County holds tax increase to less than 6%

MARENGO — Iowa County Supervisor Chris Montross said last week that he attended a “spirited” Conservation Board meeting. A board member adamantly opposed the county’s decision not to give raises to non-union employees and to cut the Conservation Board’s proposed budget.

It wasn’t the easiest meeting to attend, said Montross.

Supervisor Jon Degen said he received a call from someone concerned that the county will have trouble attracting or retaining employees if supervisors don’t give raises.

Supervisor Abigail Maas attended a meeting of the Board of Health, which discussed where it could cut its budget. The board wants to continue to budget for nine full-time employees even though the positions aren’t fully staffed right now, Maas said.

With new numbers from department heads, who cut their budgets and adjusted revenue numbers, the Board of Supervisors approved a tentative budget that would raise property taxes less than 6%.

The increase reflects a 3.23% increase valuation of properties and a 2.47% increase in the tax levy.

Supervisors began last week’s board meeting looking at an increase of $492,000 for the general supplemental budget, $88,429 for the general fund and $56,586 for rural — an increase of $637,000, or 6.4%.

Maas suggested dropping the supplemental ending balance June 30, 2026 from 23% to 18%. “So that way we’re not raising property taxes by as much,” said Maas.

That would take the budget increase down to $471,700 and require a property tax increase of 4.8%.

“That’s where I would like to go,” said Maas.

The general supplemental fund pays only for insurance and a couple of salaries, Maas said, so there will be no surprise expenses.

County Auditor Brandy Enochson said insurance costs could change if employees change their insurance plans.

The county tries to keep an ending fund balance over 18% in order to meet its financial obligations at the beginning of each fiscal year.

Supervisor Kevin Heitshusen was concerned that the county was dropping the ending balances too low. He suggested moving some money to rural funds, which will have an ending balance of 16% at the end of fiscal year 2026.

“Sixteen’s kind of low,” said Heitshusen.

Every quarter, the secondary roads department transfers more than $328,000 from rural funds to secondary roads to pay road maintenance expenses. The county will have enough for the transfer even with a 16% ending balance, said Maas.

“We’re at 33% if you take out [the secondary roads] transfer,” said Maas, and three-fourths of the transfer will come after property taxes come in, she said.

Actual expenditures plus one transfer amounts to $307,000, so an ending balance of $451,000 is plenty, Maas said.

Following additional discussion and calculations, Maas moved to accept a budget that would increase tax revenue from $9.9 million to $10.48 million.

“So that’s a 5.7% [increase], and I’m OK with that. My goal was under six,” said Maas.

Maas asked if the other supervisors were comfortable with a 5.7% property tax increase the ending fund balances of 23% in general and general supplemental and 16.8% in rural.

“I really don’t see how we can change it much,” said Degen.

The only thing that worried Heitshusen was the ending fund balance for rural. Enochson said the county can’t increase tax rates after approving the budget, but supervisors can move funds around.

“We can’t raise levy rates … but we can move line items,” said Maas.

“I’m OK then,” said Heitshusen.

The budget doesn’t include raises for non-union employees, but the county took on all of the insurance increases, said Maas. That’s an additional $4,500 the county is paying for the employees with family plans, which is greater than a 2 1/2% pay increase for most employees, Maas said.

“The health insurance is the biggest thing that kicked our butt this year,” said Degen.

The county will conduct public hearings before the budget goes into effect.