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Home My WebLink About09-08-2025 - Agenda Packet City Council - Work SessionAgenda City Council Work Session Monday, September 8, 2025, 5:00 PM City Council Chambers 12780 Kelley Parkway, Orono, MN 55356 952-249-4600 /oronomn.gov Roll Call Work Session Item 2026 Preliminary General Fund Budget and Tax Levy Adjournment Sign up for email notifications at oronomn.gov AGENDA ITEM Date: September 8, 2025 Title: 2026 Preliminary General Fund Budget and Tax Levy Presenter: Maggie Jin, Finance Director Section: Work Session Item Item: Purpose: The purpose of this item is to present the 2026 Preliminary General Fund Budget and Tax Levy to the City Council. 2. Staff Recommendation: Provide staff further feedbacks and recommendations on the preliminary 2026 general fund budget and tax levy. COUNCIL ACTION REQUESTED Provide staff further feedbacks and recommendations on the preliminary 2026 general fund budget and tax levy. Exhibits 2026 Preliminary General Fund Budget and Levy K MEMORANDUM To: Mayor Tunheim and Orono City Council From: Maggie Jin, Finance Director Subject: 2026 Preliminary General Fund Budget and Tax Levy Date: September 8, 2025 Attachments: A. Levy Detail B. Estimated Tax Rate C. Estimated Tax Rate Impact D. Tax Comparison E. 2026 General Fund Budget a. 2026 General Fund Revenue Budget b. 2026 General Fund Expenditure Budget F. 07-28-2025 Work Session Memo Work has been progressing on the 2026 budget. The draft preliminary General Fund budget and tax levy was presented at the July 28 Council work session. Since then, staff have been refining the budget as updated numbers are received and per the direction of City Council to reduce tax rate while maintaining needs. Tonight's information is being presented in advance of the adoption of the preliminary budget and tax levy that will occur on September 22, 2025. By statute, the city must adopt and certify the preliminary tax levy to Hennepin County by September 30. The projected tax rate with the updated preliminary budget comes in at 16.405% compared to the previous version at 16.797%. The rate comes in lower than the last five-year average tax rate (16.576%) and slightly higher than current year 2025 rate of 16.361%. The overall tax levy is anticipated to increase 6.72% or $647,500. The General Fund budget is anticipated to increase 4.57% or $545,550. There are a couple of variables that could still impact the budget and the tax rate: • Wages — the City is currently undergoing union negotiation to determine the wage increase for staff. • Health Insurance — the City is currently undergoing union negotiation with City contribution not yet agreed upon. Additionally, the City is undergoing a request for proposal (RFP) for health insurance. The City will not receive the actual amount of any rate increase until the end of September or early October. • Property Values — The final property values will not be received from the Hennepin County Assessor until after year-end. The tax rate calculations are based on the most recent numbers available as of mid -August and generally do not change significantly in either direction between now and the final. 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 1 of 59 3 From the previous draft presented to Council at the July 28 work session, the significant changes are as follows: • Pavement Management Levy —decrease of $100,000 • Facilities Fund Levy — decrease of $25,000 • Parks Fund Levy — decrease of $50,000 • General Fund Levy o Employee Compensation — decrease from first draft due to some movement in the union negotiations and updated projections. o Public Works (Streets) — Tree Repairs/Maintenance: decrease of $50,000. Based on review of the City's tree management plan, there is a need for significant increase for tree removal, maintenance and replacement. Staff is requesting any additional comments or suggestions prior to bringing the 2026 Preliminary General Fund Budget and Tax levy for adoption at the September 22, 2025 Council Meeting. A copy of the July 28 work session memo is attached along with a draft preliminary budget and tax levy information. 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 2 of 59 4 City of Orono 2026 Annual Budget LEVY DETAIL 2026 Over / Under 2025 2025 2026 Amount Percent TAX LEVIES General Fund - Total $6,846,000 $7,339,900 $493,900 7.21 % Facilities Fund 225,000 225,000 0 0.00% Fire Capital Fund 300,000 460,000 160,000 53.33% Pavement Management 1,000,000 1,000,000 0 0.00% Parks 200,000 200,000 0 0.00% GO Improvement 2014 300,000 296,900 -3,100 -1.03% GO Improvement 2021 760,000 756,700 -3,300 -0.43% Total Local Certified Tax Levy $9,631,000 $10,278,500 $647,500 6.72% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 3 of 59 5 City of Orono 2026 Annual Budget Estimated Tax Rate 2026 Over / Under 2025 Actual Estimated TAX CAPACITY 2025 2026 Amount Percent Net Tax Capacity (Adj Net Tax Capacity) $ 58,869,928 $ 62,653,121 $ 3,783,193 6.43% LOCAL LEVY Total Local Certified Tax Levy $ 9,631,000 $ 10,278,500 $ 647,500 6.72% City Tax Capacity Rate 16.361% 16.405% TAX CAPACITY RATES General Fund 11.63% 11.72% 0.09 Facilities Fund 0.38% 0.36% -0.02 Fire Capital Fund 0.51 % 0.73% 0.22 Pavement Management 1.70% 1.60% -0.10 Parks 0.34% 0.32% -0.02 GO Improvement 2014 0.51 % 0.47% -0.04 GO Improvement 2021 1.29% 1.21 % -0.08 Total City Tax Capacity Rate 16.361% 16.405% 0.05 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 4 of 59 6 Tax Capacity (Nei Tax Capacity Rat( Net City Tax Annual $ Change Monthly $ Chang % Change from 2 Effect of 2026 Tax Levy & Budget on Residential Properties Median 5.06% Increase in Market Value Actual Estimated Actual Estimated Actual Estimated Actual Estimated Actual Estimated 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 Value $250,000 $262,650 $500,000 $525,300 $1,110,400 $1,166,586 $2,000,000 $2,101,200 $4,000,000 $4,202,400 Market Value Exclusion (MVE) * $24,050 $22,912 $1,550 $0 $0 $0 $0 $0 $0 $0 Tax Value $225,950 $239,739 $498,450 $525,300 $1,110,400 $1,166,586 $2,000,000 $2,101,200 $4,000,000 $4,202,400 ** 2,260 2,397 4,985 5,316 12,630 13,332 23,750 25,015 48,750 51,280 16.361% 16.405% 16.361% 16.405% 16.361% 16.405% 16.361% 16.405% 16.361% 16.405% $369.67 $393.30 $815.50 $872.15 $2,066.37 $2,187.22 $3,885.69 $4,103.81 $7,975.89 $8,412.69 from 2025 $23.63 $56.65 $120.85 $218.12 $436.81 e from 2025 $1.97 $4.72 $10.07 $18.18 $36.40 325 6.39% 6.95% 5.85% 5.61% 5.48% As of 2025, Market Value Exclusion = First 40% of the first $95,000 of market value. For homestead value between $95,000 and $517,200, the exclusion is $38,000 minus 9% of the value over $95,000. Homesteads valued at $517,200 or more do not receive the exclusion ** Tax Capacity (net) = 1% of first $500,000 market value, plus 1.25% of all value over $500,000 The Market Value adjustment is based on the average market value increase on a residential property = 5.06% Median home value in Orono in 2025 is $1,110,400. 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 5 of 59 Tax Rate Comparison 60.000% 50.000% 40.000% 38. 33.238% 33.467% 34.429% 30.000% 25.757% 16.405 % 16.361% 19.772% 20.525% 20.836% 21.116% 20.000% 15.276% 10.000% 0.000% o�� O �a cca �• Ole0 e� $600.00 $500.00 $400.00 - 53.481% \°K,��a`�- e Q�c Leo ■ 2025 Tax Rate ■ 2026 Estimated Tax Rate Estimated Monthly City Property Tax on a $1,110,400 Home $300.00 $172.20 $208.10 $216.03 $219.30 $222.25 $200.00 $160.78 - $100.00 0aa oco tiara `.yea a`°a ear a O� �a� cue` �•� ��a0 c° ■ 2025 Estimated Monthly City Tax $562.89 $402.72 $349.83 $352.24 $362.37 $271.09 oc �- ,fie ca �e arc C.° Q�c ca hoc ■ 2026 Estimated Monthly City Tax 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 6 of 59 $ City of Orono 2026 General Fund Revenue Budget - Summary 2026 Percentage 2023 2024 2025 Draft Increase Increase Actual Actual Budget Budget (Decrease) (Decrease) Property Taxes 5,613,956 6,514,354 6,913,000 7,413,900 500,900 7.2% Licenses 23,425 34,785 16,500 21,400 4,900 29.7% Permits 778,088 730,669 636,500 636,500 0 0.0% Intergovernmental 686,742 494,016 310,150 314,150 4,000 1.3% Gen Govt Service Charges 1,065,721 947,454 952,300 923,400 -28,900 -3.0% Public Safety Service Charges 2,806,978 2,862,829 2,904,500 3,010,000 105,500 3.6% Fines and Forfeits 57,760 61,137 65,000 47,000 -18,000 -27.7% Investment Revenue 181,727 100,703 100,650 100,500 -150 -0.1% Miscellaneous and Other Revenue 111,856 221,137 36,400 13,700 -22,700 -62.4% Total Revenue 11,326,254 11,967,083 11,935,000 12,480,550 545,550 4.6% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 7 of 59 9 City of Orono 2026 General Fund Revenue Budget - By Line Item 2026 Percentage 2023 2024 2025 Draft Increase Increase Actual Actual Budget Budget (Decrease) (Decrease) Property Taxes Current Ad Valorem Taxes 5,535,686 6,426,203 6,846,000 7,339,900 493,900 7.2% Delinquent Ad Valorem Taxes 29,103 29,737 25,000 30,000 5,000 20.0% Fiscal Disparities 35,794 43,636 30,000 30,000 - 0.0% Personal Property Tax 12,009 13,590 10,000 12,000 2,000 20.0% Forfeited Tax Sale Apportionmt - 9 - - - N/A Rent Credit - - - - N/A Penalties and Interest -Taxes 1,364 1,178 2,000 2,000 - 0.0% Total Property Taxes 5,613,956 6,514,354 6,913,000 7,413,900 500,900 7.2% Licenses Beer & Liquor Licenses 11,900 17,500 7,100 10,000 2,900 40.8% Cigarette Licenses 1,500 1,500 750 1,500 750 100.0% Garbage Haulers Licenses 825 750 1,100 800 -300 -27.3% Other Business License/Permit 5,001 9,915 5,000 5,000 0 0.0% Rental Licenses 4,220 5,020 2,500 4,000 1,500 60.0% Dog Licenses -21 100 50 100 50 100.0% Total Licenses 23,425 34,785 16,500 21,400 4,900 29.7% Permits