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Staff cuts help lower levy hike CROW WING COUNTY BOARD Senior Reporter Crow Wing County increased its 2009 preliminary tax levy by 2.98 percent and cut personnel, resulting in the lowest percentage increase in the county's tax levy since 1997.
The proposed 2009 levy is $35,183,775 - or $1,017,916 more in levy dollars than last year. The county Thursday reported personnel costs account for the entire proposed levy increase. As part of the plan, the county is cutting 26.3 full-time equivalent positions, using attrition for some, not filling open but budgeted positions for others and marking 10 positions for involuntary layoffs.
Affected staff members sat in the gallery during the budget discussions. Heaviest hit for layoffs was the maintenance department, where the staff was cut from nine to four with a crew chief to be created from the remaining employees. A position in the auditor's office and one in the land services department was eliminated. Three employees were previously identified for layoffs in public health with the elimination of the home health care program.
Board Chairwoman Rachel Reabe Nystrom said it's important to note this is the lowest levy percentage increase passed in a dozen years. Nystrom credited employees and department heads for being creative and aggressive in getting to this point.
Earlier, the county reported a budget gap of $1.5 million because of reduced building permit revenue, rising energy costs and major hikes in road construction costs. Nystrom said the budget challenge this year came on top of budget reductions the county went through a year ago.
"We have taken a hard look at everything and to come in with a less than 3 percent levy increase is incredible," Nystrom said. "I think it is something we can be very proud of. Is it painful? Yes, it is painful but I think this is what 60,000 residents of Crow Wing County expect from us."
The personnel reductions amount to $1.3 million. As part of the budget plan, $450,000 will be reallocated from the building fund for use as ongoing operational costs and future building related capital improvements.
The administrator and auditor's office identified priorities, such as putting aside $500,000 as a first step in funding employee retiree health insurance coverage. The county has a long-term obligation to provide a comprehensive major medical plan to eligible retirees that runs into the millions of dollars. The county discontinued that option in 2004, but has the liability for retirees and employees who were hired before the cutoff. To be eligible, employees have to meet a years-of-service requirement.
Houle said money needs to be set aside or the cost for the retiree medical coverage - at its peak years - will take the entire levy increase at that time, "starving the rest of the organization's needs to maintain critical services."
An additional $450,000 is being added to the highway department budget to keep up with rising costs in road construction, the county reported. Houle reported the 2009 budget includes cooperative agreements between departments. The offices of assessor, treasurer and auditor will share a staff member. Employees in the auditor's and recorder's office plan to assist the treasurer during peak tax collection times.
For many residents the levy will mean a reduction in their taxes unless they have experienced significant growth in their property valuation, officials said. Because the county is more than $400,000 below the state-imposed levy limit, it is not required to have a truth-in-taxation hearing.
Commissioner Dewey Tautges said he preferred to have the hearing because it allows residents an opportunity to vent their frustrations. Thiede and Auditor Deborah Erickson said residents are often confused about the truth-in-taxation hearing's purpose. Residents who attend often have concerns about property valuations while the purpose is to get public input on the county tax levy and budget. There will not be a hearing this year but the county is required to mail notices to residents and plans to have information on its Web site, which has the potential for e-mail feedback.
The county board may reduce the levy further, but cannot raise it. The final levy and budget will be set in December.
RENEE RICHARDSON may be reached at renee.richardson@brainerddispatch.com or 855-5852.
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