Good morning everyone. I called call to order the meeting of the Klay County Board of Commissioners at uh on Tuesday, July 21st. Um [clears throat] today we have Commissioner Mojo online. So all our
agenda uh all our items uh with motions and seconds will be have a roll call vote. So with that I move for approval of the agenda which includes our consent. So >> move second. >> Have a motion by [clears throat]
Commissioner Bayer. Second by Commissioner Campbell. All in favor roll call. >> Commissioner Krabanhoff. >> I. >> Commissioner Bear. >> I. >> Commissioner Mojo. >> I. >> Commissioner Campbell. >> Yes.
>> Motion passes. We have uh any citizens to be heard. >> Morning. >> Good morning. >> Yeah. Um so we try to limit this to um uh three minutes. I understand yours might be a hair longer. I'll give you
some latitude but try to uh not repeat if you will please. >> Yes. Thank you. >> Okay. And your name and address, please. My name is Jane Grronberg and I live in Morehead and I'm here today with concerns about the increase of hatred,
violence, and domestic violence in our community. I am also here as a survivor of domestic violence to speak on behalf of myself, others, and victims like Sahar Ramirez, who no longer have a voice to speak. It's taken me years to gather the courage to be here today and
it was a difficult decision to make because I know the backlash and harm it will cause myself and my children. But hearing about Sahar stirred my heart and soul to break my silence about domestic violence which includes psychological violence. As a survivor, I
can say that Sahar's life ended not because of extreme viol because of extreme violence, not suicide. And I'm very nervous because I struggle with anxiety myself. So, I apologize. It's part of my traumatic um post-traumatic stress syndrome that I
have. So, but hearing about her and suicide really is a disrespect to Sahar, her family, and all and all other survivors like me. Um, one incident of my own violence was in January of 1989.
I was home and very ill. After trying to convince me that I was not sick and telling me I could not go to a doctor, my psycho violent husband left me for dead. He offered no medical care or concern. He walked out the door three days in a row, not caring if I lived or
died. And I would have died had I not been able to get myself to a hospital and have an emergency life-saving surgery. Had I died, I wonder if he would have spun my death as a suicide or an illness when in fact it would have been nothing less than negligent
homicide. To this day, he has had no accountability, responsibility, or consequence for his actions in 1989, nor for any other any other of the numerous times he was psychologically violent with me. People have said that my ex-husband was not abusive to me, but
that he just didn't love me. It's correct. He didn't love me. Instead, he actively hated me for over 30 years, and that was violent abuse. A rise in hatred equals a rise in mental and physical health concerns and crises in our
community. This should be alarming and it is for me. As such, I intend to advocate and create awareness and education about hatred. Advocacy is natural for me. I have a parallegal degree from MSUM and 20 years of work experience. I started my work at the Rape and Abuse Crisis Center of Fargo
Morehead as a legal advocate. I then worked for Legal Services of Northwest Minnesota assisting with cases involving domestic violence. I also was involved in the creation of this center's safe exchange center and actually take credit for naming it Rainbow Bridge. For the
last 10 years of my career, I worked in Klay County in the county attorney's office as the coordinator of the crime victim advocacy program. In 2005, I was forced to end my career. The terror, torture, and trauma of living with a psycho violent husband was too much. I
had no choice but to stop working and receive social security disability. I'm very familiar with how the system works in response to domestic violence victims. It's broken and it has failed me and my children at Sahara. Victim blaming and shaming is not
uncommon and cases that don't involve physical violence do not get prosecuted. Meaning women like myself are basically dismissed and ignored by law enforcement and legal community. We are often labeled as crazy on the problem. But what I've discovered is that
narcissistic personality disorder is really driving the hatred behind the domestic violence and that personality disorder is never, if rarely, factored into charging decisions. The violence needs to be stopped. So the
healing is no longer necessary because the healing is just as difficult and traumatic to survive as the violence itself. Don't give us a phone number for a nonprofit agency after the violence has already happened. That is too little, too late. Please, I'm asking
those with the ability and authority to work to change the system to stop the violence. I am just one face and one voice of many women in the United States that have been deemed disposable and not worthy of basic human rights and protection from psycho violence. What
was allowed to happen to me was not humane. It was cruel. And it still happens today to others. A dog in this county has more protection than women and children being subjected to psycho violence in their own Christian homes. No joke. It honestly feels like I do not
matter in this city, county, state, or country. If you want to make a claim that I do matter, you'll need to prove it because my lived experience is proof that I do not matter. I will end with a quote attributed to Edmund Burke. The only thing necessary for the triumph of
evil is for good men to do nothing. It seems to me there's a whole lot of good men and women doing a whole lot of nothing about domestic violence in this community and evil is seemingly triumphant because when psycho violence is allowed and normalized in a
community, evil is triumphant. Thank you. >> Thank you very much for coming and appreciate your awareness. >> Thank you. Minister Larson. >> Yeah, Mr. Chair, I did also receive a
request to uh speak and and submit the comments and read into the board. This came this comes from Maverick Brady uh out of Sabin in Elton Township. Elken Township recently had a public hearing uh about uh I guess establishing the the
the actual township roads within the the county or excuse me the township. Uh and uh Mr. Mr. Brady was unhappy with the with the findings. Uh the Elton Township Board has voted to establish a road on the south border of the property parcel
05 D-.025 025.380. Eliminating 33 feet of our field, allowing the public uh traffic through our land under no basis of land owner access or any real reason to establish this road other than friends of the
board enjoy the use of the property for recreation and want to continue to do so after I put a fence and a gate up for cattle and they are mad they can't drive through the private property anymore. The board also did not properly follow guidelines of Minnesota statute 164.07
on how to properly establish a township road. But we were essentially told we have no say and we have no compensation in this matter because they are elected officials and they say where the roads will be and that's that. Uh they have no record of a road ever being there and
have failed to provide any evidence of road ever being established there. So, they've decided to have a township board meeting yesterday uh officially establishing a township road and just say where they wanted to establish roads based on nothing. This road uh that they
want to establish on our property has never had a maintenance done to it ever. No utilities, no gravel added or any improvements made to it ever. It's just a field that people like to drive through and hunt out of their pickups, shoot stuff, and leave garbage.
And so, um, that was a comment. We have had a couple cor I've had a couple correspondents with Mr. Brady. Uh, Mr. Sloan is actually at the meeting, uh, as part of his GIS, uh, work with the townships. And so, if the board has any questions or anything, um, Mr. Sloan can
most likely give a stab at answering. Other other than that, I would yield for any comments. >> I have just one comment. It sounds like it's a township issue, not a county issue. >> Uh, that is correct. That's what we've uh that's what we both have told um um
Mr. Brady and so uh I think Mr. Sloan has given him some um direction from from his standpoint of how we can do but has indicated that that's not an issue that we can address. >> Yeah. >> Yeah. >> Just just a follow up to that. Um it's
been a number of years since I was on a township board, but um Commissioner Bearer is is exactly right. This is a township issue, and there is a process that that townships need to go through in terms of of um whether they create a
public roadway or eliminate a public roadway, uh and how they record public roadways. And so, um, although I appreciate the fact that they're looking for some assistance in any way they can or this individual is, um, I think there
needs to be some research of township law here and go from there. So, >> thank you. Anybody else? >> None. Thank you for the comments and uh, outreach.
All right. We'll move on to the approval of payment of bills and vouchers. >> Mr. Chair, I'll make a motion to pay the bills and vouchers. >> Second. >> Motion by Commissioner Bayer, second by Commissioner Campbell. Any discussion?
Any other discussion? Any other discussion? Hearing none. Roll call, please. >> Commissioner Kraven, >> I. >> Commissioner Bear, >> I. Commissioner Mojo, >> yes. >> Commissioner Campbell, >> yes.
>> Motion passes. We also then move on to the approval of the minutes from July 7th, 2026. >> Mr. Chair, I'll make a motion to approve the minutes from July 7th, 2026. Motion by Commissioner Bear, second by Commissioner Campbell. Roll call,
please. >> Commissioner Kenhoff. >> Yes. >> Commissioner Bear, >> yes. Commissioner Mojo, >> yes. >> Commissioner Campbell, >> yes. >> Motion passes. On to our 8:35.
