Council Bluffs City Council Special Meeting - Property Tax Levy Hearing

On March 23, 2026, the Council Bluffs City Council held a special meeting to hold a public hearing and vote on Resolution 26-104, approving the city's property tax levy for the fiscal year ending June 30, 2027. The meeting included extensive public comment from residents opposing the proposed levy's net revenue increase, followed by council discussion and a 4-1 vote to approve the resolution.

Consent Calendar

• The council briefly skipped the consent agenda at the start of the meeting, but later approved it by a unanimous voice vote after the public hearing.

Public Comments & Testimony

• Former Mayor Walsh (1514 Skyline Drive) argued that the city is collecting $8.9 million more in tax revenue (a 14% increase) despite a 1.2% levy rate reduction. He stated that a 4% cost-of-living increase would require only $2.5 million, leaving $5.69 million in "unnecessary tax revenue." He urged the council to reduce the levy by an additional $1.60 per $100 of valuation.
• Robert Donahue (423 Stutzman) questioned the nearly 16% revenue increase (from $62.5 million to $71.5 million) and argued that new construction costs should be funded through bonds rather than property taxes. He noted that his Social Security and pension increased only 2%.
• Kevin Abelein (1208 North 19th Street) praised the city's dispatch response time (4 minutes) and the mayor's outreach, but asked the council to "lower all levies and taxes." He expressed concern that rising property taxes force tenants to move to Omaha.
• An unnamed veteran and homeowner said his pay raise of 1.3% did not cover the increase in property taxes. He criticized the mayor's salary of $125,000 for a town of 60,000 and called for lower taxes.
• Bruce Pike (203 Windy Heights) stated the price increase is "unacceptable" and that the council is not fulfilling its duty as stewards. He warned that taxes are driving people out of their homes.
• A resident on Social Security with autism (919 Birch Street) said his Social Security went up only $23 per year, making the tax increase hard to bear. He noted that many homes in the city look unkempt because owners cannot afford repairs after paying property taxes. The city clerk calculated his city portion would increase by $410.64 (driven by a valuation increase due to a recent sale).
• A 40-year resident of Glenview Drive (on Social Security) said rising taxes, combined with cost of living and homeless encampments in the West End, are putting senior citizens out of their homes.
• Grace Fox (1220 Hunter) expressed concern about code violations, a neighbor's collapsed fence, and flooding. She stated her city tax portion will increase by $40.76, which is "a lot for me."
• Dr. David Murrers (332 Willow Avenue) asked if the city has an "exit number" for residents who cannot afford to stay. He noted the city's net population loss and suggested the city needs "a DOGE situation to cut things."
• Minnie Bryson Walls (4301 Cottage Row) asked why the levy needs to increase if already collecting more from higher valuations. The finance director explained that the $8.94 million increase is already accounted for in the $13 million budget deficit.

Discussion Items

• Finance Director Danielle BMS presented the proposed levy rate of $17.47 per $1,000 of valuation (down from $17.69 in 2025), marking the sixth consecutive year of a levy rate decrease. She explained that net valuation increased 12.25% across residential, commercial, and industrial categories, largely due to new construction and sales-market adjustments by the county assessor. The city is budgeting a $13 million deficit even with the revenue increase. She noted that state legislative proposals (e.g., eliminating property taxes for homeowners 65+) could further reduce revenues. The city budgets conservatively, including for all authorized positions (even when unfilled).
• Mayor Schudak noted that the city has no control over the county assessor's valuations. She highlighted that the city's portion is only one part of the overall tax bill, which includes school and county levies.
• Councilmember Cole expressed concerns that a 14% revenue increase (net $8.9 million) with only a 1.2% levy rate reduction does not provide sufficient relief, especially for retirees on fixed incomes. He stated that he ran on a promise of property tax relief and had philosophical concerns about the net gain.
• Councilmember Roger (likely) argued that the city has been budgeting at a deficit for years and that difficult decisions about service cuts are necessary. He noted that without population growth (currently ~62,000 and net loss), the city cannot sustain its current services. He also mentioned the need to decide "who we're gonna let go and what services we're going to cut."
• Councilmember (unidentified) pointed out that state growth caps (2%) proposed in Des Moines would limit the city's ability to attract new residents. He emphasized that the only true relief is to change how properties are assessed.
• Finance Director BMS clarified that the approved levy rate of $17.47 is a maximum; the council can adopt a lower rate when the final budget is approved. Councilmember Doug confirmed that the levy can only go down, not up.

Key Outcomes

• Resolution 26-104 (property tax levy for FY ending June 30, 2027) was approved by a vote of 4-1. The levy rate was set at $17.47 per $1,000 of valuation (down from $17.69), resulting in an estimated $71.5 million in property tax revenue. Councilmember Cole was the sole dissenting vote.
• The consent agenda from the regular meeting was approved unanimously.
• The meeting was adjourned.

Note: The meeting date is March 23, 2026. All tax figures and statistics are based on statements made during the public hearing and council discussion.