4.3. SR 09-05-2017 - Laserfiche WebLink

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Request for Action To Item Number Mayor and City Council 4.3 Agenda Section Meeting Date Prepared by Consent September 5, 2017 Amanda Othoudt, EDD Item Description Reviewed by Resolution: Budget Amendment for Jobs Incentive Cal Portner, City Administrator Microloan Program Reviewed by Action Requested Adopt, by motion, a resolution approving transfer of $66,000 to the Jobs Incentive Microloan Fund from EDA reserves. Background/Discussion The purpose of the Jobs Incentive Microloan Program is to encourage the creation of high paying and quality jobs to the city by assisting existing businesses with expansion and attract new businesses to the city whose local operations will help expand the city’s economy. The program utilizes former Minnesota Investment Fund (MIF) dollars that were issued to the city by the State of Minnesota. The program has been successful, with two loans issued to date and one pending application. The program utilizes MIF and therefore there are specific rules and guidelines outlined in the policy. The local government must follow the RLF guidelines that were submitted with the initial MIF application. Although the guidelines provide the policies and procedures for the reuse of these funds, any monetary transfers into this account must also adhere to the same requirements that are followed by the MIF program. The EDA recommended approval of the transfer at their August 21, 2017, meeting. Financial Impact The RLF Fund Balance as of August 3, 2017, is $134,193.58. The EDA Cash Reserve Balance as of August 4, 2017, is $1,375,749. Transferring $66,000 from the EDA Cash reserves to the Jobs Incentive Microloan Fund program could assist a new applicant with the creation of 74 new jobs to the city. Attachments  Resolution The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity