The proposed FY2026 (year ending June 30, 2026) for the city of Jefferson shows general revenue of $4,182,678, general fund expenditures of $4,404,312, and a combined levy rate of $14.88 (per $1,000 of taxable valuation).
The combined levy rate is unchanged from the current year. However, the portion of the levy for debt service is up 36 cents over the current year, from $1.89 to $2.25. The general fund levy is decreasing by that same 36 cents.
City finance officer Sarah Morlan presented the proposed budget at the Jan. 28 council meeting.
The information she presented to the council showed total valuation for general fund use at $162,422,857, and the valuation for debt service use at $197,579,947. The figures predate a settlement between the county assessor and the owners of Wild Rose Casino that resulted in the casino’s tax assessment being decreased by about $3 million. Final figures in the city budget will need to account for that decrease.
Morlan provided pie charts of general fund revenues and expenditures. Property taxes account for the largest portion of revenue at $1,513.719, or 36 percent of the total. Transfers in account for $1,040,261, or 25 percent.
Police is the single greatest expense in the budget at $1,111,426, or 25 percent. Recreation is the second greatest at $689,634, or 16 percent. Recreation expense, however, is partially offset by $522,500 in revenue. Administration accounts for 15 percent of the budget at $659,100.
City administrator Scott Peterson pointed out to the council that Morlan has put “cash on hand” into the Iowa Public Agency Investment Trust (IPAIT), and an interest-bearing NOW account, and road use taxes are now also invested until needed. She projects earning $142,000 in interest in the coming fiscal year, compared to $5,640 in the current year.
Council member Harry Ahrenholtz, when Morlan completed her presentation, said, “We’re in a better place than we’ve ever been as far as knowing what those total dollars are, what those tax levies needs to be within a reasonable range to get us where we expect to be and what the public is wanting.”
The council will hold a public hearing on the property tax levy at a special meeting April 1. The public hearing on the FY2025-26 budget will be held at the regular meeting April 22.
In other business, the council approved a memorandum of understanding on the proposed airport “fuel farm” project. The project involves replacing the current aviation fuel system and installing a jet fuel system. The project would be funded by two federal grant programs over the next two fiscal years, with an estimated total project cost of $1.02 million. Federal funds would cover 95 percent of the cost, with local funds used for the remaining 5 percent.
The memorandum of understanding is between the city and the airport commission. The city will front the local portion and be repaid by the airport commission at a rate of 50 percent of the profit from fuel sales until the amount is repaid in full. Sales of aviation fuel currently gross about $20,000 per year, according to Peterson.
The council also approved a contract with Bolten & Menk for engineering services on the project.
The council approved submitting a grant application to the Region XII Housing Trust Fund to assist with housing rehabilitation. The application is for $30,000, to match what the city has on hand. The funds would be used to complete a renovation at 405 S. Chestnut St, rehab a house at 105 N. Walnut St, and work at a third location to be determined.
The council held the third and final reading of an ordinance providing for an animal appeals board. The ordinance becomes effective after it is posted as a legal notice in the city’s official newspaper.
The council approved submitting a pair of grants to Grow Greene County – one for $39,000 to install 768 feet of 6-ft wide concrete cart paths and improve some gravel cart paths at the municipal golf course, with total project cost being $41,800; and the second for $38,000 to install the remaining walking path in the large dog portion of the dog park, with total project cost being $42,000.
