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Stateís financial situation creates uncertainty for city

Posted: 3/11/03

by Jane Palen
Managing editor

No one knows for sure how the stateís current budget problem may ultimately affect the city, but city officials are fairly certain that the news from St. Paul wonít be good. Already, the city has been told to expect cuts in local government aid (LGA) that could total $229,000 over two years.

At Monday nightís regular meeting of the council, city clerk administrator Robert Nelson shared with the three council members present a recent update from the League of Minnesota Cities which warned that the governorís budget proposal would not only cut LGA , but would at the same time impose levy limits which would prevent cities from making up for lost aid through taxes, but would also place restrictions on levies for new debt. In the senate, a bill was recently drafted that would prevent any issuance of new debt that would require a property tax increase in 2004 or 2005.

Due to the uncertainty surrounding the budget, the council agreed Monday evening to delay approval for a new dump truck that was in the street department budget for 2003. The total cost of the truck, including chassis, box, hoist, radio, and other equipment is $93,300. Funds were to be obtained through the sale of certificates of indebtedness.

Street department foreman Mike Gerardy told the council that the prices were good until July 1. Council members agreed to wait until the end of the legislative session, or until the effects of the state budget are known, to give their approval.

Fire marshall on the job

In other news, the council heard from the new fire marshall, Walter ìMacî Macomber. Macomber explained is role to the council, and noted that it has been a number of years since Caledonia has had a fire marshall.

In his capacity, Macomber will inspect businesses and make recommendations for improved fire safety. He will also be responsible for issuing permits for businesses and activities which require them, and will assist in fire investigations.

Cable rates to increase

City residents with cable television will have higher bills to pay beginning in April.

Mediacom, the cityís cable franchise, submitted a list of new rates to the city.

Some of the new rates are: $13.50 for broadcast basic; $40.95 for family cable and $11.95 for HBO. Other premium movie channels are $9.95 per month.

Project playground shelter planned

In other news, the city heard from Miles Miller, who told of plans to build a 26 x 70 shelter at the playground at Veteranís Memorial Park. The shelter will be built northeast of the playground itself. He noted that the city has not yet disbursed the $20,000 it pledged over the last two years, and asked that the council authorize that payment. City clerk Nelson said he would check into his record to make sure the money hadnít already been given, and transfer the funds.

It is hoped that the shelter will be completed by June 1.

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