Davenport CFO: property taxes lag budget by $300,000 but overall revenues exceed expectations

CFO Lasha Gerlock presented the city's May 31, 2026 financial update at the Davenport City Council meeting on June 24, reporting mixed results across revenue and expense categories.

"Our number one revenue is property taxes. We have finally received our March property taxes and we are trending at about $300,000 less than what is budgeted," Gerlock said, adding that additional property tax revenue is expected in July. She also highlighted stronger-than-expected local option sales tax receipts: "we had budgeted $18 million and so far year to date we've collected just over $19.8 million." Overall year-to-date collections were reported at about $144 million compared with a $129.5 million budget, an 11.26% favorable variance.

On the expenditure side, Gerlock said the general fund has recorded about 89% of expected expenditures for the fiscal year while being about 92% of the way through the fiscal period; salaries and benefits are about 87% of budget while capital expenditures were running high in one category (about 113%). She noted several enterprise funds are performing well (sewer, parking, airport, golf) and highlighted a roughly $8 million positive variance in sewer operations; transit, however, showed a loss of about $352,000 and remains heavily subsidized by federal grants.

Gerlock said the city is pursuing strategies to reduce the transit fund deficit and is working with Venue Works on River Center operations; a contract with Venue Works appeared on the consent agenda for approval.

Council asked no substantive follow-up questions during the update. The figures presented are staff's interim accounting as of May 31 and will be reflected in upcoming budget and financial reports.