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HomeMy WebLinkAbout11-26-12 lt -i` iN HILLS Approved: January 28, 2013 CITY OF ARDEN HILLS, MINNESOTA SPECIAL ECONOMIC DEVELOPMENT AUTHORITY MEETING NOVEMBER 26,2012 6:00 PM—CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, President Grant called to order the Special Economic Development Authority meeting at 6:05 p.m. Present: EDA President David Grant; EDA Commissioners Brenda Holden, Fran Holmes,Nick Tamble, and Ed Werner Absent: None Also present: City Administrator Patrick Klaers; Director of Finance and Administrative Services Sue Iverson; and Community Development Director Jill Hutmacher 1. APPROVAL OF AGENDA MOTION: EDA Member Holden moved and EDA President Grant seconded a motion to approve the meeting agenda as presented. The motion carried unanimously (5-0). 2. NEW BUSINESS A. 2013 Proposed EDA Final Budgets City Administrator Klaers stated that in 2008, due to a negative fund balance, the decision was made to move EDA expenditures from the EDA Fund to the General Fund; but that in 2012, the EDA expenditures were moved from the General Fund back to the EDA Fund because the EDA fund balance had improved. The EDA General Fund is used for expenses such as staff time and overhead related to economic development activities; and in the past, revenue for this operation has come from a variety of sources such as excess revenue from TIF Districts, the PIR Fund transfer in 2012, and conduit debt revenue in 2012. In the short-term, the budget is in good condition, but staff has some concerns looking forward since funding sources from the TIF ARDEN HILLS SPECIAL EDA MEETING—NOVEMBER 26, 2012 2 District and the conduit debt fees will not be ongoing. For this reason, a new source of funding needs to be identified for this fund. Director of Finance and Administrative Services Iverson explained that the EDA General Fund was absorbed into the Planning Budget in 2008, but in looking back, that probably was not the right thing to do. She noted that the EDA is a separate authority, and it should have had its own budget; however, the EDA was not meeting regularly and the EDA Budget was not being closely monitored at that time. Director of Finance and Administrative Services Iverson discussed the three TIF Districts in the City. She noted that Cottage Villas is in TIF District #3 and that as of February 1, 2010, the City no longer has any obligations to pay the development and that only administrative costs have been planned for 2013. Presbyterian Homes is located in TIF District #4 and no increment has been received at this time since the district has not generated any income. She noted that the only budget in this fund is for administrative charges. She explained that Round Lake Office, TIF District#2, will decertify on December 31, 2015. EDA President Grant stated that the Round Lake revenues are smaller than he would expect. Director of Finance and Administrative Services Iverson explained that revenues regarding Round Lake fluctuate with the market value, and with the new exclusion, values decreased even more. Additionally, there was a tax appeal in 2012 on that property. She explained that when there is an appeal, the County withholds thirty percent of the revenue. When this appeal was settled in court, all the back taxes (plus interest) were taken out of the funds withheld by the County. EDA Commissioner Holden questioned what types of costs constitute the EDA expenditures. Director of Finance and Administrative Services Iverson stated that personal services includes a percentage of the salaries and benefits of the Community Development Director, the City Administrator, and the Director of Finance and Administrative Services. Materials and supplies include any office supplies, such as postage. She noted that other services and charges include consultant fees, auditing, memberships (EDAM, Rotary, North Metro Chamber, and St. Paul Chamber), and IT-related expenses, such as the Springbrook software. Capital outlay includes Gateway Signs. EDA Commissioner Holden inquired about the expenditure related to Gateway Signs since a sign has not been installed at this time. Director of Finance and Administrative Services Iverson stated that a $65,000 transfer was made for Gateway Sign expenditures out of the PIR Fund, and so far, only $5,050 has been used for costs incurred. She noted that the remainder of those funds will stay in the EDA reserves until it is spent and more money is needed. EDA Commissioner Holden questioned if a work plan has been created for the EDA. I� ARDEN HILLS SPECIAL EDA MEETING—NOVEMBER 26, 2012 3 City Administrator Klaers stated that the EDA will establish their work plan at their first meeting in 2013. EDA Commissioner Holmes inquired if objectives were considered by staff when the budget was established. Director of Finance and Administrative Services Iverson stated that as the budget document has evolved, the department directors have begun to consider their department's objectives in order to more accurately determine budget needs. She noted that the departmental objectives will be documented. EDA Commissioner Holmes questioned whether the objectives will be specific or general. She indicated that it would be her preference to be provided with specific objectives that can be discussed at the meeting. City Administrator Klaers stated that staff will be working on a list of EDA objectives that can be discussed at the first annual meeting in January. He noted that staff will be looking for the EDA's direction on the priority of the items on the list. He believes that the Round Lake TIF funds