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City reports EDA grant closeout and unexpected RHID prepayment; staff to coordinate with county and auditors
Summary
Tonganoxie closed out a $1,550,000 EDA grant for a water tower at the business park and reported $507 million in private investment and about 150 jobs tied to park companies. Staff also told the council the county issued RHID payments twice in April, producing a prepayment that staff are handling with the county and auditors.
City staff told the Tonganoxie City Council on June 2 that the April financial report shows a closed Economic Development Administration (EDA) grant for water tower construction at the Tonganoxie Business Park; the city received just over $1,550,000 in grant funds and completed closeout documentation.
City Manager George Brekovich said the federal grant closeout coincides with reporting obligations to the EDA, which require multi‑year updates on capital investment and jobs. He reported that the three companies at the Tonganoxie Business Park reported combined private capital investment exceeding $507,000,000 and roughly 150 high‑paying jobs with benefits; Brekovich presented those figures as part of the EDA closeout materials.
Staff also reported an administrative anomaly with RHID payments from the county: the city received a second RHID check in April matching the earlier remittance, producing a prepayment of proceeds that staff believe resulted from a county error. Staff discussed the duplicate payment with the county clerk and treasurer and with auditors and said they will not disburse funds to developers until the county confirms taxpayer payments and the cash flow is reconciled.
Staff said because the EDA grant funds did not push 2024 into major‑program thresholds, a single audit for fiscal 2024 is not required. No formal council action was requested at the meeting; staff provided the financial report for council review.
