08-14-1995 Council Packet - Laserfiche WebLink

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TO: FROM: DATE: Mayor and City Council Ron Moorsc, City Adminisifalor August 11, 1995 SUBJECT: Budget Overview Update The attached tables show changes in fund balances, tax levy and txx capacity rate to reflect direction provided by the Council at the July 26 budget work session. The first table. General Fund Changes In Fund Balance, shows increases in several designated uses of the General Fund Reserve. The designation for HACA reduction has been increased from $50,000 to $100,000. A new designation for potential police contract revenue reduction has been added in the amount of $100,000. The designation for working capital has been increased from $850,000 to $925,i:i:» In addition, $50,000 of General Fund Reserves have been transferred to the Permanent Improvement Revolving Fund for the development of a storm water management plan. Also, $50,000 of reserves from the General Fund have been transferred to the Permanent Improvement Revolving Fund for storm drainage projects. The redesignation and transfer of General Fund Reserves has reduced the amount of un-designated General Fund Reserves from $365,883 to $37,383. The second table shows changes in the fund balance of the Permanent Improvement Revolving Fund. The fund balance has been increased through a tax levy of $40,000 and a transfer of $100,000 from the General Fund Reserves. The $40,000 tax levy along with a $50,000 transfer from the General Fund have been designated for infrastructure (storm drainage projects). An additional $50,000 transfer from the General Fund Reserve has been designated for the storm water management plan. Table #3. Citv of Orono Tax Levies, shows the net tax levy increasing by $64,670 or 3.21% for 1996.’ This reflects the initiation of a 2% or $40,000 levy to address long term fiscal issues, primarily infrastruemre. Table #4 shows that the 3.21 % tax levy increase, in combination with the increase in tax capacity (valuation of propeny) of over $1 million or 8.39%, results in a reduction in the city’s tax capacity rate of 2.78%. Table ttS shows that the proposed tax levy and tax capacity rate result in a 4.9% reduction in taxes on residential property.