Forwarded with permission on behalf of Wallace Swan, Board of Estimate and Taxation, in response to David Brauer's post asking for more information about last week's 8 percent levy limit vote that allocated $500,000 more to the library and park boards.
I have read your letter asking about the decision-making process regarding the setting of the city levy. First, I must note that I am responding solely on behalf of myself and no other Board of Estimate and Taxation member. Second, I must note that I have seen a brief reference in the "Minneapolis Star and Tribune" (and a somewhat longer reference in "startribune.com" ) to the funding for Libraries and Parks presumably being taken from the city pension fund. The pension fund reference is singularly inaccurate. The real facts are as follows: The Mayor's proposed levy scenario called for the yearly payment to be $4,451,158 to be levied for the Minneapolis Employee Retirement Fund for pay 2003, (even though this figure was actually the one submitted by MERF for pay 2002). However, the proposal adopted by the Minneapolis Board of Estimate and Taxation used the accurate figure that was actually requested for pay 2003 by letter from the Minneapolis Employee Retirement Fund, which was $3,990,564. We have confirmed the accuracy of the figure not only by re-reading the letter received by our Board, but also by direct conversation with the Director of the Minneapolis Employees Retirement fund. The $460,436 difference between the $4,451,158 amount and the $3,990,564 amount (plus $77,157 from the bond redemption fund) was used to provide the Library and Park Boards with the same dollar amount for operating funds in 2003 as they received in 2002 (from the combination of property taxes and Local Government Aids). The purpose of this was to ensure that services to adults and children throughout the city do not suffer even more significant cutbacks than they will already receive with the 0% increase that our levy allows. The amount that both these Boards will receive is stringent because they must absorb inflationary changes without any compensating new revenue in 2003. All of us, including the Libraries and Parks, must live on the more limited funds that are available. The Board of Estimate and Taxation is supposed to balance not only at the interests of the City of Minneapolis, the Library Board and the Park Board--but all of the people of the city of Minneapolis. As I mentioned during the course of the meeting, our Board indeed did comply with the far-sighted request of the Mayor to no longer have more than an 8% property tax increase---so that we can retain the ability to keep low and middle income people in their homes. You may remember that several years ago, I warned the city about the need to have a plan to reduce our debt--and this plan is one of the consequences of the need to address those problems. But at the same time, because of the shift of the money mentioned above, we were able to ensure that the limits upon the Library Board and Park Boards operating budgets lessen the negative impact upon the children and adults of the city. In essence, we were able to protect the interests of the taxpayers while at the time ensuring that our libraries and parks are protected as much as fiscally possible. Dr. Wallace Swan Member, Minneapolis Board of Estimate and Taxation - forwarded by David Brauer, list manager _______________________________________ Minneapolis Issues Forum - A Civil City Civic Discussion - Mn E-Democracy Post messages to: [EMAIL PROTECTED] Subscribe, Unsubscribe, Digest option, and more: http://e-democracy.org/mpls
