBUQUE STREET • IOWA CITY IOWA 52240 TELEPHONE 319-356-6066 JOHNSON COUNTY IOWA CITY IOWA CITY BOARD OF SUPERVISORS CITY COUNCIL COMMUNITY SCHOOL BOARD The Iowa City Conference Board Agenda Tuesday, September 16, 2025 4:00 P.M A. Call meeting to order by the Chairperson (Mayor). B. Roll call by taxing body. C. Motion to approve minutes of March 11, 2025, Conference Board meeting. Action: D. Re -appointment of Assessor Comment — The purpose of this meeting is to reappoint the incumbent assessor to a new term. 1. Discuss proposed re -appointment of the City Assessor. 2. Reappoint Brad Comer to a six -year term as the Iowa City Assessor beginning January 1, 2026. Action: F. Board comments G. Adjournment. Action: The Conference Board votes as three voting units, with a majority of the members present for each unit determining the unit's vote. At least two members of a voting unit must be present in order to vote. A quorum is reached when at least two members from two units are present. IOWA CITY CONFERENCE BOARD MINUTES March 11, 2025 City Conference Board: March 11, 2025 at 4:00 P.M. in Emma J. Harvat Hall at City Hall, Mayor Bruce Teague presiding. Iowa City Council Members Present: Alter, Bergus, Harmsen, Moe, Salih, and Teague. Johnson County Supervisors Present: Green -Douglass and Sullivan. Iowa Citv School Board Members Present: Abraham and Eastham. Others Present: Comer, Fruin, Goers, Lehmann, and Grace. Digital Recording: March 11, 2025. Chair Bruce Teague called the meeting to order. Clerk Comer called roll and stated that a quorum was present. The County (Sullivan) moved to accept the minutes of the last conference board meeting, February 5, 2025, the School (Eastham) seconded and the motion carried unanimously 3/0. Chairman Teague declared the public hearing on the FY 26 Budget open. After no comment from the public, the public hearing was declared closed. The City (Salih) moved to accept the proposed budget as published in The Gazette on February 22, 2025, and the School (Eastham) seconded. The motion carried unanimously 3/0. The School (Eastham) moved to schedule the next Conference Board meeting to consider re- appointment of the Assessor for September 16, 2025, and the County (Sullivan) seconded. The motion carried unanimously 3/0. There being no further business it was moved by the School (Eastham) and seconded by the City (Alter) to adjourn at 4:05 P.M. Motion carried unanimously 3/0. Brad Comer Clerk, Iowa City Conference Board TAC Ch 103, p.l 701-103.16(441) Reappointment of assessor. 103.16(1) Time for reappointment. A conference board must decide whether to reappoint an incumbent assessor at least 90 days before the expiration of the incumbent's term. If the incumbent is not to be reappointed, the conference board shall so notify the incumbent in writing at least 90 days before the expiration of the incumbent's term. Failure of the conference board to provide timely notification of the decision not to reappoint the assessor shall result in the assessor being reappointed. In no case may an incumbent assessor be reappointed earlier than 180 days before the expiration of the incumbent's term. Within ten days of reappointment or notification of expiration of the incumbent's term, the conference board shall notify the director of the reappointment or notification of expiration of the incumbent's term. If the conference board reappoints an incumbent assessor, the notice shall include a statement by the conference board stating whether there have been any charges or evidence of any misconduct, nonfeasance, malfeasance, or misfeasance against the appointee. If there have been charges or evidence of any misconduct, nonfeasance, malfeasance, or misfeasance against the appointee, the notice shall include a summary of the misconduct, nonfeasance, malfeasance, or misfeasance and any action taken regarding the misconduct, nonfeasance, malfeasance, or misfeasance. For purposes of this rule, -misconduct" means the same as defined in Iowa Code section 441.9. 103.16(2) Continuing education. A conference board shall not reappoint an incumbent assessor if the board has not received from the assessor education advisory committee certification that the incumbent assessor has satisfied all continuing education requirements. 103.16(3) Confirmation by the director of revenue. a. An assessor reappointed by the conference board shall not assume the office of city or county assessor in the subsequent term until such reappointment is confirmed by the director of revenue. In considering whether to confirm the reappointment, the director shall consider any charges or evidence of misconduct, nonfeasance, malfeasance, or misfeasance by the appointee. For purposes of this rule, `'misconduct" means the same as defined in Iowa Code section 441.9. Within 30 days of receiving notice of reappointment by the conference board, the director shall notify the conference board and assessor of the acceptance or rejection of the reappointment. An appeal of the director's decision under this subrule may be made under rule 701-7.37(441). b. Immediately following selection by the conference board, the appointee assessor shall submit information to the director as required for the director or designee to conduct a background check. The director or designee may review the department's records and other records in considering whether to confirm the reappointment of an assessor. This rule is intended to implement Iowa Code section 441.6 as amended by 2020 Iowa Acts, House File 2641, section 106, and Iowa Code section 441.8. [ARC 5288C, lAB 11/18/20, effective 12/23/20; Editorial change: IAC Supplement 11/2/22] InWA_ Department of Revenue Kim Reynolds, Governor Mary Mosiman, Director Chris Cournoyer, Lt. Governor August 5, 2025 Brad Comer Assessor, Johnson County Term begins Term ends: 01 /01 /2020 12/31 /2025 Why are you receiving this notice? You have met your Continuing Education (CE) requirements for your term beginning 01/01/2020 and ending 12/31/2025 and are eligible for reappointment. See below for the list of your current CE hours as maintained by the Assessor Education Commission and your CE requirements by term. Tested hours required: 90 Tested hours completed: 93 Non -tested hours required: 60 Non -tested hours completed: 127.75 Preliminary Education used for exam requirements are not counted towards CE requirements. Only continuing education acquired during your current term will be counted towards your CE requirement. Sincerely, WkInT mount Whitney Hunt Revenue Examiner 3 Local Government Services Division Iowa Department of Revenue 515-601-4849 wh itney. h unt(a) iowa. gov Hoover State Office Building 1 1305 E WaLnut Street I Des Moines, IA 50319 1 515.281.3114 or 800.367.3388 1 revenue.iowa.gov InWA- Department of Revenue Kim Reynolds, Governor Mary Mosiman, Director Chris Cournoyer, Lt. Governor BRAD COMER - CE Requirements Met for Term 01/01/2020 - 12/31/2025 Course Number Course 5-100 ISAC SPRING CONFERENCE (UNCONFIRMED) 3-400 IOWA ASSESSMENT & TAXATION REVIEW (PRELIM ED) 5-100 ISAC SPRING CONFERENCE 11-100 NCRAAO ANNUAL CONFERENCE (3 NT-Comer) 11-100 NCRAAO ANNUAL CONFERENCE (5.25 NT-Comer) 3-300 IICA SUMMER SEMINAR 3-300 IICA SUMMER SEMINAR 5-100 ISAC ANNUAL CONFERENCE 4-100 ISAA FALL SCHOOL 5-100 ISAC ANNUAL CONFERENCE 4-100 ISAA FALL SCHOOL 5-100 ISAC SPRING CONFERENCE 11-100 NCRAAO ANNUAL CONFERENCE (11.50 NT) 3-300 IICA SUMMER SEMINAR 5-100 ISAC ANNUAL CONFERENCE 4-100 ISAA FALL SCHOOL 1-700 300 FUNDAMENTALS OF MASS APPRAISAL 5-100 ISAC ANNUAL CONFERENCE 4-100 ISAA FALL SCHOOL 1-1200 COURSE 331 MASS APPRAISAL PRACTICES & PROCEDURES 2-100 2025-2026 IOWA LAWS ONLINE Total Tested: 93 hours Total Not Tested: 127.75 hours Number Type Tested of Hours Course Date Recurring No 5.5 3/12/2020 Term Yes 18 11/2/2020 Recurring No 3.5 3/12/2021 Recurring No 3 3/23/2021 Recurring No 5.25 6/22/2021 Recurring No 6 7/14/2021 Recurring Yes 7.5 7/14/2021 Recurring No 9 8/26/2021 Recurring No 10.25 10/10/2021 Recurring No 8.75 8/24/2022 Recurring No 11.25 10/10/2022 Recurring No 5.5 3/9/2023 Recurring No 11.5 6/20/2023 Recurring No 12.25 7/19/2023 Recurring No 7.25 8/23/2023 Recurring No 9.75 10/9/2023 Term Yes 30 2/5/2024 Term No 9.5 8/21/2024 Recurring No 9.5 10/7/2024 Term Yes 30 10/25/2024 Term Yes 7.5 8/5/2025 REQUIRED Total Tested: 90 hours REQUIRED Total Not Tested: 60 hours Hoover State Office Building 1 1305 E Walnut Street I Des Moines, IA 50319 1 515.281.3114 or 800.367.3388 1 revenue.iowo Item Number: IP3. a CITY OF IOWA CITY "QR T-4 COUNCIL ACTION REPORT September 11, 2025 Work Session Agenda Attachments: September 16 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 r 1 Agenda; Work Session'�'��� September 16, 2025 - 4:00 PM CITY OF IOWA CITY Emma J. Harvat Hall 410 E. Washington Street www.icgov.org City of Iowa City Land Acknowledgment can be found at: icgov.org/landacknowledgement Meeting Rules can be found at: icgov.org/meetingrules You can watch the meeting on cable channel 4 (118.2 QAM) in Iowa City, University Heights and Coralville, or you can watch it online at any of the following websites: • https:Hcitychannel4.com/live • https://www.youtube.com/user/citychannel4/live • https://facebook.com/CityoflowaCit Following the 4:00 PM City Conference Board meeting 1. Clarification of Agenda Items 2. Information Packet Discussion [September 4, September 11] Council direction needed on the following items: 1. (9/11) IP6 - Letter to Governor Reynolds and Director Paulsen: Announced Closure of the State Historical Society of Iowa Research Center in Iowa City 3. University of Iowa Student Government (USG) Updates 4. Update on the City's Study of Repositioning Public Housing Units 5. Strategic Plan Action Item: Presentation on Bollards and Bike Lanes 6. FY27 Budget Priorities 7. Council updates on assigned boards, commissions, and committees Item Number: IP4. a CITY OF IOWA CITY "QR T-4 COUNCIL ACTION REPORT September 11, 2025 Memo from City Manager: City Council FY 2027 Budget Priorities Attachments: Memo from City Manager - City Council FY 2027 Budget Priorities r 111pL CITY OF IOWA CITY MEMORANDUM Date: September 11, 2025 To: City Council From: Geoff Fruin, City Manager Re: City Council FY 2027 Budget Priorities Planning for development of the Fiscal Year 2027 budget is underway and departments have started to prepare capital and operating budget proposals. Each year, staff requests that the City Council share any new budget priorities early in the budget process to ensure staff can pursue funding strategies and balance other demands on financial and labor resources accordingly. Identifying new shared priorities at this early stage helps avoid more difficult changes to the budget during Council's formal budget review in in early 2026. Absent alternative direction, the City Council can assume that staff will prioritize core services and Strategic Plan priorities. Current Budget & Fiscal Climate The fiscal environment facing Iowa City is the extremely challenging, due in a part to numerous property tax reforms enacted by the State. FY2024 marked the end of several phased property tax reforms passed by the State in 2013 which drastically reduced taxable valuations for multifamily properties from 100% taxability in FY2014 to 47.4% in FY2026. In 2021, the Iowa Legislature passed legislation phasing out commercial/industrial property tax replacement payments ("backfill") included with the 2013 property tax reform. As a result, Iowa City's backfill of $1.5 million has been phased out since FY2023, and the City will receive no backfill payments for FY2027. Finally, the State again passed property tax reform legislation in 2023 that phases out the voter -approved supplemental Library Levy ($0.27) and the Emergency Levy ($0.20) which previously supported our Climate Action efforts. Together, these levies generated approximately $2.1 million in revenue supporting Library and Climate Action operations that will now be phased out. To avoid cutting public services, these expenses must be absorbed into an already tight General Fund over the next few years. The cumulative result of these legislative impacts is that in FY2023 and FY2024, the City experienced a 0.8% decline in taxable valuation. While FY2025 had a modest 3.6% growth in valuations, the result was an average annual valuation growth of less than 1 % per year for those three years. In FY2026, taxable valuation increased a modest 2.3%, which falls short of the needed levels of growth to support status quo operations. While FY2027 is a valuation year which typically means higher growth in taxable values, recent property tax reforms also reduce the City's ability to capture increased valuation for our general fund. Looking to FY2028 and beyond, new construction has been tepid in 2024 and first half of 2025, which is a negative leading indicator for future valuation growth. Last year, the Iowa Legislature again proposed property tax reforms which would impact City revenues and is expected to pass them this year. September 11, 2025 Page 2 On the expense side, the City is experiencing costly impacts of the inflationary and labor supply pressures in our economy. The results are increased operating and capital expenditures and diminished purchasing power for critical infrastructure improvements and maintenance of public service levels. Pressures on both the revenue and expense sides paint a clear picture of difficult budget environments ahead in the upcoming fiscal years. Further budgetary pressures, such as additional property tax reform measures or an economic recession, could accelerate what could be unavoidable impacts to service levels in the coming years. This risk of diminishment of public service levels is only heightened by increasing demands for service as our population continues to grow. To provide more detail on the above noted pressures, the FY 2026 budget transmittal letter is attached to this memo. Local Option Sales Tax (LOST) One potential lever that could relieve pressure on the City's finances and help implement Council strategic priorities is a 1% Local Option Sales Tax (LOST). On November 4, voters will decide whether to adopt LOST for the following purposes: 50% for property tax relief 25% for affordable housing • 10% for maintaining and building public infrastructure such as streets, trails, and parks • 15% for partnerships that support arts, culture, social services, and economic development Should voters approve a LOST, staff will work with Council to determine specific allocations within these parameters. Budget Goals The FY 2026 budget included three goals (listed below). City Council may choose to continue prioritizing these considerations or identify new areas of focus for the FY 2027 budget. Ensure reliability of core services and infrastructure remains high while balancing cost impacts on residents and businesses. • Seek fiscal stability and maintenance of service levels despite compounding financial pressures due to state property tax reform and escalating costs of operations. • Continue to dedicate resources towards advancing City Council's Strategic Plan priorities and adopted Master Plans. Conclusion While the FY2027 budget is built on a strong foundation from past years of prudent financial decision - making, City is facing down the most challenging budgetary years in the last two decades. The ongoing phase -out of the Library and Emergency levies means that the City will need to continue to September 11, 2025 Page 3 absorb those operations into other levies over the next couple of years, and anticipated property tax reforms next legislative session mean some projects, such as the previously planned Fire Station #5, are no longer feasible. Despite these challenges, staff will work diligently to ensure core services remain strong, strategic plan priorities are well-resourced, our financial stability remains solid, while recognizing the financial pressures that residents and businesses face when determining our property tax needs. Staff will also review service charges and recommend adjustments as needed in a manner consistent with City Council's strategic plan. As previously noted, staff is projecting a 5% rate increase in wastewater to support the $42 million capital project that the City Council has authorized. While the FY2027 budget is being