Dickinson County hearing hears call to use fund balance to buy down proposed tax levy

A public hearing in Dickinson County on a proposed tax levy focused on a resident's plea to use the county's fund balance to reduce the levy and on county officials' explanations of where the money is held and what the board can legally do.

Mike Fergus, a Dickinson County resident who identified himself during public comment, urged the board to lower the county levy from 1.8 to 1.6 by drawing down roughly $1.8 million from county reserves. Fergus said three state-level property-tax bills (a governor proposal plus House and Senate measures) contain provisions he sees as favorable, including a proposed cap on property-tax growth at 2%, a 35% limit on government reserves, and a requirement that certain bond issuances carry 60% voter approval. "Taxes are too high," Fergus said, adding that "our customers our taxpayers are to a breaking point" and that Dickinson County's per-person residential tax was, in his summary of Iowa Department of Management data, 691 — the highest in the state, he said.

Fergus told the board the county's taxable valuations rose sharply (he cited a total countywide valuation increase of about $612 million, including a $427 million increase in general services valuation and $185 million for rural property in his presentation). He argued those valuation gains, together with a reported fund-balance total he cited as roughly $29.5 million, could be used to buy down levy rates and ease taxpayer burdens. "I proposed to get to the 1.8 to the 1.6. We leverage that taxpayer money of a million797590 to pay for that shortfall and reduce tax levies," he said.

Board members thanked Fergus and emphasized that the hearing was for public comment and that no decisions would be reached there. One supervisor noted that implementation of any state law could take one to three years and that some budget lines are constrained by state or federal rules. "We can't make any decisions today," a board member said.

County Treasurer Chris (identified in the meeting) summarized how the county's cash is held and its liquidity. "Of that roughly 30 million, 4.3 million was at Bank Midwest and State Bank. 7.3 million of that money was put into bonds. 22 million is put into the Iowa PIT which pays a daily interest rate," Chris said, explaining that pooled funds paying daily interest can be accessed if local governments need them. He described the county's investment priorities as safety, liquidity and return and said investments appeared to meet those goals.

Supervisors and staff also discussed budget trends: one supervisor noted the most recent county budget was submitted with about a 6.4% increase over the prior year and warned that a multi-year revenue cap (for example, a 2% cap) would require departments to curb spending. Board members asked for more detail on Fergus's characterization that 40% of the county budget is under local control, pointing out that restricted grants and other externally constrained funds reduce the board's direct discretion.

No motions on the levy or related fiscal actions were taken at the hearing. The chair closed the public-hearing portion of the meeting after a motion to adjourn was made and seconded; roll-call acknowledgments followed.

The board did not set a date for further action on the levy during the hearing. The record documents public comment opposing the current levy level and officials' statements about the composition and liquidity of county funds; any formal action would require follow-up at a properly noticed meeting where the board can vote.