2022 Proposed Budget and Levy Truth in Taxation Public Meeting December 14, 2021

Transcription

1 2022 Proposed and Levy Truth in Taxation Public Meeting December 14, 2021 Prepared by the Office of County Administrator

2 Summary of Major Factors in the Proposed 2022 and Levy The proposed 2022 levy increases 5.9%, or $1,192,978 from 2021, to a total property tax levy of $21,412,944 ( gross increase partially offset by expected 1.14% growth from new construction) With this proposed change for 2022, the 10-year average levy change for Benton County is a 0.8% increase The proposed levy increase falls below the 7.7% expected growth in the County s payable 2022 tax capacity, which translates into a reduced County tax rate in 2022; the estimated 2022 County tax rate will fall from 55.21% to 54.30% of tax capacity (down from a peak of 77.74% in 2013) Based on a median house value of $250,000 and expected 5.3% value growth in 2022, a homeowner s County property taxes would increase $57.32 in 2022, or $4.78 per month The proposed 2022 operating budget totals $49,401,951, an increase of $6,888,058, or a 16.2% increase from 2021; $3.9 million of the increase is due to a larger 2022 road construction program The proposed levy increase is comprised of the following major elements: Employee compensation and benefits $1,381,810 New positions 554,176 Restore Highway capital equipment funding 330,000 Use ARPA funds for revenue losses (671,903) Revenue offsets of new positions (255,472) Use additional reserves to reduce levy (181,761) All other operating and capital budget changes 36,128 Total Levy Change for 2022 $1,192,978 The proposed budget includes the following Policy Issues from County Board action: New positions in Human Services, including a Homeless Outreach Social Worker, a MNCHOICE Assessor Social Worker, a Public Health Nurse (First Steps Collaborative) and Adult Services Case Aide An additional Help Desk position for Information Technology and a Human Resources Professional position A 20 hour per week Investigative Aide in the Sheriff s Office Increased funding to the Benton Economic Partnership by $50,000 to allow BEP to hire support staff Employee compensation and benefits comprise the largest portion of the 2022 levy increase; the 2022 budget funds a 2.5% general wage increase in all labor agreements, plus step increases and the effects of the 2021 wage study. Also, the proposed 2022 budget includes a 12% increase in employee health insurance premiums, based on the recommendation of the County s health insurance broker The County s general revenue fund balance at the end of 2020 stood at 6.8 months of expenditure coverage, versus a goal standard of 5 months expenditure coverage; this level allows a modest usage of reserves during 2022 to help reduce the County levy Prepared by the Office of County Administrator December 14, 2021 Page 1

3 Benton County 2022 Proposed - Where It Comes From Fees/Chrg for Services $1,242,022 3% County Pgm Aid $2,680,357 5% Wheelage/Local Option Sales Tax $3,275,000 7% All Other $1,961,631 4% Property Taxes $21,605,544 44% Int Srvcs/Transfers In $4,118,796 8% Fed/State Road Funding $6,031,224 12% Human Services Fed/State $8,108,900 17% Total Revenues: $49,023,474 Prepared by the Office of County Administrator December 14, 2021 Page 2

4 Benton County 2022 Proposed - Where It Goes Debt Service $1,044,068 Transfers to Other Funds $2,610,501 2% 5% HS Client Services $4,084,892 8% 37% Salaries/Wages $18,514,357 Salaries, Wages and Benefits make up 52% of the total ("all funds") budget. 14% 18% Employee Benefits $6,944,940 15% Operating s $8,995,528 Capital Projects/Equipment $7,207,665 Total Proposed 2022 : $49,401, Proposed - Where It Goes "Core Operating " Salaries/Wages $18,514,357 54% Operating s $8,995,528 26% Salaries, Wages and Benefits make up 74% of the "core" operating budget. Benefits $6,944,940 20% Prepared by the Office of County Administrator December 14, 2021 Page 3

5 Benton County 2022 Proposed - Where It Goes by Major Function Debt Service $1,044,068 Transfers to Other Funds $2,610,501 Public Safety $9,614,386 5% 19% 2% 20% 31% Human Services $15,477,164 22% Highway $10,880,230 The top three functions comprise 73% of the County's proposed 2022 budget. General Governmental $9,775,602 Prepared by the Office of County Administrator Page 4 December 14, 2021 Page 4

