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HomeMy WebLinkAbout08-28-2017 Council Work Session PacketOrono Special City Council Work Session Monday, August 28, 2017 Council Chambers 5:00 p.m. AGENDA 1. 2018 General fund Budget Annual: • Budget: Part of June, All of July, August and October. • City Administrator & Police Chief Update (3 times per year for 15 minutes) Additional topics: • Variance Training Previous Work Session Topics August 14, 2017 • Prepare and Discuss 2018 Budget July 24, 2017 • CSAH 112 Phase 2 Design Review • Storage Facility for Big Island • Purchase of Fire Truck for Long Lake Fire Department June 26, 2017 • Orono Woods Contract • City Council Human Resource Committee Report • 2018 Goals and Budget • CSAH 112 Phase 2 Design Review • Parks Commission- Recording Meetings • Short Term Rentals May 22, 2017 • Orono LMCD Position Candidate MEMORANDUM To: Mayor Walsh and Orono City Council From: Danielle Amira, Interim Finance Director & Ron Olson, Finance Director Subject: 2018 Budget Date: August 28, 2017 Attachments: A) Revenue Budget B) Health Care Coverage Breakdown C) General Fund/Tax Levy Statistics D) Expenditure Budget E) 2018 Local Levy F) Levy Effect 2018 G) Moody's Investors Report H) Fund Balance Summary I) Taxes Collected 2016 & 2017 J) Orono Taxable Market Values K) Comp Plan Budget Explanation L) 2017 Annual Lake Area Wage and Benefit Survey M) Sgt -Deputy Chief Wage Summary 2014-2017 N) Budget Process Timeline This is the third budget work -session for the 2018 budget. By law, the preliminary budget and tax levy must be adopted by September 30th. Based on the Council's input at tonight's work session, the preliminary budget will be updated and presented to the public at the September 11th meeting. The preliminary budget and tax levy will be adopted at the September 25th meeting. Expenditures The draft expenditure budget has been updated from the budget presented in at the last work session, two weeks ago. The biggest change ($45,811) was removed for the Code enforcement position in Planning & Zoning department. The contingency line item was reduced to $25,000. These were done based on the Council's direction at the August 14th work session. The Police Budget was increased by $13,032 to reflect a wage increase for the Chief ($7,119) and Deputy Chief ($5,913), as discussed at the last work session. Additionally the Police training line was increased to cover new training requirements. However that would be offset by additional revenue for Police Training Reimbursement now up to $23,000 from $10,000. Other items of note, switching from the Wayzata Fire service to Long Lake there was a savings of $7,000, bringing the 2018 total to $390,000. There are some additional minor changes to other line items like assessing services as final numbers became available. The current budget represents an increase of $259,037 (3.24%) over the 2017 expenditure budget. 2018 Budget — Page 1 Revenues As discussed in at the last work session, revenue line items are projected to be relatively flat for 2018. Of the revenue amounts that are increasing, the largest is an increase of $25,330 for contracted police services. As well as a $13,000 increase to Police Training Reimbursement, as discussed above. Conditional UseNariance/Development fees are being decreased by $30,000 in anticipation of a revenue drop due to decreased fees approved by Council. To fund the current expenditure budget, the property tax levy for the General Fund would require an increase of $207,307 (4.9%). This increase puts the tax rate at 17.062%. Historical information on the General Fund and the Tax levy can be found in attachment C. Tax Lew The City's tax levy is made up of three parts: General Fund Operating, Debt Service, and the Pavement Management levy. As presented, the current budget would increase the tax levy $410,321. The increase is split between the General Fund ($207,311) and the Pavement Management Fund ($247,000). This levy increase would result in a tax rate of 17.062%. They levy presented at the August 10' work session was at 17.204% and the 2017 levy was 16.804%. Health Insurance At the last work session Council requested a breakdown of the Health Insurance costs to the City and what the employees pay. Please find details in attachment B. Fund Balance At the prior work session Council had some questions regarding Fund Balance, find attachment H for fund balance. In the past excess fund balance has been transferred to another Fund approved by Council. Fund Balance simply put is difference between assets and liabilities at a point in time. The Office of State Auditor recommends that local governments maintain an unreserved fund balance in the general and special revenue funds of approximately 35-50% of fund operating revenues or no less than five months of operating expenditures. The current City of Orono Fund balance policy states that the City will maintain a minimum unreserved general fund balance of 45% of the fund's annual operating budget. Also the policy states any fund balances in excess of 50% will be transferred to the Community Investment Construction Fund or a transfer approved by Council. Fund balance is measured on 12/31 after the City has received its second property tax settlement, the timing is equivalent to measuring your personal wealth the day after you have received a paycheck without paying your mortgage and car loan. Tax settlements are distributed twice a year, typically in June and December. Therefore following the 5 to 6 months from the last tax settlement, fund balance plays important role in cash flow in funding City operations. The City's expenditures thru June 2017 were $3,418,930. Finally, currently the City of Orono has a AAA Bond rating. Our latest Bond rating report from Moody's (attachment G) identifies a healthy reserve as a strength and that a material decline in fund balance and liquidity is a factor that could lead to a downgrade. Non -Union Wages As indicated above, the draft budget has been prepared with a 2.5% COLA included. As well as eligible Step increases. Also included is the Police Chief and Deputy Chief requested increases 2018 Budget — Page 2 of $13,032. Furthermore, a salary survey completed by the South Lake Minnetonka Police Department comparing wages of Lake Area police departments. Decisions Needed The primary decision that needs to be made is the size of the preliminary tax levy that will be approved on September 25. Once the preliminary levy is approved, it cannot be increased. 2018 Budget — Page 3 City of Orono 2018 Revenue Budget Summary Percentage 2016 Y -T -D 2017 2018 Increase Increase Revenue Source Actual Aug 31,2017 Budget Budget (Decrease) (Decrease) Current Ad Valorem Taxes 3,977,693 - 4,404,551 Delinquent Ad Valorem Taxes 18,184 10,000 Fiscal Disparities 34,805 - Personal Property Tax 14,899 Forfieted Tax Sale Apportionmt - Rent Credit - Penalties and Interest -Taxes 2,002 - - Property Taxes 4,047,583 4,197,244 4,414,551 217,307 5.2% Beer & Liquor Licenses 6,670 - 7,000 7,000 - 0.0% Cigarette Licenses 125 750 400 400 0.0% Garbage Haulers Licenses 1,080 930 1,100 1,100 0.0% Other Business License/Permit 8,357 4,152 5,400 5,400 0.0% Dog Licenses 1,268 945 - - N/A Total Licenses 17,500 6,777 13,900 13,900 0.0% Building Permits 362,045 213,054 375,000 371,000 (4,000) -1.1% Zoning Permit 4,929 700 1,750 1,750 - 0.0% Mechanical/Septic/Other 67,909 36,362 50,000 55,000 5,000 10.0% Plumbing Permit 32,098 17,869 25,000 25,000 - 0.0% Total Permits 466,981 267,985 451,750 452,750 1,000 0.2% Federal Grant -other - - - - - N/A Market Value Credit - - - N/A Police State Aid 217,056 - 200,000 200,000 - 0.0% Police Training Reimbursement 8,442 9,220 10,000 23,000 13,000 130.0% PERA State Aid 7,219 3,610 7,220 7,220 - 0.0% State Grant -other 15,553 7,381 10,000 10,000 - 0.0% Total Intergovernmental 248,270 20,210 227,220 240,220 13,000 5.7% Administrative Charges for Svc 85,300 - 80,000 80,000 - 0.0% General Taxable Sales/Service (4,526) 282 1,000 1,000 0.0% Assessments searches 380 150 300 300 0.0% Plan Check/Site Exam Fees 215,943 165,169 190,000 190,000 0.0% Cond Use-Variance-Dev Fees 47,775 33,025 40,000 10,000 (30,000) -75.0% Engineering & Legal Fees 89,805 13,865 40,000 40,000 0.0% Bldg Permits -mail in fees 1,535 502 700 700 0.0% On-site Septic Program fees 44,550 44,783 44,500 44,500 0.0% Coop Agreement -public works 5,108 385 3,000 3,000 0.0% InterDepartmental Services -PW - - - - N/A Off Leash Annual Pass 130 12,055 - 10,000 N/A Total Gen Govt Service Charges 485,871 258,160 399,500 379,500 (20,000) -5.0% Coop Agreement -inspection 27,128 10,946 15,000 20,000 5,000 33.3% Coop Agreement -police 2,234,099 1,955,009 2,283,500 2,308,830 25,330 1.1% Police Special Services 84,156 26,191 75,000 80,000 5,000 6.7% False Alarm Fees 1,425 (50) 4,500 2,000 (2,500) -55.6% Police Reports 1,115 327 850 850 - 0.0% Police Reserve Receipts 350 - 500 300 (200) -40.0% Total Public Safety Service Charges 2,348,274 1,992,423 2,379,350 2,411,980 32,630 1.4% Other Fines - - - - - N/A Court Fines 78,705 44,956 80,000 80,000 0.0% Drug Task Force - - - - - N/A Dog Impound Fees 60 - 500 100 (400) -80.0% Total Fines and Forfeits 78,765 44,956 80,500 80,100 (400) -0.5% Interest on investments 59,810 - 54,000 54,000 - 0.0% Interest -NOW account 396 331 500 500 0.0% Total Investment Revenue 60,207 331 54,500 54,500 - 0.0% Utility Penalties 1,540 1,800 1,500 1,000 (500) -33.3% Green Fees 108,275 90,777 90,000 110,000 Rental -Golf carts & Club 52,760 31,312 44,000 46,000 Beer Sales 7,616 6,006 7,000 8,000 Pop Sales 4,132 - - - Concessions -taxable 2,554 4,354 5,300 5,000 Golf Ball Sales 1,427 (11) - - Pro Shop -taxable 513 1,865 3,700 1,000 Pro Shop -nontaxable 1,093 133 - - Other Golf Course Receipts 9,864 - Cash Over/Short (51) Revenue Source Total Golf Course Receipts Miscellaneous Revenue Rent Income Contributions & donations Refunds & Reimbursements Sale of Equipment Filing fees-elections/plats Total Miscellaneous Revenue Total Revenue City of Orono 2018 Revenue Budget Summary Percentage 2016 Y -T -D 2017 2018 Increase Increase Actual Aug 31,2017 Budget Budget (Decrease) (Decrease) 188,181 134,436 150,000 170,000 20,000 13.3% 24,332 1,957 3,000 3,000 - 0.0% 5,850 3,150 5,400 5,400 0.0% 1,470 - - - N/A 6,699 655 - 500 500 N/A 43,584 20,538 20,000 26,000 6,000 30.0% 12,510 2,100 4,000 4,000 - 0.0% 284,166 164,635 183,900 209,900 26,000 14.1% Health Insurance Cost (City Cost): Single: Family: Monthly Increase for 2018 (family only) Employees on Single: Employees in Family: Total Monthly Cost Single: Total Monthly Cost Family: Monthly Increase for 2018 (family only): Total Yearly Cost Increase: ***Of the 22 remaining employees, 8 employees would not be in the one of the two new employees unions. Health Insurance Cost (Employee Cost): 2017 2018 (Proposed) 2017 2018 (proposed) $ 915.00 $ 915.00 Single Coverage Premium Cost: $ 635.00 $ 692.00 $ 1,255.00 $ 1,329.25 Single Coverage Premium Employee Cost: $ $ $ 74.25 Employee + Family Premium Cost: $ 1,651.00 $ 1,799.00 $ 28.00 $ 28.00 Employee + Family Premium Employee Cost: $ 396.00 $ 470.00 $ 25.00 $ 26.00 Employee + Children Premium Cost: $ 1,270.00 $ 1,356.00 $ 25,620.00 $ 25,620.00 Employee + Children Premium Employee Cost: $ 15.00 $ 27.00 $ 31,375.00 $ 34,560.50 $ 3,185.50 Employee + Spouse Premium Cost: $ 1,333.50 $ 1,453.50 Employee + Spouse Premium Employee Cost: $ 78.50 $ 124.25 $ 683,940.00 $ 722,166.00 Total Single Employee Yearly Cost: $ - $ - Total Employee + Family Yearly Cost: $ 4,752.00 $ 5,640.00 Total Employee + Children Yearly Cost: $ 180.00 $ 324.00 Total Employee + Spouse Yearly Cost: $ 942.00 $ 1,491.00 Single Deductible Employee Cost Per Year: $ 2.600.00 $ 2.600.00 Family Deductible Employee Cost Per Year: $ 5,200.00 $ 5,200.00 ***32 of the 54 Employees are in the Police Department -Health Insurance Cost is part of their current Union Contract thru 2019. ***Of the 22 remaining employees, 8 employees would not be in the one of the two new employees unions. General Fund and Tax Levy Statistics Debt General Total General = Levy Service Fund Undesignated Surplus Levy Fund Year Levy Budget Fund Balance (Deficit) * Levy 2005 $ 5,132,950 52.14% $ 107,590 $ 2,990,470 2006 $ 5,544,740 46.72% $ 154,305 $ 3,282,710 2007 $ 5,584,240 52.94% $ 613,954 $ 3,365,520 2008 $ 6,034,650 53.36% $ 15,841 $ 3,705,790 2009 $ 6,163,850 56.00% $ 82,796 $ 3,857,431 2010 $ 5,928,210 54.60% $ (46,649) $ 3,889,710 2011 $ 5,785,630 64.00% $ 249,598 $ 3,932,260 2012 $ 5,785,630 60.00% $ (340,480) $ 3,932,260 2013 $ 7,348,630 50.00% $ 185,731 $ 3,946,260 2014 $ 7,333,630 58.00% $ 540,942 $ 3,946,260 2015 $ 7,579,870 55.85% $ 661,025 $ 4,016,500 2016 $ 7,708,570 56.52% $ 735,723 $ 4,016,500 2017 $ 7,988,364 253000 $ 5,205,230 $ 4,197,240 Debt Total = Levy Service PMP Total Levy rease Levy Levy Levy Increase Tax Rate - $ 471,200 $ - $ 3,461,670 - 16.25 9.77% $ 520,442 $ - $ 3,803,152 9.86% 15.31 2.52% $ 717,710 $ - $ 4,083,230 7.36% 14.26 10.11% $ 685,370 $ - $ 4,391,160 7.54% 13.58 4.09% $ 707,256 $ - $ 4,564,687 3.95% 13.18 0.84% $ 776,170 $ - $ 4,665,880 2.22% 13.68 1.09% $ 769,500 $ - $ 4,701,760 0.77% 14.99 0.00% $ 769,500 $ - $ 4,701,760 0.00% 16.28 0.36% $ 755,500 $ - $ 4,701,760 0.00% 17.67 0.00% $ 755,500 $ - $ 4,701,760 0.00% 17.39 1.78% $ 755,500 $ - $ 4,772,000 1.49% 17.39 0.00% $ 755,500 $ 183,000 $ 4,955,000 3.83% 17.33 4.50% $ 754,990 $ 253000 $ 5,205,230 5.05% 16.84 City of Orono 2018 General Fund Budget Departmental Budgets 2018 Dollar % 2016 2016 2017 Draft Increase Increase Budget Actual Budget Budget (Decrease) (Decrease) Mayor & Council 83,240 83,440 85,150 85,165 15 0.02% Administration 291,120 268,802 297,150 323,641 26,491 8.92% Elections 18,130 18,725 3,160 25,552 22,392 708.61% Assessing 180,000 86,000 180,000 182,000 2,000 1.11% Finance 322,320 315,955 323,670 328,945 5,275 1.63% Law/Legal Services 102,500 112,918 104,000 112,000 8,000 7.69% Central Services 244,470 268,437 265,900 258,800 (7,100) -2.67% Human Services 12,400 12,426 12,400 12,400 - 0.00% Police 4,076,850 3,837,514 4,236,760 4,391,613 154,853 3.65% Fire Protection Services 395,150 393,476 397,000 390,000 (7,000) -1.76% Building & Zoning 707,050 693,366 762,470 749,711 (12,759) -1.67% Engineering 20,000 9,893 20,000 15,000 (5,000) -25.00% Street Maintenance 493,830 475,551 499,825 525,857 26,032 5.21% Parks 108,120 109,840 116,469 173,136 56,667 48.65% Golf Course 152,640 170,346 172,670 172,831 161 0.09% Special Services 95,750 123,018 95,750 95,750 - 0.00% Special Projects -Contingencies 40,000 8,004 40,990 25,000 (15,990) -39.01% Transfers to Other Funds 365,000 - 375,000 380,000 5,000 1.33% Total General Fund Expenditures 7,708,570 6,987,711 7,988,364 8,247,401 259,037 3.24% City of Orono 2018 Line Item Budget Mayor & Council 41110 Dollar % 2016 2016 2017 Y -T -D 2018 Increase Increase Budget Actual Budget Aug 30, 2017 Draft Budget (Decrease) Decrease Personal Services 101-41110-101 101 Full -Time Employees Regular 18,200 18,200 18,200 11,842 18,200 0 0.00% 101-41110-122 122 FICA 1,390 1,392 1,390 906 1,392 2 0.14% 101-41110-151 151 Worker's Comp Insurance Prem 50 50 70 0 73 3 4.29% Total Personal Services 19,640 19,642 19,660 12,748 19,665 5 0.03% Other Expenses 101-41110-433 433 Memberships 62,100 62,198 63,990 27,795 64,000 10 0.02% 101-41110-437 437 Training & Development 500 267 500 325 500 0 0.00% 101-41110-439 439 Meeting Expenses 1,000 1,332 1,000 659 1,000 0 0.00% 101-41110-489 489 Other Miscellaneous Charges 0 0 0 469 0 0 N/A Total Other Expenses 63,600 63,797 65,490 29,249 65,500 10 0.02% City Council Total 83,240 83,440 85,150 41,996 85,165 15 0.02% City of Orono 2018 Line Item Budget Administration 41300 Supplies & Maintenance Dollar % 44 300 136 2016 2016 2017 Y -T -D 2018 Increase Increase 136 300 0 Budget Actual Budget Aug 30, 2017 Draft Budget Decrease Decrease Personal Services 6,000 5,245 6,000 3,030 6,000 0 0.00% 101-41300-101 101 Full -Time Employees Regular 192,350 178,244 197,790 99,735 219,918 22,128 11.19% 101-41300-102 102 Full -Time Employees Overtime 1,300 1,098 1,300 149 1,300 0 0.00% 101-41300-103 103 Part -Time Employees 0 0 0 51,200 0 0 N/A 101-41300-104 104 Temporary Employees Regular 10,500 9,171 10,500 5,479 10,500 0 0.00% 101-41300-121 121 PERA 14,520 13,305 14,930 6,604 16,591 1,661 11.13% 101-41300-122 122 FICA 15,620 13,536 16,030 11,024 17,727 1,697 10.59% 101-41300-135 135 City Benefit Contribution 37,020 34,733 37,020 17,203 37,911 891 2.41% 101-41300-142 142 Unemployment Benefit Payments 0 0 0 6,792 0 0 N/A 101-41300-151 151 Worker's Comp Insurance Prem 1,210 1,210 1,280 0 1,394 114 8.91% Total Personal Services 272,520 251,296 278,850 198,186 305,341 26,491 9.50% Supplies & Maintenance 101-41300-208 208 Books & Periodicals 300 44 300 136 300 0 0.00% Total Supplies & Maintenance 300 44 300 136 300 0 0.00% Professional Services 101-41300-319 319 Professional Services 6,000 5,245 6,000 3,030 6,000 0 0.00% Total Professional Serivices 6,000 5,245 6,000 3,030 6,000 0 0.00% City of Orono 2018 Line Item Budget Administration cont. 41300 Dollar % 2016 2016 2017 Y -T -D 2018 Increase Increase Budget Actual Budget Aug 30, 2017 Draft Budget Decrease Decrease Other Expenses 101-41300-331 331 Travel Expenses 4,000 3,600 4,000 1,422 4,000 0 0.00% 101-41300-340 340 General Advertising 0 0 0 0 0 0 N/A 101-41300-433 433 Memberships 1,300 1,338 1,000 40 1,000 0 0.00% 101-41300-437 437 Training & Development 3,500 4,338 3,500 2,030 3,500 0 0.00% 101-41300-439 439 