[clears throat] Request approval of a master service agreement and task order with KL KJ Engineering. Yes, Nick. >> Good morning. Yes. So, the item I have is so we went out for an RFP of the design for CASAU 11. This is a project
that's been on the five-year plan and goes from trunk highway 336 to Sabin. Out of this proposal process, KJ was selected as the highest scoring and best fit proposal. Um, as well as from a cost standpoint, we think we think that they
or they did score the highest and we do feel really comfortable with this. Um, this project will be designed throughout 2026 and 2027 with a planned lighting date in early 2028. And this is a master service agreement and task order. That way if there are
things that come up that we can just add things to a task order versus having to amend a contract. >> Any comments or questions of the board? >> Mr. Chair, I'll motion master. >> Okay, >> I'll second it. >> All right. We have a motion from
Commissioner Mojo and a second from Commissioner Bear. >> Is this uh master service agreement and and task orders does would this in include the obtaining of rightaway? >> Uh so they assist with the rightway not
the the cost is mainly for holding landowner meetings, writing legal descriptions. as far as the cost to obtain right of way is not included in that because that's a straight county cost. >> Okay. But they do they do assist in um
why the you know explaining why the rightway is needed and that type thing. >> Correct. >> Okay. >> And they they have their one of the reasons too that KJ was selected is they have their own it's one firm doing everything. They have their own rightway
team as well that that's all they do. I know just from a staffing standpoint, sometimes acquisitions of rightaways can take up an awful lot of time. >> Yes. >> Be nice if your folks aren't tied up with just
doing that. >> And that that's exactly why we included it in the proposal. So, >> very good. >> Any other questions? Commissioner Bear, >> has the county attorney looked at this contract? >> Yes, he has. Anyone
else? Any other questions? Hearing none. Is there a motion? >> There already has been in a second. >> Oh, thank you. >> All right, let's roll call, please. >> Commissioner Krabanhoff. >> Yes. >> Commissioner Bear. >> I. >> Commissioner Mojo.
>> I. >> Commissioner Campbell. >> Yes. >> Motion passes. >> Thank you. >> All right. Agenda number number three, a budget presentation from the soil and water conservation district.
>> Good morning, commissioners. Good to be here again. >> Tony Nelson, our natural resource management uh technician is here to to uh he and I are going to present our 2027 budget request. Can you just speak a little soliciarian? Thank you.
>> Sorry. And thank you for allowing us on your agenda. Better. Of >> course. >> I think you all know that we are a very small staff that operates our Clay SWCD. We have a staff of five down from six just two years ago. Um for 2027, we will
continue to operate with five full-time staff. We primarily have three ways of funding. One is our self-generated programs. Those include things like our tree planting service and our no till drill s um rental program that we have offered
since 1993. The tree program trend is seeing fewer planting jobs over the years primarily due to reduced state cost share funding. Our no tail drill program remains steady year after year. State grants another way that we're are
funded. These provide some challenges. We are heavily reliant on these grants. grants remain our primary operational funding source and most are restricted to specific programs rather than general operations meaning they cannot be used for rent insurance or general
operations. Um in no increases were realized from the 2026 Minnesota legislative session. They provided no interest or any increases to our operation and we are still feeling the reductions from made
in 2024. uh they continue to affect our ability to maintain staffing and service levels. Cuts made in 2024 continue to reduce the flexibility and stability of our SWCD funding, forcing us to absorb more operational costs locally. And our third
avenue of of funding is our county allocation through you folks. County fund funding is the only source that supports our core operations, including staff wages, insurance, rent, utilities, and basic program delivery. Most grants
cannot be used for these purposes. For 2027, we are requesting a 6.2% increase over our 2025 allocation. We received no increase in 2026. Personnel costs make up the majority of our SWCD's operating budget. Even with
conservation, even with conservative staffing levels, cost increases outside our control have created significant financial strain. COLA SWCD board members strictly follow the county's lead. A 3% cost of living
adjustment is planned for 2027, consistent with county projections. In 2026, staff received zero cost of living adjustment. Merit adjustments were approved. Our health insurance in 2026 we were members of the lo of the Lakes Country
Service Co-op out of Fergus Falls. In 2026, they were projected to increase to 18.3%. At that time, our board directed us to search out a different provider and we signed on with a new provider, but it was still we looked at a 13.6% increase.
for 2027, our projected increase of 7.5% is being looked at. >> Good morning. Uh Kevin asked me to uh address some of the things that uh kind of we do on a day-to-day basis as part
of our general operations. Um we are considered an external agency from the county. Um we are fully aware that we are considered that external agency over the years but uh several county programs were transferred to us over the course of our our history with the with the
county. Uh 1998 the state wetland conservation act we've been uh administering that program for 28 years. In 1999 uh the funds that we received from the state were approximately $16,700. In 2027,
the state funds have actually been reduced over that period of time to $16,447. Um, the ClaySwc provides uh provides match with this and the actual county funds that come out of this uh of this
fund are are are zero. There is no liability to the to the county. um the state's local water management program, which we've also been administering for approximately 28 years. In in 1999, the amount that comes from the the state
was $28,311. In 2027, that amount has been actually reduced to $12,673. Um, in 2007, uh, the state's county feed lot officer
program, which we've been administering for approximately 19 years, the county created a new program and offered up to a $25,000 per year program to the SWCD. Um, uh, from from 2010, which is which is where we could find the most uh, as
far back as we could go, uh, we received $11,340. the county agreed to match um that requirement up to $25,000. And so in 2026, uh the state has actually increased that
fund to $14,35. Um the county match required is is again up to that $25,000 program. So over that that 19-year period, that that fund actually has stayed the same. Um, in
2012, uh, the state's county a inspector program, um, which we've been administering for approximately 15 years, um, was a, uh, half-time position and asked the Klay County SWCD to to, uh, hire that at a quarterime position
at a rate of $25,000 a year. And you can see that over over that, uh, 15-year period that that funding source has also stayed the same at $25,000. In 2019, the state's aquatic invasive species program, which we accepted on
behalf of the county also, um we received an annual amount of $18, uh673. Uh and that currently is being proposed to cut that amount almost in half to about $8,417.
So, we're administering those programs basically a at the rate or less than what the county actually asks us to uh to administer those programs over a period of, you know, in some cases 15 to 25 years. Um, several of the county
programs we administer are now funded at levels below what we received nearly three decades ago. And despite the increased responsibilities and rising costs associated with delivering them, uh while we recognize that the county faces its own budget constraints, rising operational costs, stagnant state
funding, and reduced staffing capacity, we have placed significant pressure on our ability uh to deliver essential conservation services to residents, land owners, and agricultural producers. Uh county support remains the most stable and flexible funding source that we have and
it's critical to maintaining the high level of service Klay County expects. Um we have a great staff. Um we have a young staff, but for us to be able to maintain that staff over the course of time and and prep for the future, we need to be able to operate.
[snorts] Um thank you and uh we appreciate your continued support and consideration for our budget. Are there any questions? >> I have one question, Matt. Really? Commissioner Bear,
>> do you have uh reserve funds? And if you do, how much do you have sitting in there? >> We have roughly $300,000 in in reserve. >> Thank you. >> Welcome. >> Has that reserve stayed fairly steady?
>> Yes. And what is that uh reserve fund uh Kevin? Is that um have you figured that out? How many months or how that use of money works? >> No, I think we're looking at probably in that six month range is what we you know
operating should all the funds stop. >> Yeah. >> Yeah. >> Okay. >> Kind of what we we we kind of want to keep it about at that month level. >> Yeah. Very good. Well, I appreciate the detail you explained. Uh I think we all
need to be reminded uh our partnership and you guys my opinion are uh do are one of the leading solar waters in the state. Um I think we've proven that you do a lot of advocating statewide and
that is all for the betterment of uh and promotion of salt and water within our county. So appreciate all the work and any other questions anybody. >> Thanks for coming in. >> Yeah, >> thank you >> as always. Thank you guys. >> Thanks. Appreciate it.
>> Thank you. >> All right. Up next will be Jill Murray uh with budget presentation of the assessor's office. Hello Jill. >> Good morning. >> The assessor staff is a small staff of
five people. Uh so any increase you see to our budget is a salary and benefit adjustments for the five staff. Um our expenses are really contained to um the statements that we send out the notice evaluous
evaluation statements annually. um our licensing and membership, our continuing education, and then a few office supplies for all of the mailings that we do. Um I do have um there was our fee schedule. We do
bill the townships and cities for the assessor work that we do, which pays a portion of our expenses. Um that was set in last set in February 20th of 2018 by the board of commissioners. And so for
this year, it was scheduled that parcels with improvements increased by 25 cents per parcel. So that actually provided about $4,300 increase to the income of my budget. Um I used a small portion
about 2500 to offset some of the additional expenses we'll have because our association fees, hotels and things for travel are going to increase slightly. So ultimately our expenses um are about $2,000 less than the prior
year. Um I am on schedule to come before the board next year to reook at that um township billing so we can uh discuss that in more detail next year. I'll come
with more information from surrounding counties and what they're charging. Um, some other ways that we are looking to try reduce our expenses, been working with the department of revenue to host one of the PACE courses here in Morehead. That would save us on some
hotel and travel expenses when we can hold it ourselves for all of North. >> Joe, may I ask what is that? PACE is um it is it's an acronym of just part of our continuing education that is required
um 30 of our 60 hours and it's held by the department of revenue. >> Okay. >> So it's mandatory part of our licensing and it's primarily education on the property tax law statute. So um so we're
looking at that to save. Um also I had considered adding an archive module to our kama system but did find that staff is still able to perform that manually in less than a day ourselves. So uh we decided not to proceed with that at this
time. and then am looking at technology to save costs such as um for our quintel postcards, appointments, sales verification. However, some of our applications are statutoily mandated and approved by the commissioner of revenue.
