Observer Notes of the Goodhue County Board of Commissioners September 1st Meeting

Observer’s main takeaway/editorial comment after attending this meeting: Ask candidates for local, county, state and federal offices how they would use second order thinking when making decisions, i.e., focusing on the immediate obvious result of an action

and then asking, “And then what?” “What is the chain reaction caused by one decision that affects everyone downstream?” “What are both the intended and unintended consequences, both positive and negative, of a decision that I decide to support?” Can they give specific examples of when they considered the financial

burden or risk of their decisions? A candidate’s responses might help you to determine if they have the interest and capacity to truly grasp that their decisions can dramatically affect the lives of the people they represent.***

Board Members in Attendance: Brad Anderson, Susan Betcher, Linda Flanders, Todd

Greseth, Jason Majerus

There were two main agenda items, both of which shared the dilemma faced by counties when state-mandated programs, however well-intentioned, aren’t fully funded, leaving

counties to bear unexpected costs.

First item: Statewide Affordable Housing Aid Update and Options Moving Forward

Presented by Lucas Dahling: Finance Director

The State Legislature created a new housing program in 2023 that disburses Department of Revenue money to non-metro counties, cities with populations greater than 10,000, and eligible tribal governments. The programs are administered by local units of government with reports required by December 1st each year. In 2024, Goodhue County funded two projects that used Goodhue County Affordable Housing Trust Fund and SAHA (Statewide Affordable Housing Aid). Project 1, in Kenyon, approved interest free construction loans to build 5-6 single family homes to cover 75% of construction costs of a new affordable housing unit

(monthly loan draw to cover expended funds during the construction process; then sell the house and repay the full balance of the loan; and repeat the process as each home is built and sold).

Project 1 Results: Home was built and then sold. County received full repayment of loan funds in July, 2025. Problem: The affordable housing income requirements were not followed in part because the income limits for affordable housing rent were not enough to cover construction costs and the high interest mortgage rates, so qualified buyers were simply not able to afford the home and the builders would not have been able to recoup their

construction costs, even with the state loan assistance.

Project 2 Results: A second home was built in Kenyon. It has been on the market for six months but has not sold. All loan funds have been collected, but the home cost is too high for those who meet the affordable income requirements.

So, Goodhue County, along with other counties faced with similar situations, is faced with some unforeseen challenges. The state funds cannot be used for administrative costs, so

staff costs of running the qualifying projects cannot be offset with the state funds. Nor can SAHA money be used to replace existing affordable housing programs funded by local levy

dollars. Additionally, aid must be committed within three years and expended within four years (i.e., received in 2023, used by Dec., 2026, and expended by Dec., 2027). If projects didn’t follow the guidelines, the money must be recommitted to new projects by Dec, 2026.

Lucas Dahling presented some options to support Goodhue County’s housing priorities and to prevent the funding from being recaptured by the State: Use funding to enhance the HHS

Department emergency rental assistance program to keep people in their homes when faced with emergencies; provide financial support to Goodhue County Habitat for Humanity and

Three Rivers Community Action, both of which are experts in building affordable housing units; or continue the state loan program in its current form. The recommendation was to use

1/3 of the funding for each of these options.

The well-intentioned state program requirements are difficult to meet since administrative costs sometimes become too high (and can’t be covered by the programs) and affordable

rent doesn’t cover construction expenses. Discussion by the Board members included whether it is an option to buy down the interest rates to make rent more affordable (Brad), to support experts such as Habitat for Humanity and Three Rivers instead of builders new to

affordable housing construction since those two entities know how to meet guidelines for affordable housing (Susan); or to choose not to direct some funds to enhance HHS emergency funding since there are a variety of funding sources for emergency funding

(Linda).

The Board members voted to table the discussion until the next meeting so that they can ask Goodhue County Habitat for Humanity and Three Rivers Community Action if they can meet

the guidelines for this state program. The Board’s aim is to administer the state program with Goodhue County organizations that already meet the requirements with a focus on creation

of housing units, not emergency funding. Motion approved.

Second item: Solid Waste Management Plan Update

Presented by Jess Greenwood, Public Works Director

The request was for the County Board to review a proposal from Short Elliot Hendrickson Inc (SEH) to update the solid waste management plan. The initial 10-year plan was approved in

2016 and needs to be updated because it expired as of August 23, 2026.

Mandate: The Minnesota Pollution Control Agency (MPCA) has to approve each county’s solid waste management plans according to predetermined rules and timelines for metro and out-state counties. The plans must include these BIG ASKS (Sara’s opinion): 1) emphasize waste reduction, recycling, and reducing reliance on landfill deposition, 2) incorporate these mandated components (recycling implementation strategy, public education, household

hazardous waste, and land disposal restrictions and certificate of need), and 3) detail waste data of volume and composition of waste generated by residents and businesses; reduction

and recycling goals, specialty waste programs, disposal evaluations, and local enforcement.

Challenge: The first 10- year plan was developed for Goodhue County in conjunction with the MPCA. That’s the process used by all other counties, too. Now, MPCA says that they no

longer have the staffing or time available to help each county create their new 10-year plans, so each county either needs to figure out how to fund their staff to write a new plan or to hire

a consultant. SEH has worked with Goodhue County for several years regarding solid waste management and has also helped other Minnesota counties such as Steele County to

complete solid waste management plans that met MPCA requirements. The current proposal is to approve $29,000 for SEH’s consulting fee plus an additional $3,000, if needed, for

public information meetings and resolution assistance.

Time Crunch: If Goodhue County does not have a solid waste management plan in place, we would be in violation of state law and would not be eligible to receive SCORE dollars to

fund current operations ($164,000). Ramifications: Loss of state funding and grants, loss of local regulatory authority, and administrative and environmental penalties.

Brad commented that this is another example of a state mandate that ultimately transfers costs to counties. Each county will incur costs by having to pay for their new waste

management plans, to submit those to MPCA for approval, make required changes, resubmit, etc. Ultimately, it will be more expensive all around than if MPCA funded their staff to guide each county upfront. MPCA didn’t let Goodhue County know in advance that they wouldn’t be providing administrative support for development of a new 10-year plan, but they did let the county know.

Board voted to approve use of SEH’s help to develop a new Goodhue County solid waste management plan.

Meeting adjourned at 9:49 a.m.