Board OKs preliminary 3% levy increase

The Carlton County board approved a preliminary 3-percent levy increase at its meeting Monday, containing costs in a way that had commissioners thanking staff, department heads and the finance committee that includes commissioners Susan Zmyslony and Dick Brenner.

“I’d like to thank the finance committee for all the work they did on this,” commissioner Marv Bodie said.

“I really appreciate it,” commissioner Gary Peterson added. “Myself, I was surprised.”

“We worked very hard between our finance committee and the department heads,” Zmyslony said during an interview after the meeting. “It was potentially much higher.”

Commissioners and auditor/treasurer Kevin DeVriendt cited the proposed 11.23-percent levy increase in the city of Cloquet, and surrounding proposals such as St. Louis County’s 7.23-percent increase and Aitkin County’s proposed 4-percent increase, as markers that showcase Carlton County’s efforts toward fiscal responsibility.

“The increase is in line with neighboring and regional counties,” DeVriendt said in an interview. “The accounting folks in the county should be commended for their knowledge, insight, and extra work in the process.”

The proposed $34.4 million levy is the amount that will be levied on taxable properties in Carlton County for 2025. The figure is $1 million more than 2024’s $33.4 million levy, despite a host of potential escalating factors, including lower county program aid from the state (down 3 percent) and completed contract negotiations with all eight unions at work within the county. As a result, wages will increase 3.75 percent for 2025.

One potential inflator, health insurance, was mostly contained when the county changed providers to get a 4-percent increase on health care costs in 2025. The potential for that figure to be much higher was something that concerned county officials.

The Pine Knot News examined the potential for explosive health care costs in a pair of stories in the past calendar year. But a switch from Blue Cross Blue Shield to the Minnesota Healthcare Consortium came after the county solicited and received seven bids from providers — with the winning bid more competitive than anticaipated.

The consortium, which pools public employers throughout regions of the state, offered a 4-percent increase on premiums in 2025 and a 14.5-percent cap in 2026.

“We were very concerned about what the cost of our health care was going to be,” Zmyslony said. “That change [to the consortium] helped a lot.”

On the plus side of things, investment income rose 296 percent. DeVriendt described it as “laddered investments for maximum yield, even as future interest rates decline for 2025.”

The overall budget for 2025 is proposed at $76.3 million with human services ($24.4 million), roads and bridges ($21.2 million), the sheriff’s office ($5.92 million), and county jail ($3.75 million) making for the costliest expenditures.

Revenues are projected at $56.2 million for 2025, more than half from aid for roads and bridges and human services.

“There are always many factors to consider in the budgeting process as funding, services, and programs change,” DeVriendt said, noting that the budget will be an ongoing discussion leading up to the Truth in Taxation hearing at 6 p.m. Dec. 11 at the County Transportation Building on County Highway 61 in Carlton.

“Department heads are always evaluating ways to increase non-levy revenues and decrease spending,” DeVriendt said.

The Truth In Taxation hearing will follow the regular county board meeting at 4 p.m. Dec. 11. The final levy will be voted on later in December.