OLDC

Olean Local Development Corporation Special Meeting 101 East State Street Olean, NY 14760 Olean Local Development Corporation Special Meeting Minutes August, 11, 2025 8:30 a.m. Room 119 Attendance: Members: Keri Kerper Lens Martial Genelle Morris Paul Pezzimenti (via Zoom) James Sprague Colleen Taggerty Meme Yanetsko Other(s): Kathleen Monroe Ed Bysiek, Bysiek CPA, PLLC 1. Roll Call Recognizing a quorum, Colleen Taggerty called the meeting to order at 8:30 a.m. and requested the roll call show all members present except Mayor Aiello, John Crawford and Bridget Marshall, who were excused. 2. Reading and approval of the June 19, 2025 annual meeting minutes. A motion was made by Keri Kerper, seconded by Genelle Morris to approve the June 19, 2025 annual meeting minutes as presented. Voice vote, ayes all. Motion carried. 3. Elections There was no business at this time. 4. Bills and Communication Ms. Kerper advised one invoice in the amount of $4,000 has been submitted to the OLDC for payment by Bysiek CPA, PLLC for professional audit services performed for the FYE May 31, 2025 audit. 1 After brief discussion, a motion was made by Keri Kerper, seconded by Meme Yanetsko to authorize payment to Bysiek CPA, PLLC in the amount of $4,000 for professional audit services performed for FYE 2025. Voice vote, ayes all. Motion carried. Ms. Taggerty thanked Mr. Bysiek for the quick timeframe for reviewing and providing the financial reports allowing the corporation to remain in compliance with the Authorities Budget Office (ABO). Mr. Bysiek noted he was aware of the Board’s concerns receiving the financial statements in a timely manner, and was happy to perform the services within the requested time period. 5. Report of the Treasurer Ms. Yanetsko advised as of August 31, 2025 there was a cash balance of approximately $103,955.13 in the Five Star Bank checking account. She explained the transactions are primarily related to EHRLP expenditures and monthly ACH repayments of current participants. A motion to accept the Treasurer’s Report was made by Jim Sprague, seconded by Paul Pezzimenti. Voice vote, ayes all. Motion carried. i. Fiscal Year End Audit Presentation Mr. Bysiek introduced himself to the Board and advised this was the firm’s first year performing the audit services for the OLDC. He noted the firm specializes in not-for-profit audit services servicing approximately 100 agencies throughout Cattaraugus, Allegany and Chautauqua Counties as well as parts of Pennsylvania. Mr. Bysiek advised the transition in services went very smoothly with all necessary reports received in a timely and efficient manner, allowing for the quick turnaround. He noted members may recognize the standard language used in the financial statements, which is consistent with generally accepted accounting principles (GAAP). Mr. Bysiek advised the audit was completed with a clean unmodified opinion which means anyone relying on the statements either inside or outside of the organization may effectively do so due to the firm’s stamp of approval. Mr. Bysiek referred to the Independent Auditor’s Report, and explained the report consists of three separate official financial statements including the Statements on Financial Position, Statements of Activities and Statements of Cash Flows followed by the accompanying footnote disclosures. He noted the Statement of Financial Position is referred to as the Balance Sheet of not-for-profit organizations. Mr. Bysiek advised the increase in the cash flows from the previous year was primarily made up of repayments on existing loans and notes receivable. He advised the agency experienced a modest loss of $683 which is considered a break-even fiscal year. Mr. Bysiek indicated the agency is projected to collect approximately $43,000 - $44,000 in the fiscal year 2026, after which time the final HK Olean Hotel loan repayments would be received, while the Exterior Housing Rehabilitation Loan Program (EHRLP) repayments would continue to trickle in. Mr. Bysiek advised the corporation has no long-term debt or liabilities. He noted the net assets in the amount of $179,052 remain relatively unchanged from the previous year. Mr. Bysiek 2 explained there was limited activity during the fiscal year, as reflected in the Statement of Activities. He noted the support and revenue primarily consisted of interest revenue from the EHRLP, while the bulk of expenses are related to EHRLP program expenditures. Mr. Bysiek explained half of the program expenditures are in the form of interest-bearing notes, while the other half represents the deferred loan portion. He advised collection of the deferred portion is unlikely, and if collected, it would be treated as a bonus. Mr. Bysiek indicated the OLDC is being conservative in its approach by not anticipating the collection of the deferred portion of the loans. Mr. Bysiek referred to the Note 3-Notes Receivable in the note disclosure section, and explained the section provides a detailed breakdown of the loan amounts outstanding as of May 31, 2025 as well as the amounts expected to be collected in the next fiscal year and subsequent years. He explained the loan amounts are associated with the EHRLP and HK Olean Hotel loan repayments. Mr. Bysiek summarized the Report on Financial Statements for the fiscal year ended May 31, 2025 was issued with a clean unmodified opinion, with no findings, material weaknesses or deficiencies identified. Ms. Yanetsko inquired about recording principal and interest separately in QuickBooks. Mr. Bysiek explained the interest portion are recorded as income, while the principal portion should be applied to the notes receivable accounts. He advised the loan amortization schedules and the supporting spreadsheet provided by staff may be utilized to determine the interest income and principal breakdown of payments received on each of the participant loans. Ms. Yanetsko asked if a single adjustment may be made in QuickBooks to record all of the interest received on the EHRLP loan repayments since March 2025, with interest and principal recorded separately going forward. Mr. Bysiek agreed making one adjustment would be the simplest way to approach the recording of prior interest received. A motion was made by Keri Kerper, seconded by Genelle Morris to accept and approve the Fiscal Year End 2025 audit, as presented. Voice vote, ayes all. Motion carried. Mr. Bysiek thanked the Board for allowing the firm to perform the service. 