12-18-1990 Council Minutes Reconvened Budget Hearing

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40K MINUTES OF THE RECONVENED ORONO 1991 BUDGET HEARING HELD DECEMBER 18, 1990 ATTENDANCE 7:00 P.M. The Council met on the above date with the following members present: Acting Mayor Edward Callahan and Councilmembers J. Diann Goetten and Barbara Peterson. Mayor Grabek and Councilmember Nettles were absent. The following represented the City Staff: City Administrator Mark Bernhardson, Public Works Director John Gerhardson, Finance Director Tom Kuehn, Police Chief Mel Kilbo and Dorothy Hallin, City Clerk. APPROVAL OF MINUTES It was moved by Goetten, seconded by Peterson, to approve the Minutes of the 1991 Budget Public Hearing Meeting held December 3, 1990. Motion, Ayes -3, Nays -0, Motion passed. CONTINUATION OF PUBLIC HEARING Acting Mayor Callahan stated that this was the continuation of the 1991 Budget, continued from December 3, 1990. Stating that the previous meeting had been primarily expressions of the public and Council has now had time to consider the matter. The time has come to vote on this issue. He stated that 0410i +-he public now had an opportunity to express there concerns. Curt Quady, Crystal Bay, ask what changes were made? Acting Mayor Callahan stated he had reviewed the budget as it was presented. "My own view of the budget as it was presented is that it falls into two parts; one that I will call the General Levy and the other what I will call the $140,000 more or less special levy item. I have a definite feeling that the $140,000 portion of the budget, it would be better if in fact we did approve it, in the longterm it would be better for the City and that we will wish we had the money in the General Fund in two or three years, but that is just a general feeling. It may be that there is some reason to give the taxpayer some pause for breath before all the terrible things that are likely to befall him within the next two or three years and so from my own position I would favor strongly recommending and will move the budget without the $140,000 in it. The General Budget, the portion I am recommending, I believe very strongly should be adopted, I have some definite feeling that there may be a shortfall in the funds because a big section of it, not a majority but a definite section of it, incorporates interest on large funds and it was the budget projection on 8% interest rates which appear to be unlikely to be obtained during the coming year. The interest rates have fallen considerably since the budget was made up and also if any of these funds are spent ring the year, no matter what portion of them, a third or two �7irds during the year for city hall it obviously will eliminate the interest portion on those funds as they are spent anyway. Although you cannot measure exactly when and if that will happen, so those are my general feelings. Do other members have any i