Otter Tail County proposes 7.5 percent tax levy

2008 net levy proposed at $26.2 million for 2008

By Susan Larson (Contact) | The Daily Journal…Published Friday, December 7, 2007

There are two major factors are behind a 7.5 percent net levy increase proposed for Otter Tail County in 2008, County Auditor Wayne Stein told attendants of the Truth in Taxation hearing Thursday. The 2007 net levy was $24.4 million, compared to $26.2 million proposed for 2008.

Topping the list is $523,530 in additional debt for the sheriff department’s operations center, which is under construction.

“That accounts for a large percent of it,” said.

The city will also experience a $245,202 decrease in County Project Aid (CPA, similar to Local Government Aid received by cities).

“We’ll only be getting $2.1 million this year,” Stein said. “We received $2.3 million in 2007.”

A general fund budget of $66.8 million is proposed for 2008, compared to $61.1 million in 2007.

Some increases within the budget contributing to the hike include:

n The proposed general government budget will jump from $9.4 million this year to $10.8 million. Money set aside for the 2008 election is a major reason for the increase, Stein said. Maintenance and public defender fees are among lesser contributors.

n A $10 million increase in the public safety budget is proposed for 2008, compared to $9.3 million in 2007.

This is partly attributed to upgrading the law enforcement radio system over the next three years. Operating costs for the sheriff’s department and detention facility are also included in the budget.

n The proposed Human Services Department budget for 2008 is $18.1 million, compared to $16.6 million in 2007.

Chemical dependency costs, increased costs of out-of-home placements for youth served by county probation and anticipated cost of living costs for staff and service providers created the increase, Otter Tail County Human Services Director John Dinsmore said.

“About 60 percent of the $18 million is for providers,” Dinsmore said. “For mental health, chemical dependency and developmental disabilities.”

n There is a decrease in the proposed 2008 conservation and natural resources budget — $$685,048 — compared to $721,283 in 2007.

“Only three of the county’s four Lake Improvement Districts are levying taxes for operating expenses,” Stein said.

The final budget is expected to be adopted by the county Wednesday, Dec. 26, at 1 p.m. in the Government Service Center