06-24-1991 Council Packet - Laserfiche WebLink

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:r f |v. m 5:.: f tr* . Ip r i ''-‘P ' " »-■r. m' cl m. &v:-'^ i- L>.. •r Ki.- Ste bonds off early. The impact of no tax increase relates to a 11.33 estimated tax capacity rate, a reduction from 11.865 in 1991, even with $200,000 for specials/bonds it would be 12.62. (These calculations do not adjust for the new classification charges.) The optional sales tax ($91,00^^ to Ocono) is used to '’buy down" the 3% to 2 1/2% valuation. If it does not go intv effect this will raise the City's tax capacity rate. Any significant loss of service contracts may require increases to offset net revenue losses. Extension of service contracts will generally provide positive increases in net revenue. In addition there will be other specific items that will be identified for the 1992 budget as staff goes through the process during the summer months for presentation to Council with the preliminary budget information. Given the legislative changes the City of Orono will be limited to essentially no increase in levy limits, there would be no penalty any more for exceeding the levy limit because the City has lost all of its Aid between the 1989 special legislative session and the 1990 regular legislative session. (The penalty for exceeding the levy lirats was a loss of aid at the $.37 for every dollar exceeded.) ALTERNATIVES 1. Accept the information. 2. Provide direction to staff if not in concurrance with their present direction. 3. Take no action. RECOMMENDATION - It is recommended that the Council accept the information directing staff to establish initial bugetary numbers for the Council for consideration at either the last meeting in July or the first meeting in August. PROPOSED MOTION - Moved by seconded by that Council accept the information directing staff to bring back initial tax and budget numbers at the first meeting in August. Ayes _, Nays cc: Department Heads f ft >