5.4. SR 06-07-2010 - Laserfiche WebLink

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ii ' rail line that runs from Minneapolis to Big Lake. With the anticipated completion of the study in 2010, the City will begin marketing its 75-acres for commercial/industrial development. ' The City undertook a federal grant initiative entitled, Neighborhood Stabilization Program (NSP), to stimulate ownership and rehabilitation of foreclosed homes in Elk River's hardest hit neighborhoods. The NSP program provided down payment assistance of $5,000 to $10,000 to income eligible ' homeowners. In addition to NSP, other City foreclosure initiatives included implementing a coordinated system to monitor foreclosed homes/neighborhoods and prevention efforts by providing foreclosure counseling referrals to residents. ' Long-term financial planning ' As part of a yearly budget process the City Council reviews the updated Financial Management Plan. The Financial Management Plan provides along-range forecast that brings together future expenditures, revenues, and development of the City. The Council has been diligent in maintaining a level tax rate. ' This plan provides the information needed to develop in a manner that will sustain or expand City services while keeping the property taxes stable. Department heads take part in this process to estimate staff additions, service levels, and capital needs for the next ten years. ' In addition, the City Council continually reviews cash flow analysis and long-term planning as part of the comprehensive Capital Improvement Plan (CIP) process. The CIP is a 5-year planning tool that forecasts the City's capital needs based on the City's long-range plans, goals, and policies. Relevant Financial Policies ' The total unreserved, designated fund balance in the general fund (47.3 percent of next year's budgeted general fund expenditures) falls within the policy guidelines set by the Council for budgetary and planning purposes (minimum of 40 percent). The fund balance is used to accommodate cash flows and ' the timing of tax and state aid receipts which are received twice a year. Following the close of the fiscal year and review of the financial management plan fund balance policy, the Council at its discretion decides to what funds the remaining balance will be allocated. 1 0 Changes in state law over the past several years have resulted in funding changes for both schools and local governments. Reductions in both Market Value Homestead Credits (MVHC) and Local Government Aids (LGA) programs have resulted in revenue losses to the City. Due to the uncertainty in receiving the aid from the state, the LGA and MVHC revenues are not included in the 2010 budget. The City does not expect in the short-term to see LGA and MVHC amounts restored to previously years levels. In addition, the State Legislature did reinstate levy limits starting in 2009 for three consecutive years and will have an impact on future budgeting parameters thru the 2011 budget. Major Initiatives After years of planning and development, Northstar Commuter Rail began offering service on November 16. Elk River Station, the largest depot on the commuter rail line that runs from Big Lake to Minneapolis, has had the highest ridership of any of the stations since the commuter rail line began operating. Northstar provides fast and convenient transportation for morning and afternoon commuters plus there is limited weekend and special event service. In the fall of 2009, the City completed a major east/west connection between Highway 169 and CR-13. The project will assist in improving traffic movement to and from Highway 169 and the eastern part of the City. The City received a federal grant in the amount of $996,000 to assist with construction of this project.