Although I agree that the city is indeed moving in the right direction in regards to forming it's own EDA, I question that if the city, "agreed to get aggressive on economic development when it met three years ago to discuss changes to the city’s strategic plan.", why is it now three years later that something is being done?

KEDA was setup legislatively, with spots for both the county and the city to participate on the Board. But regardless of that fact, why would that ever be a reason to not have our own Economic Development Authority at the same time? The KEDA is there to promote economic development across the entire county, which is needed county wide, there is no doubt. But International Falls needs to promote economic development across all of International Falls as well! How is it a good thing to put all of our "eggs" in one basket, and not work things from multiple angles? Competition isn't always a BAD thing!

Again - an International Falls EDA is a single baby step in the right direction. But much, much, more has got to be done - and any plans that are set in motion, should have a solid long range plan on how we are going to get there, to back it up. One that includes planning for addressing some huge issues that are plaguing the city right now, such as housing, infrastructure, education, and of course health care – all of which have direct ties to economic development. We can’t just put a smile on our face, tell people we are a great place to live, and expect people to just be lining up to open up a business here.

Rob Boyd said it best - we need economic development and diversity - NOW. But it's going to take a lot more than just our own EDA to get it.

Finally, I have a real quick response in regards to the possible $300,000 reduction in taxes for the taxpayers of International Falls.

In 2008 we were certified to receive Local Government Aid (LGA) in the amount of $3,386,933. Now that total for 2009 is projected to be close to $4.2 Million. Now I know that for 2009 there has been a cap put on the amount that the city can levy - and that it essentially has bitten into that LGA increase. But something to think about:

Here is a quote from MPR back in June that quotes our City Administrator Rod Otterness, "Otterness says International Falls already runs a tight ship and an aid increase is badly needed. He says some of the city's streets and sidewalks are in rough shape and need fixing, but the city can't afford it.

"We had been expecting increased aid," Otterness said. "We had been deferring projects and spending some of our reserves in anticipation of increased aid. But now we're unable to take care of those deferred matters, because levy limits came along with it."

Well my response to that is this. If we are being fiscally responsible and running a "tight ship" - how do we allow ourselves to rely on LGA for almost 30% of our cities Operating Budget? What other expenses are taking priority over simple infrastructure such as maintaining our city streets and sidewalks? Now I am not an expert by any means on the ins and outs of how International Falls has been managed in the past in regards to fiscal and project responsibilities, and Rod Otterness is about as sharp as you can get when it comes to a government administrator. But some further investigation needs to be done.

So when the city dangles a $300,000 tax savings carrot in front of the tax payers (on an election year) - they realize at what price they are truly paying for that tax break. Is it more projects that are being deffered? Perhaps more city streets and sidewalks that are going to stay in rough shape? And god forbid we might want to consider that the state could possibly continue to make budget cuts in the coming years, and not only continues to cap the available levy for cities, but then also reduces the amount of LGA we receive. Leaning on the state for almost 30% of our budget just seems problematic – but maybe that’s just me.

It’s time that we take a good hard look at ourselves – and ask if we perhaps haven’t been operating this city, above our fair city’s ability to pay for it, and doing it with our eyes wide open.

~Allen Kruse