So, um when it's printed or saved, it must look exactly as the department of revenue sent to us. Um so, there's some limitations there, but we are looking at ways to use technology to save money. Any questions?
>> I just want to uh make sure uh we're consistent. So these proposals, they include the cola we've suggested and the healthcare. >> That is correct, Mr. Chair. >> Okay. Are there any other costs?
>> Uh it also includes the steps any steps that the staff are are eligible for during the next year. >> Okay. And that's consistent with all presentations. Okay. Thank you. >> No questions.
>> I don't have any. I I thank you for your you got a pretty small department and it's runs pretty smoothly, I think. So, >> thank you, J. [clears throat] >> Mr. Chair, before we go to the next one, can I just comment back for a second on
the previous I was just on on the soil and water and maybe I can ask for some more clarification. >> Uh, as I looked at these numbers, um, if I look at the proposal for the 2027
budget, it has total estimated expenses at $78,3166. And under the revenue side, it has total estimated revenue outside of Klay County of $418,031. And then they are requesting from Klay County
315,666 for total revenues of $733,000. Uh that's that's roughly 25,000 more than what their anticipated expenses are. So I'm wondering why that is. Mr. Chair, uh, Commissioner Campbell, I
believe that that additional 25,000, if you take a look on page 97 of 104, uh, in addition to to their funding increase, they have the county egg inspector has broken out at 25,000. >> Okay. So, but that 25,000 is not in their expenditures.
>> That that my understanding is each year that has been broken outside because that is a a specific thing that we pay. Yes. >> Right. That's that's that's out of the yellow line there. That's total requested. >> Correct. So that would be the difference. The difference that Commissioner Campbell highlighted is
that $25,000. >> Why would all >> we've we've broken it out that way just specifically because of the of the cost of that that program. >> I guess it's a little confusing that way. I I mean I it that answers my
question, I guess. Thank you. >> All right. Any other questions? Okay, >> moving on. We have Olson uh with our facilities department with his budget
request. >> Yes, the good morning board. Um yeah, I'll be going over the facilities budget. And the first uh the two different budgets that make up u my budgets are what we call the courthouse budget that covers the um law
enforcement center, DMV grounds, and um detox all kind of in one budget. And then we have the family ser uh family service center enterprise budget. So um we can start with the courthouse budget. I'll hit all the highlights and then if you see any questions, just interrupt me
and ask me about them. Um, as far as our revenue on miscellaneous 5830, we have a slight increase of 8.79 uh totaling just over $70,000. We got we have this from leasing to the
DOC. Um, and the added 8.79% was just a small room that we had rented to them um after we signed a lease. So, uh, that that's where that increase was. Um, and then the other revenue line in there is a miscellaneous 430. Uh, we have
326,234. And what that is is it's it's for detox. Uh, Troy's budget budgets in detox, and this is all the expenses, the the lawn, the salaries that we uh have over there, custodials and supplies and stuff. So,
each year he pay he uh pays me that money. And you can see that you're going to see a a a detox expense line in my budget below. So, it's really an in and-out, but I wanted to let you know that that's where that that comes from. And that is in Troy's budget as well.
So, uh, as far as salaries, again, salaries this year, um, I worked with Lori. Uh, we've had some troubles again with with them looking up and down. So, what I did is I provided a a page five, you can see, of a total overall salaries. And um you could see we came
in just at 3% on our total salaries. Um I think we had a time card issue with how it goes how all my um people are are charged from time card to our budget. So we did meet I believe between the us
Lori and HR we have a a way now that we can do this when we're moving people around and it'll uh the budget should look um it should the actual should match anyway. So, but I did provide that that um that number five sheet to show you my total hour salaries. And um part
of the that list is six full-time maintenance, one operation supervisor, 10 full-time custodians, six variable hour custodians, three seasonal grounds, one administrative assistant, and one facilities director. So, those are all the list that goes within the salary.
And we haven't really we haven't added anything um in the last few years. So, so that's a kind of a look at the salaries and next year we should be able to go between each building and figure out exactly the cost there. So, and then additional increases within the
courthouse budget. We have one slight increase in our professional services lines in both detox and DMV. We took them from 5200 up to 6,000. Um, but we did offset that. We ended up dropping our lawn detox by 2500. So, we offset
that a little bit. And and you can see in our utility line, we dropped that uh line by $15,000. And I'm going to talk about that because we're we're going to be switching one of our bills over to our family service center side because uh we have two bills in our more public
service utilities line. One is the courthouse and the other one is our power plant bill. And uh we feel that our power plant bill really majority of that cost goes to powering up the family service center. So, it's always been in that line, but we feel it should really belong in the other line. And so, we did
drop that a little bit, but we're going to see an increase on the other side there as well. So, um, other than that, we with the courthouse budget, we had an overall increase of 1.48%. Questions on that budget? Okay, we'll go to the family service
center budget. Three different uh categories make up this budget. The central services uh budget, the building manager budget, which is me, um and the building and grounds um operating budget overall. So um in our central services, we had a 12% uh decrease. Reason for
that, we had a long-term employee leave there and majority of that budget is salaries and so that overall budget was at 11%. Uh when it comes to our building manager, that's me. There was a 6.26 26 increase and that's all my being that's just all salaries there and then um the
big the big expense is the fam family service center building and grounds expense. So the utility line is the one I wanted to talk about that we dropped in our courthouse um uh we also did a couple different um lighting phases phase one and phase two where we
retrofitted all the lights. uh in phase one. I I believe I think I aggressively dropped it too much in the last couple years and so I'm asking to adjust that back up. Um I do know that we did a major lighting project this this year too as well. So um we're going to see
savings there, but I I think that 175,000 in that utility line is um going to be pretty close and I'd like to see how that turns out next year. So, I need with all the changing around, I needed I think I need a year to see what that what that utility line will do. So, as
far as revenue in the FSC, uh we have a miscellaneous revenue of $21,45. That's every year we charge the juvenile center for some of the power plant um costs and also uh some salaries uh a portion of salaries are charged to to
James' budget as well. And then um you're going to see we have a slight increase in our rent at $1,254,029. That's coming from our non-county tenants. And um if you remember, we did pass a systematic increase over the next
four years um for our non-county. And you're going to you're starting to see that slight increase there. And um it'll go up a little bit more each year. So you should see um a little bit more revenue there to help offset the cost. And then um you're show we're showing an
actual loss of $53,448. Again, you have an appreciation that we have to recognize and that number is $365,000. It's something the auditors have to recognize, but you know, if you remove that, you actually have, you know,
closer to $138,448 loss. Um, I'm hoping between the next four years Oh, go ahead. Yep. >> I lost track of where you're at on that budget. >> Uh, page 65. >> Oh, I'm sorry. Yeah. Yep. >> Yep. Page 65. Uh, down at the bottom.
>> Okay. >> You you're going to see it shows a loss of 503,448. Yep. >> If you look if you look up a little bit a little bit more, um, you're going to see depreciation line there and that's $365,000. So, we have to we have to recognize that
from the auditing world. I don't know too much about it, but that's something Lori plugs in. Oh, go ahead, Kevin. >> Yeah. So, the so the question is when you when this is calculated for the levy, is it calculated in with a $53,000
loss in that building that goes into the levy? If so, we're levying for depreciation. >> I don't believe we're that's the levy side. >> Yeah. So the the family service center is is not part of the levy. It's considered a uh like the juvenile center,
>> but if you lost money, you got to >> Yeah. The the other thing there too, um, Commissioner Campbell, is we have an actual operating cash of $1,74,000 and that's where that loss would come out of that. We've we've had, you know,
a running plus in that budget, >> fund balance, >> fund balance in there, and that's where that comes out of. So, so that loss wouldn't come onto the the levy side. So, so with that, um, any questions for me on either budget or
>> it comes off the fund balance. The fund balance is levy dollars that weren't spent from the prior years. >> No, it's it's operation. It operates as its own business. And so, uh, when the when there's years where there's a surplus, that goes into its own own fund.
Yeah. >> But yeah, we hope to make our way towards breaking even on that building. It's never been a building that's made money or it's been it's always had a little loss over the years I've seen. >> Well, that's that's that's the point that I always remember that thing is,
you know, wasn't until recently that we we've been breaking even in that building. >> Yeah. Yeah. And so going back to Commissioner Bearer's question, how do you um if you if you've we're consistently losing money
>> and I I say that, you know, it is what it is. >> Yep. >> Um but if you're consistently losing money, >> where does that come from to to make up for that? >> Yeah. So we can have we can have greater
detailed discussion in our in our update. When you look at your fund balance document, it kind of lays that out, but we can have some additional conversation then. >> Okay. >> All right. with the board again because I I look at page
I look at page five and you know um I I it's calculating 365,000 depreciation in there is uh which in essence gets you to a negative balance.
