06-26-1989 Council Packet - Laserfiche WebLink

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52289.4(36) tS) ;Cj«U33 Mavor amMayor and City Council FROM: Mark E. Bernhardson, City AdministratoiSA^ ^ 1989 SUBJECT: Budget Guidelines 1990 (Revised) Attachment: A. City of Orono Statistical Chart Updated 5/89 ISSUE - Presentation of general comment and amendment for the upcoming 1990 budge y INTRODUCTION - As was done last year again presented to Council for review and comment cart of the budget process. This is done again to solicit from Council priorities, guidelines and issues that they feel are important for the upcoming budget. The City will undertake the State mandated Truth in ffx the firU time during the 1990 budget. Because of tjie complex nature of it in implementing it, the State ^®9islature has modified some of the features and the timeframes for payable 1990. The Governor chose to veto the bill and the be followed are presently uncertain. To be safe however. City should set its mill rate by August 10, 1989 and be sent out to the taxpayers as to the impact of during September - October 1989 with public hearings be held in the October - November timeframe. (This may be altered as State provides additional information. It ®*y ‘>®ts whether a special session is held.) Because of the levy limits established by the State and the fact that they past eight years limited cities to their previous /ears actual levies, it would be prudent for Orono together with bh« other cities in the State to levy their maximum in order to ratal flexibility in the future. In addition the levy limit establishment for 1990 will be substantially below the anticipated inflation rate. discussion - ECONOMIC OUTLOOK - The United States economy continues to expand at slower rates although the expected recession is ®till not on the horizon. Positive notes have included ^he decreasing trade deficit because of expanded exports together with efforts to slow torn growth through interest rates. The "®^®J=^^® !^^ns have been inflation rates for 1988 of 4.4%, and inflation rate for 1989 above 5% with little decrease for 1990. Recent leading economic indicators ®°"tinue showing some strength for the continued growth in the economy, although efforts to slow inflation have also tended to limit growth. While the trade deficit has shown Improvement ^«®®"| months, a worsening of that because of a stronger dollar together with the Federal deficit not being dealt with could bring the