12-14-1992 Council Minutes2 - Laserfiche WebLink

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^ I •I MINUTES OF THE 1993 BUDGET HEARING CITY OF ORONO C//y HELD DECEMBER 1, 1992 ROLL The Council met on the above date with the following members present: Mayor Peterson, CouncIImembers Gabriel Jabbour, Edward Callahan and Mary Butler. J. Oiann Goetten was absent. The following represented the City staff: City Administrator Ron Moorse, Pubi ic Works Di rector John Gerhardson, Zoning Administrator Jeanne Mabusth, Finance Director Torn Kuehn, and City Recorder Teri Naab. Mayor Peterson called the meeting to order at 7:00 P.M. OPEN PUBLIC HEARING 7:00 - 8:03 P.M. The Affidavit of Publication was noted. Newell Weed presented the Council with information concerning distribution of tax liability and State Aid. He stated Minnesota’s tax laws are based on the theory >*:hat all taxes paid are based on the ability to pay. Due to great inflation in the past years, the values of land in the suburban cities has escalated but incomes ha/e not to that degree. The tax system a iso ends up assessing more tax liability to people with less ability to pay. He reviewed slides on the Voss theory, which compares social security numbers to reported income and taxes paid. He stated In 1993 the Homesavers Circuit Breaker will be trying to cap property tax liability and create a more fair distribution of State Aid. Jabbour asked if commercial property is taxed in the same manner. Weed stated commercial, rental and non-homestead property is taxed in a different manner than residential. He noted the elderly, disabled and lower income families are those in greatest need of tax re Iief. Mayor Peterson thanked Mr. Weed for his presentation. Moorse explained the Truth and Taxation meeting along with the adoption of the City Budget is the final step In the process. He stated this meeting is a way for property owners to get Information on the Impact of the tax assessed to tneir property. He explained Orono started the budget process last April or May when the Department Heads submitted budget information from which the Administrator and Finance Director comp’led a budget overview for the Council to review. The Council then gave direction to staff on changes. The Council adopted a proposed budget, which has been distributed for review by property owners during this meeting. He reported City staff has tried to reflect the economic situation and the problems the City may encounter with regard to the State-level 1 J>