091106 EDA AgP
CITY OF SHOREWOOD
ECONOMIC DEVELOPMENT AUTHORITY MEETING
MONDAY, SEPTEMBER 11,2006
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
Immediately Following
Regular Council Meeting
AGENDA
1. CONVENE ECONOMIC DEVELOPMENT AUTHORITY MEETING
A. Roll Call
President Love
Lizee
Turgeon _
Callies
Wellens
B. Review Agenda
2. APPROVAL OF MINUTES
A. EDA Minutes of July 24, 2006 (Att.- Minutes)
3. NEW BUSINESS
A. Final Payment for East Fire Station; Declaration of Project Completion (Att. - Executive
Director's memorandum)
B. Approval ofthe Verified Claims List (Att. Claims List)
4. ADJOURN
CITY OF SHOREWOOD
ECONOMIC DEVELOPMENT AUTHORITY MEETING
MONDAY, JULY 24, 2006
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
8:00 PM or Immediately Following
Regular Council Meeting
MINUTES
1. CONVENE ECONOMIC DEVELOPMENT AUTHORITY MEETING
President Love called the meeting to order at 7:58 P.M.
A.
Roll Call
Present:
President Love; Boardmembers Callies, Lizee, Turgeon, and Wellens; Executive Director
Dawson; Assistant Executive Director Nielsen; Assistant Treasurer Burton; and
Associate Attorney Mayeron
Absent:
None
B.
Review Agenda
Without objection from the Board, President Love proceeded with the Agenda for the meeting.
2. APPROVAL OF MINUTES
A. EDA Minutes of July 25, 2005
Lizee moved, Wellens seconded, Approving the EDA Meeting Minutes of July 25, 2005, as
presented. Motion passed 5/0.
3. CONSENT
A. Treasurer's Report
B. Approve Payment of Claims
In response to a question from Treasurer Wellens, Assistant Treasurer Burton explained as part of the
financing arrangement US Bank was named the trustee for the funding of the five separate bond issues
(i.e. project funds). For its trustee services US Bank received a semi-annual $1,000 fiscal fee for each
project fund. Burton then explained the five project funds were interest bearing accounts yielding
approximately 4.75% interest; therefore, the interest income and fiscal fees basically offset each other.
Burton also explained when the projects were declared complete and the trustee accounts were closed the
fiscal fee payments would cease.
In response to a question from Treasurer Wellens, Assistant Treasurer Burton explained the EDA
invoiced the SLMPD and the EFD semi-annually for the debt service payments (i.e. the building costs).
The SLMPD and EFD in turn invoiced each of the member cities their portion of the debt service
payment. The SLMPD and EFD then submitted payment to the EDA, which as the fiscal agent paid the
trustee.
CITY OF SHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY MEETING
July 24, 2006
Page 2 of2
In response to a question from Treasurer Wellens, Assistant Treasurer Burton explained Northland
Securities fulfilled IRS reporting requirements for which it was compensated.
C. Declare West Side Police and Fire Station Project Closed
Wellens moved, Lizee seconded, Approving the Motions Contained on the Consent Agenda. Motion
passed 5/0.
4. NEW BUSINESS
A. Selection of Officers
Lizee moved, Wellens seconded, Approving the Officers' appointments the same as for the current
year. Motion passed 5/0.
5. OTHER BUSINESS
No other business was presented.
6. ADJOURN
Turgeon moved, Lizee seconded, Adjourning the Shorewood Economic Development Authority
Meeting of July 24, 2006, at 8:04 P.M. Motion passed 5/0.
RESPECTFULLY SUBMITTED,
Christine Freeman, Recorder
Woody Love, President
ATTEST:
Craig W. Dawson, Executive Director
SHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY
5755 Country Club Road
Shorewood, Minnesota 55331-8926
952.474.3236 FAX: 952.474.0128
MEMORANDUM
TO:
EDA Board of Commissioners
DATE:
Craig W. Dawson, Executive Director cJ)
September 6, 2006
FROM:
SUBJECT:
Final Payment for East Fire Station; Declaration of Project Completion
At its meeting of August 23,2006, the Board of the Excelsior Fire District:
1) Authorized the use of $27,851.67 from the proceeds for the East Fire Station. These will be
the last expenditures related to the construction of the East Fire Station.
2) Directed that the EFD pay the EDA $19,546.88 to be placed in the East Fire Station fund, in
order to reverse a prior decision to use proceeds for items that are located in the West Station
but also benefit the East Station. (This check has been received by the EDA.)
3) Declared that, with these actions, the East Fire Station is complete in terms of the use of bond
proceeds.
By informing the bond trustee that the project has been declared complete, the balance in the "project
fund" will be transferred to the "bond fund", and fiscal fees will no longer be charged to manage the
"project fund". Monies in the "bond fund" may be used only toward the call or retirement of the debt
obligation. Approximately $141,000 will end up in the "bond fund" for the East Fire Station.
