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Frontage Roads - Highway 12 (North/South) <br />water Tower - Highway 12 <br />City Facilities <br />- Undertaking a facilities improvement and any initial <br />financing of that undertaking. <br />- Continued exploration of user fees. <br />- No new programs requiring additional funding. <br />- Continued control of legal services expenditures. <br />REVENUES - <br />- Property tax revenue limits for 1989 include the 3% <br />levy limit cap plus 1/2 growth in the households which <br />for Orono will be about a 3.6% increase. The City is <br />expecting no addition in State Aids. This maybe reduced <br />to as little as 3%. <br />- Fees and Charges. It is anticipated that given the <br />inflationary rate that these charges should be increased <br />in the range of 4-5%. <br />INVESTMENTS- <br />- The higher interest rates for City investments, which <br />have been over 9% during 1989, may de\:rease to 8% during <br />1990 as inflationary pressures lessen. (The City's over <br />all investment return in 1988 was 8.4%.) <br />- Intergovernmental revenue will stay at approximately <br />the seune plateau. <br />UNDESIGNATED FUND BALANCE - <br />- For the 1989 budget the City placed $100,000 into <br />undesignated reserve for budget expenditures earmarked <br />for the building fund. This was done in partial <br />expectation of making a "reserve appeal" for 1990. This <br />avenue for increasing the City's levy base was not <br />continued for 1990. It is recommended however, that <br />another allocation be made for 1990 in case the appeal <br />will be available for 1991. <br />EXPENDITURES - It is anticipated that inflation for 1990 will be <br />in the 4% range. Given the levy limit of 3-3.6% and the funds <br />for current personnel, who are not at their position top step, it <br />is anticipated that a 2.5-3% increase in salaries will be all <br />that is financially feasable for 1990. This is in light of <br />increases in oil and other energy related expenditures plus <br />increases in health insurance that are anticipated to markedly <br />exceeded the base inflation rate.