Freeman-Journal photo by Robert E. Oliver: Webster City Finance Director Dodie Wolfgram in her office at work on the FY 2026/27 budget.

Few things affect day-to-day life like local government. It’s budget time again at City Hall, and you have another chance to be involved. What’s at stake? Police and fire protection, rates you pay for water, electricity, and wastewater, whether storm sewers will protect your property from flooding, streets and sidewalks in town, new housing and better employment through economic development.

City staff and City Council have worked for months on the FY 2026/27 budget, which begins July 1. One step remains before the budget is enacted: a public hearing on April 20, at 6:05 p.m. at City Hall.

The budget is built from the bottom up, and organized by department. City Manager John Harrenstein and Finance Director Dodie Wolfgram meet with each department manager to review plans for next year. Every line item is scrutinized, which Harrenstein says, “ensures everyone is on the same page when we’re done.”

Council’s first look at the budget was at a work session in March.

We sat down with Wolfgram to review each of the major accounts of the city budget.

The General Fund

“This fund pays for fire and police protection, and parks and recreation programs,” she said. Income from taxes and fees is projected to be $5,101,541, up $52,459, over last year. Expenses should total $5,375,410, or $305,810 more than last year. The reasons for higher expenses include, among other things, buying a “brush truck” for the fire department, an off-road vehicle to fight brush and crop fires.

Each fund must end the year with a balance, providing a reserve for unexpected costs, and carry-over for next year. “John (Harrenstein) wants a balanced budget every year, and we try to get within a 2-3% margin,” Wolfgram said. The forecast is for the general fund to end the year with a 53% reserve, exceeding the goal of 35-50%.

Water Fund

The total estimated revenues, the income from water bills are $3,232,700; this is $55,888 less than last year. The fund should end the year with a 37% reserve, on a goal of 33%. Wolfgram said “the reduced income may be due to lower water use by some industrial customers.”

Sewer Fund

Revenues from wastewater fees should be $4,069,000, $83,000 more than last year, and expenses should be $2,130,891, down $55,888. The revenues are up from higher rates, including fees to rebuild the wastewater plant. The fund should finish with a 17% balance.

Electric Fund

With recent rate hikes, this fund has higher revenues, but expenses are also up due to higher purchased power costs and higher wages and benefits. Policy requires a year-end balance of 33%, but it may be 40% in 2026/27.

Sales Tax Fund

The city projects an expected income of $608,264 in sales taxes, less than expected due to lower cost of repairing Beach Street last summer, and corresponding lower federal grant. Forecasted expenses are $1,422,160, with final fund balance reaching target.

Debt Service Fund

The city sells bonds to raise money. The interest we pay on such bonds is the debt service, projected at $70,000. Revenues should be $103,703; higher than planned. On a targeted balance of 5-10%, the fund should end up with 15%.

Road Use Tax Fund

This money comes from gasoline tax and fees distributed by the state, expected to be $640,348 this year. Expenses should be $423,279. Wolfgram noted expenses are down due to the new storm sewer fund established in 2025. Expenses include those for a street sweeper, snow plow and new street department building. The expected fund balance is at 157%, well above guidelines.

Storm Sewer Fund

With the “new normal” of fewer, but heavier rain storms, Council set up a new account last year to upgrade our storm sewers. $347,580 in revenues is expected. With experience this year, the city will estimate expenses and set a target fund balance in the 2027/28 budget.

Economic Development Fund

Established in 2023, these funds are to attract new business and industry to Webster City. Start-up funds came from the general and electric funds. Revenue is lower than expected due to state grants earmarked for economic development, such as the railport study.