Indianola City Council adopts FY 26 budget with reduced expenses and updated levy rates

The Indianola City Council convened on April 21, 2025, to discuss and adopt the fiscal year 2026 budget, marking a significant step in the city's financial planning process. Mayor and council members highlighted the extensive budget preparation that began in the previous fall and winter, during which each department outlined its needs for optimal functioning and efficiency.

The council received updated property valuations from the county, which informed the anticipated revenues for the general fund. This data allowed the council to identify necessary budget cuts across departments, ultimately leading to a proposed budget that reflects a decrease in expenses by approximately $2.5 million, or 5.6%. In contrast, revenues are projected to increase by 2.8%, amounting to just under $1.2 million.

During the meeting, the council set the property tax levy rates for the upcoming year. The consolidated general levy rate for Indianola will decrease from $7.94 in fiscal year 2025 to $7.86 in fiscal year 2026. The city’s employee benefit levy will also see a reduction, from $3.98 to $3.85. The council noted that the city’s total debt stands at about $5,700,000, translating to approximately $360 per resident.

The budget discussion also touched on specific funds, such as the street and stormwater funds, which currently hold over 75% in reserves. The sewer department, now in its third operational year at the new plant, is expected to better forecast expenses moving forward. The Indianola Wellness Center (IWC) is projecting revenues to exceed expenditures for fiscal year 2026, although careful monitoring will be necessary to assess the impact of proposed operational changes.

The council emphasized that the budget is a living document, allowing for amendments throughout the year as new expenses arise or projects are initiated. No changes were made to the budget since the public hearing notice was published, and the council has decided against step increases for nonunion staff unless directed otherwise.

In conclusion, the meeting underscored the council's commitment to aligning the budget with the city’s values, priorities, and goals, while ensuring fiscal responsibility and planning for future needs.