The Minneapolis City Council tonight passed Mayor Rybak's proposed 2004 City budget on 
an 11-2 vote.

"This budget represents a significant investment in affordable housing and maintains 
our core City services. At the same time, we're addressing long-term debt, following 
through on our five-year budget plan, and we've absorbed significant permanent cuts 
from the state," Mayor Rybak said.  Eighty-three percent of the new property tax 
revenue is to pay off long-term debt.

Rybak continued, "I'm pleased that all of my major initiatives passed, and the changes 
made by the Council only improved the budget."

The 2004 City Budget accomplishes the following:

*       Prioritizes public safety. This budget made no cuts to the Police or Fire 
Department. Transferring some inspections work to the fire department, innovative 
management and long-term planning mean the City can do more with less, and citizens in 
crime-impacted neighborhoods will see more firefighters and cops on the street. This 
budget also allowed the City to hire back the laid-off firefighters and a diverse 
class of Police Community Service Officers (CSOs) earlier this year. In addition, the 
City will fully fund an upgrade for the criminal case management system at a cost of 
$2.8 million, which will help address the problem of repeat offenders.

*       Minimal cuts in other departments. While deep cuts made in 2003 must be 
maintained, deeper cuts are avoided for other city services in 2004. By making tough 
choices as soon as LGA cuts were announced earlier this year, the City avoided deeper 
cuts for 2004.

*       Establishes stable and ongoing funding for affordable housing. This budget 
invests almost $10 million in the Affordable Housing Trust Fund for rental housing and 
significant additional funds to assist families with home-ownership.

*       Stabilizes community development.  This budget establishes a smaller, but 
stable funding stream for housing, jobs and economic development activities, including 
the Neighborhood Revitalization Program (NRP).  Activities will be aligned with city 
priorities and targeted to those most affected by state cuts.

*       Fiscally responsible use of the Legacy Fund.  The budget uses a portion of the 
proceeds from the sale of the Hilton Hotel to pay down inherited pension fund debt, 
which eliminates $1.5 million in annual debt payments from the City's General Fund.

The budget also increases funding for many of the small things that make the City of 
Minneapolis liveable. This includes a new skate park for kids, additional funding for 
bike trails and amenities for skiing at Wirth Park. The City will also triple the 
current budget for tree planting, with the goal of planting 5000 trees in 2004.

Mayor Rybak singled out Ways and Means Chair Barbara Johnson, Council President Paul 
Ostrow and Council Member Barret Lane for their many hours developing the five-year 
financial plan that made it possible to limit further service cuts. The budget is 
balanced and consistent with the City's adopted tax policy. This is the fourth budget 
Mayor Rybak has crafted and the City Council has passed in nearly two years.
Laura Sether, Office of Mayor Rybak
Standish-Ericsson


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