6 Benton County and Levy Summary 2022 Proposed and Levy 2021 Adopted 2022 Proposed $ Chg % Chg Revenue/Transfers-In (Other Than Property Tax Levy and County Program Aid) Revenue Fund $3,479,273 $3,762,426 $283, % Highway 4,448,528 8,756,050 4,307, % Human Services 8,375,511 8,779, , % Capital Projects 80,000 10,000 (70,000) -87.5% Capital Projects - Highway 2,625,000 3,455, , % Debt Service 167, , % Tax Abatements (Fund 70) % Totals $19,175,662 $24,930,173 $5,754, % Expenditures Revenue Fund $17,645,894 $18,878,050 $1,232, % Highway 6,673,726 11,210,230 4,536, % Human Services 14,461,490 15,477,164 1,015, % Capital Projects 701, ,700 (364,605) -52.0% Capital Projects - Highway 1,968,090 2,431, , % Debt Service 1,063,388 1,044,068 (19,320) -1.8% Tax Abatements (Fund 70) 0 24,738 24, % Totals $42,513,893 $49,401,951 $6,888, % Levy Required (Before Fund Balance Used/State Aid Reduction) Revenue Fund $14,166,621 $15,115,624 $949, % Highway 2,225,198 2,454, , % Human Services 6,085,979 6,697, , % Capital Projects 621, ,700 (294,605) -47.4% Capital Projects - Highway (656,910) (1,023,999) (367,089) 55.9% Debt Service 896, ,593 (19,445) -2.2% Tax Abatements (Fund 70) 0 24,738 24, % Totals $23,338,231 $24,471,778 $1,133, % Fund Balance Used Revenue Fund ($557,221) ($660,993) ($103,772) 18.6% Highway 0 (140,000) (140,000) 0.0% Human Services 0 (77,989) (77,989) 0.0% Capital Projects (621,305) (326,700) 294, % Capital Projects - Highway 656,910 1,023, , % Debt Service 60,394 (198,031) (258,425) % Tax Abatements (Fund 70) 0 1,237 1, % Totals ($461,222) ($378,477) $82, % Net Property Tax Levy Revenue Fund $13,609,400 $14,454,631 $845, % Highway 2,225,198 2,314,180 88, % Human Services 6,085,979 6,619, , % Debt Service 956, ,562 (277,870) % Tax Abatements (Fund 70) 0 25,975 25, % Totals $22,877,009 $24,093,301 $1,216, % Less County Program Aid (2,657,043) (2,680,357) (23,314) 0.88% Net Property Tax Levy $20,219,966 $21,412,944 $1,192, % Prepared by the Office of County Administrator Page 5 12/14/2021

7 Benton County Tax Capacity, Levy and Tax Rate Summary - 10 Year Trend Net Tax Capacity $26,054,288 $25,626,490 $27,233,856 $28,333,717 $29,284,974 $30,414,097 $32,076,157 $34,419,085 $36,624,701 $39,436,488 % Change -3.9% -1.6% 6.3% 4.0% 3.4% 3.9% 5.5% 7.3% 6.4% 7.7% Property Tax Levy $20,228,287 $19,821,893 $19,169,476 $18,987,493 $19,330,998 $19,574,955 $19,726,534 $20,119,369 $20,219,966 $21,412,944 Levy % Change 1.90% -2.01% -3.29% -0.95% 1.81% 1.26% 0.77% 1.99% 0.50% 5.90% County Tax Rate 77.74% 77.61% 70.62% 67.14% 66.01% 64.36% 61.50% 58.45% 55.21% 54.30% Chg in Rate 4.5% -0.1% -7.0% -3.5% -1.1% -1.6% -2.9% -3.0% -3.2% -0.9% $25,000,000 $20,000, % 77.61% $20,228,287 $19,821, % $19,169,476 $18,987, % 66.01% 64.36% 61.50% $19,330,998 $19,574,955 $19,726, % $20,119, % $20,219, % $21,412,944 80% 70% 60% 50% $15,000,000 40% $10,000,000 BentonCounty average levy change : 0.8% increase. 30% 20% $5,000, % -2.01% -3.29% -0.95% 1.81% 1.26% 0.77% 1.99% 0.50% 5.90% 10% 0% $ Property Tax Levy Levy % Change County Tax Rate -10% Prepared by the Office of County Administrator Page 6 12/14/2021

