Indianola council adopts FY26 budget, holds public hearing on levy and reserves

The Indianola City Council on April 21 adopted the city's fiscal year 2026 budget following a public hearing and a presentation from city staff on revenues, expenses and reserve levels. The council's action passed on a roll call after discussion of cuts, levy rates and department-level monitoring.

City staff said the budget process began in fall and winter with departmental requests and was refined after county valuation data clarified the consolidated levy. Jackie (staff member) told the council that expenses in the proposed budget have fallen by about $2.5 million (roughly 5.6%) from the first drafts and that revenues are projected to increase by just under $1.2 million (about 2.8%). Jackie said budget amendments remain possible after July 1 if unexpected expenses or new grants arise.

The city will not set the consolidated general levy unilaterally: Jackie explained the state formula sets the consolidated general levy and reported the city's consolidated levy for FY26 at $7.86 (down from $7.94 in FY25). She also said the employee benefits levy is $3.85 (down from $3.98) and that a portion of the city's debt translates to roughly $63.88 per resident for one measure of local debt, with total city debt of about $5.7 million (about $360 per resident). The council was told the sewer department is in its third year operating the new treatment plant and that rate impacts will be clearer later in the year.

Council members complimented staff on the work to balance the budget and said departments had trimmed requests. Some members also noted the community had not yet seen a consolidated communication showing service impacts from the cuts; one councilmember said that when such communications go out it could be a surprise for residents and urged clearer public outreach.

After the public hearing closed, the council approved the budget and adopted the related resolution on the FY26 budget. The council also directed that no step increases be applied to nonunion staff this year unless otherwise decided.

The council discussed procedural points: budget amendments can be made after July 1, and the city will continue routine monitoring and reporting to departments through its finance software and biweekly reports. Jackie said departments are looking at additional revenue options such as user fees or credit-card surcharges.

Ending: The council recorded the passage of the FY26 budget and will publish the adopted budget documents as required; staff said they would monitor programmatic impacts and bring any necessary amendments to the council.