01-11-2016 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, January 11, 2016 7:00 o'clock p.m. 2. REGULAR CITY COUNCIL MEETING OF DECEMBER 14, 2015 (continued) Printup moved, Levang seconded, to approve the minutes of the Orono City Council meeting of December 14, 2015, as submitted. VOTE: Ayes 5, Nays 0. PRESENTATION 3. STATE REPRESENTATIVE JERRY HERTAUS Jerry Hertaus addressed the Orono City Council regarding the 2015 legislative session and what is anticipated to occur in 2016. Hertaus reported during the last legislative session, the education omnibus bill was vetoed by Governor Dayton, which led to a special session. The two major areas of government funding that did not occur in 2015 was the passage of a tax bill and a transportation bill due to a partisan divide. Hertaus noted 2015 revenues were coming in ahead of forecast and so a number of legislators felt that revenues should not be raised. The collection of revenues continues to show a surplus and the forecast is that there will be a $1.8 billion surplus in 2016. Hertaus noted in 2014, the MN Legislature offered a bill that required one-third of the November forecast be transferred to the state's reserve fund. The Office of Management and Budget recommends a reserve of $2 billion based on the size of the state government. With the November forecast, money was transferred from that $1.8 billion,to the reserve fund, which brought it up to approximately $1.6 billion or 75 percent fully funded. Hertaus stated as a result of that transfer, the surplus is expected to be approximately $1.2 billion. Hertaus stated today the Minnesota Department of Revenue released that the November and December revenue is ahead by approximately $50 million. Hertaus noted sales tax revenues were down quite a bit, even during the holiday shopping season, which raises some concern that the economy is not quite as robust as the statistics say it is. Hertaus stated going into the 2016 legislative session, it is his feeling a transportation bill will be passed this year as well as some tax reform. With regard to local issues, Hertaus indicated that Senator Osmek and himself will be authoring and sponsoring bills that hopefully will provide some funding for the Highway 12 improvements. Hertaus noted the Highway 12 corridor is the deadliest stretch of highway in Minnesota, which has resulted in the creation of the Highway12 Coalition Group. MN/DOT did an audit report and has provided some information that was presented to the highway commissioner. A meeting was held last month and it was indicated that MN/DOT is planning some improvements for Highway 12 near County Road 92. Hertaus stated there is additional work that will need to be done to improve the safety on Highway 12 and that they will be taking a two-pronged approach. Due to the surplus, there is a remote possibility that there will not be a bonding bill. Hertaus stated without a bonding bill, the improvements could be paid for with cash. If there is not a bonding bill, Hertaus indicated he would like to introduce a bill for funding the Highway 12 improvements. Hertaus stated he will continue to work on improving the Highway 12 corridor with Mr. Grube of the Hennepin County Transportation Department. Printup asked if Senator Hertaus foresees any unfunded mandates that may impact Orono Page 2 of 24