Posted: 6/4/03

Wyoming studies budget adjustment

Alice Pickering
Wyoming Area Reporter

As a result of recent decisions in the Minnesota legislature, the city of Wyoming will lose $105,903 in local government aide in 2003.

City Administrator Dennis Coryell brought this news to the city council Monday, along with the message that the legislature is not removing market value homestead credit.

Coryell also told council the formula for determining levy limits for 2004 has changed. This means the city may levy back 60 percent of the lost LGA, or just over $63,500 for 2004.

Coryell said the city is going to keep the 2003 taxes relatively level. The bigger ìproblem is how to get capital funds back up to appropriate levels,î he said.

Any borrowing from capital funds affects the cityís ability to make scheduled purchases or replacement of heavy equipment. Police squad cars and maintenance equipment fall into this category.

Borrowing also impacts the cityís building program. A third city water tower, for which the city has been planning and budgeting, could be threatened.

These items are included in budget planning, saving ahead for future spending that is known will come, and therefore included in the levy. If the city dips too deeply into these reserves now, for city operating expenses, money collected for these purchases will not be available when it is needed, he said.

City reserves allowed the city to borrow from itself, at lower interest rate, to finance the drilling of city Well No. 3. This loan has been repaid to reserves.

More budget news

In her report as budget liaison, Council Member Lynn Koalska noted that in seeking places where reductions could be made this year in the cityís budget has resulted in $95,000 in cuts.

The city must find another $11,000, mostly by paring, in small increments, from other places in the budget, she said.

Since the city is also in the middle of contract negotiations, this could mean the $10,000 in cost-of-living-adjustments might have to be added back, and the city might yet have to make reductions of $21,000.

In all this discussion the issue of city fuel purchases was raised once more.

Whereas the previous city policy has been to spread business around among dealers, in an effort to find dollars, the thinking has been modified to encourage shopping for the best price possible for quality gasoline.

Koalska then made a motion for all city departments to shop for the best price on gasoline. Council Member Sandy Standridge seconded the motion.

During the discussion period, Council Member Ted Phillips brought figures to council about the cost savings to the city of purchases from Wyoming Citgo, including reduced cost of car washes, assistance in the paperwork to reclaim the federal excise tax for the city, and other donations.

Standridge asked why the figures were available for the first time in four years.

At the last meeting, Koalska told council that all the big ticket items that can be cut from the budget have been cut. There are smaller items in the $500 to $1,500 range that still can be reduced, she said, adding that any and all savings are important.

She asked that problems with the way cars run on the less expensive gas be documented, not merely be anecdotal records.

Council asked for time to review the Phillips presentation and seek additional information before making a decision.

Mayor Vern Haag said the big items have been cut.

At Haagís request, Koalska withdrew her motion and Standridge withdrew her second. A decision about the matter was tabled until the next council meeting.

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