A number of state shifts are driving up the 2015 Mower County budget.

The county board unanimously approved a maximum 7 percent levy increase Tuesday for 2015, which would increase the levy by about $1.2 million to a total of about $18.6 million.

“We’re going to do our best to get it down from 7,” Commissioner Jerry Reinartz said.

If the county granted all requests from department heads and outside agencies, a 10.6 percent levy increase would have been required.

However, the finance committee of Reinartz and Commissioner Tony Bennett whittled down department requests and are recommending the county freeze funding to outside agencies and not give money to new outside agencies.

Bennett stated the 7 percent increase is not artificially high, so it may be hard to come down much further.

A year ago, Reinartz and Bennett voted against the county’s 1 percent increase for 2014, arguing the board could have kept the levy flat. Planning for 2015 is much different, as Austin residents could see increases from all directions. Along with the county’s preliminary 7 percent increase, the city of Austin’s max levy is about 5 percent and Austin Public Schools’ is about 5.5 percent.

“It’s a bad year,” Reinartz said.

Driving forces

Last year, increasing ag values meant farmers felt much of the tax changes while residential saw their taxes decrease. With ag land making up about 60 percent of the county levy, County Coordinator Craig Oscarson said farmers could again notice significant changes on their tax statements.

State shifts accounted for much of the increased budget need. Though the state actually increased county program aid from $206 million to $209 million, the formula for distributing that aid means that Mower County will get $323,000 less. Oscarson said several other agriculture counties, like Freeborn, also saw aid reductions. County program aid is based on ability to pay, and Oscarson said the increases in ag land values in recent years shifted the aid to metro counties.

“It’s a shift,” Oscarson told the board. “The problem is there’s winners and losers with that formula.”

A new policy on county burials accounted for a $25,200 budget increase.

The state reduced its Children’s Mental Health grant by $64,400, and the state is no longer allowing the grant to be used to reimburse some salaries.

Another state change is in placements at St. Peter, which mean one resident will cost an additional $76,400 for a placement.

The county is hiring for three part-time employees in the jail, Health and Human Services and another in the assessor’s office, and they’ll make up $40,000 in budget changes.

The Mower County Fair Board requested a four season building be built sooner than planned, but county officials say that’s unlikely to be approved.

Reserves

The county is also in its third year of using a total of $1.5 million in reserves for tax relief. The board will use $300,000 in 2015 — $100,000 less than 2014.

But commissioners are leery of using additional reserves, since they’ve spent them down from 11 months of operating costs about a year ago to nine months worth of operating costs.

“I think we’re coming to the end of spending down the reserves,” Bennett said.

The finance committee recommended denying a request for $100,000 in additional bituminous overlay funds, but other commissioners argued some of that may need to be reinstated.

Commissioner Tim Gabrielson said he’s not happy with some of the condition of the county roads and voiced concern with spending down the reserves.

“I don’t like seeing it this high, either,” Gabrielson said of the levy. “It seems like we’re kicking the can down the road.”

Oscarson noted counties need more money for highway funding, but said it looks doubtful that either governor candidate — DFL incumbent Mark Dayton or Republican challenger Jeff Johnson — will increase the gas tax.

The truth in taxation meeting will be at 6 p.m., Thursday, Dec. 11 in the board room in the basement of the Mower County Government Center.

Agricultural property may be at the center of the county’s levy discussions again this year.

Levy breakdown

City of Austin

Proposal: 4.98 percent increase.

Increase: $4,120,000 to $4,325,000, or about a $205,000 increase.

Truth in taxation: Dec. 2, most likely after 6 p.m., City Council Chambers inside Austin City Hall

Mower County

Proposal: 7 percent levy increase

Increase: $17,396,944 to $18,614,730, or about a $1,217,786 increase

Truth in taxation: 6 p.m. on Dec. 11 in the board room in the basement of the Mower County Government Center.

Austin Public Schools

Proposal: 5.55 percent levy increase

Increase: $6,515,498 to $6,877,173, or about a $361,675 increase.

Truth in taxation: 6 p.m. Dec. 8 in the council chambers at Austin City Hall.