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13 4859-6924-4449\6 When the EDA funds are deposited by the treasurer in a bonded depository, the treasurer and the surety on the treasurer’s official bond are exempt from liability for the loss of the deposits because of the failure, bankruptcy or other act or default of the depository bank. However, an EDA may accept assignments of collateral from the depository bank to secure the deposits just as assignments of collateral are permitted by law to secure deposit of the EDA’s City. (Minn. Stat. § 469.099, Subd. 3). Budget, Fiscal Year, Taxes, Audits and Reports EDAs have the ability to receive funding from virtually any source, public or private, including the general funds of the underlying City. In addition, EDAs utilize administrative fees from loan or grant agreements, guarantees or other credit enhancements or contributions from local businesses or organizations. The fiscal year of the EDA must be the same as that of its governing City. (Minn. Stat. § 469.100, Subd. 3). Annually, the EDA is required to submit its budget to the City Council, and it must include a detailed written estimate of the amount of money that the EDA expects to need from the City to do authority business during the next fiscal year. The EDA’s needed amount is what is needed in excess of any expected receipts from other sources. (Minn. Stat. § 469.100, Subd. 2). One of the fringe benefits of City general fund monies lies in the fact that their use may not be as restricted as monies from other funding sources. This enables an EDA to use them for virtually any economic development purpose, as long as appropriate findings are made and safeguards imposed to demonstrate that the use will promote economic development in the City. Such uses include write downs, grants or loans, working-capital loans and the purchase of limited partnership interests. For example, one EDA received funding using dollars remaining in a City’s bond fund after all bonds were retired, and it used these dollars to capitalize a revolving loan fund. In addition to the annual budget, the EDA must submit a detailed annual report to the City Council outlining its activities, receipts and expenditures during the preceding calendar year. The report may also include other matters and recommendations that the EDA deems advisable for the economic development of the City. (Minn. Stat. § 469.100, Subd. 4). On an annual basis, the financial statements of the EDA must be prepared, audited, filed and published or posted in the manner required for the financial statements of the City. The financial statements must permit a comparison and reconciliation with the City’s accounts and financial reports. The report must be filed with the State Auditor by June 30th of each year. The auditor will review the report and may accept it or audit the books of the EDA for cause. (Minn. Stat. § 469.100, Subd. 5). City Levy of Taxes for EDA Activities The City may, at the request of the EDA, levy a tax in any year for the benefit of the EDA in an amount not more than 0.01813 percent of estimated taxable market value. The amount levied must be paid by the City treasurer to the treasurer of the EDA, to be spent by the EDA. (Minn. Stat. § 469.107, Subd. 1). A City may increase its levy for economic development authority purposes under Minnesota Statutes 469.107, Subdivision 1 in the following way. The City Council must first pass a resolution stating the proposed amount of levy increase. The City must then publish