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Case #1: . 2009 EDA Levy Economic Development Coordinator Sullivan reviewed that EDA budget is funded primarily through two sources: 1) proceeds from the sale of City/EDA owned property and 2) the EDA Levy. The resolution creating the EDA, which was adopted in 1998, requires that all levy recommendations by the EDA. be sent to the City Council for approval before any action is taken. Economic Development Coordinator Sullivan stated the EDA levy allows for 0.01813% of the taxable market value to be utilized. Last year the EDA levied $393,375 which was 95% of the maximum levy amount. This year the City Council has requested that the EDA reduce its . budget by $101,670 to account for the newly imposed levy limits imposed by the State of Minnesota. That request reduces the 2009 levy to $291,705 or 67.7% of the maximum levy. The estimated balance of the EDA fund will be $1,182,297 at the end of 2008. EDA levy funds could be spent on items such as vacant land purchases, redevelopment projects, monument signs and other economic development activities. Economic Development Coordinator Sullivan provided an overview of a 67.7% levy on a $150,000 home and a $200,000 home. He indicated included in the EDA packet is the EDA Budget Summary (2005 Actual- 2009 Proposed). City Administrator Ulrich stated that the City Council would like the tax capacity rate to remain close to the 39.25% rate; it is a balancing act to keep the rate low. He noted the City has had small growth in tax capacity, and values county-wide have increased approximately 1% in the past year. The EDA reviewed the EDA Budget Summary (2005 Actual- 2009 Proposed). Chairperson Riley questioned where the payments for the Allow Recovery Property are shown in the previous years' budgets. Finance Officer Lund explained that an internal transfer was done through the PIR Fund. The funds for the purchase were levied through the EDA and when the property tax came in that dollar amount was withheld and put into the PIR Fund. 2005 was the last year of the three year levy. Member Kiefer requested information regarding the revenue source titled HRA Levy. He noted that the HRA was spun off as a separate levy last year. Finance Officer Lund indicated this will be amended to state EDA Levy. Member Kiefer asked how utilities and the staff time of the Economic Development Coordinator are allocated between the EDA budget and the Community Development budget. Finance Officer Lund replied that the majority of the Economic Development Coordinator's time is spent with tax increment financing, and only a small portion of his staff time is allocated to the EDA. Regarding the utilities, there is a small electric bill that is allocated to the EDA for a business that was purchased through the EDA. Member Kiefer inquired about the electric utilities charges allocated to the Old Town Hall. Economic Development Authority/ September 4, 2008 Page 2 of7