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HomeMy WebLinkAboutCity Council Packet 08-11-2009 SpecialCITY OF PLYMOUTH AGENDA SPECIAL COUNCIL MEETING AUGUST 11, 2009, 5:30 p.m. MEDICINE LAKE CONFERENCE ROOM 1. CALL TO ORDER 2. DISCUSSION TOPICS A. 2010/2011 Budget 3. ADJOURN Special Council Meeting 1 of 1 August 11, 2009 rp)City of Agenda 2 . Q Plymouth Number: Adding QuoUty to Life To: Laurie Ahrens, City Manager SPECIAL COUNCIL Prepared by: Calvin Portner, Administrative Services Director MEETING Reviewed by: August 11, 2009 Item: Budget Discussion 1. ACTION REQUESTED: Provide staff direction on 2010-2011 biennial budget. 2. BACKGROUND: At the July 28, 2009, Special Council Meeting the City Council scheduled August 11, 2009, for a special session to continue discussion on the budget and street reconstruction. Staff was directed to provide a number of reports with regard to the budget discussion. The following items are attached: a.) Find the number of households that fall into the "average" home sale scenario. b.) Find the concentration of $1 million commercial/industrial properties. c.) Find the "average" business or value concentration. d.) Find the ratio of residential properties versus commercial/industrial properties and the impact of taxes. e.) What is the budget impact of a 0.0 percent increase on the average home? f.) Compute the median home value as an option for the existing tax scenarios. Council Member Willis asked for follow-up on the following questions: a.) Show the trend of allocations by year from 2005 through 2011. Show the change as a percentage of growth with regard to the general fund budget growth. b.) Show how the Street Reconstruction Program funds were used from 2005-11, showing how much was spent on street reconstruction, temporary overlays, mill & overlay, patching and administrative costs/specs. c.) What was the property tax revenue amount over the last several years? Lastly, at the July 14, 2008, study session with the city's auditor, council requested two other pieces of information which are attached: a.) Impact of OPEB on the city bond rating. b.) What is the purpose of the Economic Development fund and the Community Development Fund? Distribution of Residential Property by Value The following chart shows the distribution of Plymouth's non agriculture properties by value. Non agriculture includes condominiums and townhomes. The median value of all residential property is $279,400 meaning one half of all residential properties are valued higher and one half of all properties are valued lower. In comparison, for taxes payable 2010 (2009 assessment) the average Plymouth sale price was $366,800. Twenty percent of all residential properties (4,500) are between $225,000 and $275,000, making up the largest concentration of like valued residential property. For property tax comparisons, we have selected the next largest concentrations above ($400,000) and below ($250,000) the median. Home value clusters by percentages: 21.6% under $200,000 56.7% are under $300,000 80.2 % are under $400,000 90.8% are under $500,000 4.2% are over $500,000 0.4% are over $1 million 6,000 5,000 4,000 3,000 2,000 1,000 0 0 0 0 0 0 0 0 0 0 0 0 0 o° o° o° o° °° °° o° o° o° °° o° o° o°' °' °" °" CO o°' °' ti°' z '' rad" 1 yah C° a° 1 1 Distribution of C/I Property by Value The median value C/I property in Plymouth is $1,924,000 and the mean is $3,150,914. 30% of C/I properties are valued under $1milllion, and 52% of all CA property is valued under $2 million. Properties valued under $1.5 million tend to be owner -occupied, which is important because many of them are our small business owners. There are a total of 34 properties over $10 million. 