Davenport finance chief reports $8.7 million year‑to‑date surplus, warns state proposals could limit reserves

CFO/Finance Director Ghosha delivered a monthly finance update to the Davenport City Council on Feb. 25, saying the figures presented were unaudited and outlining the city’s revenue and reserve position as of Jan. 31, 2026.

Ghosha said the city’s major revenues show a mixed picture: property‑tax collections are trending lower compared with the year‑to‑date budget (a variance of about $400,000 across funds), while local option sales tax has outperformed by roughly $3,000,000 year‑to‑date. "The city has collected an additional $8,700,000 in revenues when compared to year to date budgets," Ghosha said, characterizing the result as a positive variance of roughly 12 percent.

Ghosha cautioned that the numbers are unaudited and could change. She highlighted timing differences in enterprise funds—sewer, solid waste and clean water funds show temporary year‑to‑date losses that Ghosha attributed to expense‑timing mismatches and said the city expects those to normalize by fiscal year end. She also said seasonal operations, such as golf and transit, influence those fund results.

Context for reserve policy was a central focus. Ghosha explained that reserves support cash‑flow between large, semiannual property‑tax receipts, provide liquidity for unanticipated emergencies and support favorable credit ratings. She told the council the general fund reserve policy range is 17 to 25 percent of general‑operating expenditures and that "we are currently at the max of 25%." She also cited a sewer capital project financed from reserves, describing it as on the order of tens of millions (Ghosha referenced approximately a $26,000,000 project) that the city is advancing using cash built from prior reserves.

Ghosha noted state property‑tax reform proposals could limit how local governments hold reserves, and she framed the council’s current reserve posture as a hedge against revenue volatility and capital needs. She closed with liquidity metrics: governmental funds current assets over current liabilities at about 365 percent and business‑type funds at about 548 percent, both figures Ghosha compared with the city’s internal policies.

The mayor and council did not take action on the numbers at the meeting; Ghosha invited questions and none were raised that changed the presentation. The update was presented as a recurring "second cycle" item intended to increase public transparency about revenues and expenses.