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section of the budget. The City of Orono had in its 2024 budget a decrease of <br />$106,940 (16.08%) due to the reduction of the Navarre service area from LLFD in <br />July of 2024. <br />Compensation for non-union employees have been reviewed and will be on a future <br />council meeting for Council consideration. The proposed changes have been included in <br />the preliminary budget. <br />Aside from the current operating needs of the General Fund, funding for fire equipment and bond <br />payments are the current needs for increase. In 2024, the 2014A bond levy was allowed a one- <br />time reduction and in 2025, the levy is reverted back to the original amount. Current projection <br />for Fire Capital fund is $505,550. In order to meet these needs without increasing the overall <br />levy, the recommendation is a combination of fund transfer, reallocating antenna lease revenue, <br />increasing capital levy and reducing general fund reserve policy to use potential surplus to offset <br />the needs. This allows the city to gradually increase the levy similar to the way the Pavement <br />Management levy was gradually increase in the past. Pressure on the levy will be reduced <br />significantly in 2026 when the expenditures associated with the Long Lake Fire Department are <br />eliminated. <br />The City’s strong financial reserves and long-term funding identified for the city’s capital <br />improvement plan has the City in a good position to navigate the current situation without <br />increasing the tax rate. <br />Staff met with the budget committee on September 5 to brief on the budget and levy. Staff is <br />requesting any additional comments or suggestions prior to bringing the 2025 Preliminary <br />General Fund Budget and Tax levy at the September 23, 2024 Council Meeting. <br />Attachments <br />1)2025 Preliminary Levy Detail <br />2)2025 Preliminary Tax Rate <br />3) Effect of Levy <br />4)2025 Preliminary GF Revenue Summary <br />5) 2025 Preliminary GF Revenue Line-Item Detail <br />6)2025 Preliminary Expenditure by Category <br />7) 2025 Preliminary Expenditure by Department <br />8)2025 Preliminary Expenditure Department Summary <br />9)2025 Preliminary Expenditure Line-Item Detail <br />10) 2025 Long Lake Fire Operating Budget <br />11) 2025 Long Lake Fire Contract Cost Allocation <br />Page 2 of 58 4