BRAINERD – Crow Wing County commissioners continue to work on a tax levy proposal for 2025 and are asking staff to revisit possible reductions.

Commissioners discussed the budget in a two-hour meeting of the Budget Committee on Thursday, August 22, and urged staff to continue to look for ways to cut costs.

“I think this is a painful budget this year,” said CEO Jon Lubke.

No new positions will be advertised for 2025 and other positions, including those of four correctional officers and a registered nurse, have been eliminated due to staff shortages at the prison.

The board wanted to limit a levy increase from 2024 to 2025 to no more than 2.99%. The county has cut the budget since talks began in July with a levy amount of $53,444,206, or a 16.41% increase. Since then, the amount has been reduced by millions of dollars to the amount presented Thursday of $48,171,458 for the 2025 levy, or a 4.93% increase over 2024.

The difference between 2.99% and 4.93% is $889,000. That figure is largely due to a board-supported 2% pay raise in 2023, of which $415,000 comes from the levy. And a court-inspired change in the way tax-forfeited property sales are handled through state law means that that $457,000 in revenue will no longer make it into county coffers.

Taking these considerations into account, the staff estimated the possible tax increase at 4.93%.

With a 4.93% increase, a residential property with a market value of $183,700 would have an estimated county tax of $405 at 2.99%, and with a 4.93% increase, the tax would be estimated at $12, a difference of $7.

For a residential property valued at $328,300, the estimated county tax would be $723 at a tax rate of 2.99%, and $14 more at 4.93%.

For a commercial property valued at $1,050,300, the estimated county tax at a tax rate of 2.99% would be $4,462, or $84 more at 4.93%.

Past tax collections

2020 – $39,307,634 or a change of 6.95%.

2021 – $41,262,480 or a change of 4.97%.

2022 – USD 42,908,105 or 3.99% change,

2023 – USD 44,148,151 or a change of 2.89%.

2024 – $45,909,662 or a change of 3.99%.

Brainerd Lakes Regional Airport

Commissioners also heard recent research into what would happen if the county took full ownership of Brainerd Lakes Regional Airport if the city of Brainerd divested itself of its share. The city is responsible for payroll for airport employees, who are covered by a separate bargaining unit with its own personnel policies.

The city handles payroll, benefits administration, accounts payable, and financial reporting for the airport. Airport employees have their own workers’ compensation and liability insurance, although all of their W2 and payroll functions are reported using the city’s federal identification number. However, airport employees are not considered city or county employees.

In May, airport director Steve Wright said he would prefer ownership to remain shared.

Brainerd Councilman Jeff Czeczok brought up the issue. Barrows said it was the duty of Czeczok, who raised the flag on the issue, to take the flag down in some way.

If the county were to become sole owner, the Federal Aviation Administration (FAA) would have to approve a change of ownership. This could take 12 to 18 months.

Commissioner Steve Barrows, who also serves on the airport commission, said he does not support a split, but noted that the county could provide support services to assist the airport. The committee also learned that assuming full ownership would incur upfront costs of about $89,000. Brainerd had previously directed staff to study the impacts and formed a working group. The county said it had received no communication from the city that Brainerd would divest from its property. The county committee agreed to maintain the status quo of shared ownership with Brainerd.

“From the county’s perspective, we will not be making any further efforts on this matter at this time,” Erickson said.

Other important budget elements for tax revenues

• In addition, the budget amounts for salaries/wages in the human services sector will increase by 7.58% or US$2,827,803 in 2025, 50% of which will be financed through levies.
• The employer share of pension, FICA, and Medicare budget amounts increased by 11.27%, or $643,445, in 2025, of which 50% is funded by taxes.
• Health insurance premiums will increase by 8% to 9% in 2025, an increase of $393,250.
• Property and casualty insurance premiums are expected to increase by approximately 5%, or $43,566.
• Workers’ compensation insurance premiums are expected to increase by approximately 12%, or $28,948.
• Software license and support fees for existing software increase by 10.68% or $124,976.
• Revenue from out-of-county reservations decreased by 45.83%, or $834,207, in 2025.

Renee Richardson, editor in chief, can be reached at 218-855-5852 or [email protected]. Follow us on Twitter @DispatchBizBuzz.