Keokuk City Council Considers Spending Cuts to Address Budget Shortfall

City faces $1.5 million deficit, considers cuts to Main Street, library, and more

Published on Feb. 4, 2026

The Keokuk City Council held a special three-hour meeting over the weekend to discuss proposed spending cuts to address a budget shortfall of around $1.5 million. City Manager Jim Ferneau stated there are no easy solutions, and the council is considering cuts to programs like Main Street Keokuk and the public library, as well as potentially increasing franchise fees.

Why it matters

Keokuk, like many municipalities, is grappling with budget challenges in the face of rising costs and economic pressures. The decisions made by the city council on spending cuts and revenue increases will directly impact local services and quality of life for Keokuk residents.

The details

During the special meeting, the Keokuk City Council reviewed a range of proposed spending cuts to address the $1.5 million budget shortfall. Some of the areas being considered for cuts include the city's Main Street program, the public library, and dozens of other municipal services. The council is also looking at potentially increasing franchise fees as a way to generate additional revenue.

  • The special city council meeting took place over the weekend of February 1-2, 2026.

The players

Jim Ferneau

The city manager of Keokuk, Iowa, who stated there are no easy solutions to the city's budget shortfall.

Keokuk City Council

The governing body of the city of Keokuk, Iowa, which held a special meeting to discuss proposed spending cuts.

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What they’re saying

“There isn't an easy way to make up for that shortfall.”

— Jim Ferneau, City Manager (kbur.com)

What’s next

The city council will continue to deliberate on the proposed spending cuts and revenue increases, with a final decision expected in the coming weeks.

The takeaway

Keokuk's budget challenges reflect the difficult decisions many municipalities face in balancing services, costs, and revenue. The outcome of the council's deliberations will have significant impacts on the community.