Economic Development Authority- Alison Bong, Deputy Finance Director
Title
Title
Authorize The Blaine Economic Development Authority, Having All The Powers Of A Housing Redevelopment Authority, To Levy A Property Tax Upon The Taxable Property In The City Of Blaine For 2023
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Executive Summary
Pursuant to requirements to adopt annual budgets for all operating funds, Staff is bringing forward the proposed 2023 Tax Levy for Board consideration and adoption.
Background
Minnesota statutes allow special taxing districts to certify property tax levies on all real property within their jurisdiction. The Blaine Economic Development Authority (EDA) functions as a special taxing district and is therefore authorized to levy taxes under state law.
From the City’s most recent Comprehensive Plan, Blaine will encourage “through land use and the City’s EDA (Economic Development Authority), development that creates access to sustainable jobs for the residents of Blaine. Development of corporate offices, professional and financial services, research, medical manufacturing and medical services, education and emerging industrial technology will be focal points in helping to create a well-balanced and vital economy for the City and its residents.” The City, through the EDA, will “dedicate staff resources to monitoring the economic health of the City and assisting businesses in relocation or expansion within the City.”
Earlier this year, City Finance staff conducted a thorough analysis of the EDA fund and on September 19, the EDA gave preliminary approval for a 2023 property tax levy of $1,200,000. Council adjusted the EDA levy from $1,200,000 to $1,000,000 at the October 8 Council Retreat. The council adjusted levy was presented at the annual Truth-in-Taxation hearing on December 12.
Strategic Plan Relationship
Adoption of annual budgets contributes to the overall financial stability of the City.
Board/Commission Review
N/A
Financial Impact
The proposed levy is $250,000 (33.3%) over the levy assessed in 2022 and results in a tax rate of 0.881%. The EDA’s tax rate is included when considering the overall tax rate of the City of Blaine.
Public Outreach/Input
Council conducted a public hearing for the proposed 2023 General Fund budget and proposed property tax levies on December 12, 2022, at which time the EDA levy was presented.
Staff Recommendation
By motion, approve the following resolution.
Attachment List
N/A
Body
WHEREAS, the Blaine Economic Development Authority (the “EDA”) has the powers provided in Minnesota Statutes 469.001 through 469.017 (the “ACT”); and
WHEREAS, the EDA will continue to develop and implement programs in accordance with the Act and consistent with the City’s 2040 Comprehensive Plan; and
WHEREAS, Minnesota Statutes, Section 469.033, Subdivision 6, allows the levy of a special district tax not to exceed 0.0185% (.000185) of taxable market value for purposes specified therein.
NOW, THEREFORE, BE IT RESOLVED, that the Blaine Economic Development Agency approves of and consents to a final levy in the amount of $1,000,000, but not to exceed 0.0185% of taxable market value of the City as authorized by the Act and described above.
PASSED by the Blaine Economic Development Authority this 19th day of December 2022.