Agenda - Economic Development Authority - 08/13/2015

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Economic Development Authority (EDA) Meeting Date: 08/13/2015 Submitted For: Diana Lund, Finance By: Diana Lund, Finance Title: 2016 Proposed EDA Budget & Levy 4. 5. Purpose/Background: Background: Annually, the EDA makes a recommendation to the City Council for the coming year's EDA budget and levy. The EDA levy is included within the City's general levy and calculates into the city's overall tax capacity rate. The City Council will be considering the City's preliminary levy in September. All budgets and levies are preliminary and will not become finalized until December 2015. The purpose of this case is to develop a recommendation from the EDA board to the City Council for the 2016 EDA levy. Notification: Observations/Alternatives: The primary source of revenue for the EDA budget is the EDA levy. Included in this case is a copy of the 2016 proposed EDA budget. Overall, the EDA budget is proposed to decrease from $204,301 (adopted 2015) to $90,018 for a net decrease of $114,283. The net decrease is attributed to shifting the allocation of personnel from the EDA budget to the General Fund. Moving forward, the EDA fund will not be assigned personnel costs. Below is an example of 2015 personnel assignments. The practice of split personnel allocations is being terminated to increase clarity and ability to understand the budget. EDA positions & funding percentages: - Assistant to City Administrator - 20% EDA Levy, 80% General Levy 2014 (100% General Levy 2015) - City Administrator — 20% EDA Levy, 80% General Levy 2014 (100% General Levy 2015) - Econ Dev Manager - 80% EDA Levy, 20% General Levy 2014 (100% General Levy 2015) - Comm Dev Director - 10% EDA Levy, 90% General Levy 2014 (100% General Levy 2015) Outside of the personnel item identified above, below are "highlights" of the EDA budget changes: 1. $10,440 added for training/ travel for Economic Development Manager. 2. Inflation and minor adjustments for various accounts. 3. Elimination of "Legal Fees Account, $1,500" and elimination of "Cell Phone Account, $700" 4. Addition of EDA "Marketing Budget, $3,500" Funding Source: EDA levy supports the EDA operating budget. Recommendation: Develop a recommendation from the EDA board to the City Council for the 2016 proposed EDA budget and levy. Action: