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2022 EDA BudgetRichfield Economic Development Authority 2022 BUDGET 6700 Portland Avenue, Richfield Minnesota 55423 TABLE OF CONTENTS Page No. EDA Officials 4 Executive Director's Budget Message 5 General Fund: Budget Summary - General Fund 10 General Fund - Summary by Division 11 General Fund Revenue 12 EDA Administration 13 Kids At Home 14 Transformation Loans 15 Budget Resolutions: Resolution Approving Proposed 2022 Economic Development Authority Budget and Certifying the 2022 Tax Levy.17 Resolution Authorizing Revision of the 2021 Budget of the Economic Development Authority of Richfield 18 2 THIS PAGE WAS LEFT BLANK INTENTIONALLY 3 CITY OF RICHFIELD, MINNESOTA ANNUAL BUDGET ECONOMIC DEVELOPMENT AUTHORITY EDA COMMISSIONERS MARY SUPPLE - PRESIDENT COMMISSIONER - SUE SANDAHL COMMISSIONER - LEE OHNESORGE COMMISSIONER - ERIN VRIEZE DANIELS COMMISSIONER - MARIA REGAN GONZALEZ ADMINISTRATIVE STAFF JOHN STARK - EXECUTIVE DIRECTOR/COMMUNITY DEVELOPMENT DIRECTOR CHRIS REGIS - FINANCE DIRECTOR 4 August 16, 2021 Economic Development Authority Commissioners City of Richfield Dear Commissioners: In accordance with the bylaws of the Richfield Economic Development Authority (EDA), the EDA budget for January 1, 2022 to December 31, 2022 is submitted. A meeting on the proposed EDA budget will be held on August 16, 2021 at 7:00 p.m. Pursuant to State law, the EDA must certify the 2021 budget and the revenue required to be raised by an ad valorem property tax levy to the Hennepin County Auditor. The deadline for certification is December 27, 2021. A proposed 2022 tax levy must be submitted to the County Auditor on or before September 30, 2021. Any amendments to the proposed budget, which would increase the property tax levy, must be made prior to September 30, 2021 proposed levy certification deadline. No increases in the tax levy are permissible after that date, only reductions. Final certification of the EDA tax levy is part of the City’s budget process. The resolution to certify the 2022 budget and tax levy has been prepared based on the proposed budget. This resolution and a resolution revising the 2021 budget are located in the last section of this budget document. The proposed 2022 budget for the EDA consist of the following funds or programs: •$131,000 in funding to the Transformation Loan program. This programprovides a 15% forgivable loan for large-scale remodeling programs (valued at$50,000 or more) up to a maximum of $25,000 per household. It is estimatedthat this program will assist five to seven Richfield families make majorimprovements in their homes in 2021. Funding for 2021 has been revised toaccount for monies that were committed, but were not paid out in 2020, asprojects were not yet complete. •$100,000 in funding for the Apartment Remodeling program which providesforgivable loans for the rehabilitation of existing affordable housing located inmulti-family buildings. This program requires a dollar for dollar match bybuilding owners. Funding levels for 2021 have also been revised to accountfor monies that were committed, but were not paid out in 2020. •$96,500 for Business Development Activities, including the Small BusinessRevolving Loan Fund, the Displaced Business Grant and the Energy EfficientBusiness Grant. •The EDA will also fund participation in the Open to Business program,membership in the Richfield Chamber of Commerce and the EconomicDevelopment Association of Minnesota. Community Development Department Economic Development Authority 6700 