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fuel costs, and squad replacement costs. Administration is increasing <br />$69,600 (16.6%) due to wages. Part of this increase in an increase <br />for temporary scanning help which is offset by the reduction in <br />elections during the non-election year. Assessing is increasing <br />$40,000 (18.2%) and is based on the County’s cost sharing formula. <br />Finance is increasing by $52,000 (18.7%). The increase is in wages <br />and is offset by savings in the Professional Services line of Central <br />Services. The Golf Course budget is increasing $61,270 (18.2%). <br />The possible addition of an assistant grounds keeper to improve <br />chemical application and reduce dependency on outside providers is <br />being discussed with the HR committee. Based on it improving <br />financials, staff would also like to move this department back to a <br />standalone enterprise fund. As the result of increasing brush disposal <br />costs, the Brush Site is increasing by $15,100 (53.7%) While <br />inflation is creating upward pressure on many budget lines, wages <br />are the main driver of the increasing General Fund expenditures. <br /> <br />Additional information on general fund departments can be found in <br />the information included with this document. <br /> <br />General Fund Revenues. For revenues, the General Fund budget <br />also totals $10,923,500 and is increasing by $947,904 (9.7%). The <br />General Fund property tax levy is increasing by $650,904 (13.0%) <br />and covers two-thirds of the increase. The remaining third of the <br />revenue increase is from non-tax sources. The bulk of the non-tax <br />revenue increase is for contracted police services which are <br />increasing by $208,100. By working cooperatively with neighboring <br />cities, we are able to provide expanded services to our citizens while <br />keeping the tax rate as low as possible. <br /> <br />Other revenues that are increasing include Golf Course Revenue <br />increasing by $39,000 to more closely reflect the prior two-year’s of <br />actual revenue; and Investment revenue increasing by $28,400 to <br />reflect current interest rates. Detailed revenue information is include <br />with this document. <br /> <br />Special Revenue Funds. The special revenue funds that budgets are <br />adopted for are the Park Fund, The Drug Forfeiture Fund, and the <br />TIF Fund. Special revenue funds by definition have a primary <br />source of revenue that is dedicated for a specific purpose. In the <br />Park Fund the primary revenue source is park dedication fees <br />collected from developers and the tax levy. By state law, park <br />dedication fees must be used for parkland acquisition and <br />development. The Drug Forfeiture Fund receives its primary <br />funding from the Police Department’s drug and alcohol enforcement <br />activities. The funds must be used for drug and alcohol related <br />activities. The TIF Fund is used to account for revenues related to <br />the Orono Woods Senior Housing Development. The budgets for the <br />Special Revenue Funds will be adopted as part of the final budget <br />approved on December 12th. <br /> <br />Debt Service Levies. The 2023 levy for debt service is increasing <br />by $424,320 to $1,002,000. This levy is used to pay the debt service <br />on the City’s outstanding bonds. <br /> <br />Enterprise Funds. The Water, Sewer, Stormwater, Recycling, and <br />Cable Funds are designed to account for the business type activities <br />of the City. These funds do not receive any property tax revenue. <br />The goal for the Enterprise funds is to be fully funded by rates <br />without depending on special assessments for infrastructure <br />improvements. A preliminary budget is not adopted for the <br />Enterprise Funds, and expenditure information is included only for <br />your review. The Enterprise budgets will be adopted on December <br />12th with the rest of the budget. <br /> <br />A rate study is currently being worked on to set the 2023 rates. <br />Based on the expenditure budgets, rate increases will be in line with <br />the projections of previous rate studies which supported the larger <br />increases in the recent past, followed by more sustainable future <br />increases in the two to three percent range. The rate study will be <br />presented to the Budget Committee in October. Final Utility rates <br />will be approved as part of the Fee Schedule on December 12th. <br />ii <br />City of Orono <br />Preliminary Budget