FY27 Proposed Budget

the City will be unable award funds until revenue is received which will likely be the final quarter of FY 2027. This budget proposes allocating 75% of this funding, or $1,575,000, as follows:

Key Strategic Plan Actions: Community Partnerships

 1.2 Act on building regulation recommendations outlined in the Accelerating Iowa City’s Climate Actions Report; including the successful launch and execution of climate action incentive programs for both existing and new buildings across multiple sectors of the economy.  2.1 Fully evaluate the feasibility and funding sources needed for a zero-fare transit system.  3.1 Enhance sustainable access to affordable childcare for all populations through innovative partnerships with schools, higher education, non-profits, and the business community.  3.2 Utilizing American Rescue Act Funds, execute on recommendations in the Inclusive Economic Development Plan with a particular focus on actions that build long-term support and wealth-building opportunities for systemically marginalized populations.  3.3 Partner with Kirkwood Community College, Iowa City Community School District, Iowa Labor Center, local trades, businesses, and other stakeholders to provide meaningful career development opportunities, pre-apprenticeship, and apprentice programs.  3.5 Create flexible incentives to support the top goals of Iowa City’s Self-Supporting Municipal Improvement Districts, Greater Iowa City, Inc. Strategic Investment Districts, and other commercial nodes, including attaining a desired business mix that serves the surrounding neighborhood.  4.2 Leveraging American Rescue Plan Act funds, build capacity in local non-profits that will help ensure they are able to meet future community demands.  4.3 Expand the Mental Health Liaison program with CommUnity Mobile Crisis with a goal of 24-hour coverage by the end of FY28.  4.4 Actively promote 988 throughout the year and ensure that CommUnity Mobile Crisis has resources to meet community demands.  4.6 Integrate CommUnity Mobile Crisis into the 911 dispatch protocols.  4.11 Continue to build and strengthen trusted neighborhood based resilience hub partnerships throughout the community.

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$592,500 is provided to support existing City grant programs. These include Climate Action related grants formerly funded by the now defunct Emergency Levy, the annual Human Rights grant, and an increase to Aid to Agencies social service funding. The LOST funds provide important General Fund relief of $583,100. Climate Action and Human Rights grant do not expand, but are shifted to a more stable funding source, while Aid to Agencies social service grants benefit from LOST covering the unbudgeted program increase of more than $358,000 awarded in FY 2026 and allow for an additional 13.1% ($143,000) expansion in FY 2027. $375,000 is allocated to bolster long stagnant funding for arts and culture non-profit organizations. This will provide an initial 10.4% ($26,000) increase for direct organization support, and the remaining $350,000 would seed a new Iowa City Arts Endowment at the Johnson County Community Foundation and seed an Arts Alliance. Staff estimates tapering endowment contributions over several years will allow the City to shift current arts and culture

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