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Consider Year 2009 EDA Budget and Resolution Regarding EDA Levy <br />August 11, 2008 EDA Meeting <br />Page 3 of 3 <br />EDA Fund Balance Designation Policv <br />An amount of $149,400, which reflects the estimated cash balance after general operating expenses, <br />is proposed to be designated within cash reserves fox future economic development project <br />expenses. Capitalizing this fund is especially critical fox the EDA to have the financial means to <br />secure property for future industrial or commercial development needs. As the EDA builds up a <br />reserve balance for future EDA projects we should review the idea of adopting a fund balance policy <br />to designate funds to meet this goal. The EDA generally receives two tax settlements a year in July <br />and December, and in setting a fund balance policy we should retain funds at year end for cash flow <br />purposes and designate the remaining for EDA development projects. Please see the attached draft <br />policy which is consistent with the City's fund balance policy. Finance Director Tim Simon put <br />together a draft policy for discussion purposes. <br />Information -Related EDA Program Fund Balance <br />A copy of the most recent balance sheets for the various funds which the EDA has accessed fox <br />projects axe attached as information. These funds include the: <br />• EDA Micro Loan Fund with a cash balance of $970,360 <br />• EDA DTED Loan with a cash balance of $153,209 (funds derived from 2003 federal grant <br />fox Sportech expansion) <br />• City Development Fund with a cash balance of $132,713 (City-controlled fund for capital <br />projects such as Northstax Business Park and Gateway Business Park) <br />Actions Requested <br />Staff requested the EDA consider the following actions in order for the City to certify its proposed <br />maximum levy, including EDA and HRA levies, to Sherburne County as due in September: <br />1) Approve the year 2009 EDA Budget as presented, and adopt the attached Resolution Establishing <br />the EDA Tax Levy for Collection in Year 2009. <br />2) Consider action on draft EDA Fund Balance Designation Policy. <br />3) Adopt the attached Resolution Establishing the 2009 Referendum Tax Levy fox YMCA. (Finance <br />Director Tim Simon will discuss this item at the EDA meeting). <br />S:~EDA~ED Admin~EDA Budget~EDA 09 BUDGET v2.DOC <br />