prepared and reviewed, the City will be negotiating a full collective bargaining agreements with AFSCME. The agreed upon economic matters will have significant bearing on future budgets. Staff looks forward to receiving any input the City Council has for the FY 2027 budget at this time. To the Honorable Mayor and City Council Members, It is my pleasure to submit Iowa City's operating and capital budget for the fiscal year ending in 2026 (i.e. FY 2026). Although Iowa Code only requires formal adoption of an annual budget, we have included a three-year financial plan (FY 2025-2027) and five-year Capital Improvement Program (2025-2029) for planning purposes. The budget is one of the most important documents the City prepares because it identifies the services provided and the mechanisms to finance those services. Any future modifications to this budget will be fully disclosed through formal City Council action at public meetings, in accordance with State of Iowa law. This budget aims to provide resources to deliver reliable and efficient municipal services, invest in critical infrastructure, further strategic plan priorities, and implement adopted master plans rooted in public input. The budget also contains prudent contingency line items and reserves which aid the City in weathering both unexpected expenditures and revenue shortfalls. The FY 2026 budget faces a challenging economic climate due to several compounding factors. Additionally, forecasts for the FY 2027-29 budgets indicate compounding financial challenges that make prudent budgeting decisions in FY 2026 even more important. Although I remain confident in the City's financial foundation, the budget keeps discretionary expenditure growth to a minimum. Resources are prioritized to support core service levels in critical areas such as public safety, transportation infrastructure, and public utility operations, while continuing to advance the City Council's Strategic Plan and implement adopted master plans. Fiscal Environment The current fiscal environment facing Iowa City is the most challenging since the 2008 Great Recession. State property tax reform laws passed in 2013 and 2023 have stressed the City's ability to continue delivery of core services to a growing community while maintaining investment in value -add activities and external partner organizations. At the same time, the City's growth in taxable valuation is not keeping pace with inflationary impacts on our services and infrastructure maintenance efforts. While the City's past prudent financial strategies have provided the City some flexibility in navigating the recent challenging environment, the effects are expected to continue to compound over the next few years. It is critical to understand these pressures and how the FY 2026 budget responds to short-term needs and positions for long-term fiscal stability. The largest impacts to the Iowa City's financial position are fueled by significant property tax reforms enacted by the State. These reforms affect the City's ability to continue providing critical public services. In 2013, the legislature adopted a major reform to reduce the taxability of multi- family properties over 11 years from 100% of the assessed property value to the annual residential rollback rate, which is 47.4% for FY 2026. As a result, the taxability of multi -family property more than halved with a cumulative loss of more than $30 million in revenue to Iowa City. The change also means that around 82% of the City's total assessed valuation is now subject to the annual volatility of the residential rollback rate. That rollback rate reached a near record low in FY 2025 and will remain at a historically low rate of 47.4% in FY 2026. 10 The 2013 legislation also introduced a rollback for commercial and industrial properties which reduced the taxability of that property class from 100% to 90% of assessed value. Unlike multi- family properties, the State "backfilled" this loss by providing approximately $1.5 million in revenue to the City each year. However, the State passed legislation in 2021 to phase out backfill payments over the following five years. For FY 2026, Iowa City expects to receive approximately $308,000 before backfill payments are fully eliminated in FY 2027. In 2022, Iowa passed another property tax law which converted the Business Property Tax Credit to a partial property tax exemption. To help local governments adjust to this change, the State budgeted for additional local government backfill payments equal to approximately $700,000 annually through FY 2029. However, the State's Legislative Services Agency projects that available funding for this backfill will fall short and incrementally reduce local government revenues. Another round of significant property tax reform was adopted during the 2023 legislative session. These changes consolidated several property tax levies into a Combined General Fund Levy and phases them out by FY 2029, if not sooner based on annual taxable valuation growth caps. In Iowa City, this affected the Library and Emergency property tax levies, which provided nearly $2 million in operating revenue as of FY 2024. Unless a reduction in service is desired, this loss in annual revenue must be absorbed into the General Fund. The 2023 reforms also expanded the Senior Homestead Tax Credit and created a new Military Service Exemption, which are estimated to reduce the City's total taxable valuation by over $27 million in FY 2026. Despite overall assessed value growth, the City's taxable valuation declined in consecutive years in fiscal years 2023 and 2024 as impacts from legislative reforms and state -mandated valuation rollbacks outpaced taxable growth. Even modest positive growth experienced in fiscal years 2025 and 2026 are insufficient to sustain current service levels in the long-term. The financial strain from these challenges is exacerbated by macroeconomic forces including inflationary and labor supply pressures that are increasing operating and capital expenditures and diminishing the City's purchasing power. Further budgetary pressures, such as additional property tax reform measures or an economic recession, could accelerate what is likely to be unavoidable impacts to service levels in the coming years. This risk of diminishment of public service levels is only heightened by increasing demands for service as our population continues to grow. The cumulative impact of the past property tax reforms will not be realized until FY 2029. Even so, property tax reform remains a stated top priority of the State Legislature. Impacts of said efforts are expected to be most pronounced on the General Fund, which provides for critical services such as Police, Fire, Parks and Recreation, Senior Center, and Library. Overall, property taxes make up around two thirds of General Fund revenue. It will be critical to keep a close eye on the General Fund over the next several fiscal years and consider expenditure reduction measures before the full impact of reform is realized. This budget maintains a flat overall property tax rate and adopts several rate and fee increases to ensure fiscal health and stability. The "Fiscal Year 2026 Budget Overview" section of this letter details the City's tax and fee rates and debt service strategy. The FY 2026 strategy highlights the need to continue building capacity in the debt service fund to maintain and expand critical if infrastructure in the face of diminishing purchasing power resulting from inflationary impacts on capital projects. Unfortunately, the strategic plan goal to increase the Emergency Fund balance by 5% annually is not met with the FY 2026 budget for the third year in a row. The Emergency Fund balance is currently around $5.4 million. Similarly, there is no budgeted transfer to bolster the Facility Reserve, another strategic plan goal. This fund is expected to be mostly depleted in FY 2026, which means the City will have to more heavily rely on debt to fund critical facility projects going forward. Prioritizing Core Services The primary focus of this budget is to ensure the City can maintain core service levels and responsibly fund infrastructure and equipment repairs and replacement. This year's budget focuses on providing the resources to support the City's current level of service provided while keeping up with increasing demands. Given the aforementioned financial pressures, only two new positions are being proposed to the City Council for the first time including a maintenance worker in the Water division and a mechanic in the Equipment division. These two positions are not solely dependent on property taxes and are critically needed to maintain existing service levels. The Capital Improvement Program (CIP) outlines routine improvements in addition to larger projects. More than $4 million is planned each year for annual transportation system improvements such as pavement rehabilitation, bridge repair, bicycle accommodations, traffic signals, traffic calming, parking ramp restoration, and curb ramp enhancements. Another $800,000 in annual funding is planned for regular utility system improvements, including undergrounding utilities and sewer main replacement. The budget also includes several major projects for 2025-26 to maintain critical infrastructure, including the Court Street and N. Gilbert Street reconstruction projects, Bradford Drive Water Main Replacement, and Collector Well #1 reconstruction. Various water, sewer, stormwater, landfill, park, and public facilities projects are also scheduled in accordance with replacement and maintenance needs. Inflation and labor shortages continue to have significant impacts on operations, as well as project budgets and completion timelines. Rising insurance premiums continue to significantly impact the budget. Liability insurance is projected to increase 15% in FY 2026 after increasing nearly 16% in FY 2025. Similarly, Fire and Casualty insurance is projected to increase 35% in FY 2026 after increasing 23% in FY 2025. These significant market adjustments in the insurance industry have increased costs by more than $875,000 in fiscal years 2025 and 2026. As these essential costs consume more of the tightening available resources, investment in value -add programs and services must be adjusted accordingly. Implementing City Council's Strategic Plan G r RACIAL EQUITY, I OCIALJUSTICE, City Council's Strategic Plan outlines the values, impact areas, and • 2HUMAN RIGHTS 0, CLIMATE ACTION resources needed to execute the identified goals. Embodied in every ® PARTNERSHIPS - element of the Strategic Plan, and within this budget, are three values IVENGAGEMENT that represent the lens through which we approach our work and the four 12 areas of community impact in which the work will occur. The plan was reviewed and updated in December 2024 to reaffirm its vision and strategies, account for changing circumstances, and further focus desired action steps. The following section highlights major actions incorporated in this budget that helps implement this plan. Fare -Free Transit Fare -free transit has been a notable success with passenger trips increasing by more than 40% in the first year and continued robust growth in year two of the pilot offering. The public also indicates improved experiences with transit. In a representative survey of community residents in the fall of 2024, 76% rated the quality of transit service as good or excellent, an increase of 13% since the last community survey taken in 2017. This level of satisfaction is much higher than peer city comparisons. As a result, the FY 2026 budget continues to lay the financial foundation necessary for a zero -fare system after the current pilot project sets to expire in August of 2025. The first step, taken in FY 2025, included increasing several parking -related fees and citations, in addition to the hourly cost of parking decks and on -street meters. The combined impact is expected over time to bring in more than $2 million in new revenue annually, a significant portion of which is projected to support continuation of fare -free transit in the coming years. The next step this year is a 1 % gas and electric franchise fee increase to 2% total. This will generate an estimated $1 million annually and will aid in the equipping and operation of the transit system. However, the utility tax revenue may not grow at the same rate as ongoing operational expenses, so additional sources of funding may be required in the future. The long-term commitment to fare - free transit, combined with the planned construction of the new transit building, will ensure our community has one of the most robust and accessible transit systems in the country. Affordable Hotrsing Another key focus is addressing the housing affordability crisis, especially for low-income residents, as evidenced by substantial progress towards our Affordable Housing Action Plan. The FY 2026 budget includes a $1,000,000 General Fund transfer to the Affordable Housing Fund. Allocations from this fund support the Housing Trust Fund of Johnson County, Low Income Housing Tax Credit (LIHTC) projects, CommUnity security deposit program, Healthy Homes program, landlord risk mitigation, the winter shelter, and emergent situations. This budget also allocates funds to continue support for the Shelter House Street Outreach partnership. The FY 2026 budget also helps implement the nearly $3.8 million Pathways to Removing Obstacles to Housing (PRO Housing) federal grant. Projects include a Comprehensive Plan update to promote housing choice, initiation of a housing counseling program, and an evaluation to help the Housing Authority establish a development arm. At the same time, the City will evaluate repositioning its Public Housing program to improve its financial sustainability while facilitating growth in the City's publicly owned housing stock. The City will continue to explore the best way to support these efforts using previously generated funds for affordable housing totaling more than $7 million. These astutely created supplemental revenue streams such as fee -in -lieu payments, tax increment financing, and federal grants help further expand capacity for affordable housing investment despite tightening property tax revenues. 