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ORONO BUDGET PUBLIC HEARING MEETING HELD DECEMBER 3, 1990 <br />■k: <br />it already levies. I'm sure there are other taxes that I missed. <br />If this is not enough to define a crisis situation, we riave tne <br />County Auditor telling :s that property values in Downtown <br />Minneapolis are going down. Also, considering the lack of market <br />for high-priced homes, of whicn Oroao has quite a few, our <br />pj^operty values are also probably declining. If that is i_he <br />case, we will have a lower tax base on which to carry the <br />increasing tax load. I believe this describes an overall tax <br />crisis, especially a property tax crisis. I believe it calls for <br />crisis budaeting, yet not one level of government seems or wants <br />to recognize that there is a crisis. Perhaps this is because <br />they are all looking at their individual budget needs and do not <br />see the big picture. Hopefully Orcno will find a way to avoid <br />adding to this crisis until the economy turns around, or property <br />values increase again. <br />What options does the City of Orono have to stop this <br />escalating tax burden? Probably not much in the total picture. <br />However, Council and City Staff does have the power to ease the <br />pain for everyone a little. That may allow some homeowners, who <br />have already reached their tax limit, or soon will, to keep their <br />homes. Some of our neighbors are biting the bullet, or using <br />other contingency funds to control their oudget increases. I <br />talked with the Mayor of Greenwood the other day to find out how <br />they are able to have no tax increase. to^d me that there are <br />contingency funds. It is my understanding that Orono may have <br />some contingency funds as well. <br />As a last comment, everyone has heard the adage, you can't <br />get blood out of a turnip, I truly believe that when the full <br />impact of all government tax increases are felt, you will have <br />hundreds of angry turnips asking why the City did not listen to <br />them. If you vote to hold the line on the City budget, by cuts <br />or the use of contingency funds, you can answer truthtully that <br />you did your part to control the tax burden. If you vote to add <br />to the ever-growing tax load, I do not believe that anyone in the <br />world would want to be in your shoes as you try to answer the <br />complaints." <br />Acting Mayor Callahan said, "As an analysis of at least two- <br />thirds of the problems, I believe Mr. Farnham's comments were <br />fairly accurate. Unfortunately, he did not analyze the situation <br />in Orono very well." <br />Mr. Bruce Feik, 2455 Carman Street, had a question <br />concerning the 1989 bond issue. He asked, "Of the amount due, <br />how much is actually due now?" <br />Bernhardson replied, "Vie are trying to build up funds so <br />that we can pay off the bond." <br />Mr. Feik stated that he cannot pay off his house mortgage <br />- 4