The budget session tonight started out quietly and slowly and end in a burst of fury. After the presentation by the the Finance Director I opened the floor to the Council Members. I asked for any comments or suggestions. Hearing none I offered to layout my suggestions for reductions in new spending.
That phrase is key. Reduction in new spending. I laid out specific reductions totaling $253,496. I also asked that $100,000 be transferred from the liquor store fund which currently has $602,000. The total effect of the cost cuts and liquor store transfer would give Isanti a levy of 60.3% or almost a 5% property tax reduction. The initial budget proposal asked for nearly a 70% levy. This 5% increase in taxes is not acceptable.
The reductions in new spending were not easy. We are delaying the hiring of a police investigator for a least one year. This equates to a savings of $78,011 and $15,000 towards a city car. We still be adding one new police position. There was a staff request for a new part time secretary...this was rejected. Another tough decision was to reduce the amount of money the city gives to other non/not for profit and charitable groups. The number was $20,000 and this was reduced by half.
The last major area that was reduced was the equipment replacement schedule. The city has always under funded this area. Our goal is to fully fund but this will have to be eased into. We are increasing our replacement funds but will not be able to go the whole way in one year. If more funds become available or the city's LGA increases after a legislative special session, I will ask that the money goes towards the replacement funds.
None of this is fun or easy. Tough decisions have to be made to control city spending in a time of dramatic cuts in city revenue. The average property tax levy in the state is 55%. Isanti is the 15 highest taxed locality in greater Minnesota. Our current tax levy is 64.718%. My goal is to reduce our tax levy to the state average in three years. We are half way there in the first year. We should not kid ourselves however, the last 5% will be much tougher than the first 5%. CM's Duff and Kolb voted with me to reduce spending and lower taxes. CM's Johnson and Larson voted against reducing spending and against lowering taxes. The end of the session tonight ended in a heated exchange unfortunately and the vote was quite tense.
The other thought to leave you with is the increasing commercial development. These businesses will start coming on the tax rolls in the next two years helping to bring balance to our property tax base. Businesses pay 50% more in taxation per the same value as residential property and use less services.
We are faced with a simply but harsh reality. LGA and building fees are drastically reduced. We can either reduce spending or increase taxes. I believe we made the right decision.
About Me
- George
- I have served the City of Isanti as Mayor since 2007. We have accomplished great things together and I look forward to building on our success. United, we move forward to a better future. You may contact me at 763-442-8749 or e-mail me at george@georgewimmer.com.
12 comments:
What kind of arguements were being presented by CM Johnson and CM Larson to continue increasing spending?
It was a bit confusing because I walked through each proposed cut and there was agreement on each cut but then they voted against it. I asked if they have specifics and none were offered. I have no idea what their motivations are but no logical arguement was made.
It is alway hard when you have to cut spending but I'm glad you, Duff and Kolb see the need and are sticking with it. I was a little worried how this would turn out.
The vote by CM Larson was expected, after all she has said publicly the need to increase taxes but was still voted in.
I agree that CM Larson is being true to her word to raise taxes.
I like what I read about Duff and Kolb supporting you. Maybe this council will get the job done right.
Thank you, Thank you for your work! Isanti is movinginthe right direction, finally.
I think I remember you and Duff and Kolb all talked about cutting spending and cutting taxes last year when you guys ran for office. It might just be a first. You are actually following through. Thank God you are the Mayor. Please pass on my thanks to Duff and Kolb.
Keep fighting the good fight. I could not be happier. Thank you George. I agree with the otehr person, you did what you said you would do.
Is Iverson crazy? He must miss his rubber stamping Mayor.
It is really good to see someone finally trying to cut taxes rather than continually raising them. Also nice to have 3 people that are financially responsible. Ruffled some feathers, but since when can a person that does not live in town, call for a resignation? Time to cut down on the money given to all these groups that want taxpayers to pay for their organizations. How many more jobs have to be created for administration? There are certainly enough people employed already. Good Job!
Great Job George! It takes a strong leader to stand up to big developers and their money! You are on the right track, keep it going and don't look back. I just wonder how much money Larson and Johnson are being paid by Iverson. You are a great leader and I hope you re-run next year... we need you at least one more time!
Great work guys(Duff, Kolb, and Mayor)! Sometimes it's a hard road traveled but it's the right one.
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