07-27-1998 Council Packet - Laserfiche WebLink

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To the City Council and Citizens of the City of Orono May 15, 1998 Economic C ondition and Outlook The City of Orono was incorporated effective January 1, 1955. The City is located on the northern shore of Lake Mirmetonka 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 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 types 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 commrmity’s natural amenities. It is anticipated that the positive appeal of the community, together with the extent of available land, will see the conununity 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 1997 to have a tax capacity rate that is one of the lowest in the county for communities over 1,000 in population, ranking third lowest of 41 communities. The strength of the City ’s financial condition is reflected in its bond rating of Aal since 1989. In 1997, residential construction continued at a very strong level. Building permit and plan review fees significantly exceeded expected levels. The much greater certainty concerning the Hignway 12 corridor location, along with the strong economy, generated substantial residential development activity. Redevelopment projects in the Navarre commercial area continue to move forward. The redevelopment began with Culvers restaurant and convenience store/service station. This project is complete. The City has now approved a proposal for a bank/office/commercial building on a site adjacent to the Culvers site. It is anticipated these projects will serve as a catalyst for additional redevelopment in the Navarre area. C ooperative Efforts With Other Jurisdictions The City continues to pursue opportunities for reducing the cost of City services. In 1992, Orono joined with three other cities for 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, $31,823 for 1995, and $35,880 for 1996. In 1997, the City was able to hold the prosecution fee increase to $36,956, or 3% over 1996. 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 services. This has increased the stability of this cooperative arrangement between the two cities. -4-