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Res 072-2015 8/4/2015Resolution No. _72-2015___ Resolution approving the programs and expenditures of the Wichita Falls Economic Development Corporation (WFEDC) and amending the budget to include up to $2,010,750 for the American Fuel Cell and Coated Fabrics (AMFUEL) Project W HEREAS, Texas Local Gov’t. Code § 501.073(a) provides “The corporation's authorizing unit will approve all programs and expenditures of a corporation and annually review any financial statements of the corporation ”; and, WHEREAS, on July 15, 2015, the WFEDC approved the Project listed below and as stated in its agenda. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: 1. The Wichita Falls Economic Development Corporation ’s approval and funding of the following programs and expenditures for the AMFUEL Project, as described below and in said corporation’s agenda, are approved:  No Interest, Forgivable Loan of $800,000 for the purchase of an autoclave, valued at $1.2 million, that is used in the manufacturing process. The loan is forgivable over a period of ten years should the company maintain the jobs as stipulated in the agreement.  Cash for jobs in the amount of $844,7 50 for creating and retaining 280 jobs in Wichita Falls.  A grant up to a maximum of $366,000 for skills development training should a grant application to the Governor’s Economic Development and Tourism Department not be approved. 2. The current fiscal year budget of the WFEDC is amended to provide for the aforementioned expenditures and changes thereto. PASSED AND APPROVED this the 4th day of August, 2015. ______________________________ M A Y O R ATTEST: ____________________ City Clerk Performance Agreement between the Wichita Falls Economic Development Corporation and American Fuel Cell and Coated Fabrics Company, an Arkansas Corporation (“AMFUEL”) for Incentives to Create Primary Jobs at 8600 Central Freeway North in Wichita County, Texas This Performance Agreement (“Agreement”) is entered into on ___________________, 2015, by and between the Wichita Falls Economic Development Corporation (“WFEDC”), a Texas development corporation authorized under the Texas Development Corporation Act of 1979, Section 4A, (“Act”), and American Fuel Cell and Coated Fabrics Company, an Arkansas corporation (“Company”). Whereas, the Act authorizes the WFEDC to contract with companies whose activities are defined as manufacturing and classified as 326299 by the North American Industry Classification System (NAICS); and Whereas, Company seeks to open a business to manufacture crash resistant fuel cells for commercial and military aircraft at 8600 Central Freeway North, Wichita Falls, Texas 76305 (the “Facility”), and represents that the Company’s Facility will involve a capital investment of approximately $12,100,000 and employment of approximately 280 new full-time positions with benefits; and, Whereas, Company estimates it will complete its project by January 15, 2016; and, Whereas, Company and the WFEDC mutually find that the project could be located in alternative facilities outside the Wichita County region, and is expected not to occur in the local area unless it receives the support and investment from the City of Wichita Falls and t he use of Type A sales tax proceeds; and, Whereas, Company will secure specified obligations herein with a guaranteed note to the WFEDC, secured by a purchase money security interest against the Equipment purchased with WFEDC proceeds. Now, therefore, be it resolved, subject to the approval of the Wichita Falls City Council and the execution of subsequent agreements to memorialize and obligate funds provided hereunder in the form to be provided by the WFEDC, the parties agree as follows: Definitions. As used in this Agreement, the following terms have the following meanings: “New Position” means a permanent, full-time, Company, benefit-eligible employee working at least 37.5 hours per week at the Facility who receives full-time wages paid by Company for a period of at least 6 months at the Facility. To be a New Position, an employee must represent an increase in the total, permanent level of employment at the Facility. Positions shall not be considered New Positions if they replaced occupants of New Po sitions or full-time positions from an earlier reduction in the number of full-time employees