The URL can be used to link to this page

Home My WebLink About7. 2006/07 Tax Levy & Budget Adoption-Res. No. 2006-4 G. G.~, %1=-7 SHAKOPEE EDA Memorandum TO: EDA Chairman and Commissioners Mark McNeill, EDA Director FROM: Gregg Voxland, Finance Director RE: 2006/07 Tax Levy and Budget Adoption Resolution DATE: August 24, 2006 Introduction Attached is Resolution Number 2006-4 which requests the Shakopee City Council to consent to the tax levy for the EDA, levy a tax for the EDA and adopts the 2007 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. 2006-4 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 the EDA levy MSA 469.107. The proposed budget is attached with appropriations in the amount of $258,340. Included are the tax payments to Certainteed from the City and the County and the tax abatement payments for the Ryan project. Other costs included are $19,200 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 2006-4, A Resolution Setting The Tax Levy For 2006/07 By The Economic Development Authority For The City of Shakopee And Adopting The 200' Budget, and move its adoption. Gr~OXland Finance Director h:\budget07\budreS07 RESOLUTION NO. 2006-4 A RESOLUTION SETTING THE TAX LEVY FOR 2006/07 BY THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF SHAKOPEE AND ADOPTING THE 2007 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, the EDA may levy a tax with the consent of the governing municipality, and WHEREAS, the By-Laws of the EDA for 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 2007 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 2007 by the EDA and hereby requests the City Council of the City of Shakopee to consent to such levy. BE IT FURTHElR RH90LVHn, that th~ attached 2007 General Fund Budget be approved with total appropriations in the amount of $258,340. Adopted in session of the Shakopee Economic Development Authority for the Ci ty of Shakopee, Minnesota held this day of , 2006. Chairman ATTEST: Executive Director EDA FUND 2007 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 level for the EDA is proposed to change from 50% of the Assistant Administrator's time to a full-time Economic Development Coordinator thereby increasing salary and benefit costs. As a result, an increase in wage and benefit costs is anticipated. 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: Economic Development Specialist, charge-in from Administration. Professional Services: Legal $15,000, other professional services $22,870 Dues: $600 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 course.s sponsored by professional economic development associations mentioned above. Miscellaneous: . Certainteed Tax Abatement: $ 54,000 . Dean Lakes.Tax Abatement: , 44,000 $ 98,000 Transfer to City of Shakopee for general overhead $19,200. 2007 BUDGET EDA FUND BUDGET SUMMARY 2004 2005 2006 2007 Actual Actual Proposed Proposed Revenue Taxes $ 83,425 $ 75,979 $ 80,000 $ 80,000 Intergovernmental State Aid County (Tax abatement) 57,078 26,282 27,000 28,000 Charges for Service 5,200 5,200 Interest 6,650 6,920 5,000 6,000 Miscellaneous Total Revenue 147,153 114,381 112,000 119,200 Expenditures Personal Services 71,189 20,363 41 ,340 95,370 Supplies & Services 100,373 21,585 42,100 45,770 Downtown Fa<;ade Program 49,966 ADC Payment 57,531 Closed Certainteed Payment 51,528 51,000 54,000 Ryan Pmt 7,000 44,000 Total Expenditures 280,621 91,914 . 141 ,440 239,140 Excess (Deficiency) of -133,468 22,467 -29,440 (119,940) Revenues over Expenditures Transfers In 59,884 29,230 31,000 70,000 Transfers Out (3,273) (100,000) (19,200) Excess (Deficiency) Of Revenues over Expenditures & Transfers (76,857) (48,303) 1,560 (69,140) Fund Balance. December 31 $ 393,003 $ 344,700 $ 346,260 $ 277,120 R5509BUD LOGISOO1 CITY OF SHAKOPEE 8/10/2006 9;42:51 Fiscal Period: 6 / 06 Budget Report Page - 1 Level Of Rollup 7 2003 2004 2005 6/30/2006 2006 2007 2007 2007 Actual Actual Actual YTD Final Requested Approved Final m_____. H_9_bl:_ct._C;..c>~e / Description Amount Amount Amount Actual Budget Budget Budllet Budget 02190 EDA 4000 REVENUES AND EXPENDITURES 4001 REVENUES 4005 TAXES 4010 PROPERTY TAX 4011 CURRENT PROPERTY TAX 69,175- 68,813- 69,827- 33,870- 80,000- 80,000- 80,000- 80,000- 4012 DELINQUENT PROPERTY TAX 120- 739 181- 4015 FISCAL DISPARITIES 5,321- 11,973- 5,970- 3,191- 4020 MOBIL HOME TAX 2- 2- 1- 0- 4031 EXCESS TAX INCREMENT 48- 4040 AGGREGATE TAX 3,327- 4010 PROPERTY TAX 74,618- 83,425- 75,979- 37,062- 80,000- 80,000- 80,000- . 