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

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• Election — 2026 is an election year, which will include voting for state governor and two City Council member positions. • Communications — the department was created within the General Fund in 2024. This allowed for better tracking of expenditures related to newsletters, social media, and other communication related costs. For 2025 budget, a Communications Specialist was hired. For 2026 budget, increases are based on true costs seen in YTD 2025 numbers. • Finance — audit service is moved back from the Central Services department in the General Fund. • Central Services — facilities related expenditures moved to the Facilities Services Fund and distributed into each respective department based on square footage of each maintained area and number of employees within each department. Audit service was moved back to the Finance department. • Police — budget includes an additional 0.5 cadet. Police software licensing is budgeted to accurately reflect police specific subscriptions and software. • Fire — a new joint power agreement fire department is currently being negotiated between the City of Orono and the City of Long Lake. • Community Development — budget includes preparation for the City's comprehensive plan with future years 2027-2029 to cover the drafting, creation, and finalization of the plan. • Public Works — Streets — based on review of the City's tree management plan, there is a need for significant increase for tree removal, maintenance and replacement. Contracted street maintenance also increased based on an average of the past three-year actuals. • Public Works — Spring Park — budget includes 1.5 FTE wage, which also sees the addition of service for Parks maintenance. • Parks — budget includes tree maintenance, removal and replacement needed at parks. • Special Projects — Contingencies —transfers to the Equipment Improvement Outlay fund, Facilities Fund and IT Service Fund are budgeted based on the Capital Improvement Plan on items that are General Fund related. Additional changes from the version presented at the September 8 work session includes the following: • Reducing office supplies in Central Services department by $1,000 offsetting with increase in Human Services department by same amount for the Gillespie Center. • Decreasing Parks Fund levy by $10,000 and increasing Parks department wages and benefits by same to increase seasonal parks employees' available work hours. More information can be found in the 2026 Preliminary Budget Book included with this council item. 3. Process: Tonight's action only approves the preliminary budget, which by state statute, must be certified to Hennepin County by September 30. Prior to adoption of the final budget, the City will hold a public hearing (Truth in Taxation Hearing, "TNT") at the council meeting scheduled for December 8th, 2025 at 6:00 pm. The purpose of the TNT hearing is to allow public comment on the budget and levy prior to the budget's adoption. Between now and the TNT meeting, the 2026 Fee Schedule and Capital Improvement Plan will be drafted and presented at council work sessions in October and November. These items will also be approved at the meeting on December 8th along with the Enterprise and Internal Service Funds Budget. 4. Staff Recommendation: Staff recommends approval of the 2026 Preliminary General Fund Budget. 151