in Wichita County. New Positions must be Primary Jobs. “Payroll Statement ” means (i) a written statement setting forth the monthly, quarterly and annual (as applicable) payroll at the Facility and the amount of wages paid to each full-time employee at the Facility, and (ii) such other documentation as reasonably determined to be necessary by the WFEDC to verify the number of New Positions created and continuing financial condition of the Company. Such other documentation that Company may be required to provide to the WFEDC shall include compiled income and expense statements for each quarter, balance sheets effective at the end of each quarter, and copies of the Company’s tax returns, income statements, state unemployment tax submissions, and federal unemployment tax submissions. The aforementioned documents may be redacted, modified, or summarized by Company as reasonably necessary to protect the privacy of individuals and prevent the disclosure of the Company’s confidential and/or proprietary information. “Primary Job” means a primary job as defined in Texas Local Gov’t Code 501.002. Incentives: Cash for Jobs WFEDC’s Total Maximum Obligation: $844,750 a. Payment for New Positions Subject to the WFEDC’s Total Maximum Obligation, the WFEDC will pay Company cash for each New Position employed by Company at Facility as set by the table shown below. New Positions eligible to receive cash for jobs payment must be in existence for a minimum of six months before payment will be rendered. Wages to be Paid Incentive Per Position Jobs Created Total Incentive $9.50 to $10.49 per hour $2,000 198 $396,000 $10.50 to $11.49 per hour $2,500 11 $27,500 $11.50 to $12.49 per hour $3,000 1 $3,000 $13.50 to $14.49 per hour $4,000 6 $24,000 $14.50 to $15.49 per hour $5,000 10 $50,000 $18.01 to $24.99 per hour $6,375 54 $344,250 280 Total $844,750 b. Each New Position must be filled by one or mor e employees continuously during the time period for which funds are requested. c. This incentive will only be available for New Positions who are initially employed by Company at the Facility prior to September 15, 2025. d. These funds received pursuant to this Section may be used for any business purpose in the Facility in Wichita Falls, Texas. Payments will be made after a presentation by Company has been made to the WFEDC evidencing the New Positions have been in place for at least 6 months. Applications for payment may only be made once every 6 months following start -up. The WFEDC intends to only pay for each New Position one time. In no event will a position be reimbursable if it merely replaced a position that was earlier eliminated. Payment obligations will be subject to the obligation of Company to provide Payroll Statements to the WFEDC as required by the WFEDC. e. The Cash for Jobs incentive available pursuant to this agreement may not exceed the amount of the WFEDC’s Total Maximum Obligation stated above. Skills Development Training Funds: WFEDC’s Total Maximum Obligation: $366,000 An application to the Texas Workforce Commission has been made for a Skills Development Fund grant. If the grant is not funded by the Texas Workforce Commission or other government entity in an amount of at least $366,000, then the WFEDC will provide funding for training under the grant conditions in an amount sufficient to make up the amount of funds not provided, in a total amount not to exceed the low er of (1) the amount to be provided if the grant were successfully funded, (2) $1,200 per trainee, or (3) $366,000. This reimbursement does not include the wages of the trainees, but can include the wages of Company employees involved in the training of those employees. Loan WFEDC’s Total Maximum Obligation: $800,000 The WFEDC agrees to provide to Company up to $800,000 to assist in purchasing equipment for Facility in the form of loans that the WFEDC will forgive in their entirety if Company meets it s obligations under this Agreement as set out below. Company shall execute a Purchase Money Security Agreement for each piece of equipment purchased using WFEDC loans. Such security agreement will give WFEDC a first lien on said equipment. Company shall pay back this loan by paying WFEDC $80,000 annually until the debt is entirely paid off. Said first payment will be due September 15, 2016 and every year thereafter, with a final payment due September 15, 