6.1. SR 06-06-2005 - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I The additional taxable value of $6,442,242 is down slightly from 2003 when $7, I 00,808 of commercial and industrial property was added to the tax base. The new housing starts were up slightly to 301 new single family homes compared to 285 in 2003. Townhome, condominium, and twinhome units totaled 247, down from 265 in 2003. In 2004, two manufacturing companies started the process to move their facilities to Elk River. Both companies received City assistance to purchase land for construction of new buildings to house their operations; both of the companies will start production at their new facilities in 2005. The addition of these companies created new employment opportunities and as the companies grow, new jobs will be created. The Elk River Housing and Redevelopment Authority (HRA) has been working on a major downtown revitalization project for the last several years. The project approvals, development agreement, and other pre-construction requirements were substantially completed in 2004 and construction is anticipated to start this spring. The construction will consist of a combination of both for sale and rental housing and commercial units, some adjacent to river frontage. In addition, as part of the project, the City is reconstructing a public parking lot to improve parking in the downtown area. Long-term financial planning. The City recently completed a review of the Financial Management Plan to ensure that the City would be able to sustain current services for the next ten years and maintain a level tax rate at the same time. The study estimated both residential and commercial market valuation growth for ten years so that estimated tax base data could be calculated. Based on the estimated tax base, the cost of current services inflated over time, and projected capital expenditures, it was determined that the City could continue to offer existing services while keeping the tax rate stable with only minor fluctuations. The study concluded that the City is in a position to allow for expanded staff, services, and capital projects, without a major impact on the tax rate. As part of the study, a debt affordability policy was discussed. Staff is currently preparing a draft policy for Council consideration. The policy will offer guidance to the existing and future Councils on the amount of property tax supported debt that may be issued. In 2004 the Comprehensive Land Use and Transportation plans were adopted by the City Council. The Comprehensive Land Use plan projects the City's population at full build out to be 37,000. The Plan adds two new land use designations, old town and commercial reserve and phases out the agricultural use designation in favor of a more dense designation of rural residential. Once the Comprehensive Land Use Plan was adopted and the sewer capacity study was complete, an in-depth sewer system expansion plan was started. This study, along with a sewer rate study, will be presented to the Council this spring. The sewer study addresses plant expansion timing and financing requirements necessary to meet the anticipated growth as defined in the Comprehensive Land Use Plan. The sewer rate study reviews current financial information and projects future revenues so that changes to the rates and rate structure can be made if necessary to meet the future financial needs of the sewer system. The initial findings of the rate study indicate that future rate increases will be very modest. The plant expansion project will be done in phases with the first phase of construction expected to start in late 2005 or early 2006. The Council adopted the Capital Improvement Plan for the years 2005-2009 and reviewed capital projects and requests for 2010-2014. Adoption of a CIP helps ensure that planning takes place to ensure that projects and other capital needs can be funded and that the projects occur in a timely fashion. Cash management policies and practices. Cash temporarily idle during the year was invested in demand deposits, certificates of deposits, United Statedgovemment and agency securities, and 3