County Board sets preliminary levy increase

After considerable discussion surrounding the county budget and a new circumstance with funding spent toward supporting the libraries in Waseca County communities, members of the county’s board of commissioners voted on Sept. 16 to set the preliminary levy increase for taxes payable in 2026 toward county government operations at three percent.

 

Oddly, due to anomalies in statewide property tax law, county administrator Michael Johnson stated the increase will lead to a slight decrease in county-designated taxes paid in most categories, including agricultural, commercial and industrial property and high-end residences. Taxes paid toward county government on typical homes will likely increase by less than one percent.

 

Commissioners were uncomfortable with a recent circumstance which will lead to publishing an increase of 6.8 percent. Namely, it was discovered recently that the LeSueur-Waseca library system, which had been assessing taxes separately for a decade or more, must be moved under the county’s “umbrella” for 2026. Thus, although property owners will be paying about the same amount as in previous years, figures to be included on tax statements will seem to indicate the county is asking for a larger share of that money.

 

All entities which receive property tax monies to support their operations–including school districts, cities, townships and counties–are required to set a preliminary levy amount in September. Property owners are sent a preliminary tax statement and provided the chance to ask questions during “truth in taxation” meetings each entity must hold during the month of December, prior to declaring a final tax levy amount. The final amount can be smaller than the one set in September, but cannot be larger.

 

According to information shared during the Sept. 16 meeting, the county’s total operating budget for 2026 has been set at just over $39.6 million; $19.2 million of that is scheduled to be levied as property taxes while $20.4 million is expected to come from other revenue sources. The county’s budget for 2025 is $39.5 million, with $18 million collected in the form of property taxes.

 

Commissioners had recently attended a statewide Minnesota Rural Counties (MRC) gathering where they heard from leaders in other parts of the state that they were anticipating levy increases in the double digits.

 

“They asked ‘How can you be down that low?’” summarized board member Brad Milbrath regarding the three percent.

 

Commissioner De Malterer mentioned other leaders expressed concern about “the coming storm,” which will be financially difficult for counties as newly enacted state funding reductions take effect in August of 2026.

 

“It’s not so much that costs are going to go up,” observed Johnson. “It’s that revenue is going to go down.”

 

Johnson mentioned the proposed three percent increase is the lowest in the state and suggested it can be that way because the county has been “meticulous” in managing its funds, especially including federal money received under the CARES Act.

 

He pointed out three percent has been the average increase in the county’s levy for the past seven years, a rate lower than inflation over that same time period.

 

Also during the Sept. 16 meeting, commissioners heard a summary report regarding the state-required audit of 2024 finances.

 

During his report, Paul Frantz of Baker Tilly financial services complimented the county and its staff on the clarity, consistent accuracy and ready accessibility of the data needed for the highly detailed audit, giving the county a “clean bill of health” regarding its finances.

“This means you’re getting good, reliable financial information,” said Frantz regarding county decision-making.

 

Board members also heard from Freeborn County Engineer Philip Wacholz, who reported on progress toward the start of a “regional” trail which, it is hoped, will someday extend from Albert Lea all the way to the Sakatah Trail at Waterville.

 

A committee overseeing the project has selected the name “Songbird Trail.” Wacholz reported the trail has received three construction grants totalling $1.55 million. He said that amount, coupled with other commitments made locally, makes him optimistic construction could begin next year on the six-mile segment of trail which will begin along Fountain Street in Albert Lea and lead all the way to a trailhead to be constructed at Manchester. Freeborn County also owns the right of way for the six miles of former railroad track from Manchester to Hartland.

 

Commissioners were asked to support a resolution naming the county as a joint applicant in the regional trail. Wacholz said Freeborn County is currently working with an engineering firm to have a “master plan” drafted for the eventual paved path all the way to Waterville. Having the plan, he explained, will help inform the public regarding the project and also support future applications for permits and grants.

 

Commissioners voted to sign the resolution, but held off on a decision whether to pay one-third of the $50,000 cost for the master plan.