Health insurance driving Isanti County levy up

County's bill for employees and retirees will hit $2 million next year.

In 2009, there will be no new computers in Isanti County's government offices. There will be no new staff members. There will be no new equipment. Only those who need certification will be allowed to attend conferences. And the county will not put away money to buy future park land.
Despite all that, the county's budget is up $1.5 million over 2008. The property tax levy is increasing 3%.
What's driving it up?
Health insurance costs, according to Isanti County Coordinator Jerry Tvedt.
Next year, the county will pay over $2 million to cover its employees and retirees.
"It's huge," said Tvedt.
"Positions will be eliminated if health insurance changes aren't made," he added.
The county board hopes that between now and December, when the final budget and levy is due to the state, that the county's health care plan will be modified. If that happens, the county has a "Plan B," a budget that adds in much of what was eliminated.
Between now and December, the county will be meeting with its six various unions. Negotiations about health insurance coverage will be top priority. The county is unable to make any adjustments to its health insurance coverage without prior approval by the unions.
The county is considering several different options for health insurance coverage. One criterion is that the increase each year be set in advance. For the past few years, the county has had no idea each year what the percentage increase will be, and most years it has been in the double digits. In 2009, the increase is slightly lower than it has been in the past, but it is still nearly 10%.
Plan A: worst case scenario
The budget approved by the county board on Monday, Sept. 15, 2008 is set at $34,542,274. That is up from $32,975,026 in 2008 and $30,725,928 in 2007.
Of that, only $300,000 was set aside for capital outlay. That entire figure will go towards overlaying a section of roadway. No new computers, other equipment or vehicles are included. In 2008, the county budgeted $885,589 for capital outlay.
There is nothing set aside to hire additional staff, compared to $359,132 in 2008.
The amount the county contributes to various non-profits and other agencies, such as the Isanti County Historical Society, humane society, agricultural society, and soil and water, has been reduced from $326,717 in 2008 to $279,687 in 2009.
Overall operations are up $1.5 million. This is where the health insurance increase, along with fuel and utility increases, are factored in.
On the revenue side, the county anticipates pulling in $16,489,952 through various fees and grants. To earn a little more in 2009, various fees, such as those charged by the zoning department, will be going up.
Another $50,000 will come in through rental at Oakview. State aid in the form of HACA accounts for $1,899,673, which is up $237,000 over 2008.
The property tax levy will generate $15,322,285. It is slated to increase 3% over 2008.
Some county board members had hoped to keep that figure closer to 0. "I would still like to see it go lower," said Commissioner Larry Southerland. "I think there is a real perception that we be closer to 0 with the way things are out there."
Factoring in the 1% increase of new construction, the impact on tax payers will be closer to 2%.
Residents along Green Lake will be paying the last of five levies that paid for a flood control device. The last $12,539 will be spread out over all lake property owners.
Those along Long Lake will see a slight decrease in the amount they pay towards the lake improvement district. It is going down from $300 a property owner to $250 in 2009. This total $53,900 levy was approved by the county board.
Plan B
For the first time ever, this year the county put together two budgets.
"This is so significant, with the health insurance issue, that I and the board agreed we had to be prepared for it happening both ways," said Tvedt.
The "Plan B" budget adds back in some of the things "Plan A" takes out. Among those are conferences and $50,000 for park land acquisitions, as well as additional payments to non-profits and other agencies.
Plan B is still lean in that nothing has been set aside for equipment or additional staff, however.
The Plan B budget is set at $34,483,446.
The county may also decide to lower its tax levy, if possible.
Plans to remodel the government center have been put on hold, and the county is holding onto the capital improvement bonds it took out this year to pay for that work. The funds might not be better used to purchase squad cars, or to cover an emergency.