I I I'm a little confused on And I can I can talk. >> Yeah, we'll have to talk about it later. That's fine. I I still question it. >> Any other questions from for me? >> Everybody good for now? Go ahead. So,
what is the total increase you're asking for all of your for your complete department? >> Uh, it looks like we have about a 3% increase on our salaries for our um main salaries and I think we're at 11%
increase for the the variable hours which is a lot smaller. So, and that's all I guess colon steps and everything. So, no new requests added or asked for me. >> Your your increase is strictly on labor.
>> Yeah. Right. All good, Ezra. >> Yeah. >> All right. Thank you, Joe. >> Okay. Thank you. All right. Next, we have our uh [clears throat] Brian Melton for our attorney's office budget.
Thank you, Mr. Chair, commissioners. Uh thank you for the opportunity to uh submit the county attorney budget uh and go through that. I don't have any I don't have any new uh requests um other than and you'll I'll point it out within
the budget than the Axon justice uh software that I'm uh already been authorized for that's in the budget and identified as as new. Um otherwise u increases uh primarily are just what we've talked about from other budgets
the uh cola step increase piece u where it may have increased with insurance and then some software uh pieces that we've seen but also talk about trial prosecution uh budget um and travel expense that has gone up a lot because
of certain um bigger cases that we've tried. So I think just uh starting off in the top of the budget u we're not a big revenue uh producer as you know um we uh the primary uh one is refund uh that we get
that's a formulated uh piece that comes from Lori that's uh primarily from work that we do with social services. Uh so that's the the revenue side again uh salarieswise within the county attorney budget um cola and step uh with any of
those uh the new PFML uh line that's in there. So the printing and publishing line as you see uh if you look back to to last year u highly higher over we're working to increase that one. Uh, I went up a $1,000, but
I'm going to probably have to push that higher. That's primarily our uh West Law research. So, that's using that's what we do daily to research legal issues and writing briefs, that kind of thing. Um, so that's that's definitely been over. We're going to have to look at that
maybe a little closer, but that's where you see that from last year. Uh, 6246 trial prosecution. If you look at 6246 and 6331, I would tell you that primarily they are
go together. Uh you can see from last year our increase or our overage uh was due to some largecale cases that we had. Um you know so we budget trying to you can see two years back we were under budget uh last year
over budget. I would expect likely we'll be over budget this year, but with that, that's always one of those things you're trying to regulate the best you can. I I think increasing it by a thousand is appropriate and we'll just have to kind of watch that closely year to year and see where we're going and if you know if
we're seeing more and more of those bigger cases. That travel and expense I would say also goes with that trial prosecution and those overages are largely related to having to pay for travel with expert witnesses that we may
have or out of state witnesses. We had some different cases where we had some people out in Michigan uh in Arizona over last year uh and this year we've had a couple different out of state witnesses that we have to produce travel. our computer software uh line 6404
continues to increase. Uh so you see that increase as well. And then 6820 uh I Lori and I talked about that's that 36,000 that's for Axon in the future budgets that'll go up into computer software but I did want that just
itemized this year to identify that that's the that increase which is shown as 100% change is the new Axon justice which I think will be we're just starting to implement that and we'll go live August 1 with it. >> One question there. >> Yeah. Wouldn't we reduce the computer
software some of that? >> No, not the the computer software. Primarily that software is the um uh my MCAPS, which is the Minnesota County Attorney's Prosecution software. That's really our database software. So we went
paperless and got rid of I mean our paper reduction went down greatly but our computer usage obviously and you know now taking computers into the courtroom that's our those are our files now so that's that software that keeps being
made remade you know increased everything else that's our primary database software that we use >> then this new one that's coming on for 36,000 I thought we were replacing that with some old stuff that we were using >> I think you'd have to look at Rory's and talk to Rory about storage that that
storage component that we have. Uh whether or not that's repurposed in some way or reduced down, I'm I'm not sure exactly, but I that's where that would come off of came out of Rory's that's now in mine specifically. >> All right. >> Any other questions regarding uh mine?
If not, so we're looking at about with with the increased change with the new software an 8.34% increase. And if no other questions and I just move to victim uh services uh portion of
of my budget. Um we do have the grant uh piece that's coming through uh for restorative justice, a two-year grant u that's that's listed in there. um as well as some other grant the other grant fundings that we get um that would
show towards the um revenue side. Again, no other um no other requested increases or changes uh other than uh step and cola uh in regard to those uh salaries.
Um and then primary the that's 6271 on the bottom. That's the grant side of things that aren't going into salary, uh, such as our stat statistics piece that we're paying out to use the grant money up or monitoring some of the RJ
things and and, uh, some other trainings that we've used within that. So, that's what those are budgeted for. So, it shows a 10.96 increase, but I would just say that I think a a good size portion that although there's changes to the uh
with cola and step, some of that is just included within the uh payout of what we're getting from the RJ grant and what we're paying out with the R.J. grant. Otherwise, I don't have any other information really to highlight on the
victim service side. subjecting questions. >> The salaries part-time on that one. Did you mention that? >> Correct. We're paying a a part-time salary out um within that budget. So, there's there's different components that went into that or excuse me, within
that grant. So, the grant uh went to some training uh went to statistics uh person that we're paying to to try to track and see if we can identify that. And then there's a part-time uh individual who's included in that
for two years, which I think is largely what would show or why some of that increase is showing in there. Um but again, that's that's grant funded for two years. And then I it sounds like that grant will come around again in approximately October,
November, and we'll apply again to see if we can get grant money again. And if not, then we'll expect some of those services obviously will go away. We have our full-time RJ individual who's who is a full-time employee, but the the other added pieces that helped with some of
the out of county stuff or outer county smaller towns, some of those things may have to go away. There's any other any other questions? >> Thank you, Brian. >> Thank you all. >> All right. Uh, next on our agenda, we will have a
county 20 27 preliminary budget presentation. Uh good morning uh Mr. Chair, commissioners. See if this is any better. That one seems to be quiet this morning. Uh this morning we have a really a twofold
update. Uh one, uh we're going to be providing a one of our quarterly financial updates. uh where we're going to be addressing uh the 2026 budget expenses focused uh to yearto date uh going through June and we're also going
to be uh looking at the 2026 sales tax figures and although you haven't heard from all of our department heads um to this point we're also going to provide you the first look at the summary of the 2027 tax uh levy by funds uh and ex
including the external requests uh that we have uh have had from from some entities. Uh as uh as you are aware, you guys did make some decisions or recommendations on on uh two areas so far in fin in uh excuse me in highway.
Uh you requested that $200,000 uh from the striping budget be be shifted or removed this year. Uh and you also have discussed uh removing the market study uh from HR's budget uh and utilize fund balance for that cost. And
so those have been removed as part of as part of your uh presentation this morning. And lastly, we'll look at the the fund balance document ending in 1231. Uh we did look at that earlier this year, but there are uh just some minor adjustments that have
taken place. So, as we go through, if there's any questions that this board has, uh, please please make sure that you let me know and we'll try to answer those for you. The first document that we have, uh, again, is our halfsent sales tax. Uh, as you recall, uh, just
for the public's knowledge, this halfsent sales tax was voted on, uh, by our citizens to approve a halfsent sales tax for our correctional facility and law enforcement center. Uh, we have uh, initially had anticipated 1.6 six million dollars to pay for pay come out
of come out of the halfsent sales tax and as years have gone on we've continued to see increases uh in that sales tax uh it's somewhat plateaued now but it's allowed us to not have to levy any funds uh at this time towards uh the repayment of the bonds uh for the law
enforcement or correctional facility as you can see uh in 2025 2026 far column on the right uh we were continuing to the uh caps and sales tax collections at or above. We did have one month where
we were roughly $5,000 $5,000 under uh the collection from the previous year. Uh but uh in all of the other months, we we've seen slight increases uh to increases up to to roughly 20 $20,000
more than last year. And so again, uh the recommendation to the board would be that we would continue to not uh utilize uh any levy dollars to to make the repayment. Uh that the halfsent sales tax funds would be sufficient uh to make the required payments uh for uh for
those two facilities. Any questions on that document? >> Can uh can we get the um remaining debt schedule on that bond? Sure. Yeah. That's >> uh so we know have an idea
on what our total financial commitment is from this day forward. >> Sure. >> Both principal and interest. >> I actually have that worked into this spreadsheet already. So I just didn't print it out yet. >> Okay. And then and then um and also what
portion what funds are we obviously we're collecting more than our annual payments are right. >> Correct. Yep. >> So how much do we have set aside to help that already have set aside to help cover that remaining
financial obligation? I we don't I don't need that right now, but I it'd be nice to have that moving forward. Um it appears to me that we're going to be sitting just fine with >> we actually have about $6 million in the
fund right now. >> Six million in the fund. Okay. >> Yeah. So, that's good to know. And then and obviously that in does that are the interest that we earn on that is is that are we able to use that for other things
or is it is that is that obligated for >> actually we we're just we don't set aside anything specifically in this fund for that in the beginning in the construction funds anything that we had in our bank was specifically allocated towards that building fund. >> Yeah.
