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HomeMy WebLinkAbout2025-10-30 Info PacketCity Council Information Packet CITY OF IOWA CITY Council Tentative Meeting Schedule IP1. City Council Tentative Meeting Schedule November 3 Work Session IP2. Work Session Agenda IP3. Pending City Council Work Session Topics Miscellaneous IP4. Memo from City Manager's Office: Housing Information October 30, 2025 IP5. Memo from Budget Management Analyst: Quarterly Financial Summary for Period Ending September 30, 2025 IP6. Memo from Grant Specialist: American Rescue Plan Act Update October 30, 2025 City of Iowa City Item Number: IP1. CITY OF IOWA CITY COUNCIL ACTION REPORT October 30, 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 October 30, 2025 Date Time Meeting Location 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 Tuesday, January 6, 2026 8:00 AM Special Formal (Organizational Meeting) City Hall, Emma J. Harvat Hall 410 E. Washington Street Tuesday, January 6, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, January 20, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Wednesday, January 21, 2026 2:00 PM Budget Work Session (CIP) City Hall, Emma J. Harvat Hall 410 E. Washington Street Tuesday, February 3, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, February 17, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, March 10, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, April 7, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, April 21, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, May 5, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, May 19, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, June 2, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, June 16, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, July 14, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, August 4, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, August 18, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, September 1, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, September 15, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, October 6, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, October 20, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Monday, November 3, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, November 17, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Tuesday, December 8, 2026 4:00 PM Work Session City Hall, Emma J. Harvat Hall 6:00 PM Formal Meeting 410 E. Washington Street Item Number: IP2. CITY OF IOWA CITY COUNCIL ACTION REPORT October 30, 2025 Work Session Agenda Attachments: November 3 Work Session Agenda Subject to change as finalized by the City Clerk. For a final official copy, contact the City Clerk's Office 356-5041 If you will need disability -related accommodations in order to participate in this program/event, please contact Kellie Grace at 319-356-5041, kgrace@iowa- city.org. Early requests are strongly encouraged to allow sufficient time to meet your access needs. Iowa City City Council - Work Session Agenda Work Session November 3, 2025 - 4:00 PM Emma J. Harvat Hall 410 E. Washington Street www.icgov.org CITY OF IOWA CITY City of Iowa City Land Acknowledgment can be found at: icgov.org/landacknowledgement Meeting Rules can be found at: icgov.org/meetingrules You can watch the meeting on cable channel 4 (118.2 QAM) in Iowa City, University Heights and Coralville, or you can watch it online at any of the following websites: ■ httas://citychannel4.com/live ■ https://www.youtube.com/user/citychanne]4/live ■ https://facebook.com/CitvoflowaCity For informational nvrnoses. the Current ICHA Waitino Lists Counts ara ac fnllnws- Month HCV Waiting List # in Top Preference Cate o PH Waiting List (# in Top Preference Category) October 2025 1 2 3 4 5 University of Iowa Student Government (USG) Updates Clarification of Agenda Items Information Packet Discussion [October 23, October 30] Burlington Street Bridge Update Council updates on assigned boards, commissions, and committees Item Number: IP3. CITY OF IOWA CITY COUNCIL ACTION REPORT October 30, 2025 Pending City Council Work Session Topics Attachments: Pending City Council Work Session Topics CITY OF IOWA CITY UNESCO CITY OF LITERATURE PENDING CITY COUNCIL WORK SESSION TOPICS October 30, 2025 Currently Scheduled November 181h: Update on Housing Authority Planning FY23-26 Strategic Plan Action Item Topics Re uirin 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: IP4. a CITY OF IOWA CITY "QR T-4 COUNCIL ACTION REPORT October 30, 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 CITY OF IOWA CITY MEMORANDUM Date: October 30, 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 I Topic October 31, 2024 Source HUD Point -in -Time Count: This is a required count Institute for Community conducted across the country of sheltered and unsheltered Alliances (ICA) people experiencing homelessness on a single night in https://icalliances.org/pit January. In 2023, the count revealed 160 sheltered and 18 unsheltered individuals in Johnson County. In 2024, the count revealed 159 sheltered and 22 unsheltered individuals in Johnson County. November Housing Choice Voucher Utilization Rate: The 14, 2024 December 5, 2024 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. ICAAR Market Trends: ICAAR collects data about home sales monthly. In Oct. 2024, the median sales price was $376,250 for single-family (up 29.9% from Oct. 2023) and HUD Housing Choice Voucher Data Dashboard https://www.hud.gov/pro gram offices/public indi an housingprograms/h cv/dashboard Iowa City Area Association of Realtors (ICAAR): October 30, 2025 Page 2 was $274,000 for a condominium (up 8.5%). However, the 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. January 2, 2-Bedroom Housing Wage: The National Low Income 2025 Housing Coalition computes housing wages across the January 21, 2025 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 National Low Income Housing Coalition Out of Reach Report. htts://niihc.or /oor/stat e/ia 2023 5-Year American burdened if it spends more than 30% of its income on � Community Survey 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. February I Cost of Home Construction: The NAHB regularly 4, 2025 conducts a national, non -statistically valid survey of builders about the cost breakdowns for a new single-family home. In 2024, the average finished area of a new home was 2,647 square feet, and the average total sales price was $665,298. Construction costs accounted for approximately 64.4% of the sales price. Meanwhile, the finished lot cost was 13.7% of the sales price, while other overhead costs — including financing, general expenses, marketing, and sales commissions — made up another Data by the U.S. Census Bureau https://data.census.gov/ table/ACS DT5Y2023. B2 5106?q=iowa%20city% 20cost%20burden%20b %20tenure&t=0wner/ Renter°I%20(Tenure) Cost of Constructing a Home-2024 by the National Association of Home Builders (NAHB) https://www.nahb.org /media/NAHB/news- and- economics/docs/housin q-economics- plus/special- studies/2025/special- October 30, 2025 Page 3 February 13, 2025 March 6, 2025 11.0%. This left an average of 11.0% which constituted study -cost -of - profit. constructing-a-home- 2024-'anus -2025. df HUD Point -in -Time Count: This is a required count Institute for Community conducted across the country of sheltered and unsheltered Alliances (ICA) - 2025 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 about how long homes are listed for sale on the market. In 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. not yet available. https://icaiiiances.org/pit Iowa City Area Association of Realtors (ICAAR): https://icaar. ora/market- trends/ May 1, Utility Expenses: The cost of utilities is an important 2023 Iowa Water and 2025 component of monthly housing expenditures. The Iowa Wastewater Rates Finance Authority (I FA) 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 monthly rate is $60.73 which is in the lowest 20% of bills charged (the median in Iowa is $85.60). When a residential customer only uses 4,000 gallons of water and sewer service, Iowa City's rate drops to the lowest 10% of bills charged at $50.30 (compared to the Iowa median of of North Carolina at Chapel Hill (UNC EFC): https://dashboards.efc.s og.unc.edu/ia October 30, 2025 Page 4 $74.32). While Iowa City's rates have increased since FY23, this highlights the comparative affordability of Iowa City's water and sewer service. May 15, 1 ICAAR Inventory and Sales Trends: ICAAR collects data Iowa City Area 2025 1 on several housing market variables by city. The April 2025 May 29, 2025 June 12, 2025 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 within a community. For example, larger households may 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. Fair Market Rents (FMR): Every year, the U.S. Department of Housing & Urban Development publishes FMRs which estimate reasonable rental prices for housing in specific geographic areas. It is considered a benchmark for rent affordability and is used by many affordable housing programs to establish maximum rents. Effective June 1, 2025, the monthly FMR is $921 for a 1-bedroom unit, $1,105 for a 2-bedroom unit, and $1,548 for a 3-bedroom unit in Iowa City. Compared to 2024, FMR increased 4.2% for efficiency units, 2.1% for 1- and 2-bedroom units, 1.5% for 3-bedroom units, and 1.1 % for larger units. Association of Realtors (ICAAR): h ttp s: // i caa r.org /m a rket- trends/ 2023 5-Year American Community Survey Data by the U.S. Census Bureau tittps:/_/ciata.census.gov/ table/ACSST5Y2023.S2 501 ?g=iowa+city,+ia FY 2025 Fair Market Rent for Iowa City, IA https://www.huduser.go v/po rta I/d a to s et s/f m r/f m r s/FY2025 code/2025su mmary.odn October 30, 2025 Page 5 July 3, 2025 July 31, 2025 j August 14, 12025 Price -to -Income Ratio: Every year, Harvard University publishes a State of the Nation's Housing report. One Joint Center for Housing 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.4chs.harvar single family homes to the median household income within d.edu/son-2025-price- each housing market. A ratio of 3.0 (i.e. the median home to -income -map 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. Income Limits: Each year, the U.S. Department of FY2025 Adjusted Housing and Urban Development publishes income limits HOME 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. Resident Mobility: Resident mobility shapes housing markets by influencing demand, turnover, and neighborhood stability. Younger adults, including university students and early -career professionals, move more frequently, while older adults tend to pursue more stable housing. In Iowa City, only 45% of adult Gen Z'ers (aged 18-29) lived in the same house the year before, compared to 79% of Millennials (aged 30-44), 89% of Gen Kers (aged 45-59) and 93% of older generations (aged 60+). for Iowa, https://www.huduser.go v/portal /data sets/ ho m e- datasets/files/HOME In comeLmts State IA 20 25. pdf 2023 5-Year American Community Survey Data by the U.S. Census Bureau https://data.census.gov/ table/ACS DT5Y2023. BO 7001 ?q=iowa+city+pop ulation&t=Residential+ Mobility October 30, 2025 Page 6 August 28, Housing & Shelter Services. The United Way of Johnson 2025 `and Washington Counties recently published a Community September 11, 2025 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 income is below the federal poverty threshold for its size, indicating they may struggle to meet basic needs. People 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. October 2, Fair Market Rents (FMR): Every year, the U.S. 2025 Department of Housing & Urban Development publishes Stronger Together Community Needs Assessment, United Way of Johnson & Washington Counties, https://www.unitedway' wc.org/sites/unitedwayi we/files/cna2025-fui I , pdf 2023 5-Year American Community Survey Data by the U.S. Census Bureau https://data.census.gov/ table/ACS DT5Y2023. B 1 4006? =Iowa+cit + Pov e rty+by+School + Enroll meet FY 2026 Fair Market Rent for Iowa City, IA FMRs which estimate reasonable rental prices for housing https://www.huduser.gov/ in specific geographic areas. It is considered a benchmark portal/datasets/fmr/fmrs/ for rent affordability and is used by many affordable housing FY2026 code/2026sum programs to establish maximum rents. For FY2026, the I mary.odn monthly FMR is $961 for a 1-bedroom unit, $1,141 for a 2- bedroom unit, and $1,587 for a 3-bedroom unit in Iowa City. October 30, 2025 Page 7 October 16, 2025 October 30, 2025 Compared to 2025, FMR increased 4.3% for 1-bedroom, 3.3% for 2-bedroom, and 2.5% for 3-bedroom units. 2-Bedroom Housing Wage: Each year, the National Low , National Low Income Income Housing Coalition computes housing wages (i.e. I Housing Coalition Out the hourly wage rate needed to afford housing in a selected I of Reach Report. geographic region) across the country. For the State of https://niihc_orcg/oor/stat Iowa, the 2-bedroom housing wage is $19.99 for 2025, an a/ia increase of 6.0% since 2024. For the Iowa City metropolitan area, the 2-bedroom housing wage is $20.81 for 2025, an increase of 2.1 % since 2024. ICAAR Market Trends: ICAAR collects data about home Iowa City Area sales monthly. In Sept. 2025, the median sales price was Association of Realtors $344,000 for single-family (up 19.2% from Sept. 2024) and (ICAAR): was $310,000 for a condominium (up 26.5%). However, the htt s://icaar.or /market - median sales price per square foot only increased 9.0%, 1 trends/ which suggests some of the increase is due to the size of homes. In addition, the active inventory has increased 1.8%, which may help stabilize inflationary pressures. .,� CITY OF IOWA CITY �q- f�mMEMORANDUM Date: October 30, 2025 To: Mayor and City Council From: City Manager's Office Re: Iowa City Housing Authority Waiting List Update Data on the Housing Choice Voucher (HCV) and Public Housing (PH) waitlists is provided monthly by the Iowa City Housing Authority (ICHA). ICHA prioritizes applicants using criteria reviewed and approved by City Council, with the top preference category consisting of households that live and/or work in ICHA's jurisdiction (Johnson and Iowa Counties, and Washington County north of Highway 92) and are elderly, disabled or have minor children. Waitlists are regularly updated consistent with best practice to ensure applicants remain eligible, are interested in staying