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been much better than the other states in the Upper Midwest which <br />has brought comfort to those who proudly proclaim Minnesota as a <br />high tax, high service state. The year has also seen the <br />University of Minnesota coming under attack leading to the <br />resignation of the President, together with reports of the <br />state's entire public educational system. While absorbing <br />substantial state revenues, many allege the highly touted system <br />produces only a mediocre product. <br />The drought evidenced itself in Orono by substantially reduced <br />lake levels with the Council adopting a water conservation <br />ordinance to protect this valuable resource. Building in the <br />community was higher than expected, although down from the record <br />in 1987. The average permit for a new single family residence <br />being about $240,000. The City of Orono's tax base continued to <br />be strong and had the second highest average house value of any <br />community over 1,000 population in Hennepin County. This strong <br />tax base however, has been detrimental as the state's funding <br />formulas direct monies to areas where there are low property tax <br />values (regardless of income in the area). <br />ORGANIZATIONAL POLICY BODY - The 1988 election continued into <br />1989 the same composition on the Council as in the 2nd half of <br />1988 with James Grabek being re-elected Mayor and CounciImembers <br />Barbara Peterson, Ed Callahan and Alan Nettles being elected to <br />the Council seats. Mr. Nettles had replaced Mr. William Sime, <br />who had resigned as a Councilmember mid-year. <br />Other notable events the organizational body included the "Olive <br />Branch" approach to the City of Long Lake in an attempt to <br />resolve mutual issues of the two councils through mediation. The <br />annual Board of Review resulted in an ever increasing number of <br />assessment appeals of property values. Many were not contesting <br />that their property is not actually worth that value, but <br />primarily because of the ever increasing taxes that accompany <br />such values. The Council undertook the annual goal setting in <br />August during the budget process. <br />Of benefit for both the primary and general elections this year <br />was the newly acquired voting equipment which greatly cacilitated <br />the election process with result being completed in just a few <br />hours after closing of the polls. <br />The City was deeply saddened by the loss of its former Mayor Brad