By Dave Baumeister, County correspondent
SIOUX FALLS – With all members referring to the large increase in money spent on law enforcement, the Minnehaha County Commission unanimously authorized a 25-year property tax cap opt-out for $6.5 million at their regular meeting here on Tuesday, June 25.
Commissioner Dean Karsky, who was present via conference call, stressed that county offices have done a good job of managing what they do, but the increases in law enforcement and legal services put the county at a near $2 million deficit for the 2020 budget.
In presenting the opt-out request, county administrator Carol Muller explained that much of the shortfall was coming from additional staff and other resources needed by the sheriff’s, state’s attorney’s offices, as well as the courts.
The wording of the opt-out resolutions specifically refers to the increase of money being needed in the public safety areas.
In contrast to that, Muller memo to commissioners read, “During the budget meetings, you saw that the non-public safety department budgets are flat or lower than in previous years.”
Since the time of Gov. Bill Janklow, property tax increases have regularly been limited to allow for a 20-percent reduction in owner-occupied homes.
Local government entities can only raise property taxes by the rate of inflation, or three percent, whichever is lower.
According to commissioners that amounted to only 2.4 percent this year, which falls below what is needed to fund county government, they said.
“Comparing that 2.4-percent growth (in tax revenue) against double digit growth in public safety related issues will not economically work,” Commissioner Gerald Beninga said, also via conference call, “And this is our only choice.
“$2 a month on a $150,000 home is our answer to our fiscal responsibility.”
Commissioner Cindy Heiberger added that the commissioners will also be seeing the same percentage increase in property taxes as everyone else, but that state regulations are making it necessary.
“94-percent of our general fund goes toward state mandated expenses,” she said.
Commissioner Jeff Barth gave the breakdown of how money paid to Minnehaha County does not stay with Minnehaha County.
It was stressed while some might think all of their property taxes go to the county, because that is where they are paid, that is not the case.
“The county only received 13-cents on the dollar,” Barth explained about property taxes. “71-cents goes to the school district, and the rest goes to the (municipalities).”
He also added, “When we opt out, we don’t do it because it makes us happy; it is our job to do that.
“We have invited people to come to our budget meetings, but we didn’t really have anyone come.”
Barth is referring to comments he made last month before the budget meetings started when he asked Minnehaha County residents to get involved in the process, make their comments known, and get their questions answered.
Commission chairperson Jean Bender said, “I am confident that this is a decision we needed to make. We’ve been saying since we approved the budget last year that there was going to have to be a an opt-out.”
The resolution presented by Muller called for $1.9 million of the opt-out to be used in the 2020 budget.
The exact figures she presented were that this would result in a $19.70 increase in the property taxes on a $150,000 home. On a $200,000 home the taxes would increase $25.46.
After comments came from all commissioners, Barth made the motion, seconded by Beninga, to take the $6.5 million opt out.
The motion passed unanimously.
While Barth said the commission had not been receiving any input at the budget hearing, and the only public comment at this meeting did not deal with an opt-out, people wishing to refer this move by the county to a public vote can do so by getting petition signatures amounting to 5-percent of the total of registered voters in Minnehaha County.
The time frame is that they must be turned in to the county auditor by 20 days after the first publication of the opt-out ordinance.
The Minnehaha County Commission has its regular meetings each Tuesday at 9 a.m. on the second floor of the county administration building at 6th and Minnesota in Sioux Falls.
These meetings are open to the public, and public comment is always encouraged.
