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HomeMy WebLinkAbout12-04-1996 Truth in Taxation MinutesCITY OF ORONO TRUTH IN TAXATION PUBLIC HEARING MINUTES OF DECEMBER 4, 1996 ROLL The Council met on the above mentioned date with the following members present: Mayor Edward J. Callahan, Jr., Council Members J. Diann Goetten, Gabriel Jabbour, Charles Kelley and JoEllen Hurr. Representing Staff were City Administrator Ron Moorse, Finance Director Tom Kuehn, Assistant Finance Director Chris Miller, Accountant /Management Analyst John Olson, and City Clerk Dorothy Hallin. Mayor Callahan called the meeting to order at 7:01 p.m. Mayor Callahan asked Moorse to review the proposed 1997 budget. City Administrator Moorse stated the proposed 1997 budget is fiscally conservative in that it maintains current service levels while positioning the city to address a number of long term fiscal issues. These issues include; funding for street repair and replacement, funding for sanitary sewer projects (hot spots), funding for storm water drainage projects, and funding for water and sewer infrastructure repair and replacement. The proposed 1997 General Fund Expenditures, those with the greatest impact on the tax levy, are $3,447,605. This is an increase of $99,850 or 2.9% over the 1996 General Fund Budget. This reflects an effort to hold the line on expenditures while maintaining and improving current service levels. The tax levy required to fund the total 1997 budget is $2,161,630. This is an increase of $80,790 or 3.88% over the 1996 levy. The portion of the tax levy required to fund the General Fund budget is $1,680,980. This is an increase of $33,040 or 2.0% over the 1996 General Fund levy. The major reason for the 3.88% overall levy increase is a levy of $45,500 to enable a substantial increase in the city's street repair program. The levy amount positions the city to address both short term and long term street repair needs. Because the city's tax base has increased, partially due to new housing construction, the proposed tax levy will result in a reduction in the city's tax capacity rate from 14.743% to an estimated 14.246 %. This 3.36% reduction in the city's tax capacity rate will enable Orono's tax capacity rate to remain one of the lowest in Hennepin County. Moorse pointed out the table, provided in the information packet, indicating the tax share by jurisdiction for an Orono property in the Orono School District which shows the city receives only 11.8% of the estimated 1997 tax bill. Mayor Callahan asked if anyone had comments. *&. 1 CITY OF ORONO TRUTH IN TAXATION PUBLIC HEARING MINUTES OF DECEMBER 4, 1996 Norman Paurus, 2500 Casco Point Road, stated he wanted to thank the Council and staff for keeping expenses down. Moorse stated the final Truth In Taxation hearing would be held December 9, 1996, at 7:00 p.m. ADJOURNMENT Motion by Jabbour, seconded by Goetten to adjourn the meeting at 7:12 p.m. ATTEST: Dorothy M. in, City Clerk 2 Edward J. Calla n, Jr., Mayor