North Liberty moving forward with special census

NORTH LIBERTY - The City Council has approved a special census that, when completed, could add hundreds of thousands of dollars each year to the city's streets budget.

The council unanimously approved Tuesday plans to embark on the time-consuming process of counting the estimated 16,800 residents in North Liberty.

'We're excited to actually start and complete this process,” City Administrator Ryan Heiar said. 'It's going to be really time-consuming, but we believe it's certainly worth that time.”

If officials' estimates hold true, North Liberty could gain an additional $280,000 a year in road use tax funds, which are divvied out to cities annually on a per capita basis.

The city received about $1.3 million in road use tax funds last year. That amount was based on 2010 census numbers, when North Liberty's population was 13,374.

The state's road use tax fund has hovered above the $90-per-capita range for the past several years, and dollars received through the tax must be used on streets or bridges, road updates and maintenance, traffic signals and lights, or snow and ice removal.

North Liberty will have to dole out $310,091 to pay for the special census; about $146,000 to the U.S. Census Bureau and another $164,000 to pay local census employees, who will work temporarily out of City Hall.

But because of the count, city officials expect to see $1.4 million in additional tax revenue over a five-year span.

'We should be able to recoup our expenses pretty quickly,” said Tracey Mulcahey, assistant city administrator.

It's expected the entire process, which officially started in July, will take 18 months. That means the new census would be ready for federal approval in early 2016.

Mulcahey said North Liberty officials had been eying the possibility of a special census since 2010.

The tipping point came when it was determined the city's new population - estimated at roughly 5,000 residents more than in 2010 - would translate into enough tax revenue to warrant the cost.

'We knew we were going to (pursue a special census), it was just a matter of planning it so that we could capture the most mid-cycle,” Mulcahey said.

North Liberty has hosted a special census in 2004, 1994, 1976 and 1967, Mulcahey said.

Another factor that could come into play, if it passes the Nov. 4 election, is the countywide local option sales tax.

If the LOST passes, North Liberty already is poised to generate roughly $875,000 annually with the 1-cent tax and receive nearly $1.35 million in LOST revenue.

With LOST revenue distributed based in large part on the most recent census data, updated population information for North Liberty could result in the city bringing in hundreds of thousands of dollars more annually. The council has determined that any potential LOST funds will go toward street projects, water rate reductions and parks.

'It's a win for everybody,” North Liberty Mayor Gerry Kuhl said. 'What it really means is, by voting for the local option sales tax and if it passes, we don't have to put those projects on the tax bill.”