12-01-1993 Council Minutes Budget Hearing

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MINUTES OF THE 1994 BUDGET HEARING CITY OF ORONO HELD DECEMBER 1, 1993 Moorse compared the City of Orono's tax rate with other cities of Hennepin County with populations over 2,000. Orono was ranked the 4th lowest in 1993 and would be the 3rd lowest in 1994. Moorse discussed the staffing and compensation levels. There has been little change in the last few years. The number of patrol officers and maintenance workers comprise significant numbers of the total employees. He noted that in 1992 there were 11 patrol officers and 3 lieutenants. In 1993 that changed when a lieutenant position was eliminated and a patrol officer was added to increase strength on the street. He also pointed out that the temporary part-time employee numbers change due to elections (judges) in election years. Moorse explained a chart relating to employee compensation. The enterprise fund is funded by fees and not taxes. There is only a 1.5 % total compensation increase (wages and benefits) from 1993 to 1994. The Truth and Taxation law requires the City to provide a list of independent contractors. Moorse indicated that in the City's prosecution services, Orono is cooperating with several other cities to receive the services of the City of Minnetonka's legal staff. All of the police and radio dispatch is done through Hennepin County so the City doesn't have to provide 24 hour service. Fire protection is provided by four neighboring cities - Maple Plain, Mound, Long Lake and Wayzata. A number of maintenance and repair contractors were also listed. Hurr asked how Moorse arrived at the ranking of Orono's tax rate since other cities are also in the process of budget hearings. Moorse responded that this information was provided from the County on "proposed" budgets. Mayor Callahan noted the police department is the major cost of running the City, approximately one -third of the budget. This is a service that is also contracted out to the cities of Minnetonka Beach, Long Lake and Spring Park so there is some revenue generated from these contracts amounting to one -third to one -half of the police budget. Mayor Callahan reiterated that the major increase in levy is due to a decrease in revenues, not an increase in costs. The decrease in revenues was caused partly because of the new building. Funds were being accumulated for the building and the interest used for the general fund. This has changed because money has been spent from the building fund for new construction and interest rates have dropped. Now the interest from the building fund needs to be kept in the building fund to assure there is funding for the bond payments. Mayor Callahan explained that the 1992 sewer bonds are for the Stubbs Bay sewer project for the City's portion of the cost of the sewer. He continued that in recent years the City has - 1-r, 11- s