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Item No. 6 <br />Type of Business: EDA <br />WK: Work Session; PH: Public Hearing; <br />CA: Consent Agenda; EDA:EDA Business City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Charles Hansen, Finance Director <br />Item Title/Subject: Resolution 02-EDA-165 Amending the 2001 Budget of <br />the EDA Fund and the TIF District Funds for Projects <br />Authorized During 2001 and for Transfers to the Debt <br />Service Funds <br />Date of Report: September 5, 2002 <br /> <br /> <br />The original 2001 budget for the EDA Fund contained a certain amount of money for <br />development projects. Specific projects weren’t identified since they can’t be known <br />until a developer comes in with a proposal. <br /> <br />During 2001, the City Council adopted six resolutions supporting five projects. These <br />far exceeded the level of activity anticipated by the budget. <br /> <br />Although the resolutions authorized support for projects, identified revenue sources, and <br />set maximums on the amounts to be expended; they didn’t amend the budget. It is now <br />necessary to adopt a year-end resolution to amend the budget to reflect the projects <br />authorized by the City Council. <br /> <br />In March 2002, I presented a proposal to the City Council to reorganize the City’s <br />system of funds. This was approved by Resolution 5735. A key feature of this proposal <br />was to take the TIF District funds and split them into distinct special revenue and debt <br />service funds. This was proposed to happen as of December 31, 2001 and provide <br />separate accounting of the debt service activity beginning in 2002. Resolution 5737 had <br />authorized the transfers needed to set up year-end balances in the debt service funds. <br /> <br />Discussions with the City’s auditors, MMKR and Co., resulted in a decision that it would <br />be better to present the 2001 annual financial report as though the separate debt <br />service funds had existed all along. This requires a higher level of transfers from the <br />TIF Districts to the debt service funds than just to set up year-end balances in the debt <br />service funds. <br /> <br />Respectfully Submitted, <br /> <br /> <br /> <br />Charles Hansen