County presents 2026 budget with modest overall increase; federal aid repeal and specific levies drive changes

County staff presented a condensed version of the 2026 proposed budget and answered questions during a public hearing; commissioners subsequently approved the budget as presented.

Key figures presented by staff: the county collected about $3,500,000 in property tax revenue in the prior year; staff projected roughly $3,600,000 for 2026 — an increase in the same neighborhood as $164,000 (a countywide tax change staff described as roughly 4.68% in total spending when the airport is included). The county auditor noted several line-item changes that produced the net effect: County General increases (driven by elections, sheriff costs and benefit increases), County Road and Bridge increases (equipment lease payments), reductions in the county jail levy because prior capital maintenance requests decreased this year, and a substantial repeal of a prior “federal aid” levy by state legislators which removed an estimated $214,000 in revenue the county had used for local cost-share on federal projects.

Unorganized road district and grant eligibility: staff explained that the unorganized road district tax base excludes townships and cities; the proposed unorganized road district tax revenue was identified as $17,653.40 in staff materials. Staff also told commissioners that the county must levy 18 mills in the unorganized road district to remain eligible for certain flex grant programs — a requirement the auditor described as a condition for qualifying for nearly $4,000,000 in potential projects.

Other budget items: the county added a one‑mill levy for senior citizens (projected to bring about $44,201.95), and a new airport levy (3.63 mills) discussed in detail during public comment. Staff said the emergency fund balance is high enough that statute/code (described in the meeting as a limit tied to expected year‑end balance) required the emergency levy to be reduced substantially for 2026. County Road and Bridge projected increases largely reflected higher lease payments and input costs for heavy equipment.

Outcome: after public comment and discussion, commissioners approved the proposed 2026 budget by voice vote. Staff will finalize levy certification and continue to brief the commission on grant matches and the use of permit funds for one‑time budget relief.

Ending: staff and commissioners noted that changes in state policy (the federal aid levy repeal and possible forthcoming legislative action on other funding mechanisms) mean near-term adjustments may be necessary; commissioners asked staff to return with monitoring reports and to coordinate with legislators on program rules affecting county revenue and grant eligibility.