LOST revenue agreement discussed

Hawarden city administrator Mike DeBruin and the city council discussed an agreement to share funds generated from the local option sales tax at the Feb. 10 meeting.

HAWARDEN—The Hawarden City Council and the Hawarden Regional Hospital Board have reached an agreement regarding a split of local option sales tax revenue.

The city has sought a share of these tax dollars to help fund such city projects as street work. The hospital has used LOST dollars to purchase new equipment, among other hospital improvements.

The local option sales tax was implemented with voter approval in August 1995, with funds raised to go toward the hospital.

Revenue raised through the tax has increased through the years, from an initial $133,000 to more than $400,000 last fiscal year.

Through multiple meetings, the city and the hospital have presented to each other different plans to eventually reach a 50/50 share of the funds.

At the Feb. 10 meeting, Hawarden city administrator Mike DeBruin shared the proposed agreement reached with the hospital board.

According to the proposal, starting fiscal year 2022, the city would receive 25 percent of the LOST revenue. This level of funding would be the same the following fiscal year, and after that, it would increase by 5 percent each year until 2027, when the split would be even.

“They also asked to have a review in January 2024, January 2026 with two hospital board members and two council members who will sit down and talk about how it’s going on either side,” DeBruin said.

He added that an attorney will draft a legal document laying out the agreement that the city council could then vote on.