CCP 12-17-2001 - Laserfiche WebLink

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tit ~ ~ EN HILLS MEMORANDUM TO: FROM: SUBJECT: Adoption of 2002 Economic Development Authority (EDA) Budget DATE: December 12, 2001 Back!!round . Actions taken by the Minnesota Legislature at the 2001 session will have a significant negative impact with respect to 2002 and later tax increment received by the EDA. For 2002, tax increment revenues are forecast to decline $147,882 or 28.4% from 2001 tax increment received. Even with this reduced revenue level, it appears that enough increment will be generated to service the debt obligations of the G.O. Tax Increment Bond Fund No. 325 ($286,315 in 2002). Provosed 2002 Bud!!et Summary Total 2002 EDA revenues of$418,263 are budgeted to exceed 2002 expenditures and debt service payments of $387,725 by $30,538 (Attachment A). The budget assumptions are that the Chesapeake Companies development project will still be in the parcel assembly stage in 2002 and that any costs the EDA may incur in the support of this effort will be reimbursable by the developer. The Commissioners may also note the budgeting of$14,735 in Fund No. 701 total salary costs to support the Chesapeake project as it ramps up in 2002. There are no sidewalk/trail improvement costs budgeted in TIF District No.3 (Cottage Villas) Fund No.3 although the District will have a forecast $40,300 ending cash balance as of December 31, 2002. . Activities in the Business Revolving Loan Fund No. 702 continue to reflect just the collection of note installment payments from Guidant from a prior Minnesota Department of Trade and Economic Development (DTED) loan. The last installment loan payment on this loan is scheduled to be received in May, 2003. The remaining unpaid principal balance at December 31, 2001, is $36,716. The ending cash balance in this fund is forecast at $104,058 as of December 31,2002. The EDA has already established criteria for making business loans from this program.