Co. Line 12-30-24
The County Line
By Warren Strandell
Polk County Commissioner, Dist. 2
With their budgets finalized and approved, local governments are about to enter the new year. So, do ever wonder about where your property tax dollars go in, just what they are used for? On that subject, I’ll try to tell you a few things — in as a simple way as I can — about how Polk County will use the property tax money that it collects in 2025.
This is only about how Polk County will us the property tax dollars it collects. The cities, school districts, townships, watershed districts, or other units of government/services have their own budgets.
First, Polk County spending for the 2025 is budgeted to total $73.4 million. That number includes an increase of $987,000 or 3.865 percent over 2024. Of that $73.4 million total, Polk County property taxpayers will contribute $28.3 million. After also using $4.56 million from reserves and available fund balances, the remaining balance of about $40 million — needed to come up with the $73.4 million total — will come from state and federal sources. The state portion of this amount includes about $2 million in County Program Aid. This Program Aid amount includes an increase of $114,000 over 2024.
Reduction from “Preliminary”
The 3 percent levy increase amount is a reduction from the 5 percent “preliminary levy” that was adopted in September. The 2025 budget includes the ability to pay for a 3.5 percent COLA (cost of living adjustment) for employees, plus a $250 per month increase in the benefits package.
The county has eight organized (unionized) departments. Seven of the departments have newly approved three-year wage and benefits contracts. These contracts were negotiated over the past six months. If not approved already, some relatively minor issues remain to be settled in the final contract.
By percentage, the eight different “expense areas” (the different departments) in 2024 were: Social Services, 28%; Road and Bridge, 25%; General Fund, 18%; Public Safety, 10%; Tri-County Community Corrections, 9%; Public Health, 6%; Debt Service, 3%; Planning & Zoning, 1%; Library, less than 1%.
Other notes about county finances that might be of interest:
• $20.7 million was budgeted for Social Service expenses in Polk County in 2024. Expected revenue for social services from the State of Minnesota in 2025 will total $14.5 million. These numbers help to show that about 40% of some salaries for social service employees is paid by the State of Minnesota.
• Tax levy increases — beginning in 2009 to the current 3% levy amount set for 2025 — have averaged 2.89% over the past 16 years. The lowest increase of 1.324% came in 2010. The highest increase of 3.053% came in 2023. Most of the “preliminary” increase amounts, which are set in September have been at about 5%. A 3% rate increase coincides closely to the rate of inflation.
• Two years of debt service remain to be paid to satisfy the $17.5 million in bonds issued in 2005 to construct the 200-bed jail portion of the $25.5 million Polk County Justice Center.
• The “non-jail” portion cost of the Justice Center — about $8 million — was paid for up front in cash. The non-jail portion of the Justice Center building includes space for the District Courtrooms and Court Administration, the Polk County Attorney’s Office, Polk County Public Health Department, and the administrative offices and Probation Department of Tri-County Community Corrections.
• The “next to last” Justice Center bond re-payment —about $1.1 million — will be made in February 2025. The final payment is to be made in February 2026.
• The Polk County budgeting process begins in mid-summer when Administrator Chuck Whiting and the County Personnel Committee (commissioners Gary Willhite and Joan Lee) start discussions with the employee group bargaining members.
• The County Board set the “preliminary levy” increase percentage at 5% in September… it’s an increase because budgets never go down. The “final levy” of 3% was set in December.
• Minnesota has a 6.875% state sales tax rate that is the major part of the tax rate collected at the time of purchase. The average sales tax rate in Minnesota is 8.04%. Just thought you would like to know this so that local governments don’t get all the blame for the total amount of sales tax.
Thoughts for the day:
• Politicians are the same all over: They promise to build a bridge even when there is no river. — Nikita Khrushchev
• I’ve found that prayers work best when you have big players. — Knute Rockne, Notre Dame.
• Happy NewYear everyone!
Disclaimer: Thoughts expressed in this column are those of the author and are not necessarily a reflection of the opinions of the other members of the Polk County Board.
