Lloyd Speck spent part of his 69th birthday loudly addressing Cook County commissioners about the proposed 19.88 percent levy increase.
Speck and as many as 100 Cook County residents attended the December 1 Truth in Taxation meeting held from 6 to 8 p.m. in the Cook County commissioners’ board room, which was overflowing with people, some even standing outside listening to the proceedings.
Last year Cook County’s 8.5 percent levy increase was the highest in Minnesota. While residents were looking for relief this year, commissioners seem to have their hands tied on some of the increases because of contracts for wages and benefits that by themselves raise the 2017 proposed levy 12 percent.
Cook County Auditor/Treasurer Braidy Powers had gone over the 2017 budget before the speakers took the mike up front. Powers listed the four biggest increases to the 2017 budget. Wage increases and cost of living adjustments account for $270,420, or 3.8 percent of the levy, said Powers. The worker’s compensation study costs $115,894, another 1.6 percent to the levy. Additional staff at Public Health and Human Services cost $208,880, or 3 percent more next year, said Powers, while benefits have increased $250,922, adding 3.5 percent to the 2017 levy. Added up it comes to 12 percent, he said.
Board Chair Heidi Doo-Kirk moderated the proceedings, allowing each person two minutes at the mike. Commissioners listened and took notes but didn’t engage with the speakers.
Some who signed up deferred their two minutes to Speck.
Speck asked the board to stop funding non-mandated nonprofit groups like the Art Colony or the Cook County/Grand Marais EDA, citing St. Louis County who quit that practice years ago. He mentioned Lake County, whose commissioners receive $6,000 less annual pay than Cook County commissioners receive, and said commissioners could look at lowering their pay.
Lake County, said Speck, purchases two-year-old vehicles rather than new vehicles as one of many ways to keep its budget under control. He also said commissioners should use the reserve fund, saying no state statute governs how much a county should keep in its reserve fund. Currently, Cook County keeps 75 percent of the fund balance paid for, while Speck said many counties kept from 35 percent to 50 percent in their fund balances. “That’s the people’s money,” he said, urging commissioners to use some of those funds to lower this year’s levy.
Nevin Holmberg, Hovland, stated in the last 20 years his property taxes had doubled while the valuation of its assets had dropped. And while his taxes have gone up, Holmberg noted, “I haven’t seen any change in services.” He also said he had read about the county spending money to bring affordable housing to Cook County. “When are you going to make my house affordable?” he asked.
Don Davison testified that his taxes went up 30 percent while the valuation of his property went down 20 percent. “That’s just unconscionable,” he said.
James Vannet of Hovland asked commissioners to concentrate on setting a climate to grow businesses in the county. As companies are added more people will work in better-paying jobs and have more income and more taxes will be paid, he said.
Bob Mattson, Grand Marais, mentioned he had never attended a Truth in Taxation meeting, but with him and his wife now retired and living on a fixed income, he felt it was time to come and speak up.
He said his house was less than 1,000 square feet and he was getting a 63 percent increase in his property taxes. He said commissioners “had gone overboard,” and needed to show “some tough love” in setting the levy.
“There is a difference between what you want and what you need,” added Mattson.
Barb Heidemann defended the EDA and the money that the EDA requested. She felt the EDA was a good investment of county funds. “No one wants to move into a place that has bad schools and no amenities,” she said, adding, “If you think you know how to balance the budget, you should be up there doing it, not sniping at the commissioners.”
Cheryl Rodewald was “flabbergasted” that her property taxes went up 98 percent. “That’s ridiculous! That’s all I have to say.”
Joyce Heiskari, Grand Marais, asked how much county workers paid in health insurance, and how much the county paid for those policies.
Powers said the county contributed $1,310 per family and $504 per single employee, while single employees paid $50 per month and those with families contributed $75 per month.
“If you work for a private company employees have to pay a greater share of their insurance,” noted Heiskari.
“I am a 25-year resident,” said Jason Zimmer of Maple Hill. “I have five kids. My taxes went up 98 percent. I’m currently looking at paying over $3,000 for 1.7 acres of land and a house. Young people, veterans, elderly, can’t continue to live here if the taxes keep going up.
“Be cautious and think a little bit before you sign on that dotted line,” he advised.
From 2011 to 2016 Brad Thompson, Grand Marais said his taxes went up 275 percent and this year they went up another 57 percent. “I can’t keep doing this. Something has to change. I don’t know how to fix it, but something has got to be done.”
Dean Berglund said his property taxes climbed 135 percent. He cautioned that this wasn’t Minneapolis, which has a large pool of people to draw fees from and asked commissioners to get the county’s checkbook in order. He also said no one under 30 was going to be able to live here if taxes continued to rise.
Margaret Watkins, Grand Portage, was also concerned about increasing taxes. She said the cost of living in the county was high and it was hard, especially for younger people to be able to live here. “It troubles me that the county is putting a lot of money in maintenance for the Y, and the EDA is asking for a lot more money,” she said, adding she hadn’t seen much good come from the dollars given to the EDA over the years.
