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HomeMy WebLinkAbout12-08-14APPROVAL OF AGENDA APPROVAL OF MINUTES Minutes 09 -08 -14 MINUTES.PDF NEW BUSINESS UNFINISHED BUSINESS Approve EDA 2015 General Fund Budget Patrick Klaers, City Administrator Sue Iverson, Director of Finance and Administrative Services MEMO.PDF EDA MEMBER COMMENTS ADJOURN Chair: David Grant  Commissioners: Brenda Holden Fran Holmes Dave McClung Ed Werner Economic Development Authority  December 8, 2014 5:15 p.m. City Hall Address: 1245 W Highway 96 Arden Hills MN 55112 Phone: 651 -792 -7800 Website : www.cityofardenhills.org City Vision Arden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long -standing tradition as a desirable City in which to live, work, and play. Agenda CALL TO ORDER 1. 2. 2.A. Documents: 3. 4. 4.A. Documents: 5. Approved: CITY OF ARDEN HILLS, MINNESOTA SPECIAL ECONOMIC DEVELOPMENT AUTHORITY MEETING SEPTEMBER 8, 2014 5:15 PM – ARDEN HILLS CITY HALL CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, President Grant called to order the special Economic Development Authority meeting at 5:19 p.m. Present: EDA President David Grant; EDA Commissioners Brenda Holden, Fran Holmes, and Ed Werner Absent: EDA Commissioner Dave McClung (excused) Also present: Secretary Patrick Klaers; Executive Director Jill Hutmacher; Public Works Director Terry Maurer; City Planner Ryan Streff; Associate Planner Matthew Bachler; and City Clerk Amy Dietl 1. APPROVAL OF AGENDA MOTION: EDA Commissioner Holden moved and EDA President Grant seconded a motion to approve the agenda as presented. The motion carried unanimously (4-0). 2. APPROVAL OF MINUTES A. April 28, 2014 MOTION: EDA Commissioner Holden moved and EDA President Grant seconded a motion to approve the April 28, 2014, Economic Development Authority minutes as presented. The motion carried unanimously (4-0). 3. NEW BUSINESS A. Preliminary EDA 2015 General Fund Budget ARDEN HILLS SPECIAL EDA MEETING – SEPTEMBER 8, 2014 2 Secretary Klaers stated that the EDA is a blended component unit of the City of Arden Hills which makes EDA Funds Special Revenue Funds of the City. Annually the City is required by the State to set budgets for the City’s General Fund and all Special Revenue Funds (which includes all the EDA Funds). Secretary Klaers indicated that the EDA funds consist of the EDA General Fund, the EDA Revolving Loan Fund, the EDA TIF District #2 Round Lake, the EDA TIF District #3 Cottage Villas, and the EDA TIF District #4 Presbyterian Homes. Secretary Klaers stated that overall, the EDA General Fund is in good financial condition for 2014 with an estimated year-end reserve balance of $208,166; but the EDA and City Council need to identify dependable, reoccurring revenue for EDA activities in the future as the primary funding source of revenues from the Round Lake Road TIF District will be done in 2015. The other main reason the EDA General Fund is in good condition for at least 2014 is because of the transfer of conduit fees into this fund for operating expenses. Secretary Klaers commented that unless the EDA and City Council decide to change priorities, the expenses for economic development related activities will exist regardless of whether they are in the City General Fund budget or if they are in the EDA General Fund budget. Today, economic development expenses for personal services and for other services/charges are estimated to be in the $130,000 per year range. Secretary Klaers stated that the fund balance being projected at the end of the year includes funds that are intended to be used for