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HomeMy WebLinkAbout[06] St. Joseph Chamber - Wobegon Donationcrr~° of s•r. ~c~H rH Council Agenda Item MEETING DATE: September 17, 2009 AGENDA ITEM: St. Joseph Chamber of Commerce -Wobegon Donation SUBMITTED BY: Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: BACKGROUND INFORMATION: The St. Joseph Chamber of Commerce coordinated the fund raising and construction of the Wobegon Trail Center which began in 2001. When the project was completed, there was a shortfall of approximately $ 10,000. Each year when the annual audit is presented, it is noted that the Wobegon Fund is still in a deficit. With the help of the St. Joseph Chamber Treasurer, Mike McDonald, the City has an opportunity to close this fund in 2009. The St. Joseph Jaycees and Chamber of Commerce have agreed to contribute $ 5,000 to help cover the deficit if the City covered the balance, which is $ 5,007. The City can fund this deficit in two different manners: 1. Utilize $ 5,007 of the surplus revenue over expenditures of 2009. The cuts made by the City Council assure that the General Fund will have a surplus balance at the end of the year. The surplus has largely been attributable to the removal of capital expenditures and not filing the vacant position in the City Office. It is hoped that the actual surplus will be reviewed and designated once the year is complete and we are sure that the December LGA will be allotted. 2. The Bond fund for Northland Heights will have a residual balance when the project is completed. It is unknown the exact amount of the balance but it will be over $ 100,000. This park is in the vicinity of the development and it would bean appropriate use. The City would internally fund this until the bond fund is closed in 2010. BUDGET/FISCAL IMPACT: $ 5,007 ATTACHMENTS: St. Joseph Chamber of Commerce information REQUESTED COUNCIL ACTION: Accept the donation of the St. Joseph Chamber of Commerce and St. Jaycees in the amount of $ 5,000 and fund the balance of the deficit closing the fund in 2009. Judy Weyrens From: Michael McDonald [mmmcdonald@charter.net] Sent: Sunday, September 06, 2009 11:56 AM To: RoxJ98@aol.com; 'Jean Dotzler' Cc: Judy Weyrens Subject: Formal Wobegon Check Presentation to St Joseph City Council on Sep 17th Starting in 2001 the Chamber, Jaycees, Lions, the College and Monastery, the City, and other clubs and businesses decided to raise funds to erect a building that would be at the trailhead of the Wobegon Trail. At least four years were needed to raise the funds required and to get a $100,000 matching grant from the DNR. I have no direct knowledge of the history of the fund raising nor of the building process itself but I am sure there are others in our organization that could fill in some of the history. I am copy/pasting one version of an income-expense sheet showing financial information. Due to the fact that the private organizations started this project and then turned the project over to the city, I (and the city) have not been able to balance the various tidbits of financial information that exists between the different entities (which is understandable). The bottom line however is that the city's Wobegon Building Fund has a negative balance of $10,007 and has been in the red for several years. The St. Joseph Jaycees and the St.loseph Chamber of Commerce recognized that a valuable community resource is being severely under used and that the people and clubs that originally planned this beautiful building have never been formally recognized. Although the exact nature of the $10,000 deficit cannot be pinned down, both organizations felt that in order to move forward in placing a plaque to honor those who created the building and make further use of the building to promote businesses in St. Joseph that the building should be debt- free. In order to do that, each organization has agreed to donate $2,500 (total $5,000) to the city and the City Administrator has found an appropriate fund to transfer the remaining $5,007 in order to eliminate the negative balance. Rose and Jean, I have arranged for the Chamber and Jaycees to be on the city council agenda Thursday, Sept 17th, to formally present the checks to the city of St. Joseph. I can get back to you with a specific time but I would imagine you will be scheduled within the first five minutes of the start of the meeting at 7 pm. (Jean I can drop off the Chamber check with you at your house). It will be great making better use out of this quarter million dollar building to promote the trail, the city, its businesses, and its organizations knowing everything is now paid. In the future plans are to have the building open at least on weekends during the summer to greet visitors. There also may be a chance to eventually put in a fireplace that was envisioned in the original plans. If I can help with anything else let me know. I believe it is important the leaders of both organizations present the checks to the council on the 17th. Thanks, Mike McDonald (363-4173) For your information, here is one version of a financial statement regarding the building. As I said there are others but currently the city's specific Wobegon Fund is the only official version that exists. Summary of Revenue 2001 St. Joseph Jaycees 2001 Year Total 2002 St. Joseph Jaycees 2002 Year Total 2003 St. Joseph Jaycees Sno Joes St. Joseph Lions City Contribution 2003 Year Total 6,000.00 6,000.00 5,000.00 5,000.00 8,000.00 1, 000.00 10, 000.00 18,000.00 37, 000.00 Note: Turned over to Chamber January 2005 - $ 48,000 Check Number: 003824 2004 Order of St. Benedict College of St. Benedict St. Joseph Jaycees St. Joseph Meat Market Stearns Electric St. Joseph Chamber Sponsors 2004 Year Total 3,000.00 5,000.00 3,000.00 100.00 250.00 13,000.00 24, 350.00 Total Revenue 72,350.00 Note: The Jaycees have indicated that they will continue to contribute towards the Facility Note: The City Bonded $ 63,000 for the parking Expenditures Revenues Payment #1 76,714.25 Payment #2 28,852.96 Payment #3 127,012.87 Other 28,314.43 TOTAL EXPENDITURES 260,894.51 Donations 72,350.00 City Contributed -Land 6,976.90 Matching Grant 100,000.00 City Bonding 63,000.00 242, 326.90 2 Overage (Shortfall) (18,567.61) Per Judy on 2/3/09: The fund currently shows a deficit of $10,007