12-13-2010 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 13, 2010 7:00 o'clock p.m. (6. CONTINUATION OF 2011 BUDGET HEARING, Continued) Olson indicated it should be decreased by approximately $7,000. Murphy noted the golf course is now included in the general fund and that a $20,000 offset has been projected between anticipated revenue and expenses. Murphy stated the City could eliminate that $20,000, which would put the onus on the city administrator to generate additional revenue or decrease the expenses of the golf course. There also is $5,000 in parks and other funds that could possibly be eliminated or decreased. Bremer commented typically the City Council relies on the various department heads to develop a reasonable budget and that she is not familiar enough with the daily operation expenses to make a recommendation at this point to decrease any particular fund or department. Olson noted the major expenditure for the golf course consists of wages. Murphy stated now that the golf course is included in the general fund, the City Council should take a closer look at the details of the operation. Murphy pointed out the $20,000 shortfall is an estimate and that perhaps the golf fees should be increased or the expenses reduced. . • McMillan noted the number of golf rounds being played has decreased over the years and that $20,000 is not a significant part of the budget. McMillan commented the golf course operation is pretty barebones. . Bremer commented that if the numbers for the golf course are based on last year's numbers, the Council should probably leave them where they are. Murphy stated since September the City has gotten criticized for setting a budget with a proposed increase of 1.75 percent. The Council has subsequently reduced that by 1 percent. Murphy indicated he is satisfied with the amount of work that has gone into reducing the City's expenses, especially when you consider the fact that a number of cities are increasing their tax levies by more than 1.7 percent. Murphy stated if the Council is insistent on reducing the budget increase to zero percent, he would prefer that the money not be taken from the employees. McMillan noted that approximately 50 percent of the cities in Minnesota are proposing a 0 percent increase on wages and that until the real estate market improves, which is where the majority of the City's revenue comes from in the form of property taxes, it is important for the City to reduce costs. McMillan indicated she would prefer to freeze wages rather than lay off staff and that she has been promoting a zero percent increase in the levy since September and that she still feels the same way tonight. a. ADOPT FINAL 2010 LEVY COLLECTIBLE IN 2011 — RESOLUTION NO. 5998 b. ADOPT 2011 GENERAL FUND BUDGET — RESOLUTION NO. 5999 C. ADOPT THE 2011 SPECIAL REVENUE FUNDS BUDGETS — RESOLUTION NO. 6000 Franchot moved, Murphy seconded, to adopt RESOLUTION NO. 5998, a Resolution Adopting the Final 2010 Tax Levy Collectible in 2011; to adopt RESOLUTION NO. 5999, a Resolution to Adopt the Final 2011 General Fund Budget; and to adopt RESOLUTION NO. 6000, a Resolution to Adopt • the 2011 Special Revenue Funds Budgets. Page 4 of 27