Sherburne County is in an economic upswing.

 

That was the conclusion of a report presented by Assistant Administrator Dan Weber to the county commissioners last week.

 

Each year, Weber gives an overview of county economic trends as part of the budget process.

 

Last week, Weber said there’s a lot of good news about the county’s economy.

 

He said even though the tax levy has increased slightly over the past few years, the growth in the tax base has continued to outpace the levy hike.

 

“So the tax rate has dropped each of the last three years,” he said.

 

The main reason is growth. Sherburne County is the fastest growing county in the state. A report released in late March showed the county’s population increased 2.08% in 2016, compared with 0.68% in Minnesota and 0.7% nationwide.

 

New home construction, stagnant for many years, continues to increase. There were 140 new single-family homes built in the county in 2012. Last year the number reached 375, with 29 new home permits issued already in 2017 compared to 15 over the same period last year.

 

Home values have also continued to rise. The average home value in 2011 was $176,963. In 2016, the number was $230,462.

 

Overall new construction, which includes commercial and industrial, was up 12% in 2016 and has seen a 50% increase since 2013, from $61.3 million to $90.4 million last year.

 

The number of foreclosures continues to dwindle, from 828 in 2010 to 158 in 2016.

 

“We’re still sixth highest in the state, but we’re getting better,” said Weber.

 

Property tax forfeitures have dropped significantly, from 171 in 2000 to 22 last year. And 99.1% of property taxes were collected in 2016, compared to 97.6% in 2011.

 

Even with population growth, the county continues to be efficient with its staff. Since 2000, the number of people in the county has increased from just over 86,000 to 93,000. Over the same period, the number of county employees has increased from 620 to 641.

 

“Population has grown 7.5%. Staff growth is about 3.5%,” said Weber. “Staff and the county board has done a good job keeping the number of positions as low as possible.” 

 

 Much of the staff growth has been a result of mandates in MNsure and child protection. 

 

“A lot of other department  have actually seen decreases in the staff numbers due to technology,” said Weber.

 

With the board about to start working on the 2018 budget, Weber said there are some challenges, even in a good economy.

 

“A lot of employees are reaching retirement, and the applicant pool is not as deep as it used to be,” he said. “The labor market is tight not only for manufacturing and skilled labor, but also in county government.”

 

The county has signed contracts with all 11 labor groups, said Weber. But the 2.5% wage hike will have an effect on the budget.

 

There is still a lot of uncertainty with the Affordable Care Act and MNsure.

 

County Program Aid is always a guessing game, said Weber. Formulas show a range of a $45,000 decrease to a $600,000 increase. It’s hard to set a budget with such a moving target.

 

Broadband infrastructure is still an issue in the county, although there are small strides being made.

 

The average weekly wage in Sherburne County is still about $200 less than in the seven-county Metro area, said Weber. 

 

“That’s why we see 60% of our people leave the community to go to work,” he said. “We need to keep people here.”

 

The board was scheduled to meet Thursday to talk about financing options for the $60 million Government Center expansion project.

 

The results of that meeting could also have a significant impact on future budgets.