on the waitlist, and are accurately classified in the appropriate preference category. The most recent waitlist update was implemented May 2025. Table 1: ICHA Waiting Lists and Homeless Counts Month HCV Waiting List PH Waiting List Homeless (# in Top Preference Category) (# in Top Preference Category) Count* Dec `24 1 10,091 (1,205) 10,087 (1,204) j 1,627 570) 1,614 (573) -- 452 of the 1,614, or 28%, have an Iowa City address -- Jan `25 Feb `25 10,035 (1,157) -- 1,688 of the 10,305, or 16.8%. have an Iowa City address -- March '25 9,956 1,095 1,599 561 A ril '25 8,913 1 095 1,573 551 1 557 541 Ma '25 2,349 1,115 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) 17546 (536) Oct `25 2,503 (1,125) 1,535 (524) * Data source for monthly tracking is still being investigated. Item Number: IP5. a CITY OF IOWA CITY "QR T-4 COUNCIL ACTION REPORT October 30, 2025 Memo from Budget Management Analyst: Quarterly Financial Summary for Period Ending September 30, 2025 Attachments: Memo from Budget Management Analyst - Quarterly Financial Summary for Period Ending September 30, 2025 CITY OF IOWA CITY MEMORANDUM Date: October 28,2025 To: City Manager, City Council From: Angie Ogden, Budget Management Analyst Re: Quarterly Financial Summary for Period Ending September 30, 2025 Introduction Attached to this memorandum are the City's quarterly financial reports as of September 30, 2025. The quarterly financial report includes combined summaries of all fund balances, revenues, and expenditures for fiscal year 2026 through the end of the first quarter, which is 25% of the way through the fiscal year. Below are some of the highlights from this quarter's financial activity. Revenue Analysis This revenue analysis pertains to the revenue reports, Revenues by Fund and Revenues by Type, on pages 4-6. In these two reports, the actual revenues would ideally be near 25% of budget since we have completed one-fourth of the fiscal year; however, due to accruals back to the previous year, many of these percentages are below 25%. For the property tax supported funds, such as the General fund, Debt Service fund, the Employee Benefits fund, and the Emergency Levy Fund, their actual revenues are at 12.1 %, 7.5%, 6.9% and 0.0%, respectively. These funds have received a lower percentage of their revenue, because the City's property tax receipts are due twice during the year, October and April, and the City will receive the majority of its property tax revenue at that time. This is not the same for the City's enterprise funds. The City's enterprise funds are primarily supported by service charges which cause their actual revenues to be closer to the 25% mark. For instance, on page 4, the Water fund is at 21.4%, the Wastewater fund is at 19.8%, and the Landfill is at 25.3%. The Water and Wastewater funds' revenues are under the 25% benchmark due to the accrual of revenues back to last fiscal year. Other funds with budget anomalies worth noting: the CDBG and HOME funds has actual revenues at 3.0% and 3.2%, respectively, due to the timing of receipt of federal monies. The Transit fund has actual revenues at 6.6% due the timing of federal grant receipts. Additionally, the Governmental Projects fund (page 4) has revenues at 3.0% due to the timing of grant receipts related to projects as well as the timing of the Bond Issuance that does not take place until the spring. The Enterprise Projects fund (page 4) has revenues at 1.2% due to the timing of the Bond Issuance that does not take place until the spring. The combined total actual revenues for all budgetary funds through September are $29,296,075 or 10.9% of budget. Overall, the City's revenues are not substantially different than projected, and the anomalies and budget variances can be explained. Expenditure Analysis This expenditure analysis pertains to the reports, Expenditures by Fund and Expenditures by Fund by Department on pages 7-9. The analysis of the City's expenditures for fiscal year 2026 through September is similar to the analysis for the City's revenues. We generally expect the actual expenditure levels to be around 25% of budget at this time of year. Some of the funds have expenditure activity through the first quarter significantly above or below the 25% mark. The following funds have a significant expenditure variance from 25%: Affordable Housing fund is at 105.9% due to payments made to the Housing Trust Fund of Johnson County. Housing Authority is at 33.2% due to higher -than -expected landlord rents as well as building improvements. Governmental Projects expenditures are at 7.2% and Enterprise Projects expenditures are at 2.4% because many of the capital projects are scheduled for construction next Spring. Overall, the combined total actual expenditures for all budgetary funds through September are $45,930,417 or 12.4% of budget. Overall, the City's expenditures through the first quarter have a few major anomalies; however, these can be explained and are not unusual. Conclusion Generally, there are no major concerns to report with the City's fund balances at September 30. Fund balances appear healthy. Additional information is available from the Finance Department upon request. Budgetary Funds General Fund 10** General Fund Special Revenue Funds 2100 Community Dev Block Grant 2110 HOME 2200 Road Use Tax Fund 2300 Other Shared Revenue 2350 Metro Planning Org of J.C. 2400 Employee Benefits 2450 Emergency Levy Fund 2500 Affordable Housing Fund 2510 Peninsula Apartments 26** Tax Increment Financing 2820 SSMID-Downtown District Debt Service Fund 5*** Debt Service Enterprise Funds 710* Parking 715* Mass Transit 720* Wastewater 730* Water 7400 Refuse Collection 750* Landfill 7600 Airport 7700 Storm Water 79** Housing Authority Capital Project Funds Governmental Projects Enterprise Projects Total Budgetary Funds Non -Budgetary Funds Internal Service Funds 810* Equipment 8200 Risk Management 830* Information Technology 8400 Central Services 8500 Health Insurance Reserves 8600 Dental Insurance Reserves Total Non -Budgetary Funds Total All Funds City of Iowa City Fund Summary Fiscal Year 2026 through Septemeber 30, 2026 Beginning Ending Restricted, Unassigned Fund Year -to -Date Transfers Year -to -Date Transfers Fund Committed, Fund Balance Revenues In Expenditures Out Balance Assigned Balance $ 66,932,389 $ 8,035,231 $ 3,313,000 $ 16,828.637 $ 1.799,870 $ 59,652,112 $ 25,577,594 $ 34,074,518 17,420 32,718 - 62,210 - (12,072) (12,072) 27,570 80,656 - 115,592 7,883 (15,249) - (15,249) 6.677,118 2,016,897 145,825 2,068,720 864,942 5,906,178 - 5,906,178 794,004 9,189 - 75,621 - 727,572 - 727,572 577,636 191,568 99,625 211,393 - 657,436 - 657,436 3,430,561 1,046,166 - 511,858 3,386,650 578,219 - 578,219 1,199,195 - - - - 1,199,195 - 1,199,195 8,011,060 78,582 250,000 1,058,770 25,000 7,255,872 - 7,255,872 504,918 97,207 - 39,325 - 562,800 - 562,800 1,187,710 153,574 - 12,988 - 1,328,296 - 1,328,296 - 21,890 - - - 21,890 - 21,890 7,615.077 933,874 - 4,100 - 8,544,851 - 8,544,851 3,000,524 1,804,290 375,000 1,182,744 649,421 3,347,650 843,235 2,504,414 14,920,679 765,014 1,332,925 2,183,787 6,250 14,828,582 13,252,044 1,576,537 26,847,961 2,708,422 382,076 2,367,941 500,000 27,070,518 2,854,265 24,216,253 15,995,787 