80,000- 4005 TAXES 74,618- 83,425- 75,979- 37,062- 80,000- 80,000- 80,000- 80,000- 4200 LICENSES AND PERMITS 4400 INTERGOVERNMENTAL 4450 STATE GRANTS & AIDS 4482. COUNTY GRANTS/AIDS 58,322- 57,078- 26,282- 13,741- 27,000- 28,000- 28,000- 28,OOOc 4450 STATE GRANTS & AIDS 58,322- 57,078- 26,282- 13,741- 27,000- 28,000- 28,000- 28,000- 4400 INTERGOVERNMENTAL 58,322- 57,078- 26,282- 13,741- 27,000- 28,000- 28,000- 28,000- 4500 CHARGES FOR SERVICE 4510 ADMINISTRATIVE CHARGES 4511 ADMINISTRATIVE CHARGES 5,200- 5,200- 5,200- 5,200- 4510 ADMINISTRATIVE CHARGES 5,200- 5,200- 5,200- 5,200- 4500 CHARGES FOR SERVICE 5,200- 5,200- 5,200- 5,200- 4830 MISCELLANEOUS 4832 INVESTMENT INCOME 4833 INTEREST 6,902- 6,650- 6,920- 4,162. 5,000- 6,000- 6,000- 6,000- 4832 INVESTMENT INCOME 6,902- 6,650- 6,920- 4,162. 5,000- 6,000- 6,000- 6,000- 4830 MISCELLANEOUS 6,902- 6,650- 6,920- 4,162- 5,000- 6,000- 6,000- 6,000- 4001 REVENUES 139,842- 147,153- 114,381- 54,965~ 112,000- 119,200- 119,200- 119,200- 6000 EXPENDITURES 6001 WAGES & BENEFITS 6002 WAGES 63,019 62,645 15,047 10,896 32,300 73,030 73,030 73,030 6005 OVERTIME-FT 54 6015 WAGES - PART TIMElTEMP 343 131 539 101 R5509BUD LOGIS001 CITY OF SHAKOPEE 8/10/2006 9;42:51 Fiscal Period:_ 6 I 06 Budget Repol! Page - 3 Level Of Rollup 7 2003 2004 2005 6/30/2006 2006 2007 2007 2007 Actual Actual Actual YTD Final Requested Approved Final Object Code / Description Amount Amount Amount Actual Budget Budget Budget Budget 6470 DUESITRAININGITRAVEL 6472 CONFERENCElSCHOOLlTRAINING 25 325 500 500 500 500 6475 TRAVEUSUBSISTENCE 161 20 500 500 500 500 6480 DUES 195 520 270 205 800 600 600 600 6490 SUBSCRIPTIONS/PUBLlCA TIONS 1,020 164 500 500 500 500 6470 DUESITRAININGlTRAVEL 1,215 709 756 225 2,300 2,100 2,100 2,100 6200 SUPPLIES AND SERVICES 15,113 100,374 21,585 3,396 42,100 45,770 45,770 45,770 6500 DEPRECIATION 6600 MISCELLANEOUS 6640 DESIGNATED MISCELLANEOUS 111,272 109,059 49,966 26,480 58,000 96,000 98,000 98,000 6600 MISCELLANEOUS 111,272 109,059 49,966 26,480 58,000 96,000 96,000 98,000 6800 DEBT SERVICE 6000 EXPENDITURES 201,068 280,622 91,914 44,406 141,440 239,140 239,140 239,140 8005 TOTAL TRANSFERS IN 6010 OPERATING TRANSFERS IN 52,950- 59,884- 29,230- 31,000- 70,000- 70,000- 70,000- 8005 TOTAL TRANSFERS IN 52,950- 59,864- 29,230- 31,000- 70,000- 70,000- 70,000- 8050 TOTAL TRANSFERS OUT 8052 TRANSFERS OUT 8053 TRANSFERS OUT 100,000 19,200 19,200 19,200 8056 OPERATING TRANSFER/CAPITAL FD 3,273 8052 TRANSFERS OUT 3,273 100,000 19,200 19,200 19,200 6050 TOTAL TRANSFERS OUT 3,273 100,000 19,200 19,200 19,200 4000 REVENUES AND EXPENDITURES 8,276 76,859 48,303 10,559- 1,560- 69,140 69,140 69,140 02190 EDA 8,276 76,859 48,303 10,559- 1,560- 69,140 69,140 69,140 EDA 2007 Budget 2190 2191 Object # Description Benefits Management Total 6002 Wages FT - Reg. 73,030 73,030 6005 Wages aT - Reg. - 6122 PERA 4,560 4,560 6124 FICA 5,590 5,590 6135 Health 8,960 8,960 6139 PEHP 300 300 6140 Life 190 190 6145 Dental 540 540 6170 Workers Camp 200 200 6180 Compensated Absences 2,000 2,000 6190 Retirement Benefit - Total Personnel 12,190 83,180 95,370 6210 Office Supplies 400 400 6215 Materials - 6240 Equipment Maintenance - 6300 Professional Services - 6310 Attorney 15,000 15,000 6327 Other Prof Services 22,870 22,870 6332 Postage 200 200 6334 Telephone 300 300 6336 Printing/Publishing 800 800 6338. Advertising 400 400 6350 Insurance - 6354 Property Insurance 1,700 1,700 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 600 600 6490 Subscriptions/Publications 500 500 6640 Designated Miscellaneous 98,000 98,000 Total Supplies & Services - 143,770 143,770 6740 Capital Expenditures - Total $12,190 $ 226,950 $ 239,140 2007 BUDGET Est. 2007 Pay 2007 With COl Inc Title/Description Step 3.0% FICA PERA EDA Position D $ 55,029 $ 4,210 $ 3,439 Charge in Comm Dev 14,000 1,071 875 Charge in Administration N/A 4,000 306 250 Total EDA $ 73,029 $ 5,587 $ 4,564