Nearly a year after approving a $104 million project to upgrade facilities across the district, the Iowa City Community School District board of directors has put the plan on hold.
At the Tuesday, May 12 regular meeting, the ICCSD board of directors unanimously approved the “Facilities Master Plan Resolution,” temporarily pausing projects that included new athletic fieldhouses and a $14 million investment in the Coralville Recreation Center.
The resolution allows a few projects already in progress to proceed, while establishing conditions for resuming work.
In June 2025, the ICCSD board of directors approved the district’s $104.6 million facilities masterplan, which also included significant upgrades to the district’s fine arts facilities and auditoriums.
Board president Ruthina Malone and director Lisa Williams were absent from Tuesday’s meeting.
Iowa City CSD wrestles with budget concerns
The projects are part of the district’s $270.7 million facility master plan 2.0, approved in April 2022, and were expected to be funded through the Secure an Advanced Vision for Education (SAVE) and Physical Plant Equipment Levy (PPEL) funds.
The resolution comes as the district faces an ongoing financial crisis.
The Iowa City Community School District’s financial shortfalls began to surface in January, when the board was asked to retroactively approve a $10 million interfund loan to pay salaries. The district also failed to accurately track spending and revenue for nearly three years, fell behind on audits and lost its bond rating. The Cedar Rapids Gazette recently reported that former CFO Leslie Finger also raised concerns months before the board was notified.
According to financial adviser Susanne Gerlach, SAVE is leveraged through 2039, while projecting PPEL cash balances of about $11.4 million to end this fiscal year and $15.6 million in fiscal year 2027. The 2027 fiscal year begins on July 1.
What to know about the ICCSD’s facilities master plan resolution
Most ICCSD projects will stop at their current construction stage.
The resolution won’t impact “life cycle items,” which include infrastructure work such as roof, HVAC and electrical system repairs. Projects currently under construction include improvements to the high school baseball and softball fields, upgrades to the auditorium at City High School, and preschool remodels at Penn and Wood elementary schools.
The indefinite pause will remain in place until the board determines the district has achieved “financial stability.”
Gerlach said the district didn’t consult its financial advisers before approving the latest facilities plan, saying “there was never a call.” Former ICCSD Chief Financial Officer, Adam Kurth, who left in November 2025, said last February that the district was in “a reasonably healthy position.”
“It was a little alarming to me, personally, that there was a capital plan that your financial advisor had no knowledge of,” Gerlach said. “I had reached out to former staff, and they said, ‘Nope, didn’t need PFM’s help. We got it. Thanks, we’re not borrowing, so we’ve got it figured out.’”
Board members said “financial stability” will include completed audits, up-to-date bank reconciliations, no short-term borrowing to cover cash shortages, and written confirmation from district leadership that finances are stable.
Interim CFO Kim Michael-Lee said the district will be up to date on bank reconciliations by the end of June. In March, the board authorized a $3 million anticipatory warrant to cover payroll ahead of property tax payments, if needed.
ICCSD will eventually revise the master plan, prioritizing projects based on cost, student impact, timeline and overall need.
Jessica Rish is an entertainment, dining and education reporter for the Iowa City Press-Citizen. She can be reached at JRish@press-citizen.com or on X, formerly known as Twitter, at @rishjessica_
This article originally appeared on Iowa City Press-Citizen: Iowa City schools halt $104M facilities project amid financial crisis
Reporting by Jessica Rish, Iowa City Press-Citizen / Iowa City Press-Citizen
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