01-25-1988 - Agenda Packet City Council - regular meeting

Home Browse Search

more attractive while foreign goods become relatively more -xpensive. This should start to decrease the monthly deficit figures. While *he increase in foreign goods is expected to increase inflationary pressure in the United States, should interest rates stay at or below current levels it is not anticipated that the inflation rate should go up markedly from 187. As mentioned before the weaker dollar however may increase pressure for higher interest rates as a means to strengthen the dol lar and attract more foreign investment. Whi le the current economic indicators remain strong through the third and into the fourth quarter of 1987, the early indications of the the psychological impact of the "Black Monday" include reduced consumer spending of discretionary items such as high dollar purchases of non essential goods and a decrease in donations to charitable agencies. The national economic gyrations may be felt here in Minnesota because of its economically sensitive state finances. With a downturn in the economy these revenues may be less than needed and require cuts to balance the State budget for the bienniam ending summer 1998 with further reductions and a tax increase in 1989. The Minnesota's unemployment rate increased above the national rate in December for the first time in months. The Metropolitan economy however, has continued to remain strong with a moderate inflation rate for 1987, estimated at about 2.7% less than the 4.4% nationally. Locally, in Orono, the reflection of the strong metropolitan economy has been 67 new housing starts for 1987. This is a record for Orono and is two and one half times the number of housing starts that Orono had in 1980. RemtAelings both in residential and commercial have continued at the pace fcun:l during *he past two years and activity as measured in zoning applications resulted in the City receiving 135 zoning appii ations, which is up markedly from the 97 applications in 19