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CITY OF CLINTON CITY COUNCIL B...
CITY OF CLINTON
CITY COUNCIL
BUDGET MEETING
FEBRUARY 19, 2026
PRESENT:Maddasion, Lee, Obren, Seeley, Determan, Turpen, Winter, and Kearns
ABSENT:
1.ROLL CALL
2.SEWER FUND
2.aSewer Revenue Fund 511
Action taken with item 2.d
2.bWater Pollution Control Account Fund 512
Action taken with item 2.d
2.cSewer Improvement Fund 521
Action taken with item 2.d
2.dSewer Sinking Fund 536
Finance Director Manrique stated that they brought back the sewer fund for discussion due to some changes that were made. Administrator Brooke stated to think of the fund as 4 buckets. Administrator Brooke stated that the sewer fund was nearly the same size as the general fund. Director Manrique stated that Fund 511 was mainly operations, such as payroll and other related expenses.
Administrator Brooke stated that revenues less expenses ended at $9.9 million. Administrator Brooke stated that the jump from $8.4 million in FYE 25 to $26 million in FYE26 was due to the industrial side revenues from ADM. Administrator Brooke stated that he was working with ADM to discuss how they would be covering those expenses. Administrator Brooke stated that this budget included the general fund receiving $1 million in transfers from the sewer fund. Mayor Maddasion inquired if there were any issues due to industrial flow lacking. Administrator Brooke stated that there would not be after it was fully operational. Mayor Maddasion inquired if the budgeted industrial surcharge was at the new rate. Administrator Brooke answered in the affirmative.
Administrator Brooke stated that the original rate of $3.45 was due to the taxable and non-taxable loans, with ADM being taxable and the City being non-taxable. Administrator Brooke stated that they had to budget a roughly $5.2 million increase which brought the new rate to $4.85. Administrator Brooke stated that they may look into getting a local loan to cover the additional expenses. Councilmember Lee inquired what kept pushing the expenses back for another year as it was in FYE 2026. Administrator Brooke stated he was cautiously optimistic that the plant would be fully operational soon.
Councilmember Seeley stated that the City budgeted $11 million in revenue last year but that we are only at $1 million this year so far. Councilmember Seeley inquired how that would affect our financial outlook. Administrator Brooke stated that the $11 million was taking into account the new RWRF facility being fully operational. Administrator Brooke stated that once the facility was fully operational, ADM would start paying on their 7.9 million gallons.
Councilmember Seeley stated he wanted to see a clearer picture on how FYE26 would end. Administrator Brooke stated that if revenues do not meet the expected amounts, expenses will fall accordingly and it would help to even each other out. Administrator Brooke stated that when the flare was activated, it would help and allow them to operate at full flow. Administrator Brooke stated that once full flow is reached, ADM's contract would go into effect, and they would start paying all their fees. Councilmember Seeley inquired when the plant would be fully operational. Administrator Brooke stated that with the current conditions it should be soon, as soon as May 1, 2026. Councilmember Kearns stated that the main concern was that the plant has not realized its full potential. Councilmember Seeley requested that Administrator Brooke and Director Manrique give council a better picture before he is comfortable voting on this matter.
Determan made a motion to approve the Sewer Revenue (Fund 511), Water Pollution Control Account (Fund 512), Sewer Improvement (Fund 521), and Sewer Sinking (Fund 536) Funds, as presented. Seeley seconded the motion.
Councilmember Seeley stated he felt the council should not approve the sewer fund at this time until they had a clearer picture. Councilmember Lee questioned what the changes were from the last meeting. Director Manrique stated that they changed some transfers and additional line items. Councilmember Obren stated that we were just looking at where we were now and where we were going and that they were trying to get it to council floor for additional discussion at a council meeting.
Councilmember Seeley stated he felt they have not worked through it yet and still wants further clarification of certain amounts and line items. Councilmember Seeley mentioned that we are currently under a consent decree with DNR and inquired if we had anything budgeted to meet those obligations. Administrator Matt stated he had spoken with the DNR and was approved for a one year pause on the obligations. Councilmember Kearns suggested they pause discussion on the sewer for now and move on to the other funds.
RESULT:DEFEATED. 3-4
MOVER:Determan
SECONDER:Seeley
YES:Obren, Determan, and Turpen
NO:Lee, Seeley, Winter, and Kearns
Seeley made a motion to reconsider the sewer funds. Lee seconded the motion.
RESULT:Carried 7-0
MOVER:Seeley
SECONDER:Lee
YES:Lee, Obren, Seeley, Determan, Turpen, Winter, and Kearns
Kearns made a motion to postpone Sewer Fund to next budget meeting. Seeley seconded the motion.
