Laserfiche WebLink
��� <br />� <br />Memo <br />To: City Council, Advisory Commissions <br />Nea1 Beets, City Manager <br />�rom: Chris Miller, Finance Director <br />Date: January 26,2004 <br />Re: Identifying the City's Financial Strengths, Weaknesses, Opportunities, and Threats <br />Background <br />In conjunction with the City Council's long-term planning efforts, Staff submits this advisory <br />memo to identify the financial considerations necessary to accommodate the City's initiatives <br />over the ne� 3-5 years. <br />From a financial planning perspective, Staff advises the Council (hereafter to include Advisory <br />Commissions) to identify the City's financial strengths, weaknesses, opportunities, and threats. <br />A chart summarizing these concepts is attached, with a more detailed explanation provided <br />below. <br />Strengths <br />The City enjoys a diverse tax base that provides a strong balance between residential and <br />commercial properties. Although the City's housing stock faces many challenges in the future, it <br />nonetheless is increasing in overall value. The typical valuation increase of single-family homes <br />in Roseville is approximately 10% per year. The City's commercial presence also remains <br />strong and includes retail, industriaUmanufacturing, and service sectors. Not surprisingly, the <br />City's commercial base is somewhat weighted in the retail sector. However, retail <br />establishments in Roseville fared relatively well during the most recent recessionary period, <br />demonstrating its ability to withstand economic downturns. <br />The City is in the enviable position of having a relatively low reliance on debt. The City <br />compares favorably in both overall debt and debt per capita categories, when matched against <br />comparable cities. Unlike most cities, Roseville does not issue debt to finance construction of its <br />streets. Fortunately City leaders had the foresight to establish an infrastructure replacement fund <br />nearly two decades ago, that allows neighborhood streets and MSA roadways to be reconstructed <br />without issuing debt or using tax levy dollars. <br />The City's overall tax rate remains among the lowest 20% of cities in the metro area, and is the <br />absolute lowest for cities serving a population between 25,000 and 45,000 residents. This leaves <br />the City well-positioned to capitalize on its overall `Livability Index', andJor expand the current <br />services and service levels if the Council desires. <br />2 <br />