09-24-2018 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 24,2018 7:00 o'clock p.m. 8. ADOPT PRELIMINARY 2019 TAX LEVY RESOLUTION 6901 9. ADOPT PRELIMINARY 2019 BUDGET RESOLUTION 6902—Continued focused on public safety. As it relates to other expenditures,the mayor and council fund is being decreased by$51,000 and administration is increasing by$109,000. Those changes reflect some shifts in a few of the items that have historically been budgeted to other departments. The mayor and council portion of the budget is going down $51,000 because it was determined that the LMCD fee would be better paid through the Stormwater fees rather than the General Fund. The police department is increasing by$153,000 but that consists of a 2 percent wage increase. Otherwise most line items have stayed pretty much the same. The 2019 preliminary tax levy and budget is one of the most important items to be approved by the City Council. Once it is adopted, it cannot be increased but it can be decreased before final adoption in December. Olson noted approximately$4,380,000 has been allocated to the General Fund and$544,450 for the Pavement Management levy. Olson noted this City Council has made it a goal to find a funding source for road projects,which is the purpose of the levy. As it relates to debt service on bonds,the City's total obligation is $711,000 per year and it will stay at that level for the next four years. Olson displayed a pie chart illustrating the breakdown of a resident's property tax dollars for Orono and other cities. Most cities average around 29 percent, schools at 29 percent, and the county at 29 percent. Orono's city tax share is only about 15 percent of someone's property tax bill,with 37 percent going to the schools and 40 percent to Hennepin County. Olson noted Orono's tax rate has remained relatively the same over the past number of years. Based on the latest information from the County,the City's tax capacity rate will decrease from 16.555 to 16.521 percent. Walsh stated when the City's tax capacity level stays the same or goes down and the value of your house stays the same, a person's city taxes will stay the same. Walsh noted Orono has not raised taxes for two years in a row. In addition,the City has also been paying off its debt at approximately$1 million a year. Over the next four years,the City's bond total will go down$380,000 in four years so that money will be able to be allocated elsewhere. Walsh stated in his view the Council has done a great job at budgeting its money but yet, at the same time, getting a number of road projects done. Seals requested police and fire be separated in the future on the chart since the fire department only consists of 10 percent versus the police department at 90 percent. Crosby moved,Dankey seconded,to adopt RESOLUTION NO. 6901,a Resolution Adopting the Preliminary 2018 Tax Levy Collectible in 2019,and to adopt RESOLUTION NO. 6902,a Resolution Adopting the Preliminary General Fund Budget for 2019. VOTE: Ayes 4,Nays 0. MAYOR/COUNCIL REPORT Crosby stated he is pleased the City will be reappointing Mark Kroll to the LMCD. Crosby stated the important thing for people around the lake and community to know is that the City of Orono is very concerned about the status of Lake Minnetonka and that they want to take the lead in cleaning up Lake Page 3 of 5