Proposed tax increases get frank responses

Many of the residents testifying at public budget hearings on proposed property tax increases this month leave no doubt where they stand, as one man demonstrated in front of the St. Paul City Council last week.

"We can't afford this administration at this rate," said Tim Colestock, angry over the city's proposed 6.1 percent levy increase in 2010. "Your job is holding the mayor in check. You should quit talking about all these spending projects and say no."

Local governments across the east metro are fielding public comments in advance of the Dec. 15 deadline to set their final budgets. Many governments, such as St. Paul and Ramsey and Dakota counties, held their meetings last week. Others, such as Washington County and Woodbury, will do so this week. In a year of depressed finances -- with more pain to come as the state reckons with a bleak budget forecast -- local governments have tried to keep essential services intact without imposing big property tax increases.

As budget strategies vary from cities to counties to school districts, so does public reaction. Most local governments, such as St. Paul, have embarked on budget-cutting frenzies after Gov. Tim Pawlenty made deep cuts in state aid.

"St. Paul has almost 300,000 people and we had 11 people show up," City Council President Kathy Lantry said of last week's hearing. "Do I think there's a groundswell for people who feel angry enough to let us know? No. I think there's a realization by the public that government costs money."

The cost of local government emerged sharply in public view this year when Pawlenty's "unallotments" of state aid -- money that largely finances human services and many state-mandated programs in cities and counties -- resulted in a struggle to cut expenses while maintaining basic services.

Many elected officials think that's what taxpayers want as joblessness grows and personal savings shrink.

Woodbury, which is Washington County's largest city, has proposed an overall increase of 2.9 percent with no net increases on an average-valued house of $303,600. Dakota County commissioners have proposed 0 percent.

Ramsey County stands at 2.7 percent, which Commissioner Victoria Reinhardt said is the county's lowest property tax increase in 10 years.

The challenge facing city and county governments is how to fund "core services" such as police, fire and roads, and meet legal obligations for human services programs. For school districts, it's how to retain teachers and keep class sizes manageable.

At a recent Ramsey County hearing, most residents who spoke wanted some cuts reconsidered, said Reinhardt, who chairs the commission's budget committee.

"People are generally understanding the tough issues we're facing right now," she said. "Most people were very respectful and thanking us for the hard job that we have."

Figures from the Minnesota Department of Revenue show that over time, local governments collectively cut their levies between $20 million and $60 million statewide after December hearings. A year ago, for example, local governments statewide reduced their proposed $476 million property tax increase by $67 million after citizens were heard.

It's hard to measure the effects of citizen comment because local governments, by law, set maximum property tax increases in September even while intending to reduce them later in the fall.

"Sometimes the levy adopted in September, the preliminary, is kind of like the worst-case scenario," said Julie Lehr, a Woodbury city spokeswoman.

Woodbury City Council members will hold their public hearing Wednesday at 7:30 p.m. in Council Chambers at City Hall, 8301 Valley Creek Road. Washington County has set its hearing for 6 p.m. Tuesday in the board room of the county government center, 14949 62nd St. N., Stillwater.