8 Benton County Detail by Department Adopted 2021 and Levy 2022 Base 2022 Policy Issues/BROs Revenue Forecast County Program Aid Total Revenue 2022 Base Levy Expenditures 2022 Proposed Summary Revenue & Transfers-In Revenue Expenditures Levy Department Revenue Expenditures Levy Salary & Benefits Operating Capital Total Expenditures Commissioners 0 303, , ,750 41, , , , ,425 General Government 195, , , , ,808 3, , , , , , , ,508 Public Defender 0 152, , , , , , ,000 Auditor/Treasurer 978, ,270 (293,821) 681, , , , ,391 (48,900) 852, ,491 (48,900) Attorney 216,000 1,378,485 1,162,485 1,380,480 95,900 1,476, , ,000 1,243, ,000 1,476,380 1,243,380 Land Services 315, , , , , , , , , , , ,256 Administrator Administration 0 702, , ,199 18, , ,049 82, , ,829 Emergency Management 24, ,781 76,781 93,977 10, ,347 24,000 24,000 80,347 24, ,347 80,347 Information Technology 441, , , , ,335 76, , , , , , ,940 1,082, ,407 Property Management 278, , , , ,465 29, , , , ,889 10, , , ,889 Veterans Services 0 85,898 85,898 89,048 2,810 91, , ,858 91,858 Administrator - Total 744,313 2,623,378 1,879,065 1,953, , ,800 2,753, , ,772 2,062, , ,772 2,947,102 2,256,330 Department of Development 251, , , ,772 37, , , , , , , ,744 Outside Agencies 0 923, , , , ,116 56, , ,116 Sheriff's Office Sheriff 357,943 4,588,330 4,230,387 4,348, , ,000 4,901, , ,179 4,530,995 37, ,179 4,938,321 4,568,142 Jail 256,500 3,672,312 3,415,812 3,190, ,712 7,500 3,865, , ,500 3,758, ,500 3,865,065 3,758,565 Sheriff - Total 614,443 8,260,642 7,646,199 7,539,565 1,009, ,500 8,766, , ,679 8,289,560 37, ,679 8,803,386 8,326,707 Department of Corrections 134, , , , , , , , , , , ,218 Extension , , , , , , ,918 Transfers From/To Other Funds 30,000 0 (30,000) 0 491, ,078 (491,078) 491,078 0 (491,078) Total - Revenue Fund 3,479,273 17,645,894 14,166,621 13,340,693 4,924, ,300 18,591,197 3,762, ,762,426 14,828, , ,762,426 18,878,050 15,115,624 Other Funds Highway 4,448,528 6,673,726 2,225,198 2,070,959 2,901,596 6,212,675 11,185,230 8,756,050 8,756,050 2,429,180 25,000 8,756,050 11,210,230 2,454,180 Human Services 8,375,511 14,461,490 6,085,979 9,493,744 5,634,002 15,127,746 8,523,750 8,523,750 6,603, , ,472 8,779,222 15,477,164 6,697,942 Capital Projects 80, , ,305 68, , ,700 10,000 10, ,700 10, , ,700 Capital Projects - Highway 2,625,000 1,968,090 (656,910) 2,101, ,000 2,431,001 3,455,000 3,455,000 (1,023,999) 3,455,000 2,431,001 (1,023,999) Debt Service 167,350 1,063, ,038 1,044,068 1,044, , , , ,475 1,044, ,593 Tax Abatements (Fund 70) ,738 24, , ,738 24,738 Total - Other Funds 15,696,389 24,867,999 9,171,610 11,564,703 11,773,405 6,811,375 30,149,483 20,912, ,912,275 9,237, , ,472 21,167,747 30,523,901 9,356,154 Grand Total - All Funds 19,175,662 42,513,893 23,338,231 24,905,396 16,697,609 7,137,675 48,740,680 24,674, ,674,701 24,065, , ,472 24,930,173 49,401,951 24,471,778 Prepared by the Office of County Administrator Page 7 12/14/2021

