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<br />CASE # 1 <br /> <br />2007 EDA BUDGET <br />By: Sean M. Sullivan, Economic Development Coordinator <br /> <br />Background: <br /> <br />On November 28; 1998 the City Council approved a resolution creating an Economic <br />Development Authority (EDA) in the City of Ramsey. The resolution gives all the statutory <br />powers of an EDA and Housing and Redevelopment Authority (HRA) to the Ramsey EDA. <br /> <br />The EDA budget is funded primarily through two sources: 1) proceeds from the sale of City <br />/EDA owned property and 2) the EDA Levy. It is important for the EDA to have the ability to <br />make purchases of property, sometimes on short notice, so that it able to assemble properties in a <br />timely manner for redevelopment. Additionally, it is also important to have adequate funding in <br />order to utilize consulting tools for development and redevelopment. <br /> <br />The enabling resolution adopted in 1998 requires that all recommendations by the EDA be sent <br />to the City Council for approval before any action is taken. <br /> <br />Observations: <br /> <br />The 2006 adopted budget is attached. (See attached line item budget) It is anticipated that the <br />EDA will be involved in purchasing the KIH parcel in Gateway North Industrial Park in 2006. <br />The proposed 2007 budget uses the maximum EDA. This year is the same as last year, in the <br />fact that there are no levy limits imposed on cities. The EDA levy allows for 0.01813% (see <br />proposed levy below) of the taxable market value to be utilized. EDA levy funds could be <br />spent on items such as vacant land purchases, monument signs and other economic development <br />activities. It is the opinion of Staff that the increase in the Levy could be utilized to purchase and <br />redevelop more properties in the City of Ramsey. The success of our Community Revitalization <br />project and the positive public perception makes the choice to continue EDA involvement a very <br />rational move. <br /> <br />Levy by EDA approved by City Council <br />2006 (Pay 2007) Taxable Market Value $2,169,745,200 <br />Statutory Maximum Levv Rate 0.01813% <br />Maximum Levv Amount $393,374.80 <br />Tax Levy per Dollar of Market Value (Max. $ <br />Lew) 0.000181 <br />Tax Levy for $150,000 home $ 27.20 <br />Tax Levv for $200,000 home $ 36.26 <br /> $ <br />Hypothetical. Levy Amount(s) $ 100,000 150,000 <br /> $ <br />T ax Levy per Dollar of Market Value 0.000046 $0.000069 <br />Tax Levv for $150,000 home $ 6.91 $ 10.37 <br />Tax Levy for $200,000 home $ 9.22 $ 13.83 <br /> <br />-7- <br />