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EDA 2023 BUDGETRICHFIELD ECONOMIC DEVELOPMENT AUTHORITY 2023 BUDGET 6700 PORTLAND AVENUE, RICHFIELD MINNESOTA 55423 1 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 2023 Economic Development Authority Budget and Certifying the 2023 Tax Levy. 17 Resolution Authorizing Revision of the 2022 Budget of the Economic Development Authority of Richfield 18 2 THIS PAGE WAS LEFT BLANK INTENTIONALLY 3 EDA COMMISSIONERS MARY SUPPLE - PRESIDENT COMMISSIONER - GORDON HANSON COMMISSIONER - LEE OHNESORGE COMMISSIONER - ERIN VRIEZE DANIELS COMMISSIONER - MARIA REGAN GONZALEZ ADMINISTRATIVE STAFF KUMUD VERMA - TREASURER/ FINANCE MANAGER MELISSA POEHLMAN - EXECUTIVE DIRECTOR/COMMUNITY DEVELOPMENT DIRECTOR 4 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 MAYOR MARIA REGAN GONZALEZ CITY COUNCIL SEAN HAYFORD OLEARY MARY SUPPLE SIMON TRAUTMANN BEN WHALEN CITY MANAGER KATIE RODRIGUEZ August 15, 2022 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, 2023 to December 31, 2023 is submitted. A meeting on the proposed EDA budget will be held on August 15, 2022 at 7:00 p.m. Pursuant to State law, the EDA must certify the 2022 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 28, 2022. A proposed 2023 tax levy must be submitted to the County Auditor on or before September 30, 2022. Any amendments to the proposed budget, which would increase the property tax levy, must be made prior to September 30, 2022 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 2023 budget and tax levy has been prepared based on the proposed budget. This resolution and a resolution revising the 2022 budget are located in the last section of this budget document. The proposed 2023 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 2023. Funding for 2022 has been revised toaccount for monies that were committed, but were not paid out in 2021, 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. •$86,500 for Business Development Activities, including the Small BusinessRevolving Loan Fund, the Displaced Business Grant and the Energy EfficientBusiness Grant in 2023. The 2022 funding for the Small Business RevolvingLoan Program has been eliminated while we work to hire an EconomicDevelopment Coordinator to focus on the creation of this program. •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. 5 •The EDA provides $102,710 in 2022 for staff costs to administer all of itsprograms and $114,100 in 2023. This includes a new EconomicDevelopment Coordinator position. •$138,300 is budgeted for the Kids@Home Program, the EDA’s award-winningrent assistance program that provides shallow rent subsidies and supportiveservices to families with children in a Richfield school. The program willprovide housing stability to 20 and 25 families in 2022 and 2023. Respectfully submitted, Melissa Poehlman Executive Director 6 THIS PAGE WAS LEFT BLANK INTENTIONALLY 7 GENERAL FUND 8 THIS PAGE WAS LEFT BLANK INTENTIONALLY 9 BUDGET SUMMARY - GENERAL FUND 2021 2022 2023AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget FUND BALANCE - JANUARY 1 621,847$ 589,247$ 792,458$ 806,298$ Revenues: Taxes: Current 536,357 551,250 551,250 567,790 Total Taxes 536,357 551,250 551,250 567,790 Intergovernmental - - - - Miscellaneous Revenues: Interest 660 250 - - Other Miscellaneous Revenues 2,100 12,100 14,930 17,100 Total Miscellaneous Revenues 2,760 12,350 14,930 17,100 Total Revenues 539,117 563,600 566,180 584,890 Expenditures: Personal Services 67,764 71,020 102,710 114,100 Other Services and Charges 300,742 479,640 449,630 470,790 Total Expenditures 368,506 550,660 552,340 584,890 Excess (Deficiency) of Revenues Over Expenditures 170,611 12,940 13,840 - FUND BALANCE - DECEMBER 31 792,458$ 602,187$ 806,298$ 806,298$ 10 DEPARTMENT SUMMARY BY BUSINESS UNIT BUSINESS UNIT BUDGET 2023 REVISED 2022 BUDGET 2022 ACTUAL 2021 EDA GENERAL FUNDFUND: Community DevelopmentDEPARTMENT: Increase/ (Decrease) 2022 Budget/ 2023 Budget 197,344 283,190 247,080 315,590EDA General Fund $$$$11.44%99600 104,014 136,470 113,000 138,300Kids @ Home 1.34%99601 67,148 131,000 192,260 131,000Transformation Loans 0.00%99602 550,660 552,340 584,890368,506Community Development TOTAL $$$$6.22% REVENUES 539,117 563,600 566,180 584,890EDA General Fund $$$$3.78%99600 YEAR AMOUNT 2021 $368,506 2022 $550,660 2022R $552,340 