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CMP Part 4F. Public Services Plan <br /> TAXATION AND BUDGET <br /> The City's tatation goal is to provide maximum service at minimum cost. <br /> Real estate taxes currently provide 4�i°� 60% of Orono's municipal operating <br /> budget, yet the City only receives about �?°� 14.�% of each taxpayer's total tax <br /> bill, with the majority of real estate ta�es going to the school districts. In <br /> addition, the City in the past has been limited by State law- from increasing the <br /> level of annual levies more than a fiYed percentage over the previous year's rate. <br /> While levy limits are not currently in place, this is subject to change by the State <br /> Legislature. <br /> Tax and Bud�et Policies <br /> 1. The City� will fund direct benefit services on a user-fee basis. This <br /> includes sewer and water utility service, rural area on-site management <br /> inspections, building inspections, zoning applications and private <br /> development or improvement project reviews. These user fees will <br /> support staff and consultant expenses without cost to the taxpayer. <br /> 2. The City will levy sufficient taxes to support required services. <br /> Service levels will be maintained according to the desires of the citizens <br /> and the financial capability of the City, within any levy limitations <br /> imposed by the State. <br /> 3. The City will provide required income with the lowest possible tax <br /> rate. The City will not levy taxes any higher than absolutely necessary to <br /> support the desired ]evel of services. Despite inflation, the Council will <br /> each year try to maintain the same rate as the past year or lower the rate if <br /> at all possible. <br /> 4. The City will limit bonded indebtedness. Debt service is a major <br /> portion of any budget. The Council will try to limit bonded indebtedness <br /> so as to avoid future general tax liabilities. <br /> Bondin� and Assessment Policies <br /> 1. All bonds issued will be for physical improvements. The City will not <br /> bond for operating expenses. <br /> 2. Special improvement costs will be assessed against the benefited <br /> properties. The assessments will be levied sufficiently to cover all <br /> principal, interest and service charges. Assessment formtilas will be <br /> established so as to be as fair as possible to all affected property owners. <br /> While a great majority of previous bonded improvements in the City have <br /> City of Orono Community Management Plan 2008-2030 Page 4F-47 <br />