Council reviews city projects for new fiscal year

The next year in Creston is packed with projects, from home and city improvement to local businesses.

Creston City Council reviewed projects during last week’s budget workshop scheduled for the next fiscal year as well as other possible additions. In the FY26 budget are Creston’s new Homes for Iowa project and various aspects of the Neighborhood Revitalization grant.

The new Creston Spec. Home Project partners with Homes for Iowa to bring pre-built homes to city-owned empty lots for low- and middle-income families. In order to purchase a home through this project, a buyer must have a yearly household income below $125,000 and be able to secure a mortgage covering the cost of the project total. Exact cost will depend on buyer-decided options and additions.

City accounting manager Mandy Parsons explained she put $200,000 into the budget for this program, with the assumption the city would be reimbursed for the homes once bought.

“This is assuming the property will be purchased and sold in the same year. That may not happen, but that’s what I have in there budgeted at this point,” Parsons said. “[If not sold in the same year] we would just have a lower fund balance than I would expect in general fund in one year and higher in the next year.”

The budget also includes funding for any work the city might do regarding the Comprehensive Neighborhood Revitalization Grant. With $1.75 million awarded to Creston at the end of July 2024, the grant money must be spent over the course of four years. The city will spend the money initially and be reimbursed with the grant.

Projects to be included in the grant range from uptown lighting, a new park along Adams Street, sidewalk improvements and housing rehabilitation. While many of these projects are still in planning mode, the council already approved the housing rehabilitation program, known as the Creston Home Improvement Program.

CHIP provides matching funds for exterior home improvements at a ratio of 1:3, or homeowners pay $1 for every $3 from CHIP, with a maximum of $10,000 from the city. The property must be owner occupied and within city limits. There is no minimum project cost.

To be eligible for the program, the homeowner must meet the income limits. For example, one person in the home must not exceed $47,450. If the resident has two people, the combined income must not exceed $54,200. More specifics on the income limit can be found on the city’s website.

As planning continues on the rest of the grant projects, council member Josh Thompson requested more frequent updates from Update Uptown.

“Do you think it would be uncalled for to ask for a status update? Would it be appropriate for someone to come to city council? Also, that way the public knows we aren’t just sitting on money,” Thompson said. The council agreed quarterly updates would help keep everyone better informed.

Though not yet established in the budget, the council also went over various other projects that may come up during the next fiscal year. The main concern was whether the city could afford to support Southern Prairie Family Fitness Center with the requested $60,000 a year for five years.

While Parsons said she wasn’t for or against the contribution, she pointed out the city’s estimated general fund for next year, where money for SPFFC would be taken from, was already tight.

“The way we have it set up in the budget right now is we have general fund revenue of about $6.6 million and general fund expenses of about $6.8 million, so we have more expenditures than revenue,” Parsons said. “The budget is conservative. We are not going to spend $6.8 million. We may not bring in $6.6 million, though.”

While the city is still working with various departments to make cuts in order to bring down the possible $6.8 million in expenses, an extra $60,000 a year in expenses would be impactful.

The council discussed different ways to shuffle money around in a way that might help the fitness center, as well as asking SPFFC representative Skip Kenyon if less money or less years would be feasible.

“I think we really need to stay at the $60,000 if we can. I think if there’s an issue about term, instead of five years we look at three. That would work,” Kenyon said. “Three years would be tight, but I’d rather it go that way than cut down the annual amount, because we need $180,000 a year. To the extent that the city goes less than $60,000, that means we have to find another pot to get it out of too.”

The city already contributes $31,000 a year to the fitness center for maintenance and scholarships. The $60,000 a year would be in addition to the $31,000 currently provided.

The scholarship money, about $10,000, comes out of the city’s Low- to Moderate-Income fund, which at the moment holds about $400,000. Other city programs use LMI funds as well.

While contributing $60,000 from the general fund may be difficult, council member Jen Worisek asked about using more LMI funds, since the fitness center uses much more than $10,000 a year on scholarships.

“Say we increase it to $30,000 from $10,000… Could that increase then be part of the $60,000?” Worisek asked. Kenyon said such a change would work for SPFFC.

While the fitness center’s plight is the most immediate of the city’s possible FY26 projects, it certainly isn’t the only one.

In late January, the council approved a resolution to allow a pre-application for a Catalyst grant for renovations to the closed Strand Theater to be submitted. The pre-application was approved, so owner Nick Foltz must now continue with the full application. This will includes a contribution from the city, though exact amounts are not yet known.

Previous Catalyst grants include Three Little Birds Marketplace and Hot Air Brewing, both of which used Tax Increment Funding. The city also gave $10,000 for the You Are Beautiful building’s Catalyst grant.

The first of two public hearings regarding the proposed budget and property tax levy for FY26 will be held at tonight’s 6 p.m. city council meeting.