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HomeMy WebLinkAboutMinutes AS AMMENDED MINUTES OF THE LONG RANGE FINANCE COMMITTEE June 1, 2016 ROOM 404 The Long Range Finance Committee meeting was held on Wednesday, June 1, 2016, in Room 404, at Oshkosh City Hall, 215 Church Avenue. The meeting was called to order by Tom Pech, Jr. at 5:20 p.m. Members Present: Harold Buchholz, Jeff Herzig, Tom Pech Jr., Karen Bowen, Jeff Thoms, and Deb Allison-Aasby Members Absent: Doug Pearson, Matt Lauritch, and Jason Hirschberg Staff Present: Trena Larson - Finance Director, Lynn Lorenson – City Attorney, Kelly Nieforth – Economic Development Specialist, and Lori Burns – Administrative Assistant- Finance Department Citizens Present: Jason White – Greater Oshkosh Economic Development Corporation (EDC) Audra Hoy – Greater Oshkosh EDC I.Approval of May 4, 2016 Minutes Motion to approve by Bowen, Second by Herzig. Approved 6- 0. II.Citizen Input None III.Discussion GO EDC, revolving loan fund (RLF) manual - (5:20 – 6:25) Items Discussed:  Jason White, Chief Executive Officer of Greater Oshkosh Economic Development Corporation gave an update on the Revolving Loan Fund (RLF) activities for their first year. This included details of their “score card”. One loan has been issued to Off-Beat Press, for $75,000. It was reported this loan created five jobs. Another loan for $30,000 is in process for an underwriting company. Several applications have been declined as they did not meet established criteria. This included two requests for business start-up. To be eligible for the program a business must have been established for two years. The RLF has been established to fill gap financing. There are currently three businesses very interested in applying into the RLF program.  Audra Hoy – Greater Oshkosh EDC discussed how they are looking at ways to expand the amount of businesses eligible for the RLF. Ms. Hoy presented the following changes they would like to propose: Decrease loan minimum to $20,000 Increase maximum to $300,000 Expand the area to include towns in the area Employment requirement from, one full-time position cost at $12,500, to one full time position at $25,000 Add flexibility to businesses in economic distress area, determined by LMI Capital Catalyst Program Create new fund, by applying $125,000 of RLF as matching funds for a grant application to WEDC. If awarded funding would focus on start-up loans. This new fund would require one third of WEDC contributions to be given as a grant, two thirds as a loan, (high risk loans) Committee concerns were:  Was research done on how surrounding communities are handling RLF’s.  Consider granting portions for those companies that want cash up front. Start up’s are the ones that need it.  Problem with including towns, this was discussed previously and not looked at favorably. Would be a hard sell to the City of Oshkosh Taxpayer’s. Any outside business needs to have some impact on the City.  How does the fund keep growing?  If a manufacturing company needs one large piece of equipment, this is not enough money to entice them. These loans are going to be going to a lot of service based companies.  Audra and Jason have the two documents they submitted mid May. They would like committee to approve them at the July meeting. Application can then be submitted prior to August. Once application is approved by WEDC, and a check is cut, GO- EDC would have 18 months to complete distribution.  Prioritized Topics List – (6:25-6:35) Discussion on reviewing existing LRFC policies, it was determined that should be delayed a few years to ensure a measurement period has been established. Fees list needs to be in constant review. CIP Policy should be evaluated to see how it fits into the strategic plan. The committee’s priorities should meet the goal and function of the committee. Pech will proceed with this topic and talk with City Manager Rohloff and the Common Council. Bowen would like the list updated that was attached to the City Wide Analysis of Fees presented by the LRFC to Council in December 2010. The list was comparing Municipalities from 2000 – 2007. When contacting the League of Municipalities, this was a special project done in 2007. This has not been updated or changed since that special project was done. IV. Set July meeting date and agenda items th Chair Pech and Director Larson will reach out to the members and see if July 6 will work. Agenda items will be, Go EDC review. Review of fees. Strategic planning. V.Adjournment . Motion by Herzig, Second by Pech. Motion passed unanimously Meeting adjourned at 6:40 p.m.