Thursday, December 22, 2005

Cities' money fears

Ok. I'm just a bit confused.

Why are the cities increasing propery taxes if their in good shape?

State Auditor Pat Anderson's office released its annual report of Minnesota cities. The data released yesterday is from 2004.

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“Citizens in cities with fund balances that are either too low or too high should press their local officials to explain why,” said Anderson. “A low fund balance could be the first symptom of fiscal trouble for the city. A high fund balance could mean the city is collecting more in taxes then it needs...

“The numbers show there is no indication that overall cities were forced to raise property taxes due to reductions in local government aid,” stated Anderson. “While the core cities raised taxes and cut expenditures to deal with the cuts, the rest of the cities seemed to have adjusted simply by slowing the growth of current expenditures."

Anderson went on the say, “It is very interesting to note that they are slowing the rate of growth in current expenditures while at the same time growing their fund balances. It appears that cities, when taken as a group, prefer to slow down spending instead of drawing down their reserves.” (Office of the State Auditor Press Release, Dec. 21, 2005)
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So there you have it.

1 Comments:

At 9:20 AM, Blogger Kevin from Minneapolis said...

I'm sure the DFL and our local government mobs will immediately denounce this as another attempt by the Pawlenty administration to "pass the buck" on property taxes and accuse the Auditor of not being independent.

Too bad they would be lying.

 

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