01-14-2019 Council Packet - Laserfiche WebLink

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MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday, December 10, 2018 6:30 o’clock p.m. _____________________________________________________________________________________ Page 3 of 19 As it relates to the General Fund expenditures, the 2019 budget is projected at $8,577,280, which is an increase of $383,879 over the 2018 budget. This increase is the result of a $95,000 increase in Personal Services and a $100,000 increase in Contingency. The increase in Personal Services is due to step increases and a COLA increase of 2.5 percent for union and non-union employees. The fire department is at 5 percent of the budget and building and zoning is at 8 percent of the budget. Olson stated cities and governments in general are service organizations, and as a result, the number one cost to the city is personnel services. Olson stated if a city wants to make significant decreases in a city budget, it typically has to come out of personnel. The City Council will also be adopting special revenue funds tonight that have a dedicated revenue source. The special revenue funds that budgets are adopted for are the Park Fund, the Drug Forfeiture Fund, and the TIF Fund. Special revenue funds by definition have a primary source of revenue that is dedicated for a specific purpose. The Park Fund receives Park Dedication fees collected from developers. By state law, those funds must be used for parkland acquisition and development. The Drug Forfeiture Fund receives its primary funding from the Police Department’s drug and alcohol enforcement activities. The funds must be used for drug and alcohol related activities. The TIF Fund is used to account for revenues related to the Orono Woods Senior Housing Development. The 2019 levy for debt service is $711,000. This levy is used to pay the debt service on the City’s outstanding bonds. Under the Enterprise Funds, the Water, Sewer, Stormwater and Recycling Funds are designed to account for the business type activities of the City. These funds do not receive any property tax revenue. The goal for the Enterprise funds is to be fully funded by rates without depending on special assessments for infrastructure improvements. The utility rates are approved annually as part of the fee schedule. The utility rate increases being recommended are 11 percent for water, 4 percent for sewer, 10 percent for stormwater, and 11 percent for recycling. With the exception of the water rate increase, the utility rates will be approved tonight as part of the 2019 Fee Schedule. Olson stated the 2019 budget information will be available on the City’s website or people may call him at call hall. Staff recommends approval of the 2019 General Fund budget, the 2019 property tax levy, the 2019 special revenue fund budgets, and the 2019 enterprise fund budgets. Walsh noted the City is also making sure that the City’s utility funds stand on their own and are fully funded in addition to funding road improvements. Seals suggested the graphs be sent out over social media as well as being on the City’s website. Olson stated Staff has been working on a citizens’ budget. The idea behind that budget is to take all this information and boil it down to key points, which will also be on the website and in the next city newsletter. Mayor Walsh opened the public hearing at 6:55 p.m. There were no public comments.