Town Hall Meeting

Isanti City Hall hosted Senator Olseen and Representative Eastlund last evening. With reports that the State deficit could be as large as 6-8 Billion dollars we had a full house. There was a lot of good information shared and questions answered.

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A concern to local government however was affirmed. The Governor and many legislatures have discussed the fundamental change in the state budget and the impact on local governments. The push appears to be to have a radical change in how services are delivered. The outcome seems to be to eliminate entire police and public works departments to reduce local government cost and then pool resources to deliver services.

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In some areas this may happen. I also believe we need to find better ways to cooperate as local governments to share resources. I do however believe that we exist as a City to provide services to our residents. Eliminating our Police Department or Public works department to move to some county wide service level is not the answer. We lose all control over service and would receive less service and would pay in the end higher taxes. Isanti has constantly been lowering our tax rate to now being significantly lower than Cambridge as we have seen the County raising its taxes with no appreciable increase in service. That is not a model I want to follow.

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I took a great deal of flak when I laid out options that may lead to a police officer position being eliminated in 2010. The state appears to want entire departments eliminated. We face tough choices and we will come out the other side of this but we must all be patient.

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I will be proposing that for 2009 the City budget and spend as if we are receiving zero LGA - looks more likely each day. Then whatever amount we physically receive in 2009 will be budgeted for 2010. The total certified to the City for 2009 was $514,000. We will do this by (numbers rounded)

• Making permanent the cuts already approved by the City in January $65,000.
• Liquor Fund transfer of $150,000 - really good we did not build a new store.
• Park and Recreation Dedication fund interest of $103,000 - the funds can only be used for building new parks but the interest can be allocated anyway the Council chooses.
• $98,000 from the general fund
• $98,000 from the Capital Improvement fund

The $98,000 from each fund will be repaid back over 5 years at a cost of $39,000 each year to rebuild both funds.
This plan will take away the devastating effects of unallotment and the instability caused by the State's inability to live up to its promises. The fact that the City and all cities will receive less LGA and perhaps at some point will receive zero LGA is still something we must contend with.