2025. Should Company create and maintain the new positions with benefits shown in Exhibits A and B, the loan will be forgiven at the rate of $80,000 annually, so that after 10 years, the loan will be forgiven in its entirety. Should Company fail to create or fail to maintain the new positions shown in Exhibits A and B, Company will pay all or a portion of the annual loan payment then due as follows: Actual jobs created/retained (minus) jobs promised to be created/retained x $80,000 = annual amount to be repaid 1. Documentation. Prior to receiving payment from the WFEDC pursuant to this Agreement, Company shall submit a Payroll Statement and other documentation as required by the WFEDC to verify and document such request, including forgivable notes covering the amounts provided hereunder providing the following minimum provisions and other provisions required by the WFEDC to adequately secure and document payments and provide for forgiveness: Terms of Payment (principal and interest): The Principal Amount will be due and payable in 10 annual installments of $80,000 of the obligated amount beginning 1 year from the execution of the document. Forgiveness of Payments: Payments to be forgiven upon compliance with employment obligations under this Agreement. Loan Disbursements: The WFEDC may disburse the loan amount as reimbursements to Company based on invoices related to the purchase of the following equipment: 1. Autoclave (estimated price: $1,200,000). Such equipment shall be used at Company’s Wichita Falls Facility. Such disbursements shall not exceed $800,000. In regard to such disbursements, the WFEDC will provide all disbursements subject to such supporting documentation as required by the Assistant City Manager of the City of Wichita Falls, including cancelled checks, purchase orders, invoices, receipts, waivers of liens, and other documents reasonably necessary to ensure funds are expended for equipment for Wichita Falls, Texas. Such disbursements will not be paid until the Purchase Money Security Agreement for said equipment is fully executed. General Conditions: 1. Maintenance of Operations. The WFEDC intends for any incentives to be used to ensure that Company continues to operate in Wichita Falls. In addition to other repayment provisions herein, if Company reduces its employment by more than 50% from its employment level at the time of execution of this agreement (currently 4 permanent Company positions) or ceases operations in Wichita Falls prior to 12 months from the date of receipt of any incentives payment, Company shall, within 60 days, repay the WFEDC the full amount of the applicable incentive paid by the WFEDC to Company. 2. Use of Proceeds. Company agrees to use all of the funds received from WFEDC pursuant to this Agreement for (or as reimbursement for) the “costs” (as that term is defined in Tex. Loc. Gov’t Code Ann. § 501.152, as of the date of this Agreement) of this project related to the creation or retention of primary jobs as provided by Tex. Loc. Gov’t Code Ann. § 501.101. 3. Compliance with Tex. Gov’t Code § 2264.001. In accordance with Tex. Gov’t Code §§ 2264.001 through 2264.101, Company does not and will not knowingly employ an undocumented worker during the term of this Agreement in violation of Texas or federal law. If, during the term of this Agreement, Company or a br anch, division, or department of Company is convicted of a violation under 8 U.S.C. Section 1324a(f), Company shall repay the entire amount of the public subsidy with the addition of interest at the rate of 5% simple annual interest as required by Tex. Gov’t Code § 2264.053, not later than the 120th day after the date the WFEDC notifies the business of the violation. 4. Compliance with Tex. Gov’t Code §§ 501.156 through 501.158. The parties agree this Agreement complies with Tex. Loc. Gov’t Code §§ 501.1 56 through 501.158, by: (1) being intended to benefit the WFEDC, (2) providing that default on this Agreement is enforceable as provided by Tex. Loc. Gov’t Code § 501.157, in addition to retaining other enforcement remedies provided by Texas law, and (3) providing a schedule as stated in this Agreement for additional jobs and capital investment as consideration for direct incentives provided herein and providing for repayment obligations. 