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ORONO BUDGET PUBLIC HEARING MEETING HELD DECEMBER 3, 1990 <br />City's representatives, John Burger, Gen Olson, and I am sure • <br />Steve Smith, have been very receptive to our concerns. It is the <br />people outstate and in majority districts represented by DFLers <br />that we need to convince." <br />Mr. Clark asked if the interest from investments from the <br />building fund will be included in the operating fund, or stay in <br />the building fund. <br />Bernhardson replied, "We are estimating that we will earn <br />$170,000 in interest on that money. We have a $102,000 transfer <br />back into the general fund. Wa are trying to lessen our transfer <br />amounts because we do not want to spend the money." <br />Mr. Gabriel Jabbour, 985 Tonkawa Road, stated that he <br />understood that the 8.5% tax increase for the bond pay off would <br />be used as a financial security measure. He said, "Though it <br />seems to be a good business practice, it is hard to determine <br />whether it is fair for the residents of Orono to pay taxes now <br />for future spending. At the time we are ready to spend this <br />money, some of these residents may not live in Orono. Is this a <br />common practice? I would also like to have the Administrator <br />address the 4.1% portion of the budget." <br />Bernhardson explained that the 4.1% increase in the general <br />fund budget is primarily due to expenditures in the personnel <br />area. He said, "Direct personnel expenditures and contracts • <br />constitute approximately 60% of that amount. Tnere is <br />approximately 3% to 4% included in the budget for inflationary <br />increases for salary schedule. The one position that we have <br />added this year is in the septic area. We do collect septic fees <br />and will be increasing those fees for the first time in ten <br />years. Part of that increase will be used to offset the new <br />position. Orono has approximately 1,000 septic systems <br />throughout the community. We are expecting that to increase to <br />1,500 to 1,700 over the next eight or ten years. The purpose of <br />the program is to forestall the need to have sewer in rural <br />areas. That is why this is looked on as an investment for <br />existing and future septic systems. With our existing personnel, <br />it has been difficult to provide the kind of service in this area <br />we would like. The purpose of the additional position is to <br />strengthen that service and avoid the need for costly sewer in <br />the long term. The position has been handled in the past by <br />Michael Gaffron and Lvle Oman. In the summer we have hired a <br />temporary person to assist." <br />Mr. Clark asked if the Council would opt to vote for a zero <br />budget increase. <br />Mr. Pete DuBois, 90 Myrtlewood, said, "This tax increase is <br />insignificant. There are a lot of tax increases happening at <br />this time. There is a recession coming; I'm a fairly young man <br />- 11 - <br />