The Fort Dodge City Council began working through its 2026-2027 budget during a workshop Monday night.

According to City Manager David Fierke, the workshop was the first of several that will occur over the coming months, with the final budget approval coming around April.

Monday’s discussion centered around funds needed for water, sewer, road use tax, and fiber utilities.

Examining the water utility, $15.7 million in revenue and $13.3 million in expenses were projected, which would leave a surplus of $2.4 million. Revenue will come from $12.87 million in water service charges, $2.1 million from the City of Manson’s cost-sharing, along with interest, penalties, and a $305,000 transfer from the Community Water Initiative.

Key expenses include water plant contract operations (such as the membrane replacement reserve), higher debt service and transfers, and several operating lines held flat or reduced.

Revenues are set at $15.5 million for the sanitary sewer utility, while expenses are projected to be $14.89 million. Revenue sources include $12.55 million in sewer user charges (city and industrial), and $2.29 million in capital improvement sales tax transfers, plus housing tax increment financing, miscellaneous, and interest.

Expenses include $1.13 million for field sewer operations (personnel and targeted rehab work), $5.68 million for treatment plant operations (contract operations, insurance, including cyber, and engineering), and continued funding for debt service and depreciation.

Road use tax fund revenues are set at $3.48 million and expenses at $3.81 million. Revenue comes from the state road use tax of $3.48 million, which is down by $213,000 due to a minor state reduction and the removal of a one-time $200,000 storm water transfer. The road use tax is the city’s share of gasoline tax and vehicle registration revenues. Road use tax revenue is awarded on a per capita basis, with the city receiving $140 per person.

Expenses are projected to be down $69,000 from the fiscal year 2025-2026 budget, even with increased personnel costs. The significant decrease is mainly due to the removal of the $400,000 street sweeper purchase.

Broadband utility revenues are projected at $7,887,800, with expenses totaling $6,543,457. A net surplus of $1,344,343 is expected, excluding a capital expense of $875,000.

In other business, the council also approved the following:

• A resolution adopting an assessment schedule for nuisance abatement, with plans to levy assessments on a combined 56 private and commercial properties for a total of $27,308.16.

• A measure rezoning some vacant city-owned property along Fifth Avenue South between 15th and 19th streets to a commercial designation.

• An invoice in the amount of $38,466.82 from Iowa Municipalities Workers’ Compensation Association for city services.

• Setting a public hearing for Dec. 22 on a proposal to enter into a water revenue loan and disbursement agreement, and to borrow money not to exceed $2.7 million for phase one of the Fort Dodge Community Water Initiative.

Council member Cameron Nelson commended the Public Works Department for “two great weekends in a row of heavy snowfall work.”