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Charles City Council OKs budget amendment moving revenue and expenditures to next fiscal year

By Bob Steenson, bsteenson@charlescitypress.com

An amendment to the Charles City city budget for the current fiscal year acknowledges a cut in revenue of almost $20 million for the year that will end June 30.

But the budget amendment approved at a special meeting of the Charles City Council Wednesday is more a matter of when the money will be received, rather than if, and it’s also money that would have been borrowed, not regular income.

Trudy O’Donnell, city clerk and finance officer, explained that the $19.8 million reduction in expected revenue is primarily because funding for two projects — the fiber to the home broadband project and the water resource recovery facility — won’t be raised until the next fiscal year.

Financing for both projects is expected to be repaid primary through revenues received for the services — broadband internet, television and telephone services in the case of the fiber project, and water and sewer fees for the water resource project.

The budget amendment also recognizes a reduction in expenditures because those projects aren’t being paid for this fiscal year.

There was one large jump in unplanned expenditures, because the city paid the cost of purchasing property at the corner of South Grand Avenue and Highway 27 for the state-certified Avenue of the Saints Development Park.

The $2.25 million in purchase price and fees will be paid back through tax increment revenue from the South Grand TIF District, and from the sale of the property when it is sold.

Also at the special meeting, the council approved the second reading of an ordinance amending the city zoning ordinance to comply with new state flood plain rules.

Both the budget amendment and the flood plain ordinance actions were preceded by public hearings where no public input was received.

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