HomeMy WebLinkAbout2014 budget pres revised 3-25-13FY 14 Proposed Budget for Economic Development Operations; and
FY 14 Proposed Budget for Expansion of Economic Development Resources, Programs and Activities
Economic Development FY 2014 Proposed Budget
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Economic Development FY 14 Proposed Budget for Economic Development Operations
FY 12 Operational Budget
$48,135 Operations
$125,600 (approximate value of one and one half mills) – Gallatin College
FY 13 Proposed Operational Budget
$61,000 Operations ($12,865 increase from FY 12)
$125,600 – Gallatin College (will the Commission approve additional funding in FY14? Where will it
come from? GF or Millage Increase?)
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In FY13 we….
Continued implementation of the adopted ED plan;
Conducted some community outreach;
Hosted an ED Summit;
Assisted with implementation of “business friendly processes”;
Completed the
North Park concept land use plan;
Supported cluster development;
Created the South Bozeman Technology District;
Facilitated the development of a downtown hotel;
Assisted with the restructuring
of the Community Development Dept.;
Raised the issue of impact fees and economic development;
Explored an EDIFM Program;
Lead the EDT; and
Served as EDC liaison.
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In FY 14 we want to …..
Expand and increase ED outreach, activities and programs;
Continue to improve town/gown relationships, especially with the business college;
Assist with hiring a Community Development
Director and implement the structural changes proposed for the CD Dept;
Actively participate in the BEAR program;
Expand and improve outreach to local, state and national business communities;
Attend
and collaborate with local businesses on industry specific trade shows and events to promote Bozeman as a place to do business, i.e. OIA Show;
Take advantage of professional development
opportunities;
Participate in local industry conferences, i.e. Optec;
Assume responsibility of proactively managing at least two of the City’s TIF districts (Industrial and Technology);
Explore
creation of a development authority/entity;
Facilitate development at the MSU Innovation Campus;
Facilitate development at the North Park;
Facilitate development of a downtown hotel;
Foreign
Trade Zone;
North Park TIF;
Improve broadband connectivity (broadband steering committee);
Improve and expand cluster development, especially optics and the outdoor industry;
Hire an
ED specialist to assist with implementation the ED plan;
Work more deliberately with the EDC; and
Explore the implementation of an ED incentive program.
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FY 13 Costs - Where did the $48,135 go?
BUDGETED AND SPENT
$17,200 North Park Concept Land Use Plan and components (EA Ph 1, Signage, Economic Impact Analysis, LMI Report, etc);
$1, 000 on Montana Site Selector fees and promotional
materials and GBRN promotional materials;
$1,000 on office furniture;
$700 on iPad and accessories; and
$500 on travel/training and misc. operational expenses.
BUDGETED AND UNSPENT
$15,000
identified for intern, outreach and events;
$8,200 travel and training; and
$4,500 contracted services.
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Economic Development FY 14 Proposed Budget for Economic Development Operations
Increases in the 2014 Economic Development operating budget are due to a stated desire by the City Commission to increase resources, activities and programs.
A $12, 865 increase in the
FY 14 operational budget accounts for improving and expanding ongoing projects, i.e. Montana Site Selector, Gallatin Business Resource Network, as well as increased presence at industry
specific trade shows, i.e. OIA and OpticsWest, increased participation in local industry shows and conferences, and increased education and outreach and hosting and/or sponsoring more
ED events. Additionally, the proposed increases include general resources and professional training and development for staff working in the area of Economic Development.
These proposed
increases assume a new FTE to administer and expand existing projects and programs and take advantage of increased training opportunities.
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Economic Development FY 14 Proposed Budget for Expansion of Economic Development Resources, Programs and Activities
The proposed expansion of the 2014 Economic Development resources, activities and programs are is in response to a stated desire by the City Commission to increase overall economic development
activities at the City of Bozeman. Any expansion or increase in activities is predicated on approval for adding an FTE to the ED Department.
There are five areas of proposed expansion:
Additional
FTE, i.e., an Economic Development Specialist with a pay rate of approximately $50,000. At this pay scale benefits are approximately $17,569.20 for a total cost of approximately $67,569.20;
An
additional $15,000 to expand cluster development activities (esp. in photonics/optics and the outdoor industry but also includes bioscience, manufacturing, high-tech and healthcare;
An
additional $60,000 to continue the North Park project;
An additional $50,000 to create an ED incentive program, i.e. economic development impact fee mitigation program (EDIFM); and
FY
14 Funding for Gallatin College at $125,600 (?).
The costs for the proposed expansions, not including operational costs, totals $318,169.20.
