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Reynolds signs bill requiring more steps in local governments’ budget process


Iowa Gov. Kim Reynolds on Thursday signed a bill that that adds steps to local governments’ budget-setting process.

Under Senate File 634, city and county governments will be required to hold an additional public hearing if revenue raised from property taxes exceeds what is collected in the current budget year. 

The bill provides “more public input and helping increase awareness and transparency to the budgeting process and Iowa taxpayers,” Reynolds is quoted as saying in a news release.

The public hearing on the property tax rate will be a new step in the process. In addition, local governments will be required to publish notices about the public hearing and property tax rate proposal on their websites and social media platforms.

After the local jurisdictions hold the public hearing on the property tax rate, a second public hearing must be held on budget, something cities and counties now do.

The changes will go into effect for the budget year that begins July 1, 2020.

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