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Date: September 23, 2024 Item: 16 <br />Presenter: Maggie Jin, Finance Director <br />Section: Finance Report <br /> <br />Title: Adopt 2025 Preliminary Tax Levy - Resolution 7507 <br /> <br /> <br />1.Purpose: <br />The purpose of this agenda item is to adopt the 2025 Preliminary Tax Levy. <br />2.Background: <br />By State Law the City is required to adopt a preliminary property tax levy by September 30th. <br />Once adopted, the preliminary levy may be reduced, but it cannot be increased. The property tax <br />levy has seven components. The first is the operating levy, which is adopted to fund the General <br />Fund Operating Budget and is increasing by $358.900 (5.48%) to $6,904,000. Next is the <br />Facilities Levy, which is decreasing to $225,000, a decrease of $150,000 (40%). The Fire Capital <br />levy is increasing $25,000 (9.09%) to $300,000 and is dedicated to fire capital needs. The <br />Pavement Management Levy is remaining the same at $1,000,000. The levy for Parks is also <br />remaining steady at $200,000. The Community Investment levy will decrease to zero in 2025 <br />from $200,000 in 2024, which is dedicated for projects of citywide value. The final levy <br />component is the Debt Service levy which will be increased by $182,000, which was reduced once <br />in 2024 and now going back to the normal levy amount for the 2014A Bond. The breakdown of <br />the tax Levy is as follows: <br /> <br />General Fund - Operating $6,904,000 <br />Facilities Fund $225,000 <br />Fire Capital Fund $300,000 <br />Pavement Management Fund $1,000,000 <br />Parks Fund $200,000 <br />Debt Service $1,002,000 <br />Total $9,631,000 <br /> <br />When compared to the 2024 tax levy, the 2025 levy is increasing by $215,900 or 2.29%. Based on <br />current information from the Hennepin County, adoption of this levy would result in no increase in <br />tax rate of 16.35%. The City of Orono's tax rate in 2024 was the fifth lowest in the County. <br />3.Staff Recommendation: <br />Staff recommends approval of the 2025 Preliminary Tax Levy. <br />AGENDA ITEM <br /> <br /> <br /> <br /> <br /> <br />COUNCIL ACTION REQUESTED <br />A motion to approve Resolution 7507 Adopting the 2025 Preliminary Tax Levy. <br />Exhibits <br />Exhibit A. Resolution 7507 - Adopt 2025 Preliminary Tax Levy <br />Exhibit B. Tax Rate <br />Exhibit C. Levy Detail <br />156