>> But this is not at the >> Okay. So, so on the $6 million that you have that we have in the bank, that's for the purpose of paying for this. That's earning interest. >> It is earning interest, but it's going into the general fund. >> That's exactly what I want. Okay, that's
Thank you. >> And do we have that amount? >> We have six $6 million. >> No, the amount of interest >> I don't I don't I don't keep track of that separately. >> We have She has a lot of interest, you know, other than just that $6 million. This is just part of our general fund,
our overall treasures cash balance. >> Lori, I guess I just didn't know if the law required that that interest on that money had to go towards >> No, not not for these funds. For the construction funds, yes, for these funds, no. >> Okay. All right. Very good. Yeah. I I
guess I would just like to be able to see, you know, what is the remaining debt? Then you subtract that $6 million that you have. This is how much we still need to raise in how many years. >> Right. I I actually have that in a spreadsheet already. So, >> thank you.
>> All right. If there are no other no other questions, I would just move to our summary of revenues and expenditures by department document. Uh the first the first page I would like to cover is the the general revenues. Uh excuse me, the gen the general revenue heading on the
on the left side. uh we have uh when we we've on had ongoing reviews with Miss Johnson and I uh you know generally we'll we're 50% through the year based on on this review. Uh when you look at uh where we are from a percentage
standpoint, um there are there's really only one area that uh from a from a department standpoint that we're out of alignment with and that's in uh that is in our emergency management. Uh and that emergency management was was uh is out of date due to the retirement that we
had in that department and the payout of payout of that employee. uh because we do not as a county do not um plan to budget or budget for for those people retiring with with banks. And so that's the difference. Uh we also have a couple different areas that are
100% as you recall. Uh there's different payments that we make uh to both uh to both uh of our excuse me to our non-county entities uh that that come out at at a one-time payment. And so you're going to see uh different or
multiple times per year. So you're going to you're going to see uh some of those that are 100% or in a higher higher range. Uh and that is attributed to the time that we make those payments. Again, our focus generally is is all on expend expenses here. Our our revenues are
generally anywhere from six to eight weeks behind. Uh so it doesn't provide a a true uh true ex uh explanation of where we sit sit there. But through our review uh of uh this first document, uh we we don't see anything of concern. uh
from budgets. It appears that our our departments are are meeting the expectations uh of that of what they've set for themselves. With that, I'd yield for any questions on this this page. >> We only pay that out at the end of the year. And so there's actually a reversal of a
journal entry there. So that's why it's a negative amount right now. So, but we pay those out in December and so we only pay it out once. >> Most that has to do with the abatement program, right? >> Yeah.
Well, the you have the Greater Fargo EDC included in there, but I think for 2020 six, didn't we have 10,000? >> 10,000. Yeah. So most the vast majority of that would be the >> is the abatement. >> Yeah.
>> If there are no additional questions there, move to the the second page. Road and bridge is the first first area uh on that list. Uh again uh very similar situation of what I just explained. uh most of the uh most of the expenditures
for uh for these each of these areas are within a 50% a 50% time frame unless there is a one or multiple time payments uh for for your as we reviewed this document this week again uh we had no no
additional concerns from a from a a expenditure standpoint and where we are from the budget with that I would yield for any other additional questions here. I think that uh if if there are no additional questions, I think that uh as
we as we reported earlier this year during our update, I think that the county uh appears to be in a strong financial position for this uh this year with no uh no concerns at least at this point halfway through halfway through our budget cycle.
All right, the next uh the next item uh that we have before you is a summary of the 2027 tax levy by funds. Uh again, it's been our practice here at Klay County. You have this uh this document right here. Uh it's been our practice to
uh bring you uh essentially a a I guess unedited version of just how what the requests are. As I mentioned earlier, there have been two changes uh both in the highway and and the HR market study that has been adjusted from from this. Uh again, you have not received all of
your all of your updates uh to this point from your uh from your departments, which is consistent uh with our practice in past years, but uh again, wanted to get this in front of you. Historically uh we come out in between anywhere between 8 and a half
and 13%. Uh to give you some context, last year when we started, we were at about 12.75%. Uh and so if you take a take a look at the general the general reserve fund uh the proposed uh proposed amount currently sits at 32,655,99
uh or a 10% 10.02% increase over last year. Uh if you recall, the board chose to utilize $1 million $1.5 million out of uh the reserve fund uh this this year uh for this year's budget from 2025. Uh and so
that is not captured in that 29,682,280 uh from 2026. Uh and as we shared during our during our intergovernmental retreat again give or take the number of employees that we have our cola steps and insurance are equivalent to about 6.4 four, excuse me, 6.55
uh percent. And so I think the benefit the benefit that you see is one of the benefits that you see here is as as we've discussed as a board and you've provided directions to our department heads and and administration uh that we would we would look to tweak our budgets
and tried to decrease if you look at the combination of of the levy money that was provided or money that was provided to the levy from the reserves uh and the cola steps and insurance uh that we see a actually see a decrease in water staff are asking for in the levy. Uh Ron
Bridge, again, this is generally an in-n-out. The the Ronen Bridge has [clears throat] $400,000 that goes uh uh for the levy annually. Uh our five-year plan is paid for with those funds, but also both state and federal dollars that
we receive. Uh and so again, the road and bridge fund is is we have a pretty large uh pretty large uh construction season next year. And so that's where we attribute that increase. A building fund that goes to Joe to take uh take care of
some of the the carpeting and paint issues uh that we have within within the campuses. Uh also our library uh our library amount uh the request this year is $382,220.
Uh that is up a 5.38% increase from uh $362,690. Uh again we will be having the library in here during the budget season to to present their budget but that is uh where the request is at. >> What are we mandated by? Uh so every
August 1st we get a we get a statute requirement uh of where that is at and so we'll know exactly what that is. >> Uh it does I think uh I think I reported last year it was right around $222,000. Um and so we do pay more than what the
state requires. Uh we have debt the next two items are debt retirement. debt retirement on on the uh the DMV actually dropped to 66% uh to $550,227 and then our our debt retirement on
county projects uh had just a slight increase. They all as was mentioned earlier come from our schedule and then the proposed 2027 cost would be $526,812. The last item, the last item on on this category is social service uh fund. As
this board is certainly well well aware, you've had multiple conversations uh over this year and going back to last year on some of the shifts uh that have happened both from the state and the federal government. Uh and so we are looking uh at a a proposed
increase of 15.54% after the adjustments that have been made by Quinn and his department. Uh the proposed is $18,360,154. And just for some additional clarification, uh that that includes both a SNAP the SNAP penalty that we are
potentially looking at, the SNAP administrative fee that were both brought on by HR1. Uh the LTSS increase that Quinn highlighted unfortunately during the last board meeting. uh uh that we were in a certainly a stronger position in there, but that was over
$500,000. Uh but just uh again, Quinn has talked about this, but this does not include any funding currently for the African-American Family Preservation and Child Welfare Disortion disproportionality act or the act as we we often talk about. And so um he has he
has shared shared that in his in presentations, but again just want just want the board to be aware. And so from a from a levy standpoint, uh that tax levy of 58,817,6 within that uh there are two renew
requests. I know that the board has has asked our departments over the last two years to limit the requests. Uh both of the requests this year, if you take a look on on this document, um are coming out of the sheriff's department. Uh the sheriff is requesting an additional
deputy uh at the cost of $84,100. I believe the sheriff's going to be here next week um to to present his budget. Uh and then they're also within the correctional facility. They're looking at adding uh an additional position. I believe it's a sergeant position. Uh and
that total cost there would be $81,342. And so as far as new requests go, um that is our that's our total ask that sits in the budget as we are uh where we're at today. Any questions on the new
requests? If there's no more questions, that brings our total levy up to 58,982,448. Um minus our county program aid. Again, uh the same uh same timeline as we discussed earlier on the the library uh library requirements. We will know
August 1st uh or by August 1st what our county program aid for next year will be. Uh we've just plugged in a number that we had uh in there for last year just for context. Um the legislature did not increase or decrease uh that uh but
a portion of our county program aid is also based on a formula of need. Uh and so we don't know we don't know what that is yet. So there could be a minor adjustment either up or down to the county program a but again we'll know August 1st uh and let the board know. So from that standpoint if you uh you
remove uh the proposed or the estimated county program a give us a spread levy of 53,457,853 uh or an increase of 13.06%. Uh when we look at the new construction uh that uh that the county has had over the last year, we're looking at a
decrease then of that of 1.04% uh or a net levy increase right now as we sit at 12.02%. As I mentioned, uh we certainly know that uh that this is not anywhere near where the budget the board wants to be
from a levy increase percentage. Uh again, it's been our practice just to bring this full dollar amount and and percentages to the board uh as the first look uh and then uh we go that go from there from the standpoint of of direction from this board of where you'd
like to go. With that, um I'd yield for any questions on the tax levy by funds. All right. If there's no no additional questions, I'll move on to to the fund the fund balance document uh that uh that you guys have seen uh before. Again, as I mentioned, there are some
minor adjustments uh that uh that have taken place uh since we we talked about this in May or April. uh and and so I'll just uh just pro provide just an overview again again the general reserve
uh saw a fund balance increase uh of 20 million8 or $581,152 again significant portion of that was a market value adjustment on our investments as we've spoken uh several
years ago we the market took a qu we our investments took a hit in the market we did not sell those and So, we're we're seeing those increases come back on paper. Again, they're only losses in the event that we were would have sold uh sold that. And so, we had additional uh
additional funds increases from the jail, our DMV uh the investment that you've made uh in in the staffing and the resources there continue to see increases in the number of uh citizens that we're able to uh to
process and meet their needs there. And so we've uh we've seen an increase uh in there. The jail has had some had some outofcount non-member uh rates that also increased increase there. So are there any other items there? I think those are
the the main the main areas. So as you take a look at again we saw 2.4 million increase there. Uh, and within the general fund, there's $12,964,656 that are unassigned. Now, that does not necessarily mean cash. Um, but but it uh
it is the unassigned amount that's listed in there. >> So, one question there for the jail, that $6 million that would be assigned money, correct? >> Would that be in that general fund? >> No, that's not in the general fund. That's actually a separate fund.
