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4646 Dakota Street SE
Prior Lake, MN 55372
ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: January 23, 2012
AGENDA #: 6C
PREPARED BY: Jerilyn Erickson , T reasurer
PRESENTED BY: Jerilyn Erickson
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AMENDING THE 201 2
BUDGET
DISCUSSION: Introduction
The purpose of this agenda item is to consider approval of an amendment
to the 201 2 budget for the Economic Development Authority Special
Revenue Fund.
History
The 2012 budget was adopted by the City Council on December 19, 2011.
Current Circumstances
The Economic Development Authority approved a contract with Lookout
Point in the amount of $80,000. The 2012 budget only included $53,000
for professional services resulting in a $27,000 shortfall.
The EDA has also directed Staff to coordinate a Venture Fair at an
approximate cost of $10,000. The 2012 budge t only included $5,000 for
training expenditure s resulting in a $5,000 shortfall.
Annual membership in the National Business Incubator Association (NBIA)
is approximately $1,000. The 2012 budget did not include any funding for
memberships resulting in a $1,000 shortfall .
The Incubator Committee is reviewing various proposals which may involve
additional expenditures and funding. It would be appropriate to wait until
th e financial impact of these proposals ha s been determined b efore
requesting an additional budget amend ment.
Conclusion
The EDA should consider requesting an amendment to the 2012 budget in
the amount of $3 3 ,000 as noted above. Reserves would be used to fund
these additional expenditures.
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 budget amendment will be considered for
final approval by the City Council at the February 6, 2012 council meeting.
FINANCIAL The proposed budget amendment reflects a n additional use of reserves in
IMPACT:
the amount of $ 3 3 ,000 . The table below shows the estimated reserve
balances:
Estimated 12/31/11 Fund Balance $ 337,000
2012 Budget – Use of Reserves (132,000)
2012 Budget Amendment – Use of (3 3 ,000)
Reserves
Estimated 12/31/12 Fund Balance $ 17 2 ,000
A copy of the original 2012 budget is included with this agenda report.
ALTERNATIVES: The following alternatives are available to the EDA :
1. Approve Resolution Amending the 201 2 EDA Budget.
2. Amend Resolution according to specific EDA changes.
RECOMMENDED Alternative 1 .
MOTION: