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MINUTES OF THE 1993 BUDGET HEARING <br />CITY OF ORONO <br />HELD DECEMBER 1, 1992 <br />ROLL 1 <br />The Council met on the above date with the following members <br />present: Mayor Peterson, Councilmembers Gabriel Jabbour, Edward <br />Callahan and Mary Butler. J. Diann Goetten was absent. The <br />following represented the City staff: City Administrator Ron <br />Moorse, Public Works Director John Gerhardson, Zoning Administrator <br />Jeanne Mabusth, Finance Director Tom Kuehn, and City Recorder Teri <br />Naab. Mayor Peterson called the meeting to order at 7:00 P.M. <br />OPEN PUBLIC HEARING 7:00 - 8:03 P.M. <br />The Affidavit of Publication was noted. <br />Newell Weed presented the Council with information concerning <br />distribution of tax liability and State Aid. He stated Minnesota's <br />tax laws are based on the theory that all taxes paid are based on <br />the ability to pay. Due to great inflation in the past years, the <br />values of land in the suburban cities has escalated but incomes <br />have not to that degree. The tax system also ends up assessing more <br />tax liability to people with 'less ability to pay. He reviewed <br />slides on the Voss theory, which compares social security numbers <br />to reported income and taxes paid. He stated in 1993 the Homesavers <br />Circuit Breaker will be trying to cap property tax Ilability and <br />create a more fair distribution of State Aid. <br />Jabbour asked if commercial property is taxed in the same manner. <br />Weed stated commercial, rental and non - homestead property is taxed <br />in a different manner than residential. He noted the elderly, <br />disabled and lower income families are those in greatest need of <br />tax relief. <br />Mayor Peterson thanked Mr. Weed for his presentation. <br />4 <br />Moorse explained the Truth and Taxation meeting along with the <br />adoption of the City Budget is the final step in the process. He <br />stated this meeting is a way for property owners to get Information <br />on the impact of the tax assessed to their property. He explained <br />Orono started the budget process last April or May when the <br />Department Heads submitted budget information from which the <br />Administrator and Finance Director compiled a budget overview for <br />the Council to review. The Council then gave direction to staff on <br />changes. The Council adopted a proposed budget, which has been <br />distributed for review by property owners during this meeting. He <br />reported City staff has tried to reflect the economic situation and <br />the problems the City may encounter with regard to the State -level <br />