Building Permits 605,447 594,105 525,000 525,000 0 0.0% Zoning Permit 1,970 2,295 1,500 1,500 0 0.0% Mechanical/Septic/Other 117,355 101,076 75,000 75,000 0 0.0% Plumbing Permit 53,317 33,193 35,000 35,000 0 0.0% Total Permits 778,088 730,669 636,500 636,500 0 0.0% Intergovernmental Federal Grant -other 0 0 0 0 0 N/A Market Value Credit 406 412 150 150 0 0.0% Police Training Reimbursement 30,896 27,368 20,000 24,000 4,000 20.0% Fire State Aid 0 0 0 0 Police State Aid 276,529 325,994 260,000 260,000 0 0.0% Police Vest Reimbursement 0 0 0 0 0 N/A PERA State Aid 0 0 0 0 0 N/A State Grant -other 378,911 140,242 30,000 30,000 0 0.0% Grants/Aids from Other Govts 0 0 0 0 0 N/A Total Intergovernmental 686,742 494,016 310,150 314,150 4,000 1.3% Gen Govt Service Charges Administrative Charges for Svc 362,875 310,200 384,350 340,700 -43,650 -11.4% General Taxable Sales/Service 100 268 100 100 0 0.0% Assessments searches 70 40 50 50 0 0.0% Filing fees-elections/plats 16,170 18 0 50 50 N/A Zoning Disclosure 435 315 350 350 0 0.0% Plan Check/Site Exam Fees 359,307 286,889 250,000 250,000 0 0.0% Cond Use-Variance-Dev Fees 22,580 23,835 20,000 20,000 0 0.0% Engineering & Legal Fees 15,577 37,357 20,000 20,000 0 0.0% Bldg Permits -mail in fees 0 0 0 0 0 N/A On -site Septic Program fees 47,247 50,224 47,000 47,000 0 0.0% Off Leash Annual Pass 0 68 0 0 0 N/A Park Reservations 9,370 10,765 9,000 9,000 0 0.0% Coop Agreement -public works 229,917 214,940 220,450 235,150 14,700 6.7% Brush Site Fees 2,074 12,535 1,000 1,000 0 0.0% Total Gen Govt Service Charges 1,065,721 947,454 952,300 923,400 -28,900 -3.0% Public Safety Service Charges Coop Agreement -inspection 483 0 0 0 0 N/A Coop Agreement -police 2,688,054 2,713,948 2,822,000 2,908,300 86,300 3.1% Police Special Services 82,177 146,040 80,000 100,000 20,000 25.0% False Alarm Fees 0 0 500 500 0 0.0% Police Reports 3,168 2,105 1,000 1,000 0 0.0% Police Reserve Receipts 31,691 350 0 0 0 N/A Explorers program 1,405 385 1,000 200 -800 -80.0% Total Public Safety Service Charges 2,806,978 2,862,829 2,904,500 3,010,000 105,500 3.6% Fines and Forfeits Admin Citations -2,669 2,058 5,000 2,000 -3,000 -60.0% Court Fines 60,430 59,079 60,000 45,000 -15,000 -25.0% Drug Task Force 0 0 0 0 0 N/A Dog Impound Fees 0 0 0 0 0 N/A Total Fines and Forfeits 57,760 61,137 65,000 47,000 -18,000 -27.7% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 8 of 59 10 Interest Revenue Interest on investments Interest -NOW account Total Investment Revenue Miscellaneous and Other Revenue Utility Penalties Miscellaneous Revenue Convenience Fee Rent Income Contributions & donations Refunds & Reimbursements Sale of Equipment Residual Equity Transfers In Cash Over/Short Total Miscellaneous and Other Revenue City of Orono 2026 General Fund Revenue Budget - By Line Item 2026 Percentage 2023 2024 2025 Draft Increase Increase Actual Actual Budget Budget (Decrease) (Decrease) 180,994 100,000 100,000 100,000 0 0.0% 732 703 650 500 -150 -23.1% 181,727 100,703 100,650 100,500 -150 -0.1% 16 5 0 100 100 N/A 31,403 108,656 25,000 500 -24,500 -98.0% 0 0 0 0 0 N/A 5,400 900 5,400 5,400 0 0.0% 20,535 4,210 S,000 5,000 0 0.0% 4,380 56,076 1,000 2,500 1,500 150.0% 275 32,047 0 200 200 N/A 49,847 19,244 0 0 0 N/A 0 0 0 0 0 N/A 111,856 221,137 36,400 13,700 -22,700 -62.4% Total Revenue 11,326,254 11,967,083 11,935,000 12,480,550 545,550 4.6% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 9 of 59 11 2026 General Fund Revenue Budget Property Taxes 60% Miscellaneous Revenue 0% Investment Revenue 1% Fines and Forfeits 0% Licenses 0% Permits 5% Intergovernmental 3% 3en Govt Service Charges 7% Public Safety Service Charges 24 % 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 10 of 59 12 Personal Services Supplies & Maintenance Insurances Professional Services Other Expenses Capital Outlay Transfers to Other Funds Contingencies City of Orono 2026 General Fund Budget Major Expenditure Categories Dollar % 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget (Decrease) (Decrease) 7,076,453 7,593,749 8,141,650 7,869,500 (272,150) -3.34% 734,038 766,998 835,900 901,250 65,350 7.82% 214,300 210,600 221,100 221,900 800 0.36% 1,758,498 1,742,903 1,797,250 2,539,200 741,950 41.28% 815,482 683,002 525,150 373,700 (151,450) -28.84% 179,339 183,239 221,500 240,000 18,500 8.35% 1,580,000 256,407 177,450 320,000 142,550 80.33% 4,775 20,720 15,000 15,000 - 0.00% Total 12,362,884 11,457,618 11,935,000 12,480,550 545,550 4.57% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 11 of 59 13 Mayor & Council Administration Elections Communications Finance Assessing Law/Legal Services Human Services Central Services Police Fire Protection Services - LL Fire Protection Services - OR Community Development Street Maintenance Public Works - Spring Park Brush Site Engineering Parks Special Services Special Projects -Contingencies Transfers to Other Funds Total General Fund Expenditures City of Orono 2026 General Fund Budget Departmental Budgets Dollar % 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget (Decrease) (Decrease) 43,660 46,874 50,000 53,400 3,400 6.80% 485,705 479,958 573,800 613,850 40,050 6.98% 35,816 75,293 37,150 79,300 42,150 113.46% - 29,291 149,100 171,850 22,750 15.26% 334,416 301,232 346,250 432,550 86,300 24.92% 254,000 127,000 - - - N/A 144,782 123,660 121,000 121,000 - 0.00% 9,500 12,000 12,000 12,000 - 0.00% 392,220 495,241 520,250 293,850 (226,400) -43.52% 5,626,334 5,710,252 6,061,600 6,597,800 536,200 8.85% 589,974 629,351 558,000 947,400 389,400 69.78% 203,462 795,672 1,040,000 - (1,040,000) -100.00% 841,949 840,443 908,350 1,058,350 150,000 16.51% 768,804 760,964 750,100 1,022,600 272,500 36.33% 111,366 101,462 103,150 176,600 73,450 71.21% 32,748 46,619 46,750 53,300 6,550 14.01% 35,189 15,181 26,000 26,000 - 0.00% 444,117 361,747 343,050 386,300 43,250 12.61% 424,069 228,251 96,000 99,400 3,400 3.54% 4,775 20,720 15,000 15,000 - 0.00% 1,580,000 256,407 177,450 320,000 142,550 80.33% 12,362,885 11,457,618 11,935,000 12,480,550 545,550 4.57% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 12 of 59 14 2026 General Fund Expenditure BUDGETED EXPENDITURE BY SERVICE TYPE Public Works 10% General Government 14% Personal Services 63% Other Parks 4% Public Safety 69% BUDGETED EXPENDITURE BY CATEGORY Supplies & Maintenance 7% Contingencies 0% Insurances 2% Professional Services 20% Other Expenses 3% Capital Outlay 2% Transfers to Other Funds 3% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 13 of 59 15 City of Orono 2026 General Fund Budget - Departmental Summary Mayor & Council 41110 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services 19,717 19,535 19,700 19,750 50 0.25% Other Expenses 23,943 27,339 30,300 33,650 3,350 11.06% City Council Total 43,660 46,874 50,000 53,400 3,400 6.80% PROGRAM DESCRIPTION & OBJECTIVES: The City Council oversees the policies and procedures that govern the city in promoting the health, safety, and general welfare of the citizens of Orono OPERATING COST ACTIVITIES: * Personal Services include the wages and employment taxes for City Council Representatives (Mayor and 4 Council Members). * Other Expenses includes recorder for city council meetings, memberships, training and meeting expenses. City-wide Memberships are as follows: Suburban Rate Authority League of Minnesota Cities Metro Cities Operating Expenditure by Category 60,000 50,000 40,000 30,000 — ■ Personal Services ■ Other Expenses 20,000 10,000 0 2023 Actual 2024 Actual 2025 Budget 2026 Draft Budget 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 14 of 59 16 City of Orono 2026 General Fund Budget - Departmental Summary Administration 41300 Dollar % 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services 461,223 462,016 555,400 554,800 (600) -0.11% Professional Services 13,295 10,579 10,000 43,000 33,000 330.00% Other Expenses 11,188 7,363 8,400 16,050 7,650 91.07% Administration Total 485,705 479,958 573,800 613,850 40,050 6.98% PROGRAM DESCRIPTION & OBJECTIVES: The Administration Department includes the City Administrator who is responsible for meeting satatutory and legal obligations, implementing policy established by the City Council and ensuring the successful management of all city operations. In addition, the City Administrator is responsible for overseeing the human resource function. The City Clerk and Administrative Staff are also included in the Administration Department and perform various function such as customer service, general administrative duties, permits and licensing, elections, data practices, and record management. OPERATING COST ACTIVITIES: * Personal Services include the wages and employment taxes for the Administration Department. Staff Includes: City Administrator, City Clerk (75%), Management Assistant (85%), Administrative Assistant (85%), and Communciations Specialist (10%) * Professional Services includes IT services and facilities service. * Other Expenses includes training and development, memberships in professional organizations for the Administrative Staff and city wide employee recognition program. 700,000 — 600,000 — 500,000 400,000 300,000 200,000 100,000 0 Operating Expenditure by Category ■ Other Expenses ■ Professional Services ■ Personal Services 2023 Actual 2024 Actual 2025 Budget 2026 Draft Budget 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 15 of 59 17 City of Orono 2026 General Fund Budget - Departmental Summary Elections 41410 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services 30,746 67,321 33,450 69,400 35,950 107.47% Supplies & Maintenance 1,919 3,424 2,000 2,000 0 0.00% Other Expenses 3,151 4,548 1,700 7,900 6,200 364.71% Elections Total 35,816 75,293 37,150 79,300 42,150 113.46% PROGRAM DESCRIPTION & OBJECTIVES: The Elections Department administers all federal, state, county, and municipal elections held in the city. Temporary election judges are hired to provide the necessary staffing at polling locations, and for the operation of voting machines. The Administrative Staff provides supervision to the election judges as needed and maintains election records. OPERATING COST ACTIVITIES: * Personal Services are the wages for the temporary election judges and a portion of Administration Staff (10%). 