OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

City Council Budget & CIP Meeting Summary - January 17, 2026

Council Meetings — Saturday, January 17, 2026
BodySioux City, Iowa
SessionCouncil Meetings
DateSaturday, January 17, 2026
StatusFILED
Video Record
0:00 / 3:48:35

Transcript — Verbatim
0:37

Morning.

0:38

Before Teresa starts, I would like to thank finance and all departments.

0:42

We start this process in July.

0:44

We're in January, so by the time we get done and council approves the budget, we have a couple months off and we start over again.

0:50

So it's a long process to get here.

0:52

So thank you for all the process and preparing.

0:55

Thank you.

0:56

Teresa Fitch Finance Director.

0:58

Today I'll go over just probably five to ten minutes of an overview of the CIP budget, which is presented to you today in a presentation, and then we'll start to move forward with each one of the projects that fall, either in the 27 or the 28th fiscal year.

1:13

Sarah will, I'm just gonna over just because we have some new council members.

1:23

If you have questions, that's your time to ask questions.

1:25

If not, we'll move on to the next project.

1:27

If you have another project you want to discuss that's not in one of the first two years, feel free during the time that that director is up to ask to discuss that project.

1:37

Because once the director leaves, they won't be back today.

1:40

So I just want to make sure you know the catch them at that time.

1:44

Okay.

1:45

Can you turn the presentation on?

1:47

Do you know?

2:05

The first item I'll discuss is the um timeline, the budget timeline.

2:08

Um as you can see in that first column, this is something that Mike alluded to just now.

2:12

These are the this is the work that is done um put into place before we even get to this point.

2:16

Um we ask the council for their priorities, we get a listing of them, and then that's how we move forward with both the CIP and the operating budget based on the council's priorities.

2:25

Um the departments spend um a month entering each one of the budgets.

2:29

We have the CIP peer review, uh the finance review, we do a manager view with the review with the department and the city manager.

2:36

Um we review all the improvement requests that have been um requested, and then we balance the CIP and the operating budgets, and that brings us to today.

2:43

Uh the first um hearing is always the CIP budget.

2:47

That's today.

2:47

We'll discuss the five-year capital plan and the debt service plan.

2:51

Um February 28th, we will discuss um the operating budget and um provide a property tax overview, and then in March and April, you'll see the levy reports come out and a deadline.

3:04

Um, and then the budget wrap-up will be March 18th, and then the budget will be presented to you for approval on um April 13th.

3:12

So we're we feel like a lot a bulk of the work is done, and um we're um proud of the um of the CIP budget and the operating budget that we'll present to you this year.

3:23

So the council priorities this year, um, the same as they've been in in multiple in the last several years.

3:29

Um infrastructure is always the top of the list and has been for several years.

3:33

Um quality of life is the um second item on the list, economic development, um followed by um health and safety, and then customer service.

3:40

So you'll see a lot of a lot of the CIP budget is centered around infrastructure.

3:47

So overall the CIP budget initially at entry, it was 132 million dollars.

3:53

Uh we have cut um through the the peer review process uh around 36 million dollars and we're down to a proposed budget year of 96 million six hundred twelve dollars and six excuse me, ninety-six million six hundred and twelve nine nine hundred and sixty-five dollars.

4:11

Um the the general um liability, this is what we're gonna discuss today primarily to the property tax levy that we discussed last week.

4:18

It's the general bond bond portion of that of the levy.

4:23

So today that that's mostly what we'll focus on.

4:26

Um when we go through this, uh we look specifically at um the geobonds and determine where we need to be for our debt service and our um and our debt levels.

4:36

So when we came in, we had 60 62 million dollars worth of um geo bond requests.

4:41

Um they cut nearly um 37 million to get us down to the 25 million five hundred thousand.

4:46

Um that's where we felt comfortable with the uh debt the debt levels, uh and you'll see where we fall um based on um the allowable amount of debt.

4:57

So Teresa, quick question.

4:59

Can you go back to that screen?

5:00

Sure.

5:02

When you eliminate or not, maybe not eliminate, that's the wrong word.