gateway signs (approximately $90,000). Tax revenues are likely the only reoccurring source of funding for EDA activities. Staff is recommending that $30,000 in tax revenues for the EDA be part of the 2015 budget and that this amount be increased in future years as needed. Secretary Klaers reported that one funding option is to do an EDA levy. Another option is to do a transfer from the General Fund. The advantage of a levy is that funds being levied for EDA activities can be separated out when presenting the budget while still being part of the City’s overall levy amount. The key point is to make the spending of the funds transparent. Secretary Klaers asked for input on this item. He noted that the EDA will review the final budget at its October meeting. Commissioner Holmes did not support a special EDA levy. Secretary Klaers explained how the EDA levy would be a part of the General Fund tax levy. It was noted that the EDA levy would require separate approval by the EDA. MOTION: EDA Commissioner Holmes moved and EDA Commissioner Werner seconded a motion to approve the 2015 Proposed EDA Final Budgets as presented with no separate EDA tax levy. The motion carried unanimously (4-0). 4. ADJOURN ARDEN HILLS SPECIAL EDA MEETING – SEPTEMBER 8, 2014 3 MOTION: EDA President Grant moved and EDA Commissioner Holmes seconded a motion to adjourn the Economic Development Authority meeting. The motion carried unanimously (4-0). EDA President Grant adjourned the special Economic Development Authority meeting at 5:32 p.m. __________________________ __________________________ Jill Hutmacher David Grant Executive Director EDA President Page 1 of 3 DATE: December 8, 2014 TO: EDA Chair and Commissioners Patrick Klaers, EDA Secretary FROM: Sue Iverson, EDA Treasurer SUBJECT: Proposed EDA 2015 Budgets Background/Discussion The EDA is a blended component unit of the City of Arden Hills which makes EDA Funds Special Revenue Funds of the City. Annually we are required by the State to set budgets for the City’s General Fund and all Special Revenue Funds (which includes all the EDA Funds). These EDA Funds are: EDA General Fund EDA Revolving Loan Fund EDA TIF District #2 Round Lake EDA TIF District #3 Cottage Villas EDA TIF District #4 Presbyterian Homes The EDA discussed these budgets at its September 9, 2014 meeting. The City Council will approve the City’s overall budgets at the December 8, 2014 City Council meeting after the Truth-in-Taxation hearing. The following are the EDA budgets for approval: OLD BUSINESS – 4A MEMORANDUM Page 2 of 3 City of Arden Hills 2015 Budget Function: Economic Development Department: EDA General Fund Appropriation Detail Actual Actual Budget Amended Year To Date Proposed % Change Activity FY 2012 FY 2013 FY 2014 FY2014 09/04/2014 FY 2015 14 vs 15 Revenues Taxes 48,058 60,292 48,000 48,000 28,531 60,000 25.00% Intergovernmental - - - - - - 0.00% Miscellaneous 9,067 (2,698) 2,000 2,000 3,569 4,000 100.00% Other Financing Sources 189,955 30,000 50,000 50,000 - 30,000 -40.00% Total Revenues 247,080$ 87,595$ 100,000$ 100,000$ 32,100$ 94,000$ -6.00% Expenditures Total Personal Services 41,729 43,264 45,875 45,875 29,757 64,264 40.09% Total Materials and Supplies - 3,522 650 650 - 650 0.00% Other Service Charges 12,187 40,909 51,987 51,987 9,456 68,613 31.98% Capital Outlay 5,330 28,967 40,000 40,000 5,650 - -100.00% Total Expenditures 59,246$ 116,662$ 138,512$ 138,512$ 44,863$ 133,527$ -3.60% Fund Balance - January 1 109,642 297,476 268,409 268,409 268,409 229,897 Excess Revenue Over Expenditure 187,834 (29,067) (38,512) (38,512) (12,763) (39,527) Fund