HomeMy WebLinkAbout7B - Financial Update - Jerilyn Erickson
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4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
AGENDA ITEM:
FEBRUARY 16, 2010
7B
JERIL YN ERICKSON, FINANCE DIRECTOR
FINANCIAL UPDATE PRESENTATION
MEETING DATE:
AGENDA #:
PREPARED BY:
DISCUSSION:
Introduction
The purpose of this agenda item is to provide an update on the financial
position of the City of Prior Lake Economic Development Authority.
The Economic Development Authority financial activity is reported as a
blended special revenue fund of the City. Separate financial statements are
not issued for this component unit.
Current Circumstances
EDA Fund
The Economic Development Authority special revenue fund reflects a
preliminary 12/31/2009 fund balance of $98,476. Other than interest earnings
and bank service charges, there has been no activity in this fund since 2004.
Debt
The EDA approved a resolution (#05-03) on April 18, 2005 authorizing the
issuance of Public Project Revenue Bonds, Series 2005B in the amount of
$10,000,000 to finance the construction of a city hall and police station. The
funding source for the debt service of these bonds is a lease with option to
purchase agreement by and between the City of Prior Lake and the Prior Lake
Economic Development Authority. Resolution (#05-68) authorizing the
execution and delivery of this lease with option to purchase agreement, a
ground lease agreement and a continuing disclosure undertaking was
approved by the City Council on April 18, 2005
The 12/31/2009 balance of Public Project Revenue Bonds, Series 2005B is
$9,465,000. The final bond maturity is 12/15/2029.
Other Economic Deve/ooment-Re/ated Funds
The City of Prior Lake has two special revenue funds which were created to
account for the proceeds of economic development grants received either from
the federal government or the State of Minnesota to provide seed money for a
revolving loan account. The purpose is to provide economic incentive for new
business expansion within the community.
The City also has a Downtown Redevelopment Fund which is a capital projects
fund. It was created to provide development assistance in the context of
building fayade improvements for downtown businesses in an effort to
revitalize and renew the general appearance of the downtown business district.
www.cityofpriorlake.com
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The following table reflects the preliminary 12/31/2009 fund balances for the
funds mentioned above:
Description of Fund
Preliminary
12/31/09
Balance
$ 101,994
Fund Balance
Economic Development
Federal Loan Fund (Fund 250)
Economic Development
Minnesota Loan Fund (Fund
255)
Downtown Redevelopment
Fund (Fund 256)
$ 79,203
Unreserved; Designated for
Development Loans
Unreserved; Designated for
Development Loans
$ 37,110
Unreserved; Designated for
Improvements
If EDA members have questions please feel free to contact me at 952-447-
9841 for more information.
ALTERNATIVES
1. A motion to approve the financial update as submitted.
2. Take no action and provide the staff with specific direction.
RECOMMENDED
MOTION:
Alternative 1. A motion to approve the financial update as submitted.
Reviewed by:
1.
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