HomeMy WebLinkAbout6.B Resolution Adopting 2012 BudgetPR12�
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ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: December 12, 2011
AGENDA #: 6.13
PREPARED BY: Jerilyn Erickson, Assistant Treasurer
PRESENTED BY: Jerilyn Erickson
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ADOPTING THE 2012
BUDGET
DISCUSSION: Introduction
The purpose of this agenda item is to consider approval of the 2012 budget
for the Economic Development Authority Special Revenue Fund.
Histo
The EDA discussed a preliminary 2012 budget at their August 22, 2011
meeting. Commissioners decided at that time to include an additional $50k
in the professional services account to provide resources for exploring
economic development options.
Staff increased the amount of interest earnings revenue presented in
August from $2k to $6k.
The City Council conducted a Truth in Taxation public hearing which
reflected the revenue and expenditure levels as represented on the
attached proposed 2012 budget.
Current Circumstances
The Economic Development Authority Special Revenue Fund currently has
approximately $333,000 available to establish a 2012 budget.
The EDA may consider the options presented or make specific changes.
Conclusion
The EDA should adopt the 2012 budget as presented or with any
recommended changes.
ISSUES: Article 10.2 of the EDA bylaws requires that the EDA budget by approved
by the City Council.
Upon approval by the EDA, the adopted budget will be considered for final
approval by the City Council at the December 19, 2011 council meeting.
FINANCIAL The proposed 2012 budget reflects a use of reserves in the amount of
IMPACT: $131,923, leaving approximately $202,077 in the Economic Development
Authority Special Revenue Fund.
Once the 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 in 2013 and beyond. The availability and sources of
future economic development 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.
In early 2012, Staff will be bringing information back to the EDA regarding
the process of implementing an EDA property tax levy in anticipation of the
2013 budgeting process.
ALTERNATIVES: The following alternatives are available to the EDA:
1. Approve Resolution Adopting 2012 EDA as proposed.
2. Amend Resolution according to specific EDA changes.
RECOMMENDED Alternative 1.
MOTION:
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RESOLUTION 11- xxxEDA
RESOLUTION ADOPTING 2012 ECONOMIC DEVELOPMENT AUTHORITY BUDGET
Motion By:
Second By:
WHEREAS The Economic Development Authority Bylaws and Enabling Resolution provide that the
EDA will annually recommend a budget for city council consideration, and;
WHEREAS The EDA has prioritized it's efforts for 2011 and 2012 to include Broadband improvements
and business incubation, and;
WHEREAS The EDA has considered the assets available to it and the resource needs to accomplish
its objectives, and;
WHEREAS The EDA has determined and discussed a 2012 operating budget in the amount of
$137,923.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF
PRIOR LAKE, MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The 2012 EDA Budget in the amount of $137,923 is hereby approved.
3. The staff is directed to forward the EDA Budget for City Council consideration and adoption at its
December 19, 2011 meeting.
PASSED AND ADOPTED THIS 12th DAY OF DECEMBER, 2011.
14*1
NO
Frank Boyles, City Manager
Choudek
U Hedber
Hitchcock
Morris
M ser
Frank Boyles, City Manager
ECONOMIC DEVELOPMENT AUTHORITY
PROPOSED 2012 BUDGET
Revenues / Sources:
Intergovernmental revenues
33610 Grant Revenue $ -
Miscellaneous revenues
36210 Interest Earnings 6,000
Total Revenues/ Sources
$
6,000
Expenditures / Uses:
101 Personnel
$
69,923
201 Office Supplies
500
304 Legal Fees
9,000
314 Professional Services
53,000
331 Training & Certification
5,000
351 Legal Notices
500
Total Expenditures / Uses
$
137,923
Change in Fund Balance
$
(131,923)
O:�EDA�Prelim 2012 EDA Budget: 2012 Proposed 121712011