2,792,817 632,336 3,083,115 625,000 15,712,824 4,771,643 10,941,181 3,478,339 1,010,520 13,174 1,163,932 - 3,338,101 - 3,338,101 26,593,693 2,178,422 337,520 1,541,169 263,619 27,304,846 22,846,439 4.458,406 229,649 124,280 25,000 132,447 - 246,481 142,699 103,782 1,947,810 376.793 278,195 169,444 335,000 2,098,354 801,755 1,296,599 7,670,814 3,604,154 7,883 4,592,318 7,675 6,682,859 - 6,682,859 36,994,763 507,036 837,500 6,420,701 - 31,918,598 - 31.918,598 14,641,210 726,778 441,250 2,103.605 - 13,705,633 - 13,705,633 $249,295,888 $ 29,296,075 $ 8.471.309 $ 45,930,417 $ 8,471,310 $232,661,545 $ 71,089,675 $161,571,870 $ 25,396,649 $ 2,376,617 $ - $ 1,537,329 $ - $ 26,235,937 $ 22,948,807 $ 3,287,130 4,466,426 1,539,014 - 527.467 - 5,477,973 - 5,477,973 3,757,727 552,426 25,000 726,012 25,000 3,584,140 2,137,373 1,446.767 737,395 54,831 - 38,712 - 753.513 - 753,513 23,110,968 3,543,089 - 3,042,825 - 23,611,232 9,839,853 13,771,379 669,070 113,409 - 89,464 - 693,015 - 693,015 $ 58,138,235 $ 8,179,385 $ 25.000 $ 5.961,609 $ 25,000 $ 60,355,811 $ 34.926.034 $ 25.429.777 $307,434,123 $ 37.475.460 $ 8,496,309 $ 51,892,226 $ 8,496,310 $293,017.356 $106,015,709 $187,001,647 3 City of Iowa City Revenues by Fund Fiscal Year 2026 through Septemeber 30, 2025 Budgetary Fund Revenues General Fund 10** General Fund Special Revenue Funds 2100 Community Dev Block Grant 2110 HOME 2200 Road Use Tax Fund 2300 Other Shared Revenue 2350 Metro Planning Org of Johnson Co 2400 Employee Benefits 2450 Emergency Levy Fund 2500 Affordable Housing Fund 2510 Iowa City Property Management 26** Tax Increment Financing 2820 SSMID-Downtown District Debt Service Fund 5*** Debt Service Enterprise Funds 710* Parking 715* Mass Transit 720* Wastewater 730* Water 7400 Refuse Collection 750* Landfill 7600 Airport 7700 Storm Water 79** Housing Authority Capital Project Funds Governmental Projects Enterprise Projects Total Budgetary Revenues Nan -Budgetary Fund Revenues Internal Service Funds 810* Equipment 8200 Risk Management 830* Information Technology 8400 Central Services 8500 Health Insurance Reserves 8600 Dental Insurance Reserves Total Non -Budgetary Revenues Total Revenues - All Funds 2025 2026 2026 Actual Budget 2026 Revised Actual Variance Percent $ 64,705,988 $ 66,329,100 $ 66,329,100 $ 8,035,231 $ (58,293,869) 12.1% 1,202,448 742,600 1,104,500 32,718 (1,071,782) 3.0% 1,153,579 484,300 2,508,200 80,656 (2,427,544) 3.2% 10,710,676 10,962,700 11,037,700 2,016,897 (9,020,803) 18.3% 905,736 520,000 3,663,600 9,189 (3,654.411) 0.3% 498,227 469,100 844,100 191,568 (652,532) 22.7% 15,263,986 15,263,500 15,263.500 1,046,166 (14,217.334) 6.9% 12,705 4,600 4,600 - (4,600) 0.0% 353,271 - - 78,582 78,582 0.0% 273,121 264,400 264,400 97,207 (167,193) 36.8% 4,648,984 4,166,800 4,166,800 153,574 (4,013,226) 3.7% 704,220 668,200 668,200 21,890 (646,310) 3.3% 12,409,816 12,521,900 12,521,900 933,874 (11,588,026) 7.5% 7,389,192 7,134,900 7,134,900 1,804,290 (5,330,610) 25.3% 6,853,978 5,575,400 11,534,100 765,014 (10,769,086) 6.6% 14,255,704 13,665,000 13,665,000 2,708,422 (10,956,578) 19.8% 12,877,414 13,030,800 13,030,800 2,792,817 (10,237,984) 21.4% 5,361,656 5,311,500 5,311,500 1.010,520 (4,300.980) 19.0% 8,532,077 8,596,300 8,596,300 2,178,422 (6,417,878) 25.3% 435,066 456,300 456,300 124,280 (332,020) 27.2% 1,994,264 1,912,700 1,912,700 376,793 (1,535,907) 19.7% 14,299,682 13,677,700 13,677,700 3,604,154 (10,073,546) 26.4% 19,616,741 15,628,700 16,738,400 507,036 (16,231,364) 3.0% 3,851,519 19,063,942 58,514,542 726,778 (57,787,764) 1.2% $208,310,052 $216,450,442 $268,948,842 $ 29,296.075 $(239.652.767) 10.9% $ 8,894,565 $ 8,399,000 $ 8,399,000 $ 2,376,617 $ (6,022,383) 28.3% 1,738,939 $ 1,684,100 $ 1,684,100 $ 1,539,014 (145.087) 91.4% 3,041,851 $ 3,213.500 $ 3,213,500 $ 552,426 (2,661,074) 17,2% 190,913 $ 179,700 $ 179,700 $ 54,831 (124,869) 30.5% 14,236,883 $ 14,244,200 $ 14.244,200 $ 3,543,089 (10,701,111) 24.9% 464,328 $ 461,000 $ 461,000 $ 113,409 (347,591) 24.6% $ 28,567,479 $ 28,181,500 $ 28,181,500 $ 8,179,385 $ (20.002,115) 29.0% $ 236,877,531 $ 244,631,942 $ 297.130,342 $ 37,475,460 $ (259,654,882) 12.6% 4 City of Iowa City Revenues by Type Fiscal Year 2026 through Septemeber 30, 2025 2025 2026 2026 Actual Budget 2026 Revised Actual Variance Percent Budgetary Fund Revenues Property Taxes $ 68,440,099 $ 70,579.100 $ 70,579,100 $ 5,040,276 $ (65,538,824) 7.1% Other City Taxes: TIF Revenues 4,567,602 4,166,800 4,166,800 141,293 (4,025,507) 3.4% Gas/Electric Excise Taxes 735,200 666,800 666,800 - (666,800) 0.0% Mobile Home Taxes 50,474 52,800 52,800 9,120 (43,680) 17.3% Hotel/Motel Taxes 2,070,387 2,043,100 2,043,100 455,098 (1,588,002) 22.3% Utility Franchise Tax 1,002,625 1,972 000 1.972.000 1,972,000 0.0% Subtotal 8,426,289 8,901,500 8,901,500 605,511 (8,295,989) 6.8% Licenses, Permits, & Fees: General Use Permits 111,278 95,800 95,800 8,322 (87,478) 8.7% Food & Liquor Licenses 117,173 126,900 126,900 38,827 (88,073) 30.6% Professional License 2,045 2,300 2,300 240 (2,060) 10.4% Franchise Fees 392,518 470,000 470,000 7,287 (462,713) 1.6% Construction Permits & Insp Fees 1,760,954 1,902.400 1,902,400 393,857 (1,508,543) 20.7% Misc Lic & Permits 58.308 55,400 55,400 15,543 (39.857) 28.1 % Subtotal 2,442,277 2,652,800 2,652,800 464,075 (2,188,725) 17.5% Intergovernmental: Fed I ntergovem mental Revenue 22,996,522 38,582,342 56,050,642 3,852,303 (52,198,339) 6.9% Property Tax Credits 1,372,723 985,500 985,500 - (985,500) 0.0% Road Use Tax 10,593,049 10,800,000 10,800,000 2,007,199 (8,792,801) 18.6% State 28E Agreements 2,566,419 2,566,400 2,566,400 - (2,566,400) 0.0% Operating Grants 65,627 65,000 65,000 22,939 (42,061) 35.3% Other State Grants 966,311 709,200 2,110,300 240,625 (1,869,675) 11.4% Local 28E Agreements 1,501.554 1.511.500 1.511,500 661,707 (849,793) 43.8% Subtotal 40,062,205 55,219.942 74,089,342 6,784,774 (67,304,568) 9.2% Charges For Fees And Services: Building & Development 357,107 495,900 570,900 88,929 (481,971) 15.6% Police Services 109,770 85,000 85,000 48,938 (36,062) 57.6% Animal Care Services 12,619 10,200 10,200 3,160 (7,040) 31.0% Fire Services 9,120 10,000 10,000 1,260 (8,740) 12.6% Transit Fees 19 - - - - #DIV/01 Culture & Recreation 618,806 655,600 655,600 131,776 (523,824) 20.1% Misc Charges For Services 67,198 86,500 86,500 13,659 (72,842) 15.8% Water Charges 11,168,454 11,653,200 11,653,200 2,298,701 (9,354,499) 19.7% Wastewater Charges 13,174,926 13,515,000 13,515,000 2,448,989 (11,066,011) 18.1% Refuse Charges 5,715,882 5,895,000 5,895,000 1,116,598 (4,778,402) 18.9% Landfill Charges 7,042,639 7,599,300 7,599,300 1.794,456 (5,804,844) 23.6% Storm Water Charges 1,921,511 1,890,200 1,890,200 349,732 (1,540,468) 18.5% Parking Charges 7,529,201 7,329,500 7,329,500 2,034,432 5,295,068 27.8% Subtotal 47,727,253 49,225,400 49,300,400 10,330,629 (38,969,771) 21.0% Miscellaneous: Code Enforcement 210,265 157,300 157,300 33,348 (123,952) 21.2% Parking Fines 1,064,182 950,000 950,000 148,429 (801,572) 15.6% Library Fines & Fees 473 800 80o 55 (745) 6.9% Contributions & Donations 641,893 1,463,900 1,482,100 54,391 (1,427,709) 3.7% Printed Materials 23,602 20,700 20,700 8,075 (12,625) 39.0% Animal Adoption 59,240 61,500 61,500 15,836 (45,664) 