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

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

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

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

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 : $49,401,951 2022 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

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

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 $283,153 8.1% Highway 4,448,528 8,756,050 4,307,522 96.8% Human Services 8,375,511 8,779,222 403,711 4.8% Capital Projects 80,000 10,000 (70,000) -87.5% Capital Projects - Highway 2,625,000 3,455,000 830,000 31.6% Debt Service 167,350 167,475 125 0.1% Tax Abatements (Fund 70) 0 0 0 0.0% Totals $19,175,662 $24,930,173 $5,754,511 30.0% Expenditures Revenue Fund $17,645,894 $18,878,050 $1,232,156 7.0% Highway 6,673,726 11,210,230 4,536,504 68.0% Human Services 14,461,490 15,477,164 1,015,674 7.0% Capital Projects 701,305 336,700 (364,605) -52.0% Capital Projects - Highway 1,968,090 2,431,001 462,911 23.5% Debt Service 1,063,388 1,044,068 (19,320) -1.8% Tax Abatements (Fund 70) 0 24,738 24,738 0.0% Totals $42,513,893 $49,401,951 $6,888,058 16.2% Levy Required (Before Fund Balance Used/State Aid Reduction) Revenue Fund $14,166,621 $15,115,624 $949,003 6.7% Highway 2,225,198 2,454,180 228,982 10.3% Human Services 6,085,979 6,697,942 611,963 10.1% Capital Projects 621,305 326,700 (294,605) -47.4% Capital Projects - Highway (656,910) (1,023,999) (367,089) 55.9% Debt Service 896,038 876,593 (19,445) -2.2% Tax Abatements (Fund 70) 0 24,738 24,738 0.0% Totals $23,338,231 $24,471,778 $1,133,547 4.9% 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) 294,605-47.4% Capital Projects - Highway 656,910 1,023,999 367,089 55.9% Debt Service 60,394 (198,031) (258,425) -427.9% Tax Abatements (Fund 70) 0 1,237 1,237 0.0% Totals ($461,222) ($378,477) $82,745-17.9% Net Property Tax Levy Revenue Fund $13,609,400 $14,454,631 $845,231 6.21% Highway 2,225,198 2,314,180 88,982 4.00% Human Services 6,085,979 6,619,953 533,974 8.77% Debt Service 956,432 678,562 (277,870) -29.05% Tax Abatements (Fund 70) 0 25,975 25,975 0.00% Totals $22,877,009 $24,093,301 $1,216,292 5.32% Less County Program Aid (2,657,043) (2,680,357) (23,314) 0.88% Net Property Tax Levy $20,219,966 $21,412,944 $1,192,978 5.90% Prepared by the Office of County Administrator Page 5 12/14/2021

Benton County Tax Capacity, Levy and Tax Rate Summary - 10 Year Trend 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 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 $20,000,000 77.74% 77.61% $20,228,287 $19,821,893 70.62% $19,169,476 $18,987,493 67.14% 66.01% 64.36% 61.50% $19,330,998 $19,574,955 $19,726,534 58.45% $20,119,369 55.21% $20,219,966 54.30% $21,412,944 80% 70% 60% 50% $15,000,000 40% $10,000,000 BentonCounty average levy change 2013-2022: 0.8% increase. 30% 20% $5,000,000 1.90% -2.01% -3.29% -0.95% 1.81% 1.26% 0.77% 1.99% 0.50% 5.90% 10% 0% $0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Property Tax Levy Levy % Change County Tax Rate -10% Prepared by the Office of County Administrator Page 6 12/14/2021

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 0 303,446 303,446 243,750 41,675 285,425 0 285,425 0 285,425 285,425 General Government 195,000 953,760 758,760 216,700 754,808 3,000 974,508 180,000 180,000 794,508 180,000 974,508 794,508 Public Defender 0 152,000 152,000 152,000 152,000 0 152,000 0 152,000 152,000 Auditor/Treasurer 978,091 684,270 (293,821) 681,241 122,250 803,491 852,391 852,391 (48,900) 852,391 803,491 (48,900) Attorney 216,000 1,378,485 1,162,485 1,380,480 95,900 1,476,380 233,000 233,000 1,243,380 233,000 1,476,380 1,243,380 Land Services 315,400 891,609 576,209 772,606 195,450 968,056 411,800 411,800 556,256 411,800 968,056 556,256 Administrator Administration 0 702,285 702,285 721,199 18,850 740,049 0 740,049 82,780 0 822,829 822,829 Emergency Management 24,000 100,781 76,781 93,977 10,370 104,347 24,000 24,000 80,347 24,000 104,347 80,347 Information Technology 441,481 913,313 471,832 566,086 339,335 76,000 981,421 388,940 388,940 592,481 100,926 388,940 1,082,347 693,407 Property Management 278,832 821,101 542,269 483,456 322,465 29,800 835,721 277,832 277,832 557,889 10,000 277,832 845,721 567,889 Veterans Services 0 85,898 85,898 89,048 2,810 91,858 0 91,858 0 91,858 91,858 Administrator - Total 744,313 2,623,378 1,879,065 1,953,766 693,830 105,800 2,753,396 690,772 0 690,772 2,062,624 193,706 0 690,772 2,947,102 2,256,330 Department of Development 251,124 457,258 206,134 426,772 37,896 464,668 292,924 292,924 171,744 292,924 464,668 171,744 Outside Agencies 0 923,634 923,634 919,116 919,116 0 919,116 56,000 0 975,116 975,116 Sheriff's Office Sheriff 357,943 4,588,330 4,230,387 4,348,712 342,462 210,000 4,901,174 370,179 370,179 4,530,995 37,147 370,179 4,938,321 4,568,142 Jail 256,500 3,672,312 3,415,812 3,190,853 666,712 7,500 3,865,065 106,500 106,500 3,758,565 106,500 3,865,065 3,758,565 Sheriff - Total 614,443 8,260,642 7,646,199 7,539,565 1,009,174 217,500 8,766,239 476,679 0 476,679 8,289,560 37,147 0 476,679 8,803,386 8,326,707 Department of Corrections 134,402 778,600 644,198 125,813 685,187 811,000 133,782 133,782 677,218 133,782 811,000 677,218 Extension 500 238,812 238,312 216,918 216,918 0 216,918 0 216,918 216,918 Transfers From/To Other Funds 30,000 0 (30,000) 0 491,078 491,078 (491,078) 491,078 0 (491,078) Total - Revenue Fund 3,479,273 17,645,894 14,166,621 13,340,693 4,924,204 326,300 18,591,197 3,762,426 0 3,762,426 14,828,771 286,853 0 3,762,426 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 6,603,996 349,418 255,472 8,779,222 15,477,164 6,697,942 Capital Projects 80,000 701,305 621,305 68,000 268,700 336,700 10,000 10,000 326,700 10,000 336,700 326,700 Capital Projects - Highway 2,625,000 1,968,090 (656,910) 2,101,001 330,000 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 1,063,388 896,038 1,044,068 1,044,068 167,475 167,475 876,593 167,475 1,044,068 876,593 Tax Abatements (Fund 70) 0 0 0 24,738 24,738 0 24,738 0 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 20,912,275 0 20,912,275 9,237,208 374,418 255,472 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 24,674,701 0 24,674,701 24,065,979 661,271 255,472 24,930,173 49,401,951 24,471,778 Prepared by the Office of County Administrator Page 7 12/14/2021

