4A Wichita Falls Economic Development Minutes - 09/10/2013MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
September 10, 2013 -� : -CE ED hN
PRESENT:
,'ITY CLERK'S )FFIGF
Gary Shores, President § Members
Dick Bundy, Vice President/Sec.- Treasurer § P 'fK
Darron Leiker §
Glen Barham, Mayor § City Council
Kevin Hugman, Assistant City Manager § City Staff
Jim Dockery, Assistant City Manager /CFO §
Miles Risley, City Attorney §
Linda Merrill, Recording Secretary §
Kevin Pearson § Chamber of Commerce & Industry
Michael Paris §
Jim Johnson §
Jim Heiman, Pride in the Falls §
ABSENT:
Reno Gustafson § Members
Dave Lilley §
1. CALL TO ORDER
President Gary Shores called the meeting to order at 3:45 p.m.
2. APPROVAL OF MINUTES /REPORT OF FINANCIAL CONDITION
Dick Bundy moved for approval of the August 5, 2013 minutes. Seconded
by Darron Leiker, the motion carried.
3. FY 2013 -14 BUDGET APPROVAL
Kevin Hugman presented the Board's financial statement. The Board currently
has $2.725 million in sales tax revenues. Total revenues year -to -date are $2.872
million. There has not been much activity on projects since the Board's last meeting,
other than some expenditures with Ulm, Tobol and Nocona Transport for cash for jobs.
Current expenditures total $2.264 million. The sum of $11.5 million is encumbered, and
there is an unreserved fund balance of just under $4.4 million.
Staff is projecting end -of- fiscal year sales tax receipts at $3,634,248, a decrease
from the previous projection, as sales tax collections were lower last month than
anticipated. The sales tax collection has increased 1.5% over last year's collections.
H: \_legal\4A & 4B \4A Corp \4a Minutes\2013\2013.9.10 4a minutes\2013.9.10 4a minutes.doc
WFEDC — Minutes of September 10, 2013
Mr. Shores said the Board heard budget presentations at its last meeting from
various entities and it is time to discuss those requests.
Sheppard Military Affairs Committee ($100,000). Mr. Shores noted the request
is the same amount as has been in prior years. Mr. Leiker moved to approve this
expenditure request. Seconded by Mr. Bundy, the motion carried.
MSU — IdeaWF ($30,000). Mr. Bundy moved to approve this expenditure
request. Seconded by Mr. Leiker, the motion carried.
Downtown Wichita Falls Development (DWFD) ($150,000). Mr. Shores noted
this request is double that of last year. Mr. Hugman furnished the Board with DWFD's
budget. Mr. Risley noted that the DWFD budget is missing six months of expenditures.
He recommends the Board insist they complete a budget projection to include 4A
expenditures.
Mr. Shores said DWFD's stated expenditures include refurbishing the Farmers
Market and possibly buying a downtown building for redevelopment. While they are both
admirable goals, he questions whether these activities qualify as economic
development. Mr. Hugman said they did purchase the DeFoors building to use as their
office headquarters. He noted that Cynthia Laney had said they wanted 4A funding to
use for their operations, and free up their own money to purchase the building.
Mr. Shores asked if this building purchase would be considered economic
development. Miles Risley said the Board could theoretically find that it is legally within
the category of advertising /publicizing the city for the purpose of developing new and
expanding business enterprises, if only to the extent that having a headquarters
constitutes that advertising and promotion. The Board could assert that DWFD's mere
existence advertises and promotes.
Mr. Leiker said he had concerns that the 4A Board would be funding too much of
the organization's operational expenses. Additionally, there is not enough growth in
sales tax to warrant increasing their funding from $75,000 to $150,000. He moved to
grant to Downtown Wichita Falls Development the sum of $75,000; further, if the
group wishes to come back later in the year with a specific, eligible project, the
4A Board would consider it. Seconded by Mr. Bundy, the motion carried.
WFEDC — Minutes of September 10, 2013 3
Chamber of Commerce. The Chamber made the following requests:
Salaries /Benefits
$369,894.50
100% for President, Vice President, Pride in
the Falls and Workforce Development
$100,000
-Marketing
Deductible Expenses on Health Insurance
$32,000
The 4A would only be billed under this
expense if an eligible employee incurs that
deductible
Salary Escalator (to be matched by
2.5%
Chamber
TOTAL
$501,894.50
Jim Johnson said these figures assume a salary for the President of $140,000,
which was the salary paid to Tim Chase. There will, of course, be salary negotiations for
a successor. Mr. Shores said once an individual is chosen, the Board would expect the
Chamber to come back with a revised budget (either increased or decreased).
Pride in the Falls ($200,000). Jim Heiman thanked the 4A Board for their
assistance with this campaign. Phase 2's mission is to provide marketing and
recruitment. They are requesting $200,000 to be reimbursed only as the money is spent
for a very specific community -wide marketing. He distributed a brochure which listed the
various activities the campaign seeks to accomplish.
Mr. Shores asked how much of the Pride in the Falls budget can be directly
targeted toward economic development. Mr. Heiman said the biggest marketing effort is
that Wichita Falls is a good place to live, work and play. The campaign plays a part in
assisting the City or the Chamber with specific projects. Mr. Hugman said that when the
task force discussed whether to do Phase 2, there was a debate about the branding
campaign promoting an image or economic development. Lanham Lyne said branding
is not tied to economic development, but it creates the atmosphere for economic
development. It is very tough to quantify. Mr. Shores said he would like to have a
billboard in Dallas that advertises Wichita Falls.
Mr. Shores also said he would like a presentation that tracks the expenditure of
4A funds. Mr. Hugman said he can get a year -to -date accounting of Phase 1 and where
the expenditures have gone. Mr. Heiman added that the fundraiser kickoff for Phase 2 is
September 25 with a goal of $200,000. They currently have $47,000.
He explained there were staff changes last year, and Pride in the Falls did not
expend money as planned. The $200,000 granted by the 4A Board was essentially
"parked." The campaign collected $101,000 for Phase 1 that has yet to be expended.
Mr. Hugman added that Phase 2 was to begin last year. Due to those staff turnovers,
that never happened. He recommended to the Pride committee that the money be
WFEDC — Minutes of September 10, 2013 4
disencumbered and reallocated in the next fiscal year to coincide with the kickoff. The
$200,000 was therefore deallocated for FY 2013 and would be allocated in FY 2014
instead, along with the additional $100,000 that has not been spent.
Mr. Leiker moved to approve the requests of the Chamber of Commerce
and Industry (CCI) and the Pride in the Falls campaign. The CCI contract would
increase to $401,895, and the findings for Chamber personnel expenditures in the
economic development services contract would be changed to $316,539.82
administrative and $85,355.18 promotional. Seconded by Mr. Bundy, the motion
carried.
Mr. Shores pointed out that the promotional and administrative expenditures
approved today approach about 24% of the annual sales tax collections.
Mr. Hugman clarified that four non - active projects have been closed, and the
remaining funds returned to the unreserved fund: Sharp Iron ($472,950); Health Care
Equipment Specialty (Buydental) ($131,005); Pratt - Whitney ($15,000); and Natura
($1,487,282). Mr. Shores said that certainly Sharp Iron or Health Care Equipment
Specialty could reapply for those funds.
4. EXECUTIVE SESSION
Mr. Shores adjourned the meeting into executive session at 4:47 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 4:55 p.m.
5. ADJOURN
The meeting adjourned at 4:55 p.m.
Gary Shickes, resident