2026 is an election year. * Supplies & Maintenance includes election equipment. * Other expenses include IT service, facilities service, postage, travel expenses, advertising, building/equipment rental, training, meeting expenses and other miscellaneous expenses. 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Operating Expenditure by Category ■ Other Expenses ■ Professional Services ■ Personal Services 2023 Actual 2024 Actual 2025 Budget 2026 Draft Budget 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 16 of 59 18 City of Orono 2026 General Fund Budget - Departmental Summary Communications 41430 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services 0 12,065 126,600 130,900 4,300 3.40% Professional Services 0 2,000 2,500 16,850 14,350 574.00% Other Expenses 0 15,226 20,000 24,100 4,100 20.50% Communications Total 0 29,291 149,100 171,850 22,750 15.26% PROGRAM DESCRIPTION & OBJECTIVES: The Communications Department is responsible for public communication including social media, website administration, and the newsletter. OPERATING COST ACTIVITIES: * Personal Services include the wages and employment taxes for Communications Department Staff. Staff Includes: City Clerk (10%), Management Assistant (5%), Administrative Assistant (5%), and Communication Specialist (90%). * Professional Services includes IT service, and facilities service. * Other expenses includes postage, newsletter, and training and development. Operating Expenditure by Category 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2023 Actual 2024 Actual 2025 Budget 2026 Draft Budget ■ Other Expenses ■ Professional Services ■ Personal Services 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 17 of 59 19 City of Orono 2026 General Fund Budget - Departmental Summary Finance 41500 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services 321,362 286,538 325,350 336,000 10,650 3.27% Supplies & Maintenance 65 0 0 0 0 N/A Professional Services 7,875 10,000 15,000 90,250 75,250 501.67% Other Expenses 5,114 4,694 5,900 6,300 400 6.78% Finance Total 334,416 301,232 346,250 432,550 86,300 24.92% PROGRAM DESCRIPTION & OBJECTIVES The Finance Department oversees the City's financial operations, investment, insurances, and employee benefits. It is responsible for preparing the budget document and annual report in accordance with generally accepted accounting principles. Finance department supports the City Administrator with human resources function. OPERATING COST ACTIVITIES: * Personal Services include the wages and employment taxes for the Finance Department Staff. Staff includes: Finance Director, Accountant/HR Representative and Accounting Technician. * Professional Services includes IT service and facilities service. * Other Expenses includes training and development, and memberships in professional organizations for the Finance Staff. 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Operating Expenditure by Category 2023 Actual 2024 Actual 2025 Budget 2026 Draft Budget ■ Other Expenses ■ Professional Services ■ Supplies & Maintenance ■ Personal Services 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 18 of 59 20 City of Orono 2026 General Fund Budget - Departmental Summary Assessing 41550 Dollar 2023 2024 2025 2026 Increase Actual Actual Budget Draft Budget Decrease Assessing Services 254,000 127,000 0 0 0 Assessing Total 254,000 127,000 0 0 0 PROGRAM DESCRIPTION & OBJECTIVES: The City contract with Hennepin County to provide Assessing services. Starting in 2025, Hennepin County will no longer charge the City directly. Increase Decrease N/A N/A 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 19 of 59 21 City of Orono 2026 General Fund Budget - Departmental Summary Law/Legal Services 41600 2023 2024 2025 2026 Actual Actual Budget Draft Budget Professional Services 144,782 123,660 121,000 121,000 Dollar Increase Increase Decrease Decrease 0 0.00% Law/Legal Services Total 144,782 123,660 121,000 121,000 0 PROGRAM DESCRIPTION & OBJECTIVES: The City maintains a renewable contract agreement with two local legal firms to provide legal services. The Legal Department provides professional representation and opinion on city services and operations. OPERATING COST ACTIVITIES: * Professional Services includes the costs associated with the contract with legal staff, prosecution costs, code enforcement, and jail charges. 0.00% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 20 of 59 22 City of Orono 2026 General Fund Budget - Departmental Summary Human Services 41800 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Other Expenses 91500 12,000 12,000 12,000 0 0.00% Human Services Total 9,500 12,000 12,000 12,000 0 0.00% PROGRAM DESCRIPTION & OBJECTIVES: The Human Services Department is comprised of area organizations that provide equal opportunity in employment, housing, public services, and education. The City maintains an affiliation with these organizations to ensure a strong relationship with area communities and their citizens. OPERATING COST ACTIVITIES: * Contributions are the contributions made to Human Service Organizations in the Orono area. Organizations include: The Gillespie Center 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 21 of 59 23 City of Orono 2026 General Fund Budget - Departmental Summary Central Services 41900 2023 2024 Actual Actual Personal Services 24,736 73,486 Supplies & Maintenance 70,621 71,032 Professional Services 99,548 121,592 Insurances 63,300 61,000 Other Expenses 134,015 168,131 Dollar 2025 2026 Increase Increase Budget Draft Budget Decrease Decrease 145,700 0 (145,700) -100.00% 81,500 10,000 (71,500) -87.73% 136,250 215,550 79,300 58.20% 64,000 67,300 3,300 5.16% 92,800 1,000 (91,800) -98.92% Central Services Total 392,220 495,241 520,250 293,850 (226,400)-43.52% PROGRAM DESCRIPTION & OBJECTIVES: The Central Services Department provides for those operating expenses that encompass all city departments. By consolidating these expenditures, the City can more accurately determine the effectiveness of the costs and benefits provided. As of 2026 Budget, facility operating cost are transitiioned to the Facilities Services Internal Service Fund. OPERATING COST ACTIVITIES: * Supplies & Maintenance include the office supplies. * Professional Services includes IT service, fleet service, and facilities service and fees associated with administering city benefit plans. * Other Expenses includes bank fees and other miscellaneous charges related to city operations. Operating Expenditure by Category 600,000 500,000 400,000 ■ Other Expenses ■Insurances 300,000 ■ Professional Services ■ Supplies & Maintenance 200,000 ■ Personal Services 100,000 0 2023 Actual 2024 Actual 2025 Budget 2026 Draft Budget 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 22 of 59 24 City of Orono 2026 General Fund Budget - Departmental Summary Police 42110 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services 4,584,141 4,743,186 4,833,500 5,206,250 372,750 7.71% Supplies & Maintenance 227,307 163,350 263,500 256,750 (6,750) -2.56% Professional Services 295,270 346,732 446,300 581,650 135,350 30.33% Insurances 150,975 140,000 147,000 154,450 7,450 5.07% Other Expenses 189,301 133,745 149,800 158,700 8,900 5.94% Capital Outlay 179,339 183,239 221,500 240,000 18,500 8.35% Police Total 5,626,334 5,710,252 6,061,600 6,597,800 536,200 8.85% PROGRAM DESCRIPTION & OBJECTIVES: The Police Department provides for the public safety within Orono and the surrounding communities of Minnetonka Beach, Spring Park, and Mound. This is accomplished through preventive patrol, traffic enforcement, education, criminal investigation and prosecution. OPERATING COST ACTIVITIES: * Personal Services include the wages and employment taxes for the Police Department. Staff includes: Police Chief, Deputy Chief, Sergeant (5), Investigators (5), Patrol Officers (19), Part Time Officers (2), CSO (1), CSO Cadets (3.5), Office Manager, Administrative Support Specialist (2) * Supplies & Maintenance include the operating supplies and maintenance expenses on police equipment and facilities. * Professional Services includes the IT service, fleet service, facilities service, police records system, animal care, and medical and psychological evaluations for new officers. * Insurance Expenses includes a portion of the City's general, liability, and auto insurance costs. * Other Expenses includes utilities, fuel, publishing costs, and other miscellaneous charges related to police operations. 