Every year, counties, cities and schools in Minnesota must hold hearings in order to discuss changes to their levies and finances, and allow the public to ask questions or provide feedback. McLeod County's Truth-in-Taxation hearing held Dec. 1 looked different than usual due to COVID-19.
Board members discussed the county's proposed 5% levy increase (from $24.54 million to $25.77 million) over a Zoom call. Some, along with county staff and other elected officials, were spread around the McLeod County Agribition Building while others called in. Members of the public could approach a digital station to ask questions. The meeting specifically addressed the portion of property taxes landowners pay to the county. City, school and township expenses were not discussed.
McLeod County Auditor-Treasurer Connie Kurtzweg said the majority of the levy goes to payroll, health care and technology and building repairs. Payroll accounted for 45% of total expenditures this past year, and there has been a 3% cost of living increase. Health care expense increased 9% for 2021. Services the county is mandated by the state to provide — such as inpatient adult mental health care and out-of-home placement for children — also make up a significant portion of the budget.
Kurtzweg said larger increases to the levy the past few years could have been avoided.
A look at how the McLeod County levy changed over the past 10 years shows:
- 2009: the levy increased 5%
- 2010: the levy increased 2.95%
- 2011: the levy decreased 2.93%
- 2012: no change
- 2013: no change
- 2014: no change
- 2015: no change
- 2016: the levy increased 2.73%
- 2017: the levy increased 5%
- 2018: the levy increased 7.1%
- 2019: the levy increased 8.5%
"If we would have just kept a small increase each year, then we wouldn't have run into (these) higher increases," Kurtzweg said. "The reasoning behind this increase of 5% for the 2021 levy is to just get us up so we have a balanced budget."
According to the Minnesota Department of Revenue, the average preliminary levy increase in Minnesota counties is 2.9%. Kurtzweg said McLeod County ranks 38 of 87 Minnesota counties when it comes to the size of the levy compared to 2019 populations.
CARES Act funding has helped to keep county expenses incurred due to COVID-19 under control this year, but most went to help businesses, community partners and schools in the county.
"As I watched how other counties approached this, some of them absorbed quite a bit into their own expenses to try and reduce the levy," Board Member Paul Wright said. "That's something we take care of year by year. Our approach on this was to push those dollars out into the community. ... I think that's what those stimulus dollars were intended for."
The county has also sought to evaluate positions held by outgoing employees, and make cuts where possible in order to save money. Officials believe moving county offices to the upcoming Government Center in the old Jungclaus building will reduce maintenance and utility costs spread out among other buildings.
The County has just short of $12 million in reserves. A look at projected expenses next year shows about $1.77 million each month. That means the county has about 6.75 months of reserves.
"We want to be at six months in reserves for the following year's expenditures," Kurtzweg said.
The road and bridge fund has eight months of expenses in reserve, the solid waste fund has 11 months of expenses in reserve, and the social services fund has seven months of expenses in reserve.
Board members will take a final look at the preliminary levy and any changes to the county budget on Dec. 15. A decision on the final levy will likely be made that day. The final levy can decrease, but not increase.
