Muscatine council adopts $86 million operating and capital plan, approves 2025–26 budget 5–2

The Muscatine City Council on Thursday adopted the fiscal year 2025'26 budget, approving a spending plan that city staff said includes about $86,300,000 in operating and capital project expenditures and anticipates roughly $69,000,000 in consolidated revenues.

Director Leake, who presented the budget highlights to the council, said the plan includes $16,900,000 in general property tax revenues and a proposed tax levy of $15.95 per $1,000 of assessed valuation. He said the budget also includes $4,000,000 in new general obligation debt and planned state revolving fund loans for sewer projects. "We did have a balanced budget for the general fund," Director Leake said during his presentation.

The budget package lists $8,350,000 for continued work on the West Hill sewer separation project (described as an EPA consent-order project), funding to begin a redundant force main project, $1,100,000 for Park Avenue West bridge replacement, roughly $500,000 estimated for the sports dome construction in FY26, $400,000 for Riverview Center repairs, and money for airport lighting improvements that staff said have substantial grant support.

Councilmember Gordon moved to adopt the budget and Councilmember Conard seconded. The motion passed 5'2. According to roll call in the meeting record, Councilmembers Brockert, Connor, Lewis, Gordon and Lampe voted aye; Councilmembers Gendrich and Osborne voted nay.

Council and staff discussion reiterated that the city expects to continue monitoring state-level property tax reform and that staff plan to pursue operational savings before the next budget cycle. City staff noted the general fund ending balance meets the city's fund balance policy of at least two months (16.7 percent) of expenditures.

Why this matters: the adopted budget sets city priorities for services and capital work for the fiscal year that begins July 1, 2025, and establishes the levy used when final school and county levies are set by other taxing jurisdictions.

The council also adopted a separate amendment (Amendment No. 1) to the FY 2024'25 city budget earlier in the meeting by unanimous vote; that action and other routine resolutions were handled alongside the FY26 adoption.

Budget-specific clarifications provided in the presentation include: the consolidated revenue total of about $69 million does not include SRF loan proceeds or certain debt; local option sales tax receipts are estimated at $4,100,000; charges for services are estimated at $17,800,000 (mostly in enterprise funds); and the city anticipates using a mix of grants, available fund balance, road-use taxes, bond proceeds and other sources to fund capital projects.

The council approved the budget by formal resolution; the record shows a 5'2 vote with the two nays noted in the meeting minutes. City staff said they will continue pursuing cost-saving measures and monitoring developments at the state capitol that could affect future property tax revenues.