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Economic Development FY 14 Proposed Budget for Expansion of Economic Development Resources, Programs and Activities
Proposed FY14 Budget
Proposed Operational Costs (GF?):
$61,000
Proposed expanded ED resources
activities and programs(GF or raise millage rate?):
Cluster Development $15,000
North
Park Development $60,000
FTE (ED Specialist) $67,569.20
Incentives $50,000
Gallatin College (?) $125,600
Total FY14 Budget Request $379,169.20*
FY 14 Budget less the
GF request for operations $318,169.20
*4 Mills = $344,904 or $14.84 per property owner/yr
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Economic Development FY 14 Proposed Budget for Expansion of Economic Development Resources, Programs and Activities
Proposed FY14 Budget w/o funding for Gallatin College
Proposed Operational Costs (GF?):
$61,000
Proposed expanded ED resources
activities and programs(GF or raise millage
rate?):
Cluster Development $15,000
North Park Development $60,000
FTE (ED Specialist) $67,569.20
Incentives $50,000
Total FY14 Budget Request $253,569.20
FY 14
Budget less the GF request for operations $192,569.20*
2 Mills = $172, 452 or $7.42 per property owner/yr
3 Mills = $258,678 or $11.13 per property owner/yr
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FY 14 Economic Development Budget
Proposed Funding Sources
Continue to fund ongoing ED operations in the proposed amount of $61,000 from the General Fund;
AND
Increase the number of
Mills currently levied by 1, 2, 3 or 4 additional mills for economic development, from 166.75 mills to 170.75 mills, the value of 4 mills is $332,904. With an increase of 4 mills for
economic development, the City would be 25.87 mills below the statutory limit of 196.62 mills.
The value of one mill is $86,226;
In 2012, City residents living in the median residential
home paid approximately $3.71 for each mill levied. The same home would expect the following yearly increase if additional revenue was raised through mills to fund economic development:
4
Mills = $344,904 or $14.84 per property owner/yr
3 Mills = $258,678 or $11.13 per property owner/yr
2 Mills = $172, 452 or $7.42 per property owner/yr
1 Mill = $ 86,226 or $3.71 per
property owner/yr
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City Commission’s Economic Development Objectives
Facilitate job creation and encourage economic diversity;
AND
Strive to position Bozeman as the “Most business friendly community in the state of Montana”.
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Economic development goals from the 2009 Economic Development Plan
Support the expansion and retention of existing businesses and economic clusters that will continue to strengthen and diversify the economy and create higher paying jobs in Bozeman;
Maintain
and upgrade infrastructure to support current and future needs of business;
Support education and workforce development initiatives to provide Bozeman with the qualified workers to meet
the needs of business;
Leverage local, state and federal economic development resources to enhance economic growth in Bozeman;
Create a more collaborative and effective working partnership
between the business community and the City of Bozeman and effectively manage the City of Bozeman’s regulatory environment to accomplish goals without hindering business expansion and
economic growth; and
Maintain the high quality of life that is considered an important asset to the business community.
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Economic Development Council’s Priorities and Recommendations
Ongoing financial commitment to Economic Development;
Commitment to a business-friendly process with a focus on retention and expansion of existing local businesses;
Stabilize existing
local incubators and create a full service business incubator program to achieve a healthy business ecosystem;
Core Services and Infrastructure;
Identification and Establishment of Business
Incentives; and
Workforce Development.
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Why should we continue to invest in economic development in the City of Bozeman?
in·vest - /inˈvest/ To devote one's time, effort, energy and/or money to a particular undertaking while creating expectations of worthwhile results.
Local economic development activities
build, and rebuild, strong community relationships and create trusting, long-term community partnerships;
Economic development is intrinsic to long term sustainable development;
A strong
economy benefits the entire community;
By investing public dollars in economic development, we invest in the future of our community. We must develop and share a long term vision, commitment
and promise in building a prosperous and diverse local and regional economy;
Local economic development strategies, while no panacea, are a valid complement to traditional top-down [Federal]
strategies in order to deliver sustainable development and in many cases may deliver greater economic efficiency by mobilizing local and regional resources that otherwise may have remained
untapped;
Local economic development offers a benefit that is quite valuable to local residents: more and better job opportunities in their home community;
The cost and quality of life
for every household is directly dependent on local economic conditions;
Business investment has many locational alternatives: We must play to our local strengths and leverage partnerships;
Business
activity creates the revenues to fund local services; and
Economic development is everyone's business.
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