HomeMy WebLinkAbout08-12-2019486853v2 AMB MU205-13
Item No: 6.B.
Meeting Date: August 12, 2019
Type of Business: EDA Business
City Administrator Review: ______
City of Mounds View Staff Report
To: Mounds View Economic Development Authority
From: Mark Beer, Finance Director
Item Title/Subject: Resolution 19-EDA-329 Approving the Preliminary EDA Property
Tax Levy Request and Budget for Fiscal Year 2020
Previously the City’s economic development activities were funded with tax increment revenues.
These tax increment revenues were discontinued as required by state statute when the tax
increment districts were decertified. This left the City with limited resources to continue existing
business outreach, marketing, advertising, small scale incentives, property acquisitions,
professional services, and staff training and development. The EDA proposes to continue a levy of
$100,000 for 2020. The City’s EDA is requesting that the City Council levy on behalf of the EDA
$100,000 to support the above activities within the City of Mounds View. The EDA has been
authorized with joint powers of an Economic Development Authority (EDA) and a Housing and
Redevelopment Authority (HRA). The EDA may choose to establish either an EDA levy or an HRA
levy, or both, to fund the above activities. The proposed EDA budget of $238,130 is attached, there
will be changes as additional information becomes available.
Once this amount is set, the levy cannot be increased but can be lowered. A Truth-In-Taxation
meeting will be held December 2, 2019 at 6pm at City Hall. The final levy will be adopted on or
about December 9, 2019.
Respectfully submitted,
___________________________
Mark Beer, Finance Director
486853v2 AMB MU205-13
RESOLUTION NO. 19-EDA-329
MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF RAMSEY
STATE OF MINNESOTA
APPROVING THE PRELIMINARY EDA PROPERTY TAX LEVY REQUEST AND BUDGET
FOR FISCAL YEAR 2020
WHEREAS, the Mounds View Economic Development Authority may request the
establishment of a special benefit tax pursuant to Minnesota Statutes 469.107, Subdivision 1.
NOW, THEREFORE, BE IT RESOLVED, by the Mounds View Economic Development
Authority that there be and hereby requested a levy on the taxable property of the City of
Mounds View, Ramsey County, Minnesota for fiscal year 2020 a special benefit tax not to
exceed $100,000, which amount will be included in the City’s proposed levy and the proposed
EDA budget of $238,130 is adopted.
Adopted this 12th Day of August 2019.
______________________________
Carol A. Mueller, EDA President
(ATTEST)
______________________________
Nyle Zikmund, Executive Director
(SEAL)
8/6/2019 8:07 AM
2016 2017 2018 2019 2020 Change from 2019
Actual Actual Actual Budget Request Dollar Percent
EDA (Fund 230):
Revenues
3101 Tax collections - 95,591 100,215 100,000 100,000 - 0.00%
3610 Investment income - - - - - - 0.00%
3615 Interest received on notes 439 556 558 - - - 0.00%
3680 Other revenue - 3,000 - - - - 0.00%
3972 Transfers 125,331 129,498 133,543 135,563 138,130 2,567 1.89%
Total revenue 125,770 228,645 234,316 235,563 238,130 2,567 1.09%
Operating expenses
Housing and Economic Development (4650):
Personnel services
0100 Salaries, regular 7,459 7,674 60,860 95,853 112,851 16,998 17.73%
0150 Salaries, part-time 53,006 54,826 21,245 - - - 0.00%
0300 Social security 4,511 4,671 5,721 7,333 8,633 1,300 17.73%
0321 PERA 4,511 4,638 6,018 7,189 8,463 1,274 17.72%
0400 Group insurance 9,812 10,166 13,822 14,310 14,946 636 4.44%
0500 Workers compensation 465 415 362 680 813 133 19.56%
