2020-04-22 Council WS & Meeting Minutes - Approved

Home Browse Search

City of Centerville Council Meeting Minutes April 22, 2020 3. Resolution #20-0XX - Transfer of EDA Funds out of the General Fund Administrator Statz requested that a one-time transfer of funds from the General Fund to a separate EDA account be made at the beginning of each year and stated that Council needed to consider whether or not the remaining EDA Funds from what is budgeted comparative to what is spent should remain with the EDA allowing for a roll over from year to year. Finance Director DeJong stated that the Auditors recommend that Council consider that if it is their desire to transfer any remaining funds at the end of the year from the General Fund to the EDA as resolution is needed. He explained that the EDA has separate funds and is required to do so, but unspent funding is what is being discussed or carry over from year to year. Administrator Statz stated that it would be similar to transferring property to them that Council would not ask for remaining pieces or funds to be returned at the end of the year. He also stated that these funds would remain with EDA. Lengthy discussion ensued regarding check signing authority (Treasurer and one (1) other officer named in a resolution) with others being placed as signers if Council desired, the establishing documents for the EDA did not address similar procedures, that the EDA did appear before Council with goals and a strategic plan, that past awarding of funding to local businesses may have not taken into consideration of City Code violations or similar situations, viable programs bringing businesses together, putting the cart before the horse for some issues, accountability and their current budget of $22,800. Administrator Statz stated that the EDA was established in 2017 with a budget allocation in 2019 of $20,000 plus per diem and fixed costs and in 2020 of $22,800. He stated that at the time, EDA did not have a strategic plan but they have appeared before the Council since. They have been involved with the rebranding efforts, business sustainability during the COVID-19, etc. Discussion ensued regarding the EDA’s authority to spend funding without Council’s approval, Council’s hesitation for allowing their authority, the structuring of the EDA and whether they should be an EDC as in previous years. They discussed the structure of the EDA, Council Members serving on board, monitoring funds, productive value for expenditures, planning, and oversight. Mayor Love stated that the EDA has the authority to spend their funding without receiving Council authority and this is an accounting function. He also stated that this does not take away or give power to/from them. He felt that it impacts them only if Council does not allow unspent funds to be saved separately in their funds. Administrator Statz asked whether Council was uncomfortable with an EDA which is an independent body and when it was incepted the most conservative boxes were checked. He stated that they do not have the ability to issue bonds, TIF financing and do not have the ability for levying with the only source of funding from the General Fund. He stated that the EDA has very minimal financial functioning or the lowest level of functioning structure. He also stated that there are two (2) members of Council who are appointed to the EDA. He reported that they are organized slightly above an EDC which is an advisory board. He also reported that he felt that the last EDC failed due to the lack of meaningful projects and individuals/businesses lost interest. Page 5 of 11