EDA Item 4.2 Budget 2025
Request for
EDA Board of Commissioners
Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration Executive Director Flaherty December 9, 2024
PRESENTER(s) REVIEWED BY: ITEM #:
Administration 4.2 – Budget Request
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
X Is a strong organization that is committed to leading the community through innovative communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and expectations in a
cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
It is recommended that the Board of Commissioners adopt a resolution requesting a budget from the City.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
The Economic Development Authority (the EDA) was established by the City Council in September 1992. The Governing
Resolution of the EDA, Section 7, Paragraph B, outlines that annually the EDA shall send its budget to the City Council for
consideration of approval.
Commissioner Compensation
Established by Resolution in October 1992, the Board of Commissioners are to be compensated $25.00 per meeting of
the EDA that they attend. The number of meetings of the EDA fluctuates annually, however for budgeting purposes, a
total of four meetings was estimated for a budget request of $500.00. This budget request is currently included within
the Economic Development Department within the General Fund of the City.
Lease Revenue Bond, 2024A
The EDA is proposing to issue lease revenue bonds pursuant to Minnesota Statutes 469.090 through 469.1082 to finance
a new fire and emergency services building on land located in the City. The Board of Commissioners is scheduled to
consider the issuance and sale of this bond at their meeting on December 9, 2024. Pending approval, the issuance of the
bond would necessitate the recognition of debt service expenditures to be supported by a budget.
The budget request is preliminary and is based on estimated debt service schedules prior to the sale and should be
adjusted as necessary based on the results of the sale. The budget request accounts for debt service interest in the
amount of $403,071.54, and respective fiscal agent fees in the amount of $2,500.00. These amounts due in 2025 will be
financed with proceeds of the bond issuance and will be presented as an adopted budget for the EDA within a Resolution
to be considered by the City Council at their meeting on December 9, 2024.
SUPPORTING DOCUMENTS ATTACHED:
• Resolution 2024-06
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2024-06 Requesting a Budget from the City.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
N/A
1
OTSEGO ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2024-06
REQUESTING A BUDGET FROM THE CITY
WHEREAS, the Board of Commissioners of the Economic Development Authority (the EDA) shall, annually submit a budget
request to the City of Otsego (the City); and
WHEREAS, the Board of Commissioners of the EDA has reviewed the proposed budget and has determined the budget is
adequate to fund the respective operations and debt service requirements for the year 2025.
NOW, THEREFORE, BE IT RESOLVED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF OTSEGO, MINNESOTA:
1. That the following revenues and expenditures (summarized) be submitted to the City as the final budget for the
Economic Development Authority for 2025 as follows:
Revenues
Property Taxes $500
Bond Proceeds 405,572
Total Revenues $406,072
Expenditures
Operating $500
Debt Service 405,572
Total Expenditures $406,072
ADOPTED by the Board of Commissioners this 9th day of December, 2024.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
OTSEGO ECONOMIC DEVELOPMENT AUTHORITY
__________________________________
Jessica Stockamp, President
ATTEST:
__________________________________
Audra Etzel, Secretary