Benton levy falls 3.3% with effort to address tax rates

Sept. 30--FOLEY -- Benton County property owners could see a reduction in the county portion of their property taxes next year after the county board reduced the tax levy.

The county board on Tuesday approved a preliminary 2015 levy of $19.2 million, 3.3 percent smaller than this year.

The move is part of an ongoing effort by Benton County commissioners to shrink the county's tax rate, which is considerably higher than surrounding counties. The tax rate is expected to drop about 7 percent.

"It's been a goal for the board for a number of years," board Chairman Jim McMahon said. "We understand the predicament we're in as far as being a high tax rate county, and we're doing everything we can to reduce that."

Counties had a Tuesday deadline to pass a preliminary budget and levy. They can reduce the amount when they pass a final budget and levy in December, but not increase it.

Benton County has increased its property tax levy one time in the last six years, a 1.9 percent increase in 2013. Every other year since 2010, the board has kept the levy the same or decreased it, County Administrator Monty Headley said.

"I think our board was certainly responding to the recession and the desire they have to try and bring our tax rate down, make our tax rate more competitive with our neighbors and reduce the burden on our property owners," Headley said.

Benton County commissioners approved a proposed budget that includes $45.1 million in spending, a decrease of 7.5 percent from this year.

The county was able to reduce the levy mainly by using reserves to cover the final three years of payments on three older bonds sales that pay for the jail, the public works building and Bend in the River Park near Rice. Those payments total $2.2 million over three years, Headley said.

The county had enough in reserve to cover more than eight months of expenditures, more than its standard of six months, Headley said.

The budget includes funding for two new positions in human services, which has seen increased caseloads. Two part-time positions in that department will be moved to full time.

The budget also adds about $57,000 to the highway department for more patching and sealcoating of roads and repairing highway equipment.

The county took formal bids for employee health insurance for next year, which resulted in an average increase of 8 percent in health insurance premiums. That amount will be shared equally between the employees and the county, at a cost of $119,000.

Other spending increases in the budget include $119,000 to cope with an increase in children placed in care outside of the home, such as foster care or juvenile detention.

An additional $298,000 was needed to pay the debt service on bonds issued to pay for the County Road 3 improvements and new roundabouts.

Benton officials are expecting an additional $307,000 in revenue from boarding inmates in the county jail from the state and other counties, including Stearns, Headley said.

County officials also anticipate to save payroll costs due to retirements and new employees starting at a lower wage.

Follow Kirsti Marohn on Twitter @kirstimarohn or reach her by phone at 255-8746.

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