04-276Council File # � ��7�p
RESOLUTION
Green Sheet # �1�q I(�
OF SAINT PAUL, MINNESOTA
Presented
Referred To
Committee Date
i A Resolution Establishing 2005 Budget and 2004 Legislative Policy Priorities For the City
2 of Saint Paul
3 WIIEREAS, the City of Saint Paul faces a serious budget shortfall of appro�mately $16.7 million in
4 2005 for the combination of the General Fund, the Debt Service Fund, and the Library Agency; and
WHEREAS, it is not reasonable or practical to address the entire 2005 budget shortfall by increasing
the city's property tax levy or through new or increased user fees; and
WHEREAS, the City's budget shortfall is due, in part, to the $33.6 million cut in Local Government
Aid (LGA) payments to the City of Saint Paul by the State of Minnesota in 2003 and 2004 and an
additional expected reduction of $3.6 million in 2005; and
10 WI IEREAS, the City of Saint Paul has not increased its property tax levy of $63.8 million for the last
11 eleven years; and
12 WHEREAS, the City of Saint Paul has recently approved painful and deep budget cuts to the 2003 and
13 2004 City Budgets that have resulted in reduced service levels, and a loss of appro�mately 193 full
14 time positions including the lay off of 30 employees in 2003; and
15 WI3EREAS, the City of Saint Paul, Ramsey County and the Saint Paul School District are experiencing
16 an ever increasing demand for human services and are expecting an increase in late 2004 and 2005 of
17 new immigrants who will further stretch and strain the budgets and resources of all three units of local
18 government, and the State of Minnesota; and
19 WIIEREAS, the Mayor has proposed a 3% selective sales tax increase for all restaurants in the City of
20 Saint Paul that would produce approximately $14 million per year for 30 years for a total of $420
21 million to pay the debt service for more than $240 million worth of taat exempt bonds to be used to
22 finance the conshuction of a new baseball stadium for the Minnesota Twins in downtown Saint Paul;
23 and,
24 WHEREAS, the residents and businesses of Saint Paul should not be asked to bear a disproportionate
25 financial burden for the construction of a regional amenity; Now, therefore, be it
d�-27�
RESOLVED, that the City Council does hereby establish the provision of efficient, high quality,
essential City services at a reasonable cost to taxpayers as the number one budget policy priority for the
Council's review and adoption of the 2005 City Budget; and, be it
4 FURTHER RESOLVED, that all proposals for increases in City properiy tax levies, sales taxes, or
5 other fees collected by the City shall be closely examined as to their appropriateness for the continued
6 provision of essential and basic municipal fiznctions including police, fue, parks, library services, and
7 public works all of which should be provided at a reasonable cost to ta�ayers; and, be it
8 FURTHER RESOLVED, that the Council does hereby establish the funding of basic City fire, police,
9 parks, public works, and library services as the number one policy priority of the City of Saint Paul for
10 the 2004 Minnesota Legislative Session; and be it
i l FINALLY RESOLVED, that current city priorities preclude further city council consideration of the
12 mayor's stadium fmancing plan.
Requested by Department o£
�
Form Approved by City Attorney
�
Adoption Certified by Council Secretary Approved by Mayor for Submission to Council
By: ��iii�� /ii�ii/5�7 i BY�
-§pptovecrbq-A4e�: Date ��.��� �Jpl�
�
_-� - ..;�►��!/ _ � � - !�1
Adopted by Council: Date /�I,R.(�LI! 3. ZW7
�����
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
DeparhnenNoffice/wuncil: Date Initiated:
co -��� �� ! Green Sheet NO: 3012916
Contact Person 8 Phone• �cartrnerrt Se�rt To Person InitiaUDate
Thune � 0 ouncil I I
Assign 1 ouncil I De arUnent Director
Must Be on Council Agenda by (Date): Number Z �, �}lv Cierk Ctiro C7erk
For
Routing 3
Order 4 �
� 5
Total # of Signature Pages _(Clip All Locations for SignaWre)
Action Requested:
Resolution establishing 2005 Budget and 2004 Legislative Policy Prioirities for the City of Saint Paul.
