Area communities deal with funding cuts

Comfrey will

lose $29,491

in 2004

By FRITZ BUSCH

Journal Staff Writer

BROWN COUNTY -- Rural communities are wrestling with budget cuts these days, particularly state cuts in the Local Government Aid (LGA) program.

The aid enables some communities to pay for basic services like fire and police protection. Local Government Aid was created 30 years ago to help tax-poor cities pay for basic needs.

Comfrey was among the smaller Minnesota cities hit hardest by LGA cuts intended to help balance ease the $4.5 billion state budget deficit. It got $156,089 in 2003 LGA. Under the House File 7 amendment, it would receive $126,598 in 2004, $118,794 in 2005, and $84,231 after that.

Mayor Gary Richter said the LGA cuts aren't as much as initially feared. If not for a special amendment passed for Comfrey, the cut would have been $10,000 more.

Part of the LGA funding formula considers the number of pre-1940 buildings in communities. Much of Comfrey was destroyed by the March 1998 tornado. The town was essentially rebuilt after the tornado.

Richter believes the LGA funding may be changed after the next election and new politicians move into office. He doesn't foresee cuts in services due to the LGA losses.

"I think we can weather this," Richter said. "We'll be looking at everything across the board. We may raise some fees, but I think it's manageable."

The cuts may be biting a bit deeper in Springfield. That city received $769,683 in LGA this year. It would receive an $110,067 less LGA in 2004.

Springfield City Manager Mac Tilberg said the city budget was already cut to the bone.

"We already had a $100,000 cut from our budget," Tilberg said. "We had a substantial budget increase due to debt service for street projects and a new street sweeper."

Springfield cut custodial and summer staff help to make ends meet.

"We have less people taking care of parks and facilities," Tilberg said. "We're pushing manpower to the limit. We trimmed pure meat. There was no fat left."

Under the HF 7 amendment, Springfield's LGA would rise $64,222 to $723,838 in 2005, and to $766,701 thereafter.

Tilberg noted that since Springfield has less than 2,500 inhabitants, it is not under levy lid restrictions and could raise taxes if the city council approved such a resolution.

Sleepy Eye will get a $147,471 LGA cut to $1,094,696 in 2004. In 2005, its LGA would climb to $1,166,350 and to $1,183,751 thereafter.

City Manager Mark Kober saw the cuts coming and held city staff meetings to create ways to cut $147,000 from the budget.

"It won't be a problem. We won't lose any services, just do some belt-tightening," Kober said. "The cuts aren't as bad as the worst-case scenario we were prepared for."

Levy limits would allow Sleepy Eye to reclaim about 60 percent of the 2004 LGA loss by raising taxes if the City Council so decides or absorb the loss.

"The Council has always tried to keep the tax levy as low as it can," Kober said. "We could do things like not removing snow as quickly as in the past. We could cut some hours and space out purchasing some new equipment. We'll try to be operationally astute. Investments are important. If we defer them too long, we have diminishing returns. We'll look at everything."

Hanska's LGA will drop from $108,611 that was certified in 2003 to $95,959 in 2003 and 2004, $90,650 in 2005 and $90,642 thereafter under HF 7. Hanska Mayor Ron Frederickson said Hanska hasn't proposed any cuts yet but all programs will be evaluated.

Other area communities, their 2003 LGA amounts and 2004 reductions: Cobden, $2,477, -- -$339; Lamberton, $291,024 -- -$23,057; Morgan, $343,487 -- -$34,686; Redwood Falls, $1,380,613 -- -$366,875; Sanborn, $110,635 -- -$7,017; Wabasso, $191,545 -- -$32,436; Madelia, $655,140 -- -$85,297; St. James, $1,277,565 -- -$148,646; Courtland, $48,112 -- -$13,585; Lafayette, $124,322 -- -$12,619; Nicollet, $145,441 -- -$6,177; St. Peter, $2,083,020 -- -$393,281; Arlington, $594,771 -- -$95,863; Gaylord, $688,027 -- -$103,381; Winthrop, $466,181 -- -$46,741.