Hunter
05/14/25
The City of North Liberty could face a shortfall of $1.3 million due to an error in publishing a public notice about a hearing on the fiscal year 2026 budget.
The Press-Citizen reports Iowa law requires cities and municipalities to publish a notice between 10 and 20 days ahead of a public hearing that finalizes the fiscal year budget and sets the residential property tax rate.
City Administrator Ryan Heiar, in a memo to the City Counsel, said staff later discovered the public notice wasn’t published in Johnson County’s newspaper of record because an email drafted earlier in April requesting publication was never sent. As a result, the city most likely will be forced to use Fiscal Year 2025’s tax rates, resulting in the shortfall.
The city has ample reserves to cover the budget gap, but Heiar described the mistake as “substantial.” He and City Clerk Tracy Mulcahey are developing a system that would prevent such errors in the future.
The city has reached out to state representatives Zach Wahls , Amy Neilsen, and the Iowa League of Cities to advocate for a chance to rectify the situation. Heiar said it was a long shot, because new budget laws prevent such exceptions.
Due to the error, North Liberty has set another public budget hearing for May 27th.