06.10.13 MINUTES - Laserfiche WebLink

Home Browse Search

Regular Council Meeting June 10, 2013 Page 3 placed on the agenda for action that it include not only the associated costs, but the long range plans for the building. 11. Discuss and act on RESOLUTION NO. 2013 -020: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING THE AMENDMENTS TO THE FY 2012 -2013 BUDGET OF THE PARIS ECONOMIC DEVELOPMENT CORPORATION (PEDC) AS REFLECTED IN THE AMENDED PEDC BUDGET FOR FY 2012 -13; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. PEDC Executive Director Steve Gilbert reviewed budget amendments with the City Council. Mr. Gilbert said $331,338 would be reduced from the current budget and that savings would go back into PEDC's reserves. He also said there were several items that were increases to the line item budget. Mr. Gilbert explained that $74,000 was incentive payments, because the projects were not announced when the budget was approved. He said $67,500 was for year one of the Skinner Bakery, $5,500 for T &K Machine and $1,000 for a project that had not been announced yet. Mr. Gilbert said there was a rail spur liability insurance policy of $4,700 for the rail spur that runs from 19`x' N.W. Street over to the Superior Switch Building. He further said that the Paris Industrial Foundation had deeded that spur to the PEDC. Mr. Gilbert told the Council that $28,980 was a one -time vacation buy out, merit pay increase for the staff and long term disability. He said those items were approved by the board in January when they implemented a vacation policy requiring staff to use or lose vacation. In summary, Mr. Gilbert said $223,708 would go back into reserves for the current fiscal year after increases and decreases in the budget. Mr. Gilbert explained that one other change pertained to the bridge loan to Skinner of $2,000,000 and that interest expenses on that line of credit had been budgeted in the amount of $21,000. He said that the City Finance Department billed Skinner on a monthly basis for the revolving loan fund payments. Mr. Gilbert said PEDC was making net revenue of about $3,000 per month in interest payments on the revolving loan. Council Member Wright inquired how the personnel issues compared to the City's. Mr. Anderson said if the City changed the policy, they would probably do the same type of thing and in fact did something similar in 2004. A Motion to approve this item was made by Council Member Frierson and seconded by Council Member Drake. Motion carried, 7 ayes — 0 nays. 12. Receive presentation, discuss and act on the Love Civic Center and VC &C budgets for the fiscal year 2013 -2014. Chamber Director Melissa Cook presented the VC &C budget to Council stating that the projected income was $509,100.04 and projected expenses were $489,356.36 resulting in projected net revenue of $19,743.68. Ms. Cook said the VC &C was funded with the hotel /motel tax and VC &C brought in tourist events, such as the Archery Tournament and the Tour de Paris. Mayor Hashmi confirmed that the City retained 5% of the hotel /motel tax. Ms. Cook said that out of the tax, 3/7 went to the Love Civic Center to subsidize them and that their total income was projected to be $271,690.00 and their expenses were projected to be $222,772.52 resulting