Sept 5 finance committee minutes

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Sept 5 finance committee minutes

Postby City Clerk » Fri Sep 08, 2023 7:36 am

Minutes from the Tuesday September 5th, 2023 City of Jeanerette Finance Committee Meeting Present - Alderwoman Tia Simmons, Alderwoman Charlene Moore, City Clerk Susan Colden, Treasurer Liz Verdun, and Mayor Carol Bourgeois Jr. Mayor Carol Bourgeois Jr. called the meeting to order and led the prayer. Alderwoman Simmon first reviewed the ARPA fund update. The Water/Sewer sector started as a million and between the Phase 2 sewer, water tower and water sector projects we have spent $572,890.43 in 22-23. ARPA Remaining for 23-24 Phase 2 sewer is $0, Water Tower is $121,296.06, Water sector is $202,291.37 for a 23-24 remaining balance of $323,586.43. Alderwoman Simmons commended Ms Verdun for handling the zero-fund accounting on fund 57 so well. Ms. Simmons then stated that the rest of the ARPA funds she was unsure without being able to see a P & L. It was noted that the blighted funds had not been spent yet. The Mayor noted that the inspector will soon starting to evaluate properties. The second application for the grant to clear blighted homes can be applied for in November. The Mayor then mentioned that since we did not qualify for that street LCDBG grant we are going to have to figure out possible funding to repair Martin Luther King going into Milo’s (Jennifer Ann), Pellerin & Church. We need to have a contractor repair. Alderwoman Simmons said since we have the match can we find other grants, maybe Delta regional authority. The Mayor added since we are a rural we might be able to get the match waived. Alderwoman Simmons noted that the $268,000 we have spent in the last two years did not really get much fixed. Street repairs are expensive so we have to look at grants to get anything done. Alderwoman Simmons then moved onto the GO Refunding bond update. We have a General Obligation Bond and in 2021 it was refinanced to lower the interest rate from 4.25% to 2.25% with the same maturity debt of 2045 and no reserve requirements. It is paid semi-annually in March and September; March is principal and interest and September is just interest. At First National Bank there is a specific Ad Valorem account, the water sinking fund that pays this debt. There is another account the GO Refunding 2005, which can only be used to pay general obligation debt, so anytime the City does not collect enough in Ad Valorem to make the payments on the bond the monies can be used from the GO refunding 2005. The bond payment schedule was reviewed. The budget is wrong because it picked up the 4.25% and not the 2.25%. Alderwoman Simmons recommended that we might create a restricted GO Refunding Bond account in Lamp and move the funds there to earn more interest. The committee agreed with the recommendation and the Treasurer will set up the new account in LAMP and transfer the funds accordingly. The discussion moved to the USDA loan from 2011. This loan was for replacement of galvanized water mains, water service lines and water meters. There are specific reserve requirements for this loan. The loan was for $2,463,000 over a 40-year period. The monthly payments of $8,079 are being moved monthly from Utility to the USDA Revenue Bond account where it is swept and it is a zero-balance account. Next is the debt service reserve fund, which is a reserve requirement from the USDA. From Mr. Greer’s final report, you can stop adding to the reserve fund at $96,948.00, which represents the $8,079.00 x 12. Right now, the reserve accounts have $102,950.39, (FNB USDA Bond and LAMP Utility Restricted Funds) which is more then required. Therefore, the city can stop transferring the $808 from Utility to the First National Bank WW Bond Reserve Fund, this $102,950.39 needs to be put away in a reserved LAMP account and not touched as long as this loan is active. After the current USDA audit is complete the difference between the required reserve and the current balance of the accounts can be moved back into the Utility account. Another requirement of the USDA loan is the short-lived assets account that has $4,622 per month moved into it. The city is doing this. Per David Greer the city needed to have $360,516.00 in short lived assets. To show we have that money Mr. Greer took the FNB USDA Asset with $194,140 and added the LAMP Capital Additions of $30,000. Short Lived assets allow the city to count the monies that are used to make improvements to the water plant that are not part of a grant project. At that time Mr. Greer stated that the city has spent $137,360 in improvement to the plant. This gives the city at that time a balance of $361,500. Since than we have added $4,622 to the FNB account. The balance required by the USDA is now $499,176 (growing by $4,622 per month) and the city has $500,160 counting Mr. Greers qualified money spent on the plant. If the city chooses to make a qualified expenditure, and not add to the FNB account that month, the city will need to have detailed documentation to claim the expenditure as a qualified expenditure. Any purchases towards this expenditure should come out of the short-lived assets account and not fund 57. Alderwoman Simmons said that since Mr. Greer used the LAMP Capital Additional account with the $30,000 the city should move that money into the short-lived assets account. Ms. Verdun reported that the sales tax received was $92,016.59 which is 11.32% higher than last year but less than last month. The bank balances given were as of Sept 5, but they are unreconciled. There is no P & L yet and there needs to be the new budget added, the 50% budget input for July and August and we need an accurate June 30 P & L as well. Ms. Verdun will speak to Jeremy with Darnell Sikes to see when we can get this work completed. With no other items to discuss the meeting was adjourned.

Carol Bourgeois Jr., Mayor

Susan Colden City Clerk

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