The Hamilton County Board of Supervisors met in special session Tuesday morning and approved the 2020-2021 county budget amid the financial uncertainties presented by the COVID-19 pandemic.

“We’re in the midst of what has proven to be the largest social and financial disruption this country has experienced in modern times,” Chairman Doug Bailey said before opening the public hearing. “When we began work on the 2020-2021 Fiscal Year budget, COVID-19 was an unknown term. As we now officially finish work on this budget, Iowa and Hamilton County are sitting at the beginning of the virus ramp up. We have taken measures to aid in the reduction of the spread of the virus in the last few weeks to protect our citizens and staff. Additional measures are being developed.”

Bailey said the impact of the virus to Hamilton County and more specifically to this current year’s budget will become clearer over the final quarter of the fiscal year. He added that the cornerstone to any county budget is the carry-over balance from the previous year.

“This carry-over provides the financial basis for the beginning of the next fiscal year,” he said.

He also said that the carry-over is threatened by the financial effects of the virus. The state and federal governments are taking measures and developing policies to help mitigate the financial impact to local governments, but Bailey said the supervisors were uncertain virus’s financial impact and to what degree state and federal assistance will provide relief.

“We’re in uncharted territory,” Bailey said.

The fiscal year 2020 ending fund balance was re-estimated in December for the combined general funds to 13.56 percent. The target maximum, the amount not to be exceeded, is 25 percent, according to Bailey. In the 2019 fiscal year, the ending fund balance was amended to 15.17 percent and the actual was 20.89 percent.

“We typically will come in with a carry over that is stronger than budgeted, sometimes much stronger,” he said.

In the FY 2021 budget, the combined general funds are at 11.9 percent, about a half percentage point over the original budgeted carry-over of 11.38 percent.

“So, it’s still very lean going forward,” he said. “And it’s a cause for concern, given the times we are in.”

The supervisor’s held a meeting March 10 held a hearing at which the board was required to set the maximum budget.

“We couldn’t change the budget here today if we wanted to as far as an increase and considering the emergency situation we may find ourselves in,” he said. “This is what we must start the next fiscal year with.”

The total of urban levy – for those living within a city — is a .40 percent increase. The total rural levy – taxes collected from ag land – is a .25 percent increase.

“The general supplemental levy remained the same, 2.3746. The mental health levy is going from .34431 to .38542, a little over 4 cent increase in the levy,” Bailey said. “That is the levy for all 11 counties in the mental health region we are a part of.”

Bailey said the increase to the urban levy will go from 6.53807 to 6.56451 for FY 2021. The increased rural levy will go from 10.48807 to 10.51451 in FY 2021.

“The levies are pretty stable,” he said. “The valuations – that is where the change and growth is at.”

Total valuations are about 4.93 percent.

Bailey reminded county residents that the valuations are not the product of the current inspections that have been taking place across the county.

“Valuations are based on a two-year old assessed value. The values that the assessor assessed in 2019 – those are what we’re using for 2021,” he said. The inspections being done this year will affect taxes two years from now. However, ag land valuations are based on a five-year productivity value, he said.

The change in total taxes collected is a 4.8 percent increase, Bailey said, and that translates into a $394, 052 increase.

“So, our budget is tied to the increased taxable valuations and not the levies,” Bailey said.

He said that with the state rollbacks, a $100,000 home would pay taxes on $55,000 of value. On ag land, the rollback is at 81.48 percent for the next fiscal year.

With no oral or written objections, the board closed the public hearing.

The supervisors also voted to give elected officials a 2.75 percent salary increase. The county compensation board in December had recommended a 4 percent increase across the board for elected officials and a $2,000 supplement to chair of the board of supervisors.

“Under the current circumstances, we are looking going along with the basic 2.75 percent increase that majority of the county employees will receive,” Bailey said. “Back in December, nobody had heard of COVID-19. I just think (2.75 percent) is what we should be considering.”

The board approved the Fiscal Year 2020-2021 county budget.