Woodbury County supervisors use reserves, set no-change property tax rate for FY27
Loading...
Summary
The Woodbury County Board of Supervisors voted to reduce budgeted property tax revenue and shift reserves and transfers to cover projected shortfalls in FY27, signaling no countywide levy increase for the coming year. The board also approved a $173,448 transfer adjustment to avoid a negative balance in general supplemental funds.
The Woodbury County Board of Supervisors voted Tuesday to adjust FY27 budget lines and rely on reserves to avoid increasing the countywide property tax levy.
In a motion that passed unanimously, supervisors reduced property-tax revenue targets for general supplemental and rural basic funds so the mailed notices will show a "no change" levy. Board administration staff projected general basic cash of about $9.66 million (roughly a 23% reserve) and recommended shifting budget lines and transfers to prevent a deficit in general supplemental.
Ryan Erickson, board administration, presented the fund-level summary and three options to address a projected shortfall in rural/general supplemental: increase the levy, lower transfers to secondary roads, or reduce expenditures. Erickson said payroll and health-insurance increases account for the bulk of the FY27 cost growth and that many line items (library, landfill, rebates) are set outside county control.
The board approved a specific motion to lower the transfer from general supplemental by $173,448 (mover: Ong; seconder: Nelson). The change reduces the budgeted transfer and leaves general basic reserves above the county's 20% guideline, Erickson said.
Supervisors also directed staff to reduce the property-tax revenue lines so the property-tax notice will reflect no change compared with last year (general supplemental revenue set to $15,720,173; rural basic revenue set to $3,943,952). The motion (mover: Ong; seconder: Bittinger) passed 5-0.
Discussion during the budget review centered on an open deputy position, estimated at about $125,000 all-in, and whether to fund the vacancy out of reserves, reassign it to a different fund, or seek cost-sharing agreements with smaller municipalities. A county participant, Chad, described ongoing work to model a 20/80-style cost-share for towns that receive sheriff coverage and said the county has historically provided some town coverage without charge.
The board received staff advice that there is no state mandate on reserve levels but that Woodbury County policy sets a 20% target for general basic reserves; staff noted any fund that goes negative must be corrected promptly. Erickson said the recommended adjustments preserve reserve policy while avoiding a levy notice that would alarm taxpayers.
Votes at a glance - Motion to lower transfer from general supplemental by $173,448: approved (motion by Ong; second by Nelson). Outcome: approved, voice vote 5-0. - Motion to set property-tax revenue lines to reflect no-change levy (general supplemental $15,720,173; rural basic $3,943,952): approved (motion by Ong; second by Bittinger). Outcome: approved, voice vote 5-0. - Other routine motions (agenda, consent agenda, bid authorizations, participation in opioid settlement): approved, see meeting minutes.
What happens next Staff said they can produce revised worksheets for next week's packet and will prepare the final numbers for the public budget hearing. The board signaled it will use reserves and targeted transfers to hold the countywide levy steady while continuing to seek operational savings and potential intergovernmental revenue agreements.
