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Home My WebLink About5.a. Approval of Port Budget EXECUTIVE SUMMARY Port Authority Regular Meeting: June 18, 2019 AGENDA ITEM: Approval of Port Authority Budget AGENDA SECTION: New Business PREPARED BY: Kim Lindquist, Deputy Director AGENDA NO. 5.a. ATTACHMENTS: 2020 Draft Budget, 2018 Budget Recap APPROVED BY: LJM RECOMMENDED ACTION: Motion to Approve the 2019 Port Authority Budget BACKGROUND Staff and the City Council have begun the budget development process. Staff has proposed a Port Authority budget that is consistent with previous budgets with the exception of additional marketing dollars included. The 2018 budget contained “additional marketing” dollars of $7,000. The current proposal is for $25,000. There has been discussion about creating marketing brochures for various direct mail and in-person visits, and this increase will permit creation of these brochures. 2019 Budget 2020 Proposed $110,800 $121,400 The other modification that occurred over the last year was inclusion of monies for the Retail Strategies contract. The final year of the contract starts February 2020 and is $40,000 instead of the previous $45,000. There are some other minor adjustments to the budget proposal such as a slight reduction in workers comp insurance and printing costs. Additionally, the budget continues to reflect that the Expo breaks even although there may be slight revenues in the future. While the Retail Strategies funding in included within the current budget, the Port Authority should discuss if the contact should be renewed for the 3rd year (starting February 2020). There has been some indication by members that a discussion about continued services should occur, particularly with hiring an in-house economic development employee. Waiving the last year of the contract requires a 30-day notice so the decision should be made by December 2019. Per the bylaws, the Port Authority is to receive a final reconciling of the prior year budget, which is also included in this item. The December 31st revenue and expense report indicates that spending was greater than anticipated as compared to the approved budget. For the most part, the additional costs incurred were for work associated with sale of the Canada Circle property, including engineering and legal fees. The costs came out of the budget and the revenues from the sale go into the Port Authority budget which as of May 31, 2019 stands at $350,795.75. RECOMMENDATION Staff recommends approval of the 2020 proposed Port Authority Budget. Page One 2020 BUDGET WORKSHEETS PORT AUTHORITY - REVENUES June 18, 2019 2020 2019 Object 2020 2016 2017 2018 Adopted Detail Proposed Account # Description Actual Actual Actual Budget Amount Budget Comments ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 201 31010.00 Current Ad Valorem Taxes $58,000 $58,000 $60,000 $105,000 $112,000 Operating Levy 201 31050.00 Tax Increments 0 0 0 0 0 Admin Fees Portion Only 201 32280.00 Fiber License Fees 2,000 1,150 600 1,200 1,200 _____________________________ 201 33130.00 Federal Grants-CDBG 0 0 0 0 0 _____________________________ 201 33425.00 Other State Grants & Aids 0 32,479 0 0 0 LCA Grant-Land/Bldg Acquisition 201 33620.00 Other County Grants & Aids 0 0 0 0 0 _____________________________ 201 34109.00 Other Charges for Services 0 2,560 10,175 8,000 8,000 Business Expo 201 36210.00 Interest Earnings - Investments 55 8 442 100 100 Interest Earned on CD's 201 36215.00 Interest Earnings 76 224 376 100 100 Checking Interest & Misc 201 36230.00 Contributions/Donations 0 0 0 0 0 _____________________________ 201 36260.00 Other Revenue 0 0 0 0 0 _____________________________ 201 36265.00 Use of Reserve Funds 0 0 0 0 0 _____________________________ 201 39101.00 Sales of General Fixed Assets 0 0 0 0 0 _____________________________ ------------------------------------------------------------------------------------------ FUND TOTALS $60,131 $94,421 $71,594 $114,400 $121,400 ====================================================== EXPENDITURES 2020 2019 Object 2020 2016 2017 2018 Adopted Detail Proposed Account # Description Actual Actual Actual Budget Amount Budget Comments ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- All Salary Costs Inclusive of Salary, Taxes, PERA & Benefits 201 46300 01 103.00 Part-Time Salaries & Benefits $5,752 $0 $0 $0 $0 Part-Time Intern 201 46300 99 103.00 Part-Time Salaries & Benefits 2,467 2,217 2,367 4,000 4,000 Port Authority Members 201 46300 01 219.00 Other Operating Supplies 0 0 6,361 8,000 8,000 Business Expo 201 46300 01 303.00 Engineering Fees 2,936 5,842 23,896 3,000 3,000 _____________________________ 201 46300 01 304.00 Legal Fees 3,261 0 5,651 4,000 4,000 _____________________________ 201 46300 01 317.00 General Fund Administrative Fees 6,000 6,000 6,000 6,000 6,000 Yearly Fee Per Policy F-3 201 46300 01 319.00 Other Professional Services 59,500 _____________________________ 201 46300 01 319.01 Project Management Consultant 0 0 0 2,000 2,000 _____________________________ 201 46300 01 319.02 Marketing - REDE - City Share 10,000 10,000 10,000 10,000 10,000 Greater MSP 201 46300 01 319.04 P/A Property Tax Payments 0 0 0 0 0 _____________________________ 201 46300 01 319.05 Other Consultants 700 165 9,083 2,000 2,000 Downtown Update 201 46300 01 319.06 Grant Reimbursement Expenses 0 14,655 0 0 0 _____________________________ 201 46300 01 319.07 Retail Strategies 0 0 0 45,000 40,000 _____________________________ 201 46300 01 319.08 Open to Business (OTB)0 0 0 5,500 5,500 _____________________________ 201 46300 01 322.00 Postage Costs 0 0 0 0 0 _____________________________ 201 46300 01 331.00 Travel Expense 0 13 0 0 0 _____________________________ 201 46300 01 349.00 Other Advertising 11,027 13,967 9,650 7,000 25,000 Additional Marketing Opportunities 201 46300 01 359.00 Other Printing & Binding Costs 637 0 0 900 200 _____________________________ 201 46300 01 365.00 Workers Comp Insurance 616 124 137 700 200 Commissioners 201 46300 01 369.00 Other Insurance 696 758 584 600 600 Property Insurance 201 46300 01 381.00 Electric Utilities 321 283 172 400 400 Business Park & Other Properties 201 46300 01 383.00 Gas Utilities 0 0 0 0 0 Other Properties 201 46300 01 389.00 Other Utility Services 0 0 0 2,000 1,000 Utility Fees / Fiber Maintenance 201 46300 01 403.00 Contracted Repairs & Maintenance 0 270 3,940 2,000 2,000 Contracts for Fiber 201 46300 01 433.00 Dues & Subscriptions 2,000 Prof Organizations/Journals 201 46300 01 433.01 Professional Organizations/Journa 1,671 920 495 2,000 2,000 _____________________________ 201 46300 01 433.02 Foreign Trade Zone Commission 0 0 0 0 0 _____________________________ 201 46300 01 437.00 Conferences & Seminars 1,428 2,384 2,631 5,000 5,000 Development/TIF/Miscellaneous 201 46300 01 439.00 Other Miscellaneous Charges 443 165 0 500 500 Contingencies 201 46300 01 521.00 Building & Structure Purchases 0 0 0 0 0 _____________________________ 201 46300 01 525.00 Building & Structure Purchases 24,979 0 0 0 0 _____________________________ 201 46300 01 530.00 Improvements Other Than Bldgs 0 0 16,313 0 0 _____________________________ 201 46300 01 710.00 Transfers 0 0 0 0 0 _____________________________ ------------------------------------------------------------------------------------------ FUND TOTALS $72,931 $57,763 $97,279 $110,600 $121,400 ====================================================== Page One 2020 BUDGET WORKSHEETS DOWNTOWN/BROCKWAY DISTRICT(0108) - REVENUES June 18, 2019 2020 2019 Object 2020 2016 2017 2018 Adopted Detail Proposed Account # Description Actual Actual Actual Budget Amount Budget Comments ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ 242 31010.00 Current Ad Valorem Taxes $0 $0 $0 $0 $0 MVHC Payments 242 31050.00 Tax Increments 794,268 832,533 863,105 850,000 870,000 __________________________ 242 33400.00 State Grants & Aids 0 0 0 0 0 __________________________ 242 33425.00 Other State Grants & Aids 0 0 0 0 0 __________________________ 242 33620.00 Other County Grants & Aids 0 0 0 0 0 __________________________ 242 36210.00 Interest Earnings - Investments 1,961 3,413 11,759 1,000 1,000 __________________________ 242 36215.00 Interest Earnings 539 287 656 0 0 __________________________ 242 36220.00 Rents & Royalties 0 0 0 0 0 __________________________ 242 36230.00 Other Revenue 0 0 0 0 0 __________________________ 242 36260.00 Contribution/Donation-Private 0 0 0 0 0 __________________________ 242 39101.00 Sale of General Fixed Assets 308,161 0 0 0 0 __________________________ 242 39310.00 Bond Proceeds 0 0 0 0 0 __________________________ ------------------------------------------------------------------------------------------------ FUND TOTALS $1,104,929 $836,233 $875,520 $851,000 $871,000 =================================================== EXPENDITURES 2020 2019 Object 2020 2016 2017 2018 Adopted Detail Proposed Account # Description Actual Actual Actual Budget Amount Budget Comments ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ 242 49042 01 303.00 Engineering Fees $0 $0 $0 $0 $0 __________________________ 242 49042 01 304.00 Legal Fees 0 0 116 0 0 __________________________ 242 49042 01 319.00 Other Professional Services 12,438 12,998 15,725 15,000 17,000 County TIF Charges 242 49042 01 522.00 Building & Structure Purchases 0 0 0 0 0 CDA-Dahn Property Purchase 242 49042 01 530.00 Improvements Other Than Buildings 0 63,169 0 0 0 __________________________ 242 49042 01 533.00 Improvements Other Than Buildings 0 0 0 0 0 __________________________ 242 49042 01 536.00 Improvements Other Than Buildings 0 0 0 0 0 Fiber in Business Park 242 49042 01 538.00 Improvements Other Than Buildings 0 0 0 0 0 TH 3 Turn Lane Improvements 242 49042 01 601.00 Principal on Waterford PAYG 67,894 73,422 78,217 80,000 85,000 Waterford Pay-As-You-Go 242 49042 01 611.00 Interest on Waterford PAYG 74,709 71,313 67,560 68,000 65,000 Waterford Pay-As-You-Go 242 49042 01 710.00 Transfers 500,000 550,000 600,000 600,000 600,000 P & I for 2008A & 2015A Issues ------------------------------------------------------------------------------------------------ FUND TOTALS $655,041 $770,902 $761,617 $763,000 $767,000 ===================================================