Balance - December 31 297,476$ 268,409$ 229,897$ 229,897$ 255,646$ 190,370$ City of Arden Hills 2015 Budget Function: Economic Development Department: EDA Revolving Fund Appropriation Detail Actual Actual Budget Amended Year To Date Proposed % Change Activity FY 2012 FY 2013 FY 2014 FY2014 09/04/2014 FY 2015 14 vs 15 Revenues Total Miscellaneous 1,275 (1,158) 1,300 1,300 2,054 2,500 92.31% Total Revenues 1,275$ (1,158)$ 1,300$ 1,300$ 2,054$ 2,500$ 92.31% Fund Balance - January 1 154,374 155,649 154,491 154,491 154,491 155,791 Excess Revenue Over Expenditure 1,275 (1,158) 1,300 1,300 2,054 2,500 Fund Balance - December 31 155,649$ 154,491$ 155,791$ 155,791$ 156,545$ 158,291$ City of Arden Hills 2015 Budget Function: Economic Development Department: EDA TIF District #2 Round Lake Office Park Appropriation Detail Actual Actual Budget Amended Year To Date Proposed % Change Activity FY 2012 FY 2013 FY 2014 FY2014 09/04/2014 FY 2015 14 vs 15 Revenue Taxes 340,032 358,332 250,000 250,000 159,920 350,000 40.00% Miscellaneous 2,140 2,530 200 200 1,346 200 0.00% Total Revenue 342,172$ 360,862$ 250,200$ 250,200$ 161,266$ 350,200$ 39.97% Expenditures Other Services and Charges 1,393 1,359 2,300 2,300 700 2,300 0.00% Capital Outlay - - 159,481 159,481 - 230,000 44.22% Operating Trans 286,698 1,311,504 284,772 284,772 279,423 285,350 0.20% Total Expenditures 288,091$ 1,312,863$ 446,553$ 446,553$ 280,122$ 517,650$ 15.92% Fund Balance - January 1 1,233,508 1,287,589 335,589 335,589 335,589 139,236 Excess Revenue Over Expenditure 54,081 (952,001) (196,353) (196,353) (118,856) (167,450) Fund Balance - December 31 1,287,589$ 335,589$ 139,236$ 139,236$ 216,733$ (28,214)$ Page 3 of 3 City of Arden Hills 2015 Budget Function: Economic Development Department: EDA TIF District #3 Cottage Villas Appropriation Detail Actual Actual Budget Amended Year To Date Proposed % Change Activity FY 2012 FY 2013 FY 2014 FY2014 09/04/2014 FY 2015 14 vs 15 Revenues Taxes 42,970 47,656 43,000 43,000 32,448 45,000 4.65% Intergovernmental - - - - - - 0.00% Miscellaneous 1,633 (2,511) 1,600 1,600 3,409 4,000 150.00% Total Revenues 44,603$ 45,144$ 44,600$ 44,600$ 35,857$ 49,000$ 9.87% Expenditures Other Services and Charges 1,484 1,059 4,700 4,700 700 4,700 0.00% Total Expenditures 1,484$ 1,059$ 4,700$ 4,700$ 700$ 4,700$ 0.00% Fund Balance - January 1 169,235 212,354 256,440 256,440 256,440 296,340 Excess Revenue Over Expenditure 43,119 44,086 39,900 39,900 35,157 44,300 Fund Balance - December 31 212,354$ 256,440$ 296,340$ 296,340$ 291,597$ 340,640$ City of Arden Hills 2015 Budget Function: Economic Development Department: EDA TIF District #4 Pres Homes Appropriation Detail Actual Actual Budget Amended Year To Date Proposed % Change Activity FY 2012 FY 2013 FY 2014 FY2014 09/04/2014 FY 2015 14 vs 15 Revenues Taxes - - 95,200 95,200 49,264 95,200 0.00% Intergovernmental - - - - - - 0.00% Miscellaneous - - - - - - 0.00% Total Revenues -$ -$ 95,200$ 95,200$ 49,264$ 95,200$ 0.00% Expenditures Total Materials and Supplies - - - - - - 0.00% Other Services and Charges 973 1,997 7,500 7,500 704 88,180 0.00% Capital Outlay - - - - - - 0.00% Total Operating Expenses 973 1,997 7,500 7,500 704 88,180 0.00% Total Expenditures 973$ 1,997$ 7,500$ 7,500$ 704$ 88,180$ Fund Balance - January 1 - (973) (2,970) (2,970) (2,970) 84,730 Excess Revenue Over Expenditure (973) (1,997) 87,700 87,700 48,560 7,020 Fund Balance - December 31 (973)$ (2,970)$ 84,730$ 84,730$ 45,591$ 91,750$ Requested Action Motion to approve the EDA 2015 budgets as presented and recommend approval to the City Council.