13 Public Facilities The FY 2026 budget maintains an aggressive investment in public facilities to support short and long-term service delivery. New, expanded or renovated facilities that are funded in the plan include the Senior Center, transit building, equipment building, wastewater digester complex, landfill compost facility, Animal Shelter training annex, City Park pool and more. Public facilities projects are supported in part by the Facility Reserve Fund, which built up financial capacity over the last several years. However, no FY 2026 transfer is planned for the Facility Reserve Fund, which is now expected to draw most of its fund balance down to support the construction of City Park Pool. The goal is to replenish the Facility Reserve Fund in the future if that becomes possible due to unanticipated surpluses, though that seems unlikely in the short-term given current fiscal challenges. This will place more pressure on debt as the primary funding source for public facilities in the foreseeable future. In addition, this budget continues to address anticipated public facility needs as the community and demand for services grow. The City is evaluating possible sites outside of City Hall for the relocation of Fire Station #1. Similarly, there is close coordination with the Johnson County Sheriff's Office on studying whether a joint facility will be an effective solution to meet the need for a new police station. Finally, the City is considering alternatives to accommodate employee space needs at City Hall. This may include purchasing or leasing space off -site as a stopgap measure to provide more suitable work environments for staff until a more comprehensive solution is achievable. Personnel The macroeconomic headwinds and continued State mandated property tax reform significantly limits the City's ability to add personnel with the FY 2026 budget. However, this budget does introduce two new positions which support the quality provision of core services. This includes a new mechanic position in the Equipment division and new maintenance worker in the Water division to ensure the maintenance demands of our City equipment and infrastructure are met. These positions relate directly to the City's Strategic Plan by keeping core services operating. However, many other operations are also in need of additional resources to support our growing community. The City must keep core staffing and resource needs in sight as those investments will be needed if and when budgetary resources allow. Additionally, we are fortunate to add additional positions which are only made possible due to the support of grant funding, including federal funding to our Housing Authority. These include the new housing program assistant added in the FY 2025 budget, and two positions funded through the PRO Housing grant awarded to the City in 2024: a senior housing developer and housing counselor. Both positions are necessary to further the City's affordable housing goals in the Strategic Plan but will need to generate revenue to continue after grant funds are expended. Supporting Master Plans This budget provides funding to support continued implementation of various City Master Plans. Over $31 million in the five-year Capital Improvement Program is budgeted for parks and 14 recreation projects, many of which implement the Parks & Recreation Gather Here Master Plan. The FY 2026 budget includes funding for shelter and restroom replacements at City Park, softball field renovations at Napolean Park, playground replacement at North Market Square Park, and new park amenities at Palisades Park. Funding is also provided in fiscal years 2025 and 2026 for the replacement of City Park Pool and for the initial step towards establishing a new park west of Highway 218. This budget also continues implementation of the Bicycle Master Plan through annual multimodal investments in our transportation network. The Climate Action Plan also remains a priority, despite the State's elimination of the Emergency Property Tax Levy which previously funded climate operations. This budget continues incorporating Climate Action activities in the General Fund to help achieve our climate action and adaptation goals. Sustainability programs in the FY 2026 budget include over $300,000 for residential energy efficiency grants, HERS grants to homebuilders, community climate action grants, implementation of the resilience hub program, and additional programs, partnerships, and events. The City's sustainability efforts are also incorporated into other various master plans and capital projects such as tree plantings, prairie management, fare -free transit, multi -modal roadway improvements, and waste reduction programs. Exercising Caution with Service Expansion and External Funding Support While the FY 2026 budget invests in implementing Council's Strategic Plan and supporting master plans, it also seeks to exercise appropriate caution by limiting service expansion plans, holding external organizational funding flat, and shifting expenses away from property taxes to other suitable options. This is in direct response to the pressures of the current fiscal environment and uncertainties created by continued property tax reform. These pressures are expected to compound over the next few fiscal years, so exercising restraint and caution today will help avoid what may be more significant cost reduction steps and negative service impacts in the future. Most notably, this budget delays the pursuit of Fire Station #5 as it is clear that the City cannot financially support the service expansion in this budget environment. To support future staffing needs, the fiscal year 2024 and 2025 budgets included the over -hiring of two firefighter positions in addition to $700,000 in contingency for future positions. While the FY 2026 budget maintains the two over -hire positions, the contingency for future positions is reduced to $300,000 to help shrink the annual General Fund deficit, which is projected at $2.8 million. The City will continue to evaluate the feasibility of a new fire station as the effects of property tax reform become clearer, but in the meantime, we will continue to provide exceptional fire protection and emergency medical services with a four -station foundation. The FY 2026 budget also makes changes to the funding source of several value -add investments. The budget proposes a $1,000,000 General Fund transfer to the Affordable Housing fund rather than the $1,030,000 provided in FY 2025. This reflects a modest reduction in expenses from the property tax dependent General Fund to ease pressure on the deficit and forestall municipal service reductions. The City may explore removing the LIHTC match from the distribution model in the future and instead shift support of LIHTC projects to tax increment financing. Similarly, property tax support for the City's Human Rights grant program is projected to drop $25,000 to a 15 total of $75,000. The reduction in property tax support can be backfilled through use of funds in the City's Black Lives Matter account, which has a current balance of over $620,000. In addition, this budget maintains the vast majority of external organization support at a flat level, including the Aid to Agencies social service grant program ($770,000), which is the same amount as FY 2025 but still marks an increase of nearly 97% over funds provided in FY 2019. No new arts and culture partner funding commitments are recommended and existing fundings levels are also held flat. Small reductions in spending lines that support public art, historic preservation grants, housing rehabilitation, and economic development programs are included in this budget. Staff projects an increasingly difficult budget environment through FY 2029. If expenditures are not curtailed and addressed gradually, more drastic and impactful reductions may be required in the forthcoming fiscal years. Budget Impacts and Financial Goals This budget was developed within the context of several significant financial impacts discussed previously: The continued phase out of the commerical and industrial backfill from the State of Iowa which was previously approximately $1.5 million and is projected to be only $308,710 in FY 2026 before being fully eliminated in FY 2027. The elimination of the Emergency and Library levies and additional growth restrictions on municipal budgets due to the 2023 State of Iowa property tax reform legislation. The two levies totaled $0.47 per $1,000 of taxable property valuation and will be manditoraly phased out of the combined General Fund levy by FY 2029. Previously, these levies generated approximately $2 million annually to suport Library and Climate Action programs. Financial Goals Ensure reliability of core services and infrastructure remains high while balancing cost impacts on residents and businesses. Seek fiscal and operational stability levels despite compounding financial pressures due to state property tax reform and escalating costs of operations. Continue to dedicate resources towards advancing City Council's Strategic Plan priorities and adopted Master Plans. • The continuation of a historically low residential rollback rate, following the sharp drop of 8.3% in FY 2025 which was the single largest drop since the late 1970s. The impact is particularly significant for Iowa City as multi -family properties are now classified as residential due to the 2013 property tax reform law. • Economic inflation, higher costs for goods and services, sky -rocketing property and liability insurance costs, and ongoing financial impacts caused by the pandemic and associated economic recovery. In light of these impacts, budget preparation was guided by three financial goals that seek to establish a sound fiscal strategy for the next year and beyond. The budget prioritizes maintenance of core service levels in light of heightened financial challenges. It accomplishes this through mild utility rate and fee increases to help address acute needs in core service areas while maintaining a stable property tax rate. This budget responds to the 2013 and 2023 State of Iowa property tax reform laws while also confronting macro -economic impacts, such as higher inflation for service 16 provision and capital projects and a challenging interest rate environment. Overall, expense in the General Fund is held to 3.5% growth, well below the status quo cost of personnel and operations. Despite expenditure reductions, the 3.5% growth outpaces the growth in property tax receipts for the fifth consecutive year. Finally, the budget focuses resources on continuing progress towards City Council's Strategic Plan goals and adopted Master Plans, despite the strong financial headwinds anticipated in the next few years. Fiscal Health and Outlook Iowa City benefits from a strong local economy anchored by the presence of the University of Iowa and University of Iowa Health Care. The local economy consists of a diverse set of successful industries that help sustain one of the most consistent stretches of low unemployment rates in the nation. The City of Iowa City has a long tradition of responsible budgeting policies which has created a strong financial foundation that helped the community weather recent budget challenges and economic downturns while sustaining top-notch service delivery. In 2024, Moody's Investors Service reaffirmed its highest quality bond rating (Aaa) for the City's general obligation debt. Moody's noted factors that could negatively impact the City's bond rating include a substantial and sustained reduction in reserve funds or large growth in debt leverage. Iowa City's bond rating is the product of "exceptional budget management practices, policy credibility and effectiveness, and transparency and disclosure" (Moody's Credit Opinion May 2024). Ultimately, our strong financial position lowers the cost of borrowing and ensures more of our dollars go towards service delivery and Strategic Plan priorities, rather than interest payments. Iowa City was one of only 3 cities in Iowa and among 12% of cities nationwide to receive a Aaa Moody's rating in 2024. Iowa City has many attributes that attract new residents to our city. A strong job market, good schools, world class healthcare, and diverse cultural amenities all contribute to the desirability of our area for families, retirees, and young professionals to make their permanent homes. New residents, including students, bring a social and economic vibrancy that defines Iowa City. However, population growth has a profound effect on service delivery, land use, and housing affordability. Growth creates additional service demands and stresses transportation and utility infrastructure. All of these challenges must be acknowledged and managed for Iowa City to retain its attractiveness and competitiveness. Prior to the pandemic, strong growth in our tax base allowed the City to absorb the necessary expenditure increases that accompany population growth and devote significant resources to new programs while weathering the implementation of the State of Iowa's 2013 ten-year property tax reform legislation. This shifted somewhat in fiscal years 2023 and 2024 when the City's tax base shrank due to a plateau in post -pandemic development activity, large valuation rollbacks, the elimination of State backfills, removal of property tax levies, and creation of new and expanded homestead tax exemptions. Taxable valuation growth caps put into place in the 2023 property tax reform bill also make it unlikely that the City will be able to achieve enough growth to offset State - mandated property tax levy reductions as it had in the past. These pressures will compound through FY 2029 as the 2023 property tax reform law is fully phased into the budget. 17 While state property tax reform strains the City's primary revenue source, rising operational costs tied to inflation and growing service demands also create additional budgetary pressures. These factors make moving forward with cautious budgeting and strong reserves critical. Although the City benefits from a strong financial foundation, additional financial stressors such as inflationary pressures, an economic recession, new property tax reform legislation, natural disasters, or public health crises could tip the scales towards higher expenditure cuts, service level reductions, or reliance on new or expanded revenue streams. Fiscal Year 2026 Budget Overview The FY 2026 budgetary expenditures total $237,906,024. Of the total budget, $73,579,100 is for the General Fund and $65,940,345 is directed to Capital Projects. A breakdown of the budget by fund type is included in the chart below. Expenditure Comparison by Fund Type (FY 2026) excludes transfers $80:000,000 $60,000,000 $40.000,000 $20,000,000 General a FY2026 $73.579,100 Id Enterprise Special Revenue $66,683,229 $17,312,450 Debt Service $14,390,900 ,a Capital Projects $65,940,345 Property taxes and charges for services account for a majority of City revenues. The following table shows year -over -year changes in Iowa City's revenue across all funds. The 2.7% increase in property taxes is the result of the State increasing the residential property tax rollback percentage and growth in the property tax base. The 11.6% growth in other City taxes is primarily due to the proposed increase of 1 % in the utility franchise tax. Most other revenue categories include slight increases, apart from intergovernmental and other financial sources. However, larger swings are not atypical in those two categories as they are influenced by the timing of state and federal grants and debt sales. ComparisonAll Funds Revenue i FY2025 Revised FY2026 Budget Percent Change Property Taxes $ 68,821,500 $ 70,655,600 2.7% Other City Taxes $ 7,964,400 $ 8,891.100 11.6% Licenses & Permits $ 2,592,880 $ 2,652.800 2.3% Use of Money & Pro $ 3,292,385 $ 3,370,300 2.4% Intergovernmental $ 57,011,305 $ 55,219,942 -3.1% Charges for Services $ 47,411,737 $ 49,225,400 3.8% Misc. $ 11,772,761 $ 11,985,400 1.8% Other Financial Sources $ 50,296,475 $ 14.516.000 -71.1% Total $ 249,163,443 S 216.516,542 -13.1% The pie chart below displays revenue across all funds for the Fiscal Year 2026 budget. It demonstrates the reliance on property taxes and charges for services to support operations. 18 It is also imperative to consider how the All Revenue Sources (FY 2026 overall revenues and expenditures in this Misc. - budget will impact local households and 5% — otter Financial businesses. The property tax rate remains Sources P)%` unchanged at $15.63. Although this rate 1 /° represents a 12% reduction in our property Charges for tax rate since FY 2012, it is unlikely further Services 23% reductions will be possible in the coming years and failure to grow the City's tax base Other City Taxes, 4% Intergovernmental Licenses & Permits, 1% in the headwinds of continual property tax 25% reform efforts could force property tax rates Use of Money & Prop, 2% back upwards. Economic inflation has significantly impacted budgets while diminishing the City's purchasing power. To address some of these acute challenges, this budget includes several rate increases including a 3% water fee rate increase, a new $2.00 sticker fee per extra bag or bundle of yard waste outside of the yellow organics bin, a $5.00 minimum landfill yard waste fee, and a 1 % gas and electric franchise fee increase. Based on a flat property tax rate and the anticipated utility rate increases, a household with a $100,000 assessed home value will pay around $30 more per year (i.e. $2.54 more per month) in taxes and fees for basic City services in FY 2026 compared to the previous year, an increase of 1.5%. However, it is important to remember that assessed values of residential properties likely increased for most residents during reassessment years (odd numbered years). Other factors will also affect actuals, such as property tax credits or exemptions and participation in the City's low- income utility program which was enhanced in FY 2025. The following chart illustrates the estimated overall financial impact of tax and fee changes to Iowa City households. Note this does not reflect the 1 % utility franchise fee. The table uses $100,000 in assessed home value with no assessment change so the reader may easily calculate tax payments based on their own home value. Annual Financial Impact to Residential Households $2,500 $2, 000 $1,500 $1,000 $500 $0 ■ Property Taxes ■ Stormwater ■ Refuse a Sewer - 800 cubic feet ■ Water-- 800 cubic feet Total Percent Change FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 $900 $901 $869 $884 $848 $854 $724 $742 $54 $60 $60 $60 $60 1 $66 $66 $66 $229 $229 $240 $240 $276 $300 $312 $312 $433 $433 $433_ $433 $433 $442 $463 $463 $380 $399 $399 $419 $419 $436 $449 $462 $1,996 $2,022 $2,001 $2,036 $2,036 $2,098 $2,015 $2,045 0.6% 1.3% -1.1 % 1.8% 0.0% 3.0% -4.0% 1.5% 19 Property Tax Overview The taxable valuation of property subject to all levies in Iowa City increased approximately 2.3% in Fiscal Year 2026, and assessed growth increased approximately 0.9% over this same period. This follows a period of largely stagnant taxable valuations due to residential tax rollbacks imposed by the State which significantly reduced the taxable portion of certain residential properties. Prior to FY 2015, multi -residential properties were classified as commercial and taxed at 100% of assessed value. Since then, the taxable percentage of multi -residential properties dropped 3-4% annually and in FY 2024, the taxable percentage dropped over 9%. Multi - residential properties are now permanently taxed at the same rate as residential properties. While the 2013 property tax reform legislation provided significant benefit to multi -residential property owners, it places additional strain on the City's budget. 