7 Things You Should Know About The Olmsted County’s 2022 Budget

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The special hearing is scheduled for Thursday at 7 p.m. in the meeting room of the government center of the city district, 151 Fourth St. SE. The hearing includes a presentation of the budget details.

Here are a few things to know about the 2022 budget:

1. The county’s proposed spending plan increases by $ 5.6 million.

The budget for 2022 is projected to be $ 269.6 million, up from the budget approved for this year of nearly $ 264 million.

It’s a 2.1% increase in expected spending.

2. Local property taxes are the largest single source of income for the household.

41.85% of the county’s expected funding comes from an estimated $ 112.8 million in property taxes, with the remainder from interstate revenue, service fees, transportation taxes, bond proceeds, reserves, interest income, and other sources.

The expected tax collection is a 4.9% increase over the $ 107.5 million raised last year.

3. Homeowners have 64.3% of the county’s market value but pay 55.1% of the property tax.

The estimated taxable market value of all real estate in the county is nearly $ 21.8 billion, with residential real estate accounting for approximately $ 14 billion, followed by commercial real estate at nearly $ 3.8 billion, or 17.4%.

However, different property class rates mean that commercial property pays 30% ($ 33.8 million) of property taxes levied.

Homeowners collectively pay $ 63.2 million, while homes collectively generate $ 8.6 million in property taxes and agricultural land generates nearly $ 8.2 million.

“The backbone of your property taxes is home ownership,” said Mark Krupski, the district’s land registry and licensing director.

4. The HRA-surcharge remains at the maximum rate.

The district housing and redevelopment agency fee remains at 0.0185%, which is the maximum amount allowed by the state.

As property values ​​soar, the unchanged rate will generate an additional $ 156,686 over the next year to provide $ 3.9 million for district housing programs.

5. Health, housing, and social programs make up the bulk of the county’s budget.

The division, which includes a variety of government support programs, public health and housing efforts, is expected to cost the county $ 108.9 million over the next year and consume 40.4% of the county’s budget.

This is followed by the Physical Development Department, which includes public works, parks and environmental services. The division is valued at $ 105.1 million, or 39% of the budget.

While the area of ​​health, housing and social affairs bears 40.75 percent of the tax, physical development is financed with 19.88 percent of the property taxes levied.

Public security, which makes up 16.8 percent of the county’s budget, uses 34.1 percent of property tax.

6. Recommended budget adds the equivalent of 26 people.

Since the expected workforce in the district has increased from 1,259 to 1,284, District Administrator Heidi Welsch said that the ratio of employees to residents in the district has remained constant in recent years.

“If we add the population, it is obvious that we need to have more full-time jobs,” she said, referring to the full-time staffing equivalent

The county has 75 to 80 employees per 10,000 county’s residents, down from a 21-year low of about 70 in 2012 but a decline of nearly 90 in 2003, according to a graph provided by Welsch.

7. The funds from the American rescue plan could lower the tax levy next year.

District commissioners have been offered the option to use the district reserves or a portion of the $ 30.7 million federal COVID aid to help cover $ 1.3 million of the county budget, the required tax increase of 4.9 % would reduce to 3.62%.

Commissioners split 4-3 in a decision to keep the expected levy, with the minority suggesting using the one-off federal funds to cut taxes this year.

Commissioner Gregg Wright said keeping the course will allow the county to adjust for the next year rather than providing federal funding as the county continues to face the effects of COVID.

“We are faced with unknowns,” he said, along with Commissioners Stephanie Podulke, Sheila Kiscaden and Mark Thein, who maintained the preliminary recommendation for Thursday’s hearing.

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