5 PCSR 01-12-1995 - Laserfiche WebLink

Home Browse Search

EXHIBIT 6 SEXECUTIVE SUMMARY In 1991, the State Legislature changed the tax laws which froze the City levy limits and decreased future property tax revenue. Lakeville needed to take action. On July 15, 1991, Lakeville's City Council passed an interim ordinance which temporarily prohibits approval of new residential plats and expansion or development of mobile(manufactured) home parks. This ordinance essentially provides the City with a time-out to develop a means of managing growth in a fiscally responsible manner. This fiscal impact study is the first action directed by the Council under the interim ordinance. The results of this study will be used as a base to develop impact fees. Fiscal impact analysis compares revenues and expenditures of various types of development to arrive at an overall net impact. There was little factual data on what residential developments actually contribute and cost the City's finances. In order to provide better fiscal impact data, a number of sites were selected to represent various housing types and market values. The revenues generated from property tax and intergovernmental aid are compared against expenditures on a per- erson, per-acre or per-unit basis, in order to arrive at a net fiscal impact. Additionally,we conducted a focus group with department heads to provide context and a broader perspective. Also, we analyzed current service standards and new tax laws in order to provide an information base for the next phase of the growth study. As probably expected, lower value homes tended to have a negative fiscal impact. The high value homes had positive fiscal impacts. Senior housing, when not constructed with tax increment financing, produces a net positive fiscal impact. In general, the higher the density of housing the more the return, however, there are diminishing returns after a certain point in market value and density. Twinhomes, quads, townhomes and high value homes provide the best fiscal investment in housing. The scattered development puts an enormous strain on the City's operating and capital budgets and negatively impacts commercial areas trying to establish service areas. The 3600 lots that are in line for development will act to randomly fill in the northern part of the City. Future planning should be done in contiguous patterns. Increasingly, City efforts will need to focus on redevelopment as the City ages. Mobile homes and areas with aged housing stock, in particular, are major concerns of the Council and City staff. This study finds that these areas have a significant negative fiscal impact. Remedies include focusing on crime prevention and property maintenance. Overall, the moratorium and subsequent growth studies emphasize prudent City management. The City needs to be involved with other municipalities, counties and school districts in order to coordinate growth in an environment of constrained resources. A Dakota County effort to conduct similar studies is highly encouraged, because many cities would benefit. • 1