HomeMy WebLinkAbout11 18 2013 EDA Report 7A
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: November 18, 2013
AGENDA #: 7A
PREPARED BY: Jerilyn Erickson, Treasurer
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ADOPTING THE FINAL
2014 EDA BUDGET AND TAX LEVY
DISCUSSION: Introduction
The purpose of this agenda item is to formally adopt the final budget and
tax levy for 2014.
History
The EDA approved a preliminary budget on August 19, 2013 which
included a $150,000 tax levy. The City Council approved the proposed
EDA budget and preliminary tax levy of $150,000 at its September 9,
2013 meeting.
Current Circumstances
The budget being presented today is the same as what was considered
in August with the following changes:
Additional funding/expenditures associated with phase II of the
Technology Village Incubator;
Additional funding/expenditures associated with the allocation of
25% of the Community Development Specialist’s salary and
benefits.
Conclusion
The EDA should approve a resolution that must then be forwarded to the
City Council for its 2013 budget review/approval process.
ISSUES: Article 10.2 of the EDA bylaws requires that the EDA budget by approved
by the City Council. Upon approval by the EDA, the final budget will be
presented to the City Council at the December 9, 2013 meeting.
The proration of the Community Development Specialist’s salary is likely
to increase over the next few years to more accurately portray the
amount of time this position devotes to economic development related
activities.
FINANCIAL The EDA recommended an EDA property tax levy of $150,000 at their
IMPACT:
August meeting.
Per State Statute 469.107 subd. 1, a city may, at the request of the EDA,
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 current
estimated taxable market value for taxes payable in 2014 is
$2,455,943,200; therefore, the maximum tax levy could be $445,263.
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.
ALTERNATIVES: The following alternatives are available to the EDA:
1. Approve a Resolution Adopting the Final 2014 EDA Budget and
Tax Levy as proposed, or as amended for recommendation to the
city council.
RECOMMENDED Alternative 1.
MOTION:
ATTACHMENTS: 1. EDA Resolution
2. Proposed EDA 2014 Budget