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Regular Council Meeting August 12, 2019 Page 3 2019 -H3821 -TX -DJ; AUTHORIZING AN INTERLOCAL AGREEMENT WITH LAMAR COUNTY; AUTHORIZING THE EXPENDITURE OF FUNDS; ACCEPTING SAID GRANT AWARD UPON NOTICE THEREOF; AUTHORIZING THE EXECUTION OF ANY AND ALL DOCUMENTS NECESSARY FOR ACCEPTANCE AND IMPLEMENTATION OF SAID GRANT UPON NOTICE THEREOF; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. Chief Hundley explained this was the annual grant awarded by the U.S. Department of Justice, and that the police department split was 50150 with the Lamar County Sheriff's Office. He said the total amount awarded was $12,610.00 with no matching funds required. He also said the police department was using their portion to purchase technology, which would automatically connect body cameras and patrol cameras to the case number. Mayor Clifford opened the public hearing and asked for anyone wishing to speak in support or'opposition of this item, to please come forward. With no one ;speaking, Mayor Clifford closed the public hearing. A Motion to approve this item was made by Council Member Portugal and seconded by Mayor Clifford. Motion carried, 6 ayes — 0 nays. 'Y 7 12 Discuss and act on Paris Economic Development Corporation's FY 2019-20 budget. PEDC Director Michael Paris presented the 2019-2020 annual budget to Citi Council. He explained that the information included,the budget for 2018-2019, the proposed budget and the differences between the two budgets. Mr. Paris ' reviewed the personnel expenses, administration costs, marketing and promotion, total operating expenses, job training expenses, business incentives, debt service, new industry projects, and estimated income. Mayor Clifford inquired about the total loan balance they borrowed. Mr. Paris said PEDC finished paying off the bond this past year and the $148,000 reflected was the debt service projected. Mayor Clifford asked the amount of the loan that PEDC was paying for that debt service. Mr. Paris said it was around 1.7 million dollars. Mayor Clifford confirmed that it was around 1.7 million dollars that PEDC borrowed. Council Member Knox inquired about the rail development partnership between businesses and PEDC, and asked whether or not if PEDC paid for part of the expense and businesses paid for part of the expense. Mr. Paris said the amount reflected was PEDC's part, and that they were still looking for investors. Mayor Clifford wanted to know how much cash money the PEDC had in the bank. Mr. Paris said around 4.2 million dollars in reserves. Mayor Clifford said it did not make good sound business practice to have that much money in the bank and from the same bank borrow your own money back and then pay interest. Mr. Paris said he could express that with the board. Council Member Knox asked if PEDC was holding a guarantee for a large loan for a company and if so, was it reflected in the budget. Mr. Paris said they did have a guarantee for Paris Warehouse owned by the HWH Group and it was included in their audit. Mr. Paris said a couple of years ago he started sending a letter to HWH asking if they were in good standing with their bank and making payments in a timely