RESULT:Carried 7-0
MOVER:Kearns
SECONDER:Seeley
YES:Lee, Obren, Seeley, Determan, Turpen, Winter, and Kearns
3.TRANSIT (MTA) FUND
3.aTransit Operations Fund 551
Administrator Brooke stated the fund was in a deficit because it helped the city to receive more money in the capital fund when ordering busses. Administrator Brooke stated the fund had always been budgeted as a deficit. Councilmember Seeley inquired where the deficit was made up. Administrator Brooke stated that the deficit was never made up. Director Manrique stated he will look into the fund and find out how the deficit was normally resolved.
Administrator Brooke stated that fund 551 was the operational side and fund 555 was the capital side. Administrator Brooke stated that $1.03 million was from federal and $268,000 was from state. Director Manrique stated it was a roughly 10% increase in funding. Councilmember Seeley inquired how this deficit was paid. Director Manrique stated fund 555 currently had $560,000 and fund 551 had a deficit of $45,000 now. Councilmember Lee inquired if it was paid from the general fund. Administrator Brooke stated that it was not.
Councilmember Winter inquired if the City received funds from when Highway 136 (North) Bridge was closed. Mayor Maddasion answered in the affirmative and stated it was roughly $18,000. Administrator Brooke stated he knew that going forward they would need a clearer picture of this fund and need to find out how it was paid. Councilmember Seeley inquired if there was some funding that was paying for it that council was not aware of. Director Manrique stated there were no transfer in accounts in fund 551 and that it likely had never received transfers in from any other accounts. Administrator Brooke stated that fund 551 and fund 555 could balance each other out at end of year.
Councilmember Seeley inquired if the funds in fund 555 was already allocated to busses that have been ordered. MTA Director Griffin answered in the affirmative and stated that they had two cutaway busses ordered already.
3.bTransit Capital Fund 555
Determan made a motion to approve the Transit Operations (Fund 551) and Capital Funds (Fund 555), as presented. Obren seconded the motion.
Councilmember Seeley inquired how they planned to pay the $567,000 deficit. Administrator Brooke stated he had originally included $1 million on the levy to cover this but that he did not want to proceed with that as it was not clear what deficit they were clearing.
Councilmember Winter inquired how much was allocated for the two small buses that were ordered. MTA Director Griffin answered it was roughly $140,000-150,000, of which they paid 15%. Administrator Brooke inquired where the salary for MTA was coming from. Councilmember Lee inquired what was the account history.
Councilmember Seeley stated that the FYE25 budget appeared to show a $2 million grant, but it did not appear on the actual. Councilmember Winter stated that all the city busses were getting cameras put in and inquired if the funds for the cameras came from IT or MTA. IT Director Entwistle stated the new busses did not have cameras installed and that we were outfitting both the new and the old busses with cameras. Director Entwistle stated the funds came from a CIP project from two years ago.
Councilmember Kearns suggested that council wait to approve this fund as well. Councilmember Obren inquired if we could just place all these items on a council agenda and discuss it there. Mayor Maddasion stated he felt it was better to hash it out in a budget meeting first so that it was in its final form for the council meeting. Councilmember Seeley inquired if they had time to hold another budget meeting. Administrator Brooke answered in the affirmative and stated that the council would just need to set some public hearings at the next council meeting. Director Manrique inquired if council would be ready to accept the draft levy at the next budget meeting should one be held in order to publish them on time.
Determan made a motion to rescind prior motion to approve the Transit Funds. Obren seconded the motion.
RESULT:Carried 7-0
MOVER:Determan
SECONDER:Obren
YES:Lee, Obren, Seeley, Determan, Turpen, Winter, and Kearns
4.GENERAL FUND
4.aFY27 General Fund Revenue 101
Discussion taken with item 4.b
4.bFY27 General Fund Expenses 101
Administrator Brooke explained the basic idea of the general fund and the breakdowns. Councilmember Lee inquired what the $800,000 increase in licensing and permits was for. Director Manrique states a large part was due to an increase in franchise fees. Administrator Brooke stated that the franchise fee is currently at $4 million but with Atlas Roofing coming online in FYE 27 they estimated it at $4.3 million. Mayor Maddasion inquired how much Atlas Roofing would realistically increase the budget. Administrator Brooke stated they did a deep dive on properties, factoring the mild winter and summer.