5:05

When you adjust on the review process, whether it's the CIP, the manager, the department reviews, are those projects either put into future years into unprogrammed years or eliminated.

5:21

Um they're typically moved out for balancing.

5:24

So we typically uh move them out and um for balancing purposes because we need to get to a certain dollar amount or for our um GO.

5:32

And at that time, um we that's where we take your priorities and we determine okay, here's the priorities the council gave us, and then we we shift things out, or things occur.

5:42

Um, you know, either a lot of times we move around transfer ins and transfer outs based on what the the um funds look like, um, but for the most part, that's everybody puts their wishes in that first year, and then we prioritize based on what the council has as direction they've given us.

5:58

Now, of course, the council always has the option to bring things forward, change things, flop things around, um, but that's why we asked for the priorities so that we can we can present what we think the council is looking for.

6:10

Otherwise, we're just kind of guessing.

6:11

So thank you.

6:14

So the proposed um CIP, you'll see again um majority of this is infrastructure.

6:20

Um, 36% of the total budget is airport, which is a large runway um project out at the airport infrastructure.

6:27

Um, the water, um at 15% at water, which is typically infrastructure, streets 14%, and then economic development is 10%.

6:34

Those are our largest um areas um in the CIP this year.

Discussion Breakdown — Share of Meeting
Engineering And Infrastructure█████████████████████21%
Water And Wastewater Management████████████████16%
Economic Development████████████12%
Parks and Recreation████████████12%
Budget Equity Analysis████████8%
Public Safety██████6%
Technology and Innovation████4%
Fire Services████4%
Public Engagement████4%
Summary of Proceedings

City Council Budget & CIP Meeting Summary - January 17, 2026

The Sioux City City Council convened on January 17, 2026, to review the proposed 2027 Capital Improvement Plan (CIP) budget and associated departmental project requests. Finance Director Teresa Fitch presented the overview, noting the CIP was reduced from an initial $132 million to a proposed $96.6 million following peer review to align with debt service limits and council priorities. The budget heavily emphasizes infrastructure (36% Airport, 15% Water, 14% Streets) and includes a reduction in the debt service levy to 2.83. Departments from Public Works, Finance, Parks, Public Safety, and Economic Development presented specific capital projects, with several items deferred, modified, or referred for further discussion during the budget wrap-up session.

Consent Calendar

  • No items were formally presented or voted upon during the initial segment of this meeting transcript.

Public Comments & Testimony

  • Public Right-of-Way Trees: A council member expressed strong opposition to using tax dollars for removing diseased trees in the public right-of-way, questioning the city's responsibility and cost allocation, specifically referencing an $80-100 million total impact for tree programs.
  • Downtown Funding Disparity: A council member criticized the perception of disproportionately high spending on downtown aesthetic and redevelopment projects (e.g., facade improvements, interior build-out grants) while expressing frustration that other city areas are underfunded.
  • Speculative Building Development: A council member argued against maintaining the "Speculative Building Development" line item in the budget, stating the city should either actively solicit developers to utilize it or remove the placeholder entirely, as no projects have materialized in five years.
  • Street Lighting Code: A council member questioned the replacement of traffic signals at Fifth and Cord, asserting the current signals are too short and non-compliant with sight-distance codes, citing a recent accident.
  • Perry Creek Flood Control: A council member inquired why the Perry Creek flood control project remains delayed after 20 years, attributing the stagnation to a lack of federal funding and the departure of a key senator.

