Dubuque County budget director outlines levy options as Sunnycrest transition could raise costs

At a Feb. 19 budget work session, Dubuque County Budget Director Stella told the Board of Supervisors that the county’s upcoming insurance renewal and the possible transfer of Sunnycrest could materially affect the county levy and budget options.

"So today's agenda, basically just says it's a budget working session, and that's what it is," Stella said, opening a summary of the steps the board must take on operating budgets, capital approvals, wage adjustments, insurance and levy setting.

Stella said accepting the insurer’s renewal as presented would increase the plan cost by about 6.6 percent and, because of valuation changes, would equate to roughly a 2¢ increase on the general supplemental levy if accepted without offset. She told supervisors that keeping the levy flat would require employees to absorb about a 25 percent cost share, with changes to deductibles, monthly cost sharing or tiering as options.

The meeting focused heavily on Sunnycrest, which Stella said has about 100 employees enrolled in the county plan — out of roughly 350 total enrollees — and that the county’s portion of the plan runs about $2,200,000 today. A supervisor cited an earlier estimate that the insurance increase of 6.6 percent would be roughly $484,000 and asked how that translated into levy impact. Stella confirmed the insurer’s renewal as‑is would amount to about 2¢ on the general supplemental levy under current valuation assumptions.

Supervisors and Stella discussed multiple levy scenarios. One packet scenario preserved an overall levy near $9.30; alternatives discussed included leaving levies where they are, reducing the general supplemental levy by 42¢, rolling 25¢ from other levies into general supplemental, or intermediate options. Stella recommended preparing several scenarios so the board could compare outcomes once Sunnycrest’s transition details and insurance consultant numbers were available.

Participants also pressed on timing and Sunnycrest’s finances. Stella said Sunnycrest would not receive levy proceeds until Sept. 1 and may face transition costs for payroll and software; she reported Sunnycrest’s FY27 expenditures at about $17,200,000 and that Sunnycrest had a roughly $2,000,000 fund balance — an amount several supervisors said may not be sufficient to cover near‑term costs without interim support.

Supervisors raised concerns about how shifting levies would affect taxpayers. "The taxpayer is gonna see a 42¢ increase in FY25 because of the Sunnycrest transfer," a supervisor said, and asked for modeling that explains why some 25¢ or 42¢ shifts would be taken between levy buckets. Stella and other supervisors noted that state property tax reform proposals (including a likely 2 percent cap under consideration) complicate planning because a cap applies to aggregate base amounts and different levy buckets cannot always be used interchangeably.

Stella told the board she would return next week with multiple levy and wage options and supporting calculations. The board set follow‑up working sessions for the coming week and Stella reminded members that the Department of Management filing deadline would set the tax‑asking and public‑hearing schedule.

Next steps: Stella will prepare at least three or four detailed levy scenarios that factor in Sunnycrest transition timing and updated insurance figures; the board will review those options at scheduled followups before finalizing levy asks.

Provenance: Topic introduced at SEG 006 and discussed through SEG 456; Stella’s specific Sunnycrest enrollment and plan‑cost figures appear at SEG 074–079 and the levy/insurance figures at SEG 042–056 and SEG 106–120.