Rush City Discusses Impact of LGA Cuts

Tuesday, June 23rd, 2009 at 5:12 am

A week ago, Minnesota Governor Tim Pawlenty announced his plan to balance the state’s remaining $2.7 billion deficit.  Part of the governor’s cuts include over $64-million to local government aide and market value homestead credit reimbursement for cities this year, and over $128-million in 2010.  Monday, the Rush City Council took a look at what that means for their city.

City Administrator Amy Mell.

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Rush City is losing over $35,000 this year and nearly $81,000 in 2010.  Mell says the city did cut $60,000 dollars from this year’s budget as a precautionary move.  She adds that Rush City, along with other cities with populations over 2,500, can declare a special levy in 2010 to replace part or all of the loses for the unallotments.  However, the special levy can only be held in 2010, and not beyond.  Council Member Mic Louzek says this does little to help the city.

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Mell says the city will begin workin on its budget over the next month.  The preliminary levy must be set by September 15th.

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