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Published - Tuesday, June 16, 2009
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No new taxes effort fails in Onalaska

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Onalaska Alderman Dennis Aspenson made a passionate effort to have the city promise not to raise fees or taxes or implement new ones, but his plea never got off the ground. It was voted down by the city’s Finance and Personnel Committee last week, with council members Kim Smith and Jim Olson disagreeing with the concept.

Aspenson expressed disappointment that the committee did not seem to be thinking outside the box in dealing with revenue shortfalls and curbing spending or giving city department heads or the mayor direction in how to deal with financial constraints. He cited a memo from Mayor Mike Giese indicating there will be a $246,000 budget shortfall for 2009 just from lower than projected investment earnings.
“I think he is being conservative with the $246,000,” Aspenson said of the mayor’s estimates. “I think it’s closer to $310,000. All I’m asking is the department heads need direction or mayor needs to come forward with a plan. If he cannot, then F&P has to come up with a plan. If not, we’re going to slam into the wall. We only have six months to fix it.”

“I strongly disagree,” Smith said. “Making such a motion puts us in a situation that removes flexibility. While I definitely agree in spirit, I am not going to support this in any way, shape or form.”

Olson had a different take on the mayor’s letter. “The letter to me said this is exactly why we can’t take such an action,” Olson said. “I don’t plan to raise fees, raise taxes. I’ve said it many times I’m against that. But there are only two ways to solve financial problems, either increase taxes or cut spending.”

Smith raised the issue of water and sewer rates, which are subject to review by the state Public Service Commission. Finance Director Fred Buehler said city water and sewer rates needs a review .

“The city hasn’t had a rate review since 2004,” Buehler said. “Prior to that it was 2000 and there was a 32 percent rate increase.”

Smith said if Aspenson’s motion passed, city officials would have their hands tied in dealing with such needs.
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