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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. _____________________________________________________________________________________ Page 17 of 25 (MAYOR/COUNCIL REPORT, Continued) something signed between the two cities and are willing to work toward an agreement. McMillan suggested the Council discuss this further at the June work session. Bremer asked if the Mayor has received any comment on the 2007 draft agreement. McMillan commented there is some confusion about the joint ownership issue and that she is unsure who even wrote up the draft agreement. Franchot stated he would agree that this needs to be discussed and that it is long overdue. Franchot commented it would be helpful to understand the joint ownership issue if Staff could provide what the rationale was for that originally. Franchot noted the City of Orono paid to construct the fire station and that Long Lake did not contribute to that cost. Franchot stated the obvious question is what the thought process was about giving half of it to Long Lake, and that he would like an answer to that if at all possible. CITY ADMINISTRATOR'S REPORT 10. YEAR TO DATE GENERAL FUND BUDGET INFORMATION Olson noted this is the first general fund budget information for the year. On the expenditure side, they like to see those at 25 percent for this time of the year. Olson noted the revenues will not be at 25 percent since the City does not receive the majority of those until later in the year. Olson stated the numbers are partially adjusted, which basically means that they have been reviewed as to whether there are any big items that should be adjusted for the year. The City is only at 7.29 percent for the year for revenues. The main reason for that is the City's tax settlement payment is not received until June and they are the largest percentage of revenue contained in the City's budget. Approximately $174,000 of revenue comes from the State of Minnesota in the form of various grants and $120,000 of that will not be received until October. In addition, the golf course was not open from January through March so those revenues are currently at zero. Olson pointed out that licenses and permits is over 25 percent of its budgeted revenue amount for the year. January through March is typically the slowest time for building permits but this year they are slightly ahead of what was projected. Olson noted there is not enough data yet for the year to make real conclusions on the majority of the budgeted items. The graph on the overhead depicted 2010 revenues versus 2011 revenues. At the end of the first quarter in 2010, revenues were at approximately 8 percent. This year the City revenues are at 7.29 percent. Olson stated he is estimating at the end of the year revenues will be around 100 percent. As it relates to expenditures, those are at 22.48 percent overall. There are a couple of departments that are slightly over, such as mayor and council at 28 percent. Olson indicated those will end up pretty much at 100 percent by the end of the year. The reason for the higher percentage for that category is the City has to pay the membership fees at the beginning of the year and it is reflected in this quarter’s expenses. Olson noted $60,000 of the mayor/council budget is for the Lake Minnetonka Watershed District. Item #02 - CC Agenda - 05/09/2011 Approval of Council Minutes 04/25/2011 [Page 17 of 25]