>> Is it on this paper at all or No, >> not on that paper. the interest on this paper then >> the interest would >> interest is included in the general fund >> in the general fund. Yes. >> And do these show the numbers after we took the 1.5 million out from last year
to fund this year's so this is >> well it that comes out this year we >> No that does not show this >> correct >> but the 1.5 was taken out from the previous year. A million dollars was budgeted in 2025
to be used >> for 26. Uh >> no, in 25. So we had expenditures over revenues budgeted of by a million dollars in 2025. For 2026, we've got 1.5 million budgeted expenditures over
revenues. So we've budgeted to use fund balance if possible. >> Where do we where do we take when do we show that on this paper? Do we take that money right away at the beginning of the year or we slowly take it out throughout the year? >> Well, it's it's not a fixed number. It's we've budgeted to use that number, but
if we don't spend that, we don't take it. >> So, it's not like a journal entry we make. It just is at the end of the year, then we figure out if we've got revenues over expenditures or where we end up and if we needed to use that. >> Any other questions on the general fund
balance? But to follow up with that, you just showed us how the cash flow looked at this time, right? >> Yeah. So the fund balance is a snapshot at 12:31, >> right, >> of every year. Yeah. And that that of
course fluctuates and Miss Johnson has talked about in the past, you know, we get to the point where um you know, we have a limited cash, then we get our taxes in and we're then but a lot of that money comes in immediately goes out. Uh and then so we're we're
constantly riding a wave. Um >> can I just ask for clarification again on on this $1.5 million? So when back in 2025 when we were doing the 2026 budget,
we looked at we always look back at what the previous year's revenues over expenditures were. So, so we took um we took money from revenues over expenditures from 2020 year in 2024
and applied those to 2026. And so when we do so when we when we were in 2025 or now that we're in 2025, we don't estimate revenues over expenditures for the current year. We
look back, we'll look back to what the revenues over expenditures were for 2025. >> For 27, we'll look at 25. >> Right. Right. So, >> yeah. I just want to make >> Do we know that number of 2025 yet or? No. >> Well, that's what this number is.
>> That's what the 2.4 million >> 2.4 million. That's the 2025 number at this time. There may be small adjustments, but it should be pretty solid right now. So that's the number we look at to to determine whether we feel comfortable
using fund balance in the future. But again, because I always ask the question, you know, when we do when we do our budgets and we're preparing our budget now for 2027, we're not budgeting for a surplus.
>> No. >> No. >> We're not budgeting for a surplus. So when we get a surplus, you can you can look at it two ways. We overcharged, >> right? Because we didn't need it.
Or or we just anticipated wanting to have u additional money put into our reserves. If that's the case, that should be a line item that would show that. >> But we don't do that. >> Yeah. We Right. We we we don't do just as a matter of the departments
watching what they spend. You know, in the federal government, typically if they get to the end of their fiscal year and they've got money left, they go ahead and spend it. That's not how we do it in Klay County, >> right? >> It's like you only spend it if you need to spend it, >> right? >> If you have extra money left,
>> you don't go and spend it >> because you didn't need to. You only spend. Then but then again when you take a look at when you take a look at our budget process Lori though we we never we never budget based on for example we
don't we don't budget 2027 based on actual 2026. We budget 2027 based on 2026 budget. >> No we don't. We base it on we base it on
actual 2024 actual 2025 and year-to date actual 2026. That's how we budget. >> But when but when we look at our percentage increases. >> Yeah, that is >> we compare percentage increases based on the 2026 budget versus the 2027 budget.
>> Yes, that's true. But that's not how we determine the 2027 number. We determine it by actuals. >> Okay. We always look backwards the first the two full years that we have and the current year that we're through to look at what we're actually
spending and that that ch budget change is that is based on the previous budget but not that's not how we determine the new budget number >> and I and I and I and I that's great >> but the fact of the matter then is I I firmly believe that we're actually then
having a higher percentage increase than what this is showing because if we've if we've consistently in these last few years had revenues over expenditures and and we're we're projecting our budget based on actual
and but but the budget shows 12% net this year over last year's budget and last year's budget we didn't spend at all. So the increase is actually even higher. Well, what we've
um when we look at why we have this increase, 1.2 million of this of the 2.5 million is on paper. It's just that that market value adjustment for investments. So that's 1.2 million of it. And then if you look overall at all the employees
that retire >> Yeah. >> and and the decrease and the if they change. So you know, a lot of it is that salary budgeting. So if we wanted to budget, you know, and short our salaries budget. >> No. >> But and we do it if we know it. >> Yeah.
>> So if we know somebody's retiring, we do make that change. But if we if we don't know somebody's quitting or retiring, then we budget for the full salaries. And that's where that largest amount comes from, >> you know. >> And I think when we look at our budget, so when you look at counties
holistically across Minnesota, counties do one of two things. They either they either use fund balance like this board has chosen to do going back probably the last 12 or 13 budgets or they they look at budgeting two percentages of
anticipating staff turnover and gaps but they don't do both. And so that's I think kind of what you're talking about. >> Can you explain to me this market value adjustment? Well, in 2020,
we had a market value adjustment the opposite way. So, we actually had a negative interest revenue, a substantial like $3 million, a huge negative amount in 2020 when the value of the all investments just dropped. Well, now as
time has moved forward, now the value of our investments have increased again. So, now we're recognizing to get back. So, we'll just say we had a $100,000 investment. It was valued at 93 93,000 in 2020. So,
we had to decrease our interest revenue by that 7,000. Well, now those are creeping back up. So, now they're valued at 99,000. So, we've slowly recognized that increase. >> That's why I was wondering, how could you how could you ever have a market
value loss unless you're in the market? We're not in the market. Right. >> These are just the value. We have a market value of our invest of our investments and their CDs and stepups. Uh that's what that's the only thing we're allowed to have. We're not allowed
to have >> That's my That's my point. So So you really don't lose money. >> You don't? No. Because we we don't sell these, right? >> If we would have sold them in 2020, then we would have actually lost money, but we don't. And now we're slowly g gaining
that back every year. So I don't necessarily agree with having to recognize those. >> I don't agree with it at all. >> But >> is that is that mandated by the state to recogn >> that's Gazsby >> Gatsby rules? >> I mean I can certainly understand it if
we're if we're if we were investing into the stock market because then you're subject to whatever that market does. But when you're you know even a I remember years ago what it was called
the 4M fund or whatever. I don't that was a government place where you could >> we have magic. >> Yeah. The magic fund. Yeah. But has the magic have we ever lost money in the magic fund? >> No. Not right. >> Not not real. It's only on paper.
>> Yeah. Okay. And I think to your comments, and we've talked about this in previous discussions, but to your comments in in this budget, the only two items that that we could say that we're funding uh for a surplus would be in our capital
improvement plans, right? And this board has utilized that uh for for each of the departments to save for larger capital items annually. Uh so subsequently it's a it's a cost uh I won't say it's a cost savings per se but it it helps the
fluctuation from of the of the levy to not have to say okay we need a $1.2 million B magg this year and all of a sudden it shows up in our budget. Uh and so that's that's one area that we do we do plan ahead for. And the other piece right now is currently the insurance. We
put $250,000 uh for um whether or not we've t we've talked about in the past of when we not uncertain of what our next next item is going to be uh next contract or if we were looking to self-insure at some
point. And so that that is that also $250,000 is included within this budget. Um if there's no other questions in general fund road and bridge again this is an in and out a lot of times uh we we show that a loss but as we talked about
earlier this year a lot of that is based on uh federal administrative uh costs or or repayment from the federal government for projects that we've done. Uh and so while it shows a loss, we're not we're still um going to be receiving dollars
that will impact that. Uh social services uh again we saw a decrease here uh from 11,772,123 to 10,22,854 or a decrease of 1,569,269. Again, as Quinn has shared, a majority
of that was about 1.1 million in auto placements. Uh, and so that was an impact. And also, uh, a significant portion of that also had to deal with rule five youth, uh, that have significant mental health, a lot of them
that are are connected to uh, psychiatric residential treatment facilities, and then also federal administrative decrease were the were the main items uh, in in that area. So, one one question there. We're sitting on unassigned about 11.5 million. Correct.