120 100 80 60 — — 40 — --- 5eriesl 20 0. . . . . o Ln b Ln C7 Ln C7 Ln O Ln C7 Ln C7 Ln O Ln C7 Ln O Ln D c x ,--i - r.i ry rri r i :; :;i Lr u i La L.6 n r, QQ_ oD c_ c_ o Distribution of Property Taxes Residential vs. Commercial/Industrial Comparison 1 million property The following charts compare the amount of taxes paid by two City of Plymouth properties, both valued at $1 million. Chart 1 shows the commercial property pays over $30,000 in property taxes, however only 9.8% or $2,946 is levied to the city. Chart 2 shows the similarly valued residential property pays a total of just over $12,000, however, 22.4% or $2,741 is levied to the city. As a result, while the commercial/industrial property owner pays 2.5 times more than the residential property owner, the city collects only $200 more. CHART 1 - Property taxes paid by a Commercial property valued at $1 million Tax Authority Tax Pct. County 4,886 16.2% Regional Rail 46 0.2% Plymouth 2,946 9.8% State General Tax 8,765 29.1% School District 4,155 13.8% Met Taxing Dist 312 1.0% Other Taxing Districts 631 2.1% Non Voter Approved 587 4.8% Levies 70 0.2% Fiscal Disparities 8,301 27.6% Total Tax 30,111 0.0% CHART 2 - Property taxes paid by a residential property valued at $1 million Tax Authority Tax Pct. County 4,546 37.1% Regional Rail 43 0.3% Plymouth 2,741 22.4% State General Tax 0 0.0% School District 3,984 32.5% Met Taxing Dist 290 2.4% Other Taxing Districts 587 4.8% Non Voter Approved Levies 70 0.6% Fiscal Disparities 0 0.0% Total Tax 12,262 70 2' County 46 Regional Rail Plymouth State General Tax School District Met Taxing Dist County 43 0 Regional Rail Plymouth 2,741 State General Tax School District 0 Met Taxing Dist C/I Property Tax Dispersal The following pie charts show the source of property taxes, by percentage, that the city receives before and after the redistribution resulting from Fiscal Disparities. The charts show that roughly 23% of city property taxes are levied from Commercial / Industrial properties. FARM 0.3% COMMERCIAL 15.7% INDUSTRIAL 17.1% RESIDENTIAL 60.9% APARTMENT 6.0% OTHER 0.0% FARM 0.3% COMMERCIAL 11.2% INDUSTRIAL 12.2% RESIDENTIAL 69.3% APARTMENT 6.9% OTHER 0.0% CHART 1 - Before Fiscal Disparities, C & I contributed 32.8% 15.7% FARM COMMERCIAL INDUSTRIAL RESIDENTIAL APARTMENT OTHERLip17.1% CHART 2 - After Fiscal Disparities, C & I contributed 23.4% 11.2% FARM COMMERCIAL i INDUSTRIAL RESIDENTIAL 12.2% APARTM ENT OTHER Levy: End of Levy General Fund $12,856,138.00 12,895,429.16 $13,040,115.00 $13,040,115.00 PERA $101,012.00 108,727.61 $108,727.61 $108,727.61 Police $9,231,614.00 9,183,834.79 $9,183,834.79 $9,183,834.79 Market Value Homestead Credit (included in levy limit) - have to levy and then we get unalloted $510,000.00 589,795.00 $589,795.00 $589,795.00 WILL NOT RECEIVE Market Value Homestead Credit Special Levy (1/2 of 2008 & all of 2009)$801,650.00 Street Reconstruction $2,458,092.00 2,458,092.00 $2,531,834.76 $2,531,834.76 Recreation Fund $678,497.00 628,497.00 $628,497.00 $628,497.00 Capital Improvement Fund $358,216.00 358,216.00 $368,962.48 $368,962.48 GO 2003B Street Recon Bonds $178,355.63 179,038.13 $179,038.13 $179,038.13 2013 GO 2003C Street Recon Bonds $424,531.43 2009 GO 2004A Public Safety $596,354.06 596,957.81 $596,957.81 $596,957.81 2024 GO 2007A Open Space $255,486.00 255,223.50 $255,223.50 $255,223.50 2023 Total City Tax Capacity Levy $27,648,296.12 5.25%27,253,811.00 -1.43%$27,482,986.08 -0.60%$28,284,636.08 2.30% City Market Value levies Activity Center Bonds $432,016.00 428,007.00 $428,007.00 $428,007.00 2013 2003D Open Space Refunding $267,256.50 281,326.50 $281,326.50 $281,326.50 2010 Total City Market Value Levy $699,272.50 0.98%709,333.50 1.44%$709,333.50 1.44%$709,333.50 1.44% Total City Levy $28,347,568.62 5.14%27,963,144.50 -1.36%$28,192,319.58 -0.55%$28,993,969.58 2.28% HRA Levy $551,277.00 551,277.00 $551,277.00 $551,277.00 TOTAL LEVY $28,898,845.62 5.14%28,514,421.50 -1.33%$28,743,596.58 -0.54%$29,545,246.58 2.24% 2009 Amended 2010 LEVY SCENARIO #1 SCENARIO #2 2010 Projected levy limit w/max market value special levy (no add'l bond) 2010 Projected reduction to 0 increase for average sale home SCENARIO #3 2010 Projected levy limit - no special levy for market value or add'l bond Residential Property Estimated Estimated Percentage 2009 2010 Increase Increase Average Home Sale Value 384,400 366,800 Tax Capacity at 1%3,844 3,668 Combined City Tax & Market Value Tax Rate 24.351%25.625% Total City & Market Value Property Tax $936.04 $939.92 $3.88 HRA Tax Capacity Rate 0.483%0.514% HRA Property Tax $18.58 $18.86 $0.28 Total Property Tax $954.62 $958.78 $4.16 Market Value Credit ($6.94)($11.10)($4.16) Total Net Property Tax $947.68 $947.69 $0.01 0.00% Tax Impact - Reduction in Levy - Scenario #1 Residential Property Estimated Estimated Percentage 2009 2010 Increase Increase Lower Value Concentration to Median Value 264,400 250,000 Tax Capacity at 1%2,644 2,500 Combined City Tax & Market Value Tax Rate 24.351%25.625% Total City & Market Value Property Tax $643.83 $640.62 -$3.21 HRA Tax Capacity Rate 0.483%0.514% HRA Property Tax $12.78 $12.86 $0.07 Total Property Tax $656.61 $653.48 -$3.13 Market Value Credit ($35.29)($38.69)($3.40) Total Net Property Tax $621.32 $614.79 -$6.54 -1.05% Estimated Estimated Percentage 2009 2010 Increase Increase Median Value 293,100 279,400 Tax Capacity at 1%2,931 2,794 Combined City Tax & Market Value Tax Rate 24.351%25.625% Total City & Market Value Property Tax $713.72 $715.96 $2.24 HRA Tax Capacity Rate 0.483%0.514% HRA Property Tax $14.17 $14.37 $0.20 Total Property Tax $727.89 $730.33 $2.44 Market Value Credit ($28.51)($31.75)($3.24) Total Net Property Tax $699.38 $698.58 -$0.79 -0.11% Estimated Estimated Percentage 2009 2010 Increase Increase Higher Value Concentration to Median Value 419,000 400,000 Tax Capacity at 1%4,190 4,000 Combined City Tax & Market Value Tax Rate 24.351%25.625% Total City & Market Value Property Tax $1,020.29 $1,025.00 $4.71 HRA Tax Capacity Rate 0.483%0.514% HRA Property Tax $20.26 $20.57 $0.31 Total Property Tax $1,040.55 $1,045.57 $5.02 Market Value Credit $0.00 $0.00 $0.00 Total Net Property Tax $1,040.55 $1,045.57 $5.02 0.48% Tax Impact - Reduction in Levy - Scenario # 1 Commercial Property Estimated Estimated Percentage 2009 2010 Increase Increase Combined City & Market Value Tax Rate 24.351%25.625% On a $1,000,000 Property $1,051,000 $1,000,000 Tax Capacity 20,270 19,250 less: Fiscal Disparity contribution rate 0.371552 0.371552 Net Tax Capacity 12,739 12,098 Total Property Tax $3,102 $3,100 -$1.93 -0.06% Residential Property Estimated Estimated Percentage 2009 2010 Increase Increase Average Home Sale Value 384,400 366,800 Tax Capacity at 1%3,844 3,668 Combined City Tax & Market Value Tax Rate 24.351%25.855% Total City & Market Value Property Tax $936.04 $948.37 $12.33 HRA Tax Capacity Rate 0.483%0.514% HRA Property Tax $18.58 $18.86 $0.28 Total Property Tax $954.62 $967.23 $12.61 Market Value Credit ($6.94)($11.10)($4.16) Total Net Property Tax $947.68 $956.13 $8.45 0.89% Tax Impact - max levy - no market value credit special levy or add'l bond levy - Scenario #2 Residential Property Estimated Estimated Percentage 2009 2010 Increase Increase Lower Value Concentration to Median Value 264,400 250,000 Tax Capacity at 1%2,644 2,500 Combined City Tax & Market Value Tax Rate 24.351%25.855% Total City & Market Value Property Tax $643.83 $646.38 $2.55 HRA Tax Capacity Rate 0.483%0.514% HRA Property Tax $12.78 $12.86 $0.07 Total Property Tax $656.61 $659.23 $2.62 Market Value Credit ($35.29)($38.69)($3.40) Total Net Property Tax $621.32 $620.54 -$0.78 -0.13% Estimated Estimated Percentage 2009 2010 Increase Increase Median Value 293,100 279,400 Tax Capacity at 1%2,931 2,794 Combined City Tax & Market Value Tax Rate 24.351%25.855% Total City & Market Value Property Tax $713.72 $722.39 $8.68 HRA Tax Capacity Rate 0.483%0.514% HRA Property Tax $14.17 $14.37 $0.20 Total Property Tax $727.89 $736.76 $8.88 Market Value Credit ($28.51)($31.75)($3.24) Total Net Property Tax $699.38 $705.01 $5.64 0.81% Estimated Estimated Percentage 2009 2010 