GENERAL/BUDGET BOARD MEETING
JULY 21st, 2009, 10:00 A.M.
TUMALO IRRIGATION DISTRICT
64697 COOK AVENUE
BEND, OREGON 97701
BOARD: Bill Martin, Bob Morrow, Ronald Cochran, Patricia Gainsforth
STAFF: Elmer McDaniels, Ken Rieck, Bob Varco, Fran DeRock
ATTORNEY: Bill Hopp
ENGINEER: Jon Burgi
Chairman Martin called the meeting to order at 10:00 A.M. and appointed Fran DeRock scribe.
CAPITAL BUDGET SHORTFALL
Assistant Manager Rieck has indicated the Operating Budget for 2009 is pretty much on target, however, the District needs at least $250,000 to meet Capital Budget costs over the next 12 months. This amount includes $100,000 for emergencies not showing on the budget itself. The amount does not include the construction cost on the Laidlaw Butte road. He noted what he had cut from the original Capital Budget and what was left in.
There is a two year time limit on the construction of the road to the Laidlaw Butte lots. Manager McDaniels will talk with Mark from Hooker Creek and get a new estimate on the cost of the road. Engineer Burgi thinks it may come down as much as $100,000.
Discussion ensued regarding ways of obtaining funds to meet the budget shortfall. Interest in the purchase of one or more parcels on Laidlaw Butte by Jim Pentz and Bend Research was brought up, as well as loans from a financial institution.
At 10:42 A.M. Vice-Chairman Morrow made a motion to adjourn, seconded by Director Gainsforth. Motion carried unanimously.
RECONVENE
At 11:00 A.M. Chairman Martin reconvened the General/Budget Board Meeting and appointed Fran DeRock scribe.
BANK INFORMATION
Mark Beardsley of Wells Fargo Bank discussed with the Board what the District’s financial needs are. He talked of the possibility of a Line of Credit for a rate of prime plus/minus for short term needs and a loan for larger projects at around 4 to 5%. The District staff will get back with him and give him more specific info regarding what types of expenditures the District will need funds for, and what the District’s timeline would be, so he can prepare more specific info for the Board.
ADJOURN
At 11:25 A.M. Vice Chairman Morrow made a motion to adjourn, seconded by Director Gainsforth. Motion carried unanimously.
RECONVENE
At 12:07 P.M. Chairman Martin reconvened the General/Budget Board Meeting, and appointed Fran DeRock as scribe.
MOTIONS
Director Gainsforth made a motion to advertise for sale, 5 parcels owned by TID as follows:
Tax Lot 1100 at $375,000 for each of the two 20 acre parcels.
Tax Lot 300 at $400,000 for each of the 2 parcels (31 & 42 acres).
The .62 acres off of Highway 20 at $50,000.
The advertisement will be posted on the TID website, published in the West Com System and its’ affiliated papers and also on Craig’s List. All advertisements will run for 30 days. Director Cochran seconded the motion. Motion carried unanimously.
Director Cochran made a motion to contact David Ulbricht of Wedbush Morgan Securities and Mark Beardsley of Wells Fargo Bank and ask for a line of credit or equivalent for $250,000 and a loan of $5,000,000 for a term of 30 years. Director Gainsforth seconded the motion. Motion carried unanimously.
ADJOURN
At 12:20 P.M. Director Gainsforth made a motion to adjourn, seconded by Vice Chairman Morrow. Motion carried unanimously.