County expects lower levy increase for 2025

By Anna Jauhola
Five people from the public attended the Kittson County Truth in Taxation meeting on Tuesday, Dec. 3. The Truth in Taxation meetings are held annually in December by governmental entities to explain tax levies and budgets, not to dispute taxes or valuations.
Administrator Aimee Sugden explained the commissioners, administration and department heads have been working since July on a budget for 2025. The commission set a preliminary budget on Sept. 10 with a levy of $6,479,803, which was a 10.25% increase over 2024.
“The preliminary budget is set and holds us to the maximum number we can have,” Sugden said. “After that, the number can go down but cannot go up. So the number posted on your Truth in Taxation sheet is the highest possible amount that we can do based on this year.”
After multiple budget meetings, and a use of reserves, the county has proposed to reduce the levy to $6,159,517, which is only a 5.05% increase over 2024.
Sugden cited the cost of doing business, inflation and facility repairs and maintenance as major reasons for the increase in the county’s budget. While the highway department will receive more in state highway aid funds in 2025, the county only received an increase of $2,000 in state program aid. Also, the University of Minnesota Extension asked for a 13% increase – the county is required to provide Extension’s office space and pay for employees. The county will spend some extra dollars this year to replace its geographic information system (GIS), which is out of date and badly needed by several departments, as well as for the public.
The revised budget calls for less money due to the bonding measure failing on the November ballot. Sugden said the courthouse repairs are still needed and they have set aside $150,000 in 2025 to start those. In 2024, they set aside $300,000.
“We do anticipate pushing forward with some work along the courthouse and other facilities,” she said.
The county also cut down costs in the data processing line of the budget. Earlier this year, the county cut its full-time information technology (IT) position, and now relies solely on Marco for IT services.
Other factors driving increases include unfunded mandates by the state, which are not backed by appropriate funding.
In a graph, Sugden showed that Kittson County is on the lower end of increases with the newly proposed 5.05%, with only Marshall County lower at 4% for 2025. The highest county levy increase in the region is Red Lake County, which is just under 12%.
“So, that 10.52% increase is going to come down,” Sugden said, referring to the mailed Truth in Taxation statements property owners received in late November. “It will be rerun prior to your regular statements that come out in March.”
Sugden emphasized to the public in attendance that the information presented only related to the county’s budget and tax levy, not any other taxing entity. On the Truth in Taxation statements, there is a graph for levy information that includes Kittson County, each city in the county and each school district. Each of those entities, along with the townships, sets their own tax levies, she said.
A couple people from the public asked why their taxes increased in one area, but decreased in another. Assessors Jenny Koskela and Alyssa Gustafson explained changes in tax exempt status, farm max tier limits and homestead status can all affect neighboring properties’ taxes.
Troy Peterson, of Karlstad, asked about the timeline for when the county had to send out the Truth in Taxation statements, which also include the dates and times for governmental TNT meetings.
“We had to send them out by Nov. 24, and they have to be held after the 24th,” Sugden said of the meetings.
“A lot of us missed our opportunity to go to our local government that truly represents us, the city council. I did not receive mine in the mail until yesterday,” Peterson said. “And our meeting was last night. So we lost our opportunity. They were sent out way too late. Most people I talked to got theirs Friday.”
Sugden said the county will continue to take comments and questions about the tax levy and budget through December. The Truth in Taxation meeting is just a meeting for the public to learn more and voice concerns directly to the board.
“But you understand how that looks?” Peterson asked. “I’m just saying it came out way too late. Nobody has enough time to process that information or come and make a comment to you guys or ask real good questions.”
Taxpayer Services Specialist April Klecker said the counties are required to mail out the Truth in Taxation statements within a certain two-week period. Peterson suggested the county then push back the date of the TNT meeting to accommodate the mailings, as the postal service continues to be delayed.
Peterson also asked how much the county carries in reserve funds. CFO Shirley Swenson said the revenue fund has $2.2 million, the social services fund has about $2 million and the highway department carries less than $1 million.
“The revenue fund, that’s money that’s readily available for the county to use?” Peterson asked.
“Our auditors strongly suggest we have six months of operating funds in case something would happen, like if we didn’t get state money,” Swenson said. “We have to be able to operate for six months on our own if a catastrophe would happen. Yes, we do dip into it if we need to.”
Swenson noted the county will use $475,000 of reserves in 2025 to pay for a ditch redetermination project, but that money will be paid back through levies on the benefitted property owners.
The county commission meets in regular session again on Tuesday, Dec. 17 at 9 a.m. and will hold it’s end-of-year meeting on Monday, Dec. 30 at 9 a.m. Both meetings are at the courthouse in Hallock, in the upstairs meeting room.