Lindstrom EDA holds 2027 budget flat while seeding small marketing line from fund balance

The Lindstrom Economic Development Authority on July 14 reviewed a proposed 2027 budget that holds levy and transfers steady while using a small portion of EDA fund balance to cover the authority’s share of the city’s comprehensive-plan update and an initial marketing push. Dan, who presented the budget, said the EDA entered 2026 with a fund balance of $137,257 and that he removed a $12,000 dock purchase from that balance when preparing the proposal.

Why it matters: the budget reflects council direction to keep overall levy increases low, but members warned that debt service and property hold costs consume a large share of the EDA’s revenue and limit options for new initiatives. Several members advocated redirecting money into marketing to capitalize on downtown momentum.

Dan told the board that revenues for 2027 were projected to remain flat at $134,304 and that the EDA’s share of the comprehensive-plan effort is expected to be about $7,000. He said he incorporated $4,000 of fund balance in the draft to cover the EDA’s portion of the plan. “At the end of 2025, the EDA did have a fund balance of 137,257,” Dan said. He proposed reallocating three existing line items and adding $1,100 to reach a $5,000 starter budget for city marketing materials such as stock photography.

Members pressed for clarity on how those marketing dollars would be used and whether the EDA should ask council for additional transfers if it wanted more substantial marketing investment. One member warned that brochures and wayfinding are “terribly, terribly out of date” and urged reallocation of existing funds where possible to maintain downtown momentum.

The presentation also highlighted that property-related hold costs (debt service, insurance, taxes, repairs) represent the largest component of the EDA budget. Dan outlined the debt-service timeline and said the EDA will not see major debt reductions for several years; a portion of payments fall off around 2030 and a further reduction around 2032, which could free modest capital for other uses.

What’s next: staff will refine cost estimates for the comprehensive-plan work and the proposed marketing item and present budget details, including the EDA’s priorities, to council during the upcoming budget workshop. The board set the item up for a voteable agenda the next time the EDA meets after receiving council input and refined numbers.

The meeting also included procedural approvals (agenda and minutes) at the start of the session before substantive discussion began.