Supervisors Approve 3% Raises

SIGOURNEY – During the Jan. 13 meeting of the Keokuk County Board of Supervisors, the board discussed compensation increases for elected county officials. After reviewing pay rates for counties of similar sizes, Supervisor Mike Hadley asked how much a 1% increase would cost the county. Supervisor Daryl Wood stated that the county spends $2,695,000 on employee salaries out of the General Basic Fund, meaning a 1% raise would cost around $27,000. He noted that this does not include Secondary Roads or Assessors’ Office employees, who are paid out of different funds. Wood stated he did not have payroll information for road employees, who make up roughly one third of county employees. Hadley estimated that, including road employees, the county spends around $4,000,000 total on salaries.

Hadley asked how much new money the county received this year. Wood stated the county gained $75,000 in General Basic from increased assessment value on properties. Hadley stated that the Consumer Price Index stated inflation was a little below 3% this year, which is what the board normally considers. According to the Consumer Price Index, the prices nationwide rose 2.7% between November 2023 and November 2024. Wood stated that General Basic revenue went up 2.58% this year. He estimated that, with a 3% increase in salaries, the county would be $9,000 short, not accounting for other expenditures. He stated that, if insurance prices go up, they will need to find money elsewhere and possibly dip into reserve funds. Auditory Christ Bates stated that they don’t have insurance rates yet, but that she had been told they would likely see a 3-4% increase. Deek noted that they had not put any money into partial self funding this last year, but may have to contribute this year.

Wood noted that 80% of General Basic comes from rural properties and that all of the growth this year had been from rural residents. Hadley stated it was difficult to lock in budgets, because inflation fluctuates, and that he didn’t want to use one-time money to pay for raises. Both Hadley and Wood stated that they wanted to give 3% raises, but weren’t sure if they could pay for them. Wood noted the Back the Blue Act, which requires they at least discuss large pay raises for law enforcement. He stated that he wanted to give Sheriff Casey Hinnah a large raise, from $96,000 to $115,000 per year, to make his pay in line with other counties with similar populations, but couldn’t afford to do so. He noted that other counties with similar populations have millions more in taxable evaluation and thus more money to spend. Wood stated he had spoken to supervisors from surrounding counties, who were planning on 0% increases, because they don’t have the money for raises.

Conservation Director Pie Reighard asked what raises would cost, excluding the road and assessor’s offices. Wood estimated $85,000, excluding IPERs and FICA costs, compared to the $75,000 in new money. Reighard asked what could be cut. Hadley stated the Secondary Roads Department could. County Engineer Andy McGuire explained that 70% of the funding for roads comes from gas tax, which can’t be used for anything else. He stated that the supervisors could transfer some property tax money from the Rural Services fund into General Basic and that the supervisors had done so in the past. He stated the issue with taking too much from roads is that, if the county falls below a 75% contribution, the state will withhold road use tax dollars and take away farm to market money, preventing the department from starting new projects. He stated that the Secondary Roads Department is heavily funded by the Iowa Department of Transportation and that the roads department’s budget just goes towards maintenance. He compared this to Mahaska county, who have higher taxable evaluation and thus are able to fund local construction.

Hadley stated that everyone wants property tax relief, but that the government needs money to operate. Reighard asked about other funding sources, like fees for car titling. Hadley stated increased title fees could help fund the Treasurer’s Department, but that it wouldn’t be enough for the other departments. Reighard asked if the county could dip into its cash reserves. Wood stated they could, but that if insurance was high and they spent all the new money on raises, the county would have to use one-time money for insurance, then likely cut employees next year when the money ran out. He noted that the county had already cut a full-time treasurer employee recently and was planning to cut an employee from the Auditor’s Office when Bates retired. Wood stated that he was trying to be proactive. He stated that the county had also taken in extra money from investing in Iowa Public Agency Investment Trust, which would help with costs.

Wood stated the county was currently healthy financially, that he believed a 3% increase would be okay, and that next year they’d have to see where they were. Hadley stated they could do a 3%, but that it wasn’t good to need to take from the reserves. He stated that the county would need to change direction, because they can’t keep robbing the future. The supervisors ultimately approved 3% raises across the board.

Also at the Monday morning meeting, McGuire stated that the DOT is planning to resurface IA 149, starting from the south side of Sigourney, this year. He discussed “piggybacking” on this project and milling two inches and overlaying three inches on the Hayesville road, from Hayesville city limits to 149 west. McGuire stated this would cover 2.14 miles of road and likely cost around $800,00-$1,000,000. He stated he did not know when the DOT project would start. The board approved getting bids from the project.

Rochelle Fuller from Senator Chuck Grassley’s office spoke with the supervisors, recommending that individuals who have issues with Social Security or Veterans Affairs problems be forwarded to her office. Hadley stated that, as a veteran, he was concerned by talk he had heard about privatizing the VA, stating he wants things to stay how they are now.