Yesterday morning Minneapolis, mayor, Albert, hastad announce a wide-ranging program residential and economic development designed to lower the residential property tax rate and expand the city's static tax base among other things. He warned the city council about overuse of tax increment financing pledge program to increase the number of owner-occupied housing units and reiterated his commitment to D politicize the police department. The occasion was the first state of the city address required under recent changes in the Minneapolis City Charter hofstede's agenda is a 55 page document detailing action. His administration will take during the next two years. Mayor Haas that is in rstudio this morning to answer questions about his plans. But first we'll broadcast is speech which was an abbreviated version of the message and be back for Studio discussion in 20 minutes.When I say today in my efforts on these proposals will affect the future of the city for the spirit of this message in the product of our combined efforts will set the direction for Minneapolis in future years. It will be the Benchmark to its future Mayors and consoles and formulating their own plans for the City of Minneapolis will use my message to you after the citizens of Minneapolis should not be heard as an inflexible set of goals or demands for the coming months to work on the debating to change and obviously, you know, the changes with time are always necessary. But we must also carry out these objectives for the benefit of our citizens and for the benefit of the entire State and region since Minneapolis is traditionally viewed as a focal point of progress in this area. What is the city Charter state-of-the-city method should be a presentation the plans and program for the economic and physical development of the city and I you all have in this is the plan and I am not going to rain during the next few days that you do take the time to go through it because our staff since many people are taking the time to present programs and I do want to thank him for both Republicans and Democrats and department heads and I think that you'll find out in my opinion, but it's well done. This message contains not only my thoughts as I indicated before but also the input of a number of a public officials and citizens. They said also Democrats decided we're kind enough to respond. Minneapolis is a great city with a future. We must have visions all Minneapolis five or ten years from now. What is our plan for the city? Minneapolis must be a place where people choose to live better yet where they ask to live. Our goal must be to make our city solvent and a minimum cost to its residents and we can do it. What is the state of our City of Minneapolis has been referred to in the past is not bad or holding its own that's not good enough today to state of the city. Today is good. Bonita Powell and it is we who must provide this hell and I'm here today. They asked that we join together in this effort. My following remarks should be considered in this life. Good government does not mean big government. And I believe that we found the federal scene can lose control by trying to streamline and consolidate functions of belonging City Hall and turn back to the private sector those functions of government is not performing that we had no business providing. Citizen participation is a must and I think we all realize that. Thousands of critical issues faced our city. I need immediate attention. I've chosen six major areas of concern public service and Human Resources planning a Citywide development policy Economic Development City financing and last OG Respect the Public Services. Let me comment first in our Police Department for the day-to-day responsibilities of protection of lies and property of several goals for that depart. For example, the dress professional Place Management training prostitution problem, Trust me. I owe you process and the Deep part I have met with the representatives a state police Administration began to establish the police management curriculum. We meet again next week in this matter and hope the developer program for management training for our place the city attorney's office Macomb County Attorney's Office and I am developing a plan to attack the prostitution problem in a city. This plan will be reviewed and implemented in the next two weeks. I found a Joint Task Force in Internal Affairs unit development process with review the IU cases to increase public trust. I shall ask his passport to continue to operate indefinitely expertise to make recommendations for me to the submission for the console and the commission of a new method of selecting. Our future chief of police appraisal process is unfair to the police department tomorrow to the citizens of the City of Minneapolis. It should be changed specifically as having our city is my intention to have to try to commission's consider a 4-year term for mayor and I believe this is long overdue. Next one of the challenges the greatest challenges is slow the spread of Dutch elm disease and reports Star City 1970. We lost 12 oz last summer 31000 another 30,000 people probably died this year going to meet this challenge to City Planning Department is currently taking the lead role in developing a plan in operation with the park for I consider saving down the reforestation a top priority and she'll work with citizens and City officials to make every effort to do. So the Minneapolis Public Library System existed for nearly 100 years. Library system is truly a metropolitan benefit. Therefore. There's a need for legislative action to address this regional service that Minneapolis taxpayers provide because recently available funds for Library services. You must make government more understandable for our citizens and City Hall and we fighting City Hall you must coordinate number of agencies with which the public with steel and simplify the structure that provide services for the public in the upcoming weeks. It is my intention to reactivate the Native American advisory committee the handicapped advisory committee and two for Tina advisory committee. The office senior services will be receiving additional support this worthwhile effort the Civil Rights Department in commissioner charged with the responsibility of ensuring that no City contractors discriminate in their Employment Practices that they afford reasonable opportunity and female business enterprises. This is Paul's contract compliance purposes in the past. I employment still exist among minorities and women and a man already and female business that we insure the city contractors acting aggressive affirmative matter provide opportunities to well qualified people and firms. My last campaign, we promise to use the trailer man has plenty of Provisions to develop a