County considers no increase for 2021 levy

The Rock County Commissioners postponed action on a preliminary 2021 tax levy until Sept. 22 after discussions stalled during the Sept. 8 meeting.
County Administrator Kyle Oldre said the state is projecting a budget shortfall due to spending efforts to lessen the coronavirus pandemic impact in the state.
State officials may shift more costs to counties by not allocating all of the promised Local Government Aid.
Rock County is slated to receive $562,744 for 2021, up $425 from this year.
Oldre encouraged commissioners to participate in the upcoming virtual fall policy conferences through the Association of Minnesota Counties to advocate for not shifting more burden to local property owners.
“The more time we can buy, the better off we are going to be,” he said.
County departments indicate they’ll need $150,000 in increased expenditures for employee benefits and salaries and another $150,000 for bond payments.
Commissioners met in a budget planning session Sept. 2 when each department submitted a proposed 2021 budget.
Based on discussions, a 2.14-percent levy increase is recommended for taxes payable 2021. The total levy in this case would be $6,318,000.
At their Sept. 8 meeting, Commissioner Jody Reisch commended each department leader for presenting conservative budgets.
“We always have run a tight budget,” Reisch said. “It would be hard to find any fat.”
Commissioners Gary Overgaard and Stan Williamson discussed the possibility of not increasing the current property tax levy due to the state of the county’s mainly rural farm economy.
Without a significant increase in residential, commercial and industrial construction, ag land bears the brunt of the tax levy increase.
So far in 2020, new construction in the county dropped 34 percent overall from 2019, according to assessor Tom Houselog.
Commercial and industrial new construction is down 83.1 percent from a year ago. Residential properties showed a modest 2.2-percent increase.
“We have to at least raise the possibility (of a zero levy increase),” Overgaard said.
Commissioner Greg Burger said if a modest levy increase is not put in place this year, a future increase may have to be larger in order to keep the budget balanced.
“A zero increase is not feasible,” Burger said.
By statute, counties need to set a preliminary property tax levy by Sept. 30 with a final levy determined in December.
The final levy amount cannot exceed the preliminary levy amount, but it can be lowered.