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

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

Proposed Revenue/Transfers-In Summary 2021 Revenue 2022 Revenue $ Change from 2021 % Change from 2021 Notes Commissioners $0 $0 $0 0.0% General Government 195,000 180,000 (15,000) -7.7% Reduced MCIT dividend Public Defender 0 0 0 0.0% Auditor/Treasurer 978,091 852,391 (125,700) -12.9% Reduced interest income Attorney 216,000 233,000 17,000 7.9% Land Services 315,400 411,800 96,400 30.6% Improving filing revenue (from recorded documents) Administrator Administration 0 0 0 0.0% Emergency Management 24,000 24,000 0 0.0% Information Technology 441,481 388,940 (52,541) -11.9% Adjusted internal service charges to Human Services Property Management 278,832 277,832 (1,000) -0.4% Veterans' Services 0 0 0 0.0% Administrator - Total 744,313 690,772 (53,541) -7.2% Department of Development 251,124 292,924 41,800 16.6% Increased transfer-in from recording fees for GIS function Other Agencies 0 0 0 0.0% Sheriff's Office Sheriff 357,943 370,179 12,236 3.4% Increased State Police Aid (formula-driven) Jail 256,500 106,500 (150,000) -58.5% Continued declines in boarding revenue Sheriff - Total 614,443 476,679 (137,764) -22.4% Department of Corrections 134,402 133,782 (620) -0.5% Extension 500 0 (500) 0.0% Transfers From/To Other Funds 30,000 491,078 461,078 0.0% Add a transfer-in from ARPA funding for Jail revenue losses Total - Revenue Fund 3,479,273 3,762,426 283,153 8.1% Other Funds Highway 4,448,528 8,756,050 4,307,522 96.8% Growth due to larger 2022 road program (State Aid, Local Road Fund) Human Services 8,375,511 8,523,750 148,239 1.8% 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 3,455,000 830,000 31.6% Growth in local option sales tax, plus $330,000 transfer-in for capital equipment Debt Service 167,350 167,475 125 0.1% Tax Abatements (Fund 70) 0 0 0 0.0% Total - Other Funds 15,696,389 20,912,275 5,215,886 33.2% Grand Total - All Funds $19,175,662 $24,674,701 $5,499,039 28.7% Prepared by the Office of County Administrator Page 10 12/14/2021

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 92,236 10 Administrator One Additional Human Resources Staff 82,780 82,780 82,780 11 Administrator Parks Consulting Services 10,000 10,000 10,000 12 DoD None submitted 13 Outside Agencies See Outside Agency for Details 74,534 74,534 56,000 14 Sheriff's Office Permanent Part-Time Investigate Aid Position 29,742 29,742 29,742 15 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 7,405 17 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 $286,853 20 Highway Crack filler 25,000 25,000 25,000 Total - Highway Fund $25,000 $0 $25,000 $25,000 21 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 15,957 23 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 $15,957 26 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

Summary of Funding to Outside Agencies Adopted 2021 2022 Request Requested $ Increase from 2021 2022 Proposed 2022 $ Chg from 2021 2022 % Chg from 2021 APO (JPO) 170-151 6,792 4,184 (2,608) 4,184 (2,608) -38.4% Historical Society 170-153 12,070 13,070 1,000 13,070 1,000 8.3% Humane Society 170-154 2,000 4,800 2,800 2,000 0 0.0% Initiative Foundation 170-155 5,700 5,700 0 5,700 0 0.0% Great River Regional Library (JPO) 170-156 531,834 526,318 (5,516) 526,318 (5,516) -1.0% SWCD 170-157 239,500 246,500 7,000 244,500 5,000 2.1% RSVP 170-158 15,000 18,234 3,234 15,000 0 0.0% Smart Moves (Boys and Girls Clubs) 170-159 6,700 6,700 0 6,700 0 0.0% United Way 2-1-1 170-160 3,000 3,000 0 3,000 0 0.0% Council on Aging 170-161 2,534 2,534 0 2,534 0 0.0% Greater St. Cloud Development Corporation 170-162 7,500 10,000 2,500 7,500 0 0.0% Central MN Child Advocacy Center 170-163 2,500 10,000 7,500 2,500 0 0.0% Career Solutions 170-164 1,000 1,000 0 1,000 0 0.0% Central MN Emergency Services Board (JPO) 170-166 5,004 5,622 618 5,634 630 12.6% CARE 170-167 7,500 8,000 500 7,500 0 0.0% Highway 23 Coalition 170-168 0 3,000 3,000 3,000 3,000 0.0% Benton Economic Partnership 170-701 75,000 125,000 50,000 125,000 50,000 66.7% Totals $923,634 $993,662 $70,028 $975,140 $51,506 5.6% (JPO = Joint Powers Organization) Prepared by the Office of County Administrator 12/14/2021 Page 13