Meeting Expenses 500 553 500 376 500 0 0.00% 101-41300-489 489 Other Miscellaneous Charges 3,000 2,394 3,000 172 3,000 0 0.00% Total Other Expenses 12,300 12,223 12,000 4,040 12,000 0 0.00% Administration Total 291,120 268,808 297,150 205,392 323,641 26,491 8.92% Supplies & Maintenance City of Orono 101-41410-208 208 Books & Periodicals 0 2018 Line Item Budget 0 0 0 0 N/A 101-41410-221 221 Equipment Parts & Accessories 2,200 Elections 2,000 0 2,500 500 25.00% 101-41410-240 240 Small Tools and Minor Equip 300 41410 0 0 300 300 N/A Total Supplies & Maintenance 2,500 41044 2,000 0 2,800 Dollar % Other Expenses 2016 2016 2017 Y -T -D 2018 Increase Increase 101-41410-319 319 Professional Services 0 Budget Actual Budget Aug 30, 2017 Draft Budget Decrease Decrease 101-41410-322 Personal Services 1,328 0 0 1,500 1,500 N/A 101-41410-102 102 Full -Time Employees Overtime 1,000 0 1,000 0 1,000 0 0.00% 101-41410-104 104 Temporary Employees Regular 11,800 12,330 0 0 16,000 16,000 N/A 101-41410-121 121 PERA 80 0 80 0 75 (5) -6.25% 101-41410-122 122 FICA 80 84 80 0 77 3 -3.75% 101-41410-437 437 Training & Development Total Personal Services 12,960 12,414 1,160 0 17,152 15,992 1378.62% Supplies & Maintenance 101-41410-208 208 Books & Periodicals 0 0 0 0 0 0 N/A 101-41410-221 221 Equipment Parts & Accessories 2,200 3,763 2,000 0 2,500 500 25.00% 101-41410-240 240 Small Tools and Minor Equip 300 281 0 0 300 300 N/A Total Supplies & Maintenance 2,500 41044 2,000 0 2,800 800 40.00% Other Expenses 101-41410-319 319 Professional Services 0 0 0 0 1,100 1,100 N/A 101-41410-322 322 Postage 800 1,328 0 0 1,500 1,500 N/A 101-41410-331 331 Travel Expenses 100 89 0 0 100 100 N/A 101-41410-340 340 General Advertising 220 325 0 0 400 400 N/A 101-41410-412 412 Building Rentals 0 0 0 0 0 0 N/A 101-41410-415 415 Other Equipment Rentals 0 0 0 0 0 0 N/A 101-41410-437 437 Training & Development 100 0 0 0 1,000 1,000 N/A 101-41410-439 439 Meeting Expenses 600 36 0 0 1,000 1,000 N/A 101-41410-489 489 Other Miscellaneous Charges 850 488 0 0 500 500 N/A Total Other Expenses 2,670 2,266 0 0 5,600 5,600 N/A Elections Total 18,130 18,725 3,160 0 25,552 22,392 708.61% City of Orono 2018 Line Item Budget Assessing 41550 Dollar % 2016 2016 2017 Y -T -D 2018 Increase Increase Budget Actual Budget Aug 30, 2017 Draft Budget (Decrease) Decrease Assessing Services 101-41550-302 302 Assessing Services 180,000 86,000 180,000 0 182,000 2,000 1.11% Total Assessing Service 180,000 86,000 180,000 0 182,000 2,000 1.11% Assessing Total 180,000 86,000 180,000 0 182,000 2,000 1.11% City of Orono 2018 Line Item Budget Finance Department 41500 Total Other Expenses 1,530 3,448 1,540 542 6,900 5,360 348.05% Dollar % 2016 2016 2017 Y -T -D 2018 Increase Increase Budget Actual Budget Aug 30, 2017 Draft Budget (Decrease) Decrease Personal Services 101-41500-101 101 Full -Time Employees Regular 211,380 219,329 210,430 136,069 207,386 (3,044) -1.45% 101-41500-102 102 Full -Time Employees Overtime 200 0 200 299 200 0 0.00% 101-41500-103 103 Part -Time Employees 21,400 19,497 22,520 12,958 23,953 1,433 6.36% 101-41500-104 104 Temporary Employees Regular 0 0 0 0 0 0 N/A 101-41500-121 121 PERA 17,030 17,225 17,470 11,200 17,350 (120) -0.69% 101-41500-122 122 FICA 17,370 16,790 17,820 11,016 17,697 (123) -0.69% 101-41500-135 135 City Benefit Contribution 52,080 38,337 52,080 26,989 53,862 1,782 3.42% 101-41500-151 151 Worker's Comp Insurance Prem 1,330 1,330 1,610 0 1,597 (13) -0.81% Total Personal Services 320,790 312,508 322,130 198,531 322,045 (85) -0.03% Supplies & Maintenance 101-41500-208 208 Books & Periodicals 0 0 0 0 0 0 N/A Total Supplies & Maintenance 0 0 0 0 0 0 N/A Professional Services 101-41500-301 301 Auditing and Acct'g Services 0 0 0 0 0 0 N/A Total Professional Services 0 0 0 0 0 0 N/A Other Expenses 101-41500-331 331 Travel Expenses 200 0 200 112 1,500 1,300 650.00% 101-41500-433 433 Memberships 330 325 340 330 400 60 17.65% 101-41500-437 437 Training & Development 1,000 3,123 1,000 100 5,000 4,000 400.00% Total Other Expenses 1,530 3,448 1,540 542 6,900 5,360 348.05% Finance Total 322,320 315,955 323,670 199,073 328,945 5,275 1.63% City of Orono 2018 Line Item Budget Law/Legal Services 41600 Dollar % 2016 2016 2017 Y -T -D 2018 Increase Increase Budget Actual Budget Aug 30, 2017 Draft Budget (Decrease) Decrease Professional Services 101-41600-305 305 Legal -Retainer 0 0 0 0 0 0 N/A 101-41600-306 306 Legal -Prosecution 38,500 42,478 40,000 17,569 40,000 0 0.00% 101-41600-307 307 Legal -Consulting 50,000 51,793 50,000 45,031 60,000 10,000 20.00% 101-41600-308 308 Code Enforcement 4,000 1,999 4,000 1,269 2,000 (2,000) -50.00% 101-41600-309 309 Jail Charges 10,000 16,648 10,000 3,642 10,000 0 0.00% Total Professional Services 102,500 112,918 104,000 67,511 112,000 8,000 7.69% Law/Legal Services Total 102,500 112,918 104,000 67,511 112,000 8,000 7.69% City of Orono 2018 Line Item Budget Central Services 41900 Total Supplies & Maintenance 83,770 90,681 96,200 96,448 93,000 (3,200) -3.33% Professional Services Dollar % 301 Auditing and Acct'g Services 20,000 2016 2016 2017 Y -T -D 2018 Increase Increase 311 Data Processing Communication 0 Budget Actual Budget Aug 30, 2017 Draft Budget Decrease Decrease 319 Supplies & Maintenance 12,000 26,501 18,000 9,762 18,000 0 0.00% 101-41900-201 201 Office supplies 14,570 11,685 14,000 5,101 12,000 (2,000) -14.29% 101-41900-221 221 Equipment Parts & Accessories 3,000 970 3,000 3,720 3,000 0 0.00% 101-41900-223 223 Bldg/Grounds Maint. Supplies 3,500 2,520 3,500 2,814 3,500 0 0.00% 101-41900-401 401 Repairs/Maint-Office Equip 16,000 9,949 16,000 3,597 10,000 (6,000) -37.50% 101-41900-403 403 Repairs/Maint-Misc. Equip 700 3,302 700 5,164 3,000 2,300 328.57% 101-41900-404 404 Repairs/Maint-Bldgs/Grounds 15,000 20,699 20,000 45,268 20,500 500 2.50% 101-41900-407 407 Janitorial Services 19,000 17,171 19,000 10,049 19,000 0 0.00% 101-41900-416 416 Software Licensing 12,000 24,385 20,000 20,736 22,000 2,000 10.00% Total Supplies & Maintenance 83,770 90,681 96,200 96,448 93,000 (3,200) -3.33% Professional Services 101-41900-301 301 Auditing and Acct'g Services 20,000 20,000 20,000 12,485 20,000 0 0.00% 101-41900-311 311 Data Processing Communication 0 0 0 0 0 0 N/A 101-41900-319 319 Professional Services 12,000 26,501 18,000 9,762 18,000 0 0.00% 101-41900-370 370 Insurance Agent of Record 0 0 0 0 0 0 N/A Total Professional Services 32,000 46,501 38,000 22,247 38,000 0 0.00% Insurances 101-41900-361 361 General Liability Ins 10,000 10,000 10,000 0 10,000 0 0.00% 101-41900-362 362 Umbrella Liability Ins 5,000 5,000 5,000 0 5,000 0 0.00% 101-41900-363 363 Bonds Insurance 200 200 200 0 200 0 0.00% 101-41900-365 365 Boiler & Machinery Ins 1,300 1,300 1,300 0 1,300 0 0.00% 101-41900-366 366 Property Insurance 5,000 5,000 5,000 0 5,000 0 0.00% 101-41900-367 367 Equipment Floaters Ins 1,300 1,300 1,300 0 1,300 0 0.00% 101-41900-368 368 Automotive Insurance 7,400 7,400 7,400 0 7,400 0 0.00% Total Insurances 30,200 30,200 30,200 0 30,200 0 0.00% City of Orono 2018 Line Item Budget Central Services cont. 41900 Dollar % 2016 2016 2017 Y -T -D 2018 Increase Increase Budget Actual Budget Aug 30, 2017 Draft Budget Decrease Decrease Other Expenses 101-41900-312 312 Bank Fees 4,000 6,181 4,500 2,109 4,000 (500) -11.11% 101-41900-321 321 Telephone 8,000 11,343 10,000 5,942 10,000 0 0.00% 101-41900-322 322 Postage 11,000 10,412 11,000 8,782 11,000 0 0.00% 101-41900-329 329 Internet/Other Communications 8,000 6,873 8,000 3,859 6,000 (2,000) -25.00% 101-41900-352 352 Printing & Publishing 15,000 15,373 15,000 16,618 15,000 0 0.00% 101-41900-381 381 Gas & Electric 29,000 29,757 29,000 15,716 29,100 100 0.34% 101-41900-382 382 Water Utilities 2,500 4,111 3,000 2,363 2,000 (1,000) -33.33% 101-41900-413 413 Office Equipment Rental 20,000 16,685 20,000 12,894 20,000 0 0.00% 101-41900-440 440 Special Equipment Replacement 0 11 0 0 0 0 N/A 101-41900-489 489 Other Miscellaneous Charges 1,000 307 1,000 346 500 (500) -50.00% Total Other Expenses 98,500 101,054 101,500 68,629 97,600 (3,900) -3.84% Capital Outlay 101-41900-512 512 Spec Assmts on Land & Int 0 0 0 0 0 0 N/A 101-41900-750 750 Interest on Special Assmnts 0 0 0 0 0 0 N/A Total Capital Outlay 0 0 0 0 0 0 N/A Central Services Total 244,470 268,437 265,900 187,325 258,800 (7,100) -2.67% City of Orono 2018 Line Item Budget Human Services 41800 2016 2016 2017 Budget Actual Budget Dollar % Y -T -D 2018 Increase Increase Aug 30, 2017 Draft Budget Decrease Decrease Other Expenses 101-41800-490 490 Contributions to Civic Org's 12,400 12,426 12,400 0 12,400 0 0.00% Human Services Total Total Other Expenses 12,400 12,426 12,400 0 12,400 0 0.00% 12,400 12,426 12,400 0 12,400 0 0.00% City of Orono 2018 Line Item Budget Police Department 