CCR19931270 COMMON COUNCIL - CITY OF MUSKEG0
RESOLUTION #127-93
APPROVAL OF LOAN FUND PRE-APPLICATION
(Country Wetlands Nursery)
WHEREAS, the City of Muskego is a participant in the Revolving
Loan Fund (RLF) Plan; and
WHEREAS, a pre-application form must be submitted to the City by
an interested applicant; and
WHEREAS, Country Wetlands Nursery & Consulting, Ltd. has
of $20,000; and
submitted a pre-application form requesting a loan in the amount
WHEREAS, the Finance Committee has recommended approval.
NOW, THEREFORE, BE IT RESOLVED that the Common Council of the
City of Muskego, upon the recommendation of the Finance
Committee, does hereby approve the pre-application form for
$20,000 submitted by Country Wetlands Nursery & Consulting, Ltd.
BE IT FURTHER RESOLVED that the City is receptive to submittal
0 of formal application by the applicant.
DATED THIS 27TH DAY OF APRIL , 1993
SPONSORED BY:
FINANCE COMMITTEE
Ald. Patrick A. Patterson
Ald. Edwin P. Dumke
Ald. David J. Sanders
This is to certify that this is a true and accurate copy of
Resolution #127-93 which was adopted by the Common Council of
the City of Muskego.
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Attachment A
CITY OF MUSKEG0
Revolving Loan Fund Pre-application
3 Source and Use of Funds
a) Land Purchase ...
b) Building Purchase _.
c) Building Construction
d) Building Renovation . .
e) Machinery & Equipment . .
f) Working Capital .....
TOTAL PROJECT COSTS ..
RLF Debt
Financing Financinp,
$ $
$ $
$ $
s s
$ $
$ w,ooo $ -,
4. RLF Assistance Requested
a) Loan Amount . ....... $ LO ,000
b) Interest Rate (percent) ..
c) Loan Term (years) ...... 7
Equicy
Financing
$
$
$
s
$
$ W.CQ~
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5 Source of Private Debt Financing
Address :
Telephone No.: Y7G -'-?=:s& /
6 Job Creation and Retention
New Jobs Retained Jobs
Number Pay Range Number Pav Range
Full-time Jobs ....... $ $
Part-time Jobs z $ 7 5'0 -$'.s-i~,~ $
TOTAL JOBS .
7. Date Project .. Will Begin ?pfiIf& (%7
I hereby certify that the information provided above and in the attached
supporting documentation is to the best of my knowledge true and correct
For additional information about the City of Muskego RLF program, please
contact the Director of Planning at (414) 679-4100.
Please submit the RLF application and supporting documentation to:
Director of Planning
City Hall
W182 58200 Racine Avenue
P. 0. Box 903
Muskego, Wisconsin 53150
*****
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CITY OF MUSKEGO REVOLVING LOAN RTND
PROJECT DOCUMENTATION
Please include the following supporting documentation along with each economic
development loan fund application All information must be signed and dated.
1. A current business plan that includes a detailed description of the
proposed expansion or start-up project (see Note 1 for business plan
requirements).
2. Financial statements for the past three years and a current interim
financial statement, including balance sheets and profit and loss state-
ments that are compiled by 2n independent accountant in accordance with
generally accepted accounting principles (GAAP) and include a discussion of
all significant assumptions (see Note 2 for business credit guidelines to
be used in evaluating loan fund projects)
3. Financial projections for the first three years of the project, including
balance sheets and profit and loss statements that are prepared by an
independent accountant in accordance with GAAP and include a discussion of
all significant assumptions (officers' compensation and direct iabor costs
should be listed separately) In addition, start-up businesses should
provide quarterly financial projections for the first two years (see Note
2 for business credit guidelines to be used in evaluating loan fund
projects)
4 Personal financial stacements for the principals of the business
5 A statement of the anticipared benefits to be derived from the proposed
loan fund project and the reasons why the project will not take place
without funding from the loan fund program
6 A letter of commitment from the financial institution or other source of
debt financing for the amount of debt financing that is a part of the
project
7 Documentation of the availability of funds for the private equity injection
that is a part of the loan fund project
8 A letter from the chief executive officer committing the business to the
proposed project
9. Cost estimates for all machinery and equipment purchases, land and building
acquisition, and building construction or renovation that is a part of the
loan fund project.
