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MINUTES OF THE <br />ORONO CITY COUNCIL MEETING <br />Monday, December 14, 2009 <br />6:30 o’clock p.m. <br />_____________________________________________________________________________________ <br /> Page 2 of 17 <br /> <br />(BUDGET HEARING – 6:30 P.M., Continued) <br /> <br />Olson noted the City of Orono does have a AAA rating with Moody’s, which saves the City a significant <br />amount in interest payments. The majority of the revenue is derived through taxes, with public safety <br />fees being the second largest revenue generator for the City. The police and fire department comprise 50 <br />percent of the City’s expenditures and Planning and Zoning is at 10 percent. <br /> <br />Mayor White opened the hearing for public comments at 6:46 p.m. <br /> <br />Tim Traff, Orono resident, asked if the City has a balance sheet that would depict how much debt is <br />coming due. <br /> <br />Olson stated at the end of 2008, it was approximately $6 million, with $4.5 million going towards the <br />service debt. Olson indicated he does not have the information in front of him tonight for 2009 but that it <br />will be approximately the same amount. Olson stated that information should be available on the City’s <br />web site. Olson noted by the year 2016, the City will experience a significant decrease in its debt levy. <br /> <br />Murphy stated the City does watch its bonding very carefully and that the City typically only bonds for <br />street improvements and/or building improvements. The expenses associated with the street improvement <br />projects are projects being undertaken by the City this year and in the future, which are being shared by <br />all the residents. <br /> <br />Richard Roberts asked why the properties in the City are assessed so much higher than other cities. <br /> <br />White noted the assessment process is identical in all cities and that the difference is in the amount of <br />property valuation. <br /> <br />Murphy stated lakeshore properties are valued at a higher rate and that the other factor is the change in the <br />limited market value calculation that was made by the state legislature. Murphy stated the time to discuss <br />what a specific property is valued at would be in April at the annual board of review. <br /> <br />Bremer noted unfortunately comparable sales by statute do not include short sales and distressed sales, <br />which is accounting for a fairly large portion of the sales at the present time. <br /> <br />Guy Erickson, Orono, encouraged the City to stress to Hennepin County that they need to reduce their <br />expenses, which would lessen the burden on the taxpayers of Orono. <br /> <br /> a. ADOPT FINAL 2009 LEVY COLLECTIBLE IN 2010 – RESOLUTION NO. 5889 <br /> <br />McMillan moved, Murphy seconded, to adopt RESOLUTION NO. 5889, a Resolution Adopting the <br />Final 2009 Tax Levy Collectible in 2010. VOTE: Ayes 5, Nays 0. <br /> <br /> b. ADOPT 2010 GENERAL FUND BUDGET – RESOLUTION NO. 5890 <br />Murphy moved, Bremer seconded, to adopt RESOLUTION NO. 5890, a Resolution to Adopt the <br />Final 2010 General Fund Budget. VOTE: Ayes 5, Nays 0. <br /> <br /> <br /> <br /> <br /> <br />Item #02 - CC Agenda - 01/11/2010 <br />Approval of Council Minutes 12/14/09 [Page 2 of 17]