91-7720R81
RESOLUTION NO. 7720
RESOLUTION OPPOSING FURTHER CUTS IN STATE AID TO CITIES
WHEREAS, state aid helps fund basic city services for the
City of Richfield and aid cuts would force. large property tax
increases and threaten cuts in these services;
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;
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;
WHEREAS, our city has already faced large aid cuts: in
1989, $85 million in aid was shifted from cities to schools
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 in
local aid cuts are expected to meet the budget reduction target
in the 1990 tax bill;
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;
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;
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 Richfield,
Minnesota, that state aid to cities be maintained at current
levels;
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 Richfield to raise property taxes and
seriously affect our ability to provide vital services to our
citizens;
Resolution No. 7720
Page 2
FURTHERMORE, BE IT RESOLVED that our members of the
Minnesota State Legislature oppose .cuts in state aid to cities,
.tightening of levy limits, or reductions based on fund balances.
This Resolution is
of February, 1991.
passed. and approved the 11th day
,.
Gw~~-~
Martin J. irsch Mayor
ATTEST:
Thomas P. Ferber
ty