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6.2. EDSR 08-13-2001 • Elk Item # 6.2. River MEMORANDUM TO: Economic Development Authority FROM: Catherine Mehelich, Director of Economic Development DATE: August 13, 2001 SUBJECT: Year 2002 Budget Attachments *Budget worksheet—Page 1 &2—EDA Projected Revenue&Expenses *Budget worksheet—Page 3—Business Incubator Projected Revenue&Expenses Summary The Economic Development Department consists of three separate budgets including: * Economic Development—General Fund 110 * Economic Development Authority * Housing&Redevelopment Authority Dollars from all three sources has been, and continues to be necessary to balance the department's budget. Revenues are estimated at an 8% growth in market value for year 2002. The only expenses proposed to be shared by all three categories include full time and part time salaries and benefits—to be divided as follows: * General Fund—20% * EDA—60% * HRA—20% Despite the recent resignation of the Assistant Director of Economic Development, staff recommends the funding for the full time position be continued. Other common administrative expenses are proposed to be shared by the EDA (75%) and the HRA (25%). As in previous years, the HRA makes a one time transfer to the EDA at the end of year 2002 to cover 25% of the expenses in these line item categories. Following is a line item analysis of the proposed year 2002 expenditures for the EDA: Personal Services $ 93,650 Office Supplies — (HRA to pay 25%) $ 3,000 Fuels &Lubricants— (HRA to pay 25%) $ 150 Year 2002 EDA Budget August 13,2001 Page 2 • Legal Fees $ 1,750 Other Professional Services $ 9,000 * Update Strategic Economic Development Plan& Industrial Marketing Plan $6,500 * Ehlers &Assoc. Finance Advisors $2,500 Telephone— (HRA to pay 25%) $ 200 Postage— (HRA to pay 25%) $ 1,500 Travel, Conference& Schools— (HRA to pay 25%) $ 5,000 Advertising/Marketing—per Industrial Marketing Plan $ 40,000 *Advertising Campaign&Web Site Design * Special Event&East/West Business Park Signage Publishing— (HRA to pay 25%) $ 1,000 Insurance $ 500 Dues &Subscriptions— (HRA to pay 25%) $ 700 Miscellaneous $ 6,000 *Donation to Chamber of Commerce Transfer out to General Fund $ 3,000 Total EDA Year 2002 Proposed Expenditures $165,450 Total EDA Year 2002 Projected Revenues $165,450 • Business Incubator The EDA business incubator budget includes total revenue from rent expected in the amount of$7,000 in 2002. Current tenants include Solar Attic (April 2002) and Vertical Publishing. Proposed business incubator expenses include the following: Operating supplies $ 2,200 Other Professional Services (Harlan Jacobs) $ 6,000 Advertising/Marketing $ 2,500 Cleaning Services $ 500 Building Rent $ 14,000 Total Business Incubator Expenditures $ 25,200 Total Business Incubator Revenues $ 7,000 The approximate $18,200 shortfall in this budget is proposed, as it has been in the past, to be funded through the use of funds generated by Tescom Corporation's loan repayment. Recommendation Staff recommends the EDA approve the Year 2002 EDA Budget and Business Incubator Budget as presented. • BUDGET WORKSHEET ECONOMIC DEVELOPMENT AUTHORITY Date: 08/09/01 Time: 3:51pm CITY OF ELK RIVER Page: 1 Prior Current Year Y-'11 Year Original Amended Actual Thru Estimated 2.032 07/31/01 Actual Budget Budget July Total Requested Recommended Adopted Fu : 920 EDA Revenues TAX TAXES 3111 Current Ad Valorem Taxes 126,653 131,900 131,900 74,665 153,950 TAXES 126,653 131,900 131,900 74,665 153,950 GOVT INTERGOVERNMENTAL REVENUE 3322 Homestead Credit 12,129 12,050 12,050 6,035 INTERGOVERNMENTAL REVENUE 12,129 12,050 12,050 6,035 OREV OTHER REVENUE 3621 Interest Income 4,662 3,200 3,200 2,236 3,000 3629 Miscellaneous Revenue 2 0 0 2,500 5,000 OTHER REVENUE 4,664 3,200 3,200 4,736 8,000 TRIN TRANSFERS IN 3949 Transfer-HRA 6,300 6,500 6,500 0 6,500 3,500 TRANSFERS IN 6,300 6,500 6,500 0 6,500 3,500 ��..