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New Albin hopes to fix bookkeeping snafu
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By Charlie Warner
Argus News Editor
When New Albin residents opened up their property tax statements for the next fiscal year, they got a surprise. While there was an amount due to pay for Allamakee County and the Key High School District, the amount of money to be paid to the city was zero.
According to New Albin Mayor Dick Mauss, the proposed budget for fiscal year (2009-2010) was not sent to the state offices. Unlike Minnesota governments, which run on a fiscal year that matches the calendar year, Iowa runs from July 1 through June 30 of the following year. All units of government are to have their proposed budgets and tax levies submitted to the State of Iowa by June 1 and tax statements are sent out mid-summer, with the first half to be paid by Sept. 30 and the second by March 31 of the following year.
Allamakee County Auditor Pam Benjegerdes explained unlike Minnesota, where school districts and municipalities submit their proposed tax levies to the county auditor’s office, in Iowa the proposed budgets and levies are sent directly to the state. She said the tax statements have been printed and sent out and the tax levy for New Albin property owners is indeed zero. Benjegerdes noted the state is looking into the matter and didn’t feel she could comment further.
Mauss admitted there was human error on the city’s part, but added he has already been contacted by a number of residents who said they wanted to somehow pay local property taxes. He said the city will probably have to borrow some money to get through the next fiscal year.
When New Albin Savings Bank President Barry Fruechte first heard about the problem, he began discussing various ways to remedy the situation with his staff and the city. Fruechte said a meeting has been scheduled for Monday, Sept. 28 at 7 p.m. at the Community Center to explain the situation and review options to correct it.
Fruechte said the bank is looking at spearheading a tax levy campaign where local residents will be encouraged to pay the same amount they did last year for the local tax levy. The local bank is looking at offering some type of a match, which will hopefully encourage more property owners to participate in the campaign.
“It’s an unfortunate situation. It was human error. It’s behind us now, we have to figure out the best way to make this work. All the details haven’t been worked out yet. So I can’t say too much right now,” Fruechte said Monday morning. “Hopefully we will get the support of the community and the city won’t have to borrow a lot of money.”
The tax levy for New Albin last year was approximately $120,000.
You can contact Charlie Warner at
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