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Pine County presents proposed 2026 budget, preliminarily raises levy 2.6%
Summary
County staff presented a proposed $60 million 2026 budget — a $7.1 million increase from 2025 — and a preliminary 2.6% property tax levy increase. Officials said much of the expenditure growth is project-driven, with a $6.3 million spike in highway projects; the final levy is slated for adoption Dec. 16.
Pine County staff on the county’s Truth in Taxation night outlined a proposed 2026 budget of about $60 million and a preliminary property tax levy increase of 2.6% from 2025. Kelly, a county staff presenter, said the county’s total expenditures are projected to rise roughly $7.1 million from 2025 to 2026, and that almost $6.3 million of that increase is tied to highway projects in the county’s multiyear road plan.
The proposed budget covers multiple levied funds, including the general fund, highway/road and bridge, technology, and debt funds for bonds tied to the jail and courthouse. “The bond funds…the levy dollars are the required amounts that are in the bond documents,” Kelly said, explaining that those amounts are fixed by bond covenants rather than the board’s discretion. County staff emphasized that the elections fund is now levied annually at a smaller amount to smooth spikes between election and non‑election years.
Why it matters: the county plans to use some one‑time and reserved funds to reduce shortfalls while continuing large, planned construction work. Kelly said the general fund faces a roughly $517,000 shortfall in the proposed budget but that $350,000 of reserves are planned to be used to moderate that deficit. “That $350,000 planned spending of reserves is savings that we saved in 2025 by making some hard decisions in 2025,” Kelly said.
Staff also reviewed revenue composition and how property taxes are calculated. Kelly provided a tax‑capacity example, saying the county’s aggregate tax capacity for 2026 was about 54,456,082 and that the county levy of roughly $23.4 million produces the county’s portion of the tax rate. Using Kelly’s example, a $250,000 homestead with a tax capacity of $2,500 would pay an estimated $1,073 for the county portion under the proposed rate.
County officials noted several restricted or one‑time revenue sources. Kelly said the county will spend remaining opioid‑settlement funds on treatment and related programs, and that around $677,000 of COVID‑19/ARPA funds remain to be spent by the end of 2026. “2026 is the last year we could spend any of that COVID funds,” Kelly said.
Behind the headline numbers are common local government cost drivers: salaries (about 39% of expenditures countywide), benefits, and project‑based spending. Kelly told the public that salaries and benefits countywide increased roughly $566,000 for 2026. The highway fund will comprise the largest single share of next year’s spending because of the large construction season planned.
Next steps: Kelly said the board will consider the final budget and levy at its Dec. 16 meeting and that residents with parcel‑specific questions should consult the assessor’s office, which was available after the meeting.
