7.2. EDSR 08-14-2000 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MEMORANDUM
40Item # 7.2
TO: Elk River EDA
FROM: Cathy Mehelich, Director of
Economic Development
DATE: August 10, 2000
SUBJECT: Year 2001 Budget
Attached to this memo you will find the following information regarding the
year 2001 EDA Budget:
• Budget worksheet — Page 1 & 2 — EDA Projected Revenue &
Expenses
• Budget worksheet — Page 3 Business Incubator Projected
Revenue & Expenses
There are really three separate budgets for the economic development
department including:
•
• Economic Development General Fund
• Economic Development Authority
• Housing and Redevelopment Authority
Dollars from all three sources has been, and continues to be necessary to
balance the department's budget. Revenues are estimated at a 5% growth in
market value for year 2001.
The only expenses proposed to be shared by all three categories include full
time and part time salaries and benefits to be divided among the three
categories as follows:
• General Fund - 20%
• EDA- 60%
• HRA - 20%
Common administrative expenses are proposed only 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 2001 to cover 25% of the expenses inAk
these line item categories.
IP
13065 Orono Parkway• P. 0. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420 • Fax (612)441-7425
Equal Opportunity Housing and Equal Opportunity Employment
• Following is a line item analysis of the proposed year 2001 expenditures for
the EDA.
• Personal Services $ 91,450
• Office Supplies — (HRA to pay 25%) $ 2,600
• Fuels & Lubricants — (HRA to pay 25%) $ 150
• Legal Fees — (HRA to pay 25%) $ 1,750
• Other Professional Services (Misc.) $ 4,000
• Telephone — (HRA to pay 25%) $ 1,000
• Postage — (HRA to pay 25%) $ 1,500
• Travel, Conference & Schools — (HRA to pay 25%) $ 5,000
• Advertising & Marketing $ 35,000
Per Adopted Industrial Marketing Plan
* Precision Machinery - $3,960
* Business & Industry Magazine - $6,162
* Twin Cities Business Monthly - $12,920
* Web Site Update - $1,958
* Ad/Layout Design Services - $4,000
* Misc. Marketing Materials & Logo Design - $5,000
* Marketing Events - $1,000
• Publishing—(HRA to pay 25%) $ 1,000
• Insurance $ 500
• Dues & Subscriptions — (HRA to pay 25%) $ 700
• • Miscellaneous — (HRA to pay 25%) $ 6,000
* Donation to Chamber of Commerce
• Transfer out to General Fund $ 3,000
Total EDA Year 2001 Proposed Expenditures $153,650
Total EDA Year 2001 Projected Revenues - $ 153,650
Business Incubator
The EDA business incubator budget includes total revenue from rent
expected in the amount of$12,000 in 2001. Current and proposed tenants
include SolarAttic, Vertical Publishing, and Integrated Power Solutions.
Proposed business incubator expenses include the following:
• Operating supplies $ 700
• Professional Services —Harlan Jacobs, consultant $ 6,000
• Advertising and Marketing $ 5,000
• Cleaning services $ 500
• Building rent—Larry Hickman, landlord $25,000
• Buildings and Structures —potential minor
• Leasehold improvements $ 5,000
• Total Business Incubator Expenditures $42,200
Total Business Incubator Revenues $12,000
The approximate $30,200 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 2001 EDA Budget and Business
Incubator Budget as presented.
•
•
BUDGET WORKSHEET 44E /
Date: 08/07/00
Time: 3:20pm
City of Elk River Page: 1
Prior Current Year
Year Original Amended Actual Thru Estimated Pee)/
Mo 07/31/00 Actual Budget Budget July Total Requested Recommended Adopted
920 EDA
Revenues
3111 Current Ad Valorem Taxes 116,954 123,750 123,750 64,368 142,600 131,900
TAXES 116,954 123,750 123,750 64,368 142,600 131,900
GOVT INTERGOVERNMENTAL REVENUE
3322 Homestead Credit 12,125 12,050 12,050 6,036 12,050
INTERGOVERNMENTAL REVENUE 12,125 12,050 12,050 6,036 12,050
OREV OTHER REVENUE
3621 Interest Income 4,702 3,050 3,050 2,375 3,100 3,200
3629 Miscellaneous Revenue 0 0 0 0
OTHER REVENUE 4,702 3,050 3,050 2,375 3,100 3,200
TRIN TRANSFERS IN