9 Major Factors Affecting the Benton County 2022 Proposed Levy Revenue Fund 2022 general wage increase ("COLA") $241,949 Step increases and other base salary adjustments 256,025 Health insurance enrollment changes/12% health insurance premium increase 122,377 Operating Account Changes > Increase for 2022 elections (Auditor-Treasurer) 45,000 > Migrate Microsoft licensing from CIP to operating (IT ) 51,000 > Jail medical provider increase (based on 3-year contract; phased-in increases) 41,400 > Increase for DOC-contracted Probation Officers salaries/benefits 33,679 > All Other Operating Account Changes 116,873 Capital Outlay Base Adjustments 37,000 Net Revenue Changes (283,153) Change in Fund Balance Used (103,772) Policy Issues Funded in the Proposed 286,853 Total Changes $845,231 Highway Fund 2022 general wage increase ("COLA") $39,059 Step increases and other base salary adjustments 56,193 Health insurance enrollment changes/12% health insurance premium increase 1,890 Operating Account Changes > Add back funding for major equipment replacement 330,000 > Adjust outside services account for 2022 road projects 107,050 > Price increases for culverts 40,000 Municipal maintenance agreements (increased lane miles, cost increases) 35,525 > All Other Operating Account Changes 39,492 Net Change in Road Program (2020 to 2022) 3,933,547 All Other Capital Equipment Base Adjustments (71,252) Net Revenue Changes (4,307,522) Change in Fund Balance Used (140,000) Policy Issues Funded in the Proposed 25,000 Total Changes $88,982 Human Services Fund 2022 general wage increase $193,028 Step increases and other base salary adjustments 432,059 Health insurance enrollment changes/12% health insurance premium increase 39,691 Operating Account Changes > All Other Operating Account Changes 1,478 Capital Outlay Base Adjustments 0 Net Revenue Changes (148,239) Change in Fund Balance Used (77,989) Policy Issues Funded in the Proposed 93,946 Total Changes $533,974 Prepared by the Office of County Administrator Page 8 12/14/2021

10 Major Factors Affecting the Benton County 2022 Proposed Levy Other Operating Funds Capital Projects Fund No changes $0 Capital Projects - Highway No changes 0 Debt Service Fund 2017 Refunding Bonds paid off in 2023; 2022 final levy year (half remaining) (277,870) plus, refunding 2014 Tax Abatement bonds Tax Abatements (Fund 70) Add Performance Foods tax abatement levy 25,975 County Program Aid Increase from the CPA formula (23,314) Total Changes - All Funds $1,192,978 Major Factors - Recap 2022 general wage increase ("COLA") $474,036 Step increases and other base salary adjustments 744,277 Health insurance enrollment changes/12% health insurance premium increase 163,958 Operating Account Changes 841,497 Capital Outlay Base Adjustments 3,899,295 Net Revenue Changes (including changes in transfers) (4,738,914) Change in Fund Balance Used (321,761) Capital Projects Fund 0 Debt Service Fund (277,870) Tax Abatements 25,975 County Program Aid (23,314) Policy Issues Funded in the Proposed 405,799 Total Change in the 2022 Proposed Levy (from 2021) $1,192,978 Prepared by the Office of County Administrator Page 9 12/14/2021

11 Proposed Revenue/Transfers-In Summary 2021 Revenue 2022 Revenue $ Change from 2021 % Change from 2021 Notes Commissioners $0 $0 $0 0.0% General Government 195, ,000 (15,000) -7.7% Reduced MCIT dividend Public Defender % Auditor/Treasurer 978, ,391 (125,700) -12.9% Reduced interest income Attorney 216, ,000 17, % Land Services 315, ,800 96, % Improving filing revenue (from recorded documents) Administrator Administration % Emergency Management 24,000 24, % Information Technology 441, ,940 (52,541) -11.9% Adjusted internal service charges to Human Services Property Management 278, ,832 (1,000) -0.4% Veterans' Services % Administrator - Total 744, ,772 (53,541) -7.2% Department of Development 251, ,924 41, % Increased transfer-in from recording fees for GIS function Other Agencies % Sheriff's Office Sheriff 357, ,179 12, % Increased State Police Aid (formula-driven) Jail 256, ,500 (150,000) -58.5% Continued declines in boarding revenue Sheriff - Total 614, ,679 (137,764) -22.4% Department of Corrections 134, ,782 (620) -0.5% Extension (500) 0.0% Transfers From/To Other Funds 30, , , % Add a transfer-in from ARPA funding for Jail revenue losses Total - Revenue Fund 3,479,273 3,762, , % Other Funds Highway 4,448,528 8,756,050 4,307, % Growth due to larger 2022 road program (State Aid, Local Road Fund) Human Services 8,375,511 8,523, , % Capital Projects 80,000 10,000 (70,000) 0.0% Eliminate one-time transfer in from Recorder's Tech Fund for document imaging Capital Projects - Highway 2,625,000 3,455, , % Growth in local option sales tax, plus $330,000 transfer-in for capital equipment Debt Service 167, , % Tax Abatements (Fund 70) % Total - Other Funds 15,696,389 20,912,275 5,215, % Grand Total - All Funds $19,175,662 $24,674,701 $5,499, % Prepared by the Office of County Administrator Page 10 12/14/2021

