HomeMy WebLinkAboutResolution 154-1998 RESOLUTION NO. 154-98
AUTHORIZING UNCOLLECTIBLE ACCOUNTS TO BE REMOVED LIQUOR STORE
WHEREAS, The Brookings Municipal Liquor Store has received a total amount of
$3,375.84 in uncollectible accounts; and
WHEREAS, these accounts have been considered uncollectible;
NOW, THEREFORE, BE IT RESOLVED that the checks totaling $3,375.84 be
determined as uncollectible and removed from the records. Such checks will be retained by the
Finance Office as inactive for possible subsequent collection of that debt.
Passed and approved this 22"d day of December, 1998.
Mayor
, F
U'��`,�pPORA)EQ.�cS •
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M„R.9
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N�SC .S••�
Finance Officer
Enloe & Associates Inc.
PO Box 2805
White City OR 97503 - 0805
September 29, 1998
Brookings Liquor Store
PO Box 270
Brookings, SD 57006
Subject: First Edition restaura.nt
Attention: Credit Manager
Gentlemen,
We were retained by Douglas McGath,DBA First Edition Restaurant to review their financial
condition and develop an action plan. We have obtained an accounting of the accounts payable,bank
loans, leases, federal payroll taxes, and state taxes. The combined total of this debt is over
$750,000.00. Due to a lack of record keeping we are not able to obtain a sales journal or accurate
bank deposit records and are unable to develop a balance sheet. We estimate the sales for the operating
period of tiine to be �1,400,000.00.
All of the restaurant equipment and fixed assests have liens thru the lenders and have no
residual value. Being a cash sales business there are no accounts receivable or any cash reserves.
Neither McGath or his partners have any assests nor the earning power to service a debt of this
magnitude.Due to personal and business insolvency the secured and unsecured creditors are in the
same position as ta collecting their accounts. This is a very unfortunate position for the creditors,but
with no assests or potential eaniing pc�wer I see no way to service these debts.
If further information is required on this matter I can be contacted at the above address or
(541)-734-2428.
Sincerely, �� � G'� � ���"" �'���
,�. .�. £Kl,ec ���� O:
R. L. Enloe -
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CITY OF � �
a�ooKirvGs
City finaiir,e O((ice
Ciry I l�ili • P.O. Hox 270
Brookinfls, S.D. �i7006
Phone (6O5�692-6281
� Fax (605)692-6907
Decem�er 16, 1997 , .
Mr. Dc�ub McGai�'
Country Inn Suites .
I51 Tower Roac1
PO IIox 410
. Dakota Dunes, SU 57049
Dear Mr. McGa(T'. -
You are l�ere�y notified tliat your cl�eck described as follows:
• Date of check: November 28, 1997
• Amount of cl�eck: $3�375.84
• Name of bank: First National IIank
• Department issued to: Brookings Liquor Store •
• Service charge: $20.00
has been dislionocecl by your bank becluse of insufTicient fiinds/account closed. Your cl�eck is beinb
helJ by tlie City l�inance O(lice at City [la(I, 311 1'hird Avei�ue, I3rool;ings for a ��eriod of live(5)
�lays, fi-o�u the d�Ue of this notice. If you redeem this check by cash or money or�ler will�ii► five (S)
days, tl�e service cl�arge will be waived.
It is believed that tliis check is in violation of South Dakota State Law.
DROOKINGS CI'I'Y rII�1ANCL
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Theo. C. Kryger �
Tinance Otiicer .
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� 'o •Comp�ete items t and/or 2 ror additiona�servfces. I also wish to receive the s
� , _ a ■Comclete Rems 3,aa,and ab. following senrices(for an
� m ■P�rn your name anC adtlress on the reverse at this fortn so tha!we can retum this eXtr3 f88)' i
� card to you. � m
; 1 ` • � ■Att�this fortn to the horrt of the mailpiece,or on the badc'rf space does not �, p qddressee's Address ` _ `
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' v m ■Wnie'Aetum Receipt Aeouested'on the maiioiece below the artide number. 2. ❑ qestricted Detivery y J
� = ■The Retum Reeei�wiU snow to whom the artide was deuvered and the tlate '
-' . o de�ivered. Cansult postmaster for fee. � �
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TeUruary 8, 1998
I3rookings Liyuor Slore
City rin,incc o(�icc
� 'iiy 11�,11
.i 1 ( .i��) i�v�. I�1� I��►x 1.11�
13rookinbs, Sl) 570UG
Sut�jcct: First Acidition Rcstaurant Acc:ouni. .
(;cnticn�cn: •
7'liis fiim lias Ueen retained by Douglas McGath to access tlie financial conditiai of tl�e
. l�i�st Isclitic�ii ltesturauls to elevelop a action plati for debt retireiuetit,a�id aclir�inister tlie ac;livities.
�� We are cwrently gathering all the operating rewrders and relateci c�ala so we c�u�deternune
ilie currenl financial condition of il�is Uusiness. We will review the debt jx>sition of tlie secuted
credilors, unsecured accotuits payaUle, fixed assets,ca91i position, and as►y reve��ue slreaui.
Alier tl�is data has been correlated and reviewecl a deUt service plan will be developed and
fc�rwarded to all creditors. If you l�ave questions concerning tliis matter contact;
Richard�nloe �
'I'ele: 541-734-2428
F�uc: 541-734-4213
Writicii concs�ncicnce:
I'snlac&Associatcs Inc.
1'.U. Ilox 28US
Wliit�C'ily, Olt. 97503 -0805
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