09-22-2025 - Agenda Packet City Council - Regular Meeting

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AGENDA ITEM Date: September 22, 2025 Title: Adopt 2026 Preliminary Tax Levy - Resolution 7622 Presenter: Maggie Jin, Finance Director Section: Finance Report Purpose: The purpose of this agenda item is to adopt the 2026 Preliminary Tax Levy. Item: 16 2. Background: By State Law the City is required to adopt a preliminary property tax levy by September 30th. Once adopted, the preliminary levy may be reduced, but it cannot be increased. The property tax levy has seven components. The first is the operating levy, which is adopted to fund the General Fund Operating Budget and is increasing by $503,900 (7.36%) to $7,349,900. Next is the Facilities Levy, which is remaining flat at $225,000. The Fire Capital levy is increasing $160,000 (53.3%) to $460,000 and is dedicated to fire capital needs. The Pavement Management Levy is remaining the same at $1,000,000. The levy for Parks is slightly decreasing by $10,000 to $190,000. The final levy component is the Debt Service levy, decreasing by a total of $6,400. The breakdown of the tax Levy is as follows: General Fund - Operating $7,349,900 Facilities Fund $225,000 Fire Capital Fund $460,000 Pavement Management Fund $1,000,000 Parks Fund $190,000 Debt Service $1,053,600 Total $10,278,500 When compared to the 2025 tax levy, the 2026 levy is increasing by $647,500 or 6.72%. Based on current information from the Hennepin County, adoption of this levy would result in a tax rate of 16.405%, an increase of 0.05%. The City of Orono's tax rate in 2025 was the fourth lowest in the County. 3. Staff Recommendation: Staff recommends approval of the 2026 Preliminary Tax Levy and setting the truth -in -taxation meeting for December 8th at 6:00 pm. COUNCIL ACTION REQUESTED A motion to approve Resolution 7622 Adopting the 2026 Preliminary Tax Levy and set the truth -in - taxation meeting for December 8th at 6:00 pm. Exhibits A. Resolution 7622 - Adopt 2026 Preliminary Tax Levy B. Tax Rate C. Levy Detail 145