Urbandale Police Station Bond Referendum: Will Property Taxes Rise?
October 22, 2026
October 22, 2026
"The annual increase in property taxes as the result of the issuance on a residential property with an actual value of one hundred thousand dollars is estimated not to exceed $20.93."
That sentence appears in the public notice for Urbandale's November 3 police station bond referendum. The City of Urbandale's own FAQ says, just as plainly, that "there is no tax levy increase proposed in conjunction with this project." Both statements are accurate. Seeing why they can both hold also explains how Urbandale pays for large projects, and how a new 2026 state law changed the math for every Iowa city.
That matters to anyone who owns in Urbandale and to anyone weighing an Urbandale address against Johnston, Grimes or Waukee. The phrase "no rate increase" has a reference point. Once you know the reference point, you know what the vote actually decides.
According to the city's police station FAQ, the City Clerk has to publish that sentence because Iowa Code dictates the form of notice for a bond election. The figure shows what would happen if the city had to raise its debt service levy to cover the new bonds. The city says it doesn't. Its plan uses "existing capacity provided by the current debt service levy of $1.34" per $1,000 of taxable value.
The notice shows the cost if the levy went up to cover the bonds. The financing plan describes how the city intends to pay without raising it. To read the plan, you have to know where the $60 million comes from.
The proposed station would be 95,000 square feet, built on city-owned land at the southwest corner of Douglas Avenue and 100th Street. The city describes the site as a former blighted industrial property. The estimated cost is $60 million, split this way:
| Funding source | Amount | How it's repaid |
|---|---|---|
| Cash, reserves and Local Option Sales and Services Tax (LOSST) | $10 million | Paid up front, which the city compares to a down payment |
| Northwest Market Center / Urban Loop TIF district | $25 million | Short-term borrowing of five years or less, repaid with TIF revenue |
| Voter-approved general obligation bonds | $25 million | About 15 years, repaid through the debt service levy |
Only the last row is on the ballot. The TIF portion draws on property tax growth inside the district that covers most of Urbandale's business areas along I-35/80, which is where the station site sits. The city says that TIF revenue covers more than 40% of the project's borrowing costs.
The referendum needs at least 60% approval to pass. If it fails, the city says the department would keep operating from the current station, which was built in 1982, and Urbandale would "need to undergo a re-assessment of options." When that building opened, Urbandale had about 18,000 residents and 26 officers. The city now counts nearly 50,000 residents and 62 officers.
This is where the phrase "no rate increase" gets its meaning. The city is promising to keep the debt service levy at its current $1.34. That rate is the result of several years of deliberate cuts.
When Polk County's LOSST took effect on January 1, 2020, Urbandale used its share to call bonds early. The city's FY2026-27 budget work-session document says LOSST retired $28.535 million in bonds across 2020, 2021, 2022, 2024 and 2025. That covers every bond that was outstanding when LOSST was approved. Those early payoffs brought the debt service levy down to its current level. The most recent step took it from $1.44 in FY2025-26 to $1.34 for FY2026-27.
The same budget document describes what comes next for that sales tax money. Starting in FY26, LOSST shifts from paying off old bonds to funding capital projects directly, which "will continue to buy down the debt service levy and provide tax relief by reducing the need to issue additional bonds."
So the police station plan works by fitting new debt into the space that old debt is leaving. The FAQ says it directly: payments "would be coordinated with the City's existing debt schedule as older bonds are paid off." The promise compares the future rate to today's $1.34. It does not compare against a levy that would keep sliding as more debt retires. How a voter weighs that difference is a judgment call.
The city adds another qualifier. Its projection rests on current property values, interest-rate estimates and financing assumptions, and covers only the city's share of the tax bill. Changes in taxable value, or in rates set by school districts and the county, can still move a homeowner's total bill.
The timing also lines up with a change in state law. Governor Kim Reynolds signed SF 2472 on May 18, 2026, as Iowa Capital Dispatch reported. The Iowa League of Cities' 2026 new-laws summary says that starting with FY2027 budgets, growth in a city's consolidated general fund levy revenue is capped at 2% a year, not counting new construction, improvements and annexations. Debt service, employee benefits, tort liability, and trust and agency levies stay outside the cap. The law also limits using debt service for general operations, while keeping bonding authority for infrastructure and other qualifying capital spending.
For a growing city, that splits the budget into two lanes. Everyday operations now face a hard growth limit. Capital projects like a police station go through the debt service levy, and the largest borrowings need a 60% public vote. Urbandale's general fund levy already sits at its $8.10 maximum for FY2026-27, according to the budget document. The same document notes that "continued legislative limitations" are pushing staff to look for other revenue. One example is a proposed 1% franchise fee on MidAmerican Energy gas and electric service, which MidAmerican's preliminary estimate puts at about $500,000 a year for each 1%.
A buyer looking at total carrying cost in Urbandale should know three numbers from the FY2026-27 budget recommendation:
The $9.98 is the recommended rate from the city's February 2026 budget work session. Until you've checked the final adopted levy with the city, treat it as the planned figure. The debt service line is the one the referendum touches. City reserves and LOSST-funded capital spending are why that line has come down. Whatever happens on November 3, that is the line to watch in future Urbandale budgets.
None of this is tax, legal or financial advice. For how any of it applies to a specific property, check with the Polk County Treasurer, a tax professional or the City of Urbandale.
Will the station's new location change response times? The city expects response times to be similar or better, because officers usually respond from patrol, not from the building. It also says the nearby rail line won't affect response times. On July 31, 2026, the federal Surface Transportation Board approved a petition to abandon that line, known as the "Grimes Line."
Why not renovate the 1982 building? The city says the station has already been expanded or remodeled several times. After consulting architects, it found no fiscally responsible way to meet training, evidence storage, vehicle storage and security needs on the current site.
How much debt does Urbandale already carry? The city's latest audited statements reported about $50.2 million in outstanding general obligation bonds as of June 30, 2025.
Where can I read the full plan? The city keeps its financing details, FAQ and ballot information at urbandale.org/vote.
Property tax questions come up in almost every Urbandale showing, and they come up again at closing. If you're weighing an Urbandale home and want to see how the city's levy, the rollback and the other taxing bodies combine on a specific address, the team at Boutique Real Estate can walk through the numbers with you before you make an offer.
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