2006 Final Budget

The December 20th City Council meting will be the last time to discuss the 2006 budget. The positive includes a 7.81% levy rate reduction.

The negatives include a 30.42% explosion of spending. This is made possible by a 26% increase of Local Government Aid from the state, a 75% increase in development fees, and the increase in new homes.

The funds received from the new development and the state is “new” revenue. This revenue does however have a down side when every cent gets spent. This budget should have a greater property tax decrease. This decrease could then be used to help offset the 60% increase in the sewer and water rates. We need to understand that no matter if a cost is called a fee or a tax it comes from the same wallet. As many property tax payers are aware there is also what I like to call the hidden tax. This occurs when your home is valued higher and higher every year. You property tax rates may stay the same or be lowered but the total you pay could increase with higher valuations.

We are riding on a 5 to 10 year wave of rapid residential growth. This started for Isanti in 2001. We have perhaps 5 to 6 years left. If we continue spending at this rate Isanti will have huge structural budget problems in the years to come. Once a government entity gets use to spending it is nearly impossible to cut back.

We are adding unnecessary staff to the 2006 budget. I have continually argued against the $54,000 Administrative position to no avail. It does not appear there will be enough votes to improve this budget any further. I am proud of the influence I have had to this point but there is much yet to do.

The one area we desperately need a new position is the Police Department. Today we see another article in the Star discussing the Methamphetamine problems we face as a community. Our police department will have a 3 year period of no new officers. The Isanti budget has seen a total 47% increase during this period. Isanti has nearly doubled in the last 5 years. We receive tremendous work from our police force. We must stop over taxing our officers. The East 65 expansion and new school will add significant policing pressures on a force that is already over worked. We need to be serious about police protection.

The New City Hall cost went from an estimated 1.2 million cost including 1 million construction cost to a total nearing and possibly exceeding 1.6 million. This is a $400,000 cost overrun. We now have a request for even more expenditures. This has to finally stop.

I will continue my campaign in 2006 to bring our spending growth under control. I can not vote for this budget as it is currently written. I will fight for further property tax reductions and spending reductions in the next budget cycle.

I have already presented a reform measure for future development, the impact list. This is explained in the December Planning Commission entry. We need to have a system to track maintenance cost for city equipment. This can be used to evaluate the need to purchase new equipment and determine the life expectancy of current equipment. This tool can then be used for long term budgeting and planning. I will be detailing more of these tools in the months to come.
We have made some progress but the reform we started this year has just begun. Please atend this city council meeting.