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3. EDSR 07-15-2019 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To Economic Development Authority Item Number 3.1 Agenda Section General Business Meeting Date July 15, 2019 Prepared by Amanda Othoudt, EDD Item Description 2020 EDA Budget & Budget Goals Reviewed by Lori Ziemer, Finance Director Reviewed by Cal Portner, City Administrator Action Requested Information presented for discussion only. Action is to be taken at the August 19, 2019, EDA meeting. Background/Discussion As part of the budget process, a budget workshop is advisable to allow for informal discussions regarding the goals and objectives, major projects, and other items influencing the EDA budget. Staff prepared a draft budget to address several of the goals outlined in the strategic plan, downtown plan, the city’s vision worksheet, and through recent EDA discussion. In order to meet the requirements of the EDA Bylaws, the EDA must approve the budget at their August 19, 2019, regular meeting, and make recommendation to the City Council on September 3, 2019. As drafted, the proposed expenditures are $339,950. Staff is proposing a slight increase in expenditures for office supplies, conferences and schools. Staff is proposing a decrease in fuels, legal, telephone, advertising and marketing, and publishing. Staff is proposing to allocate $45,000 towards the wetland credit bank which is a shared initiative between the EDA and the Environmental divisions. Allocating $3,000 to the Initiative Foundation and allocating $5,000 towards the Public Art Initiative. The EDA levy options are as follows: 1) A Balanced Rate 2) 0.01813% Maximum Rate All levy options are applied against the Estimated Market Value that will be obtained from Sherburne County. In addition to the tax levy, we also calculate interest income of $5,000 and $3,500 transfer from the HRA for supplies and shared costs. Financial Impact None Attachments  EDA 2020 Budget Goals  EDA Budget Worksheet Division: Completed by: Date: Performance Measure 2018 Actual 2019 Estimated 2020 Projected Conduct BR&E Visits 24 24 24 Facilitate 4 Site Visits 2 3 4 Work with Engineering and Communication staff to proactively work with the business community impacted by the 169 Redefine Project and assist them with relocation within the city if necessary. 169 Redefine Project Develop and expand a microloan program to encourage 50 new green collar jobs by 2024 Increase the number of companies actively manufacturing products or components of products directly or indirectly used in renewable energy or energy efficiency by 2024 Work with ERMU and Environmental Departments Work with ERMU and Environmental Departments Celebrate and grow our existing businesses Conduct Business Retention and Expansion visits to local businesses Division Performance Measures & Goals for 2020 Strategic Recruiting: Attend targeted industry (data centers, manufacturing, energy, medical device technology) trade shows, leverage opportunities with local companies. Identify key decision makers, provide FAM tours, coordinate development meetings with city/county/state. Partner with MN Marketing Partnership, Sherburne County and ERMU. Promote available properties on MNCAR. Attend Annual Site Selector Guild Conference. Continue to fund the wetland bank to facilitate new development where wetlands impede growth. Maximize and leverage DEED monies, Initiative Foundation, Sherburne County Revolving Loan Fund and other financial tools and incentives Goal Objective/TaskDivision Goal Market the City of Elk River and gain positive exposure for the city Grow and maintain an inventory of private and