Red Wing Port Authority ]

Red Wing Port Authority ] An Economic

Development

Agency ___

TO: Red Wing Port Authority Board

FROM: Dan Rogness, Director

Agenda Item No.: 12.A. - 2020 Final Tax Levy and Budget Approval

Meeting Date: November 4, 2020

ACTION REQUESTED: Motion to Approve Resolution # 317 ( Certifying the RWPA Final PropertyTax Levy for Taxes Payable 2021) and Resolution # 318 (Approving the RWPA Fiscal Year 2021 FinalBudgets)

ATTACHMENTS:

1. Resolution # 317, ( Final 2021 Tax Levy) 2. Resolution # 318, ( Final 2021 Budgets)

3. Exhibit A to Res. # 318

4. Resolutions # 315 and # 316 ( Preliminary 2021 Levy and Budgets)

BACKGROUND:

The Port Authority approved the preliminary tax levy and budget for 2021 on August 4, 2020 with atax levy of $380, 000, and an operating budget of $933, 150. Since that time, staff has worked with the

city's Finance staff to confirm the final maximum levy and to make any other adjustments necessaryfor the final tax levy and budget. Some minor adjustments were made on operating expenses fromthe Finance staff.

The Port Authority' s total operating budget in 2020 is $ 923, 130, which was a significant increase from

the 2019 budget of $445,311. The tax levy increased from $ 345, 311 in 2019 to $400, 500 in 2020.

Additional revenue budgeted in 2020 includes $ 120, 000 from leases, $ 176, 000 from state Port

Development Assistant funding, and $ 226, 630 as a Port fund balance transfer.

DISCUSSION:

Other than some minor adjustments made by the Finance staff, a few other minor changes to theoperating budget are being proposed by the Executive Director. The following summary is providedfor the proposed final levy and budgets:

of 2

Operating Fund: 1. The approved preliminary operating budget for 2021 was approved by the Board at $ 933, 150,

which is now being adjusted down to $ 917, 163 as a final recommendation.

2. Marshall Hallock provided a preliminary and final maximum tax levy amount of $412, 337 for2021.

3. No further changes are being recommended now from the approved preliminary levy with afinal levy being $ 380, 000 ( which is down from $ 400, 500 in 2020).

4. Other proposed revenues for 2021 include: ( a) $ 160, 000 from the Port Development Fund

state bonding allocation to pay for bulkhead repairs, which moves this from 2020 to 2021; ( b)

120, 000 from Port leases; and ( c) $ 257, 163 from the Port' s fund balance.

5. The Port' s fund balance year-end 2019 was $ 881, 597. 55. Subtracting the 2020 budgettransfer ($226, 330) and the approved Downtown Revolving Loan Fund transfer ($ 100, 000),

that fund balance would be $ 555,267. 55. This projected balance is 60% of the Port' s 2020

budget. By subtracting another $257, 163 as proposed for revenue in 2021, the balance wouldbe $ 298, 104. 55, or 33% of the proposed 2021 budget ( not including any potential fund balanceadded year-end 2020, which is very likely to bring that percent above 50%).

6. In general, all operating budget' s expenditure line items are changing very little from thePreliminary to the Final Budget, only due to Finance staff adjustments. For example, the

Administrative Services" line item # 53100 decreased from $ 10, 000 to $ 4, 803. Due to the

reduction in some expenses from Finance, I added another $5, 000 to Contractual Expenses

and $ 10, 000 to Marketing due to a potential increase in those activities in 2021.

Revolving Loan Funds: 1. No adjustments were made from the preliminary figures approved by the Port Authority on

August 4th. For the five revolving loan fund preliminary budgets, staff is adjusting the revenueupward for the Industrial and Downtown revolving accounts due to the loan interest revenuesprojected for the Greater RW Dev Corp repayment and the business COVID Impact loans. Revenue is derived from interest payments, not including any principal. If one includes

principal, for example, the Industrial Revolving Loan Fund will receive nearly $250, 000 in 2021

from the GRWDC note and the multiple number of Emergency Business loans ( not includingforgiven amounts).

The City Council will hold its annual Truth -in -Taxation public hearing in early December, andpotentially adopt the final Port Authority levy and budgets on that same night.

RECOMMENDATION:

Staff recommends adopting the following two resolutions related to the 2021 tax levy and budget forthe Port Authority:

1. Motion to adopt Resolution # 317 Certifying the Property Tax Levy for Taxes Payable 2021. 2. Motion to adopt Resolution # 318 Approving the Fiscal Year 2021 Budget

of 2

RED WING PORT AUTHORITY

RESOLUTION #317

Certifying the Red Wing Port Authority' s Property Tax Levy for TaxesPayable 2021

WHEREAS, the Red Wing Port Authority is an Economic Development Authority according to

MN State Statutes 469. 053, created by the Red Wing City Council for the purpose of

encouraging economic development, increasing tax base, promoting employment and enhancingthe health, safety, and welfare of City residents; and

WHEREAS, the Red Wing Port Authority annually receives property tax funding pursuant toprovisions of Minnesota Statutes 469.053, in order to achieve its purpose; and

WHEREAS, such property tax levy may be an amount not to exceed . 01813 percent of the

taxable market value of the City.

NOW, THEREFORE, BE IT RESOLVED, that the Red Wing Port Authority Board of

Directors adopts the 2021 Property Tax Levy in the amount of $380,000. 00.

Adopted by the Red Wing Port Authority on this4th

day of November, 2020

Red Wing Port Authority Attest:

President, Audrey Bennett Director, Dan Rogness


RESOLUTION #318

Approving the Red Wing Port Authority Fiscal Year 2021 Budget

WHEREAS, the Red Wing Port Authority has developed the Red Wing Port Authority budgetwhich is contained in the attachment labeled EXHIBIT A; and,

WHEREAS, the Red Wing Port Authority was developed to meet the anticipated programmaticneeds for Fiscal year 2021; and,

WHEREAS, Section 9 of the Red Wing Port Authority Enabling Resolution provides for the

budgetary process of the Red Wing Port Authority; and

WHEREAS, such provides that the City Council may impose such conditions upon the approvalof the transfer of City funds as it may determine; and,

WHEREAS, such further provides that the Council Administrator shall submit such budget to

the City Council for review and approval as part of the City budgetary process; and,

WHEREAS, state law, the City Charter and Port Authority Enabling Resolution require the

adoption of a budget for Fiscal year 2021 and all conditions precedent thereto and required by

state law, including truth -in -taxation hearings and other requirements by law, City Charter andPort Enabling Resolution, will be fulfilled prior to the City Council' s approval and adoption ofthe 2021 budget.

NOW, THEREFORE, BE IT RESOLVED BY THE PORT AUTHORITY BOARD OF

THE CITY OF RED WING, MINNNESOTA, that the annual budget of the Red Wing Port

Authority Fiscal Year 2021, beginning January 1, 2021, as contained in the attachment labeledEXHIBITA; is hereby adopted by the Red Wing Port Authority and appropriated for thepurposes noted and the fund transfers authorized, all as contained therein pending the CityCouncil' s imposition of any such conditions upon the approval of the transfer of City funds as itmay determine and the City Council' s review and approval of the Port Authority budget.

BE IT FURTHER RESOLVED, that the Red Wing Port Authority Director is directed, inaccordance with the Port Authority Enabling Resolution, to submit such budget to the CouncilAdministrator in a timely manner such that the Council Administrator may submit such to the

City Council for review and approval as part of the City budgetary process.

BE IT FURTHER RESOLVED, the Red Wing Port Authority Board encourages the Red Wing

City Council to adopt the Port Authority' s budget as presented, and that the imposition on anyadditional conditions on transfer of City funds be carefully considered in the broader context of

the Port Authority' s overall mission of enhancing economic development.

Adopted by the Red Wing Port Authority on this4th

day of November, 2020

Red Wing Port Authority ATTEST:

President, Audrey Bennett Director, Dan Rogness

EXHIBIT A - RED WING PORT AUTHORITY OPERATING BUDGET

Fiscal Year 2021 ( Beginning 1/ 01/ 21) - FINAL

236-00000

Acct. #

41010

xxx

xxx

43599

46230

49999

236-46600

Acct. #

51105- 51505

52105

52110

52115

52299

52405

53100

53105

53120

53125

53150

53165

53199

53205

53210

53305

53310

53320

53325

53330

53345

53410

53455

53499

53505

53555- 53599

53605-53699

53710

53904

53906-53907

53920

53950

53990

53999

54120

54150

56101

TOTAL REVENUES 2020 Budget

Property Taxes 400,500. 00

Intergovernmental 0. 00

Charges for Services 0. 00

State Grants & Aids - Other (Port Assist) 176, 000.00

Miscellaneous Revenue ( Ind. Leases) 120, 000.00

Fund Balance Transfer* 226, 630.00

TOTAL REVENUE 923, 130.00

TOTAL EXPENDITURES 2020 Budget

Wages, Salaries and Benefits 5, 635. 00

Office Accessories 1, 000.00

Duplicating & Copying Supplies 1, 500.00

Printed Forms & Paper 0. 00

Other Operating Supplies 0. 00

Small Tools 500.00

Administration Services 9, 625. 00

Contractual Services 40,000.00

Engineering Services 500.00

Legal Services 0.00

IT Services 9, 030.00

Public Works Labor 2, 000.00

Other Professional Services 10,000.00

Telephone 3, 000.00

Postage 500.00

Travel 2, 500.00

Lodging 1, 000.00

Meals 1, 000.00

Mileage 0.00

Registration & Tuition 2, 500.00

Vehicle Allowance ( in 56101, Transfer) 0. 00

Marketing & Promotion 40,000.00

Legal Notices Publishing 250.00

Other Printing & Binding 0.00

Insurance Premiums 2, 500.00

Electricity / Water/ Other Utilities 0.00

Building/ Maintenance / Repairs 0. 00

Building Rentals & Leases 31, 000.00

Dues & Memberships 12, 500.00

Subscriptions/ Books 1, 000.00

Loan Expenses 0.00

Real Estate ( Property) Taxes 8, 000.00

Special Events & Projects 1, 500.00

Other Miscellaneous 1, 500.00

Land Improvements 356,000.00

Improvements other than Buildings 220,000.00

Transfer to General ( 1/ 3 Dan, 3/ 4 Shari) 158, 590.00

TOTAL EXPENDITURES 923, 130.00

Fund Balance 12/ 31/ 19 = $ 881, 597.55

2021 BUDGET

380,000.00

0.00

0.00

120,000.00

257, 163. 00

2021 BUDGET

1, 000.00

1, 500.00

0.00

0.00

500.00

4,803.00

45, 000.00

500.00

2, 000.00

10, 000.00

3, 000.00

500.00

2, 500.00

1, 000.00

1, 000.00

50,000.00

250.00

0. 00

2, 001. 00

12, 500.00

1, 000.00

0. 00

8,000.00

1, 500.00

EXHIBIT A - RED WING PORT AUTHORITY REVOLVING FUND BUDGETS

Fiscal Year 2021 ( Beginning 1/ 01/ 21) - FINAL

231

Acct. #

00000-46210

00000-46216

00000-46299

46700-53910

46700-53920

46700- 53950

46700-55120

232

Acct. #

00000-46210

00000-46216

00000-46299

46700-53910

46700- 53920

46700-53950

233

Acct. #

00000-46210

00000-46216

00000-46299

46700- 53199

46700- 53902

46700-53910

46700- 55120

243

Acct. #

00000-43490

00000-46210

00000-46216

00000-46299

00000-49231

46700- 53199

46700-53902

46700-53910

46700-53920

46700-53924

46700-55120

INDUSTRIAL REVOLVING LOAN FUND 2020 Budget

REV. Interest - Deposit / Investments 0. 00

REV. Interest - Notes & Loans 15,000. 00

REV. Other Miscellaneous 0. 00

TOTAL REVENUE 15,000.00

EXP. Bad Debt 0.00

EXP. Loan Expenses 0. 00

EXP. Real Estate ( Property) Taxes 0. 00

EXP. Debt Service Interest 0. 00

TOTAL EXPENSES 0.00

DOWNTOWN REVOLVING LOAN FUND 2020 Budget


REV. Interest - Notes & Loans 1, 000.00



EXP. Bad Debt 0. 00

EXP. Loan Expenses 0.00


TOTAL EXPENSES 0,001

INTERMEDIARY RE -LENDING FUND 2020 Budget


REV. Interest - Notes & Loans 10,000.00



EXP. Other Professional Services 0. 00

EXP. Bank Charges 0. 00

EXP. Bad Debt 0. 00

EXP. Debt Service 36,000.00

TOTAL EXPENSES 36, 000.00

DEED LOAN 2020 Budget

REV. State DEED Loan 0.00


REV. Interest - Notes & Loans 4,000.00


REV. Transfer from Industrial Revolving 0. 00


EXP. Auditing Services 0. 00

EXP. Marketing & Promotion 0. 00

EXP. Bad Debt 0. 00

EXP. Loan Expenses 2, 000.00

EXP. Subgrantee Grant Expense 0.00

EXP. Debt Service Interest 0. 00


2021 BUDGET

70,000. 00

0.00

70,000.00

0. 00

0. 00

0. 00

50.00

2021 BUDGET

0. 00

5, 000.00

0. 00

5. 000.00

0.00

0. 00

2021 BUDGET

0. 00

10, 000.00

0.00

10,000.00

0. 00

0.00

0. 00

36,000.00

36,000.00

2021 BUDGET

0. 00

0.00

4, 000.00

0. 00

0.00

4,000.00

0.00

0. 00

0. 00

2, 000.00

0.00

50.00

245

Acct. #

00000-46210

00000-46216

00000-46299

00000-49231

46700- 53199

46700- 53902

46700- 53910

46700- 53920

46700-53924

46700-55120

CDBG REVOLVING FUND 2020 Budget

REV. Interest - Deposit / Investments 0.00

REV. Interest - Notes & Loans 0. 00

REV. Other Miscellaneous 0.00

REV. Transfer from Industrial Revolving 0.00

TOTAL REVENUE 0.00

EXP. Auditing Services 0.00

EXP. Marketing & Promotion 0.00

EXP. Bad Debt 0.00



EXP. Debt Service Interest 0.00

TOTAL EXPENSES 0. 00

2021 BUDGET

0. 00

0.00

0.00

0.00

12

11

11

11

11


RESOLUTION #315

Certifying the Red Wing Port Authority' s Preliminary Property Tax Levy for TaxesPayable 2021

WHEREAS, the Red Wing Port Authority is an Economic Development Authority according toMN State Statutes 469.053, created by the Red Wing City Council for the purpose ofencouraging economic development, increasing tax base, promoting employment and enhancingthe health, safety, and welfare of City residents; and

WHEREAS, the Red Wing Port Authority annually receives property tax funding pursuant toprovisions of Minnesota Statutes 469.053, in order to achieve its purpose; and

WHEREAS, such property tax levy may be an amount not to exceed . 01813 percent of thetaxable market value of the City; and

WHEREAS, for preliminary property taxes payable 2021 this amount is estimated at $ 380,000.

NOW, THEREFORE, BE IT RESOLVED, that the Red Wing Port Authority Board ofDirectors adopts the preliminary 2021 Property Tax Levy in the amount of $380,000.

BE IT FURTHER RESOLVED, that the Red Wing Port Authority Executive Director isdirected, in accordance with the Port Authority Enabling Resolution, to submit such preliminary2021 Property Tax Levy request to the Council Administrator in a timely manner such that theCouncil Administrator may submit such to the City Council for review and approval as part ofthe City budgetary process adopted by the Red Wing Port Authority Board this 40'

day ofAugust, 2020.

Red Wing Port Authority

Pr Sid, , Audrey Bennett

Attest:

i

Director, Dan Rbgness `'


RESOLUTION #316

Adopting the Preliminary 2021 Red Wing Port Authority Budget

WHEREAS, Minnesota State property tax law specifies timetables to comply with variousrequirements; and

WHEREAS, the City of Red Wing Port Authority' s Enabling Resolution specifies timetables tocomply with various requirements.

NOW, THEREFORE, BE IT RESOLVED, that the Red Wing Port Authority Board ofDirectors does hereby certify the attached proposed budget for 2021 shown as EXHIBIT A; and

BE IT FURTHER RESOLVED, that the Red Wing Port Authority Executive Director isdirected to convey this Resolution to the Council Administrator in compliance with the Red

Wing Port Authority Enabling Resolution and the City of Red Wing budget calendar.

Adopted by the Red Wing Port Authority on this 4"' day of August, 2020.

Red Wing Port Author ty ATTEST:

