7.1 EDSR 08-19-2024The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Economic Development Authority
Item Number
7.1
Meeting Date
August 19, 2024
Prepared By
Brent O'Neil, Economic Development Director
Item Description
2025 EDA Budget
Reviewed by
Cal Portner
Action Requested
Approve, by motion, the 2025 EDA budget and recommend the City Council include $427,000 in the
Preliminary Levy.
Background/Discussion
The proposed 2025 budget is very similar to the baseline budget for 2023, with similar activities and expenses
anticipated.
The total proposed expenditures increase from $434,950 to $456,000, a year-over-year change of $21,150.
The proposed levy would increase by a smaller amount, significantly due to stronger interest income than in
past budgets. The change in levy is $11,150, going from $415,950 to $427,000 in 2025. The proposed levy is
approximately 60% of the maximum authorized by statute.
Of two initiatives discussed at the July workshop, providing supplement funding in anticipation of future
property acquisition is not included in the proposed budget. The other item, exploration of a Destination
Market Designation (DMC), is included at $10,000. Work on a DMC may be done in conjunction with the Elk
River Area Chamber of Commerce.
Financial Impact
Adoption of the budget sets the 2024 expenditures at $456,000.
Mission/Policy/Goal
EDA bylaws state the budget be presented to the EDA and be considered for adoption in August.
Attachments
1. 2025 EDA Budget and Levy
2. 2025 EDA Budget Goals
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Dept:920-6210 - Economic Development Authority
Acct.2021 2022 2023 2024 2025
No.Actual Actual Actual BUDGET BUDGET
REVENUES:
3111 Property Taxes 362,164 360,527 392,447 415,950 427,000
3322 MV Credit 199 210 232
3621 Interest Income 1,396 13,333 51,185 15,000 25,000
3629 Miscellaneous Revenue 23,506 -
3949 Transfers In - HRA 3,500 3,500 4,000 4,000 4,000
TOTAL EDA REVENUES 390,765 377,570 447,864 434,950 456,000
EXPENDITURES:
PERSONAL SERVICES
4101 Regular Pay 83,612 93,298 115,979 123,900 130,800
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
TOTAL PERSONAL SERVICES 114,751 138,625 171,471 181,200 190,450
SUPPLIES
4201 Office Supplies 2,584 7,250 1,719 2,500 3,000
Office supplies 2,500 2,500
Computer equip 500
4212 Fuels & Lubes 80 55 - 50 50
Unleaded gas 50 50
TOTAL SUPPLIES 2,664 7,305 1,719 2,550 3,050
SERVICES & CHARGES
4304 Legal Fees 9,237 7,027 10,786 10,000 10,000
Misc.10,000 10,000
4319 Other Professional Services 7,590 - - 27,000 25,000
Consulting/Studies 27,000 25,000
-
4321 Telephone 430 12 - 400 400
Cell phone (2)400 400
4322 Postage 26 10 40 200 100
Marketing mailings 200 100
4331 Conferences/Schools 10,769 5,035 5,946 10,450 11,000
EDAM 2,500 1,500
Annual IEDC Conference - -
Chamber Events 500 500
MREJ 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
4349 Advertising/Marketing 44,780 27,367 30,914 67,200 73,600
Community Profiles 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 - -
Together Elk River Campaign 20,000 20,000
Energy City Program (rebates)2,500 1,000
2025 BUDGET DETAIL
Explanation/Detail of Supplies or Services
Page 13 of 33
MMP Partner Visits 2,500 1,000
Misc. Marketing 3,000 3,000
Destination Marketing Org. (DMO)/Chamber Partnership 10,000
4359 Publishing 312 225 1,070 350 1,000
Public notices, etc 350 1,000
4361 Insurance 220 164 93 250 250
Auto insurance 250 250
4404 Software Subscriptions - 13,026 11,100 15,000
Software/Licensing (Sketchup, etc.)2,000 2,000
Analytics Software 7,600 11,000
CitizenServe 1,500 2,000
4433 Dues/Subscriptions 3,694 12,494 4,969 4,750 4,650
EDAM 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
4440 Miscellaneous 18,890 5,623 3,442 73,500 73,500
Initiative Foundation 3,500 3,500
Wetland credit bank 60,000 60,000
Public Art 10,000 10,000
TOTAL SERVICES & CHARGES 95,948 57,957 70,286 205,200 214,500
TRANSFERS OUT 46,000 48,000
4721 General Fund 41,000 43,000 45,000 46,000 48,000
TOTAL EDA EXPENDITURES 254,363 246,887 288,476 434,950 456,000
REVENUES OVER/(UNDER) EXPENDITURES 136,402 130,683 159,388 - -
^^^^^
Page 14 of 33
Division:
Completed by:
Date:
Performance Measure 2021 Actual 2022 Actual 2023 Actual 2024 Estimated 2024 YTD 2025 Projected
Business Engagements (prev.
tracked more rigidly 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 $6,000,000
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
Performance Measures & Goals for 2025
Economic Development
Brent O'Neil
July 8, 2024
Division Goal Goal Objective/Task
Consider new programs that promote the community
image
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.
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.
Support Elk River's existing businesses through
relationship building, programmatic offerings, and high
quality city services
Continue to outreach to receive feedback on city factors impacting businesses including BRE visits and other
interactions. Provide technical assistance as necessary and through feedback ensure economic development
programs of the city are in line with business needs and utilization. Develop and modify programming by utilizing
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.
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.
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, the environmental division, and Energy City Commission.
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 development 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 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
development
Maximize and leverage city programs, MnDEED monies, Initiative Foundation, Sherburne County Revolving Loan
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
support ongoing community priorities and challenges.
Focus on transitioning TER's support of the 169 Redefine construction project to a traveler-based marketing
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
enjoyment. Consider ways to boost hotel and restaurant capacities in the city. Investigate implemenation of
Destination Marketing Organizations (DMOs).
Promote visitor attraction to Elk River
Identifies areas suitable for growth and how to best facilitate private investment. This can include studies to determine
how and when utility infrastructure can be inplemented as well as tools for brining more land on-line, inluding private
and public property.
Plan for new commercial and industrial growth areas
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