ELLSWORTH – Inflation is not the friend to any municipality during budget season this year and Pierce County is no exception.

County Administrator Jason Matthys presented recommendations to balance the proposed 2027 budget at the Oct. 26 Pierce County Board meeting.

Matthys said the 2027 state limit on operating tax levy is $17,781,443, reflecting a net-new construction factor of 1.339%, or $234,948 of new funds to raise the tax levy.

The county department budgets approved by standing committees and submitted to administration total $21,115,978, which is $3,334,535 over the state’s allowable operating levy. In short, for a balanced budget, the county has to find a way to trim more than $3 million from budget requests.

Levy limits were designed to reign in property tax increases. However, they place a financial strain on counties and municipalities, which are mandated to provide state services but unable to raise local revenues unless they go to the voters with a referendum.

In June 2026, the county board voted to maximize the allowable operating levy when budgeting for 2027. Administrators have worked with department heads to study and find any potential savings or revenues.

Matthys said many factors contributed to the budget requests being over by $3.4 million: New position requests requiring full levy support, health insurance cost increases in 2027, the new judicial facility projected operating costs and rising costs in Human Services placements. However, the main factor is that inflation is outpacing the county’s ability to raise its levy.

“Pierce County's cumulative net new construction growth since 2010 equates to 22%, while the state's cumulative rate of inflation is (49.9%) over the same period,” Matthys’ memo states. “Rising costs and limited revenues are the story for many units of local government this year, and the only ways to close the gap in future years are borrowing, referendum to exceed the levy limit, or reduce services and personnel.”

Matthys then presented options his team came up with to balance the proposed budget, down to the penny:

• Eliminate vacant HR specialist position, savings of $87,928.
• Emergency Management alternate radio purchase, $15,727.
• Four vacant positions in Emergency Communications moving from family health to single, $108,000.
• July 1 start date for one court security position, $57,700.
• Purchase new court security staff equipment with project funds, $8,000.
• Reduce sheriff’s office unmarked installs for one new lease, $15,000.
• PCSO: Reduce to one new vehicle lease, $18,000.
• PCSO: Reduce costs of new squads, $6,000.
• PCSO: Increase board of prisoner revenue, $50,000.
• PCSO: Adjusted drone cost, $2,500.
• PCSO: Reduce to five gas masks, $5,500.
• PCSO: Reduce to one shield, $5,000.
• PCSO: Reduce cost of new radios, $21,760.
• Increase interest on investment income, $105,000.
• Increase revenue for court fees/costs, $10,000.
• Defer Blue Building garage door replacement, $25,000.
• Purchase LEC mini split elevator with project funds, $10,000.
• Move truck and tommy gate purchase to future year, $67,000.
• Move dump truck purchase to future year, $60,000.
• Use Park Development funds to purchase pedal pontoons and dock for Nugget Lake, $19,600.
• Reduce funding to Economic Development Corporation, $4,750.
• Reduce funding to Pierce County Historical Association, $5,000.
• Say no to $2,000 to Mississippi River Parkway Commission.
• Reduce leave liability budget amount by $100,000.
• Apply fund balance from unused American Rescue Plan Acts funds, $1,077,315.
• Apply unassigned fund balance, $1,447,755.

“Administration has worked closely with each department to close the gap to best extent we could,” he said. “However, the gap is large, and this Committee will need to examine services, personnel and program related costs to reduce prior to 2028 budgeting.”

Matthys credited prior boards with being fiscally conservative, resulting in a healthy fund balance, or “rainy day fund.” However, drawing from that fund long-term is not sustainable, he said.

The board will consider for 2027 a county operating levy of $17,781,443, Debt Service of $3,839,713, County Library costs totaling $814,248, and County Aid Bridges being $200,000 for a total of $22,635,404. This is an increase of $327,411, or 1.47% over last year. However, the mill rate will decrease by 6.25% on the county portion of tax bills.

The November Pierce County Board meeting and budget public hearing will take place at 10 a.m. Tuesday, Nov. 10.

New positions

New positions proposed for 2027 include:

• PCSO, patrol deputy, court security, two positions totaling $173,100, paid for by tax levy. One would begin Jan. 1, the other July 1.
• Maintenance facilities services technician, three positions totaling $230,601, paid for by tax levy. Effective Jan. 1. Currently the county contracts for custodial services, so this cost would be offset by canceling that contract.
• Human Services economic support specialist, $88,992, paid for by federal funds, effective Aug. 23, 2026.

The board is also considering the adoption of a new salary matrix with a 1.25% increase to the hourly wage.