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Home My WebLink About6. Adoption of 2006 Budget and Tax Levy Resolution No. 2005-06 #G SHAKOPEE EDA Memorandum TO: EDA Chairman and Commissioners Mark McNeill, EDA Director FROM: Gregg Voxland, Finance Director RE: 2005/06 Tax Levy And Budget Adoption Resolution DATE: August 24, 2005 Introduction Attached is Resolution Number 2005-6 which requests the Shakopee City Council to consent to the tax levy for the EDA, levy a tax for the EDA and adopts the 2006 budget. Background There are two statutes under which a tax for the purposes of the EDA may be levied. The major differences as far as the levy is concerned are: HRA EDA 469.033 469.107 Levied by EDA City City consent yes yes Under City levy limit no yes MSA 469.107 has broader purposes allowed than 469.003 but the distinction is not clearly defined. Basically, the HRA levy '-' is for redevelopment. The EDA levy is for redevelopment and new development and is included under the city's levy limit. Resolution No. 2005-6 has been prepared with a levy of $20,000 under the HRA levy MSA 469.033 and $60,000 under the EDA levy MSA 469.107. Last year the levies were $20,000 under the HRA levy MSA 469.033 and $60,000 under theEDA levy MSA 469.107. The proposed budget is attached with appropriations in the amount of $141,440. Included are the tax payments to Certainteed from the City and the County and the tax abatement payments for the Ryan project. Other costs not included but borne by the General Fund of the City are utility costs, administrative overhead such as accounting and bill processing/payroll, publishing, postage, and other employee's time on related issues. The EDA needs to adopt a proposed maximum levy and budget amount by September 15 for certification to the County Auditor. That levy will be used for the tax notice mailed to property owners. Action Offer Resolution Number 2005-6, A Resolution Setting The Tax Levy For 2005/06 By The Economic Development Authority For The City of Shakopee And Adopting The 2006 Budget, and move its adoption. RESOLUTION NO. 2005-6 A RESOLUTION SETTING THE TAX LEVY FOR 2005/06 BY THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF SHAKOPEE AND ADOPTING THE 2006 BUDGET WHEREAS, the Economic Development Authority (EDA) in and for the City of Shakopee was created pursuant to Minnesota Statutes, Section 469.051 et seq., as amended, and WHEREAS, Section 469.107 states that for economic development purposes, the governing body of the municipality may levy a tax at the request of the EDA, and Section 469.033 states that for redevelopment purposes, theEDA may levy a tax with the consent of the governing municipality, and WHEREAS, the By-Laws of the EDAfor the City of Shakopee provides that a budget be prepared on an annual basis, NOW, THEREFORE, BE IT RESOLVED BY'THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF SHAKOPEE, MINNESOTA, that the EDA hereby requests the City Council of the City of Shakopee to levy a special tax of $60,000 pursuant to MSA 469.107 to be collected in 2006 for the EDA by the City of Shakopee. BE IT FURTHER RESOLVED, that the EDA levies a special tax of $20,000 pursuant to MSA 469.033 to be collected in 2006 by the EDA and hereby requests the City Council of the