Councilmember Seeley inquired how they calculated interest on the balances. Administrator Brooke stated the budget was $550,000 in FYE 26 so they budgeted $525,000 for FYE27. Councilmember Turpen inquired how the animal licenses and fines amount was calculated and whether it was too high or not. Councilmember Obren stated that new animal license fees usually aren't realized until March. Administrator Brooke stated they took a conservative approach to this item. Director Manrique stated they averaged $7,800 per year for animal licenses and they averaged $4,700 in fines. Administrator Brooke stated they have $65,000 set aside in the police fund for animals and that fines would come from that.
Fire Chief McQuistion stated that they were waiting on a big permit to come in and the permit and licensing budget might still balance out. Administrator Brooke stated the city still had several projects coming up that could increase the proposed $4.4 million budget. Councilmember Seeley inquired where the general fund is sitting now. Director Manrique stated that there was $3.16 million in the fund now. Mayor Maddasion stated his biggest concern was the bottom-line totals and inquired how the City will mitigate for a deficit. Administrator Brooke stated that most of it was from unexpected items. Director Manrique stated that this budget factors in a 3% wage increase and keeping the employees share of their health insurance where it was.
Mayor Maddasion inquired that if the City had cash to spend, why would the position end up negative. Director Manrique stated that it was mainly attributed to the general fund. Administrator Brooke stated that the key cost drivers were wages and health benefits, with police and fire being the largest items. Administrator Brooke listed some notable changes and stated that we were still being fiscally responsible. Councilmember Seeley stated that he was very concerned that some of the numbers were too speculative.
Councilmember Kearns stated that the City was always under budget on permits and should adjust accordingly. Councilmember Winter stated that we need to look at the State changes as well. Administrator Brooke stated he would know more later this month as the timing on these meeting are not the best. Administrator Brooke stated he wanted to do a 12-month deep dive, to review staffing, schedules, overtime, consolidation, reevaluating health benefits, and additional technology support. Administrator Brooke stated he doesn't know if it was feasible to figure all of this out by April 30th when the budget was due. Councilmember Kearns stated she was hoping this review had already started and stated that the City should look at 10 percent departmental cuts as well. Councilmember Seeley stated many projects do not realize their benefits right away such as the casino. Director Manrique stated that going forward he wanted to start budget planning earlier in the year than usual.
Councilmember Winter stated he wanted to have a placeholder for $750,000 to $850,000 for any state changes that occur. Mayor Maddasion stated that 5 years ago the City made a plan to cover deficit by implementing the franchise fee and now we were still facing a deficit 5 years later. Councilmember Lee stated that he has been seeing these same problems facing our surrounding towns as well. Councilmember Lee stated he would like to see this budget more in line with the FYE26 budget.
Administrator Brooke stated that the City could lose even more from the general fund if certain bills in the Iowa senate went through. Councilmember Winter wanted to factor the potential State changes in now. Councilmember Kearns inquired if council needed to discuss a hiring freeze at this time. Councilmember Seeley stated he didn't want to see these issues compound to the FYE2028 budget. Councilmember Obren stated his concern was the fact that we do not know what the State is going to do.
Administrator Brooke stated that he estimated the cost of salary and wages at $160,000 per person. Councilmember Seeley stated that the union negotiations were still ongoing and that they could affect the budget as well. Councilmember Seeley inquired if anything was coming out of the general fund that should not be. Administrator Brooke stated that there was nothing significant. Mayor Maddasion stated that this budget was roughly a 9% increase from last year. Director Manrique stated that departments salary and wages make up roughly 80% of expenses.
Mayor Maddasion stated he would keep an eye on the State changes that were upcoming and inform council of his findings. Councilmember Lee stated he would like to see a revised budget estimate with a $1.5 million decrease in revenues and expenses. Councilmember Winter stated that he would like to see a revised budget estimate that includes $785,000 set aside for the state changes. Councilmember Seeley stated he would like to see multiple scenarios with some different funding amounts.
5.TRANSFERS
5.aTransfers
Administrator Brooke review the transfers.
6.CAPITAL IMPROVEMENT PLAN FOR FY27
6.aFY27 Capital Improvement Plan
Administrator Brooke reviewed the FY27 CIP list. Administrator Brooke discussed that certain items might not seem as important but some things had requirements that made them have a higher priority. Councilmember Seeley stated that he thought it was strange that the city hall roof was not priority but a street sweeper was. Administrator Brooke stated that certain items and grants on the list must be in an urban renewal area to receive the dollars. Administrator Brooke stated that the CIP committee organized the list in order of priority before giving it to council.