12 2022 Policy Issue Summary Requested Full Year Cost Revenue Offsets or Reductions Requested Net Cost Net Amt Funded in the Proposed 2022 Notes Department Policy Issue Title 1 Commissioners None submitted 2 General Government None submitted 3 Public Defender None submitted 4 Auditor/Treasurer None submitted 5 County Attorney None submitted 6 Land Services Hire Staff Appraiser to Fulfill Existing Local Contracts $94,486 ($65,574) $28,912 $0 Not Funded 7 Land Services Hire Part-Time Technical Analyst 24,869 24,869 0 Not Funded 8 Administrator Fixed Asset Accounting Software 8,690 8,690 8,690 9 Administrator IT Staffing Request 92,236 92,236 92, Administrator One Additional Human Resources Staff 82,780 82,780 82, Administrator Parks Consulting Services 10,000 10,000 10, DoD None submitted 13 Outside Agencies See Outside Agency for Details 74,534 74,534 56, Sheriff's Office Permanent Part-Time Investigate Aid Position 29,742 29,742 29, Sheriff's Office Weekend Nurse Hours in the Jail 16,000 16,000 0 Not Funded (include in Jail Med contract) 16 Sheriff's Office Paid Sheriff's Office Intern Position 7,405 7,405 7, Sheriff's Office Additional Patrol Deputy Position 87,350 87,350 0 Not Funded 18 Corrections None submitted 19 Extension None submitted Total - Revenue Fund $528,092 ($65,574) $462,518 $286, Highway Crack filler 25,000 25,000 25,000 Total - Highway Fund $25,000 $0 $25,000 $25, Human Services HCBS Adult Services Case Aide 67,318 (67,318) 0 0 Funded (no additional levy cost) 22 Human Services Licensing Social Worker Increased Hours 19,077 (3,120) 15,957 15, Human Services Social Worker MN Choices 85,375 (85,375) 0 0 Funded (no additional levy cost) 24 Human Services PH Nurse First Steps Collaborative 85,375 (85,375) 0 0 Funded (no additional levy cost) 25 Human Services Dedicated Funds to EDMS 50,000 (12,500) 37,500 0 Not Funded Total - Human Services Fund $307,145 ($253,688) $53,457 $15, Capital Projects Fund None submitted Total - Capital Projects Fund $0 $0 $0 $0 27 Highway Capital Projects Fund None submitted Total - Highway Capital Projects Fund $0 $0 $0 $0 28 Debt Service Fund None submitted Total - Debt Service Fund $0 $0 $0 $0 29 Tax Abatement Fund None submitted Total - Tax Abatement Fund $0 $0 $0 $0 Grand Total - All Funds $860,237 ($319,262) $540,975 $327,810 Prepared by the Office of County Administrator Page 11 12/14/2021

13 Summary of Funding to Outside Agencies Adopted Request Requested $ Increase from Proposed 2022 $ Chg from % Chg from 2021 APO (JPO) ,792 4,184 (2,608) 4,184 (2,608) -38.4% Historical Society ,070 13,070 1,000 13,070 1, % Humane Society ,000 4,800 2,800 2, % Initiative Foundation ,700 5, , % Great River Regional Library (JPO) , ,318 (5,516) 526,318 (5,516) -1.0% SWCD , ,500 7, ,500 5, % RSVP ,000 18,234 3,234 15, % Smart Moves (Boys and Girls Clubs) ,700 6, , % United Way ,000 3, , % Council on Aging ,534 2, , % Greater St. Cloud Development Corporation ,500 10,000 2,500 7, % Central MN Child Advocacy Center ,500 10,000 7,500 2, % Career Solutions ,000 1, , % Central MN Emergency Services Board (JPO) ,004 5, , % CARE ,500 8, , % Highway 23 Coalition ,000 3,000 3,000 3, % Benton Economic Partnership , ,000 50, ,000 50, % Totals $923,634 $993,662 $70,028 $975,140 $51, % (JPO = Joint Powers Organization) Prepared by the Office of County Administrator 12/14/2021 Page 13