Chaska facing $400,000 deficit in 2012

The Chaska Herald reported on Monday’s City Council Work Session, at which City Administrator Matt Podhradsky unveiled the updated five-year financial forecast.

The forecast projects a deficit of over $400,ooo for 2012, and higher deficits in the remaining years of the forecast.   On the good news side of the ledger, the projected 2012 deficit is smaller than the 2011 deficit of $650,000 which was closed using a tax rate increase and deferrals of equipment purchases.  Also, TIF District No. 4 closes in 2014-15, which will free up funding for the Street Reconstruction Program.

While the 2012 deficit should be relatively easy to resolve, the City is going to have to get serious about addressing the long-term structural issues in the budget, as I pointed out when the 2011 budget was finalized.  You can’t put off equipment purchases forever, and there is substantial activity ahead — whether it’s the Downtown Master Plan, renovation of Athletic Park, and the maintenance required at the Chaska Community Center (such as the planned replacement of the ice making systems). 

While the City has been quite successful in obtaining grant money to supplement critical projects, we can’t assume such funding is going to remain available — especially given the fact that the federal and state budgets are going to be crimped for the forseeable future.  And while there are signs that development activity may be beginning to come back to life, we can’t expect a building boom comparable to what we saw in the last decade.

Residents of the City would be well served if the Mayor and Council would make moves to eliminate some of the structural issues in the budget starting in 2012 instead of waiting for more severe measures down the road.

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