12-14-2009 Council Minutes - Laserfiche WebLink

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A f� MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 14, 2009 6:30 o'clock p.m. • ROLL The Orono City Council met on the above - mentioned date with the following members present: Mayor James White, Council Members James Murphy and Lili McMillan. Representing Staff were Finance Director Ron Olson, City Clerk Lin Vee, City Attorney Soren Mattick, Assistant City Administrator of Long -Term Strategic Planning Mike Gaffron, Zoning and Planning Coordinator Melanie Curtis, Planner Evelyn Turner, City Engineer Tom Kellogg, and Recorder Jackie Young. Council Member Bremer arrived at 6:37 p.m., and Council Member Franchot arrived at 6:43 p.m. Mayor White called the meeting to order at 6:30 p.m., followed by the Pledge of Allegiance CONSENT AGENDA Item Nos. 12 - 25 were added to the Consent Agenda. Murphy moved, McMillan seconded, to approve the Consent Agenda as amended. VOTE: Ayes 3, Nays 0. APPROVAL OF MINUTES is *2. REGULAR COUNCIL MEETING OF NOVEMBER 23, 2009 Murphy moved, McMillan seconded, to approve the minutes of the Orono City Council meeting of November 23, 2009, as submitted. VOTE: Ayes 3, Nays 0. BUDGET HEARING — 6:30 P.M. 3. 2010 BUDGET HEARING — ADOPTION OF 2010 BUDGET AND TAX LEVY Ron Olson, Finance Director, gave a brief overview of the process used to determine the City's tax capacity, which is calculated at one percent for the first $500,000 of the value of the property and 1.25 percent after that. Due to the decline in the housing market, the City will experience a fairly significant reduction in revenue, which has resulted in some cuts being made in the overall expenditures of the City. Olson noted property taxes account for 66 percent of the general fund revenues. The proposed 2010 general fund expenditures are $5,929,210, which is a decrease of 3.82 percent. The major factor for the general fund decrease is the plan to leave vacant positions unfilled in the inspections, public works, and police departments and a reduction in the police department expenditures. The total tax levy required to fund the propose 2010 budget is $4,665,880, which is an increase of $101,194 or 2.22 percent over the 2009 levy. For a home valued at $1,000,000, the City's share of the property tax bill will increase by 2.0 percent. The City is utilizing the "Special Levy" provision of the levy limit law in order to increase the levy for debt service above the levy limit. The total levy for debt 40 service is increasing by 9.81 percent, which reflects the increased levy for the 2008 street reconstruction bonds. The City will utilize a special levy in order to increase the debt service levy by an amount greater than the current levy limit. The increases required for debt service will be lower in future years. Page 1 of 17 46 rea i