Replying to a post about the principles for the next round of the budget,
Barbara Nelson asked:

"One question, though:  what
does it mean that "unexpected revenue sources go through the same budget
process as other revenue"?

Here's what I intended when I said it:

Let's say a new business moves to Minneapolis, or one expands, and they
build a building. This creates a tax windfall for the city.

In the past, too often the response from the political community was to grab
the new taxes off this building and put it into a tax increment district so
we could build something else....instead of assuming this would go to the
general fund. (And the schools, etc. to boot.)

Considering how challenged we are with city finances, I don't think we can
automatically assume this "new money" is a windfall. Instead we have to ask
if that "new money" isn't better spent for our general purposes, ie. more
police, better snow plowing, etc.

It's like a person who has big credit card debts who gets a bonus.  That
person can spend the bonus on a new stereo, but it would better to first pay
off the debt.  The city has some monster debts so we shouldn't run off to
assume we can blow our bonus on "stereos" or shopping centers or anything
else without first asking whether it wouldn't be better in the general fund.

R.T.Rybak
East Harriet.


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