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Res 1991 - 04 Opposing Further Cuts in State Aid to CitiesCITY OF MENDOTA HEIGHTS /,�' DAKOTA COUNTY, MINNESOTA�YJ RESOLUTION NO. 91 - �4 RESOLUTION OPPOSING FURTHER CUTS IN STATE AID TO CITIES WHEREAS, State Aid helps fund basic City Services for the City of Mendota Heights 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, previous reductions in State Aid has reduced City income by $426,000 and resulted in an 18 percent increase in local taxes; 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, the City of Mendota Heights operates under a frugal and conservative budget, with current operating expenditures of only 76 percent of the average of inetropolitan area communities. � NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Mendota Heights, Minnesota, that State Aid to Cities be maintained at current levels. BE IT FURTHER RESOLVED that further cuts in property tax relief programs or tightening of levy limits for Pay 1991-1993 will force the City of Mendota Heights to raise property taxes and seriously affect our ability to provide vital services to our citizens. BE IT FURTHER 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. Adopted by the City Council of the City of Mendota Heights this 5th day of February, 1991. CITY COUNCIL CITY OF MENDOTA HEIGHTS By �� � `� Charles E. Mertensotto Mayor ATTEST: �� /Gt �����— K thleen M. Swanson City Clerk