Linn County reduces community grant programs but would boost staff pay in fiscal 2025 budget

CEDAR RAPIDS — After cutting more than $1 million in proposed spending to keep up with the fiscal toll of state tax reform, the Linn County Board of Supervisors will adopt a fiscal 2025 budget that scales back community grant programs and other discretionary items but bumps elected official and staff pay.

The supervisors on Wednesday are slated to adopt the budget for fiscal 2025 — the budget year that spans July 1 through June 30, 2025. The three-member board meets at 10 a.m. in the formal boardroom of the Jean Oxley Public Service Center, 935 Second St. SW.

The county’s proposed budget book will not be available until this summer and is not required to be finished until 90 days after budget adoption, but highlights of the budget are included in a PowerPoint presentation on the county’s website, linncountyiowa.gov. It was shared when the supervisors in March held a public hearing to present the budget. To draft the budget, county officials held more than 20 public meetings with department heads and supervisors starting in November.

“The budget we put forward was fair and reasonable,” Supervisor Chair Kirsten Running-Marquardt said. “We made our fair share of cuts and kept in mind the balance that we needed to strike with providing a level of excellence of service for people here in Linn County …”

The countywide levy rate will increase to $6.07 in fiscal 2025 from the current rate of $5.96. The rural rate would drop to $2.63 from $2.71 in fiscal 2025, including a reduction of $1 for rural residents because of the voter-approved local-option sales tax allocation.

Under the new proposed countywide levy rate, the owner of a house with an assessed value of $200,000 would see a $562.57 annual county tax bill, not accounting for taxes due from other taxing authorities.

Valuations for most property owners have changed from year to year. Budget Director Sara Bearrows said in an email that 76 percent of non-Cedar Rapids county residents will actually see an increase in their taxes to Linn County compared to last year because their home’s assessed value rose.

The state-set residential rollback rate — the percent of a home’s value that can be taxed — of 46.3 percent is the lowest it has been in 45 years. That means now more than half of a home’s value can’t be taxed, which is bad news for local governments, but relief for taxpayers.

Labor contracts, voting equipment push spending up 3.2 percent

The county’s proposed expenditure budget is $157.1 million — up $4.9 million or 3.2 percent because of increases in negotiated labor agreements, software contracts, utilities, debt service because of the voter-approved Land and Water Legacy bond issue, and elections to account for precinct and technological requirements.

The Linn County Compensation Board, which recommends pay bumps for elected officials and deputies, in January recommended a 7 percent raise for the county attorney, sheriff, supervisors, auditor, treasurer and recorder. The supervisors also will vote on those salaries Wednesday, likely decreasing the raises.

The proposed budget maintains a reserve balance of 25 percent of the $103.7 million general fund expenditures, about $25.9 million, Bearrows said.

The proposed revenue budget is $157.6 million — a bump of 6.4 percent primarily because of an increase in the countywide levy rate, investment earnings, camping revenue and local-option sales tax. That local-option sales tax allocation supports $3.8 million for road construction, $1.9 million for conservation and $1.9 million in property tax relief for rural residents.

Of that revenue, property taxes levied totals $83.3 million — an increase of 6.5 percent from fiscal 2024 because of the increase in the countywide levy rate and valuation growth.

Assessed values across residential, agricultural land and buildings, commercial and industrial classes totaled $25.5 billion across Linn County for fiscal 2025 — up nearly $41 million from the prior budget year, over 19 percent. Countywide, taxable valuation for those classes totaled $13.9 billion.

There were no approved “offers” in the fiscal 2025 budget — the county’s term for a process where departments can apply for new staff or initiatives that would be supported by general fund dollars.

Federal inmate revenue will drop to $1.6 million from $3.6 million after the Linn County Jail is no longer housing federal inmates for the U.S. Marshals Service. The inmates were moved to other county jails in Iowa.

Supervisor predicts ‘very difficult’ future budget decisions

After state lawmakers last year passed House File 718 with bipartisan support, Supervisor Ben Rogers said the county’s taxable valuation grew 4.4 percent, but based on that legislation only captured 2.4 percent of that valuation growth. The bill set triggers to reduce the levy by certain amounts if valuation growth is 3 percent or more.

“There were a lot of pressures placed on this board to make some decisions” to cut $1.162 million and add about $1.61 million into the general supplemental levy, Rogers said.

Like last year after a state error in the rollback formula threw a wrench in local governments’ budgets, the supervisors cut spending on various community grant programs and other county initiatives.

That included its $50,000 contribution to the Creating Safe, Equitable and Thriving Communities task force, which works to identify the root causes of gun violence and develop strategies to address them. Other funding reduced included the county’s Economic Development, Main Street, and Legacy and Community Attraction grants.

Supervisor Louie Zumbach supported reducing the Sustainability Department’s operating budget and downgrading the director role after Tamara Marcus’ departure in November, but didn’t gain support from the other two supervisors.

Rogers warned of more “very difficult” budget decisions in future years.

Zumbach, the board’s lone Republican, was the only supervisor who opposed passing the draft budget after suggesting nearly $1.397 million in cuts to discretionary spending — more than the $1.162 million in proposed spending cuts the board landed on.

“I think we’re all three frustrated about where it ended up,” Zumbach said. “… I hope that in future meetings early on that the public does start coming to meetings and voicing their opinions.”

The Linn County Auditor’s Office earlier this year sent a mailing to show taxpayers budget and tax information from all taxing authorities and notifying them of public budget hearings — a requirement included in the tax reform package intended to increase transparency in the budget process. Annual tax bills will come out in August.

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