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EDA Agenda 08-12-2015 (Special Meeting)EDA SPECIAL MEETING Wednesday, August 12th, 2015 4:30 p.m. Academy Room - 505 Walnut Street, Monticello, MN Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy Hinz, James Davidson, Steve Johnson and Council members Tom Perrault and Lloyd Hilgart Staff. Executive Director Jeff O'Neill, Angela Schumann, Wayne Oberg 1. Call to Order. 2. Roll Call. 3. EDA/HRA Levy 4. Adjourn. EDA Agenda: 08/12/15 3. EDA /HRA Lew At the July 22nd workshop, the EDA directed staff to prepare background information on the levy for review in preparation for an upcoming August workshop with the City Council. Specifically, the EDA requested information on the following core areas: 1. Budget examples for priority projects or redevelopment areas 2. General operating budget expenses of the EDA, including 2016 proposed 3. Available existing financial resources of the EDA 4. Levy amounts /limits and budget /tax impact 5. Accountability and measurement metrics Information on each of the above is provided below. 1. Budget examples for priority projects or redevelopment areas Block 34 to -date: $1.713 M Block 34 estimates: $1.793 M+ Block 35 estimates CMV acquisition: $2,306,600 Block 52 estimates CMV acquisition: $1,565,500 Block 53 estimates CMV acquisition: $757,600 2. General operating budget expenses of the EDA, including 2016 proposed 2016 proposed operating budget of $128,801 3. Available existing financial resources of the EDA See spreadsheet. Assuming no inflation on budget expenditures: Sufficient annual revenue to fund operations through 2022 General fund can fund operations for 7 years 4. Recommendation on EDA or HRA Levy: a. EDA recommendation is a policy question b. Levy amounts /limits and budget /tax impact: EDA Levy: Limited to .01813 percent of the taxable market value in the City (a higher levy is permissible but subject to reverse referendum). For Monticello in 2015, the maximum authorized EDA levy is $274,410. HRA Levy: Limited to 0185% of taxable market value in the City. The maximum HRA levy authorized for 2015 in Monticello is $280,011. EDA Agenda: 08/12/15 Budget impact - $536 $553 $17 $300,000 SUMMARY OF CITY PROPERTY TAX LEVY - EDA LEVY $500,000 RESIDENTIAL $3,412 $106 $1,000,000 Current Levy $7,101 2015 What IF $21,174 What IF Add $681 Est Net Market Value Tax Net Tax Difference Total Levy Levy Increase % $135,000 $393 $405 $13 $175,000 $549 $566 $18 $225,000 $743 $767 $24 $250,000 $841 $868 $27 $275,000 $938 $968 $30 $300,000 $1,035 $1,069 $33 COMMERCIAL /INDUSTRIAL 2015 What IF Market Value Net Tax Net Tax Difference $100,000 $536 $553 $17 $300,000 $1,876 $1,937 $61 $500,000 $3,306 $3,412 $106 $1,000,000 $6,879 $7,101 $222 $3,000,000 $21,174 $21,855 $681 SUMMARY OF CITY PROPERTY TAX LEVY - HRA LEVY RESIDENTIAL 2015 What IF Est Net Market Value Tax Net Tax Difference $135,000 $175,000 $225,000 $250,000 $275,000 $300,000 COMMERCIAL /INDUSTRIAL Market Value $393 $406 $13 $549 $567 $18 $743 $768 $25 $841 $868 $28 $938 $969 $31 $1,035 $1,069 $34 2015 What IF Net Tax Net Tax Difference $100,000 $536 $554 $18 $300,000 $1,876 $1,938 $62 $500,000 $3,306 $3,414 $108 $1,000,000 $6,879 $7,105 $226 2 Current Levy What IF Add Total Levy Levy Increase % $ 8,535,000 $ 274,410 $ 8,809,410 3.2% $ 8,535,000 $ 280,011 $ 8,815,011 3.3% EDA Agenda: 08/12/15 $3,000,000 $21,174 $21,869 $695 5. Accountability and measurement metrics: 1. Filing of annual budget (required) 2. Joint meetings for purchase or sale of property (optional) 3. Approval for creation of a modifications of TIF districts (required) 4. End of year Economic Development Activities report (optional) 5. Work Plan ratification (required) 6. Employees are employees of the City 6. Wright County cities with levies: