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8.2 SR 09-16-2024City of Elk - River To City Council Meeting Date September 16, 2024 Item Description EDA Resolution 24-56 and HRA Resolution 24-57 - 2025 Budget and Tax Levy Action Requested Request for Action Item Number 8.2 Prepared By Joshua Mollan, Economic Development Specialist Reviewed by Brent O'Neil Cal Portner Tina Allard 1. Adopt, by motion, Resolution 24-56 establishing the EDA tax levy of $427,000 for collection in 2025. 2. Adopt, by motion, Resolution 24-57 establishing the HRA tax levy of $439,950 for collection in 2025. Background/Discussion The EDA and HRA are required to submit their budgets and recommended levies to the City Council annually. The EDA finalized its budget on August 19, 2024, with total 2025 expenditures of $456,000. Forecasting interest income of $25,000 and transfers -in of $4,000, the EDA recommends $427,000 be included in the 2025 levy. The HRA finalized its budget on September 3, 2024, with total 2025 expenditures of $444,950. Revenue from interest is projected at $5,000. The HRA recommends $439,950 be included in the 2025 levy. By statute, the levy is limited to 0.01813% of the Estimated Market Value (EMV) of real property in the city for the EDA, and 0.0185% of the EMA for the HRA. For both boards, the proposed levies for 2025 equate to approximately 60% of the allowed maximum. Financial Impact The proposed 2025 EDA budget is $456,000, with a proposed tax levy of $427,000. The proposed 2025 HRA budget is $444,950, with a proposed tax levy of $439,950. Mission/Policy/Goal Support commercial and industrial development, redevelopment, and housing initiatives in Elk River. Attachments 1. HRA 2025 Budget and Goals The Elk River Vision A avelcoming community with revolutionary and spirited resourcefulness, exceptional service, and community p p W E H E U A T engagement that encourages and inspires prosperity 1NMLWrd381 2. Res 24-56 EDA Levy 3. Res 24-57 H RA Levy 4. EDA 2025 Budget and Goals Page 212 of 381 Performance Measures & Goals for 2025 Division: Housing and Redevelopment Completed by: Brent O'Neil Date: August 29, 2024 Performance Measure 2021 Actual 2022 Actual 2023 Actual 2024 Estimated 2024 YTD 2025 Projected Number of HRA Rehab Loan applications approved 0 0 4 5 2 5 Rehab Loan Funds Outstanding ear�encl $160,000 $52 500 $162,000 $250,000 $210 000 $400 000 Residential Property Re- investment (by permitvalue $8,000,000 $17,800,000 $19,700,000 $9,000,000 $7,000,000 $15,000,000 Number of Multi -family Units Added com letions 70 0 90 100 142 50 Division Goal Goal Objective/Task Promote investment in residential properties within Elk River and target individuals interested in the blighted properties Promote preservation of housing stock program and the HRA Rehab Loan Program. Identify dilapidated properties and work with city code enforcement. Protect and strengthen rental properties. Participate in the Downtown ER Business Association Meetings. Work with the DERBA to develop a beautification Promote a vital downtown plan for the Main Street Corridor and/or engagement of redesign for Main Street. Promote and/or modify the Downtown Facade Improvement microloan program. Pursue strategic acquisition and sale of downtown redevelopment property. Facilitate future use options for Elk River Meats site. Identify business owners interested in redevelopment blighted C/I properties. Work with the building department to Enhance redevelopment opportunities for C/I properties identify properties eligible for the blighted properties C/I program. Hold periodic discussions with various departments (police, fire, building, and planning) to discuss potential redevelopment opportunities. Acquire properties or short- and long-term redevelopment Monitor the market and identify properties for potential acquisition which align with the strategic objectives of the HRA, including substandard structures. Optimize use of studies, data, and research tools As needed, conduct studies and conduct research to best guide the HRA in its activities. Utilize tools such as analytical software to better understand conditions and opportunities. Page 213 of 381 2025 BUDGET DETAIL Dept: 910-6100 - Housing & Redevelopment Authority Acct. No. Explanation/Detail of Supplies or Services 2021 Actual 2022 Actual 2023 Actual 2024 BUDGET 2025 BUDGET 3111 3322 3414 3621 3629 4101 REVENUES: Property Taxes MV Credit Development Fee Interest Income Miscellaneous Revenue TOTAL HRA REVENUES EXPENDITURES: PERSONAL SERVICES Regular Pay 320,897 328,888 398,899 440,100 439,950 176 192 236 - - - - 5,541 4,178 7,651 5,000 5,000 - - - - 326,614 55,741 333,258 62,199 406,786 77,319 445,100 82,600 444,950 87,200 4104 PERA 3,678 4,665 5,799 6,200 6,550 4105 FICA 3,456 3,856 4,785 5,100 5,400 4107 Medicare 808 902 1,119 1,200 1,250 4108 Insurance 3,421 11,802 16,070 16,200 17,000 4109 Workers Comp 322 344 314 350 450 4201 4219 4304 4319 TOTAL PERSONAL SERVICES SUPPLIES Office Supplies shared with EDA 67,426 83,768 75 105,406 27 111,650 - 117,850 50 4,931 864 1,092 50 Operating Supplies Downtown permanent fixtures 500 500 4,931 8,451 939 4,266 1,119 975 500 500 TOTAL SUPPLIES SERVICES & CHARGES Legal Fees Misc. 500 8,000 550 6,500 18,096 850 - 8,000 6,500 Professional Services 32,000 27,000 4322 4331 4349 4359 4361 4389 4401 General 3 2 1 2,000 2,000 Studies: Downtown Parking, Housing Update 30,000 25,000 Postage Postage 50 50 45 35 52 50 50 Travel, Conferences & Schools MREJ - Housing Seminars 200 200 11,288 8,049 9,110 200 200 Advertising/Marketing Housing Program Marketing Materials - printing 9,200 9,500 624 80 189 2,500 2,500 Seasonal Outreach 1,000 1,000 HRA/EDA Shared Website 5,700 6,000 Lead Forensics - Split between HRA/EDA - Publishing Public hearing notices 350 300 2,670 - - 350 300 Insurance Property insurance - - - 63 176 - - Utilities Building Maint. Services Lawn/snow removal 3,308 2,370 5,535 4,000 4,000 4,000 4,000 8/29/2024 Page 214 of 381 Dept: 910-6100 - Housing & Redevelopment Authority Acct. No. Explanation/Detail of Supplies or Services 2021 Actual 2022 Actual 2023 Actual 2024 BUDGET 2025 BUDGET 4404 4409 Software Services Placer Anal tics 7,481 9,100 6,500 1,502 25,659 91,686 7,600 5,000 CitizenServe 1,500 1,500 Contractual Services 27,750 27,000 4433 4437 4440 4510 4721 CEE Administrative Fee 247 7,125 2,464 5,000 5,000 Hanging lanters and downtown fixtures/maintenance 22,750 22,000 Dues & Subscriptions Downtown Spotlight 800 2,500 - - - 300 Misc. 500 2,500 Property Taxes Miscellaneous Property acquisition/development bank - - - - - 200,000 200,000 46,234 - 48,499 185,426 117,669 200,000 200,000 TOTAL SERVICES & CHARGES CAPITAL OUTLAY Land TRANSFERS OUT General Fund 291,450 283,550 33,900 35,000 36,500 41,500 43,000 37,500 39,000 General Fund - plant maintenance 8,000 - - 4735 Economic Development Authority shared expenses) 3,500 3,500 4,000 4,000 4,000 TOTAL HRA EXPENDITURES REVENUES OVER/(UNDER) EXPENDITURES 163,991 162,623 357,132 (23,874) 264,694 142,092 445,100 A - 444,950 A - 8/29/2024 Page 215 of 381 City of El*.=: Rver City of Elk River City Council Resolution 24-56 A Resolution of the City Council of the City of Elk River Approving the 2025 Tax Levy for Economic Development Purposes for the Elk River Economic Development Authority. WHEREAS, the Economic Development Authority (EDA) for the City of Elk River has requested the city to authorize to levy a tax for the benefit of the EDA for economic development purposes; and WHEREAS, the City Council of the City of Elk River has consented to this levy for the year 2025. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, TNEnnesota, as follows: the Economic Development Authority for the City of Elk River,certify a tax levy in the amount of $427,000 in the year 2025 for the benefit of the City of Elk River Economic Development Authority to be used for economic development purposes as provided under Minnesota Statute 469.090 et. Seq. Passed and adopted this 16"' day of September 2024. John J. Dietz, Mayor ATTEST: Tina Allard, City Clerk POWERED R1 NAMR Page 216 of 381 City of El*.=: Rver City of Elk River City Council Resolution 24-57 A Resolution of the City Council of the City of Elk River Approving the 2025 Tax Levy for Elk River Housing and Redevelopment Authority for the City of Elk River, Minnesota WHEREAS, the Housing and Redevelopment Authority in and for the City of Elk River has requested the city authorize to levy a tax for various housing and redevelopment purposes; and WHEREAS, the City Council of the City of Elk River has consented to this levy for the year 2025. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, TNEnnesota, as follows: the Housing and Redevelopment Authority in and for the City of Elk River, TNEnnesota, certify a tax levy in the amount of $439,950 in the year 2025 for the benefit of the City of Elk River Housing and Redevelopment Authority to be used for various housing and redevelopment purposes. Passed and adopted this 16"' day of September 2024. John J. Dietz, Mayor ATTEST: Tina Allard, City Clerk POWERED R1 A R Page 217 of 381 Performance Measures & Goals for 2025 Division: Economic Development Completed by: Brent O'Neil Date: JJuly 8, 2024 Performance Measure 2021 Actual 2022 Actual 2023 Actual 2024 Estimated 2024 YTD 2025 Projected Business Engagements prev. tracked more riaidly as BRE 4 7 21 20 16 20 Facilitate Site Visits to Elk River 1 1 6 4 2 4 Commercial - Industrial permit value $58,000,000 $67,000,000 $51,000,000 $60,000,000 $5,700,000 $60,000,000 Net impressions from placed ads 310,000 200,000 150,000 250,000 80,000 150,000 EDA Website Traffic 5,000 5,500 5,500 8,000 3,200 6,000 Division Goal Goal Objective/Task Continue to outreach to receive feedback on city factors impacting businesses including BRE visits and other Support Elk River's existing businesses through interactions. Provide technical assistance as necessary and through feedback ensure economic development relationship building, programmatic offerings, and high programs of the city are in line with business needs and utilization. Develop and modify programming by utilizing quality city services feedback from the business community. Consider an annual or semi-annual forum of local businesses to complement business engagements and foster additional outreach to the business community. Continue to market and promote the community. Make contact with prospective businesses and siting professionals Attract new business development to Elk River to build and specifically highlighting the community's strengths. Market existing properties (EDA and private) and capture the citys economic vibrancy, job offerings and tax base 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. Consider new programs that promote the community Support beautification efforts, public art, events, and investments that attract visitors to Elk River. Direct investment in image certain programs may lead to enhanced community perception and increase in visitors to Elk River. Partner with peer organizations Continue to work with Sherburne County, Elk River Area Chamber of Commerce, GreaterMSP, DEED, MN Marketing 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. Develop a web -based portal for disseminating available private property not otherwise participating in a listing service. Maintain financial incentives to enhance economic Maximize and leverage city programs, MnDEED monies, Initiative Foundation, Sherburne County Revolving Loan development Fund and other financial tools and incentives. Evaluate programs for relevance and capacity to serve current community needs; modify as necessary. Position the Together Elk River (TER) campaign/brand to Focus on transitioning TER's support of the 169 Redefine construction project to a traveler -based marketing support ongoing community priorities and challenges. campaign in 2025 while also focusing on other community -oriented business support campaign(s)- Implement marketing and other activities which boost visitor traffic to Elk River for shopping, recreation, events, and Promote visitor attraction to Elk River enjoyment. Consider ways to boost hotel and restaurant capacities in the city. Investigate implemenation of Destination Marketing Organizations (DMOs). Identifies areas suitable for growth and how to best facilitate private investment. This can include studies to determine Plan for new commercial and industrial growth areas how and when utility infrastructure can be inplemented as well as tools for brining more land on-line, inluding private and public property. 