5. No Waiver. No delay or omission by WFEDC in exercising any right that may accrue to it pursuant to this Agreement will operate as a waiver of any other WFEDC right that may accrue pursuant hereto. 6. Disputes. In the event of a dispute, (1) neither party will be entitled to attorney's fees incurred or paid in the enforcement of any provision of this Agreement, regardless of any provision authorizing attorney’s fees in Texas Local Gov’t Code § 271.153(a)(3) or other statute, and (2) sole venue for any action based on this Agreement or promise ancillary thereto shall be in Wichita County, Texas. 7. The WFEDC shall not be the guarantor of Company’s success, and shall not be liable for any failure to provide incentives not specifically set forth in this Agreement. Any representations by WFEDC, the City, or the Wichita Falls Chamber of Commerce and Industry concerning the availability of incentives hereunder are subject to the approval of the governing bodies entrusted by law to issue said incentives. Company certifies the truth of the representations by its representatives to the WFEDC, the City, and the Wichita Falls Chamber of Commerce and Industry. Company agrees to release the WFEDC, the City, and the Wichita Falls Chamber of Commerce and Industry from any and all claims, suits, and actions for damages, costs, and expenses to persons or property (collectively “Claims”) that may arise out of, or be occasioned by or from any act, error or omission of the WFEDC, the City, and the Wichita Falls Chamber of Commerce and Industry in the execution or performance of this contract. The aforementioned release does not encompass Claims attributable to the negligence or willful misconduct of the WFEDC, the City, and/or the Wichita Falls Chamber of Commerce and Industry. 8. Term. The Term of this Agreement shall be from its execution until the later of: a. September 15, 2025, or b. One year after the WFEDC’s payment to the Company of the final incentive payment described in this Agreement. 9. Default. During the Term of this Agreement, Company shall promptly notify WFEDC if Company learns of the occurrence of: (i) any event which constitutes an Event of Default; or (ii) any legal, judicial or regulatory proceedings affecting Company and/or the Facility in which the amount involved is in excess of $50,000 and is not co vered by insurance. 10. Indemnity. Company shall indemnify, save and hold harmless WFEDC and the City of Wichita Falls and their respective officers, directors, employees, representatives and agents (collectively, the "Indemnified Parties") from and against: (i) any and all claims, demands, actions, or causes of action that are asserted against any Indemnified Party by any person or entity if the claim, demand, action or cause of action directly or indirectly relates to a claim, demand, action, or cause of action attributable to the acts or omissions of Company, any affiliate of Company or any officer, employee or partner of Company; (ii) any and all claims, demands, actions or causes of action that are asserted against any Indemnified Party if the claim, demand, action or cause of action directly or indirectly relates to funds received by Company pursuant to this agreement, Company’s use of the proceeds of funds received pursuant to this agreement or the relationship of Company and WFEDC pursuant to this agreement; and (iii) any and all liabilities, losses, costs or expenses (including attorneys' fees and disbursements) that any Indemnified Party suffers or incurs as a result of any of the foregoing; provided, however, that Company shall have no obligation pursuant to this provision to any Indemnified Party with respect to any of the foregoing arising out of the negligence or willful misconduct of such Indemnified Party. To the extent necessary to provide the Indemnified Parties full protection in accordance with the terms of this Section, the indemnity provisions set forth herein shall survive the termination of this Agreement. 