6. Report of Committees There was no business at this time. 7. Unfinished Business i. Exterior Housing Rehabilitation Loan Program Update Ms. Kerper reported all four of the participants awarded during the current round have secured contractors. She advised the OLDC has disbursed half of each participant’s funding award directly to the contractors on behalf of the homeowner. Ms. Kerper noted project materials have been ordered and work is underway. She added staff would continue working with Code 3 Enforcement to ensure inspections, permitting and project completion are performed prior to releasing the remainder of the financial assistance awarded. As a new member to the Board, Mr. Pezzimenti asked for an overview of the program and its application process. Ms. Kerper explained to be eligible, homes must be owner-occupied and located within the City limits. She noted the OLDC meets annually to review the Program Guidelines, making any revisions, updates or changes necessary prior to release of the application materials. Ms. Kerper explained the full 2025-2026 program budget has been exhausted in the first round of funding, with four awards of up to $10,000 approved during the June meeting. She advised the OLDC was able to assist four households with up to $10,000 each for exterior home rehabilitation projects. Ms. Kerper reiterated $5,000 of each award is in the form of a deferred grant and the other $5,000 in the form of a loan for a five-year period at Federal Prime Rate in effect at the time of closing with an early payoff penalty. She noted this structure differs from the previous ten-year term with no early payoff penalty. Ms. Kerper noted the previous program year had applicants focused primarily on roof repairs and replacements, while the current round of applications has largely consisted of requests for porch and siding improvements. She advised the program funding may be used for eligible exterior home repairs as outlined in the Program Guidelines, which are intended to make a visual impact in neighborhoods. Ms. Kerper noted a full list of eligible exterior home repairs including windows, doors, soffits, siding, roofing, etc. may be found on the OLDC webpage. Ms. Taggerty added safety is considered a priority when evaluating the project applications. Ms. Taggerty explained a designated committee reviews all applications for financial assistance prior to presenting a redacted version to the Board for review. She advised the applications and corresponding materials are kept confidential. Ms. Taggerty noted the processing and administration of the applications require a lot of behind the scenes work performed by staff. 8. Executive Session There was no business at this time. 9. New Business i. Ethics Officer Ms. Kerper advised the Mayor has appointed City Attorney Bridget Marshall to the Board. After brief discussion, a motion was made by Keri Kerper seconded by Genelle Morris to approve the appointment of Bridget Marshall as the Ethics Officer for the Olean Local Development Corporation. Voice vote, ayes all. Motion carried. ii. ABO Annual Reports 4 Ms. Kerper referred to the 2025 Annual Report prepared by staff, and advised the report includes the financial information presented in the Independent Auditor’s Report. Ms. Taggerty asked if there were any changes or additions to the ABO reporting requirements for the fiscal year. Ms. Monroe responded the required ABO reports remain unchanged from the previous year. She noted the Annual Investment Report was a new requirement introduced during the previous fiscal year. Ms. Kerper advised the Annual Investment Report, Assessment of Effectiveness of Internal Control Statement, Code of Ethics, Real Property Owned by the Olean Local Development Corporation and Annual Committee Reports are included in member packets for review and acceptance. After brief discussion, a motion was made by Meme Yanetsko seconded by Jim Sprague to accept the 2025 Annual Report and supporting reports, as presented. Voice vote, ayes all. Motion carried. Ms. Kerper advised the Annual Report and supporting reports would be uploaded into the PARIS system for compliance. iii. IRS Tax Filing Ms. Taggerty advised with the FYE 2025 audit now approved, the IRS tax filing may be performed to comply with the IRS regulations for tax-exempt agencies. Mr. Martial explained the cost of filing the IRS tax forms may vary depending on the financial transactions and income reported during the fiscal year. He noted no fees were incurred during the previous year, as the OLDC’s income fell below the minimum income reporting threshold. After brief discussion, a motion was made by James Sprague, seconded by Meme Yanetsko to direct the City Auditor to file the required IRS tax forms for the Fiscal Year End 2025 in an amount not to exceed $100. Voice vote, ayes all. Motion carried. iv. Confidential Evaluation of Board Performance Ms. Monroe referred to the Confidential Evaluation of Board Performance provided in member packets, and requested members complete the evaluation and provide to staff. She advised a Summary Report would be compiled and sent to the ABO for compliance. 10. Miscellaneous There were no miscellaneous communications at this time. 11. Adjournment The next Olean Local Development Corporation meeting has been scheduled for Thursday, December 18, 2025 at 8:30 a.m. Ms. Taggerty advised the committee meetings would be held prior to the meeting, and expressed the importance of attendance. A motion to adjourn was made by Meme Yanetsko, seconded by Genelle Morris. Voice vote, ayes all. Motion carried. The meeting ended at approximately 8:57 a.m. 5