Council schedules public hearing on proposed FY24–FY25 operating budget amendment; staff outlines $6.2M revenue, $6.2M+ expense changes

The Clinton City Council voted on May 6 to set a public hearing on a proposed amendment to the city’s fiscal year 2024–2025 operating budget after city staff outlined a range of revenue and expense adjustments.

City finance staff said the amendment package includes an approximate $6.2 million increase in revenues tied to intergovernmental grants and reimbursements and a corresponding set of expense increases across departments that together require a formal budget amendment.

Why it matters: Iowa law requires a published hearing before the council may adopt changes that increase spending beyond what was originally budgeted. The amendment consolidates reimbursements, grant proceeds and unanticipated departmental costs into the FY25 budget so the city can legally record and spend those amounts.

Major revenue and expense items described by staff (Anita) - Revenues (approx. +$6,200,000): intergovernmental revenues for grant funds such as HUD (health and social services), a RISE grant for the rail park, Iowa DOT pavement management grants, reimbursements from Atlas for rail park work (roughly $2,377,000), $68,000 in library special revenue and other charges for services. Staff said some of these items were not budgeted at the time the FY25 budget was set. - Expenses (selected increases): public safety (+$1,200,000 across general and special revenue funds, including fire training-related costs), public works (road use tax items), health and social services (HUD grant activity), grounds and facilities (wage and commodity increases), community and economic development (TIF LMI roof program, economic development grants), and capital projects (notably a $2,100,000 repayment connected to the rail park 28E agreement and $262,500 in Brownfields expenditures tied to the YMCA).

Staff clarification…