City tries to offset state cuts

BAXTER - Baxter has trimmed its 2009 budget in anticipation of a loss of funding from the state.

While Baxter doesn't receive local government aid, it does get market value homestead credit, a reimbursement to the city to make up for state relief on property taxes.

The Baxter City Council on Tuesday approved adjusting its 2009 budget by $132,900 and using about $61,000 from its contingency fund to cover the anticipated $194,500 reduction in the homestead credit.

The motion was passed unanimously with the understanding that more changes will be made once the actual figure is released by the state.

Some of the adjustments include eliminating a proposed assistant finance director who was to start work in September for a savings of $26,200, eliminating a $12,000 fund transfer for the future 800 megahertz radio project, reducing road striping by $2,000, reducing crack sealing by $6,000, reduce street repairs and maintenance budget by $10,000 and reducing workers' comp insurance premiums for several departments.

The budget adjustments also included reducing the amount of funding for the Lakes Media Collaborative by $12,700, delaying purchase of a skid-steer for a savings of $27,500 and eliminating $10,000 in the employee tuition assistance program.

"I appreciate the fact that you're forward looking in your anticipation of the worst case scenario," council member Jim Klein told Finance Director Jeremy Vacinek, who presented the budget adjustment recommendations.

In other action, the council:

Approved the 2009 capital improvement plan, moving all projects back one full year and starting the public hearing process in the fall for Clearwater and Lynndale area improvements.

Approved, by a 4-1 vote, establishing a fee of $75 plus the hourly rate for staff time to administer requests for comprehensive plan amendments, zoning appeals, lot line correction and extension for zoning/subdivision approvals. Klein voted against because he wasn't comfortable adding another fee on people while the economy was poor. Mayor Darrel Olson said the requests covered by the fee were ones that the average person would seek from the city. Council member Mark Cross said he would rather have a developer pay for their development than have taxpayers picking up the cost.

Approved a contract with Brainerd for the interconnection of sanitary sewage systems and use of the wastewater treatment facilities between the cities.

Authorized a $23,500 contract with the Brainerd Lakes Area Development Corp. for 2009.

Adjourned to an open house for new City Administrator Gordon Heitke at 4 p.m. on April 14.

MATT ERICKSON may be reached at matt.erickson@brainerddispatch.com or 855-5857.