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ITEM 1_Mark DaleidenJNT Y o� v° i► 7855 �2 to O dy 2019 Budget 2018 County Budget • 2018 budget was set at $128,538,676 2018 levy was $62,680,533 a 7.73% increase • Tax capacity growth absorbed 7.07% of levy increase New Justice Center District Court Administration • County Attorney's Office Nine Court Rooms • Probation Services • Holding Cells for Courts Directly connected to Law Enforcement Center County Technology Wright County is strengthening management of technology projects This process identified shortfalls and areas that need to be addres< 1.) Lack of technology staff to meet County needs 2.) Too many separate systems vs. a cohesive platform to exchan� internal information. ERP (Enterprise Resource Planning) system County Ditch Management In Q4 of 2017 County Board hired a County Ditch Coordinator Begun the process of redeeming benefited rolls on 16 of the 43 county ditches Decades -old ditch records have been located and are being scanned and filed in the drainage database system 10 ditch repair projects have been started or completed in 2018 2019 Budget Forecast -1 2019 budget set at $147,090,953 2019 levy $73,524,014 which is a 17.30% preliminary levy increase • Tax capacity growth estimated at 7.17% of levy increase • The levy percentage increase is NOT the same as the property tax percentage increase Major Budget Impacts �� ��Ell rlI Fa D. � � 1� "�� ...y, 603542", X54 F d use crf Fund Preapproved Prea ppruved staff New Debrt ComP/C lass ®.ala:.re Wages/Benefits, Dela Service Reque-sts Service EL I rsLara: rice CPdhmw 2,747..490 1,374..450 1..046..421 Z., f!DDr 2..5w..Ow 53,799 What's driving the 2019 Budg -1 Funding capital improvement projects without using reser Need to attract and retain employees within the County • The prior inaction on County building needs Financial models show issues will compound if not dealt with now 2019 Budget Revenues Other 7% Charges for Services 13% State Categorical Ald 15% State General Purpose A 4% Federal Grants 11% Property Ta,,,,es 2019 Budget Spending Highway Construction 14% Debt Service 7% Miscellaneous 3% Culture and Recreation J 1P Public Health 3% Capital Outlay 4% General Government 20% Highway Operation Human Services 89% 17% PublicSafety 21'% Currently Working On • Future of current Government Center in downtown Buffalo A potential partnership with the FBI and Wright County in building a Law Enforcement Training Center • A compensation and market study to address wages and job classifications — helping to attract and retain talented employees Future Challenges Increasing out -of -home placements of children/adults in County due to drug abuse and mental health issues Increasing needs for multi-level mental health facilities and care within or near the county ® Future of the Monticello Nuclear Power Plant Early closure or loss of re -licensure in 2030 Property tax reduction Loss of jobs within the County Growth -1 Population forecast increase of 26% in the next 20 years Per capita spending among 10th lowest, while county is 10' • Challenging to be at the bottom for spending, and near tol a Growth increases tax base, yet increases needs — careful b, * Be forward -thinking vs reactive - establish long-term solm 180,000,000 160,000,000 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 Past Capacity vs. Tax Rate, 207 County Tax Capacity 2012 2013 2014 2015 2016 2017 2018 2019 46.000% 45.000% 44.000% 43.000% 42.000% 41.000% 40.000% 39.000% - 38.000% 37.000% 36.000% - 2012 2013 2014 2015 2016 2017 2018 2019 County Tax Ra Taxes 101 -� Property Value & Classification x State classification rate = Tax capacity ® All individual tax capacities added together = Total tax cal Levy /Total Tax Capacity = Tax Rate Tax rate x Individual Tax Capacity = Taxes you pay Forecasted 5 -year outlook — Total Tax Capacity TAX CAPACITY 220,000,000 210,000,000 200,000,000 190,000,000 180,000,000 170,000,000 160,OOO,000 190,000,000 140,000,000 2018 2019 2020 2021 2022 2023 -2% TC Increase ®6% TC Increase • Growth range 2%-6% • Board selected 4% estimated increase in planning models • Other factors can impact the rate of increase Forecasted 5 -year outlook — Tax Rate County Tax Rate 60.000% 55.000% • Growth range 2%-6% 50.000% • Board selected 4% 45.000%estimated increase in planning models 40.000% 35.000% • Forecasting minimal 30.000% changes in tax rate for 2018 2014 2020 2021 2022 2023 next 5 years �2%TC Increase -6% TC Increase 220,000,000 210,000,000 200,000,000 190,000,000 180,000,000 170,000,000 160,000,000 150,000,000 140,000,000 Forecasted 5 -year outlook TAX CAPACITY County Tax Rate 60.000% `400— — 55.000% 50.000% 45.000% 40.000% 35.000% 30.000% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2023 -2% TC Increase -6% TC Increase �2%TC Increase -6% TC Increase 2023 4� How Do We Stack Up? Wright County 39.9 44 Stearns County 52.5 51.1 Sherburne County 50.8 48.0 Benton County 64.3 61.0 Levy EQD Net Tax Capacity o Tax Rate What Does This Mean? V �� Proposed increase impacts a residential property wit value of $290,000 by $120.74 01 N 0 Commercial property with a taxable value of $327,300 would see WW increase ncrease of $240.65 • Agriculture property with a taxable value of $340,300 would see �� an increase of $70.65