12-08-2008 Council Packet - Laserfiche WebLink

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MINUTES OF THE ORONO TRUTH IN TAXATION M EETING Monday, December 1, 2008 6:30 o’clock p.m. ______________________________________________________________________________ PAGE 2 noted the City of Orono is responsible for approximately 80 percent of those costs. The City has elected not to hire a full-time person in the inspections department as well as the administrative staff. Ken Carlson, Orono resident, asked what the difference is between the $7,633,318 listed in the 2009 proposed budget and the $6,163,850 listed on the next page under 2009 budget. Olson stated the $7.6 million is the number for the entire budget and the $6.16 million is just the number for the general fund revenues. Olson stated the revenues do not balance to the expenditures and that the difference will be made up with fund balances. White noted the budget is not balanced at the present time and that it may become necessary to withdraw approximately $48,000 from their reserve. Wells noted the budget will be balanced at the time the Council approves it at their December 8th meeting. Murphy commented the City will need to keep a very watchful eye on the budget during 2009 given the state of the economy. White stated the City has been fairly consistent in maintaining the level of Staff over the years, which, compared to other cities, is considered low. White noted Orono is also the lowest in Hennepin County for municipal taxes, which is due to the low debt service that the City has and their efforts at minimizing expenses wherever possible. Olson displayed a pie chart depicting the allocation of the 2009 general fund revenues. Bremer noted the amount of fees received by the City in building permits has been relatively flat over the past few years. Olson noted that the fire and police departments make up 49 percent of the general budget, with street maintenance being another major item in the City’s budget. Olson noted that even though the police department received a 3.5 percent increase, the City’s overall budget increase came in under 3.0 percent. Olson stated some of the items in the general fund budget have been decreased, such as a decrease in planning and zoning because of a decision not to hire a full-time inspector. Murphy stated one of the benefits of having a full-time fire chief is that they will no longer need to hire the fire chief from Wayzata to perform inspections. Murphy stated the City has also been paying a portion of the costs for a part-time administrative person for the fire department, which will also become the responsibility of the fire chief. Olson noted personal services make up 61 percent of the city’s expenditures. Tim Traff, 1640 Bohns Point Road, asked if the City is saving for future capital expenditures under the item street maintenance or whether that amount is being spent every year. Olson stated this is the amount that would be spent from the annual fund on your typical street maintenance, such as snow plowing and normal patching. Item #03 - CC Agenda - 12/08/08 Approval of Truth in Taxation Minutes [Page 2 of 5]