public properties available for future development Maintain financial incentives to enhance economic development Economic Development Amanda Othoudt May 23, 2019 7/11/2019 Dept:Economic Development Authority Acct.2016 2017 2018 No.Actual Actual Actual Detail Total Detail Total REVENUES: 3111 Property Taxes 342,574 358,578 375,631 325,100 331,450 3322 MV Credit 195 202 196 - - 3621 Interest Income 3,420 3,792 8,376 4,000 5,000 3629 Miscellaneous Revenue 333 27,992 - - - 3949 Transfers In - HRA 3,500 3,500 3,500 3,500 3,500 TOTAL EDA REVENUES 350,022 394,064 387,703 332,600 339,950 EXPENDITURES: PERSONAL SERVICES 4101 Regular Pay 84,571 89,871 97,777 101,850 106,550 4103 Part-time Pay 12,600 12,600 12,150 12,600 12,600 4104 PERA 6,535 6,830 7,513 7,750 8,100 4105 FICA 5,448 5,747 6,151 7,000 7,300 4107 Medicare 1,318 1,390 1,490 1,650 1,750 4108 Insurance 10,735 11,691 15,439 16,200 16,750 4109 Workers Comp 398 406 473 550 500 TOTAL PERSONAL SERVICES 121,605 128,535 140,993 147,600 153,550 SUPPLIES 4201 Office Supplies 4,310 1,307 1,248 2,100 2,600 Office supplies 1,100 1,100 Computer Software/Licensing (MNCAR, Sketchup, etc.)1,000 200 Computer replacement (Colleen)1,300 4212 Fuels & Lubes 120 45 32 200 50 Unleaded gas 200 50 TOTAL SUPPLIES 4,430 1,352 1,280 2,300 2,650 OTHER SERVICES & CHARGES 4304 Legal Fees 8,951 6,525 2,450 7,000 3,000 Misc.7,000 3,000 4319 Other Professional Services 2,000 - - - 10,000 ED Strategic Plan 10,000 4321 Telephone 922 1,211 963 1,000 900 Cell phone reimb. (Colleen - $30/mo)400 400 Cell phone w/hotspot (Amanda - $40/mo)600 500 4322 Postage 278 302 642 350 650 Marketing mailings 350 650 4331 Conferences/Schools 18,632 10,319 13,647 11,500 12,300 EDAM 1,300 1,000 Annual IEDC Conference 2,400 Chamber Events 175 150 MREJ 375 400 MNCREW 100 CMMA 100 100 SLUC - Springsted 400 400 Ehlers - Site Selector Conference 2,550 2,500 Economix Spring or Fall 3,000 2,150 Misc. training - IEDC Certification?200 1,200 MAEDC 3,400 1,900 4349 Advertising/Marketing 72,945 69,286 71,525 71,850 59,500 Community Profiles 1,500 750 2020 BUDGET 2020 BUDGET DETAIL SHEET Explanation/Detail of Supplies or Services 2019 BUDGET 7/11/2019 Dept:Economic Development Authority Acct.2016 2017 2018 No.Actual Actual Actual Detail Total Detail Total 2020 BUDGETExplanation/Detail of Supplies or Services 2019 BUDGET Advertising (Production & Publication)22,450 15,000 Direct Mailings - Mfg Week 200 150 Real Estate Signs - 4,000 Promo items 5,000 2,500 Special events 2,150 3,150 Sponsorships (City/EDA)10,500 9,850 Catalyst 4,100 4,100 Trade Shows & Lead Generation (includes travel)16,050 11,900 EDA Website (EDA share - 1/2 EDA & 1/2 HRA)5,700 5,700 Lead Forensics (Shared by EDA/HRA)1,200 1,200 Promotion & Awards 1,100 900 Powered by Nature sponsorships 1,600 - Holiday card marketing 300 300 4359 Publishing 258 - 168 350 200 Public notices, etc 350 200 4361 Insurance 87 63 146 100 150 Auto insurance 100 150 4433 Dues/Subscriptions 4,062 4,083 4,986 4,550 4,550 EDAM 500 500 Chamber 500 500 CMMA 250 250 MNCAR 300 300 IEDC 700 650 Finance and Commerce 300 300 Rotary 250 300 MN Marketing Partnership 700 700 MAEDC 300 300 MPLS/ST Paul Business Journal 300 300 Greater MSP/Salesforce License 450 450 4440 Miscellaneous 88,900 4,776 3,028 48,000 53,000 Initiative Foundation 3,000 3,000 Wetland credit bank 45,000 45,000 Public Art 5,000 TOTAL OTHER SERVICES & CHARGES 197,035 96,565 97,555 144,700 144,250 TRANSFERS OUT 38,000 39,500 4720 Jobs Incentive Fund - 66,000 - 4721 General Fund 34,800 34,800 36,600 38,000 39,500 TOTAL EDA EXPENDITURES 357,870 327,252 276,428 332,600 339,950 REVENUES OVER/(UNDER) EXPENDITURES (7,848) 66,812 111,275 - - ^