County plans levy rollback
Published 12:00 am Friday, December 3, 1999
The largest single levy decrease in the history of Mower County is being proposed.
Friday, December 03, 1999
The largest single levy decrease in the history of Mower County is being proposed.
At Thursday’s Truth In Taxation hearing, the county board of commmissioners, revealed a proposed year 2000 property tax levy decrease of $1,149,273 or 13.8 percent over 1999.
That’s $7,181,400 compared to the $8,330,763 levy originally proposed and that figure was 1.26 percent less than 1999’s.
The proposed expenditures budget for year 2000 is $32,107,761 compared to 1999’s actual expenditures of $26,324,657.
The levy and budget figures for year 2000 were the recommendations of the county board’s budget committee and include a proposed solid waste service charge of $216,530 or the same as this year.
The general fund will see a 21 percent decline in levy funds, $2,840,511 compared to $3,613,816; the highway department levy drops 4 percent, $1,311,555 compared to $1,366,539; the human services levy drops 11 percent, $2,407,674 compared to $2,710,674; and the building fund use of the levy also drops by 4 percent, $459,743 compared to $479,017.
How can the county commmissioners propose a double-digit property tax levy decrease? Answer: By using some of the estimated $35 million in reserves accumulated by the county.
In all, $4.5 million in reserves will be used.
The largest beneficiary of reserve funds is the building fund.
The building fund budget shows an ambitious spending program: the proposed new multipurpose building at the fairgrounds is slated for $4.35 million, Health and Human Services – Veterans Service building gets $75,000 for new carpeting; security systems get $50,000; remodeling the auditor’s office gets $50,000; Health and Human Services – Veterans Services parking lot improvements get $50,000; and courthouse sidewalk repairs will receive $5,000. Another $75,000 in reserves goes to miscellaneous needs.
Reserves and transfers from the general fund to the building fund total $2,387,348, while the tax levy will produce $592,652 for the building fund.
The county is expecting revenues of $1,675,000 from other sources to help fund the new multipurpose building.
The county’s TNT hearing comes after the city approved a "same as last year" property tax levy Monday night and the Austin Independent School District proposed a 15.5 percent levy decrease for year 2000. The city and the school district contribute the smallest shares of the property tax "pie," while the county contributes the most, which makes Thursday night’s announcement a "Christmas present" for property owners in the county.
"There’s never been a larger decrease than this in the county’s history said," Richard P. Cummings, 1st District commissioner and chairman of the board. "Only three years ago, we had a small increase."
The proposed budget and levy figures will be formally acted upon Dec. 14, when the commissioners meet in regular session. They can be lowered, but not increased, according to Minnesota law.
While some property owners may be seeing increases on their early property tax estimates sent out prior to the TNT hearing, they can expect some adjustment when the actual statements are mailed.
Any other complaints must go before the Mower County Board of Equalization which meets in the spring of year 2000.
"We have more interest income coming in, so the budget committee feels we can use some reserves," said Craig Oscarson, county coordinator.
Another contributing factor is the $170,000 rebate coming to the county from its insurance trust.
During the question-and-answer session, the county’s growing reserves attracted many questions, but no more than those asked by Malcolm McDonald, the former director of special services for the Austin Independent School District, when the district spent itself into red ink. Now retired, McDonald has become an advocate that the county board spend its reserves and spend as much of them as possible as quickly as possible.
At Thursday’s TNT hearing, he continued that demand by repeatedly asking "What is the intent of the board to do something about the excess fund balances?"
Cummings said, "It is the intent of the board to use some of that reserve." Ray Tucker, 2nd District commissioner, "I think we’re going in the right direction with a 13.8 percent decrease in the levy."
McDonald didn’t let up.
"We have been over-taxed in Mower County for 15 years?" he said.
Len Miller, 4th District commissioner, said the board was waiting for recommendations concerning the excess fund balance from its long-range strategic planning committee. "Once that piece of the puzzle is done, we will consider their recommendations and do what we have to do one step at a time."
"That’s not fast enough," McDonald retorted.
Dave Hillier, 3rd District commissioner, said, "I think we’re making a step in the right direction tonight."
Ruth Harris, Mower County Treasurer, told the TNT hearing audience, state statutes direct what investments of the county’s monies she can make and the majority are in federal government bonds and certificates of deposit earning between 5-6 percent interest.