LEE COUNTY – Lee County Supervisors are looking at a steep increase in the county’s portion of the annual property taxes.
At a public hearing during Monday’s regular Lee County Board of Supervisors meeting, the board discussed the maximum tax levy being proposed by the county and Lee County Budget Director Cindy Renstrom said the county was moving the general basic levy from $3.50/$1,000 of assessed valuation to $5.85, an increase of 81% in that portion of the county’s levy.
That new levy rate will generate $18,615,530 during that fiscal year.
The new assessments that went out in the mail over the last several weeks won’t take effect until the fall tax payments in 2024.
“The reason why is our fund balance has gotten drastically low is because of overestimating revenue, and we didn’t raise the levy prior to that to help cover the $2 to $3 million budget and that was eating into our fund balance,” Renstrom said.
The rate is part of the county’s $13.53 tax levy that is being proposed for the 2023-24 fiscal year which starts July 1, 2023 and runs through June 30, 2024.
Other parts of the county budget include the general supplemental fund, which pays the majority of the county’s employee benefits, at $3.94; Rural basic services levy at $2.32, EMS levy of $0.75, a debt service levy of $0.65; and a Pioneer Cemetery levy of $0.02.
“We need to do this in order to start to get our balance back up,” Renstrom said.
Supervisor Garry Seyb said there were also some significant necessary upgrades around the IT network and security, but he said the county’s carryover over the past several months was critical.
“We want to make sure we’re not in the same position next year. There will not be funds available to right the ship unless we do this,” Seyb said.
Supervisor Charles Holmes said insurance payments are up 9.28% and that will cost the county an additional $300,000 plus.
“This isn’t going to stop. This is going to be year after year after year. Theoretically the insurance could consume the entire budget if we don’t do something about it,” Holmes said.
Seyb said the county is facing the same problems that everyone else is privately.
“We’re facing the same problems in the county that we are in our homes. Inflation rates going up, costs of items are going up, insurance is going up, and we’ve got these other issues,” he said.
“The levy can’t stay the same levy forever. At some point it has to increase just to be able to do business.”
Supervisor Ron Fedler said he had a conversation with a constituent that was so upset, he thought he was going to strike him.
“I’ve had a very long week with people talking about taxes. In fact, one person approached me and he was so upset I thought he was going to hit me. No matter what I told him, he didn’t want to hear it,” Fedler said.
Supervisor Tom Schulz said the increased levy really isn’t fixing anything. He said this has been a growing problem over the last several years.
“This isn’t fixing anything. We’re looking at a levy that’s barely keeping pace. And really, it’s not keeping pace. We’re going to have to find other funds just to operate. We’ve been headed this way for a while,” he said.
Supervisor Matt Pflug said the county is starting to get a clearer picture on ambulance revenue and the IT situation had to be corrected.
“Anytime the levy goes up you’re gonna have people that are upset. I did try to let them know why we’re doing it,” he said.
“We have a better feel now on the revenue from the ambulance, and the IT thing was a wake-up call and we had to address that,” Pflug said.
Seyb said the county should have increased the levy prior to this, but now they must take corrective action.
“We don’t want to increase the levy to the point where we have some huge surplus, but we do have to have that carry over budget to function. It’s not a rainy-day fund, it’s necessary to pay the bills,” he said.
“People see that we’re sitting with this $2.5 million at the end of the year to get us through til December each year. It’s necessary for the county to function.”
According to revised budget numbers, the county is projected to have a beginning fund balance in the general operating fund of $303,504 on July 1, 2023, and with the additional levied funds, the fund is projected to have $1.3 million at the end of June 2024.
The total county budget, which includes just under 30 funds, is projected to have a carryover of $14.5 million on July 1, 2023, with an ending balance on June 30 of $13.2 million.
Renstrom is predicting revenues of $40.5 million in fiscal year 2024, and expenditures of $41.8 million. General Basic has the most expenses with $17.3 million, followed by Secondary Roads at $9.5 million.
In a related issue, the county also set a public hearing to approve the proposed fiscal year 2024 budget on May 1 at 10:01 a.m. as well as approving a 3.5% salary increase for all elected officials in the county, which would include all employees under the personnel policy. Supervisors again did not take a pay increase.
In other action, the board:
• voted 5-0 to approve a letter of support for the City of Keokuk to the governor’s office for state America Rescue Plan Act funding to help Insight Corp. stand up an ER facility in Keokuk at the former Keokuk Blessing Hospital. The company is asking for $2.2 million in state assistance.
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