2A, 2013 Proposed EDA Final Budgets

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lt �-ARQEN HILLS MEMORANDUM DATE: November 26, 2012 TO: Honorable Mayor and City Council FROM: Patrick Klaers, City Administrator Sue Iverson, Director of Finance and Administrative Services SUBJECT: 2013 Proposed EDA Final Budgets INTRODUCTION In preparation for adoption of the final budgets at the first meeting in December, this memo addresses information on the EDA budgets and preliminary fund balance projections. 2012 EDA BUDGETS In 2008, EDA expenditures were moved from the EDA Fund to the General Fund under the Planning & Zoning department as there was a negative fund balance, and transfers to replenish the fund were budgeted from the General Fund. In 2012 the EDA expenditures were moved from the General Fund back to the EDA Fund and the conduit debt fees from the Presbyterian Homes project were transferred to this fund as seed money. The expenditures in this fund consist of primarily salary and benefit costs, however auditing, accounting, IT, and insurance have also been allocated. There is no transfer from the General Fund to the EDA Fund in the 2013 budget. We have previously noted the changes to the EDA Fund. Staff recommends that a funding source be found for this fund in the future as the current funding source from the TIF District and the conduit debt fees will not be ongoing. There were no significant changes to the other EDA Funds except that there is no transfer from the PIR Fund to the EDA fund budgeted in 2013. GENERAL INFORMATION The EDA needs to formally adopt the budgets of the authority each year. Since it is a Component Unit of the City, it will then be included in the City's overall budget adoption at the December 11, 2012 meeting.