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4A Wichita Falls Economic Development Minutes - 09/21/20170 MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION September 21, 2017 PRESENT: Dick Bundy, President § WFEDC Members Reno Gustafson, Vice President/Secretary-Treasurer § Leo Lane § Darron Leiker § David Toogood § Jim Dockery, Deputy City Manager/CFO R. Kinley Hegglund, Jr., City Attorney Linda Merrill, Recording Secretary Henry Florsheim, CEO Kevin Pearson, V.P., Economic Development Travis Haggard, V.P., BR&E Adrene Wike, Research Associate Brian Havins, Marketing 1. Call to Order § City Staff § Chamber of Commerce and Industry Dick Bundy called the meeting to order at 3:30 p.m. 2. Approval of Minutes (9/6/17) Leo Lane moved for approval of the minutes. Seconded by David Toogood, the motion carried 5-0. 3. Financial Report Revenues total $3.2 million, with two more months of sales tax receipts to be received. Revenues should ultimately fall within the $3.8 - $3.9 million range. The expenditures of open projects and annual programs total $5.2 million, $2 million more than revenues. The Board has a beginning cash balance of $18 million, and an ending cash balance of almost $16 million. However, approximately $11.8 million is reserved for encumbrances. The Board has an unreserved fund balance of $4.2 million and is estimated to end the year at $4.7 million, assuming the projected sales tax receipts come in as anticipated for the remaining two months and no further encumbrances. 4. Discussion of FY 2017-18 WFEDC operating budget Mr. Dockery anticipates the Board to end FY 2016-17 at $16.5 million, so he budgeted the beginning cash balance of FY 2017-18 at the same figure. He did not budget for MagicAire, as the rd amount they pay is based upon performance. He used a ballpark figure of $100,000 for interest earnings. A sum of $3.835 million in revenues is proposed. He then briefly discussed the annual programs: • Ad valorem for the Stanley building - $40,000 • Professional fees (outside legal, professional, engineering services) - $30,000 • Three Chamber line items total $985,000: $601,716 for the Chamber personnel; $325,000 for economic development; and $59,191 for Choose Wichita Falls. Henry Florsheim told him to take the reduction out of the Choose Wichita Falls line item. • SMAC - $140,000 • Downtown Wichita Falls Development - $100,000 • Idea Wichita Falls - $30,000 • Business Park Maintenance - $112,000 • Administrative overhead for the City - $50,000 • Regional Airport debt service - $150,000 • Electricity - $400 • Stanley building - $140,000 for 12 months • ATCO - $30,000 until it is sold Revenues total $3.8 million; with $1.7 million in expenses and a surplus of $2 million the Board can consider spending throughout the year (plus any of its reserves of approximately $6.8 million). The group discussed the need to routinely unencumber funds once a project's contract has expired. Mr. Dockery said they had gone through the projects earlier this year. Mr. Lane noted it is important to have a picture of how much money the Board actually has. Mr. Dockery said the Board has $4.7 million with no contractual obligations, but the likelihood is that it will have more available due to expired projects. 4. Executive Session Mr. Bundy adjourned the meeting into executive session at 3:50 p.m. pursuant to Texas Government Code §551.087. He announced the meeting back into regular session at 5:25 p.m. The subjects posted in the Notice of Meeting were deliberated, and no votes or further action was taken on these items in executive session. 5. Discussion and possible approval of FY 2017-18 WFEDC operating budget Darron Leiker moved for approval of FY 2017-18 WFEDC operating budget as presented. Seconded by Reno Gustafson, the motion carried 5-0. 6. Adjourn The meeting adjourned at 5:26 p.m. . 0* Di k Bundy, President