Agenda - Economic Development Authority - 08/25/2011 - Special Meeting

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Economic Development Authority (EDA) 4. 2. Meeting Date: 08/25/2011 By: Aaron Backman, Administrative Services Title: Recommendation for Approval of the 2012 EDA Levy Background: On November 28, 1998 the City Council approved a resolution creating the Economic Development Authority (EDA) for the City of Ramsey. The resolution gives all the statutory powers of an EDA to the Ramsey EDA. The EDA budget has been funded primarily through two sources: 1) the EDA Levy and 2) proceeds from the sale of City/EDA owned property (there is also a small amount of investment income). Based upon the City's market value, the City would be allowed to levy up to approximately $400,000. A significant portion of the levy can be used for personnel services and other operational costs, housing and/or redevelopment costs. The EDA levy can be used to buy property, professional services, marketing activities, and the like. City staff has prepared a draft FY2012 Economic Development Authority (EDA) budget and levy for consideration by the Ramsey EDA. The proposed 2012 Budget of $172,722 compares with a 2011 Budget of $291,705. This represents a reduction of $118,983 or 41 % year to year. It is a significant reduction from what was levied over the past three years for the Economic Development Authority Fund. In an effort to be as fiscally prudent as possible with City resources and to facilitate a balanced budget, staff is proposing this level of reduction in the levy. Observations: While this represents a sizeable reduction from FY2011, it should be noted that this level of funding does cover projected personal services, supplies, professional services and other expenses. If there was a sizeable capital outlay for land or buildings, the EDA would be required to tap into the EDA Fund. The Fund currently has approximately $1.2 million available. This also excludes resources that may be available from the various TIF Districts. It should be noted that the salary for the City's economic development position used to be funded primarily through the TIF Districts. Since FY2010 the position has been funded mostly by the EDA Fund. Funding Source: EDA Levy Staff Recommendation: Review draft 2012 EDA budget and levy. Provide feedback to staff in preparation for City Council action to set the preliminary levy by September 13, 2011. EDA Action: Approve proposed budget and levy and make recommendation to the City Council regarding the proposed 2012 EDA Budget and Levy. 2012 Requested EDA Budget Attachments Form Review Inbox Reviewed By Date Aaron Backman (Originator) Aaron Backman 08/19/2011 03:51 PM Form Started By: Aaron Backman Started On: 08/19/2011 02:26 PM Final Approval Date: 08/19/2011