Story County treasurer projects lower investment income but new vehicle fees to boost revenue

Treasurer Ted Rasmussen told the Story County Board of Supervisors on Jan. 31, 2025, that the county expects investment interest income to drop from the unusually high levels seen during the past two years as American Rescue Plan Act (ARPA) balances decline and market interest rates fall, but new state fee changes for vehicle transactions should raise vehicle-related revenue.

Rasmussen said the county’s interest-on-investments account produced “really massive years for interest earned” after pandemic-era interest rates rose into the mid-single digits, and that those gains were amplified while large ARPA balances were held in county accounts. He said recent months have seen rates move “back down” and that the county expects rates in the “low fours, high threes” for much of fiscal 2026 and “we think it'll be above 3.”

The treasurer reported the county’s rolling cash balance had averaged closer to $50,000,000 over the last two years because ARPA funds stayed in county accounts; he said the county received about $18.6 million in ARPA funds and that roughly $4.8 million remained unspent. How quickly the rolling balance declines will depend on upcoming spending decisions, he said.

Rasmussen also described a line the state auditor requested: gain/loss on sale of investments. He said a roughly $5 million bond package purchased during 2021 at low interest rates depressed market values for those bonds; those pandemic-era bonds mature in 2026 and the treasurer expects the related gain/loss line to decline toward zero once those holdings mature.

On motor-vehicle revenue, Rasmussen said Story County retains 4% of auto registration fees and staff project that retention at about $1,000,000 for fiscal 2026. He outlined recent statutory fee changes that took effect Jan. 1 and will affect the county for half of the current fiscal year: the county previously kept $1 of used-vehicle (auto use tax) fees but will now retain an additional $10 per transaction, and the county will receive additional per-title fees tied to a change in titling law.

County staff estimated the three vehicle-fee changes together could yield about $400,000 in additional revenue compared with historic averages. Rasmussen noted a three-year average for the auto-use fee line was low (about $14,000) and that the new $10 per transaction will add to that amount.

Rasmussen described changes to titling rules that allow titling for residents of any county (previously limited to contiguous counties) and said staff recorded extra titles from non-Story County residents after that policy began; he also said the Iowa Department of Transportation (DOT) does not yet provide a report that would let the county easily separate titles from contiguous counties versus titles from all outside counties, so the county will need to analyze its total titles report to determine the exact net gain attributable to the law change.

Supervisor Lisa Heddens, Auditor Lucy Martin and other supervisors asked clarifying questions during the presentation; no formal action or vote was taken at the session.