Laserfiche WebLink
El _ Elk River Comp eher�e�Plan <br /> River <br /> Chart 12-1: Tax Base, on the pevious page, shows a decline in gross net tax <br /> capacity for the City of Elk River since 2010. It also shows that even though <br /> the City was able to reduce the tax levy amount in recent years, the local tax <br /> rate increased from 44.56% in 2010 to 49.56% in 2013. According to the <br /> 2013 Budget, the decline in gross net tax capacity is mainly due to a decline <br /> in residential taxable market values, which dropped 13% in 2012. The taxable <br /> market values for commercial properties dropped .21% and industrial properties <br /> increased .38%. Seeking commercial and industrial development as a means <br /> of building tax base is commonly thought of as ideal since, historically, a dollar <br /> of estimated market value of commercial-industrial property carried a higher tax <br /> capacity value than residential property. Legislative changes to the tax system <br /> resulted in declining tax capacity values for commercial-industrial properties <br /> from 1997 to 2002. However, given the relative stability of the taxable market <br /> values for commercial-industrial properties compared to residential properties in <br /> recent years, it is clear that focusing attention on tax base growth as a strategy <br /> for commercial-industrial properties is a legitimate community development <br /> strategy. <br /> The disparity in declines in taxable market values between residential and <br /> commercial-industrial properties results in businesses taking on a larger share <br /> of the local tax levy. Local tax competitiveness is an issue that falls within the <br /> context of business retention and expansion, commonly known as BR&E. City <br /> officials should continue efforts to perform functions within the BR&E framework <br /> to ensure local businesses have an opportunity to have an open dialogue with <br /> the City on an ongoing basis. This would aid in achieving the City's Community <br /> Development goal, which aims to, "Enhance and expand community involvement <br /> and public participation through a variety of innovative outlets". <br /> Jobs <br /> Planning for commercial-industrial development continues to be an important <br /> issue for the City. A motivation for commercial-industrial development is the <br /> creation of jobs. <br /> Retaining and attracting livable wage jobs has been an ongoing objective <br /> for the City of Elk River. In 2013, commercial and industrial properties <br /> made up 23% of the tax base in Elk River (21% and 2% respectively). <br /> According to the 2010 Census, 68% of Elk River workers had jobs <br /> outside of the City. Since 1990, roughly 40% of Elk River workers travel <br /> 35 or more minutes to work and nearly 80% of workers drive alone. By <br /> comparison, only 17.1% of Minnesota workers have an average commute <br /> time of 35 minutes or more. Refer to chart 12-2: Community-2010 for more <br /> information. <br /> Long commute times and employment outside of the City creates barriers to <br /> building local connections, can contribute to retail leakage, and reduces the <br /> amount of time available for recreation. In addition, there is a growing body of <br /> evidence that the next generation of workers will want to spend as little time <br /> commuting as possible. Retaining and attracting livable wage jobs will provide <br /> current and future Elk River residents the option of working where they live. <br /> Chapter 12: Community Development 1125 <br />