A young lady carried her three-month-old up to the front with a toddler holding a teddy bear at her side. She explained that it was difficult for her and her husband to find affordable housing. By raising taxes so much in one year, it was going to be hard for them to continue to live in the county. She said that if the young people were taxed out of the county, there wouldn’t be many kids left in the county’s schools.
Kelly Swearingen, Grand Marais, asked commissioners to consider cutting all of the departments an equal percentage to spread the pain of the cuts across the table.
Howard Hedstrom, president of the EDA, talked about the new housing EDA helped facilitate that will be built in Lutsen and Grand Marais. He said the houses would generate $36,000 per year in taxes for Cook County. The EDA, said Hedstrom, was “doing a lot of good things.”
James (Jim) Raml, a 30-year resident of the Gunflint Trail, said he hadn’t seen the EDA accomplish much over the years, and he didn’t think the $150,000 to $225,000 homes the EDA was going to build were affordable. “You have to be honest about the pay structure,” in Cook County, Raml said.
“Two Harbors doesn’t have an EDA, and they don’t want one,” said Lloyd Speck.
Another man addressed the board and said during his career he was in charge of a $27 million budget. “I couldn’t do one thing until I was in the black,” he said, adding that if the county board needed some outside expertise to help them balance the budget they might very well find it in Cook County. “Ask for a little help once in awhile,” he said.
Jim Boyd, Cook County Chamber of Commerce, came next, and he was booed. He turned to the crowd and stated that he didn’t boo anyone even though he might not agree with them, and he didn’t expect to be booed. Boyd defended the current EDA but said people had a right to be angered about the old EDA that had left a mess to clean up.
Cathi Williams, Grand Marais, asked commissioners to consider taxing some of the nonprofits. She also asked them to go after more Payment in Lieu of Taxes (PILT) money from the government and to look at attending out-of-county meetings via the Internet, rather than driving a long way and staying in a hotel and eating meals on the county’s dime.
One gentleman came forward briefly and said of Mr. Boyd’s comments, “Maybe most of the taxes didn’t go up. Maybe we are all here for the wrong reason.”
“I’m on a fixed income,” said Steve McNeally. He said he wasn’t even getting a one-half of one percent increase from the government this year, let alone 4 percent raises every year. He called on commissioners to “do the math.”
As their district representative, Commissioner Garry Gamble read a letter from Carl (Pete) and Carline Gresczyk, who were out of town and unable to attend the meeting.
“My wife and I have called Cook County home for roughly 60 years. During those years, we never appeared before the Board of Commissioners or called to complain about our taxes or county board operations. However, that has changed as we’ve become increasingly concerned that the spending has gotten out of control. We can only assume this is directly related to the decisions made by this County Board of Commissioners.
“Our property taxes have increased $1,600 in the last three years. To raise taxes/property values at these percentages doesn’t seem right. Our house value went up $34,700.00 this year. This increased our taxes by $832.00. This figure does not include the recently passed school referendum, which will be a future addition. Since 2014 the value of our house, with no improvements, has gone up $95,000.00!
“We would certainly hope this seems excessive to you.
“Tax increases on our business properties are just as bad. Again, we say, the spending has gotten out of control! The harsh reality is, our ability to generate additional personal income cannot keep pace with these increases.
“Please consider what is happening and make it a priority to control spending in a responsible effort to ease the burden on county taxpayers. If elected officials ignore the ‘real life’ impact of their decisions on the citizens of Cook County, it is our opinion they no longer represent us.”
Nick and Carol Burger were also unable to attend the meeting and sent the following letter to the board.
“My wife and I strongly oppose the ridiculously high proposed levy increase. We are unable, due to personal reasons, to attend tonight’s Truth in Taxation meeting.
“As a former government financial officer, I am appalled at the result of your budget process. If you do not have the funds available to provide basic county services, there should be no funding of: non-mandated services, EDA levy increase, workforce housing, etc. The average taxpayer cannot afford the tax increases the various taxing entities are imposing on us. The average 2017 levy increases for local governments in Minnesota are in the two to three percent range. Cook County is obviously unable to manage and control its financial obligations and responsibilities. It was promised that the hiring of a county administrator would result in better budget management. Obviously, this is not the case. There simply is no excuse for the proposed unsustainable increase.
“Certain board members have apparently abandoned the notion of representative governance in favor of cronyism. There appears to be a parallel non-elected ‘board’ directing the county board to its own agenda, regardless of the impacts and burdens on the taxpayers. These individuals have undue influence on susceptible individuals who have little or no regard for their constituents. Perhaps this is the result of electing candidates who run unopposed. The citizens of Cook County should not be subservient to the utopian whims of the Chamber of Commerce leadership, the EDA, Lutsen Mountains Ski Area and the Wealthy Elite.
“It’s time for the county board to return the governing of the county to its citizens.”
Leave a Reply