Freeborn County homeowners, commercial property owners and landowners could see a tax increase in 2016 due to agriculture land value declining, according to preliminary budget and preliminary levy discussions.

Under the proposed preliminary budget that is scheduled to be adopted Tuesday:

Owners of a residential homestead with a $100,000 value would see their tax bill rise to $394 from $350, a 12.57 percent increase

Owners of a $100,000 residential non-homestead property would see their tax bill increase from $488 to $548, a 12.30 percent increase

Owners of a commercial property valued at $200,000 would see their tax bill increase from $1,586 to $1,782, a 12.36 percent increase

John Kluever, Freeborn County administrator, said that Freeborn County landowners are faced with the increase due to agriculture land declining in value by about 10 percent in Freeborn County, meaning owners of residential and commercial property have to make up for the loss in agriculture land value.

The proposed 5 percent overall tax levy increase is due to two things, according to Kluever.

Sixty percent of the increase is due to the county taking the law enforcement dispatch cost from the city, and adding transportation deputies to help with court security.

The other 40 percent of the increase will go toward the operations of the county.

Downward shifts are possible within the next three months before the final 2016 budget is set in December, according to Kluever. The county cannot increase the tax levy before December, per state law.

Agriculture land value in Freeborn County had been increasing in recent years, according to Kluever.

If the commissioners approve a levy lower than 5 percent, it’s likely the county would have to use reserves to make up the difference, according to Kluever.

Under a 5 percent tax levy increase, the human service budget will be pulling from reserves to fund the operations of the department, due to increased costs that are primarily due to an increase in court-ordered placements, he said.

Kluever said tax levy increases have averaged 4 percent over the last eight years.