Council adopts second amendment to FY2024–25 budget; officials say it does not change property tax rate

The Muscatine City Council adopted Amendment No. 2 to the city's fiscal year 2024–25 budget after a public hearing in which a resident urged the council not to raise property taxes.

During the public comment period, Tyler Montez of 506 Spruce Street told the council he opposed any proposal to raise property taxes and urged the city to cut nonessential services because residents are struggling financially. Montez said he objected to prior council votes he perceived as inconsistent with promises made to voters.

Councilmember Osborne asked staff for an overview of the budget amendment. A city staff member identified as Nancy explained that most amendments are not in the general fund; the largest general fund change was approximately $123,000, largely in the fire department for retirement pay for the fire chief and vehicle and equipment maintenance. Other budget changes include grant-funded items, increases in refuse and landfill costs, and higher housing assistance payments covered by HUD funds.

Nancy told the council the current-year budget amendments do not set or change the property tax rate and that Iowa Code prevents altering the levy at this point; the property tax levy is set during the next year's budget adoption process. Councilmembers repeatedly confirmed they understood this would not affect the property tax rate for the current year.

Councilmember Lewis moved and Councilmember Conard seconded the resolution to adopt Amendment No. 2; the council approved the resolution unanimously.

Staff indicated the amendment is part of routine second-year budget adjustments and that most changes involved departmental vehicle and equipment costs or grant-driven revenue/expenditure changes.