12-13-1993 Council Minutes2 - Laserfiche WebLink

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MINUTES OF THE 1994 BUDGET HEARING CITY OF ORONO HELD DECEMBER 1, 1993 Moorse compared the Citv of Orono’s tax rate with other cities of Hennepin County with populations over 2.000. Orono was ranked the 4th lowest in 1993 and would be the 3rd lowest in 1994. Moorse discussed the staffing and compensation levels. There has been little change in the last few years The number of patrol officers and maintenance workers comprise signiticant numbers of the total employees. He noted that in 1992 there were 11 patrol officers and 3 lieutenants In 1993 that changed when a lieutenant position was eliminated and a patrol officer was added to increase strength on the street. He also pointed out that the temporary part-time employee numbers change due to elections (judges) in election years. Moorse exolained a chan relating to employee compensation. The enterprise fund is ^nded by fe-iS and not taxes. There is only a 1.5% total compensation increase (wages and benefits) trom 1993 to 1994. The Truth and Taxation law requires the City to provide a list of independent contractors. Moorse indicated that in die City's prosecution services, Orono is cooperating with several other cities to receive the serx ices of the City of Minnetonka's legal staff. All ot the police and radio dispatch is done through Hennepin County so the City doesn't have to provide 24 hour service. Fire protection is provided by four neighboring cities - Maple Plain, Mound. Long Lake and Wayzata. A number of maintenance and repair <. mtractors were also listed. Hurr asked how Moorse arrived at the ranking of Orono’s tax rate since other cities are also m the process of budget hearings. Moorse responded that this information was provided from the County on ’'proposed" budgets. Mayor Callahan noted the police depanment is the major cost of running the City, approximately one-third of the budget. This is a service that is also contracted out to the cities of Minnetonka Beach. Long Uike and Spring Park so there is some revenue generated from these contracts aniountinu to onc-third to onc-half ot the police budget. Mavor Callahan reiterated that the major increa.se in levy is due to a decrease in revenues, not an increase in costs. Tlie decrease in revenues was caused partly because ot the new buildmg. Funds were being accumulated for the building and the interest used tor the general fund. This has changed because money has been spent from the building fund for new comtmction and interest rates have dropped. Now the interest from the building tund needs to be kept in the building fund to assure there is funding tor the bond payments. Mayor Callahan explained thal che 1992 sewer Nmds are for the Stubbs Bay the Ctty s ponton of the cost of the sewer, lie continued that in recent years the City has