In that account in social services, >> it's actually assigned to social services, but that's it's not reserved or designated. >> I mean, can that can that pay for all the SNAP and all the stuff that state and feds have pushed down to us in social services? Is that >> I think as a board you can choose to do
whatever you would like. um you know from time to time when we utilize uh you know uh two years ago I think we did 8 1.85 million we had a million from general fund we had 250 from from >> 3 350 >> 350 social service and 250 for public
health and so I mean as a board you can choose to take take that wherever you'd like. Uh again, one of the things that we always want to be cognizant of from a from an audit standpoint, uh in order to keep our bond rating the way that it is, we're they need us to have a certain dollar amount or would like us to have a
certain dollar amount uh in in reserve. Um but uh as a board >> total dollar amount or each department to have a dollar amount in reserve, >> it's it's broken down into the reserves and then the individual individual depart or departments. Yeah.
Um if there's no additional questions, moving on to building. Uh again, um Joe has two different funds, fund 13, fund 19. Uh and uh again, one's utilized to uh to do like some small projects like carpet and paint. The other one is to do
projects uh within the facility, not necessarily within people's budget. Uh and so as we sit uh sit there right now, we saw a decrease uh of $120,647. Uh again, that uh those are some of the
building projects that were we discussed as far as uh probation um the adjustments that we made over at the family service center uh in the last year uh to cover those costs. And so there there uh there we sit at a fund
balance of $13,398. again that gets replenished uh each each year uh with with a certain dollar amount. Um but that's where we sit today. uh internal service. Again, uh as I
mentioned earlier, this board has made the decision to uh to se selectively have counties or excuse me, departments within the county save fa save dollars annually or each year uh for a portion of of large purchases uh to minimize the
fluctuation of the levy. Uh and so right currently, this is a combination of everything. We have 13,594,691 in. Uh again, we've made no significant purchases to this point. Uh but just as a a reminder, an example, uh I believe
that uh Justin will be here later this year for some uh for some equipment that uh that costs about $300,000 a piece. Uh and so it does uh again, it's a benefit from that standpoint. appears to be a large amount of money, but it also uh
also goes to to limit our levy. I also think it's important to note that when we go through our audits, uh the county auditor, state auditor also includes this dollar amount in order for us to to get to that six-month six-month uh amount that they like to like all of our
departments to have. >> Uh public health, >> one one question for internal service, what is the amount that we levy for that every year? We don't levy anything specifically for that fund. We le we levby line amounts within each department that then that
that line amount is based on >> the depreciation schedule plus a 3% cola is what we've been recognizing >> for for whatever equipment they have within that department or the replacement of each specific piece of equipment. >> Okay. >> But going to Commissioner Beer's
question, you we could probably you could probably tell us how much is act How much that transfer >> countywide? >> Absolutely. >> Is being invested in >> I don't know what it is off the top of my head. You got say it's like
>> $3 million. >> Yeah. >> No, it's not that much. >> If you could give us I assume that's pretty easy to >> pick out that information. >> Oh, yeah. No, I've got it on a >> Yeah. >> on a spreadsheet in my office. Yeah.
>> All right. to public health. Uh we did see a uh see a increase here uh from from $18,711,753 to $19,462,865 or an increase of $751,112. Um again, I think we've shared in the
past that starting next year, detox will not be a part of this. Um but uh but currently uh currently detox is is included in that and that's where you see a you saw an increase in 2023 of 5.9
million. Uh in 2024 there was an increase of of 8.86 million uh based on based on the construction project and uh that's attributed there. >> I have a question regard public health.
A lot of their dollars are brought in by grants. Those grants build this number, don't they? >> Go ahead. >> The biggest portion of this number is the building that we just built. >> Oh,
>> that's that's what the biggest portion of this when we move detox out of there, that'll drop drastically for the at the end of 2026. >> Okay. Okay. Then do we know what that's going to be roughly? again back at my office. >> Okay. Maybe we should uh I think that
would be helpful. >> Sure. Yep. >> Will we be creating a separate enterprise? >> Yeah, there's a separate enterprise enterprise fund specifically for detoxes. >> All right. The the next uh fund balance
we'll look at is solid waste. We saw a decrease in in uh in the fund balance there from 23,561,221 to 23 million $1,269 or a decrease of $559,952. Uh the family service center, this is
the questions came earlier in our in our board presentations today. Uh we did see a decrease in fund balance in the family service center from 1,666,83 uh to1,575,36 or a decrease of uh $90,777. Again, Lori, the board earlier today had
a question about how Joe's essentially budgeting for a deficit uh with the use of depreciation. >> He's got a depreciation line item within his budget. So, he budgets for that deficit, but again, that's a not a cash
item. So, >> not on the levy, >> correct? And then uh the juvenile center uh fund balance saw an increase from $6,297,890 to 700 or 7,683,920 or an increase of 1 uh $1,386,030.
uh again enterprise fund uh there and is a part of our part of our multi-county juvenile juvenile facility. And so with that I would yield from any questions from from the board
is the um this whole deal especially on these enterprise funds it's kind of it it can be somewhat confusing. For example, when we talked about the public health and it's sitting there showing 19 million and and of course part of it is that building
um you know and in the family you know in the family service center we're we're down to $1,575,000 in in that account. Well, if you include the building, um,
>> and the reason that's low is because the building is depreciated out, >> right? But >> but in fact, it's >> still there in operating >> and it's worth more than $1.5 million. So that's that's where this is kind of
these enterprise funds even the so on the juvenile center how much of that is still attributed to building value versus um funds um built up cash funds built up >> I don't know off the top of my head but
I'm guessing it it looks like it would be about four million or so just a guess though. >> Yeah. So when we're trying When we're trying to look at a from a budget standpoint on annual
basis based on cash needs, we have we have in some of these funds building values that can skew what we're looking at in terms of what's real available money versus what isn't,
right? I mean it's >> Do you have a document that shows what real money we have that we have access to real money? >> Yes, I do. >> What can is that on this is am I missing it on this piece of paper or no?
>> Well, right now we have at the end of at I I just printed off at the end of 2025. >> Yep. We had $72 million, but five million of that belongs to school districts and municipalities.
And then we don't collect any tax dollars for until May 15th. And so we have we have to spend all of make most of our expenditures all of our expenditures in the general fund through that using those fund
balances as well as the other funds. Although some of those do get some state and federal grants, but the general fund. So, we have we have to have a a decent reserve so we can spend that first half of the year from those cash reserves. >> What would be interesting to see is what what that number that Commissioner Bar
asked what that number looks like at right on May 15th before collections come in. >> I can I can print one at the end of April. >> There you go. Well, that would be close. That'd be close. That would that would that would be more that would tell us more than anything because you'd basically be saying,
"Okay, we you know, we've completed all of our financial obligations for close to the first half of the year or based on when the collections come in." >> Yep. I can uh I can print off the end of April and see what cash >> you do the end of April and the end of
September, whatever. I If you can do both those, that's >> Yep. That would be more telling than December 31st, right to me. >> And we've got about about $20 million in investments on an ongoing basis in the general fund, >> right? Yeah.
>> About 20. >> And those you don't want >> could be part of that 72. >> Correct. Yes. >> But that that those that's not liquid. >> No, I know. But but >> but it could be liquid. >> Well, you could be down the road. Yeah. I mean, down the road as CDs expire, >> right? >> They could become liquid. I mean, you
could you could make them liquid, but then you might not you might lose all your interest. >> You'd be penalized and and you'd be selling at the current market value, whatever that is. >> Yeah. But >> so could be a double hit there. >> It' be good to know that those numbers.
>> Good conversation. >> I haven't heard any questions like that since for a long time. I'll put it that way. That's good. Uh Mr. Chair, that that concludes our our our formal formal presentation. If there's any additional questions, happy
to try to answer them or get them to you at a later later time. >> And Lori, you do a fantastic job. >> Thank you. >> And now we have this problem on our hands.
So, >> we'll do our best to prepare for the new person. I'm I'm hopeful that you will be you'll be a very important part of that process. Thank you for all that you >> Yeah. Thank you so much.
>> That it good? >> Yeah. I got >> Jenny anything. All right. She's frozen. >> Thank you. >> Oh, there we are. >> Her screen is locked. Her screen is locked up. >> All right.
