07-08-1996 Council Packet - Laserfiche WebLink

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To the Cit> Council and Citizens of the City of Orono May 29, 1996 Econo .nuc C ondition and Outlook The City of Orono was incorporated effective January 1. 1955. The City is located on the northern shore of Lake Minnetonka about 15 miles west of Minneapolis. Of the City’s 24.5 square miles of area, 50% is open water or marshland (with a toul of 12.3 square miles of land area). Of Lake Minnetonka, 40% of the shoreline and 33% of the lake area is in Orono. The City of Orono is a third ring suburb in the seven-county metropolitan Twin Cities area of Minneapolis/St. Paul, and is located on Lake Minnetonka, the tenth largest and most heavily used recreational lake in Minnesota. Orono developed primarily because of this aesthetic amenity. This heavy use is a result of the quality of the lake’s aesthetic appeal, together with its proximity to the metropolitan urban core The City is primarily a residential community with a mixture of several t>pes of housing, and includes a small commercial district. Orono totally surrounds two communities, which are part of the original township, and substantially surrounds a third community. As indicated earlier, Orono cooperates with these cities for the most cost effective provision of City services. Orono is home to many of the metropolitan area's top executives who appreciate the community's natural amenities. It is aiuicipated that the positive appeal of the community, together with the extent of available land, will see the community experiencing continued development for the next ten years. The City is in a strong financial position. Because of its strong residential tax base, Orono continued in 1995 to have a tax capacity rate that is one of the lowest in the county for communities over 1,000 in population, ranking sixili lowest of 40 communities. The strength of the City’s financial condition is reflected in its bond rating of Aal since 1989. In 1995, residential construction continued at a strong level. Building permit and plan review fees significantly exceeded expected levels. Even with the uncertainty concerning the Highway 12 corridor location, the improvement in the economy generated substantial residential development activity. A 60-unit subdivision, approved in 1994, generated a high level of residemial development activity in 1995. C ooperative Efforts With Other Juusdictions The City continues to pursue opportunities for reducing the cost of City services. In 1992, Orono joined with three other cities fcr the provision of prosecution services. This arrangement reduced the City’s annual prosecution costs from a three-year average of approximately $100,000 to an annual fixed fee of $30,000 through 1994, and $31,823 for 1995. As indicated earlier, the City is involved in cooperative arrangements for both police and fire service. The City of Long Lake provides fire service to the majority of Orono. The City of Orono provides police services to Long Lake. In 1993, the two cities were able to agree to three-year contracts for both the police and fire serv ices. This has increased the stability of this cooperative arrangement between the two cities. The City Council has given conceptual approval to a joint project with Hennepin Parks to construct a bike/hike trail on Old Crystal Bay Road connecting two regional park facilities — the Luce Line Trail and Baker Park. This trail will also serve the new City facilities and the Orono school campus. Funding for the trail will be shared equally between the City and Hennepin Parks. -4- <