Cedar Rapids' Strong Financial Position

In the same way a credit score can impact your financial life, the City’s bond rating is a strong indicator of Cedar Rapids’ overall financial position. An impressive bond rating can directly impact our residents’ lives, too. It can mean better terms for bonds we issue to pay for long-term investments in our streets, flood control system, technology, parks, public safety infrastructure, and more. Strong bond ratings can even help you get more out of what you pay on your utility bill. A strong bond rating is one of the ways Cedar Rapids keeps its water and sewer rates competitive across the region, which in turn helps attract new businesses to our community.

For years, Moody’s Investors Service has assigned an Aa1 rating to the City of Cedar Rapids’ General Obligation Bonds — its second-highest rating — including most recently in April 2022. Moody’s conducts a rigorous analysis of the finances and general management of operations for cities across the United States. These ratings are used as a measure of confidence in the city governance upon each issuance of bonds.

“Our Aa1 rating demonstrates very strong creditworthiness relative to other U.S. municipal entities,” said Casey Drew, Finance Director for the City. “Moody’s considers the overall economic health of the city, including major employers; local residential, commercial, and industrial construction; unemployment; and other economic indexes in their rating methodology.”

What’s more, in 2022, WalletHub named Cedar Rapids the 28th best-run city in America, considering factors such as financial stability, quality of city services per dollar spent, and more.

The City’s budget and financial management are two of the most important products your City government is responsible for each year. City staff take their fiduciary duty very seriously and work hard to control the costs of doing business. We are proud to leverage your dollars responsibly while providing high-quality programs and services in return.

Formulating the City budget is a complex process. There are many needs, priorities, and services that require funding so the City can provide quality services to our residents and customers. The City uses priorities set by the City Council to create a budget that meets the needs of its citizens. In Iowa, property taxes, user fees (such as water, sewer, and garbage), federal and state grant programs (state flood mitigation program), local option sales tax, and special revenue funds (like hotel-motel tax, road-use tax, and tax incremental financing (TIF) are the primary fiscal tools local governments can leverage to provide programs and services.

Preliminary budget planning for the City begins each September. This is when department directors and staff begin gathering budget information and developing plans. Each fall, the City’s Finance Department initiates a public survey to gather input from residents regarding their service priorities and funding preferences. The City Manager and Finance Department use City Council priorities to determine funding allocations for the following year.

In March, the City Council votes on the City Manager’s proposed budget for the upcoming fiscal year. The City’s fiscal accounting calendar runs from July 1 of any year to June 30 of the following year. Our Fiscal Year 2023 budget is currently underway; the 2024 budget year will begin in July 2023.

A public budget book document is available on the City’s website for residents to review and familiarize themselves with the City’s financial position and budget priorities.

Visit CityofCR.com/Budget to learn more.

SEPTEMBER

• Preliminary budget process begins

JANUARY

• Property tax information is available from the County; work begins to finalize a balanced budget

MARCH

• Public hearing to present budget and resolution for Council to adopt the budget

• Budget certification to Linn County Auditor

In a community familiar with natural disasters, we’ve learned to make preparedness a priority. Not only are we prepared with plans for public safety when emergencies strike — Cedar Rapids is also prepared financially. The City maintains prudent general fund balances that protect the City’s financial integrity. City Reserves helped the City respond to disasters like the 2016 Flood and the 2020 Derecho, and financial uncertainty throughout the COVID-19 pandemic. Even in unprecedented times, residents can rest assured the City won’t skip a beat.