PORTLAND AVENUE, RICHFIELD, MINNESOTA 55423-2599 Phone: 612.861.9760 FAX: 612.861.8974 www.richfieldmn.gov AN EQUAL OPPORTUNITY EMPLOYER 5 •Reimbursing the City for $71,020 in staff costs for administering all of theprograms funded by the EDA. •$136,465 is budgeted for the Kids@Home Program, the EDA’s award-winningrent assistance program that provides shallow rent subsidies and supportiveservices to families with children in a Richfield school. The program willprovide housing stability to 20 and 25 families in 2021 and 2022. Respectfully submitted, John Stark Executive Director JCS:mnp 6 THIS PAGE WAS LEFT BLANK INTENTIONALLY 7 GENERAL FUND 8 THIS PAGE WAS LEFT BLANK INTENTIONALLY 9 BUDGET SUMMARY - GENERAL FUND 2020 2021 2022AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget FUND BALANCE - JANUARY 1 534,985$ 380,615$ 621,847$ 589,247$ Revenues: Taxes: Current 553,281 529,790 529,790 551,250 Total Taxes 553,281 529,790 529,790 551,250 Intergovernmental 227,694 - - - Miscellaneous Revenues: Interest 4,073 250 250 250 Other Miscellaneous Revenues 2,100 2,100 2,100 12,100 Total Miscellaneous Revenues 6,173 2,350 2,350 12,350 Total Revenues 787,148 532,140 532,140 563,600 Expenditures: Personal Services 61,880 65,910 68,910 71,020 Other Services and Charges 638,406 332,340 495,830 479,640 Total Expenditures 700,286 398,250 564,740 550,660 Excess (Deficiency) of Revenues Over Expenditures 86,862 133,890 (32,600) 12,940 FUND BALANCE - DECEMBER 31 621,847$ 514,505$ 589,247$ 602,187$ 10 DEPARTMENT SUMMARY BY BUSINESS UNIT BUSINESS UNIT BUDGET 2022 REVISED 2021 BUDGET 2021 ACTUAL 2020 EDA GENERAL FUNDFUND: Community DevelopmentDEPARTMENT: Increase/ (Decrease) 2021 Budget/ 2022 Budget 478,713 256,100 297,570 283,190EDA General Fund $$$$10.58%99600 119,864 11,150 136,170 136,470Kids @ Home 1,123.95%99601 101,709 131,000 131,000 131,000Transformation Loans 0.00%99602 398,250 564,740 550,660700,286Community Development TOTAL $$$$38.27% REVENUES 787,148 532,140 532,140 563,600EDA General Fund $$$$5.91%99600 YEAR AMOUNT 2020 $700,286 2021 $398,250 2021R $564,740 2022 $550,660 $0 $200,000 $400,000 $600,000 $800,000 2020 2021 2021R 2022 E X P E N D I T U R E S YEAR EDA GENERAL FUND EXPENDITURES 11 EDA GENERAL FUNDFUND: DETAIL REVENUES BY BUSINESS UNIT CLASSIFICATIONS Community DevelopmentDEPARTMENT: BUDGET 2022 REVISED 2021 BUDGET 2021 ACTUAL 2020 EDA General Fund - 99600BUSINESS UNIT: Taxes 4005 467,331 529,790 529,790 551,250Current$$$$ 4010 2,354 - - - Delinquent 4025 83,596 - - - Fiscal Disparities 529,790 529,790 551,250553,281TaxesTotal$$$$ Intergovernmental Revenues 4212 227,694 - - - Federal Grants $$$$ - - - 227,694Intergovernmental Revenues Total $$$$ Miscellaneous Revenues 4607 4,073 250 250 250Investment Earnings $$$$ 4644 2,100 2,100 2,100 2,100Other Miscellaneous Revenues 4648 - - - 10,000Loan Repayment Revenue 2,350 2,350 12,3506,173Miscellaneous Revenues Total $$$$ EDA General Fund TOTAL 532,140 532,140 563,600787,148$$$$ 12 DETAIL EXPENDITURES BY BUSINESS UNIT CLASSIFICATIONS BUDGET 2022 REVISED 2021 BUDGET 2021 ACTUAL 2020 EDA GENERAL FUNDFUND: Community DevelopmentDEPARTMENT: EDA General Fund - 99600BUSINESS UNIT: Personal Services 6051 61,880 65,910 68,910 71,020Interdepartmental Labor $$$$ 65,910 68,910 71,02061,880Personal Services Total $$$$ Other Services & Charges 6103 16,485 13,750 13,250 13,650Professional Services -General $$$$ 6301 906 800 900 930Advertising & Publication 6305 - 640 640 640Subscriptions & Memberships 6403 422 - 450 450Postage 6511 399,020 175,000 213,420 196,500Rehab