Finance staff outlines proposed $153 million budget, recommends use of surplus to balance 2025 shortfall

Jessica, a member of city staff, presented the proposed 2025 budget to the Rock Island City Council, describing revenues, expenditures, and next procedural steps.

Jessica said the total proposed budgeted revenue across all city funds is $153,000,000 and that staff recommends using a portion of prior surplus to cover a shortfall in proposed revenues. She told the council that the largest single revenue category is a grouping labeled "other" (about $37,600,000), followed by charges for services (about $33,400,000) and property taxes (about $22,300,000). "The total proposed budgeted revenue for all funds is $153,000,000," Jessica said.

Her presentation broke down state and local tax components, noting state income tax projections of $6,400,000 and replacement‑tax and sales‑tax estimates used in the forecast. Staff proposed maintaining the city’s tax rate at an estimated 2.7727 while accepting an estimated 8.15% increase in equalized assessed value (EAV), which would raise overall levy collections to about $17,600,000 unless the assessor’s final valuation changes.

Jessica described pressures on the budget: pension and health insurance cost increases, negotiated wage increases, and the drawdown of American Rescue Plan Act (ARPA) projects that reduced 2025 expenditures compared with 2024. She noted that the proposed general‑fund expenditures total $56,500,000 and that personnel costs are the largest single expenditure category.

The presentation also outlined proposed utility rate changes tied to a prior rate study: a uniform 5.5% water rate increase, a 4.5% wastewater increase, a 7% stormwater increase and an 8.5% quarterly refuse increase in the 2025 budget. Jessica said capital‑improvement priorities were revised to postpone a Whitewater Junction roof replacement into 2026 and instead purchase two rough mowing tractors (about $48,000 each).

Staff identified the next steps: a Truth in Taxation hearing scheduled for Monday, Nov. 25; first reading of the budget ordinance on Dec. 9 and second reading on Dec. 16 along with the CIP plan. Jessica invited council questions; council members offered brief thanks and no substantive amendments were requested during the session.

The meeting adjourned after a motion and an affirmative voice vote recorded as "Aye." The transcript did not record a roll‑call tally for the adjournment vote.