2.0. EDSR 08-16-2021 �__ty
Elk
River - Request for Action
To Item Number
Economic Development Authority 2.0
Agenda Section Meeting Date Prepared by
Budget Discussion August 16, 2021 Brent O'Neil, Economic Development Director
Item Description Reviewed by
Discuss 2022 EDA Budget&Budget Goals Lori Ziemer,Finance Director
Reviewed by
Cal Portner, City Administrator
Action Requested
Review and provide direction for inclusion in the September 20, 2021,Preliminary Levy.
Background/Discussion
The draft budget addresses several of the goals outlined in the new EDA Strategic Plan, anticipated updates
to the Comprehensive Plan,the city's vision worksheet, and EDA discussions. EDA bylaws require budget
approval and a Council recommendation at the September meeting for inclusion into the preliminary levy.
The proposed 2022 budget is similar to 2021 with total expenditures proposed at $371,650, a net increase of
$2,000 year-over-year. With projected interest income of$5,000 and a transfer of$3,500 from the HRA,a
levy of$363,150 would balance revenues and expenses. This levy amount is identical to 2021; no increase is
proposed by this draft budget.
Financial Impact
N/A
Mission/Policy/Goal
EDA Bylaws require the Executive Director to prepare a budget and present it to the Commissioners of the
Authority for consideration in August of each year.
Attachments
■ Draft EDA 2022 Budget Worksheet
■ Draft EDA 2022 Goals
The Elk River Vision
A welcoming community with revolutionary and spirted resourcefulness, exceptional service,and commum_q
engagement that encourages and inspires prosperity P U w E A E U 8 T
w'iAURE
2022 BUDGET DETAIL
Dept: Economic Development Authority
Acct. Explanation/Detail of Supplies or Services 2018 2019 2020 2021 2022
No. Actual Actual Actual BUDGET BUDGET
REVENUES:
3111 Property Taxes 375,631 331,581 334,277 363,150 363,150
3322 MV Credit 196 171 160 - -
3621 Interest Income 8,376 16,511 4,579 3,000 5,000
3629 Miscellaneous Revenue - - 4,200 - -
3949 Transfers In-HRA 3,500 3,500 37500 3,500 3,500
TOTAL EDA REVENUES 387,703 3519763 346,716 369,650 371,650
EXPENDITURES:
PERSONAL SERVICES
4101 Regular Pay 971777 100,800 102,259 112,150 113,100
4103 Part-time Pay 12,150 11,625 127600 12,600 12,600
4104 P E RA 77513 77710 6,955 800 81650
4105 FICA 6,151 6,238 6,515 77650 7700
4107 Medicare 1,490 1,502 1,576 1,800 1,800
4108 Insurance 15,439 15,955 14725 1700 18,500
4109 Workers Comp 473 453 438 500 500
TOTAL PERSONAL SERVICES 1409993 1449283 145,068 160,900 162,850
SUPPLIES
4201 Office Supplies 1,248 1,628 1,522 1,050 3,500
Office supplies 700 3,000
Computer Software/Licensing(Sketchup,etc.) 350 500
4212 Fuels&Lubes 32 211 - 50 50
Unleaded gas 50 50
TOTAL SUPPLIES 1,280 19839 1,522 1,100 3,550
SERVICES&CHARGES
4304 Legal Fees 2450 107613 87715 6,000 8,000
Misc. 6,000 8,000
4319 Other Professional Services - - 50,846 107000 10,000
ED Strategic Plan 10,000 -
Financial and Incentives Consulting 5,000
Process mapping 5,000
4321 Telephone 963 1,693 742 1,000 17000
Cell phone(2) 1,000 1,000
4322 Postage 642 417 93 1,000 500
Marketing mailings 1,000 500
4331 Conferences/Schools 13,647 117278 47461 14,950 14,800
EDAM 1,800 1,800
Annual IEDC Conference2,400 2,400
Chamber Events 150 150
MREJ 400 300
1 MNCREW 100 50
CMMA 100 100
Baker Tilly Symposium 400 400
Site Selector Conference 31150 3,150
Economix Spring and/or Fall 2,250 2,250
Misc.training-IEDC Certification 1,200 1,200
8/13/2021
Dept: Economic Development Authority
Acct. Explanation/Detail of Supplies or Services 2018 2019 2020 2021 2022
No. Actual Actual Actual BUDGET BUDGET
MAEDC(BP and Competitive Conf.) 3,000 3,000
4349 Advertising/Marketing 71,525 71,194 60,516 75,550 74,850
Community Profiles 750 1,000
Advertising(Production&Publication) 121850 12,850
Direct Mailings-Mfg Week 150 200
Promo items 2,500 2,500
Special events 3,250 3,250
Sponsorships(City/EDA) 91950 91950
Catalyst 4,100 4,500
Trade Shows&Lead Generation (includes travel) 11,900 11,900
EDA Website(EDA share- 1/2 EDA& 1/2 HRA) 5700 5700
Lead Forensics(Shared by EDA/HRA) 11200 1,200
Promotion&Awards 900 1,500
Holiday card marketing 300 300
Together Elk River Campaign 10,000 10,000
Energy City Program(rebates) 101000 101000
VR/Drone 2,000 -
4359 Publishing 168 136 656 250 250
Public notices,etc 250 250
4361 Insurance 146 210 212 200 200
Auto insurance 200 200
4433 Dues/Subscriptions 4,986 4779 4,244 41700 4,650
