By Mari Radtke
Councilperson Chase Cox was awarded a Certificate of Appreciation by Mayor Kay Gifford to open the December 4 regular City Council meeting. Three new council members took the oath of office administered by Cox, who had served as Mayor Pro Tem. Cox served one term on the council and chose to vacate the position.
Bruce Engelke and Patrick Nelson each won an additional term to office. Nancy Kuehl will take her place on the council beginning January 2, 2024.
City Clerk Amanda Vanderhoff warned council of changes to the budgeting system due to changes in state code. To supplement her explanation she provided an Iowa League of Cities summary of House File 718 with instructions in how to meet the budget demands of how to reach the tax reductions demanded by the state.
State code sets out several special levies utilized by cities are to be combined into their general levy often referred to as the $8.10 levy. The law also limits assessment valuation growth.
Sixteen funding sources (levies) to be merged into the general fund levy help cities pay for music groups, memorial buildings, symphony orchestras, cultural and scientific facilities, county bridge, Mississippi or Missouri River bridge construction, bridge purchase, contract for use of bridge, aid to transit company, rent, insurance, maintenance of city-owned civic center, planning a sanitary disposal project, levee improvement fund in “special charter city,” maintain institution received by gift/devise, city emergency medical district or support public library.
Levies the state is not merging at this time are to pay for pensions, employee benefits, operation and maintenance of a municipal transit system or regional transit district, aviation authority, tort and self-insurance, capital improvement reserve fund, support for a local emergency management commission, emergency services district and a levy to exceed a maximum amount set in Code with narrow/newly-defined parameters.
The coming fiscal year will establish the baseline evaluation to set limits to valuation growth over time.
Cities will have 5 fiscal years to use adjusted valuations in accordance with HF718 each year to bring a city’s ability to operate to within and $8.10 levy.
Cities will have until FY 29 for all of its spending, except those noted above, to be funded entirely by the $8.10 levy and within that unadjusted assessment.
While homestead exemptions remain in effect, the state will no longer fund the exemptions. According to the League of Cities’ handout, cities and counties will simply have a reduction if taxable value.
Counties are undergoing similar property tax control. One cost increase imposed on the counties includes requiring county offices to mail to each property taxpayer an annual statement and changes of the budget process and timelines. Timelines have been shortened and reporting/filing processes will have steps added, such as public hearings.
The first budget workshop for Sutherland was set for Tuesday December 19, 2023 at 6:00pm at City Hall. A public hearing for a budget amendment to the current budget is set for January 2, 2024 as a separate item at the regular meeting.
Bids for snow removal at the City Park are being accepted. They will be open at the December 19 budget workshop.