city plan. This plan has desperately needed to coordinate. The many aspects of are Loosely organized and fragmented city government. Some of the steps to planning director will be taken to improve planning the city and implementing a comprehensive plant 1st, February. The planning department will be reorganized objectives in mind right of the citizens and city government to strengthen the position of neighborhood and community plan find directions Juarez of city government. Planning Commission chairman and planning director will announce in February there any work program will look what your lymphocytes re-establishing the Planning Commission as a policy review and coordinating body for all major development proposals in the city to find out what issues should be addressed in the new city plant in May and June will be published by the finest after the use-by citizens the Planning Commission and the City Council in September. I set up Draft plans and Redevelopment policies will be completed in distributed for Citywide discussion and for public hearings December that proposal movie Reed drafted in the samples into a more formal planning document for further work. Adoption should follow accordingly. Also, I've asked the Planning Commission chairman and the planning director find means of re-establishing and strengthening the role of the Planning Commission. We should also address the issue of aircraft noise and 68,000 of our residents live with his noise above acceptable standards. As a member of the Metropolitan airports commission. I will work towards coordinating efforts between Mac Minneapolis planning department the FAA and the PCA to develop a specific program with timing and standards for reduction of aircraft noise. Next we have the issue of Redevelopment in the City of Minneapolis. 910 to conduct a comprehensive review of this process in Minneapolis and have instructed my staff to give this priority. All development should be carried out as part of a strategy prepared and adopted as part of the city's comprehensive plan most developed by the private sector there for a major part of the city. You should be to study climate for private Enterprise large-scale government intervention to development should be carried out only in those cases where we have bladder conditions severe obsolescence or environmental to patient recently tax return to what has become the primary source of financing for redevelopment in the city. We're at the point where local taxpayers are picking up too much for the Redevelopment project is graded these projects the CNN economic benefit to us not strengthen the economy. Also, we have created it for the drain on a tax revenues of the city needs. I believe the private sector should assume more of the financial consequences get the project fails this group certainly will profit if the project succeeds you should insist that the private institutions that will benefit by the project pretty revenue bonds to finance. The development districts as much as possible is my phone believe the purpose will be best served if read about misplacing one body, but can be held responsible visible to the public has to say I feel that the mayor should have that responsibility today the responsibility of commission and City coordinators office. Call the mayor's office depending on the outcome for the vote today commercial projects. Mhra, like in the city center development District of functions has resulted in an coordinator Planet overlapping and duplication and programs investors in the general public. There's also no way to pinpoint accountability for the failure or success of the city's economic development program. We should work towards the creation probably or something that I called here today, and maybe we can call something different or look somewhat different the Department of Economic Development. This department would be responsible for the implementing of economic development plan prepared by the planning director and the Planning Commission. Next time I could touch him City finances, which is a continuing challenge. The rising cost of Municipal Services must be met with resources that are limited by property tax and strengths and in the end in Attica Ybarra by the Revenant simply flood lights Buffalo New York problems that must be addressed in the year ahead. I'm optimistic about our financial future if we begin Together and now my plan is comprised of the following proposed actions first established the taxes and decrease the disparity between Minneapolis and in the summer. Second set of Millwright going for the city Minneapolis for 1979 that is lower than the existing 48.564 meal for the end of May in Minneapolis. That is lower than this year's. I would ask you. Have the municipal Finance commission if that's the fiscal disparity law on a change that may be necessary review the problem with tax exempt property and proposed changes and distribution formula should a careful review of all proposed tax increment projects for the impact in our tax base to set up a special Zone TV review process or procedure for proposed property from the tax rolls construction. Minneapolis should be carefully study. This includes city project Financial impact statement should be required in all tax-exempt proposals 6 develop a new city under governmental posture indicated Minneapolis going to put its own house in order before and asked Congress and legislature for additional assistance 780 property taxes and disparity with a city is not responsible for development of a management information system, which I think it's on its way. 9 proven revenue forecast in the building by next year's day of the city message. I would like to have a five-year Revenue projection so that we know how much we spend and dedicate in future year. Where is Pakistan from the city council in the development of Staff in the city council in the development of a budget format is easy to read and understandable get it must provide just the rate of Flow by scrutinizing all expenditures carefully also referred to as zero based budgeting and particularly certain areas of print City spending evaluate the effectiveness Anita cities program 13 do the budget process that allows for citizen input provide for policy Alternatives and Tracy Cooperative atmosphere between budget office. Nice to meet you for your consideration a budget process calendar. It is a very tight and regular but I feel the energy. I'm finally on the subject 2001 significant factor in the overall attractive effectiveness of Minneapolis is rather High degree of homeownership 84% of the structures in Minneapolis at Homestead units in them. However, will 93% of the single family homes in Minneapolis or owner-occupied owners live in a small percentage on the multi family structures. We must increase