10. PRSR 08.14.2002 - Laserfiche WebLink

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v,,Lilly�4,2002•section : StarTribune )Cal budgetsfeelthe s ueeze q its of many cities ing to have to lose some weight or of the nonpartisan Minnesota Tax 1i'l�^T c [[ "Mies are facing find the money for a new wardrobe. payers Association. "We're seeing a yy TIH I Apt NC;XT.. Local officials must soon begin weak economy and low consumer Sped of reduced wrestling with the twin impacts of confidence . . . People's anxieties Budget countdown ;S—even as I dwindling revenues — including are high." anticipated state aid cuts—and ris- 1'o make matters worse,the local .about to be and a IIbe lea In the metro area ,O up. ing costs. budgets approved later this year about tobegihtlelibitation§ontheir2003 Many are just beginning to likely will be upended by mid-2003 gate. . )uchschere sharpen their pencils and don't yet if the Legislature, as expected, cuts Augusts budgefpropbsals submitted by May( Lynn Smith know exactly how they'll manage to local government aid and grants in and cityand county managers, ' rue Staff Writers balance their 2003 budgets. But an effort to resolve the state's pro- , September:beat governMents set their Ina; they say the upcoming financial jected revenue shortfall. taklevies, ost cities and counties in squeeze likely will strain services The news isn't getting any better. o area, hammering out and kick property-tax levies higher. Octoberoldbud etheatycoun delis discussions s budgets will be like the These are going to be tough BUDGETS continues on 69: • 'boards hold budget hearings and discussions faced by a man whose times for local governments," said —State deficit for 2004-2005could December:Oudgets are finalized and adopte we shrunk:He's either go- Dan Salomone, executive director beat least$1.9 billion. BUDGETS from B1 That doesn't mean that Kel- > Ramsey County: Interest ly won't consider raising user rates are at a 40 year low, Cities, counties s struggling fees for some nonessential city shorting Ramsey County $2.4 services ranging from business million in investment income as aid, other revenues slide alarm systems to business li- that was projected for the 2002 tenses, Budget Director Peter budget. Uncollectable proper- Hames said. ty taxes are on the rise,putting An economic update released penses for 2003 that reflect "The mayor is a strong be- another $1.3 million dent in Friday showed that the state events outside the county's liever that where there is a ser- this year's budget. took in $212 million less than control. They include court- vice charge,it should cover the Added to that is a$1.6 million expected in fiscal year 2002. It house security measures or- cost of the service," Hames cut in state funding primarily for already faced a projected $1.5 dered after the Sept. 11 terror- said. human services and"The billion deficit for fiscal 2003. ist attacks, spending hikes to Even after trimming spend- leaving Ramsey County ewith'a back as the�sugard add,"to Salo- of the district state sever- a ing$6 u$1 million iilslice of grabbing cbmg ye ' spend hole in the current more said. "The clays of free al mandated services for feder- - reserve funds, the city must s year's The cuts county officials money are over . . . And that al and state programs. still find another $6 million to make this year to erase the means local property taxes will The local tax base is fairly balance the 2003 budget. -shortfall likely will be made go up." stagnant and additional money flames said. Fearing skyrocketing taxes, sources are drying up, Kelly already has provided sclmiidtsaid in-2003, Klein- the Minneapolis City Council Kleinschmidt said. "The big- some clues on how he will do "Commissioners will have voted Friday to limit annual gest hind for us is the econom- it. He froze city hiring earlier to make some extremely tough levy increases to 8 percent ic recession,"she said. this year and cut $1.3 million choices by either cutting ser- through 2010. But with costs But even growing commu- from this year's budget by vices or raising taxes, or some rising faster than inflation, tax nities will face tough choices. eliminating 11 positions and combination,"she said. limits also will mean deep Dakota County's growing. merging some functions. lie > Bloomington: City offi-' spending cuts. pains include increased de- will soon announce a plan to cials have instructed depart Even communities inclined wands for services(including reorganize the city's recreation meat heads to keep budgets at to raise taxes as high as neces- parks and public health ser- centers,Hames said. or below the inflation tate in an sary will face a squeeze im- vices), more roads and better "There will be other reorga- effort to hold next year's tax posed by new lower levy limits - transit to relieve commuting nizations, some to save money levy close to its annual average set by a state formula that problems, said Jack Ditmore, and some because it makes increase of just tinder 2.5 per- blends inflation with housing director of Dakota County's more sense. Everything's on cent,City Manager Mark Bern- and commercial growth, said operations, management and the table with him," Hames hardson said. Jiur Mulder, executive director budget. said. of the Association of Minneso- Balancing next year's bud- > Hennepin County: With a better preparedt for ma whatt' 's to Counties. get could mean up to a 6 per- 2002 budget of about $1.7 oil- coining Bran other communi- 13rooklyn Park expects to be cent property-tax levy in- lion,officials in the state's larg- ties, he said. When the econo- limited to a tax-levy increase of crease, compared with annual est county will have to decide - my was humming five years -bout 2 percent, which will increases of about 4.5 percent how to cover a$32 million gap ago,officials developed an eco- field an additional $350,000, in recent years, Ditmore said. that includes $10.5 million in nomic strategy to deal with fu- nterim city manager and fi- Dakota County commissioners state cuts for human services lure downturns. lance director Greg Andrews have already rejected a 9 per- and corrections, and a $21.3 The result, Bernhardson ,aid. But that won't be nearly cent increase to keep services million increase in salaries, said,is that the city avoided ex- mough to cover an expected at current levels. rid et gap ranging from $1 benefits and library opera- panding services b that times.Of couldn't g g p g� g $ "They won't use a tax in- tions. be pillion to$2 million,lie said. crease to fill the hole,"Ditmore "Our board will he faced cials may have to make spend- -1 he city's growing, the tax said. with the choice of levying ver- ing cuts, but services shouldn't lase is growing, but the taxes All the budget pressures sus reducing service and pro- suffer much,he said. ve can levy to meet demands have local officials feeling mix- gram levels.Somewhere in be- Nevertheless, Bernhardson or services are not going up," ions and cautious, said Jim tween the two will be the real said he doesn't underestimate ,ndrews said. Miller,executive director of the answer," Budget and Finance the gravity of the problems just Mulder said that counties League of Minnesota Cities. Director Jim Ufersaid. around the corner. Budget offi- Iso will see expenses rise as "It's a time of significant uncer- Hennepin County has kept cials have exhausted the quick illation and increased service [airily,"he said. emands continue property-tax 4 pe percent for increases a un- and easy choices. 'ices, leaving only the otproblems ind nn- der 4 percent for several years, tough choices. "Costs for such things as as- lions of the urohlems and .,�_ a.,a,.m,.:..,_a__..._-