6.0. HRSR 08-25-2003 ITEM # 6.
City of
Elk -�-�
River
MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: August 25, 2003
SUBJECT: Consider Year 2004 Budget and Resolution Regarding HRA Levy
Attachments
• Budget worksheet-Page 1 &2-HRA Projected Revenue&Expenses
• Resolution establishing the HRA tax levy for collection in year 2004
Summary
The Economic Development Department consists of two separate budgets including:
• Economic Development Authority
• Housing&Redevelopment Authority
In the past the City General Fund supported 20% of the personal service expenses. Starting
in 2003 the EDA and HRA levies have been feasible to balance the Economic Development
Department without General Fund revenues. HRA revenues are estimated at 10% growth
in market value for year 2004. In addition,2004 revenues include a transfer in from TIF
District 16 in the amount of$42,000 to repay the HRA for eligible expenditures related to
the King&Main TIF project.
The EDA, at its August meeting,requested that the Personal Service costs (salaries and
benefits) be more appropriately divided,in terms of staff time being spent. In 2003 Personal
Services were divided between the EDA and HRA respectively at 70/30.
Staff recommends that for budget year 2004 the Personal Service costs be divided as follows:
• EDA- 60%
• HRA-40%
Other common administrative expenses are proposed to be shared by the EDA and the
HRA. As in previous years,the HRA would make a one time transfer to the EDA in the
amount of$3,500 to cover approximately 30% of the shared expenses.
•
F:\SHRDOC\EDA\HRA\AGENDAWear2003\04BUDGET.DOC
Consider FI A Year 2004 Budget
August 25,2003
Page 2 of 2
Following is a line item analysis of the proposed year 2004 expenditures for the HRA:
• Personal Services $ 51,550
• Office Supplies (shared with EDA) $ 3,450
• Fuels and Lubricants (shared with EDA) $ 150
• Legal Fees (TIF,relocation, etc.) $ 12,000
• Other Professional Services $ 52,500
o Ehlers&Assoc. -Redevelopment Project Management
o HRGreen- Engineering Services
o Relocation Consultation Services
• Telephone (shared with EDA) $ 200
• Postage (public meeting notices, Q&A inserts) $ 1,000
• Travel,Conference&Schools (shared with EDA) $ 6,000
• Publishing (Downtown Project Communications) $ 8,200
• Insurance $ 200
• Dues&Subscriptions (shared with EDA) $ 1,150
• Transfer out to General Fund (support staff, etc) $ 8,700
• Transfer-Capital Outlay(sidewalk project-final payment) $ 67,650
• Transfer out to EDA (approx. 30% shared expenses) $ 3,500
Total HRA Year 2004 Proposed Expenditures: $205,300
Total HRA Year 2004 Proposed Revenue: $209,450
Attached to this memo you will find a Resolution establishing the tax levy for the Elk River
I-IRA and requests that the City Council levy such maximum amount for the authority for
the year 2004, as in previous years. The City must certify its proposed maximum levy,
including EDA and HRA levies,to Sherburne County annually in September.
Recommendation
Staff recommends that the HRA approve the year 2004 HRA Budget as presented,and
approve of the attached Resolution establishing the HRA tax levy for collection in year 2004.
