May 4

Country Courier
S e r v i n g To d d C o u n t y , M N
VOLUME 23; NUMBER 1 - FRIDAY, OCTOBER 4, 2013 CIRCULATION 6,000

The economic situation in Todd County: what are the recent trends?

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Many hand crafted Amish crafts are available.

By Rin Porter Probably we can all agree that five years ago, in 2008, things were pretty bad in Todd County, in the State of Minnesota, and in the U.S., economically speaking. The collapse of the mortgage and housing industries, the near-bankruptcy of the leading banks, bankruptcy and financial collapse of the auto industry, the widespread layoffs of people in all kinds of jobs these conditions brought the U.S. into a situation of economic chaos which many experts said was nearly as bad as the Great Depression of the 1930s. The crisis devastated Rural Minnesota. In 2013, five years later, things are getting better across the U.S. In rural areas, however, improvements in wages and employment have lagged behind metropolitan areas. Information from the U.S. Bureau of Labor Statistics (BLS), the U.S. Census Bureau (USCB), and the Minnesota Department of Employment and Economic Development (DEED), and other statistical sources provide us with comparative information for conditions at the beginning of the Great Recession, compared to today. LOOKING BACK In 2007, Todd County had an estimated population of 24,029 (USCB). There were 541 employers. There were 2,203 firms (USCB), of which 1,910 were farms (2007 USDA Census of Agriculture). In July 2007, there were 11,617 people employed for pay (DEED), and 546 people were unemployed. The unemployment rate for Todd County was 4.5%, according to the Minnesota Department of Employment and Economic Development (DEED) while for the State of Minnesota it was 4.6%. The largest sector of employment in the county was manufacturing. Income per person (2007-2011) was $21,406, compared to the Minnesota per person income in the same period of $30,310 (USCB). The average wage for a Todd County worker in 2008 was $554, compared to the average worker in the State of Minnesota, which was $909. CURRENT LOCAL CONDITIONS In 2012, Todd County had an estimated population of 24,509 (USCB). The USCB has not published the number of business firms reported in the 2010 U.S. Census, and the USDA has not released the 2012 Census of Agriculture. But DEED reports there were 595 nonfarm businesses in 2013. In July 2013, 12,009 people were

employed for pay, and 633 people were unemployed, for an unemployment rate of 5.0% (DEED). The largest sector of employment was Education and Health Services, with 1,648 people employed. The average weekly wage was $596 (DEED). So if we look at employment, unemployment, and average wages, compared to 2007, things arent that bad in 2013. Todd County still lags behind the State of Minnesota and all the metro areas, but that has been true as long as there have been statistics kept. According to http://cost-ofliving.FindtheData.org, it costs less to live in Rural Minnesota today than to live in any of the Minnesota Metropolitan Areas identified by the U.S. Census. (Minneapolis-St Paul, Rochester, St Cloud, Duluth). Housing cost is pegged at between $602 and $774 for family sizes from two to five in a Basic Family Budget. Other costs (food, childcare, taxes and other necessities) are calculated to be lower than average, but healthcare and transportation are higher than average. Minnesota ranks 44th in minimum wage paid, and has one of the lowest minimum wages ($6.15 per hour) in the U.S. The State of Washingtons is the highest at $8.67. The Federal Reserve Bank of Minneapolis estimates the cost of living increase in Minnesota between 2007 and 2013 has been 12.5%. Average wages in Todd County have increased during that same period by 7%. So it is not surprising that many people feel they must continue to keep their spending down. For many, their income is lower today than it was in 2013. For others, their pay might be the same or even a little higher, but money today does not go as far as it did in 2007, because the cost of living has increased, especially costs for food, utilities, fuel, and clothing. WHAT ABOUT LOCAL TAXES? Todd County local governments and school districts are favorite targets for people who believe that government costs are a large part of personal budgets. Have property taxes gone up? For one residential homestead in Moran Township, property taxes have increased slowly during the past seven years, since 2006. This homestead was assessed $1,292 in property taxes (for all levies, including county, township, and school) in 2006, and $1,474 in 2013 an increase of $182, or 14% over seven years, or roughly 2% per year.