Recommendations: Approve (A) or Rejec[ (R): Personal Service Contracts Must Answer the Following 4uestions:
Planning Commission 1. Has this person/firtn ever worked under a contract for this department?
CIB Committee Yes No
Civil Service Commission 2. Has this persoNfirtn ever been a city employee?
Yes No
3. Does this perso�rm possess a skill not normally possessed by any
current city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
lnitiating Problem, Issues, Opportunity (Who, What, When, Where; Why):
AdvantageslfApproved:
I DisadvanWAeslfApproved:
Disadvantapes If Not Approved:
Total Amount of CosURevenue Budgeted:
Transaction:
Funding Source: Activity Number.
Fi nancial Information:
(Explain)
z
CITY OF SAINT PAUL
Randy C. Kelfy, Mayor
Mazch 9, 2004
Council President Daniel Bostrom
and Saint Paul City Councilmembers
City Hall, Suite 310
15 West Kellogg Boulevard
Saint Paul, MN 55102
Dear Council President Bostrom and Councilmembers:
390 Ciry Hal! Telephone: 651-266-8510
IS West Kel[agg Boulevard Facsimi(e: 651-266-8573
Saint Paul, MN 55102
�:>e ' �"' ' �e.: .�
� � � ���
Pursuant to Charter Sections 6.08 and 6.09, I am vetoing Council File 04-276 because I disagree
with part of the resolutaon.
The resolution mixes together two issues. As to the first issue - the priority the City places on the
funding of basic services such as police, fire, parks, libraries and public works - there is no
disagreement. In fact, I am proud that, throughout two years of very difficult budget cutting
decisions, we have not laid off a single firefighter or reduced a single patrol officer on the street,
nor have we closed or reduced the hours of a single library or recreation center. We have also
added three new parks.
Our common-sense budget priorities and strong fiscal management were recognized today when
Standard & Poors reaffirmed the City's AAA bond rating and Moody's upgraded our outlook
from "stable" to "positive." Standard and Poors noted the city's "deep and diverse local
economy," "consistently strong financial performance" and "development of private and public
partnerships" among reasons for their continued AAA rating. Their outlook foresees "the city's
continued economic stability and its continued progress in redeveloping the downtown St. Paul
area."
Moody's reported that their Aa2 rating "reflects the city's sizable and growing tax base anchored
by the state capital; a trend of sound financial management and strong reserve levels; and an
above auerage, but manageable debt burden." Their positive ouflook reflects an"expectation that
the city will be well-positioned should the current economic and financial uncertainties and
challenges reverse previous adverse trends."
Both agencies observed that the city had maintained a strong financial position despite deep cuts
in state aid payxnents enacted by the 2003 legislature. Moody's noted that "favorably, the city
has been proactive in addressing this revenue shortfall."
�
We do indeed have our priorities straight and I will continue to insist that the citizens have basic
city services at an affordable price.
Council Resolution 04-276 also purports to preclude fiirther public consideration of an issue of
major unportance to the public - an infrastructure inveshnent of hundreds of millions of dollars
that would produce thousands of jobs and millions of dollazs of economic activity each year. Yet
the Council passed the resolution without any public notice or input or an opportunity to debate
the crirical issues.
The resolution also is ill-timed and premature. Eazlier this legislative session, the Council
unanimously approved a resolution pemutting Saint Paul to make a ballpark proposal. At that
time, the sense of the Council was that Council action in favor of or in opposition to a particular
funding method was premature because the legislature had not yet decided on the threshold
questions of whether and where a stadium should be built. Still today, the legislature has not yet
debated or decided those questions. Further, the legislature has not yet decided whether a local
referendum will be required for any local tax.
I also do not agree with the CounciPs unannounced and precipitous attempt to change direction
on a matter of such public importance when one of its members was out of the country on official
business.
Should the legislature authorize a local taac in Saint Paul for a stadium, I will insist that there be a
meaningful period of robust public discussion. I will not permit the Council to shut out the
public from this decision-making process.
Sincerely,
�� �
Randy . Kelly
Mayor