06-25-1990 Council Packet - Laserfiche WebLink

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citizens of the City of Orono May 18, 1990 ECONOMIC CONDITION 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 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 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 lake in Minnesota. Orono developed primarily because of this aesthetic amenity, which is the most heavily used recreational lake in the Stace. 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 types of housing together with a small commercial district. The City totally surrounds two communities, which are part of the original township, and substantially surrounds a third community. Orono is home to many of the metropolitan area's top executives who appreciate the community's natural amenities. The metropolitan area remains the economic engine of the State of Minnesota and continues, together with the nation, to grow economically. The unemployment rate for Hennepin County, of which Orono is part, is 3.6%, well below both the State and national averages. It is anticipated that the positive appeal of the community, together with the extent of available land, will see the community experiencing continued devel opment for the next ten years. The City is in a strong financial position and because of its strong residential tax base, Orono has a tax capacity rate that is the lowest in the County for communities over 1,000 in population. While the City received local government aids and homestead credit monies for 1989, a special legislative session removed all but $2,900 of the total of $334,720 for the 1990 budget year, but allowed the City to raise the equivalent amount in property taxes. Despite this, Orono's 1990 tax capacity rate was still the lowest in Hennepin County for com munities over 1,000 in population. This loss for Orono was fortuitous in its timing as the State Legislature in the regular 199C session, which concluded the end of April, reduced aids to cities by the equivalent of 1.5% of their total tax and aid revenues. For Orono this would have been an additional $25,000 aid loss, but since there was only $2,900 left, it was all the State could remove. This may also mean the City effectively may no longer be penalized by any levy over its levy limit. The strength of the City's financial condition is reflected in the upgrading of its bond rating from Aa to an Aal. This was in conjunction with the sale of $2.3 million in sewer and water revenue bonds used for financing improvements in the City's Highway 12 corridor. These improvements facilitated approvals for the Initial commercial and residential development that were made possible by the City's Highway 12 Corridor Comprehensive Plan Amendment. -2-