Mower County's position as richest of all 87 Minnesota counties has slipped.

No longer is Mower County's unreserved fund balances the state's largest.

It's still high, but not the highest among all Minnesota counties.

Among seven Minnesota counties, who have more in the bank, than their expenditure budgets, Mower County remains one of the top counties, but not atop the list: Pipestone has 131 percent, Big Stone, 132 percent and Mower has 134 percent. However, Blue Earth now holds this infamous distinction at 154 percent.

Since Judi Dutcher, Minnesota state auditor, first pointed out Mower County's status as the county with the highest unreserved fund balance in 1998, it has caused a storm of controversy.

One officials said slipping from No. 1 to No. 2 shows that county commissioners are listening to local citizens to spend some of the reserve monies.

"It shows the beginning of the county board's strategy to cautiously spend-down the reserves," said Craig Oscarson, county coordinator. "This covers the year ending Dec. 31, 2000 and I think the public will see more evidence of this strategy working when the latest audit report is released."

The Mower County commissioners and Oscarson have had an exit interview with the State Auditor's Office crew that audited Mower County's finances for the year ending Dec. 31, 2001. They are awaiting the final report with as much anticipation as other taxpayers.

Here's what the auditor's office found.

Mower County's designated unreserved fund balance was $8,758,097 and its undesignated unreserved fund balance was $23,814,240 at the end of 1999.

That amounted to a total unreserved funds balance of $32,572,337.

Twelve months later, Mower County's designated unreserved fund balance had grown to $15,778,642, but the undesignated unreserved fund balance had fallen to $17,588,295.

That amounted to $33,366,937 or 2.4 percent more than 1999's year-ending total.

Mower County's 2000 current expenditures were $24,816,218

Its reserves amounted to 134.5 percent of its expenditures.

In other words, the county could match its expenses in year 2000 dollar-for-dollar and still have $7.75 million left over.

The auditor office's terminology may be confusing. "Designated unreserved" means money for which government officials have earmarked or designated a specific purpose that meets the office's guidelines for handling public monies.

"Undesignated unreserved" simply means money held in the bank and earning interest for which the local unit of government has no stated purpose except to "save" it.

At a Saturday candidates forum sponsored by the Austin Area Chamber of Commerce, the "stand-pat" rhetoric continued from the incumbent county commissioners.

Most notably, Len Miller, chairman of the board and the incumbent 4th District county commissioner, defended the strategy. "We have been very, very conservative in the way we budget," Miller said.

The county has relied upon the recommendations of a long-range strategic planning initiative begun also in 1998, when the auditor's office report of a large fund balance first surfaced.

On Tuesday, the county commissioners are expected to approve specifications and plans for county fairgrounds improvements as well as bid dates for the projects.

The estimated $2 million in new buildings was, in part, recommended by the long-range strategic planning initiative's citizens.

"This is another example of the county board's strategy to spend down the reserves," said Oscarson.

The county commissioners have held firm to their "slow spend down" strategy and defended it at a public meeting in August, when accountant Darwin Viker of the Larson, Allen, Weishaire & Company, discussed county finances after his review.

In the county's proposed 2003 budget, the finance committee (Ray Tucker, 2nd District, and Len Miller, 4th District) announced the new budget will use $6,303,899 of the county's reserves. O that amount, $3.187 million will be used for "designated" projects that meet the auditor office's guidelines.

This is exactly the same strategy endorsed by Viker and promoted by all five board members to cautiously use the county's reserves for ongoing expenses and to use the reserves in concert with a small tax increase.

As Mower County's status as one of the richest counties in Minnesota -- in terms of reserves -- continues to fall, Oscarson said there are two viewpoints to take.

"Some people will say having more in the bank is better," he said, "and some will say spending it all is the right thing to do."

Lee Bonorden can be contacted at 434-2232 or by e-mail at

lee.bonorden@austindailyherald.com