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Riverview budget review warns of gap if one-time transfers and a major tax contingent disappear
Summary
City staff told the Riverview City Council the general fund is currently healthy (about $3.7 million, ~26%) but will face a gap if prior operating transfers and a large Riverview Energy Systems tax contingent are removed; five-year projections and ballot options were discussed.
Riverview City Council received an overview of the city's general fund budget that stressed near-term stability but warned of a potential multi-year shortfall if recent one-time transfers and a large taxpayer's tax contingent are not replaced.
Finance staff said revenues this year are roughly $295,000 higher than last year while general fund expenditures are up about $297,000, a 2.12% change overall. The city's fund balance is approximately $3.7 million, about 26% of the general fund, above common practice levels but at risk if structural revenues decline.
"If we don't do something, we're going to be ending up going into fund balance every year," the finance presenter said, stressing that three consecutive years of drawing on reserves could trigger state intervention. Staff showed that prior-year operating transfers—most notably a $1.5 million transfer from the landfill/land preserve in 2024-25 and a $417,000 contribution in 2023-24—are not budgeted in the current fiscal year.
The presentation noted property taxes account for about 58% of general fund revenue and flagged a separate contingent tied to Riverview Energy Systems. Staff said the company's true tax payment was nearly $1.5 million but much of that revenue flows to schools and the county, and that the city has adjusted formulas to reflect what the city retains.
The council asked for a five-year projection focused on police, fire and public-safety costs. Staff said they will prepare a multi-year fiscal projection and a menu of options, including structural changes and potential ballot measures, for council review.
Next steps: staff will produce a five-year projection and analysis of revenue options for council consideration; no formal vote was taken at this meeting.
