---

BACKUS - Cass County probably is in much better financial shape than many local governments, the state and the federal government. The county has no debt.

Tuesday, the county board set a new five-year capital improvement plan to cover anticipated expenses for the county's infrastructure - buildings, roads, bridges and trails. It calls for no debt issuance through 2016.

The last major borrowing the county did was to finance the jail and law enforcement center attached to the courthouse in Walker in 1987. Only one two-year bond was used since then to pay for part of an addition to the health, human and veterans services building.

This has been possible because Cass' county boards through those years have tried to levy enough regular property tax dollars to create a capital improvement fund. The boards encouraged frugality among department heads and were able to set aside fund balances at the end of years toward capital improvements.

However, the board learned Tuesday this is becoming increasingly difficult since the recession. If the board plans to eventually build a new county building complex at Ah-Gwah-Ching it looks unlikely the county will pay cash without raising the tax levy.[[In-content Ad]]

The board has told the budget committee to hold the county budget to the same level in 2012 as it has been since 2009. The board has shifted some income the last two years away from the capital improvement fund to help the highway department offset lower state aid payments as road construction and equipment costs increased.

The county also is spending a few million to convert to the ARMER emergency radio system this year.

Administrator Robert Yochum said the board had been putting away over $1 million a year for buildings. Historically, the county has paid for its buildings with about half cash and half bonding.

Chief Financial Officer Larry Wolfe said he has board authorization to have a $10.5 million capital fund, but spending for the radio system and upkeep on the old courthouse has meant he is only able to keep the fund at just under $10 million at this time.

There no longer is a special levy going toward building improvements, he said, nor is there as much fund balance at the end of years since the recession began.

"We need to be sticking some money away," Board Chairman Jim Dowson said. He suggested at the last board meeting that maybe it is time to reconsider whether it is more cost effective to continue maintaining the existing courthouse or whether to begin building at Ah-Gwah-Ching.

In 2007, architectural estimates indicated it would cost the county at that time $27 million to build a jail and courts at Ah-Gwah-Ching, plus $16 million for new sheriff's office, courthouse and health, human and veterans services office. That totaled $43 million.

It would leave a $33 million shortfall at the county's current capital fund rate. Building at Ah-Gwah-Ching is set for consideration after 2016.

Instead, the county is looking more toward upgrading and preserving existing buildings in the next five years - maybe two smaller building projects with the Minnesota Department of Transportation at Pine River and Remer to replace aged highway department satellite garages.

Cass' infrastructure includes 42 buildings, 808 miles of road, 80 bridges and 500 miles of recreational trail.

Buildings the county constructed or purchased with cash since 1987 include health, human and veterans services and part of the addition to it; four storage buildings at the county garage; a highway department office addition at Walker; boat and water safety building; garbage and recycling transfer station building; office and Post Office rental unit at Pine River; salt storage sheds at highway garages throughout the county; land department building at Backus; and the jail pod Cass uses at the Crow Wing County Detention Center in Brainerd.

Second publication rights after Brainerd Dispatch.

---