City takes another hit in Local Government Aid

Grand Marais city counselors held a work session prior to their regular meeting Wednesday, and the news wasn’t good. City Administrator Mike Roth filled council in on the latest cuts from the state in Local Government Aid.

 

Roth said this is the fourth aid cut the city has had to deal with. The latest cut is a $33,352 reduction in the city’s market value homestead credit. In December of 2008, Local Government Aid was cut by nearly $40,000. In 2009 LGA was again cut by $31,000 and earlier this year LGA was cut by over $73,500.

 

Counselors debated where they could cut the budget to make up for the loss. They settled on cutting their cable fund, which is currently inactive and reducing funding to Rec Park site upgrade studies. Barring further state reductions, the city will receive $111,600 in LGA for 2010.