09-26-2016 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 26, 2016 7:00 o'clock p.m. 3. CSAH 112 PHASE 2 DESIGN AND TRAIL EXTENSION (continued) Meyers indicated it would be in November and that there is a work session in October. McMillan commented the next official Park Commission meeting would be a good time to have the Commission review the proposal. Levang stated in her view it would be important to have the Park Commission weigh in on this issue. There were no further public comments. McMillan noted the first November Council meeting would be November 14. Moiler stated there is some flexibility in the schedule and that they could wait until November 14, The City Council took no formal action on this item. 4. 2017 BUDGET AND PRELIMINARY LEVY — RESOLUTION NOS. 6675 and 6676 Finance Director Olson noted the Council has discussed the preliminary budget as part of the last three Council work sessions. The preliminary budget and tax levy was presented to the public at the September 12 Council meeting. As required by state law, the 2017 preliminary tax levy is required to be certified to Hennepin County by September 30. In order to meet this deadline, the preliminary budget and tax levy needs to be adopted at tonight's meeting or else a special meeting will need to be called before September 30. Olson noted following adoption of the preliminary levy, it can only be decreased until the time the final levy is adopted in December and that public comment will also be allowed at that time. The 2017 General Fund revenue budget is projected to increase 3.8 percent, which does include an increase in property taxes of $180,744 or 4.5 percent. Olson noted the City's tax levy has not increased significantly in the past few years. The biggest reason for the levy increase in 2017 has to do with contract and step wage increases as well as an increase in public safety charges of $61,000. Olson noted the Mound police contract has an inflator of 2.5 percent. Olson reported the expenditure budget will increase $279,294, which is a 3.62 percent increase. Olson stated the City's expenditure budget consists largely of wages and contracted services, with 64 percent of the budget being personnel services followed by professional services. Olson commented Orono budgets very conservatively and does not have a lot of discretionary items in the budget. Olson noted supplies and maintenance is only 8 percent of the budget and that the other expenses category includes electricity and gas and other similar items. Olson stated wages and benefits for next year's budget have a lot to do with the increase. Non-union step increases equal $18,000. Olson noted non-union wages has a two percent COLA increase, which adds $32,000 to the budget, and union step/longevity increases amount to $45,000. Olson noted the City had more senior police officers that have retired and that they were replaced with younger officers, which has resulted in the increased step increases. Page 4 of 26