Economic development corporation budget steady; council considers 4A-to-4B ballot pathway

Bonnie, the city’s economic development director, presented the Economic Development Corporation (Type 4A) budget to the council and described uses of the sales‑tax‑derived fund. The EDC is a Type 4A corporation (authorized in a 1994 vote) that uses sales taxes to recruit primary‑sector employers; it cannot ordinarily fund retail or some quality‑of‑life projects that a Type 4B could. Staff said the EDC’s unassigned fund balance is projected at approximately $5.8 million, with $468,000 restricted. The draft budget includes incentives for a manufacturing employer that recently located to the city (incentives tied to anticipated employee counts) and a $100,000 façade grant match program for downtown businesses. Salary reimbursement for the city employee who serves as EDC director appears in the administrative budget lines; the EDC board allocated a 33% cost‑of‑living adjustment for that position in the plan presented. Council and staff discussed the possibility of converting or supplementing the Type 4A with a Type 4B economic development corporation to allow quality‑of‑life projects (parks, recreation, downtown amenities). Staff said recent changes at the Secretary of State’s office may allow a single ballot proposition that both creates a 4B and authorizes funding from the 4A proceeds in one vote, reducing the historical risk of two separate elections. A remaining open question is how existing 4A cash and outstanding incentive commitments would be handled on a successful vote; staff will research whether assets would transfer automatically or whether both entities would coexist for a period.