25.8% Misc Merchandise 16,988 14,000 14,000 2,660 (11,340) 19.0% Intra-City Charges 6,704,573 8,522,600 8,522,600 2,131,320 (6,391,280) 25.0% Other Misc Revenue 1,964,624 801,800 864.800 621,590 (243,210) 71.9% Special Assessments 217 800 800 800 0.0% Subtotal $ 10,686,057 $ 11,993,400 $ 12,074,600 $ 3,015,705 $ (9,058,895) 25.0% 5 City of Iowa City Revenues by Type Fiscal Year 2026 through September 30, 2025 2025 2026 2026 Actual Budget 2026 Revised Actual Variance Percent Use Of Money And Property: Interest Revenues $ 10,284,688 $ 1,658,900 $ 1,658,900 $ 2,407,890 $ 748,990 145.1% Rents 1,619,394 1,592,400 1,592,400 428,670 (1,163,730) 26.9% Royalties & Commissions 131.764 119,000 119.000 31.669 87,331 26.6% Subtotal 12,035,846 3,370,300 3,370,300 2,868,230 (502,070) 85.1% Other Financial Sources: Debt Sales 17,356,328 13,830,000 47,302,800 98,860 (47,203,940) 0.2% Sale Of Assets 185,019 427.700 427,700 26,400 (401,300) 6.2% Loans 948.681 250.300 250.300 61,614 188.686 24.6% Subtotal 18,490,027 14,508,000 47,980,800 186,874 (47,793,926) 0.4% Total Budgetary Revenues 10.9% $208.310,052 $ 216.450,442 $268.948,842 $ 29,296.074 (239,652.768) Nan -Budgetary Fund Revenues Internal Service Funds $ 28,567,479 $ 28,181,500 $ 28,181,500 $ 8,179,385 $ (20,002,115) 29.0% Total Non -Budgetary Revenues $ 28,567,479 $ 28,181,500 $ 28,181,500 $ 8.179.385 $ (20,002,115) 29.0% Total Revenues - All Funds $236,877.531 $ 244.631,942 $297,130.342 $ 37.475,459 $(259,654,883) 12.6% 6 City of Iowa City Expenditures by Fund Fiscal Year 2026 through Septemeber 30, 2025 2025 2026 2026 2026 Actual Budget Revised Actual Variance Percent Budgetary Fund Expenditures General Fund 10** General Fund $ 70,540,976 $ 73,579,100 $ 79,251,800 $ 16,828,637 $ 62,423,163 21.2% Special Revenue Funds 2100 Community Dev Block Grant 1.064,935 742,600 1.104,500 62,210 1,042,290 5.6% 2110HOME 1,115,249 484,300 2,508,200 115,592 2,392,608 46% 2200 Road Use Tax Fund 7,631,212 8,155,800 8,285,800 2,068,720 6,217,080 25.0% 2300Other Shared Revenue 3,656,785 575,100 4,642,800 75,621 4,567,179 1.6% 2350 Metro Planning Org of Johnson Co. 948,702 872,600 1,247,600 211,393 1,036,207 16.9% 2400 Employee Benefits 1,186,276 1,716,900 1,716,900 511,858 1,205,042 29.8% 2450 Emergency Levy Fund 6,145 175,000 225,000 - 225,000 0.0% 2500 Affordable Housing Fund 744,302 1,000,000 1,000,000 1.058,770 (58,770) 105.9% 2510 Iowa City Property Management 176,288 417,850 457,850 39,325 418,525 8.6% 26** Tax Increment Financing 2,926,297 2,702,600 2,702,600 12,988 2,689,612 0.5% 2820 SSMID-Downtown District 704,220 668,200 668,200 - 668,200 0.0% Debt Service Fund 5*** Debt Service 13,844,703 14,390,900 14,390,900 4,100 14,386,800 0.0% Enterprise Funds 710* Parking 4,974,475 5.320,800 5,343,100 1,182,744 4,160,356 22.1% 715*Mass Transit 9,537,050 10,144,700 17,886,000 2,183,787 15,702,213 12.2% 720* Wastewater 8,762,568 13,718,400 13,872,400 2,367,941 11,504,459 17.1% 730* Water 10,383,888 10,864,300 11,751,400 3,083,115 8,668,285 26.2% 7400 Refuse Collection 4,529,929 4,827,500 4,827,500 1,163,932 3,663,568 24.1% 750* Landfill 6,149,538 6,650,400 6,660,300 1,541,169 5,119,131 23.1% 7600Airport 434,703 426,100 426,100 132,447 293,653 31.1% 7700 Storm Water 630,481 902,900 902,900 169,444 733,456 18.8% 79** Housing Authority 13,737,629 13,828,129 13,828,129 4,592,318 9,235.811 33.2% Capital Project Funds Governmental Projects 19,991,302 37,577,800 88,795,900 6,420,701 82,375,199 7.2% Enterprise Projects 15,038,181 28,262,545 89,170,245 2,103,605 87,066,640 2.4% Total Budgetary Expenditures $198,715.833 $ 238,004,524 $371,666,124 $ 45,930,417 $ 325,735,707 12.4% Non -Budgetary Funds Expenditures Internal Service Funds 810* Equipment $ 6,690,234 $ 7,963,900 $ 10,137,300 $ 1,537,329 $ 8,599.971 15.2% 8200 Risk Management 1,293,605 1,834,400 1,834,400 527,467 1,306,933 28.8% 830* Information Technology 3,309,713 3,387,700 3,617,300 726,012 2,891,288 20.1% 8400 Central Services 187,465 199,300 199,300 38,712 160,588 19.4% 8500 Health Insurance Reserves 10,540,653 12,746,000 12,746,000 3,042,825 9,703,175 23.9% 8600 Dental Insurance Reserves 393,199 410,200 410,200 89,464 320,736 21.8% Total Non -Budgetary Expenditures $ 22,414,870 $ 26.541.500 $ 28,944,500 $ 5.961,809 $ 22,982,691 20.6% Total Expenditures - All Funds $221.130,703 $ 264.546.024 $400.610,624 $ 51.892,226 $ 348,718,398 13.0% 7 City of Iowa City Expenditures by Fund by Department Fiscal Year 2026 through Septemeber 30, 2025 2025 2026 2026 2026 Actual Budget Revised Actual Variance Percent Budgetanc Funds Expenditures General Fund 10** General Fund City Council $ 175,366 $ 198,400 $ 198,400 $ 52,454 $ 145,946 26.4% City Clerk 621,958 756,000 756,000 116,409 639,591 15.4% City Attorney 952,325 1,065,100 1,130,100 223,325 906,775 19.8% City Manager 5,466,838 6,240,600 7,174,100 1,409,136 5,764,964 19.6% Finance 4,609,768 5,950,700 5,950,700 2,030,872 3,919,828 34.1% Police 16,822,470 18,688,500 18,946,500 3,677,049 15,269,451 19.4% Fire 10,356,837 11,004,200 11,004,200 2,288,274 8,715,926 20.8% Parks & Recreation 10,096,316 10,788,400 10,788,400 2,135,708 8,652,692 19.8% Library 7,796,295 8,242,200 8,242,200 1,701,950 6,540,250 20.6% Senior Center 1,124,167 1,197,800 1,203,800 224,084 979,716 18.6% Neighborhood & Development Services 8,755,045 5,078,700 9,455,700 2,134,591 7,321,109 22.6% Public Works 3,340,960 3,926,400 3,959,600 742,884 3,216,716 18.8% Transportation & Resource Management 422.630 442.100 442,100 91,901 360 199 20.8% Total General Fund 70,540,976 73,579,100 79,251,800 16,828,637 62,423.163 21.2% Special Revenue Funds 2100 Community Dev Block Grant Neighborhood & Development Services 1,064,935 742,600 1,104,500 62,210 1,042,290 5.6% 2110 HOME Neighborhood & Development Services 1,115,249 484,300 2,508,200 115,592 2,392,608 4.6% 2200 Road Use Tax Fund Public Works 7,631,212 8,155,800 8,285,800 2,068,720 6,217,080 25.0% 2300 Other Shared Revenue Neighborhood & Development Services 3,656,785 575,100 4,642,800 75,621 4,567,179 1.6% 2350 Metro Planning Org of Johnson Co Neighborhood & Development Services 948,702 872,600 1,247,600 211,393 1,036,207 16.9% 2400 Employee Benefits Finance 1,186,276 1,716,900 1,716,900 511,858 1,205,042 29.8% 2450 Emergency Levy Fund City Manager 6,145 175,000 225.000 - 225,000 0.0% 2500 Affordable Housing Fund Neighborhood & Development Services 744,302 1.000,000 1,000,000 1,058,770 (58,770) 105.9% 2510 Iowa City Property Management Neighborhood & Development Services 176,288 417,850 457,850 39,325 418,525 8.6% 26** Tax Increment Financing Finance 2,926,297 2,702,600 2,702,600 12,988 2,689,612 0.5% 2820 SSMID-Downtown District Finance 704,220 668,200 668,200 - 668,200 0.0% Total Special Revenue Funds 20,160,410 17,510,950 24,559,450 4,156,477 20,402,973 16.9% Debt Service Fund 5*** Debt Service Finance 13,844,703 14.390,900 14,390,900 4,100 14,386.800 0.0% Total Debt Service Fund 13,844,703 14,390,900 14,390,900 4,100 14,386,800 0.0% 8 City of Iowa City Expenditures by Fund by Department Fiscal Year 2026 through Septemeber 30, 2025 2025 2026 2026 2026 Actual Budget Revised Actual Variance Percent Enterprise Funds 710* Parking Transportation & Resource Management $ 4,974,475 $ 5,320.800 $ 5,343.100 $ 1,182,744 $ 4,160,356 22.1% 715* Mass Transit Transportation & Resource Management 9,537,050 10,144,700 17.886,000 2,183,787 15,702,213 12.2% 720* Wastewater Public Works 8,762,568 13,718,400 13,872,400 2,367,941 11,504,459 17.1% 730* Water Public Works 10,383,888 10,864,300 11,751,400 3,083,115 8,668,285 26.2% 7400 Refuse Collection Transportation & Resource Management 4,529,929 4,827,500 4,827,500 1,163,932 3,663,568 24.1% 750* Landfill Transportation & Resource Management 6,149,538 6,650.400 6,660,300 1,541,169 5,119,131 23.1% 7600 Airport Airport Operations 434,703 426,100 426,100 132,447 293,653 31.1% 7700 Storm Water Public Works 630,481 902,900 902,900 169,444 733,456 18.8% 79** Housing Authority Neighborhood & Development Services 13,737.629 13.828J29 13,828,129 4,592.