HomeMy WebLinkAbout11-29-1995 Truth in Taxation MinutesCITY OF ORONO PUBLIC HEARING
TRUTH IN TAXATION HEARING
MINUTES FOR NOVEiv1BER 29, 1995
• ROLL
The Council met on the above date with the following members present: Mayor Edward
Callahan, Jr., Council Members; Charles Kelley, Gabriel Jabbour and JoEllen Hun.
Representing Staff were City Administrator Ron Moorse, City Finance Director Tom Kuehn,
Assistant Finance Director Chris Miller and City Clerk Dorothy Hallin. Council Member J.
Diann Goetten was absent. Mayor Callahan called the meeting to order at 7:00 p.m.
Curt Quady was present and stated he had no comments and left the meeting.
Mayor Callahan stated the public would have an opportunity to make comments and asked
Moorse to outline the budget.
Moorse stated the purpose of this Truth in Taxation hearing is to provide information about the
1996 budget that is proposed to be adopted and take any comments from the public regarding
the budget. The General Fund Budget, which has the most impact on the tax levy, is increasing
3.17 %. The 1996 Budget will be $3,347,755. The tax levy that is required to fund the total
1996 Budget is $2,080,840 which is a 3.21% increase over the 1995 levy. The increase in the
tax levy is due to $40,000 being levied to begin an infrastructure replacement fund. Because
the city's tax base has increased significantly, the proposed tax levy will actually result in a
reduction in the city's tax capacity rate. It will go from 15.604 % to 14.843 % which will keep
• Orono's tax rate as one of the lowest in Hennepin County. The impact of this budget on
residential properties, based on the reduction in the tax rate, will actually be a reduction in the
city's share of the property tax of about 4.9 %.
This budget basically retains services, and the expenditures for services, at their current levels.
It also starts to address some long term issues along with several current program needs. The
long term issues are the infrastructure funding (roads, bridges, and storm water drainage) and
funding for the storm water management plan. The program needs that the budget addresses
are; recodification of the city's ordinances, computerized mapping, employee recognition, update
of the city's pay structure, continuation of the multi -year water plant rehabilitation project,
continuation of the sewer infiltration and inflow reduction effort and the continuation of a multi-
year sewer lift station replacement program.
The tax dollars collected from Orono residents is divided among various taxing jurisdictions as
follows:
1. City 11.8%
2. Hennepin County 30.7 %
3. School District 51.0%
4. Miscellaneous taxing districts 6.5%
A breakdown of the 1996 Tax Levy shows the biggest portion is for police operations at 29.4 %,
• then general government at 25.5% (administration, finance, central services, and recycling).
Street maintenance is 11.4% and debt service is 18.9%. The debt service includes various
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CITY OF ORONO PUBLIC HEARING
TRUTH IN TAXATION HEARING
MINUTES FOR NOVEMBER 29, 1995
sewer projects and the city facility. Building Inspection and Zoning is at 7.2% and fire •
protection is at 4.7 %.
Hurr stated she thought the Building Inspection and Zoning Department was self supporting.
Moorse stated that part of the tax levy does go to the Building Inspection and Zoning
Department because their revenues do not fully cover all their expenses. Hurr requested a
breakdown of the Building Inspection and Zoning Department revenues and expenditures.
Callahan stated the purpose of this meeting was to have input from the citizens and asked if there
were any questions.
Christa Nejezchleba, 2625 Kelly Avenue, stated she had a question regarding the Kelly Avenue
sewer project and road reconstruction. She asked why the project had not continued. Moorse
stated the plan had been to do the project this year but part of the project was to replace the
sewer line before the road work was started. As the sewer line project work progressed it
became more complicated than anticipated and that portion of the project was not completed.
The city will continue the sewer line project and road reconstruction during the next construction
season.
Callahan read portions of a letter received from the Commissioner of Revenue which stated the
average state wide city increases in tax levy will be 6.8% although the State had recommended
the cities limit their increases to 4 %. Callahan noted Orono's tax levy increase will be at 3 %.
Moorse stated the Council is required to announce the date and time for the hearing when the
Council will adopt the 1996 Budget and Tax Levy. Moorse stated at the regular meeting of
December 11 the bond sale has been scheduled at 7:00 p.m. and the hearing could be set at 7:15
p.m. or 6:45 p.m.. Motion by Hurr, seconded by Kelley, to set the hearing for the 1996 Budget
and Tax Levy at 6:45 p.m. on December 11, 1995. Vote: Ayes 4, Nays 0.
Callahan stated this meeting is intended for information purposes and it is not the meeting at
which the Council votes on the 1996 Budget. The 1996 Budget and Tax Levy will be voted on
December 11, 1995, at 6:45 p.m.
Motion by Callahan, seconded by Hun to adjourn at 7:23 p.m. Vote: Ayes 4, Nays 0.
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A EST: Edward J. ahan, Jr. Mayo;
City Clerk
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