11-24-2009 Council Work Session Packet

Home Browse Search

Orono City Council Committee of the Whole November 24,2009,6:15 p.m. Orono City Council Chambers Present: Mayor Jim White, Council Members Cynthia Bremer, Doug Franchot, Lili McMillan and Jim Murphy; Assistant City Administrator for Long-Term Strategy Mike Gaffron, Finance Director Ron Olson, City Clerk Lin Vee 1. 2010 Budget Discussion • An update and discussion regarding year-to-date expenditures and revenues for the 2009 budget was held. Although revenues are low, it is anticipated that expenditures and revenues will offset each other by year-end. • 2010 preliminary budget hasn't changed significantly. Most of the complaints the assessors have received are from owners who are losing limited market values. The tax rate will go up for first time since 2002 and the tax capacity is going down 2.2%. • 2011 budget assumptions include: o Inflation factor of 3.5% increase o Levy limits remain in effect with maximum levy increase of 3.7% o Property values continue to slide—estimated decrease of 8% o Permit fees remain flat • Tax rate will increase to 15.45% in 2011 based on assumptions. Graphs showing the tax rate and tax levy history were discussed. • The average value for new homes is down to approximately$450,000 from $900,000 a few years ago. The trend seems to be moving toward smaller homes. • It is important to continue to work on the Capital Improvement Plan (CIP). Police garage discussions have been on hold because of economy. After tornado this year, it was evident that the emergency operations center(EOC) in the Police Department would be inadequate in a major disaster. A training room/EOC would be included in a police garage addition. The city may want to consider designating an EOC at the Long Lake fire station. • Council requested a spreadsheet of the status of debt service. Olson indicated that information has been prepared and will be forwarded to Council. 2. 2010 Fee Schedule • Potential fee increases were discussed. Highlights include: o No increase in liquor license fees; may want to consider fee increase for clubs based on membership, as allowed by State Statutes, in the future. o Sanitary sewer connection increases of 6.25%for projects after 1997 based on special assessment rates. o Double fee for Special Event permit applications received within 10 business days of the event, i.e. $50 permit fee would increase to $100. o Annual Service Charge for On-site Septic System program will remain at$55; change fee listing to Annual Septic Fee. o Planning and zoning fees are basically a restructures of where the fees and permits are located. Increase in a few fees to maintain consistency is recommended. • The requirement for additional surveys was discussed. Gaffron noted that although a survey may be on file, it my not accurately reflect the current status of the project/property. At one time staff added hardcover information, but past Councils requested that the surveyor include the hardcover calculations as part of their survey work. Page 1 of 3