CC RES 91-015 RESOLUTION OPPOSING FURTHER CUTS IN STATE AID TO CITIES

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CITY OF ST. ANTHONY RESOLUTION 91-015 A RESOLUTION OPPOSING FURTHER CUTS IN STATE AID TO CITIES WHEREAS, State aid helps fund basic city services for the City of St. Anthony and aid cuts would force large property tax increases and threaten cuts in these services; and WHEREAS, many city services are essential--police and fire protection, drug programs, ambulance and emergency services, and sewer, sanitation, and water services-- and affect citizens' health and safety. The state has an interest and responsibility to help finance these services; and WHEREAS, if property taxes increased as a result of aid cuts, the tax rate disparities between some neighboring cities and between cities and adjoining townships would widen causing great taxing inequities. The state has a responsibility to ensure a reasonable level of equity in its tax system; and WHEREAS, our City has already faced large aid cuts; in 1989, $85 million in aid was • shifted from cities to school districts; in 1990, city aid was permanently cut by $15.6 million and the $30 million LGA inflation adjustment was eliminated for Pay 1991 and all future years; for 1992, another $29 million dollars in local aid cuts are expected to meet the budget reduction target in the 1990 tax bill; and WHEREAS, we oppose Governor Carlson's plan to cut local government aid (LGA) and homestead and agricultural credit aid (HACA)by$21 million to help solve the $197 million state budget shortfall; and WHEREAS, cities are not the cause of the current budget crisis, and cities, like our own, have proven to be frugal spenders. Per capita city spending in 1989 was virtually unchanged from its level in 1980; and WHEREAS, while state spending on higher education, welfare, and state agencies has increased significantly, LGA and property tax relief funding have become smaller portions of state spending. THEREFORE, BE IT RESOLVED by the City Council of St. Anthony, jvfinnesota, that state aid to cities be maintained at current levels; and FURTHERMORE, BE IT RESOLVED that further cuts in property tax relief programs or tightening of levy limits for Pay 1991-1993 will force the City of St. Anthony Is to raise property taxes and seriously affect our ability to provide vital services to our citizens; and