7,000,000.00 6,000,000.00 5,000,000.00 4,000,000.00 3,000,000.00 2,000,000.00 1,000,000.00 Operating Expenditure by Category and Dedicated Revenue Capital Outlay Other Expenses Insurances Professional Services Supplies & Maintenance Personal Services -Contracted Service Revenue 2023 Actual 2024 Actual 2025 Budget 2026 Draft Budget 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 23 of 59 25 City of Orono 2026 General Fund Budget - Departmental Summary Fire Protection Services 42260 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services 156,725 476,740 667,800 0 (667,800) -100.00% Supplies & Maintenance 12,381 130,514 114,600 0 (114,600) -100.00% Insurances 0 9,500 10,000 0 (10,000) -100.00% Professional Services 607,884 708,689 682,000 947,400 265,400 38.91% Other Expenses 16,446 99,579 123,600 0 (123,600) -100.00% Fire Protection Services Total 793,436 1,425,023 1,598,000 947,400 (650,600) -40.71% PROGRAM DESCRIPTION & OBJECTIVES: The Fire Department is comprised of a contract agreement with the community of Long Lake for fire suppression services for the north section of City. The Orono Fire Department provides fire suppression service for the remainder of the City and supports Police with public safety within Orono. Beginning 2026, a joint power agreement fire department is anticipated to go into effect. OPERATING COST ACTIVITIES: * Professional Services includes fire service contract with new fire department. 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 24 of 59 26 City of Orono 2026 General Fund Budget - Departmental Summary Community Development 42400 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services 745,958 759,411 810,700 862,600 51,900 6.40% Supplies & Maintenance 1,701 1,630 3,650 3,450 (200) -5.48% Professional Services 77,605 68,072 79,500 140,950 61,450 77.30% Other Expenses 16,685 11,330 14,500 51,350 36,850 254.14% Building & Zoning Total 841,949 840,443 908,350 1,058,350 150,000 16.51% PROGRAM DESCRIPTION & OBJECTIVES: The Building & Zoning Department oversees the development and redevelopment within the City in accordance with established policies and guidelines. The policies and guidelines have been created and are enforced to maintain the health, safety, and welfare of the public, as well as the aesthetics of the community. OPERATING COST ACTIVITIES: * Personal Services include the wages and employment taxes for Community Development Staff. Staff includes: Director of Community Development, Planners (2), Planning Assistant, Building Official and Building Inspector. * Professional Services include engineering, legal consulting services, IT service, fleet service, facilities service, and contracted building inspections * Other Expenses includes training and development, membership fees, and comprehensive plan. 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2023 Actual Operating Expenditure by Category 2024 Actual 2025 Budget 2026 Draft Budget ■ Other Expenses ■ Professional Services ■ Supplies & Maintenance ■ Personal Services 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 25 of 59 4A City of Orono 2026 General Fund Budget - Departmental Summary Public Works - Street 43000 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services 262,493 298,900 303,700 309,200 5,500 1.81% Supplies & Maintenance 299,367 266,714 226,300 442,750 216,450 95.65% Professional Services 137,899 136,635 168,100 209,150 41,050 24.42% Other Expenses 69,045 58,715 52,000 61,500 9,500 18.27% Public Works Total 768,804 760,964 750,100 1,022,600 272,500 36.33% PROGRAM DESCRIPTION & OBJECTIVES: The Street Department provides for the maintainance of all city streets to ensure a safe and driveable condition. Standard maintenance includes seal -coating, patching, snow plowing, and sweeping. Due to its excess storage capacity, the City maintains cooperative agreements with surrounding communities for storage and sale of salt/sand supplies. OPERATING COST ACTIVITIES: * Personal Services include the wages and employment taxes for the Public Works Department. Staff includes the following FTES: Public Works Superintendent (.25), Street/Stormwater Supervisor (.50), Maintenance Workers (1.5), Administrative Assistant (.20) * Supplies & Maintenance include general operating supplies for street repair/maintenance, and vehicle and equipment maintenance. * Professional Services includes IT, Fleet and Facilities Services. * Other Expenses include electricity costs for street lighting and employee training and development. 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2023 Actual Operating Expenditure by Category 2024 Actual 2025 Budget 2026 Draft Budget ■ Other Expenses ■ Professional Services ■ Supplies & Maintenance ■ Personal Services 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 26 of 59 28 City of Orono 2026 General Fund Budget - Departmental Summary PW - Spring Park 43050 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services 99,863 99,112 100,500 167,400 66,900 66.57% Supplies & Maintenance 2,167 0 0 0 0 N/A Professional Services 3,923 2,000 2,650 9,200 6,550 247.17% Other Expenses 5,414 350 0 0 0 N/A Public Works - Spring Park Total 111,366 101,462 103,150 176,600 73,450 71.21% PROGRAM DESCRIPTION & OBJECTIVES: As of 9/1/2021, Orono began providing public works service to the City of Spring Park. OPERATING COST ACTIVITIES: * Personal Services include the wages and employment taxes for the Public Works Department and Parks Department. Wages and benefits are based on 1.5 FTE and use the average wage of all maintenance workers. * Supplies & Maintenance are reimburseable expenses pass through to Spring Park. * Professional Services includes IT Services, Fleet Services, Facilities Service and Other professional Services. * Other Expenses includes reimburseable expenses. Operating Expenditure by Category 200,000 180,000 160,000 140,000 120,000 ■ Other Expenses 100,000 ■ Professional Services ■ Supplies & Maintenance 80,000 ■ Personal Services 60,000 40,000 20,000 0 2023 Actual 2024 Actual 2025 Budget 2026 Draft Budget 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 27 of 59 29 City of Orono 2026 General Fund Budget - Departmental Summary Brush Site 43100 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services 12,662 14,113 13,450 14,250 800 5.95% Supplies & Maintenance 793 28,260 30,250 31,300 1,050 3.47% Other Expenses 19,292 4,246 3,050 7,750 4,700 154.10% Brush Site Total 32,748 46,619 46,750 53,300 6,550 14.01% PROGRAM DESCRIPTION & OBJECTIVES: The Brush Site provides a place for residents and contractors to drop off tree branches and brush. OPERATING COST ACTIVITIES: * Personal Services include the wages and employment taxes for the Brush Site. Staff includes: Brush Site Attendants (seasonal) * Supplies & Maintenance include general operating supplies for repair and maintenance of the brush site. * Other Expenses includes bank fees, IT service, fleet service, facilities service, telephone, general liability insurance, gas, electricity, and portable toilet rental. 60,000 50,000 40,000 30,000 20,000 10,000 0 Operating Expenditure by Category and Dedicated Revenue � Other Expenses � Supplies & Maintenance � Personal Services -Brush Site Revenue 2023 Actual 2024 Actual 2025 Budget 2026 Draft Budget 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 28 of 59 30 City of Orono 2026 General Fund Budget - Departmental Summary Engineering 43170 2023 2024 2025 2026 Actual Actual Budget Draft Budget Professional Services 35,189 15,181 26,000 26,000 Engineering Total 35,189 15,181 26,000 26,000 Dollar Increase Increase Decrease Decrease 0 0.00% 0.00% PROGRAM DESCRIPTION & OBJECTIVES: The City maintains a renewable contract with a local firm to provide all engineering services. The Engineering Department provides professional representation and opinion on city services and operations. OPERATING COST ACTIVITIES: * Professional Services are the costs associated with the contract agreement with the contracted engineering firm (Bolton & Menk). 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 29 of 59 31 City of Orono 2026 General Fund Budget - Departmental Summary Parks 45200 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services 267,956 221,090 164,800 149,550 (15,250) -9.25% Supplies & Maintenance 120,756 108,254 118,900 155,000 36,100 30.36% Professional Services 41,845 10,884 44,000 67,750 23,750 53.98% Other Expenses 13,559 21,519 15,350 14,000 (1,350) -8.79% Parks Total 444,117 361,747 343,050 386,300 43,250 12.61% PROGRAM DESCRIPTION & OBJECTIVES: The Parks Department provides for the maintainance of the City's parks. In addition, the city participates in a joint recreation program with area organizations to ensure a community -wide effort in providing adequate recreational facilities. OPERATING COST ACTIVITI ES: * Personal Services includes the wages and employment taxes for the Parks Department. Staff includes: Park & Facilities Superintendant (34%), Maintenance Worker (70%), Administrative Assistant (.15) and Seasonals. * Supplies & Maintenance includes the operating supplies and maintenance for all park facilities. * Professional Services includes engineering service, IT services, fleet service, facilities service, and event service for the tree lighting ceremony. * Other Expenses includes the utilities and costs associated with equipment rental. 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2023 Actual Operating Expenditure by Category ■ Other Expenses ■ Professional Services ■ Supplies & Maintenance ■ Personal Services 2024 Actual 2025 Budget 2026 Draft Budget 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 30 of 59 32 City of Orono 2026 General Fund Budget - Departmental Summary Special Services 43280 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services 88,870 60,236 41,000 49,400 8,400 20.49% Professional Services 32,490 54,573 55,000 50,000 (5,000) -9.09% Other Expenses 302,708 113,442 0 0 0 N/A Special Services - Consulting & Police Total 424,069 228,251 96,000 99,400 3,400 3.54% PROGRAM DESCRIPTION & OBJECTIVES: The Special Services Department provides a separate 'cost center' for tracking city -provided consulting and Police special service details. Orono residents who apply for land use variations are subject to be billed for any additional staff, legal, and engineering time that is spent reviewing their application. These charges are recorded in this departmental budget, and the applicants are subsequently billed for this additional time. Orono businesses or residents who wish to contract with the city for Police security or traffic control are billed for the officers' time. The City's costs are recorded in this departmental budget, and are offset by the revenues received from the requesting parties. OPERATING COST ACTIVITIES (Reimbursed): * Personal Services include Police Officer overtime wages for security work and/or traffic control. * Professional Services include legal and engineering review expense for land use applications. 