Committee of the Whole Meeting

COMMITTEE OF THE WHOLE MINUTES City Hall, 220 Clay Street March 3, 2025 The meeting of the Committee of the Whole met at City Hall at 5:30 p.m. on March 3, 2025, with the following Committee persons in attendance: Gil Schultz, Chris Latta, Daryl Kruse (virtual), Aaron Hawbaker, Dustin Ganfield, Hannah Crisman, and Kelly Dunn. Absent: None. Staff members from all City Departments, UNI Student Liaison Isaac Mata, and members of the community attended in person. COMMITTEE OF THE WHOLE: Mayor Laudick called the meeting to order and introduced the only item on the Committee of the Whole agenda, FY26 Presentation & Discussion of Mayor’s Proposed Budget. Mayor Laudick reviewed the FY26 budget schedule, and presented information about the max levy if left at the currently proposed $12.50, including CIP items Council is committed to for FY26, items added through goal-setting or that were upcoming from the previous budget, budgetary increases for departments, and other minor small line-item differences. Mayor talked about the property tax effect and tax burden shift including property assessed values. Mayor made two recommendations to Councilmembers to adjust the proposed budget and lower the max levy to $12.20. Recommendations included: removing $300,000 from Hearst Center Remodel Capital Projects budget, leaving $200,000 from Hotel/Motel tax funding and moving forward with the project’s original remodel plan; reducing UNI Dome funding commitment from $3M to $2M and transferring that $1M to Capital Projects fund and applying $295,000 of that toward various one- time capital expenses for FY26. Mayor reviewed a slide that referenced these changes and the updated property tax effect it would have; provided information on the median household change it would create. Mayor provided an overview of the Hearst Center Expansion Project funding sources and projected amounts, and referenced meetings with the Arts and Culture Board and Friends of the Hearst regarding changing the goal-setting recommendation to build a new facility v. the originally proposed re-model; Mayor indicated the Black Hawk Gaming funding would likely be less. Mayor proposed the Committee recommend to City Council to direct staff to move ahead with a levy rate of $12.20 to bring forward for final approval at the April 7th Special Council Meeting; Mayor proposed the Committee recommend to City Council to direct staff (and community partners) to move ahead with the Hearst remodel project’s next steps and private fundraising as originally proposed. Mayor opened for Councilmember and staff discussion and responses, which included: reduction of the amount committed to the UNI Dome project by $1M, and reallocation of that funding; timeline for distribution of the $2M to the UNI Dome project and the pending contract; additional fundraising by UNI to offset the City’s funding; the cost of a new build v. remodel for the Hearst center; need to further reduce the budget and tax levy amount; use of fundraised monies by UNI; up-front cost of rebuilding the Hearst and concerns about adding to/remodeling the older structure; the decision to focus on the Hearst project instead of the proposed new Public Safety building or updating the Rec Center; the increase in the max levy amount from prior years, millage rate, increased property valuation, HF718 and effects of state legislation; UNI Student Liaison Mata urged Council to look at the UNI funding as an investment; the ability to further amend the budget at a future public hearing; commitment of future funding to programming at the Hearst; feasibility of $3M in fundraising for the Hearst; taking all factors into account when presenting the tax effect on residents and business owners; importance of economic development in lowering the residential tax rate. Mayor requested a motion recommending City Council to direct staff to move ahead with a levy rate of $12.20. Hawbaker motioned and Crisman seconded. Mayor asked for public comment: there being none, Mayor asked for any further Council discussion. Councilmember Kruse stated the rate needs to be lower. Councilmembers Ganfield and Schultz spoke in favor of the proposed rate. Mayor called for a voice vote on the motion. Aye: Schultz, Latta, Hawbaker, Ganfield, Crisman, and Dunn; Nay: Kruse. Motion carried 6-1. Mayor requested a motion recommending City Council to direct staff (and community partners) to move ahead with the Hearst remodel project next steps and private fundraising as initially proposed. Hawbaker motioned and Crisman seconded. Mayor asked for any further Council discussion; there being none, Mayor asked for any public comment; there being none, Mayor called for a voice vote on the motion. Aye: Schultz, Latta, Hawbaker, Ganfield, Crisman, and Dunn; Nay: Kruse. Motion carried 6-1. Meeting adjourned at 6:30 p.m. Minutes by Katie Terhune, Administrative Supervisor