Winneshiek County Supervisors Approve Valuation Report Showing Strong Growth for FY2027

You'll want to remember this moment. Help us record what's happening in Decorah. The Winneshiek County Board of Supervisors on Monday approved the county's annual valuation report, confirming an increase in taxable value that is expected to generate significantly more property tax revenue in the fiscal year 2027 budget, while still limiting how much taxes can rise for residents under state law. County Auditor Ben Steines reported that overall countywide taxable valuation will increase by more than 9%, well above the statewide average of about 3%. After applying Iowa's property tax rollback system and statutory limits on levy growth, the increase will translate into an estimated 6.3% rise in county property tax revenue for the general fund. That equals roughly $412,500 in additional property tax revenue compared with last year, according to figures presented to the board. "This is significantly better than where we were sitting last year," Steines told supervisors, noting the county generated far less new property tax revenue during the previous budget cycle. The valuation report reflects assessments completed by the county assessor and adjustments required under state law, including rollbacks intended to limit taxable growth on residential and agricultural property to about 3% statewide. Because Winneshiek County experienced higher-than-average growth, its post-rollback taxable valuation still rose at a faster pace. Supervisors were cautioned, however, that higher valuations do not translate directly into equivalent tax increases. State restrictions enacted several years ago cap how much additional property tax revenue counties may collect, regardless of valuation increases. Under those limits, allowable growth is calculated by taking the prior year's property tax dollars, adjusting for valuation changes and then reducing the total by a fixed percentage. For Winneshiek County, that results in the 6.3% general fund increase. The rural fund, which supports county services outside city limits, shows a similar trend. Rural taxable valuation also rose by more than 9%, but property tax revenue growth for that fund is limited to about 6.15%, or approximately $109,600 in new revenue. Steines said rural fund expenses, particularly road funding and library support, are tied to total valuation rather than restricted tax growth, creating long-term pressure on the fund. Contributions to the county road department alone are projected to increase by more than $250,000 due to higher valuations, more than double the amount of new rural property tax revenue. Local option sales tax revenue, which voters have directed to provide 65% rural property tax relief, is expected to help offset some of that gap. Supervisors also discussed how recent changes in state law continue to affect county finances. The elimination of the military property tax credit, the expansion of the military exemption and the creation of a new over-65 homestead exemption removed nearly $15 million in taxable value from the county's rolls. Unlike credits, which are reimbursed by the state, exemptions permanently reduce taxable valuation without replacement revenue. Those impacts are reflected in the current valuation figures. The report also highlighted positive news for taxpayers in the county's supplemental fund, which covers employee benefits, insurance, emergency management and other restricted uses. With valuation growth and the completion of major 911 tower expenses, supervisors anticipate a substantial reduction in the supplemental levy rate next year. The board discussed using part of the one-time surplus to help stabilize health insurance costs rather than passing the full reduction through immediately. Supervisors unanimously approved the valuation report and related property tax actions, a step required under Iowa law to certify values, credits and exemptions for the upcoming budget process. While this year's valuation growth offers temporary relief, supervisors acknowledged that future budgets remain uncertain amid ongoing property tax reform discussions at the state level. "We may have dodged the bull this year," Steines said, "but we're not going to be this lucky every year." VALUATION HISTORY Budget Year Countywide Value % Increase Rural Value % Increase FY20 1,342,322,581 871,507,787 FY21 1,300,664,351 -3.10% 832,245,396 -4.51% FY22 1,335,618,529 2.69% 855,532,517 2.80% FY23 1,369,948,742 2.57% 870,645,093 1.77% FY24 1,407,935,247 2.77% 898,537,778 3.20% FY25 1,421,093,124 0.93% 892,423,305 -0.68% FY26 1,468,471,527 3.33% 922,857,782 3.41% FY27 1,608,322,359 9.52% 1,009,001,816 9.33% Fresh stories, delivered! Sign up for the free DecorahNews.com newsletter and stay informed, inspired, and ahead of the curve.