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• FALCON HEIGHTS CITY COUNCIL MINUTES _3_ September 10, 2003 Reserve Policy (continued) Council member Lamb proceeded to read the following statement: "This Policy, in reality, is the culmination of an intensive assessment of where we are, and where we want to go, as a City. We have thoroughly reviewed our current condition, our foreseeable needs, and our available resources. The level and quality of the services provided by the City is high. Our infrastructure, with the completion of Sheldon, is in good shape. We have retired some debt and what remains is clearly manageable. Property values are high, and with the completion of the Southeast Corner development, should continue to rise. Overall, the City is in good to excellent condition. We have also examined our financial position and the fiscal policies that guide us. Adopting this Policy will allow us to maintain City services and the City infrastructure at at least the current levels. It will assure members of this community that tax dollars are well managed, that resources are adequate to meet future needs, and that, as proper stewards, we are holding no more of the taxpayer dollar than is necessary. It will provide guidance to the staff and to this Council as we establish budgets and spending priorities. And, it will allow us to lower the • property tax levy and probably lower the individual property tax. The single greatest barrier to the adoption of this Policy, frankly, is the State of Minnesota. The State, which, at times, has a great deal of difficulty managing its own affairs, has chosen, in its wisdom, to manage ours. Periodically, the State has ruled that property tax levies may only be raised if the levy was raised the previous year. This poorly conceived State mandate may encourage local governments to raise levies, not because they have immediate need for the monies, but to preserve the option to raise levies, if needed, in the future. This is wrong, and I urge Governor Pawlenty and his administration to repudiate this foolish notion and allow us to manage our own affairs as we were elected to do. By adopting this Policy, we are taking the risk that the State will punish us. Nonetheless, it is the right thing to do. We are also running the risk, by adopting this Policy, of appearing to endorse Governor Pawlenty's stance on State aid to cities, counties and school districts. Local units of government are the primary providers of services. Cutting local aid has the effect of hurting the most vulnerable, the young, the old, and those most in need. At the same time, it puts tremendous upward pressure on property taxes, wluch are among the most regressive of all taxes. Rising property taxes could force the elderly and those on fixed incomes out of their homes. I urge Governor Pawlenty to revise his stance on local government aid, on the provision of services at the local level, and on this harmful reliance on property tax. That being said, adoption of this Policy is the right thing for us to do. It will become an integral • piece of the management practices that, in part, have made Falcon Heights a premier place to live." SEPTi OMIN.doc 3