Washington County Supervisors leave 2.8% pay raise in place after renewed debate

WASHINGTON — Despite renewed debate and multiple motions, Washington County supervisors took no action Tuesday on employee pay, leaving a previously approved 2.8% raise in place amid growing concern over budget limits imposed by state law.

The Washington County Board of Supervisors considered four separate proposals at its Dec. 30 meeting that would have changed compensation for county employees and elected officials, but none received enough support to pass. As a result, the 2.8% raise approved earlier this month remains unchanged.

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Supervisors voted 3-2 on Dec. 9 to approve the increase, with supervisors Stan Stoops and Marcus Fedler opposing the measure. Because no new motion succeeded Tuesday, that decision stands.

The renewed discussion on compensation quickly broadened into a larger conversation about the county’s long-term financial outlook under Iowa’s House File 718, a 2023 law designed to slow the growth of property tax collections by limiting how much additional revenue counties can generate from one year to the next. Under the law, counties are expected to absorb rising costs — including wages, benefits and inflation — within capped revenue increases, placing greater emphasis on restraint and long-term budgeting.

Supervisors repeatedly returned to the question of whether approving higher ongoing expenses now could create financial strain in future budget cycles, particularly if costs continue to rise faster than the revenue growth allowed under the law.

While House File 718 was promoted by state lawmakers as property tax relief and a way to encourage fiscal discipline at the local level, county officials have warned that the limits reduce local flexibility and make it harder to respond to rising operational costs without cutting services or delaying investments.

Fedler argued that even holding the property tax levy rate flat amounts to a tax increase because rising property valuations generate additional revenue. He warned that continued growth in spending could eventually force the county to borrow money.

“A flat line levy rate, year over year, is a property tax increase and will result in an increase in spending,” Fedler said.

Fedler also criticized what he described as contradictory signals from the state, noting that lawmakers have increased the state budget while capping growth for counties. He said that approach mirrors the frustration counties have expressed toward the Legislature.

“And yet we’re doing the exact same thing,” he said.

Other supervisors pushed back, saying the county remains well within the limits set by House File 718 and is not close to needing to borrow funds. One supervisor said the county is following the rules established by the state and managing its budget responsibly.

Several alternative pay proposals were floated during the meeting, including one plan, proposed by Jack Seward, Jr., that would have provided different raises for employees, elected officials and supervisors. That motion failed on a 2-2 vote, preventing further changes.

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Last year, the board approved a 2.5% raise for staff and a 2% increase for elected officials, making this year’s 2.8% increase slightly higher for both groups.

The debate reflects a broader tension facing counties across Iowa as they weigh employee compensation against tighter revenue caps. While state leaders have promoted House File 718 as property tax relief, county officials have warned that the limits could lead to service reductions or difficult financial decisions if costs continue to rise faster than allowed revenue growth.

Comments: AnnaMarie.Kruse@southeastiowaunion.com