the incidence of home ownership by occupants to maintain minneapolis's by telling I hereby propose a program to increase the percentage of owner-occupied housing in the City of Minneapolis. The City of Minneapolis should encourage a change of status for non-owner-occupied to owner-occupied at 1% of its non-homestead units for the next year. This means that 870 units would be occupied by owners were previously occupied by tenants. For many it would be provided the first opportunity for homeownership. This effort should be expanded to include multi-unit building Reynolds the resident on each year. This progress should be monitored and available to the public a plan should be developed to allocate public and private funds to Minneapolis neighborhoods to in certain areas where a higher percentage of deterioration Exist by home bases. However, the remainder cities ignore that has proposed that specific Parts located directly to neighborhoods where higher proportion of deterioration exist. The balance of the resources should be made available on a Citywide bases need for action in the neighborhood should be based upon the percentage of structures in an area require major Rehabilitation or replacement. Also the Minneapolis Housing and Redevelopment Authority is currently undertaken several efforts to explore means in the city. Try the ways to make ownership of units more attractive in the City of Minneapolis housing Redevelopment Authority should use the Housing Finance powers granted to the city and undertake you program for the provision of mortgage loan funds that low Market interest rates in the City of Minneapolis this Mega the city a competitive advantage over Suburban areas. That's not have such a program Minneapolis Housing and Redevelopment Authority should be a resource for residents of rental units in our city who wish to purchase their units. They should also see from whatever Source possible permanent mortgage loan funds which allow multi-unit structures to be presently on. The urban Homestead program for single family homes has been tremendously successful stimulated is a throne and improve a home in the City of Minneapolis. Urban Homestead Apartments. This housing plan cannot only improve the quality of life for Minneapolis residents to another pretty of the housing stock and making some strong neighborhood, but it can provide employment opportunities for his residence as well and a few of the major issues facing our city today reported to you on the state of the city have a 10% 4th my plans and programs that will affect the physical and economic development of our city. Some of these are well underway and others are just beginning but I'll need your help and input office in the council chamber are physically separated. I hope we will be able to work together as one unit of government. I'm asking for a spirit of cooperation between the two offices and I believe we can work together to achieve the solutions to the problems facing the City of Minneapolis. Thank you very much. Mayor Albert Hass definitely bring his state-of-the-city message to the Minneapolis city council yesterday morning. The mayor has joined me in the studio and is set to discuss some of his proposals at this time. I'd like to begin by taking up the issue of tax increment financing as a commercial Redevelopment tool traditionally. The city has sold General obligation bonds for Pearland in order to entice developers under this plan in the bonds. Ideally are retired by the new taxes that the development generates City taxpayers have borne. Some of the cost when development has hasn't proceeded on schedule. You told the council yesterday that you want developers to take more of the risk on these projects such as at Loring and Nicollet Lake. Can you describe the problem here and what you think should be changed? Well the first of all I think it's I probably don't have to go through history and we talked about to Loring Park in Dixon Lake with a view But those programs are designed so that they that they cause or create Redevelopment in the city Minneapolis and that that we increase our tax base and we have and that and we have not increased our tax base. In fact, it's been sort of the drain in the tax base because we we had to incur Alive by believe is 1.6 million dollars in and cost. I think we talked about risk-taking. You're the City of Minneapolis who whose primary primary source of income is the property tax that you'll have to be very careful. That is we do not we do not have the luxury or nor do we build up surpluses like the state and or the federal government in which we can afford to take the risks that the state and federal government can do as an example the air Bruno programs in the past were financed by the federal government. They actually came in and said here's a grant to redo or this particular neighborhood and In Downtown Minneapolis, an example Gateway Center was a federal program use federal funds. They can take the rest because they have the money to do so and they have a source of income the income tax in groceries inflation. And if you look at the City of Minneapolis, you'll see that door any a city that's primary source of income in the past years has been the property tax that does not keep up with inflation. And so when you design programs that are supposed to pay for themselves, but we as the developer are we as the people who are in the business of developing and their fail and the rest falls back on the property tax on homeowners and the property tax. I think this that's wrong more of the wrist should be put on a developer. They're the ones that incur the profits if things go well for a good share the risk if things go bad when I indicated that we talked about in the revenue bonds vs General obligation Bond. I'm not saying we should never use General obligation bonds and I think that's the case but our emphasis should Beyond revenue bonds revenue bonds are sold on the on the merits of the company that goes in and wants to acquire the land. If obviously you can't sell the bonds. That's a good indication that the people who are behind the bond saying that that company is not worthwhile nor do I feel like invest money in it. So therefore it's a good indication City Minneapolis. We ought not get involved with that person or without developer, but I think it's a it's a we've learned a lesson and I'm not going to criticize while we want that's not my purpose here. My purpose is to say look at the future is is tomorrow is today and tomorrow and we've got to set a development course, we've got to develop a developmental strategy. We've got to increase our tax base. We've got to provide jobs and that we can't continue to continue to make the mistakes we've done in the past and and make the taxpayers the people who bear the risk and and