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 31 of 59 33 City of Orono 2026 General Fund Budget - Departmental Summary Special Project & Contingencies 43290 2023 Actual Professional Services 0 Other Expenses 0 Capital & Transfers 1,580,000 Contingency Items 4,775 Dollar 2024 2025 2026 Increase Increase Actual Budget Draft Budget Decrease Decrease 0 0 0 0 N/A 0 0 0 0 N/A 256,407 177,450 320,000 142,550 80.33% 20,720 15,000 15,000 0 0.00% Special Projects -Contingencies Total 1,584,775 277,127 192,450 335,000 142,550 74.07% PROGRAM DESCRIPTION & OBJECTIVES: The Special Projects & Contingencies Department includes funds allocated for planned projects or events that benefit the entire city, and for any unforseen circumstances that produces additional expenses. This department also provides for operating transfers to other funds. OPERATING COST ACTIVITIES: * Transfers are as follows: Improvement and Equipment Outlay Fund, Fleet Service Fund and IT Service Fund. * Contingency Items is an amount for unbudgeted and unforseen items or council directed projects that require action before the next budget cycle. GENERAL FUND TOTAL 12,362,885 11,457,618 11,935,000 12,480,550 545,550 4.57% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 32 of 59 34 City of Orono 2026 General Fund Budget - By Line Item Mayor & Council 41110 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services Full -Time Employees Regular 18,200 18,054 18,250 18,250 0 0.00% FICA 1,392 1,381 1,400 1,400 0 0.00% Worker's Comp Insurance Prem 125 100 50 100 50 100.00% Total Personal Services 19,717 19,535 19,700 19,750 50 0.25% Other Expenses IT Services 1,225 1,100 1,400 3,500 2,100 150.00% Professional Services 4,356 2,607 5,500 6,000 500 9.09% Memberships 13,610 17,348 15,400 15,550 150 0.97% Training & Development 2,286 3,113 4,000 4,000 0 0.00% Meeting Expenses 1,832 3,112 4,000 4,600 600 15.00% Other Miscellaneous Charges 634 60 0 0 0 N/A Total Other Expenses 23,943 27,339 30,300 33,650 3,350 11.06% City Council Total 43,660 46,874 50,000 53,400 3,400 6.80% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 33 of 59 35 City of Orono 2026 General Fund Budget - By Line Item Administration 41300 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services Full -Time Employees Regular 353,527 347,387 390,350 419,700 29,350 7.52% Full -Time Employees Overtime 0 0 1,300 1,000 (300) -23.08% Part -Time Employees 2,041 22,051 39,000 16,900 (22,100) -56.67% Temporary/Seasonal Employees 2,378 0 0 0 0 N/A PERA 25,981 27,765 32,300 32,850 550 1.70% FICA 28,276 28,277 32,950 33,500 550 1.67% City Benefit Contribution 46,270 36,436 57,750 49,850 (7,900) -13.68% Unemployment Benefit Payments 0 0 0 0 0 N/A Worker's Comp Insurance Prem 2,750 100 1,750 1,000 (750) -42.86% Total Personal Services 461,223 462,016 555,400 554,800 (600) -0.11% Professional Services IT Services 9,250 8,000 10,000 25,900 15,900 159.00% Facilities Services 0 0 0 17,100 17,100 N/A Professional Services 4,045 2,579 0 0 0 N/A Total Professional Serivices 13,295 10,579 10,000 43,000 33,000 330.00% Other Expenses Travel Expenses 1,046 0 250 100 (150) -60.00% General Advertising 608 0 0 0 0 N/A Memberships 440 435 750 1,350 600 80.00% Training & Development 3,626 1,977 3,000 5,000 2,000 66.67% Meeting Expenses 3,125 0 0 0 0 N/A Other Miscellaneous Charges 2,343 4,916 4,400 9,600 5,200 118.18% Total Other Expenses 11,188 7,328 8,400 16,050 7,650 91.07% Administration Total 485,705 479,923 573,800 613,850 40,050 6.98% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 34 of 59 36 Personal Services Full -Time Employees Regular Full -Time Employees Overtime Temporary/Seasonal Employees PERA FICA City Benefit Contribution Worker's Comp Insurance Prem Total Personal Services Supplies & Maintenance Equipment Parts & Accessories Small Tools and Minor Equip Total Supplies & Maintenance Other Expenses IT Services Facilities Services Postage Travel Expenses General Advertising Printing & Publishing Training & Development Meeting Expenses Other Miscellaneous Charges Total Other Expenses Elections Total City of Orono 2026 General Fund Budget - By Line Item Elections 41410 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease 21,748 23,134 24,700 26,650 1,950 7.89% 0 0 0 1,000 1,000 N/A 490 35,612 500 30,000 29,500 5900.00% 1,575 1,673 1,900 2,100 200 10.53% 1,600 2,789 1,900 4,000 2,100 110.53% 5,158 4,113 4,350 5,550 1,200 27.59% 175 0 100 100 0 0.00% 30,746 67,321 33,450 69,400 35,950 107.47% 1,919 3,424 2,000 2,000 0 0.00% 0 0 0 0 0 N/A 1,919 3,424 2,000 2,000 0 0.00% 1,000 1,100 1,400 2,600 1,200 85.71% 0 0 0 2,050 2,050 N/A 0 284 0 0 0 N/A 0 215 100 200 100 100.00% 0 328 0 350 350 N/A 0 134 150 600 450 300.00% 1,673 60 50 100 50 100.00% 451 1,908 0 2,000 2,000 N/A 28 520 0 0 0 N/A 3,151 4,548 1,700 7,900 6,200 364.71% 35,816 75,293 37,150 79,300 42,150 113.46% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 35 of 59 37 Personal Services Full -Time Employees Regular Full -Time Employees Overtime Temporary/Seasonal Employees PERA FICA City Benefit Contribution Worker's Comp Insurance Prem Total Personal Services Professional Services IT Services Facilities Services Total Professional Services Other Expenses City of Orono 2026 General Fund Budget - By Line Item Communications 41430 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease 0 8,663 96,250 92,000 (4,250) -4.42% 0 0 1,000 1,000 0 0.00% 0 0 0 0 0 N/A 0 650 7,300 7,000 (300) -4.11% 0 683 7,450 7,150 (300) -4.03% 0 2,068 14,200 23,500 9,300 65.49% 0 0 400 250 (150) -37.50% 0 12,065 126,600 130,900 4,300 3.40% 0 2,000 2,500 9,450 6,950 278.00% 0 0 0 7,400 7,400 N/A 0 2,000 2,500 16,850 14,350 574.00% Postage 0 5,501 4,000 7,200 3,200 80.00% Newsletters 0 9,726 16,000 15,400 (600) -3.75% General Advertising 0 0 0 0 0 N/A Training & Development 0 0 0 1,500 1,500 N/A Total Other Expenses 0 15,226 20,000 24,100 4,100 20.50% Communications Total 0 29,291 149,100 171,850 22,750 15.26% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 36 of 59 38 City of Orono 2026 General Fund Budget - By Line Item Finance 41500 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services Full -Time Employees Regular 245,869 227,603 246,750 269,350 22,600 9.16% Full -Time Employees Overtime 0 0 200 200 0 0.00% Part -Time Employees 0 0 0 0 0 N/A Temporary/Seasonal Employees 0 0 0 0 0 N/A PERA 16,700 17,059 18,550 20,250 1,700 9.16% FICA 16,569 17,459 18,900 20,650 1,750 9.26% City Benefit Contribution 40,248 22,817 39,800 24,900 (14,900) -37.44% Worker's Comp Insurance Prem 1,975 1,600 1,150 650 (500) -43.48% Total Personal Services 321,362 286,538 325,350 336,000 10,650 3.27% Supplies & Maintenance Books & Periodicals 65 0 0 0 0 N/A Total Supplies & Maintenance 65 0 0 0 0 N/A Professional Services Auditing and Acct'g Services 0 0 0 36,000 36,000 N/A IT Services 7,875 10,000 15,000 34,150 19,150 127.67% Facilities Services 0 0 0 20,100 20,100 N/A Total Professional Services 7,875 10,000 15,000 90,250 75,250 501.67% Other Expenses Travel Expenses 173 93 300 100 (200) -66.67% Memberships 421 580 600 700 100 16.67% Training & Development 4,520 4,021 5,000 5,500 500 10.00% Total Other Expenses 5,114 4,694 5,900 6,300 400 6.78% Finance Total 334,416 301,232 346,250 432,550 86,300 24.92% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 37 of 59 39 Assessing Services Assessing Services Total Assessing Service Assessing Total City of Orono 2026 General Fund Budget - By Line Item Assessing 41550 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease 254,000 127,000 0 0 0 N/A 254,000 127,000 0 0 0 N/A 254,000 127,000 0 0 0 N/A 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 38 of 59 40 City of Orono 2026 General Fund Budget - By Line Item Law/Legal Services 41600 2023 2024 2025 Actual Actual Budget Dollar 2026 Increase Increase Draft Budget Decrease Decrease Professional Services Legal -Prosecution 43,625 45,562 50,000 50,000 0 0.00% Legal -Consulting 98,966 76,731 65,000 65,000 0 0.00% Code Enforcement 0 0 1,000 1,000 0 0.00% Jail Charges 2,191 1,366 5,000 5,000 0 0.00% Total Professional Services 144,782 123,660 121,000 121,000 0 0.00% Law/Legal Services Total 144,782 123,660 121,000 121,000 0 0.00% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 39 of 59 41 Other Expenses Contributions to Civic Org's Total Other Expenses City of Orono 2026 General Fund Budget - By Line Item Human Services 41800 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease 9,500 12,000 12,000 12,000 0 0.00% 9,500 12,000 12,000 12,000 0 0.00% Human Services Total 9,500 12,000 12,000 12,000 0 0.00% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 40 of 59 42 City of Orono 2026 General Fund Budget - By Line Item Central Services 41900 Dollar % 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services Full -Time Employees Regular 1,320 57,702 107,150 0 (107,150) -100.00% Part -Time Employees 19,209 1,694 0 0 0 N/A PERA 49 