DATE: August 25, 2016
TO: Northfield Economic Development Authority Board of Directors
FROM: Chris Heineman, Community Development Director
Title
2017 Draft EDA Budget
Body
SUMMARY AND ACTION REQUESTED:
Review the 2017 Draft EDA Budget and provide direction to staff on required changes to achieve a balanced budget for the 2017 calendar year.
BACKGROUND:
Staff has prepared a preliminary budget for consideration by the EDA Board of Directors at the August 25th EDA meeting. A budget spreadsheet and supporting documents will be presented at the meeting. The primary concern for the EDA is the impact of the full-time Economic Development Coordinator position on the general operating budget.
This position was also included in the 2016 EDA budget however a transfer from the City's General Fund in the amount of $36,500 was required to balance the EDA budget. This was approved by the City Council as a one-time transfer and no additional funding for the EDA is currently included in the City's preliminary budget for 2017.
The Economic Development Coordinator position will provide dedicated staff support to the EDA and demonstrates a strong commitment to economic development Northfield. In order for this level of staffing to be sustainable, the EDA must consider reductions to other expenditures such as professional services, the micro-grant program, partnership programs, or other projects to achieve a balanced budget. The following paragraphs include a brief description of the major revenue and expenditure areas for the EDA.
Revenues
The City Council has traditionally been asked to approve the maximum levy allowed by Minnesota Statute of 0.0183 percent of taxable market value. Based on the final 2016 approved budget, this will provide approximately $220,000 in revenue to the EDA. The EDA also receives approximately $15,000 in revenue from interest on investments and $10,000 per year from interest payments on loans through the revolving loan program. The ...
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