11-29-1994 Truth in Taxation Hearing Packet

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L TO:Mayor and City Council FROM:Ron Moorsc. City Administrator DATE:November 16, 1994 SUBJECT: 1995 Budget and Tax Levy The proposed 1995 budget reflects an effort to hold the line on funding for current services whUe positioning the city to address a number of long term issues with substantial fiscal impacts. FtXPCndilurffili T*ax Capacity Rate Although the overall city budget has been reduced for 1995; the General Fund Budget, which most affects the tax levy, has been increased by 2.9%. General Fund expenditures have increased from $3,152,668 in 1994 to $3,245,015 in 1995. The tax levy required to fund the 1995 budget is $2,016,170. This is an increase of $39,534 or 2.0% over the 1994 levy of $1,976,636. The tax capacity rate required to generate the proposed tax levy Is 15.550%. This is a reduction of .702 or 4.32% from the 1994 ux capacity rate. Impact of Budget on Residential Propeflies The proposed budget and tax levy result in a reduction in the city ’s share of the property tax bill. Table C shows the tax levy impact on homes valued at $100,000, $200,000 and $300,000. For a home valued at $100,000 the city share of the property tax bill decreases from $208.03 in 1994 to $199.05 in 1995. This is a reduction of $8.97 or 4.3%. Program Highliflhts __ Although the 1995 budget is fiscally conservative it does address a number of program needs. These are as follows: 1. The addition of a I6th police officer to substantially improve police coverage for Orono as well as those cities to which the Orono Police Department provides services. 2. The expansion of the curbside recycling program to include the collection of phone books, mixed paper (junit mail), and non-hazardous content aerosol cans. 3. The first phase of a three year water plant rehabilitation project 4. The first phase of a two year pavement management program 5. The development of a park and open space master plan. 6. The upgrade of three sewer lift stations