HomeMy WebLinkAbout10C EDA Budget Amendment
4646 Dakota Street SE
Prior Lake , MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: FEBRUARY 6, 2012
AGENDA #: 10C
PREPARED BY: JERILYN ERICKSON, FINANCE DIRECTOR
PRESENTED BY: JERILYN ERICKSON
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AMEND ING THE 201 2 ECONOMIC
DEVELOPMENT AUTHORITY BUDGET
DISCUSSION: Introduction
The purpose of this agenda item is to consider approval of an amendment
to the 201 2 budget for the Prior Lake Economic Development Authority
(Special Revenue Fund) .
History
The Economic Development Authority spent considerable time, early in its
existence to develop strategic goals to facilitate more robust economic
development in our community. Those goals have been incorporated into
the new 2030 Vision and Strategic Plan th at the C ity C ouncil has been
reviewing. The cost of completing the goals remains an unknown.
Accordingly, t he Economic Development Authority and City Council
adopted the following 201 2 budget at their December 12 and 19, 2011
respective regular meeting s.
ECONOMIC DEVELOPMENT AUTHORITY
ADOPTED 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)
Current Circumstances
The Economic Development Authority has been able to gather more
precise information about the cost of the V enture F air and its broadband
investigation. Consequently , o n January 23, 2012, the Economic
Devel opment Authority approved a budget amendment of an additional
$33,000 for the following items:
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.
A Ve nture Fair at an approximate cost of $10,000. The 2012
budget only included $5,000 for training expenditures 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.
ISSUES: Article 10.2 of the EDA bylaws requires that the EDA budget be approved
by the City Council.
There continues to be one missing element in the budget. That is the
amount of resources, if any, that the C ity may have to devote to make the
business incubator project viable. In the next 60 days the EDA will be
receiving information from its subcommitte e on this topic. If any adjustment
is necessary, it would be brought to the city council for consideration.
FINANCIAL The proposed budget amendment reflects an additional use of reserves in
IMPACT:
the amount of $33,000. 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 (33,000)
Reserves
Estimated 12/31/12 Fund Balance $ 172,000
Once the EDA reserves have been spent, they are gone and will need to
be replaced with other funding sources . The EDA and Staff will be
considering other funding options at the February 13, 2012 EDA meeting.
ALTERNATIVES: 1. Approval of a resolution approving an amendment to the 201 2
Economic Development Authority budget .
2. Deny this agenda item for a specific reason and provide staff with
direction.
3. Table this item to a certain date in the future.
RECOMMENDED Alternative #1.
MOTION:
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 1 2 - xxx
RESOLUTION ADOPTING AN AMENDMENT TO THE 201 2 PRIOR LAKE
ECONOMIC DEVELOPMENT AUTHORITY BUDGET
Motion By: Second By:
WHEREAS, The Prior Lake Economic Development Authority adopted an amendment to the 201 2
budget on January 23, 2012 ; and
WHEREAS, It is understood that to achieve Economic Development Authority objectives some amount
of investment will be necessary, the exact amount of which is not known at this time; and
WHEREAS, Article 10.2 of the EDA bylaws requires that the EDA budget be approved by the Prior
Lake City Council; and
WHEREAS, The City Council hereby adopts the amendment to the 201 2 budget for the Economic
Developme nt Authority Special Revenue Fund in the amount of $ 33 ,000.
NOW THEREFORE , BE IT HEREBY RESOLVE D BY THE CITY COUNCI L OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The budget amendment is hereby approved.
PASSED AND ADOPTED THIS 6 th DAY OF FEBRUARY , 201 2 .
YES NO
Myser Myser
Erickson Erickson
Hedberg Hedberg
Keeney Keeney
Soukup Soukup
______________________________
Frank Boyles, City Manager