7.3. EDSR 08-21-2023
Request for Action
To Item Number
Economic Development Authority 7.3
Agenda Section Meeting Date Prepared by
General Business August 21, 2023 Brent O’Neil, Economic Development Director
Item Description Reviewed by
2024 Budget Cal Portner, City Administrator
Reviewed by
Action Requested
Approve, by motion, the 2024 EDA budget and recommend the City Council include $415,950 in the 2024
Preliminary Levy.
Background/Discussion
The proposed budget for 2024 is based largely on the ongoing work and similar expenses of the EDA from 2023.
The total proposed expenditures increase from $404,700 to $434,950 year-over-year, a change of $30,250. The
proposed levy would increase from $395,700 to $415,950. This change of $20,250 accounts for projected
additional revenue of $10,000 in interest income. The proposed levy of $415,950 is approximately 60% of the
maximum levy authorized by statute.
The most impactful change to the budget is increasing professional services by $21,000, which is intended to
provide consulting support for activities such as hotel market analysis and industrial park development.
Financial Impact
Adoption of the budget sets the 2024 expenditures at $434,950.
Mission/Policy/Goal
EDA bylaws state the budget be presented to the EDA in August for adoption.
Attachments
Budget and Goals Worksheets
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: January 2023
2024 BUDGET DETAIL
Dept:920-6210 - Economic Development Authority
Acct.20232024
202020212022
Explanation/Detail of Supplies or Services
No.BUDGETBUDGET
ActualActualActual
REVENUES:
3111Property Taxes 334,277 362,164 360,527 395,700 415,950
3322MV Credit 160 199 210 -
3621Interest Income 4,579 1,396 13,333 5,000 15,000
3629Miscellaneous Revenue 4,200 23,506 - -
3949Transfers In - HRA 3,500 3,500 3,500 4,000 4,000
TOTAL EDA REVENUES 346,716 390,765 377,570 404,700 434,950
EXPENDITURES:
PERSONAL SERVICES
4101Regular Pay 102,259 83,612 93,298 113,350 123,900
4103Part-time Pay 12,600 12,600 12,600 12,600 12,600
4104PERA 6,955 5,697 6,700 8,700 9,500
4105FICA 6,515 5,816 6,286 7,700 8,350
4107Medicare 1,576 1,412 1,522 1,850 2,000
4108Insurance 14,725 5,131 17,703 24,300 24,300
4109Workers Comp 438 483 516 500 550
TOTAL PERSONAL SERVICES 145,068 114,751 138,625 169,000 181,200
SUPPLIES
Office Supplies
4201 1,522 2,584 7,250 3,800 2,500
Office supplies 2,500 2,500
Computer equip 1,300
Fuels & Lubes
4212 - 80 55 50 50
Unleaded gas 50 50
TOTAL SUPPLIES 1,522 2,664 7,305 3,850 2,550
SERVICES & CHARGES
Legal Fees
4304 8,715 9,237 7,027 9,500 10,000
Misc. 9,500 10,000
Other Professional Services
4319 50,846 7,590 - 6,000 27,000
Consulting/Studies 5,000 27,000
Process mapping 1,000 -
Telephone
4321 742 430 12 1,000 400
Cell phone (2) 1,000 400
Postage
4322 93 26 10 500 200
Marketing mailings 500 200
Conferences/Schools
4331 4,461 10,769 5,035 6,500 10,450
EDAM 2,000 2,500
Annual IEDC Conference - -
Chamber Events 300 500
MREJ 350 1,000
MNCREW 100 -
CMMA 300 350
Ehlers/Baker Tilly Symposium 450 600
Misc. training - IEDC Certification - -
MAEDC (BP and Competitive Conf.) - 2,500
Other 3,000 3,000
Advertising/Marketing
4349 60,516 44,780 27,367 75,600 67,200
Community Profiles 1,000 2,000
Advertising (Production & Publication) 13,000 8,000
Direct Mailings - Mfg Week 200 -
Promo items 2,500 1,000
Special events 3,000 2,000
Sponsorships (City/EDA) 3,000 3,000
Catalyst 4,500 5,000
Trade Shows & Lead Generation (includes travel) 10,000 8,000
Site Selector Event (Economix, Etc) - moved from 4331 3,500 3,000
EDA Website (EDA share - 1/2 EDA & 1/2 HRA) 5,700 5,700
Lead Forensics (2023 - no longer shared by EDA/HRA) 2,400 -
Promotion & Awards 1,500 1,500
Holiday card marketing 300 -
Together Elk River Campaign 15,000 20,000
Energy City Program (rebates) 10,000 2,500
MMP Partner Visits 2,500
Misc. Marketing 3,000
Publishing
4359 656 312 225 350 350
Public notices, etc 350 350
Insurance
4361 212 220 164 250 250
Auto insurance 250 250
Software Subscriptions
4404 - - 9,350 11,100
Software/Licensing (Sketchup, etc.) 1,850 2,000
Analytics Software 7,500 7,600
CitizenServe 1,500
Dues/Subscriptions
4433 4,244 3,694 12,494 4,800 4,750
EDAM 500 550
Chamber 600 700
CMMA 300 350
