5.6. SR 05-08-2006 - Laserfiche WebLink

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2) In 2005, the City Council reviewed a 10-year revenue expenditure model that was very general in nature. This modeling was done to better understand the impacts of a pavement management plan and the strategies associated with how to pay for the same. The proposed "land Use Financial Plan" will be of the same style but will run for 20 years and be very specific in nature. 3) Unlike Metropolitan communities that can rely on Fiscal Disparities as an equalization method, if market value revenue falls short of service needs, Elk River will need to stand alone on its' final build-out level. 4) Most cities that have a population base of 36,000 have a geographic area to service of between 8 to 12 square miles. Elk River will have to service a community that is 45 square miles which could translate to a higher per capita cost for basic services. 5) At the present time, the City has significant revenue infusions that may not be available at the time of final build-out including land fill fees, payment -in-lieu at the NRG and significantly less permitting fees. Although all of these revenue sources do not directly go into the general fund they still represent a value that is equal to 20% of the general fund budget. 6) A valuation market study, depending on the detail, could be structured to understand and better budget for future needs such as capital improvements, equipment and facilities, reserves, pavement management, personnel additions or modifications based on when growth will happen and the type of revenue generated. 7) A study relating to timing and the type of value being generated is important to the overall financial review of servicing the northern area of the City (gravel mining area and commercial reserve) in light of needed infrastructure improvements that will carry significant debt. 8) The final and most important reason for this study is to determine if a valuation problem exists and if so, what types of policies should be initiated to achieve the values necessary to support appropriate services. A prime example of this will be the opening of the gravel mining areas for development and the commercial reserves located in the northern half of the City on the east side of 169, respectively. The City's planning studies would normally look at appropriate land uses based on typical organizational assumptions such as roads, proper land use transitions and on-going City policies of density, product type, etc. However, if a valuation gap does exist it could lead to modifications as to the appropriate land use and the timing of when development could occur. Another example of how this type of study could assist the City is engaging the EDA in discussing whether employment or project value should be the prime motivators for future assistance.