Crow Wing County adopts 2026 preliminary levy after HRA funding amendment fails

The Crow Wing County Board of Commissioners adopted a preliminary property tax levy of $50,839,879 for 2026 — a 6.49% increase over the 2025 levy — after hearing a detailed presentation on a new five‑year operational budget and a sustained public and commissioner debate about funding for the Crow Wing County Housing and Redevelopment Authority (HRA) housing trust fund.

Nancy, a county finance staff member who led the budget presentation, told the board the county completed its first five‑year operational budget and after four rounds of changes is proposing a 2026 preliminary levy of just over $50.8 million. “This is our first 5 year operational budget for the county,” Nancy said, describing the goal of smoothing peaks and valleys in revenue and expense planning. Her slides showed total revenues for 2026 projected at about $115.8 million and total expenditures at $121.5 million, with personnel services and highways contractor fees representing sizable cost drivers.

Nancy and county staff described key drivers and highlights: a projected $3.0 million increase in the property tax levy, an estimated $3.5 million increase in intergovernmental revenue (including highway state aid and federal highway grants), a 7.7% increase in personnel services (about $4.5 million), and a $10.2 million increase in services and contractor fees driven largely by highway projects. The county also presented a seven‑year capital improvement plan with 84 projects estimated at about $8.4 million for 2026 and examples ranging from a $398,000 roof replacement to a $500,000 road grader.

Staff explained the difference between the levy and individual property tax impacts: because tax capacities and market values change, a levy increase does not automatically translate to the same percentage increase in an individual taxpayer’s bill. “Levy is the total dollar amount of the spending increase… it is not a 1 to 1 equation to say if the levy is going up 6.49%, your tax is going to go up 6.49%,” a county staff member said while answering commissioner questions.

The meeting then turned to the Crow Wing County HRA housing trust fund, which was included in the resolution packet with a proposed HRA levy of $412,626. One commissioner moved to increase the HRA levy by $200,000 — changing the HRA line to $612,626 — and the motion was seconded to allow discussion. The motion failed after public comment and commissioner debate.

Commissioners and community members both spoke in the debate. HRA housing rehab coordinator Schomer described the trust fund’s programs and eligibility: “Everything that we do for housing rehab is income based,” he said, and added that HRA‑administered rehab dollars are targeted to health‑and‑safety work, not cosmetic improvements. Schomer cited examples including replacement of dozens of windows in a low‑income household and an eight‑unit apartment rehab application in Oak Lawn Township that would require rent restrictions on at least 51% of units for the loan term.

Business‑community advocate Tyler (an HRA board appointee and mayor of Pequot Lakes) urged continued support for the trust fund as a tool to attract and retain workers: “Where are those people gonna live? It’s very, very challenging… We need more affordable housing here,” he said, citing examples of employers expanding and the need for workforce housing to fill new jobs.

Opponents — including citizens and some commissioners — argued the HRA has made questionable decisions in the past and that additional levy dollars are an unacceptable tax burden for fixed‑income residents. One resident noted that even a levy increase that appears small per household adds up for seniors on fixed incomes.

After public comment and discussion, the board voted on the motion to increase the HRA levy; the amendment failed. The board then approved the full preliminary levy resolution as presented in the packet. The resolution includes the Crow Wing County HRA levy at $412,626 and separate levies for the unorganized territory First Assessment District ($1,412,463) and Second Assessment District ($99,999). The board’s preliminary levy adoption begins the statutorily required process; final tax rates and taxpayer impacts will be calculated after property tax capacities and market values are available later in the year.

Votes at a glance - Approval of minutes (09/09/2025) — motion passed (motion: Commissioner Franzen; second: Commissioner Coring). - Approval of meeting agenda — motion passed (motion: Commissioner Franzen; second: Commissioner Coring). - Consent agenda approval — motion passed (motion: Commissioner Franzen; second: Commissioner Coring). - Preliminary plat: Leffler Acres (parcel 53040576) — motion passed (motion: Commissioner Lee; second: Commissioner Franzen). - Motion to increase Crow Wing County HRA levy by $200,000 (change HRA levy from $412,626 to $612,626) — motion failed after discussion and public comment. - Adoption of preliminary 2026 tax levy (total county levy $50,839,879; includes HRA levy $412,626; First Assessment District $1,412,463; Second Assessment District $99,999) — motion passed (motion: Commissioner Franzen; second: Commissioner Coring).