1997 SPE MIN DEC 29 - Laserfiche WebLink

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month for operation expenses. If the City of Colton elected not to make its payment by December 3155, it would then be expelled from the Airport Authority, which would not affect the City's membership in IVDA. As the money was not budgeted for and the City was in terrible financial straits, Interim City Manager Wood recommended that City Council choose not to pay the $500,000 and that it be expelled from the Airport Authority. Finance Director Vega projected that as of July 155, the General Fund would end with a $1.2 million cash balance, which did not include the half a million dollars needed to repay the Electric Utility. Given the $500,000 or $600,000 loan, if no repayment was received from SBIAA, or the City of Highland did not participate, Director Vega projected the sum of $600,000 in Cash Balance. She said the expenditures did not reflect the $14,000 per month, which would total $168,000, by the end of July, and this would prohibit the City from meeting its own expenditures and its payroll. To the inquiry on whether the SBIAA loan payment was made part of the budget, Finance Director Vega explained that it was presented at the budget workshops but was not made part of the final documentation. Mr. Jim Monger, General Manager for the Airport Authority, listed the present occupants at the airport and anticipated businesses. He found the prospects for the airport as progressive and excellent. Mr. Bob Crisman, Mayor Pro Tempore of Loma Linda and alternate member for the Airport Authority, gave a brief overview of the history of the airport and its improvements and noted Loma Linda's recent 3-2 vote to remain as a participant. He said the airport was recently appraised at $249 million and pointed out that the City of Colton would have 1/6th interest, equivalent to $60 million. Mr. Crisman indicated that the lease/leaseback, now in place, would provide $12 million, which would first be used to pay all major participants then give the airport continuing operating revenue and possible cash flow to do incentives for the airlines. If the lease -leaseback did not work, the plan was to go back to revenue bond or, ultimately, bank financing. Mr. Crisman said the loan, not a grant nor an operating expense, was a legal investment for the City to make and it was expected that the City of Colton would receive interest on its money at a higher rate than it would acquire through LAIF. He concluded that the loan would not be lost as this was a highly secured short term loan that would be repaid within 90 days. The risks were minor compared to the advantages. Discussion ensued. RECESS: At 6:02 P. M., Mayor Gaytan declared a brief recess to allow the City Attorney the SpecMtg December 29, 1997 2