Meeting Public Comments

Susi Lampe [City of Independence]

The City of Independence is requesting a delay in implementation of bill SF 181 until the Fiscal Year 2025 budgeting process so that changes in local government budgets due to this legislation can be done openly and transparently with public input and participation. It is way too late in the budget process for Fiscal Year 2024 to change this. We ask that you please wait.

Deana Cavin [City of Durant]

We ask that the subcommittee reconsider the timing of the recalculation of the residential roll back. While we understand that no one likes property tax or increases, property tax is what small cities survive on. Large cities can absorb some cost cuts, but for small towns, it can mean cutting a police officer position or cutting a roads project to improve infrastructure like bridges, and roads. We are not predicted to receive more in property tax revenue for Durant due to non existent growth. This rollback will take revenue away. Next year we will lose $70,000 with this roll back. If we have to redo this budget now, where do we cut? Is there not a way to allow this budget year to proceed, and make the changes for the next budget cycle? That would give the auditors time to let us cities know how much we will lose and give cities more time to prepare for it. But it still leaves the question where do we cut? It will have to be in public safety. We do not have any other positions we can cut and still operate the city daily. We ask that the tenpercentage required down for bonding, be reviewed. If the idea is to keep property taxes low this will raise the debt levy in small towns which will increase property taxes. For example, a city prepared to borrow $1,000,000 this year in general obligation bonds. This money is to fund two storm water projects that are critical to development of housing, and repairs to a water tower. We cannot raise our water rates or sewer rates higher to pay for this infrastructure. We are already one of the highest cities for water and sewer rates. If we have to put $100,000 down in order to bond, we will have to get a shortterm loan at the bank in order to borrow the $100,000. This raises the debt levy which raises property taxes. Some will argue that we should use local option sales tax for the ten percent down, but local option sales tax is also on the radar for changes. We have used local option sales tax to bail out the general fund because we are not getting enough in property tax general fund revenue the last two years. Its very hard to understand that property taxes are too high in Iowa and constituents are unhappy when cities hold budget hearings, no one shows up. Time after time, cities hold the public hearings, and not one constituent comes and asks questions. It is concerning that people then tell legislatures property taxes are too high. We hear from citizens that want more more parks improvements, street improvements, and recreational options. All this funding comes from the general fund per Iowa Code which is funded from property taxes. Some legislators will tell cities to raise fees. That is what our communities do not want. They feel like they are charged enough fees already. Its a round robin effect the state limits property taxes, we have to borrow more money, that raises the debt levy that raises the property taxes. Small cities cannot survive with these changes. We appreciate the work that the Governor and Legislatures do for Iowa and it is not easy, but these changes will make it much harder for growth in small cities. Thank you for your considerations. Deana Cavin, City Operations Officer/ClerkCity of Durant, Iowa, Pop. 1871