are important to deal with soon, so he foresees that to be high on the priority list. EDA President Grant stated that he feels staff is working hard to organize the EDA by cleaning up its by-laws, and by scheduling quarterly meetings. He understands that at this time, the EDA Budget is not as detailed as the City's Budget, but it is something that is being addressed. Director of Finance and Administrative Services Iverson stated that as of right now, the EDA only needs to approve the numbers in the budget. The budget document and narrative does not need to be approved until March of 2013, which allows the EDA time to establish a work plan. EDA Commissioner Holden indicated that she was concerned about passing a budget with only two objectives stated. Director of Finance and Administrative Services Iverson stated that because the EDA is a separate authority, the EDA would approve the budget and would recommend it to the City Council. The City Council would then approve it with the rest of the budget at the December Council meeting. MOTION: EDA Member Tamble moved and EDA President Grant seconded a motion to approve the 2013 Proposed EDA Final Budgets as presented. The motion carried (4-1) (Holden opposed). B. Amendments to Economic Development Authority By-Laws City Administrator Klaers stated that is was realized last year that the EDA by-laws were outdated; therefore, some proposed changes have been made to the language and content of the original by-laws which were approved on April 14, 1997. He noted some proposed changes in I �I ARDEN HILLS SPECIAL EDA MEETING—NOVEMBER 26, 2012 4 the duties for the positions of secretary and treasurer, and that the annual meeting date has been identified as the last Monday of the month in January of each year. City Administrator Klaers indicated that the new EDA by-laws call for a quarterly meeting on the last Monday in the months of January, April, July, and October, with meetings commencing at 5:30 p.m. He noted that the EDA may also meet as needed in special meetings, which may be called by the President, any two Commissioners, or by the Executive Director of the EDA. He stated that a red-lined copy of the proposed EDA by-laws is included in the packet for the EDA's review. EDA President Grant stated that he would like the by-laws to clearly state who the members are who constitute the EDA authority. He recommended that under section 1. entitled, "The Authority", there should be a sentence that reads, "The Board of Commissioners shall consist of the five members of the City Council". EDA Commissioner Tamble agreed with EDA President Grant and feels that the clarity of the members of authority needs to be better defined. EDA Commissioner Holden inquired about the approval of EDA minutes. She would like to know if the EDA or the City Council approves EDA minutes. City Administrator Klaers stated that he believes the EDA minutes should be approved by the EDA, but he did not include them in the agenda. EDA President Grant requested that the last set of EDA minutes be included on the next EDA agenda. EDA Commissioner Holden requested that the EDA meetings start at 6:00 p.m. rather than 5:30 p.m., and if needed, the EDA meetings could reconvene after the regular Council meeting. Director of Finance and Administrative Services Iverson stated that whatever is listed in the EDA by-laws will be considered the regular meeting days/times. If meetings deviate from that, it is considered a special meeting and must be posted as such. EDA President Grant directed staff to make the suggested changes and bring the EDA by-laws back to the next meeting. MOTION: EDA President Grant moved and EDA Commissioner Holden seconded a motion to table the Amendments to Economic Development Authority By- Laws as presented. The motion carried unanimously (5-0). 3. UNFINISHED BUSINESS None. 4. EDA MEMBER COMMENTS mmmmmmmmi ARDEN HILLS SPECIAL EDA MEETING—NOVEMBER 26, 2012 5 EDA Commissioner Tamble inquired if there has ever been any relationship or connectivity between the EDA and EDC because it seems like they might have some of the same objectives. EDA Commissioner Holden stated that she recalls that at one time, informative and attractive packets were created and distributed to the Arden Hills businesses as an EDC objective and the funds came out of the EDA budget. City Administrator Klaers noted that the EDA budget also funds the State of the City as an economic development related activity. 5. STAFF COMMENTS None. ADJOURN MOTION: EDA President Grant moved and EDA Commissioner Holden seconded a motion to adiourn the Special Economic Development Authority meeting. The motion carried unanimously (5-0). EDA President Grant adjourned the special Economic Development Authority meeting at 6:49 p.m. Patrick Klaers David Grant Secretary EDA President II �I I It, -A EN HILLS Request for Special Economic Development Authority (EDA) Meeting A special meeting may be called by the President of the EDA or by any two EDA Members. Reason for meeting: By-Laws and Review 2013 Budget Requested Date: 11/26/12 Requested time: 6:00 PM Open meeting X Closed meeting Signatur f person(s) making request: 11/19/12 President or EDA Member Date EDA Member Date -This section to be completed by City staff- Date received: 11/19/12 Date meeting to be held: 11/26/12 Time of meeting: 6:00 PM Location: Council Chambers, City Hall All necessary posting and notices have been completed. J2L, '=L i —kq L 1 / I -�'j / I -:)-- Signature of DepA Clerk Date City of Arden Hills * 1245 West Highway 96 Arden Hills,MN * 55112-5743 Phone 651.792.7800 + Fax 651.634.5137 www.ei.arden-hills.mn.us