The Freeborn County Board of Commissioners voted 3-2 Tuesday on a 4.5 percent increase in the 2019 tax levy.

Commissioners Chris Shoff, Glen Mathiason and Jim Nelson voted yes. Dan Belshan and Mike Lee voted no.

Freeborn County Assessor Ryan Rasmusson said based on the $23.31 million approved levy, “the county portion of the tax that was on the notice of proposed tax statements that property owners received in November will essentially remain the same.”

“They might go down a few dollars from what was listed on the statements,” he said.

The 2018 tax levy has been $22.31 million.

Freeborn County Administrator Thomas Jensen said the increase includes placing approximately $230,000 into the county’s highway fund because it is below the required fund balance set by policy. About 2 percent of the increase goes to cost-of-living increases and yearly employee wages and adjustments, and .8 percent of the increase — approximately $165,000 to $180,000 — came after approximately 40 people entered the county’s health insurance program.

“Which is good for us,” Jensen said. “It increases our pool — also increases our costs.”

The increase also included replenishing $120,000 in capital improvement fund reserves after the money was used for Freeborn County Fairgrounds Grandstand improvements, and $15,000 in additional funding for the Freeborn County Fairgrounds.

Jensen spoke in favor of replenishing reserves.

“We took money out of the bank,” he said. “It’s my opinion that we should put it back.”

Commissioners considered a second option, an approximately 4 percent increase that would not have replaced the spent funds or allowed for additional fairgrounds funding.

In a written statement, Belshan spoke against the levy increase.

“Nothing is certain but death and taxes,” he wrote. “Certain county residents feel they’re being taxed to death.”

Freeborn County Financial Manager Pat Paquin said $2.6 million — approximately 11 percent of the levy — has been taken out of reserves in the last year, including nearly $1.8 million for security upgrades at the courthouse, approximately $200,000 for Oakland school demolition and approximately $200,000 in Stables area work. Approximately half of security upgrade funding is being carried over into 2019 because the project is not finished.

Paquin estimated not bonding for the Grandstand and courthouse security upgrades saved the county approximately $300,000 in interest.

Jensen said he supports taking money out of reserves for the projects.

“When you use that, then, our theory is that you put that money back over a period of time,” he said. 

Nelson said the county could have upcoming costs necessitating the replenishing of reserves.

“We should put some money back into reserves,” he said.

Lee said he did not support the levy increase because of Freeborn County families struggling to pay bills.

“I hate to see the 4.5,” he said. “A lot of people are hurting, and I understand that. I understand that we need to put money back in, but I am worried about the people that are struggling.”

Nelson replied, adding he does not feel the county is spending lavishly.

“It ain’t like we are throwing the money out the window … If we would have to build a new one, by God, it could cost millions,” he said.

Shoff noted Freeborn County’s levy increase is lower than Waseca, Mower, Steele, Rice, LeSueur, Faribault and Fillmore counties.

The 2019 general budget was also approved by a 3-2 vote with $57.6 million in revenue and $57.1 million in expenditures, with Lee and Belshan the no votes.

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

The largest increase in the budget comes in the Public Works Department, which increased from $12.26 million in 2018 to $17.27 million because Public Works Director Sue Miller secured additional funding outside of county levy dollars to conduct road and bridge infrastructure projects.

In an email following the meeting, Shoff noted the county has lowered the final levy from the preliminary mark “for many years.”

Shoff mentioned the advocacy Belshan led in demolishing the Oakland school.

“I would hope that in future years, if commissioners bring forward pet projects, they either work through staff to pay for the project, or when it comes time to budget in reality they realize that even though they feel good about coming forward with a pet project, ultimately we have to pay for that pet project,” he said.

“Ultimately, it is unsustainable moving forward to say you are saving Freeborn County taxpayers thousands of dollars when in fact you are costing them millions.”

Shoff said he is looking forward to working with other commissioners to fight the issues of poverty, workplace housing, transportation, child care shortages, quality jobs, substance abuse and child protection.

“Freeborn County also has the unique issue of losing health care services, which will continue to cost this county,” he said.

In other action, commissioners:

Transferred $240,000 in remaining funds from the waste bond fund to the county’s general fund. Jensen said the bond was paid off.

Set the first 2019 board meeting for 8:30 a.m. Jan. 8.