7.2. EDSR 09-20-2021 City nf
Elk
,Ver— Request for Action
To Item Number
Economic Development Authori 7.2
Agenda Section Meeting Date Prepared by
General Business September 20, 2021 Brent O'Neil, Economic Development Director
Item Description Reviewed by
2022 EDA Budget and Resolution Establishing Lori Ziemer,Finance Director
EDA Levy Reviewed by
Cal Portner, City Administrator
Action Requested
Approve,by motion,the 2022 EDA Budget and attached resolution establishing the EDA Tax Levy of
$363,150 for collection in year 2022.
Background/Discussion
The 2022 EDA Budget addresses several of the goals outlined in the strategic plan,anticipated updates to the
Comprehensive Plan,the city's vision worksheet, and discussions at the budget workshop on August 16, 2021.
EDA bylaws require budget approval and a Council recommendation at the September meeting for inclusion
into the preliminary levy.
Budget
The proposed budget for 2022 is $371,650 and includes similar expenses to the 2021 budget. Notable changes
between 2021 and 2022 budgets are as follows:
■ $2,000 increase to Office Supplies, accounting for anticipated technology purchases and software.
■ Includes $5,000 in Professional Services account for miscellaneous general consulting services.
■ Increases Legal Services from $6,000 to $8,000 to track with historic legal expenses more accurately.
■ Adds $5,000 under process mapping to develop a multi-department initiative to streamline internal
project and process review and use web-based platforms to better disseminate project information.
■ Without an anticipated art project next year, funding for public art was not included.
The 2022 budget continues to include funding for Together Elk River and the Wetland Credit Bank.
Revenue and Lew
The proposed property tax levy of$363,150,projected interest income of$5,000 and HRA transfer in of
$3,500 would balance revenue and expenses. This levy amount is flat year-over-year. Of note, the EDA
operating levy is capped by state statute at 0.01813% of estimated market value of property in Elk River. A
maximum levy would be in excess of$500,000.
Goals and Measures
Following the budget workshop in August, the measures of website traffic, net impressions from advertising,
and permitted value of commercial and industrial projects have been carried over from the workshop. The
EDA expressed a desire to track leads,inquiries,prospects, and projects at a more detailed level. After
The Elk River Vision
A avek-oming community n ith revolutionary and spirited resourcefulness, exceptional service, and P D W E H E D D Y
community engagement that encourages and inspires prosperity /` UR
considering optimal methods for tracking and presenting this information staff identified SourceLink software
as a great platform for tracking these items and generating reports for the EDA's review.
Financial Impact
The 2022 expenditure budget is $371,650.
Attachments
■ 2022 EDA Budget
■ 2022 EDA Goals and Measurables
■ Resolution for 2022 EDA Levy
Dept:Economic Development Authority
Acct.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 3,500 3,500 3,500
TOTAL EDA REVENUES 387,703 351,763 346,716 369,650 371,650
EXPENDITURES:
PERSONAL SERVICES
4101 Regular Pay 97,777 100,800 102,259 112,150 113,100
4103 Part-time Pay 12,150 11,625 12,600 12,600 12,600
4104 PERA 7,513 7,710 6,955 8,600 8,650
4105 FICA 6,151 6,238 6,515 7,650 7,700
4107 Medicare 1,490 1,502 1,576 1,800 1,800
4108 Insurance 15,439 15,955 14,725 17,600 18,500
4109 Workers Comp 473 453 438 500 500
TOTAL PERSONAL SERVICES 140,993 144,283 145,068 160,900 162,850
SUPPLIES
4201 Office Supplies 1,248 1,628 1,522 1,050 3,500
Office supplies 700 1,650
Computer Software/Licensing (Sketchup, etc.)350 1,850
4212 Fuels & Lubes 32 211 - 50 50
Unleaded gas 50 50
TOTAL SUPPLIES 1,280 1,839 1,522 1,100 3,550
SERVICES & CHARGES
4304 Legal Fees 2,450 10,613 8,715 6,000 8,000
Misc.6,000 8,000
4319 Other Professional Services - - 50,846 10,000 10,000
ED Strategic Plan 10,000 -
Consulting 5,000
Process mapping 5,000
4321 Telephone 963 1,693 742 1,000 1,000
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 11,278 4,461 14,950 14,800
EDAM 1,800 1,800
Annual IEDC Conference 2,400 2,400
Chamber Events 150 150
MREJ 400 300
MNCREW 100 50
CMMA 100 100
Baker Tilly Symposium 400 400
Site Selector Conference 3,150 3,150
Economix Spring and/or Fall 2,250 2,250
Misc. training - IEDC Certification 1,200 1,200
2022 BUDGET DETAIL
Explanation/Detail of Supplies or Services
9/16/2021
Dept:Economic Development Authority
