09-08-2003 Council Packet - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, August 25,2003 7:00 o’clock p.m. (LMCD REPORT - LIU McMillan, Continued) Murphy maintained that the budget is available for additional deputies; however, the sheriffhas chosen to spend the money elsewhere. Ir. c!c;:r.g, > !;MiiIan reported tluit the 2002 V.’atcr Quality Analysis was completed and showed that high amounts of rainfall caused higher concentrations than usual of phosphorous in bays like Crystal Bay due to the flushing effect. PRESENTATION 3. 2002 COMPREHENSIVE ANNUAL FINANCIAL REPORT - Ken Malloy Ken Malloy, of the City ’s auditing firm, presented an overview of the 2002 Comprehensive Annual Financial Report. While he noted that the City still needs to obtain one broker’s certillcate, he pointed out that Orono follows state law and uses acceptable accounting practices. Malloy reported that since Orono has relied less on state aid over the years t is less impacted by cutbacks at the state level. WTiile the city cannot raise taxes to cover losses due to levy limits, Malloy indicated that Ormio is in good shape in comparison to other municipalities. He pointe '. out that, while market values continue to go up in Orono and the state, Orono has a very small tax rate growth as compared to state averages. Malloy noted that Orono produces an average rate of revenue, uses little state funding, and has a higher cost for public safety services, in particular, due to providing police service to other cities. These higher costs aic offset by the revenues received from the cities. He pointed out that the new reporting model which will take eflcct in 2 years will reflect the offsetting of revenues and expenditures more readily. He stated that the operating results, sewer operating fund, water fund, and other enterprise funds seem to be self sufficient. While the golf course operating fund has operated at a loss for two years, Malloy acknowledged that this is typical of w hat's occurred in other cities due to wet weather in previous years. Malloy reported that, due to new fraud standards in the industry, the auditing profession is trying to ask more questions of its clients, provide more communication, and leave no ‘stone unturned’ In conclusion, Malloy stated that Orono’s financial records were in very good condition, a credit to the people handling the City ’s records accurately. White recognized the City ’s accounting staff and administration for doing a great job for Orono. He noted that the 2004 budget would reflect a reduced budget. Murphy believed that Orono should be acknowledged for its accounting practices. He pointed out that, while no industrial area exists, the tax rate is extraordinarily low. which he believed was worth acknowledging. Page 4 of 14 4 i