3,866 8,050 0 (8,050) -100.00% FICA 1,794 3,955 8,200 0 (8,200) -100.00% City Benefit Contribution 890 2,069 21,400 0 (21,400) -100.00% Worker's Comp Insurance Prem 1,475 4,200 900 0 (900) -100.00% Total Personal Services 24,736 73,486 145,700 0 (145,700)-100.00% Supplies & Maintenance Office supplies 6,105 8,372 10,000 10,000 0 0.00% Motor Fuels & Lubricants 0 0 0 0 0 N/A Equipment Parts & Accessories 7,531 (5,365) 5,000 0 (5,000) -100.00% Bldg/Grounds Maint. Supplies 11,591 16,609 15,000 0 (15,000) -100.00% Clothing & personal equipment 0 495 500 0 (500) -100.00% Repairs/Maint-Office Equip 7,551 2,330 5,000 0 (5,000) -100.00% Repairs/Maint-Bldgs/Grounds 37,592 48,591 46,000 0 (46,000) -100.00% Janitorial Services 130 0 0 0 0 N/A Software Licensing 120 0 0 0 0 N/A Total Supplies & Maintenance 70,621 71,032 81,500 10,000 (71,500) -87.73% Professional Services Auditing and Acct'g Services 11,500 31,866 36,000 0 (36,000) -100.00% IT Services 74,000 65,000 81,250 129,750 48,500 59.69% Fleet Services 0 3,000 4,000 4,250 250 6.25% Facilities Services 0 0 0 68,550 68,550 N/A Professional Services 14,048 21,726 15,000 13,000 (2,000) -13.33% Total Professional Services Insurances General Liability Ins Umbrella Liability Ins Bonds Insurance Property Insurance Equipment Floaters Ins Automotive Insurance 99,548 121,592 136,250 215,550 79,300 58.20% 14,825 13,500 14,200 14,950 750 5.28% 21,150 32,000 33,600 35,300 1,700 5.06% 1,200 0 0 0 0 N/A 19,875 12,000 12,600 13,250 650 5.16% 0 0 0 0 0 N/A 6,250 3,500 3,600 3,800 200 5.56% Total Insurances 63,300 61,000 64,000 67,300 3,300 5.16% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 41 of 59 43 City of Orono 2026 General Fund Budget - By Line Item Central Services 41900 2023 2024 2025 Actual Actual Budget Dollar 2026 Increase Increase Draft Budget Decrease Decrease Other Expenses Bank Fees 1,657 500 1,000 1,000 0 0.00% Telephone 18,525 9,584 16,000 0 (16,000) -100.00% Postage 7,037 3,422 4,000 0 (4,000) -100.00% Internet/Other Communications 495 0 0 0 0 N/A General Advertising 4,902 1,386 500 0 (500) -100.00% Printing & Publishing 20,938 8,091 22,000 0 (22,000) -100.00% Gas & Electric 46,590 45,522 40,000 0 (40,000) -100.00% City Utilities 8,907 7,563 7,800 0 (7,800) -100.00% Licenses & Taxes 370 370 500 0 (500) -100.00% Other Miscellaneous Charges 24,595 91,693 1,000 0 (1,000) -100.00% Total Other Expenses 134,015 168,131 92,800 1,000 (91,800) -98.92% Central Services Total 392,220 495,241 520,250 293,850 (226,400) -43.52% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 42 of 59 44 City of Orono 2026 General Fund Budget - By Line Item Police 42110 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services Full -Time Employees Regular 2,982,607 3,192,022 3,313,600 3,583,400 269,800 8.14% Full -Time Employees Overtime 120,214 107,075 50,000 50,000 0 0.00% Part -Time Employees 88,628 42,620 80,000 76,350 (3,650) -4.56% Temporary/Seasonal Employees 0 0 0 0 0 N/A Specialty Pay 15,879 23,352 33,000 33,000 0 0.00% CSO/Cadets 20,360 39,044 62,300 76,950 14,650 23.52% PERA 535,951 562,146 581,250 599,700 18,450 3.17% FICA 66,024 67,237 70,200 86,050 15,850 22.58% City Benefit Contribution 446,978 459,391 494,850 565,150 70,300 14.21% Unemployment Benefit Payments 0 0 0 0 0 N/A Worker's Comp Insurance Prem 307,500 250,300 148,300 135,650 (12,650) -8.53% Total Personal Services 4,584,141 4,743,186 4,833,500 5,206,250 372,750 7.71% Supplies & Maintenance Office supplies Books & Periodicals Motor Fuels & Lubricants Equipment Parts & Accessories Bldg/Grounds Maint. Supplies Clothing & personal equipment Training Supplies Explorers Program expenses Animal Supplies Small Tools and Minor Equip Repairs/Maint-Office Equip Repairs/Maint-Auto Equip Repairs/Maint-Misc. Equip Repai rs/Ma i nt-Bldgs/G rounds Janitorial Services Software Licensing 5,282 4,637 6,000 6,000 0 0.00% 290 37 0 0 0 N/A 78,331 88,984 140,000 120,000 (20,000) -14.29% 5,830 4,820 12,000 12,000 0 0.00% 546 0 0 0 0 N/A 43,609 33,112 36,000 36,000 0 0.00% 30,689 9,024 20,000 22,000 2,000 10.00% 2,983 325 2,500 2,500 0 0.00% 139 0 0 0 0 N/A 7,114 5,623 7,000 7,000 0 0.00% 0 0 1,000 0 (1,000) -100.00% 24,627 5,097 6,000 6,000 0 0.00% 5,509 2,029 5,500 5,000 (500) -9.09% 7,602 11,076 12,000 0 (12,000) -100.00% 967 0 15,500 0 (15,500) -100.00% 13,788 (1,414) 0 40,250 40,250 N/A Total Supplies & Maintenance 227,307 163,350 263,500 256,750 (6,750) -2.56% Professional Services Legal -Consulting 4,747 4,846 8,000 6,000 (2,000) -25.00% LOGIS-Applications 106,728 110,807 115,300 110,000 (5,300) -4.60% Data Processing Communication 12,519 21,580 12,000 13,000 1,000 8.33% IT Services 128,750 150,000 215,000 246,900 31,900 14.84% Fleet Services 0 25,000 50,000 80,000 30,000 60.00% Facilities Services 0 0 0 75,750 75,750 N/A Animal Care 1,749 1,132 10,000 10,000 0 0.00% Animal Professional Services 750 0 0 0 0 N/A Professional Services 40,027 33,367 36,000 40,000 4,000 11.11% Insurance Agent of Record 0 0 0 0 0 N/A Total Professional Services 295,270 346,732 446,300 581,650 135,350 30.33% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 43 of 59 45 City of Orono 2026 General Fund Budget - By Line Item Police 42110 2023 2024 2025 Actual Actual Budget Dollar 2026 Increase Increase Draft Budget Decrease Decrease Insurances General Liability Ins 86,250 90,000 94,500 99,250 4,750 5.03% Umbrella Liability Ins 37,000 32,000 33,600 35,300 1,700 5.06% Property Insurance 1,600 1,000 1,050 1,150 100 9.52% Equipment Floaters Ins 0 0 0 0 0 N/A Automotive Insurance 26,125 17,000 17,850 18,750 900 5.04% Insurance Deductibles 0 0 0 0 0 N/A Total Insurances 150,975 140,000 147,000 154,450 7,450 5.07% Other Expenses Telephone 19,284 25,649 24,000 24,000 0 0.00% Postage 40 540 500 500 0 0.00% Travel Expenses 234 0 300 200 (100) -33.33% General Advertising 0 113 0 0 0 N/A Printing & Publishing 811 893 1,500 1,500 0 0.00% Gas & Electric 23,339 17,048 24,000 24,000 0 0.00% City Utilities 3,918 3,053 4,000 4,000 0 0.00% Office Equipment Rental 2,931 0 0 0 0 N/A EDP/Communications Equip Rent 38,583 32,871 38,000 38,000 0 0.00% Memberships 9,918 4,240 5,000 15,000 10,000 200.00% Towing Charges 1,874 998 0 1,000 1,000 N/A Training & Development 26,776 41,759 47,500 47,500 0 0.00% Distribution to Other Govmnts 29,779 0 0 0 0 N/A Meeting Expenses 1,523 1,260 2,000 2,000 0 0.00% Special Equipment Replacement 29,892 4,859 0 0 0 N/A Licenses & Taxes 218 247 1,000 500 (500) -50.00% Other Miscellaneous Charges 182 215 2,000 500 (1,500) -75.00% Total Other Expenses 189,301 133,745 149,800 158,700 8,900 5.94% Capital Outlay Automotive Equipment 139,270 124,818 200,000 220,000 20,000 10.00% Office Equip and Furnishings 0 0 500 0 (500) -100.00% IT Hardware & Applications 29,313 0 0 0 0 N/A Other Equipment 10,756 58,420 21,000 20,000 (1,000) -4.76% Total Capital Outlay 179,339 183,239 221,500 240,000 18,500 8.35% Police Total 5,626,334 5,710,252 6,061,600 6,597,800 536,200 8.85% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 44 of 59 46 City of Orono 2026 General Fund Budget - By Line Item Fire Protection Services 42260 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services Full -Time Employees Regular 117,353 130,798 139,950 0 (139,950) -100.00% Full -Time Employees Overtime 0 0 0 0 0 N/A Part -Time Employees 4,690 192,468 300,000 0 (300,000) -100.00% Temporary/Seasonal Employees 0 0 0 0 0 N/A POC Fire Fighters 0 34,027 100,000 0 (100,000) -100.00% PERA 21,602 56,981 77,900 0 (77,900) -100.00% FICA 1,737 6,910 7,850 0 (7,850) -100.00% City Benefit Contribution 11,344 12,356 20,600 0 (20,600) -100.00% Worker's Comp Insurance Prem 0 43,200 21,500 0 (21,500) -100.00% Total Personal Services 156,725 476,740 667,800 0 (667,800)-100.00% Supplies & Maintenance Office supplies Printed Forms and Paper Public Safety Ed Materials Motor Fuels & Lubricants Shop Supplies Chemicals Medical Supplies Equipment Parts & Accessories Bldg/Grounds Maint. Supplies Clothing & personal equipment Training Supplies Small Tools and Minor Equip Repairs/Maint-Auto Equip Repairs/Maint-Misc. Equip 0 2,973 2,000 0 (2,000) -100.00% 0 2,185 0 0 0 N/A 0 1,481 0 0 0 N/A 2,053 8,276 10,000 0 (10,000) -100.00% 0 2,286 2,000 0 (2,000) -100.00% 0 30 1,600 0 (1,600) -100.00% 696 10,992 4,000 0 (4,000) -100.00% 1,699 5,702 3,000 0 (3,000) -100.00% 0 3,340 2,000 0 (2,000) -100.00% 6,707 54,519 40,000 0 (40,000) -100.00% 0 1,115 2,000 0 (2,000) -100.00% 0 4,393 8,000 0 (8,000) -100.00% 1,226 18,782 15,000 0 (15,000) -100.00% 0 14,441 25,000 0 (25,000) -100.00% Total Supplies & Maintenance 12,381 130,514 114,600 0 (114,600)-100.00% Insurances General Liability Ins 0 6,500 6,800 0 (6,800) -100.00% Umbrella Liability Ins 0 500 550 0 (550) -100.00% Property Insurance 0 500 550 0 (550) -100.00% Equipment Floaters Ins 0 1,000 1,050 0 (1,050) -100.00% Automotive Insurance 0 1,000 1,050 0 (1,050) -100.00% Total Insurances 0 9,500 10,000 0 (10,000)-100.00% Professional Services Medicals 4,123 10,643 0 0 0 N/A Legal -Consulting 2,958 1,123 2,000 0 (2,000) -100.00% Turn Out Gear Washing -Repair 0 3,233 30,000 0 (30,000) -100.00% IT Services 0 40,000 50,000 0 (50,000) -100.00% Fleet Services 0 13,310 17,000 0 (17,000) -100.00% Fire Services 589,974 629,351 558,000 947,400 389,400 69.78% Professional Services 10,829 11,030 25,000 0 (25,000) -100.00% Total Professional Services 607,884 708,689 682,000 947,400 265,400 38.91% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 45 of 59 47 City of Orono 2026 General Fund Budget - By Line Item Fire Protection Services 42260 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Other Expenses Telephone 0 2,847 4,000 0 (4,000) -100.00% Travel Expenses 0 320 1,000 