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Urbandale council adopts 2025–26 operating budget as debt service levy falls
Summary
After a public hearing, the Urbandale City Council approved the cityoperating budget for fiscal 202526 2026, lowering the overall levy by cutting debt service, approving four new positions and a modest stormwater fee increase.
The Urbandale City Council on April 15 adopted the fiscal 202526 2026 operating budget after a public hearing and a series of related motions and resolutions.
Finance Director Nikki Lam told the council the operating budget "had a decrease of, about 2 and a half percent." Lam said the city plans to retire about $18 million in debt in 2026 (including more than $5 million tied to TIF) and that use of local option sales tax (LOST) and other revenues has reduced the city's debt service levy to $1.44, its lowest level in recent memory.
The budget package approved by the council keeps most service levies stable while shifting some consolidated general levy authority among available levies. Lam said the city's certified budget includes all enterprise funds and capital items; the full package totals about $183 million and reflects the inclusion of the water utility in the certified total. She also told the council there are four new budgeted positions for the coming year: a school resource officer at the middle school, a crisis intervention team mental-health professional, a hire in fire, and a new fleet position budgeted for half a year.
Lam outlined revenue changes: an estimated 8.5% increase in miscellaneous revenues (including some interest income) and the final year of a state backfill program the city had received. She said the stormwater fee will increase from $7 to $9 per ERU for the first 100 ERUs (a $2 monthly increase for a typical single-family residence) and that garbage rates remain unchanged.
Council discussion emphasized the size of the city's property-tax reliance (about 65% of revenue) and the council's long-term effort to reduce debt using LOST proceeds. Councilmembers and the finance staff described the result as a multiyear plan to shift from debt issuance toward cash-flowing capital where feasible.
Votes at a glance
- Resolution 147-2025 (operating budget public hearing outcome): moved and approved (motion recorded on the April 15 meeting). The council voted to close the public hearing and proceed to adoption; the motion carried.
- Resolution 802-2025 (as referenced in the meeting transcript): motion and approval recorded (transcript text: "Move approval of resolution 80 two-twenty 25"); details as presented at meeting, outcome approved.
- Resolution 148-2025 (2025 series A general obligation capital loan notes; bond sale acceptance): approved. Council recorded yes votes during roll call (Kroll; Rosendahl; Cacciatore; Carberry Montgomery; Bode; McHenry) as part of the acceptance of the winning bid from Huntington Capital Markets. The bond sale followed a presentation by Travis Squires, the city's financing advisor.
Context and significance
Lam said the city will retire roughly $18 million in FY2026, down 32% from the prior year, and that 13 of 15 previously outstanding bonds have been retired using LOST proceeds and other strategies. That retirement reduced the debt-service levy and creates capacity for the council to consider more pay-as-you-go capital funding.
Travis Squires, the city's municipal finance advisor, told the council the April 15 bond sale attracted seven bids and produced an overall true interest cost of approximately 3.7003% for the issue, lower than the conservative assumptions used in the budget. Squires said the city's AA1 rating was affirmed and that rating agencies noted the city's strong debt- reduction plan and reserves, while recommending higher available fund balance for a hypothetical upgrade to AAA.
What the budget changes mean for residents
- Stormwater fee: increased from $7 to $9 per ERU for the first 100 ERUs (residential = 1 ERU), adding about $2 per month to a typical single-family bill; the council said that increase will generate roughly $878,000 for CIP stormwater projects.
- No garbage-rate increase recommended.
- Four new positions approved for FY2026 (SRO, CIT specialist, fire hire, and half-year fleet position).
- Overall city levy downward pressure from debt retirement; consolidated general levy shuffled among levies with no broad operations cuts announced.
Ending
Council members thanked staff for the multi-year financial work and for the budget presentation; the council voted to approve the budget and related resolutions, and staff said the city will publish full budget documents and a taxpayer explanation online for residents.
