County can move forward with local option sales tax election

Jul 09, 2023

Waterloo residents vote at the Black Hawk County Courthouse in 2016.

WATERLOO — The process of holding a special election to continue the distribution of the local sales tax dollars is now in Black Hawk County’s hands.

The Waterloo City Council on Monday unanimously approved a change in how its local option sales and service taxes will be used if a majority of voters agree in the referendum on Nov. 7, which is the general election date.

Iowa has a state sales tax of 6% and allows local governments to collect a local option sales tax of up to 1%.

According to Iowa Code, 75% of that 1% is determined by each jurisdiction’s share of population in the county. The remaining 25% is determined by how much property tax was levied by each jurisdiction between 1982 to 1985.

With no discussion, the council decided instead of 100% of LOSST revenue going toward road maintenance, 20% will now be used for property tax relief and 80% will be for road maintenance. The only person to comment was resident David Dreyer.

“I’m opposed to taking it out of the street repair fund,” he said. “We all know, the streets are crap. A lot of them anyway.”

Since Waterloo represents over 50% of the county’s population, it was the government entity that had to initiate the referendum. Every city, as well as the county, has its own language on how the sales taxes are distributed.

The current LOSST sunsets – or expires – at the end of 2025. If more than 50% of voters approve continuing the sales tax, it would go into effect on Jan. 1, 2026. The contiguous cities of Waterloo, Cedar Falls, Hudson, Evansdale, Raymond and Elk Run Heights vote as a unit. If all cities approved their individual LOSST ballot item except Evansdale, for example, that city would still have to collect the taxes because a majority of the contiguous cities voted for the measure.

Dunkerton, La Porte City, Gilbertville and the unincorporated areas of the county are considered noncontiguous – meaning the cities don’t touch each other due to boundary lines – and they decide their own fate.

The parts of Jesup and Janesville that are located in Black Hawk County will not have a LOSST ballot measure. County Auditor Grant Veeder said those cities took an action to not have a sunset and vote as a singular unit, rather than in both of the counties they occupy.

Since Waterloo initiated a LOSST ballot measure, the Black Hawk County Board of Supervisors now has to formally set Nov. 7 as the election date. That is scheduled to happen at its meeting next Tuesday.

The county, along with each city, has until Sept. 1 to submit their ballot language to the county auditor. The use of sunsets, which are not required for LOSST, can also be discussed. In fact, most jurisdictions utilizing the revenue don’t have sunsets.

Supervisors Chris Schwartz and Dan Trelka said at Tuesday’s board meeting that they don’t know if the county needs a sunset clause.

The board also briefly discussed the option of increasing the amount of sales tax revenue allotted to county road and bridge construction. Currently, 50% of LOSST goes toward property tax relief on the county portion of taxes with the other half going to county roads and bridges. Schwartz said he would support 60% of the revenue going toward road maintenance.

“It’s a point of pride to drive around on our roads,” he said. “You can tell (when you’ve entered the county) because the roads are so much better.”

County Engineer Catherine Nicholas gave a short presentation on the costs of construction and what a move to 60% could do for the roads.

A 10 point increase would give the county an additional $375,000 for roads and bridges, pave one to two more miles of road, replace half a bridge, help buy a motor grader or do more preventive maintenance.

She said roadway construction costs increased 28% in the last 10 years while motor graders – which help flatten surfaces during grading projects – have increased 45% and rocks have increased 41%.

“We’re spending $200,000 more than we were 10 years ago just on mile rock,” she said.

Currently, she said many roads and bridges are in “excellent to good condition” but conditions will deteriorate as time goes on.

The county has designated 50% to property tax relief and 50% to county roads since 2008. From 1991 to 2008, 100% was used for property tax relief. The LOSST was implemented in 1991.

The Board of Supervisors on Tuesday also approved:

A contract between the county and P

ruction of Viking Road.

Man's best friend may be becoming man's most expensive pet. Inflation has squeezed American wallets over the past year, with pet owners paying even more to care for their beloved companions. The cost of pets and related products rose 10.6% from May 2022 to 2023—over twice the inflation rate for general U.S. goods and services, per the Bureau of Labor Statistics.

This increase has affected 86.9 million U.S. households that care for an estimated 145.9 million animals, according to the American Pet Products Association. eTailPet examined the cause of pet expenditure inflation and how pet owners are dealing with the rising cost.

