07-26-1999 Council Minutes - Laserfiche WebLink

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ORONO CITY COUNCIL MEETING MINUTES FOR JULY 26, 1999 (1998 Financial Report, Continued) Kelley noted that the maximum property value increase for tax calculations was reduced from 10 percent to 8.5 percent. Kelley inquired what the City of Orono could do to reinstate the sales tax exemption_ Malloy stated that the League of MN Cities has been attempting to get the sales tax exemption reinstated, and that the City of Orono could join with other municipalities in an attempt to get the exemption reinstated. Mayor Jabbour inquired whether the reporting manner of the City was appropriate. Malloy stated that the City of Orono is well run and carries an appropriate amount of reserves to handle any unforeseen expenses. Malloy stated that he would prefer to present this report sooner in the year rather than in July, noting that there have been various issues that have delayed the report for the last several years. Malloy commented that the City of Orono might want to address this issue so the presentation can be given in April or May. Mayor Jabbour commented that staff turnover has played a factor this year. • Malloy stated that the City of Orono generates slightly less revenue per capita than similar cities, which generally means that the City is spending less than other cities. Malloy commented • that most of the City's revenues are generated through taxes and other fees rather than through government aid. Malloy noted that the spending trend of the City has remained fairly constant through the past several years. Flint inquired why the City of Orono receives less state aid than most other cities. Malloy remarked that most cities receive government aid in the form of LGA, with the City of Orono receiving none based on the aid formula. The City of Orono's tax base has also remained fairly constant over the past several years. Malloy stated that the City of Orono does reflect a high level of public safety services due to the fact that this service is provided by Orono to other cities. Malloy noted that the City of Orono does receive approximately $50,000 to $60,000 in net income from the public golf course. Malloy stated overall the City of Orono is in a good financial condition. Mayor Jabbour stated that in his view the City of Orono should attempt to have this report presented earlier in the year. Malloy commented that the report was delayed somewhat due to the need for some additional information. Mayor Jabbour thanked Kuehn and Malloy for all their efforts regarding this audit. 0