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) Levang stated there was no shift and that they proposed this same amount in September. Printup indicated he is simply asking if he could have an explanation for the change in the vote from three months ago. Printup stated he had the understanding the 8.1 percent levy increase was voted on 3-2 back in September. Walsh stated the change was Council Member Cornick. McMillan stated for years the City Council tried to keep the City's tax rate the same, but now that the City's tax capacity rate is increasing with the new developments and increased property values, the City's revenues are going up. McMillan stated the City has reached a point where the home values are appreciating and that the City's tax rate could go down. McMillan noted 17 percent is on the higher end of what Orono historically has been and that at some point the City Council needs to get the tax rate down. McMillan stated she has never wanted to keep the tax rate up at 17 percent unless there was some extraordinary circumstance and that the City is now in a position where they can back off the tax rate since the City is growing again. Printup commented he understands that but he does not understand the reason for the change in the vote from September. Walsh noted even with an 8.1 percent levy increases, the City's tax capacity rate is going down and that individual property owner's taxes are going down. Walsh stated if the Mayor is going to be fiscally responsible, she cannot talk out of both sides of her mouth. Walsh noted they went half a million dollars over budget on the police department garage and have spent half a million dollars on Big Island. Walsh stated he is trying to get the roads done that people drive on and that the levy decrease will come directly out of the road fund. McMillan stated there is money in the Pavement Management Fund and additional money will be put into the fund as a result of the levy. McMillan commented road improvements will get done just like they have been done for the past few years but maybe not the roads that Council Member Walsh wanted to get down. Levang stated the Council has to take into consideration the fact that the City is growing and that a number of houses are being added to the City's tax base. Levang stated that needs to be taken into consideration when putting the City's budget together. Levang commented it is fair to all taxpayers that the City uses the money as it is designated to be used and that it is not fair to continue to keep increasing the tax levy. Levang stated they have attempted to keep the levy as flat as possible over the past six years and that the plan that was presented in September does that, which is what three of the council members would like to do. Levang stated they have a difference of opinion. Levang stated she does not want to see her taxes go up and that the Council has no control over what happens at the school as well as at Hennepin County. Levang stated she is committed to not increasing city taxes and that they have to take into account the fact that everyone is going to be paying more because of the school referendum and Hennepin County. Page 7 of 33