42110 2016 2016 2017 Budget Actual Budget Dollar % Y -T -D 2018 Increase Increase Aug 30, 2017 Draft Budget Decrease Decrease 2,315,280 Personal Services 101-42110-101 101 Full -Time Employees Regular 101-42110-102 102 Full -Time Employees Overtime 101-42110-103 103 Part -Time Employees 101-42110-104 104 Temporary Employees Regular 101-42110-121 121 PERA 101-42110-122 122 FICA 101-42110-135 135 City Benefit Contribution 101-42110-142 142 Unemployment Benefit Payments 101-42110-151 151 Worker's Comp Insurance Prem City of Orono 2018 Line Item Budget Police Department 42110 2016 2016 2017 Budget Actual Budget Dollar % Y -T -D 2018 Increase Increase Aug 30, 2017 Draft Budget Decrease Decrease 2,315,280 2,291,675 2,408,910 1,409,153 2,520,908 111,998 4.65% 50,000 21,890 50,000 11,401 50,000 0 0.00% 53,000 71,090 54,330 34,139 54,333 3 0.01% 0 0 0 0 0 0 N/A 359,730 362,096 374,280 218,635 391,520 17,240 4.61% 46,000 44,316 47,820 27,581 50,086 2,266 4.74% 401,580 338,372 401,580 218,031 414,945 13,365 3.33% 0 21914 0 0 0 0 N/A 70,830 70,830 109,150 0 114,000 4,850 4.44% Total Personal Services 3,296,420 3,203,183 3,446,070 1,918,941 3,595,792 149,722 4.34% Total Supplies & Maintenance 283,800 186,955 282,300 114,286 266,300 (16,000) -5.67% Supplies & Maintenance 101-42110-201 201 Office supplies 15,000 7,351 12,000 1,559 8,000 (4,000) -33.33% 101-42110-208 208 Books & Periodicals 1,000 0 1,000 324 1,000 0 0.00% 101-42110-212 212 Motor Fuels & Lubricants 115,000 44,913 115,000 45,799 105,000 (10,000) -8.70% 101-42110-221 221 Equipment Parts & Accessories 6,000 4,657 6,000 2,769 6,000 0 0.00% 101-42110-223 223 Bldg/Grounds Maint. Supplies 1,300 393 1,300 46 1,300 0 0.00% 101-42110-226 226 Clothing & personal equipment 25,000 31,783 25,000 15,555 27,000 2,000 8.00% 101-42110-228 228 Training Supplies 16,000 15,951 16,000 1,822 16,000 0 0.00% 101-42110-229 229 Explorers Program expenses 4,000 412 4,000 2,390 4,000 0 0.00% 101-42110-240 240 Small Tools and Minor Equip 6,000 1,839 6,000 2,015 5,000 (1,000) -16.67% 101-42110-401 401 Repairs/Maint-Office Equip 5,000 6,228 5,000 2,723 5,000 0 0.00% 101-42110-402 402 Repairs/Maint-Auto Equip 50,000 35,529 50,000 16,404 45,000 (5,000) -10.00% 101-42110-403 403 Repairs/Maint-Misc. Equip 8,000 4,597 8,000 4,571 8,000 0 0.00% 101-42110-404 404 Repairs/Maint-Bldgs/Grounds 6,500 7,219 6,500 2,250 6,500 0 0.00% 101-42110-407 407 Janitorial Services 15,000 12,434 15,000 7,277 15,000 0 0.00% 101-42110-416 416 Software Licensing 10,000 13,651 11,500 8,782 13,500 2,000 17.39% Total Supplies & Maintenance 283,800 186,955 282,300 114,286 266,300 (16,000) -5.67% Total Professional Services 110,750 98,451 119,810 62,893 135,641 15,831 13.21% Insurances City of Orono 101-42110-361 361 General Liability Ins 2018 Line Item Budget 35,000 35,000 0 35,000 0 0.00% 101-42110-362 362 Police Department cont. 10,000 10,000 10,000 0 10,000 0 0.00% 101-42110-366 42110 Property Insurance 1,000 1,000 1,000 0 1,000 0 0.00% 101-42110-367 367 Equipment Floaters Ins 0 Dollar % 0 0 0 2016 2016 2017 Y -T -D 2018 Increase Increase 9,000 0 9,000 Budget Actual Budget Aug 30, 2017 Draft Budget Decrease Decrease 0 Professional Services 0 0 0 N/A 101-42110-304 304 Engineering -Consulting 0 0 0 0 0 0 N/A 101-42110-307 307 Legal -Consulting 8,000 7,301 8,000 4,029 8,000 0 0.00% 101-42110-310 310 LOGIS-Applications 82,250 73,184 90,310 46,255 106,641 16,331 18.08% 101-42110-311 311 Data Processing Communication 5,000 4,947 6,000 3,743 6,000 0 0.00% 101-42110-317 317 Animal Care 1,000 424 1,000 85 500 (500) -50.00% 101-42110-319 319 Professional Services 14,500 12,596 14,500 8,781 14,500 0 0.00% 101-42110-370 370 Insurance Agent of Record 0 0 0 0 0 0 N/A Total Professional Services 110,750 98,451 119,810 62,893 135,641 15,831 13.21% Total Insurances 55,000 55,000 55,000 0 55,000 0 0.00% Insurances 101-42110-361 361 General Liability Ins 35,000 35,000 35,000 0 35,000 0 0.00% 101-42110-362 362 Umbrella Liability Ins 10,000 10,000 10,000 0 10,000 0 0.00% 101-42110-366 366 Property Insurance 1,000 1,000 1,000 0 1,000 0 0.00% 101-42110-367 367 Equipment Floaters Ins 0 0 0 0 0 0 N/A 101-42110-368 368 Automotive Insurance 9,000 9,000 9,000 0 9,000 0 0.00% 101-42110-379 379 Insurance Deductibles 0 0 0 0 0 0 N/A Total Insurances 55,000 55,000 55,000 0 55,000 0 0.00% City of Orono 2018 Line Item Budget Police Department cont. 42110 Total Capital Outlay 202,000 171,290 204,000 139,617 203,000 (1,000) -0.49% Police Total 4,076,850 3,837,514 4,236,760 2,294,717 4,391,613 154,853 3.65% Dollar % 2016 2016 2017 Y -T -D 2018 Increase Increase Budget Actual Budget Aug 30, 2017 Draft Budget Decrease Decrease Other Expenses 101-42110-321 321 Telephone 23,230 21,229 23,230 8,380 23,230 0 0.00% 101-42110-322 322 Postage 1,200 99 1,200 114 1,200 0 0.00% 101-42110-329 329 Internet/Other Communications 6,100 5,893 6,300 3,265 6,800 500 7.94% 101-42110-331 331 Travel Expenses 250 580 250 0 250 0 0.00% 101-42110-340 340 General Advertising 0 290 0 0 0 0 N/A 101-42110-352 352 Printing & Publishing 1,800 2,220 1,800 443 1,800 0 0.00% 101-42110-381 381 Gas & Electric 20,000 18,100 20,000 9,563 20,000 0 0.00% 101-42110-382 382 Water Utilities 1,200 1,405 1,200 0 1,200 0 0.00% 101-42110-413 413 Office Equipment Rental 2,800 4,133 3,300 2,627 3,600 300 9.09% 101-42110-414 414 EDP/Communications Equip Rent 20,000 23,211 20,000 11,006 23,000 3,000 15.00% 101-42110-433 433 Memberships 5,500 3,000 5,500 2,680 5,000 (500) -9.09% 101-42110-436 436 Towing Charges 0 157 0 0 0 0 N/A 101-42110-437 437 Training & Development 35,000 30,254 35,000 19,509 38,000 3,000 8.57% 101-42110-439 439 Meeting Expenses 2,500 2,395 2,500 1,207 2,500 0 0.00% 101-42110-440 440 Special Equipment Replacement 5,000 5,164 5,000 0 5,000 0 0.00% 101-42110-441 441 Licenses & Taxes 1,300 3,282 1,300 188 1,300 0 0.00% 101-42110-489 489 Other Miscellaneous Charges 3,000 1,222 3,000 0 3,000 0 0.00% Total Other Expenses 128,880 122,635 129,580 58,981 135,880 6,300 4.86% Capital Outlay 101-42110-550 550 Automotive Equipment 151,000 135,874 153,000 123,879 156,000 3,000 1.96% 101-42110-560 560 Furniture and Fixtures 0 0 0 0 0 0 N/A 101-42110-570 570 Office Equip and Furnishings 7,000 0 7,000 210 3,000 (4,000) -57.14% 101-42110-575 575 IT Hardware & Applications 23,000 5,378 23,000 390 23,000 0 0.00% 101-42110-580 580 Other Equipment 21,000 30,038 21,000 15,138 21,000 0 0.00% Total Capital Outlay 202,000 171,290 204,000 139,617 203,000 (1,000) -0.49% Police Total 4,076,850 3,837,514 4,236,760 2,294,717 4,391,613 154,853 3.65% City of Orono 2018 Line Item Budget Fire Protection Services 42260 Dollar % 2016 2016 2017 Y -T -D 2018 Increase Increase Budget Actual Budget Aug 30, 2017 Draft Budget (Decrease) Decrease Professional Services 101-42260-318 318 Fire Services 395,150 393,476 397,000 216,367 390,000 (7,000) -1.76% 101-42260-319 319 Professional Services 0 0 0 0 0 0 N/A Total Professional Services 395,150 393,476 397,000 216,367 390,000 (7,000) -1.76% Fire Protection Services Total 395,150 393,476 397,000 216,367 390,000 (7,000) -1.76% City of Orono 2018 Line Item Budget Building & Zoning 42400 Total Personal Services 577,800 576,521 581,420 368,995 571,821 (9,599) -1.65% Supplies & Maintenance Dollar % 208 Books & Periodicals 600 2016 2016 2017 Y -T -D 2018 Increase Increase 212 Motor Fuels & Lubricants 1,500 Budget Actual Budget Aug 30, 2017 Draft Budget Decrease Decrease 221 Personal Services 22 0 2,656 0 0 N/A 101-42400-226 101-42400-101 101 Full -Time Employees Regular 435,010 452,306 438,290 294,559 428,441 (9,849) -2.25% 101-42400-102 102 Full -Time Employees Overtime 200 379 200 35 200 0 0.00% 101-42400-103 103 Part -Time Employees 0 0 0 0 0 0 N/A 101-42400-104 104 Temporary Employees Regular 0 0 0 0 0 0 N/A 101-42400-121 121 PERA 32,640 33,690 32,890 19,777 32,148 (742) -2.26% 101-42400-122 122 FICA 33,290 34,579 33,540 20,420 32,791 (749) -2.23% 101-42400-135 135 City Benefit Contribution 74,040 52,947 74,040 34,203 75,822 1,782 2.41% 101-42400-142 142 Unemployment Benefit Payments 0 0 0 0 0 0 N/A 101-42400-151 151 Worker's Comp Insurance Prem 2,620 2,620 2,460 0 2,419 (41) -1.67% Total Personal Services 577,800 576,521 581,420 368,995 571,821 (9,599) -1.65% Total Supplies & Maintenance 3,100 214 6,200 2,656 2,000 (4,200) -67.74% Supplies & Maintenance 101-42400-208 208 Books & Periodicals 600 142 500 0 500 0 0.00% 101-42400-212 212 Motor Fuels & Lubricants 1,500 0 1,500 0 1,500 0 0.00% 101-42400-221 221 Equipment Parts & Accessories 0 22 0 2,656 0 0 N/A 101-42400-226 226 Clothing & personal equipment 0 50 0 0 0 0 N/A 101-42400-240 240 Small Tools and Minor Equip 0 0 3,200 0 0 (3,200) -100.00% 101-42400-402 402 Repairs/Maint-Auto Equip 1,000 0 1,000 0 0 (1,000) -100.00% 101-42400-403 403 