Preliminary Budget and Levy Update

Well we did it. With a vote of 3-2, CM Duff, Kolb and I voting in favor, the Council set the preliminary budget and property tax levy. We cut spending and reduced the levy by 5% to 60%. The first actual cut in budgeted city spending for nearly a decade, possibly longer. My records only go back as far as 2000.

To give a point of reference, I have included the levy % since 2001 when rapid residential growth started. 2002 levy was the first year that responded to the rapid growth. This also shows the argument that rapid residential growth pays for itself is nothing short of false. What follows is the year and the actual tax levy as a percentage of actual expenses.

2001---45%
2002---73%
2003---72%
2004---72%
2005---69%
2006---64%
2007---65%

2007 is a budgeted number that is trending closer to 70% year to date.
2008---60% preliminary passed September 4th 2007.

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Our tax dollars have been paying the cost of residential development. My goal is that development pays for itself. I will not give up on that goal.

The state average of 55% is within reach over the next two years. Isanti has faced the predictable issues of drastically reduced Local Government Aid and builder/development fees drying up. Isanti has faced this not by raising taxes as many city's do but by reigning in spending and cutting taxes.

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This is a great accomplishment for our community and should be trumpeted throughout the region. I think it is also important to note that the reason we have two new Council Members and a new Mayor is because the City was on the wrong track. We are moving aggressively to correct past decisions. I also believe it proves elections matter. Who we pick to represent us is more important now than ever.

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I promised to fight to lower taxes. I presented a plan and it was approved by a majority of the Council that also desires to make Isanti a better City. CM Duff and Kolb should be commended for making the hard decisions that had to be made.

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We still have a lot of work to do but tonight was a great victory. I am happy to have delivered on another campaign promise.