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1 <br />1 <br />COUNCIL BUDGET MEETING SEPTEMBER 25, 1989 <br />game, and will wait to see what cities request before they <br />estimate a revenue figure. As cities are naturally <br />conservative he guessed there would be cutbacks by the state. <br />Mr. Schumacher stated that a provision of law that <br />legislators are presently working on is the elimination of <br />levy limits. What he feels will happen is that the state <br />will reduce our Local Government Aid (LGA) and tell us to <br />make up the difference by raising taxes allowing cities to <br />take the heat. <br />Mayor Benson felt that a coalition of counties, school <br />districts and cities should go to the state and inform them <br />of our concern. Mr. Reinert felt that the League is not as <br />powerful or influential as it should be. Mr. Schumacher <br />replied that the League is well organized and presents our <br />collective arguments well, but that legislators seldom <br />listen. Mr. Bohjanen added that school districts would <br />probably want to join us in this matter. Mr. Schumacher <br />stated that the school districts stand to gain up to 100 <br />million dollars, and probably would not want to join us. He <br />also added that we presently only get about 22 cents of each <br />tax dollar. Mr. Schumacher read an article that said that <br />Mr. Tripplet at the State of Minnesota, when asked if anyone <br />at the state understood the tax /budget law, replied - <br />probably no one. <br />Mayor Benson asked Mr. Schumacher if he felt we should plan <br />for the possible elimination of state aid all together. Mr. <br />Schumacher replied that he felt aid would be reduced for the <br />next two years, then frozen. <br />Mr. Schumacher and Mayor Benson speculated that given our <br />last years state aid figure of $344,000.00 we can expect <br />roughly $300,000.00 next year, and frozen the next year at <br />around $200,000.00. <br />Mr. Bisel felt that the savings that the school districts <br />would be realizing should be passed on to the cities. Mayor <br />Benson replied that the school districts are so strapped for <br />funds that that would probably not happen. <br />Mr. Sch__lEacher stat _! that the council should not feel <br />as all cities are in the same boat. Mr. Benson suggested the <br />Council take Mr. Schumacher's recommendations and begin <br />complying with the 1988 law. Mr. Reinert stated that it was <br />unfortunate that residents come to city hall when taxes rise <br />when the city only receives 22% of each tax dollar compared <br />with the school districts' 56 %. <br />Mr. Schumacher explained that the documents the council had <br />before them were revenue projections (based on the 1988 law) <br />and proposed department expenditures. It was agreed not to <br />dwell on the revenue portion as it was subject to too much <br />change. Mr. Schumacher stated that a question the council <br />291 <br />