Kandiyohi County sets preliminary 2026 levy at 7.1% after budget discussion

The Kandiyohi County Board of Commissioners on Sept. 23 voted 3–2 to approve a preliminary property tax levy for 2026 that represents a 7.1% increase over the current levy, adopting Resolution 2025‑33 and scheduling final levy certification for December.

County Administrator Kelsey Baker framed the discussion around three levy options and the county’s reserves, telling commissioners, “As the board chair mentioned, today we'll be discussing the 2026 budget. And, at the end of today's work session meeting, we will be asking for a resolution to approve that preliminary budget, whatever number that is.” Baker said staff recommended the 7.1% option but presented a lower 5.8% alternative that would rely on additional reserves and noted the county’s audited 2024 statements would be presented to the board in October before the final levy decision.

Baker described payroll and benefits as the largest cost driver in the proposed 2026 budget, saying the general fund comprises roughly 54.96% of the county’s budget and that payroll (including part‑time and seasonal staff) accounts for about 45% of total spending. She reported full‑time wage costs for 2026 at about $38,000,000 and a total payroll figure near $45,000,000. On reserves, staff presented three approaches: an option using more reserves to reach a 5.8% levy (cited in the packet as using about $1,600,000 in reserves), the staff‑recommended 7.1% option (described in the presentation as using about $1.15 million in reserves), and a higher levy scenario that had been shown earlier in the process.

Baker urged caution and flexibility, saying, “Using reserves strategically and flexibly can really help us as well when we look to the future of using our fund balances.” She also pointed commissioners to the upcoming audit presentation; several commissioners said the audited totals would inform their final vote in December.

Commissioners debated the tradeoffs between lowering the levy now and preserving reserves for future years. Commissioner Dwayne Anderson said, “I want to keep the levy low if we can, but I also want to go with what the staff was recommending,” and favored giving staff time to finalize the audited numbers. Commissioner Dale Anderson said he had talked with constituents and preferred a middle course: “I'd like to keep it probably the middle option, and we can always lower it down in November or December.” Other commissioners raised concerns about federal and state cost shifts (including possible Medicaid impacts) and the difficulty of tracking which levy dollars fund one‑time capital items versus ongoing payroll.

The board voted on Resolution 2025‑33 setting the preliminary 2026 property tax levy at a 7.1% increase and choosing the staff‑recommended figure for certification today. The roll call recorded two no votes and three ayes: Commissioner Emtek (no), Commissioner Berg (no), Commissioner Dale Anderson (yes), Board Chair (aye), and Commissioner Dwayne Anderson (aye). The resolution passed 3–2.

The county’s auditor is scheduled to present the 2024 audited financial statements at the second meeting in October. The board must set the final 2026 levy at the December meeting, at which time commissioners may certify a levy equal to or lower than the preliminary figure but not higher.

Votes at a glance

Resolution 2025‑33 — Preliminary 2026 property tax levy Motion: Adopt the preliminary 2026 proposed property tax levy of $44,416,002.87 (7.1% increase) as presented in the administrator’s packet. Mover: not specified in transcript Second: not specified in transcript Vote (roll call): Commissioner Emtek — No; Commissioner Berg — No; Commissioner Dale Anderson — Yes; Board Chair — Aye; Commissioner Dwayne Anderson — Aye. Outcome: approved (3–2).