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.
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TOTAL P.02