0 (1,000) -100.00% General Advertising 1,089 0 3,000 0 (3,000) -100.00% Printing & Publishing 0 0 5,000 0 (5,000) -100.00% Gas & Electric 0 13,227 18,000 0 (18,000) -100.00% City Utilities 0 1,215 2,500 0 (2,500) -100.00% EDP/Communications Equip Rent 0 38,183 40,000 0 (40,000) -100.00% Memberships 541 2,879 4,000 0 (4,000) -100.00% Training & Development 12,637 24,218 40,000 0 (40,000) -100.00% Meeting Expenses 0 797 1,000 0 (1,000) -100.00% Licenses & Taxes 100 21 100 0 (100) -100.00% Other Miscellaneous Charges 2,079 15,870 5,000 0 (5,000) -100.00% Total Other Expenses 16,446 99,579 123,600 0 (123,600) -100.00% Fire Protection Services Total 793,436 1,425,023 1,598,000 947,400 (650,600)-40.71% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 46 of 59 48 City of Orono 2026 General Fund Budget - By Line Item Community Development 42400 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services Full -Time Employees Regular 543,400 561,583 602,350 640,850 38,500 6.39% Full -Time Employees Overtime 0 0 200 1,000 800 400.00% PERA 40,755 42,086 45,200 48,150 2,950 6.53% FICA 43,298 42,150 46,100 49,150 3,050 6.62% City Benefit Contribution 113,880 109,593 113,900 120,950 7,050 6.19% Unemployment Benefit Payments 0 0 0 0 0 N/A Worker's Comp Insurance Prem 4,625 4,000 2,950 2,500 (450) -15.25% Total Personal Services 745,958 759,411 810,700 862,600 51,900 6.40% Supplies & Maintenance Books & Periodicals 0 0 350 350 0 0.00% Motor Fuels & Lubricants 1,683 1,630 2,000 1,800 (200) -10.00% Equipment Parts & Accessories 18 0 0 0 0 N/A Clothing & personal equipment 0 0 800 800 0 0.00% Small Tools and Minor Equip 0 0 500 500 0 0.00% Repairs/Maint-Auto Equip 0 0 0 0 0 N/A Total Supplies & Maintenance 1,701 1,630 3,650 3,450 (200) -5.48% Professional Services Engineering -Consulting 11,420 0 2,000 2,000 0 0.00% GIS/Mapping 5,132 4,882 3,000 3,500 500 16.67% Legal -Consulting 11,488 13,839 15,000 15,000 0 0.00% Inspection Services 10,932 15,258 15,000 15,000 0 0.00% IT Services 34,500 30,000 37,500 57,050 19,550 52.13% Fleet Services 0 1,500 2,000 4,250 2,250 112.50% Facilities Services 0 0 0 40,150 40,150 N/A Professional Services 4,134 2,593 5,000 4,000 (1,000) -20.00% Total Professional Services 77,605 68,072 79,500 140,950 61,450 77.30% Other Expenses Telephone 1,987 1,660 2,500 0 (2,500) -100.00% Travel Expenses 166 120 250 150 (100) -40.00% General Advertising 932 0 0 0 0 N/A Printing & Publishing 109 1,903 1,600 1,600 0 0.00% Software Licensing 4,186 0 0 0 0 N/A Memberships 1,497 637 2,000 2,000 0 0.00% Training & Development 7,796 7,009 8,000 7,500 (500) -6.25% Meeting Expenses 10 0 100 100 0 0.00% Licenses & Taxes 0 0 50 0 (50) -100.00% Other Miscellaneous Charges 0 0 0 40,000 40,000 N/A Total Other Expenses 16,685 11,330 14,500 51,350 36,850 254.14% Building & Zoning Total 841,949 840,443 908,350 1,058,350 150,000 16.51% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 47 of 59 49 City of Orono 2026 General Fund Budget - By Line Item Public Works 43000 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services Full -Time Employees Regular 187,588 220,572 213,800 206,350 (7,450) -3.48% Full -Time Employees Overtime 6,152 5,610 11,000 11,000 0 0.00% Temporary/Seasonal Employees 0 0 0 16,000 16,000 N/A PERA 13,621 16,428 15,700 17,500 1,800 11.46% FICA 14,687 16,442 17,200 17,850 650 3.78% City Benefit Contribution 26,270 26,248 37,000 35,700 (1,300) -3.51% Worker's Comp Insurance Prem 14,175 13,600 9,000 4,800 (4,200) -46.67% Total Personal Services 262,493 298,900 303,700 309,200 5,500 1.81% Supplies & Maintenance Books & Periodicals 530 0 0 0 0 N/A Motor Fuels & Lubricants 487 202 500 10,000 9,500 1900.00% Equipment Parts & Accessories 6,213 10,398 2,100 10,000 7,900 376.19% Vehicle Equipment & Parts 6,007 5,843 0 10,000 10,000 N/A Street Maint. Materials/Supply 106,219 77,524 87,550 90,000 2,450 2.80% Clothing & personal equipment 9,770 10,522 11,350 12,000 650 5.73% Small Tools and Minor Equip 9,499 4,464 5,000 5,750 750 15.00% Telephone 7,225 6,216 4,800 0 (4,800) -100.00% Repairs/Maint-Auto Equip 1,096 0 0 0 0 N/A Repairs/Maint-Misc. Equip 16,892 6,505 10,000 5,000 (5,000) -50.00% Repa i rs/Ma i nt-Bldgs/G rounds 5,044 16,911 5,000 0 (5,000) -100.00% Tree - Repairs/Maint. 0 57,756 50,000 200,000 150,000 300.00% Contracted Street Maint. 130,385 70,373 50,000 100,000 50,000 100.00% Total Supplies & Maintenance 299,367 266,714 226,300 442,750 216,450 95.65% Professional Services PW Engineering -Consulting 1,256 3,283 1,500 1,500 0 0.00% GIS/Mapping 3,809 1,913 1,000 2,000 1,000 100.00% IT Services 5,500 10,000 12,500 30,300 17,800 142.40% Fleet Services 125,000 120,000 152,000 152,000 0 0.00% Facilities Services 0 0 0 21,850 21,850 N/A Professional Services 2,335 1,439 1,100 1,500 400 36.36% Total Professional Services 137,899 136,635 168,100 209,150 41,050 24.42% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 48 of 59 50 City of Orono 2026 General Fund Budget - By Line Item Public Works 43000 2023 2024 2025 Actual Actual Budget Dollar 2026 Increase Increase Draft Budget Decrease Decrease Other Expenses Travel Expenses 0 40 0 750 750 N/A General Advertising 349 1,725 750 1,000 250 33.33% Gas & Electric 5,681 3,888 6,500 6,500 0 0.00% Street Lighting 37,988 38,164 34,000 38,000 4,000 11.76% EDP/Communications Equip Rent 297 1,222 1,200 2,400 1,200 100.00% Other Equipment Rentals 5,492 3,395 4,000 1,000 (3,000) -75.00% Memberships 239 491 500 750 250 50.00% Training & Development 8,856 4,298 4,000 10,000 6,000 150.00% Licenses & Taxes 270 29 50 100 50 100.00% Other Miscellaneous Charges 9,874 5,463 1,000 1,000 0 0.00% Total Other Expenses 69,045 58,715 52,000 61,500 9,500 18.27% Public Works Total 768,804 760,964 750,100 1,022,600 272,500 36.33% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 49 of 59 51 City of Orono 2026 General Fund Budget - By Line Item PW - Spring Park 43050 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services Full -Time Employees Regular 73,481 70,788 72,000 123,550 51,550 71.60% Full -Time Employees Overtime 3,102 1,695 0 0 0 N/A PERA 6,137 5,935 5,400 9,300 3,900 72.22% FICA 6,044 5,819 5,550 9,450 3,900 70.27% City Benefit Contribution 11,099 9,375 13,900 22,800 8,900 64.03% Worker's Comp Insurance Prem 0 5,500 3,650 2,300 (1,350) -36.99% Total Personal Services 99,863 99,112 100,500 167,400 66,900 66.57% Supplies & Maintenance Street Maint. Materials/Supply 0 0 0 0 0 N/A Utility System Maint. Supplies 2,167 0 0 0 0 N/A Total Supplies & Maintenance 2,167 0 0 0 0 N/A Professional Services IT Services 0 500 650 2,750 2,100 323.08% Fleet Services 1,250 1,500 2,000 2,000 0 0.00% Facilities Services 0 0 0 4,450 4,450 N/A Professional Services 2,673 0 0 0 0 N/A Total Professional Services 3,923 2,000 2,650 9,200 6,550 247.17% Other Expenses Other Miscellaneous Charges 5,414 350 0 0 0 N/A Total Other Expenses 5,414 350 0 0 0 N/A Public Works- Spring Park Total 111,366 101,462 103,150 176,600 73,450 71.21% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 50 of 59 52 City of Orono 2026 General Fund Budget - By Line Item Brush Site 43100 Dollar % 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services Temporary/Seasonal Employees 10,996 11,648 11,500 12,000 500 4.35% PERA 825 874 900 900 0 0.00% FICA 841 891 900 950 50 5.56% Worker's Comp Insurance Prem 0 700 150 400 250 166.67% Total Personal Services 12,662 14,113 13,450 14,250 800 5.95% Supplies & Maintenance Bldg/Grounds Maint. Supplies 555 304 250 300 50 20.00% Repairs/Maint-Bldgs/Grounds 238 27,957 30,000 1,000 (29,000) -96.67% Tree - Repairs/Maint. 0 0 0 30,000 30,000 N/A Total Supplies & Maintenance 793 28,260 30,250 31,300 1,050 3.47% Other Expenses Bank Fees IT Services Fleet Services Facilities Services Telephone General Liability Ins Gas & Electric Other Equipment Rentals Other Miscellaneous Charges Total Other Expenses 4 23 50 50 0 0.00% 313 500 650 2,350 1,700 261.54% 0 0 0 3,250 3,250 N/A 0 0 0 700 700 N/A 1,298 2,353 1,000 0 (1,000) -100.00% 25 100 100 150 50 50.00% 408 388 400 400 0 0.00% 840 883 850 850 0 0.00% 16,405 0 0 0 0 N/A 19,292 4,246 3,050 7,750 4,700 154.10% Brush Site Total 32,748 46,619 46,750 53,300 6,550 14.01% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 51 of 59 53 City of Orono 2026 General Fund Budget - By Line Item Engineering 43170 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Professional Services Engineering -Retainer 1,449 184 0 0 0 N/A Engineering -Consulting 3,264 2,262 10,000 10,000 0 0.00% GIS/Mapping 30,476 12,736 16,000 16,000 0 0.00% Total Professional Services 35,189 15,181 26,000 26,000 0 0.00% Engineering Total 35,189 15,181 26,000 26,000 0 0.00% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 52 of 59 54 City of Orono 2026 General Fund Budget - By Line Item Parks 45200 Dollar % 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services Full -Time Employees Regular 178,938 130,122 104,150 92,500 (11,650) -11.19% Full -Time Employees Overtime 1,147 50 0 0 0 N/A Part -Time Employees 17,017 (236) 0 0 0 N/A Temporary/Seasonal Employees 800 35,278 16,700 23,000 6,300 37.72% PERA 12,230 9,897 7,850 6,950 (900) -11.46% FICA 14,370 12,099 9,250 8,850 (400) -4.32% City Benefit Contribution 25,104 17,980 18,900 15,050 (3,850) -20.37% Worker's Comp Insurance Prem 18,350 15,900 7,950 3,200 (4,750) -59.75% Total Personal Services 267,956 221,090 164,800 149,550 (15,250) -9.25% Supplies & Maintenance Motor Fuels & Lubricants 6,252 5,785 4,000 5,500 1,500 37.50% Chemicals 4,949 1,638 12,000 10,000 (2,000) -16.67% Equipment Parts & Accessories 15,022 9,815 13,400 10,000 (3,400) -25.37% Building Maint Supplies 8,143 5,029 12,000 6,000 (6,000) -50.00% Clothing & personal equipment 2,499 1,459 2,000 2,000 0 0.00% Small Tools and Minor Equip 600 2,328 2,500 1,000 (1,500) -60.00% Repairs/Maint-Auto Equip 212 0 0 0 0 N/A Repairs/Maint-Misc. Equip 0 0 0 0 0 N/A Repairs/Maint-Bldgs/Grounds 83,079 75,776 73,000 70,000 (3,000) -4.11% Tree - Repairs/Maint. 