Basic local government services are easy to overlook — until something goes wrong. Clean water, reliable emergency responses and infrastructure that operates behind the scenes form the foundation of daily life and support the growth and stability of our communities.
Across Iowa, local leaders are grappling with how to maintain those essential services while navigating the potential of tighter budgets. Without the ability to reinvest new revenue, maintaining staffing, modernizing aging systems and preparing for future needs becomes more difficult — raising the risk of gradual service decline. Yet much of the conversation has focused on the proposals to cap local revenue, rather than on what those constraints could mean for day‑to‑day services or on outlining a clear path forward.
Rethinking how communities deliver essential services
Meeting these challenges requires a more adaptable approach to service delivery, such as expanded shared services, stronger operational efficiencies and strategic public-private partnerships.
There is no one-size-fits-all solution. Communities vary widely in their needs and resources, which is why local leaders should have the flexibility to evaluate a full range of options as they plan for the future.
Infrastructure, particularly water and wastewater systems for example, sits at the center of this discussion. These systems support daily life and require consistent investment to remain reliable and protect public health while meeting regulatory standards.
They also underpin economic growth. Dependable water service supports community safety, gives businesses the confidence to invest and helps communities attract and retain residents.
For smaller communities, these pressures are especially acute. In Donahue, we have seen how increased regulatory complexity and workforce shortages can strain local systems. Like many towns, securing certified operators and keeping up with technical requirements has become an ongoing challenge, making it harder to focus on other priorities.
This reflects a broader reality: delaying infrastructure investment does not eliminate the problem, it simply increases the cost and risk down the line.
How partnership can help communities plan for the future
Partnerships are one option communities are exploring to address these challenges. Larger water utility providers can bring capital and operational expertise to help communities manage systems. In Donahue, partnering with Iowa American Water, the largest regulated water utility in the state, has improved system planning, strengthened emergency responses and provided professional operational oversight.
It has also helped move long-delayed projects forward by giving developers greater confidence in the community’s infrastructure. In turn, local leaders can focus on other community needs while maintaining safe, clean, reliable and affordable service for residents.
When structured effectively, partnerships do more than support infrastructure — they help position communities for sustainable, long-term growth across sectors.
Iowa’s communities are at an important crossroads. The decisions made today will shape whether towns and cities continue to grow or struggle to keep pace with demand. This is a moment for leadership and thoughtful planning beyond the next budget cycle. Empowering local leaders to evaluate all options, invest strategically and respond to evolving needs will be critical to building strong communities.
Brad Nielsen is the president of Iowa American Water. Ken Schoenthaler is mayor of the City of Donahue.
