The estimated 2019 budget is projected to have a levy need of $23,523,218, according to Craig Oscarson, county coordinator. If approved, this would result in a 12.95 percent tax increase.

Nothing was finalized or approved during Tuesday’s regular board session.

However, the Mower County commissioners addressed that its finance committee and staff will need to review the county’s fund balance before making a final recommendation on the proposed 2019 property tax levy on Sept. 25.

Doing so would explore possible ways to reduce the levy impact. Oscarson said one example of a projected use would be to do a one-time funding of the Austin Community Recreation Center project for $50,000 as opposed to adding that item to the property tax levy. Among other suggestions included that $365,000 of wind revenue be reassigned to capital projects budget and to reduce that specific tax levy to zero, which results in higher levy need in the general fund because of the shift, and provide better stability to operational budgets in the general fund.

It was also proposed that the county dip forward into future local option sales tax proceeds and perform an additional $6 million of road and bridge projects, which commits Mower County to the sales tax for eight of the 10 years, as opposed to the current commitment of four of the 10 years.

Since these funds would temporarily reduce county reserves, it could have an impact on interest income and flexibility on future budgets.

“We will need to take a hard look at this,” Oscaron noted. “This is in no way a final recommendation.”

The preliminary expenses was $59,806,708 with non-tax levy revenue hovering at $29,477,150, according to county documents. There was $4,724,669 in assigned and restricted use funding, with $99,300 in budgeted changes to required reserves and $2,180,981 in county program aid.

Causes of budget impact

There were several items that affected the county’s budget increase. The main budget increase was attributed to the adopted compensation study and regular payroll growth. The study itself was estimated to increase the county budget by more than $500,000.

“The actual cost could be determined by Human Resources as well as the net levy impact of normal payroll,” Oscarson said. “If the board desires that detail.”

Mower County is looking to add 2.4 new positions, a GIS intern and adjustments to overtime to accommodate additional staff needs. This was estimated to increase the budget and levy by $239,963. The finance committee and staff proposed to add $100,000 to the reserve contingency budget for possible staff additions subjected to full review of client transportation needs. The recommendation is to task the new county administrator to do a full review of the client transportation needs of the Mower County Sheriff’s Office, the corrections department, and health and human services department to transport clients in a safe manner.

This was based on the request of the sheriff’s office to add one new deputy to assist in high level transports and the concern that the current use of the deputy time detracted from necessary law enforcement functions of the agency, according to Oscarson.

There were several cost shifts such as the state cost shift of $53,197 for the MN Choices Program, which was caused by a legislative change that shifts the percentage of non-federal share of Long Term Services and Supports assessment costs to counties. Another cost shift included $108,000 for guardian services for those with persistent mental health diagnosis from the Adult Mental Health grant to county tax dollars.

According to Oscarson, there was an estimated cost shift and loss of federal funding to children’s mental health residential treatment centers in the amount of $65,000 and a reduction of $21,000 in state child support incentive money as a result of decreased federal funding.