FY26 Proposed Budget

In fiscal year 2025, the City utilized American Rescue Plan Act (ARPA) funds to purchase three 3-bedroom townhomes at 4673 Herbert Hoover Highway Units A, B, and C (Legacy Condos) and two vacant lots at 1002 and 1006 N. Summit Street for the future development of up to 36 units of affordable housing. Both the Legacy Condos and the multi-family development to be constructed on N. Summit Street will be operated by the Housing Authority as income and rent restricted permanent affordable housing.

The Iowa City Property Management Fund accounts for the operations of the City-owned rental units in these seven developments.

Fund Balance: The fiscal year 2026 ending fund balance is projected at $179,936. The reduced fund balance is due to the $210,784 loan balloon payment due in fiscal year 2026.

Revenues: Rental income is projected at $259,400 in fiscal year 2026, an increase of 17.1% from fiscal year 2025. This is due to an increase primarily in Railroad Rentals.

Expenditures: Expenditures are budgeted to increase by $116,575 or 38.7% in fiscal year 2026 primarily due to the Peninsula loan balloon payment.

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