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HomeMy WebLinkAboutRES 082322-AG - 2023 GEDCO BudgetRESOLUTION NO. CW Z� A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, ACCEPTING THE PROPOSED 2023 BUDGET FOR THE GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION (GEDCO). WHEREAS, the City is required by State Law, the Bylaws of the Georgetown Economic Development Corporation (GEDCO), previously established pursuant to Vernon's Rev. Civ. Stat. Ann., Article 5190.6 Section 4(A) to approve an annual budget; and WHEREAS, the appropriations were approved by the GEDCO Type A Board on July 18 2022; and WHEREAS, the budget is for the fiscal year beginning October 1, 2022 and ending September 30, 2023; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, THAT: SECTION 1. The facts and recitations contained in the preamble of this resolution are hereby found and declared to be true and correct, and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. SECTION 2. The City Council of the City of Georgetown hereby accepts the proposed 2021 budget of the Georgetown Economic Development Corporation (GEDCO) for the twelve month period beginning October 1, 2022 and ending September 30, 2023 in accordance with State Law and the GEDCO Bylaws. RESOLVED this 23rd day of August, 2022. ATTEST: ore By: City Secretary�� APPROVED AS TO FORM: Skye Wassok City Attorney Resolution No. _C L 3 2 Description: 2023 GEDCO Budget Res, ution Date Approved: August 23, 2022 Page 1 of 1 GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION FUND The Georgetown Economic Development Corporation (GEDCO) considers requests and also grants economic development funds as authorized and defined by the Internal Revenue Code of 1986, Section 4A, leading to the creation or retention of primary jobs and/or provision of significant capital investment which benefits the community of Georgetown. The funding source is 1/8th cent of the City's sales tax rate. FISCAL YEAR 2022 Total revenues are projected to be $3.2 million, which is a 14% percent increase over budget. This increase is due to strong sales tax collections. Total expenses are projected to be $6.9 million, which is more than the budgeted amount of $2 million. This is largely due to the timing of economic development incentive payments and the fund will be amended at year-end. Several approved agreements have met their performance targets to receive reimbursement: Champion Site Prep, Motion Commercial, Sedro Crossing, NorthPark35, and WBW Development. Additional payments are anticipated for Atmos, CelLink, Texas Outdoor Power, and Texas Speed. Total fund balance as of September 3011, 2022 is projected to be $2.7 million with a sales tax contingency reserve of $665 thousand and a reserve for debt service of $204 thousand. FISCAL YEAR 2023 Budgeted revenues are expected to total $3.5 million. Sales tax is projected to increase 8% over 2022 projections. Budgeted expenses total $4.6 million. This includes the cost of all currently anticipated Economic Development projects for CelLink, Loram, Texas Outdoor Power, Texas Speed and WBW. The budget includes $100 thousand for the startup of a small business loan program. GEDCO's share of Joint Services and General Fund Allocations total $584 thousand. A cost allocation study was completed which results in a slight decrease of GEDCO's allocation to the General Fund, and a large increase to GEDCO's allocation to the Joint Services Fund. These increases are a result of the data sets used to allocate Economic Development department, Finance departments, City Manager's Office, and other support services. The annual debt service payment for the Sheraton Garage in the Rivery TIRZ is $204 thousand. They repayment of a loan from the Water Fund is $90 thousand. Total fund balance is projected to be $1.5 million as of September 301h. This meets the contingency requirement of reserving 25% of budgeted sales tax revenue, as well as the debt service reserve requirement. FUND SCHEDULE • • FY2021 FY2022 FY2023 Actuals Amended Budget Projected Proposed Base Bud et Changes Bud et Beginning Fund Balance 5,740,067 992,725 6,416,281 2,702 438 - 902 438 40002:Sales Taxes 2,654,706 42001:lnterest Income 24,863 Operating Revenue Total 2,679,569 1perating Expense Operations 406,571 Transfers 1,200,284 Operating Expense Total 1,606,855 Available Operating Fund Balance 6,812.781 45001:Misc Revenue Non -Operating Revenue Total 2,781,251 3,163,51q 3,416,599 - 3,416,599 25,000 25,0001 30,000 - 30,000 2,806,251 3,188,518 3,446,599 - 3,446,599 682,104 546,1541 804,310 - 804,310 202,769 202,7691 204,019 - 204,019 884,873 748,923 1,006,329 - 1,008,329 2.914,103 8,855,87 5,140,708 - 5,140,708 2,610 Operations 396,500 1,076,000 6,064,0001 3,528,500 - 3,528,500 Debt Service 90,572 92.048 92,0481 91626 - 91,626 Non -Operating Expense 487,072 1,168,048 6,156,048 3,620,126 - 3,620,126 - 1,520,582 Ending Fund Balance 6,32S 709 1,746,05S 2,702A3 1,520 582 AFR Adjustment 90,572 - - - - Contingency 505,468 665,371 665,371 878,044 - 878,044 Debt Service Reserve 202,769 204,019 204,019 205,519 - 205,519 Reserves Total 708,237 869,390 869,390 1,083,563 - 1,083,563 Available Fund Balance 5,708,0441 876,665 1,833,0 437,019 - 437,01 o0 00 a ; F tin000 $la ...0oo . a ao 0 0 o II o o$ a g m o 0 o a m o �o �o �N • j m N N O O M m m v 3' o 0 3F �° o g l e o n N M o r o ao 0 m m 0 a o m 0 om `n° m o r o n a 0 0 0 0 0 o v � o o voi o o a a g vrvi o � .on N 1G 0 o 0 0 0 o g 0 0 0 0 0 0 �O O O N O O ••I R N T N O� IN M 01 n m m 0- O o v, w 0 0 m 0 0 N n n m o ro o N 0 01 N O M M 00 O ti O _ O N .i V ED N W N N I I AM T 0 m n w m m ry m N a0 �D O 00 �D Ifl M e° 0