12-06-2010 Council Minutes Truth in Taxation

Home Browse Search

rb MINUTES OF THE TRUTH -IN- TAXATION MEETING Monday, December 6, 2010 • 7:00 o'clock p.m. Esau stated the $4.7 million is the amount that comes from the taxes but the total expenditures of the City are 5.995 million. Franchot indicated it is 5.785 million. Esau stated it would be helpful to see the kind of monies that are spent in total. Olson noted that information is available on the City's web site. Esau stated he is also interested in what the City of Orono is spending on police protection since that appears to be a major expenditure. Loftus indicated taxes generated are 3.9 million, total expenditures are 5.7 million, and public safety consists of approximately 3.2 million of expenditures. Olson noted that number includes police, fire, and building inspections. The actual police department expenditures are $2.3 million. White noted Orono also provides police services to Minnetonka Beach and Spring Park and that the City of Long Lake has opted to get their police services from someone other than Orono in 2011. Esau stated the City's financial statement showed a fairly healthy cash fund balance of around $12 ® million. Olson noted the whole $12 million is not available to be spent. Esau asked what the constraints are on the spending and whether the City is carrying a $12 million balance going forward. Olson indicated the City's portfolio is approximately $12 million, but that approximately $2 million of the money is in sewer, $1,000,000 in water, and $500,000 in storm water funds. That money has been designated for various projects throughout the year and will be spent in large part. There is also a couple million dollars in debt service funds and money allocated towards construction funds, which includes over a million dollars that were part of a bond sale as part of the City's pavement plan, which cannot be spent since it is allocated toward projects. Ted Capra, Orono, asked what road projects the City has bonded for. Olson stated the road projects were Casco Point Road, a city -wide seal coat, and a mill and overlay. Murphy noted the City's cash balance percent was reduced to 50 percent. The point of the cash balance is that it allows for some contingency. Loftus noted the City only receives two tax disbursements a year, which requires the City to have some cash on hand to pay for expenditures. • Murphy pointed out the $12 million cash balance is a decrease from previous years. PAGE 3 of 6