5.2. SR 06-19-2006 - 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 industrial, and institutional building accounted for $56,719,134 of new value with an additional $10,870,784 in additions and remodeling. Tax exempt construction of $20,776,000 and residential construction of $59,047,471 made up the balance. The number of housing units added declined from 548 in 2004 to 344 in 2005. The average value of new homes increased to $196,230. Single family homes accounted for 195 of the new housing units compared to 301 built in 2004. In 2005, four new industrial businesses located or expanded in Elk River adding 126 new jobs and market value totaling $5,865,137. Three of the new companies located in the City's newly opened Northstar Business Park. Infrastructure improvements to the park were partially financed by a $495,000 Infrastructure Grant from the Minnesota Department of Employment and Economic Development. The downtown revitalization project that the Elk River Housing and Redevelopment Authority (HRA) has been spearheading is now underway. A total of approximately $25,000,000 in redevelopment is occurring in the historic downtown district. A City park is being constructed downtown to compliment the new development. Two new buildings will consist of a combination of both for sale and rental housing and commercial units, with some housing overlooking the Mississippi River. The Bank of Elk River is building a major expansion to its main office that is located adjacent to the two new buildings. In addition, the HRA is reviewing other areas of downtown and beginning initial planning to allow for future redevelopment. The City constructed its second liquor store in 2005, along with additions to the public works complex and an expansion of the wastewater treatment plant. A new 16,000 square foot library is planned for 2006 adjacent to City Hall and the Public Safety Building. Industrial and commercial development has been very strong and is expected to remain strong; however, residential development has slowed considerably. There are approximately 800 residential lots available with more lots becoming available in 2006. The City is currently preparing to open a new business park with lots being available in 2007 or 2008. Long-term financial planning. The City Council recently approved completing a Land Use Financial Management Plan. This Plan builds on the Financial Management Plan and tax analysis study completed in 2005. The Land Use Financial Management Plan will focus mainly on undeveloped property with the goal of determining what type of development needs to occur in order to provide enough tax base to support the City's demand for services when fully developed. The Council has been diligent in maintaining a level tax rate. This study will provide the information needed to develop in a manner that will sustain or expand City services while keeping the tax rate stable. Department heads will be estimating staff additions, service levels, and capital needs for the next ten years as part of this process. The study completed in 2005 indicated that, based on the estimated tax base, the cost of current services inflated over time, and projected capital expenditures, the City could continue to offer existing services while keeping the tax rate stable with only minor fluctuations. This additional study will provide the community development department vital information to assist in properly zoning undeveloped areas of the City to maximize the tax base. Further, the study will evaluate the financial feasibility of expanding the sewer system to property that will be available for development after gravel mining is complete, which is expected to start occurring to a small degree in the next five years and continue over several decades. Cash management policies and practices. Cash temporarily idle during the year was invested in demand deposits, certificates of deposits, United States government and agency securities, and commercial paper as authorized by the City's investment policy. All idle cash is maintained in an 3