The primary source of funding for department is road use tax. These taxes are generated from public federal and state user fees on fuel, vehicle registration, driver licenses and other user fees. These monies are distributed for use on Federal, State, and Park Highway systems by statutory formulas. These road use taxes account for about 70% of the secondary roads budget.

Local sources of revenue such as property tax from the Rural and General Levy are necessary to leverage road use tax dollars distributed by the State. Local levies account for approximately 26% of the secondary roads budget. Local option sales tax accounts for another 2% of secondary road revenues. Remaining monies come from permit fees and salvage items sold.

Other Funds

The County Engineer and Board of Supervisors are pressed to find other sources of funds. Some of these funds are

  • Federal Bridge Replacement monies,
  • Revitalize Iowa Sound Economy (RISE) grants,
  • miscellaneous grants,
  • and permit fees.

These funds can only be spent on the County system, unless the Board of Supervisors has entered into an agreement with a city or the Iowa Department of Transportation.