Drainage association joins appeal of railroad assessment ruling; case now before Iowa Supreme Court

An association that represents drainage administrators told the Humboldt County board it has joined an appeal to the Iowa Supreme Court in a dispute over whether railroads must pay assessments for drainage improvements.

The association's executive director said an attorney for two counties asked for help after losing at the district court level in a case over assessments sent to a railroad. The case, from Floyd County, was accepted for review by the Iowa Supreme Court. The association's board decided to participate in support of the drainage interests and to consider filing a friend‑of‑the‑court brief.

Why it matters: If the high court upholds the district ruling, counties and drainage districts could face limits on collecting assessment money from rail carriers for drainage improvements — potentially affecting financing for repairs and improvements that benefit rail lines and adjacent landowners.

The association's executive director described the matter to the meeting as a dispute in which railroads argued they were exempt from assessments based on an obscure federal law enacted in the mid‑1980s. He said the association's position is that drainage law apportions costs according to the percentage of benefit, and that railroads receiving benefit should be assessed accordingly.

"I don't think the Supreme Court wants to put drainage in a situation where we're not collecting any drainage improvement money from railroads," the executive director said.

The presenter said he attended oral arguments in September and that, from his observation, the court appeared more skeptical of the railroad's arguments than those advanced for the drainage interest. He noted the court issues opinions on Friday mornings and said the association is awaiting a decision.

Questions at the meeting included why the two counties seeking help were not association members; the presenter said he took the request to the association board, and the board agreed the case was important enough to warrant involvement even though the counties were not members.

No formal county action was recorded on this agenda item during the meeting; the exchange was reported as an informational briefing by the outside association representative.

Ending: The association and local officials said they will watch for the Iowa Supreme Court's decision and for any guidance it provides on assessment authority and rail carriers' obligations.