By Leah Shaffer

This year’s city budget approval process could shape up into a battle of philosophies.

At stake is a large chunk of funding from the city’s Housing and Community Services Department – a section of the city that handles grants to charitable organizations and other social service issues.

“It’s an easy issue to have a different philosophy about,” noted Eden Prairie City Manager Scott Neal, “and my position, as somebody that works for the government, is to try to be respectful to both of those points of view. But only one of them can prevail.”

In late July, Neal presented a preliminary budget to the city’s Budget Advisory Commission. This version of the budget includes cuts to housing and human services, namely the elimination of two staff positions and about a 40 percent cut in funds for human service grants (which goes to organizations such as Teens Alone and Meals on Wheels).

As soon as Eden Prairie resident Cari Maguire got word of the possibility of cuts, she organized a meeting. A group called “Eden Prairie Cares: Neighbors for Neighbors,” consisting of about 50 members, has formed. According to Maguire, they have 275 names on a petition already.

“I think a lot of people really don’t want to see this happen,” said Maguire, who is chair of the city’s Human Rights and Diversity Commission.

 “You don’t know when something horrible might happen in your life or you need to have these services,” noted Maguire.

 According to Maguire, money will be saved by investing in human infrastructure.

She used an example of helping a teenager who is fleeing from an abusive family or living in a car. “Do we think that kid is going to be more or less likely to get into trouble with the police if we help that kid through a program like Teens Alone or, [if] that kid is just out there on their own?” she said.

“That’s just asking for trouble down the road,” she added.

The next step in the budget process is for the Budget Advisory Commission to make its recommendations to staff. That meeting was Thursday. Then, Aug.21, the City Council will receive those recommendations.

BAC chair Katherine Kardell said she didn’t want to get into the specifics of what the budget that is publicly proposed is going to be.

She noted that there were some commissioners who expressed concern about duplication and redundancy of services in the area of housing and community services.

Though it is not yet known what, or if, any cuts will be part of the BAC recommendations, ultimately, it’s up to the council to make the decision on the budget.

Neal explained that they are looking at a budget that does increase taxes, “but it limits the growth of the increase for the median single-family home to about $20” for 2008. According to an earlier version of the budget (without cuts), the tax increase for would be $54. Neal stressed that these numbers are still early approximations.

City government’s role

When asked to explain the reasoning behind cutting that department, Neal explained that, “in my view, this is an area of city government which differentiates us from our peer cities.

“We know that our level of operations in this area are quite different then those of other peer cities.”

He added, “If we are going to decrease our budgeted expenditures in the upcoming year, I think it is an area of our budget that we can kind of roll back to 2000 levels without really damaging the overall quality of life in the community.”

In an e-mailed message, Mayor Phil Young spoke about the challenges with the issue:

“Statistics will bear out that Eden Prairie provides such services at a rate higher than peer cities,” he wrote. “That fact alone doesn't mean that we shouldn't offer such a level of service but it is an item to consider, especially when we are trying to find ways to address the legitimate concern of many that property taxes are simply too high. I also think it's a fair question whether taxpayers want the city to give tax dollars to local charities.”

Maguire said, even if you don’t believe that the city should be involved in social services, “who do you think’s going to do that little bit?”

That’s a really big question, she said: Who’s going to make up for it?

“I really think the answer is that nobody is, and so people will suffer,” she said.

“Some believe this is appropriate while others believe that charitable giving is a private matter and that government shouldn't spend tax dollars in such a fashion,” Young added in his e-mail. “I am actually struggling with this part of the issue very much as I am torn between my feelings as a fiscal conservative and my affection for local charities such as PROP and Meals on Wheels. I think this is an important matter for residents to contact their council members on so that we can make the best decision.”

At issue

To cut down on the tax increase this year, city staff has put together a possible budget that would include cuts to the city’s Housing and Human Services Department.

The proposed cuts would eliminate two staff positions and, over two years, reduce the total amount available for human services grants by almost 40 percent. Those grants typically go to organizations such as PROP, Meals on Wheels or Teens Alone.