WAVERLY - The citizens group that requested a reaudit of Waverly finances is protesting portions of the city's budget to the state of Iowa, questioning city government's expenditures and its property tax levy for the upcoming fiscal year.

It is one of only three such budget protests in the state this year.

Waverly Citizens United is protesting the city's budget for fiscal 2009-10, which begins July 1. Deb Turnball, president of the grassroots organization, filed a petition with 24 signatures with the Bremer County Auditor's Office on March 24, according to county auditor Lynn Brase.

Citizens raised concerns about budget items they feel place an "unnecessary and unreasonable burden on taxpayers" given the current economic climate and ongoing flood recovery, according to the petition.

"We already sent the appeal on to the state," Brase said.

The State Appeals Board will review the protest and hold a hearing on the matter at 10 a.m. on April 10 in Waverly. The three-member board consists of representatives from the state's department of management and treasurer and auditor offices.

Waverly's city offices were scheduled to be closed on April 10, Good Friday, but council chambers will be opened for the hearing, city staff said. The budget appeal hearing will be open to the public.

According to petition documents filed with the county auditor, protestors' objections include rate increases for water, sewer and solid waste funds and raises for nonunion employees. Petitioners question the use of local option sales tax dollars for seal coating, work on Second Avenue N.W. and storm sewers, rather than for flood recovery and mitigation.

Others concerns are related to filling vacant police officer positions and related expenses and the creation of a reserve officer program. Petitioners also questioned the legality of money transfers from Waverly Light and Power to Wartburg College and takes issue with city payments to the Wartburg-city wellness center known as "The W" and other fund transfers.

Jack Bachhuber, Waverly's director of finance, said that the budget appeal hearing is within citizens' rights. He also noted that the proposed budget, approved 6-1 by Waverly council members on March 9, was the result of a months-long process that allowed for public input.

"As far as the city's concerned, everything was done legally," Bachhuber said.

Bachhuber also said that the budget for 2009-10 includes a lower tax levy rate than in the past and a reduction in property tax collections. Waverly expects to collect about $4.24 million in fiscal 2009-10, down from almost $4.26 million.

At one point during the budget approval process, council members put off voting on the matter, asking city staff to hold the line on taxes and to make additional cuts. City Administrator Dick Crayne said the budget draft already reflected reductions but he made an additional $96,000 in reductions and the council approved the budget.

The 2009-10 budget, however, still includes a slight increase for the average homeowner.

In December, Waverly Citizens United asked that the state review financial transactions and the condition of Waverly's funds. That petition was signed by 66 people.

According to the group's Web site, Waverly Citizens United exists to provide input to local governing bodies.

Bachhuber said he expects to hear an update on the reaudit issue by mid- to late April.

Brase said the state will deal with the budget appeal matter quickly so tax levies can be set.

"This is something they don't want hanging out there," the county auditor said.

Andy Nielsen, deputy state auditor, said during budget appeal hearings, both sides typically are given the chance to present their case to the board. It would be extremely rare for the board to make a decision immediately after the hearing, Nielsen added.

Nielsen said this year budget appeal hearings also are planned for the city of Riverdale and Ringgold County.

Contact Karen Heinselman at (319) 291-1581 or karen.heinselman@wcfcourier.com.