How the Lack of Financial Planning Hurts Isanti

I want to touch on the 2007 street improvement project which came before the Council tonight. The 2007 street improvement project has raised concerns with me. In our previous conversation about this topic I stated I did not approve putting in sidewalk along the Elizabeth/Broadway corridor. This is a quiet low traffic area of town that does not need sidewalks that will destroy mature trees. $126,300 would be saved if the sidewalks were left out of this $2,109,125 project.

The City’s Finance Director stated if this total debt was incurred by the City, taxes would have to increase by 3.64% to cover the debt payment for this one project alone. Isanti’s excessive spending spree the last few years is finally coming home to roost. Mayor Apitz and Council Member’s Johnson and Larson voted to approve this spending without showing any cost offsets. We have to make choices of where to spend our City's limited resources. We can not simply increase taxes everytime the Council wants to spend money.

It was also stated tonight that Isanti will not be retiring any debt for years to come. This will mean that City debt will continue to grow as a portion of our budget. It is currently the second largest line item in the budget.

I hate to always have to say it but the lack of long range financial planning has put Isanti into a debt/tax spiral. The amount of debt incurred in the last few years makes virtually any new project impossible without significant tax increases. The increase in City spending by over 40% in the last two years alone must end.

If Mayor Apitz and Council Member Larson’s spending is allowed to continue taxes will increase dramatically. Council Member Larson’s own re-election campaign material states and I quote “We need to be realistic and understand that in order for our city to continue to be increasingly viable and economically sound that taxes will need to increase”. I could not disagree more.

The surest way to destroy industrial and commercial growth in our City is to raise taxes. High taxes and fees will scare away any potential business. Isanti needs to encourage healthy business growth to bring balance to our tax base and lower the burden on home owners.

We must also remember that property taxes are regressive. Poor and rich alike pay the same rate. Each property tax hike hurts a poorer home owner much more than higher income classes. In one action of a property tax hike the Mayor and Council Member Larson hurt future business growth and the poorest of Isanti home owners alike.