City braces for steep cuts in state assistance

Published 4:40 pm Saturday, February 20, 2010

Just days after Minnesota Gov. Tim Pawlenty announced proposals to cut local government aid to cities to make up for a portion of the state deficit, the topic took center stage Thursday during the Albert Lea City Council’s preagenda workshop.

Though the city will not know its final LGA numbers until the end of the legislative session, councilors indicated it is not too early to start thinking about strategies to handle potential cuts.

Under Pawlenty’s proposal, Albert Lea faces an $850,000 additional reduction to LGA in 2010 on top of an unallotment of about $780,000.

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This comes after previous LGA unallotments of about $400,000 in 2008 and about $340,000 in 2009.

Albert Lea Mayor Mike Murtaugh said LGA makes up only about 3 percent of the state’s 2010-11 general fund budget, but it has accounted for 16 percent of the governor’s unallotments.

When the city found out about a potential reduction in 2009, it began implementing several budget-saving measures, including a hiring stall and other utilities-saving measures.

Many of those measures are still in place.

City Manager Lee Bjorndal said he will start discussing additional budget-saving strategies with Finance Director Rhonda Moen and with the other department heads.

Bjorndal said he thinks the budget priorities of the community are clear after the city hosted a series of public meetings last year and also formed a citizens task force to recommend areas in the budget to cut.

The council will also consider during its Monday meeting whether to approve a resolution requesting Pawlenty and the Legislature to refrain from further LGA unallotments to cities in the state.

Other cities that are part of the Coalition of Greater Minnesota Cities are considering similar resolutions.

During the Monday meeting, the council will also:

Have a public hearing to receive input regarding the construction of 777th Avenue, which will service the Interstate 35 and Interstate 90 Business Park.

The road is between the Love’s Truck Stop and the I-35/I-90 Business Park

The council approved a development agreement with Greater Jobs Inc. for the project in January.

The project would include grading, drainage, sanitary sewer, water, hydrants, curb and gutter, catch basins and concrete roadway construction.

The project is estimated to cost almost $1.9 million, with 50 percent being grant funds, 27 percent being city cost and 23 percent being assessed.

Grant funds totaling almost $1 million have been received for the project, including about $700,000 from the Department of Commerce Economic Development Agency and $250,000 from the Minnesota Department of Employment and Economic Development.

Vote whether to accept the feasibility report for the street reconstruction, sanitary sewer and watermain installation on Orchard and Wealthy streets.

The project includes the reconstruction of the gravel roadway of Orchard Street and the installation of sanitary sewer and watermain to four properties not currently served with city services.

Estimated cost is about $58,000 with 100 percent being assessed.

Vote whether to authorize the bids received for the salvage of excessive property at the former Mexico Lindo site on Main Street.

Two bids were received.

The first was for $51 for all cooling units and supporting components.

The second was for $100 for the stainless steel sink.

Have a public hearing to receive input regarding proposed assessments for miscellaneous unpaid utility bills.