Discussion:
Part of the budget discussions last year involved the implementation of a dedicated EDA levy which is separate from the city’s general levy. EDA’s have the statutory authority to levy a small percentage (up to 0.0185%) of the city’s estimated market value, which for 2019 would be a maximum of approximately $834,400. The EDA and City Council can set the levy at any amount up to this cap.
This move to increase transparency is a budget neutral change. Prior to 2018, annual transfers were made from the General Fund to the EDA to cover EDA operational costs, façade loan funds and other development related activities. This EDA levy eliminates this transfer from the General Fund, thus reducing the city’s general levy.
The advantage of the EDA special benefit levy is that the levy is applied to all taxable properties within the city including properties that are currently part of a tax abatement or TIF plan. The EDA levy is also identified on property tax statements as a separate local tax outside of the city's general property tax.
Staff is recommending a preliminary EDA levy of $350,000 for 2019, which is the same levy amount as 2018.