Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the County Budget topic
No spam. Unsubscribe anytime.
County administration outlines conservative 2026 budget plan; mill rate projection falls 17 cents
Summary
County administration presented a proposed 2026 budget that uses bonding and limited drawdown of reserves to hold the mill rate down to $2.50 (a 17-cent reduction), projects $5.1 million in sales tax revenue, anticipates a 15% increase in health-plan costs, and recommends $2.25 million in bonding for capital projects.
County administration presented the proposed 2026 budget to the Polk County Board of Supervisors on Sept. 16, outlining revenue assumptions, expense pressures and recommended capital funding strategies intended to keep the county’s mill rate stable.
Administrator Moe (county administration) told the board the proposal projects a mill rate of $2.50 per $1,000 of assessed value, down about 17 cents from the prior year, while using a combination of reserves, a recommended $2.25 million in bonding and careful spending to avoid large levy increases. The administration proposed budgeting sales-tax receipts at $5.1 million (the 2024 actual) rather than relying on a higher outside forecast that showed a more volatile pattern; staff said five of the past eight months had shown sales-tax receipts down year-over-year.
Key budget assumptions presented included net-new construction equal to roughly $310,000 in levy capacity, a small increase in shared revenue, downward pressure on investment income, and continued inflationary pressure on wages and benefits. The administration recommended a total wage adjustment of 2.5% for employees in 2026 (split in timing), with WPPA (the county’s union) negotiations continuing. Health-insurance premiums were projected to rise 15%; administration proposed a $500,000 levy transfer into the county health fund to begin rebuilding reserves and noted employees would face premium and out-of-pocket increases.
On capital planning, administration recommended $3.9 million of capital out of more than $6 million requested by departments be prioritized for 2026; examples included a phased project to replace controls/chillers at the justice center (projected additional cost in later phases), equipment and finish work for the recycling center, investments in the parks and highway maintenance equipment, and replacement squad vehicles for law enforcement. The proposal would carry forward previously budgeted grandstand funds and continue to use a mix of ARPA, fee funds and bonding for the CIP.
Administration said the county’s long-term debt use is low (about 2.5% of the statutory limit) and emphasized that the county’s strong unassigned fund balance gives flexibility but urged fiscal conservatism given uncertainty about federal and state funding streams.
The administration will present the final 2026 budget in October and set the public hearing and final adoption schedule in November.
