2003-02-21 Friday News
The Friday News
February 21, 2003
Governor Pawlenty’s Budget Proposal
On Tuesday, Governor Tim Pawlenty unveiled a proposed state budget that brings expenditures in line with
revenues to address the projected state budget deficit. Cities are a huge share of the solution—comprising more
than 10% of the entire state budget deficit of $4.2 billion. Cities across the state face a cut in state aids over the
next two-year period of $435 million, or approximately 29% of the total state appropriation for Local
government aid (LGA) and the market value homestead credit (MVHC) over the biennium. The cuts to City
LGA and MVHC are such large percentages for a reason. The Governor states in his budget documents that City
aid reductions should be computed on a basis similar to state agencies even though most city revenues come
from non-state sources. The proposed cuts, if enacted, would reduce the LGA appropriation to a level last seen
in 1996. At that time, cities across the state received $347 million in LGA. Also at that time cities received $192
million in HACA—a general aid program that has since been eliminated. When the Governor’s proposed cuts
for 2004 are fully implemented and coupled with reforms enacted in 2001, cities will have lost nearly $260
million a year in state aid in just three years.
How is the cut computed? The 2003 cut is equal to the lesser of 9.3% of revenue base (certified levy plus
general state aids) or 5% or total city revenues (total government fund revenues, except for debt service and
charges for services provided to other units of government) for most cities over 1,000 population and 3.5 percent
of cities under 1,000 population. For Mendota Heights, the Governor’s proposal would mean a loss of 100% of
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our LGA and Market Value Homestead Credit for a loss of $224,936 in 2003 and the same in 2004
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Levy Limits, referendum and reverse referendum The Governor is also proposing levy limits. Apparently
cities will be allowed to ask voters to exceed the state imposed levy limits though a revised referendum process.
However, the Governor is also proposing a reverse referendum process that would allow voters to reverse a levy
increase decision of the City Council. This process appears to allow voters to appeal not only normal budget
driven tax increases, but also to replace state aid cuts.
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Salary freeze The Governor is also recommending a salary freeze for all state and local government employees.
The details of the freeze, including how it would affect existing employee contracts, are sparse at this time. The
League suspects the salary freeze will be considered by state officials to be a tool to help local governments
address the impact of state aid reductions to avoid employee layoffs. The important thing to remember about
the Governor’s budget proposal is that it’s just that—a proposal. It is a recommendation to the Legislature and
not set in stone. I will keep you updated on new information as it becomes available.
Commission Appointments
There were a number of Commission appointments that expired on January 31, 2003. After the first meeting in
February, the City Council conducted interviews with five interested candidates for the expired seats. On
Tuesday, the City Council made the following appointments: Planning Commission: Marina McManus, Bruce
McManus and Mark Miller; Parks and Recreation Commission: Stan Linnell, Raymond Morris, and Larry
Craighead; Airport Relations Commission: Scott Beaty, Elizabeth Petschel and Mike Povolny.
Mark Miller and Mike Povolny are both new appointments. The other appointments are Commissioners being
re-appointed to their current positions.
Resolution Honoring Larry Shaughnessy
On Tuesday night, the Mayor and City Council unanimously passed a resolution honoring City Treasurer Larry
Shaughnessy. Mayor Huber presented the resolution to Larry’s wife Mary and daughter Mary Pat.
Wentworth Warming House Improvements
On Tuesday night, the City Council considered a request from the Parks and Recreation Commission for the
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Council to reconsider action taken at the January 7 meeting to construct an addition onto the Wentworth
warming house. The Parks Commission favors total replacement of the structure and asked the City Council to
once again consider their request. The Parks Commission does not feel that it’s prudent to construct an addition
to a thirty plus year old structure. The Council discussed the item and decided to hold off on a decision to
construct an addition. The Council by consensus directed staff to report back in the Spring with information on
the stability of the building and foundation, the use of the ice rink and warming house this winter season, and
suggestions on additional uses for the building.
Letter of Support for Rogers Lake East Neighborhood
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On Wednesday, February 12, Mayor John Huber and Council member Sandra Krebsbach met with the ARC
Commission to hear a presentation by the Rogers Lake East Neighborhood. The presentation suggested that the
MAC might have provided the FAA with incorrect DNL contour maps. If this is the case, thousands of homes
in Minneapolis and Mendota Heights that may have been eligible for Part 150 sound attenuation were never
attenuated. Following the presentation, the ARC Commission requested that the City Council send a letter to the
Metropolitan Airports Commission requesting an investigation of the evidence presented by the Rogers Lake
East neighborhood group. The members of the ARC Commission stressed that they are not asking the Council to
weigh in on or judge the validity of the evidence, but merely asking the Council to request that MAC investigate
the matter. On Tuesday night, the City Council voted unanimously to send a letter of support of the Rogers Lake
East Neighborhood which requests that the MAC conduct an investigation of the matter.
Sad News
I am sorry to report that Frank Fabio, father of Dakota County Commissioner Patrice Bataglia passed away on
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Monday, February 17 after a battle with cancer. Mr. Fabio lived an extraordinary life. Please see the attached
article from the Pioneer Press “Frank Fabio was Navy war veteran, St. Paul nightclub owner.”
Property Maintenance Ordinance
On Tuesday, the City Council discussed the adoption of a property maintenance ordinance for the City.
Many communities include regulations on property maintenance and appearance in their city codes. Since
the Mendota Heights code does not now address this issue, and we continue to be contacted by residents
concerning these issues, staff felt it was appropriate to bring this back for Council consideration. On
Tuesday, the City Council directed staff to take sample ordinances from other communities to the
Planning Commission for their review and input. The Planning Commission will be discussing this issue
on Tuesday night.
Just the Facts
You may have noticed that the Police newsletter “Just the Facts” has been missing from your Friday News. In
the interests of Donn Anderson’s time (performing his duties of Sergeant and Acting Chief) we are waiting to
start the Police newsletter again until the new Chief comes on board. However, anything pressing from the
Police Department will be included in the regular Friday News until that time.
Final Thought
“We find comfort among those that agree with us—growth among those that don’t” – Frank A. Clark
Respectfully Submitted,
Cari Lindberg
Administrator
Attachments: Pipeline, Planning Commission agenda, Sun Current article “Eagan, West St. Paul residents make
Met Council cut,” Pioneer Press obituary: “Frank Fabio was Navy war veteran, St. Paul nightclub owner,” LMC
Friday Fax.