•
BUDGET WORKSHEET
2004 Proposed Budget Date: 08/18/03
Time: 3:08pm
CITY OF ELK RIVER Page: 1
Prior Current Year
Year Original Amended Actual Thru Estimated
Month: 08/18/03 Actual Budget Budget August Total Requested Recommended Adopted
910 HRA
TAXES
3111 Current Ad Valorem Taxes 121,319 141,500 141,500 72,752 166,450
TAXES 121,319 141,500 141,500 72,752 166,450
GOVT INTERGOVERNMENTAL REVENUE
3322 Homestead Credit 9,288 0 0 0
INTERGOVERNMENTAL REVENUE 9,288 0 0 0
OREV OTHER REVENUE
3621 Interest Income 1,889 2,000 2,000 570 1,000
3629 Miscellaneous Revenue 15,000 0 0 0
3910 Sale of Equip/Assets 0 0 0 0
OTHER REVENUE 16,889 2,000 2,000 570 1,000
TRIN TRANSFERS IN
3947 Transfer In - TIF 0 0 0 0 42,000
TRANSFERS IN 0 0 0 0 42,000
Total Revenues 147,496 143,500 143,500 73,322 209,450
fix enditu
PERSONAL SERVICES
4101 Regular Pay 16,709 31,150 31,150 12,226 41,350
4102 Overtime Pay 0 0 0 0
4103 Part-time Pay 0 0 0 0
4104 PERA 914 1,700 1,700 732 2,300
•ICA 1,079 1,950 1,950 817 2,550
4107 Medicare 252 450 450 191 600
4108 Insurance 2,148 3,300 3,300 1,788 4,600
4109 Workers Comp 36 100 100 23 150
PERSONAL SERVICES 21,138 38,650 38,650 15,777 51,550
SUPP SUPPLIES
4201 Office Supplies 308 0 0 0
SUPPLIES 308 0 0 0
OSC OTHER SERVICES & CHARGES
4304 Legal Fees 1,224 1,750 1,750 4,965 12,000
4319 Other Professional Services 47,473 16,000 16,000 29,954 52,500
4321 Telephone 0 0 0 0
4322 Postage 420 0 0 77 1,000
4331 Travel, Conferences & Schools 91 0 0 33
4349 Advertising/Marketing 2,134 0 0 119
4359 Publishing 3,041 4,400 4,400 841 8,200
4361 Insurance 220 200 200 0 200
4433 Dues & Subscriptions 0 0 0 0
4440 Miscellaneous 0 0 0 0
OTHER SERVICES & CHARGES 54,603 22,350 22,350 35,989 73,900
CA CAPITAL OUTLAY
nd 0 0 0 0
45 Improvement Project Contract 0 0 0 0
CAPITAL OUTLAY 0 0 0 0
TROU TRANSFERS OUT
BUDGET WORKSHEET
2004 Proposed Budget Date: 08/18/03
Time: 3:08pm
CITY OF ELK RIVER Page: 2
Prior Current Year
Year Original Amended Actual Thru Estimated
Month: 08/18/03 Actual Budget Budget August Total Requested Recommended Adopted
th: 910 HRA
enditures
TROU TRANSFERS OUT
4720 Transfers 7,581 0 0 0
4721 Transfer-General Fund 1,500 1,500 1,500 0 8,700
4725 Transfer-Capital Outlay Resery 0 67,000 67,000 67,000 67,650
4735 Transfer-EDA 3,500 3,500 3,500 0 3,500
TRANSFERS OUT 12,581 72,000 72,000 67,000 79,850
Total Expenditures 88,630 133,000 133,000 118,766 205,300
HRA 58,866 10,500 10,500 -45,444 4,150
•
•
RESOLUTION 03-
• A RESOLUTION OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
A RESOLUTION ESTABLISHING THE TAX LEVY FOR THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY FOR COLLECTION IN
2004
WHEREAS, Minnesota Statute Section 469.033, Subdivision 6, authorizes a Housing and
Redevelopment Authority to levy an amount not to exceed .0131 percent of the
taxable market value of property within the city to be used for redevelopment
purposes; and,
WHEREAS, the Elk River Housing and Redevelopment Authority anticipates expenditures in
2004 for various redevelopment activities; and,
WHEREAS, the Housing and Redevelopment Authority will adopt and approve its budget before
a special tax can be levied.
NOW, THEREFORE, BE IT RESOLVED that the Housing and Redevelopment Authority
requests that the City Council of the City of Elk River,Minnesota,levy a special tax not to exceed
the statutory limit of.0131 percent of taxable market value of the city for the benefit of the
Authority to be used for purposes as provided in Minnesota Statutes.
Passed and adopted by the Elk River Housing and Redevelopment Authority this 25th day of
August, 2003.
Larry Toth,Chair
ATTEST:
Catherine Mehelich, Executive Director
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