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CITY OF BLAINE <br />RESOLUTION NO. 9C-6 <br />RESOLUTION 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 />`once the City of Blaine to increase short-term borrowing for general <br />oeratirg 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 />P:.SSED by the City Council of the City of Blaine this 4th day of Janu- <br />ary, 1990. <br />E1wy-'n ennerg, tfayor <br />TEST: <br />: <br />yce Twistol, CMC, City Clerk <br />Council Action 90-19 <br />