MNCAR 300 350
IEDC 700 -
Finance and Commerce 350 350
MN Marketing Partnership 800 800
MAEDC 300 450
MPLS/ST Paul Business Journal 350 350
GROW MN/Salesforce License 600 600
Star Tribune 250
Miscellaneous
4440 8,633 18,890 5,623 73,000 73,500
Initiative Foundation 3,000 3,500
Wetland credit bank 60,000 60,000
Public Art 10,000 10,000
TOTAL SERVICES & CHARGES 139,118 95,948 57,957 186,850 205,200
TRANSFERS OUT
45,000 46,000
General Fund
4721 39,500 41,000 43,000 45,000 46,000
TOTAL EDA EXPENDITURES 325,208 254,363 246,887 404,700 434,950
REVENUES OVER/(UNDER) EXPENDITURES 21,508 136,402 130,683 - -
^^^^^
Performance Measures & Goals for 2024
Division:Economic Development
Completed by:Brent O'Neil
Date:July 10, 2023
Performance Measure2020 Actual2021 Actual2022 Actual2023 Estimated2023 YTD2024 Projected
BR&E Engagements incl.
1847181120
GrowMN
Facilitate Site Visits to Elk River
311424
Commercial - Industrial permit
value
$50,000,000 $60,000,000
$20,000,000 $58,000,000 $67,000,000 $27,500,000
Net impressions from placed ads
250,000250,000
355,000310,000200,00080,000
EDA Website Traffic
6,0008,000
5,0005,0005,5002,200 (thru q1)
Division Goal
Goal Objective/Task
Continue to conduct BRE visits and to receive feedback on city factors impacting businesses. Provide technical
Support Elk River's existing businesses through
assistance as necessary and through feedback ensure economic development programs of the city are in line with
relationship building, programmatic offerings, and high
business needs and utilization. Develop and modify programming by utilizing feedback from the business community.
quality city services
Consider an annual or semi-annual forum of local businesses to complement BRE visits and foster additional outreach
to the business community.
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
Attract new business development to Elk River to build
opportunities for land development and assembly. Direct targeted focus on specific sectors, including those identified
the city's economic vibrancy, job offerings and tax base
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 Project, and work with Together Elk
Support impacted businesses and capitalize on River committee on implementation. Provide resources to address challenges created during the project and facilitate
opportunities associated with the 169 Redefine Projectbusiness relocation within the city if necessary. Foster and promote new opportunities created from implementation of
the project.
Support beautification efforts, public art, events, and investments that attract visitors to Elk River. Direct investment in
Consider new programs that promote the community
certain programs may lead to enhanced community perception and increase in visitors to Elk River. Consider ways to
image and support local tourism.
boost hotel capacities in the city.
Continue to work with Sherburne County, Elk River Area Chamber of Commerce, GreaterMSP, DEED, MN Marketing
Partner with peer organizations
Partnership, ERMU, and ISD 728. Consider regional marketing efforts.
Keep a detailed and regularly-updated inventory of properties which may be suitable for development and likely
Maintain an inventory of private and public properties
available to promote to business prospects. In addition to utilizing the MNCAR system for actively available properties,
available for future development
also identify properties in coordination with owners that could be identified and shared with interested parties.
Maximize and leverage city programs, MnDEED monies, Initiative Foundation, Sherburne County Revolving Loan
Maintain financial incentives to enhance economic
Fund and other financial tools and incentives. Evaluate programs for relevance and capacity to serve current
development
community needs; modify as necessary.
Position the Together Elk River campaign/brand to Build off the momentum Together Elk River delivered throughout the COVID pandemic to support prevailing economic
support ongoing community priorities and challenges.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 Work with ERMU, the environmental division, and Energy City Commission.
used in renewable energy or energy efficiency by 2024