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City of Orono <br /> 2025 Preliminary Budget <br /> <br />particular property will depend on how the <br />property’s taxable value changed in relation to <br />the rest of the City. The table supplement <br />suggest a median City increase in market value <br />of 2.6%. For an average home in Orono, worth <br />1,056,900 in 2024, with the average increase in <br />market value, can expect an increase of $56.16 <br />(2.87%) in their City portion of their property <br />tax bill. <br /> <br />GENERAL FUND <br /> <br />General Fund Revenues. The 2025 General <br />Fund Revenue Budget totals $11,993,000, an <br />increase of $456,370 (3.96%). Property taxes <br />makes up 58% of the budget, with an increase <br />of $402,400 (6.13%). The remainder of the <br />General Fund revenue is made of non-tax <br />sources with the next largest revenue source <br />coming from public safety charge at 24%. Public <br />safety charge comes from service contracts with <br />neighboring cities for police protection. By <br />working cooperatively with these neighboring <br />cities, the police department is able to provide <br />enhanced service at a lower cost by eliminating <br />overhead and duplication of service. The <br />remaining 18% of revenue is made of: license, <br />permits, intergovernmental revenue, general <br />government service charges, fine and forfeit, <br />interest, and miscellaneous charges. <br /> <br />Detailed revenue information is included with <br />this document. <br /> <br />General Fund Expenditures. The 2025 <br />preliminary expenditure budget is $11,993,000 <br />which is an increase of $456,370 (3.96%) over <br />the 2024 budget. <br /> <br />By category, the largest increase is in Personal <br />Services (Wages and Benefits) in the amount of <br />$625,100 (8.29%). Offsetting the large increase <br />is Professional Services, which is decreasing by <br />$193,510 (-9.72%). Assessing service is no <br />longer to be charged to cities under a <br />population of 30,000 and will be included in <br />Hennepin County's portion of property taxes. <br />Long Lake Fire service cost is also decreased due <br />to no longer serving the Navarre service area, <br />which they had serviced for half of 2024 <br /> <br />By Department, the significant changes are: <br />Administration is increasing by $78,050 <br />(15.60%) offset by a decrease in Election of <br />$60,500 (-61.61%). Expenditure is moved <br />around due to 2025 being a non-election year <br />to account for more staff time to scan <br />documents in regards to data retention. <br />Communications is increasing by $110,550 <br />(283.46%) due to the addition of a <br />communication personnel. Assessing is <br />decreasing by $270,000 (100%) as Hennepin <br />County will no longer be charging cities with <br />population under 30,000 for assessing service, <br />but will include the cost in their portion of <br />property taxes. Central Services is increasing by <br />$84,400 (19.66%) offset by Parks decreasing by <br />$95,100 (-22.03%) due to reallocation of staff <br />time with the Parks and Facilities <br />Superintendent position restructured to provide <br />oversight to facilities. Police is increasing by <br />$347,940 (6.08%) due to personnel cost and the <br />additional allocation to IT service cost due to <br />added IT personnel. Fire overall is increasing by <br />$161,550 (11.24%). Orono Fire Department’s <br />first full year of operational service to the <br />Navarre service area offsets from Long Lake Fire <br />service and transitional cost of the North <br />service area. Orono Fire Department’s model of <br />fire service is a mixture of on-call and duty shift <br />model, therefore the significant difference in <br />personnel expenses from the previous model <br />serviced by Long Lake Fire Department. <br /> <br />Additional information on general fund <br />departments can be found in the information <br />included with this document. <br />Page 3 of 63 95