IOWA CITY, Iowa (KCRG) – Iowa City is investing $1.8 million to support its arts scene through an endowment intended to provide long-term stability, regardless of future budget constraints.
The funding comes from Local Option Sales Tax revenue – a new 1% tax approved by voters last November.
City Council approved a partnership on August 18 with the Community Foundation for Johnson County to administer the funds to six established organizations.
The Englert Theatre, FilmScene, Iowa City Summer of the Arts, Iowa City UNESCO City of Literature, Public Space One and Riverside Theatre could all receive the Arts Anchor fund money. The city said expansion is possible down the road.
Endowment intended to ease budget pressure
Rachel Kilburg Varley, economic development and public art coordinator with the city, said budget pressure has compounded in recent years.
That pressure includes recent state property tax reform that is squeezing budget growth.
Varley said establishing the endowment means more stability by separating arts support from other services.
“[The endowment] reduces pressure on the general fund, so the arts and culture funding won’t be competing so to speak for other city services and programs that we fund just with general tax dollars,” Varley said.
The city plans to gradually reduce general fund support of arts programming over about six years, once investment earnings increase to a more self-sustaining level.
LOST investment into the endowment is also planned to decline from $395,000 in fiscal year 2028 to $195,000 in fiscal year 2032. The city is prohibiting drawing from the endowment’s investment returns until it reaches a balance greater than $2 million.
Local organization says arts investment supports economic vitality
Andrew Sherburne, executive director of nonprofit cinema FilmScene, said the city’s financial support helps create community programming.
FilmScene hosts events such as summer movie screenings at Chauncey Swan Park – which have drawn upwards of 700 visitors in the fifth year.
“The city understands the value that the arts and culture community brings to the vitality of this community, but also the economic side of it,” Sherburne said.
Sherburne said the city’s nearly $2 million investment means that support will grow.
“This is a community that I’ve chosen to make my home, and I think a lot of other people have because of the quality of cultural opportunities here,” Sherburne said. “It is essential. It’s essential just for our own personal happiness, but also for the health and vitality of our community.”
Copyright 2026 KCRG. All rights reserved.
