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Home My WebLink About5.D.1. 2003/04 Tax Levy and Budget Adoption Resolution s. O. \. SHAKOPEE EDA Memorandum TO: EDA Chairman and Commissioners Mark McNeill, EDA Director FROM: Gregg Voxland, Finance Director RE: 2003/04 Tax Levy And Budget Adoption Resolution DATE: August 27, 2003 Introduction Attached is Resolution Number 03-5 which requests the Shakopee City Council to consent to the tax levy for the EDA, levy a tax for the EDA and adopts the 2004 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: BRA 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. 03-5 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 $219,670. Included are the tax payments to ADC from the City and the County and also the tax abatement payments to Certainteed. 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 03-5, A Resolution Setting The Tax Levy For 2003/04 By The Economic Development Authority For The City of Shakopee And Adopting The 2004 Budget, and move its adoption. M Gre"gg Voxland Finance Director g:\budget04\budres04 RESOLUTION NO. 03-5 A RESOLUTION SETTING THE TAX LEVY FOR 2003/04 BY THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF SHAKOPEE AND ADOPTING THE 2004 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 wi th 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 2004 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 2004 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 2004 General Fund Budget be approved with total appropriations in the amount of $219,670. Adopted in session of the Shakopee Economic Development Authority for the City of Shakopee, Minnesota, held this day of September, 2003. Chairman ATTEST: Executive Director 2004 BUDGET EDA FUND BUDGET SUMMARY 2001 2002 2003 2004 Actual Actual Budaet Proposed Revenue Taxes $ 93,746 $ 74,377 $ 80,000 $ 80,000 Intergovernmental 355,242 65,307 40,000 61 ,780 State Aid 5,932 Charges for Service 5,200 Interest 29,039 25,783 20,000 20,000 Miscellaneous Total Revenue 483,959 170,667 140,000 161,780 Transfers 54,122 55,914 20,000 55,700 Total Revenue and Transfers 538,081 226,581 160,000 217,480 Expenditures Personal Services 60,988 65,574 71,430 71,520 Supplies & Services 240,131 30,639 27,500 30,670 ADC Payment 144,522 119,920 60,000 55,630 Certainteed Payment 61,850 Contingency Total Expenditures 445,641 216,133 158,930 219,670 Excess (Deficiency) Of Revenues over Expenditures & Transfers 92,440 1 0,448 1,070 (2,190) Fund Balance December 31 $ 390,832 $ 401,280 $ 391,902 $ 389,712 EDA FUND 2004 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 economYi 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. 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 lines items: Salaries: EDA Coordinator. Professional Services: Legal $20,000 Dues: $800 Membership dues for professional economic development associations such as the International Economic Development Council, Economic Development Association of Minnesota, and Mid-America Economic Development Council. Conference/School/Training: $500 Various conferences and training courses sponsored by professional economic development associations as outlined above. Miscellaneous: $121,850 ADC Telecommunications, Inc., Certainteed, local effort assistance. CITY OF SHAKOPEE EDA FUND 2004 BUDGET EDA FUND BUDGET SUMMARY 2001 2002 2003 2004 Actual Actual Budget Proposed Revenue Taxes $ 93,746 $ 74,377 $ 80,000 $ 80,000 Intergovernmental 355,242 65,307 40,000 72,620 State Aid 5,932 Charges for Service 5,200 Interest 29,039 25,783 20,000 20,000 Miscellaneous Total Revenue 483,959 170,667 140,000 172,620 Transfers 54,122 55,914 20,000 49,230 Total Revenue and Transfers 538,081 226,581 160,000 221,850 Expenditures Personal Services 60,988 65,574 71,430 71,520 Supplies & Services 240,131 30,639 27,500 26,300 ADC Payment 144,522 119,920 60,000 60,000 Certainteed Payment 61,850 Contingency Total Expenditures 445,641 216,133 158,930 219,670 Excess (Deficiency) Of Revenues over Expenditures & Transfers 92,440 10,448 1,070 2,180 Fund Balance December 31 $ 390,832 $ 401,280 $ 391,902 $ 394,082 R5509BUD .005 CITY OF .PEE 8.3 14:55:02 Fiscal Period: 7 / 03 Budget Report Page - 1 Level Of Rollup 7 2000 2001 2002 7/31/2003 2003 2004 2004 2004 Actual Actual Actual YTD