Repairs/Maint-Misc. Equip 0 0 0 0 0 0 N/A Total Supplies & Maintenance 3,100 214 6,200 2,656 2,000 (4,200) -67.74% Total Professional Services 121,000 113,104 161,000 43,710 148,500 (12,500) -7.76% Professional Services 101-42400-304 304 Engineering -Consulting 2,500 0 12,500 0 7,500 (5,000) -40.00% 101-42400-307 307 Legal -Consulting 16,000 24,864 16,000 11,145 16,000 0 0.00% 101-42400-310 310 Inspection Services 100,000 85,065 100,000 30,886 100,000 0 0.00% 10142400-312 12 Bank Fees 0 0 0 0 5,000 5,000 N/A 101-42400-319 319 Professional Services 2,500 3,175 32,500 1,680 20,000 (12,500) -38.46% Total Professional Services 121,000 113,104 161,000 43,710 148,500 (12,500) -7.76% City of Orono 2018 Line Item Budget Building & Zoning cont. 42400 Dollar % 2016 2016 2017 Y -T -D 2018 Increase Increase Budget Actual Budget Aug 30, 2017 Draft Budget (Decrease) Decrease Other Expenses 101-42400-331 331 Travel Expenses 1,500 468 1,500 154 2,250 750 50.00% 101-42400-340 340 General Advertising 0 0 0 197 1,000 1,000 N/A 101-42400-415 415 Other Equipment Rentals 0 0 0 0 0 0 N/A 101-42400-416 416 Software Licensing 0 0 0 300 15,600 15,600 N/A 101-42400-433 433 Memberships 750 875 800 675 1,200 400 50.00% 101-42400-437 437 Training & Development 2,000 2,013 2,000 0 2,740 740 37.00% 101-42400-439 439 Meeting Expenses 750 139 9,450 185 4,500 (4,950) -52.38% 101-42400-441 441 Licenses & Taxes 150 32 100 0 100 0 0.00% Total Other Expenses 5,150 3,526 13,850 1,511 27,390 13,540 97.76% Building & Zoning Total 707,050 693,366 762,470 416,873 749,711 (12,759) -1.67% City of Orono 2018 Line Item Budget Engineering 43170 Dollar % 2016 2016 2017 Y -T -D 2018 Increase Increase Budget Actual Budget Aug 30, 2017 Draft Budget (Decrease) Decrease Professional Services 101-43170-303 303 Engineering -Retainer 0 0 0 0 0 0 N/A 101-43170-304 304 Engineering -Consulting 20,000 9,893 20,000 21,489 15,000 (5,000) -25.00% Total Professional Services 20,000 9,893 20,000 21,489 15,000 (5,000) -25.00% Engineering Total 20,000 9,893 20,000 21,489 15,000 (5,000) -25.00% City of Orono 2018 Line Item Budget Public Works Department 43000 2016 2016 2017 Budget Actual Budget Dollar % Y -T -D 2018 Increase Increase Aug 30, 2017 Draft Budget Decrease Decrease 187,680 Personal Services 101-43000-101 101 Full -Time Employees Regular 101-43000-102 102 Full -Time Employees Overtime 101-43000-121 121 PERA 101-43000-122 122 FICA 101-43000-135 135 City Benefit Contribution 101-43000-142 142 Unemployment Benefit Payments 101-43000-151 151 Worker's Comp Insurance Prem City of Orono 2018 Line Item Budget Public Works Department 43000 2016 2016 2017 Budget Actual Budget Dollar % Y -T -D 2018 Increase Increase Aug 30, 2017 Draft Budget Decrease Decrease 187,680 192,098 215,250 124,621 220,971 5,721 2.66% 11,000 11,228 11,000 6,244 11,000 0 0.00% 14,900 14,496 16,970 9,778 17,398 428 2.52% 15,200 14,195 17,310 9,791 17,746 436 2.52% 48,090 37,622 52,170 30,108 55,731 3,561 6.83% 0 0 0 0 0 0 N/A 12,680 12,680 18,800 0 19,296 496 2.64% Total Personal Services 289,550 282,319 331,500 180,542 342,142 10,642 3.21% 170 Supplies & Maintenance 101-43000-208 208 Books & Periodicals 101-43000-212 212 Motor Fuels & Lubricants 101-43000-221 221 Equipment Parts & Accessories 101-43000-222 222 Vehicle Equipment & Parts 101-43000-224 224 Street Maint. Materials/Supply 101-43000-226 226 Clothing & personal equipment 101-43000-240 240 Small Tools and Minor Equip 101-43000-402 402 Repairs/Maint-Auto Equip 101-43000-403 403 Repairs/Maint-Misc. Equip 101-43000-404 404 Repairs/Maint-Bldgs/Grounds 101-43000-408 408 Contracted Street Maint. 170 169 170 0 170 0 0.00% 45,600 31,663 40,000 1,029 35,000 (5,000) -12.50% 16,000 10,644 16,000 7,898 16,000 0 0.00% 8,000 4,433 8,000 4,217 8,000 0 0.00% 40,980 53,524 44,525 21,684 48,000 3,475 7.80% 3,500 3,915 3,500 2,989 4,000 500 14.29% 1,000 2,708 1,000 2,604 2,000 1,000 100.00% 7,000 11,350 10,000 10,974 10,000 0 0.00% 3,000 14,780 3,000 11,264 10,000 7,000 233.33% 0 10,635 0 91 4,500 4,500 N/A 47,810 10,779 7,500 13,162 8,000 500 6.67% Total Supplies & Maintenance 173,060 154,600 133,695 75,912 145,670 11,975 8.96% Professional Services 101-43000-304 304 PW Engineering -Consulting 0 0 0 0 0 0 N/A 101-43000-319 319 Professional Services 0 2,220 0 2,237 0 0 N/A Total Professional Services 0 2,220 0 2,237 0 0 N/A City of Orono 2018 Line Item Budget Public Works Department cont. 43000 Dollar % 2016 2016 2017 Y -T -D 2018 Increase Increase Budget Actual Budget Aug 30, 2017 Draft Budget Decrease Decrease Other Expenses 101-43000-331 331 Travel Expenses 0 0 0 169 175 175 N/A 101-43000-381 381 Gas & Electric 4,880 4,686 4,880 887 4,880 0 0.00% 101-43000-386 386 Street Lighting 21,690 26,064 25,000 13,488 25,000 0 0.00% 101-43000-414 414 EDP/Communications Equip Rent 0 775 0 191 750 750 N/A 101-43000-415 415 Other Equipment Rentals 960 11309 960 2,747 960 0 0.00% 101-43000-416 416 Software Licensing 0 0 0 0 2,000 2,000 N/A 101-43000-433 433 Memberships 430 180 0 0 250 250 N/A 101-43000-437 437 Training & Development 3,000 2,867 3,500 455 3,500 0 0.00% 101-43000-441 441 Licenses & Taxes 220 280 250 44 250 0 0.00% 101-43000-489 489 Other Miscellaneous Charges 40 252 40 628 280 240 600.00% Total Other Expenses 31,220 36,413 34,630 18,609 38,045 3,415 9.86% Public Works Total 493,830 475,551 499,825 277,301 525,857 26,032 5.21% City of Orono 2018 Line Item Budget Parks 45200 Supplies & Maintenance Dollar % 212 Motor Fuels & Lubricants 0 2016 2016 2017 Y -T -D 2018 Increase Increase 221 Equipment Parts & Accessories 500 Budget Actual Budget Aug 30, 2017 Draft Budget Decrease Decrease 223 Personal Services 9,875 7,600 3,769 7,600 0 0.00% 101-45200-225 101-45200-101 101 Full -Time Employees Regular 20,070 19,220 20,270 12,250 49,860 29,590 145.98% 101-45200-102 102 Full -Time Employees Overtime 0 231 0 211 0 0 N/A 101-45200-103 103 Part -Time Employees 0 10,023 0 5,528 0 0 N/A 101-45200-104 104 Temporary Employees Regular 10,000 0 10,000 0 10,000 0 0.00% 101-45200-121 121 PERA 1,510 1,419 1,520 935 3,739 2,219 145.99% 101-45200-122 122 FICA 2,300 1,593 2,320 1,050 4,579 2,259 97.37% 101-45200-135 135 City Benefit Contribution 3,600 2,091 3,600 2,152 11,574 7,974 221.50% 101-45200-151 151 Worker's Comp Insurance Prem 1,490 1,490 1,890 0 4,594 2,704 143.07% Total Personal Services 38,970 36,067 39,600 22,125 84,346 44,746 112.99% Supplies & Maintenance 101-45200-212 212 Motor Fuels & Lubricants 0 19 0 0 0 0 N/A 101-45200-221 221 Equipment Parts & Accessories 500 908 0 937 500 500 N/A 101-45200-223 223 Bldg/Grounds Maint. Supplies 1,500 9,875 7,600 3,769 7,600 0 0.00% 101-45200-225 225 Misc Park Supplies 10,000 7,309 10,000 1,411 15,000 5,000 50.00% 101-45200-402 402 Repairs/Maint-Auto Equip 0 20 0 246 200 200 N/A 101-45200-403 403 Repairs/Maint-Misc. Equip 0 3,744 0 779 1,000 1,000 N/A 101-45200-404 404 Repairs/Maint-Bldgs/Grounds 52,000 37,472 53,779 23,769 58,000 4,221 7.85% Total Supplies & Maintenance 64,000 59,349 71,379 30,910 82,300 10,921 15.30% Professional Services 101-45200-319 319 Professional Services 1,000 8,699 1,140 2,492 1,140 0 0.00% Total Professional Services 1,000 8,699 1,140 2,492 1,140 0 0.00% Total Other Expenses Parks Total City of Orono Other Expenses 101-45200-331 331 Travel Expenses 101-45200-381 381 Gas & Electric 101-45200-415 415 Other Equipment Rentals 101-45200-416 416 Software Licensing 101-45200-439 439 Meeting Expenses 101-45200-441 441 Licenses & Taxes 101-45200-489 489 Other Miscellaneous Charges 101-45200-490 490 Contributions to Civic Org's Total Other Expenses Parks Total City of Orono 2018 Line Item Budget Parks cont. 45200 Dollar % 2016 2016 2017 Y -T -D 2018 Increase Increase Budget Actual Budget Aug 30, 2017 Draft Budget Decrease Decrease 0 0 0 0 0 0 N/A 550 290 550 12 550 0 0.00% 3,300 5,249 3,500 2,221 3,500 0 0.00% 0 0 0 0 1,000 1,000 N/A 0 0 0 0 0 0 N/A 300 0 300 290 300 0 0.00% 0 186 0 30 0 0 N/A 0 0 0 0 0 0 N/A 4,150 5,725 4,350 2,553 5,350 1,000 22.99% 108,120 109,840 116,469 58,080 173,136 56,667 48.65% City of Orono 2018 Line Item Budget Golf Course 45210 Total Personal Services 81,940 87,566 93,970 54,613 84,533 (9,437) -10.04% Supplies & Maintenance Dollar % 201 Office supplies 300 2016 2016 2017 Y -T -D 2018 Increase Increase 212 Motor Fuels & Lubricants 5,000 Budget Actual Budget Aug 30, 2017 Draft Budget Decrease Decrease 221 Personal Services 4,336 1,500 1,216 2,500 1,000 66.67% 101-45210-223 101-45210-101 101 Full -Time Employees Regular 32,690 31,811 32,450 20,353 29,337 (3,113) -9.59% 101-45210-103 103 Part -Time Employees 37,160 49,914 53,340 30,251 34,262 (19,078) -35.77% 101-45210-104 104 Temporary Employees Regular 0 880 0 660 0 0 N/A 101-45210-121 121 PERA 3,640 0 0 734 2,200 2,200 N/A 101-45210-122 122 FICA 6,660 3,171 6,560 2,615 4,865 (1,695) -25.84% 101-45210-135 135 City Benefit Contribution 0 0 0 0 7,976 7,976 N/A 101-45210-142 142 Unemployment Benefit Payments 0 0 0 0 0 0 N/A 101-45210-143 143 OPEB Expense 0 0 0 0 0 0 N/A 101-45210-151 151 Worker's Comp Insurance Prem 1,790 1,790 1,620 0 5,893 4,273 263.77% Total Personal Services 81,940 87,566 93,970 54,613 84,533 (9,437) -10.04% Total Supplies & Maintenance 25,980 30,372 26,730 18,031 31,160 4,430 16.57% Supplies & Maintenance 101-45210-201 201 Office supplies 300 239 300 186 330 30 10.00% 101-45210-212 212 Motor Fuels & Lubricants 5,000 2,716 5,000 0 3,500 (1,500) -30.00% 101-45210-221 221 Equipment Parts & Accessories 1,500 4,336 1,500 1,216 2,500 1,000 66.67% 101-45210-223 223 Bldg/Grounds Maint. Supplies 4,500 7,411 4,500 3,163 6,800 2,300 51.11% 101-45210-226 226 Clothing & personal equipment 180 152 180 150 180 0 0.00% 101-45210-240 240 Small Tools and Minor Equip 0 59 500 110 500 0 0.00% 101-45210-401 401 Repairs/Maint-Office Equip 0 165 0 0 100 100 N/A 101-45210-402 402 Repairs/Maint-Auto Equip 0 185 250 37 250 0 0.00% 101-45210-403 403 Repairs/Maint-Misc. Equip 2,500 4,352 2,500 4,278 3,000 500 20.00% 101-45210-404 404 Repairs/Maint-Bldgs/Grounds 12,000 10,758 12,000 8,890 14,000 2,000 16.67% Total Supplies & Maintenance 25,980 30,372 26,730 18,031 31,160 4,430 16.57% Total Insurances 12,270 12,883 14,020 0 13,070 (950) -6.78% Other Expenses 101-45210-312 City of Orono Bank Fees 101-45210-319 319 Professional Services 101-45210-321 321 Telephone 101-45210-331 2018 Line Item Budget Travel Expenses 101-45210-340 340 General Advertising 101-45210-352 352 Printing & Publishing 101-45210-381 Golf Course cont. Gas & Electric 101-45210-415 415 Other Equipment Rentals 101-45210-433 433 Memberships 101-45210-437 45210 Training & Development 101-45210-440 440 Special Equipment Replacement 101-45210-441 441 Licenses & Taxes 101-45210-489 489 Other Miscellaneous Charges N/A 8,300 Dollar % 3,257 8,500 0 2016 2016 2017 Y -T -D 2018 Increase Increase 382 4.02% 250 Budget Actual Budget Aug 30, 2017 Draft Budget Decrease Decrease 150 Insurances 150 0 150 0 0.00% 0 101-45210-361 361 General Liability Ins 7,500 7,500 8,000 0 7,500 (500) -6.25% 101-45210-362 362 Umbrella Liability Ins 1,500 1,500 1,500 0 1,500 0 0.00% 101-45210-365 365 Boiler & Machinery Ins 300 300 350 0 300 (50) -14.29% 101-45210-366 366 Property Insurance 2,300 2,300 2,650 0 2,300 (350) -13.21% 101-45210-367 367 Equipment Floaters Ins 300 300 350 0 300 (50) -14.29% 101-45210-368 368 Automotive Insurance 370 370 370 0 370 0 0.00% 101-45210-369 369 Dram Shop Insurance 0 613 800 0 800 0 0.00% Total Insurances 12,270 12,883 14,020 0 13,070 (950) -6.78% 1,000 Other Expenses 101-45210-312 312 Bank Fees 101-45210-319 319 Professional Services 101-45210-321 321 Telephone 101-45210-331 331 Travel Expenses 101-45210-340 340 General Advertising 101-45210-352 352 Printing & Publishing 101-45210-381 381 Gas & Electric 101-45210-415 415 Other Equipment Rentals 101-45210-433 433 Memberships 101-45210-437 437 Training & Development 101-45210-440 440 Special Equipment Replacement 101-45210-441 441 Licenses & Taxes 101-45210-489 489 Other Miscellaneous Charges 1,000 4,962 4,000 1,501 5,000 1,000 25.00% 0 0 0 0 0 0 N/A 2,200 3,485 2,500 1,758 3,300 800 32.00% 0 0 0 0 0 0 N/A 1,000 500 1,750 500 1,750 0 0.00% 0 379 0 793 736 736 N/A 8,300 8,152 8,500 3,257 8,500 0 0.00% 9,500 10,012 9,500 6,734 9,882 382 4.02% 250 270 300 120 300 0 0.00% 150 0 150 0 150 0 0.00% 0 0 0 250 0 0 N/A 550 535 550 294 550 0 0.00% 0 119 0 17 0 0 N/A Total Other Expenses 22,950 28,414 27,250 15,223 30,168 2,918 10.71% City of Orono 2018 Line Item Budget Golf Course cont. 45210 Dollar % 2016 2016 2017 Y -T -D 2018 Increase Increase Budget Actual Budget Aug 30, 2017 Draft Budget Decrease Decrease Purchases for Resale 101-45210-090 090 PURCHASES FOR RESALE 0 0 0 0 0 0 N/A 101-45210-091 091 Beer For Resale 3,000 3,285 3,000 2,356 3,800 800 26.67% 101-45210-092 092 Soft Drinks For Resale 4,000 3,867 3,200 2,347 3,600 400 12.50% 101-45210-093 093 Concessions For Resale-Txbl 1,500 29 1,500 980 1,500 0 0.00% 101-45210-094 094 Concessions For Resale-NonTax 1,000 2,085 1,000 698 2,500 1,500 150.00% 101-45210-095 095 Pro Shop Items For Resale 0 1,846 2,000 1,208 2,500 500 25.00% 101-45210-099 099 Other For Resale 0 0 0 0 0 0 N/A Total Purchases for Resale 9,500 11,111 10,700 7,589 13,900 3,200 29.91% Golf Course Total 152,640 170,346 172,670 95,457 172,831 161 0.09% City of Orono 2018 Line Item Budget Special Services -Consulting & Police 43280 Dollar % 2016 2016 2017 Y -T -D 2018 Increase Increase Budget Actual Budget Aug 30, 2017 Draft Budget Decrease Decrease Personal Services 101-43280-102 102 Full -Time Employees Overtime 35,000 24,210 35,000 23,788 35,000 0 0.00% 101-43280-121 121 PERA 5,250 2,252 5,250 2,494 5,250 0 0.00% 101-43280-122 122 FICA 500 319 500 304 500 0 0.00% 101-43280-135 135 City Benefit Contribution 0 4 0 0 0 0 N/A Total Personal Services 40,750 26,784 40,750 26,586 40,750 0 0.00% Professional Services 101-43280-304 304 Engineering -Consulting 43,000 73,173 45,000 71,287 45,000 0 0.00% 101-43280-307 307 Legal -Consulting 12,000 23,061 10,000 5,576 10,000 0 0.00% 101-43280-319 319 Professional Services 0 0 0 0 0 0 N/A 101-43280-800 800 Special Projects, Contingency 0 0 0 0 0 0 N/A Total Professional Services 55,000 96,234 55,000 76,862 55,000 0 0.00% Special Services -Consulting & Police Total 95,750 123,018 95,750 103,448 95,750 0 0.00% City of Orono 2018 Line Item Budget Special Projects -Contingencies 43290 Dollar % 2016 2016 2017 Y -T -D 2018 Increase Increase Budget Actual Budget Aug 30, 2017 Draft Budget Decrease Decrease Capital & Transfers Personal Services 101-43290-510 510 Land 101-43290-101 101 Full -Time Employees Regular 0 0 0 0 0 0 N/A 0 Total Personal Services 0 0 0 0 0 0 N/A 375,000 Professional Services 380,000 5,000 1.33% Contingency Items 101-43290-304 304 Engineering -Consulting 0 0 0 0 0 0 N/A 101-43290-319 319 Professional Services 0 0 0 0 0 0 N/A (15,990) Total Professional Services 0 0 0 0 0 0 N/A -2.64% Other Expenses 7,708,570 6,987,717 7,988,364 4,199,341 8,247,401 259,037 3.24% 101-43290-489 489 Other Miscellaneous Charges 0 0 0 0 0 0 N/A Total Other Expenses 0 0 0 0 0 0 N/A Capital & Transfers 101-43290-510 510 Land 0 0 0 639 0 0 N/A 101-43290-720 720 Operating Transfers 365,000 0 375,000 0 380,000 5,000 1.33% Total Capital & Transfers 365,000 0 375,000 639 380,000 5,000 1.33% Contingency Items 101-43290-800 800 Special Projects, Contingency 40,000 8,004 40,990 13,675 25,000 (15,990) -39.01% Total Contingency Items 40,000 8,004 40,990 13,675 25,000 (15,990) -39.01% Special Projects -Contingencies Total 405,000 8,004 415,990 14,314 405,000 (10,990) -2.64% GENERAL FUND TOTAL 7,708,570 6,987,717 7,988,364 4,199,341 8,247,401 259,037 3.24% City of Orono Local Levy Page 1 2018 Over / Under 2017 2017 2018 Amount Percent TAX LEVIES General Fund $ 4,197,240 $ 4,404,551 $207,311 4.94% Pavement Management $ 253,000 $ 500,000 $247,000 97.63% GO Improvement 2010 $ 133,460 $ 130,470 -$2,990 -2.24% GO Improvement 2014 $ 428,700 $ 174,000 -$254,700 -59.41% GO Improvement 2016 $ 192,830 $ 406,530 $213,700 110.82% Total Local Tax Capacity Rate $5,205,230 $5,615,551 $410,321 7.88% Page 1 TAX CAPACITY Net Tax Capacity (To calculate rate) LOCAL LEVY Total levy all funds TAX CAPACITY RATES General Revenue Pavement Management Levy GO Improvement 2010 GO Improvement 2014 GO Improvement 2016 Total Local Tax Capacity Rate City Of Orono Tax Capacity, Local Levy, & Tax Capacity Rates 17.062% 2017 Over / Under 2018 Actual Estimated 2017 2018 Amount Percent $30,902,466 $32,911,860 $2,009,394 6.50% $5,205,230 $5,615,551 $410,321 7.88% 13.582% 13.383% -0.199 0.819% 1.519% 0.701 0.432% 0.396% -0.035 1.387% 0.529% -0.859 0.624% 1.235% 0.611 16.844% 17.062% 0.218 Levy Increase Tax Capacity (N Tax Capacity R, Net City Tax $ Increase from % Increase frorr Effect of 2018 Tax Levy & Budget on Residential Properties No Change in Value Tax Capacity (net) = 1 % of first $500,000 market value, plus 1.25% of all value over $500,000 ** Assumes no change in value Actual Estimated Actual Estimated Actual Estimated Actual Estimated 2017 2018 2017 2018 2017 2018 2017 2018 Value $250,000 $250,000 $500,000 $500,000 $1,000,000 $1,000,000 $2,000,000 $2,000,000 MVE $14,740 $14,740 $0 $0 $0 Tax Value $235,260 $235,260 $500,000 $500,000 $1,000,000 $1,000,0001 $2,000,000 $2,000,000 7.88% 7.88% 7.88% 7.88% et) 2,353 2,353 5,000 5,000 11,250 11,250 23,750 23,750 ite 16.844% 17.062% 16.844% 17.062% 16.844% 17.062% 16.844% 17.062% $396.34 $401.48 $842.20 $853.12 $1,894.95 $1,919.52 $4,000.45 $4,052.32 2017 $5.14 $10.92 $24.57 $51.87 12017 1.30% 1.30% 1.30% 1.30% Tax Capacity (net) = 1 % of first $500,000 market value, plus 1.25% of all value over $500,000 ** Assumes no change in value Levy Increase Tax Capacity (N Tax Capacity R, Net City Tax $ Increase from % Increase from Effect of 2018 Tax Levy & Budget on Residential Properties 5.0% Increase in Value Tax Capacity (net) = 1 % of first $500,000 market value, plus 1.25% of all value over $500,000 ** Assumes a 5.0% Increase in value Actual Estimated Actual Estimated Actual Estimated Actual Estimated 2017 2018 2017 2018 2017 2018 2017 2018 Value $250,000 $262,500 $500,000 $525,000 $1,000,000 $1,050,000 $2,000,000 $2,100,000 MVE $14,740 $13,615 $0 $0 $0 Tax Value $235,260 $248,885 $500,000 $525,000 $1,000,000 $1,050,0001 $2,000,000 $2,100,000 7.88% 7.88% 7.88% 7.88% et) 2,353 2,489 5,000 5,313 11,250 11,875 23,750 25,000 ite 16.844% 17.062% 16.844% 17.062% 16.844% 17.062% 16.844% 17.062% $396.34 $424.68 $842.20 $906.44 $1,894.95 $2,026.16 $4,000.45 $4,265.60 2017 $28.34 $64.24 $131.21 $265.15 2017 7.15% 7.63% 6.92% 6.63% Tax Capacity (net) = 1 % of first $500,000 market value, plus 1.25% of all value over $500,000 ** Assumes a 5.0% Increase in value Levy Increase Tax Capacity (N Tax Capacity RE Net City Tax $ Increase from % Increase frorr Effect of 2018 Tax Levy & Budget on Residential Properties 5.0% Decrease in Value Tax Capacity (net) = 1 % of first $500,000 market value, plus 1.25% of all value over $500,000 ** Assumes a 5.0% decrease in value Actual Estimated Actual Estimated Actual Estimated Actual Estimated 2017 2018 2017 2018 2017 2018 2017 2018 Value $250,000 $237,500 $500,000 $475,000 $1,000,000 $950,000 $2,000,000 $1,900,000 MVE $14,740 $15,865 $0 $0 $0 Tax Value $235,260 $221,635 $500,000 $475,000 $1,000,000 $950,0001 $2,000,000 $1,900,000 7.88% 7.88% 7.88% 7.88% et) 2,353 2,271 5,000 4,688 11,250 10,625 23,750 22,500 ite 16.844% 17.062% 16.844% 17.062% 16.844% 17.062% 16.844% 17.062% $396.34 $387.49 $842.20 $799.80 $1,894.95 $1,812.88 $4,000.45 $3,839.04 2017 -$8.85 -$42.40 -$82.07 -$161.41 12017 -2.23% -5.03% -4.33% -4.03% Tax Capacity (net) = 1 % of first $500,000 market value, plus 1.25% of all value over $500,000 ** Assumes a 5.0% decrease in value CREDIT OPINION 20 October 2016 New Issue City of Orono, MN New Issue - Moody's assigns Aaa to the City of Orono, MN's Ser. 2016A GO bonds Summary Rating Rationale Moody's Investors Service has assigned a Aaa rating to the City of Orono, MN's $2.8 million General Obligation Street Reconstruction Refunding Bonds, Series 2016A. Concurrently, Moody's maintains the Aaa rating on the city's outstanding general obligation (GO) debt. Post sale, the city will have $9.7 million of GO debt outstanding. Contacts The Aaa rating reflects the city's moderately sized and very wealthy residential tax base Jennifer Card 312-706-9983 favorably located near the Twin Cities employment center; strong financial operations Analyst supported by conservative management practices and healthy reserves, modest debt burden jennifer.card@moodys.com and with a slightly above average pension liability. Edward (Ted) 212-553-6990 Damutz Credit Strengths VP -Sr Credit Officer edward.damutz@moodys.com » Favorably located in the Twin Cities Metropolitan area Stable financial operations and healthy reserves levels, supported by a proactive and conservative management team with well-established financial policies Very strong income indices Credit Challenges Relatively smaller valuation than similarly rated entities Rating Outlook Outlooks are typically not assigned to local government issuers with this amount of debt. Factors that Could Lead to a Downgrade Material declines in fund balances and liquidity Deterioration of the city's tax base and demographic profile Materials increase in fixed cost burden Substantial increase in the city's debt burden and pension liability Key Indicators Exhibit 1 Orono (City of) MN 2011 2012 2013 2014 2015 Economy/Tax Base Total Full Value ($000) $ 2,767,493 $ 2,589,708 $ 2,536,140 $ 2,541,853 $ 2,697,179 Full Value Per Capita $ 372,576 $ 345,571 $ 334,319 $ 330,540 $ 346,458 Median Family Income (% of US Median) 182.4% 192.9% 180.8% 187.7% 187.7% Finances Operating Revenue ($000) $ 7,033 $ 6,835 $ 8,234 $ 9,009 $ 9,087 Fund Balance as a % of Revenues 77.9% 73.6% 59.7% 54.5% 70.9% Cash Balance as a % of Revenues 82.2% 59.6% 44.4% 73.2% 91.5% Debt/Pensions Net Direct Debt ($000) $ 10,791 $ 9,678 $ 8,531 $ 10,637 $ 9,622 Net Direct Debt / Operating Revenues (x) 1.5x 1.4x 1.0x 1.2x 1.1x Net Direct Debt / Full Value (%) 0.4% 0.4% 0.3% 0.4% 0.4% Moody's - adjusted Net Pension Liability (3 -yr average) to Revenues (x) N/A 1.6x 1.6x 1.8x 1.9x Moody's - adjusted Net Pension Liability (3 -yr average) to Full Value (%) N/A 0.4% 0.5% 0.6% 0.6% The table above reflects data through the close of fiscal 2015. Source: Moody's Investors Service; Audited Financia! Statements; US Census Bureau Detailed Rating Considerations Economy and Tax Base: Moderately Sized Tax Base Located in the Twin Cities Metropolitan Area; Recent Tax Valuation Growth Orono's tax base will likely remain stable due to recent tax base valuation growth as a result of new residential development. The city is located approximately 20 miles west of downtown Minneapolis (Aal stable) and is an affluent community with a sizable lakefront housing stock. The city is nearly entirely residential (88.3% of valuations) and it benefits from ease of access to city and suburban employment centers. While the city itself has little employment of its own, its proximity to the Twin Cities employment center makes it an attractive destination for a number of corporate executives. The city is mature and built out and the tax base has seen some declines in valuations during the economic downturn. Most recently, valuations ticked up by a significant 6.1% and 5.0% in 2014 and 2015 respectively, due to a rebounding economy, recent new residential development, and an increase in home values over the last two years. Management expects the valuations to continue to grow due to upcoming residential development projects planned for the next two years. Socioeconomic indicators for the city are very strong, with median family income at 187.7% of the nation. The city's unemployment rate as of July 2016 was a low 3.4%, tracking better than both the state (3.7%) and national (5.1%) rates for the same time period. Financial Operations and Reserves: Stable Financial Operations Supported by Healthy Reserves and Conservative Budgeting We expect the city's financial profile to remain strong due to conservative budgeting practices and policies that consistently produce balanced operations and a history of maintaining healthy reserve levels. The city's formal general fund policy is to hold 45% to 50% of its operating expenditures in reserves and transfers out any operating surpluses in excess of the target to various capital funds. In fiscal 2015 the city ended with an operating fund (General Fund and Debt Service Fund) surplus of $852,000, as a result of lower than budgeted expenditures related to fuel and personal costs in the police department and higher than budgeted revenues for building related fees. Operating Fund reserves totaled $6.4 million, or a very healthy 70.9% of operating revenues. Year to date results for fiscal 2016 reflect a $150,000 surplus in the general fund, net targeted transfers out to various capital funds in the amount of $350,000. The city expects balanced operations for 2017. The majority of the city's revenues are derived from property taxes which comprised 52.6% of operating fund revenues in 2015. The second and third largest revenue sources included user fees (31.8%) and licenses (5.9%). This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. 