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

Home Browse Search

11488.4 TO: Playor and City Council ��...11 FROM: (lark Bernhardson, City AdministratoCV``�� DATE: January 14, 1988 SUBJECT: 1986 Financial Health Report Attachment A. City of Orono Financial Health Profile 1982-1986 ISSUE_ - Acceptance of information from the State Auditor regarding the City's financial profile. INTRODUCTION - For the last several years the State Auditor's office as_been working to develop a format for informaticri to which they have access regarding local communities over 2500. This is based principally on the community's audit report in order to inform local government officials and the community as to how their community rates on a state wide basis. The value of this report has been improving with each addition. The State's lack of familiarity with each city however does require the local community to closely examine the information as to its validity. DISCUSSION - The following represent staff comments :egarding the various indicators. 1. Population - This figure is based on the Metropolitan Council estimate as of April 1, 1986. The City's 12/31 estimate for that year was 7,310. The Metro Council's April 1, 1987 estimate was 7,212. The difference is the result of the City's estimating single family additions having a higher per house rate than the 2.3 estimated by the Metro Council. 2. Property _' aluation - A downturn in market value for 1986 was the result principally of the revaluation of Lakeshore property. The downturn in assessed value was in part due to that coupled with changes in classifications. The assessed value for 1987 was $103.6 million and for 1988 is estimated to be $107.5 mi 1 1 ion. 3. Buildinq_Perm_its - The estimated value of building permits for 1987 is expected to be $20.7 million. 4. Retail Sales _Activity - This indicator is generated f rom gross sales tax receipts by the State. The staff has no idea as to why their are great fluctuations between 1982 and 1986 as the number of businesses lister' for the reports have not chanfled markedly since 1983. It is also felt thi-- is not .iynifican.t when related to the City's general financial health at this time.