Truth in Taxation meeting held

Six public members braved the cold, winds, and falling snow to attend the Tuesday, November 29 Truth in Taxation meeting held in the commissioners’ room at the courthouse to discuss the county’s proposed 2023 budget and levy.

This last summer, commissioners asked department heads to estimate their department’s needs for programs and services and the cost of those programs and then present those figures to the board. Then, from August through September, commissioners used that information to set a preliminary 5.5 percent levy increase and budget for 2023. Commissioners can choose to keep the levy at 5.5 percent or decrease it, but they aren’t allowed to increase it under state law.

According to Auditor/ Treasurer Braidy Powers, “The taxing authorities in Cook County include the county, school, hospital, city, three towns, EDA, ARDC, and the State of Minnesota. In addition, almost 40 percent of all property taxes collected in Cook County are for taxing entities other than Cook County.”

Where do tax dollars go? Cook County receives 62 percent of levied funds while special taxing districts (hospital, EDA) receive 10 percent. Cities and towns get eight percent, ISD 166 six percent (not including referendum funds), the State General Tax is eight percent, Fiscal Disparities four percent, and Volunteer Fire Departments (VFD) get two percent.

The 2022 budget was $34,489,485, while the proposed 2023 budget is six percent less, or $32,596,381. However, proposed property taxes for 2023 ($11,601,646) are 5.5 percent higher than in 2022 ($10,997,105).

Powers states that driving the 2023 budget is a mix of economic factors, continuing unknowns, and some new initiatives. One of the unknowns is what the US Department of Agriculture will appraise the Boundary Waters lands at. Every ten years, an appraisal is done with that appraisal money sent to Cook, Lake and St. Louis County in annual payments in-lieu-of-taxes. In 2019 the appraisal resulted in a drop from $2,025 million to Cook County to $1.273 million, a 37 percent reduction.

Following that announcement, Cook, Lake and St. Louis County requested a reappraisal in 2022 to address the appraisal methods used. A final determination from the UDA is expected in early 2023. Meanwhile, the county has been getting funding based on the previous 10-year appraisal but has been holding back $550,000 each year in case the 2019 appraisal is upheld.

Other budget drivers include a 7.5 percent health insurance increase for 2023; a 3.5 percent cost of living increase granted to employees for 2023; a $120,000 technology fund for the Sheriff ’s department, and a one-half-time MIS IT staff support person and a full-time person hired to work one-half time for Land Services and one-half time as the Park/Trail Director.

Following the Truth in Taxation meeting, commissioners will see if they can make any changes to the proposed budget and then set the final levy and budget at their last meeting in December.