County preliminary levy set to increase by 5.41 percent

Rock County Commissioners approved a preliminary levy increase of 5.41 percent or an additional $317,500 at their Sept. 24 meeting.
The additional levy, for taxes payable in 2020, will provide $100,000 to the highway department for road and bridge repairs, an additional $82,600 to health and human services, and $142,200 more for the general fund, primarily for scheduled salary increases across all departments.
Commissioners denied a request by the Sheriff’s Office for an additional peace officer and squad car estimated at $100,000.
The county budget committee suggested the levy amount, which doesn’t include recommended lighting and HVAC for the county buildings.
The upgrades  are estimated at $2 million.
“I’ve started looking at some alternative financing,” said county administrator Kyle Oldre. “I think there could be some opportunities for us to address that (in 2020).”
Alternative financial options include a zero interest loan through USDA or borrowing money in 2020 with payments starting in 2021.
The county is anticipating additional production tax income in 2022 from a planned solar farm near Magnolia.
For 2020, the county receives an additional $45,000 in state aid.
For the first time in five years, county revenues in 2018 exceeded expenditures, according to an audit report presented Sept. 24.
Revenues in 2018 were $16.8 million with expenditures of $15.3 million over the same timeframe.
County reserves became depleted in 2014 due to extensive flooding across the county.
Since then commissioners have dedicated money toward rebuilding the county’s financial reserves.
This year commissioners budgeted $79,000 toward reserves, the same amount proposed for reserves in 2020.
The county currently has 4.96 months of reserves in all its funds, according to the audit report. The Minnesota Office of the State Auditor recommends no less than five months.
“We are starting to see some incremental movement to see that corrected,” Oldre said.
Rock County Auditor Treasurer Ashley Kurtz pointed to the general fund exclusively as to a better overall picture of the county’s financial health.
Without the highway department, general fund reserves are at 9.9 months.
“I feel that is a better picture of where we are sitting financially,” she said.
Commissioners will finalize the 2020 levy after their Truth In Taxation hearing scheduled for Dec. 10.