07-10-1995 Council Packet - Laserfiche WebLink

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To the City Council and Citizens of the City of Orono May 17, 1995 Economic C ondition and Outlook 1 I The City of Orono was incorporated effective January 1, 1955. The City is located on the nonhern 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 total of 15.1 square miles of land area). Of Lake Minnetonka. 40% of the shoreline and 33% of the lake area is in Orono. The City of (3rono is a third ring suburb in the seven-county metropolitan Twin Cities area Minneapolis/St. Paul and is liKated on Lake Minnetonka, the tenth largest lake in Minnesota. Orono developed primarily because of this aesthetic amenity, which is the most heavily used recreational lake in the state. This heavy use is a result of the quality of its 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 ci>mtnunities. which are part of the original township, and substantially surrounds a third community. As indicated earlier, Orono c»«)perates with these cities for the most cost effective provision of City services. Orono is home to many of the metropolitan area’s top executives w ho appreciate the community ’s natural amenities. It is anticipated 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 ba.se. Orono continued in 1994 to have a tax capacity rate that is one of the lowest in the county for communities over l.CKX) in population, ranking sixth lowest of 38 communities. The strength of the City ’s financial condition is reflected in its bond rating of Aal since 1989. In 1994, the level of residential con.struction continued to strengthen. Building permit and plan review' fees significantly exceeded expected levels. Even with the uncertainty concerning the Highway 12 corridor kx:ation. the improvement in the economy generated sub.stantial new residential deveK'pment proposals in 1994. A 60-unit subdivision was approved in 1994. This will cause a substantial increase in the level of residential development in the City. C ooperatint ; Eftorts With Other Jlrisi )iction .s The City continues to pur.sue opportunities for reducing the cost of City services. In 1992, Orono joined with three other cities for the provision of pro.secution .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. 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 tsvo cities were able to agree to three-year contracts for both the police and fire services. This has increased the stability of this cooperative arrangement between the two cities. -4- ■I I i