Obren made a motion to put the CIP on the next Regular City Council agenda on February 24, 2026 to set a public hearing. Winter seconded the motion.
RESULT:Carried 7-0
MOVER:Obren
SECONDER:Winter
YES:Lee, Obren, Seeley, Determan, Turpen, Winter, and Kearns
7.DEBT
7.aDebt Service Fund - Schedule of Outstanding G.O. Capital Loan Notes and G.O. Capacity
Administrator Brooke stated that council should review the referenced long-term debt on the tax levy.
8.CAPITAL PROJECT FUNDS
8.aManufacturing Drive Project Fund F405
Administrator Brooke discussed the Manufacturing Drive project fund.
8.bRail Park Fund F437
Administrator Brooke discussed the sale of the rail park to HOBO. Administrator Brooke stated the sale would be complete by June 1st, 2026.
8.cPavement Management Fund F471
Administrator Brooke discussed the Pavement Management fund and how it was covered on the CIP.
8.dVision Iowa Projects Fund F488
Administrator Brooke explained the Vision Iowa Fund.
Determan made a motion to approve the Manufacturing Drive Project Fund 405, Rail Park Fund 437, Pavement Management Fund 471, and Vision Iowa Projects Fund 488, as discussed. Councilmember Seeley inquired if Hotel Motel had to be used for recreation. Administrator Brooke answered in the affirmative. Councilmember Seeley inquired what projects were currently coming out of this fund. Parks and Recreation Director Eggers stated that the Pickleball center and the playground equipment came from this fund. Lee seconded the motion.
RESULT:Carried 7-0
MOVER:Determan
SECONDER:Lee
YES:Lee, Obren, Seeley, Determan, Turpen, Winter, and Kearns
9.TAX LEVY SPECIAL REVENUE FUNDS
9.aTort Liability Fund F258
Administrator Brooke stated that the tort liability budget was $840,000 which was the same as last year.
9.bPolice & Fire Retirement Fund F261
Administrator Brooke stated that the Police and Fire retirement was based off of Director Manrique's estimation. Councilmember Seeley inquired if the budget amount was prepaid. Administrator Brooke answered in the affirmative. Councilmember Lee inquired if we can put a cap on the premiums. Administrator Brooke stated that he was working on that currently. Director Manrique stated that the numbers could change depending on the Police and Fire union meetings.
Director Manrique stated that the excise tax amount was from gas and utility numbers at the levy rate that was set. Administrator Brooke explained that the excise is portion of total tax amount that comes out.
9.cFICA/Medicare/IPERS Fund F265
9.dEmployee Benefits Fund F268
Administrator Brooke stated that we have been able to buy down the employee benefits in past years but that we may not be able to do so this year due to other outstanding health bills.
Obren made a motion to approve the Tax Levy Special Revenue Funds (Tort Liability Fund 258, Police & Fire Retirement Fund 261, FICA/Medicare/IPERS Fund 265, and Employee Benefits Fund 268), as discussed. Lee seconded the motion.
RESULT:Carried 7-0
MOVER:Obren
SECONDER:Lee
YES:Lee, Obren, Seeley, Determan, Turpen, Winter, and Kearns
10.SELF FUNDED HEALTH INSURANCE FUND F625
10.aF625 Self-Funded Health Insurance
Administrator Brooke stated that he was hoping to end in a surplus with this fund. Councilmember Seeley noted that it appeared that this fund was estimated exactly the same as last year.
Determan made a motion to approve the Self-Funded Health Insurance Fund 625 as discussed. Lee seconded the motion.
RESULT:Carried 7-0
MOVER:Determan
SECONDER:Lee
YES:Lee, Obren, Seeley, Determan, Turpen, Winter, and Kearns
11.PROPOSED TAX LEVY FOR FY2027
11.aAdministrator Brooke explained the debt service and the consolidated general fund levy estimate and its line items. Administrator Brooke stated that the proposed tax levy was $17.27 which is roughly $2 more than last year. Director Manrique stated he hoped that there was no interest in dropping the levy as that would make it the new normal. Administrator Brooke stated that council could also take money out of the local options sale tax and place it in the general fund to lower the debt service level.
Councilmember Kearns stated she felt that the City needed to realize some cuts before increasing the levy. Administrator Brooke stated that although a lower levy was more attractive to citizens, it also meant the City provides a lower service level to the community. Administrator Brooke stated that people move to Clinton for safety and public amenities, which a lower levy would prevent.
12.ADJOURNMENT
Determan moved to adjourn at 5:15 P.M. No roll call taken.
