Issues

With my background, having served four terms on the BET Board (two as its President), and having a mathematics degree from Minnesota, I have unique insight into financial issues with the city.  My primary concerns are about adequate review of budgets and taking the best approach to considering alternatives and methods to save city dollars.  This would directly affect the setting of maximum tax levy rates and municipal bonding approval.  Relating citizen input into these decisions, as well as making determinations on what makes sense operationally before burdening the taxpayers is critical.  My other public service experience including serving as Park Board President further illustrates use of citizen input into determinations.

  • The most important principles are review of budgets and plans, and determining what makes economic sense and how it will affect the citizens/taxpayers.  It is important to note that this must be weighed with the future viability in the city.  What should be considered is keeping city expenses down and reducing budgets.  One example is the Property Appraisal Department, which for St. Paul is handled by Ramsey County.  It is worth questioning why Minneapolis is not handled by Hennepin County.

  • There is also the need to review if there are other economic considerations that should be examined.  Back in 1998, Local Government Aid (LGA) from the State was $123,000,000.  Today, that is reduced by an amount of $42,000,000.  The city can try to get that back.  The City of Minneapolis contributes far more to the state’s general fund than it receives back in property tax and local government aid.  In other words, Minneapolis is a net contributor for the State of Minnesota.  We should advocate changing that.

  • There is a question proposed for whether Minneapolis does not have the right mix of taxes to fund its needs.  The proposals are that the city go to the legislature and get approval to assess a city income tax.  The board has no right to enact and also may not have the power to limit, as it holds the line on property taxes.  One problem is that it is intended for individuals with higher income, but this could cause higher income individuals to move away or just not move into the city.  The net effect could be that home values decrease, causing an outcome of a greater need to increase residential property taxes to make up for the loss of value. This is similar to what is happening with high office vacancies in downtown, which is the cause of the lower revenue. City income taxes are likely to cause these types of problems.

  • In addition, what is driving up property taxes is a reduction of downtown property values.  Downtown is the key to increasing values and thus increase real property tax receipts.  We need to avoid driving out offices and users to the suburbs.  The Board is a check on increasing taxes and should closely review city and park budgets.