$18 9.235 811 33.2% Total Enterprise Funds 59,140,261 66,683,229 75,497,829 16,416,896 59,080,933 21.7% Capital Project Funds Governmental Projects 19,991,302 37,577,800 88,795,900 6,420,701 82.375,199 7.2% Enterprise Projects 15.038,181 28 262.545 89.,170,245 2.103,605 87,066.640 2.4% Total Capital Project Funds 35,029,483 65,840,345 177,966,145 8.524,306 169,441,839 4.8% Total Budgetary Expenditures $198,715,833 $ 238,004.524 $371,666,124 $ 45,930,417 $ 325,735,707 12.4% Non -Budgetary Funds Expenditures Internal Service Funds 810* Equipment Public Works $ 6,690,234 $ 7,963,900 $ 10,137,300 $ 1,537,329 $ 8,599,971 15.2% 8200 Risk Management Finance 1,293,605 1,834,400 1,834,400 527,467 1,306,933 28.8% 830* Information Technology Finance 3,309,713 3,387,700 3,617,300 726.012 2,891,288 20.1% 8400 Central Services Finance 187,465 199,300 199,300 38,712 160,588 19.4% 8500 Health Insurance Reserves Finance 10.540,653 12,746,000 12,746,000 3,042,825 9,703,175 23.9% 8600 Dental Insurance Reserves Finance 393,199 410,200 410,200 89,464 320,736 21.8% Total Internal Service Funds 22,414,870 26,541,500 28,944,500 5,961,809 22,982,691 20.6% Total Non -Budgetary Expenditures $ 22,414,870 $ 26,541,500 $ 28,944,500 $ 5,961,809 $ 22,982,691 20.6% Total Expenditures - All Funds $221,130,703 $ 264,546,024 $400,610,624 $ 51.892,226 $ 348,718,398 13.0% 9 Item Number: IP6. a CITY OF IOWA CITY "QF T-4 COUNCIL ACTION REPORT October 30, 2025 Memo from Grant Specialist: American Rescue Plan Act Update Attachments: Memo from Grant Specialist - American Rescue Plan Act Update CITY OF IOWA CITY MEMORANDUM Date: October 20, 2025 To: City Council From: Sam Turnbull, Grants Specialist Re: American Rescue Plan Act Update The U.S. Treasury has allocated $18.3 million to the City of Iowa City in local fiscal recovery funds through the American Rescue Plan Act (ARPA). The City has spent or encumbered that entire allocation to date. At the Sept. 7, 2021 Work Session, City Council signaled their support for the following expenditure priorities, categorized by emergent needs and strategic investments: Program 2021 Est. Range Funded Expended Status Emergent Needs: Direct Payments to Eligible Adults $1 - $1.5M $1,184,071.19 $1,184,071.19 Complete Eviction Prevention $1 - $2M $1,137,710.00 $783,231.13 In Progress Housing Repair / Relocation $500k - $1.5M $1,071,500.00 $1,071,500.00 Complete Emergency Non -Profit Assistance $500k - $1 M $485,000.00 $485.000.00 Complete Strategic Investments: BIPOC Business Support Framework / $4 - $6M $3,980,000 $3,422,453.77 In Progress Infrastructure Social Service Needs Assessment, Capital Planning & Seed $3 - $6M $3,000,000 $2,747,256.21 In Progress Funding Affordable Housing Initiatives $2.5 - $6M $1,716,224.92 $1,710,224.82 In Progress Mental Health Services $1.5 - $3M $939,082.00 $939,082.00 Complete Workforce Development $1.5 - $3M $1,250,000 $943,337.18 In Progress Climate Resiliency and Hazard Assessment $500k - $3M Identified Planning Other Funding October 29, 2025 Page 2 Tourism Recovery: $250,000 Small Business, SSMID: Arts, Culture, and Tourism $1 - $2M $500,000 $353,257.09 In Progress Investments Skate Park: $500,000 (committed) Utility Accounts: $676,146.49 Government Lead Reduction: $500,000 $2,311,601.89 Complete Services and City $1 - $3M Revenue Retention Replacement Incentive: $1,135,455.40 Actual Admin *$240,554.30 *Admin reported Cost: as incurred Total 2021 Estimated Funding $18 - $38 million Range: City's ARPA Allocation: $18,325,190.00 ARPA Funds Encumbered /inclurloc cnmmil#AMM- $18,325,190.00 Total Unencumbered ARPA c..„A-1- 1 $u I Program Status Update: Emergent Priorities Direct Payments to Eligible Adults Status: Complete Amount Funded: $1,184,071 The Johnson County Direct Assistance Program received 2,238 eligible applications from throughout Johnson County. Johnson County funded the first 1,428 applicants and the City of Iowa City funded 791 applicants (472 residing in Iowa City and 319 residing outside Iowa City). Eviction Prevention Status: Amount Funded: $1,137,710 Amount Expended: $783,231.13 The pandemic created and exacerbated housing instability for many populations. Shelter House developed the Housing Stability Pilot program for ARPA-funded community eviction prevention that will extend and enhance previously allocated federal, state, and local dollars. Shelter House entered an agreement on January 10, 2023. October 29, 2025 Page 3 Housing Stability and Eviction Prevention services are fully staffed. Throughout the ARPA- funded timeframe coordinated entry has responded to 4,648 calls and 585 online portal submissions. All 69 Emergency Housing Vouchers were leased up by the 9/30/2023 deadline and in total 100 individuals have been served by EHV. Twenty-five RentWise courses have been hosted with 211 attendees. Shelter House has staffed the courthouse helpdesks and made contact with 232 unique landlords to aid in the prevention of eviction. To date Shelter House held five expungement clinics with 91 Iowa City residents served and 153 expungements issued. Currently 23 households are enrolled in the landlord risk mitigation program. Forest View Relocation Status: Complete Amount Funded: $1,071,500 As of February 1, 2023, all residents vacated by the deadline and were eligible for relocation assistance. In total, 80 Forest View residents received the full relocation amount of $15,750. The Center for Worker Justice worked directly with residents to assist them in obtaining affordable housing opportunities. Emergency Non -Profit Assistance Status: Complete Amount Funded: $485,000 Nonprofit Operating9perating Assistance: Applications for operating assistance were reviewed and $400,000 in funding recommendations were approved by City Council at the October 18, 2022 meeting. Twelve non-profit agencies were awarded funding. All projects have expended all their funds. Wage Theft: In coordination with commitments from Johnson County, Coralville, and North Liberty, Iowa City allocated $85,000 over five years to the Center for Worker Justice for an expanded campaign to confront wage theft, promote worker rights, and hire a full-time Wage Theft Organizer. The CWJ Wage Theft program has expended all funds, assisted 103 workers and recovered $95,696.42 in lost wages between May 2022 and April 2025. Center for Worker Justice closed permanently on July 9, 2025. All City funds were expended prior to closure. Program Status Update: Strategic Investments BIPOC