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MINUTES OF THE <br />ORONO CITY COUNCIL MEETING <br />Monday, July 22, 2019 <br />7:00 o'clock p.m. <br />FINANCE DIRECTOR REPORT <br />10. SECOND QUARTER FINANCIAL REPORT <br />Olson provided a recap of the City's second quarter financials, noting that these numbers are unadjusted <br />at this time. <br />As it relates to the City's revenues, 52 percent of that consists of property taxes. Licenses and permits are <br />at 69 percent of budget. Last year the City was at 84 percent of the budget at the same time, primarily due <br />to the school project. Police service contracts are at 85 percent of the budget. Charges for services <br />consists of the police service contract as well as other items. The golf course is at 52 percent for the year. <br />Olson indicated he is not sure how that portion of the budget will end up at the end of the year due to the <br />poor weather at the beginning of the season. Interest is not allocated to all the funds until the end of the <br />year, which is why those numbers are low at this time. Based on these numbers, it is anticipated the City <br />will end up between 102 and 104 percent of revenue unless something unexpected happens. <br />Expenditures through the first half of the year are also within budget. The majority of the departments are <br />either just above 50 percent or just under 50 percent, which is where they should be for this time of year. <br />The only budget that is slightly concerning is the Public Works Department, due largely to the heavy <br />snowfalls experienced this past winter. The golf course is at 56 percent of budget at this point and that is <br />related to a significant amount of money being spent at the beginning of the year getting the course ready <br />to open. Overall the City is at 49.76 percent of budgeted expenditures. <br />Olson reviewed the top ten vendors for the second quarter. GMS Asphalt was the number one vendor for <br />the second quarter as a result of the 2019 street improvement projects. The second top vendor was the <br />League of MN Cities, followed by Health Partners, sewer charges and fire service, the Metropolitan <br />Council Environmental Services for wastewater and SAC charges, Bolton & Menk, and Dodge of <br />Burnsville. <br />Seals asked if the City has looked at the market recently to compare rates for health insurance. <br />Olson indicated Staff has not done that at this point and that the City has to provide Logis with a six- <br />month notice if the City will be using another service. Logis is a consortium of approximately 20 cities <br />that have gotten together for health insurance. Bids are obtained every four or five years. In the past <br />there has been two providers but within Logis there are a number of different plans cities can choose <br />from. A few years ago the City went to a high deductible plan in an effort to save money on premiums. <br />Seals asked if there is a way to have Logis look at their options more often than every four to five years. <br />Olson stated the decisions made by Logis are made by their executive board and that Orono has <br />membership in the group, along with the other cities. <br />Seals commented it seems like this item consistently goes up and that the City should indicate to Logis <br />that they are not meeting their expectations. <br />Olson stated to his knowledge this is the year Logis will be going out for bids and by next June the new <br />bids should be in. The most likely place the City could obtain insurance through is called PEIP, Public <br />Page 2 of 10 <br />