2021 Budget Information

Final 2021 Budget, Tax Levy Approved by City Council

On December 7th, the City Council adopted the 2021 General Fund Budget and Tax Levy. The General Fund pays for basic government services like Police, Fire, Street Maintenance, Building Inspections, and Zoning. The General Fund expenditure budget is increasing by $117,300 (1.3%). This increase is being partially funded by non-tax revenue sources and requires an increase of $242,140 (5.2%) in the General Fund tax levy.

 The property tax levy has five components. The first is the operating levy, which is adopted to fund the General Fund Operating Budget. The second part is the Pavement Management Levy that is needed to fund the City’s pavement maintenance plan. The increase includes an additional $132,550 for the road maintenance and reconstruction; reflecting the Council’s desire to establish a long term funding solution for the City’s road infrastructure. The third and fourth part of the levy, added this this year includes funding towards the Building Fund and re-established Parks Fund, of $310,000 for development, improvements and repairs for buildings and $50,000 for parks, respectively The final levy component is for the debt service of the City’s outstanding bonds. 

 The approved 2021 Tax Levy is $6,610,620, an increase of $603,170 (10%) over the 2020 tax levy. The tax rate is projected to increase from 16.512% to 16.765%.

What Does My Tax Dollar Pay For?

9% of the tax levy is used to pay the debt service on outstanding bonds. The Pavement Management Levy equals 11% of the levy; Building Fund equals 5% and Parks equal 1%. The other 74% is used for the General Fund to pay for basic government services like Police, Fire, Streets, and Zoning. A large share of General Fund Revenue (46.7%) is from non-tax sources such as Licenses, Permits and Contract Revenue. The chart to the right illustrates the percentage of each tax dollar used to fund General Fund programs net of the non-tax revenue sources. Funding for capital maintenance of roads has increased from $0 in 2015 to $750,000 in 2021, reflecting the current council’s commitment to road infrastructure.

2021 Expenditure Graph
2021 Tax Information Insert

Why Are My Taxes Increasing by More (or less) Than the Levy Increase?

The City’s property tax levy is only one of several taxing jurisdictions that are included on your tax statement. The City’s share of the tax bill is only 16% of the total. Levy changes by the other jurisdictions can have a greater impact on your total tax than any change by the City. Contact information for all taxing jurisdictions is available on your proposed tax statement.

Orono’s Tax Rate is the 4th Lowest in Hennepin County!

Average city rate in Hennepin County 38.4%
Orono tax rate 16.765%

Your property tax is calculated by multiplying your property’s tax capacity (calculated based on your property value) by the City’s tax rate. For taxes payable in 2021, the City’s tax rate is projected to be at 16.765% which is one of the four lowest in the Hennepin County.

For more information on the City of Orono's 2021 budget, please see following: