The economic development fund was established on June 18, 2007 by a unanimous vote of the city council by transferring $2.18 million from the general fund to the new economic development fund. It was set up to meet the city’s commitment made to Google to pay for up to 400 parking spaces for its employees, for up to four years for an estimated total cost of approximately $2,029,017. Google’s hiring was not as rapid as it had initially projected, and that left a bit under half of the money untapped.

The Government Accounting Standards Board (GASB) No. 54 has also changed the definition of what funds qualify as special revenue funds – the city’s economic development fund was established as such a fund, but no longer qualifies under the new GASB 54 definition, and thus needs to be blended back into the general fund.

The council’s resolution also amended the current fiscal year 2011 budget in some other ways as well, so that expenditures from funds that exceeded budgeted amounts are appropriately covered. Among those expenditures covered were: the International City/County Management Association fire protection study ($54,000); higher maintenance costs for Superior Dam ($35,000); higher snow removal costs and cleanup from the recent Plymouth Road mudslide and pavement markings ($500,000).

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A more detailed report will follow: [link]