Two weeks ago rural voters in the county turned down Public Measure IM that would have allowed a portion of the Local Option Sales and Service Tax (LOSST) revenue allocated to the county on behalf of rural residents to be used to repay bonds for a new HVAC system at the courthouse. The vote was 877 (62.82 percent) against and 519 (37.18 percent) yes.
The county supervisors said before the election that if the public measure didn’t pass, property tax levies would increase for all taxpayers in the county.
However, after discussing other possible options for funding the project, the supervisors agreed during their Nov. 18 meeting that the best way to fund the project is still using LOSST revenue. They’re just going to do it a bit differently.
The plan now is to make bond payments from the general basic fund and transfer LOSST funds to that fund to offset the cost.
LOSST revenue to the county is about $542,000 per year. Of that, the supervisors put $425,000 into the secondary roads budget and the sheriff’s budget for a new patrol vehicle. That provides property tax relief to rural residents by decreasing the amount of the rural levy needed to cover expenses.
That leaves $117,000 in excess LOSST revenue. That would be transferred to the general basic fund for the bond payment, which county treasurer Katlynn Mechaelsen estimates at about $150,000 per year. Mechaelsen is confident the county has reserve funds to cover the rest of the payment.
Total cost of the proposed project is $3.4 million. Of that, the county has $1.7 million in American Rescue Plan Act (ARPA, Covid-related) funds for the project. Bonds will be sold for $1.6-$1.7 million to cover the rest of the cost.
Mechaelsen said she has already talked with local banks about a private bond placement. That would allow the county to pay off the bonds early and save interest costs.
Long time publisher Rick Morain reminded the supervisors they had said prior to the election that levy rates would increase if the public measure failed. Muir replied that the supervisors didn’t know at the time that transferring LOSST revenue into the general basic fund is an option.
The supervisors must hold a public hearing prior to approving that method of financing the project. If the supervisors approve the plan and voters disagree, voters would be able to file a petition to have the question put on a ballot. According to the Code of Iowa, the ballot measure would need to be part of a general election. The next general election is in November 2025.