and it did you just won't work. I'll tell you I won't work. Would you say if there is to be up a new major urban renewal project that comes out during your Administration that is considered during the administration that you will bring them or conservative. I to it that she will look for a better contract than one that ensures that the city is not obligated should the private sector fail a generate the tenants on a piece of land. We will try to minimize that you know that obligation. I think I am not saying I hope that your public understands that government should not be in should not be involved in Redevelopment of cities in particular this case the City of Minneapolis. There are things that we can we should have simple and we have the power of condemnation we can go in and assemble and for whatever reason we can provide that for the developer how we can write down when we can provide in some cases Financial incentives low-interest loans or what. Are grants that come from the federal government or whatever by using our tax structure we have is an example of an able to make loans from the from Banks take loans from Banks and and at a reduced rate give them to some people as an example in her housing program at a lower rate than then I can go to the bank we can do these things. But the point is is that when you're The Keeper of the money of the taxpayers of City of Minneapolis, you've got to be very careful on how you do that in the banking business in which I came from a mine and you know, they don't throw their money away that they're the keeper of money to investors put money into the bank on Lester's but they're people use the bank put money in there and the bank loans it out, but they loan it to those people who basically, you know can pay back the loan and they minimize the rest that you know, that's that's taking that you know, they come in with a statement you look at the statement you find out whether or not they're capable of paying the money back and or else if it's a project fails, you usually find out that there's a commitment or are they have a high enough money in the in Savings account or they have enough assets some place that will repay the loan that you know back to the bank but those are the kinds of things that we've got to begin to take a look at when we when we look at development. Now, there's always a certain amount of risk in this wrong nothing's ever certain but the point is is that people say are you getting off a concern if that's not the case the cases we are in the business. I know I know I'm convinced of government has to play a very important role in creating the atmosphere in which development should take place Redevelopment should take place in the city Minneapolis. And I think that we've got it began to you know, you don't begin to actively if you don't get involved and convince developers that we have a sound City and but they're only going to get involved if we convince him that but but I think that that we just have to be careful of how what a what are policies are going to be a financial policies are going to be in so that we people don't get the idea that was throwing money away. And that were that were misusing their tax dollars and I I want to create that kind of an atmosphere. Who got the tools to help him we will do that. But the same time I got to have to make sure that the taxpayers understanding the people of put me an office that I'm protecting their interests and their interest is, you know, the money and that they are providing the city Minneapolis and or else they're interested the tax base of the city my goal, you know, what's think it was well spell, you know, I'm outside again because I'll probably say it. It doesn't more times afterwards the problems of face the city are you know, what is a particular City Minneapolis are somewhat simply but are they were simply put in there and they can report given to the city Minneapolis by the state planning agency. The last 10 years are spending has gone up at the rate of 17% per year. Approximately our tax base during that time is only growing through rate of 223 to 4% Depending on the year last year. I believe our tax base has gone 0 somewhere along the line. We better be able to have a developmental strategy as well as a policy that's going to increase the tax base of the cities to help pay for the services. We have to provide know when you talk about tax increment, we've got to be careful how many tax income in districts we encourage in the city. And the reason for that is because you then freeze the tax base. So therefore you're not adding to it you add to it maybe 20 years from now or 15 years from now, but you don't add to it now when we need the money, that's a problem. So you'll have to have so you have to get you have to minimal minimize but just be careful how often to use tax increment as a tool. Otherwise of all the development is taking place within tax increment, you know within a tax return project. You do not require enough money to Keep up with inflation to pay for the services that the people of Minneapolis need. Now the other problem you have in the city has and this is what we're going to have to do in the next year. Many facilities that we have in the City of Minneapolis are not just used by people who live here. They're used by people who live in the in the state in the metropolitan area and then and then get into that but many facilities universities hospitals colleges, you know, we we can go on Art Institute every one of these facility these people helped wear it out. We wear out our city they use our city yet. We as a taxpayer have to provide those Services. Well, there's a point here where we provides our services just to keep our city healthy. But in addition to that we have to pay for those we have to figure out what that number is and then go to the legislature and say look at we need help and maintaining the facilities and providing the services that they need and that that gets into a whole nother subject, but where Are the draft of the report which is due out next month. I believe said that 25% of the buildings in the City of Minneapolis are tax-exempt and you mentioned or I've heard you mention that another 25% of the land space streets Park sewers are not taxable of course or what in essence you have is only 50% of the property being taxed know what's involved here to resolve that you mentioned going to the legislature a reworking of these Municipal Aid formula is indicated in my speech. I've said that we're going to try to do a one. The first thing we're going to do is I'm going to set up a finance commission made up of what I think of us some experts in the field of Finance City Finance Saban have you to take a look at you know, do you know the entire problem of financing our city and the disparity that that we have between the city and the suburbs? They're going to have to take a look at it as an example of fiscal disparity law to find out whether or not you know, the application of that money is is is a benefit to the city. Now, there's two of them are under that physical disparity law development in one area of the Metropolitan region portions of that of the revenue and curd to that development are distributed to two minutes Valdez throughout the ridge, right? What happens is if it's only been in effect, I believe for about 3 years or two or three years, but it's all new commercial and industrial buildings. 