2 20 October 2016 City of Orono, MN: New Issue - Moody's assigns Aaa to the City of Orono, MN's Ser. 2016A GO bonds LIQUIDITY The city concluded fiscal year 2015 with a net cash balance across operating funds of $8.3 million, or a very healthy 91.5% of revenues. Debt and Pensions: Modest Debt and Slightly Above Average Pension Burden The city's below average debt burden will likely remain modest due to no planned future issuances. Inclusive of the transaction, the city's direct debt burden of 0.3% of full value is lower than both the state and national medians of 1.1% and 1.9% respectively. Including borrowing by overlapping entities, the city's overall debt burden is at 2.2% of full valuation. Debt service as a percentage of operating expenses was moderate at 16.3% of fiscal 2015 expenditures, while combined fixed costs, (pension contributions, OPEB and debt service) made up a still moderate 20.6% of 2015 revenues. DEBTSTRUCTURE All of the city's debt is fixed rate. Principal amortization is average with 88.8% of debt retired within 10 years. DEBT -RELATED DERIVATIVES The city is not a party to any derivative agreements. PENSIONS AND OPEB The city has a slightly above average employee pension burden. The city participates in the statewide General Employees Retirement Fund (GERF) and the Public Employees Police and Fire (PEPFF) plan, which is administered by the Public Employees Retirement Association (PERA). In fiscal 2015 the city's combined pension contributions totaled $465,000 or 5.2% of operating revenues. In fiscal 2015, Moody's total Adjusted Net Pension Liability (ANPL) for the city totaled $17.2 million, or 1.9 times fiscal 2015 operating revenues. Moody's ANPL reflects certain adjustments we make to improve comparability of reported pension liabilities. The adjustments are not intended to replace the city's reported contribution information, but to improve comparability with other rated entities. We determined the city's share of liability for GERF and PEPFF in proportion to its contributions to the plans. The city also administers a single -employer defined benefit healthcare plan. The plan provides lifetime healthcare insurance for eligible retirees and their spouses through the city's group health insurance plan, which covers both active and retired members. Retirees still pay their healthcare premium but benefit from an implicit rate subsidy. The city does not pay their premiums. As of January 1, 2014, the most recent actuarial valuation date, the city's unfunded actuarial accrued liability for OPEB was $831,138, or 9.2% of operating revenues. Management and Governance: Strong Institutional Framework with Conservative Budgeting Practices Minnesota cities have an institutional framework score of "Aa," or strong. Revenues are moderately predictable as cities rely primarily on property taxes. Some cities also rely on State Local Government Aid (LGA), which is distributed based on demographic and tax base factors. Revenue -raising flexibility is moderate as cities generally benefit from unlimited levying authority, except during years in which the state has imposed limits. Levy limits are not in place for the 2016-2017 biennium. Expenditures mostly consist of personnel costs, which are highly predictable. Cities typically maintain low fixed costs and have a moderate ability to reduce expenditures. Management utilizes a conservative budgeting approach which has led to the maintenance of healthy reserve levels. Legal Security The Series 2016 bonds are secured by the city's full faith and credit general obligation pledge which benefits from a dedicated levy unlimited by rate or amount. Use of Proceeds The proceeds of the 2016A bonds will be used refund the city's General Obligation Street Reconstruction Bonds, Series 2008A (callable 2018-2023 maturities) for an estimated savings of $200,000. Obligor Profile The city of Orono is located approximately 20 miles west of downtown Minneapolis, MN. The city encompasses an area of approximately 25 square miles and has an estimated population of 7,785. 20 October 2016 City of Orono, MN: New Issue - Moody's assigns Aaa to the City of Orono, MN's Ser. 2016A GO bonds Methodology The principal methodology used in this rating was US Local Government General Obligation Debt published in January 2014. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology. Ratings Exhibit 2 Orono (City of) MN Issue Rating General Obligation Street Reconstruction Aaa Refunding Bonds, Series 2016A Rating Type Underlying LT Sale Amount $2,795,000 Expected Sale Date 10/24/2016 Rating Description General Obligation Source: Moody's Investors Service 20 October 2016 City of Orono, MN: New Issue - Moody's assigns Aaa to the City of Orono, MN's Ser. 2016A GO bonds Q 2016 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. 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REPORT NUMBER 1046322 20 October 2016 City of Orono, MN: New Issue - Moody's assigns Aaa to the City of Orono, MN's Ser. 2016A GO bonds Contacts Edward (Ted) Damutz VP -Sr Credit Officer edward.damutz@moodys.com MOODY'S INVESTORS SERVICE 212-553-6990 Jennifer Card Analyst jennifer.card@moodys.com CLIENT SERVICES 312-706-9983 Americas Asia Pacific Japan EMEA 1-212-553-1653 852-3551-3077 81-3-5408-4100 44-20-7772-5454 20 October 2016 City of Orono, MN: New Issue - Moody's assigns Aaa to the City of Orono, MN's Ser. 2016A GO bonds Fund Balance Summary Fund Balance Percent os of 12/31 Dollars of Budget Budget 2012 3,199,987.00 43.55 2013 3,385,718.00 46.17% 7,348,630.00 2014 3,926,660.00 51.80% 7,333,630.00 2015 4,308,487.00 55.89% 7,579,870.00 2016 4,514,868.00 56.52% 7,708,570.00 7,987,860.00 Taxes Collected 2016: Taxes Collected 2017: Tax Advance Settlement Collected in Current Ad Valorem Taxes $ 3,977,693 June 2017: Delinquent Ad Valorem Taxes $ 18,184 Fiscal Disparities $ 34,805 Personal Property Tax $ 14,899 Penalties and Interest -Taxes $ 2,002 Total: $ 4,047,583 1, 904, 800.00 1,904,800.00 Orono Taxable Market Values % Increase 2016 2,539,973,498 2017 2,740,761,242 7.90% *2018 2,887,518,376 5.00% **2018 is estimated and not final Comprehensive Plan Budget Budgeted 2017 Engineering Consulting General Engineering $ 12,500.00 Professional Services Navarre Area Plan (NAP) $ 25,000.00 Professional Services Public Outreach $ 5,000.00 Other Professional Services $ 2,500.00 2018 Budget Last half of NAP $ 12,500.00 last half of outreach $ 5,000.00 2017 Budget 1st half of NAP $ 12,500.00 1st half of outreach $ 2,000.00 Unused 2017 Professional services $ 15,500.00 Proposed Budget Account Code 2018 $ 7,500.00 101-42400-304 $ 20,000.00 101-42400-319 101-42400-319 101-42400-319 2017 Annual Lake Area Police Command Staff Wage and Benefit Survey Minnetrista and Rogers have not been updated for 2017 Benefits Section Department Name Title 2018% Increase 2017 Salary Exempt / Non - Exempt Health Ins. Dental Vehicle CLEO Wayzata Chief 108,000 Exempt 1,159 Provided Minnetrista Director 96,491 Exempt 1100 Provided Orono Chief 108,811 Exempt 1255 Provided West Hennepin PSD Director 106,107 Exempt 1394(100%family)& $5,000 for HSA Provided Corcoran Chief 95,292 Exempt $1100/$1150 Provided Deephaven Chief 92,159 Exempt 1241 Single Paid Provided Rogers Chief 114,816 Exempt 1080 Provided Medina Director 106,383 Exempt 1753(100% family)& $4500 for HSA 110 Provided South Lake Mtka PD Chief 112,859 Exempt 1228 70 Provided Minnetrista and Rogers have not been updated for 2017 Deputy Chief/Sergeant Wage Summary 2014-2016 2014 Base Pay OT/other* Total Beck(Patrol) $80,038 $5,729 $85,767 Boris(Patrol) $80,038 $2,105 $82,143 Stensrud(Patrol)** $76,419 $2,678 $79,097 Wittke(Inv) $80,038 $2,678 $83,126 Fischer(Deputy Chief) $89,248 0 $89,228 *Other includes Overtime, Special Details (119), Comp Time, Premium holiday pay and paid holidays (not used) **Not at top Sergeant Pay 2015 Base Pay OT/other* Total Beck(Patrol) $82,035 $7,662 $89,697 Boris(Inv) $82,035 $2,348 $84,383 Stensrud(Patrol) $82,035 $4,528 $86,563 Wittke(Patrol) $82,035 $49450 $869485 Fischer(Deputy Chief) $89,248 0 $899248 *Other includes Overtime, Special Details (119), Comp Time, Premium holiday pay and paid holidays (not used) 2016 Base Pay OT/other* Total Beck(Patrol) $84,281 $5,182 $89,463 Boris(Patrol) $849281 $1,969 $869250 Stensrud(Patrol)** $84,281 $6,439 $90,720 Wittke(Inv) $84,281 $4,146 $88,427 Fischer(Deputy Chief)** $909090 0 $90,090 *Other includes Overtime, Special Details (119), Comp Time, Premium holiday pay and paid holidays (not used) **Wage Study Froze the Deputy Chief position. Sergeants and Officers wages were not considered in this study 2017 Base Pay Sergeant $86,382 Deputy Chief $90,377 June July August City of Orono 2018 Budget Process 6/9 Distribute budget packets to departments, completed June 23 6/26-6/30 Prepare budget documents for meetings with Administrator. 6/26 Work Session - Budget Priorities/Issues 6/24-6/29 Budget meetings with Administrator. 7/10-7/14 Budget meetings with Administrator. 7/5 —7/20 Prepare Draft Budget for Council Work Session 7/24 Draft Budget discussed at work session 7/25-7/31 Update budget to reflect input. 8/1-8/24 Update budget to reflect input. 8/28 Preliminary Budget discussed at Council work session. 8/29-9/7 Refine budget. September 9/11 Present the Preliminary Budget to Public. 9/25 Council adopt preliminary budget and tax levy. Preliminary budget submitted to State October and November 10/2-11-30 Finance preparation of budget, continue to refine budgets and work sessions as needed. Prepare Enterprise Fund budgets. Update CIP. December 12/11 TNT Hearing, Council adopt final levy, budgets, and fee schedule. 12/12 Final Budget information on website. 12/15 Certify Levy to Hennepin County. 12/18 Budget submitted to the state and distributes budget books to Council.