I 10 A lease or pre-lease agreement for rental property or an offer to purchase
for fixed assets that are a part of the project
- ' 11 A schedule of the iobs to be creaced and/or retained. with iob titles and .a -
l a description of the qualificacions required for the new jobs
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12 A memorandum of agreement between the City, the recipient business, and the
local Private Industry Council or the .Wisconsin Job Service documenting the
commitment to recruit low- and moderate-income (LMI) persons for the jobs
to be created.
13. Documentation that the project is in compliance with local and state
building codes and zoning regulations and other applicable local and state
ordinances.
14. A map showing the exact location of the project.
15. Other documentation that may be required by the Finance Committee that is
deemed important relative to a determination regarding the loan fund
project. """"""""__""""""""""""""""""""""""""""""~
Note 1: The business plan should present a detailed description of the business
that includes the following level of detail;
1 A description of the firm, including a 4-digit SIC Code
2. A description of the ownership--corporate officers, shareholders with
number of shares owned, articles of incorporation, partnership agreements,
agreements with other businesses, etc.
3. A discussion of the management team and its experience.
4, A discussion of the marketing strategy, composition of the customer base,
identification of major competitors, and a list of all in-state competi-
5. A discussion of projected sales growth and the financing and capital
tors
requirements necessary to achieve the projected growth,
6 A discussion of accounting methods applied to inventory and the aging of
inventory.
7 A discussion of terms offered to customers and the aging of accounts
receivable
8 A discussion of agreements with suppliers and other trade accounts and the
aging of accounts payable.
9. A description of the debt structure, the status of outstanding debts, a
listing of all assets currently pledged as security, and a debt service
schedule for all debt during the three-year projection period
10 A discussion of working capital needs and how working capital is generated.
Note 2: Historical financial statements and financial projections will be exam-
ined to determine whether the applicant business conforms with the industry stan-
dards as set forth in the most recent edition of Robert Morris Associates,
Annual Statement Studies, or other generally recognized source of industry
financial information. In addition, the proposed project will be examined to
determine whether or not there is sufficient cash flow to cover debt service and
the additional expenses that will be generated as a result of the project The
following business credit guidelines will be used to evaluate the financial
statements and financial projections of the applicant business:
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Balance Sheet Analysis
1. Does the business adequately collect on its accounts receivable? * days accounts receivable vs. terms offered to customers. * trends in days accounts receivable over time.
2. Does the business pay its vendors in a timely fashion? * days accounts payable vs terms offered to vendors. * trends in days accounts payable over time.
* days inventory vs. inventory cycle * trends in days inventory over time. .
4 Are the officers committed to the business? * owners' equity in the business. * profit after tax vs. retained earnings * notes payable to officers * notes receivable to officers
* growth in retained earnings * debt to equity ratio.
3. Does the business control inventory?
5 Does the business have a positive operating history?
Profit and Loss Statement Analysis
1 Is the business growing?
2 Does the business control profitability?
* historical sales growth
* cost of goods sold as a percentage of sales * gross profit margin.
* selling, general & administrative expenses as a percentage of sales * use of selling, general & administrative expenses.
* earnings before tax less other income. * earnings before tax as a percentage of sales * cost of goods sold as a percentage of inventory
* excess officer compensation, * depreciation expense. * interest expense * rent expense.
e
3 Does the business control expenses?
4 Is the business truly profitable?
5. Does the business have hidden cash flow?
*****
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Attachment B
1992 LOW- AND MODERATE-INCOME LIMITS
WISCONSIN DEVELOPMENT FUND
WALJKESHA COUNTY, WISCONSIN
........................ _"""""""""""""""""""""""~
Household Size Household Income
........................
1 Person
2 Persons
3 Persons
4 Persons
5 Persons
6 Persons
7 Persons
8 Persons
$23,400
26,750
30,100
33,450
36,100
38,800
41,450
or More 44,150
_""""""_""__""""""""""""""
Note This income schedule will be updated
annually.
Source Wisconsin Department of Development
and SEWRPC