Black Hawk County supervisors debate using reserves to trim 2027 tax increases; approve Pioneer Press change order

The Black Hawk County Board of Supervisors on March 17, 2026 spent its regular meeting largely on a work session about the fiscal 2027 budget, weighing multiple scenarios for using fund balance to reduce next year’s tax collections and discussing long‑range debt tied to a planned public‑safety radio replacement. The board also approved a change order for a county renovation project.

Finance staff reported a recent, one‑time correction to the county’s distribution that boosts the three‑year average by $67,000. "We are receiving a substantial payment and that increases our three‑year average by $67,000," said Michelle, a county finance staff member, who recommended adding that amount into the budget worksheet. She told the board the county’s overall financial position remains solid but cautioned about tradeoffs in drawing down reserves.

Michelle presented nine illustrative options that mix uses of the general supplemental and rural supplemental fund balances. Under one example, using $390,000 of general fund balance would bring total tax‑collection growth down to about 1.88% and lower urban residential increases toward roughly 3.0%, staff said. Smaller uses produce smaller reductions; staff emphasized uncertainty about the long‑term impacts of depleting reserves and possible constraints from pending state legislation on reserve levels.

Board members pressed staff on timing and public notice requirements for a budget hearing. Staff said newspaper notice deadlines require numbers to be submitted about 10 days before a hearing, and that the board can wait for additional clarity from the Legislature before publishing final rates. "If you're comfortable or want to wait longer to set the date of hearing, I think we can wait until probably at least next Tuesday for direction," Michelle said.

Long‑term budget modeling also included debt‑service projections tied to a recommended public‑safety radio system replacement. Staff said vendor estimates and infrastructure upgrades drive a projected bond sale in mid‑2027 and cause notable debt‑service increases in the early 2030s. "The radios themselves are seven (year life) and the infrastructure pieces are generally presumed to be 10," Michelle said, noting that the infrastructure portion increases the debt‑service levy more than radios alone.

Supervisors discussed alternatives including phased borrowing, using reserves for selected capital items, and deferring certain projects to smooth future spikes in debt service. They also asked staff to identify specific capital items that could be funded out of reserves without creating long‑term funding gaps.

Votes at a glance • Claims and payments: Board approved a resolution authorizing $193,534.14 in bill payments. Roll call recorded "yes" votes from Paul, Brian, Schwarz and Henbach (motion and second recorded earlier in the meeting). • Pioneer Press renovation change order (Change Order 005, Peters Construction): Board approved a $33,197 change order that included 11 line items (structural/HVAC work, load testing of two emergency exits, replacement of flush valves from 1.28 to 1.6 gpf, minor wire‑mold work and three contract deductions for reuse of existing cutouts). Roll call recorded unanimous yes votes from Hurt, Paul, Grant and Schwarz.

Contracts and construction details Carolas, facilities operations manager, described the change order for the Pioneer Press renovation at 1407 Independence Avenue in Waterloo and explained that a fire marshal requested load testing on two exits. "There were 11 different items on this change order," she said, citing load testing and a flush‑valve swap after restroom users reported needing to double‑flush. Board members asked about the wire‑mold approach and whether the work should have been included in the original bid; Carolas said the change responded to on‑site findings and a fire‑marshal requirement.

Next steps Staff will refine the budget publication numbers based on board direction and legislative developments, and the board expects to set a formal budget‑hearing date after further review. Staff also will continue modeling options to reduce future debt spikes and will return with more detailed scenarios on using reserves for specific capital projects or shifting timing of bond issues.

The board adjourned following routine reports and scheduling items.