5.5. SR 06-02-2008 - Laserfiche WebLink

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0 22,750. Population at full build out is estimated to be approximately 40,000. Urban services are available to approximately one-third of the land area in the City. The City of Elk River operates under a statutory form of government consisting of a four member City Council and a Mayor who is also a voting member. Council members are elected by ward to a four-year term with two Council seats up for election each even year. The Mayor is also elected to a four-year term. The City Council is responsible for adopting the City's budget and tax levy, passing resolutions and ordinances, all hiring and firing decisions, policy making, development and growth planning, and overall direction of the City. In addition to providing general government services, the City of Elk River provides a full range of other services including police and fire protection, building and other safety inspections, planning and zoning, economic development, environmental services, parks and recreation, library, street, snow removal, infrastructure maintenance and repair, and others. The City provides municipal water, sewer, garbage, and electric services and operates two off-sale liquor stores. The annual budget serves as the foundation for the City of Elk River's financial planning and control. Budget requests are submitted by all departments to the Finance Department each May. The Finance Department compiles these requests into a proposed budget. The Finance Department and City Administrator review the information and present a draft budget to the Council in August for consideration. Following Council discussion and public input, the final tax levy and budget are approved in December. The City's Financial Management Plan allows department heads to make administrative budget amendments (excluding personal service and capital outlay) throughout the year as long as the total department budget does not change and the amendment is approved by the City Administrator and Finance Director. The Council approves additional budget amendments in December of each year. 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 on page 28 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. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Elk River operates. Local economy. The local economy has slowed as evidenced by a decrease in building permits with a construction value of $67,308,652 being issued in 2007. Phis is a 30 percent decrease from 2006. New commercial, industrial, and institutional building accounted for $41,513,858 of new value, and. an additional $4,781,156 in additions and remodeling and $21,013,638 in residential construction make up the balance. The number of housing units added declined from 250 in 2006 to 113 in 2007. The average value of new homes decreased to $176,316. Single family homes accounted for 101 of the new housing units compared to 150 built in 2006. In 2007, the City approved a tax abatement agreement for a major expansion of Metal Craft Machine & Engineering, Inc. adding 20 new jobs and estimated market value totaling $4,871,500. Target completed and United Healthcare Services, Inc. started new industrial business with a market value totaling $35 million. During 2005, the City opened a 35 acre business park known as Northstar Business Park and all lots sold except three lots that are still available with an anticipated closing on one of the three remaining lots early in 2008. The City and Economic Development Authority completed a market study and established a vision for a new business park on the City owned property in the southeastern part of town by the Northstar Commuter depot. Marketing has started for an anchor tenant for the business park. The 0 IJ 1 1 1 1 1 1 1 I~ LJ 1