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% Taxable % of Residential Properties FY15 1 FY16 1 FY17 1 FY18 j FY19 , FY20 I FY21 � FY22 I FY23 FY24 Taxable % 95.0% 90.0% 186.3% 82.5% 78.8% { 75.0% 171.3% 167.5% 63.8% 54.7% Of Multi -Family I ofTaxabResidlential 54.4% 55.7% 55.6% 56.9% 55.6% i 56.9% 55.1 % 56.4% 54.1 % 54.7% u FY25 1 FY26 46.3% 47.4% 46.3% 47.4% With multi -residential properties now subject to the residential rollback rate, a higher percentage of the City's tax base is exposed to annual fluctuations set by the State. The FY 2025 residential rollback rate dropped 8.3% to 46.34%, causing a significant reduction in taxable valuation for residential properties. While the residential rollback rate increased 1.1 % to 47.43% in FY 2026, it is still far below residential rollback rates experienced throughout the last decade. The 2023 State of Iowa tax reform eliminated both the Emergency and Library property tax levies and added them to the General Fund levy, taking it from $8.10 to $8.57. However, State -mandated growth limitations forced this levy down to $8.40 in FY 2025 and capped it at that amount for FY 2026. The levy must be no higher than $8.10 by FY 2029 (although State growth limitations may lower it beneath $8.10 before then). This change, along with new property tax exemptions for seniors and military veterans, will further strain the City's primary revenue source in the future and place additional pressure on other property tax levies and alternative revenue sources. For FY 2026, the taxable valuation of property subject to all levies in Iowa City increased slightly by 2.3% while total assessed values grew by 0.9%. While new construction and higher property values pre -pandemic were sufficient to make up for the reduction in the taxability of residential and multi -residential properties, this will likely no longer be possible due to the State's caps on growth in taxable value implemented as part of the 2023 tax reform. The residential rollback rate increased slightly for FY 2026. However, it is still well below rates in the recent past. It is important to remember that property reassessments occur in a two-year 20 cycle. Typically, the City experiences a larger boost in taxable value in valuation years (odd years). FY 2023 deviated from that trend and the taxable valuation decreased, again due largely to a reduction in the taxable percentage of residential properties (including multi -family). These rollback impacts, combined with only modest new construction, led to another decrease in taxable valuations for FY 2024. The 3.6% taxable growth in FY 2025 was a positive step forward, and the 2.3% taxable growth in FY 2026 helps further, but these amounts still fall well short of needed levels of growth to support status quo operations that were experienced in the previous fiscal years of 2017, 2019 and 2021. As shown by the following chart, fiscal years 2023 and 2024 marked the lowest two-year total in taxable valuation change within the last ten years by a wide margin followed by modest increases in fiscal years 2025 and 2026. Total Property Tax Valuations & % Change over Prior Fiscal Year $5,000 10.0% v $4,000 F j 8.0% > o $3,000 'A 6.0% v $2,000 4.0% � m .� $1,000 _ 0.0% 0 $0 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 2.0% Tax Value (millions) $3,421 $3,543 $3,745 $3,923 $4,258 $4,396 $4,376 $4,360 $4,517 $4,619 Val %Change 7.50% 3.55% 5.72% 4.74% 8.54% 3.24% -0.46% -0.36% 3.61% 2.26% Despite these financial impacts, the FY 2026 budget is able to retain a stable property tax levy rate, which helps meet the goal of cost -containment for our residents and businesses. For eleven consecutive years ending in FY 2023, tax rate reductions were made possible by prudent debt strategies, operational efficiencies, and valuation growth. Notably, reductions in the debt service portion of the tax levy were achieved through debt restructuring and early bond retirement strategies, fueled by valuation growth. However, our debt service revenue is no longer keeping up with project costs in this inflationary market. To help meet the need, the debt service rate is increased slightly in FY 2026 to help maintain the investment impact of our Capital Improvement Program. This is offset by a reduction in the Employee Benefits levy. Property Tax Rate vs. Valuations $5,000 17 ai Z $4,000 16.5 � > o $3,000 '� $2,000 16 � v $1,000 155 ~ $0 15 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 Tax Value (millions) $3,421 $3,543 $3,745 $3,923 $4,258 $4,396 $4,376 $4,360 $4,517 $4,619 Val %Change 7.50% 3.55% 5.72% 4.74% 8.54% 3.24% -0.46% -0.36% 3.61% 2.26% Property Tax Rate 16.583 16.333 16.183 15.833 15.773 15.673 15.633 15.633 15.633 15.633 Rate %Change -0.41% -1.51% -0.92% -2.16% -0.38% -1.01% -0.26% 0.00% 0.00% 0.00% 21 The following table shows a detailed breakdown of the City's property tax asking for FY 2026 compared to the previous year. The total in property tax dollars levied by the City increases by 2.5% in FY 2026. Total property tax revenue is projected to be $71.2 million. This revenue source provides a third of total revenue and nearly two-thirds of general fund revenue, excluding transfers, in FY 2026. The following table also shows the increase in the Debt Service levy with an offsetting decrease in the Employee Benefits levy. Note that a property tax bill is a function of property value, the taxable percentage of the property as determined by the State, and local levy rates from all taxing bodies. Thus, most property owners' tax bills will still increase despite the City's stable tax levy rate. FY2025 FY2026 LEVIES Tax Rate Tax Rate Dollars Dollars per $1,000 per $7,000 General Fund Tax Levies: General $36, 792, 773 8.402 $37, 755, 850 8.402 Transit $4,160,117 0.950 $4, 269, 011 0.950 Tort Liability $1,578,392 0.360 $1,619,708 0.360 Subtotal: $42, 531, 282 9.712 $43, 644, 569 9.712 Agland Levy $3,861 3.004 $3,685 3.004 General Fund Property Taxes $42,535,143 $43,648,254 Special Revenue Levies: Employee Benefits $14, 644, 268 3.344 $14, 653, 761 3.261 Subtotal: $14,644,268 3.344 $14,653,761 3.344 Debt Service $11,636,020 2.577 $12,282,983 2.660 Total City Levy Property Taxes: $68, 815.431 15.633 $70, 584.998 2.57% 15.633 0.00% % Change from prior year 4.74% 0.00% SSMID Levy -Downtown $544,919 2.500 $543,274 2.500 SSMID Levy- South District $117,745 5.000 $117,597 5.000 Total Property Taxes $69, 477, 825 ---- $71,245, 869 Iowa City's tax rate reflects enhanced levels of public services (e.g. full-time fire department, senior center, human rights, fare -free transit service, etc.), unique state and federal mandates (e.g. Chapter 411 public safety pension contributions), a lack of alternative revenue sources (e.g. local option sales tax, gaming, etc.), and other factors such as a significant number of University of Iowa affiliated tax-exempt properties within the jurisdiction. Past efforts to reduce Iowa City's property tax rate have brought our community in alignment to the rates of other cities in Eastern Iowa. When compared to the ten largest cities in Iowa, Iowa City has moved from one of the highest tax rates in the state to the middle of the pack. Looking ahead, it is unlikely additional rate reductions will be possible in coming years, and rate increases could become necessary in response to the many competing financial stressors discussed throughout this transmittal letter. 0 Proposed FY2026 Municipal Property Tax Rates in Eastern Iowa North Liberty $11.69 Coralville $14.53 Iowa City $15.63 Davenport $16.61 Cedar Rapids $16.66 General Fund Overview General Fund Revenue Sources (FY 2026) The General Fund, which includes excludes transfers services such as police, fire, parks and recreation, library and general Licenses &Permits Other city 4% government, represents nearly one third of Taxes Use of Money & the total budget. General Fund operations 7% Property are largely supported by property taxes, Noperty Intergovernmental 2% Taxes which constitute approximately 65% of the Char es for Fees & 65°�a � g fund's total revenue. Services 2% Prioritizing General Fund expenditures is other Financing sot crucial considering annual salary and /oes benefit growth (3-5% annually), rising - General Fund Expenditures supply and material costs, and increased (FY 2026) service demands due to a growing excludes transfers population. The FY 2026 budget includes a 3.5% increase in General Fund expenditures (excluding transfers) over FY 2025, fueled mostly by non -discretionary Services items such as wages, employment 19% Contingency PersQnne! 1% benefits and necessary insurance costs. 75% Supplies This budget also increases personnel 3% expenditures by 3.8% with 5.5 new FTE ' Capital Outlay (from 650.95 to 656.45). Heightened 2% expenditures mostly reflect higher costs for providing services at current levels, rather than increasing levels of service. However, this is balanced by a 27.0% reduction in contingency funds. Over the past few years, the contingency fund was built up to accommodate anticipated staffing needs for a future fire station. However, financial uncertainty has made opening a new station impractical. In FY 2024 the City drew down General Fund reserves by approximately $4.5 million to support a land purchase in Downtown Iowa City. That acquisition is expected to be short-term as the City will look to lead on a public/private partnership that will build taxable value on the site. Similarly, fiscal years 2024 and 2025 drew down reserve from the Facility Reserve to support planned projects including the equipment building and reconstruction of City Park Pool. The planned reserve draw down will take the General Fund unassigned fund balance from the 42% level in FY 2023 to 34% in FY 2026. While this number is towards the upper end of the City's policy of maintaining a reserve balance between 25-35%, a close eye will need to be kept on this number in the future given the financial headwinds previously outlined. Enterprise / Business Fund Overview Enterprise or Business Funds refer to specific operations intended to be self-sustaining without the need for subsidy from property taxes or revenue sources other than fee collection directly 23 related to the operation. The budgeted revenues, expenditures, and corresponding fund balances of the City's enterprise funds are detailed in the following table. Each of the City's enterprise funds are in varying, yet stable conditions. The final column indicates the approximate health of each fund (AAA = Good, AA = Adequate, A = Needs Monitoring). Fund Estimated Revenues Transfers In Budgeted Expenditures Transfers Out Estimated Fund Balance 6/30/26 Restricted, Committed, Assigned Unassigned Fund Balance, 6/30/2026 Unassigned Balance as % of Rev & Trans In a m = v LL Parking 7,134,900 1,500,000 5,320.800 2,697,7010 2,966,307 1.118.236 1,848,071 21% A Transit 5,575,400 6,085,300 10,144,700 3,415,049 4,271,201 2,827,366 1:443.835 12% A Wastewater 13,665,000 5.365,100 13,718,400 7,591,600 23,062,909 1,385,268 21,677,641 114% A Water 13,030,800 3.410.474 10,864,300 7,536,474 12,080,447 962,302 11,118,146 68% AA Refuse 5,311,500 1 48.100 4,827,500 250,000 3,205,369 - 3,205,369 60% AA Landfill 8,596,300 1,445,700 6,650.400 1,700,000 26,341,592 22,297,226 4,044,366 40% AA Airport 456,300 100,000 426,100 93.554 272,358 205,322 67,037 12% A Stormwater 1,912,700 1,111,100 902.900 1 2,440,000 1,509,012 418,215 1.090,797 36% AA ICHA 13,677,700 13,828,129 1 30,700 1 7,116,360 1,363,537 5,752,823 42% 1 AA In response to current and anticipated pressures on many of the Enterprise Funds, this budget adopts a few rate and fee increases. Although some funds present stable or adequate positions, proactive, incremental increases to rates are included to avoid larger hikes when the fund is in a more critical condition. • 3% water rate increase (approximately +$1.12/mo. per household) • $2.00 new curbside yard waste sticker fee per bag or bundle if outside of organics bin • $5.00 minimum landfill fee for residential yard waste Additionally, this budget includes a 1 % gas and electric franchise fee to support the continuation of fare -free transit service after federal recovery funds are expended. This, in addition to increased parking related fines and fees implemented in FY 2025, should help support the ongoing health of the City's parking and transit funds. Capital Improvement Program Overview The capital budget for FY 2026 totals $65,940,345 in planned expenditures and the five-year CIP totals $236,678,795. The majority of CIP projects in the five-year period aim to improve the local transportation network, municipal utility system, and public parks and open spaces. The five-year program continues to reflect the City Council's priorities established in previous fiscal years. It is also informed by adopted master plans, data -driven road condition index analyses and long-term utility system plans. Since 2021 it has not Capital Improvement Projects by Category 2025-2029 ITS 0% Airport 5% Government_/ Buildings 1% Public Safety 8% 24 Landfill 3% been uncommon to see capital project budgets increase by 20% or more due to cost increases driven by labor supply, inflation, and supply chain disruptions. As such, we are buying less with our dollars and relying on reserves to keep projects moving forward without even more costly delay and disruption to the community. Each year, significant resources are committed to annual capital projects including water and sewer main improvements, vehicle replacements, roadway maintenance, facility projects, and curb ramp upgrades. Examples of recurring projects in this five-year Capital Improvement Plan include bicycle master plan implementation, annual tree plantings, bus stop improvements, and accessibility projects. Other examples of significant projects that align with Council priorities are budgeted in the 2025-2029 Capital Improvement Program (many span multiple years) include: • City Park Pool replacement • Fire Department apparatus replacement • Landfill compost pad expansion • Westside parkland acquisition • Equipment building replacement • Transit building replacement • Library carpet and furnishings • Animal Shelter training annex • River Street storm sewer • Highway 6 trail extension • Palisades Park buildout • Mercer Park shelter replacement • Dodge Street reconstruction • Benton Hill Park playground • Highway 1 & 6 / Riverside Trail • Market & Jefferson two-way conversion • Landfill northeast cell expansion • Landfill horizontal gas collectors • Harlocke Hill Park playground ■ Burlington Street bridge replacement Debt Service • Court Street reconstruction • N. Gilbert Street reconstruction • N. Dodge / ACT Circle signalization • Wastewater digester complex rehab • North Market Square Park playground • Columbarium expansion • Senior Center interior improvements • City Park shelters & restrooms • Napolean Park ball fields renovation • Collector Well upgrade • Carson Lake buildout • Taft Avenue reconstruction • Ground storage reservoir upgrade • Camp Cardinal pedestrian island • Iowa Avenue improvements • Napoleon lift station improvements • Benton Street trunk sewer • Water Plant treatment uogrades • Reno Street Park improvements • Tower Place ramp drainage repair • East elevated water storage • Wastewater plant upgrades Staff is projecting General Obligation (G.O.) bond issues of $14.29 million in FY 2025 and $13.83 million in FY 2026. The use of G.O. bonds is required to carry out the planned capital projects. This level of bonding projected is well below the thresholds established by the State and is consistent with Iowa City's debt policies. The State of Iowa limits city debt to no more than 5% of the total assessed value of taxable property within the corporate limits as established by the City Assessor. The City Council's Debt Management policy follows best practices for Aaa rated communities and aims to limit outstanding general obligation and tax increment revenue bonded debt to no more than 0.75% of total assessed property valuations. The budget anticipates outstanding debt of $65.7 million at FY 2026 year-end, which is approximately 0.77% of total valuations and equal to roughly 15.4% of the allowable debt level established by the State. 