11. Events of Default. Each of the following events shall be considered an Event of Default of this agreement: a. The failure of Company to pay any payment due to the WFEDC pursuant to this agreement when due and the continuation of such failure for a period of 10 days after written notice thereof from WFEDC; or b. If any representation or warranty by Company set forth herein o r in any certificate, report, request or other document furnished pursuant hereto is incorrect in any material respect as of the date when made or deemed made; or c. The failure of Company in its due observance and performance of any of the covenants or agreements set forth in this agreement or any of documents associated with this agreement and the continuation of such failure for a period of 30 days after written notice thereof from WFEDC; or d. If an involuntary case or other proceeding shall be commenced against Company that seeks liquidation, reorganization or other relief pursuant to any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or them or any substantial portion of its or their property, and if such involuntary case or other proceeding shall remain undismissed or unstayed for a period of 30 days; or if an order for relief against Company shall be entered in any such case under the Federal Bankruptcy Code; or e. If Company shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official or shall consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against it, or if Company shall make a general assignment for the benefit of creditors or shall fail generally or shall admit in writing its inability to pay its debts as they become due; or f. If Company shall fail within 30 days to pay, bond or otherwise discharge any judgment or order for the payment of money in excess of $50,000 that is not otherwise being satisfied in accordance with its terms and is not stayed on appeal or otherwise being appropriately contested in good faith; or g. If there shall be a disso lution of Company or a cessation of business operations at the Facility; or h. If the Company is determined by WFEDC to be continually or repeatedly violating a City ordinance or state law or regulation related to the operation of the Facility. 12. Remedies. Following the occurrence of any Event of Default described above during the Term of this Agreement, the obligations of WFEDC to the Company shall terminate and the entire amount of the funds provided by WFEDC to the Company within one year prior t o the default shall become immediately due and payable to the WFEDC if Company fails to cure the Event of Default within ten (10) days of receipt of written Notice of Default (the “Notice Period”). Following the occurrence of any other Event of Default sp ecified in this section, WFEDC may by written notice to Company and if Company fails to cure the Event of Default within ten (10) days of receipt of written Notice of Default: (i) declare the entire amount of any obligation to the WFEDC then outstanding, together with interest (if any) then accrued thereon, to be immediately due and payable to the WFEDC, and/or (ii) terminate all obligations of WFEDC to the Company unless and until WFEDC shall reinstate the same in writing; and/or (iii) reduce any claim to judgment; and/or (iv) without notice of default or demand pursue and enforce any of WFEDC's rights and remedies pursuant to this Agreement or any document ancillary to it. 13. Further approvals required. Any representations by WFEDC, the City of Wichit a Falls or the Wichita Falls Chamber of Commerce and Industry (or any representatives of any of the foregoing) concerning the availability of incentives hereunder are subject to the approval of the governing bodies entrusted by law to issue said incentives. 14. This agreement and said attachments, if any, may only be amended, supplemented, modified or canceled by a duly executed written instrument agreed to by both parties. 15. Company’s maximum aggregate liability under this Agreement to WFEDC, the City of Wichita Falls, the Wichita Falls Chamber of Commerce and Industry, any third party, and/or any Indemnified Party identified in Section 10 shall not exceed the amount of funds provided to Company pursuant to this Agreement. Wichita Falls Economic Development Corporation ______________________________________ Dick Bundy, President American Fuel Cell and Coated Fabrics Company ______________________________________ Mike Viscosi _____________________,_________________ Name President and CEO AMFUEL MANUFACTURING LABOR PAY SCALE EMPLOYMENT WAGES* Entry Wage Progressio n Wage Final Wage After 12 Months After 24 Months After 36 Months After 12 Months After 24 Months After 36 Months Job Code Job Classification Labor Grade 0-6 Months 6-12 Months 12 Months+ Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 001 003 103 105 108 