Acct.2018 2019 2020 2021 2022
No.Actual Actual Actual BUDGET BUDGETExplanation/Detail of Supplies or Services
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)12,850 12,850
Direct Mailings - Mfg Week 150 200
Promo items 2,500 2,500
Special events 3,250 3,250
Sponsorships (City/EDA)9,950 9,950
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)5,700 5,700
Lead Forensics (Shared by EDA/HRA)1,200 1,200
Promotion & Awards 900 1,500
Holiday card marketing 300 300
Together Elk River Campaign 10,000 10,000
Energy City Program (rebates)10,000 10,000
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 4,779 4,244 4,700 4,650
EDAM 500 450
Chamber 550 550
CMMA 300 300
MNCAR 300 300
IEDC 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 5,000 -
TOTAL SERVICES & CHARGES 97,555 103,412 139,118 166,650 162,250
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 111,275 64,229 21,508 - -
^^
9/16/2021
Division:
Completed by:
Date:
Performance Measure 2019 Actual 2020 Actual 2021 Estimated 2021 YTD 2022 Projected
BR&E Visits (GrowMN platform)26 18 24 5 24
Facilitate Site Visits to Elk River 4 3 4 1 4
Commercial - Industrial permit
value $35,000,000
Net impressions from placed ads 350,000
EDA Website Traffic 5,000
Performance Measures & Goals for 2022
Economic Development
Colleen Eddy, Brent O'Neil
August 31, 2021
Division Goal Goal Objective/Task
Support Elk River's existing businesses through
relationship building, programmatic offerings, and high
quality city services
Continue to conduct BRE visits, and to receive feedback on city factors impacting
businesses. Provide technical assistance as necessary and through feedback ensure
economic development programs of the city are in line with business needs and utilization.
Support businesses through stated needs such as workforce development and recruitment.
Attract new business development to Elk River to build
the City's economic vibrancy, job offerings and tax base
Continue to market and promote the community. Make contact with prospective
businesses and siting professionals and specifically highlighting the community's strengths.
Market existing properties (EDA and private) and capture opportunities for land
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.
Support impacted businesses and capitalize on
opportunities associated with the 169 Redefine Project
Proactively support the community and businesses impacted by the 169 Redefine Project.
Set up a mechanism for communication among businesses in conjunction with Public
Works, City Communications team, and MN/DOT. Provide resources to address
challenges created during the project and facilitate business relocation within the city if
necessary. Foster and promote new opportunities created from implementation of the
project.
Support Elk River businesses through the COVID
pandemic and take steps to foster a robust recovery
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
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
properties available for future development
Continue to fund the wetland bank to facilitate new development where wetlands impede
growth.
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
Maintain financial incentives to enhance economic
development
Maximize and leverage city programs, MnDEED monies, Initiative Foundation, Sherburne
County Revolving Loan Fund and other financial tools and incentives
Position the Together Elk River campaign/brand to
support ongoing community priorities and challenges.
Build off the momentum Together Elk River delivered throughout the Covid pandemic to
support prevailing economic matters in the community such as workforce recruitment and
the 169 Redefine project.
Resolution 21-
A Resolution of the City of Elk River Economic Development Authority,
Establishing the Tax Levy for the Elk River Economic Development
Authority for the City of Elk River, Minnesota
WHEREAS, Minnesota Statutes §469.107, subd. 1, authorizes the Economic
Development Authority to levy an amount not to exceed .01813 percent of the estimated
market value within the city to be used for economic development purposes; 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
§469.100, subd. 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 $363,150 for the year 2022 for the benefit of
the Authority to be used for Economic Development Authority purposes as provided by the
statute.
Passed and adopted this 20th day of September, 2021.
Dan Tveite, EDA President
ATTEST:
Brent O’Neil, EDA Executive Director