12-05-11 EDA Packet - Laserfiche WebLink

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Budget In spite of the EDA not meeting since 2004, it has been acceptable to have the City Council • approve the EDA budgets. Director of Finance and Administrative Services Sue Iverson has discussed this issue in the past with Steve Bubul, TIF Bond Consultant from Kennedy and Graven. Since the City Council is also the EDA,there are no legal problems with how the City has been approving EDA budgets and spending EDA monies. However,per state statutes and the EDA bylaws, it is appropriate for the EDA to start meeting again at least annually to approve its budget. In the "early years"of the City EDA,budget funds came from TIF districts. The budgets mainly provided for financing staff time spent on economic development activities. After a few years, TIF funds became scarce and the EDA became less active. During these years the staff time for economic development activities remained in the General Fund budget. Today,the TIF funds available for staff time dedicated to economic development activities has rebounded and staff time spent in economic development has increased. Accordingly, staff time and other expenses have again been shifted out of the General Fund and into the EDA Fund. The proposed 2012 EDA budget has been reviewed with the City Council at budget work sessions and is included within the draft 2012 City budget. Attached is the draft 2012 EDA budget. Sue Iverson, Director of Finance and Administrative Services, will review the 2012 EDA proposal at the meeting. Additionally, staff will review some EDA budget funding options for the next few years. EDA Activities/Work Plan The EDA should be the focal point for economic development activity in the City. The EDA should be the pro business arm of the City. Meeting as an EDA forces the City Council to "put on a different hat"and to approach City issues and challenges from a business point of view. The EDA can do some things that the City Council cannot do such as own and operate public parking facilities; be a limited partner in an economic development partnership; and buy, sell and/or lease land for economic development activities. At the next EDA meeting in early 2012,the work plan and goals should be discussed. Issues and projects to talk about include redevelopment options in the B2 district and the status of existing TIF districts. Recommendation It is recommended that the EDA approve the proposed 2012 EDA budget. Attachments: City Resolution 96-08 EDA Resolution 97-01 City Resolution97-18 EDA State Statutes 469.090-469.1082 2012 EDA Budget