The Crow Wing County Board will host a meeting for First Assessment District residents, seeking input on a potential property tax increase to cover costs of future road construction.
The meeting will be 6:30 p.m. June 15 at the Crow Wing Power headquarters, 17330 Highway 371.
To fully fund road construction and preservation assumed necessary to deliver a level of service comparable to that provided by the county and other area municipalities, it is likely a three- to four-year period of significant property tax increases will be needed to fund a 2021 construction season, a news release stated. Possible ranges are from 12-18 percent annually. This may be followed by more moderate increases of 4-5 percent annually over the next six to seven years.
The county board acts as the township board for the First Assessment District, also known as Unorganized Territory, in absence of an elected township government.
The First Assessment District roadway system is a complex network encompassing nearly 60 miles of public and semi-public roadways, the release stated. Crow Wing County has the authority and responsibility to maintain these public facilities.
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Like in other townships, Unorganized Territory residents pay a separate township level property tax to fund government services within its jurisdiction. This is in addition to county level and school district level taxes.
Crow Wing County does not subsidize the First Assessment District or other townships for infrastructure needs. State statute prohibits use of county sales tax revenue for township roadway construction and maintenance. Township property taxes are currently the only source of revenue to fund all activities necessary to properly maintain the First Assessment District roadway system.
In recent years, the district has experienced adequate levels of roadway construction, the release stated. This has been possible due to the availability of a large cash fund balance. Prior to 2021, these cash reserves are expected to be depleted, and projected levels of property tax will be insufficient to sustain required levels of roadway improvements.
All construction projects promised to the public in the current highway improvement plan will be delivered. If nothing is done to generate additional financial resources, there will only be enough funding to provide basic summer maintenance activities and winter snow plowing after 2020, the release stated. There remains a long list of First Assessment District roadways in need of major repair.
