FY 2026-27 budget enacted
Council supports tax credits for Kading
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Freeman-Journal photo by Robert E. Oliver
Becky Holdgrafer attended the City Council meeting Monday night to request an opportunity to purchase one of the city-owned lots located at 128 Apple Ave. to build a garage.

Freeman-Journal photo by Robert E. Oliver
Becky Holdgrafer attended the City Council meeting Monday night to request an opportunity to purchase one of the city-owned lots located at 128 Apple Ave. to build a garage.
After a public hearing with neither written or oral comments from the public, the City Council of Webster City unanimously enacted the staff-proposed fiscal year 2026-27 budget last night.
City Manager John Harrenstein discussed details of the budget for half an hour, focusing first on property taxes. The assessed value of Webster City property reached an estimated $305,729,334, up $11.2 million (3.8%) over last year. The estimated property tax rate of $16.51 declined $0.70 compared to last year, and was facilitated by lower projected expenditures at the airport, and a lower employee benefit levy. For the third year in a row, property taxes are being reduced in Webster City.
Highlights of Harrenstein’s comments included news that the rebuilt wastewater treatment plant, budgeted at $30 million total cost, may come in a bit lower, at $28.5 million, not including fees charged for management of the project.
“I don’t see any need to increase wastewater fees for this year, or for the next four years,” he told city council members.
“We hope to bring forward some proposals concerning downtown improvements very soon,” he added. Such funds would likely come from the city’s economic development fund.
The council members also approved five transfers between various accounts, setting them up for the new fiscal year July 1. The transfers were either budgeted or used to close-out various funds.
On the recommendation of Street Supervisor Brandon Bahrenfuss, the council agreed to delete Section 46-211 for two-hour parking and Section 46-212 for four-hour parking regulations from the city code.
The two-hour restrictions apply to Des Moines, First, Second, and Seneca streets, and Willson Avenue from 9 a.m. to 6 p.m. The four-hour laws pertain to the north and south parking lots downtown.
Sections 46-213 and 46-214, pertaining to eight, and 72-hour parking regulations remain in effect.
In a separate action, Bahrenfuss, citing a $250,000 carryover in last year’s Hot Melt Asphalt budget, recommended it be spent to mill and overlay eight additional blocks this summer. Lower-than-expected quotations from contractors account for the leftover funds.
Readers may recall that the home at 128 Apple Ave. in Webster City was declared a nuisance a year ago and was later demolished. Brenda Holdgrafer, who lives next door, offered to buy it from the city for $20,000. City Attorney Zach Chizek advised Holdgrafer a notice of public hearing will be executed at the May city council meeting, and that the sale, subject to conditions set forth by the city, could possibly be consummated by the council’s June meeting.
Origin Homes, West Des Moines, has asked the city to drop its published prices on five lots in Brewer Creek Estates where it wishes to build new single-family homes. The council took no action, but asked staff to prepare detailed recommendations to be taken up at a later meeting.
The council took another step to bring new rental apartments to Webster City, voting to support an application to IEDA for Workforce Housing Tax Credits by developer Kading Properties, of Urbandale. The State of Iowa has allocated $35 million to $40 million annually in recent years for these tax credits. Developers maintain that this is necessary to ensure new housing construction, especially in Iowa’s 88 rural counties, can be done profitably.
Kading expects to break ground on its Wilson Estates LLC apartment community on Webster City’s southwest side sometime before the end of 2026. Previously, the council approved up to $4,450,000 in local TIF funds, and a grant, not to exceed $1,200,000, as incentives to build the apartments. Kading says it will invest $16,247,000 in the project.



