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Budget Overview - 2005
The Washington County Board of Commissioners has developed a 2005 balanced budget that substantially maintains current levels of service and program delivery despite increasing costs of doing business, state-mandated cost shifts to the county level and a growing population with high expectations for service. The Board responded to these pressures with a modest increase in property tax. This overview will provide citizens with a basic understanding of the variables that were considered in developing this year's county budget.
Washington County Budget in Brief - 2005 (PDF)
Presentation of the 2005 Budget given to the County Board at the Truth in Taxation Meeting - December 2, 2004 (PDF)
Guiding Principles
The County Board annually adopts principles to guide budget development. In 2005 these principles included limiting the increase in the property tax levy to a combination of inflation plus population and/or parcel growth and maintaining a stable tax levy for securing large expenditures. Over the last three years, the County Board has put extensive effort into providing high quality core services and programs and identifying programs or services that can be reduced or phased out over time. Board members have addressed each program's level of service making distinctions between what is a critical level of service versus what is merely convenient. The County Board remains committed to pinpointing those areas where an investment in technology can improve service, reduce the need for additional staff, or streamline operations. Confirming that services are being provided in an effective and efficient manner is important to commissioners. In addition to the county's long-standing performance measurement effort, a grant from the National Civic Innovation Center will help the county to determine what outcomes are important to residents. Overarching all these principles is the goal of maintaining excellent customer service and constituent response even when confronted with budget reductions.
Washington County has the Lowest Tax Rate in the State
The principles that guide budget development have reinforced the county's sound fiscal management as evidenced by several important measures. The county has won the Government Finance Officers Association Distinguished Budget and Financial Reporting awards numerous years. Prudent financial practices and long-term planning have resulted in favorable bond ratings from the two major bond rating agencies Moody's (AA2) and Standard & Poor's (AA+). Within the state, the county compares favorably to others. According to preliminary levy information reported by counties to the State of Minnesota, Washington County ranks 77 out of the 87 Minnesota counties in property tax levy per capita spending and ranks 87 out of 87 counties for the lowest tax rate in 2005. This means that if any house in Washington County were located in another county in the state, the taxpayer would pay more county property tax. In 2005 the tax rate will decrease from 31.2 percent to 28.6 percent. For the past several years, Washington County has held tax increases to a minimum while continuing to provide necessary services for its rising population. In 2005 the population of Washington County is expected to increase over 4,300 to an estimated 222,016. The number of households is estimated to increase 2,200 to 81,854.
The Budget and the Tax Levy: A Closer Look
The 2005 budget is $142.4 million, a 1.5 percent increase from the previous year's budget. The county budget includes all expenditures and revenue sources. The primary source of funding for the county's budget is the property tax. The net property tax levy, the amount property taxpayers are expected to pay the county, is $66.5 million; a 5.5 percent increase over the previous year. Another large source of the county's revenue is derived from other levels of government, otherwise called intergovernmental revenue, (e.g., state and federal grants, etc.). However, because of reductions in state financial assistance and program grants to counties, the county has become more reliant on its property tax to fund services. In 2000 the county's gross property tax levy accounted for 44 percent of all revenue. In 2005 gross property tax has increased to 52 percent of all revenues. Conversely, in 2000 intergovernmental revenues accounted for 27 percent of all revenue; in 2005 this percentage has dropped to 25 percent.
Current Budget - $142,376,700 (PDF)
Budget Comparisons (PDF)
Budgeted Operating Costs per Capita (PDF)
Levy per Capita 2000 - 2005 (PDF)
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The 2005 budget comprises total expenditures of $142,376,700, which are funded as follows:
- 52.0 percent from the gross property tax levy ($66.5 million net property tax levy, $7.5 million County Program Aid)
- 25.0 percent from intergovernmental funds - federal, state (excluding County Program Aid)
- 7.0 percent from interest, rents, and miscellaneous sources,
- 10.0 percent from licenses, permits, fees, fines, and forfeitures,
- 5.0 percent from other taxes, and
- 1.0 percent planned use of fund balance.
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Significant impacts on the 2005 budget include:
- Continued estimated population growth of 2.0 percent, an increase in the number of parcels of approximately 1.7 percent and a 2.8 percent increase in the number of households,
- Inflation,
- State-mandated 8 percent increase in the Court's budget and loss of state court aid, and
- Increased debt service payments due to a $25 million general obligation bond issuance in 2003.
"Where Does Each Dollar Go?" (PDF)
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How Does The County Budget and Tax Levy Impact Property Owners?
Since 2000 the county portion of a typical property's tax has increased by $99 or 3.5 percent annually. This number, which was calculated using a median-priced home of $245,500, demonstrates the actual impact on property taxes. During that same time period, this home's value would have increased by slightly more than $95,500 or 64 percent or over 10 percent annually.
County Portion Tax Comparisons on a $215,000 Homestead (PDF)
County Portion of Tax - 6-year Comparison (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 2005 the county will add a net increase of 14.54 FTEs at a total cost of $906,200 compared to the 2004 adopted budget FTE complement. Of these additions, 7.0 FTEs were previously authorized positions for which funding was unavailable due to budget cuts. Funding from federal/state grants or fee revenue will pay for $683,300 or 75 percent of the new positions. The property tax levy will provide $222,900 in funding for the remaining 25 percent of the positions' costs. Throughout the coming year, Washington County will continue to make investments in technology and explore alternatives to enhance and streamline the delivery of services to help maintain a low employee per capita rate.
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 2005 Washington County budget addresses the dual challenges of meeting the needs and demands of a growing population while coping with the repercussions of the loss of state-shared revenues suffered in 2003 and the continuing shift of new costs from the state to counties. The state takeover of the district court will result in the loss of $645,000 in court-related revenues and payments to the county. A planned annual increase in debt service of 4 percent to repay the 2003 bond issuance of $25 million increased 2005 costs by $315,000. In the face of these challenges, the County Board approved a modest property tax levy increase and minor program modifications that allows for a balanced budget in light of the new reality that requires the county to become increasingly reliant on its own funding sources.
Did You Know? (PDF)
Glossary (PDF)
When You Need to Know More.... (PDF)
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