11-29-1995 Council Minutes Truth in Taxation

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CITY OF ORONO PUBLIC HEARING TRUTH IN TAXATION HEARING MINUTES FOR NOVEiv1BER 29, 1995 • ROLL The Council met on the above date with the following members present: Mayor Edward Callahan, Jr., Council Members; Charles Kelley, Gabriel Jabbour and JoEllen Hun. Representing Staff were City Administrator Ron Moorse, City Finance Director Tom Kuehn, Assistant Finance Director Chris Miller and City Clerk Dorothy Hallin. Council Member J. Diann Goetten was absent. Mayor Callahan called the meeting to order at 7:00 p.m. Curt Quady was present and stated he had no comments and left the meeting. Mayor Callahan stated the public would have an opportunity to make comments and asked Moorse to outline the budget. Moorse stated the purpose of this Truth in Taxation hearing is to provide information about the 1996 budget that is proposed to be adopted and take any comments from the public regarding the budget. The General Fund Budget, which has the most impact on the tax levy, is increasing 3.17 %. The 1996 Budget will be $3,347,755. The tax levy that is required to fund the total 1996 Budget is $2,080,840 which is a 3.21% increase over the 1995 levy. The increase in the tax levy is due to $40,000 being levied to begin an infrastructure replacement fund. Because the city's tax base has increased significantly, the proposed tax levy will actually result in a reduction in the city's tax capacity rate. It will go from 15.604 % to 14.843 % which will keep • Orono's tax rate as one of the lowest in Hennepin County. The impact of this budget on residential properties, based on the reduction in the tax rate, will actually be a reduction in the city's share of the property tax of about 4.9 %. This budget basically retains services, and the expenditures for services, at their current levels. It also starts to address some long term issues along with several current program needs. The long term issues are the infrastructure funding (roads, bridges, and storm water drainage) and funding for the storm water management plan. The program needs that the budget addresses are; recodification of the city's ordinances, computerized mapping, employee recognition, update of the city's pay structure, continuation of the multi -year water plant rehabilitation project, continuation of the sewer infiltration and inflow reduction effort and the continuation of a multi- year sewer lift station replacement program. The tax dollars collected from Orono residents is divided among various taxing jurisdictions as follows: 1. City 11.8% 2. Hennepin County 30.7 % 3. School District 51.0% 4. Miscellaneous taxing districts 6.5% A breakdown of the 1996 Tax Levy shows the biggest portion is for police operations at 29.4 %, • then general government at 25.5% (administration, finance, central services, and recycling). Street maintenance is 11.4% and debt service is 18.9%. The debt service includes various 1