Iowa City budget adds funds for climate change and affordable housing efforts

IOWA CITY - The Iowa City Council on Tuesday approved a fiscal 2022 budget that provides funding for key local initiatives - affordable housing, climate change policies and aid to nonprofits - despite economic uncertainty.

'I think all of those speak highly of a budget that's geared toward the goals of the City Council,” member Susan Mims said.

The city spending plan was approved unanimously. Among highlights of the budget that starts July 1:

' $1 million is earmarked for the affordable housing fund, bringing it up to $4.4 million over the last five years.

' An additional $20,250 is devoted to the Aid to Agencies budget, bringing it to $725,250. Aid to Agencies offers funding to nonprofits that provide public services. The 3 percent increase comes after a 54 percent increase in fiscal 2020.

' An emergency tax levy - which is unchanged from one in fiscal 2021 - is expected to generate $1 million for climate action initiatives.

' Under the plan, the minimum wage for temporary city employees increases to $15 an hour.

'It cannot be understated how rare the flexibility to invest millions of dollars in climate action initiatives, social justice and racial equity, affordable housing, historic preservation and public health and crisis services is for a municipal government,” City Manager Geoff Fruin wrote in a budget letter. 'These audacious undertakings are being accomplished as we continue to address deferred road, facility, and park maintenance, fill staff positions to serve a rapidly growing community, invest in healthy reserve funds and tackle the challenge of aggressive multi-residential residential rollback rates.”

The council approved a property tax rate of about $15.67 per $1,000 of taxable valuation, the city's lowest rate since fiscal 2002. But an owner's overall city tax bill could increase if the property's assessed value rose or if more of the value is subject to taxes under the state rollback.

The owner of a $100,000 house will pay $884 in city property taxes, the budget says.

The budget adds the equivalent of three full-time employees, including a full-time public safety communications specialist and a full-time civilian supervisor. The city also plans to hire a half-time civilian community outreach assistant focused on the immigrant and refugee populations.

The budget does not include any increases for city utility, transit or parking fees. But a 5 percent increase in the water rate that was delayed in July 2020 due to the pandemic will begin.

Comments: (319) 339-3155; lee.hermiston@thegazette.com