Linn County presents FY26 budget; county levy drops 1 cent as residents press assessment concerns

Linn County budget officials on April 23 presented a proposed FY26 spending plan and fielded a half-hour of public comment from residents who said assessment increases and a confusing state-mandated mailer were driving unexpected tax bills.

Linn County budget director Sarah Barrows told the Board of Supervisors that the proposed FY26 expenditure budget is $166,200,000, a 5.8% increase from the prior year, and that the countywide levy rate "will decrease, by 1p from $6.07 to $6.06." She said revenue is projected to increase 7.6% and that the county approved $603,000 in new budget offers, including 4.5 full-time equivalent positions and roughly $90,000 added to the capital improvement plan.

The presentation explained how state-determined rollbacks and local assessments affect individual tax bills. Barrows said the county sent the second annual budget mailer this year and that the mailer is statutorily required; the county moved its public hearing later in April after feedback last year that the mailer arrived too close to earlier hearings.

Why this matters

The countywide levy reduction does not automatically mean everyone will pay less. Barrows and Linn County Assessor Jerry Whitworth said changes set by the Iowa Department of Revenue to the residential rollback — the share of assessed value that is actually taxed — mean more of some property values are taxable in FY26. County staff used a $200,000-to-$220,000 homeowner example to show that an assumed 10% assessment increase would raise the Linn County portion of the tax by roughly 12%, but if assessed value does not change the net effect combining the rollback change and the 1-cent levy reduction would be about a 2% increase (about $11 on the Linn County portion for a $200,000 home).

Details from the budget presentation

- Proposed FY26 expenditure budget: $166,200,000 (5.8% increase). - Revenue increase projected: 7.6% (attributed to higher investment earnings, permitting fees and a recent state bill allowing counties to retain a larger share of motor vehicle revenue). - Countywide levy: reported drop from $6.07 to $6.06 per $1,000 of taxable value. - Rural levy: reported decrease of 3 cents to $2.60. - Lost/restricted revenue items shown in the presentation included $3,800,000 budgeted for road construction, $1,900,000 for conservation projects, and $1,900,000 in property tax relief for rural residents (voter-approved allocation). - The board approved $603,000 in “offers” for FY26, including 4.5 FTEs and an approximately $90,000 increase to the capital improvement plan.

Staff and statutory limits

Deputy Auditor Rhonda Betzworth told the audience the county "does not have any control over the mailer. It is... mandated by the Code of Iowa and... published by the Department of Management." County officials said the mailer must include portions of other taxing jurisdictions (schools, cities, smaller taxing districts) and that the county pays the printing/postage cost. Barrows said the mailer’s format and required content have prompted complaints and that the state is reviewing the form after receiving feedback.

Public comment: appeals, perceived over-assessments and special credits

During the hearing, about a dozen residents spoke. Common themes included sudden large assessment increases, difficulty navigating appeals and requests for clearer disclosures in the mailer. Representative remarks included:

- Jack Dixon (Marion) asked that the mailer show the dollar change per $100,000 of value so taxpayers can quickly estimate their impact. - Lonnie Elephant (Toddville) said county officials treated taxpayers "like a cash cow that needs to be milked." - Nelson Bethke provided a three-year summary showing assessed value increases and said his taxable value rose 64% in three years. - Jean Miller said her commercial building’s assessed value rose 38.8% and that the building would not sell for the new assessed value.

Residents also sought information about senior and veteran tax credits. Assessor Jerry Whitworth told attendees the 65-and-older homestead credit may be applied for through city or county assessor offices and said staff had proactively applied the credit where voter or voter-record verification showed eligibility; he advised residents to check their status and, if needed, sign up by July 1. Betzworth and staff said a disabled senior credit is available through the Treasurer’s Office and that an application is on the treasurer’s website and at the treasurer’s office.

Board action and next steps

The public hearing was closed by a voice vote during the meeting; county staff said the board must adopt and certify a final budget by April 30. Barrows reiterated that departments began their budget process in November, department hearings occurred in December and January, and the budget is finalized in February before the public notice and hearing schedule. Staff urged taxpayers with questions about individual assessments to use the assessor website, which allows property lookups and provides detail on valuation, and to contact the assessor’s office for appeals or verification.

The county’s presentation materials and the assessor’s lookup tool were identified as the primary places to check projected tax impacts; staff also said some changes (such as a property-specific reassessment) only occur if a property had significant modifications or a formal appeal succeeds.

Closing note

County staff said they will continue to respond to public questions about the mailer and to work with state officials on clearer communications. The board will consider final adoption and certification of the FY26 budget by the statutorily required April 30 deadline.