Needs abound as county starts budget talks

The Carlton County board of commissioners is deep in the throes of budget talks again, as they prepare to adopt a preliminary 2021 budget sometime in September and a final budget in December.

Two budget sessions on July 27 and Aug. 4 spanned six hours and included presentations from county departments and budget support for publicly used groups such as the Bookmobile and the Carlton County fair. Many focused on the COVID-19 impact and the annual issue of needed revenues and increased costs.

Following is a taste of the ongoing budget discussions:

• The Arrowhead Bookmobile started operations again on June 15, with fewer sites. People using the service can pick up books curbside and under an awning. A 20-percent increase of electronic delivery of materials has been seen through the library system. The MSOP inmates could again receive Bookmobile service after Aug. 1 after litigation had been settled.

• Carlton County Historical Society president Ed Kavanaugh explained that this summer two downpours had pushed water into the Shaw Building, making the carpet wet. Temporary patches continue on the aged roof. Aside from constant fundraising, CCHS is hoping to get a $200,000 grant from the Minnesota Historical Society for a complete roof replacement on the historic building. The Society has not yet given its agreed upon 10-percent of the money the county budget provides to the Moose Lake Area Historical Society. Kavanaugh requested an increase in the county’s financial support to CCHS so that the 10 percent could be paid to MLAHS. The condition of the Shaw Building and limited space there prompted CCHS to ask the county for temporary housing for part of the collection. The county agreed to let the nonprofit use some of the space in the county- owned former Cloquet City Hall.

• Arrowhead Regional Corrections, which gets 11 percent of its revenue from Carlton County, along with the Soil and Water Conservation District, emergency medical services, and the assessor’s office show no or little budget changes.

• Lindsey Larson is the new manager of the Carlton County Fair. Finances for the fair after the decision to not have an event this year due to COVID-19 are difficult. She said the request for next year would be the same, but was told to get budget numbers worked up by the fair’s accountant and submit them to the county for consideration.

• Sheriff Kelly Lake requested that the phones used should be owned by the county. Phone costs have risen from $27,000 to $40,000 a year. Use of body cameras have increased storage costs. Grants for equipment and overtime pay has increased $115,000.

With the plans for a new jail unsettled, the sheriff said three new corrections officers are needed to run the current program. A 0.65-time hire for a gun permit employee will be covered by fees charged for permits and renewals. A gun permit-to-carry is $100 for five years. There has been a dramatic increase in gun permits being issued.

• County Engineer Jin Yeene Neumann reported an estimated $1.4 million decrease in revenue for the coming budget year. It is projected that there will be a 15-percent decrease of gas tax revenues. At this time it is not known what the half-percent sales tax will bring in over the next budget year. She said less road work will be done as a result. Her budget will also be affected by a possible 8- to 12-percent increase in health insurance.

• Land commissioner Greg Bernu said he would like to end paying 50 percent of some of the GIS salaries out of the funds he gets from timber sales, “but I know this is a tough time to do it.” Bernu said. “I will take any reduction of my share of GIS costs and hope to resolve the issue in the future.”

Timber sales will take in less revenue for the land department. Because of market forces, Sappi has told its foresters to buy private and public wood at $14-$16 per cord. Bernu added that unrefunded gas tax revenues are used to level the Soo Line Trail.

The land department budget funds demolition of condemned houses on tax-forfeited land. For example, there is a drug house in Cloquet that will take $13,000 to handle the site’s asbestos as just part of a costly knockdown.

• County attorney Lauri Ketola requested $10,000 less than the current budget year.

• Zoning and Environmental Services administrator Heather Cunningham plans for $200,000 for transfer station improvements. Her program will generate the funds needed. Building permits are up in the county.

• Director of Public Health and Human Services Dave Lee reported his budget is in good shape for the foreseeable future. Staffing of HHS employees at current levels brings in $250,000 a day from federal sources to fund nursing homes, assisted living, home care, hospitals, clinics, mental and chemical dependency issues, temporary housing, heating fuel — to name just some of the areas that affect our residents. The department answers 2,500 phone calls each month.

• Veterans Affairs Officer Duane Brownie reported that for every dollar spent by his department there is $126 in services received by the local veterans. More than 80 veterans served by his department died this last year. Property values excluded from taxes because they are owned by disabled veterans or their surviving spouses have overall started to go down.

• County auditor Kathy Korteum related a number of budget concerns. With interest rates at 0.16 percent, the county will lose $400,000 interest income from CDs. For 2021, $25,000 is budgeted for spaying and neutering local animals. A joint program with Cloquet is planned for the fall and will be announced with no income guidelines. The local Department of Motor Vehicles has lost $70,000 each of the last five budget years.

• County coordinator Dennis Genereau said that in the current budget year $175,000 is needed in building maintenance at the aging law enforcement center. An additional $200,000 will be used to upgrade bathrooms, parking lot lighting, and safety-compliant handrails in the stairwells of the courthouse. The court system needs space on the second floor of the building.

Genereau feels much work is needed on the 2021 budget to avoid raising property taxes during a time of great financial stress from the pandemic. Volatile insurance costs and smaller interest income from investment of excess county funds are two issues that will make a balanced budget more difficult.