DEEP PORTAGE — Cass County department heads met for the county’s annual planning meeting Friday, June 10, and shared the market trends of 2022, a legislative update and foreseeable issues for 2023.
The challenge it seemed most departments reported was the recruitment and hiring of qualified candidates. The following are departmental reports:
County Administrator Josh Stevenson updated the board on the 2022 budget. County commissioners and department heads stated due to COVID-19 relief money received, the county will be spending approximately $9.7 million more than spent in 2021. The property tax levy increased 2.99% over the previous year and the county’s Local Option Sales Tax brought in $3.7 million in 2021. Stevenson said this was partially due to the recently completed Enbridge project and this number will go back to similar levels seen in previous years.
Stevenson reported the county is experiencing growing pains with many people moving up to the area and requesting special ordinances be considered similar to what they were accustomed to prior to moving. With the influx of requests, the department delivering the service people are accustomed to by calling back retirees and hiring temporary employees to assist.
Stevenson said a special state legislative session is needed because the Legislature did not pass the bonding bill. Without the bill passing, federal transportation funds the county receives is at risk without a 20% match from the state. This also includes the funding of the transfer station rehabilitation project the county scheduled.
Assessor Mark Peterson reported property market values continue to rise, with the county’s overall estimated market value up over 28% excluding new construction.
New construction value is up 65%, new home starts are up 6%, real estate sales decreased by 20% for the first quarter of 2022 and foreclosures were noted to be down 25% for the first quarter.
Peterson mentioned with the increases in property values, the Local Board of Appeal and Equalization appeals were up 319% with a total of 411. Normally the county only receives approximately 15 appeals in any given year. The department sent out statements over a four-week period and was receiving 200 to 400 inquiries per day for five weeks straight.
In legislative activity, no tax bill was passed in the regular session, but if a special session happens there are possible changes that may affect homestead taxes positively.
Peterson said it remains hard to find qualified and licensed people to apply for positions within the department.
Attorney Ben Lindstrom reported it seems remote court appearances will continue. There are both stated advantages and disadvantages to this method, he said. One advantage is the ease of appearing at trial as people don’t have to take the time off work to travel and wait around to testify. A disadvantage is offenders sometimes don’t understand the severity of the charges until their trial and they may have never met the attorney.
A few issues Lindstrom foresees in 2023 include the potential of the current case management system becoming obsolete and an increase in costs of the electronic alcohol monitoring system.
Director Tom Buhl said network security remains a top priority and staff is continuously monitoring the server and upgrading firewalls to make sure they are not compromised. A broadband funding bill was passed in the Legislature to assist in providing area residents with better internet access.
The issues for 2023 Buhl foresees involve the increased costs to secure and maintain the network infrastructure and maintain and upgrade older county buildings. The ability to acquire equipment needed and find qualified employees is also another challenge, Buhl said.
Sandra Norikane shared information on the American Rescue Plan Act, stating the grant has provided $1.85 million in funding to Cass County with another $1.64 million committed from the expected second payment of $2.8 million. Norikane said with 2022 being an election year, a new hire with experience was acquired. Also, a primary will be in August due to three candidates running for one position.
In a legislative update, Norikane said a bill was passed changing the information required for Truth in Taxation notices. Due to this change, the department is working on complying, but may not have enough time before the deadline. Other options considered included one to allow residents to access the information from the Cass County website. If this were available, that would give citizens more information than is required to be put on the notices.
Norikane mentioned the county’s insurance program was going to have another possible rate increase for employees and retirees.
Kayla Litter mentioned most court cases are continuing to take place via Zoom unless it is a jury trial. Litter said there is still a backlog of court cases due to the pandemic. Typically the county would have around 180 to 200 cases open, with the current open cases being approximately 285.
With upcoming retirements and advancements by current staff, Litter has a concern of being able to recruit qualified candidates. One possibility mentioned includes allowing staff the option to work from home more, which could entice more candidates.
Director John Ringle reported, in his last meeting as director, that planning and zoning activities were actually down in the first quarter of 2022, but the department is seeing a late spring surge. However, it was noted solid waste activity is comparable to the first five months of last year, with the department seeing a surge during the month of June.
With not much happening during the legislativate session this past spring, Ringle was hopeful for continued funding to soil and water conservation districts.
