DATE: July 22, 2021
TO: Northfield Economic Development Authority Board of Directors
FROM: Nate Carlson, Economic Development Coordinator
Mitzi Baker, Community Development Director
Ben Martig, City Administrator
Title
2022 Final EDA Budget & Presentation
Body
SUMMARY AND ACTION REQUESTED:
Review and make a motion to approve the final draft of the 2022 EDA Budget.
BACKGROUND:
Staff has prepared and presented a preliminary draft of the 2022 EDA budget for consideration by the EDA Board of Directors at the June Meeting. Budget spreadsheet and supporting documents are attached. The primary concern for the EDA is the yearly review of the EDA Funds (i.e. Fund 290, Fund 292, and Fund 293).
Following the June presentation, staff reviewed the levy request and found that there is a potential opportunity for the EDA to levy additional dollars in comparison to previous years.
Revenues
The EDA has traditionally requested maximum level allowed by Minnesota Statute of 0.01813 percent of taxable market value. The County Assessor typically provides an estimate of the next year's taxable market value in October. Until these estimates are received, staff is utilizing the 2021 certified levy as a baseline for budget forecasting. After reviewing previous years, the EDA has consistently estimated the growth in market value very conservatively. This resulted in several years of lost revenue by underestimating the potential increase in the levy. At the direction of City Administrator and Community Development Director. Staff is presenting an alternative budget for EDA consideration with an increase in the levy request.
Based on this information, the 2022 EDA levy would be approximately $295,700. In addition to the levy, the EDA receives additional revenue of approximately $25,500 from other sources. These include approximately $15,500 from interest on investments and $10,000 from interest payments on loans. A total of $321,105 in estimated revenues are includ...
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