4A Wichita Falls Economic Development Minutes - 08/19/2021 MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
August 19 2921
Present
Leo Lane President §
David Toogood Vice President §
Phyllis Cowling Secretary Treasurer § WFEDC Member
Brent Hillery §
Dacron Leiker §
Stephen Santellana § Mayor
Paul Menzies Assistant City Manager § City Administration
Blake Jurecek Assistant City Manager §
R Kinley Hegglund Jr City Attorney §
Terry Floyd Director of Development Services §
Jessica Williams Chief Financial Officer §
Linda Merrill Recording Secretary §
Henry Florsheim President and CEO § CCI
Travis Haggard V P BR&E §
David Leezer V P Business Attraction §
Tom Taylor §
Lynn Walker § Times Record News
1 Call to Order
Leo Lane called the meeting to order at 2 35 p m
2 Strategic discussion
Henry Florsheim discussed the update to the community wide economic development
strategy to be conducted by Matt DeVeau of Broad Ripple Strategies He asked the Board to let
him know of their choices for co chairs of the steering committee The committee needs to be
established by mid October and hold its first meeting by early December An online survey will
again be available to the entire community
Mr DeVeau said new individuals should be asked to serve on the committee Ms Cowling
agreed but opined some who had previously served should also be appointed in order to maintain
continuity Mr Florsheim said he anticipated the committee would have the same diverse
composition as the first one
This process should be completed by next May or June with implementation to follow
The cost for this project is$98 000 plus expenses for a total of no more than $106 500 Chamber
and City staff w21I review invoices for accuracy before payment is made
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Mr Lane asked if non profit corporations would be involved Mr Florsheim said there
will be a series of one on one interviews and advisory group interviews In addition Dr Shelly
Sweatt from the Priddy Foundation served on the first committee so he anticipates that either she
or another non profit official will serve
3 Discussion and possible action related to Howmet Wastewater Project
Mr Lane directed the Board to the brief synopsis and recommendation from the Chamber
Ms Cowling said it is her understanding that Howmet currently has less than 529 full time
employees and this incentive agreement comes with an expectation of growth in employment
She noted she liked the partnership of this arrangement
4 Discussion and possible action related to Delta T Thermal Solutions Project
This item was removed from discussion at today s meeting
5 Approval of Fiscal Year 2022 Budget
Paul Menzies furnished an updated copy of the proposed budget to the Board members
Staff had to manually calculate some of the figures which reflect that next year the Board has
less expenditures and should earn more sales tax revenue The proposed FY 2021 22 budget
anticipates an unreserved fund balance of$7 6 million approximately$2 5 million more than the
current year This calculation does not include revenue from the possible sale of the Atco building
and sales tax revenues are budgeted flat
Budget Highlights
USA 800—This company s incentive agreement expires soon
DuPlooy Trucking— It is not clear that this company has moved within the city limits a
requirement under their incentive agreement The agreement expires next year Mr Lane opined
that the difficulties with this project are a testament to the Board s current processes any loans
provided are secured and the company has to meet certain performance obligations before any
money is expended
SAFB Front Gate Project—This project is due to fiscally close very soon The Board asked
for a reconciliation Mr Menzies said Karen Montgomery Gagne would provide such a report
Sales tax receipts are budgeted next year at $4 2 million They are currently running at
$4 7 million a difference of$500 000 If this continues that would in effect make the Board s
bond payment
Mr Menzies then discussed the administrative services cost increase to $80 000 There are
three main prongs of assistance provided by the City Legal services Fiscal agent Coordination
between Board and Council/Payment of Invoices Staff was asked to note the average number of
hours per month spent on EDC matters providing the justification behind this increase
Ms Cowling asked about the audit performed on EDC files Mr Menzies said it is a
governmental audit performed on the City s $190 million budget which includes 4A and 4B
funds It is difficult to piece out 4A s share The cost estimate was derived through a combination
of what could be its share in the government audit and what it would cost for the Board to have a
separate audit conducted The City s annual audit is around $100 000 Mr Florsheim said the
Chamber s annual audit for an organization of$] 6 million costs around $10 000
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Mr Lane said the 4A funds represent about 2% of the City budget so its share would be
about$1 000 He said justification was needed for this increase This line item increased $10 000
last year and $20 000 this year
He appreciates this discussion He hopes to have a contract for services with the City in
the future as it has with other entities He does question discrepancies in bills the 4A Board pays
such as maintenance for the Atco building versus the City s responsibilities such as maintenance
of the Business Park Mr Leiker noted that bids have been taken twice on the maintenance of the
Business Park and the City s costs have been half of what was bid The City probably said at the
time that it did not want to be responsible for mowing more acreage such as at the Atco building
He added that Mr Hegglund is cutting himself short at $114 per hour That figure would
be between$300 $400 if the Board went outside for legal services He added that City staff spends
over a month with the auditors Ms Cowling said if the Board is helping to pay for the audit it is
not seeing the results If it had an independent audit it would get the results She would assume
that since the 4A is such a small part of the City s audit there is nothing specific to the EDC in
the report Mr Leiker said they could bring the auditor in for an update or look at a separate audit
Ms Cowling said a separate audit would be a lot of cost without a lot of benefit
Mr Leiker noted the City is not trying to pad its budget or gouge the EDC He asserted
that to hire all of these services the Board would pay three times as much as this request In
addition when staff is working on EDC matters that means they are not working on City issues
Mayor Santellana said taxpayer dollars pay staff time Some of the EDC deals are easy
some are difficult and quite lengthy He believes it is a little on the light side of compensation but
it helps to be able to justify the use of City staff for EDC efforts
Ms Cowling said she would like to know if the audit is a clean audit and to be aware of
any processes/improvements that might be recommended Mr Leiker said they can ask the auditor
to look at the sales tax board and come back with any recommendations
Mr Menzies said if this budget is approved it will be on the City Council agenda well in
advance of October 1
Consent agenda
a Approval of minutes (June 17 2021) Henry Florsheim noted the minutes were
incorrectly dated Recording Secretary Linda Merrill noted she had already made that
change I arion Leiker moved for approval Seconded by Bient Hillery the motion
carried 5 0
b Financial Report — Paul Menzies noted that the August 2021 sales tax payment
reflective of June 2021 ieeeipts was up over 11% from the same month the previous
year Sales tax revenues foi the year are nearly 13% ahead of what was budgeted
'7 Executive Session
Mr Lane adjourned the meeting into executive session at 3 10 p m pursuant to Texas
Government Code §551 087 He announced the meeting back into regular session at 3 30
p m The subjects posted in the Notice of Meeting were deliberated and no votes or further
action were taken on the items in executive session
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S. Motions
Howmet
Cow I II1L ii \ed that the WFEDC pro\ide a forgivable lo'Lin to Howmet in the sum of
',-Ksist in the purchase of an Oberlin [MLA-. with said loian to be forgiven if i one year
ALT comp ction or the illti2r project. 110\\met 11J, Lit 529 rull-timk.: employees working at the
üiii 1 1 ilk plant. IF doe', not 1-w\c : 29 crnplo\ce--; at that point it wifl
ry,c), the N.DC $1,001) lor en-w10\cc it i hort. Seconded b Da\ id Too!.2(u)d. thc motion
carried 5-0.
Budget
Mr. Leiker rno,,0,1 tj dppro\e the FY 2022 budget aspcented. Seconded E-Y Brent
the motion carried 5-0.
Mr. Florsheini noted that the Board discussed moving its October meetirp:2 at the request
for Dr. Scott Manic:,. so that any winner of WFEDC incentives would not he announced prior to
tile official ideaWF ceremony. Mr. Lane requested he contact Dr. Manley to detcrininc it this is
still a requirement. Mr. Florsheim said he would report back to the Hioarci once he am had that
conver',ation.
9. ‘djourn
ihe meeting adjourned at 3:35 p.m.
co Lane, Prc,id,,mt
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