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Pine City EDA approves 12‑month rollover for maturing CD; flags one delinquent loan
Summary
The Pine City EDA voted to roll a maturing certificate of deposit into a 12‑month CD to stagger maturities; staff reported a small delinquency on a loan to Mia Cafe and presented fund balances totaling $591,830.
The Pine City Economic Development Authority voted to roll a CD that was maturing in early June into a 12‑month certificate of deposit as part of a strategy to stagger maturities and maintain liquidity.
Staff presented April financials showing fund balances of $133,499 (2011), $71,598 (202), and $386,733 (RLF/203) for a total EDA fund balance of $591,830. The maturing CD was originally issued at about 3.9%; local 12‑month rates reported in the meeting were approximately 3.5%, and the board approved rolling the principal and accrued interest into a 12‑month instrument.
During the financial report staff noted one delinquent loan: Mia Cafe was not current on its payments. Staff said Mark II had been in contact with the borrower’s family and expected the account to be brought current, but the board asked staff to follow up and report status at the next meeting.
Committee member Dan seconded the motion to roll the CD; one member indicated they would abstain and the motion nevertheless carried. Members discussed maintaining staggered CD maturities (roughly one maturing each quarter) to preserve liquidity.
Next steps: staff will execute the rollover with the selected bank, reflect the transaction in the minutes, and provide an update on the Mia Cafe loan at a future meeting.
