7.1. SR 05-05-2014 - Laserfiche WebLink

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Elk Elk River Comp ehensive Plan R1Ver Chart 12-1: Tax Base, on the pevious page, shows a decline in gross net tax capacity for the City of Elk River since 2010. It also shows that even though the City was able to reduce the tax levy amount in recent years, the local tax rate increased from 44.56% in 2010 to 49.56% in 2013. According to the 2013 Budget, the decline in gross net tax capacity is mainly due to a decline in residential taxable market values, which dropped 13% in 2012. The taxable market values for commercial properties dropped .21 % and industrial properties increased .38 %. Seeking commercial and industrial development as a means of building tax base is commonly thought of as ideal since, historically, a dollar of estimated market value of commercial - industrial property carried a higher tax capacity value than residential property. Legislative changes to the tax system resulted in declining tax capacity values for commercial - industrial properties from 1997 to 2002. However, given the relative stability of the taxable market values for commercial - industrial properties compared to residential properties in recent years, it is clear that focusing attention on tax base growth as a strategy for commercial - industrial properties is a legitimate community development strategy. The disparity in declines in taxable market values between residential and commercial - industrial properties results in businesses taking on a larger share of the local tax levy. Local tax competitiveness is an issue that falls within the context of business retention and expansion, commonly known as BR &E. City officials should continue efforts to perform functions within the BR &E framework to ensure local businesses have an opportunity to have an open dialogue with the City on an ongoing basis. This would aid in achieving the City's Community Development goal, which aims to, "Enhance and expand community involvement and public participation through a variety of innovative outlets ". Jobs Planning for commercial - industrial development continues to be an important issue for the City. A motivation for commercial - industrial development is the creation of jobs. Retaining and attracting livable wage jobs has been an ongoing objective for the City of Elk River. In 2013, commercial and industrial properties made up 23% of the tax base in Elk River (21 % and 2% respectively). According to the 2010 Census, 68% of Elk River workers had jobs outside of the City. Since 1990, roughly 40% of Elk River workers travel 35 or more minutes to work and nearly 80% of workers drive alone. By comparison, only 17.1 % of Minnesota workers have an average commute time of 35 minutes or more. Refer to chart 12 -2: Community -2010 for more information. Long commute times and employment outside of the City creates barriers to building local connections, can contribute to retail leakage, and reduces the amount of time available for recreation. In addition, there is a growing body of evidence that the next generation of workers will want to spend as little time commuting as possible. Retaining and attracting livable wage jobs will provide current and future Elk River residents the option of working where they live. Chapter 12: Community Development / 125