By Matthew Steven Udermann

Matthew Steven Udermann is a Carver County Commissioner representing District 3 (Victoria and Chaska). Views expressed are his own and do not necessarily represent the full board or county.

Have you heard of Fans First, the book by Jesse Cole, co-founder of the Savannah Bananas? The Bananas revolutionized baseball by putting fans first, making the game faster, and adding immense value. Predictably, traditionalists resisted.

Today, the Bananas sell out MLB and NFL stadiums, are valued near $1 billion, and draw over 3.2 million fans annually. Their social media engagement exceeds that of Major League Baseball and every individual MLB team combined. I became a believer after taking my 10-year-old daughter to a game. She stayed tech-free for five hours, enjoying the pre-game festivities and the game itself. It was a night I never wanted to end.

Resistance Is Part of Innovation

Bold, visionary ideas naturally attract opposition because catalyst thinking challenges the status quo. Resistance should be expected:

• The automobile: People resisted Henry Ford, but we got the Model T.
• Smartphones: People resisted a blank piece of black glass, but we got the iPhone.
• Logistics & E-commerce: People resisted overnight delivery and buying online, but we got FedEx, UPS, and Amazon.

One of the biggest takeaways from Cole’s book is simple: Constraint drives creativity—if you have the desire and will to make it happen. The Bananas were heavily constrained by money and tradition, but Cole had a growth mindset and found others who believed too.

Local Government Constraints

Local government faces constraints, too. We cannot control the price of gas, groceries, or utilities. However, we do control our portion of property tax levies.

Some local governments are responding to modern challenges with massive, unsustainable tax increases. One metro county is considering a 16% to 21% increase, a local city 18.9%, Minneapolis 11.3%. Meanwhile, other entities are proposing much more modest increases, such as 2.9% in Eden Prairie and 3.3% in Victoria.

Many people in Carver County can absorb tax increases without changing their lifestyle. But how about seniors and future generations? Do we want this to be a place they can afford to call home? For those who aren’t insulated, U.S. Census Bureau statistics are sobering:

• 28% to 35% of U.S. adults struggle to pay monthly household bills on time.
• One in six households are behind on utility bills.
• 63% to 72% of Americans live paycheck to paycheck.
• 88% of small businesses are holding flat or pulling back on expansion due to operating costs and taxes.

The “3.5% Guy” Approach

Carver County’s recent historic tax levy increases are unsustainable:

• 2025: 6.8% increase
• 2026: 8.0% increase
• 2027: 8.5% (preliminary)

Stacked together, this represents a 23.3% tax levy increase over just three years. (I voted “no” on each of these)

As the “3.5% Guy,” I believe we should cap our annual tax levy increase at 3.5%. Why? Because 3.5% aligns with the average historical growth of our tax base. With long-term discipline, this approach provides a powerful balance:

• Lowers the tax rate for residents.
• Attracts new businesses and expands the tax base.
• Increases staff compensation without net staff reductions, reducing turnover while neighboring counties face layoffs.
• Delivers the same or better services without pushing taxpayers past their breaking point.

Closing the $4 Million Gap

The difference between the preliminary 8.5% increase and my proposed 3.5% target is 5 percentage points. Because each percentage point is worth roughly $800,000, the gap we’d need to close by December 1 is approximately $4 million.

If three or more members of the County Board are content with an 8.5% increase, creativity won’t matter.  I remain optimistic. Here are five practical ideas to bridge the gap:

1. Reduce Employee Turnover

Carver County has faced the highest turnover in the metro area for two years. While wages and benefits have recently improved to compete with peer averages, we should also strive to compete in retention.

• The Math: If we reduce turnover by 5% across our ~750 employees, we avoid hiring and onboarding 37.5 positions.
• The Savings: Onboarding costs equal 20% to 30% of a first-year salary. With an average county total compensation package of $97,750, avoiding these hires saves $3.67 million. Taking just one-third of that as bottom-line savings yields $1.2 million (1.5% of the levy).

2. Revisit Leadership Compensation

When school districts, businesses and other organizations face constraints, they look at administration first because the pace of the leader dictates the pace of the team. We should apply this to county commissioners, administration, and senior leadership. For instance, we will elect a new sheriff in 2027. Historically, the board resets a first-year sheriff’s salary. Resetting overall senior leadership compensation to end-of-2025 levels could realize an estimated $200,000 (0.25% of the levy).

3. Let the State Handle State Obligations

The state frequently shifts unfunded mandates onto counties, expecting local property taxes to cover them. We also subsidize non-mandated services where 30% to 50% of the users come from outside our county. If we accept these burdens, we signal that local taxpayers will continue to subsidize state functions. Eliminating one such non-mandated example could save $600,000 in operating losses and $200,000 in maintenance, while avoiding $7 million in future capital expansions. Estimated savings: $800,000 (1.0% of the levy).

4. Explore Enterprise Funds & Parks Revenue

Five years ago, the board directed funding to help the Historical Society generate self-sustaining revenue. We should apply this concept to county-owned land. Let’s set a goal to generate $5 million in revenue from our parks by 2050—roughly one dollar per park visit. We could rent out county land or engage in revenue-sharing partnerships – perhaps a lakeside restaurant, an expanded marina, or a community amphitheater.

5. Reduce the new furnishings budget from $2M to $500K.  $1.5M (2% of the levy).