EDA Minutes 01-26-1994MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Wednesday, January 26, 1994 - 7:00 p.m.
City Hall
MEMBERS PRESENT: Chairperson Ron Hoglund, Vice -Chairperson Barb
Schwientek, Assistant -Treasurer Bob Mosford,
Al Larson, and Harvey Kendall.
MEMBERS ABSENT: Patty Olsen and Clint Herbst.
STAFF PRESENT: 011ie Koropchak.
STAFF ABSENT: Treasurer Rick Wolfsteller and Jeff O'Neill.
1. CALL TO ORDER.
Chairperson Hoglund called the EDA meeting to order at 7:00
p.m.
2. CONSIDERATION TO APPROVE THE NOVEMBER 9. 1993 EDA MINUTES.
Harvey Kendall made a motion to approve the November 9, 1993
EDA minutes. Seconded by Bob Mosford and with no additions or
corrections, the minutes were approved as written.
C3. CONSIDERATION TO ELECT 1994 EDA OFFICERS.
Harvey Kendall made a motion to elect the existing EDA
officers as 1994 EDA officers: President, Ron Hoglund; Vice -
President, Barb Schwientek; Treasurer, Rick Wolfsteller;
Assistant -Treasurer Bob Mosford; and Secretary, 011ie
Koropchak. Barb Schwientek seconded the motion and with no
further discussion, the motion passed unanimously.
4. CONSIDERATION TO REVIEW AND ACCEPT THE YEAR-END EDA FINANCIAL
STATEMENTS, ACTIVITY REPORT. AND PROPOSED 1994 BUDGET.
Assistant -Treasurer l:.)sford explained the prepared financial
statements with EDA members, starting with the Income
Statement. Annual revenues totaled $139,410.00 and
expenditures totaled $200.00 for a net income of $139,210.00.
The beginning year fund balance was $497,604.08 and the end
year fund balance was $636,814.08. Under revenues, the $600
loan fee was from the Custom Canopy closing, only, as the
Standard Iron approved loan has not closed. Under
expenditures, no legal fees were expended as the applicants
are now liable for those costs, the $200 service fee is for
the two GMEF loans serviced by Marquette Bank, and no interest
adjustment - notes was noted. Because the EDA's annual
meeting is prior to the deadline for notification of tax
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EDA MINUTES
JANUARY 26, 1994
Information, the Interest Income - Investment and Interest
Adjustment - Notes numbers are taken from the City Ledger
Accounts and are subject to an explanation of an audit.
Under the assets of the EDA Balance Sheet, the remaining
principal amounts of the five GMEF loans plus the approved and
remaining appropriations totaled $636,814.08. With no
liabilities, the EDA's net worth is $636,814.08.
With a January 1994 cash balance of $70,504.21; projected
receipts from the six GMEF loans, interest income - investment
and loan fees of $250,316.89; and the projected expenditures
of $201,250.00, the expected December 1994 cash balance is
$119,571.10.
Harvey Kendall made a motion to accept the 1993 EDA financial
statements, proposed 1994 budget, and activity report. Barb
Schwientek seconded the motion and without further discussion,
the motion passed unanimously.
5. CONSIDERATION TO REVIEW YEAR-END BALANCES OF THE GMEF, UDAG.
AND ERG.
The year-end UDAG report indicated a cash fund balance of
$71,170.80. The projected remaining principal and interest
payback due through January, 2000 is $165,497.45. In order
for the EDA to utilize the UDAG dollars, City Council must
authorize the expenditure of UDAG funds which were earmarked
for economic development. Previously, the EDA has requested
funds from the UDAG upon approval of a GMEF loan and the
request has been approved.
The year-end SCERG report indicated a cash fund balance of
$33,346.77. The projected remaining principal and interest
payback due through November, 1999 is $175,685.07, providing
the applicant utilizes the entire approved $170,000. Of the
remaining $175,685.07, the City is allowed to retain
approximately $98,918.82. These dollars were designated in
the grant application for GMEF use.
Of the five approved GMEF loans, principal and interest
paybacks are current. The approved GMEF Loan No. 007 for
Standard Iron has not been disbursed; however, Its anticipated
to close in March.
Upon review of the 1994 Cash Flow Projections, the UDAG and
SCERG cash fund balances, the original intent of the GMEF to
be self -supportive and the potential for a change in the City
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EDA MINUTES
It JANUARY 26, 1996
Council mix and the established tract record of the EDA, the
following motion was made. Barb Schwlentek made a motion
requesting City Council approve the UDAG cash fund and
projected principal and interest payback dollars for GMEF use.
If Council approves the requested UDAG expenditure, then the
EDA requests a 1996 appropriation of $100,000 from the Liquor
Fund, a reduction from the original $200,000 request. Al
Larson seconded the motion and without further discussion, the
motion passed unanimously. This would assure the EDA members
and the community to the longevity of the city's revolving
loan fund program and its commitment to economic development.
The EDA members discussed the City's monthly record of receipt
of the Muller payback payments as requested. Prior to
consideration of whether to establish a late penalty period
and fee, the EDA requested additional information as to the
actual date of payments and the terms and conditions of the
closing documents. Possibly, it could be a cash flow problem.
6. OTHER BUSINESS.
a) Standard Iron & Wire Works, Inc. Update - The loan is
expected to close as scheduled.
C7. ADJOURNMENT.
Al Larson made a motion to adjourn the EDA meeting. Harvey
Kendall condcd the motion and with no further comments, the
meeting adjourned at 7:55 p.m.
C)01-- Kv\ C-9��
011ie Koropchak, EDA Executive Director
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