6.2 SR 06-03-2024 - Laserfiche WebLink

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4 The City provides a full range of services and amenities including police and fire protection, building safety inspections, planning and zoning, economic development, environmental services, recreation programming, street and park maintenance, and snow removal. The City also manages municipal water, sanitary sewer, garbage/recycling, and electric services. Elk River also owns and operates two municipal off-sale liquor stores, the City library, community event center and over 40 active and passive parks. The annual budget serves as the foundation for the City’s financial planning and control. The City administrator must prepare estimates for an annual budget and submit them to the City council for approval. The council is required to adopt a final budget by late December for the subsequent year. The budget is prepared by fund, function (e.g., public works), and department (e.g., streets). Department directors are allowed to make administrative budget amendments (excluding personal service and capital outlay) throughout the year if the total department budget does not change and the amendment is approved by the City administrator and finance manager. Budget amendments to the total budgeted expenditures require City council approval. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Fund, this comparison is presented as part of the basic financial statements for the Governmental Funds. For other Governmental Funds with appropriated annual budgets, this comparison is presented in the Governmental Fund subsection of this report. Local Economy The local economy has continued to grow as indicated by building permits with a construction value of $105,925,954 issued in 2023. New construction accounts for $53,720,802 and additions/remodels make up the $52,205,152 balance. In 2022, residential growth was stable as the City issued 93 new housing permits, slightly less than the 95 permits issued in 2022. Single family homes accounted for 92 of the new permits, in addition to one new multi-family apartment buildings with a total of 52 units. The average value home decreased to $340,300 from $344,100 in 2022. The recent market trend shows stable property values on existing properties and new construction/remodeling. There remains continued interest in both affordable and market rate multi- family housing projects, as well as protecting property values of the existing housing stock. Many of Elk River’s employers reported stable employment levels during 2023 and are expected to remain stable. This is largely due to the diverse industry sectors of manufacturing, retail trade, government, and health services that drive the local economy within the region. The commercial/industrial sector has experienced modest growth and the economic outlook in this region looks promising with recent development projects that should continue to spur tax base growth and employment. Long-term Financial Planning The City has developed a financial management plan that provides a long-range forecast projecting future expenditures, revenues, and development. The council diligently maintains a level tax rate and the plan provides the guidance needed to develop and sustain City services while keeping the property taxes stable. The council reviews and updates the financial management plan annually as part of the annual budget and Capital Improvement Plan (CIP) process. The CIP is a comprehensive five-year planning tool that forecasts the City’s capital needs based on the City’s long-range plans, goals, and policies. Page 125 of 464