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Home My WebLink About03 17 2014 EDA Report 4A 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: March 17, 2014 AGENDA #: 4A PREPARED BY: Jerilyn Erickson, Treasurer AGENDA ITEM: CONSIDER APPROVAL OF THE 4TH QUARTER FINANCIAL REPORT FOR THE ECONOMIC DEVELOPMENT AUTHORITY SPECIAL REVENUE FUND DISCUSSION: Introduction Staff has prepared a preliminary summary financial report as of December 31, 2013 for the Economic Development Authority Special Revenue Fund. The report reflects revenue and expenditure activity for all of 2013. The reports are preliminary, unaudited and may change. The attached memorandum provides a summary of the significant issues. If commissioners have questions please feel free to contact me at 952- 447-9841 for more information. ALTERNATIVES: The following alternatives are available to the EDA: 1. Accept the December 31, 2013 Financial Report as submitted. 2. Take no action and provide the staff with specific direction. RECOMMENDED Alternative 1. MOTION: ATTACHMENT: 1. Quarterly Report EDA Special Revenue Fund MEMORANDUM TO: Prior Lake Economic Development Authority FROM: Jerilyn Erickson, Treasurer RE: Financial Report dated 12/31/2013 The financial report presented as part of this agenda item reflects activity for all of 2013. The significant issues identified at this time are summarized below. Revenues Property tax collections are at 98.6% of the annual EDA property tax levy. Facility rental revenues reflect payments from six companies in the Technology Village Business Incubator: design a tivity, llc Innovative Computer Professionals, Inc. (ICP) Argos Risk Black Dog Computer EC3 Marketing LLC VALDE The EDA Fund reflects its share of the fair value adjustment for securities. As rates have started to increase, the market value of the existing securities has declined. This is a paper loss; no actual loss is realized because the City holds the securities until maturity. Transfers reflect the funding provided by the General Fund for the Technology Village Business Incubator set up costs. Expenditures The EDA budget was amended on January 28, 2013 to complete the City of Prior Lake Technology Village Business Incubator. An amendment was originally approved in 2012 but not all purchases were made by yearend. The remaining funds were re-appropriated in 2013. Personnel, commissioner per diems, communications, legal and Technology Village Business Incubator expenditures comprise the majority of the expenditures. The EDA reallocated $20k of the $60k budgeted for professional services to fund the SAC Loan Program. Only $1,400 of the remaining $40k was spent during 2013. In addition, there will be savings in other areas including legal, communications, training, etc. thus resulting in an overall budget savings for the year. Loan Programs A Deferred Payment Agreement was entered into with the Artisan Bistro Café under Local Program A of the City of Prior Lake Sewer & Water Fee Deferral Program on March 18, 2013. The EDA funded the $6,000 City share of the loan which covers the fees for sewer connection, water connection and water tower and therefore, reflects a loan receivable on its balance sheet for this amount. Payments on the Met Council loan will be collected monthly and submitted to the Met Council when invoiced. The first payment of $209.52 was due on June 1, 2013. A Deferred Payment Agreement was entered into with the Honest-1 Auto Care under Local Program A of the City of Prior Lake Sewer & Water Fee Deferral Program on July 11, 2013. The EDA funded the $8,000 City share of the loan which covers the fees for sewer connection, water connection and water tower and therefore, reflects a loan receivable on its balance sheet for this amount. Payments on the Met Council loan will be collected monthly and submitted to the Met Council when invoiced. The first payment of $279.36 was due on October 1, 2013. The following table provides a status of the loans: Business Original Met Council City Share Current Interest Loan Share of Loan of Loan Principal Paid YTD Balance (City) Artisan Bistro Café $11,844.00 $5,844.00 $6,000.00 $5,387.78 $96.83 Honest-1 Auto Care $15,792.00 $7,792.00 $8,000.00 $7,550.33 $88.28 Totals $27,636.00 $13,636.00 $14,000.00 $12,938.11 $185.11 Yearend Projection The EDA Fund is expected to end the year with a fund balance of approximately $79,000 and net cash of $66,000.