09-11-2017 Council Work Session Packet

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MEMORANDUM To: Mayor Walsh and Orono City Council From: Danielle Amira, Accountant and Ron Olson, Finance Director Subject: 2018 Budget Date: September 11, 2017 Overview The Council has discussed the preliminary budget as part of the last three council work sessions. At the August 28 work session, the Council expressed agreement with the General Fund expenditure budget and revenue budgets. The General Fund budget information includes changes that were requested at the last work session and is included the attachments for your review. The following changes were made to the below departments: • Finance (41,500) • Police (-$23,000) • Planning & Zoning (-$10,000) • Special Projects -Contingency (-$25,000) Tonight's meeting provides the Council an opportunity to discuss these changes and provide staff direction to prepare the preliminary tax levy for adoption at the September 25th council meeting. This meeting also provides an opportunity for the public to provide input on the budget and tax levy. Tax Lew With these changes, the total levy will be increased by $350,821 resulting in a tax rate of 16.882%. The City's tax levy is made up of three parts: General Fund Operating, Debt Service, and the Pavement Management levy. The increase is split between the General Fund ($147,811) and the Pavement Management Fund ($247,000). This would be a total levy increase of 6.74%. Request for Council Action The primary decision is to confirm the size of the preliminary tax levy that will be approved on September 25. Once the preliminary levy is approved, it cannot be increased. Council could also direct staff to make changes to the General Fund budget if desired. Attachments: 1) 2018 Local Levy 2) 2018 Levy Effect 3) 2018 Budget Expenditures 4) 2018 Revenue 5) General Fund Levy Statistics 2017 Budget — Page 1