CFO: FY25 tax increase generated roughly $69.6M in additional revenue; XAI funds to form special-revenue pot

CFO Walter Person briefed the Budget Committee on Oct. 21 on FY2025 property-tax collections and the effect of the council-approved tax increase. Person reported FY25 tax revenue totals (by fund): General Fund, roughly $328.94 million (millage 2.339628); Debt Service, $118.39 million (millage 0.847485); and CIP receipts of $1.15 million, for a total from property taxes of about $448.48 million. Person said the increase in collections attributable to the council-approved millage change was approximately $69.57 million compared with the prior-year levy.

Councilmembers and finance staff discussed narrow operating margins — Person said the city’s latest numbers point to a small positive contribution to fund balance (about $1.5 million) after expense pressures — and the city’s continued hiring curbs (service-critical hires excepted for public safety). The discussion emphasized the need for revenue growth rather than only expense reductions.

On a separate but related matter, the administration said it is creating a special-revenue fund to receive taxes and levies associated with XAI (an entity referenced in the meeting). Staff reported they had collected the first XAI tax receipts in time for the tax deadline and estimated that a 25% allocation in the ordinance (ordinance 59-53 referenced) would translate to roughly $3.25 million flowing initially into the new fund. The mayor’s office will solicit affected-neighborhood feedback and a plan for allocating the fund; the council will participate in later governance decisions.