1996-12-11-Minutes 276
MINUTES OF THE PARIS ECONOMIC DEVELOPMENT CORPORATIOH
December 11, 1996
The Paris Economic Development Corporation met in their regular meeting on
Wednesday, December 11, 1996, at 4:00 P.M., in the City Hall North Annex Fire
Training Room, Paris, Texas. President Curtis Fendley called the meeting to order
with the following boardmembers present: Dick Amis, Michael Rhodes, and Barney
Bray. Also present at this meeting were ex-officio boardmembers County Judge
Chuck Superville, Mayor Eric Clifford, Bobby Walters, Carl Cecil, Ike Jewett, Gary
Vest, City Engineer Earl Smith, Director of Finance Gene Anderson, City Manager
Michael E. Malone, and City Attorney, T.K. Haynes.
President Fendley stated the next item on the agenda was approval of the minutes
from the previous meeting of the Paris Economic Development Corporation. He
asked if there were any corrections or additions to the minutes of the previous
meeting. Boardmember Amis stated a correction needed to be made regarding a
statement he had made concerning the lobby effort and the funds being obtained
through the private sector. Boardmember Amis made a motion, seconded by
Boardmember Rhodes to approve the minutes as amended. The motion carried
unanimously.
President Fendley asked Mr. Gene Anderson, Director of Finance, to give the
financial report. President Fendley stated that at the previous meeting last month
the Board had requested an explanation of the Fund Balance. Mr. Anderson
explained that if you owned a particular business your owner's equity in that
business would be closest comparable thing to Fund Balance in governmental
accounting. He said that basically when you have double entry accounting, you have
got to have a credit for every debit and the Fund Balance is the credit that offsets
all the debits. It is just the offset entry in double entry accounting. He said it is not
money in the bank, and does not represent money in the bank.
Boardmember Bray stated that the Board was interested in how much cash the
Board has available at this time, and a list of all the Board's commitments. Mr.
Anderson stated that he had reviewed all the minutes and the resolutions. Mr.
Anderson stated that the $622,000.00 reflected on this report was cash in the bank
and was not the same thing as the Fund Balance. Mr. Anderson went over the
different projects with outstanding commitments at this time. Mr. Anderson Said
that the different projects that the Board has committed to, but has not expended at
this time, would have to come out of this cash balance. Boardmember Bray
mentioned the Campbell Soup commitment. Mr. Anderson stated that he had not
received any documentation concerning this item at this time. President Fendley
stated that it was $200,000.00 per year. City Manager Malone stated that this was
based on additional jobs over 1,500. Mr. Anderson discussed the operating expense
fund versus this year's budget.
City Manager Malone said in connection with the Cox Field expenditure, which is the
first grant that the City received and that the Board has committed too, that
$9,500.00 has already been expended and the additional $213,000.00 of that
commitment will not be needed before April 1, 1997. Mr. Malone said that the second
grant requires a match of $240,000.00, and in this grant, the State has changed their
procedure and they wish the match up front. He said it was his understanding that
this amount will be asked for sometime between mid-February and March. He said
the match would be required on the second grant before the biggest part of the
match on the first grant.
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Boardmember Bray stated he wanted the total of the items that the Board has
committed to at this time that the board will expend money within the next twelve
months. Mr. Anderson said he totaled the commitments up not counting the
$167,000.00 revolving fund that he is not sure represents an obligation at this time.
City Attorney Haynes stated that this amount represents an obligation. Mr. Vest
stated that the Board will never be called upon for this amount. Mr. Anderson stated
if that amount is included that's $915,582.00, not including the Campbell's Soup
amount. Boardmember Bray stated that he felt that this amount should be included
since this is an obligation. President Fendley said in order to be conservative, this
amount should be included in this calculation. Mr. Anderson stated if the Board is
going to consider the potential five year commitment to Campbell Soup which totals
$1,000,000.00, in order to accurately examine it, you would also have to consider
five year's worth of revenue as well because it extends over that period of. time. Mr.
Anderson asked if he had answered all the Board's questions concerning the
obligations. Boardmember Amis asked what the total balance plus revenue for the
next twelve months was. Mr. Anderson stated current balance plus estimated
revenue for the rest of the year is approximately $1,255,000.00 those two items
together. Boardmember Amis asked if the Board had approximately $1,000,000.00
in commitments for the year. Mr. Anderson said $915,582.00 if you include the
$167,000.00. This figure does not include an annual installment of $200,000.00 per
year for five years to Campbell's Soup, if they perform as they say that they will. Mr.
Anderson gave the financial report for the month of November. Mr. Fendley called
for questions. Boardmember Bray made a motion, seconded by Boardmember
Amis, that the report be approved as presented. The motion carried unanimously.
President Fendley stated that there would not be a President's Report given at this
time.
President Fendley asked Mr. Vest to give the Director's Report. Mr. Vest passed
around the new direct mail brochure to the boardmembers. Mr. Vest advised that
due to advertising, they had received thirty-six responses since the last meeting.
Mr. Vest said they had a prospect on Monday with T.U. Electric,looking at rail sites
which is a confidential company. He said they looked at several sites in our
community and we do not have any feed back at this time. He said the company was
looking at several cities in northeast Texas. President Fendley called for questions .....
concerning Mr. Vest's report and there were none.
President Fendley asked the City Engineer to discuss the area of Fourth Street that
we discussed at last month's meeting concerning some of the cost options. City
Engineer Earl Smith stated that he didn't consider any options such as asphalt
because, being a new street, his interpretation was that it would need to meet the
subdivision ordinance. He said the only thing that might be considered would be to
reduce the thickness to a six inch thick pavement, but knowing that it is primarily
for truck traffic he said he didn't know if that would be wise. Boardmember Amis
questioned the street width. Mr. Smith said the 39 ft. wide pavement cost was
$260,000.00 and the 28 ft. wide pavement was $205,000.00. He said that his cost
estimate did consider the street being eight inches thick. President Fendley called
for questions concerning the City Engineer's report.
President Fendley stated the next item on the agenda was put on the agenda to bring
from the table. Mr. Fendley stated the City has not had time to discuss this and get
back to the Board and report what the City is going to do on this item, so the Board
will skip this item this month and leave it on the table.
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President Fendley asked City Attorney Haynes if he had anything to report at this
time and he said that he did not have a report to give at this time.
President Fendley asked if there was any other business. He asked the
Boardmembers to note on their calendars that the next regularly scheduled meeting
for the month of January would be held on January 15, 1997, at 4:00 o'clock, p.m.
He declared the meeting adjourned.
President Curtis Fendley
Assistant City Clerk Barbara Denny