Iowa Gov. Kim Reynolds has directed Madison County Treasurer Kylee Barber to deliver delayed property-tax statements by Tuesday, October 20, and provide a written report on the actions taken.
In a letter dated October 16, Reynolds cited Iowa Code 66.3 concerning the removal of public officers and her authority to direct the attorney general to file a removal petition.
The governor said she was not directing a removal petition to be filed at this time but emphasized that the situation required immediate action.
The letter also acknowledged that Barber inherited significant challenges that were not of her own making, while stating that the situation could not continue.
Earlham working to arrange short-term financing
Reynolds’ letter states that the City of Earlham secured a $500,000 line of credit to maintain operations amid the delay in property-tax revenue. In an email to The Madison Report today, the city said it is working with its attorney and bank to put a warrant or short-term loan in place. The arrangement will require a City Council resolution and completion of the necessary paperwork before the city can proceed. The city said it is working through the process to ensure it can continue operating.
Earlham Mayor Jeff Lillie raised concerns about the city’s finances during public comment at the Board of Supervisors meeting Tuesday. He told the Board that the city was preparing to take out a loan to cover expenses and that he had directed city staff to limit spending to essential needs.
A major property-tax distribution from the county typically occurs around October 15. Because property-tax statements had been delayed, the amount Earlham would receive in the upcoming distribution was not yet known when Lillie spoke. Since then, Treasurer Barber has informed Earlham and other local entities that they should expect an apportionment within the next few days.
Lillie also addressed communication with county officials. He said the Treasurer notified taxable entities on September 15 that September payments would not be made and that updates would be provided each Wednesday. At Tuesday’s meeting, Lillie said the city had not received further updates.
The mayor said the city was concerned about the additional costs associated with borrowing and the potential effects of restricting spending on municipal services.
Separate payment discrepancy
Lillie also raised a separate issue involving approximately $42,000 in payments he said were owed to Earlham for fiscal year 2026.
According to Lillie, the city had been told the discrepancy could not be corrected until the property-tax statements were issued. He asked for an explanation of how the discrepancy occurred, what was needed to correct it, and when the city could expect to receive the funds.
The current status of the discrepancy has not been independently confirmed.
A request for comment was sent to Treasurer Barber, but no response was received before publication. This article will be updated if she provides a subsequent comment.
Auditor Michele Brant’s and Treasurer Kylee Barber’s updates at the Tuesday October 13 Board of Supervisors meeting can be viewed here.