2023 $584,890 $0 $200,000 $400,000 $600,000 $800,000 2021 2022 2022R 2023 E X P E N D I T U R E S YEAR EDA GENERAL FUND EXPENDITURES 11 EDA GENERAL FUNDFUND: DETAIL REVENUES BY BUSINESS UNIT CLASSIFICATIONS Community DevelopmentDEPARTMENT: BUDGET 2023 REVISED 2022 BUDGET 2022 ACTUAL 2021 EDA General Fund - 99600BUSINESS UNIT: Taxes 4005 452,042 551,250 551,250 567,790Current$$$$ 4010 (378)-- - Delinquent 4025 84,693 -- - Fiscal Disparities 551,250 551,250 567,790536,357TaxesTotal$$$$ Miscellaneous Revenues 4607 7,030 250 -- Investment Earnings $$$$ 4609 (6,370)- - - Change in Fair Value 4644 2,100 2,100 2,700 2,100Other Miscellaneous Revenues 4648 -10,000 12,230 15,000Loan Repayment Revenue 12,350 14,930 17,1002,760Miscellaneous Revenues Total $$$$ EDA General Fund TOTAL 563,600 566,180 584,890539,117$$$$ 12 DETAIL EXPENDITURES BY BUSINESS UNIT CLASSIFICATIONS BUDGET 2023 REVISED 2022 BUDGET 2022 ACTUAL 2021 EDA GENERAL FUNDFUND: Community DevelopmentDEPARTMENT: EDA General Fund - 99600BUSINESS UNIT: Personal Services 6051 67,764 71,020 102,710 114,100Interdepartmental Labor $$$$ 71,020 102,710 114,10067,764Personal Services Total $$ $$ Other Services & Charges 6103 6,616 13,650 13,650 12,970Professional Services -General $$$$ 6301 302 930 930 930Advertising & Publication 6305 - 640 640 640Subscriptions & Memberships 6403 - 450 450 450Postage 6511 122,662 196,500 128,700 186,500Rehab Loan Program 212,170 144,370 201,490129,580Other Services & Charges Total $$ $$ 283,190 247,080 315,590197,344EDA General Fund TOTAL $$ $$ 13 DETAIL EXPENDITURES BY BUSINESS UNIT CLASSIFICATIONS BUDGET 2023 REVISED 2022 BUDGET 2022 ACTUAL 2021 EDA GENERAL FUNDFUND: Community DevelopmentDEPARTMENT: Kids @ Home - 99601BUSINESS UNIT: Other Services & Charges 6103 10,600 10,900 10,900 11,200Professional Services -General $$$$ 6403 85 70 100 100Postage 6414 204 500 2,000 2,000Other Supplies 6504 93,125 125,000 100,000 125,000Kids@Home Payments 136,470 113,000 138,300104,014Other Services & Charges Total $$ $$ 136,470 113,000 138,300104,014Kids @ Home TOTAL $$ $$ 14 DETAIL EXPENDITURES BY BUSINESS UNIT CLASSIFICATIONS BUDGET 2023 REVISED 2022 BUDGET 2022 ACTUAL 2021 EDA GENERAL FUNDFUND: Community DevelopmentDEPARTMENT: Transformation Loans - 99602BUSINESS UNIT: Other Services & Charges 6103 433 1,000 1,000 1,000Professional Services -General $$$$ 6511 66,715 130,000 191,260 130,000Rehab Loan Program 131,000 192,260 131,00067,148Other Services & Charges Total $$ $$ 131,000 192,260 131,00067,148Transformation Loans TOTAL $$ $$ 15 RESOLUTIONS 16 EDA RESOLUTION NO. RESOLUTION APPROVING PROPOSED 2023 ECONOMIC DEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE 2023 TAX LEVY BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Richfield, Minnesota as follows: Section 1. The budget for the Economic Development Authority General Fund of Richfield for the year 2023 in the amount of $584,890 is hereby ratified. Section 2. 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 2023, in the amount of $584,890 is hereby approved. Section 3. There is hereby levied upon all taxable property in the City of Richfield an ad valorem tax in 2022, payable in 2023 for the following purposes: Economic Development Authority $579,096 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 15th day of August, 2022. Mary B. Supple, President ATTEST: Melissa Poehlman, Executive Director 17 EDA RESOLUTION NO. RESOLUTION AUTHORIZING REVISION OF THE 2022 BUDGET OF THE ECONOMIC DEVELOPMENT AUTHORITY OF RICHFIELD WHEREAS, Resolution No. 33 appropriated funds for personal services and other expenses for the Economic Development Authority for the year 2022, and WHEREAS, The Executive Director has requested a revision of the 2022 budget as detailed in the 2023 budget document. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of Richfield, Minnesota as follows: Section 1. That the 2022 appropriation for the Economic Development Authority General Fund is revised as follows: $1,680 increase Section 2. Estimated 2022 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 2023 budget document, are hereby revised as follows: $2,580 increase 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 15th day of August, 2022. Mary B. Supple, President ATTEST: Melissa Poehlman, Executive Director 18 THIS PAGE WAS LEFT BLANK INTENTIONALLY 19