25 Iowa City's internal fiscal policy also specifies that the debt service levy shall not exceed 30% of the total property tax levy. The debt service levy in the FY 2026 budget increases $0.083 from the prior year and accounts for approximately 17.0% of the City's total levy. The following depicts outstanding G.O. and TIF revenue debt as a percentage of total valuations. General Bonded Debt Outstanding and Percent of Total Valuation 80 1.40% 70 I 1.20% p 50 1.00% G 0.80% H 30 0.60% c 20 _ . 0.40% 10 — - 0.20% 0 0 j FY17 j FYI FY19� FY20 , FY21 FY22 FY23 FY24 *FY25; *FY26' *FY27 0.00/° Debt (millions) 67 67 1 67 68 67 66 64 63 66 68 73 /. oVal .% 0 0.75%10.77%f 0.81%�+ * Projected Internal Service Fund Highlights Internal Service Funds serve needs that are internal to the City as an organization. These are non -budgetary funds and are an internal financing mechanism for operations such as vehicle replacement and information technology services. Expenditures made from these funds are charged back to departments. All funds are in good condition with healthy balances. Strong balances create reserves that can provide flexibility to deal with unexpected operational costs. Looking Ahead In summary, the FY 2026 budget is built on a strong foundation from past years of prudent financial decision -making. However, the City is facing down the most challenging budgetary years in the last two decades. State mandated property tax reforms including the latest elimination of both the Library and Emergency levies, new property tax exemptions for seniors and veterans, new growth limitations, the fully phased shift from commercial to residential taxability of multi- family properties, stagnating taxable property values, inflationary impacts on operational inputs, and volatile expenses such as property and liability insurance are just several of the variables creating significant headwinds on City finances. Threats of new property tax reform measures in upcoming legislative sessions could worsen conditions, as could a return to heightened inflation and threat of economic recession if macroeconomic forces dictate. The pressure placed by these challenges on many core City services and critical infrastructure projects cannot be understated. Because the City budget necessarily relies heavily on property taxes as a revenue source, it is imperative for the City to focus on economic development and smart growth of the City's tax base to ensure property taxes can support increased service demands and generally higher costs of providing services and maintaining critical public infrastructure. Diminished purchasing power due to inflation means a higher portion of operating revenues will be allocated towards existing services. Investments in new initiatives and 26 discretionary value -add projects are beginning to require new revenue streams for sustainability. The clearest example of this is our fare -free transit program, which cannot be maintained without the gas and electric franchise fee increase called for in this budget. The City Council and public should expect that similar approaches will be needed to execute larger discretionary spending desires or new service level initiatives. Capital investments outlined in this budget continue to largely focus on addressing critical infrastructure maintenance. As we look ahead, infrastructure expenses are rapidly outpacing growth in user fees and road use tax receipts. This means that a higher burden is falling to property taxes. The City will need to adapt accordingly in order to avoid falling behind on the progress we made over the last decade in addressing deferred maintenance with our streets, utilities, and parks. Adapting may mean increased borrowing or exploration of new funding sources to relieve property taxpayers, including a local option sales tax. Conclusion and Acknowledgements This budget document reflects Iowa City's focus on providing high quality municipal services in a fiscally responsible manner. It was crafted with guidance provided by the City Council through the recently updated 2023-2028 Strategic Plan and various adopted master plans. Although the City's financial condition is stable, property tax reforms and the current economic environment pose serious challenges and financial prudence is undoubtedly necessary to protect our financial standing and ability to deliver core services, especially as the challenges are expected to compound in the next few years. Overall, it is wise to make incremental changes now rather than dramatic changes in a few years. A strong financial foundation takes years to build, and Iowa City is fortunate to have such stability. However, that position can be compromised in a very short period of time without careful stewardship and restraint. In conclusion, I would be remiss if I did not acknowledge the efforts of our department directors, management team, and staff in submitting thoughtful and responsible spending plans for the coming year. I would like to specifically recognize the efforts of the Finance Department, led by Director Nicole Davies. Additionally, I would like to recognize the hard work and analysis of Assistant Finance Director Jacklyn Fleagle, Budget Management Analyst Angie Ogden, and Risk Management and Finance Assistant, Michelle Cook. Appreciation also is directed to Deputy City Manager Chris O'Brien and Assistant City Manager Kirk Lehmann who are central to the budget review team. The individuals noted above worked diligently as a team to pull this budget together and I am proud of the work they have performed to present you with this fiscally responsible budget. Sincerely, Geoff Fruin City Manager 27 Item Number: IP5. CITY OF IOWA CITY COUNCIL ACTION REPORT September 11, 2025 Pending City Council Work Session Topics Attachments: Pending City Council Work Session Topics �r :t�06IMARTth, CITY OF IOWA CITY UNESCO CITY OF LITERATURE PENDING CITY COUNCIL WORK SESSION TOPICS September 11, 2025 Currently Scheduled October 7: Joint work session with Johnson County Board of Supervisors to learn about and discuss permanent supportive housing efforts with partners at the Shelter House FY23-26 Strategic Plan Action Item Topics Requiring Council Discussion: • Explore legal steps to discourage or prevent bad faith and predatory property investors • 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 ■ Expand neighborhood -based programs such as mobile community social/recreation resources (fun patrol), nests or micro -hubs for kids/teens. • Develop and maintain cost recovery guidelines for programs and services that balance fiscal responsibility and equity. Other Topics • Discussion of board and commission appointment process • License plate reader technology discussion • Historic preservation incentive discussion ■ University of Iowa update ■ Sidewalk connection to Happy Hollow Park • Low Income Utility Discount Program (IP2 from 4.24.25) ■ Follow-up on post CPRB outreach plans Note: Some items on the Pending List may require staff research and information gathering prior to scheduling. Item Number: IP6. a CITY OF IOWA CITY "QF T-4 COUNCIL ACTION REPORT September 11, 2025 Letter to Governor Reynolds and Director Paulsen: Announced Closure of the State Historical Society of Iowa Research Center in Iowa City Attachments: Letter to Governor Reynolds and Director Paulsen CITY OF IOWA CITY w Jcgov.org Bruce Teague Mayor Mazahir Salih Mayor Pro Tom Megan Alter Laura Bergus Shawn Harmsen Josh Moe Oliver Weilein September 16, 2025 Governor Kim Reynolds Iowa State Capitol 1Ip07 East Grand Avenue DN Moines, IA 50319 Kraig aulsen Direct_ f the Department Iowa Stat Capitol 1007 East rand Aen Des Moines, 501 Re: Announced closure of the State Historical Society of Iowa Research Center in I_wa l Dear Hon ble Gove or Reynolds and Director Paulsen: On be of the City ncil of the City of Iowa City I am writing to express our de concern about t e decision to close the State Historical Society of Iowa esearch Center in I a City. The City and its residents believe that th oss of this facility, its lections, and the access it provides through reful curating of historical re rds and collections would be a detriment to ur community, our higher edu ional system and the students and faculty that contribute to its great succes the general public across the State of Iowa, and to the descendants of the digenous people of this land. The City of Iowa City utilizes the Iowa Ci State Historic Facility for a variety of purposes including conducting resea h requiring access to original documents that helps us educate the p tic about our unique cultural heritage in Johnson County. In this manner, thresources play a critical role in preserving not only our built history, but also t many historical activities and events that have been a part of our local and to history. The City has also contributed materials of historical value to the to Historical Society and have relied on the expertise of the staff to ensure t se documents and resources will be properly preserve. Finally, the City ofte efers residents and researchers to the facility who seek information th is uniquely contained in the collections of the State Historical Society of Iowa Research Center. As a City Council representing the people of one of Iowa's largest and growing population centers, our interest in this matter lies in much more than just impact to City gover 7 ent operations. We are also gravely concerned about the impact to our entire commu ' and take seriously the impact this facility closing would have to our neighboring cc unities arou Iowa, particularly in eastern Iowa. Here are just a few of those ncerns we respeclly ask you to consider. 1. For al Education and Research Opportunities. Iowa ty facility provides a valuab accessible, and user-friendly reshigh chool, undergraduate, graduate tudan tsand faculty interested in istory. With the University of Iowa an 'ts vibrant history. 2. Informal Ed ion and Research Oppohe Iowa City collection is a model for publi access to historical documifacts. Whether interested in genealogy,Comm nity history, orjust needincuriosity, people from allover the state benefit fro this facility. 3. Iowa's Rich Liters and Cultural Co ributions. A benefit to Iowa City, the University of Iowa, an the entire stal of Iowa, programs like the Iowa's Writers Workshop train and sup rt talented thors, some of whom take advantage of the State Historical Society to City f ility to research works of fiction and non-fiction alike. More than just books nd rticles, access to the current facility has helped inspire and inform screenplay d films. Not only does this provide a cultural boost to the state, but also an econ boost. 4. Iowa's Commitment to P sery g the History of its Citizens. This is our state history. It is precious and' is sacred. These artifacts are not just ours, but they belong to future generations a at unborn. ce they are lost, they are lost forever. It is our duty in the present to reserve them. T ' collection is currently being preserved and being made access' Is in the Iowa City fa ility, as is right and proper. 5. Iowa's Commit ntto Preserving the Hi ory of its First Citizens. The state, and in particular th Iowa City facility, have b n entrusted to protect artifacts and documents fr Iowa's indigenous peoples, in ding the Meskwaki. This is also our state history It is our duty in the present to prese a them. The City of Iowa ity respectfully requests that you reconsi r plans to close the facility and recommit to fu supporting those operations. At a minimu we ask for a pause and an opportunity f engagement on this matter. Further converse' n with all stakeholders will ensure that very path forward is fully explored and the decision at is made will be done so with full owledge of the alternatives and associated impa s. Thank you for your consider ion and we look forward to your response. City Mayor Bruce Teague, on behalf of the entire City Council t r -4 �� City Council Supplemental Meeting Packet CITY OF )OWA CITY September 16, 2025 Information submitted between distribution of the meeting packet on Thursday and 3:30 on Monday. Late Addition(s): 2.c. African Festival of Arts and Cultures Day Late Handout(s): IP6.. Revised Letter to Governor Re olds and Director Pauls 9.b. Rezoning - 611 Greenwood Drive: See Council Correspondence from Martha Norbeck 10,c, Partnership with Johnson County on a Joint Law Enforcement Facility: See Council Correspondence from David Sterling, Daniel Mill & Finch VanDyk September 16, 2025 City of Iowa City t i September 16, 2025 CITY Or IOWA Cm w .icgov.org CITY COUNCIL Bruce Teague Mayor Governor Kim Reynolds Iowa State Capitol 1007 East Grand Avenue Des Moines, IA 50319 Kraig Paulsen Director of the Department of Management Iowa State Capitol 1007 Fast Grand Avenue Des Moines, IA 50139 Re: Announced Closure of the State Historical Society of Iowa Research Center in Iowa City Dear Honorable Governor Reynolds and Director Paulsen: On behalf of the City Council of the City of Iowa City I am writing to express Mazatur sawn our deep concern about the decision to close the State Historical Society of Mayor Pro Toro Iowa Research Center in Iowa City. The City and its residents believe that Megan Alter the loss of this facility, its collections, and the access it provides through Laura Bergus careful curating of historical records and collections would be a detriment to Shaw. Harmsen our community, our higher educational system and the students and faculty Olin Moe Oliver Weaein that contribute to its real success, the general public across the State of 9 9 Iowa, and to the descendants of the indigenous people of this land. The City of Iowa City utilizes the Iowa City State Historic Facility for a variety of purposes including conducting research requiring access to original documents that helps us educate the public about our unique cultural heritage in Johnson County. In this manner, the resources play a critical role in preserving not only our built history, but also the many historical activities and events that have been a part of our local and State history. The City has also contributed materials of historical value to the State Historical Society and have relied on the expertise of the staff to ensure those documents and resources will be property preserved. Finally, the City often refers residents and researchers to the facility who seek information that is uniquely contained in the collections of the State Historical Society of Iowa Research Center. As a City Council representing the people of one of Iowa's largest and growing population centers, our interest in this matter lies in much more than just impact to City government operations. We are also gravely concerned about the impact to our entire community and take seriously the impact this facility closing would have to our neighboring communities around Iowa, particularly in eastern Iowa. Here are just a few of those concerns we respectfully ask you to consider. 