5.6. SR 05-08-2006 - Laserfiche WebLink

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MEMORANDUM TO: Mayor and City Council FROM: Scott Clark, Community Development Director DATE: May 3, 2006 SUBJECT: Land Use Financial Plan Summary and Purpose of the Valuation Study Over the next several years the Community Development Department will be responsible for a whole series of studies including, but not limited to: Gravel Mining Area Reuse, Land Fill Reuse, Policies on the Development of the Gateway Business Park, review of Economic Development Policies, Highway 10 Reuse Vision Study and the "North of 10 Downtown Redevelopment Plan." The obvious commonality of all these studies will be the strategies involved in determining end land uses. The question that is not obvious is what is the correct balance of land uses that will achieve economic health for the City. The concept of economic health means that once the City is completely built, per the current policies of the Comprehensive Plan, will there be sufficient market valuation to generate an appropriate tax. base to pay for City services at a reasonable tax. rate. In order to determine the appropriateness of land uses some type of financial management planning model needs to be developed to test future revenue generation to needed expenditure levels for a City built-out to a population of 36,000. Why Should the City Enter Into A Financial Modeling Plan? 1) On January 28, 2002 the City completed a Financial Management Plan that included the following adopted policies: a. (2.4)- The City will seek a balanced tax. base through support of a sound mix of residential, commercial and industrial development. b. (1.6).. . All planning must recognize the relationship between finance and community development.. ., The concept of determining an appropriately balanced tax base, in order to meet future needs, can only be achieved through some level of quantifiable modeling.