Business Support Framework & Infrastructure Status: Amount Funded: $3,980,000 Amount Expended: $3,422,453.77 In an effort to advance the recommendations in the Inclusive Economic Development Plan, the City launched an APRA-funded inclusive economic development program for underestimated businesses and entrepreneurs located in Iowa City. On March 19, 2024 City Council approved subrecipient agreements with Dream Center ($2.9 million- $100,000 was previously awarded for October 29, 2025 Page 4 technical assistance), Multicultural Development Center of Iowa ($600,000), and Wright House of Fashion ($100,000). On April 16, 2024 City Council approved subrecipient agreements with Dotlizhi LLC ($100,000), Neighborhood Centers of Johnson County ($80,000), and Tailored Tax and Accounting LLC ($100,000). To date, Dream Center has completed the renovation of their entrepreneurial hub at 611 Southgate Avenue. A total of 118 entrepreneurs are involved with Dream Center's services and they have hosted 42 workshops to date. Workshop topics have included: scaling up strategies, pitch perfect, formalizing your business, funding your business and budgeting and financial management. The Fade Factory, made up of four independent barbers, is utilizing the micro retail space, with plans to add two additional chairs. Five entrepreneurs are renting space in the coworking area. In addition, Kirkwood Community College has leased classroom space to be utilized four days per week for three 10-week sessions. Wright House of Fashion has expended all funds and held mentoring sessions with 19 entrepreneurs, marketing strategy sessions with 25 entrepreneurs and had 49 students enrolled in the graphic design program. Multicultural Development Center has held 5 business accelerator cohorts, provided business coaching to 112 businesses and 25 businesses have received Technical Assistance grants. Dotlizhi LLC has expended all funds and distributed six grants to small businesses, has held 9 entrepreneurial workshops and 4 cultural outreach activities. Tailored Tax and Accounting has provided no cost financial services to 33 small businesses, held two business financial planning classes and three financial literacy workshops. Neighborhood Centers of Johnson County has held 3 entrepreneurship/business plan development workshops, one youth entrepreneurship bootcamp, and one black and brown business networking event. Social Services Capital Funding Program Status: In Progress Amount Funded — Free Medical Clinic: $1 million Amount Expended: $747,256.21 Amount Funded -Neighborhood Centers of Johnson County: $2 million Amount Expended: $2 million With Council direction, staff developed a Non -Profit Capacity Building Capital Grant Program and released a Request for Statements of Interest in December 2022. Eight nonprofit agencies submitted a Statement of Interest for consideration under the program. Two nonprofits, Neighborhood Centers of Johnson County and Iowa City Free Medical Clinic, were approved for funding. At Council's December 12, 2023 meeting, they approved an agreement with Iowa City Free Medical Clinic for $1,000,000 to renovate their facility. A ribbon cutting was held October 8, 2025 unveiling the new exam rooms available to an increased number of volunteer practitioners, increase medical storage (including refrigerated medication), dental laboratory, administrative offices, a multi -purpose room, and related medical equipment to serve a growing number of uninsured and underinsured individuals seeking care. To date $747,256.21 has been expended and remaining work includes improvements to the former garage space to support future growth and installation of solar panels. October 29, 2025 Page 5 At Council's May 7, 2024 meeting, they approved an agreement with Neighborhood Centers of Johnson County for $2,000,000 to acquire two buildings in the Towncrest neighborhood for a Family Resource Center and an Early Childhood Center. Neighborhood Centers purchased the Early Childhood Center and Family Resource Center buildings on August 1, 2024. A groundbreaking was held at the Early Childhood Center on September 21, 2024. Construction is underway on the Early Childhood Center with completion expected in January 2026. To date $2,000,000 has been expended. The Early Childhood Center will have five licensed classrooms, for at least 50 early childcare slots, a library, computer lab, a multi -purpose space with a kitchen, and a large after -school classroom. Services at the Family Resource Center are now underway. The Family Resource Center is serving as the hub of a partnership with Johnson County focused on the Community Violence Intervention Program. Affordable Housing Initiatives Status: In Progress Amount Funded: $1,713,909.37 On June 18, 2024 City Council approved a purchase agreement for three 3-bedroom townhomes on Herbert Hoover Highway. The townhomes are managed by the Iowa City Housing Authority as income and rent restricted units. All three units are leased with eligible households. On October 9, 2024 the City closed on vacant lots located at 1002 & 1006 N Summit St, where future development will allow the construction of up to 36 units of affordable housing. The City has contracted with Baker Tilly to serve as the Development Manager for this project. Proceeds from the Pro Housing grant will pay for the consultant cost as well as contribute to a portion of the construction cost. It is estimated construction will commence in the fall of 2026 and we expect an 18-24 month construction schedule. The Housing Authority will own and manage as income and rent restricted housing. Mental Health Services Status: Complete Amount Funded: $939,082 City Council approved a subrecipient agreement with CommUnity at the February 15, 2022 meeting to expand Mobile Crisis Outreach in response to the exacerbated mental health impacts of the pandemic. The project is now fully spent down. Throughout the funded period three Mobile Crisis Response counselors worked full time providing emergency response. The fleet of eight Mobile Crisis Response vehicles allowed the program to maintain an average response time of 23 minutes within Iowa City responding to a total of 6,123 calls between February 2022 and March 2025. Over the course of the grant funding the program has achieved a 94.71 % hospital and jail diversion rate. Workforce Development Status: In Progress Amount Funded - Childcare Navigator (4Cs): $100,000 Amount Expended: $ 92,685.11 Amount Funded - Pre -Apprenticeship Program (UI Labor Center): $400,000 October 29, 2025 Page 6 Amount Expended: $250,652.07 Amount Funded - Childcare Workforce Development: $750,000 Amount Expended: $600,000.00 Childcare _Workforce Development: In June 2022, 4Cs and the Iowa City Area Business Partnership presented an update on regional childcare efforts and needs to City Council and recommended Council consider funding a childcare navigator position. 4Cs was awarded $100,000 in ARPA funds for the navigator position. 