HomeMy WebLinkAbout11-29-1994 Truth in Taxation Packet; i
PLAmnNG COMMISSION I o u(^^oncil j>
PUBLIC ATTBNDANCB
MEETING DATE _
PLEASE FILL OUT THE INFORMATION REQUESTED BELOW FOR OUR CITY RECORDS.
NAME '(pl«aae print)ADDRESS
PRESENT FOR (from agenda)
NAME OR NUMBER
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I*"-'4
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Mayor and City Council
Ron Moorsc, City Administrator J^/i^
DATE: November 23, 1994
TO:
FROM:
SUBJECT: Truth In Taxation Hearing - 7:00 p.m., Tuesday, November 29
The a tta flr** memo provides an overview of the 1995 budget. Also anached is a set of graphics
which present overview information regarding major aspects of the budget. If you have any
questions regarding this information, or concerning the Truth In laxation heanng, please call
me.
L
TO:Mayor and City Council
FROM:Ron Moorsc. City Administrator
DATE:November 16, 1994
SUBJECT: 1995 Budget and Tax Levy
The proposed 1995 budget reflects an effort to hold the line on funding for current services
whUe positioning the city to address a number of long term issues with substantial fiscal impacts.
FtXPCndilurffili T*ax Capacity Rate
Although the overall city budget has been reduced for 1995; the General Fund Budget, which
most affects the tax levy, has been increased by 2.9%. General Fund expenditures have
increased from $3,152,668 in 1994 to $3,245,015 in 1995.
The tax levy required to fund the 1995 budget is $2,016,170. This is an increase of $39,534
or 2.0% over the 1994 levy of $1,976,636. The tax capacity rate required to generate the
proposed tax levy Is 15.550%. This is a reduction of .702 or 4.32% from the 1994 ux capacity
rate.
Impact of Budget on Residential Propeflies
The proposed budget and tax levy result in a reduction in the city ’s share of the property tax
bill. Table C shows the tax levy impact on homes valued at $100,000, $200,000 and $300,000.
For a home valued at $100,000 the city share of the property tax bill decreases from $208.03
in 1994 to $199.05 in 1995. This is a reduction of $8.97 or 4.3%.
Program Highliflhts __
Although the 1995 budget is fiscally conservative it does address a number of program needs.
These are as follows:
1. The addition of a I6th police officer to substantially improve police coverage for
Orono as well as those cities to which the Orono Police Department provides
services.
2. The expansion of the curbside recycling program to include the collection of
phone books, mixed paper (junit mail), and non-hazardous content aerosol cans.
3. The first phase of a three year water plant rehabilitation project
4. The first phase of a two year pavement management program
5. The development of a park and open space master plan.
6. The upgrade of three sewer lift stations
1995 Budget and Tax L07
November 16, 1994
page 2 of 2
7.A substantial expansion of the city's infiltration and inflow reduction program;
the purpose of which is to reduce the amount of clear water entering the city ’s
sewer system, in order to reduce the city ’s sewage treatment costs.
Water and Sewer Funds and Rates
The sewer and water rates will each increase by 5% in 1995. These increases are needed to
match the expenditures necessary to fund both the day-to-day operations of the water and sewer
funds, and the major repair and replacement of the city ’s water and sewer facilities.
The major expenditure item in the water fund is the first phase of a major rehabilitation of the
Navarre water plant. The major expenditure item in the sewer fund is an increase in the
Metropolitan Waste Control Commission’s sewage treatment charges of $47,000 or 16.6%. A
signiftcam amount of the increase in the MWCC’s charges is due to increased infiltration and
inflow (I & 1). I & I is the inflow of clear water into the sewer system through manholes, lift
stations and sewer lines, as well as through sump pumps connected directly to the sanitary
sewer. The 1995 budget includes an expanded program of 1 & I reduction including the sealing
of man holes and lift stations. This is an invesmiem to subilize sewer rates over the long term.
Recycling Program and Fee
The city ’s recycling program has been funded approximately 50% by a grant from the County
and 50% through the city ’s recycling fee. For 1995 the county recycling grant has been reduced
from $45,400 to $14,400 a reduction of $31,000. This reduction has been offset by a $14,000
reduction in expenditures and an increase in the city ’s recycling fee. recycling fee has been
increased from $16.00 per year to $22.00 per year to generate an additional $16,600 of revenue.
CITY OF ORONO
TAX CAPACITY. LOCAL LEVY AND TAX CAPACITY RATES
r-
1995 OVER (UNDER) 1994
TAX CAPACITY
ACTUAL
1994
bSTIMATEO
1995 AMOUNT PERCENT
Net Tax Capacity (to calc rate)$11,862,375 $12,697,515 $835,140 7.04%
LOCAL LEVY
Gross Levy $a281.570 $2,322,145 $40,575 1.78%
Deduct HACA (304,934)(305,975)($1,041)0.34%
TOTAL LEVY NET OF HACA $1,978,636 $2,016,170
^ sss -.3SS
$39,534 2.00%
TAX CAPACITY RATES
Generte Revenue 13.428%1^710%-0.718%-5.35%
Debt Service 1.073%1.129%0.066%5.22%
HRA Building Bonds 1.751%1.711%-0.040%-^28%
Totte Local Tax Capacity Rate 16.252%15.550%-0.702%-4.32%
SBSSSSSS
TAX CAPACITY - The leal estate and personal property tax capacity amounts
are reduced Oy any tax increments and the contribution amount to the fiscal
disparities to arrive at the total value at tax capacity used for calculating
the tax capacity rate.
LOCAL LEVY TTte amount of gross tax is reduced by the stale paid HACA
(Homestead and Agricultural CredH Aid) arKi by the Fiscal Disparities
distributed through the county.
