Agenda - Economic Development Authority - 10/11/2012

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Economic Development Authority (EDA) 4. 7. Meeting Date: 10/11/2012 Submitted For: Patrick Brama By: Kurt Ulrich, Administrative Services Title: 2013 EDA Budget Background: As request at the September EDA meeting, Staff will be reviewing the proposed 2013 EDA budget. Observations: The primary source of revenue for the EDA budget is the EDA levy. Included in this case is a copy of the draft 2013 EDA budget, that was reviewed on September 6. Overall, the EDA draft budget as previously proposed was to decrease from 2012 to 2013 ($172,853 to $106,466). The reason for the decrease is the changed allocation of personnel costs. The decrease in proposed budget was attributed to the decrease in personnel costs related to the position of the deputy city administrator not being refilled and the funding of a new economic development/HRA position being 20% funded from the EDA versus 60% in 2012 The levy is based on the City's total taxable market value of the preceding year. For payable 2012, the City would be allowed a maximum levy of $321,996. 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. In summary, are two major items to consider when reviewing the EDA budget (1) operating expenses (2) personnel. (1) Operating Expenses include everything but City personnel. From 2012 to 2013 the budget remains nearly the same (slight increase). (2) Personnel includes City human resources (referenced as "Wages & Salaries" in the EDA budget). From 2012 to 2013 Wages & Salaries decreased from $103,742 to $35,086 ($ 68,656 difference). Note, the proposed reduction in the budgeted EDA "Wages and Salaries" line item does not reflect a reduction in the core functions of the EDA, it reflects a change in allocation of those functions (i.e. increased role from consultant and administrative staff). Included in this case is the EDA work plan and a detailed explanation of EDA expenses. Funding Source: NA Staff Recommendation: Amend the proposed 2013 EDA budget to fit the goals of the EDA board. EDA Action: Amend the proposed 2013 EDA budget to fit the goals of the EDA board.