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2022 Budget – Page 1 <br />MEMORANDUM <br />To: Mayor Walsh and Orono City Council <br />From: Ron Olson, Finance Director <br />Subject: 2022 Budget <br />Date: August 23, 2021 <br /> <br />Attachments: Budget Information <br /> <br /> <br />Staff has continued to work on the 2022 budget. The information being provided tonight for the <br />Council’s review includes: <br /> <br /> Summary information for the General Fund budget. <br /> Tax levy information <br /> Enterprise expenditure budgets. <br /> <br />Issues for discussion: <br /> <br /> The General Fund budget has been looked at during work sessions in June and <br />July. If the Council has anything to add or discuss about the General Fund, this <br />will be the last scheduled opportunity prior to the adoption of the preliminary <br />budget during the September 27th meeting. <br /> <br /> The overall tax levy is increasing by $529,090. This increase does not increase the <br />overall tax rate. Included in the levy are increases to the Facilities levy of $80,000, <br />the Pavement Management Levy of $150,000, and the Parks Levy of $50,000. <br />These increases reflect the Council’s continued focus on the City’s infrastructure. <br />This is the levy that staff is prepared to bring to the Council for approval in <br />September. <br /> <br /> The expenditure budgets for the enterprise funds are also included for your review. <br />This is the first time that the Council is seeing this information. <br /> <br />Enterprise Budgets <br /> <br />The Enterprise Budgets (Utilities) include the following funds: Water; Sewer; <br />Stormwater; Recycling; and Cable. These funds are operated similar to a business and are <br />designed to be profitable. In recent years, the Council has directed staff to fully cover <br />infrastructure needs in the rate structure. Two years ago, the City adopted the best <br />practices of maintaining both operating and capital reserves. These two changes put <br />significant pressure on the utility rates. The increases of the last two years, while <br />significant, have placed the enterprise funds on a stable financial path for the future.