TAX CAPACITY RATE - The net local levy terraunt is divided by the tax
capacity to arrive at a percentage or tax capacity rate.
TAXRATE1
11/15/94
CITYOFOHONO TAX LEVIESACTUAL 1994 vs PROPOSED 1995TAX LEVIES TAX LEVY COLLECTIBLE 1994 ............. 1995 INCREASE PERCENT (DECREASE) CHANGEGENERAL$1,633,165 $1,647,940 $14,775 0.90%SEWER & WATER BONDS 19621965 1 ^ .v:1992BUILDING BOND8-HRA
TOTALS
4,73643.05968,45814,209213,009$1.976.636
III5,500 42,945 80.18.1 , 221»785
&Q16.17Q
Mt 764(114)11,5423,7918,776 16.13%-0.26%16.86%26.68%4.12%
>1^200%
THE TAX LEVIES ARE SHOWN AS REDUCED BY HACA AID FROM THE STATE BUT HAVE NOT BEEN REDUCED
BY FISCAL DISPARmESCREDIT.
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JLL
Est Market Value
Tax Capacity (Net)
Tax Capacity Rate
NetTax
CITYOFORONO
EFFECT OF BUDGET ON HOMES
1994
IM$100.
$1,:
16.252%
$206.03
$3;
16.252%
$533.07
$5,280
16.252%
$858.11
1996
» i
Est Market Value
Tax Capacity (NeO
Tax Capacity Rate
NetTax
(Decrease) from 1994
(Decrease) % from 1994
III$100,1
$1;
15.561%
$199.05
($8.97)
-4.3%
$3,S
15.561%
$610.07
($2^99)
-4.3%
y $ II»H
$5,280
15.551%
$821.09
($37.01)
-4.3%
Gty of Orononbined Fund Exc1995 Combined Fund ExpendituresGeneral Fund ^'S.8%)Spedal Revenue (3.2%)
Debt Service (18.5%)
Golf Operating (2.4%)Sewer Operating (12.7%)
Water Operating (4.4%)
General Fund
Special Revenue Funds
** Debt Service Funds
Water Operating Fund
Sewer Operating Fund
Golf Operating Fund
3,245,015
175,250
1,019,280
241,719
699,149
134,681
5.515,094
Includes debt service for water and sewer revenue bonds.
City of Orono1995 General Fund ExpendituresPublic Safety (54%)General Government (20.9%)Equipment Outlay (2.0%)Miicellaneoui (3.4%) Recycling (2.4%)Parks & Recreation (1.8%)
Street Maintenance (15.5%)
General Government 677,434
Public Safety 1,754,122
Street Maintenance 501,358
Parks & Recreation 56,815
Recycling Program 76,260
Transfer to Equipment O'Ulay Fund
Miscellaneous 114,126
3.245.015
, «• 'V - A
City of Orono1995 Combined Fund RevenuesGeneral Property Taxes (36.6%)Special Atsessments (3.4%) Licentei A Permits (2.4%)Intergoveromeotal (8.6%)
Charges for Services (32.0%)
General Properly Taxes 2,016,170
Special Assessments 186,760
Licenses A Permits
Intergovernmental 477,205
Charges for Services 1,765,221
Fines A Forfeits 66,000
Interest Income 297,276
Triinsfcrs 191,475
Miscellaneous 93,450
Use of Fund Balance 287.537
5.515.094
Use of Fund Balance (5.2%)Miscellaneous (2.5%)
Transfers (3.5%)
Interest Income (5.4%)
Fines A Forfeits (1.2%)
f. ;
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City of Orono1995 General Fund RevenuesGeneral Property Taiei (50.8%)><>6qxxxxx 3ooc ^^Liceatet A Permiti (4.1%)Intergovernmental (13.6%)
Charges for Services (269%)
General Properly Taxes
Licenses A Permits
Intergovernmental
Charges for Services
Fines St Forfeits
Miscellaneous
1,647.940
134.000
441.935
874,140
66,000
81,000
3,245,015
Miscellaneous (2.5%)Fines & Forfeits (2.0%)
genrev$ 1of2
CITYOFORONO GENERAL FUND REVENUES BY SOURCERevenue SourceTaxesLicenses & Permits Intergovernmental Sen/ice Charges
Fines & Forfeits
interest
Miscellaneous
Transfers In
TOTAL REVENUE
1994 1995 INCREASE PERCENT(DECREASE) +/_$1,633,165 122,000 457.563 809.453
66.1
30,1
21,400
13,085
$3,152,666
11*
Ml
$1,647,940 134,000 441,935 874,140
66,1
46,
35.
Ml
III
III
$3,245,015
$14,77512,000(15,628)64,687
0
16,000
13,600
(13,085)
I mmm m
$92,349
0.9%9.8%-3.4%8.0%
0.0%
53.3%
63.6%
-100.0%
2.9%
V* -?• f . .
•V -Vi-* A . . «i f •• “k*
Revenue SourceTaxesSpecial Assessments Licenses & Permits IntergoverrvTK^ital Service Charges Fines & Forfeits
Interest
Miscellaneous
Transfers In
Use of Fund Balance
TOTAL REVENUE
CITY OF ORONO ALL FUNDSREVENUES BY SOURCE19941995 INCREASE PERCENT(DECREASE) +/$1,976,636225.530122.000502.170 1.650.43466,000
237.170
38,135
349,583
218,418
$5,386,076
$2,016,170186.760134,000477.2051,765,22166,000
297,276
93.450
191,475
287,537
$5,515,094
$39,534($38,770)12,000(24,965)114,7870
60,106
55,315
(158,108)
69,119
m mmm m
$129,018
ao%-17.2%9.8%-5.0%7.0%0.0%
25.3%
145.1%
-45.2%
31.8%
^4%