1982 State Aid Cut #2Date: April 16, 1982
To: Mayor and Council
From: William P. Craig, City Manager
Subject: 1982 State Aid Cut #i2
We have been notified by a League of Minnesota Cities letter dated March 23, 1982,
that we should anticipate a reduction of 8 2% in our homestead credit payment from
the state. This amounts to $24,975.00. In other words, the amount we certified to
the County for property tax collection will come up short, since the County already
gave all homeowners the homestead credit, but the full amount of the credit will not
be sent to us by the state.
The problem can be outlined as follows:
Previous state aid cut $102,925
Latest state aid cut 24,975
Total cut $127,900
Less Council cut 2 -16 -82 104,300
Current problem 23,600
I recommend the following cuts be made:
City Council The finance department has, by doing more work internally, saved
$3,500 formerly paid to the outside auditor for accounting work.
Appraiser Scott Renne has worked for three months without the assistance
of a residential appraiser as budgeted, and has done both jobs, saving $6,700.
Street Division Lawrence Olson has requested another 90 day unpaid leave of
absence due to his continuing heartrecovery problem. If unreplaced, budget
saving is $6,200.
Streets /Parks -The new air compressor was bid at dust under $10,000 1ersus the
$15,000 budgeted. Six- tenths of this expenditure is chargeable to the General
Fund, so six tenths of the saving (or $3,000) accrues there also.
Tree Program Some of the biggest state cuts have come here. We must, in my
opinion, continue the removal program or face a calamity. Therefore, the
replacement program is the only place to cut. Here, people can be encouraged to
plant trees on their own. Also, we have requests for only half the trees budgeted.
Therefore, I'd recommend cutting half the funds budgeted, or $5,000.
To recapitulate:
THE PROBLEM $23,600 cut needed
POSSIBLE SOLUTION Expense Cuts
City Council Audit savings $3,500
Appraiser personnel vacancy $6,700
Street Division personnel vacancy $6,200
Street /Parks purchase savings $3,000
Tree Program replant reduction $5,000
$24,400
2
Once again, the pain is spread across several departments, without any impact on the
public safety services, or any real effect on other services rendered. I will be,
as usual, available to discuss and alternative methods of budget changes to meet
the state cutbacks.
Respectfully submitted,
William P. Craig
City Manager