09-13-2010 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 13, 2010 7:00 o'clock p.m. (10. ADOPT 2011 TAX LEVYAND BUDGET, Continued) the .48 percent increase in the general fund budget. The City's actual levy limit is a little bit higher next year due to some construction projects. Olson indicated he also created a budget showing a zero percent increase in the levy by eliminating the wage increases for employees and eliminating the insurance contribution increase, which total approximately $50,000 of the increase in the general fund budget. Olson stated Staff has gone through the budget with a fine -tooth comb and it would be difficult to find additional cuts. In addition, there is still a $320,000 deficit due to the decision by Long Lake to go with police protection from the City of Wayzata rather than Orono. Murphy stated in his view the first preliminary budget should be adopted given Mr. Olson's statement that a solution needs to be arrived at with the $320,000 shortfall with the police department. Murphy noted the police chief is working on a couple of different options to reduce their budget at the present time. Bremer indicated she is in agreement with Council Member Murphy and that the $50,000 represents a one percent increase, which is minimal. x Olson stated in all likelihood the union will go to arbitration if the City proposes a zero percent increase with no increase in insurance. Olson stated the costs to go through arbitration will more than likely equal the one percent increase. • Bremer stated she does not want the City to be in a position where they lose staff given the nominal increases and that the employees need to be compensated appropriately, especially given the cut in the Planning Department. Murphy distributed a 10 -year chart depicting the number of city employees and noted the City has done an excellent job in controlling costs over the years. McMillan commented reducing staff and the number of employees is not always a win/win for the residents and the City. McMillan indicated she is very cognizant of what is going on in the surrounding communities with the economy and that a number of them are proposing a zero percent increase. Local governments need to respond to the needs of the taxpayer given the poor economy. Orono's tax base is shrinking, which is causing an increased tax levy. McMillan stated it is time that elected officials respond to the needs and cut back wherever possible. McMillan commented that in her view this year is the year to do a zero percent levy increase and that it is important for the City Council to show the residents that Orono is keeping track of the bottom line. The last thing the residents want now are additional taxes and the City needs to pay attention to that. McMillan stated she would like to keep the level of services as is but keep taxes as low as possible. Bremer asked if Council Member McMillan understands that she is saying no to an increase in salary for the Staff and a no to an increase in health insurance contributions. McMillan indicated she does understand that, and noted there was an increase in 2010. • PAGE 10 of 14