Newspaper Clipping - Newspaper Clipping Scan - Tax Bill veto complicates budge planning for Eagan - 6/21/1989
Tax bill veto complicates
budget planning for city
,
By Karen Harder
Gov. Rudy Perpich's veto of the omnibus tax bill has left city
budget planners in the dark.
"We're all in a quan Mary," said Eagan City Administrator ,
Tom liedges,
in a recent speech at a League of Minnesota Cities Conference, ,
reforming the property t sysiexi,Hedges said.
But what city officials can expNct in terms of levy limits and
local govermnent aid remains up in the air while ""he governor
and legislators ponder alternatives to the bill passed by the I
Legislature this sprint;.
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Governor's veto leaves budget questions
From previous page would have been allowed to in- scenario for Eagan would be a
That doesn't help city staff crease the property tax levy 51/2 measure that would hold the city
percent to 6 percent over the $5.7 to 1989 spending levels. With the
members charged with coming million levy for 1989, Hedges growth in the community and
up with budgets for city services estimated.
ranging from police protection The measure would have pro- crthe eates, Hedges sa d cssuuch~a
to park programs. vided a 2 percent increase in limit "would cause some serious
Hedges had planned to review local government aid, which problems" in the delivery of
departmental budget proposals made up about 10 percent of the services.
during June and July and pre- $10.5 million city budget for 1989.
If the new tax h;;; malrao
sent a hudopt r„ rha o;4,, r
uu„ t. Allow now it could be revenue available to the city,
by the end of July. w anything more restrictive," Hedges said he would like to see
He said he and his staff are Hedges said of the tax reform the city reduce its reliance on
continuing to work on the 1990 legislation legislators will con- development-related sources
budget using levy limits and aid sider during a special session in such as buildin
allocations spelled out in the September, g permit fees,
vetoed bill as a de, which are likely to diminish as
Hedges said the worst-case the pace of development slows.
Under that measure, Eagan
,.Ll.