Aitkin County outlines 2027 budget timeline, flags salary and health‑insurance pressures

Auditor Kathleen opened the Committee of the Whole discussion by saying, "So, yes, this discussion is regarding the 2027 budget process," and reviewed the schedule and the county's workflow for department budget submissions and consolidated entry into the IFS financial system.

Kathleen told commissioners department budget packets were distributed in May and that all departmental submissions are due to the auditor's office on June 29 for entry into the county's integrated financial system. She said staff will download IFS into summary spreadsheets to inform the budget committee and the full board as they consider preliminary levy options and whether to use one‑time cash balances or permanent levy increases.

As planning assumptions for 2027, staff said they are budgeting a 7% salary increase and a 10% health‑insurance increase to allow contingency for employer premiums that will not be finalized until later in the year. "We always do a 10% health insurance budget number just to accommodate," Kathleen said, noting the actual vendor rate is typically not known until October or November.

Staff and commissioners discussed practical steps to align the county's capital improvement plan (CIP) with budget object codes so planned capital shows in the ledger (object-code 6600 for capital). Auditor Kathleen emphasized that some departments have been saving for capital items but not formally reserving those dollars, so funds have been rolling back into the general fund instead of being earmarked for replacement projects. "You have money being saved but not separated out each year; it's just not earmarked for that specific thing," staff summarized.

Jim Bright, describing his department's experience, said he had "been putting away money for a new maintenance truck... you don't have any money reserved for that because it just got rolled into the general fund" and urged clearer earmarking so departments can rely on reserved funds when replacements are due.

Staff identified program-level pressures likely to affect 2027: Health and Human Services will be sensitive to both the salary and insurance assumptions because of its headcount; community corrections is watching state legislative decisions on supervision and correctional fees; and the recorder's tech fund no longer has the same balance to cover pictometry, meaning the county may need to decide whether to fund imagery again (estimated ~ $80k–$82k annually).

On fund balances, Kathleen reported the county's audited 2024 unassigned general fund balance was $10.8 million (with a larger total fund-balance pool of roughly $17.6 million) and said those funds are typically used for one‑time capital rather than ongoing operations. She outlined the December Truth in Taxation timing and deadline requirements for setting the levy by Sept. 30 and noted the county will present a preliminary levy to the full board in September for discussion.

Commissioners asked staff to provide clearer scenarios for the budget committee showing (a) levy impacts if the county absorbs various portions of salary and insurance increases, (b) the effect of dipping into fund balances for one‑time capital, and (c) program‑specific projections for HHS, highway, and sheriff departments. Staff said they will return with those figures as departments finalize their submissions.

The committee adjourned without taking any budget votes at this session.