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ARDEN HILLS EDA MEETING — JULY 25, 2016 EDA Treasurer Iverson stated the EDA is a blended component unit of the City of Arden Hills which makes EDA Funds Special Revenue Funds of the City. Annually we are required by the State to set budgets for the City's General Fund and all Special Revenue Funds (which includes all the EDA Funds). These EDA Funds are: EDA General Fund EDA Revolving Loan Fund EDA TIF District #2 Round Lake EDA TIF District #3 Cottage Villas EDA TIF District #4 Presbyterian Homes 2 EDA Treasurer Iverson commented overall, the EDA General Fund is in good financial condition for 2016 with an estimated year-end reserve balance of $218,067, but the EDA and City Council may want to identify dependable, reoccurring revenue for EDA activities in the future other than General Fund transfers as the primary funding source of revenues. EDA Treasurer Iverson explained the fund balance being projected at the end of the year includes funds that are intended to be used for the Gateway Signs program (approximately $45,000). Tax revenues are likely the only reoccurring source of funding for EDA activities. The City Council approved $30,000 in tax revenues for the EDA as part of the 2015 budget and $60,000 in tax revenues for the 2016 budget. The 2017 budget shows a transfer in the amount of $90,000, which can be adjusted as priorities change. Staff requested feedback from the EDA on the proposed 2017 budget. EDA Commissioner Wicklund requested further information on the EDA Fund for the Cottage Villa TIF District. EDA Treasurer Iverson discussed how Cottage Villa funds were being collected by the City noting this district was extended in 2009 for an additional 10 years. EDA President Grant commented on the TIF potentials within TCAAP. Discussion ensued regarding how existing TIF funds could be used for affordable housing. Stacie Kvilvang, Ehlers & Associates, advised the EDA did not have to make a decision on these funds now, but had time to review their options. EDA Commissioner McClung anticipated that as TCAAP came on board, the EDA would want to have funds available to assist with housing projects. Further discussion ensued regarding how TIF funding could be used on TCAAP. MOTION: EDA Commissioner Holmes moved and EDA Commissioner Holden seconded a motion to accept the Preliminary 2017 EDA Budgets. The motion carried unanimously (5-0).