These transactions will mark the end of the payments related to the construction of the public safety
facilities. The only activity that will remain are the semi-annual payments for principal and interest
on the bonds, and a review whether it is advantageous to call the bonds and refinance the remaining
principal on the call date in 2010.
RECOMMENDATION:
It is recommended that the Board authorize payment of $27,851.67 to the Excelsior Fire
District, and to declare the East Fire Station project complete regarding the use of bond
proceeds.
SHOREWOOD ECONOMIC DEVELOPMENT AUTHORITY
5755 Country Club Road
Shorewood, Minnesota 55331-8926
952.474.3236 FAX: 952.474.0128
MEMORANDUM
TO: Dana George, Interim Fire Chief, Excelsior Fire District
FROM: Craig W. Dawson, Executive Director
DATE: August 22, 2006
SUBJECT: Recap of Expenses for East Station
Last week, you requested a summary of expenses by category related to the East Fire Station. A
summary of expenses, as coded throughout the project by the accounting staff of the EDA, is
attached.
For the East Station, $2,060,000 in annual appropriation bonds was issued in 2002. Broadly
speaking, this amount made $2 million available for the building and $60,000 for issuance costs. The
original budget for the project was similarly broad in order to provide guidance in monitoring
expenses. As the project budget worksheet and the accounting codes were different, the following
table approximates how expenses compared to the original budget. Figures are rounded:
Category
Construction
Architectual/Engr/Consult.
Contingency @ 4%
Land
Interest Earnings
Bond Issuance
EDAI Administration
Furniture, Fixtures, Eqpt.
*Includes all costs for new well
Original Budget
Actual Expenses
Difference
$ 137,857
$ ( 27,019)
$ 65,000
$ 2,493
$ (6,000)**
$ 6,963
$ 7,951
$ (47,999)
$ 139,245**
* * The July 31,2006, balance in the Project Fund is $149,349. When this amount is added to total
expenses, the result is $2,070,104. Consequently, $16,104 was earned as income on the bond
proceeds since issuance.
$1,625,000
$ 105,000
$ 65,000
$ 135,000
$ (6,000)
$ 66,000
$ 20,000
$ 50,000
$2,060,000
$1,487,143 *
$ 132,019
$ 0
$ 132,507
$ see below* *
$ 59,037
$ 12,049
$ 97,999
$1,920,755
Dana George, Interim Chief, EFD
Recap of East Fire Station, Use of Bond Proceeds
August 22, 2006
Page 2
Remainine Activity; Resultine Balance in Proiect Fund: There is some further activity
anticipated regarding the bond proceeds. The following table summarizes it:
$149,349.27 Balance in Project Fund, 07.31.06
Minus $ 27,851.67 Reimbursement to EFD for equipment for Board authorization 08.23.06
$121,497.60 Resulting balance in Project Fund
Plus $ 37,293.88 Re-payment from EFD to Project Fund to reverse prior use of East proceeds
$158,791.48 Resulting balance in Project Fund, based on balance of 07.31.06
The actual amount to be moved from "Project Fund" status, under which bond proceeds can be drawn
on, to "Bond Fund" status, where the balance may be used only with a call or toward retirement of
the obligation, will be slightly different due to interest income earned on the bond proceeds prior to
final action by the EDA Board.
With these remaining transactions, the project can be declared complete in terms ofthe use of bond
proceeds. The EFD Board should authorize these transactions and direct that the $37,293.88
repayment be made to the East fund prior to final action by the EDA Board. Accordingly, the EDA
Board can accomplish all of the remaining business regarding the East Station at one meeting.
Shorewood Economic Development Authority
Check Approval List for 09/12/06 Council
Check # Vendor Name Description Check Date lnvoice #
1187
Amollnt
1188
1188
1188
1188
1188
EXCELSIOR FIRE DISTRI E. FIRE BLDG PROJ REIM
TOTAL FOR EXCELSIOR FIRE DISTRICT
9/7/2006 082506
US BANK
US BANK
US BANK
US BANK
US BANK
W.FIRE 2002A-FISCAL FE
W. FIRE 2003A-FSICAL F
W. POLICE 2003B-FISCAL
W. POLICE 2002B-FISCAL
E. FIRE 2002C-FISCAL FE
TOTAL FOR US BANK
9/7/2006 1748339
9/7/2006 1748346
9/7/2006 1748348
9/7/2006 1748374
9/7/2006 1748376
TOTAL CHECKS
2006
$27,851.67
$27,851.67
$1,000.00
$1,100.00
$1,100.00
$1,000.00
$1.000.00
$5,200.00
$33,051.67
#J8
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