(KNZA)--The Hiawatha City Commission will have to adopt a revenue-neutral city budget for 2025 after a resolution to exceed the revenue-neutral tax rate failed to receive the approval of a majority of the Commission Monday evening.

Following a hearing drawing no public comment, the Commission voted 2-1 to adopt the resolution. Mayor Becky Shamburg and Commissioner David Middendorf voted in favor, with Commissioner Toni Hull casting the dissenting vote. Commissioners Brian Shefferd and Evans Woehlecke were absent. Shefferd later joined the meeting via Zoom.

The Commission then proceeded with a hearing on the proposed budget.

Local residents Richard and Cindy Schilling appeared before the Commission to voice their concerns about the increase in property taxes and urged the commission to look for ways to cut the budget.

City Attorney Andy Delaney stepped forward to inform the Commission that because the RNR resolution was not approved they would have to adopt a revenue neutral budget.

The proposed budget had contained an estimated tax rate of 40.8 mills, nearly 3.3 mills above the revenue neutral rate.

The Commission set a special meeting for Friday morning at 7:45 to consider adoption of the budget