There was an excellent analysis in the Strib on Sunday comparing Minneapolis
to St. Paul.

http://www.startribune.com/stories/562/4134000.html

Editorial writer/reporter Steve Berg compared what the owner of a $200,000
house in each city pays in city taxes. Bottom line (I could not find the
detailed chart online, unfortunately): the Minneapolitan pays more - about
$400 more (approx. $1700 a year versus $1300, if memory serves, about a 30
percent difference; that includes the private garbage fees a St. Paulite
pays.)

I would add that the true gap might be higher, since I believe $200,000 will
buy you more home in St. Paul than Minneapolis.

Notwithstanding all the things I love about Minneapolis - and I am a
Minneapolitan by choice - the story raises good questions about our city
government. Berg is quite generous to Minneapolis despite its taxation
shortcomings, noting that the state and fiscal disparities subsidize St.
Paul, much moreso than Minneapolis.

Still, I doubt that makes up $500 difference. Now, I am the last person to
complain about taxes - I once teasingly suggested I'd run on the
double-your-city-taxes platform, since taxes are not always bad, and public
funds buy many things that are good.

However, it is worth discussing if Minneapolis is getting 30 percent better
government than St. Paul. 

The Minneapolis model has always been spend more to get more; it's one
reason we have a much more vital downtown than our sibling city. However,
Berg notes that state commercial property tax changes have hit Minneapolis
particularly hard. Downtown once paid 42 percent of our tax load, now it's
down to 33. The old argument used to be do what's good for Downtown because
they pay for the city. That's less true thanks to the state, and another
reason our taxes are 30 percent higher. Was this a failed policy, or are
there other monetary or non-monetary benefits we're overlooking?

Berg mentions that a big factor behind the tax difference is that
Minneapolis is paying off debt taken on in the '90s and before. One thing he
didn't mention, and I'm curious about, is how the two cities' overall credit
cards compare; I have been told over the years that one reason Norm Coleman
was able to limit tax increases is that he charged up the city's credit
card. If true, did Minneapolis leaders outborrow even Norm? Or is St. Paul's
day of debt reckoning approaching, closing the gap?

There's more fodder for all. Again, it's a fascinating read and even if you
disagree with some of Berg's points, it shines an interesting light on our
fair city's fiscal philosophy.

David Brauer
Kingfield



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