EDA Minutes 01-11-2012 (Special Meeting)MINUTES
SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, January 11, 2012 - 5:00 p.m.
Commissioners Present: President Bill Demeules, Treasurer Bill Tapper, Tracy Hinz, Matt Frie,
and Council Members Tom Perrault and Brian Stumpf
Staff: Executive Director Megan Bamett - Livgard, Finance Director Tom Kelly, City
Administrator Jeff O'Neill
1. Call to Order
Bill Demeules called the special meeting to order at 5:00 p.m.
2. Purpose
The purpose of the special meeting is to provide an overview of the role of the EDA and the
rules and tools by which it functions to serve as a guide for the newer members of the EDA
and a refresher for other members.
3. Review of EDA Refresher Manual
Staff compiled an EDA Refresher Manual for EDA review. The document consists of
sections related to enabling resolution, bylaws, ordinance, budgets, financial resources,
conflict of interest, staff reports /director updates, and agendas.
(Tracy Hinz joined the meeting at this time.)
EDA Reference Material
The reference material section provides the EDA enabling resolution and bylaws. The
enabling resolution outlines the creation, history and the statutory authority of the EDA.
The EDA has the authority to establish eminent domain for purchasing a property to
correct blight, and to issue bonds and sign off on TIF district agreements to create
economic development within a community. The bylaws establish appointments to the
EDA. The EDA appoints a President, Vice President and Treasurer. New members are
appointed for a six year term. The City Finance Director signs EDA checks. The Treasurer
signs off on EDA invoices.
The EDA coordinates with the Planning Commission and City Council to achieve the
objectives developed in the Economic Development section of the Comprehensive Plan.
Tracy Hinz asked for some background as to how and why the Housing Redevelopment
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Authority (HRA) was eliminated. Bill Demeules pointed out that the HRA was merged
with the EDA in an effort to streamline operations.
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Tom Kelly outlined how projected budgets are generally developed. The City Council
approves the EDA General Fund annually. Staff is provided a monthly EDA budget report.
Ongoing expenses within an approved budget do not require further authorization. There is
some flexibility within budgeted amounts. Staff presented the EDA with information
related to unanticipated and/or out of the ordinary costs and propose action which includes
a funding scenario. City Council approval is required for unbudgeted purchases over
$5,000.
Financial Resources
There was considerable discussion about how decisions are made to use particular funding
sources. Although the EDA has the authority to purchase property through TIF funding it is
recommended that City Council also consider such transactions. Tom Kelly pointed out
that the City often consults the City Attorney to clarify restrictions on spending. TIF
Districts 2, 5, and 6 were created with fewer restrictions and are therefore more often
considered for expenditure. There was some review of how TIF districts function as an
economic tool and the importance of careful expenditure planning so that tax increment
generated is not redistributed when the district expires. Each TIF District has a budgeted
amount for administration fees and expenditures from this source must not be used for
other purposes. There are several TIF districts which will expire or require decertification
in 2012. The GMEF is a revolving loan fund that gets paid back with interest. The EDA
usually issues one GMEF loan per year. Details related to GMEF guidelines and TIF
districts would be provided at a future meeting. Staff will bring forward a request to update
the TIF management plan at the February EDA meeting.
Conflict of Interest
Staff noted that information relating to conflict of interest was included. A form should be
signed to document conflict of interest if one were to directly benefit from an EDA
decision.
Staff Reports /Director Update
The EDA agreed that the staff reports and director updates provided were informative.
Agenda
Staff suggested that the current process of preparing an invoice summary sheet may not be
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necessary in that the computer check proof list is provided. There was some discussion
about how it may be useful to know which items are within budget and the current balance
for that particular budgeted line item. Bill Demeules noted that far too much time was spent
discussing invoices during EDA meetings. He recommended that only invoices for which
there are no funds budgeted or that are over budget be specifically questioned. He pointed
out that a review of meeting minutes would provide information as to what had been
approved and budgeted. The EDA was invited to contact Finance with questions related to
invoices prior to the meeting. Tracy Hinz will be provided invoices for review and
approval as EDA Treasurer.
Paper copies of the agenda packets have, in the past, been printed and mailed to the EDA
by Friday prior to the meeting. The agenda is also emailed to the EDA and posted on the
City's website on Friday. Brian Stumpf noted that it had cost $4.80 to mail the agenda
packet to his house. He suggested that the he would instead read it on the City's website.
The rest of the EDA, with the exception of Tom Perrault, agreed that it was unnecessary to
mail them a paper copy of the EDA agenda. Paper copies of the packet will be available at
the EDA meeting. Jeff O'Neill mentioned that the City may explore the use of an IPad at
meetings to save the cost of printing apd mailing documents.
4. Adlournment
BILL DEMEULES MOVED TO ADJOURN THE SPECIAL MEETING AT 5:54 PM.
MOTION WAS SECONDED BY BRIAN STUMPF. MOTION CARRIED 6 -0.
Recorder:
Approved:
Attest: