09-08-14 - Laserfiche WebLink

Home Browse Search

ARDEN HILLS SPECIAL EDA MEETING— SEPTEMBER 8, 2014 2 Secretary Klaers stated that the EDA is a blended component unit of the City of Arden Hills which makes EDA Funds Special Revenue Funds of the City. Annually the City is required by the State to set budgets for the City's General Fund and all Special Revenue Funds (which includes all the EDA Funds). Secretary Klaers indicated that the EDA funds consist of the EDA General Fund, the EDA Revolving Loan Fund, the EDA TIF District #2 Round Lake, the EDA TIF District #3 Cottage Villas, and the EDA TIF District#4 Presbyterian Homes. Secretary Klaers stated that overall, the EDA General Fund is in good financial condition for 2014 with an estimated year-end reserve balance of $208,166; but the EDA and City Council need to identify dependable, reoccurring revenue for EDA activities in the future as the primary funding source of revenues from the Round Lake Road TIF District will be done in 2015. The other main reason the EDA General Fund is in good condition for at least 2014 is because of the transfer of conduit fees into this fund for operating expenses. Secretary Klaers commented that unless the EDA and City Council decide to change priorities, the expenses for economic development related activities will exist regardless of whether they are in the City General Fund budget or if they are in the EDA General Fund budget. Today, economic development expenses for personal services and for other services/charges are estimated to be in the $130,000 per year range. Secretary Klaers stated that the fund balance being projected at the end of the year includes funds that are intended to be used for gateway signs (approximately $90,000). Tax revenues are likely the only reoccurring source of funding for EDA activities. Staff is recommending that $30,000 in tax revenues for the EDA be part of the 2015 budget and that this amount be increased in future years as needed. Secretary Klaers reported that one funding option is to do an EDA levy. Another option is to do a transfer from the General Fund. The advantage of a levy is that funds being levied for EDA activities can be separated out when presenting the budget while still being part of the City's overall levy amount. The key point is to make the spending of the funds transparent. Secretary Klaers asked for input on this item. He noted that the EDA will review the final budget at its October meeting. Commissioner Holmes did not support a special EDA levy. Secretary Klaers explained how the EDA levy would be a part of the General Fund tax levy. It was noted that the EDA levy would require separate approval by the EDA. MOTION: EDA Commissioner Holmes moved and EDA Commissioner Werner seconded a motion to approve the 2015 Proposed EDA Final Budgets as presented with no separate EDA tax levy. The motion carried unanimously (4_0)•