Tuesday, the county board certified the 2015 preliminary levy at $42,455,675, a 2.5% increase over the 2014 levy of $41,420,261.

 

Since 2010, the commissioners have made it a goal to keep the levy from increasing during tough economic times.

 

Tuesday, Administrator Steve Taylor said the county has actually lowered the levy over that period.

 

“Since 2010, the overall county levy has been reduced by a total of one percent if you factor inflation into the equation,” he said. “The county has actually cut the levy by over 11%, or $4.6 million if you were to include inflation.”

 

Taylor said there are signs the economy is improving and county staff is getting busier.

 

“When you compare the first six months of this year to last year we see a couple of things,” he said. “We see building permits up over 17%; new home permits up 30.7%; more subdivision plats this year than all of last year. Loan applications are increasing. Home values are increasing by eight percent countywide as an average.”

 

Over the past five years the county kept the levy increase at zero, sometimes  through layoffs, work furloughs, zero or minimal salary increases and by not filling vacant staff positions.

 

“We are starting to see some early signs of growth.

 

And in addition to growth, over the past five years we’ve seen pressure on the budget due to annual increases in inflation, wages and health insurance,” he said.

 

“In 2015, we will see a 10.4% increase in health insurance. For these reasons and others, staff is recommending a preliminary levy increase in 2015 of 2.5%.”

 

Taylor said the 2015 budget also accommodates some new priorities the county board wants to focus on, including funding for expanding economic development, technology investments, staff realignment and to pay for performance for non-union staff.

 

Commissioner Ewald Petersen asked whether the final levy could be affected by some issues that are still unresolved - specifically, union negotiations.

“We’ve got five arbitrations. Would that make a significant change if we were to lose all of them?” he asked.

 

Taylor said the arbitration issue could definitely affect the levy, calling it a “wild card.” He said staff salaries and benefits make up between 50 and 51% of the levy. But he said the overall levy amount couldn’t be increased, only lowered for the final levy which is due in December.

 

“This is the ceiling,” he said. “It can only go down.”

 

“Does that mean cuts in other things in the budget? Staff?” asked Commissioner Rachel Leonard. “I’m hoping it doesn’t.”

 

“We’ll look at all of our options,” said Taylor.

 

The board also certified the Regional Rail Authority levy at $1,797,100 - a $5,000 increase over the 2014 levy.

 

Taylor said there is a good chance that number will be reduced in the final levy because of reimbursements the county receives from the Met Council for NorthStar operations.