Board to consider 2013 levy increase

The board must set the preliminary levy in September and may reduce, but not increase it after that. The final levy must be set in December. The board is expected to consider the preliminary levy next week.

“Can we (balance the budget) without a levy increase?” she asked. “Sure, but then you do it with reserves.”

The loss of funding and increase in expenditures would require an 8-percent levy increase to cover, said Jaksa. However, she told the board that the rest of 2013 deficit could be made up with cuts to several funding requests, the use of fund reserves and a 1.5 percent levy increase.

Commissioners reviewed with Jaksa the preliminary budget and noted that other issues, including a voter ID amendment that will be on the ballot in November, may play a role in the budget. Commissioners noted that some counties anticipate increased costs ranging from $120,000 to $150,000 if the voter ID requirement is approved.

“And the state still must deal with a $4 billion deficit and we have no idea how that will play out,” Jaksa added.

Commissioners also said two court cases could cost the county additional money in 2013.

Commissioner Mike Hanson reminded the board that it has resolved worse budget scenarios in the past.

But Jaksa noted that the county cannot keep holding money back on certain needs and must eventually replace equipment and handle other cost issues. She’s also cautioned commissioners about continued reliance on using reserves to balance the budget.

In related business, the board heard an audit and financial statement report from auditor Colleen Hoffman of Hoffman, Dale and Swenson, of Thief River Falls.

Hoffman said an audit of the 2011 finances of the county was “unqualified,” meaning that she found no discrepancy based on information provided by the count.

“The county is on top of all required standards and the report is in full compliance,” she told the board Tuesday.

Hoffman said she spent about 600 hours on the audit and credited county staff for its efforts in providing information and complying with requirements.

Much of the county’s spending is because it is mandated by other governments to provide specific services, she said. She added that the most money is spent in highway and human services.

The county’s net worth in 2011 was reported at $82 million and the net assets of the county increased by $5 million. “That’s great,” she said.

In other business Tuesday, the board heard from Don Billig, chairman of the East Koochiching Sanitary Sewer District, that EKSSD rates will include a surcharge of $11.50 per month, or $34.50 per quarterly billing. The increase is expected to take effect the second quarter of 2013, even though EKSSD will see the increased costs starting Jan. 1.

He said letters are being sent to EKSSD members explaining that the costs are being charged to EKSSD to cover rehabilitation of the North Koochiching Area Sanitary District treatment facility and will satisfy principal and interest payments to the Minnesota Public Facility Authority, required capital improvement fund and increased operation and maintenance costs.

The increase is based on flow, and he said flows of each district will be reviewed annually by NKASD for 30 years until the debt obligation to PFA has been satisfied.

Commissioners noted that with the planned extension of sewer to Dove Island, individual costs may decrease in the future as the full costs are spread over more residences and businesses.

Annexation

International Falls Mayor Tim “Chopper” McBride and city Attorney Steve Shermoen heard conceptual support from the board for a joint orderly annexation agreement that would bring all of the 77 acres planned for a multi-model facility district off County Highway 155 into the city limits.

Ranier officials have indicated support, the city officials reported.

Commissioners stressed the need that blasting and crushing at the site comply with county procedures that call for pre-blast surveys of nearby homes and blasts of a certain size to ensure that residences are protected from damage.

Shermoen said it was a fair request and would recommend the city’s Economic Development Authority includes that procedure in its contract for blasting and crushing.

In addition, Shermoen noted that while a purchase agreement for the property has been signed, the transaction between the EDA and Boise Inc. has not yet closed. He said environmental issues at the site must be resolved, adding that he hoped this would be accomplished this year.

Shermoen said the annexing process does not necessarily require a public hearing because the property owners and governments all are in favor of the annexation.

But Commissioner Wade Pavleck said he’d be more comfortable conducting a hearing on the proposal.

In other business, the board agreed to reconstruct County Road 107 with curb and gutter on new alignment within county right of way. The project involves creating a dead end road to the east at a snowmobile trail and, the board noted, property owners will not be accessed for the project.