While I was at yesterday's meeting I do not recall
mention specifically of the Internal Services Fund. I
left at 10:30 though when it seemed apparent to me
that the discussion was mostly about the survival of
NRP rather than the survival of the CITY.

As we know the city used to have a AAa rating from
three bond houses until the spring or summer of 2001
when one of the bond houses downgraded our triple A
rating.

The size of the city's Internal Services Fund was part
of the rationale for the lowering of the rate.

In the proposed five year workout, payments to this
fund will INCREASE by $17 million.

Currently, Fitch's has Minneapolis on its 'watch' list
and this measure of increase to pay down this fund is
meant in large part to maintain AAa ratings from two
houses. 

It also signals to the state very clearly that we are
taking care of business. I'm sure without this measure
and the budget decreases the state would entirely drop
LGA support for Minneapolis.

Maintaining our good bond rating is especially
important for the fact that the city needs to sell
bonds to cover addtional pension costs the city is
bound to cover by state law.

Without selling bonds the city would need to come up
with another $33 million in revenue to offset these
unanticipated pension costs, the major one being the
number of city employees taking early retirement.

These measures will benefit ALL of us and it is how we
need to be thinking at this time.

If NRP suffers in the funding process that might be
the price we have to pay as a CITY.

Losing funding does not mean we need to throw out iits
principles

The other day, at the end of a long post I only
scanned, Wizard Marks whimsically wished that NRP had
never been about the money but about neighborhood,
grassroots organizing alone.

That is where we might find ourselves. It would be a
shame if lack of money spelled the demise of NRP.

Strong neighborhood organizations help maintain strong
neighborhoods that will attract private investment.

We are already on that path. In this weeks SW Journal
there were reports of four new projects proposed for
three neighborhoods. These are infill developments.

I am heartened by the measures being taken by the
Mayor and City Council. I appreciate the unvarnished
truth and their relative gentleness in doling out the
bitter medicine.

Tim Connolly
Downtown West 

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