Increase Increase Higher Concentration to Median Value 419,000 400,000 Tax Capacity at 1%4,190 4,000 Combined City Tax & Market Value Tax Rate 24.351%25.855% Total City & Market Value Property Tax $1,020.29 $1,034.21 $13.92 HRA Tax Capacity Rate 0.483%0.514% HRA Property Tax $20.26 $20.57 $0.31 Total Property Tax $1,040.55 $1,054.78 $14.23 Market Value Credit $0.00 $0.00 $0.00 Total Net Property Tax $1,040.55 $1,054.78 $14.23 1.37% Tax Impact - max levy - no market value credit special levy or add'l bond levy - Scenario #2 Commercial Property Estimated Estimated Percentage 2009 2010 Increase Increase Combined City & Market Value Tax Rate 24.351%25.855% On a $1,000,000 Property $1,051,000 $1,000,000 Tax Capacity 20,270 19,250 less: Fiscal Disparity contribution rate 0.371552 0.371552 Net Tax Capacity 12,739 12,098 Total Property Tax $3,102 $3,128 $25.92 0.84% Residential Property Estimated Estimated Percentage 2009 2010 Increase Increase Average Home Sale Value 384,400 366,800 Tax Capacity at 1%3,844 3,668 Combined City Tax & Market Value Tax Rate 24.351%26.661% Total City & Market Value Property Tax $936.04 $977.91 $41.87 HRA Tax Capacity Rate 0.483%0.514% HRA Property Tax $18.58 $18.86 $0.28 Total Property Tax $954.62 $996.77 $42.15 Market Value Credit ($6.94)($11.10)($4.16) Total Net Property Tax $947.68 $985.67 $37.99 4.01% Tax Impact - market value credit maximum special levy - Scenario # 3 Residential Property Estimated Estimated Percentage 2009 2010 Increase Increase Lower Value Concentration to Median Value 264,400 250,000 Tax Capacity at 1%2,644 2,500 Combined City Tax & Market Value Tax Rate 24.351%26.661% Total City & Market Value Property Tax $643.83 $666.51 $22.68 HRA Tax Capacity Rate 0.483%0.514% HRA Property Tax $12.78 $12.86 $0.07 Total Property Tax $656.61 $679.37 $22.76 Market Value Credit ($35.29)($38.69)($3.40) Total Net Property Tax $621.32 $640.68 $19.36 3.12% Estimated Estimated Percentage 2009 2010 Increase Increase Median Value 293,100 279,400 Tax Capacity at 1%2,931 2,794 Combined City Tax & Market Value Tax Rate 24.351%26.661% Total City & Market Value Property Tax $713.72 $744.90 $31.18 HRA Tax Capacity Rate 0.483%0.514% HRA Property Tax $14.17 $14.37 $0.20 Total Property Tax $727.89 $759.26 $31.38 Market Value Credit ($28.51)($31.75)($3.24) Total Net Property Tax $699.38 $727.52 $28.14 4.02% Estimated Estimated Percentage 2009 2010 Increase Increase Higher Value Concentration to Median Value 419,000 400,000 Tax Capacity at 1%4,190 4,000 Combined City Tax & Market Value Tax Rate 24.351%26.661% Total City & Market Value Property Tax $1,020.29 $1,066.42 $46.13 HRA Tax Capacity Rate 0.483%0.514% HRA Property Tax $20.26 $20.57 $0.31 Total Property Tax $1,040.55 $1,086.99 $46.44 Market Value Credit $0.00 $0.00 $0.00 Total Net Property Tax $1,040.55 $1,086.99 $46.44 4.46% Tax Impact - market value credit maximum special levy - Scenario # 3 Commercial Property Estimated Estimated Percentage 2009 2010 Increase Increase Combined City & Market Value Tax Rate 24.351%26.661% On a $1,000,000 Property $1,051,000 $1,000,000 Tax Capacity 20,270 19,250 less: Fiscal Disparity contribution rate 0.371552 0.371552 Net Tax Capacity 12,739 12,098 Total Property Tax $3,102 $3,225 $123.35 3.98% GENERAL FUND - TOTAL ALLOCATIONS AND EXPENDITURES 2003 2004 2005 2006 2007 2008 2009 Total Annual Annual Annual Annual Annual Annual Annual Budget Amt Budget Amount Budget Amount Budget Amount Budget Amount Budget Amount Budget Amount change from 2003-2009 Total Allocations: $2,849,824.00 $3,037,017.00 $3,355,858.00 $3,539,277.00 $3,732,088.00 $3,625,525.00 $3,880,469.00 $1,030,645.00 Yearly Allocation Increase Decrease): 6.57% 10.50% 5.47% 5.45% -2.86% 7.03% 36.17% Total Expenditure: $20,311,398.00 $21,458,236.00 $22,493,654.00 $23,849,211.00 $25,616,296.00 $27,328,347.00 $27,932,495.00 $7,621,097.00 Yearly Expenditure Increase: 5.65% 4.83% 6.03% 7.41% 6.68% 2.21% 37.52% 12.00% 10.00% 8.00% 