4.3. SR 09-05-2017
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
City of Elk River
City Council
Resolution 17-____
A Resolution of the City Council of the City of Elk River Approving an EDA
Fund Transfer to the Jobs Incentive Microloan Program Fund from the
Reserve Fund
WHEREAS, The Economic Development Authority of the City of Elk River (the “EDA”)
has created and maintains a reserve fund (the “Reserve Fund”); and
WHEREAS, The EDA has created and maintains a fund for the Jobs Incentive Microloan
Program (the “Jobs Incentive Microloan Fund”); and
WHEREAS, The purpose of the Jobs Incentive Microloan Fund is to encourage the creation
of high paying and quality jobs in the city by assisting existing businesses with expansion and
attract new businesses with local operations to expand the local economy; and
WHEREAS, The Jobs Incentive Microloan Fund needs $66,000 to fulfill a potential loan
request; and
WHEREAS, The EDA desires to make a transfer in the amount of $66,000 from the reserve
Fund to the Jobs Incentive Microloan Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, as follows: approve a transfer in the amount of $66,000 from the EDA’s
Reserve Fund to the EDA’s Jobs Incentive Microloan Fund.
City staff and EDA staff and consultants are authorized and directed to take all actions
necessary to effectuate the transfer.
th
Passed and adopted this 5 day of September, 2017.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk