Laserfiche WebLink
 In 2024, the Orono Fire Department was in operation beginning July 1. For 2025 budget, <br />the Orono Fire Department will be operational for a full year. The increase in expenditure <br />for this department will follow the increase in operation. At the end of the Long Lake <br />Fire Department contract on December 31, 2025, the amount budgeted for Long Lake <br />Fire will be eliminated. It is possible that in the future, the City will have some contracts <br />with neighboring cities that will offset the costs. In the meantime, the cost is absorbed <br />into the General Fund operating budget. <br /> <br /> Cost for assessment services provided by the Hennepin County Assessor’s Office will be <br />absorbed in the county’s budget and will no longer be included with the city’s budget. In <br />2024, the amount was $270,000 in the general fund budget. <br /> <br /> <br />In the near future, the city will see some relief in the pressure on the levy as two required levy <br />amounts will be eliminated. The need for the levy portion paying for LL Fire will be eliminated <br />from the 2026 levy. The 2014 GO Improvement Bonds will be eliminated from the levy in 2029. <br /> <br />The 2025 budget process has some challenges, with phasing in the levy increases needed to <br />properly fund the capital and operating needs of the fire department while balancing the <br />remainder of the city’s needs. The City’s strong financial reserves and long-term funding <br />identified for the city’s capital plan has the City in a good position to navigate the current <br />situation to maintain a stable tax rate. <br /> <br />Over the past several years, the Council’s budget guidance has been to deliver a general fund <br />budget that keeps the tax rate steady. If the Council determines that there is a different objective, <br />staff will work to prepare a budget based on keeping the tax rate level. As part of the budget <br />process, staff will bring additional suggestions in order to meet the guidance provided. <br /> <br />Included with this memo are two different scenarios for the property tax levy and rates. The first <br />scenario is an estimated calculation of the levy amount to maintain the same tax rate as in 2024. <br />The second scenario would keep the levy stable for the majority of funds (Facilities, Pavement <br />Management, Parks, Community Investment) and takes into account the most minimal needs in <br />the General Fund. Also included is a chart detailing the annual budget process and the budget <br />timeline. <br /> <br />2 4