Fridley voters have defeated, by a 3 to 2 margin, a proposed charter change that would have made it easier to raise taxes or broad-based fees.
The measure failed by a vote of 1,416 to 936, said City Clerk Deb Skogen. She said only 15 percent of registered voters turned out Tuesday for the referendum.
City Council members said the charter change was needed so that they can act more quickly to deal with state aid cuts and dwindling reserves, which at current spending rates would disappear by 2012.
"I am obviously disappointed," said Mayor Scott Lund. He said the council would have to meet to discuss making more budget reductions "above the significant cuts we made this week in next year's budget."
It was the fourth time in five referendums since 2000 that Fridley voters have turned down a city charter change to loosen restrictions on raising revenue. The only proposal to succeed was in 2007, when utility fee limits were removed.
Charter Commission member Pam Reynolds led the petition drive that forced the city to hold Tuesday's election on this change.
Had the proposal passed, it would have allowed the city to hold special elections to raise fees or taxes by more than the charter-imposed limit, which is the rate of inflation, up to 5 percent.
Currently, such exceptions to that cap can be approved only in a general election. In addition, the proposal would have amended the margin needed for approval -- from 51 percent of all residents voting in an election to a simple majority of those voting on the ballot question alone.