12-03-1990 Council Minutes Budget Hearing

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ORONO BUDGET PUBLIC HEARING MEETING HELD DECEMBER 3, 1990 • it already levies. I'm sure there are other taxes that I missed. If this is not enough to define a crisis situation, we have the County Auditor telling :is that property values in Downtown Minneapolis are going down. Also, considering the lack of market for high - priced homes, of which Orono has quit_ a few, our property values are also probably declining. If that is the case, we will have a lower tax base on which to carry the increasing tax load. I believe this describes an overall tax crisis, especially a property tax crisis. I believe it calls for crisis budgeting, yet not one level of government seems or wants to recognize that there is a crisis. Perhaps this is because they are all looking at their individual budget needs and do not see the big picture., Hopefully Orono will find a way to avoid adding to this crisis until the economy turns around, or property values increase again. What options does the City of Orono have to stop this escalating tax burden? Probably not much in the total picture. However, Council and City Staff does have the power to ease the pain for everyone a little. That may allow some homeowners, who have already reached their tax limit, or soon will, to keep their homes. Some of our neighbors are biting the bullet, or using other contingency funds to control their budget increases. I talked with the Mayor of Greenwood the other day to find out how they are able to have no tax increase. He told me that there are contingency funds. It is my understanding tha-c Orono may have • some contingency funds as well. As a last comment, everyone has heard the adage, you can't get blood out of a turnip, I truly believe that when the full impact of all government tax increases are felt, you will have hundreds of angry turnips asking why the City did not listen to them. If you vote to hold the line on the City budget, by cuts or the use of contingency funds, you can answer truthfully that you did your part to control the tax burden. IC you vote to add to the ever - growing tax load, I do not believe that anyone in the world would want to be in your shoes as you try to answer the complaints." Acting Mayor Callahan said, "As an analysis of at least two - thirds of the problems, I believe Mr. Farnham's comments were fairly accurate. Unfortunately, he did not analyze the situation in Orono very well." Mr. B-uce Feik, 2455 Carman Street, had a :question concerning the 1989 bond issue. He asked, "Of the amount due, how much is actually due now ?" Bernhardson replied, "We are trying to build up funds so that we can pay off the bond." Mr. Feik stated that he cannot pay off his house mortgage • 4 -