The St. Paul has an interactive Budget Cruncher on its site that allows citizens to try to balance the city budget. It has a Windows 98-style interface and doesn't give you much to work with. (Can't touch administrative overhead or raise more than property taxes and fees.) But maybe that's today's reality.
As Steven Clift notes, the site could use a link to a citizens' issues forum to discuss the implications, but in all, a nice try using the web for public engagement.
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