Council adopts final FY2025 budget amendment; no change to property tax levies

The Cedar Rapids City Council on May 27 held a public hearing and adopted the final fiscal year 2025 budget amendment, a technical update required by state law that reflects timing changes, additional project costs and revised revenue projections across enterprise, special revenue and capital funds.

Finance Director Abhijeet Deshpande summarized the amendment as the last FY2025 update and said it includes unanticipated revenues and expenses, transfers and timing adjustments. Key expense increases noted in the presentation included $1.2 million in fire health expenses, $572,000 for fleet maintenance and parts, and $225,000 for salt and sand usage in public works. The amendment also reflects increases in risk and internal service fund activity (including $2 million in health fund changes and $750,000 for workers’ compensation), delayed vehicle purchases, and timing‐related increases in facility and joint communications projects (including a $910,000 radio replacement timing adjustment).

Enterprise fund changes include capital timing at the Water Pollution Control facility funded by State Revolving Fund loans, an increase in Alliant PowerHouse Complex operating adjustments funded by TIF revenue, and a projected Paramount Theater operating shortfall of about $840,000 to be funded from prior venue grant funds. The amendment increases overall FY2025 budgeted expenditures (excluding transfers) from about $852.2 million to $973.9 million; the presenter said about 69% of the $116 million expense increase relates to capital improvement projects.

Council confirmed the amendment did not change any property tax levies. The council adopted the resolution approving the budget amendment after the public hearing with no objections on the record.

Staff will continue to manage the timing and funding of capital projects and present related budget items as needed.