Two City Cop Positions on the Line

Two years ago, thanks to a federal grant, Burnsville was able to retain two police officers whose positions were slated to be cut because of strains on the city’s budget.

The $157,000 grant ends this year, and the city is now faced with the decision of what to do with the positions costing a total of about $200,000, including wages and benefits.

“Find a way to keep them,” was the response from city council members during Tuesday’s Burnsville City Council work session.

Council members got started on the months-long 2012 budget process that will culminate on Dec. 6 when they will adopt the 2012 tax levy and budget.

Overall the city has a “strong financial condition,” said Deputy City Manager Tammy Omdal pointing to its AAA bond rating, low debt load and stable fund balance. Besides the uncertainty of any continued aid from the state, the cities declining property market values could present a budgeting challenge — including the future of the two law enforcement positions.

Omdal projects that city property taxes would need to increase by about 2.7 percent or approximately $750,000 to fund city services in 2012 at the 2011 levels.

If that percent was to be approved, a residential property valued at about $202,000 would pay about $13 more annually, and a commercial/industrial property valued at approximately $1 million would pay about $160 a year.

“This is the first pass-through” City Manager Craig Ebeling said. But it is important now for the council to give staff direction — do they want to hold the levy in check, and if so where reductions would be made, he said.

The city’s 2011 $33 million General Fund revenue stream (money used for day-to-day operations) is supported 70 percent by property taxes, the rest comes from fees and other sources. “Without an annual increase in the tax levy, these services will need to continue to be reduced or restructured,” city staff wrote in an analysis prepared for the council.

However, City Council Member Dan Kealey said “no” to any spending increase beyond what can be supported by revenue from new construction.

Omdal’s presentation showed existing property would contribute $527,800 or 1.9 percent in revenue and that new construction will add about $210,000 or 0.8 percent in new revenue for 2012.

Kealey said that many residents are feeling financial pressures. “I don’t want to pass a tax increase,” he said.

Several council members, including Mayor Elizabeth Kautz, are concerned that holding the levy to that level may put road, equipment and park maintenance in jeopardy. “I don’t want to fall behind. These are assets for the city. If we don’t maintain our assets, we may be putting citizens at risk,” Kautz said.

Several reduction ideas put forward by staff include:

• Eliminate the two police officer positions;

• Postpone the $50,000 contribution to the fund used to help fight the spread of Emerald Ash Borer;

• Postpone the $50,000 allocation to the Infrastructure Trust Fund and also an allocation that would go to resort funding to the Parks Capitol fund; or

• Use $100,000 of the fund balance to go for long-term debt reduction.

Council member Dan Gustafson suggested that staff focus between an increase of .8 percent and 2.7 percent. “Then we can figure out where the pain threshold is.”