7.1. EDSR 09-19-2022Request for Action
To Item Number
Economic Development Authority 7.1
Agenda Section Meeting Date Prepared by
General Business September 19, 2022 Brent O’Neil, Economic Development Director
Item Description Reviewed by
2023 Budget and Goals Cal Portner, City Administrator
Reviewed by
Action Requested
Approve, by motion, the 2023 EDA budget and goals and attached resolution establishing the EDA Tax Levy of
$396,000 for collection in year 2023.
Background/Discussion
The 2023 EDA Budget addresses several of the goals and line items discussed at the budget workshop on August
15, 2022. EDA bylaws require budget approval its regular September meeting. The EDA established at its August
2022 meeting a preliminary levy of $396,000 for 2023 which was presented to the City Council and approved at
the Council’s September 6 meeting. Approval by the EDA finalizes the 2023 budget and goals as well as the final
levy amount for inclusion in the City’s levy.
The proposed budget for 2023 is $405,000 and includes similar expenses to the 2022 budget. Notable changes are
increasing funding for the wetland bank by $15,000, including $15,000 for development of a Public Art Program
and including $7,500 for the EDA’s cost share of analytics software (Placer.ai).
The proposed property tax levy of $396,000, projected interest income of $5,000 and $4,000 in funding from the
HRA would balance revenue and expenses. Also 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 is estimated to be in excess of
$600,000. For reference, the approved levy for the 2022 budget year was $363,150.
Financial Impact
Proposed expenditures for 2023 total $405,000.
Mission/Policy/Goal
EDA Bylaws require the Executive Director to prepare a budget and present it to the Commissioners of the
Authority for consideration each year.
Attachments
Resolution Establishing the EDA Final Levy for Collection in 2023
Proposed EDA Budget for 2023
Proposed EDA Goals for 2023
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: August 2020
2023 BUDGET DETAIL
Dept:920-6210 - Economic Development Authority
Acct.20222023
201920202021
Explanation/Detail of Supplies or Services
No.BUDGETBUDGET
ActualActualActual
REVENUES:
3111Property Taxes 331,581 334,277 362,164 363,150 396,000
3322MV Credit 171 160 199 - -
3621Interest Income 16,511 4,579 1,396 5,000 5,000
3629Miscellaneous Revenue - 4,200 23,506 - -
3949Transfers In - HRA 3,500 3,500 3,500 3,500 4,000
TOTAL EDA REVENUES 351,763 346,716 390,765 371,650 405,000
EXPENDITURES:
PERSONAL SERVICES
4101Regular Pay 100,800 102,259 83,612 113,100 113,350
4103Part-time Pay 11,625 12,600 12,600 12,600 12,600
4104PERA 7,710 6,955 5,697 8,650 8,700
4105FICA 6,238 6,515 5,816 7,700 7,700
4107Medicare 1,502 1,576 1,412 1,800 1,850
4108Insurance 15,955 14,725 5,131 18,500 24,300
4109Workers Comp 453 438 483 500 500
TOTAL PERSONAL SERVICES 144,283 145,068 114,751 162,850 169,000
SUPPLIES
Office Supplies
4201 1,628 1,522 2,584 3,500 2,500
Office supplies 1,650 2,500
Computer Software/Licensing (Sketchup, etc.) 1,850 -
Fuels & Lubes
4212 211 - 80 50 50
Unleaded gas 50 50
TOTAL SUPPLIES 1,839 1,522 2,664 3,550 2,550
SERVICES & CHARGES
Legal Fees
4304 10,613 8,715 9,237 8,000 9,500
Misc. 8,000 9,500
Other Professional Services
4319 - 50,846 7,590 10,000 6,000
Consulting 5,000 5,000
Process mapping 5,000 1,000
Telephone
4321 1,693 742 430 1,000 1,000
Cell phone (2) 1,000 1,000
Postage
4322 417 93 26 500 500
Marketing mailings 500 500
Conferences/Schools
4331 11,278 4,461 10,769 14,800 10,000
EDAM 1,800 2,000
Annual IEDC Conference 2,400 -
Chamber Events 150 300
MREJ 300 350
MNCREW 50 100
CMMA 100 300
Baker Tilly Symposium 400 450
Site Selector Event (SSG/Economix/Etc) 3,150 3,500
Economix Spring and/or Fall -remove 2,250 -
Misc. training - IEDC Certification 1,200 -