The COVID-19 pandemic spurred many people to take on the joys of pet ownership. The American Society for the Prevention of Cruelty to Animals found that about 23 million households—1 in 5—added dogs or cats to their families between March 2020 and May 2021.

Many factors contributed to the rise in pet health care costs, but one less apparent reason lies in the clinics, whose capacities maxed out during the pandemic. The Associated Press reported visits rose 4.5% in 2020 and another 6.5% in 2021, citing VetSuccess statistics, while new protocols increased costs and decreased caregiver efficiency. As burned-out workers quit, clinic owners had to raise wages to staff their facilities, passing much of the costs to patients.

Consolidation in the veterinary industry may also be contributing to higher prices. Freakonomics reported that private equity firms have been buying vet clinics across the country, and some employees at corporate-owned clinics have stated their companies have raised prices three times in 18 months.

While inflation is slowing—in June, the year-over-year increase for the consumer price index was 3% compared to 4% in May, according to the BLS—pet owners are still feeling the pressure. Pet food has increased 12.1% year-over-year, while pet supplies have increased 4.2% year-over-year.

While prices of the total pet category have risen 10.6% year-over-year, certain elements of this category are driving higher prices. Pet supplies and accessories are up by 5.7%, which is more in line with other necessities. However, pet food prices have risen by 13.8%, partly because pet food manufacturers still haven't been able to expand their production enough to meet consumer demand.

In turn, manufacturer demand on ingredients and packaging raises the cost of making pet food, some of which gets passed on to consumers, the Star Tribune in Minnesota reported.

In response, owners have tried to look at less expensive options. Shelley DiGiovanni of Egg Harbor Township, New Jersey, recently switched dog food brands. The stay-at-home parent of two children under 2 and two dogs ages 8 and 15 saw the price of her dog food—30 pounds every three weeks—climb a few dollars at every shipment. It ultimately cost $20 more per order, "with no end to the rise in sight," said DiGiovanni.

Pet services are also up 5.6%, leaving pet owners, including paralegal Whitney Freemesser of Irondequoit, New York, to spend more. Freemesser now pays a sticker price 84% higher ($29.27) than in December 2020 for trimming her cat Penelope's claws every six weeks.

Demand for pet goods and services soared commensurately during the pandemic, which put pressure on prices in all areas of pet care—especially veterinarian care. Prices for veterinarian care have risen 19.2% from May 2021 to May 2023, according to pet industry expert John Gibbons, which has pushed owners to get creative about their pet's health care without compromising quality.

Charlotte Jackson of Rochester, Michigan, follows her pet allergist's advice and goes to a regular veterinarian for her pet cat Abby's tests for a less expensive bill. Jackson can also email her allergist with questions and photos between regular appointments, which saves her money on follow-up appointments.

A rise in pet adoptions fueled a jump in spending on pet care. Nearly 1 in 5 households adopted a dog or cat during the first year of the pandemic, according to the ASPCA, as those struggling with loneliness during lockdowns looked to pets for companionship.

These new pet owners have added to the rising demand for goods and services, but owners have benefitted in return. Those who've welcomed pets into their families say it's helped them with their mental health and given them a sense of purpose, according to a study led by the University of the West of Scotland.

These new pet owners spent lavishly on their new furry friends, according to a Washington Post article. Pet parents spend on services such as pet daycare, boarding, and training to help with separation issues pets didn't have when their owners worked from home.

The APPA said that pet spending won't slow down anytime soon, anticipating a nearly 5% increase to $143.6 billion in 2023. Some pet owners choose to care for their pets first because of the companionship they provide. An April 2023 survey by Ally Consumer Research found that 53% of respondents would forgo a purchase to care for their pet's needs.

"I give up a lot to have my pets, before and in this present economic landscape," Andy Karol of Chicago said. Karol owns cats and recently bought a horse. "I don't go out to dinner much at all, don't take regular vacations, limit social outings, watch what I buy and where I shop."

While Karol is no stranger to the expenses a horse can have, she plans to invest in higher-quality items for him rather than continually replacing cheaper items. "Overall, I feel the effects of being nickeled and dimed more than ever now and want to know my costs more upfront," Karol said.

Story editing by Carren Jao. Copy editing by Kristen Wegrzyn.

This story originally appeared on eTailPet and was produced and distributed in partnership with Stacker Studio.

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