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HomeMy WebLinkAbout08/03/1998 MINUTES OF THE COMMUNITY DEVELOPMENT CORPORATION OF THE CITY OF THE COLONY HELD ON AUGUST 3, 1998 A SPECIAL SESSION OF The Community Development Corporation of the City of The Colony (413) was called to order at 6:15 p.m. with the following members present: Don Goebel President Rick Manser Member Sue Walden Member Vicki Briggs Member Susan King Member and with Members Seay and Bullard absent; thus a quorum was established. Also in attendance was Pam Nelson, Director of the Parks & Recreation Dept., and Tony Johnston, Director of Finance. 1. REVIEW AND CONSIDERATION OF THE 4B BUDGET. Tony Johnston presented the budget he had prepared through September 1998 that will be presented to City Council tonight, August 3, for their approval. Tony is looking for Council to approve the expenditures in column 2 which are $20,325; that includes one month of a salary for an individual coming in at $65,000 with fringe benefits, a little bit of overtime, a part time temporary, and some other expenditures. Tony stated that once City Council approves these expenditures, then he is responsible to make amendments. A request is made to Tony and he will move the numbers around. Tony has taken exactly what the economic development in 4A had and made it an identical expenditure line item for 4B. This is a bare-boned budget. Tony stated he will tell City Council that he came up with these numbers and also make sure they understand that these numbers are going to move back and forth once the director comes in because the director may want to change the numbers. This will give the new director something to work with, then start in October with the new budget and aligning things. Tony stated the strategy for this budget is not to have City Council have anything to pick at and just approve it - then after that, approve it by project and leave the rest for simple administration in order for there to accept it. Lanny wants the budget approved tonight so he will be able to present it to new applicants. Tony will tell City Council that they are accepting it for 4A and 4B. Member King stated that any money left over goes into the General Fund. We are not allowed to roll over money left over at the end of the fiscal year unless it is a project. Member King asked Tony if we have $15,000 left over at the end of September, what happens to that money? Tony stated that money would be rolled into next year's budget. Your money is never touched by the general fund. President Goebel asked Member King how we handled interest. Member King stated that money from interest was rolled into a project - we stated that money is earmarked for that. Ms. Nelson asked if that is at the end of each year or the existence of the sales tax. Member King said it is the end of the year. Member Manser agreed that it was at the end of the year, but that it was discretionary. Tony asked if this is true, how do you save money for future projects? Member King said you have to allocate it - allot it to a project. Ms. Nelson stated that whatever your fund balance is, that money will go towards "x" project. Tony said that it was his belief that the general fund can't accept money from 4A & 4B because that's allocated strictly for economic development. Member Walden stated she wanted City Council to understand and know that we did not do this budget and that it is a projection. Ms. Nelson stated that it is a projection more in line with meeting EDC needs - trying to be consistent with bottom line amounts. Member King read from the Attorney General's Handbook - If at the close of any fiscal year the Board of Directors shall determine that sufficient provision has been made for the full payment of all current expenses together with all amounts payable on the contracts, agreements, bonds notes, and other obligations of the corporation and that all of their terms, provisions, covenants therein have been met, then any net earnings of the corporation derived from sources other than the sales & use taxes collected for the account of the corporation pursuant to Section B of the Act thereafter occurring and lease payment received in connection with projects financed pursuant to Section 4B of the Act shall be paid to the city. All sales & use taxes collected for the account of the corporation pursuant to Section 4B of the Act and lease payments and other revenues received in connection with projects financed pursuant to Section 4B of the Act shall be used solely for the purposes permitted by Section 4B of the Act. Member King asked if we could use the money from the April-September 1998 budget to pay for the lakeshore study. President Goebel stated our portion of the study will be $25,000 - $30,000 and we would have to have 60 days notice anyway to use the money. Tony recommended that this be presented to City Council as a project and let them approve it and then add it to your budget. Member King said it couldn't be done that way, we have to do it as a project. President Goebel stated the study has to be done by October 16 and we need to go to City Council to see if they can pay for it and have 4A and 4B reimburse them for it. By the time we could pay, the deadline would have passed. Member King said we have to post it as a project for a minimum of 30 days, hold a public hearing stating specifically what we are spending the money on, then 60 days from the public hearing, we can expend the money. Tony recommended that at the next City Council meeting, on the 17'', bring this up as a separate addition to the budget. Tony stated on the second page is the full-blown budget for 98-99 that includes '/2 of director. Member King asked if we want to pay more to a director, do we have to pull it out of the budget from somewhere else? Tony said that is correct. Ms. Nelson stated the $65,000 is with benefits. It will be up to Lanny to determine the amount that the director will come in at and negotiate any change with City Council. Tony stated his proposal to Lanny is , if the director costs more than $65,000, go to City Council and add the difference back into the budget. Member Walden made a motion that we accept the budget with the stipulations that Tony has explained to us. Member Manser seconded the motion. Ayes: All members present voted aye. Noes: None. There being no further discussion, it was unanimously decided to adjourn the meeting at 6:50 p.m. Kathy Neal, Recording Secretary Don Goebel, President