Iowa City releases proposed $2025–2029 Capital Improvements Plan; debt levy and large projects spotlighted

Iowa City staff presented the proposed 2025–2029 Capital Improvements Plan at a Jan. 22 work session, outlining $100s of millions in street, water, transit, parks and facilities projects and warning that rising construction costs and limited debt capacity will force trade-offs in coming years.

The CIP presentation, led by Ron Kinaki, Public Works Director, covered the plan development timeline, major categories of projects, and funding sources. Jacqueline Fliegel, Assistant Finance Director, said the city is planning a FY25 bond issue of $14,290,000 and that the current plan assumes average annual bond issuances of about $15,250,000; with current levy assumptions and growth projections the debt levy can support about $14,600,000 annually. "What we're planning to bond for this year, to start off, is $14,290,000," Fliegel said.

Why it matters: The CIP lists 104 projects in a five-year program, and staff said the most exposed items — large street reconstructions, a proposed transit maintenance facility, the City Park Pool and several water and wastewater upgrades — depend on a mix of GO bonds, federal grants, reserves and other sources. If growth and interest-rate assumptions fall short, the city will have to raise the debt levy further, scale back projects or delay them.

Major categories and flagship projects

- Streets and transportation: Streets are the largest category (about 33.6% of budgeted CIP expenses cited in the presentation). Notable projects called out included Dodge Street reconstruction ($20.1 million), Taft Avenue reconstruction ($12.2 million) and annual pavement rehabilitation ($11.9 million). The presentation also listed planned two-way conversions for Market and Jefferson streets, the Court Street reconstruction (Muscatine Avenue through First Avenue)…