EDA Meeting Date: October 27, 2025
To: Members of the Economic Development Authority
From: Ben Martig, City Administrator
Title
Consider Approval of 2026 EDA Budget.
Body
Action Requested:
Staff recommends a motion to approve the 2026 Annual Budget.
BACKGROUND:
Staff has prepared a draft of the 2026 EDA budget for consideration by the EDA Board. The primary concern for the EDA is the yearly review of the EDA Funds (i.e. Fund 290, Fund 292, and Fund 293). The EDA approved the budget at the August meeting, however, this included feedback from the August EDA meeting.
Revenues
The City Council sets the annual property tax levy. The City Council has intent to set the EDA levy at the same level as 2025. The Council has been working to reduce the levy to a maximum of a 9.9% property tax levy overall from 2025 to 2026. The primary driver of the property tax levy increase was a 7.5% increase in the debt to fund the new ice arena project under construction scheduled to open in Fall of 2026.
The EDA has traditionally requested the maximum levy allowed by Minnesota Statute of 0.01813 percent of the previous year's taxable market value, which is based on the County-determined 2025 Estimated Market Value.
Based on this information, the maximum EDA levy could be $422,121. This represents a 6.6% increase from the approved levy of 2025, which is less than the 9% increase from the prior year. In addition to the levy, the EDA receives additional revenue from other sources such as investments and loan interest payments. Additionally, staff are presenting a transfer of $68,500 from reserves in 2026 to help pay for the redesign of the city's zoning code (Chapter 34 - Land Development Code of the Code of Ordinances). The redesign of the zoning code is designed to address ease of growing the tax base, building more homes, and is expected to be a shared cost between the HRA and EDA levies and the General fund levy ($200,000 budgeted total for the work). A total of $522,...
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