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VCAD Board seeks appraisal of assets to provide basis for loan
Nevada Daily Mail
During the Vernon County Ambulance District's regular monthly meeting Nov. 19, the board discussed and unanimously approved a resolution to enter into an agreement with R.J. Wood and Associates for an appraisal not to exceed $2,000. The board indicated early December would likely be the earliest it would hear back from R.J. Wood and Associates on the total appraised value.
"We need a full appraisal of the building and all of its assets," VCAD board chairperson Mark Humphrey said. "Any time you have a bank note and you're going to wager that against any property, obviously they want to know the appraised value of everything."
Later, a resolution was unanimously approved authorizing the chairperson of the board to make an application to the trustees of Finis M. Moss Charitable Trust Foundation for a loan to be secured by all the assets of the district.
Initially the board had the figure set at $425,000. However, after discussion with board attorney Kendall Vickers, the board decided to omit the $425K-figure before voting.
During discussion it was mentioned by a board member that the $425,000 could fluctuate depending on multiple factors, including VCAD's appraised value.
"If we make an application, I think the amount of the loan, depending on needs and the appraisal, that could be adjusted," Vickers said. "There will have to be another resolution at some point that's a little more specific authorizing the actual pledging of the assets and the borrowing of the money.
"The actual terms and the amount of the loan might vary based on negotiation between us and the leader."
Nov. 18 special meeting
The board held a special meeting Nov. 18 for the purpose of adopting a resolution to enter into an application-agreement with Heritage Bank to procure a $150,000 tax-anticipation loan. This was unanimously approved.
"Hopefully that will get done as soon as the first of next week," Humphrey said after the Nov. 19 regular board meeting. "That will take care of our short-term items that we need to get covered. And some of our major expenditures that are due Dec. 1, we can get those out of the way."
Humphrey said that $150,000 would get VCAD "though this initial hurdle."
"Then we will need to go back for the $425,000-$450,000 range (loan)," he said. "And that will be a long-term note that will satisfy all of the IRS debt, the state tax debt, anything else really that we have outstanding. That amount would also take care of the $150,000 note that we have. So we're not talking about $600,000. We're talking about $450,000 potentially, that is the dollar figure that we're looking at."
Humphrey said the $150K-note would be due for payoff by Feb. 1, 2016.
"If the larger note is processed, it would potentially pay off sooner than that," Humphrey said.
Earlier in the meeting Humphrey noted, "the 425K seems to be a pretty solid number as far as total expenditures."
Humphrey indicated that the loan with Finis Moss would likely be a long-term note at five years.
Heritage Bank loan
Humprey added that the board is seeking a $150,000 short-term loan from Heritage Bank. Humphrey said the 425K-figure originally discussed would "encompass the $150K" the board hopes to procure, as well as "offset the debt it has with the IRS on the state side of the tax lien" ---- as well as "other expenditures we have outstanding with the district.
"I have spoken to them and they are interested in possibly helping us as well," he said.
New outstanding balances
During the meeting board, vice chairperson Chris Mason expressed his displeasure over a number of outstanding balances the board was not previously apprised of. The total expenses referred to by Mason range in the neighborhood of $70,000.
"I'm not trying to be argumentative with anybody tonight," Mason said. "But it's just that I'm really frustrated. And I'm not blaming anybody here for not having an exact (updated) amount (of total expenses). I'm just frustrated because we don't have a better way to get everything listed on here and exact balances.
"If we're going to have to borrow money to pay this off, I would like to make sure that everything is covered. I don't want any more surprises coming out."
10K owed to Sutherland's
Among its many outstanding balances, VCAD owes Sutherland's more than $10,000.
"We had a project back here in the back on a building that they worked on," Humphrey told the Daily Mail. "And some of that is stuff that was purchased (for) the haunted house. The revenues from the haunted house ---- we then bring those back into the district initially ---- and then we pay off any outstanding debts that was accrued by the haunted house. We pay those off in portions, and then what is leftover after that is what we use for the toy drive."
Other agenda items
* Approval of minutes from last five meetings
* The board went into an executive session, adjourning back into regular session with no further action taken before adjournment.