Storm Lake is putting more than $100,000 in annual community funding on hold as city leaders brace for difficult budget decisions.
The Storm Lake City Council voted unanimously Monday evening to suspend its outside agency funding program for fiscal year 2027-28, eliminating a traditional source of financial support for local nonprofit organizations for the next budget year.
The city has provided an average of $113,475 annually in outside agency funding over the past five years.
The decision comes as Storm Lake faces increasing financial pressures, including limitations on property tax revenue growth, rising operational costs and the need to maintain essential city services.
During budget work sessions in early October, city officials outlined the difficult choices ahead. One scenario presented to the council showed that maintaining the current property tax rate could require approximately $125,000 in budget reductions, while increasing the levy by about 33 cents per $1,000 of taxable valuation was discussed as an option for maintaining existing services. No final decision on that proposed increase was made during those sessions.
City Manager Keri Navratil told council members Monday that the city began its budget planning several months earlier than usual, holding budget alignment and strategy sessions Oct. 2 and 3. Those discussions included department directors and focused on state and federal mandates, staffing needs, service levels and other factors affecting city finances.
Navratil said the city is taking a proactive approach rather than waiting until financial constraints become unavoidable. She also explained why the outside agency funding decision was brought forward so early in the budget process.
Under the city’s traditional program, qualifying tax-exempt groups apply for financial assistance, with funding decisions made during the annual budget process. Previous applicants have included Witter Gallery, Upper Des Moines Opportunity, Our Place, Santa’s Castle and Storm Lake United, according to city budget records.
Mayor Meg McKeon acknowledged Monday that suspending outside agency funding was one of several difficult decisions facing the council as it prepares its next budget.
Council member Richard Riner said the decision reflects the financial realities facing the city, even though he wishes it weren’t necessary.
Council member Maggie Martinez agreed the city faces difficult choices but emphasized that the organizations receiving funding provide valuable services to Storm Lake residents — some offering community enhancements and others helping meet basic needs.
Despite her disappointment, Martinez made the motion to suspend funding. It was seconded by council member Matt Ricklefs and passed on a 5-0 vote.
The suspension applies only to the fiscal year beginning July 1, 2027, and will not affect funding already approved for the current budget year. Nonprofit organizations may still request waivers of fees for using city facilities, with those requests continuing to be reviewed individually by the council.
