Supervisors discuss distribution of LOSST funds with township, city representatives during work session

by Bob Beach

In addition to its regular meeting, the Allamakee County Board of Supervisors held a work session Tuesday, May 6 with representatives from the County's townships and cities to discuss the upcoming special election regarding the renewal of the Local Option Sales and Service Tax (LOSST). Chairman Larry Schellhammer opened the discussion by saying that he recognizes the importance of LOSST as a funding source and that the Board would like input as to how those funds are distributed. He explained that currently 33% of LOSST funds collected in unincorporated areas are distributed to the townships, 20% to Secondary Roads, 22% to the Rural Services Fund and 23% to E911. Schellhammer said that the cities determine their own distribution formula, noting that none of the cities contribute LOSST funds to E911, primarily because they had never been asked to do so.
Allamakee County Sheriff Clark Mellick and E911 Coordinator Chris Fee gave a presentation regarding the use of LOSST funds. Mellick said that E911 is funded with approximately $180,000 annually from LOSST, with additional funding from the 911 surcharge added to phone bills. He said that those funds are used to pay radio tower expenses (rent, generator gas, maintenance, upgrades, etc.), as well as keeping an up-to-date digital phone system, mobile computers, 911 signage, equipment and maintenance. He added that approximately 3,000 911 calls are received per year and that Allamakee emergency services (fire, ambulance, police, etc.) respond to approximately 12,000 incidents per year.
Many of those in attendance expressed dismay and outrage that the unincorporated areas have funded E911 from LOSST revenues without any contribution from the cities for the past 10 years.
Chairman Schellhammer assured everyone that the Board would not underfund E911, but said that he would consider a more equitable way of funding it. He suggested funding E911 from the General Basic Fund, to which all land owners contribute through property tax, and then distributing 40% of LOSST revenues to the townships, 30% to rural services and 30% to secondary roads. The majority of those in attendance said that they would support such a change, but there were several who said they support keeping the distribution the same.
Supervisor Sherry Strub noted that the proposed change would result in a tax increase for all land owners in order to fully fund E911.
Supervisor Dennis Koenig said that he is concerned that if changes are made to the LOSST distribution percentages, the tax may not pass in the election this August, but was reminded by several at the meeting that the same risk would be true if no change was made. "Tax dollars are tax dollars," Koenig said. "Everybody should pay for E911 but I don't want anything we do to shorten up what E911 does."
Allamakee County Auditor and Commissioner of Elections Denise Beyer told the Board that she would need to have a resolution from the Board by Tuesday, May 13 for the August 5 election. The Board agreed to table the matter until that time.
During regular business at the May 6 meeting, the Board discussed the County's agreement to borrow money on behalf of the member townships of the Waukon Area Fire Protection District for the construction of a new fire station in Waukon. Allamakee County Attorney Jill Kistler recommended hiring bond counsel due to the number of legal agreements required and the complexity of sharing the benefit of the interest-free loan that the City of Waukon expects to receive from the USDA for its portion of the construction cost.
"I understand that it's complicated. I want to know who's paying for it," said Supervisor Strub, pointing out that a lot of work has already been done by the County to assist the townships with funding for the project and that a lot of work remains to be done.
Chairman Schellhammer said that the cost of the bond attorney and other administrative costs could be passed on to the townships.He also asked Kistler if it might be less expensive to hire a bond attorney as a consultant, with Kistler doing some of the work, rather than hiring a bond attorney on retainer. Kistler agreed to inquire about that option.
The Board also held a public hearing regarding an amendment to the County's budget for the current fiscal year. Hearing no comments from the public, the Board approved the amendment and the corresponding appropriations. The Board also scheduled another public hearing for Tuesday, May 27 at 9:30 a.m. to further amend the budget to reflect the loan of up to $750,000 for the townships' portion of the new fire station construction project.
In other business, the Board agreed, by way of a coin toss, to hire Monroe Auction Service as the auctioneer for the contents of Makee Manor; Sweeney Auction Service and Monroe Auction Service submitted virtually identical bids for the job earlier this year. The Board also appointed Kim Waters as the permanent County Social Services Coordinator (a formality since Waters has served in that capacity since January) and accepted the resignation of Sarah Peck from her dispatcher/jailer position with the Sheriff's Department and authorized the Sheriff to advertise for a replacement.

Update: During its regular meeting Tuesday, May 13 the Board passed a resolution to schedule an election for the LOSST renewal for August 5 and setting distribution percentages at 40% to the townships, 30% to Secondary Roads and 30% to the Rural Services Fund. Beginning in January, 2015, E911 will be funded out of the General Fund rather than from LOSST revenues.