Secondary Roads Update, Routine Operations, Bridge Project, Annual Report to Iowa DOT – Road Use Tax Risk

Secondary Roads Update, Routine Operations, Bridge Project, Annual Report to Iowa DOT – Road Use Tax Risk

 

 

Routine Operations & Bridge Projects

The Secondary Roads department reported the following activity:

• Hauled rock in the Coburg area; spotted rock in the Red Oak, Stanton, and Wales areas.

• Mowed gravel roads and shoulders.

• In the Morton Mills area: cold patched and worked on edge ruts on paved highways throughout the county.

• Conducted equipment and truck maintenance.

Q Avenue Railroad Bridge: The contractor will be driving piles in the south abutment. After the piles are driven, forming of the south abutment is expected to begin, with a possible pour later in the week, weather permitting.

L Avenue Railroad Bridge: The contractor will pour the encasement on the piling on the north pier. The dirt crew is working on the south side of the bridge, building up the road and shaping the berm slope between the pier and abutment. The north pier cap is anticipated to be poured late this week. Dirt hauling to the site will continue all week (weather permitting). Material is being hauled from the Q Avenue site and eventually from Decent Head. Recent heavy rain has affected progress.

 

Secondary Roads Annual Report to Iowa DOT – Road Use Tax Risk

This item received significant attention during and after the meeting and represents a serious financial risk to the county if not resolved promptly.

Each year, Secondary Roads must submit an annual report to the Iowa Department of Transportation (IDOT). The report for the 2025–2026 fiscal year cannot begin in earnest until the year-end financial data is received. As of the meeting, that year-end information had still not been provided. Completion of the report typically requires one and a half to two months of work.

This is the first year the county is using its new software system. Officials expect some hiccups in the download and reconciliation process. Once data is extracted from the software, staff must carefully review, correct, and balance every figure before the report can be submitted. That verification step alone is time-consuming.

Deadline and consequence: The annual report must be submitted to the Iowa DOT by September 15. Failure to meet the deadline results in a violation. Depending on how late the report is filed, IDOT can withhold road use tax payments to the county. Montgomery County receives approximately $200,000 to $400,000-plus each month in road use tax funds. Withholding of these payments would be a significant financial blow the county cannot afford.

Chair Schmidt emphasized that this situation has not occurred in prior years. After the formal meeting, she convened a closed discussion lasting more than an hour with Supervisor Bryant Amos, Auditor Jill Ozuna, Treasurer’s office representative Jackie Porter, and County Engineer Karen. The discussion was described as intense; “cards were laid on the table.”

Engineer Karen’s ability to complete the report is limited until the necessary year-end data is received from the treasurer’s office. Some preparatory work can proceed, but key components are dependent on that information. Help has already been brought in: an individual from another county worked with the treasurer’s office Friday, Saturday, and Sunday. Auditor Jill Ozuna has also been assisting with reconciliation for the past couple of months.

Chair Schmidt stated she feels “good, not great” about the status after the meeting. She expressed confidence the issue will be resolved by next week and assured that mechanisms will be put in place to prevent a recurrence. She described the potential impact as multi-million-dollar in scale if payments were withheld over an extended period.