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2015.09.01 EDA Meeting PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL • REGULAR MEETING • TUESDAY, SEPTEMBER 1, 2015 6:45 P.M. CRYSTAL CITY HALL COUNCIL CHAMBERS Call to order 2. Roll call 3. Approval of minutes from the August 18, 2015 special meeting * 4. Consider a resolution adopting a proposed HRA tax levy for 2016 * 5. Other business 6. Adjournment * Materials attached Minutes of the Crystal Economic Development Authority Special Meeting August 18, 2015 President Peak called the special meeting of the Crystal. Economic Development Authority to order at 8:18 p.m. Upon call of the roll, the following members were present: Laura Libby, Casey Peak, Jim Adams, Julie Deshler, Jeff Kolb, and Olga Parsons. The following staff members were present: Anne Norris, Executive Director, John Sutter, Deputy Executive Director, Dan Olson, City Planner, and Troy Gilchrist, Attorney. Motion by Commissioner Kolb (Libby) to approve the minutes of the July 20, 2015 special meeting. Motion carried. The EDA held a public hearing to consider a resolution authorizing the sale of a lot at 4553 Yates Avenue North to Day Construction for new house construction. Mr. Olson presented the staff report. President Peak opened the public hearing. No one appeared and the hearing was closed. Motion by Commissioner Parsons (Deshler) to adopt Resolution #2015-9 authorizing the sale of a lot at 4553 Yates Avenue North to Day Construction for new house construction. Motion carried. Other business: Commissioner Deshler asked staff for an update on the former Thriftway property at 5717 West Broadway Motion by Commissioner Parsons (Deshler) to adjourn the special meeting. Motion carried. The meeting adjourned at 8:25 p.m. Casey Peak, President ATTEST: Elizabeth Dahl, Secretary C�S AL EDA STAFF REPORT Annual Resolution — 2016 HRA Levy FROM: John Sutter, Community Development Director DATE: August 27, 2015 TO: Anne Norris, Executive Director (for September 1, 2015 EDA meeting) SUBJECT: Consider a resolution adopting a proposed HRA tax levy for 2016 As part of the annual budgeting process, the EDA formally requests a Housing and Redevelopment Authority tax levy which would comprise part of its funding. The 2015 levy was $239,000 and the statutory maximum for 2016 is $268,981. To reduce pressure on the 2016 General Fund budget some staff costs have been shifted to the 2016 EDA budget. This reduces the amount of the annual levy available for EDA projects. However, the EDA fund balance ($3,225,301 at the beginning of 2015) is available for project expenditures as they arise. Staff has prepared five scenarios for consideration by the EDA board: 2016 Levy $ change % change Description $239,000 0 0 Results in a $11,400 deficit (fund balance used to pay for operations) $246,200 +$7,200 +3.01% Approximate parity with preliminary General Fund increase; results in a $4,200 deficit (fund balance used to pay for operations) $250,400 +$11,400 +4.77% Balanced EDA budget $260,000 +$21,000 +8-79% Results in a $9,600 surplus (increase in fund balance) $268,981 +$29,981 +12.54% Statutory maximum levy; results in a $18,581 surplus (increase in fund balance) EDA discussion of the desired levy amount and action on the attached resolution is requested. PAGE 1 OF 1 ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. RESOLUTION ADOPTING A PROPOSED 2016 BUDGET AND PROPERTY TAX LEVY AND REQUESTING THEIR APPROVAL BY THE CITY COUNCIL WHEREAS, the Economic Development Authority of the City of Crystal (the "EDA") undertakes redevelopment and housing activities in the City of Crystal, Minnesota (the "City"); and WHEREAS, pursuant to authority granted by Minnesota Statutes, Section 469.02 and the enabling resolution of the EDA, the EDA exercises all of the powers of a housing and redevelopment authority ("HRA") as described in Minnesota Statues, Section 469.001 to 469.047 (the "Act"); and WHEREAS, under Section 469.033 Subdivision 6 of the Act, an HRA is authorized to levy and collect special benefit taxes on all taxable property under the jurisdiction of the HRA, that is, property in the City; and WHEREAS, the permitted levy is 0.0185 percent of the estimated market value of the property in the City. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Crystal as follows: 1. The EDA hereby adopts a 2016 proposed budget for housing and redevelopment in the amount of $457,037. 2. The EDA hereby adopts a proposed property tax levy of $ for the purpose of funding the adopted budget in conformance with Section 469.033, Subdivision 6 of Minnesota Statutes. 3. The Executive Director is authorized and directed to transmit a certified copy of this Resolution to the City Council of the City of Crystal for its consent and approval as provided by Section 469.033 of the Act and for certification to the Property Tax Manager of Hennepin County. Adopted this day of , 2015. Casey Peak, President Anne Norris, Executive Director