Council Bluffs holds budget hearing; officials explain property tax math and CIP priorities

The City Council of Council Bluffs held a public hearing April 7 and approved the city budget for the fiscal year ending June 30, 2026, after public comment and responses from city officials about property taxes and capital improvement priorities.

Mayor Matt Walsh and city staff explained how Iowa’s property tax process and the state 'rollback' factor affect residents’ bills and walked through why most homeowners can expect a small increase in city taxes for the coming year. Walsh said the city’s portion of the levy was lowered by 16¢, but overall tax collections rose because of new valuation and growth on the tax rolls; he told listeners many homeowners likely will see “about a 1.42%” increase depending on individual valuations.

Residents at the hearing asked detailed questions about capital projects included in the city’s capital improvement program (CIP). A resident, Sam Rowan, pressed the council about a line item listed as “First Ave interconnections” carrying $500,000 for acquisitions, demolition and trail infrastructure studies along First Avenue. Courtney (community development director) said the First Avenue item continues a multi-year redevelopment effort and that the funds are intended to finish incomplete blocks, acquire properties and consolidate parcels for later redevelopment; she said the funding is planned as bond dollars carried in the CIP.

Another CIP item discussed was a $3,500,000 River’s Edge Gateway enhancement for decorative lighting, landscaping, hardscaping, irrigation and signage on West Broadway. City staff clarified that Iowa West Foundation provided the funds and the city will manage the contract and maintain the completed work. "IOS is covering that," one council member said in the study-session discussion; staff clarified that the foundation provided money and the city will pass it through and manage the contract.

City officials said the First Avenue study and any subsequent redevelopment work would include a consultant-led public process and that the study report would be a public document with opportunities for comment. Officials also reiterated that any development proposals would require engineering review and traffic studies as part of permit processes.

After public comment and responses, the council approved the budget by motion.

The hearing also included clarification about how state-level proposals under consideration in the Iowa Legislature could change property tax treatment in future years; city officials said those changes remain uncertain and could affect growth of levies and rollback treatment going forward.