0 6,400 0 50,000 50,000 N/A Total Supplies & Maintenance 120,756 108,254 118,900 155,000 36,100 30.36% Professional Services Engineering -Consulting 27,821 467 1,000 1,000 0 0.00% GIS/Mapping 0 855 1,000 1,000 0 0.00% IT Services 1,475 1,500 2,000 9,200 7,200 360.00% Fleet Services 8,250 7,000 10,000 21,900 11,900 119.00% Facilities Services 0 0 0 9,650 9,650 N/A Event Services 0 500 20,000 20,000 0 0.00% Professional Services 4,299 562 10,000 5,000 (5,000) -50.00% Total Professional Services 41,845 10,884 44,000 67,750 23,750 53.98% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 53 of 59 55 City of Orono 2026 General Fund Budget - By Line Item Parks 45200 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Other Expenses Telephone Travel Expenses Printing & Publishing Gas & Electric Other Equipment Rentals Software Licensing Memberships Training & Development Meeting Expenses Licenses & Taxes Park Commission Other Miscellaneous Charge Contributions to Civic Org's 1,411 5 2,511 1,000 0 (1,000) -100.00% 0 0 0 0 0 N/A 1,396 621 450 500 50 11.11% 844 118 600 500 (100) -16.67% 7,172 8,973 11,000 10,000 (1,000) -9.09% 0 0 0 0 0 N/A 0 0 600 500 (100) -16.67% 1,634 718 1,000 2,000 1,000 100.00% 0 10 0 0 0 N/A 175 132 0 0 0 N/A 364 0 0 0 0 N/A 563 8,435 600 500 (100) -16.67% 0 0 100 0 (100) -100.00% Total Other Expenses 13,559 21,519 15,350 14,000 (1,350) (1) Parks Total 444,117 361,747 343,050 386,300 43,250 12.61% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 54 of 59 56 City of Orono 2026 General Fund Budget - By Line Item Special Services 43280 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Personal Services Full -Time Employees Overtime 79,594 50,873 35,000 40,000 5,000 14.29% PERA 7,504 7,643 2,650 7,100 4,450 167.92% FICA 547 620 2,700 600 (2,100) -77.78% City Benefit Contribution 0 0 0 0 0 N/A Worker's Comp Insurance Prem 1,225 1,100 650 1,700 1,050 161.54% Total Personal Services 88,870 60,236 41,000 49,400 8,400 20.49% Professional Services Engineering -Consulting 15,985 26,875 35,000 30,000 (5,000) -14.29% Legal -Consulting 16,505 25,538 20,000 20,000 0 0.00% Professional Services 0 2,160 0 0 0 N/A Special Projects, Contingency 0 0 0 0 0 N/A Total Professional Services 32,490 54,573 55,000 50,000 (5,000) -9.09% Other Expenses Distribution to Other Govmnts 302,708 113,442 0 0 0 N/A Other Miscellaneous Charges 0 0 0 0 0 N/A Total Other Expenses 302,708 113,442 0 0 0 N/A Special Services - Consulting & Police Total 424,069 228,251 96,000 99,400 3,400 3.54% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 55 of 59 57 City of Orono 2026 General Fund Budget - By Line Item Special Project & Contingencies 43290 Dollar 2023 2024 2025 2026 Increase Increase Actual Actual Budget Draft Budget Decrease Decrease Professional Services Engineering -Consulting 0 0 0 0 0 N/A Professional Services 0 0 0 0 0 N/A Total Professional Services 0 0 0 0 0 N/A Other Expenses Other Miscellaneous Charges 0 0 0 0 0 N/A Total Other Expenses 0 0 0 0 0 N/A Capital & Transfers Land 0 0 0 0 0 N/A Operating Transfers 1,580,000 256,407 177,450 320,000 142,550 80.33% Total Capital & Transfers 1,580,000 256,407 177,450 320,000 142,550 80.33% Contingency Items Special Projects, Contingency 4,775 20,720 15,000 15,000 0 0.00% Total Contingency Items 4,775 20,720 15,000 15,000 0 0.00% Special Projects -Contingencies Total 1,584,775 277,127 192,450 335,000 142,550 74.07% GENERAL FUND TOTAL 12,362,885 11,457,583 11,935,000 12,480,550 545,550 4.57% 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 56 of 59 58 MEMORANDUM To: Mayor Tunheim and Orono City Council From: Maggie Jin, Finance Director Subject: 2026 General Fund Budget and Tax Levy and 2026 Internal Service Fund Budgets Date: July 28, 2025 Attachments: A. Levy Detail B. Estimated Tax Rate C. Estimated Tax Rate Impact D. 2026 General Fund Budget E. 2026 Internal Service Funds Budgets F. 06-23-2025 Work Session Memo Work is continuing on the 2026 budget and tax levy. Individual departments requests have been received and department heads have discussed their requests with the City Administrator and Finance Director. A draft of the preliminary budget and tax levy has been completed and is attached for Council review, input and further guidance. The tax levy required to fund the General Fund, Capital Funds, and Debt Service Funds has been calculated to fund all of the needs with an increase to the tax rate. The goal of the City is to maintain a stable tax rate while funding the needs of the City. The current projected tax rate with the draft preliminary budget comes in at 16.797%, which does come in higher than the last five- year average tax rate (16.576%). Staff will continue to work with each department head to further refine the budget prior to the adoption of the preliminary budget in September. The draft budget and tax levy information is being provided as an update of the budget process to the council for further suggestions and recommendations. There are a couple of variables that could still impact the budget and the tax rate: • Wages — the City is currently undergoing union negotiation to determine the wage increase for staff. • Health Insurance — the City is currently undergoing union negotiation with City contribution not yet agreed upon. Additionally, the City will be going through a request for proposal (RFP) for health insurance in the late summer/early fall. The City will not receive the actual amount of any rate increase until the end of September or early October. • Property Values — The final property values will not be received from the Hennepin County Assessor until December. The tax rate calculations are based on the most recent numbers available and generally do not change significantly in either direction between now and the final. 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 57 of 59 59 Significant changes within each department in the General Fund budget are as follows: • Administration — staff is seeking to revise the employee recognition policy in the Employee Handbook to incorporate additional items. Employee Handbook updates will be brought to Council after union negotiations are completed. • 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 addition for 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. The Internal Service Fund budgets are included, which affect each respective department in the General Fund and Enterprise Funds. • Fleet Service Fund — o Revenue comes from other departments that the Fleet department service in terms of the maintenance of City vehicles and equipment. Current year revenue/charge to other department was planned to gradually increase over the years and eventually make up for the short -falls in the beginning years of the fund (2021- 2025). o The expenditure increases for 2026 is attributable to the IT Service and Facilities Service Funds along with an increase in vehicle equipment and parts. • Facility Service Fund — the fund was created in 2025 for the 2026 budget year. 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 58 of 59 60 o Revenue for the new fund is charged to each respective department. The charge is calculated based on City buildings' square footage that the Facilities department maintains along with the number of employees in each department per building applicable. o Expenditure budget is transitioned from the Central Services department in the General Fund. • Insurance Fund — o Revenue is based on the worker's compensation charged to each department per employee and insurance for each department, such as general liability, umbrella, equipment floater. Worker's compensation charge is based on current year worker's compensation modification, which is 0.54 for 2025. o The expenditure budget is based on an average of the last three years' actual amounts of insurance cost along with a budget for unanticipated non -covered insurance items. The Insurance Fund sees years of both shortfalls and surplus with the goal of keeping the General Fund and tax levy stable due to insurance cost fluctuating. • IT Service Fund — o Revenue comes from other departments that the IT department service in terms of IT equipment, infrastructure and service. Current year revenue/charge to other department was planned to gradually increase over the years and eventually make up for the short -falls in the beginning years of the fund (2021-2025). o Expenditure is increasing due transitioning telephone cost and software licensing to the fund. Additional items to be noted that will be effective in 2026 and included in the budget are as follows: • Paid Family Medical Leave (PFML) premiums are included in the budget, with the employer covering 50%. As of January 1, 2026, Minnesota Paid Leave law will go into effect and create a state -administered paid family and medical leave insurance program. The City has opted to go with a state -approved equivalent plan for a discounted premium in 2026. As staff continues to refine the budget and receive additional budget numbers, an updated draft budget and tax levy will be presented at the next General Fund Budget and Tax Levy work session in September. A copy of the June 23rd work session memo is attached along with a draft preliminary budget and tax levy information and draft internal service funds budgets. 09/08/2025 Preliminary General Fund Budget and Tax Levy Page 59 of 59 61