At its March 23 meeting, the Linn County Board of Supervisors approved a $154.8 million balanced budget for fiscal year 2023 following two public hearings. The newly approved budget lowers the countywide levy (property tax) rate to $5.85 per $1,000 of taxable value. This lower rate is due to the passage of Senate File 619 that moved Mental Health & Disability Services (MHDS) funding from property tax to State appropriation. The rural levy rate, which is in addition to the countywide levy rate for residents who live in unincorporated Linn County, remains the same as fiscal year 2022 at $2.71 and includes a reduction of one dollar for rural residents from the Local Option Sales Tax allocation. This reduction is a result of 25 percent of the Local Option Sales Tax revenue that provides property tax relief in the unincorporated areas.
Commercial and industrial property taxes will decrease 6.3 percent due to the elimination of the MHDS levy. Agricultural property taxes will increase approximately 1.3 percent in FY23 due to a change in the state agricultural rollback net against the elimination of the MHDS levy.
Coupled with a change in the residential rollback by the state of Iowa, homeowners could see up to a 10 percent decrease in their county property taxes in fiscal year 2023.
The ending fund balance in Linn County’s general fund remains at 25 percent, as prescribed in Linn County’s financial policies.
Overall, the FY23 budget continues Linn County’s funding priorities of public health and safety, roads and transportation, the environment, and necessary capital improvements. These priority areas reflect Linn County’s strategic plan, which focuses on customer satisfaction, high quality of life, and financial health and have a positive impact on the County’s ability to serve residents. The FY23 budget includes funding for the maintenance of the outdoor warning siren system now under ownership of the Linn County Emergency Management Agency (previously under the ownership of Duane Arnold Energy Center/NextEra).
Linn County taxes account for approximately 16 percent of the overall tax bill paid by Linn County property owners in incorporated areas. The remaining 84 percent of property taxes goes to the property taxpayer’s city of residence, school district and other taxing bodies in the county. Linn County taxes represent slightly more than one-third of property taxes for rural residents. FY23 runs July 1, 2022 to June 30, 2023.
“Our budget planning began in November 2021 and was led by our award-winning Finance & Budget Department. We developed this budget over the course of more than 20 public meetings between the Board of Supervisors, other Linn County elected officials, and department heads,” said Linn County Board of Supervisors Chair Ben Rogers. “I am proud of our open and accessible budgeting process and the fact that we align our budget with our strategic plan to fund programs, services, and projects that improve the lives of Linn County residents.”
FY23 Linn County Budget Summary:
- Budget of $154.8 million – an increase of 18.4 percent from last year due in part to the receipt of $22 million in federal American Rescue Plan Act (ARPA) funding
- A decrease in the FY22 countywide levy rate to $5.85 per $1,000 of taxable value in FY23 (the decrease is due to the passage of Senate File 619 that moved Mental Health & Disability Services (MHDS) funding from property tax to State appropriation)
- No increase in the rural levy rate of $2.71; rural levy rate includes a reduction of one dollar for rural residents from the Local Option Sales Tax allocation as voted on by rural residents
- Impact to homeowner: A decrease of up to 10 percent in county property taxes due to a decrease in taxable value as a result of a change in state residential rollback
- A decrease of 6.3 percent in commercial and industrial property taxes due to the passage of Senate File 619 that moved Mental Health & Disability Services (MHDS) funding from property tax to State appropriation)
- Farmland taxes will increase approximately 1.3 percent due to a change in state agricultural rollback
- Property taxes levied: $75.5 million, a decrease of 2.9 percent from FY22
- Property taxes account for 49 percent of Linn County’s FY23 budget (this is a decrease from previous years due in part to the receipt of $22 million in federal American Rescue Plan Act (ARPA) funding)
- Local Option Sales Tax revenue of $3.6 million is estimated for road construction; $1.7 million for Conservation projects; and $1.5 million in property tax relief for rural residents
- Achieves goal of general fund ending balance of 25 percent
- Linn County’s 2023 fiscal year runs July 1, 2022 to June 30, 2023
View the budget presentation (PDF).