4A Wichita Falls Economic Development Minutes - 08/05/2013RECEIVED IN
'ITY CLERK'S OFFICE
DATE: e9-13
BY: �! TIME:
MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
August 5, 2013
PRESENT:
Gary Shores, President § Members
Dick Bundy, Vice President/Sec.- Treasurer §
Reno Gustafson §
Darron Leiker §
Dave Lilley §
Glen Barham, Mayor § City Council
Brian Hooker, Councilor District 3 §
Kevin Hugman, Assistant City Manager
Jim Dockery, Assistant City Manager /CFO
Miles Risley, City Attorney
Linda Merrill, Recording Secretary
Kevin Pearson
Michael Paris
Tom Whaylen
Linda Beltchev
Clayton Lane
Cynthia Laney
Danny Ahern
John Dickinson
Diane Walser
Presley Whitehead
Kevin Bazner
Mike Derr
Ann Arnold
Erin Marvin
Andy Lee
Brian Walser
Jeff Stambaugh
1. CALL TO ORDER
§ City Staff
§ Chamber of Commerce & Industry
§ Military Affairs Committee
3 Downtown WF Development
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§ MSU /Idea WF
President Gary Shores called the meeting to order at 4:00 p.m.
2. APPROVAL OF MINUTES /REPORT OF FINANCIAL CONDITION
Dick Bundy moved for approval of the June 21, 2013 minutes. Seconded by
Dave Lilley, the motion carried.
H: \_legal\4A & 4B \4A Corp\4a Minutes\2013\2013.8.5 4a minutes\2013.8.5 4a minutes.x.doc
WFEDC — Minutes of August 5, 2013
3. DISCUSSION OF FY 2013 -2014 BUDGET PROPOSALS
Kevin Hugman discussed the proposed budget for 2014. The financial statement
included a column estimating the ending cash balance for FY 2013; this provides a
starting point for FY 2014. Sales tax revenues for 2014 are based upon those
anticipated year -end figures. The Board's conservative practice has been not to budget
an increase for the next year. Revenues should end about 2.4% above last year's total.
All unexpended funds listed under the annual program expenditures are put back
into the unreserved fund balance. Funds allotted to performance agreements that have
expired will be disencumbered in FY 2014. (The companies affected include Sharp Iron,
Health Care Equipment Specialists, and Pratt and Whitney of Canada.) Nothing
prohibits these companies from making another request for funding from the Board.
State law allows 10% of the WFEDC's revenues to be earmarked for promotional
expenses. The amount of $477,833 is budgeted for FY 2014.
Entities that have regularly received funding from the WFEDC are represented at
today's meeting — the Sheppard Military Affairs Committee, Downtown Wichita Falls
Development, and MSU /IdeaWF. They will present their requests to the WFEDC.
Military Affairs Committee
Tom Whaylen thanked the WFEDC for its past support. The funding request is
the same as in previous years. The lack of support at the state level only increases the
need for local efforts.
Positive efforts include the following: every community in Wichita County (and
Frederick, Oklahoma) have joined together through the Joint Land Use Study to plan for
future compatible growth around the base.
The Air Force has designated Wichita Falls as one of 13 cities to determine
areas where the City and the Air Force can partner, such as cities maintaining traffic
signals on -base.
Another area SMAC is working on is the possibility of making electricity out of the
saltwater of Truscott Brine Lake. They have worked with Representative Mac
Thornberry's office and Air Force Headquarters regarding this endeavor. It would
provide for the Base's electrical needs and stabilize its cost of electricity for years to
come. This project is far from completed.
SMAC is getting more exposure with its annual events by bringing senior Air
Force officers to Wichita Falls.
The ENJJPT Memorandum of Understanding expires in 2016. The United States
has expressed support to renew it. The next meeting is to be held in The Netherlands,
and the ENJJPT steering committee will meet toward the end of September.
WFEDC — Minutes of August 5, 2013
He believes there will be a "Shadow BRAC," where bases will be reduced around
the nation. SMAC continually puts the word out that Sheppard AFB is equipped to take
on extra duties in the event of consolidation.
Downtown Wichita Falls Development
Ann Arnold thanked the WFEDC for its previous support of DWFD. They are
asking for more money this year in order to move into a more regional operation. The
events held by the DWFD have a big economic impact on the City: for every $1
provided by the WFEDC, nearly $48 is returned to the Wichita Falls economy. By using
WFEDC funds to increase marketing, they can focus on different projects, including the
Farmers' Market. They have added new LED lighting, electrical units, fixed /replaced
plumbing and replaced broken tiles at the Farmers' Market. They now want to replace
support beams, install fans, paint, and add a canvas cover.