Discussion Items

  • Library Morning Site Improvements: Director Helen Rigdon requested approval for a complete overhaul of the library parking lot pavement and curbs. Council members questioned the necessity of a full replacement versus a cheaper asphalt overlay and requested a strategic plan from the Library Board regarding long-term facility needs before committing funds.
  • IT Infrastructure Upgrade Cost Escalation: IT Director John Molloy warned the council of anticipated 30-40% cost increases in electronics and software licensing due to industry supply constraints and AI data center demand. He proposed advancing the bid schedule to February to mitigate price hikes, potentially saving $200,000-$250,000, though concerns were raised about maintaining the current infrastructure lifecycle.
  • Tyson Event Center Chiller Overhaul: Manager Chad Smith explained the critical need to rebuild the small chiller unit, which has never been rebuilt in its 43-year history and is required to protect the shared ice plant cooling tower. He detailed the aging Windows XP lighting control system and the need for a new basketball court to meet NAIA standards, noting the current court has developed "dead spots."
  • Tyson Event Center Basketball Hoops: A discussion ensued regarding the budgeted basketball hoops. Staff confirmed the NAIA is providing new hoops for the upcoming tournament, raising the possibility of purchasing a cheaper, similar product (Garrett Performance Sport) instead of the budgeted Spaulding product if testing proves comparable quality.
  • Police Armored Vehicle Acquisition: Chief Mueller requested a new "purpose-built" armored vehicle (Bearcat) to replace the current 12-year-old MRAP. He argued the current vehicle is ill-suited for urban environments and lacks adequate ballistic protection for officers and civilians. Council members debated the feasibility of sharing the asset with the county but were convinced by the Chief that the current limitations pose a significant safety risk.
  • Fire Station 1 Restroom Remodel: Chief Collins requested $200,000 to remodel Station 1 restrooms to accommodate increased female staffing. Council members expressed skepticism regarding the high cost for a relatively small room and requested detailed breakdowns of the estimate before approval.
  • Floyd Valley Redevelopment (Baseball Building): Discussion centered on the delay of the baseball building construction, with Council members criticizing the lack of accountability for construction deadlines in development agreements and the tendency to extend Tax Increment Financing (TIF) periods. Staff noted an extension would be proposed but acknowledged the need for stricter enforcement.
  • Speculative Building Development (Revisit): Following the initial dismissal, the council requested a formal inventory of available land for spec buildings and an RFP to solicit developers, with a recommendation to keep the budget line but actively market the opportunity.
  • Southeast Development & Data Centers: Staff discussed potential data center development in the southeast area, acknowledging concerns about high electricity and water usage. They countered that smaller campuses could generate significant property tax revenue if secured.
  • Water Main Replacement Bidding: Council members questioned the delay in bidding on multiple water main replacement projects, expressing frustration that design work is not being completed early enough to bid before the peak summer construction season. Staff committed to moving bids to February/March.
  • Lead and Copper Rule Implementation: A controversial discussion occurred regarding the federal Lead and Copper Rule improvements. Staff clarified that the SRF loan covers 49% of costs while the borrower (residents) must cover 51%. Council members expressed concern over the financial burden on low-income homeowners and the city's liability if the program proceeds without a clear, affordable cost-sharing mechanism for residents.
  • Floyd River Drainage & Ball Fields: A presentation outlined a necessary flood control project involving a new basin and box culvert to remove 133 homes from the flood zone and enable the relocation of the ballfields. The project was phased, with the basin and culvert requiring immediate design and funding in Fiscal Year 28.

Key Outcomes

  • Budget Reductions: The CIP budget was successfully reduced by approximately $36 million during peer review, bringing the total proposed CIP to $96,612,965 and the GO bond request to $25.5 million.
  • Levy Reduction: The debt service property tax levy was approved at 2.83, a reduction from 3.34 in the previous year, representing a 15.25% decrease.
  • Referrals for Wrap-Up: The following items were referred for further discussion and potential technical changes at the budget wrap-up session:
    • Library Morning Site Improvements: Requesting a strategic plan from the Library Board and considering cost-effective alternatives to the full pavement replacement ($31907).
    • IT Infrastructure Upgrade: Determining the timeline for bid to mitigate price increases ($35906).
    • Tyson Event Center Projects: Evaluating the basketball hoop vendor options and confirming the use of project balance for the chiller overhaul ($379010).
    • Fire Station 1 Restrooms: Requesting detailed cost breakdowns for the $200,000 remodel ($159019).
    • Speculative Buildings: Developing a land inventory and RFP process ($663150).
    • CBD Slum and Blight: Requesting a priority list of opportunity acquisitions ($66306).
    • North Site Industrial Development: Re-evaluating funding and developer interest ($663305).
    • Lead and Copper Rule: Decision on the cost-sharing model and resident burden ($519273).
    • Floyd River Drainage: Confirming the funding transfer to Fiscal Year 28 for the basin and box culvert project ($459026/459180 context).
  • Action Required: Staff directed to bring a memo regarding the Tyson Event Center roof bid savings and reallocation of funds ($379010).
  • Future Planning: Staff directed to provide options for converting the Stormwater Fund to an enterprise fund or adjusting rates to cover the Bacon Creek Culvert improvements ($549156).

