The purpose of this case is to consider a revised recommendation for the proposed 2020 Preliminary EDA Budget and Levy. On September 3, 2019, the City Council met in work session to discuss the City's proposed 2020 Preliminary General Fund, EDA, and Debt Service Levies. Consensus of the City Council was to reduce the proposed increase overall (all 3 levies) from 6.77% to 6%, equating to a $91,000 decrease in the proposed budgets for 2020. The 6% increase generally represents recent growth in the community as well as inflation/consumer price index. Staff has identified an opportunity to reduce the EDA's Professional Services line item by $10,000 based on historical use, recent Staffing changes and expertise, as well as forecasted use. The proposed budget that is attached to this case is the budget originally proposed. With EDA's recommendation, Staff would revise this document to reflect the $10,000 decrease prior to forwarding to City Council by the end of September.

Annually, the EDA makes a recommendation to the City Council for the coming year's EDA budget and levy. The EDA levy is included within the City's general levy and calculates into the city's overall tax capacity rate. The City Council will be considering the City's preliminary levy in September. All budgets and levies are preliminary and will not become finalized until December 2019. Once the preliminary levy is set in September, it can only be lowered, not raised.

The purpose of this case is to develop a recommendation from the EDA to the City Council for the 2020 EDA levy.

Notification is not required.

Originally, Staff was only proposing a slight decrease to the EDA budget.  Staff still feels the existing EDA budget is adequate to meet the needs of the EDA in 2020. This recommendation is based on the following guidance.

• EDA Work Plan, the
• City Council Strategic Plan
• Potential efficiencies and process improvements
• General City Priorities
• Revenues from Application Fees

Major Accounts: Staff uses the 6249 account for various events (EDA Golf Tourney, EDA Business Expo, Fall Networking
Event, Minnesota Marketing Partnership.).  Staff uses the 6315 account for professional services (Ehlers, WSB, Hakanson Anderson, Briggs and Morgan, CMDC) for appraisals, site investigation, site concepts, tax runs, TIF runs, legal assistance, underwriting assistance, and supplemental staff as needed).  6246 is the marketing and advertising budget (graphic arts, pictures, ads, maps, ICSC, campaigns, marketing materials, marketing subscriptions, signs).

EDA levy supports the EDA operating budget.

Staff recommends that the City Council adopt the 2020 Preliminary EDA Budget and Levy with a reduction in budgeted professional services of $10,000.

Motion to recommend the City Council adopt the 2020 Preliminary EDA Budget and Levy with a reduction in budgeted professional services of $10,000.