6.00% Yearly Allocation Increase (Decrease) 4.00% Yearly Expenditure Increase 2.00% — 0.00% 2004 2005 2006 2007 08 2009 2.00% 4.00% Street Improvement Funding History Notes: In 2005, Temporary Overlay bids were exceptional so the City Council authorized expenditures exceeding programmed amount. In 2006, Seal Coat bids were excessive so the City Council rejected bids so funds were not expended although programmed. In 2009, the Street Reconstruction bids were questionable so the City Council rejected bids so funds we not expended although programmed. Street Reconstruction Fund $2,925,000 $4,176,000 $5,605,000 $5,960,000 $5,560,000 2005 Contract % of Total 2006 Contract % of Total 2007 Contract % of Total 2008 Contract % of Total 2009 Contract % of Total Crack Seal 46,400 1% 45,000 1% 100,000 2% 125,000 2% 130,000 2% Seal Coat 235,000 7% 0 0% 340,000 5% 360,000 5% 427,000 7% In-house Paving 100,000 3% 162,000 4% 345,000 5% 235,000 4% 400,000 6% Temporary Overlay 480,000 15% 370,000 8% 235,000 4% 320,000 5% 350,000 5% Mill and Overlay 95,000 3% 350,000 8% 370,000 6% 640,000 10% 610,000 9% Reconstruction 2,350,000 71% 3,456,000 79% 5,000,000 78% 5,000,000 75% 4,600,000 71% Total 3,306,400 4,383,000 6,390,000 6,680,000 6,517,000 Increase over previous year N/A 33% 46% 5% 2% Assessment Rate (%) 30 35 40 40 40 Notes: In 2005, Temporary Overlay bids were exceptional so the City Council authorized expenditures exceeding programmed amount. In 2006, Seal Coat bids were excessive so the City Council rejected bids so funds were not expended although programmed. In 2009, the Street Reconstruction bids were questionable so the City Council rejected bids so funds we not expended although programmed. Street Reconstruction Fund $2,925,000 $4,176,000 $5,605,000 $5,960,000 $5,560,000 Property Tax Revenue FUND FUND Description 2000 2001 2002 2003 2004 2005 2006 2007 2008 100 General 11,549,168 12,083,855 13,639,495 14,178,145 16,184,302 16,973,390 18,242,620 20,273,516 21,177,722 200 Park & Recreation 432,751 469,731 499,062 623,594 623,673 623,665 623,572 658,733 658,735 250 CDBG 11,001 16,543 15,703 15,980 17,106 18,484 23,206 18,918 11,516 254 HRA Section 8 19,430 13,150 - - - - - - - 258 HRA General 408,052 424,791 494,271 509,521 551,758 568,069 503,231 473,737 501,994 406 Street Reconstruction 600,671 449,003 1,366,308 1,483,461 47,008 701,108 1,547,007 2,074,040 2,300,575 409 Capital Improvement - - 284,647 309,013 309,051 318,319 327,820 337,652 347,783 TOTALS:13,021,072 13,457,072 16,299,487 17,119,714 17,732,898 19,203,035 21,267,455 23,836,596 24,998,325 does not include debt service levies City of Plymouth Property tax revenue by fund from 2000 to 2008 30,000,000 28,000,000 26,000,000 24,000,000 22,000,000 I l[ II[iI e 18,000,000 16,000,000 14,000,000 12, 000, 000 10,000,000 24,998,325 23,836,59 21,267 21,177,722 z17,119,X32,898 273,516 8,242,620 16,299,487 16,973,390 184,302 13,021,072 14,178,145 13,639,495 12,083,855 11, 549,168 2000 2001 2002 2003 2004 2005 2006 2007 2008 tGeneral Fund Property Tax Revenue M—Total Property Tax Revenue Memo To: Jodi Bursheim, City of Plymouth From: Jonathan North Cc: Date: August 5, 2009 Subject: OPEB and impact on bond ratings It is our understanding that the City is evaluating the impact of OPEB 1) reporting requirements and 2) the options of funding OPEB liabilities, on its bond ratings. Rating Status: Aaa Plymouth has a Aaa rating from Moody's Investors Service. This is the highest rating possible. Higher ratings translate into lower borrowing costs for the City, and in the current recession and credit crunch, maintaining the Aaa is even more important to the City's ability to issue bonds as cheaply as possible. What are Other Post Employment Benefits (OPEB)? Generally speaking, OPEB represents the cost of providing benefits other than pensions (e.g. life insurance and healthcare) to existing and future retirees that have been provided to employees generally or