FY2024 Proposed Budget

2025 • City Park pool replacement • Senior Center interior improvements • Dodge Street reconstruction • Westside Park Land Acquisition • North Gilbert Street reconstruction • Bradford Dr water main replacement • Transit Facility Relocation

• Wastewater Return Activated Sludge Pump replacement • Library carpet and furnishings • College Green Park playground • Upper City Park improvements • Airport Terminal Building remodel and reconstruction

2026 • Highway 6 trail extension • Taft Avenue reconstruction

• Reno Street Park renovations • Carson Lake Park • Water Plant roof replacement • Airport apron expansion • Recreation Center Improvements

• Napoleon Park softball field renovation • River Street Storm Sewer improvements • N. Market Square playground

2027 • Airport runway extension • Fire Station #5 and #3 construction

• Market & Jefferson two-way conversion • Burlington Street bridge replacement • Wastewater Lift Station improvements • Water GSR upgrade and repairs

• Iowa River Trail extension • Dog Park improvements

Debt Service Staff is projecting general obligation bond issues of $9.7 million in Fiscal Year 2023 and $14.8 million in Fiscal Year 2024, including 2% for bond issuance costs. The use of G.O. bonds is required to carry out the projects that are being recommended. 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 $68 million at Fiscal Year 2024 year-end, which is approximately 0.92% of total valuations and equal to roughly 18.3% of the allowable debt level established by the State. 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 included in the Fiscal Year 2024 budget remains unchanged from the prior fiscal year and accounts for approximately 16% of the City’s total levy. The following depicts outstanding general obligation and TIF revenue debt as a percentage of total valuations.

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