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$500,000 home; a $1,000,000 home will see <br />an increase of $133.24 (7.17%); and a <br />$2,000,000 home has an increase of $269.65 <br />(6.88%). The actual tax impact on any <br />particular property will depend on how the <br />property’s taxable value changed in relation <br />to the rest of the City. Tables illustrating a <br />5% increase in value and a 5% decrease in <br />value are included in this budget document. <br /> <br />General Fund Budget <br /> <br />General Fund Expenditures <br />The 2021 expenditure budget is $9,260,500 <br />which is an increase of $ 117,300 (1.3%) over <br />the 2020 budget. <br /> <br />The significant increase is the following: <br />Building Inspection Service (Professional <br />Services) is increasing $155,700 (10.53%). <br />This is due to having the building official <br />position in house transition to outsourcing the <br />duties. Therefore, there is only a slight <br />increase in Wages and Benefits (Personal <br />Services) of $55,300 (0.96%) while the Cost <br />of Living increases 3%. <br /> <br />The significant decrease is as follows: <br />Distribution to Other Government (Other <br />Expenses) is $116,200 (23.29%). The change <br />was to the accounting for the Toward Zero <br />Deaths Grant. The City was not designated as <br />the authorized representative in 2021. After <br />accounting for these more significant <br />increases and decreases, the remaining <br />General Fund increases the total of $22,500 <br />or 0.25%. <br /> <br />General Fund Revenues <br />For revenues, the General Fund budget also <br />totals $9,260,500 and is increasing by <br />$117,300 (1.3%). The largest increase in <br />revenues is the property tax line at $247,140. <br />Coop Police Services are increasing by <br />$25,060 and are the amounts charged to the <br />City of Spring Park, Minnetonka Beach and <br />Mound for providing them police services. <br />The significant decrease include $130,000 in <br />the State Grant line item which was also <br />discussed in the expenditure section. All <br />other revenue changes total $24,900 and <br />represent an increase of 0.27% of the revenue <br />budget. <br /> <br />Special Revenue Funds <br /> <br />The special revenue funds that budgets are <br />adopted for are the Park Fund, The Drug <br />Forfeiture Fund, and the TIF Fund. Special <br />revenue funds by definition have a primary <br />source of revenue that is dedicated for a <br />specific purpose. In the Park Fund the <br />primary revenue source is park dedication <br />fees collected from developers. By state law, <br />these funds must be used for parkland <br />acquisition and development. The Drug <br />Forfeiture Fund receives its primary funding <br />from the Police Department’s drug and <br />alcohol enforcement activities. The funds <br />must be used for drug and alcohol related <br />activities. The TIF Fund is used to account <br />for revenues related to the Orono Woods <br />Senior Housing Development. <br /> <br />Debt Service Levies <br /> <br />The 2021 levy for debt service is $579,480. <br />This levy is used to pay the debt service on <br />the City’s outstanding bonds. <br /> <br />Enterprise Funds <br /> <br />The Water, Sewer, Stormwater, and <br />Recycling Funds are designed to account for <br />the business type activities of the City. These <br />funds do not receive any property tax <br />revenue. The goal for the Enterprise funds is <br />to be fully funded by rates without depending <br />on special assessments for infrastructure <br />improvements. <br /> <br />While there is no formal adoption of the <br />expenditure budgets, the information is <br />included in the budget book. On the revenue <br />side of the budget, the utility rates are <br />City of Orono - 2021 Budget Page 4