City of Shakopee to consent to such levy. BE IT FURTHER RESOLVED, that the attached 2006 General Fund Budget be approved with total appropriations in the amount of $141,440. Adopted in session of the Shakopee Economic Development Authority for the Ci ty of Shakopee, Minnesota, held this sixth day of September, 2005. Chairman ATTEST: Executive Director EDA FUND 2006' BUDGET ACTIVITY: Activity includes the operation of the Shakopee Economic Development Authority. The EDA's mission is to enhance the quality of life in Shakopee by expanding and strengthening the local economy; broadening the city's job base and increasing its revenue base through facilitating the preservation, expansion, creation and attraction of quality businesses and related jobs. Implement strategies and administer various programs (grants, loans, etc. ) to accomplish above activities. Staff must maintain EDA records and prepare materials for policy decisions by Commissioners. The Commission is comprised of the Mayor and City Council. Staffing levels for the EDA were changed in 2005 from a full-time Economic Development Coordinator to 50% of the Assistant to the City Administrator's time, thereby reducing salary and benefit costs. As a result, an increase in the need for outside professional services is anticipated and budgeted for 2006. Section 469.107 of the Minnesota Statutes states that the governing body may, at the request of the authority, levy a tax in any year for,the benefit of the authority. The tax must be not more than 0.01813 percent of taxable market value. OBJECT DESCRIPTION: Description of line items: Salaries: Charge-In from Administration $32,300 Professional Services: Legal $20,000, Other Prof Services $15,000 Dues: $800 Membership dues for professional economic development associations such as the International Economic Development Council and the Economic Development Association of Minnesota. Conference/School/Training: $500 Various conferences and training courses sponsored by professional economic development, associations mentioned above. Miscellaneous: . Certainteed Tax Abatement: $ 51,000 . Dean Lakes Tax Abatement: 7,000 $ 58,000 R5509BUD .005 CITY OF .PEE 8/2. 8:51 :01 Fiscal Period: 6 I 05 Budget Report Page - 1 Level Of Rollup 7 2002 2003 2004 6/30/2005 2005 2006 2006 2006 Actual Actual Actual YTD Final Requested Approved Final Object Code / Description Amount Amount Amount Actual Budget Budget Budget Budget 02190 EDA 19 EDA 4000 REVENUES AND EXPENDITURES 4001 REVENUES 4005 TAXES 4010 PROPERTY TAX 4011 CURRENT PROPERTY TAX 65,769. 69,175. 68,813- 34,735- 80,000- 80,000. 80,000- 80,000- 4012 DELINQUENT PROPERTY TAX 277 120- 739 4015 FISCAL DISPARITIES 9,480- 5,321- 11,973- 3,378. 4020 MOBIL HOME TAX 1- 2. 2. 0- 4031 EXCESS TAX INCREMENT 702- 48. 4040 AGGREGATE TAX 3,327- _____~____________ ._..____.___._.___.__~~__. .._ _.__._.________~_ ~.__.__.___.~___. ____.____._~__ _________~__.____ ._...______._______ _u____.._____________. 4010 PROPERTY TAX 75,676. 74,618. 83.425- 38,113- 80,000- 80,000. 80,000. 80,000. -------,.__...,--.---~ -..---.---..-.------ ----_.------- ------- ~---. 4005 TAXES 75,676. 