60% of the new assessment stays within the community and 40% is put into a metropolitan pool to be used by all of the 135 municipalities in the 7 County area. Now I'm saying I could be dying and rightly. So I mean I suspect the suburbs. I want to look at it to it because it was X things change and air condition saying what I'm saying, we have to look at that distribution formula to find out whether or not you know, just going to whether or not there should be more coming into the metropolitan area as a whole and the end and also is it is it really doing what it set out to do we not to legitimate concern the other problem with that the finance commission to look into and we as I as a mayor and is a console ever Nelson have to look into it to find out if a municipal Aid formula as I as you didn't get it spelled out very nicely that want to be roughly 25% of the buildings are off the tax rolls. 50% I mean another 25 of of other property is off the tax rolls a total of around 50% of the property in the city Minneapolis is off the tax rolls. Well, we don't has a city and has a resident of a city or a vision St. Paul's the same way. Maybe two figures are a little bit different but probably not but we has people who live in the city. Don't wear it out. It's everybody in the city of David is Metropolitan are who are who use our facilities help wear it out yet. We're required required to pay for it for somewhere another we're going to have to look at our Municipal Aid formula to make sure that that we get the necessary help to pay for some of these facilities soon. As I indicated. You can heal University of Minnesota. We provide fire Services an example. Hospitals, you know, i r i c iter's the Guthrie is an example the Art Institute great facilities, and I'm glad we have the Minneapolis and I'm not saying that they Does bring some retail business to the city cry when they come to the tax properties? Naturally, they spend time in restaurants and showed us that in some cases and provides maybe new industry in new businesses to develop but on the other hand I'm told and I don't know how accurate this figure is, but I'm told that we were out the city Minneapolis at the rate of approximately 25 million dollars a year. Now, that's all and we just need and it isn't we don't we as a people within the city don't do that by ourselves. We as a people live in the state of Minnesota in the metropolitan area where it out and I just did all what we're saying is that we need some help in in and rebuilding it or maintaining our city and it's a I don't think that you know, we're not trying to get into a Suburban City fight. I don't think that's the case. I think that I've been term of the Metropolitan Council. I understand that Suburban communities have Jobs in the city, and I think that we have to help them and they're willing to whatever their problem is, and I think but the same time when we need to need our particular help and whatever every other should be in an exchange to of money. Just like the reverse then I remember the last few years growing communities need sore as well. We help pay for that the older communities pay for those in now if you know now and we should have a sharing whatever the problems are. We can help one another solve the problem. All right to time is 10:35 in many issues that we want to touch on this morning. Also want to open program up to listener enquiries, and I guess this morning is Minneapolis mayor L hausted were discussing his plans for the city's future, which were outlined yesterday, and you heard it this morning his address state of the city address to the council if you have a question you my phone the mayor at 22115 502-2115 50 muster let's move into the area of Municipal Finance in City budgeting you talking about getting some more funds from the legislation. We discuss that breathe this morning the first you're talking about the city getting its own house in order. What what do you mean by that? And then do you see areas of City service that can be streamlined is are slacking City service that you want to cut back on. Well, let me explain I said that three things have to take place in the city Minneapolis one. We have to take a look at our expenditures 1/2. We have to when we do that we can ship her that we have to make sure that that what we're doing and what we're spending is is it sound second thing is we have to do is expand that property tax basis we talked about and then when you do those two things then we can go to the legislature and say look at our house is in order, you know where this is the best we can weave double-checked and leave. Thought it out and we debated it out. And here's what we think our needs are and here's our long-range goal to increase our property tax base it but here is the here's what we need an additional funds because of the problems of the unique problems we have okay when you start talking about the cities and what are we going to do? Well, we talked about our spending. Well, I just said I don't have an area where I'm going after I think there are a couple things you have to look at 1 and is described a little bit of my in my addresses to use kind of a cliche. Let's look at zero based budgeting every Department should be asked us to come in and say here's what I need. In addition. We should go back and say, okay. What are you doing? Why are you doing it to you two times of change and maybe have a task force is somebody looking into this we set up a calendar and I was not an advance but a calendar that that we think has to be followed and my finance director jacobowski is going to head up that And he's going to go through every Department with the department has and start from really zero when you say zero we're saying every Department come and see what are you doing? And why are you doing and how many men do you need a woman? Do you need and not just come in and say Here's to you. Here's the additional stuff we need so I think that's a start and I we want to get across to the people of Minneapolis that's as much about to the people in Minneapolis. But also today to the department heads that we know who this isn't there are limits to our funds and and and