3949 Transfer-HRA 0 6,300 6,300 0 6,500 6,500
TRANSFERS IN 0 6,300 6,300 0 6,500 6,500 ^d
Total Revenues 133,781 145,150 145,150 72,779 152,200 153,650 E�[.i�7
Ex enditures
wept&roup':-660 HOUSING & ECONOMIC DEVELOPMENT
Dept: 620.621 ECONOMIC DEVELOPMENT
PS PERSONAL SERVICES
•9ular Pay 44,073 54,500 54,500 13,864 51,550 63,000
4102 Overtime Pay 178 0 0 0
4103 Part-time Pay 12,600 13,100 13,100 4,731 12,600 12,600
4104 PERA 2,250 3,200 3,200 676 3,050 3,600
4105 FICA 3,435 4,100 4,100 1,269 4,000 4,700
4107 Medicare 803 1,000 1,000 271 950 1,150
4108 Insurance 3,198 4,650 4,650 1,487 5,050 6,050
4109 Workers Comp 188 550 550 240 300 350
PERSONAL SERVICES 66,725 81,100 81,100 22,538 77,500 91,450
SUPP SUPPLIES
4201 Office Supplies 1,578 1,200 1,200 516 2,100 2,600
4212 Fuels & Lubs 112 100 100 85 150 150
SUPPLIES 1,690 1,300 1,300 601 2,250 2,750
OSC OTHER SERVICES & CHARGES
4304 Legal Fees 1,019 4,500 4,500 270 4,500 1,750
4319 Other Professional Services 7,222 9,000 9,000 17,767 5,000 4,000
4321 Telephone 972 1,900 1,900 313 1,000 1,000
4322 Postage 511 1,100 1,100 168 1,500 1,500
ravel, Conferences & Schools 3,898 4,500 4,500 3,921 5,000 5,000
4 dvertising/Marketing 22,834 29,000 29,000 12,730 35,000 35,000
4359 Publishing 21 1,000 1,000 178 1,000 1,000
BUDGET WORKSHEET /4?ei6. 2
Date: 08/07/00
Time: 3:20pm
City of Elk River Page: 2
Prior Current Year Y-*/i'e
Year Original Amended Actual Thru Estimated 2-00/
Mo 07/31/00 Actual Budget Budget July Total Requested Recommended Adopted
F 920 EDA
Ex enditures C
Dept Group: 600 HOUSING & ECONOMIC DEVELOPMENT
Dept: 620.621 ECONOMIC DEVELOPMENT
OSC OTHER SERVICES 6 CHARGES
4361 Insurance 356 500 500 356 500 500
4433 Dues & Subscriptions 550 700 700 738 700 700
4440 Miscellaneous 16,378 6,000 6,000 6,032 6,000 6,000
OTHER SERVICES & CHARGES 53,761 58,200 58,200 42,473 60,200 56,450
CAP CAPITAL OUTLAY
4560 Equipment 2,178 2,500 2,500 0
CAPITAL OUTLAY 2,178 2,500 2,500 0
TROU TRANSFERS OUT
4721 Transfer-General Fund 2,000 2,000 2,000 0 2,000 3,000
TRANSFERS OUT 2,000 2,000 2,000 0 2,000 3,000
ECONOMIC DEVELOPMENT 126,354 195,100 145,100 65,612 141,950 153,650
4..0'0 ,,
_A- ♦"Ai
HOUSING & ECONOMIC DEVELOPMENT 126,354 145,100 145,100 65,612 141,950 153,650
Total Expenditures 126,354 145,100 145,100 65,612 141,950 153,650
•EDA 7,427 50 50 7,167 10,250
•
BUDGET WORKSHEET
Date: 08/07/00
City of Elk River
�/1/ �� Time: 1:53pm c
gOI : 1
Prior Current YearYear Original Amended Actual Thru Estimated
MM007/31/00 Actual Budget Budget July Total Requested Recommended Adopted
F . 920 EDA
Revenues
De. - -• 600 }MUM; k FCONOMIC DEVELOPMENT
••..• . $ . . INCUBATOR
OREV OTH:1 'EVENUE
3629 Miscellaneous Revenue 10,124 10,000 10,000 1,330 12,000 12,000
OTHER REVENUE 10,124 10,000 10,000 1,330 12,000 12,000
TRIN TRANSFERS IN
3921 Transfers 24,201 0 0 0
TRANSFERS IN 24,201 0 0 0
BUSINESS INCUBATOR 34,325 10,000 10,000 1,330 12,000 12,000
HOUSING & ECONOMIC DEVELOPMENT 34,325 10,000 10,000 1,330 12,000 12,000
Total Revenues 34,325 10,000 10,000 1,330 12,000 12,000 / jv7
Expenditures &Num
Dept Group: 0 HOUSING 6 ECONOMIC DEVELOPMENT
Dept: 620.623 BUSINESS INCUBATOR
SUPP SUPPLIES
4219 Operating Supplies 303 500 500 422 700 700
SUPPLIES 303 500 500 422 700 700
OSC OTHER SERVICES & CHARGES
ger Professional ServicesIllik 6,374 6,000 6,000 3,500 6,000 6,000
4349 Advertising/Marketing 571 5,000 5,000 0 5,000 5,000
4405 Cleaning Services 0 500 500 341 500 500
4412 Building Rent 19,776 21,000 21,000 11,536 25,000 25,000
OTHER SERVICES & CHARGES 26,721 32,500 32,500 15,377 36,500 36,500
CAP CAPITAL OUTLAY
4520 Buildings & Structures 7,301 5,000 5,000 0 5,000 5,000
CAPITAL OUTLAY 7,301 5,000 5,000 0 5,000 5,000 y�
BUSINESS INCUBATOR 34,325 38,000 38,000 15,799 42,200 42,200 C
joal i,o,
HOUSING & ECONOMIC DEVELOPMENT 34,325 38,000 38,000 15,799 42,200 42,200
Total Expenditures 34,325 38,000 38,000 15,799 42,200 42,200
EDA 0 -28,000 -28,000 -14,469 -30,200 -30,200