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PEDC Board Meeting Minutes
<br />Tuesday; July 19, 2022
<br />Page 4 of 5
<br />• Project Rocket X
<br />• Project Red Oak
<br />2) Pursuant to Section 551.072 of the Texas Government Code to discuss and deliberate the purchase, exchange,
<br />lease, or value of real property.
<br />3) Pursuant to Section 551.074 of the Texas Government Code: 1) to deliberate the appointment, employment,
<br />evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee: or 2) to hear a
<br />complaint to charge against an officer or employee. Personnel.
<br />Chairman Bray convened the Board into Executive Session at 5:54 p.m.
<br />Reconvene into Open Session and Consider Action on Items Discussed in Executive Session
<br />Chairman Bray reconvened the Board into Open Session at 5:43 p.m. No action was taken on the items discussed.
<br />Discuss and Consider Approval of the 2022-2023 PEDC Budget
<br />Mr. Coleman began discussion over the proposed 2022-2023 PEDC Budget. Mr. Coleman stated that the
<br />estimated income for the 2022-2023 fiscal year would be $1.7 million. He mentioned that this was the same as
<br />last year's projection and explained that while it is likely that the income this year will likely be higher, with the
<br />current economic climate presenting a possible recession it was decided that a conservative approach would be
<br />best.
<br />Personnel expenses were increased to $299,750 from $260,300. Total administration expenses were reduced
<br />from $123,750 to $110,800, partially due to moving line items for industrial park maintenance to another
<br />category. Marketing expenses were kept the same at $130,000, making the total operating expenses $540,550,
<br />a slight increase from the $514,050 from the prior year. Next on the budget, total job training was raised from
<br />$25,000 to $50,000. Chairman Bray asked Mr. Coleman to explain the change, and Mr. Coleman stated that the
<br />Workforce Development Board requested the increase, and as other regional EDCs increased this item in their
<br />budgets, we have raised ours respectively.
<br />Mr. Coleman continued by discussing the total direct business incentives, which was reduced from $1,722,000
<br />from last year to $1,519,000. Most of that total is reserved for American SpiralWeld, which is anticipated to
<br />qualify for a $1 million incentive payment in the coming fiscal year. Other projects are also included, with an
<br />additional $100,000 set aside for a potential new small project. Total debt service was set at $194,992.64, and
<br />new industry projects was set at $135,000.
<br />Mr. Coleman concluded by stating that our total budget expenses have been set at $2,439,542.64 against a
<br />revenue of $1,700,000. This will create an estimated shortage of $739,542. Mr. Coleman reiterated that $1
<br />million is going towards the incentive payment for American, and while the budget shows a shortage, we've
<br />actually done quite well. Ms. Hammond added that our total budget expenses appeared to be down and was
<br />asked when the American item would come off. She said that it should come off in the fall and would be the last
<br />incentive payment to the company. Other projects, such as Blossom Aerospace and Metro Gate would be
<br />coming off in the next few years, and even with projects such as Rocket X, we are expected to start building cash
<br />again, which will be free to invest in other projects.
<br />Chairman Bray opened the floor to additional questions, and seeing none, thanked Ms. Hammond and Mr.
<br />Coleman for their work on the budget.
<br />Mr. Fendley made the motion to approve the proposed 2022-2023 PEDC Budget. Mr. Roddy seconded the
<br />motion.
<br />Vote: 7 -ayes to 0 -nays.
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