Total personnel services 79,764 82,390 108,028 125,365 145,706 20,341 16.23%
Materials & supplies
1600 Supplies, operating - - 45 400 360 (40) -10.00%
2100 Book & periodicals 139 139 139 200 200 - 0.00%
Total materials & supplies 139 139 184 600 560 (40) -6.67%
Contractual services
3030 Other professional services 9,915 5,071 20,186 36,703 30,738 (5,965) -16.25%
3420 Advertisements - - 780 1,500 1,500 - 0.00%
3430 Printing - - - 500 500 - 0.00%
3610 Memberships 595 415 720 710 710 - 0.00%
3630 Training & conferences 1,042 1,217 2,407 3,410 9,417 6,007 176.16%
3800 Mileage 265 - 156 350 350 - 0.00%
4800 Insurance 427 414 447 649 649 - 0.00%
5210 Housing improvement 559 1,909 2,341 50,000 23,000 (27,000) -54.00%
5220 Highway 10 redevelopment - - - 28,000 - (28,000) -100.00%
Total contractual services 12,803 9,026 27,037 121,822 66,864 (54,958) -45.11%
Capital outlays
9300 Business subsidies - - - 50,000 25,000 (25,000) -50.00%
Total expenditures 92,706 91,555 135,249 297,787 238,130 (59,657) -20.03%
Net change in fund balance 33,064 137,090 99,067 (62,224) - 62,224 -100.00%
Fund balance, beginning year 48,048 208,678 345,768 345,768 283,544 (62,224) -18.00%
Adj for land held for resale 127,566
Fund balance, end of year 208,678 345,768 444,835 283,544 283,544 - 0.00%
2020 Budget Summary
8/6/2019 8:10 AM
Fund: 230 EDA Revenues
Account Description 2017 2018 2019 2020 Description
3101 Tax revenue 100,000 100,000 100,000 100,000 EDA/HRA Levy
100,000 100,000 100,000 100,000
3972 Transfers 79,498 83,543 85,563 88,130 Transfers from TIF 5
50,000 50,000 50,000 50,000 Transfers from General Fund
129,498 133,543 135,563 138,130
229,498 233,543 235,563 238,130
Fund: 230 Department: 4650 Housing and Economic Development
1600 Supplies, operating 500 500 400 360 Misc office supplies
500 500 400 360
2100 Books & periodicals 200 200 200 200 Misc. reports & periodicals (Finance & Commerce)
200 200 200 200
3030 Other professional services 4,000 4,000 4,000 4,000 Legal fees for development reviews
5,000 5,000 5,000 5,000 Financial consultant fees (Ehlers)
14,500 14,500 14,500 14,500 Special project consultant fees
1,640 1,670 1,703 1,738 5% of audit (2019 - $34,065, 2020 - $34,745, 2021 - $35,440)
2,100 4,500 4,500 4,500 Loan Program and Energy Audit Consultant (CEE)
7,000 7,000 7,000 1,000 Marketing Consultant fees
34,240 36,670 36,703 30,738
3420 Advertising 1,500 1,500 1,500 1,500 Targeted advertisements.
1,500 1,500 1,500 1,500
3430 Printing 400 400 400 400 Property ad printing
100 100 100 100 Misc printing
500 500 500 500
3610 Memberships 400 400 400 400 Economic Development Assoc of MN (EDAM)
250 250 250 250 Twin Cities North Chamber of Commerce dues
60 60 60 60 MN Assoc. of Govt. Communicators (MAGC)
710 710 710 710
3630 Training & conferences 535 535 535 535 IEDC Conference Minneapolis
275 275 275 275 Ehlers Finance Seminar
600 600 600 600 EDAM summer conference
- - - 6,000 Development certification
2,000 2,000 2,000 2,007 Other miscellaneous training
3,410 3,410 3,410 9,417
3800 Mileage 350 350 350 350 Misc. mileage
4800 Insurance 649 649 649 649 Allocation of the City's property & liability insurance
649 649 649 649
5210 Housing programs - 50,000 50,000 23,000 Housing Improvement programs
- 50,000 50,000 23,000
5220 Highway 10 redevelopment 27,755 28,000 28,000 - Trailways & lighting in highway corridor, Gateway Signage
27,755 28,000 28,000 -
9300 Business loans/subsidies 50,000 50,000 50,000 25,000 Business improvement partnership loans/subsidies
50,000 50,000 50,000 25,000
119,814 172,489 172,422 92,424
438.73%43.96%-0.04%-46.40%