The city of Orono’s accounting firm, Abdo, presented its 2023 comprehensive financial report at its June 24 meeting.
Orono’s General Fund expenditures were $232,971 over budget but were counteracted by the Fund’s end-of-year revenue being $327,552 higher than originally budgeted.
The General Fund also lost $1,580,000 in outgoing transfers, mostly towards the Capital Improvement Fund for the Public Works Facility and the Parks Fund. The city’s budget planned to transfer out $400,000 in 2023.
In all, the General Fund balance decreased from $5,253,315 on January 1 to $4,217,743 on December 31.
The city of Orono plans to have 45 percent of its prior year’s General Fund as “unassigned fund balances.” It maintained levels of 48.8 percent, 46.3 percent and 47.5 percent in 2020-2022 before dipping to 36.4 percent in 2023.
Each of the Water, Sewer, and Storm Water funds saw substantial decreases in total cash balances, though each fund generated income from at least 2020 onward. $1,000,000 from each of these funds was transferred to the Capital Improvement Fund to help pay for the Public Works facility. The Water Fund finished 2023 with $267,104, while the Sewer and Storm Water Funds retained $2,327,068 and $1,562,423, respectively.
The only Special Revenue Fund to end the year in a deficit was the Cable Television Fund, though it was only negative $10,986. The Recycling Fund and new Golf Course Fund had $79,540 and $48,907, respectively, at the end of 2023.
Orono’s total cash and investment balances decreased from $32,169,812 to $21,333,272, mostly due to the construction of the Public Works Facility.
Orono’s tax rate decreased from roughly 19 percent in 2022 to 16 percent in 2023. The city’s taxes per capita rose from $799 to $991 in the same period.
The city began working on its 2025 budget in its preliminary budget and levy discussion prior to its general meeting.
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Orono signed an equipment loan agreement with Lino Lakes for a fire tanker/tender truck. The tanker will be used to supply water in non-hydrant areas. Orono may use this tanker until its own purchased tanker is delivered.
The council agreed to send a letter to Long Lake city council detailing a potential future fire service partnership. The deal specifies that Orono would provide fire service to the city of Long Lake at no cost for a period of 20 years once the existing contract expires, that Long Lake agrees to sell or lease its 50 percent interest in the Willow Drive Fire Station to Orono, and that Orono and Long Lake Fire Department would work and train together.
The deal states that Orono would purchase the Willow Drive Fire Station for 50 percent of its appraised value or pay Long Lake $20,000 per year for 20 years and $70,000 for additional years should it pursue leasing.
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