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NEW BUSINESS –3A MEMORANDUM DATE: October 22, 2018 TO: EDA Chair and Commissioners Dave Perrault, City Administrator FROM: Gayle Bauman, Finance Director SUBJECT: Preliminary 2019 EDA Budgets Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A EDA Chair and Commissioners Should Consider The preliminary 2019 budgets have been prepared for the Economic Development Authority (EDA) governing board. The Chair and Commissioners may provide feedback for future budget sessions. Background 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 EDA Funds). The EDA Funds are: EDA General Fund EDA TIF District #3 Cottage Villas EDA TIF District #4 Presbyterian Homes Overall, the EDA General Fund is in good financial condition for 2018 with an estimated year-end reserve balance of $346,633 due to the fact that no Gateway Sign expenditures are projected for 2018. This reserve balance will slowly decrease as Gateway Signs are developed over the next 5 years. Tax revenues are likely the only reoccurring source of funding for EDA activities. The City Council approved $120,000 in tax revenues for the EDA as part of the 2018 budget (via a transfer from the General Fund). Staff is proposing to keep this amount the same for the 2019 budget. Discussion Staff respectfully requests the EDA to review these budgets and provide feedback. Staff would also like feedback on a proposal to not bring this forward as an agenda item to the EDA in the future. The EDA does not take action on the budgets and the EDA board and the Council share the same members. It might be more efficient just to deal with this at the Council level. Attachments A. 2019 Preliminary EDA Budgets