Laserfiche WebLink
2016 Budget – Page 1 <br />MEMORANDUM <br />To: Mayor McMillan and Orono City Council <br />From: Ron Olson, Finance Director <br />Subject: 2016 Budget <br />Date: June 22, 2015 <br /> <br />Attachments: <br />A) 2016 Budget Timeline <br />B) Tax Levy/Rate Graph <br />C) 2016 Year-to-Date Reports (Unadjusted) <br />D) Employee Compensation/Insurance Cost Summaries <br /> <br /> <br />Budget worksheets for the 2016 budget were distributed to departments on June 2. At this time, <br />departments have completed their initial budget worksheets. Meetings with the City <br />Administrator, Finance and individual departments are currently being held. The purpose of the <br />meetings is for the departments to justify their budget requests. The budget timeline and the <br />memo that was distributed the departments are included as attachment A. In addition to a base <br />budget, the departments were asked to provide recommendations for budgets scenarios involving <br />reductions or increases of 3%. <br /> <br />Prior to preparing a draft budget, staff would like the Council’s input in the areas of the tax levy <br />and spending priorities. This input will assist the Administrator and Finance Department in <br />determining which department funding requests to include in the draft budget. The draft budget <br />will be presented to the Council at the July work session. The Council’s input in July will be <br />used to prepare an updated draft budget which will be discussed at the August work session. <br />Input from the August meeting will be incorporated into a preliminary budget which will be <br />presented at the September 14th council meeting. The preliminary budget will be adopted on <br />September 28th. <br /> <br />2016 Budget Factors <br /> <br /> Revenue: <br />1) Property values have been increasing for the last couple of years. Last year’s increase <br />was 2.6%; the increase for 2015 (taxes collectable 2016) is currently estimated to be <br />4.0%. While property values themselves do not impact the City’s ability to set the <br />tax levy at a level needed to fund operations, the changing values do impact the City’s <br />tax rate. More information on the tax rate and levy can be found in attachment B. <br /> <br />