SOLON — City staff continue to grapple with an unexpected budgetary shortfall in the wake of legislation affecting property taxes, and a state level computing error, which has resulted in municipalities across Iowa facing an approximate 2% less revenue than anticipated – and budgeted for.
Efforts to finalize the Fiscal Year (FY24) budget for the city of Solon were put on hold during the City Council’s regular meeting Wednesday, March 1 as city staff continues to explore options, and were awaiting revised financial numbers from the Johnson County Auditor’s Office. City Administrator Cami Rasmussen told the Council the Auditor had until Wednesday, March 8 to make the new numbers available and added that a special meeting might be necessary on March 8 (after this edition had gone to press).
Rasmussen also reported on her visit to the state capitol with representatives from the Iowa League of Cities to meet with legislators about proposed legislation that will impact city budgets. She noted among the challenges created by the reduced revenue would be a limit in funding available to expand city staff to meet growing demands as well as for infrastructure repairs and improvements.
“It is concerning what is being discussed,” she said. “Every property tax resource is under evaluation.”
Two bills are particularly worrisome, she noted: Senate File (SF) 356 and Senate Study Bill (SSB) 1125.
SF356 provides a new process to derive a city (tax) levy rate, which is connected to assessment growth.
SSB1125, she said, has many parts to it with the primary impact to Solon being to the Local State Sales and Use Tax (LOST), which would change to a statewide sales tax.
“In November of 2021, 75% of voters approved adding emergency services facilities to Solon’s LOST Revenue Statement. This approval allowed for LOST funding the city receives to help with the cost of the new Solon Firehouse,” she explained. “Current and future LOST funding has been allocated to the Firehouse Project over a 15-year bond.” The Solon Tri-Township Fire Dept. serves 112 square miles including the City of Solon as well as Big Grove, Newport, and Cedar Townships.
Mayor Steve Stange made his displeasure known stating a “…large Republican group (in the legislature) is pushing this.” Stange told the Council, “You’re going to have some very hard decisions to make,” and added with the uncertainty it will be very difficult to make any long-term commitments. “It could be a problem for us,” Stange said.
A public hearing regarding the Maximum General Fund Levy will be held Wednesday, April 5 at the regular meeting of the City Council giving residents the opportunity to voice their opinion on the levy the Council is considering enacting.
Other Council action from March 1
The Council approved renewing the lease on the Community Center for the period from April 1, 2023, through March 31, 2024. The city and the school district have partnered since 2018 for use of the former school located at 313 S. Iowa St. as a community center with the gymnasium shared by the city and school as well as being rented out to local groups for practice space. In addition, Jordan Creek Church rents parts of the facility from the city for their youth and Sunday worship services.
During discussion it was noted that passage of the district’s proposed $25 million bond referendum would all but seal the building’s doom as plans for demolition and replacement with a new administrative office building are included in the slate of projects to be funded. However, there is no set timeline for the various projects, and it was agreed the city would proceed on a year-to-year basis for leasing the facility until such time as it is no longer available.
Last year a group of interested senior citizens and others gathered informally several times to discuss the possibility of a dedicated Senior Center and/or the possibility of a new Community Center/Senior Center. The group also considered seeking a city/district partnership with space for a Senior Center.
Consensus among the Council supported conversations with the district for a combined facility with Councilman John Farlinger saying the city should partner with the school if they can.
Mayor Stange agreed noting, “We could be in for a wild (tax) ride.”
The lease agreement passed 4-0 with one absent.