Mayor: Bettendorf future is bright, despite tax rollback issue

The City of Bettendorf is financially sound, safe and flourishing – even though it’s facing a challenging budget season created by state lawmakers. That’s the message Bettendorf Mayor Bob Gallagher delivered during the State of the City Address on Wednesday afternoon, Feb. 22, at the Waterfront Convention Center. More than 200 people attended the lunchtime […]

The City of Bettendorf is financially sound, safe and flourishing – even though it’s facing a challenging budget season created by state lawmakers. That’s the message Bettendorf Mayor Bob Gallagher delivered during the State of the City Address on Wednesday afternoon, Feb. 22, at the Waterfront Convention Center. More than 200 people attended the lunchtime address, which was part of a regular Rotary Club of Bettendorf meeting. The mayor spent most of his hour-long speech outlining many success stories from the past year, and goals and projects for the future. However, he also used the annual address to tackle the ongoing property tax rollback controversy. State lawmakers have admitted mistakes in tax rates were made and they want to correct the error.

Iowa Gov. Kim Reynolds this week signed a bill adjusting property tax rollback numbers based on an error during the 2021 fiscal year. The move saves property taxpayers about $133 million, but cuts funding to county and city governments. It also is leaving cities and counties scrambling to rearrange their budgets and adjust for the drop in expected funding. State Rep. John Forbes, D-Urbandale, recently said the tax rollback issue gives many cities in Iowa two choices: raise their levy rate, probably around 2%, or cut services to residents. The Iowa League of Cities recently estimated cities across the state will have an annual revenue reduction of $39 million from the tax rollback, and school districts will see $21.4 million less than expected through property taxes. “This is going to be a real struggle for the council. … We’re going to work on this budget,” Mr. Gallagher said on Wednesday, adding that the rollback issue will cut at least $912,000 from the city’s budget. The mayor added that city leaders now are looking at several budget options because of the rollback. Some of those options include: 

• Reduce or cut requests for new personnel, capital and operating budgets.
• Fund projects from other sources.
• Increase other General Fund revenue sources, such as increased fees for permits and rental licenses.
• Increase the city’s property tax levy rate.

Despite the tax rollback challenges facing the city, the budget will get done and approved this spring, he said.  “We are fiscally very sound. … We have a rainy day fund,” he added. However, most of Wednesday’s State of the City Address was a celebration of major accomplishments from 2022 as well as a look forward to other big projects in the works. Before his speech, Mr. Gallagher said one of the main messages he hopes the crowd gets from his speech is: “We are excellent stewards of your tax dollars.” Some of the major projects and “wise tax spending” the mayor pointed out included:

• Cybersecurity – The city made big improvements in cybersecurity defenses implementing a formal awareness and training program for all city employees. “We are engaging with Bettendorf grassroots groups, such as the Bettendorf Business Network, to share cybersecurity tips for local businesses,” according to information presented on Wednesday.
• Celebrations – The mayor called the Zip Code Day celebration held on May 27, 2022, a great success. “That was really the coolest thing we’ve done,” he added. The success of that celebration will spark a new festival – June 5 will be a celebration of the city’s birthday. Events for that new festival will be announced in the near future, he added.
• Urban Park – The city is building an Urban Park under the new Interstate 74 Bridge. The first phase of the park – which includes a recreational trail, decorative rock mulch and landscaping – is almost done. Landscaping will be complete in the spring. Bidding on the second phase of the project will be this summer, and is scheduled to be done once demolition of the old bridge is complete.
• Bridge demolition – In an update on the demolition of the old Interstate 74 bridge, the mayor said more than 30% of the steel – about 4 million pounds –  has been removed. The contractor will remove suspension towers and cables this summer.
• Future projects – Some of the projects currently in the works or being planned include: New commercial development east of the TBK Bank Sports Complex; the Iron Tee Golf facility there is expected to open in the spring of 2024; more restaurants are opening in the city. The mayor said a new Thai restaurant will open this summer; and sewer work is planned for north of Interstate 80 to assist with future growth.
• Community development highlights – Last year, there were 4,055 various permits issued for a total of 159 new single-family homes, 11 new commercial/industrial buildings and seven new apartment buildings.
• Public works projects – Some of the top projects for the 2023 construction season include: Forest Grove Drive Phase III – $11.7 million; Forest Grove Drive Phase IV –  $3.7 million; 23rd Street resurfacing – $700,000; alley rehab program – $450,000.
• Police and fire departments – The police department has added 16 new officers since 2018, and it is looking to hire two more officers. The fire department has added eight new hires in recent years.