Chase Zuidema
Deputy City Clerk
Published: March 3, 2026
CITY COUNCIL
BUDGET MEETING
FEBRUARY 19, 2026
PRESENT:Maddasion, Lee, Obren, Seeley, Determan, Turpen, Winter, and Kearns
ABSENT:
1.ROLL CALL
2.SEWER FUND
2.aSewer Revenue Fund 511
Action taken with item 2.d
2.bWater Pollution Control Account Fund 512
Action taken with item 2.d
2.cSewer Improvement Fund 521
Action taken with item 2.d
2.dSewer Sinking Fund 536
Finance Director Manrique stated that they brought back the sewer fund for discussion due to some changes that were made. Administrator Brooke stated to think of the fund as 4 buckets. Administrator Brooke stated that the sewer fund was nearly the same size as the general fund. Director Manrique stated that Fund 511 was mainly operations, such as payroll and other related expenses.
Administrator Brooke stated that revenues less expenses ended at $9.9 million. Administrator Brooke stated that the jump from $8.4 million in FYE 25 to $26 million in FYE26 was due to the industrial side revenues from ADM. Administrator Brooke stated that he was working with ADM to discuss how they would be covering those expenses. Administrator Brooke stated that this budget included the general fund receiving $1 million in transfers from the sewer fund. Mayor Maddasion inquired if there were any issues due to industrial flow lacking. Administrator Brooke stated that there would not be after it was fully operational. Mayor Maddasion inquired if the budgeted industrial surcharge was at the new rate. Administrator Brooke answered in the affirmative.
Administrator Brooke stated that the original rate of $3.45 was due to the taxable and non-taxable loans, with ADM being taxable and the City being non-taxable. Administrator Brooke stated that they had to budget a roughly $5.2 million increase which brought the new rate to $4.85. Administrator Brooke stated that they may look into getting a local loan to cover the additional expenses. Councilmember Lee inquired what kept pushing the expenses back for another year as it was in FYE 2026. Administrator Brooke stated he was cautiously optimistic that the plant would be fully operational soon.
Councilmember Seeley stated that the City budgeted $11 million in revenue last year but that we are only at $1 million this year so far. Councilmember Seeley inquired how that would affect our financial outlook. Administrator Brooke stated that the $11 million was taking into account the new RWRF facility being fully operational. Administrator Brooke stated that once the facility was fully operational, ADM would start paying on their 7.9 million gallons.
Councilmember Seeley stated he wanted to see a clearer picture on how FYE26 would end. Administrator Brooke stated that if revenues do not meet the expected amounts, expenses will fall accordingly and it would help to even each other out. Administrator Brooke stated that when the flare was activated, it would help and allow them to operate at full flow. Administrator Brooke stated that once full flow is reached, ADM's contract would go into effect, and they would start paying all their fees. Councilmember Seeley inquired when the plant would be fully operational. Administrator Brooke stated that with the current conditions it should be soon, as soon as May 1, 2026. Councilmember Kearns stated that the main concern was that the plant has not realized its full potential. Councilmember Seeley requested that Administrator Brooke and Director Manrique give council a better picture before he is comfortable voting on this matter.
Determan made a motion to approve the Sewer Revenue (Fund 511), Water Pollution Control Account (Fund 512), Sewer Improvement (Fund 521), and Sewer Sinking (Fund 536) Funds, as presented. Seeley seconded the motion.
Councilmember Seeley stated he felt the council should not approve the sewer fund at this time until they had a clearer picture. Councilmember Lee questioned what the changes were from the last meeting. Director Manrique stated that they changed some transfers and additional line items. Councilmember Obren stated that we were just looking at where we were now and where we were going and that they were trying to get it to council floor for additional discussion at a council meeting.
Councilmember Seeley stated he felt they have not worked through it yet and still wants further clarification of certain amounts and line items. Councilmember Seeley mentioned that we are currently under a consent decree with DNR and inquired if we had anything budgeted to meet those obligations. Administrator Matt stated he had spoken with the DNR and was approved for a one year pause on the obligations. Councilmember Kearns suggested they pause discussion on the sewer for now and move on to the other funds.
RESULT:DEFEATED. 3-4
MOVER:Determan
SECONDER:Seeley
YES:Obren, Determan, and Turpen
NO:Lee, Seeley, Winter, and Kearns
Seeley made a motion to reconsider the sewer funds. Lee seconded the motion.
RESULT:Carried 7-0
MOVER:Seeley
SECONDER:Lee
YES:Lee, Obren, Seeley, Determan, Turpen, Winter, and Kearns
Kearns made a motion to postpone Sewer Fund to next budget meeting. Seeley seconded the motion.
