Austin Mayor Tom Stiehm and city administrator James Hurm are campaigning for Local Government Aid.

“LGA is what makes the quality of life what it is today in greater Minnesota,” Stiehm said. “We’re against reducing it every year to balance the state budget.”

The mayor and city administrator held a public information meeting Thursday night at the Mower County Senior Center.

City officials and staff have been making similar appearances at local service club meetings and other venues to encourage citizens to lobby state legislators and Gov. Tim Pawlenty to leave LGA alone when trying to erase a $4.8 billion state deficit.

When the picture of LGA’s importance is painted, it reveals how dependent municipalities in greater Minnesota are on the revenue stream.

According to Hurm, the City of Austin’s certified July 2008 LGA payment was $3,810,488. No reductions were made to the amount.

Then, the economy spiraled downward.

The city’s December 2008 payment of the same amount was reduced by $452,110 or 11 percent.

This year, the city faces a 7.5 percent decrease in the amount of $579,374.

According to Hurm, the 2010 decrease could be twice the 2009 amount: $1,200,384 or 15.56 percent.

The city’s 2009 LGA amount would be $7,766,163 without the proposed cuts.

Hurm said he is worried the state will pass on the state’s budget problems to local governments.

Any reduction in LGA monies can be crucial. “That $452,110 amount they cut us at the end of 2008? We already spent the money they promised us when they made the cut,” Hurm said.

In all, the city counts on LGA monies for 54 percent of its near $14 million budget.

The prospect of the deep LGA cuts has forced the city to examine deep cuts in city programs and services.

Without LGA, the city would be forced to raise property taxes to undreamed-of heights. One scenario mentioned by Hurm: Property taxes on a $120,000 home total $1,100, when all — city, county, school district — are computed.

“The city’s share of that amount would be about $300,” Hurm said. “Take away LGA and the city share of taxes on that $120,000 home would grow to $1.100.”

Hurm and Stiehm made a power-point presentation on the dilemma faced by city government, distributed handouts and answered questions for an hour Thursday night.

When an audience member inquired, “What can we do?” the answer was “Contact your legislators and the governor” from both Hurm and Stiehm.

“We will have to fight for it,” Stiehm said. “We don’t want to raise taxes.”

Also in attendance at Thursday night’s meeting was Steve King, Second Ward council member.

King asked Hurm about levy limits and the city administrator said, “They’ve been in place for a long time, but there are loopholes such as public safety needs, that some cities are using.”

Hurm said LGA was a long-standing tool used by the state to remove economic disparities across the state; particularly between the Twin Cities suburbs and outstate communities.

A citizen asked about property values, which steadily increase in Mower County.

Hurm said even if property values were lowered “Your property taxes would remain the same.”

For more information, citizens were advised to contact their council members or the city administrator at the Austin Municipal Building 437-9940.