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| 6/2/2009 10:27:00 AM | Email this article • Print this article | Further LGA cuts will likely impact
many city services
Tim Douglass
Publisher
Like all cities in Greater Minnesota, Glenwood is facing some difficult decisions in anticipation of further cuts in Local Government Aid (LGA). The state Legislature did pass a last-minute bill that would have balanced the state's budget for the next biennium and included no cuts to LGA or other property tax aids and credits program. The bill, however, included tax increases and Gov. Tim Pawlenty used line-item veto and the veto and has indicated he will will balance the budget on his own through un-allotment.
What that likely means for cities like Glenwood is further cuts in LGA since the Governor has identified property tax aids and credits, health and human services and higher education as the main targets of his cuts needed to balance the budget.
Glenwood City Administrator Dave Iverson told the commission at its work session meeting last week that the city will likely lose $87,000 in LGA this year, with another $97,000 next year. Add the $70,000 in LGA for Glenwood that the Governor unallotted at the end of 2008 and the city can look forward to losing about $254,000 from its budget by 2010.
And that will likely mean some drastic cuts in services for Glenwood. Currently, Iverson said he is looking at across the board percentage cuts in all departments. He said the city's police department would be hit hard and will likely look at discontinuing the 24/7 police coverage for the city. But there are other cuts that are looming. Iverson said he isn't sure how it will affect the city's library. "The only option is to quit buying books or cut hours.
"Next year will be especially tough as we pile cuts on top of cuts," he said.
The city beach is another area that Iverson will have to look at when recommending budget cuts to the commission. "Do we cut hours of the beach staff? Do we go without lifeguards?"
He said what it all comes down to in 2010 and 2011 is pay freezes. "The only way we can really take this bite is by cutting hours," he added.
The city will be looking at everything in an effort to save money. Iverson also said the city will have to look at how and when the city's employees plow snow. He said he will also look at four-day work weeks. The city has already cut down on all "overtime" hours.
The city staff will continue to look at the budget and will bring the proposed cuts to the commission and it will need to amend the budget, Iverson stated. An increase in property taxes has not yet been discussed by the Glenwood City Commission.
In other business, the commission:
• Noted that the Lakeside Ballroom valuation issue will be reviewed by Pope County Commissioners on Monday, June 15. City staff and some members of the city commission will be attending the meeting, it was stated.
• Heard a report from Tom McSparron of West Central Initiative. McSparron provided the commission with information about the WCI and its work over the past year. He also requested that the city again support the WCI with a $2,000 contribution. "Thank you to the city for its past support and we look forward to creating new opportunities in Glenwood, Pope County and West Central Minnesota," McSparron said. Mayor John R. Stone said the commission is very familiar with what WCI does and acknowledged that the city has been a supporter for years. He thanked McSparron for the update and told him that WCI "should keep up the good work." The commission will decide on the $2,000 contribution at a future meeting, it was stated.
• Convened a public hearing as the Glenwood Economic Development Authority, which consists of the same members as the city commission. The EDA conducted a hearing on to accept, review and act on the Northern Pacific Hill Addition Tax Increment Financing plan and the enlargement of the Development District in that plan. Both the TIF plan and the enlargement of the district were approved by the EDA board. The board then closed the hearing and reconvened as the city commission and accepted the resolution calling for the TIF plan and the district enlargement.
• Approved a list of expenditures amounting to $90,517.37.
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