Administrator outlines 2027 budget plan; proposes debt financing to keep levy flat

The county administrator told supervisors the county enters budget season with a strong general-fund position — about $7.33 million available for use — and proposed using approximately $2.275 million in debt financing to keep the tax levy flat in 2027. The administrator said borrowing would preserve unassigned fund balance while allowing several capital projects to proceed.

Staff highlighted several budget drivers: a market adjustment and merit structure that together yield a 3.95% compensation change in 2027 (2.95% market on Jan. 1 and a 2% merit on July 1), an anticipated 7.5% premium increase under a planned fully insured health plan (replacing self-insurance) intended to save roughly $1.2 million annually, and $2.4 million in capital requests of which $2.275 million is proposed for debt financing.

The administrator noted options to set effective dates for ordinances to allow DNR review and potential petition work before changes take effect. He said the board by statute must pass the budget at its November meeting and that using debt to smooth the levy will likely require a three-quarters majority for bonding measures. Supervisors were told that net new construction is the primary way the levy grows without borrowing — Polk's net new construction is modest compared with inflation.