Caledonia Argus

City council prepares for possible budget cuts

Posted: 2/25/03

by Jane Palen
Managing editor

The city has been put on notice that cuts to local government aid (LGA) are likely to be forthcoming in the near future.

At its regular meeting Monday evening, members of the city council reviewed a report from the League of Minnesota Cities which outlined the amount of cuts that would be made if Governor Pawlentyís budget passes the legislature.

City clerk administrator Robert Nelson noted that local government aid represents only 4 percent of the state budget, but the proposed cuts represent 10 percent of the stateís deficit.

For cities like Caledonia that depend heavily on LGA, deep cuts are likely to mean reductions in some the services the city offers, and possibly increased fees for services. Due to the levy limits imposed by the state, the city cannot raise taxes to cover the loss of aid.

Currently, LGA accounts for about 37 percent of the cityís revenue, or $795,555. Pawlentyís plan calls for a reduction of $78,519 for 2003 and $149,185 for 2004, a total of $227,704.

Most of the cuts would come from non-essential services, such as parks and recreation and library. Council members noted that areas that could face cuts would include the summer recreation program and swimming pool. For example, pool hours could be reduced, and the number of out-of-town games that the ball teams would be allowed to travel to could be restricted.

Although a wage freeze has been proposed, most city employees would not be affected because they are represented by bargaining units and their contracts have already been negotiated. Negotiations can only be reopened if the association representing the employees gives its permission. The Caledonia Police Associationís contract expires at the end of this year, and the employeesí association contract runs to the end of 2004.

Council members noted that although wages canít be frozen, the number of employees could be reduced.

Mayor Robert Burns suggested that department heads be given the opportunity to reduce their budgets by 10 percent before the council takes any action.

The council noted that it will probably be holding special meetings to discuss budget reductions between now and when the legislature adjourns.

Due in part to the concerns over the state cuts to cities, the council tabled for two weeks a decision on whether to purchase a new dump truck for the street department at a cost of $93,000, including tax. The city had budgeted $85,000.

Solid waste fees to increase

In other news from the city, the council agreed to raise its solid waste fee from $1.85 per household per month to $2.10. The change is being made to reflect an increase in fees the county charges at its supervised drop-off sites. The county will now bill the city $7,740 per quarter for the service.

Mayor Burns was the lone vote against the increase. He said he objected on the grounds that he believes people who use the supervised drop-off sites to discard furniture or appliances should pay a fee when they use the drop-off site and that the cost should not be shouldered by all city residents. He rejected the countyís reasoning that charging a fee to individuals will increase the possibility that appliances and other items would be dumped along the road sides.

ìThere are penalties for dumping in a ditch, enforce it,î said Burns.

Request for beer sales at auditorium

The council will decide at its next meeting whether to allow the sale of beer at the St. Patrickís Day fight at the city auditorium March 15. The city has restricted beer sales to the basement of the auditorium for a number of years.

Matt Schellsmidt, founder of the Caledonia Boxing Club, told the council that all IDs would be checked at the door, and those 21 and over would be given a wristband and have the opportunity to buy no more than two beer tickets. The VFW would be supplying the beer.

The council agreed to wait until its March 10 meeting for a final decision. Schellsmidt said that he would have information on insurance coverage at that time.

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