Polk County Commissioner Warren Strandell released another County Line Column earlier today. It can be found down below-
Budgeting takes more than a little work.
While it doesn’t seem like it should already be the time to start developing next year’s operating budget that effort is already in play.
Agreed upon by consensus at a recent meeting of the County Board — on a day six months ahead of the start of the 2023 operating year — was the goal of limiting the next county levy increase to 3 percent… the levy being the amount of property taxation needed to pay for county operations.
Keep in mind that your total tax bill also includes the operating levy for cities, school districts, townships, watershed districts, etc. The county doesn’t have any involvement in determining the levy/budgets of those other government bodies. It is just the County that we are talking about with the 3 percent goal.
The 3 percent number doesn’t mean that there would be a 3 percent increase in the county portion of your 2023 bill. Any change — because of county operations — will be less than that because of the taxes that will be paid by properties coming on the roll for the first time (new construction). This new valuation reduces the bill. Polk County has been adding about $25 million worth of this new valuation each year.
Everything goes up
The cost of virtually everything goes up and the 3 percent mark is one meant to coincides closely with the rate of inflation.
In Polk County, the levy needed to maintain services, buildings, roads, bridges, etc. and our very capable and dedicated staff has been increased at about 3 percent in each of the last 13 years.
Several building issues were in play when the levy increase for 2022 had to be set at 3.5 percent. That was one of the few exceptions. The average rate of levy increases since 2009 has been 2.76 percent. The highest rate of increase was 3.74 percent in 2009 and the lowest was the 1.32 percent the next year in 2010.
In the attempt to control taxes, there is always the temptation to push needs and projects back down the road rather than to face up to them as needed.
Delaying projects just doesn’t pay. The issues don’t go away and only become more expensive when pushed down the road. Budget planning needs to consider how and when buildings, roads and equipment ranging from snowplows to computers will need to be updated and or replaced.
For Polk County, the budget planning process begins with the meetings that Administrator Chuck Whiting has with the county department heads. At those sessions, he asks department heads to rank in order all that they have on their need, want and wish lists. Everything gets put on the table. As a result, the initial budget proposal starts at something close to a 15 percent or even 20 percent increase. Things are worked down from there.
Department heads always want the equipment and personnel that will allow them to do more things and do them better. You can’t blame them for that.
By contrast, commissioners try to hold the levy down… nearer to that 3 percent mark. By the end of the process a good, fair budget is developed… at least the County Board thinks so. Although they may not agree, department heads are heard in the process and their issues are known for future consideration.
Valuations determine taxation
Property valuations are the basis for taxation. The valuations of homes, businesses, and lands are determined by the sale prices. Buyers and sellers are the ones who establish valuations.
The State Board of Equalization oversees the valuation process. If the valuation of property is above or below the market value — valuations are to be set between 90 and 105 percent of comparable sales amounts — that board is authorized to add or deduct from that valuation a percentage necessary to bring it to market value.
When values had been consistently trending out of that range, the Vanguard Appraisal firm was contracted to do a complete a reassessment of commercial properties in East Grand Forks in 1990. That was done again in Crookston seven years ago.
In more recent years, communitywide valuation reassessments have been made in Lengby, Nielsville, Fertile and in several townships. Land valuations have been adjusted, too, some significantly. Again, valuations are based on the sale prices paid for comparable properties and they are watched by the State Department of Revenue.
Some positives ahead
A couple of positive things in the future include:
- The new Line 93 pipeline, which went into operation in October, crosses two townships (Chester and Gully) and touches a third (Eden) in far northeast Polk County. The valuation of the new Line 93 — as determined by the State of Minnesota — is likely to be more than double that of the old Line 3. The first tax contribution from the higher valued new pipeline will be realized in 2023.
- The final payment on the $17.5 million in bonds sold in 2005 to construct the Northwest Regional Corrections Center jail will be made in February 2026. That means that about $1.3 million a year less will have to be collected from taxpayers for debt service. Probably not all, but a chunk of that $1.3 million reduction can be used to reduce the tax levy.
- A smaller $3 million bond was sold in 2015 to convert the old jail space in the Polk County Law Enforcement Center for use by the Sheriff’s Department and for the development there of a new Dispatch Center. Money from that bond issue was also used to develop unused open space on the second floor of the Justice Center building for the County Attorney’s office and to remodel space the County Attorney vacated on the first floor of the building for the Public Health Department. Public Health had previously been in rented space. That bond issue will also be retired in 2026.
Two other bond issues — a $3 million issue to remodel the office space in the East Grand Forks Human Service Center office building and a $3.125 issue to rebuild the interior of the Red River Juvenile Center (damaged by a rainstorm) and for a new roof and HVAC improvements at the Polk County Justice Center — will be paid off in 2030 and 2033.
Cut spending
There are those who like to challenge how county money is spent and always say that it can be reduced. Well, if you want to do that the mostly likely way is to make reductions in personnel.
The two most susceptible areas for personnel reductions would be in the areas of public safety/law enforcement and road maintenance. I don’t know of anybody who really wants to make cuts in those two areas. Reductions of personnel and services would be very difficult in other areas.
The budgeting process comes down to that of good planning and management… both for the present and to prepare for needs down the road. Call me prejudiced, but I think things in Polk County are being managed pretty darn well.
And for me, the county portion of my tax bill has only seen very small increases. Go check the county portion of your bill.
Thoughts for the day:
- I offered my opponents a deal: “If they stop telling lies about me, I will stop telling the truth about them.” — Adlai Stevenson 1952
- A government that robs Peter to pay Paul can always depend on the support of Paul. — Will Rogers
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.