Meeting Transcript

Morning. Before Teresa starts, I would like to thank finance and all departments. We start this process in July. We're in January, so by the time we get done and council approves the budget, we have a couple months off and we start over again. So it's a long process to get here. So thank you for all the process and preparing. Thank you. Teresa Fitch Finance Director. Today I'll go over just probably five to ten minutes of an overview of the CIP budget, which is presented to you today in a presentation, and then we'll start to move forward with each one of the projects that fall, either in the 27 or the 28th fiscal year. Sarah will, I'm just gonna over just because we have some new council members. If you have questions, that's your time to ask questions. If not, we'll move on to the next project. If you have another project you want to discuss that's not in one of the first two years, feel free during the time that that director is up to ask to discuss that project. Because once the director leaves, they won't be back today. So I just want to make sure you know the catch them at that time. Okay. Can you turn the presentation on? Do you know? The first item I'll discuss is the um timeline, the budget timeline. Um as you can see in that first column, this is something that Mike alluded to just now. These are the this is the work that is done um put into place before we even get to this point. Um we ask the council for their priorities, we get a listing of them, and then that's how we move forward with both the CIP and the operating budget based on the council's priorities. Um the departments spend um a month entering each one of the budgets. We have the CIP peer review, uh the finance review, we do a manager view with the review with the department and the city manager. Um we review all the improvement requests that have been um requested, and then we balance the CIP and the operating budgets, and that brings us to today. Uh the first um hearing is always the CIP budget. That's today. We'll discuss the five-year capital plan and the debt service plan. Um February 28th, we will discuss um the operating budget and um provide a property tax overview, and then in March and April, you'll see the levy reports come out and a deadline. Um, and then the budget wrap-up will be March 18th, and then the budget will be presented to you for approval on um April 13th. So we're we feel like a lot a bulk of the work is done, and um we're um proud of the um of the CIP budget and the operating budget that we'll present to you this year. So the council priorities this year, um, the same as they've been in in multiple in the last several years. Um infrastructure is always the top of the list and has been for several years. Um quality of life is the um second item on the list, economic development, um followed by um health and safety, and then customer service. So you'll see a lot of a lot of the CIP budget is centered around infrastructure. So overall the CIP budget initially at entry, it was 132 million dollars. Uh we have cut um through the the peer review process uh around 36 million dollars and we're down to a proposed budget year of 96 million six hundred twelve dollars and six excuse me, ninety-six million six hundred and twelve nine nine hundred and sixty-five dollars. Um the the general um liability, this is what we're gonna discuss today primarily to the property tax levy that we discussed last week. It's the general bond bond portion of that of the levy. So today that that's mostly what we'll focus on. Um when we go through this, uh we look specifically at um the geobonds and determine where we need to be for our debt service and our um and our debt levels. So when we came in, we had 60 62 million dollars worth of um geo bond requests. Um they cut nearly um 37 million to get us down to the 25 million five hundred thousand. Um that's where we felt comfortable with the uh debt the debt levels, uh and you'll see where we fall um based on um the allowable amount of debt. So Teresa, quick question. Can you go back to that screen? Sure. When you eliminate or not, maybe not eliminate, that's the wrong word. When you adjust on the review process, whether it's the CIP, the manager, the department reviews, are those projects either put into future years into unprogrammed years or eliminated. Um they're typically moved out for balancing.

SUMMARIZED BY OPENPUBLICA AI
TRANSCRIPT VIA PUBLIC VIDEO
openpublica.com