MAEDC (BP and Competitive Conf.) 3,000 -
Other 3,000
Advertising/Marketing
4349 71,194 60,516 44,780 74,850 72,100
Community Profiles 1,000 1,000
Advertising (Production & Publication) 12,850 13,000
Direct Mailings - Mfg Week 200 200
Promo items 2,500 2,500
Special events 3,250 3,000
Sponsorships (City/EDA) 9,950 3,000
Catalyst 4,500 4,500
Trade Shows & Lead Generation (includes travel) 11,900 10,000
EDA Website (EDA share - 1/2 EDA & 1/2 HRA) 5,700 5,700
Lead Forensics (Shared by EDA/HRA) 1,200 2,400
Promotion & Awards 1,500 1,500
Holiday card marketing 300 300
Together Elk River Campaign 10,000 15,000
Energy City Program (rebates) 10,000 10,000
Publishing
4359 136 656 312 250 350
Public notices, etc 250 350
Insurance
4361 210 212 220 200 250
Auto insurance 200 250
Software Subscriptions
4404 - - - - 9,350
Computer Software/Licensing (Sketchup, etc.) 1,850
Analytics Software 7,500
Dues/Subscriptions
4433 4,779 4,244 3,694 4,650 5,100
EDAM 450 500
Chamber 550 600
CMMA 300 300
MNCAR 300 300
IEDC 650 700
Finance and Commerce 300 350
Rotary 300 300
MN Marketing Partnership 700 800
MAEDC 300 300
MPLS/ST Paul Business Journal 300 350
GROW MN/Salesforce License 500 600
Miscellaneous
4440 3,092 8,633 18,890 48,000 73,000
Initiative Foundation 3,000 3,000
Wetland credit bank 45,000 60,000
Public Art - 10,000
IT Equipment Charge
4462 1,300
TOTAL SERVICES & CHARGES 103,412 139,118 95,948 162,250 188,450
TRANSFERS OUT
43,000 45,000
General Fund
4721 38,000 39,500 41,000 43,000 45,000
TOTAL EDA EXPENDITURES 287,534 325,208 254,363 371,650 405,000
REVENUES OVER/(UNDER) EXPENDITURES 64,229 21,508 136,402 - -
^^^^^
Division:
Completed by:
Date:
Performance Measure 2020 Actual 2021 Actual 2022 Estimated 2022 YTD 2023 Projected
GrowMN Partnership Visits 18
Business Engagements (BRE)50
Prospect Engagements 36
Facilitate Site Visits to Elk River 3 1 4 2 4
Commercial - Industrial permit
value $20,000,000 $58,000,000 $35,000,000 $56,000,000 $50,000,000
Net impressions from placed ads 355,000 310,000 350,000 110,000 250,000
EDA Website Traffic 5,000 5,000 5,000 2,700 5,200
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.
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
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.
Maintain an inventory of private and public properties
available for future development
Keep a detailed and regularly-updated inventory of properties which may be suitable for
developent and likely available to promote to business prospects. In addition to utilizing the
MNCAR system for actively available properties, also identify properties in coordination with
Consider new programs that promote the community
image and support local tourism.
Support beautification efforts, public art, events, and investments that attract visitors to Elk
River. Direct investment in certain programs may lead to enhanced community perception
and increase in visitors to Elk River.
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.
Performance Measures & Goals for 2023
Economic Development
Brent O'Neil
Sept. 16, 2022
Division Goal Goal Objective/Task
Resolution 22-03
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 approved a motion at its
meeting on August 15, 2022, recommending to the City Council a preliminary levy of
$396,000 which was subsequently adopted by the Council on September 6, 2022; and,
WHEREAS, the Elk River Economic Development Authority has adopted and approved
its budget and recommended final levy 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 $396,000 for the year 2023 for the benefit of
the Authority to be used for Economic Development Authority purposes as provided by the
statute.
th
Passed and adopted this 19 day of September, 2022.
Dan Tveite, EDA President
ATTEST:
Brent O’Neil, EDA Executive Director