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Budget in Brief - 2004
2004 Budget Overview
The Washington County Board of Commissioners has developed a 2004 budget that maintains current levels of service and program delivery as much as possible, given the loss of state aid and a growing population, while balancing the Board's desire to keep property taxes as low as possible. This overview will provide citizens with a basic understanding of the variables that were considered in developing this year's county budget.
Washington County has the Lowest Tax Rate in the State
According to statistics received from the Metropolitan Inter-County Association, Washington County ranks 87th out of 87 counties for 2003 lowest tax rate, which means that Washington County has the lowest tax rate in the state. The 2004 budget is $140.2 million – a 6.5 percent decrease from the previous year's budget. The net property tax levy is $63.0 million, a 5.9 percent increase over the previous year. In 2004, the tax rate will decrease from 33.3 percent to 31.3 percent. For the past several years, Washington County has held tax increases to a minimum while continuing to provide necessary services for its rapidly growing population. In 2004, the population of Washington County is expected to increase to 220,529. The number of households is estimated to increase to 81,015 from 2003.
The Budget and the Tax Levy: A Closer Look
The county budget includes all expenditures and revenue sources. The primary source of funding is from local property taxes. Another large source of the county's revenue is derived from other levels of government (e.g., state and federal grants, etc.). However, because of reductions in state general assistance and program grants to counties, the county has become more reliant on its property tax to fund services. In 2003, the county's property tax levy accounted for 46 percent of all revenue. In 2004, property tax has increased to 50 percent of all revenues. Conversely, in 2003, intergovernmental revenues accounted for 32 percent of all revenue; in 2004 this percentage has dropped to 26.8 percent.
Current Budget - $140,216,900 (PDF)
Budget Comparisons - Past Three Years (PDF)
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The 2004 budget comprises total expenditures of $140,216,900, which are funded as follows:
- 45.0 percent from the net property tax levy ($59.5 million)
- 5.0 percent from Homestead and Agricultural Credit Aid (HACA) ($7.1 million)
- 26.8 percent from intergovernmental funds - federal, state (excluding HACA)
- 7.2 percent from interest, rents, and miscellaneous sources,
- 10.7 percent from licenses, permits, fees, fines and forfeitures,
- 5.2 percent from other taxes, and
- 0.1 planned use of fund balance.
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Significant impacts on the 2004 budget include:
- Continued estimated population growth of 2.3 percent, an increase in the number of parcels and a 3.2 percent increase in the number of households
- Inflation,
- Reduced earnings from county investments due to lower interest rates,
- $1.2 million revenue loss from the rental of jail beds,
- State-mandated 8 percent increase in the Court's budget,
- Increased debt service payments due to a new $25 million bond issuance,
- Increased out-of-home placement costs in the Community Corrections Department,
- Continued growth in the volume of deed documents recorded in the county.
"Where Does Each Dollar Go?" (PDF)
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How Does The County Budget and Tax Levy Impact Property Owners?
During the past five years, the county portion of a typical property's tax has increased by $51 or 9 percent. This number, which was calculated using a median-priced home of $213,500, demonstrates the actual impact on property taxes. During that same time period, this home's value would have increased by slightly more than $73,000 or 52 percent.
County Portion Tax Comparisons on a $150,000 Homestead (PDF)
County Portion of Tax - 6-year Comparison (PDF)
County Portion of Your Tax Bill - Comparisons (PDF)
Staffing Levels Remain Low
Washington County continues to have one of the lowest rates of employees per capita in the Twin Cities metropolitan area. In 2004, the county will not add any new positions. However, 15.5 FTE have been converted to regular status or are being continued as special project positions. These positions come with their own funding and will work on specific projects or grants. All of the 15.5 positions include funding through state/federal grants or fee revenue. There is no county cost (levy) to continuing these positions. Throughout the coming year, Washington County will continue to make investments in technology and explore alternatives to enhance and streamline the delivery of services.
County Employees- Full-time Equivalents (PDF)
Full-Time Equivalents (FTE) - Comparison (PDF)
Washington County Meets the Budget Challenge
Development of a budget is never an easy task, particularly in today's economic conditions. The 2004 Washington County budget addresses the dual challenges of meeting the needs and demands of a growing population while coping with $6.2 million in lost state-shared revenues and cost shifts. General state aid was reduced $3.8 million. Specific program grants, primarily in the human services and public health areas, were reduced $1.9 million. In addition to these reductions, the State of Minnesota shifted some costs that it had previously assumed to counties. The additional cost to the county of these services is estimated at $500,000. In the face of these challenges, the County Board approved a modest property tax levy increase and program modifications that allowed for a balanced budget in light of lower intergovernmental revenues.
When You Need to Know More.... (PDF)
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