Based on the state’s elimination of the market value homestead credit, which is expected to increase the tax rates of all authorities, Koochiching County commissioners Tuesday will not increase the proposed 2012 levy increase over the amount of taxes collected this year.
With no increase, the gross levy is expected to collect $3.9 million from county taxpayers to support the 2012 budget. The proposed levy must be set by Sept. 15 and may be reduced, but not increased, prior to the final levy and budget is adopted in December. The board also scheduled the required hearing on the levy and budget for 6:15 p.m. Dec. 13.
County Administrative Director Teresa Jaksa told the board that the elimination of the homestead credit, which has been replaced by the new homestead market value exclusion, will reduce the tax base, thereby increasing the tax rates for most property owners — even if no other taxing authority raises its levy. “For that reason, the zero percent increase,” she told commissioners.
The homestead credit provided property owners with a decrease to their taxes and reimbursed taxing authorities for the loss of taxes collected on that amount. The new program will tax homesteaded property on a reduced value providing relief for those property owners, but leaving a gap in funding for taxing entities.
Just how the new program will shake out for the homesteaded properties — whether the tax relief will be more or less than the credit program — is not yet known, Jaksa said.
When asked how the 2012 budget is developing, Jaksa answered, “We’re going to be fine.”
She explained that after making cuts to department requests, any funding gap will be filled with reserves.
“We’re making reductions in expenditures to not spend as much reserves as in 2011,” she said.
Report to IJC
In other business Tuesday, the board agreed to send letters to the area’s congressional and state delegations outlining concerns it has with recommendations made to the International Joint Commission by the International Lake of the Woods and Rainy River Watershed Task Force. The IJC oversees the two groups and sets out regulations on the level of area waters.
Lee Grim, a local member of the task force, discussed the concerns with commissioners and encouraged them to make their views of the recommendations known to the IJC.
“The IJC would be upset if you didn’t express your feelings,” Grim told the board. “If there’s anything I can do to help, let me know.”
In addition, Grim encouraged Commissioner Mike Hanson to seek appointment to the task force to bring a political point-of-view to the group.
Hanson led the discussion and initially urged fellow commissioners to oppose the recommendations. He later agreed to a letter outlining the board’s concerns.
He said he is concerned that the recommendations could lead to additional hindrances to development in the area. While he said he believes that most of the recommendations make sense and are reasonable, he said he worries about a loss of local control. He pointed to references in the recommendations about land development in the watershed and the effect of climate changes and water management.
The recommendations include combining the International Rainy Lake Board of Control and the International Rainy River Water Pollution Board, the development of an international multi-agency working arrangement and expansion of the geographic scope of the International Joint Commission's authority in the watershed.
Similar concerns are also outlined in an Aug. 31 letter to IJC members by Bob Anderson, public affairs manager of Boise Paper. And the International Falls City Council is expected to take a position on the recommendations at an upcoming meeting.
Hanson said he appreciates and trusts Grim, but the recommendations represent an expanding group with federal government ties.
Commissioner Rob Ecklund attended a Monday meeting of the Koochiching County Soil and Water Conservation District Board, which asked for an extension of the comment period on the recommendations to allow more people and organizations to weigh in. He said the board has concerns about how the recommendations may impact agriculture.
Commissioner Brian McBride said no one is opposed to improved water quality, but the concern lies with the size of the new group and its ability to provide comment on various issues.
While board Chairman Wade Pavleck said he, too, worries that the recommendations will lead to another layer of bureaucracy, he said water quality is a big concern in Ontario and Lake of the Woods. He noted that just three years ago, Rainy Lake experienced its first algae bloom. Blooms are often caused by a water quality degradation.
Pavleck urged the board to outline its concerns, but not oppose all the recommendations.
He expressed frustration that while huge investments are being made in Borderland to extend sewer in an effort to protect water quality, Ontario is not making the same efforts.
While Grim said the IJC may adopt or reject any or all of the recommendations, he said they are not meant to govern the actions of citizens.
“We are not into telling people what to do, we are into alerting the IJC and the boards of what’s going on in the watershed,” he said. He also said the recommendations involve looking at governance mechanisms.
He used the analogy of an orchestra made up of the Minnesota Pollution Control Agency, the Environmental Protection Agency, the Ontario Ministry of the Environment, to name just a few, without an orchestra leader looking over what is happening within the entire watershed.
In addition, he said the recommendations are intended to help coordinate and create better synergy with all groups involved in the watershed.
“We don’t want to stop economic development,” he said. “We want to promote and protect the watershed.”
The board also Tuesday agreed to allow Sheriff Brian Youso to hire three additional part-time deputies to provide armed bailiffs when district court is in session in the courthouse.
Youso said Judge Charles LeDuc has ordered that armed bailiffs be present when court is in session, but Youso said he does not have enough staff to handle the additional duties.
The board agreed to allow the hiring of the part-time deputies and to monitor costs until the board can meet with the judge in January to discuss the issue.

