12-12-2016 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO TRUTH -IN -TAXATION MEETING and the ORONO CITY COUNCIL MEETING Monday, December 12, 2016 6:30 o'clock p.m. 1. 2017 BUDGET HEARING — RESOLUTION NOS. 6704, 6705, 6706, 6707 (continued) McMillan stated in order to reduce the levy to 5 percent, they are looking to reduce the Pavement Management Fund by $150,000. Olson noted the levy increase previously discussed in September was at 5.19 percent. Part of that increase would have realized a savings on the refunding of the bonds that was factored into it, which would have resulted in a total levy increase of $180,000 in the General Fund and $77,000 in the Debt Service Fund. McMillan stated she would like to see a total of $250,000 or $300,000 in the Pavement Management Fund with the levy. McMillan stated if the City continues to experience growth, the fund will increase each year. Olson stated if $70,000 is added, it would increase the fund balance to approximately $250,000. Levang stated the fund would go from $401,500 to $253.500. Olson noted the Pavement Management Fund currently has $183,000 in it. Levang asked how Staff would prefer the motion. Olson recommended the Council make a motion approving the tax levy with the change in the pavement management levy to $253,000. City Attorney Mattick stated the pavement management levy would move from $401,000 to $253,000 even and that Staff will reflect that reduction to the overall levy in the resolution. Levang moved, Cornick seconded, to adopt RESOLUTION NO. 6704, a Resolution Adopting the Final 2016 Tax Levy Collectible in 2017, to reduce the Pavement Management Levy to $253,000, and to direct Staff to carry that levy forward to a total. Walsh stated he would reiterate that this is Mayor McMillan's parting shot to Orono, which is saying that roads are not important. Walsh stated in future conversations, they will all remember this. Walsh commented the Mayor is throwing Fox Street under the bus as well as other future roads that would have been done. Walsh stated in his view it is a sad way to go, but when they have three votes, they can make those decisions. Walsh stated this is a perfect example of why the people of Orono wanted a change. McMillan commented she has not changed her stance since September and that the City has been able to get a number of roads done in Orono over the past six years that she has been on the Council. McMillan stated she disagrees with Council Member Walsh but that he is entitled to his opinion. Printup noted three months ago they had the votes for the $401,500. Printup asked what happened in the past three months to change the vote. Page 6 of 33