Supervisors review ending fund balance figures and levy impacts; ask departments to propose cuts

Iowa County supervisors spent a substantial portion of the meeting reviewing ending fund balances, recent state reporting, and the effect of levy-rate adjustments on property-tax capacity, and asked department heads to submit potential budget reductions by the coming Tuesday.

County staff reported they have an upcoming meeting with state Department of Management officials to review figures the state is publishing that show the county27s total ending fund balance rising sharply; staff said $5.7 million of that apparent increase was bond proceeds earmarked for the Diamond Trail project and not recurring revenue. “If you take that out… our total ending fund balance out of all the funds went down by 11%,” a finance presenter said.

Supervisors and staff explained how the statutory levy ratchet applied when growth is between certain bands reduces a county27s allowable rate, which lowers property-tax capacity despite rising valuations. Staff calculated the county27s general levy rate would fall from the prior maximum to 3.46535, producing a roughly $39,709 reduction in general-fund property-tax revenue on current growth assumptions; the rural levy would fall modestly as well.

Given that near-term squeeze, supervisors asked department heads to review budgets and propose cuts they could accept. County finance staff requested proposed reductions and alternatives (including the impact of postponing capital purchases such as vehicles and carpeting) by the next Tuesday and scheduled a follow-up review for the end of the week. "We have to pair that down somehow," one supervisor said. "If we can get it to… another year to get a better exit strategy, that would be ideal," the county27s public-health director said in separate debate about her department; supervisors emphasized they needed budget reduction proposals regardless of department.

County staff said they would model scenarios assuming 0% across-the-board employee raises as one input; staff also identified options such as moving some costs to the supplemental levy where permitted, trimming planned capital replacements, or other non-personnel reductions. The board did not adopt final budget cuts during the meeting; it set a timetable for department submissions and scheduled follow-up discussion.

Supervisors also noted some revenue items — notably the TIF bond proceeds for the Diamond Trail project — are one-time and should not be treated as recurring operational revenue.