RESULT:Carried 7-0
MOVER:Kearns
SECONDER:Seeley
YES:Lee, Obren, Seeley, Determan, Turpen, Winter, and Kearns
3.TRANSIT (MTA) FUND
3.aTransit Operations Fund 551
Administrator Brooke stated the fund was in a deficit because it helped the city to receive more money in the capital fund when ordering busses. Administrator Brooke stated the fund had always been budgeted as a deficit. Councilmember Seeley inquired where the deficit was made up. Administrator Brooke stated that the deficit was never made up. Director Manrique stated he will look into the fund and find out how the deficit was normally resolved.
Administrator Brooke stated that fund 551 was the operational side and fund 555 was the capital side. Administrator Brooke stated that $1.03 million was from federal and $268,000 was from state. Director Manrique stated it was a roughly 10% increase in funding. Councilmember Seeley inquired how this deficit was paid. Director Manrique stated fund 555 currently had $560,000 and fund 551 had a deficit of $45,000 now. Councilmember Lee inquired if it was paid from the general fund. Administrator Brooke stated that it was not.
Councilmember Winter inquired if the City received funds from when Highway 136 (North) Bridge was closed. Mayor Maddasion answered in the affirmative and stated it was roughly $18,000. Administrator Brooke stated he knew that going forward they would need a clearer picture of this fund and need to find out how it was paid. Councilmember Seeley inquired if there was some funding that was paying for it that council was not aware of. Director Manrique stated there were no transfer in accounts in fund 551 and that it likely had never received transfers in from any other accounts. Administrator Brooke stated that fund 551 and fund 555 could balance each other out at end of year.
Councilmember Seeley inquired if the funds in fund 555 was already allocated to busses that have been ordered. MTA Director Griffin answered in the affirmative and stated that they had two cutaway busses ordered already.
3.bTransit Capital Fund 555
Determan made a motion to approve the Transit Operations (Fund 551) and Capital Funds (Fund 555), as presented. Obren seconded the motion.
Councilmember Seeley inquired how they planned to pay the $567,000 deficit. Administrator Brooke stated he had originally included $1 million on the levy to cover this but that he did not want to proceed with that as it was not clear what deficit they were clearing.
Councilmember Winter inquired how much was allocated for the two small buses that were ordered. MTA Director Griffin answered it was roughly $140,000-150,000, of which they paid 15%. Administrator Brooke inquired where the salary for MTA was coming from. Councilmember Lee inquired what was the account history.
Councilmember Seeley stated that the FYE25 budget appeared to show a $2 million grant, but it did not appear on the actual. Councilmember Winter stated that all the city busses were getting cameras put in and inquired if the funds for the cameras came from IT or MTA. IT Director Entwistle stated the new busses did not have cameras installed and that we were outfitting both the new and the old busses with cameras. Director Entwistle stated the funds came from a CIP project from two years ago.
Councilmember Kearns suggested that council wait to approve this fund as well. Councilmember Obren inquired if we could just place all these items on a council agenda and discuss it there. Mayor Maddasion stated he felt it was better to hash it out in a budget meeting first so that it was in its final form for the council meeting. Councilmember Seeley inquired if they had time to hold another budget meeting. Administrator Brooke answered in the affirmative and stated that the council would just need to set some public hearings at the next council meeting. Director Manrique inquired if council would be ready to accept the draft levy at the next budget meeting should one be held in order to publish them on time.
Determan made a motion to rescind prior motion to approve the Transit Funds. Obren seconded the motion.
RESULT:Carried 7-0
MOVER:Determan
SECONDER:Obren
YES:Lee, Obren, Seeley, Determan, Turpen, Winter, and Kearns
4.GENERAL FUND
4.aFY27 General Fund Revenue 101
Discussion taken with item 4.b
4.bFY27 General Fund Expenses 101
Administrator Brooke explained the basic idea of the general fund and the breakdowns. Councilmember Lee inquired what the $800,000 increase in licensing and permits was for. Director Manrique states a large part was due to an increase in franchise fees. Administrator Brooke stated that the franchise fee is currently at $4 million but with Atlas Roofing coming online in FYE 27 they estimated it at $4.3 million. Mayor Maddasion inquired how much Atlas Roofing would realistically increase the budget. Administrator Brooke stated they did a deep dive on properties, factoring the mild winter and summer.