Cynthia Laney said approximately 58% to 63% of DWFD's income is derived
from its events. Other income sources include WFEDC funding, grants, and
membership and sponsorship dollars. The DWFD's gross income last year was
$292,000; their expenses totaled $237,000.
Mr. Shores asked if there are specific programs in mind for the increased
request. Ms. Laney said their main goal was to work on the Farmers' Market; $40,000 to
$50,000 is still needed there. They have also considered buying and rehabilitating a
downtown building in order to do more community development.
Other DWFD attendees spoke regarding the need to develop downtown,
including Danny Ahern, Andy Lee, Brian Walser, and Mike Derr.
MSU /IdeaWF
Jeff Stambaugh thanked the WFEDC for its past support. The funding request
has increased because the contest has been restructured to ensure that start-up
companies had an equal chance to compete against firms with revenue. They now have
in effect two first -place winners and one third -place winner. The WFEDC contributes just
under 30% of the total cost of this program.
Past winners are making a positive difference in the economic development of
the community, although some may experience a slower growth rate than others.
Business Park Maintenance and Utilities
Kevin Hugman said the business park expenses have decreased from the
previous year as the City has removed one person from the MPEC /Business Park
mowing crew. There is not much in the way of water or electricity costs.
Chamber of Commerce
Kevin Pearson said the WFEDC provides funding for 50% of the salary of the
President/CEO, and 100% of the Vice President's salary. Mr. Pearson projected a 5%
pay increase that would be equally split between the Chamber and the WFEDC, as well
as a 12% increase in insurance benefits. The Chamber is also seeking 100% funding of
WFEDC — Minutes of August 5, 2013 4
the salary of the Vice President of Workforce Development and the President of the
Pride in the Falls campaign. The WFEDC has also paid 50% of the marketing director's
salary, as he spends over 50% of his time updating the website.
Mr. Leiker asked if the health insurance quote was provided by the insurance
provider. Mr. Pearson said it was; they have used Aetna for the past couple of years,
with a very high deductible program. The Chamber self- insures for anything over $1,000
for individuals and $2,000 for families. Mr. Hugman said in the current contract there
was an allocation for the deductible on health insurance. Mr. Risley said a percentage
was reimbursed to employees if they incurred those costs. Mr. Pearson said he did not
include that in this year's budget as he was not sure what that line item represented.
The total request is $363,152. Mr.
$400,000 for last fiscal year. Mr. Leiker
search expense for a new president. Mr
expenses would be completed by the E
account for the discrepancy.
Bundy asked why the
asked if the request
Pearson said it did
end of this fiscal year. That $33,000 would
request is less than the
includes the cost -share
not; he assumed those
Mr. Hugman said the Pride in the Falls campaign was allocated $250,000 per
year for three years under Phase 1. The WFEDC approved $200,000 last year for
Phase 2, but that phase has yet to be launched. He recommends that those funds be
disencumbered in this fiscal year and reallocated in the FY 2014 budget.
4. EXECUTIVE SESSION
Mr. Shores adjourned the meeting into executive session at 5:07 p.m. pursuant
to TEXAS GOVERNMENT CODE § §551.071, 551.072, and 551.087. He closed the
executive session and announced the meeting back into regular session at 5:35 p.m.
5. OPTION & SALE OF 8.21 ACRES OF LAND IN BUSINESS PARK
Dave Lilley moved to authorize the option and sale of an 8.21 acre tract of
land in the Business Park at a cost of approximately $20,000 per acre, plus other
commitments for development of property for industrial use; and to find that the
sale is in an amount that represents at least the fair market value of the tract of
land, and authorize the dedication of the property to the City as is necessary to
provide for infrastructure to the business park, and authorize the president to
execute appropriate documents to effect said transactions. Seconded by Reno
Gustafson, the motion carried.
Mr. Shores said he would like to delay voting on the budget request until the
WFEDC's next meeting to further consider the funding requests. He would like to have
available a copy of the Pride in the Falls budget request extension at the next meeting.
6. ADJOURN
The meeting adjourned at 5:37 p.m. 4� J"
ary hores, resident