1. Formal Education and Research Opportunities. The Iowa City facility provides a valuable, accessible, and user-friendly resource for high school, undergraduate, graduate students, and faculty interested in studying Iowa history. 2. Informal Education and Research Opportunities. The Iowa City collection is a model for public access to historical documents and artifacts. Whether interested in genealogy, community history, orjust needing to satisfy curiosity, people from all over the state benefit from this facility. 3. Iowa's Rich Literary and Cultural Contributions. A benefit to Iowa City, the University of Iowa, and the entire state of Iowa, programs like the Iowa's Writers Workshop train and support talented authors, some of whom take advantage of the State Historical Society Iowa City facility to research works of fiction and non-fiction alike. More than just books and articles, access to the current facility has helped inspire and inform screenplays and films. Not only does this provide a cultural boost to the state, but also an economic boost. 4. Iowa's Commitment to Preserving the History of its Citizens. This is our state history. It is precious and it is sacred. These artifacts are notjust ours, but they belong to future generations as yet unborn. Once they are lost, they are lost forever. It is our duty in the present to preserve them. This collection is currently being preserved and being made accessible in the Iowa City facility, as is right and proper. S. Iowa's Commitment to Preserving the History of its First Citizens. The state, and in particular the Iowa City facility, have been entrusted to protect artifacts and documents from Iowa's indigenous peoples, including the Meskwaki. This is also our state history. It is our duty in the present to preserve them. The City of Iowa City respectfully requests that you reconsider plans to close the facility and recommit to fully supporting those operations. At a minimum we ask for a pause and an opportunity for engagement on this matter. Further conversation with all stakeholders will ensure that every path forward is fully explored and the decision that is made will be done so with full knowledge of the alternatives and associated impacts. Thank you for your consideration and we look forward to your response. Sincerely, fLA I ity Mayor Bruce Teagu , behalf of the entire City Council ^r , N f,"ti w� CITY OF IOWA CITY ..icgov.org CITY COUNCIL Bruce Teague Mayor September 16, 2025 Governor Kim Reynolds Iowa State Capitol 1007 East Grand Avenue Des Moines, IA 50319 Kraig Paulsen Director of the Department of Management Iowa State Capitol 1007 East Grand Avenue Des Moines, IA 50139 it SP(o Late Handouts Distributed 9-IS-25 (Date) Re: Announced Closure of the State Historical Society of Iowa Research Center in Iowa City Dear Honorable Governor Reynolds and Director Paulsen: On behalf of the City Council of the City of Iowa City I am writing to express Mazahir SaGh our deep concern about the decision to close the State Historical Society of Mayor Pro Tern Iowa Research Center in Iowa City. The City and its residents believe that Megan Alter the loss of this facility, its collections, and the access it provides through Laura Bergus careful curating of historical records and collections would be a detriment to Shawn Harmsen our community, our higher educational system and the students and faculty Josh Moe Oliver Weilein that contribute to its great success, the general public across the State of Iowa, and to the descendants of the indigenous people of this land. The City of Iowa City utilizes the Iowa City State Historic Facility for a variety of purposes including conducting research requiring access to original documents that helps us educate the public about our unique cultural heritage in Johnson County. In this manner, the resources play a critical role in preserving not only our built history, but also the many historical activities and events that have been a part of our local and State history. The City has also contributed materials of historical value to the State Historical Society and have relied on the expertise of the staff to ensure those documents and resources will be properly preserved. Finally, the City often refers residents and researchers to the facility who seek information that is uniquely contained in the collections of the State Historical Society of Iowa Research Center. As a City Council representing the people of one of Iowa's largest and growing population centers, our interest in this matter lies in much more than just impact to City government operations. We are also gravely concerned about the impact to our entire community and take seriously the impact this facility closing would have to our neighboring communities around Iowa, particularly in eastern Iowa. Here are just a few of those concerns we respectfully ask you to consider. 1. Formal Education and Research Opportunities. The Iowa City facility provides a valuable, accessible, and user-friendly resource for high school, undergraduate, graduate students, and faculty interested in studying Iowa history. With the University of Iowa and its vibrant history. 2. Informal Education and Research Opportunities. The Iowa City collection is a model for public access to historical documents and artifacts. Whether interested in genealogy, community history, orjust needing to satisfy curiosity, people from all over the state benefit from this facility. 3. Iowa's Rich Literary and Cultural Contributions. A benefit to Iowa City, the University of Iowa, and the entire state of Iowa, programs like the Iowa's Writers Workshop train and support talented authors, some of whom take advantage of the State Historical Society Iowa City facility to research works of fiction and non-fiction alike. More than just books and articles, access to the current facility has helped inspire and inform screenplays and films. Not only does this provide a cultural boost to the state, but also an economic boost. 4. Iowa's Commitment to Preserving the History of its Citizens. This is our stale history. It is precious and it is sacred. These artifacts are not just ours, but they belong to future generations as yet unborn. Once they are lost, they are lost forever. It is our duty in the present to preserve them. This collection is currently being preserved and being made accessible in the Iowa City facility, as is right and proper. 5. Iowa's Commitment to Preserving the History of its First Citizens. The state, and in particular the Iowa City facility, have been entrusted to protect artifacts and documents from Iowa's indigenous peoples, including the Meskwaki. This is also our state history. It is our duty in the present to preserve them. The City of Iowa City respectfully requests that you reconsider plans to close the facility and recommit to fully supporting those operations. At a minimum we ask for a pause and an opportunity for engagement on this matter. Further conversation with all stakeholders will ensure that every path forward is fully explored and the decision that is made will be done so with full knowledge of the alternatives and associated impacts. Thank you for your consideration and we look forward to your response. Sincerely, Iowa City Mayor Bruce Teague, on behalf of the entire City Council Item Number: IP7. a CITY OF IOWA CITY "QR T-4 COUNCIL ACTION REPORT September 11, 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 Lr CITY OF IOWA CITY -T MEMORANDUM Date: September 10, 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 Topic I Source October HUD Point -in -Time Count: This is a required count I Institute for Community 31, 2024 November 14, 2024 conducted across the country of sheltered and unsheltered Alliances (ICA) people experiencing homelessness on a single night in https://icalliances.orgpit 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 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. h ud.gov//ro gram offices/public indi an housing/programs/h cv/dashboard Iowa City Area Association of Realtors (ICAAR): September 10, 2025 Page 2 January 2, 2025 January 21, 2025 February was $274,000 for a condominium (up 8.5%). However, the I https://icaar.org/market- median sales price per square foot only increased 8.3%, trends/ 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. 2-Bedroom Housing Wage: The National Low Income 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. Cost Burden: A household is considered housing cost burdened if it spends more than 30% of its income on 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 4, 2025 1 conducts a national, non -statistically valid survey of National Low Income Housing Coalition Out of Reach Report. https:/Inlihc.org/oor/stat e/ia 2023 5-Year American Community Survey Data by the U.S. Census Bureau https://data.census.govl table/ACSDT5Y2023.B2 5106?q=iowa%20city% 20cost%20burden%20b Y%20tenure&t=Owner/ Renter%20(Tenure) Cost of Constructing a Home-2024 by the builders about the cost breakdowns for a new single-family National Association of home. In 2024, the average finished area of a new home Home Builders (NAHB) was 2,647 square feet, and the average total sales price https-liwww.nahb.org/- was $665,298. Construction costs accounted for /media/NAHB/news- approximately 64.4% of the sales price. Meanwhile, the I and - finished lot cost was 13.7% of the sales price, while other I economics/docs/housin overhead costs — including financing, general expenses, g-economics- marketing, and sales commissions — made up another plus/special- studies/2025/special- September 10, 2025 Page 3 February 13, 2025 March 6, 2025 May 1, 2025 11.0%. This left an average of 11.0% which constituted profit. HUD Point -in -Time Count: This is a required count conducted across 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. 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 study -cost -of - con stru cti ng-a-hom e- 2024-'anua -2025. df Institute for Community Alliances (ICA) - 2025 not yet available. https://icaiiia nces.org/pit Iowa City Area about how long homes are listed for sale on the market. In Association of Realtors Feb. 2025, the median Days on Market (DOM) in Iowa City 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. Utility Expenses: The cost of utilities is an important (ICAAR): https://icaar.org/market- trends/ 2023 Iowa Water and component of monthly housing expenditures. The Iowa Wastewater Rates Finance Authority (IFA) recently funded a dashboard that Dashboard, allows public utility providers in Iowa to compare water and Environmental Finance sewer rates from FY23. For a residential customer using Center at the University 5,000 gallons of water and sewer service, Iowa City of North Carolina at monthly rate is $60.73 which is in the lowest 20% of bills Chapel Hill (UNC EFC): charged (the median in Iowa is $85.60). When a residential https://dashboards.efc.s customer only uses 4,000 gallons of water and sewer og.unc.edu/ia service, Iowa City's rate drops to the lowest 10% of bills charged at $50.30 (compared to the Iowa median of September 10, 2025 Page 4 May 15, 2025 May 29, 2025 June 12, 2025 $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 I 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 up 54.5% compared to April 2024 while closed sales are down 20% for that same period. This data suggests fewer buyers may be participating in the market. Household Size: Household size affects housing needs (ICAAR): https://icaar.org/market- trends/ 2023 5-Year American within a community. For example, larger households may I 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 https://data.census gov/ table/ACSST5Y2023.S2 501 ?g=iowafcit_yj-ia Fair Market Rents (FMR): Every year, the U.S. I FY 2025 Fair Market Department of Housing & Urban Development publishes I Rent for Iowa City, IA FMRs which estimate reasonable rental prices for housing https://www.huduser.go in specific geographic areas. It is considered a benchmark v/portal/datasets/fmr/fmr for rent affordability and is used by many affordable housing s/FY2025 code/2025su programs to establish maximum rents. Effective June 1, mmary.odn 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. September 10, 2025 Page 5 July 3, 2025 Price -to -Income Ratio: Every year, Harvard University I Joint Center for Housing publishes a State of the Nation's Housing report. One 1 Studies of Harvard metric it uses to quantify affordability is the Price -to -Income University, Ratio which compares the median sales price of existing https://www.ichs.harvar single family homes to the median household income within each housing market. A ratio of 3.0 (i.e. the median home sales price is 3 times the median income) is traditionally considered affordable. Higher ratios are considered less affordable. In 2024, the ratio for the Iowa City metro was 4.25, which is the second year in a row above 4.0. Since 1980, Iowa City has been primarily in the 3.0 to 3.9 range. July 31, Income Limits: Each year, the U.S. Department of 2025 Housing and Urban Development publishes income limits for federally assisted housing based on the Area Median Income (AMI) for each metropolitan area. Households earning less than 80% AMI are classified as low income, while those earning below 60% AMI are often prioritized for federally assisted rental housing. As of June 1, 2025, a 4- person household in Iowa City is considered low income if their annual income is below $94,550 (80% AMI). The 60% AMI threshold is $70,920 for a 4-person household. These limits represent a 3.1 % increase from 2024. d.edu/son-2025-price- to-income-map FY2025 Adjusted HOME Income Limits for Iowa, https://www.huduser.go v/ po rta I/d a to s ets/home, datasets/files/HOME In comeLmts State IA 20 25.pdf August 14, 1 Resident Mobility: Resident mobility shapes housing 1 2023 5-Year American 2025 markets by influencing demand, turnover, and Community Survey neighborhood stability. Younger adults, including university Data by the U.S. students and early -career professionals, move more Census Bureau frequently, while older adults tend to pursue more stable I https://data.census.gov/ housing. In Iowa City, only 45% of adult Gen Z'ers (aged table/ACSDT5Y2023.B0 18-29) lived in the same house the year before, compared 7001?q=iowa+city+pop to 79% of Millennials (aged 30-44), 89% of Gen Kers (aged ulation&t=Residential+ 45-59) and 93% of older generations (aged 60+). Mobility September 10, 2025 Page 6 August 28, 2025 Septem 11, 2025 Housing & Shelter Services. The United Way of Johnson and Washington Counties recently published a Community Needs Assessment, which includes an impact goal for everyone to have safe, stable housing that they can afford. One metric they tracked was the number of people seeking formal housing services or shelter. Their data indicates 2,194 people in Johnson County sought services in 2023. Approximately 26% were children under 18, 9% were youth aged 18-24, 50% were adults aged 25-54, and 15% were adults aged 55+. Note that many individuals facing housing instability utilize informal housing methods, so this data does not reflect the full needs present in the County. Poverty Status: Poverty status means a household's Stronger Together Community Needs Assessment, United Way of Johnson & Washington Counties, https://www.unitedwayi wQ-.