12-12-2016 Council Packet - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION DATE: December 12, 2016 ITEM NO: 1 Department Approval: Administrator Reviewed: Agenda Section: Name Ron Olson Y"-4 Public Hearing Title Finance Director 2017 Budget Hearing Attachments: a) Resolution Adopting the Final 2016 Tax Levy Collectible in 2017 b) Resolution Adopting the Final 2017 General Fund Budget c) Resolution Adopting the 2017 Special Revenue Fund Budgets d) Resolution Adopting the 2017 Enterprise Fund Budgets e) General Budget and Tax Information f) Updated CIP Prior to the adoption of the 2017 budget and tax levy, the City is required to hold a public hearing to allow public input on the budget and tax levy. By law, this hearing must occur between November 29th and December 20th. When the preliminary tax levy and budget was approved in September, the public hearing was set for December 12, 2016 at 6:30. This public hearing is the final step prior to adoption of the budget and tax levy. The budget process was begun by staff at the in May. At a work session held on May 20th the Council was provided background information on the budget and an overview of the budget challenges for 2016. Over the summer a draft budget was prepared and reviewed by the Council at work sessions in July and August. In September the preliminary budget and tax levy was publically presented at the meeting of September 12 and the adopted at the September 26 council meeting. In addition to the work on the actual budget, staff has been working on updating the Capital Improvement Plan (CIP). The CIP identifies the long-term infrastructure needs and is a valuable tool in the budgeting process. In conjunction with the budget process, staff has also reviewed the City's fee schedule. Formal action on the tax levy, budget, and CIP will be taken this evening. Tax Lew The total tax levy required to fund the 2017 budget is $5,353,730. This is an increase of $399,250 or 8.06% over the 2015 levy. A portion of the increase to the levy ($218,506) is designated for funding the City's Pavement Management Plan to address the City's aging road infrastructure. The remaining increase of $180,744 is an increase to the General Fund operating levy. Even with the increase in the levy, the City's tax rate will decrease from 17.325% Orono continues to have one of the lowest tax rates in both Hennepin County (ranking 41 of 45 cities), and the State of Minnesota.