Agenda - Council - 10/22/2019 - Laserfiche WebLink

Home

A third type of RLF is a linked deposit program. With a linked deposit program, the EDA works with other government agencies and large non-profit institutions to place a certificate of deposit with the lending institution at below market rate. This action allows the bank to increase its liquidity of funds, gain a higher return on a riskier project and improve collateral coverage. The most fundamental issue in the development of a revolving loan program is the developme of policies and procedures for operating, marketing, financing and dealing with delinquencies defaults. It is important to consider working with development counsel and/or financial adviso to discuss the intricacies and mechanics of a RLF program. The source of capitalization for local loan funds varies by community. Communities are utilizing local sources through the use of excess general fund or municipal utility reserves, Tax Increment Financing reserves and partnerships with banks or utilities to capitalize local revolving loan funds. Limitation of Powers The City Council may place limits on the activities of the EDA in the enabling resolution. These limitations may be placed on the power to issue general obligation or revenue bonds, the power to grant or loan EDA funds, power to enter into limited partnerships, or any other specific power over which the governing body wishes to exercise control. The following is a list of specific areas where the governing body may exercise control (Minn. Stat. § 469.092): 1. that the EDA may not exercise any specified power contained in Minn. Stat. §§ 469.001 to 469.047, 469.090 to 469.108, and 469.124 to 469.134 or that the EDA must not exercise any powers without the prior approval of the City Council. 2. that, except when previously pledged by the EDA, the City Council may by resolution require the EDA to transfer any portion of the reserves generated by activities of the EDA that the City Council determines is not necessary for the successful operation of the authority to the debt service fund of the City, to be used solely to reduce tax levies for bonded indebtedness of the City; 3. that the sale of all bonds or obligations issued by the EDA be approved by the City Council before issuance; 4. that the EDA follows the budget process for City departments as provided by the City and as implemented by the City Council and Mayor; 5. that all official actions of the EDA must be consistent with the adopted comprehensive plan of the City, and any official controls implementing the comprehensive plan; 6. that the EDA submit all planned activities for influencing the action of any other governmental agency, subdivision, or body to the City Council for approval; 25