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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 10, 2012 7:00 o'clock p.m. _____________________________________________________________________________________ Page 24 of 26 (15. ADOPT PRELIMINARY 2013 TAX LEVY AND BUDGET, Continued) The total levy for debt service for 2013 is $755,500, which is a decrease of $9,000 from 2011. This money has been added to the General Fund tax levy. The levy increases slightly in 2014 and decreases by $123,000 in the 2015 budget year. Olson noted throughout the budget process, the draft budget information used to create the preliminary budget has not included the additional expenditures associated with providing police services to Mound. This budget is included as Budget Package A. Since the Council approved the contract earlier tonight, the Council should adopt Budget Package B. Budget Package B includes updated revenue and expenditure information to reflect the new police service contract. Approval of this package does not affect the tax levy. Franchot stated he is not sure why the City would commit itself to a lower levy at this point even though the City's budget is lower when there could be things that come up in the next couple of months. Bremer thanked Staff and Finance Director Ron Olson for their fine work on the budget and the information that has been presented. Bremer commented that hopefully property values will increase in the coming years. McMillan stated in speaking with other mayors from the Twin Cities area, they have noticed that there has been an increase in building permits being applied for. McMillan noted this is the third year of decreasing home values and that the City needs to make sure home values have hit the bottom and are on the rise before increasing Orono’s tax levy. McMillan commented she appreciates the work of Staff in keeping the flat levy. Franchot stated he was not criticizing the tax levy but that he merely wanted to add in a buffer in the event something comes up in the next couple of months. Franchot noted that buffer could then be eliminated at the time the final budget is approved. McMillan opened the meeting up for public comment. Ralph Kempf, 3675 Togo Road, asked what the elimination of the park levy is about. Olson stated the City Council has decided that while there has been a $5,000 levy for parks in the past, it is not enough to really do any improvements. In addition, the park fund does not need the $5,000, so it was eliminated. McMillan stated it was basically a token amount and there were always questions on why it was there. The City's projections for the Park Fund were carried out into the future for 20 years and the City Council will be revisiting the CIP in the coming months. The projections demonstrated the Park Fund would do well for a while and did not need the $5,000. McMillan stated if there is a certain project or land acquisition the City wishes to pursue, there are other financing options. Printup moved, Rahn seconded, to adopt RESOLUTION NO. 6165, a Resolution Adopting the Preliminary 2012 Tax Levy Collectible in 2013, and to adopt RESOLUTION NO. 6166, a Resolution to Adopt the Preliminary 2013 General Fund Budget as presented in Budget Package B, with a public hearing set for the regular Council meeting of December 10, 2012, at 6:30 p.m. VOTE: Ayes 5, Nays 0. Item #02 - CC Agenda - 09/24/2012 Approval of Council Minutes 09/10/2012 [Page 24 of 26]