Deputy Director Jeff Woodford shared the upcoming issues for the department with one challenge being able to renegotiate contracts due to fuel prices increasing drastically. Another challenge is possible ordinance revisions. With more people making Cass County their permanent residence instead of a vacation destination, people are wanting things to be consistent with where they used to reside.
Director Michele Piprude stated there was a funding increase of $2 million for school linked behavioral health. It was also mentioned there are still inadequate services and settings for the rising needs of mental health services and continued needs for homelessness.
In the legislative update, Piprude said the Supplemental Nutrition Assistance Program income eligibility has been modified by increasing the poverty level to 200%. With this increase, it will allow more families to obtain the assistance they need to feed their families.
One issue for 2023 is finding additional volunteers for the Volunteer Driving Program. With the increase in fuel costs plus people still unsure about COVID-19, the county is having a hard time obtaining volunteers. Volunteers receive payment for all mileage driven and not just the mileage of taking the person to and from their destination.
County Engineer Darrick Anderson reported the 2022 county state highway funding program saw an increase in funding of $880,000 for construction and $587,000 for maintenance.
In the legislative update, Anderson said the county was awarded $125,000 in 2021 for the Local Bridge Replacement Program on County Road 103, was awarded $115,000 in 2021 for the State Park Road Account on Country Road 139, awarded $341,000 in 2022 for the State Park Road Account on Country Road 161 and was awarded $1.2 million for the 2026 Surface Transportation Block Grant Program on County Highway 11.
Moving forward, there is project development for larger projects on County Highway 37, which is being contested by the Minnesota Department of Natural Resources, and County Highway 70 in 2023.
The highway department continues to look for ways to partner with the Leech Lake Band of Ojibwe, U.S. Forest Service, townships, cities and neighboring counties.
Kelsey Schwartz, payroll and benefits and human resources official, said there was a continued need to allow remote work for staff. The department is continuing learning processes on the new payroll/human resources system.
Schwartz said with the recently passed act for frontline worker pay, there was an obligation to inform employees.
The 2023 issues are going to involve getting ready for labor negotiations for 2023 as current contracts are up in 2022 and negotiating health insurance premiums. One project Schwartz mentioned to help entice future employees is offering training online and developing wellness programs to get staff socializing with other departments.
Land Commissioner Mark Gossman reported tax-forfeited land sales remain positive along with timber sales. Although there have been some challenges, the new OSB mill in Cohasset is slated to open in late 2023.
Gossman said with rising fuel costs, there may be an impact on the markets. Gossman also continues to monitor the threatened and endangered species of the Northern long eared bat, monarch butterflies and the rusty patched bumblebee.
Director Jim Schneider stated caseloads for drug and gross misdemeanor assault offenses increased along with the number of people on pretrial supervision. The caseload increase is due to the state of Minnesota stating it would charge the county if the department didn’t increase its caseload, beginning July 1 of last year.
Schneider mentioned he foresees staffing issues in 2023 due to the increased caseloads. There are a couple of grants up for renewal in 2023: the Community Crime Prevention grant for $100,000 and the Cass County/Leech Lake Band of Ojibwe Wellness Court grant in the amount of $103,000.
Recorder Katie Norby reported volumes of documents and e-recordings are down from 2021, but still ahead of 2020. However, e-documents are still above 60% overall. The number of properties for sale increased, but with the rising inflation and interest rates also rising, this may have a negative impact on the real estate industry. Also, there may be a concern for more foreclosures with these increases.
Sheriff Tom Burch stated recreational vehicle misuse, both all-terrain vehicles and boats, is still an issue. The department is seeing an increase in calls for service since the pandemic ended and is having a hard time meeting demands with staffing. Burch stated with these demands, the department may have to decline assisting other departments with tasks.
A continued issue Burch sees in 2023 for the department is finding qualified citizens willing to work for the department. Other issues/challenges will be the implementation of the new body camera/squad camera system having ample storage, along with the increased cost of goods/supplies. One question arising was with the cost of fuel and would it limit the service provided. Burch stated citizens expect deputies to be there when needed and the department would not fail those expectations.
Cass County’s five citizen appointees and two county commissioners (budget committee) will receive departmental requests and prepare a proposed 2023 county budget and levy this summer.
The county board then sets a preliminary levy in September before the budget committee makes additional budget changes in October. The board will have a public hearing before adopting a final budget and levy in December.
That schedule is as follows: