Last week, a Star Tribune editorial (Nov. 20) urged readers to "speak up" about property taxes, so I am doing just that. I am speaking up to say that the Star Tribune and the unnamed legislators referenced in the editorial are on the wrong track in how to think about property taxes and local government aid (LGA) and about how truly destructive the last 10 years of state budget policy have been for Minnesota communities, especially communities like mine in Greater Minnesota.
The money that Gov. Mark Dayton and the Legislature brought to cities during the 2013 session did exactly what it was designed to do. It allowed cities to hold the line on property taxes (or in some cases reduce them) and restore critical services that had fallen victim to years of drastic cutbacks.
A look into the past will give us a little perspective on the 2 percent preliminary levy increase:
• Even if we assume that cities don't drop their preliminary levies at all before setting their final 2014 levies, the statewide average property tax increase of 2.1 percent would be the third-lowest increase in the past 25 years.
• Even more, 2.1 percent is less than half of the annual average increase (5.3 percent) that cities experienced over the past 10 years.
What does this tell us? That even if levy reduction were the only goal, state policy is working. However, this is where a fixation on whether the final levy is a net 1 percent decrease or a net 1 percent increase is misplaced.
Any city leader can rattle off a lengthy list of infrastructure projects delayed, positions eliminated or forced to remain vacant, purchases deferred, wages frozen, and services reduced in the last decade. The 2013 session provided cities a chance to restore and catch up on some of those needs, if only a little bit:
• In Glencoe, we are able to replace two 15-year-old trucks in our street department while reducing our levy by 1.2 percent.