4C's added a consultant focused on recruitment and navigation of the childcare workforce. To date the consultant has worked with 44 Iowa City individuals interested in starting in -home childcare programs, 24 Iowa City starting strong providers (child development homes serving a high percentage of children on Childcare Assistance), 13 individuals participating in English Language Learning classes for childcare and 1 registered apprentice. Workforce Development: An agreement with the UI Labor Center for a pre -apprenticeship program targeting underserved populations in the building and construction trades was approved by Council on December 61h, 2022. The FY25 cohort completed the program with a graduation on March 13, 2025. 29 residents were enrolled in the FY25 cohort and 86% of those enrollees graduated. The FY26 cohort is scheduled February 5- March 12, 2026 and will be held at Dream City. There are currently 24 applicants for that cohort. To date 67 Iowa City enrollees have completed the program and 42% are employed in the construction trades or apprenticeship programs within one year of graduating. Childcare Wage Enhancement Program: Johnson County, Better Together 2030, and other community partners presented a proposed Childcare Wage Supplement Program at the March 7, 2023 City Council Work Session. Council approved the agreement at their June 6, 2023 meeting, providing $750,000 over three years to support the Wage Enhancement Program. To date, the County has authorized payment of $447,464.30 in wage enhancements to six childcare centers in Iowa City. In August 2024 the agreement was amended to include $25,000 per year (of the original allocation) to assist in funding an Employer Engagement Program Manager. The Employer Engagement Program Manager, housed at Greater Iowa City, is working on ensuring ongoing funding for the program via employer contributions. Johnson County contracted with the National Center for Family Centered Practice for evaluation of the Wage Enhancement Program. In March 2025 the first report from that evaluation was released. Data collection is ongoing, but the preliminary data shows staff of centers receiving Wage Enhancement had higher average wages, lower rates of absenteeism, more positive mental health ratings, stronger financial security and lower rates of material hardship. Data collection for the second survey of the Wage Enhancement Program participants and a control group is currently underway. Climate Resilience and Hazard Assessment Planning Status: Identified Other Funding Staff will continue to utilize Emergency Levy fund balance and General Fund dollars to meet our Climate Action goals. Supplemental ARPA expenditures are no longer planned. October 29, 2025 Page 7 Next Steps: None. Small Business, Arts & Culture, and Tourism Investments Status: In Progrep Amount Funded: $750,000 Amount Expended: $353,257.09 At the June 6, 2022 City Council meeting, Council approved an agreement with Think Iowa City to replace $125,000 in lost hotel/motel tax revenue due to COVID-19 and to develop and administer a $125,000 tourism and visitor recovery grant program to spur tourism and economic activity in the Iowa City area. Of the $125,000 available through the grant program, Think Iowa City has awarded ten projects to date: • $7,500 to the Iowa Golden Gloves to host the 2023 Iowa Golden Gloves Championships boxing tournament in Iowa City, organized by the ICOR Boxing Club. • $15,000 to the Refocus Film Festival hosted by FilmScene in Iowa City in 2022 and 2023. • $30,000 to the Iowa City Downtown District to host the Winter Night Lights light display and winter programming in downtown Iowa City for 2023. • $5,000 to EntreFEST to host a two-day entrepreneurship and innovation conference in downtown Iowa City in June 2023. • $5,000 to The Black Voice Project to host the 2023 Juneteenth celebration downtown. • $5,000 to the Core4 cycling event that incorporates four fundamental surface types: gravel, b-roads, singletrack, and pavement. With 850 participants, plus spectators and support staff, the event brought over 1,200 people to Iowa City the weekend of August 19, 2023. • $5,000 to the Los Trompos temporary art exhibit downtown. • $10,000 to the Empowerment Symposium: Inspiring Black and Brown Professionals to Lead held September 19-20, 2024. • $10,000 to the African Festival of Arts and Culture held September 28, 2024. ■ $10,000 to the Iowa City Songwriters Festival planned for September 4-6, 2025. Think Iowa City continues to accept applications on a rolling basis. At the June 4, 2024 City Council meeting, Council approved Self -Supported Municipal District (SSMID) grants in the amount of $250,000 each for the two SSMIDs (South of 6 and Iowa City Downtown District). These grants provide flexible support to allow the SSMIDs to meet their organizational needs. The Iowa City Downtown District has begun utilizing funds for design of the Graduate Walkway lighting project and glass repair. South of 6 recently hired a new executive director, Maurice Davis, and is gathering quotes for projects to be undertaken. Next Steps: Staff intends to supplement the Skate Park Renovation Project in the CIP with a $500,000 award to ensure that project can be carried out in a manner that provides maximum value to the community. Once complete, the facility will be a regional tourism draw and a premiere community recreational amenity along the Iowa River. Public input has been gathered on the Skate Park design. Staff have been notified that a $250,000 Federal Land and Water Conservation Fund grant will also be able to be utilized for this project. The project will be bid in November 2025, and construction is anticipated for 2026. October 29, 2025 Page 8 Government Services and Revenue Replacement Status: Amount Expended: $2,552,156 Utility Assistance Program Council approved the resolution authorizing Utility Billing Revenue Replacement at their September 6, 2022 meeting, bringing utility accounts current as of June 1, 2022 and resuming regular collection procedures. The total cost for Utility Billing Revenue Replacement was $676,146.49. Administrative Expenses Administrative expenses attributed to ARPA are paid through the interest derived from the City's receipt of ARPA funds. Total administrative costs incurred to date is $240,554.30. Lead Reduction Council approved the resolution authorizing $500,000 for a City administered program to assist property owners with replacement of their lead water service lines at their November 6, 2023 meeting. This program will help qualifying property owners avoid unplanned, costly repairs and can be successfully launched without placing the burden on utility customers. The program has enabled 27 households to replace their lead or lead contaminated service lines to date, provided 64 NSF 53 certified pitcher filters with 1,536 filter replacements and completed two verification digs. The related insurance program has had more than 2,000 signups with about 15 claims serviced. Workforce Retention Incentive Council approved the resolution authorizing $1,135,455.40 for worker retention incentive bonuses to employees in the American Federation of State, County and Municipal Employees and Administrative, Confidential and Executive employee groups on December 12, 2023. The incentive is in response to an increase in turnover rates and a shrinking applicant pool for many critical positions. 515 employees received the bonus in December 2023.