Rybak proposes higher property taxes, lower spending for 2010

Minneapolis Mayor R.T. Rybak proposed his 2010 budget Thursday, in the middle of what he called the "greatest recession since the Great Depression," and with state government in a "financial meltdown."

"These are no ordinary times," they mayor said.  Part of the remedy Rybak proposed is a 6.6 percent property-tax increase.

The increase, if it's approved by city council, will mean property taxes in the city will have gone up 65 percent since 2004. 

The mayor's office said the hikes are a direct result of the state shifting its budget problems to local governments.

"I believe the unallotments in the governor's budget are inequitable, but they are what they are," Rybak said. 

When Gov. Pawlenty used his unallotment authority to balance the state budget earlier this year, he cut more than $40 million in funding Minneapolis was supposed to receive in 2009 and 2010.

In June, Pawlenty chastised Rybak for saying cuts to Minneapolis and other local governments went too deep.

"Whether it's Mayor Rybak, or anyone else, who would make those claims, they need to get their head out of the clouds." Pawlenty said.

On Thursday, the mayor fired back.

"Our spending has gone up one percent, while his has gone up 12 percent," Rybak said, comparing the Minneapolis budget since 2003 to the state budget.

"I don't need a lecture from Tim Pawlenty about how to manage the budget."

Rybak said his 2010 budget includes $100 million in cuts spread across all city departments.  Many of the cuts amount to small savings, such as using efficient traffic lights to shrink electricity bills and taking 15 police cars out of the fleet.

Rybak also said the city would have to eliminate 225 jobs, mostly through attrition and hiring freezes.

"When you look at some of the worst-case scenarios that we were looking at 2-3 months ago, I'm very happy with it," Police Chief Tim Dolan said.

Dolan's department, along with fire and public works - the three largest departments in the city - will see smaller percentage cuts than other departments.

Rybak said public safety was his top priority in Minneapolis, where 2009 crime rates have dropped to historic lows.

The mayor also said his budget will increase money for job-training and placement programs.

"This city is doing great things, and we will not stop now," he said.

The drop in state aid isn't the only hurdle for the city.  Rybak cited a complicated system of collecting property tax on downtown buildings, rising pension costs, and exploding health-care costs as contributing to the tough spot in which Minneapolis finds itself.

His budget proposal now goes to city council, which will adopt the official budget in December.

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