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Finance Committee Minutes 1994 03-19-94City of 'Yorkville Finance Committee Minutes Date: March 19, 1994 Time: 10:00 AM Location: Yorkville National Bank 102 East Van Emmon Yorkville, IL 60560 Members Present: Mayor Ken Kittoe, Alderman Pat Clark Alderman William Baird (Chairman) Alderman Robert Johnson Guests: Chief Tony Graff President James Liggett, Yorkville National Bank Minutes taken by: Alderman Pat Clark Meeting was publicized and posted by the City of Yorkville. The Finance Meeting was called to discuss the possibilities of a loan from the Yorkville National Bank to cover expenses for a city building, street improvements, north& south water and sewer projects for FY94/95. Conditions for the Department of Commerce and CommunityAffairs (DCCA) Grant wereP reviewed and the city indicated in the grant agreement they would be borrowing$507,000 from the Yorkville National Bank, a $350,000 loan from the Kendall County Economic Development Commission(EDC) and the City'sshhard match would be$250,000000 for the north water/sewer project. North Water/Sewer Project Financial Outline: Estimated Costs 1,300,000 DCCA Grant 500,000 YNB Loan 507,000 (Minimum) City(Hard Match) $ 250,000 EDC Loan 350,000 The only covenant placed on the EDC Ioan is any recaptured finds received must be paid towards the debt for the EDC loan first. This is a condition for both the north and south water/sewer projects. The discussion led to our projected debt service for the FY94/95 budget and the only figures we have are for the EDC loan of$ 700,000. There was discussion related to the street improvements costs, new city building and north& south water/sewer projects. These costs are related for towards the loan request. Jim Liggett suggested he could provide the financial information needed for the debt service amount, when we could provide him with a projected preliminary budget. Jim Liggett then asked for the FY 94/95 preliminary budget. The bank will provide feedback and analyze the debt service required for the projected costs of the projects. The bank will provide a report on the debt service and the options for the loan request within one day after receiving the preliminary budget. Jim Liggett suggested an interest only payment for the first or second year. Then the balance would be amortized over the length of the loan period (8-9 years). Jim Liggett suggest establishing a line of credit, to utilize the line of credit after running out of funds specifically related to approved projects. Management suggestion was to establish a cash reporting system type of approach for the monthly budget report. Meeting adjourned at 12:10 PM. 2 ) TOTAL P.02