The Troy Finance Committee on December 8 recommended emergency legislation to amend Resolution R72 2020 so the Community Improvement Corporation (CIC) can retain $250,000 from proceeds of the sale of the parcel at 1401 Experiment Farm Road.

"The first 1 is to provide a recommendation to counsel regarding an amendment to resolution number r 72 20 20 to permit the CIC to retain the amount of $250,000 from the proceeds from the sale of the parcel at 1401 Experiment Farm Road on behalf of the city," said Todd Sievert, chairman of the finance committee.

City staff explained the change responds to a city auditor request to "clean up" accounting after principal and interest from a 2020 loan authorized to the CIC accumulated in the CIC account. "We are asking for emergency legislation so that the note can be executed and funds returned to the city prior to year end," staff said.

Staff said the overall CIC account holds about $1,300,000 from the related transactions and that the $250,000 figure was selected as a round number the auditor was comfortable leaving segregated in the CIC account. The committee was told the $250,000 would be segregated and still legally belong to the city; "they would not be able to use and spend that money without express permission by the city," staff said. Staff also estimated the interest rate on those invested funds is "in the 3 to 5% range."

Committee members asked whether the city could place the funds in a separate designated investment account for development; staff replied the auditor recommended the current approach and that the city will "tag" the funds in its system but that the amount would be part of the fund balance rather than a separate pooled account.

After discussion, the chair said, "That was a unanimous recommendation to proceed with emergency." The committee provided a unanimous recommendation to proceed with emergency legislation; no roll-call vote was recorded in the transcript.

The committee's recommendation will go to council for final action. The transcript does not record a council vote or any further council action on the amendment.