HomeMy WebLinkAbout7A- 2017 EDA Tax Levy and Budget
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: August 15, 2016
AGENDA #: 7A
PREPARED BY: Dan Rogness, Community & Economic Development Director
AGENDA ITEM: RESOLUTION TO APPROVE THE PROPOSED 2017 EDA TAX LEVY AND
BUDGET
DISCUSSION: Introduction
The purpose of this agenda item is to consider approving a proposed 2017 EDA
tax levy and budget. Staff has provided a resolution for approval.
History
The EDA’s 2016 budget was approved by the City Council last December to in-
clude the following primary factors:
1. The budget included a special EDA tax levy of $155,000.
2. The budget included 50% personnel support for Dan and Casey.
3. The budget included $27,650 for Technology Village.
4. $22,095 of EDA reserves was used to balance the budget.
5. The total 2016 EDA budget was $181,425.
6. The 2015 fiscal year ended with EDA reserves of $183,950.
Current Circumstances
The EDA and Technology Village Board have discussed draft versions of a pro-
posed 2017 budget, which is summarized as follows:
1. The tax levy decreases from $155,000 to $140,000.
2. Revenues of $8,500 from Technology Village leases assumes 90% occu-
pancy (100% = $9,500).
3. Use of EDA budget reserves is proposed to be $9,825 in order to balance
the budget compared to $15,925 in 2016.
4. Slight changes are made to the line items, but overall, the EDA expendi-
tures do not change; $20,000 is budgeted for Professional Services.
5. Technology Village budget decreased from $27,650 to $9,500; assuming
full rent is received during the year, this budget shows expenditures match-
ing revenue.
ISSUES: The EDA reviewed a second draft of the budget on July 18, including a brief dis-
cussion on the validity of having an EDA. The Commissioners decided to defer
more discussion on that issue until after the local elections in November.
FINANCIAL
IMPACT:
As identified under Current Circumstances.
2
ALTERNATIVES: 1. Motion and a second to approve a resolution approving the proposed 2017
EDA tax levy of $140,000 and budget of $160,825, or as further amended by
the EDA.
2. Take no action and provide direction to staff.
RECOMMENDED
MOTION:
Alternative #1.
ATTACHMENTS: 1. Resolution
2. Proposed 2017 EDA budget
RESOLUTION 16-02EDA
A RESOLUTION APPROVING THE PROPOSED
2017 ECONOMIC DEVELOPMENT AUTHORITY TAX LEVY AND BUDGET
Motion By: Second By:
WHEREAS, State Statute 469.107 subd. 1 provides that a city may, at the request of the
Economic Development Authority, levy a tax in any year for the benefit of the
authority in an amount not to exceed 0.01813 percent of taxable market value; and
WHEREAS, The EDA proposes a 2017 tax levy for economic development purposes in the
amount of $140,000; and
WHEREAS,
The EDA proposes a 2017 annual budget in the amount of $160,825.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE ECONOMIC DEVELOPMENT
AUTHORITY OF PRIOR LAKE, MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The EDA requests that the Prior Lake City Council levy a special tax of $140,000 to be collected in
2017 pursuant to Minnesota Statutes 469.107.
3. The EDA requests that the Prior Lake City Council adopt the 2017 annual budget in the amount of
$160,825.
PASSED AND ADOPTED THIS 15th DAY OF AUGUST, 2016.
VOTE Hedberg Keeney Choudek Chromy Sheehan-
Kerber
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, Executive Director