10-06-2001 Council Work SessionA

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TO;Mayor and City Council FROM:Ron Mimrse. City Administrator DATF.:September 4,2001 SIIIUECT:2002 Preliminary' Budget Update 6) Al ils August 14 work session, the Council made a number o!\.hanges to both the expenditure and revenue sides of the proposed 2(K)2 budget. These changes were as folloxs^: 1. Legal serx'ice expenditurcs were reduced by S1 4.000. llie proposed budget included a $14,000 increase in legal scrx ice expenditures to reflect recent large costs related to defcndini; and enforcing the city's zoning regulations. The Council revised the budget proposal to maintain the legal scr\ ice expenditures at the 2001 budget level. 2. The Council eliminated the S1 0,000 expenditure for the Navarre vision process, with direction that stolT pursue opportunities for funding through grants. 3. Ihe Council eliminated the $45,000 levy for stormwater improvements, and directed stall to men e forward with the process of establishing a stormwater utility and fee as on alternate revenue s^iurce. Revised General Fund Budget and Proposed Tax Levy After making the changes listed aben e. the revised 2002 budget and lax levy numbers are os follows: (icneral f und expenditures • $4,557,470 (iencnil I'und expenditures - dollar increase • $267,030 Cieneral I-und expenditures - percentage increase - 6.22% Pa>posed 2002 lax levy excluding MAC A lew - $2,566,705 lax levy increa.re excluding IIACA lew - $123,355 Tax lc\y percentage increase (excluding HACA lc\y ) - 5.05% Proposed 2(X)2 lax Icxy including HACA lc\y* - $2,876,335 Tax levy including HACA levy - dollar increase - $432,085 Tax levy including HACA levy - percentage increase - 17.72% Budget Summary Although a 6.22% General Fund expenditure increase is a significant increase, it is not excessive given the competitive but reasonable increases in pay and benefits reflected in the budget, und the substantial cost increases being required by other agencies that provide ser\ ices to Orono.