Clay County Commissioners Approve $300,000 Housing Levy Amid Budget Talks

In a critical move to address housing needs in Clay County, the Board of Commissioners approved a $300,000 levy requested by the Housing and Redevelopment Authority (HRA). This levy, which is a fraction of the potential $1.8 million maximum, aims to fund programs aiding first-time homebuyers and low-income homeowners.

The levy approval followed an in-depth presentation by Dara Lee, Executive Director of the HRA, who outlined the levy’s impact on taxpayers, costing approximately $3.11 per $100,000 in taxable market value. Lee emphasized the levy’s role in supporting essential housing programs like the Minnesota Cities Participation Program, which facilitates first-time homebuyer loans and down payment assistance, projecting around $8 million in loans this year. The levy will also bolster the rehabilitation loan program, assisting low-income homeowners in making vital repairs, thereby preventing property blight.

Lee highlighted the county’s efforts to end child homelessness through a successful pilot program that has attracted state funding and collaboration with local partners. This initiative exemplifies the HRA’s ability to leverage state and federal funds. The levy was deemed essential for maintaining these efforts, particularly as the county grapples with ongoing pandemic-related financial strains.

Commissioners engaged in dialogue about the levy’s necessity, with one member questioning the frequency of such requests and another expressing concern over the potential burden on taxpayers. However, Lee assured that the levy requests are infrequent and strategically timed to maximize community benefits. The board unanimously supported the levy, acknowledging its importance in sustaining critical housing services.

The commissioners’ meeting also delved into budgetary allocations across various departments. Discussions revealed a proposed net levy increase of 9.47% for 2026, down from an initial 12.75%, attributed to favorable insurance negotiations and projected revenue increases from investments. However, some commissioners voiced concerns over the cumulative tax burdens on residents, highlighting the need for fiscal management.

Within the broader budget context, the board addressed the restructuring of the public health department and the creation of a standalone detox department. The separation is seen as a strategic response to administrative changes and the retirement of Public Health Administrator Kathy McKay. The restructuring aims to enhance operational efficiency, allowing the detox director to make swift decisions independently.

Budget discussions extended to the Economic Development Corporation (EDC) and various external agencies. Commissioners scrutinized the return on investment from EDC funding. The board considered funding proposals for small city Economic Development Authorities (EDAs) and discussed the importance of maintaining relationships with key economic partners despite budget constraints.

The meeting also addressed the county’s correctional services funding, noting a slight reduction in state subsidies and the implications of new funding formulas that shift more financial responsibility to the county. The complexities of managing interstate transfers and increasing misdemeanor and juvenile cases were discussed.

In the realm of employee benefits, the board approved several insurance changes for 2026, including a switch to United Healthcare for dental and vision coverage. These changes are projected to yield cost savings while meeting employee demands for comprehensive benefits. The board also explored options for a paid family medical leave program, evaluating competitive offerings that promise significant savings over the state-mandated program.

Lastly, the board discussed financial support for the Barnesville Ambulance Service, debating a phased reduction plan over three years. This proposal reflects a broader strategy to encourage municipal responsibility while balancing service needs and budgetary realities.

Note: This meeting summary was generated by AI, which can occasionally misspell names, misattribute actions, and state inaccuracies. This summary is intended to be a starting point and you should review the meeting record linked above before acting on anything you read. If we got something wrong, let us know. We’re working every day to improve our process in pursuit of universal local government transparency.
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County Council Officials:
Paul Krabbenhoft, Ezra Baer, Jenny Mongeau, Kevin Campbell, David Ebinger

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