Committee of the Whole Meeting

COMMITTEE OF THE WHOLE MINUTES City Hall, 220 Clay Street February 16, 2026 The meeting of the Committee of the Whole met at City Hall at 5:25 p.m. on February 16, 2026, with the following Committee persons in attendance: Mayor Danny Laudick, Gil Schultz, Chris Latta, Tom Nagle, Aaron Hawbaker, Craig Fairbanks, Hannah Crisman, and Kelly Dunn. Staff members from all City Departments and members of the community attended in person. COMMITTEE OF THE WHOLE: Mayor Laudick called the meeting to order and introduced the first item on the Agenda, MET Transit Budget Request and Information and introduced General Manger David Sturch. Sturch provided an overview of MET’s public transportation services and noted funding sources; MET has a 28E agreement with the cities of Cedar Falls and Waterloo. Sturch stated MET offers 11 fixed routes through Waterloo, Cedar Falls, and to Hawkeye Community College; provided a breakdown of weekday/weekend and passenger demographics; and Cedar Falls route usage from FY21 to FY25. Sturch spoke about Paratransit services (door-to-destination); provided a breakdown of weekday/weekend and ride distribution between Evansdale, Waterloo, and Cedar Falls. Sturch provided information about the Transit Study including route restructuring evaluation, fare analysis, fleet transition plan to zero emissions, and rider and bus stop amenities. Sturch shared statistics about funding sources and changes since FY19. Sturch presented potential upcoming options including micro-transit services, funding options, and potential rideshare; and improvements to passenger experience such as real-time GPS, route signage, and improved fare payment options. Sturch noted challenges including increased cost for bus replacement, increased insurance costs, requests for expanded coverage and hours, and the driver workforce. Mayor Laudick opened for Council discussion. Councilmembers, Mayor, staff and Sturch discussed: paratransit counts have start and end points in Cedar Falls; investing more to increase the population served; qualifying for ADA/paratransit services and service set-up; current outreach to senior populations; and the discontinued UNI route – discontinued during COVID, student benefits of route, funding for the route, current student interest in restarting the route, and potential for expansion of route. Mayor Laudick introduced the second item on the Agenda, FY27 Budget Presentation and introduced Director of Finance and Business Operations Jennifer Rodenbeck. Rodenbeck provided the budget process timeline from November through April yearly. Rodenbeck reviewed House File 718 (HF718) and its effects on the allowed Combined General Fund Levy (CGFL) rate and removal of certain levies (library and band, specifically) and the impact on City budget; provided a breakdown of the use of CGFL; expanded homestead and military credits, budget filing deadline moved to April 30, and a property tax statement mailed to all property owners by March 20. Rodenbeck explained three components to taxes paid: Rollback (determined by the State) and Backfill funding which is not guaranteed and is being phased out; Valuations (determined by the County) or the assessed value of a property, with reassessment during odd years; and the Tax Rate determined by the City through the budget process. Rodenbeck explained the Business Property Tax Reimbursement (BPTR), House File 2552 (HF2552) regarding qualifying taxable value on commercial/industrial properties at the residential rollback rate, or “Backfill 2.0” and provided data on the residential rollback from FY16 to FY27. Rodenbeck provided the current max levy amount that Council can approve, $12.29; data on other cities; FY26 tax rates; the property tax effect; and information in the letter from the County, expressing that many citizens have questions or concerns regarding the letter as the information does not always present an accurate picture. Rodenbeck noted several budget items including: salaries and benefits for union and non-union employees; increases in health insurance contribution; added staffing positions; items included in the CIP FY27 column; hotel/motel tax revenue; EMA Consolidated Dispatch; and outside agency funding including: Community Betterment and Economic Development Funding, Health Trust Funding, Municipal Band funding, and MET Transit funding. Rodenbeck presented the challenges looking forward including: backfill phase-out, the new business tax credit (backfill 2.0) and potential for phase- out or discontinuation, and potential property tax reform bills that may affect levy limits; tools looking forward including: saved-up capital replacement funds, continued saving for economic development, and some capacity left in trust and agency levy. Rodenbeck detailed the budget schedule noting next steps and the two special public hearings on the budget prior to adoption by Council and certification to the County. Rodenbeck asked for a motion to recommend City Council set the proposed tax levy rate at $12.29 and to hold the special public hearing on April 6, 2026 at 5:15 PM, and reminded Council that the rate can always be reduced at a later date; motioned by Dunn and seconded by Crisman. Mayor opened for Council discussion. Councilmembers, Mayor, Rodenbeck, and staff discussed: how Goal Setting leads into the budget creation and potential staff recommendations on alternate funding sources if Backfill 2.0 is phased out or discontinued. Mayor opened for public discussion. There being none, Mayor opened for further Council discussion. There being none, Mayor called for a voice vote. Aye: Schultz, Latta, Nagle, Hawbaker, Fairbanks, Crisman, and Dunn. Nay: none. Motion carried unanimously. Meeting adjourned at 6:24 p.m. Minutes by Katie Terhune, Administrative Supervisor