Black Hawk County supervisors narrow levy shortfall after hourslong budget review

Black Hawk County supervisors spent the bulk of their Feb. 25 meeting on budget adjustments aimed at meeting Iowa'9s general basic levy cap, approving several targeted reductions and revenue assumptions while leaving other items for follow-up. After a multi-hour discussion staff presented proposals that reduced the county'9s projected shortfall and moved certain equipment and capital requests out of the levy-driven budget.

The board moved to reduce the county'9s shortfall by a mix of steps: shifting revenue and cost allocations, cutting modest line items and approving one-time uses of fund balance for some equipment. Supervisors agreed to reallocate additional sheriff deputy costs to the rural levy, trim professional and publishing fees, and approve cuts in sheriff training and minor equipment. Several proposals — including the size of an insurance deductible reserve and final pay increases for elected officials — were deferred for more detail at a follow-up work session.

The discussion centered on staying under the state cap on the general basic levy while maintaining services. County staff said the county must upload its property tax requests by the March 5 deadline to avoid defaulting to last year'9s certified figures. Staff presented a set of adjustments that together reduced the levy gap but left an outstanding amount that the board discussed covering with reserves or further cuts.

Key decisions and proposals

- Reallocation of sheriff deputy costs: The board voted to increase the portion of sheriff deputies charged to the rural levy from 75% to 80% to better reflect patrol activity outside city limits. The motion passed 3-2. The shift and related coding changes were presented as a way to reduce pressure on the general basic levy.

- Professional and publishing fees: Supervisors approved reducing the Board of Supervisors'9 professional fees line by $10,000 and publishing fees by $10,000.

- Sheriff budget cuts: The board approved a $40,000 reduction in the sheriff'9s budget for training, minor equipment and clothing, per the sheriff'9s own recommendation.

- Facilities maintenance: A proposal to reduce facilities professional fees and repairs by $65,000 for the current year was approved.

- Transfer to secondary roads: Supervisors approved reducing the general-fund transfer to roads to the fiscal 2025 budgeted level, a $31,923 reduction described by staff as unlikely to affect immediate road operations because of other funding sources and a planned bond for a new roads building.

- Use of fund balance/bonding for sheriff equipment: The board approved the sheriff'9s request to classify $70,000 of equipment purchases to be funded from fund balance or bonding where eligible (motion carried).

- Insurance deductible reserve: County staff presented options for an insurance-deductible internal fund (budgeted at $125,000) and proposed two reduced alternatives ($75,000 or $0). After discussion the board voted 3-2 to keep the line at the full amount rather than cutting it at this time.

- Community and library funding: The board added $25,000 for Cattle Congress fair marketing and approved increasing library per-capita support to the statewide average, a combined increase of $6,617.

What remains unresolved

Supervisors left several items for a short follow-up work session set for Thursday at 10:30 a.m. or the next available meeting. Pending items include final decisions on elected officials'9 proposed pay adjustments (staff presented a scenario that would increase elected officials'9 pay by a group-wide 10%, with an estimated total cost of roughly $153,000, including about $30,000 paid from the general supplemental levy), detailed calculation of the exact share of sheriff time charged to rural vs. general levies, and the final size of the insurance/deductible reserve if the board elects a different scenario.

Board and staff context

County staff repeatedly urged caution about drawing down reserves and warned that changes at the state or federal level to public health funding could affect assumed revenue. Staff noted the county runs an internal insurance fund with an approximate balance of $1.5 million and that trimming the deductible reserve now would reduce short-term tax askings but could increase risk if deductibles rise or if multiple claims occur in a single year. The board discussed the tradeoff between holding reserves for unexpected events or using them to limit a tax increase this year.

The board directed staff to prepare scenario reports for the follow-up session: one that implements the current adjustments, one that shows the effect of a 3.25% across-the-board increase for nonbargaining employees, and one showing alternatives for elected-official increases (including a 7% scenario). Staff also was asked to calculate the exact tax/levy impact of the proposed scenarios before the March 5 submission.

Ending

Supervisors agreed to reconvene for a work session later in the week to finalize figures required for the county'9s tax asking submission. Multiple votes on specific line items at the Feb. 25 meeting reduced the county'9s projected levy gap, but the board left several substantive compensations and reserve questions for the follow-up session.