-QLq/sites/unitedwayj we/files/cna2025-full.pdf 2023 5-Year American income is below the federal poverty threshold for its size, I Community Survey indicating they may struggle to meet basic needs. People I Data by the U.S. living in poverty often spend a larger share of their income on housing, which can lead to overcrowding, housing instability, or difficulty affording other necessary expenses. In 2023, 26.3% of Iowa City residents were determined to be below the poverty level. Much of this is due to Iowa City's large student population. Approximately 65.5% of those enrolled in undergraduate and graduate school were determined to be below the poverty level, compared to 10.6% of the remaining population. Census Bureau https: //data. cen sus. -govl table/ACS DT5Y2023. B 1 4006?g=iowa+city+pov ert+b +School+Enroll r � :!" —4 CITY OF I O WA CITY ., -a MEMORANDUM Date: September 10, 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) I (# in Top Preference Category) � Count* Dec `24 10,091 1,205 10,087 1,204) �j 10,035 (1,157) -- 1,688 of the 10,305, or 16.8%. have an Iowa Cit address -- Jan `25 1,627 (570) 1,614 (573) -- 452 of the 1,614, or 280ilo, have an Iowa City address -- 1,599 561 1,573 551 Feb `25 March `25 9,956 1,095 -April '25 8,913 1,095 Ma `25 2,349 1,115 1,557 541 June'25 2,459 1,117 1,552 535 Jul '25 2,481 1,119 1,548 533 Aug '25 2,492 (1,121) 1,548(535) Sep `25 2,499 (1,125) 1,546 (536) * Data source for monthly tracking is still being investigated Item Number: IP8. a CITY OF IOWA CITY "QR T-4 COUNCIL ACTION REPORT September 11, 2025 Memo from Transportation Services Director: Update on Bus Stop Improvement Program Attachments: Memo from Transportation Services Director - Update on Bus Stop Improvement Program r rr.,, ,. CITY OF IOWA CITY % 7l MEMORANDUM Date: September 11th, 2025 To: Geoff Fruin, City Manager From: Darian Nagle-Gamm; Transportation Services Director Re: Update on bus stop improvement program For the last several years, transit system improvements have been a central focus of the City's strategic plan, with three key areas of emphasis: service design and service levels, fare policy, and bus stop and pedestrian infrastructure. System improvements and bus stop amenities are essential for achieving the goal of 1.91 million riders by 2030. Enhancements such as shelters, pedestrian infrastructure, and accessibility features improve the overall rider experience, making public transit more attractive and convenient. Strategic investments in these areas ensure that bus stops are well -utilized and aligned with community needs, ultimately supporting increased ridership and advancing the City's mission to provide equitable, accessible, and sustainable public transportation. This memo provides an update on the City's bus stop improvement program, with a focus on the infrastructure component of transit system improvements. It outlines progress made before the pandemic, the subsequent pause in development, and future plans, reflecting the City's current strategic direction for public transit infrastructure. Before the COVID-19 pandemic, the City undertook efforts to enhance transit infrastructure through a bus shelter revitalization program. Between 2019 and early 2020, Phase I of this initiative was completed, resulting in the installation of three new shelters and the replacement of six outdated or inaccessible shelters. These new shelters were designed with accessibility, comfort, and safety in mind, featuring larger dimensions, benches, clear tempered glass, and solar -powered LED lighting. After the bus shelter improvement program commenced, the City launched the Iowa City Area Transit Study (ICATS), which provided guidance and recommendations for major transit system improvements. These recommendations resulted in a comprehensive transit system redesign in 2021 and subsequent service level adjustments in 2023 and 2025. During this time, bus shelter installations were paused to prioritize other operational needs and critical transit initiatives, such as the Fare -Free Iowa City pilot and the planning and design of a replacement transit facility. This pause also avoided unnecessary financial investments in transit stops that could potentially be altered due to during system changes. While the City has primarily focused on major transit service level and fare policy enhancements since completing the ICATS study, efforts have also been made to improve transit infrastructure, including bus stops. Phase II of the bus stop improvement program was initiated, which included installing a new shelter pad, crosswalk, and shelter on Scott Boulevard near Systems Unlimited. Planning also began for significant bus stop enhancements along the busy Muscatine Avenue corridor near Hy-Vee. These mid - block enhancements include a pedestrian refuge island, in -street yield -to -pedestrian signage, crosswalk, bus shelters, and innovative features such as convective (heated) concrete for winter maintenance, with construction expected in 2026. With transit system service level changes and post -pandemic staffing challenges beginning to stabilize, the City can refocus on bus stop and pedestrian infrastructure. This year, the City began collecting new data on bus stop boardings to guide future improvements —a resource that was previously unavailable. This data -driven approach will ensure that future shelter installations and other bus stop amenities are strategically placed for maximum impact. In late 2025, the City plans to issue a request for proposals for a consultant to conduct a system -wide assessment of bus stop infrastructure and develop a city-wide improvement plan. The goal is to create a comprehensive list of pedestrian and bus stop improvements that can be implemented in the coming years through the City's capital improvement program. Item Number: IP9. CITY OF IOWA CITY COUNCIL ACTION REPORT September 11, 2025 City Steps 2025 Highlights Attachments: City Steps 2025 Highlights City Steps 2025 Highlights Iowa City is an entitlement community that receives federal Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) funds from the U.S. Department of Housing and Urban Development (HUD). The five-year consolidated plan, known as City Steps, establishes community -identified housing and community development priorities to help to guide investment decisions for federal funds. CDBG and HOME funds are targeted to serve Iowa City residents that meet income eligibility guidelines. The following are examples of investments made during the five-year planning period of City Steps 2025: • Over $650,000 invested in down payment assistance to support 33 homebuyers through partnerships with other organizations such as Iowa Valley Habitat for Humanity, GreenState Credit Union, and Hills Bank. ■ Over $1.4 million invested in 82 homeowner and 3 renter rehab projects to preserve the city's housing stock. Over $1 million invested in public facility projects including shelters and neighborhood centers. ■ Over $650,000 invested in the acquisition of affordable housing that provided 16 rental units. ■ Over $260,000 invested in neighborhood improvement projects such as accessible curb ramps, trail connections, and playground improvements for income eligible areas of Iowa City. ■ Over $600,000 invested in public services including childcare and shelter. City of Iowa City DVIP/RVAP - CDBG Public Facilities DVIP/RVAP has been providing emergency shelter and services to victims/survivors of domestic violence since 1980. The City of Iowa City allocated CDBG funds to DVIP/RVAP to assist with the construction of a new non - congregate shelter that doubled DVIP/RVAP's capacity from 35 beds to 70 beds. With the opening of the new shelter in November 2024, DVIP/RVAP has sheltered 656 adults and youth during FY25, which is 288 more people than the previous year. - Kristie Doser, Executive Director of DVIP/RVAP The Housing Fellowship - HOME Rental Acquisition A family with 9 children, including a newborn, was in an untenable position in their housing and needed to find a new home immediately. Without this funding and the flexibility of City staff, this purchase would have been out of reach financially, and these children would not have had a home, affecting their lives permanently. - Simon Andrew, Executive Director of The Housing Fellowship Free Medical Clinic - CDBG Public Facilities CDBG funds helped us to create a new, ADA compliant double door egress with lighting for safety in our lower level. Our building does not have an elevator and the addition of this entryway allows us to utilize our lower level for more patient services. Budget restrictions would not have allowed us to complete this project, and we are so very thankful for the support. The addition of this doorway allows us to increase our capacity and better utilize our space. -Jennie Schmidt, Executive Director of Free Medical Clinic City of lowo City Shelter House - CDBG Public Facilities The City's investment in Shelter House's public facilities has ensured the health and safety of hundreds of the most vulnerable people in our community. The funds have helped to convert our existing geothermal heat pump system into a geothermal variable refrigerant flow system, increasing reliability and efficiency to ensure a safe and habitable shelter environment year- round for adults, children, and families experiencing the crisis of homelessness. City investment supported critical facility improvements that increased the safety, security, and accessibility of our Emergency Shelter facility. - Christine Hayes, Director of Development and Communication at Shelter House Iowa Valley Habitat for Humanity - HOME Down Payment Assistance Too often the high cost of housing forces low-income households to endure inadequate housing; the market simply prices them out of safe, decent, and affordable options. Yet for those families that manage to secure housing by using HOME funds, the opportunity provided by affordable homeownership is transformational. For example, one family secured HOME funds to use as down payment assistance on an Iowa Valley Habitat for Humanity home. The family of six left behind a two -bedroom apartment that was so cramped the oldest child slept under the kitchen table. Upon moving into their home, the children had their own space to study, a yard to host play dates, and stability to make life-long connections to their friends and neighbors. This opportunity afforded by HOME funds is the foundation that healthy and productive lives are built on. -Scott Hawes, Executive Director of lowo Valley Habitat for Humanity City of Iowa City Item Number: IP10. a CITY OF IOWA CITY "QR T-4 COUNCIL ACTION REPORT September 11, 2025 The Johnson County Board of Supervisors Minutes of the Joint Meeting with Iowa City Council, September 10, 2025 Attachments: The Johnson County Board of Supervisors Minutes of the Joint Meeting with Iowa City Council, September 10, 2025 THE JOHNSON COUNTY BOARD OF SUPERVISORS MINUTES OF THE JOINT MEETING WITH IOWA CITY COUNCIL SEPTEMBER 10, 2025 Chairperson Green called the Johnson County Board of Supervisors to order in the Johnson County Health and Human Services Building Conference Room at 5:02 p.m. Members present: V Fixmer-Oraiz, Jon Green, Lisa Green -Douglass, Mandi Remington*, and Rod Sullivan. City of Iowa City Council members present: Bruce Teague, Mazahir Salih, Megan Alter, Laura Bergus, Shawn Harmsen, Josh Moe, and Oliver Weilein. *Denotes electronic participation. Unanimous consent was granted for approval of the agenda. Public Comment - Clara Reynen, Iowa City, encouraged City Council to reject the joint entity proposal. She said the County should seek to pass the bond measure on its own and that more suitable locations exist for the City Police Department. She also expressed frustration that County Sheriff Brand Kunkel does not support a recently presented field mediation program intended to divert people from jail. She added the cultures of the County Sheriff's Office and City Police Department should remain separate. Leslie Carpenter, Iowa Mental Health Advocacy, said Kunkel supports diversion initiatives for those with mental health issues and the assisted outpatient treatment program located in the County. Carpenter expressed support for the joint facility and stated the City Police Department administration will operate separately from the County Sheriff's Office. Nix, Iowa City, wanted to be on record opposing the joint facility. City and County Space Needs Background and Introduction Kunkel reviewed the background of the need to address the jail facility and other events leading to the joint session. Geoff Fruin, City Manager of Iowa City, reviewed the background of the City's Police Department space needs. Presentation of Joint Law Enforcement Facility Feasibility Study by Shive-Hattery and OPN Michael Lewis, Shive-Hattery, Inc. (Shive-Hattery), explained OPN Architects, Inc. (OPN) could not send a representative to this meeting, but they said Lewis may speak for the team. Lewis reviewed options both the City and County explored independently. He said the team identified 16,000 square feet of joint space that could be saved and detailed into those areas. He added that sharing space could save the entities a combined $10.25 million, with final arrangements determining the exact savings for each entity. Presentation Outlining Formation and Operations of a Joint Law Enforcement Authority Deputy Civil Assistant County Attorney Ryan Maas outlined how an authority would be formed in accordance with the Code of Iowa including the makeup of the authority governing council. Maas said the City Council and County Board of Supervisors would each have votes on the articles of incorporation and site selection. As the meeting reached the agreed upon termination time of 6:30 p.m., Green said the County will make more time for further discussions with the City as needed. Adjourned at 6:35 p.m. Attest: Julie Persons, Auditor Recorded by Auditors Office: Eric Van Lancker, Deputy Auditor (Minutes) Item Number: IP11. CITY OF IOWA CITY COUNCIL ACTION REPORT September 11, 2025 Airport Commission: August 14 Attachments: Airport Commission: August 14 MINUTES DRAFT IOWA CITY AIRPORT COMMISSION August 14, 2025 — 6:00 P.M. AIRPORT TERMINAL BUILDING Members Present: Hellecktra Orozco (via zoom), Judy Pfohl, Chris Lawrence, Warren Bishop Members Absent: Ryan Story Staff Present: Michael Tharp, Jennifer Schwickerath Others Present: Adam Thompson, Matt Reed, Matt Wolford RECOMMENDATIONS TO COUNCIL: None DETERMINE QUORUM A quorum was determined at 6:04 pm and Bishop called the meeting to order. APPROVAL OF MINUTES Pfohl stated she reviewed the minutes and did not have any suggestions for changes. Pfohl moved to accept the minutes, seconded by Lawrence. Motion carried (4-0 Story Absent) PUBLIC COMMENT - None ITEMS FOR DISCUSSION / ACTION Lawrence moved that Pfohl be nominated as Acting Secretary for the meeting. Seconded by Bishop. Motion carried (4-0 Story Absent) a. Airport Construction Projects i. FAA grant projects — 1 . Runway 12/30 Displaced Threshold — Tharp stated that he didn't have any news on the Runway 12/30 project, but that he did have a contract amendment to increase the contract amount for the work order with Bolton & Menk by $6500 to cover the additional work needed for the installation of the signage at the runway intersection and for the extra coordination required with FAA Flight Ops on the flight checks for the lighting approvals a. Consider a resolution (A25-12) approving contract amendment with Bolton & Menk. Pfohl moved resolution #A25-12, seconded by Bishop. Motion carried (4-0 Story Absent). ii. Iowa DOT grant projects Airport Commission August 14, 2025 Page 2of4 1. T-hangar Building — Tharp stated that he and Thompson were discussion other options for funding for the hangar project. Tharp stated that the FAA will have reallocation program for infrastructure funding that hadn't been spent on time. Tharp stated that he expected the program to be highly political but that they still might take a shot with an application. Tharp stated that if they get it they have a project, and if they don't they maintain the current plans. Tharp stated that he wanted to work through if using the FAA funds up front and then going after state funds would be possible. 