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 Page 218 of 381 2025 BUDGET DETAIL Dept: 920-6210 - Economic Development Authority Acct. No. Explanation/Detail of Supplies or Services 2021 Actual 2022 Actual 2023 Actual 2024 BUDGET 2025 BUDGET 3111 3322 3621 3629 3949 4101 REVENUES: Property Taxes MV Credit Interest Income Miscellaneous Revenue Transfers In - HRA TOTAL EDA REVENUES EXPENDITURES: PERSONAL SERVICES Regular Pay 362,164 360,527 392,447 415,950 427,000 199 210 232 1,396 13,333 51,185 15,000 25,000 23,506 - 3,500 3,500 4,000 4,000 4,000 390,765 83,612 377,570 93,298 447,864 115,979 434,950 123,900 456,000 130,800 4103 Part-time Pay 12,600 12,600 12,600 12,600 12,600 4104 PERA 5,697 6,700 8,788 9,500 10,000 4105 FICA 5,816 6,286 7,698 8,350 8,800 4107 Medicare 1,412 1,522 1,827 2,000 2,100 4108 Insurance 5,131 17,703 24,106 24,300 25,500 4109 Workers Comp 483 516 473 550 650 4201 4212 4304 4319 4321 4322 4331 4349 TOTAL PERSONAL SERVICES SUPPLIES Office Supplies Office supplies 114,751 2,584 138,625 7,250 171,471 1,719 181,200 2,500 190,450 3,000 80 55 - 2,500 2,500 Computer equip 500 Fuels & Lubes Unleaded gas 50 50 2,664 9,237 7,305 7,027 1,719 10,7861 50 50 TOTAL SUPPLIES SERVICES & CHARGES Legal Fees M isc. 2,550 10,000 3,050 10,000 7,590 - - 10,000 10,000 Other Professional Services Consulting/Studies 27,000 25,000 430 12 - 27,000 25,000 Telephone Cell phone 2 400 400 26 10 40 400 400 Postage Marketing mailings 200 100 10,769 5,035 5,946 200 100 Conferences/Schools EDAM 10,450 11,000 44,780 27,367 30,914 2,500 1,500 Annual IEDC Conference - - Chamber Events 500 500 M REJ 1,000 1,000 MNCREW - - CMMA 350 400 Ehlers/Baker Tilly Symposium 600 600 Misc. training - IEDC Certification - 1,500 MAEDC BP and Competitive Conf. 2,500 2,500 Other 3,000 3,000 Advertising/Marketing Community Profiles 67,200 73,600 2,000 Advertising Production & Publication 8,000 8,000 Direct Mailings - Mfg Week - 100 Promo items 1,000 1,000 Special events 2,000 2,000 Sponsorships (City/EDA) 3,000 4,000 Catalyst 5,000 5,000 Trade Shows & Lead Generation includes travel 8,000 8,000 Site Selector Event (Economix, Etc) - moved from 4331 3,000 3,000 EDA Website EDA share - 1/2 EDA & 1/2 HRA 5,700 6,000 Lead Forensics 2023 - no longer shared by EDA/HRA - - Promotion & Awards 1,500 1,500 Holiday card marketing - - To ether Elk River Campaign 20,000 20,000 Energy City Program rebates 2,500 1 1,000 Page 219 of 381 4359 4361 4404 M M P Partner Visits 312 225 1,070 2,500 1,000 Misc. Marketing 3,000 3,000 Destination Marketing Or DMO)/Chamber Partnershi 10,000 Publishing Public notices, etc 350 1,000 220 164 93 350 1,000 Insurance Auto insurance 250 250 - 13,026 250 250 Software Subscriptions 11,100 15,000 4433 4440 4721 Software/Licensin Sketchu , etc. 3,694 12,494 4,969 2,000 2,000 Anal tics Software 7,600 11,000 Citizen Serve 1,500 2,000 Dues/Subscriptions EDAM 4,750 4,650 18,890 5,623 3,442 550 600 Chamber 700 700 CMMA 350 350 MNCAR 350 500 IEDC - - Finance and Commerce 350 350 MN Marketing Partnership 800 - MAEDC 450 900 MPLS/ST Paul Business Journal 350 350 GROW MN/Salesforce License 600 600 Star Tribune 250 300 Miscellaneous Initiative Foundation 73,500 73,500 95,948 41,000 57,957 43,000 70,286 45,000 3,500 3,500 Wetland credit bank 60,000 60,000 Public Art 10,000 10,000 TOTAL SERVICES & CHARGES TRANSFERS OUT General Fund 205,200 46,000 214,500 48,000 r 46,000 48,000 TOTAL EDA EXPENDITURES REVENUES OVER/(UNDER) EXPENDITURES 254,363 136,402 246,887 130,683 288,476 159,388 A 434,950 A 456,000 A Page 220 of 381