SOLON — The city’s budgetary dilemma has been settled as the City Council approved the Fiscal Year (FY) 2024 budget during their regular meeting Wednesday, March 15.
The process was made more complicated this year in the wake of new legislation (SF-181, signed by Governor Kim Reynolds on February 20), which was intended to clarify the rollback calculation for residential and multi-residential property, and to provide $127 million in property tax relief to homeowners. The legislation was crafted to fix an error in a property tax law passed in 2021 and passed unanimously in the Iowa Senate.
However, local governments, such as the City of Solon, were well into their annual budget process using an incorrect formula provided by the Iowa Department of Revenue and resulting in an estimated $133 million budgetary shortfall statewide, and an approximately $50,000 shortfall for the City of Solon.
A work session was held Thursday, March 9 and final discussion was held on the 15th with the Public Works and Financial Administration department budgets identified for cuts totaling $47,000.
During the discussion, Public Works Director Scott Kleppe told the Council “We found cuts where cuts can be made.” Library Director Liz King noted she gave up a requested fulltime staff position and had proposed utility cost savings for the Library. The Council voted 3-0 (Steve Duncan and Cole Gabriel present, Lauren Whitehead attending via Zoom, and John Farlinger and Dan O’Neil absent) to not redo the City’s Comprehensive Plan at this time, which provides further cost savings.
Mayor Steve Stange thanked Kleppe and King noting the challenge of having so few departments to ask for cuts, and reminding the community that fire protection and law enforcement are both contracted (Tri-Township Fire and Johnson County Sheriff’s Office) making public safety somewhat insulated against budget cuts. Stange added that if a “financial cushion” develops, Public Works would have first dibs due to the many infrastructure needs of the community as it continues to grow.
The finalized budget was passed on a 3-0 vote.
A public hearing on the Maximum General Fund Levy will be held at the Wednesday, April 5 Council meeting. A notice with full details is printed in this edition of the Economist as required by the Iowa Code.