there's a limit to what the profit tax will bet. You know what you know with me and if we we have to know they have to understand that this is where all have to work together to make Minneapolis up a good city or continue to make a good city and provide the services that are necessary. Okay. We'll talk a little bit more about budgeting and The mayor of emphasizing the speech that he wants more citizen input in determining what the city spends and what services I get priority, but first we have several call waiting. Good morning. Do you have a question for the mayor? Center for Women you appeared on Arthur nefilins our former mayors TV program on channel to early in January and I think the last question. Mr. He would give you the proposal for the birth control program at our Clinic if it came across your desk at that time, you mentioned that you weren't familiar with the program and you wouldn't be able to comment on it Renee Ward Road. She was a very complete letter explaining the various programs. We had here with your funded by the city last year. 250 women I'm going to come to us for birth control assistance and so far are perking have been successful in preventing unwanted pregnancies were when they finally came up for this year of the new city council overrode The veto of the previous city council and they did pass this program to writing a half of the hospital for women who are already pregnant. I was disappointed that you vetoed the bill and I was disappointed also that you didn't check with us and his wife and I think you would have learned it is not a program related to abortion, but it's one that's really relates to family plan plant. Your friends. Can't imagine our part in helping women prevent unwanted pregnancy, and I'm wondering Without first of all, let me explain something. I neither called, you know, where to buy quality of the other party involved. I think very honestly it's a athlete for practice in the City of Minneapolis to have won city council approve something debate it out argue about debate it out and say here is what I think I we would rather have and pass it out signed by the mayor. I'm assuming it was signed or at least it was it was approved it would maybe he did or did not sign it. I'm not sure and then suddenly a month or month-and-a-half later change your mind that we're going to start that practice. Will it only we know we had to go back and try everything else that I differ with? I don't think that's don't think we had to do that. I didn't ask him know that I call you nor did I call the other party? I just felt that this is a poor way to do business. I just think that the city Minneapolis is going to act like that that that every time we get another notion that somehow that I didn't like the previous a console's done and suddenly you say it let's change it. Well, you know people who who won something is approved they commit themselves whether you Like or dislike it is that's not the issue the point is that the governing body did a prove it they have committed themselves to spending xmod all this started the process and suddenly Midstream. Somebody comes along and says for what reason nobody knows it wasn't a real good reason for saying that we should sound like split everything up just because it just because somebody lost and say let's change your mind. I don't think that's the way we know if there were a reason if the other program where the funds were mismanaged are there was a some something in the contract that said that at at at at into a month or two months or so that we could we look at the contract that that that that would be part of the of the of the contract to sign but that's not what we did. Did you pay for the program at the University? I never got into it never has I indicated very well as far as I'm concerned, you know not knowing and I in all honesty. You don't want to be very honest to mr. McCoy. I did not get into the question of What they did or what they didn't do in this business. I want to be right there are more rumors and there is and it's a very emotional issue and but I just felt in an early and early start that if we're going to connect that's how we're going to conduct business. I know I think that's very poor now whether I did not say whether or not it was I don't know what they do there. I don't I didn't get into it. Time at this past city councilman. Would you ever proved well, and I want to come visit you. Wow them in there rumors of what you did and what you didn't do some people call them abortion clinic. The other said it wasn't abortion clinic. They said it was a referral process and an educational facility and went on and on and on. Next time you come up and we'll see what it is to make my mind up at that time. Would you like that? It suddenly I'll put the reverse on you what happens if the consul approve your body and suddenly and said he was Twenty-One or twenty-two thousand dollars and suddenly a month later said, I think we're going to change your mind and I'll tell me how you would react to that did not what you reacted that properly know you would not do you say know what in the world are they doing downtown now now that's how you were right? That's not how I operate. How many steps start a different very much but we're going to move on to the next caller. Good morning. You have a question for the mayor local star of the mayor appointed several persons to responsible position who did not live in the do not live in the city find that hard to understand in view of the mayor's revitalizer city. Does America care to comment on that better? Thank you for your question. The comments was on appointment of mayoral AIDS who reside outside the city is that a bad policy and due to the fact that you're trying to promote the city and you want people to live in the city and expand the tax base. I suspect that I try I try to make sure the tough as many as possible live in the city. I I don't think that if we're going to be a pro keola in one sense that everybody who works in Downtown Minneapolis City Minneapolis has to live here. I don't think that's We want to do I think on the other hand my job is to encourage those people who who do work here to live here. I guess it's simple as that. I I think that I when I ran for office about something and I ran for office, they were people in this town who said look at that. I think I'll have stood and I his philosophy is what I think that make Minneapolis go they help me get an office. They want to continue to work with me to make sure that I carry out my programs and that's the general just about it. And I I think at the end of two years it's what I produce is going to be looked at to some degree. I suspect who I hired and I can't disagree with that but my record will stand and you know two years from now and say Here's