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CFO details $14M–$18M fiscal transfers, subsidies for FY25; River’s Edge and River Center subsidies shrink but remain
Summary
Davenport’s CFO presented required FY25 interfund transfers under state rules, including large transfers from sales-tax and ARPA-derived capital transfers; staff outlined subsidies to River’s Edge and River Center and steps to reduce future subsidies.
Davenport — Lasha Gerlach, the city’s chief financial officer, detailed required interfund transfers for fiscal year 2025 at the Oct. 15 committee-of-the-whole meeting and explained subsidies and capital transfers the city recorded in FY25.
Gerlach summarized both routine and one-time transfers. She said, “The state requires approval when transferring money between funds,” and then outlined major movements: $14,000,000 transferred from local-option sales tax to the debt-service fund to avoid increases to the debt-service levy; roughly $18,200,000 transferred into the capital improvement fund, most of which related to ARPA-funded projects (about $11,700,000); customary transfers of $4,100,000 from local-option sales tax to capital improvements; and $1,600,000 from road-use tax to capital improvements.
Gerlach also reported selected unbudgeted transfers and subsidies: a $900,000 transfer from the general fund to the city’s risk fund (to cover rising insurance and worker-compensation costs); the River’s Edge facility subsidy decreased from $541,000 in 2023 to $253,000 in FY25; and the River Center received $1,470,000 in subsidies during FY25 (of which $905,000 was hotel-motel tax and $463,000 from the general fund), with remaining Adler-Theater-related debt service noted.
Why it matters: The transfers and subsidies affect several enterprise and capital funds and reflect both ongoing operating pressures and previously authorized ARPA capital investments. Gerlach said staff will pursue enterprise planning for funds currently receiving subsidies and pursue strategies to eliminate or reduce those subsidies over time.
Follow-up: Staff said VenueWorks (the River Center management partner) conducted a sales audit at their cost; staff will share the results with council when available. CFO and staff plan enterprise-planning work and will return with updates and proposed strategies.