EDAM 500 450
Chamber 550 550
CMMA 300 300
M N CAR 300 300
I E D C 650 650
Finance and Commerce 300 300
Rotary 300 300
MN Marketing Partnership 700 700
MAEDC 300 300
MPLS/ST Paul Business Journal 300 300
GROW MN/Salesforce License 500 500
4440 Miscellaneous 3,028 3,092 8,633 53,000 48,000
Initiative Foundation 3,000 3,000
Wetland credit bank 45,000 45,000
Public Art 51000 -
TOTAL SERVICES&CHARGES 97,555 103,412 1399118 1669650 1629250
TRANSFERS OUT 41,000 43,000
4721 General Fund 36,600 38,000 39,500 41,000 43,000
TOTAL EDA EXPENDITURES 276,428 287,534 325,208 369,650 371,650
REVENUES OVER/(UNDER)EXPENDITURES 1119275 649229 21,508 - -
A A
8/13/2021
Performance Measures &Goals for 2022
Division. Economic Development
Completed by. Colleen Eddy DRAFT for 8/16/21 workshop
Date: May 27,2021
Performance Measure 2019 Actual 2020 Actual 2021 Estimated 2021 YTD 2022 Projected
BR&E Visits(GrowMN platform) 26 18 24 2 24
Facilitate Site Visits to Elk River 4 3 4 0 4
o Business Contacts/Engagements in
Elk River 150
L
cn New prospect contacts(broker
C relationships,trade show contacts) 50
U
C Inquiries-Prospects-Leads 24
c6
o Commercial-Industrial permit value $35,000,000
U)
U)
D
0 Ads placed-net impressions 350,000
o Net Job Growth 100
LL
EDA Website Traffic 5000
Division Goal Goal Objective/Task
Support Elk River's existing businesses through Continue to conduct BRE visits,and to receive feedback on city factors impacting
relationship building,programmatic offerings,and high busineses. Provide technical assistance as necessary and through feedback ensure
economic development programs of the city are in line with business needs and utilization.
quality city services Support businesses through stated needs such as workforce development and recruitment.
Continue to market and promote the community. Make contact with prospective
businesses and siting professionals andspecifically highlighting the community's strengths.
Attract new business development to Elk River to build Market existing properties(EDA and private)and capture opportunities for land
the City's economic vibrancy,mob offerings and tax base development and assembly. Direct targeted focus on specific sectors,including those
identified in the EDA strategic plan:precision manufacturing,renewable energy,regional
distribution,biomedial manufacturers,and health care services.Promote available
properties on MNCAR and other marketing vehicles.
Proactively support the community and businesses impacted by the 169 Redefine Promect.
Set up a mechanism for communication among businesses in conmunction with Public
Support impacted businesses and capilize on Works,City Communications team,and MN/DOT. Provide resources to address
opportunities associated with the 169 Redefine Promect challenges created during the promect and facilitate business relocation within the city if
necessary. Foster and promote new opportunities created from implementation of the
promect.
Support Elk River businesses through the COVID Recognize that the Covid pandemic has had significant impacts on the community,some
which may be lasting. Utilize internal resources and leverage external resources to support
Pandemic and take steps to foster a robust recovery and stabilize the business environment as recovery from the pandemic continues in 2022.
Partner with peer organizations Continue to work with Sherburne County,Elk River Area Chamber of Commerce,
GreaterMSP,DEED,MN Marketing Partnership,ERMU,and Elk River Schools.
Grow and maintain an inventory of private and public Continue to fund the wetland bank to facilitate new development where wetlands impede
properties available for future development growth.
Maintain financial incentives to enhance economic Maximize and leverage city programs,MnDEED monies,Initiative Foundation,Sherburne
development County Revolving Loan Fund and other financial tools and incentives
Position the Together Elk River campaign/brand to Build off the momentum Together Elk River delivered throughout the Covic pandemic to
support ongoing communinty priorities and challenges. support prevailing economic matters in the community such as workforce recruitment and
the 169 Redefine project.
Increase the number of companies actively
manufacturing products or components of products Work with ERMU and Environmental Departments
directly or indirectly used in renewable energy or energy
efficiency by 2024