what I'll hosta dead to make Minneapolis a better place to live and a cheaper place to live and and if we produce then I'll be like me. If not then then I guess it's not like me or criticize me now. I'm not without criticism. You know, I know I'm not perfect and not everybody's at the Let you know that everything that I do is is going to be is going to fall in the favor of everyone in the City of Minneapolis SeaWorld at the council driver is are considering rather. I've basically that but when I say that it's there's there's there's there's something I have to say and I've always had a qualified up and made a statement to modify my position and that is if we're going to require that to take place at City employee supplies living up here and work here and I guess to some extent the most of our are hiring practice are such that that that would do that. Anyhow, I'm told but if we're going to do that, I've got to make sure as a mayor of the City of Minneapolis that is cheap to live here as it is in the suburbs the present time if you want a $40,000 home in City of Minneapolis $350 cheaper to live in the suburbs now if we're going to force People to live here and work here then we also how to make sure that's it as a public official. I deleted City Minneapolis that look at we've got to make sure that is cheap here to you know, if we're going to see what I mean to compensate people getting $350 more in all four for city employees know if nobody wants to do that. Ok, but then it's not obligation on my partner and that's what we're trying to do to reduce the actively go out and try to reduce that disparity. So does cheap to live here is it is someplace out because I don't think that's city employees should pay a penalty either and that's that the elect goes hand-in-hand and I Okay, they're going to track employees here or excuse me, you're going to try to attract residents. Are you feel that the residence residency requirement a cage them in the city? You don't want to set up that sort of a standard. I I have no problem with you know, what the residency requirement to do, you know, and I think this now before the council that we that we do people who work for the city, you know, if you're going to shut all so you don't live in the city and I think that would be a requirement but I am so in addition to that she still they pay a penalty for living here. And then I said that during my campaign I say that my and my message I say look at one of the problems we are going to continue to keep Minneapolis a Bible city is it got to reduce that disparity because one block away from my house is an example. It is $350 cheaper. I know that and if we're going to keep industry here and we're going to keep families here and we're going to keep you know people to stay and we ever asked him to live here. We got to make sure this is Chief to leave here. It is someplace else and I think that that's part of the that's that's part of the fights would have to take place. In the next couple years. All right, we have another caller standing by good morning. The mayor is waiting for your question question earlier that say yes. Yes, you know. Yes, whatever you want to be a difficulty in in balancing the budget annually. Income doesn't come in as fast as the cost of doing business has been looking at other sources of tax revenue property tax formula can ride along faster, and I'll just hang up and listen. Thank you. Well, it was a very good questions and let me explain the history in the history isn't I'm just talkin by four years when when this country went through what I think I depression. And others may I call it a recession that when we had double-digit inflation as well as double-digit unemployment and cities were in trouble all over the country and particular only one New York went under we were no different than the arc. We may have been smaller. But at the same time we had the same problems. Are property tax, you know what that time we had when I use the number and I could be wrong by one or two points, but we're roughly inflation was was with 12% cost of living was you know, so therefore you can are police and fire and city employees. We had escalator classes are cost-of-living causes that said that they we had to pay for that and you know, those are contracts that were signed and who could predict that we have those kinds of things would have that kind of inflation. But wow that was taking place. Our property tax base wasn't was not producing that kind of money to keep up with inflation. I went to the governor governor Anderson at the time and Marty Sable and I remember sitting in your office and tell him to look at what we need in this city as we need money. To help pay for the increase cause we need property tax reduction. And we otherwise we're going to have serious problems. They said at that time they couldn't give it to us and I when I went back to my office and I got a call in the governor said I want to talk to you the same night and Marty Sable was there and the governor again and said we will help here's they gave us ten million dollars in cash. They gave us at that time. They they help to support the bill that took the county hospital off. The tax rolls teachers pensions were taken off the tax rolls, which again of those two items on help reduce the disparity between a city and a suburb so wasn't again as I indicated that problem will always be there but we got to try to reduce that. And in addition to that they asked in return that we help support the circuit breaker that Marty Sable was his program that you know that he was promoting and in that process we were able to get ourselves out of trouble and thanks to Governor Anderson. Thanks to my disabled. Nicole man in the end of legislature were able to get out of trouble subsequent to that time. We did have inflation. But again the legislature responded in and giving us more money and we're able to do that. What has happened though. Is that many legislators are in my talking to them. Anyhow have said where does all this money go? Where are you spending it? And how are you spending it? So what they're asking for us to do in particularly 1979. Is it to justify where are spending the where the money is going and how we're increasing our tax base to help pay for the services that we have to provide a we do not have deficit spending like the federal government. We cannot do that. So what was happened in the last few years money is coming from the federal government, but primary from the state of Minnesota. Is there an income tax system that grows with inflation to help pay for the deficit that we had in the city. Do the state income tax in the metropolitan Arnie? What are the problems? Let me go into that question because I think it's important that the public understands. We do have a deficit