v

Presid , Audrey Bemlett Director, Dan Rogr ess

EXHIBIT A - RED WING PORT AUTHORITY OPERATING BUDGET

Fiscal Year 2021 (Beginning 1/ 01/ 21) - PRELIMINARY

236- 00000

Acct. #

41010

xxx

xxx

43599

46230

49999

236-46600

Acct. #

51105- 51505

52105

52110

52115

52299

52405

53100

53105

53120

53125

53150

53165

53199

53205

53210

53305

53310

53320

53325

53330

53345

53410

53455

53499

53505

53555-53599

53605-53699

53710

53904

53906- 53907

53920

53950

53990

53999

54120

54150

56101

TOTAL REVENUES 2020 Budget

Property Taxes 400,500. 00

Intergovernmental 0. 00

Charges for Services 0. 00

State Grants & Aids - Other (Port Assist) 176,000.00

Miscellaneous Revenue ( Ind. Leases) 120,000.00

Fund Balance Transfer* 226, 630.00


TOTAL EXPENDITURES 2020 Budget

Wages, Salaries and Benefits 5, 635. 00

Office Accessories 1, 000.00

Duplicating & Copying Supplies 1, 500.00

Printed Forms & Paper 0.00

Other Operating Supplies 0.00

Small Tools 500.00

Administration Services 9, 625. 00

Contractual Services 40,000.00

Engineering Services 500.00

Legal Services 0. 00

IT Services 9, 030.00

Public Works Labor 2, 000.00

Other Professional Services 10,000.00

Telephone 3, 000.00

Postage 500.00

Travel 2, 500.00

Lodging 1, 000.00

Meals 1, 000.00

Mileage 0.00

Registration & Tuition 2, 500.00

Vehicle Allowance ( in 56101, Transfer) 0.00

Marketing & Promotion 40, 000.00

Legal Notices Publishing 250.00

Other Printing & Binding 0.00

Insurance Premiums 2, 500.00

Electricity / Water / Other Utilities 0. 00

Building/ Maintenance / Repairs 0. 00

Building Rentals & Leases 31, 000. 00

Dues & Memberships 121500. 00

Subscriptions/ Books 1000.00

Loan Expenses 0.00

Real Estate ( Property) Taxes 8, 000.00

Special Events & Projects 1, 500.00

Other Miscellaneous 1, 500.00

Land Improvements 356, 000.00

Improvements other than Buildings 220, 000.00

Transfer to General ( 1/ 3 Dan, 3/ 4 Shari) 158, 590.00

TOTAL EXPENDITURES 923, 130.00

Fund Balance 12/ 31/ 19 = $ 881, 597.55

2021 BUDGET

380,000. 00

0. 00

0. 00

160,000.00

120,000. 00

273, 150. 00

933; 150.00

EXHIBIT A - RED WING PORT AUTHORITY REVOLVING FUND BUDGETS

Fiscal Year 2021( Beginning 1/ 01/ 21) - PRELIMINARY

231

Acct. #

00000-46210

00000-46216

00000-46299

46700-53910

46700-53920

46700-53950

46700-55120

232

Acct. #

00000-46210

00000-46216

00000-46299

46700-53910

46700-53920

46700-53950

233

Acct. #

00000-46210

00000-46216

00000-46299

46700-53199

46700-53902

46700-53910

46700- 55120

243

Acct. #

00000-43490

00000-46210

00000-46216

00000-46299

00000-49231

46700- 53199

46700-53902

46700-53910

46700-53920

46700-53924

46700-55120

INDUSTRIAL REVOLVING LOAN FUND 2020 Budget





EXP. Bad Debt 0. 00




TOTAL EXPENSES 0.00

DOWNTOWN REVOLVING LOAN FUND 2020 Budget

REV. Interest - Deposit / Investments 0.00



TOTAL REVENUE. , 1, 0.00.00EXP. Bad Debt 0. 00

EXP. Loan Expenses 0. 00


TOTAL -EXPENSES "':. 0.00

INTERMEDIARY RE -LENDING FUND 2020 Budget




TOTAL REVENUE - . 10,000.00EXP. Other Professional Services 0.00

EXP. Bank Charges 0.00

EXP. Bad Debt 0.00

EXP. Debt Service 36, 000.00

TOTAL EXPENSES 351000.00

DEED LOAN 2020 Budget

REV. State DEED Loan 0. 00




REV. Transfer from Industrial Revolving 0. 00




EXP. Bad Debt 0. 00

EXP. Loan Expenses 2, 000.00




2021 BUDGET

0.00

70,000.00

0. 00

70,000.00

0.00

0.00

0.00

0.00

0.00

2021. 3UDGET

0. 00

5, 000.00

0. 00

5, 000:00

0.00

0.00

0.00

2021 BUDGET. 0.00

10,000.00

0.00

10,000.00

0.00

0.00

0. 00

36,000.00

36,000.00

245

Acct. #

00000-46210

00000-46216

00000-46299

00000-49231

46700-53199

46700-53902

46700-53910

46700- 53920

46700- 53924

46700-55120

CDBG REVOLVING FUND 2020 Budget

REV. Interest - Deposit/ Investments 0. 00

REV. Interest - Notes & Loans 0. 00


REV. Transfer from Industrial Revolving 0.00

TOTAL REVENUE 0.00



EXP. Bad Debt 0.00




TOTAL EXPENSES.: 0.00

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