HomeMy WebLinkAbout1994 Resolution No. 002RESOLUTION NO. ,z_,,
SERJFS OF 1994
A RESOLUTION APPROPJUATING FUNDS FOR THE ENGLEWOOD SMALL
BUSINESS DEVELOPM'.!!NT GORPORATION AND APPROVING MONIES FOR THE
ENGLEWOOD SMALL 11USINESS DEVELOPMENT CORPORATION.
WHEREAS, the Eni:lewood City Council haa previously indicated strong support for the
Englewood Small Buainesa Development Corporation; and
WHEREAS, the Greater Englewood Chamber of Commerce, the Engle wood Downtown
Development Authority and the City of Englewood have committed to s upport a non-profit
co rporati on to make loan s up to 130 ,000 to small and mediwn sized busine sses in
Englewood; and
WHEREAS, in October, 1992 the Englewood City Council appropriated $62,500 as their
first co ntribution of their commitment; and
WHEREAS , a report bas been received :rowing the favorable perfonn nce of the
Englewood Small Business Developm ent c ,,rporation ; and
WH EREAS , the City Englewood City Council desires to make a second contribution of
$62,500;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
E N GLEWOOD, COLORADO, THAT:
~-The following change in appropriatio ns is hereby made to the 1994 Budget of
the City of Englewood, Colorado for the payment of $62,500 to the Englewood Small Busineu
Development Corporation (ESB DC) fo 1· the ~urpose of making loans to Englewood
businesses in accordance with ESBDC By-laws.
SOURCE OF tJJNPS ·
Unappropriated General Fund Balance $62,500.00
USE OF tJTNPS :
Commwiity Dev elopment Department for contribution
to Englewood Small Business Development Corp. $62,500.00
5£l:tillll...2. The City Manager is hereby authorized to pay $62,500 to the Englewood Small
Business Development Corporation (ESBDC) for the purpose of making loan s to Engle wood
Businesses in acco rdance with ESBDC Ey -1.i<ws.
?a:t,ST: , . -,J
@C,c-vfl ~i,
Patricia H . Cro w, City Clerk
I, Patrici a H . Crow, City Clerk for t!J.e City of Englewood, Co lorado, hereby certify the
above is a true copy of &!solutio n No .~eries of 1994. a.zr-L . /)
,/ C,lty I# V ,-,,-4:,U
Patricia H. Crow
Da te
Januar 17, 1994
INfTTA TE D BY
STAFF SOURCE
COUN CIL GOAL
COUNCIL COMMUNICATION
Agenda Item
II C
Subject Rt-solu tion Appropriating
Funds for Englewood
Small Business
Development Corporation
Depa rtment of Financial Se rvices
Frank Grvgle wicz, Acti ng Directo r of Fina ncial Services
Advance Englewood 's pro-business commitment.
15.SUE/ ACTION PROPOSED
Staff seeks support fo r a resolution appropriating funds from th e General Fund to fund the
Englewood Small Business Development Corporation (ESBDC ). The total a mount originally
requested by the organization was $125,000 . The City a ppropriated and made payment of
56:!,500 to the ESBDC i.1 1992. Thi s resoh!tion, if approved, would a ppropriate the
remaining contribution of 562,500 for 1994 .
PREVIOUS COUNCIL ACTION
The proposal to fund the ESBDC was origi nally presented to Council at the Jul y 6, 1992
study sess ion . On October 5, 1992, Counci l adopted and approve Resolution N umbe r
Eighty-One . Se ries of 1992 . The resoh .. 1ion a ppropria ted $62,500 fo r the ESBDC for the
purpose of making loans to Engle wood :,usinesses in accordance wi th their by-law s. The
council communication included "ith the Resolution did inform Council that $52,500 would
be appropriated (if funds were avai lab le) in 1993 .
BACKGROUN D
Council has committed itself to Englewood 's economic and business development. [n
keeping with this , Council has indicated strong support for the ESBDC . The ESBDC 's
m issi on is to make loans to Eng le wood businesses that have been unable to find a dequa te
bank financing . At the study session, a request Will' made fo r $125,000 from th e City to
help fund the organization. The City Attorney recommended paying half of the funds in
:992 and half after the ESBOC had established a track re cord . At the January 3, 1994
Council meeting, Loren Shepherd presented a report lo Council on the ESBDC 's first year.
He also requested th e remaining commitment of $62,500 be paid .
PROS AND CONS OF OPTIONS REVIEWED
Pros : Adoption of a resolution approp riati nr, funds for the ESBOC shows the co mmitment
of Council to economic and business development. The fund s are important to help small
busi nesses get establi shed in Englewood . The ESBDC ma y often be the onl y means of
borrowing for some small businesses .
Cons: In a period of reduced revenue~ and personnel cuts , thi s action may incur th e anger
of the public as we ll as those employees affected by budget cuts or la yoffs . It also may be
considered an improper use of public funds-that the City is improperly using funds for
traditionally private sector activities (taking bank bus iness away by providing an alternative
source of funds).
STAFF ANALYSIS
Stall su pports funding the ES BDC's goal s and reco mmends adopting and approving a
resolution appropriating 562 ,500 in requested funding .
FINANCIAL IMPACT
Funds appropriated from fund balance total $62 ,500 fo r 1994 .