Minneapolis Mayor R.T. Rybak today delivered his third annual budget
address and presented his 2005 City budget to the City Council. 
 
"My two biggest priorities are to continue to restore the City's
financial health while avoiding layoffs and minimizing force reductions
in the Police Department, and I'm pleased that this budget accomplishes
both objectives," Mayor Rybak said. 
 
The Mayor's budget maintains the policies established in the five-year
financial direction, a plan to pay off inherited debt, and deal with
large funding cuts from the state. Elements of the five-year plan
include paying off pension debt and internal service fund debt, capping
levy increases, capping wage increases at two precent and holding the
line on fee increases.
 
The only major deviation from the five-year financial direction is
increased funding for the Police Department.
 
"I've spent much of the summer finding ways to prevent layoffs in the
Police Department without affecting the financial health of the City or
cutting funding even deeper for other departments. Federal and state
government has already taken away funding for 120 cops since 2001. By
avoiding Police layoffs and continuing to work more efficiently, we will
be able to maintain our high-level of 911 response and continue to
improve on community policing and prevention," Mayor Rybak said.
 
Rybak's budget avoids Public Safety layoffs by employing a combination
of budget savings and new revenue and a focused retirement incentive to
encourage officers eligible to retire to do so.
 
This budget stays within the City's adopted tax policy that caps the
City's share of property taxes increases at eight percent. This
translates to about a two percent increase in the City's share of
property tax for the average homeowner. Three-quarters of this increase
goes just to pay off past debt, while 25 percent pays for the increased
cost of maintaining services.  
 
Additional key initiatives in the Mayor's proposed budget include:
 
*        Making it easier to do business in the City. Several new
initiatives announced included Minneapolis One Call, an innovative 311
constituent response system and Minneapolis One Stop, which will soon
allow citizens to apply for construction permits online.
*        Doing basic things right. Continue to provide high levels of
service on basic city duties like snowplowing and street sweeping and
continuing the graffiti removal pilot project.
*        Aggressively fund bike trails. The budget accelerates the
construction of bike trails, including completing six new trails in
underserved North, Northeast and Southest Minneapolis.
*        Move forward planning for a Midtown Streetcar. The region's
lack of attainment with federal air quality standards and skyrocketing
asthma rates demand the City does all it can to promote transit
alternatives.
*        Forming new parnerships with City kids. The Mayor proposes
continuing critical funding for early childhood programs and developing
a new partnership with the Minneapolis Public Schools to train City
schoolchildren for careers in public service.
*        Strategic capital investments saving operating funds long-term.
The City is replacing street and traffic lights with LED lamps, which
will save on both maintenance and replacement costs.
*        Funding a Problem Properties Task Force. This
cross-departmental task force is targeting the City's most troublesome
problem properties, which will allow the City to significantly reduce
time between inspections of licensed properties.
 
The 2005 City budget submitted by Mayor Rybak totals $1.24 billion.
Twenty-eight percent of that total ($330 million) is discretionary
revenue, supported by the property tax and state-funded Local Government
Aid. This is the fifth budget the Mayor has delivered in three years in
office. The powerpoint slide show the Mayor presented this afternoon is
available at
www.ci.minneapolis.mn.us/mayor/speeches/budget-address-2005.asp#TopOfPag
e. A complete copy of the Mayor's proposed 2004 budget will be available
next week on the City's website at www.ci.minneapolis.mn.us
<http://www.ci.minneapolis.mn.us/> .
 
Laura Sether
Office of Mayor Rybak
Standish-Ericsson
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