111 115 202 401 101 102 104 106 107 109 110 113 201 203 204 002 301 302 116 402 Maintenance – Skilled Maintenance – Utility Autoclave Operator Cutting Table Wash Pit Cement House Utility Worker Receiving/Stores Tooling – Property Builder Fuel Cell Post Cure Operator CNC Knife Operator Calendar Unit/Dip Unit Operators Spray & Vac Bag Fittings CAS Forms Shipping Trucker/Fork Lift Operator (CDL) Fork Lift Operator (No CDL) Maintenance Inspection (Quality) Fuel Test (Quality) Coated Fabrics Tooling - Builder A,B 5 3, 4, 5 4, 5 4, 5 3, 4, 5 5 4, 5 3, 4, 5 2, 3, 4 2, 3, 4 2, 3, 4 2, 3, 4 2, 3, 4 2, 3, 4 2, 3, 4 2, 3, 4 2, 3, 4 2, 3, 4 3, 4 1, 2, 3 1, 2, 3 1, 2, 3 C, 1, 2 C, 1, 2 $15.00 $9.50 $9.50 $9.50 $9.50 $9.50 $9.50 $9.50 $9.50 $10.25 $10.25 $10.25 $10.25 $10.25 $10.25 $10.25 $10.25 $10.25 $10.25 $10.25 $11.00 $11.00 $11.00 $12.00 $12.00 $16.00 $9.50 $10.25 $10.25 $10.25 $10.25 $9.50 $10.25 $10.25 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $12.00 $12.00 $12.00 $13.00 $13.00 $16.00 $9.50 $11.00 $10.25 $10.25 $11.00 $9.50 $10.25 $11.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $12.00 $11.00 $13.00 $13.00 $13.00 $14.00 $14.00 0 1 2 1 2 3 2 3 2 35 30 1 0 4 32 0 18 1 1 1 2 7 2 0 1 0 2 3 1 2 6 5 4 1 53 44 1 6 7 32 2 24 2 1 2 4 10 2 3 2 0 2 3 1 2 6 5 4 0 53 44 1 6 7 32 2 24 2 1 2 4 19 2 3 2 $0 $21,138 $48.950 $22,806 $45,613 $73,425 $42,275 $68,419 $48,950 $934,500 $801,000 $26,700 $0 $106,800 $854,400 $0 $480,600 $26,700 $26,700 $24,475 $57,850 $202,475 $57,850 $0 $31,150 $0 $42,275 $73,425 $22,806 $45,613 $146,850 $105,688 $91,225 $24,475 $1,415,100 $1,174,800 $26,700 $160,200 $186,900 $854,400 $53,400 $640,800 $53,400 $26,700 $48,950 $115,700 $289,250 $57,850 $93,450 $62,300 $0 $42,275 $73,425 $22,806 $45,613 $146,850 $105,688 $91,225 $0 $1,415,100 $1,174,800 $26,700 $160,200 $186,900 $854,400 $53,400 $640,800 $53,400 $26,700 $48,950 $115,700 $289,250 $57,850 $93,450 $62,300 Total 151 219 218 $4,002,775 $5,812,256 $5,787,781 *Wages include 7% OT Labor Grade Proposed Rate A $16.00 B $15.00 C $14.00 1 $13.00 2 $12.00 3 $11.00 4 $10.25 5 $9.50 Hourly Wage Count $9.50 24 $10.25 174 $11.00 16 $12.00 5 219 Notes: 1) An employee is hired in at the lowest (pay) labor grade for their job code and automatically progresses to the next higher labor grade every six months until the top of the labor grade is reached. For example, a Labor Code 101 Builder hires in a $10.25/hr. and after 6 months is automatically moved to $11.00/hr. and after another 6 months automatically moves to top of grade at $12.00/hr. 2) An incentive bonus plan will be offered to all hourly employees. For every point of efficiency earned over 100%, the employees will receive a $0.10/hr. bonus (paid monthly). We believe, based on past performance in Magnolia, that at least 120% efficiency is very doable. For example, an employee who works 168 hours/mo. at 120% efficiency would receive 120%-100% = 20 pts., 20 x $0.10 = $2.00, $2.00 x 168 = $336 Bonus. A standards review may be performed which would adjust actual hours; however, the bonus amount would remain basically unchanged. 3) A semi-annual profit sharing plan will pay hourly employees equally (based on actual hours worked during the month) out of a 7.5% of profits pool. 4) A 401K plan will be offered at a 100% match to 3%. AMFUEL Salaried Labor Job Classification Starting Wage Minimum Hourly Wage Starting Wage Maximum Existing Position # Employed Year 1 # Employed Year 2 # Employed Year 3 $ Employed Year 1 $ Employed Year 2 $ Employed Year 3 Materials Production Control AP/AR HR Generalist Supplier Mgmt Exec. Admin. Asst. Payroll OPS Supervision Sales Administrator Cost Accountant Liquid Logistics Sales QA Manufacturing Eng Engineers HR Manager QA Manager Mfg Engr Manager EH&S/Facility Mgr Materials Manager Controller Engineering Mgr VP Operations VP Bus Dev President $28,000 $30,000 $35,000 $35,000 $35,000 $35,000 $40,000 $40,000 $45,000 $45,000 $50,000 $50,000 $50,000 $50,000 $60,000 $60,000 $60,000 $60,000 $65,000 $75,000 $85,000 $14 $15 $18 $18 $18 $18 $20 $20 $23 $23 $25 $25 $25 $25 $30 $30 $30 $30 $33 $38 $43 $60 $60 $85 $48,000 $42,000 $50,000 $45,000 $75,000 $50,000 $55,000 $80,000 $60,000 $75,000 $75,000 $75,000 $80,000 $95,000 $85,000 $85,000 $90,000 $85,000 $90,000 $90,000 $115,000 $46,000 $36,000 $39,000 $40,000 $40,000 $45,000 $65,000 $52,000 $63,000 $70,000 $65,000 $65,000 $65,000 $65,000 $82,500 $120,000 $120,000 $170,000 2 3 1 1 1 1 1 8 1 1 1 3 5 4 1 1 1 1 1 1 0 1 1 1 3 4 1 1 1 1 1 12 1 1 1 4 8 6 1 1 1 1 1 1 1 1 1 1 3 5 1 1 1 1 1 12 1 1 1 4 10 10 1 1 1 1 1 1 1 1 1 1 $92,000 $108,000 $39,000 $40,000 $40,000 $42,500 $45,000 $520,000 $52,500 $52,000 $62,500 $189,000 $350,000 $260,000 $65,000 $65,000 $65,000 $72,500 $82,500 $82,500 $0 $120,000 $120,000 $170,000 $138,000 $144,000 $39,000 $40,000 $40,000 $42,500 $45,000 $780,000 $52,500 $52,000 $62,500 $252,000 $560,000 $390,000 $65,000 $65,000 $65,000 $72,500 $82,500 $82,500 $100,000 $120,000 $120,000 $170,000 $138,000 $180,000 $39,000 $40,000 $40,000 $42,500 $45,000 $780,000 $52,500 $52,000 $62,500 $252,000 $700,000 $650,000 $65,000 $65,000 $65,000 $72,500 $82,500 $82,500 $100,000 $120,000 $120,000 $170,000 Total 42 55 62 $2,735,000 $3,580,000 $4,016,000 Hourly Wage Count $14 3 $15 5 $18+ 54 62 Notes: 1) A semi-annual profit sharing plan will pay non-bonus eligible salaried employees equally (based on actual hours worked during the month) out of a TBD% profits pool. 2) A 401K plan will be offered at a 100% match to 5%. 3) Company/employee paid medical will be offered as well as employee paid Dental and Vision plans. 4A Corporation Financial Statement 7/28/2015 Adopted Adopted YTD Previously FY 13 FY 14 FY 14 FY 15 FY 15 Approved Actual Budget Actual Budget Actual Revenue Sales Taxes 3,677,061$ 3,634,248$ 3,732,923$ 3,798,949$ 2,440,123$ Other Rents (ATCO Lease)106,800$ 106,800$ 106,800$ 106,800$ 80,100$ Reimbursements 35,062$ 28,711$ 649,096$ 29,750$ 29,061$ Interest 14,844$ 16,500$ 5,114$ 5,000$ 6,067$ Project Repayment (Travel Center)81,327$ 81,327$ 81,327$ 67,773$ Sale of Assets 367,430$ -$ Total Revenues 3,833,767$ 3,867,586$ 4,942,690$ 4,021,826$ 2,623,124$ Completed / Closed Projects Wichita Clutch (09/2014) 740,000$ 300,000$ WF Downtown Travel Center 243,980$ 243,980$ Cryovac (12/2014) 272,000$ 252,000$ PITF Community Promo - Phase 1 750,000$ 123,556$ 70,026$ PPG Reclaim Water Facilities 1,145,000$ 1,145,000$ Carter Copter Aircraft Devt (10/2013) 4,000,000$ 545,016$ -$ Ameri-Kal Vitamin Manufact. (09/2014) 75,000$ 18,000$ -$ Tobol Industries (1/2014) 196,750$ 123,199$ -$ Ulm Corp. (4/2016) 2,396,400$ 600,000$ -$ Annual Programs Ad Valorem Tax 29,705$ 28,711$ 28,752$ 29,750$ 29,237$ Professional Fees 24,844$ 30,000$ 9,599$ 30,000$ 5,668$ CCI-Contract 341,314$ 401,895$ 381,905$ 405,742$ 192,423$ Regional Marketing Taskforce 100,000$ 100,000$ 100,000$ 124,474$ 62,237$ SMAC 100,000$ 100,000$ 100,000$ 100,000$ 75,000$ Downtown WF Devlpmt, Inc. (NOTE 1) 75,000$ 75,000$ 75,000$ 100,000$ 100,000$ Business Plan Contest (Lalani) 27,500$ 30,000$ 30,000$ 30,000$ 30,000$ Business Park Maintenance 82,116$ 97,281$ 79,216$ 99,023$ Water/Sewer Sanitation 5,102$ 7,500$ 2,675$ 7,500$ 2,806$ Electricity 338$ 600$ 261$ 600$ 90$ City Administrative Expense 50,000$ 50,000$ 50,000$ 50,000$ WF Regional Airport Facilities (2033) 140,000$ 140,000$ 140,000$ Open Projects (Termination Date: MM/YYYY) PITF Community Promo - Phase 2 200,000$ 200,000$ 42,090$ ED Strategic Planning 20,000$ Excalibur Paint and Coatings (02/2017) 1,500,000$ 115,722$ (500,000)$ -$ Arrow Manufacturing (01/2015) 178,250$ 70,000$ Tryer Process Equipmt 2012 (12/2014) 112,000$ 28,000$ -$ Hlth Care Svcs Corp (BCBS) (12/2018) 820,000$ 670,000$ Nocona Transport (3/2019) 216,000$ 24,000$ 24,000$ Eagle Rail Car Services (10/2020) 928,800$ 500,000$ 352,000$ Lone Star Milk Producers (01/2016) 116,000$ Cryovac -- Printer Install (4/2016) 304,280$ Arrow MP Downhole Project 208,250$ 118,750$ Hunting Titan 185,500$ Lone Star Milk Transport (06/2017) 310,364$ Safety Design USA (06/2018) 688,500$ Alcoa Water Treatment Project 1,200,000$ Sealed Air - Cryovac IP Water Reuse 300,000$ Eagle Rail Car -- Project II 928,800$ Cobra Kai Simulator Project 140,000$ 140,000$ Pratt & Whitney Technology 1,815,000$ AMFUEL Project 2,010,750$ Total Expenditures 3,627,392$ 2,720,017$ 3,058,434$ 8,730,503$ 1,150,301$ Revenues Less Expenses 206,375$ 1,147,569$ 1,884,256$ (4,708,677)$ 1,472,823$ Beginning Cash Balance 15,364,061$ 16,473,255$ 15,570,434$ 17,490,716$ 17,454,690$ Ending Cash Balance 15,570,434$ 17,620,824$ 17,454,690$ 12,782,039$ 18,927,513$ Reserved For Encumbrances 7,618,935$ 9,164,865$ 2,453,080$ 2,453,080$ 10,032,769$ Unreserved Fund Balance 7,951,499$ 8,455,959$ 15,001,610$ 10,328,959$ 8,894,744$