2024 budget message from the county administrator
December 20, 2023
Residents of Olmsted County, Minnesota,
On behalf of Olmsted County, I present to you the approved 2024 budget. We aim to be transparent with residents and taxpayers about how the county is allocating funds in the coming year. All residents are touched in one way or another by the work of Olmsted County, and it’s important to understand how the county is working to build a sustainable foundation for a safe, healthy, and welcoming community.
As we evaluate property tax levy to support the county's work, know it is a thoughtful process in which we consider many potential impacts. Inflation continues to drive costs up along with staffing to provide the services needed to support the county’s growing population. Thankfully, we were able to mitigate some of these costs through revenue including substantial increases in Federal Administrative Aid, increased funding from the Minnesota legislature for 2024 through County Program Aid and formula changes for corrections work, charges for services, as well as an increase in investment income.
For 2024, our budget funds will be used to fulfill our many requirements as a county. This includes functions such as property tax assessment, tax administration, elections, record keeping, roads and bridges, planning and zoning, solid waste management, parks and water management, law enforcement, providing space for court operations, and health and human services.
In 2024, we plan to add positions that support our community’s mental health needs. We continue to see substantial increases in the complexity and number of mental health conditions among our clients and know this is a top concern of residents. We will also make responsible and strategic capital investments in facilities – managing the cost increases for borrowing money for those investments over a 5-year period, starting in 2024.
And, in 2024, we will be moving into the implementation phase of our county’s new four-year strategic plan. For the past 18 months, our county has been working to chart its course for the future through the development of a new strategic plan. We are putting the finishing touches on this work now and expect to share our plan with the public in the New Year.
Please read on for more information about our budget and examples of our 2024 strategic priorities. For further information, I encourage you to review our county’s 2024 Budget in Brief (find it at www.olmstedcounty.gov/budget).
Developing the operating budget
To reach Olmsted County’s budget, we add together our base budget and our approved budget decision requests (which include capital improvement program projects). Various sources fund this budget such as property taxes, charges for services, and grants. For 2024, the approved budget for the county and the Housing and Redevelopment Authority (HRA) combined totals $371,867,176. Of this total, $130,602,040 is funded with county and HRA property taxes of $125,692,356 and $4,909,684, respectively. The remaining $241,265,136 of our budget comes from intergovernmental revenues, charges for services, transportation taxes, bond proceeds, reserves, interest income, and other miscellaneous sources. The county’s $125,692,356 property tax is a 5.20% increase over 2023. The chart below illustrates the tax-supported portions of the budget.
| County only | Base budget | Approved budget decision requests | Approved budget |
| Property tax levy increase | 2.53% | 2.67% | 5.2% |
The HRA $4,909,684 property tax has been increased by $342,531 (the maximum allowed by MN Statute) over 2023. These additional funds will be used to create and preserve affordable housing in Olmsted County.
As noted above, the total 2024 approved budget is $371,867,176 compared to 2023 expenditures of $334,857,008.
Capital improvement program projects
In addition to our operating budget, the county also approves an annual capital improvement program (CIP).
Regional Public Safety Training Center
Construction on a 17,500-square-foot facility at the Regional Public Safety Training Center is underway and expected to be completed in fall 2024. This space will enhance our capabilities to ensure the highest quality training for all public safety disciplines. Key features will include indoor training classrooms and the ability to conduct multiple trainings simultaneously. It could also facilitate seamless coordination during emergency or disaster responses, offering a space for multiple county departments. Look for more information about the Regional Public Safety Training Center in our 2024 Budget in Brief (find it at www.olmstedcounty.gov/budget).
Interchange at CSAH 44 and TH 14
To help improve safety and mobility and allow for additional capacity and growth, Olmsted County will construct an interchange at County State Aid Highway (CSAH) 44 and Trunk Highway (TH) 14, and an associated flyover structure at 7th Street NW. Planning and engineering work is already underway.
- Safety: Crashes at the intersection average 10-13 per year with a fatality in 2020. The interchange will remove two at-grade intersections, eliminate 64 conflict points, and provide urgently needed safety improvements for this portion of the TH 14 corridor.
- Mobility: Improve the regional corridor for commuters into Rochester, as well as a regional freight route, and provide safe access to existing commercial and residential development.
