4A Wichita Falls Economic Development Minutes - 06/15/2023 MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
June 15,2023
Present:
Leo Lane,President § WFEDC Members
Phyllis Cowling, Secretary-Treasurer §
Darron Leiker §
Brent Hillery §
Bobby Whiteley, Mayor ProTem § Mayor&Councilors
Paul Menzies,Assistant City Manager § City Administration
Blake Jurecek,Assistant City Manager §
James McKechnie,Deputy City Attorney §
Jessica Williams, CFO/Director of Finance §
Stephen Calvert, Senior Budget Analyst §
Terry Floyd,Director of Development Svcs §
Chris Horgen,Public Information Officer §
Paige Lessor,Executive Legal.Assistant §
Ron Kitchens, CEO § Wichita Falls Chamber of Commerce
Moriah Williams, Partner—Jobs Team §
Absent:
David Toogood, Vice President § WFEDC Member
1. Call to Order
Mr. Lane called the meeting to order at 2:30 p.m.
2. Consent Agenda
a.Approval of Minutes (May 18,2023)
b.Financial Report
Mr. Menzies stated that things were starting to slow down nationally, and that is being
reflected locally. Sales tax is beginning to flatten out,but the Corporation is still running about 2%
ahead of this time last year. Interest is still doing well; if it continues, it will be like having a 13th
sales tax payment. The Board's unrestricted fund balance is about $10.6 million. He asked the
Board to note that the project approved earlier this year,a$2.75 million forgivable loan to Pratt&
Whitney will be paid out next week.Mr.Menzies also reminded the Board that the Pratt&Whitney
Project funding has already been set aside and encumbered and does not affect the unrestricted
fund balance.
Ms. Cowling moved to approve the Consent Agenda as presented. Seconded by Mr.
Hillery,motion carried 4-0.
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3. Financial Management Update with Jessica Williams, CFO/Director of Finance
Ms.Williams reminded the Board that there was a brief discussion about establishing some
kind of policy addressing incentives a year ago. Because Ms. Williams is the fiduciary for the
Board, she researched the recommendations of the Government Finance Officers Association
(GFOA) and wanted to review the best practices with the Board. The Board's current financial
reporting is given to board members monthly in a financial report at the monthly meeting. She
stated the WFEDC has an annual budget that the Board adopts and then is adopted by City Council.
The WFEDC is a component unit of the City of Wichita Falls and is listed in the Annual
Comprehensive Financial Report,and is a part of the City's audit. On behalf of the WFEDC, Ms.
Williams reports to the State Comptroller.
Ms. Williams presented. the GFOA's recommendations to the Board, explaining that
because the WFEDC uses public funds to provide incentives to the community, they need to be
tracked and ensure a fair.and transparent process for awarding these incentives. No one wants to
accidentally violate any laws or end up with collections that can't be gotten back. All of this
information should be included in any contracts. To assist in this process,the GFOA recommends
that the Board establish a policy setting forth WFEDC's goals and types of incentives to be offered.
For example, the incentives could be based on the value of the project or what the project will
bring to the community. Anyone who wants to apply for a project could look at the policy online
to find out the range of incentives they could receive.
Ms.Williams then discussed monitoring and report compliance.She stated that the Finance
Department did not have the WFEDC's project status information. If so directed,they could work
with the Chamber to include that information in the monthly financial report.
Another best practice Ms.Williams recommended was establishing a fund balance policy.
She recommended reserving 25%of the prior year's annual cost.In the budget process,the finance
department would look at the total expenses for the previous year plus encumbrances and then
determine 25% of that amount to set aside in case of an emergency or unforeseen events, i.e., a
large legal settlement. She explained the process for the current financials. The fund balance is
approximately$10.5 million,so 3.8 million would be restricted, leaving an unrestricted balance of
6.7 million. All City financial policies and practices apply to the WFEDC Fund. These policies
and procedures are available in the annual budget document and online.
Mr.Lane stated that the Board had previously hired a consultant and developed a range of
incentives.The Board discussed using the term guidelines instead of policy.Ms.Cowling said they
have all the elements needed. They just need to be put together in policy or guideline format. Ms.
Cowling also asked for clarification on the meaning of"restricted" for purposes of the WFEDC.
She asked if"restricted" meant"board designated." Mr. Calvert confirmed that it is the Board's
discretion not to use it.
Mr. Lane asked if anyone had any more questions for Jessica. No further questions were
asked or comments made.
4. Executive Session
Mr. Lane adjourned the meeting into executive session at 2:40 p.m. pursuant to Texas
Government Code§§551.087, 551.071,and 551.074.He announced the meeting back into regular
session at 3:54 p.m. The subjects posted in the Notice of Meeting were deliberated, and no votes
or further actions were taken on the items in executive session.
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5. Adjourned.
The meeting adjourned at 3:54 p.m.
Leo Lane, President
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