��jj' Total Revenues 149,746 153,650 153,650 85,936 6,500 165,450 //GL_Y"1 IQE'J IW _ Expenditures Dep roup: 600 HOUSING 6 ECONOMIC DEVELOPMENT Dept: 620.621 ECONOMIC DEVELOPMENT PS PERSONAL SERVICES • ular Pay 39,896 63,000 63,000 18,136 65,250 65,250 4102 Overtime Pay 99 0 0 0 4103 Part-time Pay 12,358 12,600 12,600 5,077 12,600 12,600 4104 PERA 1,941 3,600 3,600 1,029 3,750 3,750 4105 FICA 3,257 4,700 4,700 1,598 4,800 9,800 4107 Medicare 763 1,150 1,150 362 1,100 1,100 9108 Insurance 3,282 6,050 6,050 1,859 5,800 5,800 4109 Workers Comp 68 350 350 39 350 350 PERSONAL SERVICES 61,664 91,450 91,450 28,050 93,650 93,650 SUPP SUPPLIES 4201 Office Supplies 1,664 2,600 2,600 961 3,500 3,000 4212 Fuels 6 Lubs 180 150 150 44 150 150 SUPPLIES 1,844 2,750 2,750 1,005 3,650 3,150 OSC OTHER SERVICES 6 CHARGES 4304 Legal Fees 4,033 1,750 1,750 0 1,750 1,750 4319 Other Professional Services 36,928 4,000 4,000 152 6,500 9,000 4321 Telephone 596 1,000 1,000 73 200 4322 Postage 541 1,500 1,500 274 1,500 1,500 111111 4 ave1, Conferences 6 Schools 6,931 5,000 5,000 2,832 5,000 5,000 4349 Advertising/Marketing 26,855 35,000 35,000 21,247 35,000 40,000 4359 Publishing 347 1,000 1,000 218 1,000 1,000 peiGE- 2 BUDGET WORKSHEET ECONOMIC DEVELOPMENT AUTHORITY Date: 08/09/01 Time: 3:51pm CITY OF ELK RIVER Page: 2 Prior Current Year /1C-11E Year Original Amended Actual Thru Estimated 200a 07/31/01 Actual Budget Budget July Total Requested Recommended Adopted Fund: 920 EDA �� es (�ll(/A./C i •• Dept Group: 600 HOUSING & ECONOMIC DEVELOPMENT Dept: 620.621 ECONOMIC DEVELOPMENT OSC OTHER SERVICES & CHARGES 4361 Insurance 428 500 500 181 500 500 4433 Dues & Subscriptions 1,524 700 700 330 700 700 4440 Miscellaneous 15,075 6,000 6,000 6,062 6,000 6,000 OTHER SERVICES & CHARGES 93,258 56,450 56,450 31,369 57,950 65,650 CAP CAPITAL OUTLAY 4560 Equipment 4,794 0 0 0 CAPITAL OUTLAY 4,794 0 0 0 TROU TRANSFERS OUT 4721 Transfer-General Fund 2,000 3,000 3,000 0 3,000 3,000 TRANSFERS OUT 2,000 3,000 3,000 0 3,000 3,000 ECONOMIC DEVELOPMENT 163,560 153,650 153,650 60,424 158,250 165,450 HOUSING & ECONOMIC DEVELOPMENT 163,560 153,650 153,650 60,424 158,250 165,450 _ .--..4111-- Total Expenditures 163,560 153,650 153,650 60,424 158,250 165,450 PROPa .b SCP.ZNSES 1111/1EDA -13,814 0 0 25,012 -151,750 1110 PAC73 BUDGET WORKSHEET BUSINESS INCUBATOR Date: 08/10/01 Time: 8:05am CITY OF ELK RIVER /► Page: 1 Prior Current Year 414 Year Original Amended Actual Thru Estimated 21002 111111f7/31/01 Actual Budget Budget July Total Requested Recommended Adopted Fun 920 EDA Revenues Dept Gro •• 600 HOU ECONOMIC DEVELOPMENT ept: 62 .623 BUSINESS INCUBATOR OREV OTHER REVENUE 3629 Miscellaneous Revenue-REArr 13,567 12,000 12,000 0,653 12,000 7,000 OTHER REVENUE 13,567 12,000 12,000 4,653 12,000 7,000 TRIN TRANSFERS IN 3921 Transfers liSCt)/4 0 30,200 30,200 0 25,200 18,200 /4Ai ,e4y TRANSFERS IN 0 30,200 30,200 0 25,200 18,200 BUSINESS INCUBATOR 13,567 42,200 42,200 4,653 37,200 25,200 HOUSING & ECONOMIC DEVELOPMENT 13,567 42,200 42,200 4,653 37,200 25,200 Total Revenues 13,567 42,200 42,200 4,653 37,200 25,200D RaUDUUE. Expenditures _ Dept Group: 600 HOUSING & ECONOMIC DEVELOPMENT Dept: 620.623 BUSINESS INCUBATOR SUPP SUPPLIES 4219 Operating Supplies 3,357 700 700 234 3,200 2,200 SUPPLIES i/ 3,357 700 700 234 3,200 2,200 OSher ProfIssS & lHServS 9 her Professional Services 6,671 6,000 6,000 3,500 6,000 6,000 4349 Advertising/Marketing 0 5,000 5,000 0 2,500 2,500 4405 Cleaning Services 341 500 500 0 500 500 4412 Building Rent 23,237 25,000 25,000 13,571 25,000 14,000 OTHER SERVICES & CHARGES 30,249 36,500 36,500 17,071 34,000 23,000 CAP CAPITAL OUTLAY 4520 Buildings & Structures 0 5,000 5,000 0 CAPITAL OUTLAY 0 5,000 5,000 0 BUSINESS INCUBATOR 33,606 42,200 42,200 17,305 37,200 25,200 HOUSING & ECONOMIC DEVELOPMENT 33,606 42,200 42,200 17,305 37,200 25,200 Total Expenditures 33,606 42,200 42,200 17,305 37,200 25,200 �/Veu r©e EDA -20,039 0 0 -12,652 •