Council Bluffs school board holds public hearing on FY26 budget, proposes slight levy increase

The Council Bluffs Community School District Board of Directors held a public hearing on its initial fiscal year 2026 budget and reviewed a proposed maximum property tax levy that would rise from 15.97 to 16.15 per $1,000 of taxable valuation.

District presenter Ms. Lehan said the change follows the Iowa Legislature’s House File 718, which altered parts of the property taxation process and introduced the annual taxpayer statement many residents have received. The statement compares current and proposed school, city and county rates and lists the district’s proposed maximum levy for FY26.

The district noted an updated statewide SSA (school support) rate of 2 percent set by the governor. Ms. Lehan said the 2% rate and the state’s “budget guarantee” mean that, if enrollment declines, the district’s new state aid may result in a funding increase of less than 1 percent; state law allows districts a 1% increase over the prior year if approved by the local board. The district’s staff explained that the budget guarantee is intended to give districts time to adjust expenditures after funding reductions.

Board members asked clarifying questions about recent SSA rates and how the new 2% figure compares with prior years. A board member noted the district was on the state budget guarantee because of enrollment declines and that more than 150 Iowa districts are in a similar situation.

The district outlined how its main funds are used: the general fund for staff salaries and benefits, curriculum, textbooks, transportation and utilities; the PPEL fund for building and grounds improvements, equipment and technology; and the management fund for property and casualty insurance and workers’ compensation. Staff said management-fund insurance costs are expected to rise 4 to 6 percent.

Because state statute restricts public comment during a formal levy public hearing, board president Mr. Tripp told members of the public the hearing itself did not include comment but that those present could offer input during the board’s regular meeting immediately following the hearing or at the second public hearing scheduled for April 22, when the final budget is expected to be adopted.

Public speakers who later addressed the board raised concerns about the proposed tax increase, the district’s capital structure in light of declining enrollment, and how rising property assessments and other living costs affect seniors and fixed-income residents. Several speakers requested clearer public access to district audit reports and budget details before the next hearing.

The board closed the public hearing and moved on to its workshop meeting; the final FY26 budget and any levy adoption are set to be considered at the subsequent public hearing on April 22.