12-11-2017 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 11, 2017 6:30 o'clock p.m. 1. 2018 BUDGET HEARING — Continued The water fund has historically operated at a loss. Because depreciation is a non-cash expenditure, the fund has had a positive operating cash flow since 2009. In most years, the operating loss has been covered by the revenue received from antenna leases on the water towers. For the last four years, water rates have been increased by 11 percent annually. The 2018 budget has a 6 percent increase, with future increases to be determined to be based on a utility rate study that is being performed in 2018. Staff recommends approval of the 2018 property tax levy, the 2018 General Fund budget, the 2018 Special Revenue Fund budgets, and the 2018 Enterprise Fund budgets. Mayor Walsh opened the public hearing at 6:52 p.m. Richie Anderson, 3205 Crystal Bay Road, stated he was wondering about the numbers for the sewer fund. Olson stated it should be 296 and that there was an error in the numbers. Anderson stated the City spent $110,000 for a trail from the Luce Line to Long Lake and that the City is now allocating $130,000 in the new levy for street maintenance, which is a wiser use of the City's money. Anderson asked where the $110,000 came from. Walsh indicated it came out of the Park Fund. Anderson asked whether there are any other pet projects budgeted for next year. Walsh stated the City will be focusing on road projects next year. Anderson noted the City pays $182,000 to the Hennepin County Assessor each year and that years ago Orono used to have its own assessor. Anderson stated he has a property that went up 18 percent and that it is very difficult to get an answer from Hennepin County. Walsh stated Orono does not have to hire Hennepin County for their assessing services but Hennepin County does have to sign off on everything. Walsh noted the previous City Council elected to sign a 5 -year contract with Hennepin County, which leaves the City obligated to use the services of the Hennepin County Assessor's Office for the next few years. Anderson stated in his view the City could hire its own assessor for less money and he would be readily available to talk to the residents. Walsh stated there are not a lot of people in that business anymore and that the assessor is required to conduct a 20 percent review of the City, which is a considerable amount of work. Walsh stated the City did not explore finding an independent person because they elected to go with Hennepin County. Anderson noted Maple Plain has an independent assessor and that it was just a suggestion. Crosby stated years ago when his property taxes kept increasing, he first approached the City and then finally went down to Hennepin County, spoke with them, and got his taxes reduced. Crosby stated the City is tied into the contract for five years. Page 3 of 15