Burlington Mayor Jon Billups understands why the Iowa legislature enacted property tax reform with House File 718, with some areas of the state seeing rapid growth.
”There are a few areas that are just absolutely booming, and that’s why they’re trying to control the growth. They’re trying to control the growth of government and the property values and what they can be taxed,” Billups told TSPR.
But smaller cities and rural communities are not seeing the same growth as, say, Cedar Rapids or Des Moines.Property valuations are not growing rapidly in communities like Burlington, either. In some years, it’s actually decreasing.
On Tuesday, Burlington voters said no to a referendum that would have diversified revenue sources for the city by adding fees to gas and electric bills – and help make up for slow valuation growth and the effects of property tax reform. As a result, the city is moving forward with shaving $1.1 million off this year’s budget.
Billlups said House File 718 took away local levies in Burlington for public facilities, the public library, and emergency management – all of which were approved by local voters.
“That's our private citizens saying, we feel this is worth being paid for. And the state, in their wisdom, wiped those out,” Billups said.
Those three levies used to generate around $450,000 a year for the city.
“If that's something we voted on, local control is the most important thing about government, in my opinion,” Billups said. “We've voted on it as citizens, so let us maintain that. If you want to call it to a vote every four years, so be it, but let us vote on what we want and how it affects us.”
BIllups said he wishes the state would “start fresh” on property tax reform.
“No one is disagreeing that property tax doesn't need to be fixed in Iowa. But start at the base. Fix the rollback so we no longer publish an inflated levy rate that never happens. It hasn't happened for six years. Fix that first,” he said. “And invite the municipalities and the counties to the table to discuss how do we fix this going forward, what makes best sense for the state, what makes best sense for the county, and what makes best sense for the cities and towns and citizens.”
Billups said he’s not casting aspersions on the majority party in Iowa. He said he’s a proud member of the Republican party in his personal life.
“For any political party, compromise is what made America great,” he said. “We have to compromise to the best overall impact to our region, and to our citizens we are answering to. I really feel that’s not being done on its most effective level at this point in time. We’re not invited to the table.”
Around 53% percent of Burlington voters were against the franchise fees to help make up for the city’s budget deficits.Billups said while he was disappointed with the outcome, he was pleased with the turnout and he respects the will of the people.
He has pledged to engage the city council and community in budget discussions throughout the coming year as the city adjusts to property tax reform.Billups said the city has other options to address the budget situation, but he believes they may not be as “palatable” as the franchise fees.
“We'll continue to provide the services that we can to the best of our abilities,” he said.
One area of recent progress, Billups said, is working with Des Moines County and West Burlington to share services and equipment to better and more efficiently serve the public
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