Agenda Packet Cc - special meeting 9/27/1989

Home Browse Search

TOt Mayor and City Council PROMt Hark E. Bernhardson, rity Administrdtor DATEt June 20, 1989 t SVBJECTt Budget Guidelines 1990 (Revised) Attachment: A. City of Orono Statistical Chart Updated 5/89 ISSUE - Presentation of general guidelines for Council review, comment and amendment for the upcoming 1990 budget year. INTRODUCTION - As was done last year preliminary guidelines are again presented to Council for review and comment in the early part of the budget process. This is done again to solicit from Council priorities, guidelines and issues that they feel are importaWt for the upcoming budget. ( ,The City will take the State mandated Truth in Taxation for the first ti;. Ing the 1990 budget. Because of the complex nature of is implementing it, the State Legislature has modified some , the features and the timeframes for payable 1990. The Governor chose to veto the bill and the time lines to be followed are pLesently uncertain. To be safe however, the City should set its mill rate by -August 10, 1989 and notices will be sent out to the taxpayers as to the impact of that budget during September - October 1989 with public hearings to be held in the October - November tlmeframe. (This may be altered as the State provides additional information. It ma} be subject to whether a special session is held.) Because of the levy limits established by the State and the fact that they have twice in the past eight years limited cities to their previous years actual levies, it would be prudent for Orono together with the other cities in the State to levy their maximum in older to retain �tflexibility in the future. In addition the levy limit astablishm-tnt for 1990 will be substantially below the anticipated inflation rate. . i DISCUSSION ECONOMIC OUTLOOK - The United States economy continues to expand at ower rates although the expected recession is still not on the horizon. Positive notes have included the decreasing trade deficit because of expanded axports toge►%se: with efforts to slow down growth through into e.t rates. The negative signs however, have been Inflation rates for 1988 of 4.41, and anticipated Inflation rate for 1989 above 51 with little decrease anticipated for ?990. Recent leadinq economic indicators continue showing some strength for the continued growth in the economy. Although effor�-s to sl,w inflation have also tended to limit economic growth. While the trade deficit has shown improvement in recent months, a worsening of that because of a stronger dollar together with the Federal deficit not being dealt with could hr4 tF i ee t 1 TO: Mayor and City Council FROM: Mark E. Bernhardson, City Administrato\` DATE: September 19, 1989 SUBJECT: Proposed Budget Commentary on Initial Guidelines (Revised) Dated 6/20/89 t , The City has set the necessary levies as specified in the original law. Based on the information received from the State Department of Revenue, October 9th has been set for the required Public Nearing. The budget may either be adopted that evening or tabled until the October 23, 1989 meeting. It may be prudent to wait pending any special session. The levy needs to be certified to the County by November 9, 1989. 9