Norwalk City Council adopts $60 million FY2026 budget; tax rate unchanged

The Norwalk City Council on April 17 adopted the city's fiscal year 2026 budget after a final public hearing, keeping the city's tax rate unchanged while approving capital investments including a planned Central Iowa Water Works buy-in and a new water tower.

Jean (finance director) presented the budget at the public hearing required by state law, saying Norwalk's total assessed value is "a little over $1,880,000,000," taxable value is about $848,000,000, and the total all-funds budget is just under $60,000,000. She told the council the rollback percentage is about 47.3% to 47.4% and the city's tax rate will remain roughly $14.88 per $1,000 of assessed value for the coming year.

The council approved the resolution adopting the FY2026 budget by voice and roll call. The motion to approve the resolution was made by Council member Baker and seconded by Council member Cool. Roll-call votes recorded at the meeting were: Cool (yes), Livingston (yes), Meineke (yes), Baker (yes), Brown (yes). The motion carried.

Why it matters: Jean told the public the budget is balanced and reserves will be maintained. The capital program and utilities in the budget include projects that will affect future rates and borrowing. Council discussion and staff remarks made clear the budget funds both recurring operations and one-time investments that will shape service delivery and utility pricing.

Key numbers and program notes provided in the hearing: - Total assessed value: "a little over $1,880,000,000." Taxable value: about $848,000,000 (roughly 45% of assessed). - Total all-funds budget and revenues: just under $60,000,000. - General fund: roughly $12,000,000 in total; public safety accounts for about $5,500,000 (about 47% of the general fund); general government about $1,500,000; culture and recreation about $2,400,000; public works (largely garbage/recycling pass-through) about $1,400,000; community and economic development about $910,000; health and human services about $45,000. - Road use tax fund: about $2,100,000; these revenues come from state distributions tied to motor fuel and registration fees. - Water fund: approximately $5,200,000; major upcoming costs noted were a new water tower (recent budgeted estimate $7,000,000) and a buy-in to Central Iowa Water Works (approximately $6,000,000), which the city expects to finance in part through borrowing. - Sewer fund: about $3,300,000; approximately 57% of the sewer budget covers Water Reclamation Authority charges. - Capital Improvement Plan (CIP): $10,700,000 total; about $6,700,000 proposed for the North River sewer trunk to support western expansion and development. - Local option sales and service tax receipts were estimated around $1,800,000 and are shown funding vehicles, body cameras, street and parks maintenance, IT security, and airport contributions. - TIF low- and moderate-income (LMI) fund: roughly $2,800,000 remaining; staff proposed $1,500,000 for a Main Street water-main project and $50,000 for a housing rehabilitation program.

Jean said the budget increases translate to an average annual tax impact of about $61 per household (roughly a 2.39% increase in annual tax), driven primarily by the rollback adjustment and growth in assessed values. She noted the presentation covered only the city's portion of property taxes; school and county levies are separate.

Staff explained the city plans to use a mix of cash and borrowing for major water projects and is considering State Revolving Fund loans administered by the Iowa Finance Authority for favorable rates. Jean said IFA loan conditions prompted the city to present a multiyear (four-year) schedule for utility rate changes that will be considered separately.

The council held the required public hearing on the budget; no oral or written comments were received at the hearing. The council then voted to adopt the FY2026 budget by resolution.

Ending: With the resolution's passage, staff will proceed with the approved capital plan and utility planning outlined in the presentation. Further ordinance or rate actions tied to the water tower and Central Iowa Water Works buy-in were discussed separately during the meeting and will appear on future agendas as needed.