Clive Council previews FY2025–26 budget, keeps levy at $9.92 and schedules public meetings

City staff on Feb. 27 presented the second component of the proposed FY2025–26 budget, outlining strategies to use cash reserves, shift certain expenses into the trust & agency fund and preserve capital investments while keeping the city’s overall property‑tax rate at $9.92 per $1,000 of taxable value.

"This budget has been, passed a direction of the council as we've had some higher cash reserves than we've experienced before," Matt said, framing the proposal as an intentional drawdown to move reserves closer to the council’s target of about 30% of expenditures. Staff said one structural move in the package is transferring certain retirement (IPERS/IFRS) expense to the trust & agency fund to reduce general‑fund reserves while still funding obligations.

Finance staff showed trust & agency projections (about $2.75 million in revenues) and discussed health‑insurance assumptions: an initial projection of 2.5% increases that staff later said may be closer to 0.5% after recent renewals. Staff emphasized a mix of one‑time and ongoing items — including a planned ARPA transfer and capital outlays — that together drive the draft budget. Audited FY2023–24 results show a surplus and high reserves (about 52.5%), which staff said allows an intentional drawdown rather than immediate cuts.

The council discussed specific program risks and tradeoffs. Police leadership raised a funding‑risk note for the Crisis Intervention Team (CIT) program; Chief Raver said the region’s area service organization has changed and ‘‘it sounds like we are going to be funded through FY26 so that we can keep our program in place,’’ while also noting there is an out clause and six‑month notice if the regional funding stops. Leisure services director Richard outlined repair needs and program growth at the Harbach Center ("Rentals and special events have grown in the last year. We've had 67 rentals."), recommending two permanent part‑time positions converted from seasonal hours to keep programs consistent.

Council also debated whether the city’s short mailing statement should explicitly say the budget relies on reserves; members directed staff to remove the phrase "using cash reserves" from the 300‑character front‑page mailing and to instead emphasize managing inflationary cost pressures and maintaining services. The council approved, by a 5–0 vote, a resolution setting the required property‑tax hearing and associated public meeting dates as part of the adoption calendar.

What happens next: staff will finalize the budget mailing and the web‑based property‑tax receipt tool, hold a public budget meeting and present a formal adoption hearing on the dates set by the council.