So, are we on to our committee reports? >> Believe so. >> All right. Do you have anything you want to present mojo on reports or do you want to wait till next week? >> Thank you, Mr. Chair. Just in terms of communication, if you
don't mind, I'll do two reports next week. I'd like to fill you in on the conference. >> Okay, sounds good. Commissioner Campbell. >> All right. I had um the only meeting that I had this last week was the West Central Regional
Juvenile Center uh meeting at which we it's that time of year where we establish the budget for West Central. And um uh first off, we we talked about the
non-member rate uh that we charge to non-member counties and we reviewed that and um Jason came forward with two higher and a low option. And the low option would be
to have it be at $475 and the high option being 500 or $495. And uh the board did approve going to a non-member
rate of $495. Having done that, then the um the budget was reviewed and it was approved at a 4.99% increase. Um
and that includes the additional revenue that would be anticipated. uh how what that means for Klay County because all it it that changes a little bit because the way uh the way our members are charged is based on a
two-year look back. And so that two-year look back might be would obviously be different than just a 12-month calendar year. And we did that just to try to stabilize every county from having real, for example, you have Wadina County who, you
know, one in one person in there for six months really changes it for for a county, smaller county like that. And so the two-year look back kind of helped. But even with the two-year look back, well, I'll start with Klay County. In
2006, our share of the total operational cost for that facility was $81,000. In 2007, that number goes to $894,000, which is a $92,000 increase. And that's actually an 11.58%
increase. But so again, so then when you go back and you look at the two-year look back based on the num and that's based on the number of each what each county has in beds in the facility, Klay County's
percentage went from 31% to 33%. And so so then you have that increase of 2% on top of that based on the whole budget cost of the whole operation.
And so that that's why the 11.58% doesn't match up with the 4.99 that overall we had as an increase. So because Klay County had more kids in there, we take a bigger share of the pie. That's basically what it amounts to.
Um and and we wanted to make sure uh based on that based on our non-member rate, we count on them for a significant amount of the budget in terms of revenue. Uh just to give you an example here, if I
can find a page that I can read. Um the non the non-member revenue projected for uh 2027 is $2,500,000. And so we want to make sure that when we
incorporate those non-member rates that we don't start seeing that drop because there are other facilities in the state that they can go to. And and we James also does a really good
job in bringing us what those other rates are of those other facilities. And at 495, we are still below slightly what the highest of them in the
state are. But our facility, we keep saying it, our facility is, I think it's the beacon of all of the facilities in the state of Minnesota. uh we are we have probably the best
reputation and of programming for uh the kids and so I think that for that reason I think a lot of counties are want to see their kids come here and certainly Cass County appreciates what is being done
for their kids that come into this facility. So >> that I believe concludes my report. >> Very good. Commissioner Mayor, >> thank you m Mr. Chair. Uh on Thursday, last Thursday, I went to the the
chambers legislative preview got the preview uh review. Senator Coopek, Senator Johnson, Representative Joy, and Represent Gander were all there giving an update on how the session ended and a question and answer segment went on with
that. There's a very good turnout there. Very much appreciated for those four people for showing up. And then on Friday, I was at the public health partnership for health community board where we had an update on the vacation
home rental inspection requirements that the public health is in charge of and tailoring that with planning and zoning. They'll be going we approved them to uh start a rental ordinance uh a vacation
rental ordinance to go through the channels at Klay County starting with the planning and zoning and I assume it will end up at our board eventually to have another public hearing to solidify that. Then we had a presentation on incredible minds that is very very
intriguing on how that all works. We also had a dental innovation project update. And then yesterday I was up at Georgetown Township yesterday afternoon with the county engineer and the soil
and water conservation district Tony from that group with Georgetown township and we were discussing some sloughing of some roads along a wild rice ditch and seeing if there's an outcome that we could figure out how to
fix them and finding a money source for that. That uh is all my reports. >> Thank you. Um I'll start out. I had a four here. Uh
so on on Monday the 14th I had uh I'm sorry Tuesday uh July 14th. Uh I had that evening I had a more planning plan I'm sorry planning commission and
board of adjustments. uh mainly went through three things in detail. Uh one uh regarding preliminary and final plat for uh Prairie Parkway fifth edition. That's the addition going in just on the
south side of 40th Avenue and kind of in that Good Shepard area town just the east side of that across from Good Shepard to the east to the west. I'm sorry. Got it that way now. And then just south of it is another brand new
addition called the uh Partridge Creek second edition which is going to have about 163 lots and that was a preliminary and final plat amendment uh for that project which passed. And then
also we had um uh zoning map and comprehensive planned amendments um taking place for future builds for Concordia on A Street and 10th and 11th Avenue. More to come on that.
Uh on Wednesday the 15th I had two parts of a meeting with the historical society. Um first was our finance committee going through things current for the year things like u uh what we're projecting
to a hair higher which is really positive. And then the last part of the meeting is uh it's not our biggest for donations but it's the biggest for um an event for fundraising. We have our 5K
event fund run uh fundraiser that'll be October 10th and we're just starting to throw that program together. Uh last year we raised $3,900 on that event and we certainly hope we can do better on
that. We're um kind of growing along the theme of 250 years and so we're we're trying we had about 120 people last year. Uh goal this year is 250. So uh we're starting early and hopefully we'll
end strong and the weather cooperates in October. Uh on Thursday uh I had a meeting uh early the morning meeting uh with HR. they're going to be with us on August uh uh 18th uh for that our
afternoon session. So most of this meeting there there wasn't any discussion about uh their budget. I think that's being done during the next month and that'll get presented to us um uh in August. Uh but we did have the
auditor a auditor's report uh came back the best they could came as an unmodified report with no the plane report with no marked issues. So they do a very good job and uh they have a lot of detail coming that as most of their
funding is from the federal government. Um yeah and their properties um are are are doing well. They've got their vacancy rates are low and they're keeping them pretty good.
So, it's positive over there. Um, that afternoon I had my first meeting chair for uh West Central Minnesota uh EDDD uh which stands for economic development district. Uh it's part of nine county
group. Um main thing we had a presentation by the state demographer on trends and forecasts. Uh really paralleled what I shared last week from the AMC discussion. And I just want you
know for West region. We got a little tighter on the demographics. Uh certainly clay and otter are the two that are just by resources, size, other things that are uh really holding their
populations quite well. Um a little more toward unemployment rate or undermployment rate, I better use that word more correctly. And um anyway, it was good to see uh more demographics
about how the rural Minnesota area is doing when we eyes can hear statewide um numbers that um get I in my opinion skewed by the metro area. Uh we had I want to talk briefly. We have a loan
loan revolving fund that we uh reup and um that we renewed for one more year in 29. And these are small business loans, EDA loans that can be used for infrastructure or other more tangible
needs uh within an oper office operation or community. Uh last year in the fund we had um 43 loans that had added up to about $3 million that were put out. So that was very positive. And then last on
that we are starting the development of our next five-year economic development strategy and um um we'll get more on that in our next meeting in September. Um a lot more detail on that. And then
after that, I think many of you know Greg Wagner who runs that that ED uh department had a wonderful all fish fry. That's how we ended the day. So it was a good day for this fall. So uh that's my
report. Steve, >> thank you Mr. Chair. Last Tuesday afternoon I met with Kimberly uh from the recorders office. uh she's brought forward idea of how to streamline some of the work that we do within the land record departments. Appreciate Kimberly always looking for uh different ways to
better meet the citizens uh where they're at. On the 15th had department head annual eval prep. I met with James O'Donnell uh in regards to his upcoming meeting and some of the uh one of the challenge that that he's facing is is some payment from not from the state of
North Dakota or excuse me from the county of of Cass County but uh through DJS. They have a different contract uh with the state probation and they're they're looking to collect some funds uh from 2025 yet. um on met with Justin Sorum on his
annual evaluation on the 16th. Also participate in the chamber chamber event that Commissioner Bayer uh covered. Uh met with Commissioner Kavanagh uh on the 17th in preparation of today's meeting. Uh and yesterday morning I attended the
swearing in of Deputy Ortoff. Uh he came to us uh one one out of the initially out of probation and then most recently as a deputy in Renville County. Uh and so we are happy to have him on board. I believe that we're fully staffed in the sheriff's department now after this
swearing in. So um yesterday morning I met with Troy Amenson uh just kind of doing a uh around the county checkin uh and uh surprisingly at that point Mr. Robinson notified me that he was going to be retiring. Uh and so we will be
having a a pick meeting today and then a uh most likely a board agenda item here in the week, next week or so uh to address address that. Mr. Robinson's been here for 33 years and been in a variety of different roles here within the county. And so uh while I'm not
shocked, I was surprised but excited for Troy as he moves on to the next phase. Uh we uh then that afternoon had uh or morning had public health budget which you guys will be uh receiving here uh in the next week. Again, some pretty
significant adjustments that that have been made by Jessica in that department. So she'll provide an update here in a week with Brandon. Also had the pre-budget meeting for detox. Uh and just of note, I will be uh at the MEA conference uh both Thursday and Friday of this week. And that concludes my
report. >> Thank you. Ryan and behind the podium there. [laughter] >> Thank you, Mr. Chair. Um, I uh left for the Canadian Wilderness after last week's uh meeting. So, and and arrived
yesterday afternoon. So, I don't really have a report unless you want to know how many fish I caught. So, that concludes my that concludes my report. >> Thank you very much. Anything Sarah?
>> All right. Um, meeting is a journ. Thank you.