For one commercial building in downtown Browerville, property taxes have increased slightly between 2008 and 2012. In 2008, the owner was assessed $626. In 2009, property tax increased about 5%, to $660. In 2010, taxes dropped over 11%, to $583.88. Then in 2011, property taxes increased slightly, to $600.89. In 2012, they jumped back to $667.80. But if you look at the fiveyear period, taxes increased from $626 to $667, a difference of 6.5%, or a little over 1% per year. Todd County government expenses have increased 19% from the 2008 budget to the 2013 budget. The 2008 budget listed expenses of $22,472,720. The 2013 budget lists expenses at 26,845,815. The county budget includes expenses for roads and bridges, social services, public health, public safety, and many other costs, many of which are mandated by the state and/or federal government. Property taxes provide about 45% of the countys income, with the rest (55%) coming from the state and federal government. BUSINESS COMINGS AND GOINGS Local businesses that have closed recently or are in the process of closing: Hometown Furniture and Mikeys Restaurant, both in Long Prairie. New businesses that have opened recently in Browerville: Cherry Grove Market, Marys Country Porch, Knotty Pine Embroidery, Two Chicks on the Corner, Our Neck of the Woods. NATIONAL ECONOMIC INDICATORS During the Great Recession of 20072010, new car and truck sales fell, as people lost their jobs and income dropped. Sales rebounded in 2011. (NADA) Home values have dropped every year since 2006, according to www.Forecastchart.com. The U.S. stock market began falling in 2008, and reached its lowest point in 2009. Since then, the market has rebounded. Earlier in Sept 2013, it hit a record high above 15,675. Currently, housing starts have dropped to their lowest level in more than 50 years, since record-keeping started in 1959. In 2012, 781,000 new homes were built, down from 1,341,000 in 2007. (www.forecast-chart.com Natural gas prices have dropped since 2008, when the price was $8.9 per million Continued on page 4

Bear Country Mall in Bertha offers many opportunities

By Rin Porter Located on CR 23 just off U.S. 71 on Berthas south side, the Bear Country Mall is doing well in its third year since opening. Many people are familiar with the Amish Country Co-op located there, but there are three other businesses in the Bear Country Mall that offer opportunities for Todd County residents and others just passing through. Currently owned by Bob and Mary Larson, the Bear Country Mall opened its doors in 2010. The first store, the Amish Country Co-op, is in the building previously used as a mattress factory. At first, the Co-op sold just fresh produce raised by Amish families, but then expanded to include the beautiful hand-made goods also produced by the families. Today, the Co-op offers magnificent large quilts, all possible sizes and shapes of baskets, rag rugs, woven rugs, potholders, placemats, aprons, and other hand-sewn items. Next to the Co-op is the Dollar Store, now in its third year of operation. Bridget Warner, who has managed the store for a year, says the store is doing well, filling a need for local residents. The Dollar Store sells greeting cards, canned goods, party items, paper products, glassware, hair goods, health and beauty products, and many other items, most for $1.00. It is open Monday through Friday from 9 AM to 6 PM, and Saturday from 9 AM to 5 PM. If you are hungry, you can get a delicious lunch at the Bar and Grill next to the Dollar Store. The Bar and Grill offers both table service and liquor service with its on-sale license. A fully-equipped commercial kitchen prepares burgers, sandwiches, fries, onion rings, chili, tater tots, and a variety of beverages, made and served by cooks, bartenders, and wait staff. The Bar and Grill is open Monday through Thursday from 11 AM to 11 PM, and Friday and Saturday from 11 AM to 1 AM. If you have a wedding reception, anniversary party, business meeting, professional conference, or other event, the fourth business at the Bear Country Mall is available: Marlowson Event Center. The spacious Event Center can accommodate 300 people in its large central banquet hall, paneled in pale wood. The Event Center is air-conditioned and offers food service through the Bar and Grills kitchen, overseen by Chef Tom London. Several smaller rooms serve private parties and provide space for small group sessions during conferences. Marlowson Event Center was preparing for the Wellness in the Woods First Annual Rural Wellness Conference on the day we visited. Executive Director Jode FreyholtzLondon was busy completing the arrangements for the conference. About 150 people were expected to attend the all-day event, featuring speakers from all areas of social work, counseling, mental health services, financial planning, and veterans issues. Freyholtz-London said her organization is based in Verndale and is designed to serve rural people. Sponsors of the Rural Wellness Conference included the Minnesota Department of Human Services, Central Lakes College, KWAD/KNSP Radio, Tri-County Health Care, and Todd, Morrison, Crow Wing, and Wadena Counties.This fall, Wellness in the Woods will serve as MN-Sure Navigators, visiting each community to help people sign up for MN-Sure insurance plans, effective Jan. 1, 2014. The Bear Country Mall is an example of a set of related businesses working together to serve rural Minnesota. The staff hope that more people will learn about it and come for lunch and shopping.