Davenport finance chief presents balanced FY2026 operating budget, outlines tax and fund changes

Sasha Gerlach, Davenport’s chief financial officer, presented the proposed fiscal year 2026 operating budget and a property‑tax overview at a Feb. 4 City Council budget briefing, saying “the budget is balanced, and complies with all of our financial policies as well as liquidity targets.”

The presentation summarized how state legislative changes reduced allowable property‑tax revenue growth and how the city adjusted levies, internal transfers and department budgets to produce a balanced operating plan for FY2026. Gerlach said the city recommends keeping the total property‑tax levy at $16.61 (unchanged from FY2025). The consolidated general fund levy (CGFL) will fall from a prior baseline of $8.47 to a maximum of $8.39 for FY2026; the change translates to an estimated property‑tax revenue increase from about $44.1 million budgeted in FY2025 to roughly $45.4 million for FY2026, a 2.79% rise in property‑tax revenue after state caps are applied.

Why it matters: the state’s new levy limits use a four‑tier formula tied to non‑TIF taxable‑value growth. Davenport’s non‑TIF taxable value rose 3.82% in the period Gerlach reviewed, placing the city in tier 2 and reducing allowed revenue growth by roughly 1 percentage point relative to the measured valuation growth. Gerlach said that calculation produced about an 8‑cent decrease in the CGFL and that rounding and statutory formulas affect the final reported percentage differences.

Key numbers and budget posture

- City recommend…