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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, February 11, 2013 7:00 o’clock p.m. _____________________________________________________________________________________ Page 22 of 24 *10. WESTERN COMMUNITIES ACTION NETWORK (WeCAN) REQUEST FOR CDBG SUPPORT Anderson moved, Printup seconded, to approve sending a letter of support for the CDBG grant application being submitted by the Western Communities Action Network. VOTE: Ayes 5, Nays 0. 11. 2012 GENERAL FUND BUDGET INFORMATION Ron Olson, Finance Director, noted some preliminary numbers are available for 2012. The revenues numbers are close to 100 percent accurate and that he does not foresee any major changes to those numbers. Because the City is still receiving and processing some transactions from 2012, the amounts should be considered preliminary. Currently revenues are at 99 percent of budget. Delinquent property taxes are the main reason why the City is only at 99 percent. Olson noted the City also had some tax abatements that happened dating back to 2007. In December, delinquent tax collections were negative numbers, which resulted in less revenue. Licenses and permits are at 105 percent. Other government revenues ended the year at 93 percent. The line item for police state aid was at 94.6 percent of the budget. This revenue source can vary based on the surcharge collected and the number of officers employed in the state. Another item in this category that was under budget was the line for state grants (other). This revenue source is received from the State of Minnesota and reimburses participating cities for the overtime costs associated with programs like Safe and Sober. Charges for services are under budget at 97.6 percent as a result of the engineering and legal fees. These are pass-through charges that are associated with variance applications. This revenue shortfall is offset by reduced expenditures in the Special Services Department. The final revenue category that is significantly under budget is the golf course, which finished the year at only 80.9 percent of revenue. Olson stated the City will need to come up with a way to increase revenues for the golf course. As it relates to the golf course, revenues have gradually decreased over the years and this year they are down to $110,000 from $215,000 in 2003. In addition to revenues being down, the expenditures were over budget this year. Olson noted they have previously made some pretty significant cuts to the golf course and that it will be difficult to cut any more from their budget. For the year the golf course had an operating loss of $57,225. The overall General Fund expenditure amounts are currently at 94.6 percent of budget. This figure is based on actual expenditures to date, with an estimated amount added for expenditures that have not yet been processed. Taxes represent 68 percent of the budget. If you take out the taxes and charges for services, there are not too many ways to increase revenues. Some other cities receive more in aid but Orono’s state aid is limited. Olson noted the assessing department was over budget and finished the year at 101.9 percent. This overage was the result of additional work required as part of new construction. The 2013 budget does include an estimated amount above the base contract to avoid the need for a budget adjustment next year. Item #02 - CC Agenda - 02/25/2013 Approval of Council Minutes 02/11/2013 [Page 22 of 24]