or when I say the deficit it comes in the form it is maybe it's a bad word to use or the bad way to relate to it. But the problem that Minneapolis has at most major cities have is the problems of Pensions are unfunded liabilities. No, I'm not here trying to tell people that I have some 10-point program to cut back on on services or may not on services on benefits because I'm not trying to do that the issue here is how do we pay for those benefits and what has happened in the last few years and many years is that the city has occurred approximately 350 million dollar bond fund liabilities at fall back on the tax rolls. Somewhere that has to know our ability to pay for that is is is his being questioned. Obviously, it falls back on the tax rolls, which means that the disparity again between the suburbs in the city will continue to cry a crime which means it'll be harder to encourage business to stay here which means it'll be harder encouraged families to stay here and buy a home here. And so therefore we it's a problem with got to find the source and what's the pay for those unfunded liabilities? I mean, that's a must otherwise this city as well as any cities going to have serious problem, but that's going to be a a major thrust nothing too major thrust in the legislature at the present time. So that is what I say a death that we do have it something we have to pay for Social Security Office on the federal level has the same problem, but that doesn't fall in the property tax base, but I don't think so. But at any rate, that's one of the problems you do happen. That's where there is some deficit that has to be picked up. Now the problem the second part of the question that was asked was are we looking for any new kinds of taxes? In one sense, maybe we should take 1% or if I mean, not 1% but one of the percent of the sales tax and use that as a way in which to pay you need to pay off our are on find the unfunded liabilities for pensions instead of just giving it all to stay just take that 1% that we now getting that says more than 1% to take one of those percentage points in to say that money that's generated help pay off that unfunded liabilities. What doesn't fall back on the tax rolls there aren't we have to look for some other or else have the state help pay for that? Because they're on income tax system as an example, but the come up with a special tax is a is a very complicated and business mainly because we in this metropolitan area have a 135 different municipalities. So anytime that we get one form of taxes that's differs so we can have another form in Brooklyn Center on another system in the end. I want to Robbinsdale in another system in Bloomington another one in Coon Rapids. And another one in Richfield. What I'm saying is I just don't believe that the legislators are allowed any one of the municipalities to do to do something different and if we if if I knew what it was I would be willing to try but I but I think that there was there not willing to do that. That's why they went to the what we call a physical this parity act that we talked about earlier. They decided that instead of instead of having a different tax and every one of the municipalities to help pay for the services. They they develop this concept for said that 60% of all the new assessed by the way, she stays within a community and 40% is put into a metropolitan pool and it is distributed throughout the entire metropolitan area on a formula basis. That's how they're trying to get at that we have received some That money we are we've benefited from that that we benefited to the point that you know that will help his pay for the services that we have to provide some of these facilities we have enough to do Minneapolis, like hospitals in colleges universities. That's the question and that's why I've indicated that we should set up a financial to take a look at it back to housing for just a moment. We don't have much time. Give event located that 93% city houses are owner-occupied and the incidents of ownership is is far less when it comes to apartment building. Now you're as I understand instructing the related agencies the housing agency to assist people who want to cooperatively own apartment buildings and to get more owner-occupied houses in the area. Are they are you going to be programs available for moderate low income people to start getting into a housing and away from the landlord problem Oh, yes, that's that's the intent, you know, I firmly believe that 50% of the renters and 50% of homeowners. And then I think that we have to make sure that people have the opportunity to participate in the and what we call home ownership and and in so doing they incur the benefits to come with that, you know, the only thing that the average build the average person builds up in the equity in his life is his home. Because with time and because of inflation, you know, it's worth more tomorrow than it was today as a general rule and we've got to make sure that the average person today, you know can share in those kinds of benefits that they begin to build up some equity and I think it's important and I and I and I think it's the it's the kind of it's It's the foundation of Minneapolis. The concept of home ownership is the foundation that makes a city a little different than most cities. If you destroy that concept, I think you'll destroy Minneapolis as the family is the basic unit of society. I firmly believe the home and the concept of home ownership is is the basic unit of of our community University and I think that that's why I in my speech I try to encourage our programs or try to encourage people to participate in the system and dent and to buy a home or buy or buy an apartment and a condominium and B & B and use innovative ways to make sure that that can take place so that they can so that they are you are so they feel that you're part of Minneapolis and Fargo. And you're pledging your department to to a system to do we end the we laid out the programs and leave a Spur. We've already applied for federal funds as an example to help us in this endeavor and back the application was in yesterday and there and I are on our Homestead program for apartments and I we've had Homestead program for 4/4 home did not renew an apartment and we'll see how it works. Well in 30 seconds will be 11 a.m. And this point will conclude our discussion with Mary hostos Minneapolis. And while I have a few seconds, I'll pass on this weather information. The temperature in the Twin Cities is one degree above zero Northwest winds at 14 miles per hour and that makes the wind chill temp. 27 below zero skies are sunny. Thanks for joining me this morning Mayer hawstead stay tuned for NPR's monthly special series on the law coming up on Minnesota Public Radio the listener-supported service.