HomeMy WebLinkAbout09 19 2013 EDA rept 7A
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: August 19, 2013
AGENDA #: 7A
PREPARED BY: Jerilyn Erickson, Treasurer
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ADOPTING THE
PROPOSED 2014 EDA BUDGET AND TAX LEVY
DISCUSSION: Introduction
The purpose of this agenda item is to formally adopt the proposed
budget and tax levy for 2014. During its last meeting on July 15, the staff
presented to the EDA a proposed budget based on an EDA tax levy of
$150,000.
History
The 2013 EDA budget reflects 50% of the personnel costs associated
with the Economic Development Director position as well as other
operational costs such as professional services, training, memberships,
etc. The 2013 EDA budget was funded primarily by a new property tax
levy.
The budget was amended on January 28, 2013 to provide funding for the
remaining setup costs associated with the Technology Village Business
Incubator that were not completed in 2012.
The EDA also implemented a SAC Deferral Program and reallocated
$20,000 from professional services to fund this new program in 2013.
Current Circumstances
City staff has prepared their department budget requests for 2014. The
original 2013 budget included some basic operational expenses,
including $60k for professional services, as well as expenses associated
with the Technology Village Business Incubator. The 2014 proposed
budget reflects some adjustments for personnel costs, legal and
professional services as well as funding for the SAC loan deferral
program.
Due to levy limits imposed for the general property tax levy and the
pressures that it will place on the General Fund reserves, staff
recommends that the SAC Deferral Program be funded by maintaining
professional services at approximately the 2013 amended level.
The proposed budget has been included with this agenda report. It
includes two years of actual history, current year original and amended
budget, and the proposed 2014 budget.
Conclusion
The EDA should approve a resolution that must then be forwarded to the
City Council for its 2014 budget review/approval process.
ISSUES: Article 10.2 of the EDA bylaws requires that the EDA budget by approved
by the City Council. This budget is based on direction provided to staff at
July’s meeting. Upon approval by the EDA, the preliminary budget will
be presented to the City Council at the September 9, 2013 meeting.
FINANCIAL Per State Statute 469.107 subd. 1, a city may, at the request of the EDA,
IMPACT:
levy a tax in any year for the benefit of the authority. The tax must be not
more than 0.01813 percent of the taxable market value. The estimated
taxable market value for taxes payable in 2014 is $2,457,463,800;
therefore, the maximum tax levy could be $445,538.
If the City were to consider an EDA levy that is greater than 0.01813
percent of taxable market value, the levy would be subject to reverse
referendum provisions as outlined in State statute 469.107 subd. 2.
Levy limits are in place for 2014. The EDA levy is subject to these limits.
All of the above options must also be approved by the City Council.
ALTERNATIVES: The following alternatives are available to the EDA:
1. Approve a Resolution Adopting the Proposed 2014 EDA Budget
and Tax Levy as proposed.
2. Approve a Resolution Adopting the Proposed 2014 EDA Budget
and Tax Levy as amended.
RECOMMENDED Alternative 1.
MOTION:
ATTACHMENTS: 1. EDA Resolution
2. Proposed EDA 2014 Budget