- Capacity/growth: Provide access for future growth and economic development due to the location within Rochester’s future urban growth boundary. Additionally, the interchange is an identified need in the Long-Range Transportation Plan of the Rochester-Olmsted Council of Governments.
Construction will be funded with $5 million state funding, up to $60 million through the Minnesota Department of Transportation Corridors of Commerce Grant Program, $3-4.3 million Congressionally Directed Spending currently under consideration, and $10.9 million in local funds.
Materials Recovery Facility (MRF)
In 2024, Olmsted County will begin constructing a new, state-of-the-art materials recovery facility (MRF) adjoining the existing Olmsted County Waste-to-Energy Facility. The new regional MRF will expand on Olmsted County’s current integrated solid waste management system by reclaiming materials and removing problematic items. Benefits of the MRF include:
- Reduce greenhouse gas emissions by eliminating the long transport of mixed recyclables to other areas for processing.
- Provide convenient access for local businesses in southeast Minnesota.
- Keep recycling commodities in the region for distribution to end-use markets.
- Gain efficiency in recycling through economies of scale and regional partners.
We anticipate the MRF will be completed and operational in 2025.
Graham Park renewal
Olmsted County is excited to continue revitalizing Graham Park as a year-round community and regional place to gather, celebrate, and learn. Our county received $8 million from the Minnesota legislature in 2023 to support the construction of a regional, multi-use exhibition center at Graham Park. The county plans to supplement state funding with county funds. A new exhibition center will replace some animal agriculture buildings and become the primary flat-floor event venue at Graham Park. Enhanced Graham Park facilities are projected to increase economic benefit to the region from $5.5 million to nearly $13.7 million annually. It also means Graham Park could support 200 more event days a year with an additional 50 unique events.
Continued justice space needs
Olmsted County’s growing population and increase in court filings are making additional space for justice needs a priority. A jury assembly room and courtroom to accommodate felony cases was completed in 2023, and work to enhance and renovate spaces inside the Olmsted County Government Center and government campus buildings will continue over several years.
Investments in community resources
Olmsted County’s annual budget also supports community resources that facilitate learning and growth, appreciation of history, and nourishment for those experiencing food insecurity. The 2024 budget includes $1.42 million for local libraries, and an additional $662,627 for other resources such as the History Center of Olmsted County, Legal Assistance of Olmsted County, Rochester Area Economic Development, Inc. (RAEDI), and Channel One. Also in 2024, Olmsted County will be funding a Natural Resource Educator through the University of Minnesota Extension program.
Strategic highlights
Our operating budget helps Olmsted County achieve several strategic priorities, some of which are highlighted below.
Expansion of Diversity, Equity, and Community Outreach team
The Diversity, Equity, and Community Outreach (DECO) team will be expanding to increase community outreach and education about substance use. The DECO team’s job is to respond in-person or by phone to law enforcement dispatched calls involving a person experiencing a behavioral health-related crisis. The team may co-respond with law enforcement, alleviate law enforcement, or respond in lieu of law enforcement. With the expansion, four employees, including a City of Rochester-funded position, are being added to respond to drug-related calls.
Focus on community mental health
Data gathered from various surveys indicates that mental health of county residents is a real concern. The 2022 Olmsted County Community Health Needs Assessment showed 34% of adults responding had some form of mental health issue. In the same year, Olmsted County Resident Survey data indicated depression, anxiety, and other mental health challenges as top health concerns. Access to care is also an issue. We continue to collaborate with community partners to address growing mental health needs.
County work in 2024 includes providing awareness of mental health resources available. CredibleMind is a new resource that provides contacts to local mental health agencies and resources, mental health assessments, and information on topics like cannabis, recovering from opioid abuse, and improving your mental well-being. Additionally, Olmsted County will offer Mental Health First Aid training to partner agencies to help them identify, understand, and respond to mental illnesses and substance use disorders.
Summary
In closing, I’d like to express gratitude to the residents of this great county. Thank you for your support and interest in the work we do. Your feedback is always welcomed and appreciated. I encourage you to contact your county commissioner to share your ideas and concerns.
The future is bright for Olmsted County, and we appreciate the incredible work of our entire county staff as well as community partners we have the pleasure of collaborating with every day. Thank you for all you do to enhance the quality of life for those who live in, work in, and visit Olmsted County.
Sincerely,
Heidi Welsch, Olmsted County Administrator