12-01-2008 Council Minutes Truth in Taxation Meeting

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D • ROLL • MINUTES OF THE ORONO TRUTH INS TAXATION M EETING Monday, December 1, 2008 6:30 o'clock p.m. The Orono City Council met on the above -menti James White, Council Members Jim Murphy, Li] were City Administrator William Wells, Finance ied date with the following members present: Mayor McMillan, and Cynthia Bremer. Representing Staff )irector Ron Olson, and Recorder Jackie Young. Mayor White called the meeting to order at 6:35 p.m., followed by the Pledge of Allegiance. NEW BUSINESS White stated the purpose of tonight's meeting is 1 2009. The Minnesota Legislature has re- establisl 3.9 percent, which is roughly the rate of inflation would be pension obligations and debt service. I that it has to fund and very minimal debt service. properties have seen a decline in value, which the City will collect. White noted the City adopted a preliminary budg Hennepin County, who then determines what the property owner's property tax if the budget is ad( may go up or down and that the residents will be different time. Tonight's process is to focus on t; budget was arrived at. White noted the school d are based on market value. White noted there is a handout available on the White indicated the City's proposed budget for non -tax revenues being $2,906,420. The differ projected to be $4,564,687. discuss the City's proposed budget for fiscal year -d levy limits that cities may impose to a maximum of Some expenses are exempt from the levy limit, which bite stated the City of Orono has no pension obligations Due to the real estate market conditions, some i results in a decline in the amount of property taxes the earlier this year and sent that information in to 1pact of the city's budget will be on each individual ed by the City. White stated that a person's valuation ven an opportunity to appeal their valuations at a city's portion of the tax bill and to discuss how the rict's levies are not part of the city's tax capacity and s proposed budget and tax levy for 2009. year 2009 is $7,633,318, with the anticipated 2009 will need to be made up by the tax levy, which is Olson reviewed the 2009 preliminary budget and stated the improvement and equipment fund is the city's capital improvement expenditures. The community investment fund is money that is allocated toward community improvements. Olson stated the $130,000 reflected under the community investment fund is a transfer to help with the City's debt service, which is primarily being used to pay for the fire hall. White noted the City has implemented a 15 -year program to improve the streets throughout the City without assessing the costs to the individual residents. The City has spent a lot of time with the city engineers prioritizing the streets and categorizing the improvements that should be made. Olson displayed a breakdown of the general fund revenues that are projected for 2009. Olson noted the majority of the money received by the City comes from property taxes. White stated the City only increased those items department, which is dictated by their contract. with fuel costs and have added expenses associa here they absolutely had to, such as the police addition, the City increased their expenses associated I with the hiring of a new full -time fire chief. White PAGE 1 L3-)