Loan Program 190,190 228,660 212,170416,833Other Services & Charges Total $$$$ 256,100 297,570 283,190478,713EDA General Fund TOTAL $$$$ 13 DETAIL EXPENDITURES BY BUSINESS UNIT CLASSIFICATIONS BUDGET 2022 REVISED 2021 BUDGET 2021 ACTUAL 2020 EDA GENERAL FUNDFUND: Community DevelopmentDEPARTMENT: Kids @ Home - 99601BUSINESS UNIT: Other Services & Charges 6103 10,300 10,600 10,600 10,900Professional Services -General $$$$ 6403 62 50 70 70Postage 6414 447 500 500 500Other Supplies 6504 104,225 -125,000 125,000Kids@Home Payments 6540 4,830 -- - Covid-19 11,150 136,170 136,470119,864Other Services & Charges Total $$$$ 11,150 136,170 136,470119,864Kids @ Home TOTAL $$$$ 14 DETAIL EXPENDITURES BY BUSINESS UNIT CLASSIFICATIONS BUDGET 2022 REVISED 2021 BUDGET 2021 ACTUAL 2020 EDA GENERAL FUNDFUND: Community DevelopmentDEPARTMENT: Transformation Loans - 99602BUSINESS UNIT: Other Services & Charges 6103 929 1,000 1,000 1,000Professional Services -General $$$$ 6511 100,780 130,000 130,000 130,000Rehab Loan Program 131,000 131,000 131,000101,709Other Services & Charges Total $$$$ 131,000 131,000 131,000101,709Transformation Loans TOTAL $$$$ 15 RESOLUTIONS 16 EDA RESOLUTION NO. RESOLUTION APPROVING PROPOSED 2022 ECONOMIC DEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE 2022 TAX LEVY BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Richfield, Minnesota as follows: Section 1. Section 2. Section 3. The budget for the Economic Development Authority General Fund of Richfield for the year 2022 in the amount of $550,660 is hereby ratified. The estimated gross revenue of the Economic Development Authority General Fund of Richfield from all sources, including general ad valorem tax levies as hereinafter set forth for the year 2022, and as the same are more fully detailed in the Executive Director’s official copy of the budget for the year 2022, in the amount of $563,600 is hereby approved. There is hereby levied upon all taxable property in the City of Richfield an ad valorem tax in 2021, payable in 2022 for the following purposes: Economic Development Authority $556,823 Section 4. A certified copy of this resolution shall be transmitted to the County Auditor. Adopted by the Economic Development Authority in and for the City of Richfield, Minnesota this 16th day of August, 2021. Mary B. Supple, President ATTEST: John Stark, Executive Director 17 EDA RESOLUTION NO. RESOLUTION AUTHORIZING REVISION OF THE 2021 BUDGET OF THE ECONOMIC DEVELOPMENT AUTHORITY OF RICHFIELD WHEREAS, Resolution No. 24 appropriated funds for personal services and other expenses for the Economic Development Authority for the year 2021, and WHEREAS, The Executive Director has requested a revision of the 2021 budget as detailed in the 2022 budget document. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of Richfield, Minnesota as follows: Section 1. That the 2021 appropriation for the Economic Development Authority General Fund is revised as follows: $166,490 increase Section 2. Estimated 2021 gross revenue of the Economic Development Authority General Fund from all sources, as the same is more fully detailed in the Executive Director’s official copy of the 2022 budget document, are hereby revised as follows: $0 no change Section 3. That the Executive Director bring into effect the provisions of this resolution. Adopted by the Economic Development Authority in and for the City of Richfield, Minnesota this 16th day of August, 2021. Mary B. Supple, President ATTEST: John Stark, Executive Director 18 THIS PAGE WAS LEFT BLANK INTENTIONALLY 19