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When City Advocacy Goes Awry PDF Print E-mail
Wednesday, 23 September 2009 13:03

I was invited to join the League of Minnesota Cities policy committee on “Improving Fiscal Futures.”

To be honest sitting on committee’s like this are generally not my cup of tea. However, the advocacy that has come out of LMC in recent years (transportation tax increase in specific) has been disappointing to elected leaders around this state.

My thought for accepting was to be a part of a few policy groups and hear what other city leaders are thinking. Our first meeting was surprisingly heartening. I was happy to hear elected leaders and administrators state how the current policies were in need of change. The view of a significant number was that points developed over the years were only an instrument that longs for a distant past when the Minnesota Miracle was born and times (for cities) were good.

Our first meeting was introductory in nature, and not a lot of debate about individual policies took place. In this meeting I had expected to start minimal debate on each policy point, because we are only allotted three days for meetings. The policies as currently stated are the following:

  1. LMC supports a strong fiscal partnership between the state and local governments.
  2. LMC supports all options to improve stability of state revenue, including revenue (tax) increases.
  3. LMC supports NO cuts in aid to cities.
  4. LMC supports reinstatement of inflationary increases to expenditures.
  5. LMC supports the state having a 5% budget reserve. (But opposes the state telling local governments anything as highlighted below)
  6. LMC supports restoring aid cuts to 2003 levels.
  7. LMC supports a study of LGA formula to address deficiencies.
  8. LMC supports the requirement of state agencies to demonstrate need for increased fees.
  9. LMC supports streamlined reporting to state agencies to avoid duplication of burden on local governments.
  10. LMC supports letting the LMV program expire.
  11. LMC supports having the MVHC program restructured to provide credit directly to homeowner.
  12. LMC supports having the state reinstate the sales tax exemption for all local government purchases.
  13. LMC supports legislation that would allow the exempt entity to be eligible for a refund, even if the application has been submitted for sales tax on capital equipment.
  14. LMC supports a multi-state effort to streamline sales tax on sales over the internet.
  15. LMC opposes state restrictions on local budgets.
  16. LMC opposes any attempt to regulate local government reserve balances.
  17. LMC supports allowing local governments to diversify revenue sources. (i.e. local sales tax, etc)

The policies are often written quite generally and then advocated for in a LEFT of center format. A format many citizens would, in fact, oppose.  Those of you who remember the memo sent out to cities to advocate for the new transportation/gas tax increase infuriated many of us at the local level.

There are a few other policy points that have more to do with larger cities so I have left them off for the sake of brevity. After viewing this list I would ask the local officials around our state if you would run for office using a few of these points for debates and discussions with local citizens.

My guess……probably not!

  • Putting government on inflationary “auto-pilot”. (One reason we are in the current mess)
  • Increase any number of taxes on citizens (many of whom receive no benefit from such a redistribution scheme) to increase aid to cities.
  • Raise taxes on internet purchases in the name of defending “main-street”.
  • Raising gas tax and user fees. (Accomplished in recent legislative session)
  • Lastly, we should be able to have as much money on reserve as we want, and never be asked to take part in solving a budget crisis when the state gives us money. We want to be exempt and so to make our point we will threaten to raise property taxes and cancel police and fire protection to scare people.

I think it is safe to say that any candidate would lose in a land slide, and it is why the partnership LMC members think exists with the state will mean additional cuts as the state budget continues to contract.

I remain equally disappointed that “advocacy” groups lose track of the actual citizen, and start to advocate for a newly created cause or entity at the citizens expense.

It should be every leader’s job to make sure the actions we take and votes we make reflect the citizen’s ideals because ultimately they are the ones that own the federal, state, and city governments.

I’ll give you my ideal policy ideas in Part II of an upcoming article.


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National Debt Road Trip PDF Print E-mail
Tuesday, 01 September 2009 08:04


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Todd County Mayor's Form Association PDF Print E-mail
Saturday, 29 August 2009 10:14

 

The mayors of Todd County have taken a proactive stance and have formed the Todd County Mayor’s Association.

