City spends 66% of expenditures budget throughout the third quarter

Davenport took in 96% of revenues budget

Drew Lawson, The Times | Last updated Oct 21, 2021 4:56pm0

DAVENPORT—The city council’s finance committee met ahead of council’s Oct. 13 meeting to discuss the third quarter budget and look ahead to the 2022 budget as the annual budget cycle approaches.

The city brought in $2,628,095 in the third financial quarter (June-Sept.), which was 96% of what was budgeted. The city spent just $2,287,688 of its $3,452,495 expenditures budget that quarter.

As is typically the case, property tax revenue was down in the third quarter, as most property taxes are collected in the second and fourth quarters. The city received $167,976 of its budgeted $265,000.

However, the city received $19,151 of a budgeted $14,000 in building permits, $312,369 of a budgeted $300,000 in local sales tax, $75,503 of a budgeted $70,000 in local government assistance and $8,878 of a budgeted $8,000 in liquor excise tax.

Perhaps the latter is due to the poor start by the Seahawks this season?

Altogether, the city brought in $1,626,779 of a budgeted $1,546,292 to the current expense fund. Just $24,159 of a budgeted $34,000 came in motor vehicle fuel tax, but $27,401 of a budgeted $15,000 came in real estate excise tax.

Between 81%-85% of the budget was received in the water, sewer and garbage funds.

The only fund the city spent over budget in the third quarter was in planning, where $20,359 of the budgeted $19,700 was spent. Just 73%, or $1,057,342 of the budgeted $1,448,567 in the current expense fund was spent.

The city spent 56% of its library fund budget, 43% of its cemetery budget, 45% of its street budget, 47% of its airport budget, 73% of its water budget, 67% of its sewer budget and 62% of its garbage budget in the third quarter.

The finance committee also discussed a possible utility rate increase during its meeting. A proposed 3% increase was discussed after the city didn’t raise rates at all last year due to the COVID-19 pandemic. Committee member Lance Strite proposed lowering that to 2% since the city didn’t lack for income last year despite not raising utility rates, which the committee appeared to agree with. A final decision will be upcoming by council.