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Budget director: taxable growth helps but levy limits and rollbacks leave a modest operating deficit
Summary
Budget Director Stella Runde presented preliminary tax calculations using 01/01/2025 valuations, showing taxable valuations rose but statutory levy limits and rollback reductions leave an estimated initial general‑fund operating deficit of about 4.9% for FY27; the board set modeling assumptions and a budget calendar.
Stella Runde, Dubuque County Budget Director, told supervisors the county will base FY27 budget modeling on Jan. 1, 2025 taxable valuations and an assumption of no overall change in the county’s total levy (base 9.30911 per $1,000).
Runde said the taxable value used for general services is $6,184,050,017 — an increase of $364 million (6.27%) over last year — and noted each penny of the general basic levy equals about $61,841 in revenue. She explained recent state legislation (House File 718) and valuation growth triggers have ratcheted Dubuque County’s general basic levy downward to about 3.29845 per $1,000, producing an effective reduction in revenue that lowers projected taxable growth from 6.27% to about 3.17%.
Runde described how the county will use existing fund balances (debt service fund balance and others) to smooth principal and interest payments and to offset short‑term operating deficits. She said preliminary modeling projects a roughly 4.9% operating deficit in general basic operations under current assumptions and that rural basic also faces a shortfall; she cautioned that fund balances can cover a shortfall this year but are not a long‑term solution.
The board discussed whether to accept modeling assumptions and how to treat compensation: supervisors asked for clarification on the sources of the valuation change and whether the $2.9 million of additional revenue reflected valuation growth rather than inflation. Runde confirmed that much of the change stems from valuation growth and that debt service, which is levied on all property classes, also explains part of the difference.
Runde concluded by reviewing the budget calendar and deadlines: bankable final budget decisions by Feb. 26, upload to the Department of Management by 4 p.m. March 5, taxpayer statements mailed by March 15, public hearings tentatively April 6 and April 20, and certified adoption to the state by April 30.
Why it matters: although assessed values rose markedly, state levy limits and rollback mechanics reduce the county’s ability to capture all of that growth in tax revenue; supervisors must weigh compensation, service levels and capital needs against those constraints during upcoming work sessions.