According to Clarissa Mayor Nathan McLaughlin, “It is an organization that has been discussed over the years, but with the numerous local and economic challenges facing our area the decision was made to officially meet as a group in hopes of bringing about positive change to our cities and county.”

The purpose of the organization is to discuss and advocate issues that directly affect citizens.

“It is a chance for everyone to bring ideas forward in a way that will foster cooperation and innovation. The hope is that meeting on a regular basis will make our cities work together, creating a better place to live for residents of all ages,” said McLaughlin.

On August 19, the association met in Clarissa and invited the media to find out more about the association.

“Everyone here cares about Todd County,” said McLaughlin.

Long Prairie Mayor Don Rasmussen said, “We want every town in this county to survive. That is not an easy thing without help. We can help each other with different ideas and those kinds of things.”

“We can share our expertise, our equipment and our experience to help solve problems in other cities that we have dealt with,” said Browerville Mayor Mike Aksamit.

The idea for the mayors to meet monthly came about because the city clerks and administrators were meeting regularly and the mayors thought this would be a good and useful idea.

Every city in Todd County is on board with the association.

“We met with two county commissioners a few weeks ago so they would know what the mayor’s association was. That we were not here to fight with them, but to work with them,” said Rasmussen.

They are meeting monthly now, each time at a different city within the county. The mayor of the city where the meeting is being held is the chair of that meeting and sets the agenda for it.

One of the big issues is economic development and how to bring more industry into the county and specifically into the cities of Todd County.

Some of the topics being addressed by the association are:

  • Mass purchase of items used by cities on a regular basis in hopes of obtaining better prices.
  • Encouraging economic development.
  • Share ideas and knowledge about issues affecting cities.
  • Working and communicating with county officials on a regular basis.
  • Sharing and purchasing city equipment.
  • Working together with one united voice to encourage change and growth in Todd County.

Source: Independent News Herald & Karin Nauber 


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Budget Solution: Making Enterprise Funds Work PDF Print E-mail
Tuesday, 25 August 2009 06:01

It is budget time for cities around the Minnesota.  We draft our budgets so that we get the projected numbers down to the county.  It is the beginning of a process that informs property taxpayers what tax rates will look like in the upcoming year.

One area of our budget that we are focusing on is Enterprise Funds.  Cities are in a number of "businesses" providing products/services like water and sewer.  Other cities may provide other utilities and services that range from electricity to the internet.  There is certainly a debate that can be had on how involved cities should be in these areas, but we will leave that for another time.

Instead I am just dealing with: "What Is"

With the continued reductions in LGA I feel it is important for small cities, in particular, to look at their staffing hours to ensure that salaries and benefits are spread across their respective enterprise funds correctly.  I think many small cities have been relying on their general fund far too much, and the trends in government will demand a different way of budgeting.

In Clarissa, it has meant re-evaluating hours and spreading out part-time, administration, and full-time staff across a number of enterprise (business) funds.  The result is a lessening strain on our general fund because we are moving hours from the general fund and over to the Enterprise Funds (Water, Sewer, Natural Gas, etc.)  

It really helps to evaluate this area because I am sure you will find moving hours and benefits will assist in taking pressure off the general fund and reducing the need for higher property taxes.

It does mean monitoring and managing Water, Sewer, Natural Gas, and Municipal Liquor finances in ways that can cover those expenses.  It means discussion with our administration and council on the topics of cost and rate structure.  

However, it is a way to pay for salary and benefit costs on a fee for service basis.  In my opinion this is fairer form of revenue collection for the senior citizen (e.g.: who use very little water/sewer services) versus an apartment building or other high usage commercial venture.  

It will be one area cities can use to pay and maintain staff and keep property taxes low in a way that is equitable.  Please look at your fund balances as well.  I am amazed at how many leaders do not know what reserves they have in place, and how managing those effectively can be a way to lessen the impact on citizen's property taxes in times that are tough.


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A Day In The Life PDF Print E-mail
Wednesday, 19 August 2009 13:44

Met on saving taxpayers dollars in morning.

Met a group of seniors on saving bee's & butterflies in afternoon.

Thankfully have not met anyone discussing birds & bees, but the day is still young. 


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