Blue Earth County approves nearly 8 percent preliminary tax levy hike

Sept. 28--MANKATO -- Blue Earth County commissioners have approved a preliminary property tax levy hike of nearly 8 percent, spurred by changes to mental health care payments, health insurance costs and new hires.

The proposed levy approved during a board meeting Tuesday is $32,815,184, an increase from $30,387,243 this year.

The board also approved a preliminary budget of $113,429,965, an increase from $99,911,191 this year.

All of the commissioners except for Drew Campbell agreed on the figures. Campbell said the levy was the largest proposed in his seven years on the board.

"By allowing this to go this high sends the wrong message," he said, proposing a $600,000 reduction in the proposed levy.

Commissioners rejected his amendment, saying there is plenty of time for fine-tuning the final amount between now and December.

By state law, the preliminary levies and budgets set by local governments in September establish the ceiling for overall property tax collections and spending for the next year. The board can still trim the figures as it settles on a final budget.

County Administrator Bob Meyer said factors behind the increase include a cost shift approved by the Legislature this year that shifted some costs for mental health care onto counties, a 15 percent increase in employee health insurance premiums and increased costs in collective-bargaining agreements.

Another reason is the addition of four positions. Three are in human services, two of which are workers for MnSure, the state health care exchange, and the other is a licensing position for foster homes and day cares. The fourth position is the addition of a legal assistant in the County Attorney's Office to address some of the additional workload.

Meyer said the county still will use reserves to cover some shortfalls even with the additional levy. The budget includes $5 million to begin the reconstruction of the government center parking ramp.

"That's a big-ticket item that would come out of reserves," Meyer said.

The county also is advancing $6.6 million of road money that will ultimately be paid back through the local option sales tax. The county is using reserves to speed up some of the road projects and then build the reserves with the sales tax.

Commissioners set a public meeting on the final levy and budget for 6 p.m. Dec. 13 in the historic courthouse boardroom, 204 South 5th St. The meeting will include a budget presentation and opportunity for public comment.

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