09-25-2023 City Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING September 25,2023 6:00 o'clock p.m. Walsh said it is fiscally responsible to budget for equipment replacement on a regular basis and this has been done for police and public works.He said it is responsible when the City has money available in funds where it will not be used to budget for these purposes. Olson said the City still has the funds to pay what it owes on the 2014 bond and would be reducing the levy for it one time because of already having the funds. Walsh moved,Johnson seconded,to adopt Resolution No. 7405 for the Reduce Debt Levy Requirement Series 2014A. VOTE: Ayes 3,Nays 1(Benson) 17. ADOPT 2024 PRELIMINARY TAX LEVY—RESOLUTION NO. 7406 Walsh explained that these are maximum amounts being adopted tonight. The City will adopt the final levy in December but cannot go higher than the amount set in September. Finance Director Olson added public comment would be received at the Truth in Taxation hearing on Nov. 27 and the final levy would be adopted at the Dec. 11,2023 meeting.He took the Council through the proposed general fund revenue and expenditure budget/levy line by line in a Power Point.The overall increase is proposed at 4.94 percent.The preliminary levy proposed this evening is$9,415,100,he said, and compared to 2023 it is an increase of$1,028,100 or 12.3 percent. Benson said the total for Orono Fire is $1.4 million which is 15 percent of the total tax levy for 2024. She said portions of some other funds are also related to the Orono Fire Department.If the costs for the Fire Department were not in the budget,taxes would be reduced on each home, she said. Walsh said that is a good point.The City could also reduce the amount for roads or public works and taxes would go down,he said. The purchases for the Fire Department need to be made whether for a new Orono Fire Department or the Long Lake Fire Department because this has not been done,he said. Benson said she agrees that fire has been underfunded in the past but feels that could have been rectified without starting a new department. Johnson moved,Veach seconded,to adopt Resolution 7406 for the 2024 Preliminary Tax Levy. VOTE: Ayes 3,Nays 1(Benson) 18. ADOPT 2024 PRELIMINARY GENERAL FUND BUDGET—RESOLUTION NO. 7407 Benson said again,this action to adopt the preliminary general fund budget includes the Orono Fire Department which is a costly venture directly impacting the general fund budget for 2024 including using a one-time public services grant. She explained how she arrived at the total for$1.4 million in the budget for the Fire Department. Walsh said the decision was made to allocate the grant to the Fire Department because the other departments are now properly funded and fire is where there is a need. Veach said she felt it was very important to bring up the real costs and the cost per household and be honest about it. She said the State of Minnesota ranks near the bottom of spending for Fire Departments. Page 6 of 13