Master Proposed Book FY2023

a 4- to 3-lane conversion on Keokuk with bike lanes from Highway 6 to Sandusky; bike lanes along Southgate (Keokuk to Gilbert); S. Gilbert Street 4-lane to 3-lane conversion (Southgate to McCollister); Wetherby, Hollywood, and Lakeside bike boulevards, and extension of the Highway 6 Trail (Heinz Road and Fairmeadows). 2022-2023 road construction and resurfacing projects will result in bike lanes on W. Benton Street (Mormon Trek to Greenwood); Rochester Avenue (1 st to Montrose); buffered bike lanes and a sidepath in conjunction with the extension of American Legion Road; and a 4- to 3-lane conversion with bike lanes on Madison (Burlington to Iowa). Existing bike lanes of Jefferson and Market Streets will also be upgraded to buffered bike lanes. Anticipated 2023 projects include bike lanes along Sunset (Benton to Highway 1) and establishing bike boulevards along Emerald, Arlington, and Oakcrest. Core Services: Significant funds are also devoted to artistic and cultural endeavors, fostering the vibrant community that makes Iowa City such an attractive place to live and visit. Operational support is provided for the Englert Theater, FilmScene, Summer of the Arts, EntreFest, City of Literature, Mission Creek Festival, and Riverside Theatre. Funds contributed to the Iowa City Downtown District are used for placemaking activities and art installations and additional funding has been budgeted to support placemaking in the proposed South District Self-Supporting Municipal District. The budget also includes continued funding for the Cyclocross World Cup, Bike to Work Month activities, Juneteenth Celebration, MLK Day Celebration, and partnership events. Finally, this budget continues to maintain responsible funding levels for roadway repairs and equipment replacement. In addition to annual pavement rehabilitation program funding, several important road rehabilitation and reconstruction projects are planned for 2022 including reconstructions of Rochester Avenue (First Ave. to Ralston Creek) and Fairchild Street. Various water, sewer, and landfill projects are also planned in accordance with replacement and maintenance schedules. As the need for replacement of many City facilities grows, this budget continues to fund and refine the schedule for use of the facility reserve fund to address major needs such as the Senior Center, Transit and Equipment Maintenance facilities, aquatic facilities, and additional fire stations. This long-term financial planning strategy will help the City fund the next generation of public facilities without the need for undertaking significant long-term debt. Budget Impacts and Financial Goals This budget was developed within the context of several significant financial impacts: • The final years of the phased 2013 state property tax reform, including an estimated $146 million loss in multi-residential taxable value in Fiscal Year 2023 and an anticipated loss of well over $200 million in Fiscal Year 2024. • Beginning in 2023, commercial and industrial property tax backfill payments (which have historically totaled $1.5 million annually) will be phased out over a five-year period. • Despite an increase in assessed value, the City anticipates zero growth in taxable valuations in the coming fiscal year, driven by the continued drop in multi-family rollback and a 2.27% drop in the residential rollback rate, the lowest rate since Fiscal Year 2014. • Ongoing financial impacts caused by COVID-19 include continued lags in revenue for some City services and higher cost of goods.

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