HomeMy WebLinkAbout5B EDA Budget Update
4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: March 14, 2011
AGENDA #: 5B
PREPARED BY: Jerilyn Erickson
PRESENTED BY: Jerilyn Erickson
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ADOPTING THE 2011
BUDGET
DISCUSSION: Introduction
The purpose of this agenda item is to consider approval of the 2011 budget
for the Economic Development Authority Special Revenue Fund.
History
On February 10, 2011, t he EDA had preliminary discussions regarding
possible financial resources which might be available to establish their
2011 budget. These included transfers from the following funds:
Economic Development MN Revolving Loan Fund
Economic Development Federal Revolving Loan Fund
Downtown Redevelopment Fund
General Fund – Economic Development Department
On March 7, 2011, City Staff presented to the City Council those same
options for providing additional resources to the EDA to accomplish
economic devel opment objectives. The City Council decided that the EDA
should develop a 2011 budget utilizing current resources available in the
Economic Development Authority Special Revenue Fund. In addition, the
City Council decided that the EDA should first develo p a Strategic Plan
before any additional funds are transferred to the Economic Development
Authority Special Revenue Fund.
Current Circumstances
The Economic Development Authority Special Revenue Fund currently has
approximately $102,000 available to establish a 2011 budget.
Included with this agenda report are two proposed budget options prepared
by Staff. Option A details the resources that are estimated to cover basic
administrative expenses associated with per diems, expense
reimbursements, le gal notices and fees, and minimal professional services.
Option B reflects those same expenses plus additional funds allocated to
professional services. Option B basically expends all resources available
in the Fund.
The EDA may consider the options pre sented or make specific changes.
Conclusion
The EDA should consider adopting a budget that at least covers the
anticipated administrative expenses required to conduct its regular
meetings.
ISSUES: Article 10.2 of the EDA bylaws requires that the EDA budget be approved
by the City Council.
Upon approval by the EDA, the adopted budget will be presented to the
City Council at their next regularly scheduled meeting.
FINANCIAL The proposed budget reflects a use of reserves as follows:
IMPACT:
O ption A - $ 23,000
Option B - $100,000
Once t he EDA reserves have been spent, they are gone and would need to
be replaced with other funding sources if the EDA anticipates having
ongoing expenses. The availability and sources of future economic
developm ent resources (other than the transfer of residual fund balances of
economic development - related funds) has not been discussed by the City
Council or the Economic Development Authority. Some considerations
may be as follows:
1. Transfer of General Fund reserves;
2. Transfer from General Fund tax levy;
3. Economic Development Authority tax levy, and
4. Bonds issued by the Economic Development Authority
All of the above options must also be approved by the City Council.
ALTERNATIVES: The following alternatives are available to the EDA :
1. Approve Resolution Adopting 201 1 EDA Budget (Option A)
2. Approve Resolution Adopting 2011 EDA Budget (Option B)
3. Amend Resolution according to specific EDA changes.
RECOMMENDED Alternative 1 or 2 . Staff would recommend that the EDA approve one of the
MOTION:
resolution s as submitted.