Press Release: The Minneapolis City Council today passed Mayor R.T. Rybak's proposed Five-Year Financial Direction on a 8-4 vote.
"This is a historic decision -- a complete overhaul of the way we make budgeting decisions in City Hall. Instead of making decisions year by year, we've designed a long-term plan which is more responsible to taxpayers," Mayor Rybak said. The Five-Year Financial Direction outlines the spending limits that city departments must operate under for the next five years. Council Members voting for the resolution were Scott Benson, Sandy Colvin Roy, Lisa Goodman, Barb Johnson, Barret Lane, Paul Ostrow, Paul Zerby and Dean Zimmermann. Two weeks ago the City Council voted 11-1 to adopt a resolution which establishes a ceiling of 2 percent for annual wage increases for City employees. "We're sending a strong message to our constituents and to all City employees that we're addressing our financial challenges head-on," Council President Paul Ostrow said. Council Member Barret Lane earlier described the City's finances as facing "The Perfect Storm" -- a series of negative financial conditions including skyrocketing health care costs, large debt, unfunded pension liabilities, and 2001 state tax law changes that shifted property taxes from businesses to homeowners -- especially those with lower-valued homes -- and eliminated funding streams for community development. In addition to these problems, a referendum was approved in the fall of 2000 to build and expand libraries. This will result in $140 million in additional debt. "We're holding the line on spending increases while maintaining public safety and basic city services. The approach we're taking is also more respectful of city employees. By setting long-term budgets we can manage some cuts through natural attrition and by establishing a wage ceiling we can avoid some of the layoffs we might otherwise have to make. " Ways and Means Chair Barb Johnson said. "This plan is a substantial tool for moving the city forward and facing the realities of our financial future. It also establishes a strong baseline from which to evaluate and manage potential cuts in Local Government Aid, which may come from the state," Council Member Lane said. The Mayor and Council reformed the budget process this year by including the City Council earlier in the budget-crafting process, making decisions based on a 10-year financial projection, establishing budget principles, placing the City, Parks and Library on the same diet, capping taxes before making spending decisions, and presenting the budget months earlier than the previous administration. Laura Sether Office of Mayor Rybak Standish-Ericsson TEMPORARY REMINDER: 1. Send all posts in plain-text format. 2. Cut as much of the post you're responding to as possible. ________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Unsubscribe, Digest, and more: http://e-democracy.org/mpls
