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County levy to rise 2.15 percent

By
Mavis Fodness

Rock County Commissioners are proposing a 2.15-percent levy increase for taxes payable in 2021.
The proposed 2021 increase garners an additional $127,000 for a total levy of $6.3 million, or about half the county’s annual budget.
Included in the 2021 budget is $79,000 earmarked for reserves. The amount would be the seventh straight year commissioners added to the reserve fund.
“You’ve done a really great job allocating money to the reserves — you’ve resisted the temptation to spend it,” County Administrator Kyle Oldre said at the Sept. 22 commissioners’ meeting.
Currently the county can operate for more than 10 months if no more money is added to the general fund for expenses, according to the 2019 audit report. State auditors recommend counties keep at least a five-month reserve.
However, when combined with the remaining funds — public works, family services and land management — the general fund reserves fall to 3.75 months. The decline is mainly driven by the completion of road and bridge projects.
“It really is a timing game with reserves,” said auditor-treasurer Ashley Kurtz.
Throughout the year the highway department receives state and federal funds for road and bridge improvements, causing wide fluctuations in the yearly budget.
The highway department was negative one month on reserves, based on the 2019 audit.
Earlier this month, commissioners considered a zero percent levy increase for 2021, primarily due to negative financial pressures in area farm budgets and potentially lower farm land prices.
However, recent local land sales show cropland selling above assessed market values.
“What is happening now is not reflected in ag land sales,” Oldre said.
The additional $127,000 generated by the 2021 levy is allocated toward scheduled salary increases and $79,000 toward reserves.
Commissioner Greg Burger said the continued increase in reserves could cushion any ramifications from the state’s current projected budget shortfall of $2 million for the next three years.
“If the state cuts back on allocations, we will dip into our reserves,” he said.
Currently Rock County is slated to receive $562,744 in county state aid in 2021, an increase of $425 from this year.
 
Rock County ranks lowest in state for tax rate
Even with the upcoming 2.15-percent levy increase, Rock County continues its lowest tax rate ranking among Minnesota’s counties.
Rock County’s current tax rate, a reflection on what residents pay in county property taxes, is 22.46 percent. Dakota County is second to the bottom in the 2020 tax rate at 23.98 percent.
The highest rate is Kanabec County at 91.73 percent — almost four times more in taxes than similar homestead property in Rock County.
“Looking at our peer group in the state, we are considerably under,” said Commissioner Greg Burger.
Murray County’s tax rate is at 27.28 percent, Nobles County is at 34.5 percent, and Pipestone County is at 36.17 percent.
 
Looking forward to 2021
Commissioners also looked to 2021 to regroup and continue efforts to increase industrial development within the county and diversify the local tax base.
“COVID has kind of put a damper on our economic development board,” said Commissioner Jody Reisch.
Commissioners received updates on the upcoming industrial projects — Walleye Wind Farm and Elk Creek Solar Farm — coming online in 2021.
Recently opened for production — Premium Minnesota Pork — will add to property tax coffers next near.
“Hopefully some of those things will help us diversify our portfolio,” Oldre said.
Commissioners will finalize the levy in December after the Truth in Taxation hearing. The final levy percentage can be lower than 2.15 percent, but not higher.

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