12-03-2007 Council Packet Truth in Taxation

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� MINUTES OF THE TRUTH IN TAXATION HEARING HELD AT 6:30 P.M. ON MONDAY, DECEMBER 3, 2007 IN THE ORONO COUNCIL CHAMBERS Members Present: Mayor James White, and Council Members McMiilan, and Bremer. Staff Present: Finance Director Ron Olson, and Assistant City Administrator for Long- Term Strategy Mike Gaffron Mayor White called the meeting to order, and noted all members were present with the exception of Council Members Murphy and Rahn. He opened the hearing at 6:45 p.m. Robert Hanning, of 4220 6�h Avenue North stated that his total property taxes increased by 15%. He questioned why the City levy was increasing by 8%; an amount that is higher than inflation. He also questioned why his value was increased during a time of decreasing property values. The Council responded that they work hard at keeping a stable budget over time, pointing out that the tax capacity rate is decreasing. It was also pointed out the need for road projects were impacting this budget. Ron Esau, of 1230 Orono Oaks Drive asked where the Tax Capacity number comes from. Staff provided an explanation for the calculation of Tax Capacity. Gerald Pettis, of 744 Dickey Lake Drive indicated that his valuation increased by $90,000. Council suggested that he contact the assessor's office for information about his valuation and the appeal process. Mr. Esau asked why the budget for professional services was increasing by such a large percentage. Olson answered that the increase in professional services is due to the increased expenditures for legal and engineering consulting. Dave Runkle, of 2684 Casco Point Road, commented that employee wages were the largest share of the budget. He questioned if the IT position was needed, or if it could be outsourced or shared with other cities. Council responded that the city is careful when adding new positions. They discussed cooperative efforts with other cities for UB, inspections and police services. Mr. Hanning, asked how a 15% increase in his taxes could be justified. Council responded that as the Federal and State governments cut back on funding, the burden is falling on local governments. The Council indicated that they are very conservative when deciding to spend money. Mayor White announced that the final budget and levy will be adopted at the Final Budget Adoption hearing, to be held at 7:00 p.m. on Monday, December 10. There being no further public comments, Mayor White closed the hearing at 7:33 p.m.