Councilmember Seeley inquired how they calculated interest on the balances. Administrator Brooke stated the budget was $550,000 in FYE 26 so they budgeted $525,000 for FYE27. Councilmember Turpen inquired how the animal licenses and fines amount was calculated and whether it was too high or not. Councilmember Obren stated that new animal license fees usually aren't realized until March. Administrator Brooke stated they took a conservative approach to this item. Director Manrique stated they averaged $7,800 per year for animal licenses and they averaged $4,700 in fines. Administrator Brooke stated they have $65,000 set aside in the police fund for animals and that fines would come from that.
Fire Chief McQuistion stated that they were waiting on a big permit to come in and the permit and licensing budget might still balance out. Administrator Brooke stated the city still had several projects coming up that could increase the proposed $4.4 million budget. Councilmember Seeley inquired where the general fund is sitting now. Director Manrique stated that there was $3.16 million in the fund now. Mayor Maddasion stated his biggest concern was the bottom-line totals and inquired how the City will mitigate for a deficit. Administrator Brooke stated that most of it was from unexpected items. Director Manrique stated that this budget factors in a 3% wage increase and keeping the employees share of their health insurance where it was.
Mayor Maddasion inquired that if the City had cash to spend, why would the position end up negative. Director Manrique stated that it was mainly attributed to the general fund. Administrator Brooke stated that the key cost drivers were wages and health benefits, with police and fire being the largest items. Administrator Brooke listed some notable changes and stated that we were still being fiscally responsible. Councilmember Seeley stated that he was very concerned that some of the numbers were too speculative.
Councilmember Kearns stated that the City was always under budget on permits and should adjust accordingly. Councilmember Winter stated that we need to look at the State changes as well. Administrator Brooke stated he would know more later this month as the timing on these meeting are not the best. Administrator Brooke stated he wanted to do a 12-month deep dive, to review staffing, schedules, overtime, consolidation, reevaluating health benefits, and additional technology support. Administrator Brooke stated he doesn't know if it was feasible to figure all of this out by April 30th when the budget was due. Councilmember Kearns stated she was hoping this review had already started and stated that the City should look at 10 percent departmental cuts as well. Councilmember Seeley stated many projects do not realize their benefits right away such as the casino. Director Manrique stated that going forward he wanted to start budget planning earlier in the year than usual.
Councilmember Winter stated he wanted to have a placeholder for $750,000 to $850,000 for any state changes that occur. Mayor Maddasion stated that 5 years ago the City made a plan to cover deficit by implementing the franchise fee and now we were still facing a deficit 5 years later. Councilmember Lee stated that he has been seeing these same problems facing our surrounding towns as well. Councilmember Lee stated he would like to see this budget more in line with the FYE26 budget.
Administrator Brooke stated that the City could lose even more from the general fund if certain bills in the Iowa senate went through. Councilmember Winter wanted to factor the potential State changes in now. Councilmember Kearns inquired if council needed to discuss a hiring freeze at this time. Councilmember Seeley stated he didn't want to see these issues compound to the FYE2028 budget. Councilmember Obren stated his concern was the fact that we do not know what the State is going to do.
Administrator Brooke stated that he estimated the cost of salary and wages at $160,000 per person. Councilmember Seeley stated that the union negotiations were still ongoing and that they could affect the budget as well. Councilmember Seeley inquired if anything was coming out of the general fund that should not be. Administrator Brooke stated that there was nothing significant. Mayor Maddasion stated that this budget was roughly a 9% increase from last year. Director Manrique stated that departments salary and wages make up roughly 80% of expenses.
Mayor Maddasion stated he would keep an eye on the State changes that were upcoming and inform council of his findings. Councilmember Lee stated he would like to see a revised budget estimate with a $1.5 million decrease in revenues and expenses. Councilmember Winter stated that he would like to see a revised budget estimate that includes $785,000 set aside for the state changes. Councilmember Seeley stated he would like to see multiple scenarios with some different funding amounts.
5.TRANSFERS
5.aTransfers
Administrator Brooke review the transfers.
6.CAPITAL IMPROVEMENT PLAN FOR FY27
6.aFY27 Capital Improvement Plan
Administrator Brooke reviewed the FY27 CIP list. Administrator Brooke discussed that certain items might not seem as important but some things had requirements that made them have a higher priority. Councilmember Seeley stated that he thought it was strange that the city hall roof was not priority but a street sweeper was. Administrator Brooke stated that certain items and grants on the list must be in an urban renewal area to receive the dollars. Administrator Brooke stated that the CIP committee organized the list in order of priority before giving it to council.
Obren made a motion to put the CIP on the next Regular City Council agenda on February 24, 2026 to set a public hearing. Winter seconded the motion.
