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Chairperson Riley reiterated that in June, the EDA's consensus was to keep the levy consistent. <br />We reduced it 38 percent the year before and wanted to keep everything the same for 2013. He <br />inquired if it makes sense to discuss both the levy and the budget at this time. <br />City Administrator Ulrich replied that they do go hand in hand. <br />Chairperson Riley stated that no increase or decrease was the consensus in June. <br />Member Wise stated that the budget is not really changing. It's shifting where personnel will be <br />paid out of. The EDA still has the same amount of money. <br />Mr. Ulrich stated that is essentially correct. If you just want to shift that from the HRA, the EDA <br />budget/levy will rise, and the HRA's will drop. One of the reasons for the shift is to keep the tax <br />capacity rate low and shift to the HRA as that does not affect the tax capacity rate. <br />Finance Director Lund stated that the tax capacity is 44.7% - last year it was 44.15 %. There is a <br />decrease in the market rate and she explained what that means in dollars. <br />Member Steffen inquired on the allocation of the EDA position — 60 percent goes down to 20 <br />percent — is that meaningful or just a shell game. He felt that 20 percent seems out of line. <br />Mr. Ulrich replied it is somewhat arbitrary in terms of how we determined it. It's not really <br />recorded time for time but a percentage of each person's time who works with the EDA is <br />devoted to the EDA budget. <br />Ms. Lund talked about TIF projects and stated that we could say 40 percent could come out of <br />TIF. <br />Member Steffen asked if there is a timeline to start advertising for this EDA/HRA position. <br />Mr. Ulrich responded that it would be a final decision made by the City Council and added that <br />we have not yet had the formal go -ahead by the Council. <br />Member LeTourneau commented on the overall functions of the EDA — it's about taking a look <br />at different opportunities we have created and it's about developing and it's about business, <br />revenue streams, etc. He pointed out he is a little uncomfortable because we have not done <br />anything formal in planning this so we do not have specifics where we would use the money. <br />His concern is that we have this money when we need it more than ever. Nothing is really <br />targeted — it looks like we will have real issues outside The COR. He added he is really excited <br />about all that is going on in The COR. One way to protect ourselves is we need to be proactive <br />on the levy side. We need to be able to move forward aggressively to bring in new businesses. <br />We need to have that tax levy we had last year to allow us to have resources we need to do the <br />work we need to do. <br />Motion by Member LeTourneau, seconded by Member Williams, to recommend that the tax levy <br />for the EDA be reflective of what it was last year. <br />Economic Development Authority /September 6, 2012 <br />Page 3 of 6 <br />