Final Requested Approved Final Object Code / Description Amount Amount Amount Actual Budget Budget Budget Budget 02190 EDA 19 EDA 6000 EXPENDITURES 6001 WAGES & BENEFITS 6002 WAGES 48,740 51,666 57,152 35,423 61,290 61,490 61,490 61,490 6015 WAGES - PART TIME/TEMP 100 159 113 218 6002 WAGES 48,840 51,825 57,265 35,641 61,290 61,490 61,490 61 ,490 6100 BENEFITS 6122 PERA 2,505 2,685 3,160 1,965 3,390 3,400 3,400 3,400 6124 FICA 3,824 3,983 4,381 2,727 4,690 4,700 4,700 4,700 6135 HEALTH 1,275 375 7 6139 POST EMPLOYMENT HEALTH PLAN 300 175 300 300 300 300 6140 L1FE/L TD 251 291 267 181 260 70 70 70 6145 DENTAL 255 300 219 300 360 360 360 6170 WORKERS COMPENSATION 192 153 171 201 200 200 200 200 6180 COMPENSATED ABSENCES 534- 1,423 271- 1,000 1,000 1,000 1,000 6100 BENEFITS 7,514 9,164 8,308 5,476 10,140 10,030 10,030 10,030 6001 WAGES & BENEFITS 56,354 60,989 65,573 41,117 71,430 71,520 71,520 71,520 6200 SUPPLIES AND SERVICES 6201 SUPPLIES & SERVICES 6210 OFFICE SUPPLIES 776 106 135 400 400 400 400 6201 SUPPLIES & SERVICES 776 106 135 400 400 400 400 6300 PROFESSIONAL SERVICES 6310 ATTORNEY 44,757 6.399 7,071 3,096 20,000 15,000 15,000 15,000 6327 OTHER 229,051 19,005 165 5,000 5,000 5,000 6300 PROFESSIONAL SERVICES 44,757 235,450 26,077 3,261 20,000 20,000 20,000 20,000 6330 COMMUNICATIONS 6332 POSTAGE 32 100 100 100 100 6334 TELEPHONE 232 239 226 111 300 300 300 300 6336 PRINTING/PUBLISHING 52 14 19 300 300 300 300 6338 ADVERTISING 860 200 200 200 200 6330 COMMUNICATIONS 1,143 286 226 131 900 900 900 900 6350 INSURANCE 6352 LIABILITY 716 595 1,056 R5509BUD .S005 CITY OF.OPEE 8.3 14:55:02 Fiscal Period: 7 / 03 Budget Report Page - 2 Level Of Rollup 7 2000 2001 2002 7/31/2003 2003 2004 2004 2004 Actual Actual Actual YTD Final Requested Approved Final Object Code / Description Amount Amount Amount Actual Budget Budget Budget Budget 6354 PROPERTY 1,497 2,400 1,200 1,200 1,200 6350 INSURANCE 1,497 716 595 1,056 2,400 1,200 1,200 1,200 6400 RENTALS 6420 EQUIPMENT RENT 28 6435 OTHER RENT 1,500 1,700 1,500 1,500 1,500 1,500 1,500 6400 RENTALS 1,500 1,728 1,500 1,500 1,500 1,500 1,500 6470 DUES/TRAININGITRAVEL 6472 CONFERENCE/SCHOOLlTRAINING 430 165 395 500 500 500 500 6475 TRAVEUSUBSISTENCE 195 500 500 500 500 6480 DUES 1,575 750 485 800 800 800 800 6490 SUBSCRIPTIONS/PUBLICATIONS 317 736 1,224 85 500 500 500 500 6470 DUESITRAININGITRAVEL 2,322 1,846 2,104 85 2,300 2,300 2,300 2,300 6200 SUPPLIES AND SERVICES 51,996 240,131 30,637 4,532 27,500 26,300 26,300 26,300 6500 DEPRECIATION 6600 MISCELLANEOUS 6640 DESIGNATED MISCELLANEOUS 131,934 144,522 119,922 55,636 60,000 121,850 121,850 121,850 6600 MISCELLANEOUS 131,934 144,522 119,922 55,636 60,000 121,850 121,850 121,850 6800 DEBT SERVICE 6000 EXPENDITURES 240,284 445,642 216,133 101,285 158,930 219,670 219,670 219,670 19 EDA 240,284 445,642 216,133 101,285 158,930 219,670 219,670 219,670 02190 EDA 240,284 445,642 216,133 101,285 158,930 219,670 219,670 219,670 EDA 2004 Budget Business Unit Business Unit 2190 2191 Budget Object # Description Benefits Management Total 2003 Diff 6002 Wages FT - Reg. 9,220 52,270 61,490 61,290 200 6005 Wages aT - Reg. - - - 6122 PERA 510 2,890 3,400 3,390 10 6124 FICA 700 4,000 4,700 4,690 10 6135 Health - - 6139 PEHP 300 300 300 - 6140 Life 70 70 260 (190) 6145 Dental 360 360 300 60 6170 Workers Comp 200 200 200 - 6180 Compensated Absences 1,000 1,000 1,000 - 6190 Retirement Benefit - - Total Personnel 12,360 59,160 71,520 71,430 90 6210 Operating Supplies 400 400 400 - 6215 Materials 6240 Equipment Maintenance - - 6300 Professional Services - - 6310 Attomey 15,000 15,000 20,000 (5,000) 6327 Other 5,000 5,000 5,000 6332 Postage 100 100 100 - 6334 Telephone 300 300 300 - 6336 Printing/Publishing 300 300 300 - 6338 Advertising 200 200 200 - 6350 Insurance - - - 6354 Property Insurance 1,200 1,200 2,400 (1,200) 6400 Rentals - - 6420 Equipment Rent - 6430 Building Rent (IS FUND) - - 6435 Other 1,500 1,500 1,500 6472 Conf / School/Training 500 500 500 - 6475 Travel/Subsistence 500 500 500 6480 Dues 800 800 800 - 6490 Subscriptions/Publications 500 500 500 - 6640 Designated Miscellaneous 121,850 121,850 60,000 61,850 Total Supplies & Services - 148,150 148,150 87,500 60,650 6740 Capital Expenditures - Total $ 12,360 $ 207,310 $ 219,670 $158,930 $60,740 38.22%