Steele County commissioners approved a preliminary 2026 budget at the same total mills levied last year and discussed changes to levy rules, revenue presentation and staffing cost options during the Aug. 5 meeting.
A motion to approve the preliminary budget at last year's total mills was made and passed by voice vote. Staff described technical changes in state rules that limit how jurisdictions may increase levies (the referenced 3% cap) and warned that county bond levies and certain prior levies ("farm to market" and a 5-mill line) are no longer levied separately and will be rolled into Road and Bridge calculations. Staff said that when the separate levies sunset at the end of the year, Road and Bridge will simply show those mill rates as part of the consolidated levy, creating no immediate tax change to property owners but altering internal fund presentation.
Commissioners also discussed cost-of-living adjustments (COLA) for employees. Staff said a 4% COLA request is in the budget request; reducing to a 2% COLA would lower the wage increase line substantially. Staff estimated the difference between a 4% and a 2% COLA at roughly $60,000 to $85,000 depending on precise payroll allocations. The board did not finalize a COLA but noted the trade-offs.
Staff noted that entities receiving county funds must hold budget hearings between Sept. 8 and Oct. 10 (as required by state guidance discussed in the meeting), and the county's regular September meeting would be on Sept. 4 (the board later settled on an in-person preliminary meeting on Sept. 4 at 7:00 p.m. for budget-related items). Commissioners approved advertising and scheduling required preliminary budget hearings and directed staff to notify entities. The preliminary budget approval allows staff to proceed with required public notices and hearings; final budget and mill rate decisions will occur later in the budget cycle.