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<br />I <br /> <br />I <br /> <br />I <br /> <br />Council Meeting Minutes <br />January 8, 1991 <br /> <br />Page 3 <br /> <br />Seecial Order of Business. continued <br /> <br />tax increases are the last resort. We need to find ways to do things as <br />well or better than at less cost. People tend to lose sight of the fact, <br />however, that in your state budget $340,000,000 or 5%, just 5%, is in <br />aids to the cities. That helps provide the police services, fire protection, <br />and all the other services that we provide. <br /> <br />What are the consequences of all these you might ask? The fear of war, <br />the Federal budget problem, the State budget crisis is overwhelming the <br />cities. It's absorbing the attention of the public and the press to the fact <br />and to the point where they ignore the day-to-day kinds of things that you <br />and I have to deal with here in the City of New Brighton. As <br />consequence, while we here worry about nickels and dimes. The State <br />worries about billions and the Federal government worries about trillions of <br />dollars. <br /> <br />I think that as the Governor and the LegiSlature look at local government <br />aid reductions or eliminations as a solution to their problem, we have to <br />continue to make the point and remind them and our residents that the <br />argument to the basis of local government aid is still valid and I think it is <br />a betrayal of trust for them to eliminate local government aid. Sales taxes <br />were sold to the people of Minnesota on the basis that those revenues <br />would be used to reduce property taxes and those aids would be provided <br />to cities to provide essential services. Now we are being told that <br />because the state needs those revenues to do what it wants to do we are <br />going to be on our own if some of those arguments are brought to . <br /> <br />I think that we need to resist that. I think the basis for local government <br />aid (part of which was to redistribute some of the wealth from the higher <br />wealth to the lower wealth cities) is still valid. There are cities who need <br />help to provide essential services. Some of the results of the previous <br />session and previous discussion brought us to the point where there are <br />over 50 cities that no longer receive local government aid. New Brighton <br />receives approximately 25% of our revenues from local government aid. <br />There are 651 cities in the State of Minnesota who depend on local <br />government aid for over 50% or approximately that amount for their <br />budget. Without question, major cuts in local government aids are going <br />to hurt alot of people. If we in New Brighton were to lose our $800,000 <br />of local government aid we would see a 32% increase in our city tax rate <br />and a 6% overall increase in property taxes. Some might argue that we <br />could afford that, it would be extremely difficult and something that I <br />think we need to resist. <br /> <br />In terms of current status, despite all problems around us and despite all <br />the problems at Federal and State level, I think the City of New Brighton is <br /> <br />Seecial Order of <br />Business <br />