RESULT:Carried 7-0
MOVER:Obren
SECONDER:Winter
YES:Lee, Obren, Seeley, Determan, Turpen, Winter, and Kearns
7.DEBT
7.aDebt Service Fund - Schedule of Outstanding G.O. Capital Loan Notes and G.O. Capacity
Administrator Brooke stated that council should review the referenced long-term debt on the tax levy.
8.CAPITAL PROJECT FUNDS
8.aManufacturing Drive Project Fund F405
Administrator Brooke discussed the Manufacturing Drive project fund.
8.bRail Park Fund F437
Administrator Brooke discussed the sale of the rail park to HOBO. Administrator Brooke stated the sale would be complete by June 1st, 2026.
8.cPavement Management Fund F471
Administrator Brooke discussed the Pavement Management fund and how it was covered on the CIP.
8.dVision Iowa Projects Fund F488
Administrator Brooke explained the Vision Iowa Fund.
Determan made a motion to approve the Manufacturing Drive Project Fund 405, Rail Park Fund 437, Pavement Management Fund 471, and Vision Iowa Projects Fund 488, as discussed. Councilmember Seeley inquired if Hotel Motel had to be used for recreation. Administrator Brooke answered in the affirmative. Councilmember Seeley inquired what projects were currently coming out of this fund. Parks and Recreation Director Eggers stated that the Pickleball center and the playground equipment came from this fund. Lee seconded the motion.
RESULT:Carried 7-0
MOVER:Determan
SECONDER:Lee
YES:Lee, Obren, Seeley, Determan, Turpen, Winter, and Kearns
9.TAX LEVY SPECIAL REVENUE FUNDS
9.aTort Liability Fund F258
Administrator Brooke stated that the tort liability budget was $840,000 which was the same as last year.
9.bPolice & Fire Retirement Fund F261
Administrator Brooke stated that the Police and Fire retirement was based off of Director Manrique's estimation. Councilmember Seeley inquired if the budget amount was prepaid. Administrator Brooke answered in the affirmative. Councilmember Lee inquired if we can put a cap on the premiums. Administrator Brooke stated that he was working on that currently. Director Manrique stated that the numbers could change depending on the Police and Fire union meetings.
Director Manrique stated that the excise tax amount was from gas and utility numbers at the levy rate that was set. Administrator Brooke explained that the excise is portion of total tax amount that comes out.
9.cFICA/Medicare/IPERS Fund F265
9.dEmployee Benefits Fund F268
Administrator Brooke stated that we have been able to buy down the employee benefits in past years but that we may not be able to do so this year due to other outstanding health bills.
Obren made a motion to approve the Tax Levy Special Revenue Funds (Tort Liability Fund 258, Police & Fire Retirement Fund 261, FICA/Medicare/IPERS Fund 265, and Employee Benefits Fund 268), as discussed. Lee seconded the motion.
RESULT:Carried 7-0
MOVER:Obren
SECONDER:Lee
YES:Lee, Obren, Seeley, Determan, Turpen, Winter, and Kearns
10.SELF FUNDED HEALTH INSURANCE FUND F625
10.aF625 Self-Funded Health Insurance
Administrator Brooke stated that he was hoping to end in a surplus with this fund. Councilmember Seeley noted that it appeared that this fund was estimated exactly the same as last year.
Determan made a motion to approve the Self-Funded Health Insurance Fund 625 as discussed. Lee seconded the motion.
RESULT:Carried 7-0
MOVER:Determan
SECONDER:Lee
YES:Lee, Obren, Seeley, Determan, Turpen, Winter, and Kearns
11.PROPOSED TAX LEVY FOR FY2027
11.aAdministrator Brooke explained the debt service and the consolidated general fund levy estimate and its line items. Administrator Brooke stated that the proposed tax levy was $17.27 which is roughly $2 more than last year. Director Manrique stated he hoped that there was no interest in dropping the levy as that would make it the new normal. Administrator Brooke stated that council could also take money out of the local options sale tax and place it in the general fund to lower the debt service level.
Councilmember Kearns stated she felt that the City needed to realize some cuts before increasing the levy. Administrator Brooke stated that although a lower levy was more attractive to citizens, it also meant the City provides a lower service level to the community. Administrator Brooke stated that people move to Clinton for safety and public amenities, which a lower levy would prevent.
12.ADJOURNMENT
Determan moved to adjourn at 5:15 P.M. No roll call taken.
Chase Zuidema
Deputy City Clerk
Published: March 3, 2026
Posted Online 1 week ago
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