County plans to dip into reserve funds

Causes are cuts in

state, federal aid

By FRITZ BUSCH

Journal Staff Writer

NEW ULM -- For the first time in years, Brown County will likely dip into undesignated reserve money to balance its budget next year.

Caused primarily by cuts in federal and state aid money, rising insurance costs and less interest on investments, the county is expected to take $321,044 in 2003 from its undesignated reserve pot of $7.35 million as of the end 2001.

"This is the first time in my eight years on the board that we've had to do that," Commissioner Andy Lochner said after the Truth-In-Taxation Hearing Thursday night in the District Courtroom. "The county's share of health insurance costs went up more than $200,000."

"We'll use reserve funds as we go, month to month, if we have to," Brown County Administrator Charles Enter said. "The budget is a dynamic tool."

About a dozen county employees attended the meeting that lasted about 20 minutes. Property values and classification were not addressed at the public hearing. The Brown County Auditor/Treasurer's Office was staffed Thursday night to address specific property tax questions.

The proposed 2003 certified levy is $7,528,377, a 4.6 percent increase from $7,197,573 this year.

Proposed total revenues for 2003 are $22,257,820, up 1.8 percent from $21,871,144 in 2002. Investment interest is proposed to fall 29.6 percent next year, from $390,500 to $275,000. Mobile home property tax increases will take up some of the slack -- rising 19.1 percent -- from $23,500 this year to $28,000 next year.

Septic system administration fees will raise planning and zoning revenues from $350 to $1,200 -- a 242.9 percent increase. Extension revenues are also expected to increase from $500 to $6,415.

Emergency services funding will be cut 43.2 percent, from $54,157 this year to $30,773 in 2003.

The adoption of the final payable 2003 property tax levy and budget will be considered at a subsequent hearing at 9 a.m., Tuesday, Dec. 17, in the Commissioner's Room 204 in the Brown County Courthouse.