Woodbury County supervisors move $600,000 from discretionary funds to lower proposed property tax levy

The Woodbury County Board of Supervisors voted to move $300,000 from local option sales tax reserves and $300,000 from county gaming revenues into the county debt service fund to reduce the county’s proposed FY2026 maximum property tax levy.

The transfers passed 4-1, with Supervisor Carper voting no. The board’s action came after a lengthy discussion on options for using LOST and gaming balances to offset deficits in the county’s operating funds and to lower the debt-service portion of the proposed levy mailing.

County staff described the transfers and the budget context. Tina Bertrand, Woodbury County Treasurer, outlined two related resolutions the board approved after public hearings: procedures to issue taxable general obligation capital loan notes for FY2025, not to exceed $700,000, and a second separate issuance not to exceed $500,000. Bertrand said the two issuances split projects recommended by bond counsel and that they make up part of a $1.2 million pre-levy financing plan for capital improvements.

Michelle (county staff, budget/finance) warned the board that the county’s general-basic and general-supplemental funds face shortfalls and explained how transfers would affect the levy mailing and the county’s reserves. “We’re we’re maxed out on general supplemental right now,” Michelle said during the session as the board reviewed estimated fund balances and the tax-notice format.

Following the $600,000 transfer motion (300,000 LOST + 300,000 gaming), the board approved the FY2026 maximum-county-tax-rate mailing with the $600,000 debt-service reduction reflected. The board voted 5-0 to approve the mailed “notice of public hearing — proposed property tax levy” that will be published and distributed to taxpayers; staff said the mailing data files are due the following day and the notices should be in taxpayer hands by the 20th of the month.

The board also closed two public hearings on the capital loan authorizations before approving the resolutions. The board was told the proceeds will cover capital improvement projects already approved by the county, including IT work and demolition-related costs at a county facility (referred to during the session as the LAC).

The board asked staff to continue reviewing budget reductions submitted by departments and to consider further transfers before final levy decisions are made. Supervisors repeatedly cautioned that using discretionary funds now reduces the county’s cushion for unexpected expenses during the fiscal year.

Votes at a glance - Motion to transfer $300,000 from LOST and $300,000 from gaming to debt service; mover: Bittinger; second: Nelson; vote: 4 yes (Bittinger, Dietrich, Nelson, Matthew), 1 no (Carper); outcome: approved. - Resolution instituting procedures for issuance of taxable GO capital loan notes not to exceed $700,000; vote: 5-0; outcome: approved. - Resolution instituting procedures for issuance of taxable GO capital loan notes not to exceed $500,000; vote: 5-0; outcome: approved. - Approval of FY2026 maximum county tax rates and the audited-budget mailing (with the $600,000 debt-service reduction reflected); vote: 5-0; outcome: approved.

Why it matters: The transfers reduce the county portion of the proposed FY2026 levy by lowering the debt-service requirement in the mailed “max levy” notice. Board members said the move can blunt taxpayer concern about the initial maximum rates, while staff cautioned that drawing down discretionary funds reduces the county’s reserves for emergencies and one-time needs.

Next steps: Staff will submit the mailer files for publication, continue departmental budget reductions, and bring any additional transfer or technical motions back to the board if needed.