McLeod County sets preliminary 2026 levy at 2.5% to shore up highway fund

McLeod County commissioners voted Tuesday to set a preliminary tax levy for 2026 at a 2.5% increase, a move board members said is designed to restore the county Highway and Bridge Fund to the board’s fund-balance policy. Commissioner Doug Krueger moved the levy and Commissioner Wright seconded; the motion carried by voice vote.

Board members and staff said wages and benefits — which account for roughly 46% of the county’s budget — and a planned implementation of the federal Family Medical Leave Act for 2026 were drivers behind the recommendation. Paul (county staff) presented levy options ranging from 1% to 3% increases and said the county plans to use unassigned general-fund balance and social services fund balance to cover projected 2026 expenditure increases.

The budget committee recommended the 2.5% figure after discussion of the county’s fund balances and a projected $5.9 million in capital spending for 2026, including a major courthouse roof repair. Commissioner Krueger said the highway fund, which covers about 400 miles of county roads, is the county’s most pressing long-term maintenance need and that the 2.5% increase “will fix up that highway fund.” Commissioner Wright and other members noted cities and neighboring counties were watching McLeod’s preliminary numbers and praised the effort to keep the levy modest relative to others.

County staff and commissioners emphasized the levy set Tuesday is preliminary; state law and county practice allow the final levy to be the same or lower when adopted in December. County Administrator Murphy told the board employees would receive information and training about benefit changes included in the 2026 budget.

The board will vote on the final levy at a subsequent meeting in December.