The Freeborn County Board of Commissioners approved a 3.5 percent increase in the 2018 tax levy Tuesday.

The measure passed by a 4-1 vote. Commissioners Jim Nelson, Glen Mathiason, Mike Lee and Chris Shoff voted yes. Commissioner Dan Belshan voted no.

The 3.5 percent increase will increase taxes $19 on a residential homestead property valued at $100,000 and $29 on a $100,000 residential non-homestead property. Taxes on commercial property valued at $200,000 will increase $95. Taxes would decrease about 50 cents on an average acre of homestead tillable agriculture land and decrease nearly $1 on a non-homestead average acre of tillable ag land.

The increase in the tax levy was set after Freeborn County Administrator Thomas Jensen presented commissioners with five potential levy increases that ranged between 3 percent and 4 percent.

Jensen recommended commissioners approve a 3.5 percent tax levy increase. 

“In talking with (Freeborn County Financial Manager) Pat (Paquin), 3.5 is an amount he is comfortable with,” Jensen said.

In enacting a 3.5 percent increase, Freeborn County is using $2.1 million in reserves, reducing reserves to $550,000.

The preliminary levy approved in September included a 4-percent increase in the tax levy.

County officials cited work at the former Oakland school building, Freeborn County Government Center and the Freeborn County Fair Grandstand as reasons why the increase was needed.

The 2018 budget was approved with $51.5 million in expenditures and $49.4 million in revenue, with funding reserves covering most of the difference.

The 2018 tax levy was set at $22.31 million. The 2017 tax levy was $21.55 million.

In being the lone commissioner voting against the tax levy and budget, Belshan expressed frustration with what he said was the county having more expenditures than revenue in its budget. 

“We’re not balancing the budget,” he said.

“We shouldn’t be taking money out of reserves.”

Belshan suggested Freeborn County try to cut its budget, comparing the government body’s situation to taxpayers who had to cut their budgets during the recent economic recession.

Lee said though he wished the tax levy would have been approved at a smaller increase, he acknowledged expenses made the tax increase necessary.

“It is the way it is,” he said.