A city-by-city look...
Communities across Minnesota are being forced to cut back and lay off staff as they prepare for the new year.
The League of Minnesota Cities warned Tuesday that many cities are scrambling to cope with the slumping economy, declining revenue and rising costs.
In addition, the state could experience one of its biggest deficits, and that "could really wreak havoc on city budgets for 2009 and beyond," said Gary Carlson, the League's director of intergovernmental affairs.
The state economic forecast is due out Thursday.
"I think cities are a little bit on edge," Carlson said.
City leaders fear the Legislature may reduce state contributions to local governments to meet its own budget. Many communities rely on Local Government Aid to finance basic services. And cutting state Market Value Homestead Credit reimbursements, which make up for homestead tax breaks, can leave a hole in city coffers.
Lino Lakes faces making midyear budget cuts if it loses its reimbursement, which adds up to about $240,000, said city administrator Gordon Heitke. The Legislature has made such cuts in the past.
"Our greatest concern for 2009 is whether the Legislature will take some action to adversely affect our budget as they deal with their fiscal challenges," he said.
Cities across the east metro are looking for ways to make the painful cuts:
Pioneer Press
By Brady Gervais and Mary Divine
Centerville did not make the list...
5 comments:
Meanwhile, our City is admittedly "baffled" and continues to spend, spend, spend!
Special assessments? No problem!
Maybe they aren't educated enough to get the message.
Centerville has not relied on LGA - due to the low population it never has gotten the aid that other cities receive.
OMG! The City needs to stop whining about losing the LGA! Here are the stats on what we have received.
2003 0
2004 0
2005 0
2006 21,864
2007 23,088
2008 22,920
2009 0
In the meantime the city is actually considering replacing the city hall sign and paying for entrance signs to Centerville. This is to the tune of $50,000-$80,000! They really should knock if off! We can get the entrance signs for FREE from the county.
Copy and paste. Search Centerville.
http://www.house.leg.state.mn.us/hrd/lgahist.asp
Like Dad always said... A poor excuse is better than no excuse. Of course, I still got grounded!
I do not believe that the City has ever whined about losing LGA since they have not received a substantial amount. Other Cities are whining because a cut to LGA impacts their budgets greatly. Look up what the other cities (Lino, Circle Pines) receive and what that would do to them. Centerville is one of the lucky few that LGA cuts will not impact.
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