2. Wildlife Mitigation Study — Tharp stated the USDA is continuing their data collection. Bishop asked what they'd receive at the end and Tharp responded they would have a report showing what was seen and recommendations for mitigation. Tharp stated that they would be able to use the report as justification for asking for support for mitigation b. Airport "Operations i. Budget — Tharp stated he included the 8t" month data sheet for the solar array. ii. Management — 1. T-Hangar Rates 2025-2026 a. Consider a motion setting rates for the 2025-2026 term — Bishop recused for the item. Tharp stated that he examined the rates around and most places were the same. He stated Cedar Rapids was continuing their increases they began a few years ago with a 3% increase. Tharp stated he was recommending a 2.5% increase which was in line with the inflation index. Lawrence moved to approve a 2.5% increase, seconded by Pfohl. Motion carried 3-0 (Story absent, Bishop abstained) 2. Ground lease with McGrath Holdings LLC — Tharp stated that when the previous Toyota dealership had the lease the timing was in line with their sale of the business, and they let the lease expire rather than renew and transfer the agreement. Tharp stated that when McGrath inquired about updating the sign, he offered them the same lease that was previously active. Tharp stated the response was they weren't that interested in using the sign and instead suggested a lease in exchange for groundskeeping. a. Consider a resolution #A25-13 setting a public hearing on a ground lease with McGrath. Lawrence moved the resolution #A25-13, seconded by Bishop. Motion carried (4-0 Story Absent) 3. USAF Display Jet — Tharp stated that earlier in the week that he received a call from the Clinton Airport regarding the display jet and that Matt Reed the FBO Manager at Clinton was in the audience. Tharp stated that if the Commission wanted to move forward with Clinton that they do it very deliberately and publicly. Lawrence asked about what ideas Tharp had, and Tharp stated that he was hoping that in reaching out not they not only ask groups but also get Airport Commission August 14, 2025 Page 3of4 help in fundraising for a new display. Commission members discussed reaching out to veteran's organizations and by consensus agreed to move forward. Tharp stated that he would start reaching out to veterans' groups to let them know planning for this was in progress. iii. Events — Tharp stated that it's a busy month for the airport. Tharp stated that movie nights have had some of the best turn out they've ever had. Tharp noted that Young Eagles was this weekend. He stated that they had 60 signups and a waiting list and were struggling to get seats to make sure everyone signed up had a ride. Tharp stated they were getting things organized for the pancake breakfast as well. Tharp stated that Climate Fest was a weeklong event but they had one day which was going to be dedicated to solar power and the new solar array. Tharp stated that they would be giving tours of the array. 1. Summer of the Arts Movies (Aug 9) 2. Young Eagles (Aug 16th) 3. Pancake Breakfast (Aug 24) 4. Autocross (Sept 14, Oct 19) 5. Climate Fest (Sept 22) c. FBO / Flight Training Reports i. Jet Air — Wolford stated they've had tons and tons of traffic lately. Bishop asked about the UI helicopters and Wolford responded they did a flyover for a retiring member of the department. Wolford noted that they had a door proposal in the packet. Wolford stated that the proposal would call for Jet Air replacing the hangar door on hangar M, and the Airport Commission extending the ground lease for Hangar N as a trade for the cost of the work. Members agreed that the concept could move forward. Tharp noted that they would bring back an agreement for formal approval. d. Commission Members' Reports —None e. Staff Report — Tharp stated that he would be out of the office next week for the 4 States Conference. Tharp stated that last night he had attended an update meeting at Cedar Rapids over the proposed power plant that Alliant Energy had been proposed to build in Fairfax which was a couple of miles from the existing facility and in conflict with the proposed 3rd runway. Tharp stated that at this point the Airport and Alliant had been talking to each other and they were hopeful that the situation would be resolved. Tharp noted that he was watching things because if they did something that hurt the ability of Cedar Rapids to operate, that would have effects on Iowa City as well. i. 4 States (FAA Central Region) Conference — Kansas City (August 20-22) SET NEXT REGULAR MEETING — Set the next meeting for September 11, 2025. ADJOURN — Lawrence moved to adjourn the meeting at 6:30pm. Seconded by Bishop. Motion carried (4-0 Story Absent) CHAIRPERSON DATE Airport Commission August 14, 2025 Page 4of4 Airport Commission ATTENDANCE RECORD 2024-2025 TERM oo m o N N w cn 0) � 00 C0 N 0) � N W W W o o W N o � NAM E EXP. � cn cn cn cn Warren 06/30/26 X X X X X X X X X O/E X/E X X Bishop Christopher 06/30/29 X X O/E X X X O/E X X X X X X Lawrence Hellecktra 06/30/28 O/E X O/E X X O/E O/E X O/E X X X/E X Orozco Judy Pfohl 06/30/26 X X X X X O/E X X X X X X X Ryan Story 06/30/27 X X X X X X X X X X X X O/E Key. X = Present X/E = Present for Part of Meeting O = Absent O/E = Absent/Excused NM = Not a member at this time X/S = Present for subcommittee meeting O/S = Absent, not a member of the subcommittee Item Number: IP12. a CITY OF IOWA CITY "QR T-4 COUNCIL ACTION REPORT September 11, 2025 Climate Action Commission: August 4 Attachments: Climate Action Commission: August 4 MINUTES IOWA CITY CLIMATE ACTION COMMISSION AUGUST 4 — 4:00 PM — FORMAL MEETING EMMA J. HARVAT HALL PRELIMINARY MEMBERS PRESENT: Emma Bork, Jamie Gade, Ben Grimm, Zach Haralson, Nadja Krylov, Wim Murray, Brinda Shetty, Michelle Sillman, Robert Traer MEMBERS ABSENT: Michael Anderson, Angie Smith STAFF PRESENT: Sarah Gardner, Diane Platte, Anne Russett OTHERS PRESENT: CALL TO ORDER: Gade called the meeting to order at 4:00. APPROVAL OF JUNE 2, 2025 MINUTES: Haralson moved to approve the minutes, Krylov seconded, and the motion carried. ANNOUNCEMENTS: Action items from last meeting (staff): none Events: • Cooling station at National Night Out, Aug. 5, 5:30-8 p.m. - Wetherby Park • Volunteer Bike/Ped Count, Sept. 9-11 • Climate Fest, Sept. 19-25. Event descriptions and details at icgov.org/climatefest o Pop -Up Pocket Park, Sept. 19, 3:30-5:30 p.m., City Hall o Drive Electric Car Show, Sept. 20, 7:30 a.m.-noon, Farmers Market o Solar Energy Art Show and Tour, Sept. 22, 4-6:30 p.m., Airport o Tending Iowa's Land Read Aloud, Sept. 23, 10 a.m.-2 p.m., Lagoon Shelter House o Resilience Hub Hang Out, Sept. 24, 5-8 p.m., Bike Library o Film Screening, Sept. 25, 6:30-8 p.m., Dream City • Other events in the community (commissioners): none NEW BUSINESS: Discussed legislative changes pertaining to open meetings law training requirements and increased penalties. Currently state law requires the trainings for new appointees to boards and commissions, though the city is asking all appointees to participate in the trainings as a refresher and to ensure everyone receives the same baseline of information. • Open Meetings Laws Trainings: August 26, September 10, and September 24. Gardner will email commissioners with a reminder when sign-up portal reopens. Commission members were asked Climate Action Commission August 2025 Page 2 of 5 to send a certificate of completion to Gardner to keep on file. An email in agenda packet summarizes the necessity of Open Meetings law training. OLD BUSINESS: Comprehensive Plan Discussion with Anne Russett • Gardner invited commissioners to discuss issues of density, transportation, floodplain, and other comp plan considerations as they relate to climate. Russett answered questions that arose. • Commissioners discussed different approaches to density: a highly dense middle and less dense areas elsewhere vs. a mix of densities in all new development o Krylov suggested a highly dense center would create more pedestrians, a favorable outcome for climate o Traer suggested current bus system could be seen as a template for development, and the availability of free Cambus is a community feature that should be more known. o Sillman noted her neighborhood has mixed density, an environment that has desirability/advantages. Bike lanes are beginning to better serve the area, and there are green spaces and dining options nearby. o Haralson pointed out neighborhood centers on the map. Densifying around neighborhood centers would make the effort more deliberate than using vacant lots for upzoning (because vacant lots become available haphazardly). o Gardner summarized the emerging consensus as promoting medium density neighborhoods around employment center "nodes" and along bus lines connecting them. The Commission affirmed this description. • Commissioners asked Russett to define upzoning. Upzoning allows more intensity of development, i.e. single-family to multi -family or single-family to commercial. o Krylov asked how upzoning affects property values of adjacent properties. Russett noted no evidence of property values declining. Gardner asked whether consideration was generally given to character of the neighborhood, and Russett affirmed it was. o Gardner summarized the emerging consensus as are agreeable to upzoning if it is thoughtfully done within the character of the neighborhood. The Commission affirmed this summary. • Commissioners discussed land use along the river. o Gade voiced support for the current language that protects green space by the river. o Sillman described a community that thoughtfully designed streets around the flood zone, using natural areas as buffers. o Gardner asked commissioners to identify an area in town where green space and commercial space interact well. Krylov suggested not all commercial development should be allowed in the floodplain, but commercial development that is set back from the river and supports its enjoyment by cyclists and pedestrians could be beneficial. trails. Haralson identified Riverfront Crossings Park as a successful design in this regard in that it integrates the park as a buffer between the river, with a mix of residential and commercial development situated beyond it. Bork joined the meeting. Climate Action Commission August 2025 Page 3 of 5 o Commissioners discussed whether development in the 500-year floodplain should be allowed if the structures are raised one foot above flood level as is currently allowed, or should future development be prohibited from that area similar to the 100-year floodplain. Shetty asked Russett to describe best practices for cities similar to Iowa City regarding development along the floodplain. Russett shared it would be unusual to prohibit all development in the floodplain, but it is not uncommon to see cities try to transform previously flooded residential areas into parkland. Gardner described regulations that allow buildings in the floodplain if designed to allow floodwaters to flow through unimpeded and described efforts to adapt floodplain development to the changing climate. o Gade suggested the potential risks to residents such as having their property stranded residents during a flood might outweigh any benefit of building in floodplain, while for businesses that might be less of a concern. Krylov noted the expense of insurance. Bork asked to see a floodplain map. One can be reached via icgov.org/flood. The Commission looked at the floodplain map, noting the extent of impacted areas. Russett left the meeting. o Gardner asked commissioners if floodplain regulation should include creeks as well as rivers, noting historically cities have not regulated creeks in the same way but with increasing flooding seen in creeks, some long term planning could be necessary. Gade suggested talking to neighbors who live along creeks to work out areas of priority. Sillman asked how many creeks are in Iowa City, and expressed concern based on prior experiences in another community about residents being at risk as a result of being unaware of the flood history of their properties. o Gardner summarized the emerging consensus as moving toward treating the 500-year floodplain the same as the 100-year floodplain. Commissioners agreed generally, but decided to not make a formal recommendation on new development in the floodplain for lack of specialized knowledge but instead offered a set of considerations to guide future development: ■ How would insurance factor into cost? ■ To what degree can the city regulate the type of commercial and industrial development that could be allowed and factors related to potential downstream impacts from those entities in the event of a flood? o Gardner asked to return to the question of buyouts in terms of treating creeks similarly to rivers and if some distinctions should be made. Krylov asked about flood management in terms of regulating the flow of water versus regulating the development in the floodplain, and Gardner noted the management of rivers falls to the Corps of Engineers, while the management of structures in the floodplain falls to cities. Shetty asked about the number of residences potentially impacted by buyouts and how it might impact the current housing shortage. o Gardner summarized the emerging consensus as not pursuing proactive buyouts along the creeks but to consider buyouts for those properties similar to river -affected properties should they be impacted by flooding. The Commission affirmed this summary. • Commissioners discussed multimodal transportation. Climate Action Commission August 2025 Page 4 of 5 o Haralson noted that rail should be part of the mix in addition to bus, bike, and walking modes, to keep that discussion alive. • Commissioners discussed EV charging vision. o Traer advocated to keep chargers downtown but not add chargers to peripheral areas unless user is likely to stay (i.e. grocery shopping). o Krylov noted that Iowa City has the most charging stations of any city in Iowa and suggested adding charging stations to parks might be unnecessary, raising concerns about the costs of EVs. o Haralson asked how far into the future the plan is supposed to extend, and Gardner answered 10-20 years. o Sillman suggested EV chargers at workplaces makes sense in addition to multifamily dwellings and asked if there was a way for the city to encourage charging at workplaces. Gardner shared that climate action staff have also considered wither churches could be incentivized to host EV charging stations, as a building type that is widely distributed with parking areas that could serve neighborhood needs for charging during weekdays. o Gardner offered to share EV registration data pulled for the regional climate action plan with Commission members as well as current pricing information on EVs to help provide some context for future discussions and suggested continuing the discussion at the next meeting with a question as to how EV charging amenities might fit into the concept of the 15-minute city. Continued discussion of the prioritization scoring of Accelerating Iowa City's Climate Actions Plan was deferred to the September meeting. • Gardner suggested having nearly completed the prioritization scoring for the action items related to buildings, it could be possible to move more swiftly through the action items related to transportation. She asked Commission member to review the update provided on the transportation items and assign preliminary scores and note any questions on the score sheet provided in the agenda packet. PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA: • None RECAP: Confirmation of next meeting time and location: • Monday, September 8, 4-5:30 p.m. Emma J. Harvat Hall Actionable items for commission and staff: Gardner will send an email reminder to sign up for the Open Meetings training. Gardner will ask parking staff to follow up on Dubuque ramp EV charger issues. Gardner will share EV data that might be helpful for continuing the discussion. Commissioners will think about transportation items and how to score them. ADJOURNMENT: Sillman moved to adjourn, Shetty seconded, and the motion carried. Meeting adjourned 5:30. 4 Climate Action Commission August 2025 Page 5 of 5 CLIMATE ACTION COMMISSION ATTENDANCE RECORD 2024-25 CO l0 00 N F- N F- N W A Ul Ol co NAME TERM EXP. (n N W N V N � N N 0) N W N W N V N Ul N N N A N A A AAA A A cn cn cn cn cn cn cn Michael 12/31/2025 O/E X X X X X X O/E X X X O/E Anderson Emma Bork 12/31/2026 O/E X X X X O/E X Michal Eynon- 12/31/2024 O/E X X X X Lynch John Fraser 12/31/2024 X X X O/E O/E Jamie Gade 12/31/2025 X O/ X O/E X X X X O/E X X X E Ben Grimm 10/31/2026 O/E X X X X X O/E X O/E O/E X X Zach Haralson 12/31/2025 X O/ X X X X X X X X X X E Nadja Krylov 12/31/2026 X O/E X X X X X Wim Murray MiclAmerican X X X X O/E X O/E X X O/E X X Rep Michelle Sillman 12/31/20025 X X O/E X X X X X X X X X Brinda Shetty UI Rep O/E X X X X X X X X X X X Angie Smith 12/31/2025 X X O/E X X X X O/E X X O/E O/E Gabe Sturdevant 12/31/2024 X X X O/E X Robert Traer 12/31/2026 F X X X X X X X KEY: X = Present 0 = Absent 0/E = Absent/Excused NM= No Meeting * No longer on Commission