09-12-2005 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2005 7:00 o'clock p.m. MAYOR/COUNCIL REPORT Murphy noted the train is now running on the new track and that the former Old Crystal Bay bridge has now been removed. Murphy stated it appears likely that the two bridges will be operational prior to winter. White suggested the City hold a public forum to inform its residents how the City is prepared to handle a crisis in this area, such as a natural disaster. CITY ADMINISTRATOR'S REPORT, CONTINUED 8. ADOPT PRELIMINARY 2006 TAX LEVY AND BUDGET — RESOLUTION NO. 5378 and 5379 Moorse recommended the City Council approve the proposed preliminary 2006 tax levy and budget. Moorse stated the City is able to reduce, but cannot increase, the preliminary tax levy prior to adoption of the final tax levy in December. However, the City can amend the budget by increasing or decreasing it prior to the adoption of the final budget in December. • Moorse stated the proposed 2006 budget reflects an effort to begin to re- establish sufficient funding levels for both short-term and long -term capital needs, after recent State Aid cuts and levy limits caused the reduction in the level of capital funding. The key short-term needs relate to necessary major maintenance • items and improvements to the city facilities, as well as equipment replacement and technology upgrade needs. The major long -term capital need is street rehabilitation. The budget reflects a measured funding plan that manages the impact of the tax levy on property owners. Moorse stated it appears, based on recent information, the City's tax capacity has increased from an anticipated 10 percent to 16.5 percent. Moorse stated as a result of the increased tax capacity, the City's 2006 City tax rate would be decreased from 16.2 percent to 15.27 percent. Murphy stated in his opinion it is important to keep a good balance between maintaining the City's infrastructure and the City's tax rate. Murphy inquired whether the City's portion of the debt service costs for the veteran's park on Big Island is included in this budget. Moorse indicated it is. Peterson moved, Murphy seconded, to adopt RESOLUTION NO. 5378, a Resolution Adopting the Proposed 2005 Tax Levy Collectible in 2006. VOTE: Ayes 4, Nays 0. Peterson moved, White seconded, to adopt RESOLUTION NO. 5379, a Resolution to Adopt the Proposed 2006 General Fund Budget. VOTE: Ayes 4, Nays 0. Mayor Peterson thanked City Staff for their fine work on preparing the City's preliminary tax levy and budget. • PAGE 10