agreed to under labor contracts. GASB 43 and 45 In 2004, GASB released Statements Nos. 43 and 45, which require significant additional disclosure and accounting requirement as relates to OPEB. Governmental units have historically accounted for OPEB by recording the annual expense related to disbursement of insurance premiums or other payments in order to measure the necessary accounting impact. Very few local governments forecasted" the cost of OPEB. The new standards are based on the principal that these benefits are compensation" earned during employment and the expense should be measured and recognized as the benefits are accrued. A similar standard had applied to pension benefits for quite some time, as well as to private corporations. Funding of OPEB and Actuarial Details Most communities have traditionally funded OPEB on a pay-as-you-go basis — paying the annual expenditure related to premiums and other costs associated with providing these benefits. Other communities establish a trust fund in advance of the expenditures funded out of operating expenses, while still others have used bonds to provide seed money for the trust fund to fund the liability. EHLERS LEADERS IN PUBLIC FINANCE. 3060 Centre Pointe Drive Roseville, MN 55113-1105 Phone: 651-697-8545 Fax: 651-697-8555 jnorth@ehlers-inc.com OPEB Implications on Bond Ratings Rating agencies have taken a somewhat muted response to OPEB liabilities. While they assess the actuarial analysis and UAAL, they have not made rating changes due solely to this soft liability. That said, the agencies are interested in ensuring a community has studied the liability, reviewed options, planned its funding strategy, and started implementation to manage OPEB. In this vein, Plymouth should have periodic reviews of their liability, and review options for funding the liability and adopt revisions to its long-term funding plan as needed. One example of the rating agencies' approach is the City of Duluth's recent announcement of their very large OPEB liability. Despite this liability, no ratings or rating outlooks were changed. Following the announcement, Duluth created an "OPEB Taskforce" to review funding options — which the rating agencies viewed favorably enough to offset the impact of the liability. As for a preferred funding mechanism, to date, the rating agencies have not stated a credit preference between cash or bond funding, nor have they opined on the use of revocable versus irrevocable trusts. However, the rating agencies may take a position in the future that indicates what is perceived as a credit strength. r2p, City of Plymouth Adding Quality to Life TO: Cal Portner, Administrative Services Director FROM: Jodi Bursheim, Finance Manager SUBJECT: Council Request Follow up DATE: August 4, 2009 Council has requested the following: Economic Development Fund Purpose: This fund was created in 1997 as part of a loan application to the Department of Trade and Economic Development (DTED) to assist Value Rx with its plan to relocate its business to Plymouth. The loan to Value Rx stipulated that the first $100,000 in repayments on the DTED loan would go to the City in order to provide seed capital to create a revolving loan fund. The Plymouth Economic Development Revolving Loan Fund (PEDF) was to encourage economic development by supplementing conventional financing sources available to existing and new businesses. Community Development Fund Purpose: This fund was used to account for funds to assist with financing the costs of community development functions, such as comprehensive plan updates, land use maps, and other development activities. A loan in the amount of $225,000.00 is outstanding with a maturity date of August 1, 2039. This loan was established with funds from Met Council. When this loan matures, the money can be used for a loan of the same purpose. The fund balance of $51,828 is from interest earnings over the years and is not restricted.