74,618- 83.425- 38,113- 80,000- 80,000- 80,000- 80,000- 4200 LICENSES AND PERMITS 4400 INTERGOVERNMENTAL 4450 ST A TEGRANTS & AIDS 4482 COUNTY GRANTS/AIDS 64,008- 58,322- 57,078- 13,141- 32,620- 27,000- 27,000- 27,000- 4450 STATE GRANTS & AIDS 64,008- 58.322- 57,078- 13,141- 32,620- 27,000. 27,000- 27,000- 4400 INTERGOVERNMENTAL 64,008- 58,322- 57,078- 13,141- 32,620- 27,000- 27,000- 27,000- 4500 CHARGES FOR SERVICE 4510 ADMINISTRATIVE CHARGES 4511 ADMINISTRATIVE CHARGES 5,200- 5,200- 4510 ADMINISTRATIVE CHARGES 5,200. 5,200- 4500 CHARGES FOR SERVICE 5,200- 5,200- 4830 MISCELLANEOUS 4832 INVESTMENT INCOME 4833 INTEREST 25,783- 6,902- 6,650- 2,442 20,000- 5,000- 5,000- 5,000- 4832 INVESTMENT INCOME 25,783- 6,902- 6,650- 2.442 20,000- 5,000- 5,000- 5,000- 4830 MISCELLANEOUS 25,783- 6,902- 6,650- 2,442 20,000- 5,000- 5,000- 5,000. 4001 REVENUES 170,667- 139,842. 147,153- 54,012- 132,620- 112,000- 112,000- 112,000- 6000 EXPENDITURES 6001 WAGES & BENEFITS 6002 WAGES 57,152 63,019 62,645 4,739 64,920 32,300 32,300 32,300 6015 WAGES - PART TIME/TEMP 113 343 131 183 R5509BUD LOGIS005 CITY OF SHAKOPEE 8/24/2005 8:51 :01 Fiscal Period: 6 / 05 Budget Report Page - 2 Level Of Rollup 7 2002 2003 2004 6/30/2005 2005 2006 2006 2006 Actual Actual Actual YTO Final Requested Approved Final Object Code / Description Amount Amount Amount Actual Budget Budget Budget Budget 6002 WAGES 57,265 63,362 62,776 4,922 64,920 32,300 32,300 32,300 6100 BENEFITS 6122 PERA 3,160 3,497 3,257 270 3,590 1,790 1,790 1,790 6124 FICA 4,381 4,799 4,712 346 4,970 2,470 2,470 2,470 6135 HEALTH 28 3,120 585 4,240 4,240 4,240 6139 POST EMPLOYMENT HEALTH PLAN 300 304 301 38 300 150 150 150 6140 L1FEIL TO 267 281 278 22 300 150 150 150 6145 DENTAL 300 339 332 29 420 240 240 240 6170 WORKERS COMPENSATION 171 201 200 250 210 6180 COMPENSATED ABSENCES 271- 1,873 3,786- 1,000 6100 BENEFITS 8,308 11,321 8,413 1,539 10,790 9,040 9,040 9,040 6001 WAGES & BENEFITS 65,573 74,683 71,189 6,461 75,710 41,340 41,340 41,340 6200 SUPPLIES AND SERVICES 6201 SUPPLIES & SERVICES 6210 OFFICE SUPPLIES 135 42 33 400 400 400 400 6201 SUPPLIES & SERVICES 135 42 33 400 400 400 400 6300 PROFESSIONAL SERVICES 6310 ATTORNEY 7,071 11,289 11,459 2,024 15,000 20,000 20,000 20,000 6327 OTHER PROF SERVICES 19,005 275- 84,675 3,696 5,000 15,000 15,000 15,000 6300 PROFESSIONAL SERVICES 26,077 11,014 96,134 5,721 20,000 35,000 35,000 35,000 6330 COMMUNICATIONS 6332 POSTAGE 100 100 100 100 '../',. 6334 TELEPHONE 226 233 197 121 300 300 300 300 6336 PRINTING/PUBLISHING 0 53 387 38 300 300 300 300 6338 ADVERTISING 200 200 200 200 6330 COMMUNICATIONS 226 286 583 160 900 900 900 900 6350 INSURANCE 6352 LIABILITY 595 1,056 1,415 1,420 1,500 1,500 1,500 6350 INSURANCE 595 1,056 1,415 1,420 1,500 1,500 1,500 6400 RENTALS 6435 OTHER RENT 1,500 1,500 1,500 1,500 2,000 2,000 2,000 6400 RENTALS 1,500 1,500 1,500 1,500 2,000 2,000 2,000 . . . R5509BUD · .005 CITY OF .PEE 8/2.8:51:01 Fiscal Period: 6 1 05 Budget Report Page - 3 Level Of Rollup 7 2002 2003 2004 6/3012005 2005 2006 2006 2006 Actual Actual Actual YTD Final Requested Approved Final Object Code / Description Amount Amount Amount Actual Budget Budget Budget Budget 6470 DUES/TRAINING/TRAVEL 6472 CONFERENCElSCHOOLlTRAINING 395 25 50 500 500 500 500 6475 TRAVEL/SUBSISTENCE 43 500 500 500 500 6480 DUES 485 195 520 270 800 800 800 800 6490 SUBSCRIPTIONS/PUBLICATIONS 1,224 1,020 164 500 500 500 