The Daily News

Minn. Gov. Tim Pawlenty's recent solution to fix the state's budget crisis this year has left Breckenridge city officials scratching their heads.

For 2010, the governor's proposal withholds $313,713 from the city of Breckenridge, or 24 percent of its annual government funding.

Bev Wilson, city clerk treasurer, indicated the city council has tough decisions ahead. During its initial budget sessions months ago, the perspective was different - the city had only anticipated a $148,000 loss and a few city jobs were still open.

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"(In the past) I've heard council members say we need to cut fairly across the board," she said. "How are we going to do that?"

Finance committee members, who will meet March 10 to discuss the issue, will re-negotiate current union contracts, which expire this year. Changes to health insurance, working hours and wages may occur, she said.

"If we cut everybody back eight hours a month - 96 hours a year - we'd save around $40,000 just in wages," she said.

Another possibility involves street overlay funding, which is annually drawn from the general fund. This year, any street improvements may have to be assessed to benefitted property owners instead. Last year, the city spent $90,000 on street overlays.

Part time summer workers who assist in mowing and other duties may also fall to the side. Complicating matters further, the governor is proposing to cut another $60,000 in 2011.

"When you look at those cuts, it would be devastating, not only for Breckenridge but many cities throughout the state of Minnesota," said City Attorney Tim Fox.

Although Fox joined Mayor Cliff Barth in St. Paul on Feb. 17 to discuss flood issues with representatives, they also touched on the governor's proposal, which subtracts about 8 percent in government aid from cities statewide. For instance, Pelican Rapids, a city holding a slightly smaller population than Breckenridge, is losing $150,000 for the year.

Fox said some ideas floating around include sales tax increases on amenities like tattoos to generate suitable revenue.

"(But) as long as it has the word 'tax' connected to it, there's the feeling that the governor's going to veto it," he said. "(Barth and I) tried to do everything we could to convince them of the problems it created for the city."

Comments

Steve wrote on Mar 1, 2010 8:19 AM:

" About time government fat cats have to be efficient like people who work for a living. "




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BL wrote on Feb 26, 2010 11:50 AM:

" If you want to see how the council spends the budget, show up at the council meetings instead of writing in your comments. become part of the process.LGA was to help the smaller out state cities compete with the metro areas. Sales taxes sent to the state were to be used to help the smaller communities that didn't have large tax base like the larger cities. Breck runs a tight budget. Stop in some time and check it out. "




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tattoo tax non-believer wrote on Feb 25, 2010 9:28 AM:

" Maybe,its time they start running Breck more like a business.Sounds like bull****.Start assesing street overlays.I thought thats what our city taxes were for.As far as not hiring any summer workers,bad buisness paying someone 20 or more an hour to mow lawns when you can hire temp.workers for 7.75$.Maybe they can sell that new 4X4 vehicle to raise funds???? "




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Larry Bahr wrote on Feb 25, 2010 8:53 AM:

" Hooray for Govenor Pawlenty, its about time some one stood up and made the hard choices we need to make in this country to put the governments wild spending under control' its time we all have to tightenour belts to make ends meet with outb the governments so called help!! "




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