OLIVIA -- Renville County's Board of Commissioners adopted a preliminary levy of $10,870,093 for 2008 at their meeting Tuesday in Olivia.
The new budget reflects a 7.63 percent increase over the 2007 levy, according to Karrie Jansen, county finance officer.
The increase is due largely to wage and cost increases projected in the year ahead, as well as a significant reduction in program aids from the state. If the program aids were not being reduced, the levy would have increased by 6.53 percent to cover the wage and inflationary costs, Jansen noted.
The amount to be levied for debt service is not increasing. The debt service for bonds sold for the new office building and jail expansion is being included in the levy while other bonds are being retired. The net effect is no increase in the amount that needs to be raised.
The commissioners also set the levy for the Housing and Redevelopment Authority/Economic Development Agency at $325,505 for 2008. It reflects an 18.37 percent increase over the 2007 levy.
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The increase is largely due to plans to take advantage of a $50,000 matching grant being provided by Greater Minnesota Housing Fund. The funds will be used to work on affordable housing projects in the county.
The county's HRA/EDA had surveyed communities in the county and found strong interest in pursuing various housing projects. The funds will allow the county to help the communities with those projects, according to Chris Hettig, HRA/EDA director.
In other business, the commissioners set a hearing for 11 a.m. on Oct. 9 on a request for a tax abatement by Baumgartner Environics, Inc. The company is asking the county to abate its taxes for 11 years. The amount to be abated is $2,900 per year at current tax rates.
The company is requesting the abatement to assist with its redevelopment of the former Olivia Canning Company building.
The commissioners also took action to vacate a portion of Sixth Street as part of plans to create additional parking for the County Office Building and courthouse area. The area is located north of the courthouse on the north side of U.S. Highway 212.
The county is purchasing the property and will be building a facility for the county highway department and developing a parking lot. The county will request that the Minnesota Department of Transportation install signals for crossing the highway.
