Cedar Rapid’s city departments asked to look at cutting 10% of the revenue they expected from the state

Published: Jul. 31, 2020 at 2:07 PM CDT
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CEDAR RAPIDS, Iowa (KCRG) - City departments in Cedar Rapids are being told to expect less money coming to the city from the state because of Covid-19.

City Directors were told to their plan budgets assuming they received about 10% less of their normal revenue from state sources like the road use tax, hotel-motel tax, local option sales tax and flood mitigation revenue.

This is just for the first quarter for Fiscal Year 2021 and only for departments who collect revenue from state sources.

The City asked the Iowa Department of Revenue to provide information on estimates on the revenue sources. They are hoping to have these by September.

After it receives those estimations it can plan for the rest of the fiscal year.

The City of Cedar Rapids recognized back in March that COVID-19 could have an impact on the city’s revenue.

Revenue from the following sources has been affected: road use tax, local options sales tax, State of Iowa Flood Mitigation revenue, hotel-motel tax, charges for services like city swimming pools, convention center, and hotel revenue, along with revenue from recreational venues and investment income.

City Directors have already not filled some vacant positions, reduced training and conferences, closed venues, and refinanced debt that has saved the City $13 million.

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