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CITY OF BLAINE <br /> RESOLUTION NO. 90-6 <br /> IIIRESOLUTION OPPOSING RETROACTIVE CUTS IN <br /> 1990 LOCAL GOVERNMENT AID ALLOCATION <br /> WHEREAS, the State of Minnesota currently forecasts a $161 million <br /> revenue shortfall in the 1990-1991 fiscal biennium State budget, and <br /> WHEREAS, the State Finance Commissioner has apparently suggested <br /> reductions in cities ' 1990 Local Government Aid allocations as possi- <br /> ble means to deal with the budget predicament, and <br /> WHEREAS, 1990 cuts in Local Government Aid would result in unantic- <br /> ipated revenue shortfalls for cities and essentially transfer the <br /> State' s revenue shortfall problem to cities, and <br /> WHEREAS, such Local Government Aid reductions, if they are made, <br /> would be very burdensome for the City of Blaine since they are retroac- <br /> tive coming after the City finalized its budget and levy determina- <br /> tions for 1990, and <br /> WHEREAS, the City of Blaine' s 1990 adopted budget reflects only a <br /> 2 . 9% increase from the previous year and provides no increase to the <br /> City' s already low General Fund reserve level, and <br /> WHEREAS, any reduction in the General Fund reserve level will <br /> , orce the City of Blaine to increase short-term borrowing for general <br /> 111110 crating expenditures and possibly result in a lower bond rating, and <br /> WHEREAS, the State of Minnesota Legislature has established a <br /> "rainy day" budget and cash flow reserve account of $550 million for <br /> contingencies such as revenue shortfalls. <br /> NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of <br /> Blaine, Minnesota, that it strongly opposes any retroactive reductions <br /> of the 1990 Local Government Aid allocation to cities to resolve the <br /> State of Minnesota' s forecasted revenue shortfall, and favors, in- <br /> stead, the use of the State' s budget and cash flow reserve account to <br /> offset any forecasted revenue shortfall, and <br /> BE IT FURTHER RESOLVED that those legislators representing the <br /> City of Blaine be contacted and forwarded a copy of this resolution <br /> and that this resolution be transmitted to the Governor. <br /> PASSED by the City Council of the City of Blaine this 4th day of Janu- <br /> ary, 1990. <br /> Ii/ <br /> Elwyn T . le .erg, Mayor <br /> 'TEST: <br /> • <br /> 1 <br /> J 0 <br /> Joyce Twsstol , CMC, City Clerk <br /> Council Action qn-lA <br />