8.0. EDSR 08-12-1996 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
Item 8.
MEMORANDUM
TO: Economic Development Authority
ROM: Paul T. Steinman, Director of Economic
Development
DATE: August 8, 1996
SUBJECT: 1997 EDA Budget and Levy
Introduction
Based on a maximum statutory levy of.01813 percent of the taxable market
• value,it is estimated the EDA will have approximate revenues of$94,500 in
1997. The proposed 1907 EDA budget is outlined below and includes a
summary of the following line items:
Personal Services - $46,600
This proposed expenditure includes the salaries of the EDA
Commissioners ($150/month/Commissioner) plus 50 percent of the
economic development director's salary, pension, and benefits. In
addition, one-fourth of an administrative support position (plus
pension and benefits) is funded through the EDA in addition to
recording secretary time.
Supplies and Charges - $800
$800 is attributable to office supplies to the EDA in 1997.
Other Services and Charges - $45,350
$1,000 is allocated for an economic development consultant in 1997.
$1,000 has been allocated for legal expenses.
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
$17,000 is allocated to support various advertising activities of the
4110 EDA in 1997.. These activities include expenditures in regional and
state publications such as Corporate Report, Minnesota Real Estate
Journal, Business Media, and Twin Cities Business Monthly. Specialty
ads are also a part of this budget which include the Star News,and
other publications as determined appropriate.
$2,000 is allocated to general marketing expenses in 1997. Typically
these costs involve updating the brochure inserts and printing costs
associated with that issue.
$6,000 is allocated to printing/newsletter project.
$4,500 is allocated to postage. A majority of this amount is spent
mailing the economic development newsletters.
$800 is allocated for telephone expenses.
$6,000 is allocated to the Elk River Area Chamber of Commerce.
$6,550 is allocated for development activities. Proposed expenditures
include such things as appraisals, feasibility studies, and other
• miscellaneous activities related directly to development projects.
$500 is allocated for insurance.
Transfers Out $1,000
$1,000 is allocated as a transfer to the city's general fund which covers
administrative expense time involved in EDA projects, include
financial updates, and updates on the micro loan fund.
Action Requested
Staff is recommending at this time the EDA approve the 1997 EDA budget in
the amount of$93,750.
Staff is also recommending that the EDA adopt Resolution 96- requesting
that the City of Elk River levy a tax in an amount not to exceed .01813
percent of the taxable market value in the city to be used for economic
development purposes by the EDA. Such resolution is attached to this memo.
• s:eda\meetings\97bdgt.doc
• RESOLUTION 96 -
A RESOLUTION OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
A RESOLUTION ESTABLISHING THE TAX LEVY FOR THE ELK
RIVER ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF ELK RIVER, MINNESOTA
WHEREAS, Minnesota Statutes, Section 469.107, Subdivision 1,
authorizes the Economic Development Authority to levy an
amount not to exceed .01813 percent of the taxable market
value in the city to fund the Authority's anticipated budget
needs for the fiscal year 1997; and,
WHEREAS, the Elk River Economic Development Authority has adopted
and approved its budget and will forward such to the City of
Elk River pursuant to Minnesota Statutes, Section 469.100,
Subdivision 2.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
• Authority in and for the City of Elk River, Minnesota, that it hereby requests
the City Council of the City of Elk River to levy a tax in the amount of.01813
percent of the taxable market value in the city for the year 1997 for the
benefit of the Authority to be used for Economic Development Authority
purposes as provided by the Statute.
Passed and adopted by the Elk River Economic Development Authority this
12th day of August, 1996.
Jeffrey A. Gongoll, President
ATTEST:
Paul T. Steinman, Executive Director
•
ECONOMIC DEVELOPMENT AUTHORITY
1994 1995 1996 1997
ACTUAL ACTUAL ADOPTED PROPOSED
PERSONAL SERVICES $ 33,659 $ 40,144 $ 42,850 $ 46,600
SUPPLIES 819 1,159 800 800
OTHER SERVICES & CHARGES 105,371 39,961 45,350 45,350
TRANSFERS OUT 1,000 1,000 1,000 1,000
TOTAL $ 140,849 $ 82,264 $ 90,000 $ 93,750
EXPENDITURE ANALYSIS
PERSONAL SERVICES
Regular Salaries $ 25,500
Part Time Salaries 12,600
Over Time 400
Employee Pensions (50%) 4,000
Employee Insurance (50%) 4,100 $ 46,600
SUPPLIES
Office Supplies fi 800 800
• OTHER SERVICES & CHARGES
Economic Development Consultant 1,000
Legal 1,000
Advertising 17,000
Marketing 2,000
Printing/Newsletter 6,000
Postage 4,500
Telephone 800
Miscellaneous(Chamber of Commerce) 6,000
Development Activities 6,550
Insurance 500 45,350
TRANSFERS OUT
General Fund 1,000 1,000
$ 93,750
•
STATEMENT OF FINANCIAL ACTIVITY
FOR THE EDA,MICRO AND DTED LOAN FUNDS
• FOR THE PERIOD JULY 31,1996
ECONOMIC DEVELOPMENT AUTHORITY
1996 Month to Year to
Budget Date Date
Cash Balance $ 129,925
Revenues
Property Tax 73,840 42,495 44,196
HACA 12,060 5,738 5,738
Refunds&Reimb. - - 1,054
Interest Income - 233 1,695
Total Revenues 85,900 48,466 52,683
Expenditures
Personal Services 42,850 37 111
Supplies 800 357 661
Other Services&Charges 45,350 14,859 39,269
Capital Outlay - 2,316 2,316
Transfers 1,000 - -
Total Expenditures 90,000 17,569 42,357
IIIMICRO LOAN FUND DTED LOAN FUND
Month to Year to Month to Year to
Date Date Date Date
Cash Balance $ 175,962 $67,647
Revenues
Application Fees 500 500 - -
Interest Income 1,757 223 - -
Loan Payments 10,325 87,610 2,591 18,137
Total Revenues 12,582 88,333 2,591 18,137
Expenditures
Loans - 37,500 - -
Legal Services - 715 - -
Total Expenditures - 38,215 - -
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Status of Micro Loans as of July 31:
Business Current Business Current
Alltool Grant Y Pomeroy Tool Y
Roma Tool Grant Y Designing Women Y
Second Generation Y Tescom Y
Indy Lube Y Larose Y
Beaudry Y Water Laboratories Y
• R&D Sales Y E R Automall Y
Mork Clinic Y T J Properties Y
Americlnn Paid in full Galli-Vaulth Hearth Y
Carpe Kairos LLC Y Internet 5 Y