Tuesday, February 9, 2010
Welcome Visitor! | login/logout
 

City eyes streetlight fees to cut reliance on state aid
Email Print
NORTHFIELD — With the future of state funding to Minnesota cities unclear and the past littered with disappeared dollars, city officials are planning to reduce their reliance on Local Government Aid entirely.

Though LGA accounts for just over 21 percent of the city’s general fund budget, City Administrator Joel Walinski said the city should not bet on it being around forever. Gov. Tim Pawlenty, balancing the budget with unilateral unallotments to state programs, reduced Northfield’s 2010 aid by nearly a third.

“If LGA continues — I’m not sure it’s going to — but even if it does for X amount of years, those X amount of years are going to be rollercoaster rides,” Walinski said.

Finance Director Kathleen McBride’s proposal is to find or cut about $227,000 of the city’s 2010 general budget. That’s a difficult feat with flat or declining revenues and departments that managers say are running out of inefficiencies to target.

“Our budgets are very tight right now, very thin,” Walinski said.

The figure represents 10 percent of the $2.27 million in state aid Northfield is projected to receive in 2010, money on which city officials would eventually like not to rely. After 10 years — if the program is still around — the city will have weaned itself off LGA, socking that money away for capital investments or a rainy day fund instead.

“I think that that’s a good goal,” Mayor Mary Rossing said. “Will we be able to achieve it every year? I don’t know.”

The first year might be the easiest. A proposal to implement a streetlight utility fee could recoup about $230,000 in operating and maintenance expenses.




A utility rate study examining that and other fees was due at City Hall Tuesday, but Public Works Director Brian Erickson said city officials might not see it until next week. Staff will present the City Council with rate study findings and recommendations at the Aug. 24 work session.

Preliminarily, city staff are guessing the monthly fees could cost homeowners between $1 and $3 and commercial, industrial or multifamily property owners between $6 and $7 per acre, City Engineer Katy Gehler-Hess said.

A survey by the city of Rochester this year found at least 33 Minnesota cities are charging streetlight fees and as many as 11 others are considering doing so.

McBride said the fee would be a one-time measure for reducing LGA dependence, and that successive years may require service cuts or increased tax or other fee revenue.

“There’s no magic, it’s just walking a tightrope,” McBride said.

When asked whether the city could shed its reliance on state aid within 10 years, McBride said she was uncertain whether the funding would still be there.

“We may have no choice,” she said.

— Jim Hammerand covers the city. He can be reached at jhammerand@northfieldnews.com or 645-1114.
Share: 

Guidelines: Welcome to the Northfield News community. Please keep your comments civil. Don't attack other readers personally and keep your language decent. If you would like to report abuse click here to notify us.
 
Member Opinions:
By: dapa2 on 8/16/09
Just as you would expect any bureaucrat to do.... propose more fee and tax increases. Wake up Northfield..... enough is enough!

By: Uberstadt on 8/17/09
How about turning off the lights dapa2? If the cost of running the city free of state aid (your tax dollars) then why not keep it local? Is your answer to not pay the light bill? How well does that work in your household? How much can it cost, $5.00 a quarter?

The further we can be finanically independent of the state, the better. You will have a much better chance of influencing the use of your tax dollars if the budgets are created at city hall.

By: dapa2 on 8/18/09
I for one wouldnt mind the city turning off the street lights. My lights on my house already light up as much as the city provides.

When it comes down to cost everything is nickle and diming the citizens... $5.00 her $25.00 there you don't think this adds up to any real money?

How about adopting some local zero based budgeting and making every item it in the budget prove itself every year. How about some real planning instead of just adopting what all these ad hoc commissions and other bodies put forward?

The fact is that a lot of cities, counties and other government entities spend too much and think if funding in one area gets cut its just ok to raise it somewhere else instead of doing their jobs and reexamining the budget.

Was not on of these ad hocs groups proposals to add another council member and make the mayor mor powerful....just what Northfield needs!

How about eliminating paper to council and all advisory boards. The message that the council should be sending is one of leadership, that it too will share a responsibility and cut their own costs and not simply looking at raising taxes and fees everytime there is a reduction in revenue.

Just last year there was an increase of 15% in city hall operations, a 113% increase in administration, a supplies from the previous year, and unallocated costs increasing over 22%. I never saw a proposal from council and/or mayor to decrease their salary as councilors, proposals to join with other government entitities in cost sharing arrangements or serious proposal about eliminating some services all together.

How many $5 a quarter, $10 a month, $250 a year before a senior on a fixed income does have the half a pill to take, or has to give up half or all of a meal, or a family loses their house.....

Time to hold the line and do some serous budget planning and that may mean a cut in salaries before raising taxes!

By: OfSilence on 8/21/09
The overall theme in this article is definitely something I agree with. Let the city break the chains of depending upon the STATE to fund them. The state budget needs to be reduced for obvious reasons. And for these communities that want to have anything and everything provided to their residents then let the CITY pay for it through whatever mechanism they want to put in place (even through taxes and fees).

People in this city/state/country need to realize that the parks that are built, the light rail thats built, or any other special project you advocate for actually costs MONEY.

And its long overdue that people stop passing the buck to everyone else and pony up the money. I have no problem paying taxes.....but its getting to a point to where its becoming EXCESSIVE taxation.

Enough is enough. This "collectivism" mentality can only go so far. You want a new park? Then YOU pay for it (meaning the city residents)! Not the state.

Once the city residents are forced to absord all these additional community amenities, then lets see how many people stick around or move to another community where taxes will probably be less.

 
Login and voice your opinion!  


Video

I35 Marketplace Home

Featured Business:
Top Jobs | Top Homes | Top Cars 
Top Jobs
Agriculture Monsanto, a leading company in the seed t...
General-- Cannon Valley Vet Clinic Northfield Open P...
TRYSTAR is looking for a full time Logistics Coordinator to...
Retail-- Account Service Manager Mature, hard-working,...