Mayor Bruce Teague outlines housing, transit and social-service priorities in sixth State of the City

Mayor Bruce Teague delivered his sixth State of the City address at FilmScene, saying Iowa City will continue prioritizing racial equity, climate action and collaboration while confronting budget pressures.

"Iowa City is guided by three core values that define who we are and what we strive to be," Mayor Bruce Teague said, listing racial equity, human rights and social justice among the city’s guiding principles and describing partnerships with local nonprofits, businesses and regional partners.

Teague framed the talk around mobility, housing, neighborhood investments and public health. He said the city's fare-free transit pilot led to passenger trips increasing "by more than 40% in the first year," and that the city has selected a design team for a new transit facility supported by $23,000,000 in federal grants. He said grant funding for the pilot ends in 2025 and the city is "identifying the best way to sustain this essential public service moving forward."

On housing, Teague announced Iowa City was one of 21 communities selected by the U.S. Department of Housing and Urban Development for a Pro Housing Grant of $3,750,000. He said that grant will support updates to the comprehensive plan, creation of a housing counseling program and direct city efforts to develop affordable housing. The mayor also listed other housing steps taken in 2024: the housing authority’s purchase of three town homes for permanent affordable housing, the addition of six units of permanent supportive housing tied to a shelter partnership, and $1,300,000 in federal entitlement funds plus roughly $1,000,000 from the city’s affordable housing fund for programs including rehabilitation, down-payment assistance and new rentals.

Teague described investments in neighborhood amenities and parks work completed in 2024 and plans for projects next year including the City Park Pool reconstruction, Terrell Mills Skate Park redevelopment and a new Adelaide Joy Park on Shannon Drive.

On economic inclusion, the mayor said the city awarded $4,000,000 in American Rescue Plan Act dollars to community initiatives, including a regional hub for underrepresented businesses at Dream City in the South Of Six business district, and launched a targeted Small Business Development Grant. He also noted the city’s "Grama year" cohort expanded to 28 graduates in 2024.

Childcare and social services were also highlighted. Teague said the city provided $2,000,000 to the Neighborhood Centers of Johnson County to develop a Family Resource Center and an early childhood center in Towncrest that will create at least 50 child-care slots. He described the Child Care Wage Enhancement Program, which the mayor said recently expanded to enhance wages at six childcare centers, and said the city awarded $1,000,000 to a free medical clinic to expand capacity and accessibility.

Teague described steps to integrate mental-health response into public safety: continued work with Johnson County on a community violence intervention program, coordination to divert appropriate 911 calls to the 988 mobile crisis line, two mental-health liaisons, and a co-responder police officer model. He also said the city started a resilience hub pilot with the Neighborhood Centers of Johnson County and the Iowa City Bike Library to support services before, during and after extreme weather events.

On facilities and finance, Teague said the city employs more than 650 staff, completed a space needs assessment for City Hall, the police station and Fire Station 1, and is exploring moving some facilities off-site. He said Moody’s reaffirmed the city’s bond rating and noted the rating helps lower borrowing costs; he added the city faces "some of the most difficult budgetary years in the last two decades" because of state-mandated property tax reforms, stagnating taxable valuations, inflation and volatile expenses.

Looking ahead, Teague said the city has built $6,800,000 in affordable-housing fees from inclusive zoning and tax-increment financing policies to reinvest, and listed sustaining fare-free transit, building a new city pool, reconstructing Court Street and planning for Burlington Street bridge replacement as priorities for 2025. He closed by calling for unity and thanking staff, partners and residents.

Performances at the event included a brief song by "Mama Teague" and a performance by the Q Choir of Eastern Iowa; FilmScene served as the venue and was cited by the mayor as an example of the city’s cultural partners.