500 6470 DUES/TRAINING/TRAVEL 2,104 1,215 709 363 2,300 2,300 2,300 2,300 6200 SUPPLIES AND SERVICES 30,637 15,113 100,374 6,244 26,520 42,100 42,100 42,100 6500 DEPRECIATION 6600 MISCELLANEOUS 6640 DESIGNATED MISCELLANEOUS 119,922 111,272 109,059 211,850 58,000 58,000 58,000 6600 MISCELLANEOUS 119,922 111,272 109,059 211,850 58,000 58,000 58,000 6800 DEBT SERVICE 6000 EXPENDITURES 216,133 201,068 280,622 12,705 314,080 141,440 141,440 141,440 8005 TOTAL TRANSFERS IN 8010 OPERATING TRANSFERS IN 55,914- 52,950- 59,884- 29,230- 31,000- 31,000- 31,000- 8005 TOTAL TRANSFERS IN 55,914- 52,950- 59,884- 29,230- 31,000- 31,000- 31,000- 8050 TOTAL TRANSFERS OUT 8052 TRANSFERS OUT 8056 OPERATING TRANSFER/CAPITAL FD 3,273 8052 TRANSFERS OUT 3,273 8050 TOTAL TRANSFERS OUT 3,273 4000 REVENUES AND EXPENDITURES 10,448- 8,276 76,859 41,307- 152,230 1,560- 1,560- 1 ,560- 19 EDA 10,448- 8,276 76,859 41,307- 152,230 1,560- 1,560- 1,560- 02190 EDA 10,448- 8,276 76,859 41,307- 152,230 1,560- 1,560- 1,560- CITY OF SHAKOPEE EDA FUND 2006 BUDGET EDA FUND BUDGET SUMMARY 2003 2004 2005 2006 Actual Actual Proposed Proposed Revenue Taxes $ 74,618 $ 83,425 $ 80,000 $ 80,000 Intergovernmental State Aid County (Tax abatement) 58,322 57,078 32,620 27,000 Charges for Service Interest 6,901 6,650 20,000 5,000 Miscellaneous Total Revenue 139,841 147,153 132,620 112,000 Expenditures . Personal Services ' 74,683 71,189 75,710 41 ,340 Supplies & Services 15,113 100,373 26,520 42,100 Downtown Fa<(ade Program 50,000 ADC Payment 111,272 57,531 Closed Closed Certainteed Payment " 51,528 61,850 51,000 Ryan Abatement 7,000 Total Expenditures 201,068 280,621 214,080 141,440 Excess (Deficiency) of -61,227 -133,468 -81 ,460 -29,440 Revenues over Expenditures Transfers In - General Fund 52,950 59,884 29,230 31,000 Transfers Out - Revolving Loan Fund (3,273) (100,000) Excess (Deficiency) Of Revenues over Expenditures & Transfers (61,227) (76,857) (152,230) 1,560 Fund Balance December 31 $ 393,003 $ 316,146 $ 163,916 $ 165,476 EDA 2006 Budget 2190 2191 Object # Description Benefits Management Total 6002 Wages FT - Reg. - 32,300 32,300 6005 Wages aT - Reg. - 6122 PERA - 1,790 1,790 6124 FICA - 2,470 2,470 6135 Health 4,240 4,240 6139 PEHP 150 150 6140 Life 150 150 6145 Dental 240 240 6170 Workers Camp - - 6180 Compensated Absences - - 6190 Retirement Benefit - Total Personnel 4,780 36,560 41 ,340 6210 Operating Supplies / 400 400 6215 Materials - 6240 Equipment Maintenance - 6300 Professional Services - 6310 Attorney 20,000 20,000 6327 Other Prof Services 15,000 15,000 6332 Postage 100 100 6334 Telephone 300 300 6336 Printing/Publishing 300 300 6338 Advertising 200 200 6350 Insurance - 6354 Liability Insurance 1,500 1,500 6400 Rentals - 6420 Equipment Rent - 6430 Building Rent (IS FUND) - 6435 Other Rent 2,000 2,000 6472 Conf / School/Training 500 500 6475 Travel/Subsistence 500 500 6480 Dues 800 800 6490 Subscriptions/Publications 500 500 6640 Designated Miscellaneous 58,000 58,000 Total Supplies & Services - 100,100 100,100 6740 Capital Expenditures - Total $ 4,780 $ 136,660 $ 141 ,440 2006 BUDGET Est. 2006 Pay 2006 With COL Inc Title/Description Step 3.0% FICA PERA EDA Coordinator $ - $ - $ - Charge in Administration N/A 32,300 2,471 1,786 Total EDA $ 32,300 $ 2,471 $ 1,786 -