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Budget challenge looms BRAINERD CITY COUNCIL Staff Writer Brainerd is taking a different approach to its 2010 budget.
The city council started its budget process Wednesday with a workshop at city hall. There, council members offered what they'd like to see done in preparing the budget instead of having staff preparing a proposed budget to be reviewed and changed later.
The city council, already hampered by lower than expected revenues, will have a more difficult task ahead of them after Gov. Tim Pawlenty recently cut $269,942 in local government aid for 2009 and $622,858 in 2010.
"This year is going to be a difficult year for budgeting," City Administrator Dan Vogt said. "In the type of budget times we're in I think we need more direction from elected officials as far as coming in with a budget you'd like to see."
Vogt said there are several options for the city to cut expenses the council could discuss at a later date. When it comes to employees, he said he would rather have the council discuss furloughs or early retirements rather than eliminating positions.
Vogt also said the Legislature passed a law allowing cities to levy taxes in the amount of the local government aid cut.
For council member Mary Koep, the process should start with a discussion on revenues, which she said are often overestimated. Next would be looking at mandates which the city funds.
"I don't see how we can talk about an accurate budget without knowing what available revenues there are," Koep said.
The council agreed and set another workshop at 6 p.m. on July 27 to discuss revenues.
Concerning staff, Koep said in addition to furloughs or early retirement options, the city should look at every position to determine it was necessary.
Council member Bob Olson said he was not in favor of covering the cuts to local government aid by using the general fund reserves. He, along with council members Koep, Kevin Goedker and Bonnie Cumberland, also didn't want to levy a tax to make up the deficit left by the cut.
Though Vogt said the council had never used the fund balance to balance the budget, the council unanimously passed a motion that the city will not reduce its fund balance as part of the budget process.
Olson said there were expenditures that could be cut from the budget. He also said he was in favor of reducing hours and giving early retirements instead of laying people off.
Cumberland agreed with addressing revenue, looking for expenditures to cut and looking at mandates. She also said the city could look at fees for licenses, permits and fines to generate more income.
"I don't want to sacrifice services but I do want to keep employees and give the best service possible," Cumberland said.
Council member Lucy Nesheim said the city had already "cut to the bone" regarding public safety and didn't want to see it cut further. Goedker said the budget should work within revenues rather that raising the levy to cover it. He also said he and Koep would be working with Vogt to prepare the budget, which Olson pointed out was mandated by the city charter.
Council member Kelly Bevans said he was not entirely against discussing a tax levy to cover the cut local government aid because the council, especially if it meant reducing services.
Bevans reminded the council that it had approved adding $1 million in taxes to Brainerd residents for road repairs, despite residents telling the council they didn't want the improvement.
"I certainly would not like the idea of using some special levies, but if services are cut I would have some concern if we didn't take advantage of that," said Bevans, who voted against several street projects this year because they were not requested by affected residents.
"So if we're going to start cutting firefighters, policemen and other essential services and do road projects people didn't want to pay for, I'll vote against it every time."
In addition to looking at reduced hours or early retirements, council member Anne Nelson Fisher said the city should expend the health savings account option for employees, which has saved the city money.
Fisher also said residents could help the city by donating their time. She said volunteering to keep up city parks is an example.
"My overall goal would be to preserve as many city services as possible while we have to look at new ways of doing city business," Fisher said.
MATT ERICKSON may be reached at matt.erickson@brainerddispatch.com or 855-5857.
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