09-12-2011 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2011 7:00 o'clock p.m. MAYOR/COUNCIL REPORT Rahn asked when the estimates for the roof repairs on the city hall building will be ready for Council review. Loftus stated Don DeBaere has met with a contractor and that the cost estimate he received was $10,000. Loftus indicated she asked him to obtain two other quotes and that she anticipates those estimates will be brought to the Council within the next month. Printup noted Wayzata had their James J. Hill Days recently. There was also a nice September 11th remembrance ceremony held in Mound. CITY ADMINISTRATOR'S REPORT 13. ADOPT PRELIMINARY 2012 TAX LEVY AND BUDGET — RESOLUTION NOS. 6075 AND 6076 Olson stated the total levy for all funds and general fund has a zero percent increase in the tax levy at the present time. The average decrease in home values was 7.7 percent city -wide. As it concerns the city portion of the taxes, the City will not know the final numbers until that information is received from the state and county, but it generally comes to approximately 15 percent. • Olson indicated the City did receive some good news relating to the fire service budget and that there will be an increase of $10,300 rather than the anticipated $23,000. The union contracted wages and benefits will be increasing. For nonunion, the half percent raise is still in the budget and equals $8,150. Olson indicated it was his understanding the Council was generally in agreement that the nonunion employees would get the increase in benefits. Olson noted the new budget has the new public works director position included and that they have decreased the street department budget by $10,000 since an outside engineer will not be sitting in on their staff meetings. Law and legal services was also reduced by $7,500 and Staff is working on a list of code enforcement issues that the City Attorney has been involved with in the past. Olson noted the Council is just adopting the preliminary budget and tax levy tonight and that once the preliminary levy is adopted, it cannot be increased. Printup asked when the last time was that Orono had a zero percent levy increase. Olson indicated to his knowledge during the 13 years he has been at Orono there has not been a zero percent levy increase. McMillan requested that the tax impact to the $250,000 house be added to the information provided at the Truth -In- Taxation meeting. Olson stated he has not gotten the information regarding the homestead tax credit at this point. • Printup moved, Rahn seconded, to adopt RESOLUTION NO.6075, a Resolution Adopting the Proposed 2011 Tax Levy Collectible in 2012, and to adopt RESOLUTION NO. 6076, a Resolution to Adopt the Proposed 2012 General Fund Budget. VOTE: Ayes 3, Nays 0. Page 27 of 28