Agenda - Economic Development Authority - 11/12/2003

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Line Item Clarification for Past and Present EDA Budgets By: Sean M. Sullivan, Economic Development / TIF Specialist Background: The EDA has made a recommendation to City Council to levy $200,078 for the year 2004. Council has accepted the preliminary budget and final budget approval for line items will be adopted in January. The budget amount will be certified by Anoka County in early December. Upon the request of the EDA, last year's budget and a proposed budget for 2004 has been provided with additional information for certain line items (See Exhibit). City Staff met with the Finance officer to clarify budget line items and get a better understanding on how the budget is put together. This information is provided to clarify how much money is being specifically spent. Any input or suggestions to the budget by the EDA would be helpful in providing a clear direction on what the EDA role will be in economic developmertt in the City of Ramsey. Observations: As indicated on the attachment provided, the budgeted and actual expenses differ from year to year. For example we had budgeted $81,000 for Miscellaneous Professional Services but it appears as if we will come in significantly lower than that figure for 2003. It would, however, not be prudent to budget an amount somewhat lower for this budget category because history shows us that the currently budgeted amount has been needed for prior years. Miscellaneous Operating Expenses has been broken down into more specific line items and it reflects how money was spent in the past and how it will be spent in 2004. A new budget item for this category is the Ramsey Messenger, which is a newsletter that is put out by City Staff to communicate with local businesses. Acceptance of this newsletter by the business community has been good and Staff looks forward to continuing the newsletter into the future. Line items for Utilities have been expanded to show more specifically what the dollars are being utilized for. Portions (approximately 5-7 percent each) of salaries for the Associate Planner positions and the City Administrator~ Position are billed to the EDA. This additional information provided to the EDA should help the EDA understand ho,w much money is being spent for certain services and functions. It should also give EDA members the confidence to discuss these numbers accurately when questioned by the general public. The budget provided is a draft of what is expected to happen in 2004. Budgets are finalized and adopted in January and things could change from now to then. It is important, however, to have the EDA be aware of what is coming for the next year so that i.nput can be received by staff from the EDA. There may be ideas formulated by the EDA that are overlooked by staff during the budget process that is why it is important to have the EDA review the budget and to comment on it. Recommendation: None. Review Checklist: City Administrator, Jim Norman Associate Planner, Megan Wald Finance Director, Diana Lund EDA: 11.12.03