Loading...
10 - PEDC 2018-19 Annual BudgetItem No. 10 TO: City Council John Godwin, City Manager FROM: Michael Paris, PEDC Executive Director SUBJECT: PEDC 2018-2019 ANNUAL BUDGET DATE: August 8, 2018 BACKGROUND: The Paris EDC Board met on August 7, 2018 to discuss and approve a budget for fiscal year 2018-2019. STATUS OF ISSUE: The PEDC Board discussed and approved the attached 2018-2019 Budget on August 7, 2018, and requests that it be approved by the City Council as required by the PEDC bylaws. BUDGET: N/A RECOMMENDATION: Motion to approve the proposed 2018-2019 PEDC Budget. H1H=1KI�s� PEDC BUDGET WORKSHEET Acct # Account Name,'— BUDGET FCR 2017- 2018— BUDGET FCR 2018-`� '',2019, CHANGE CVRR NT NOTES ITEM DESCRIPTION PERSONNEL 0101 Salaries & Wages $ 171,450.00 $ 174,900.00 2% Calculated 3 employees by 26 pay periods Three full-time employees: Executive Director, Economic Development Associate, Administrative Assistant. 0102 Social Security/Medicare (6.2%/1.45%) $ 13,100.00 $ 13,400.00 2% Small increase. 0103 Retirement $ 10,800.00 $ 10,800.00 0% No Change. A bi-weekly contribution to a retirement account for the Executive Director. 0104 Insurance Benefits: $ 28,700.00 $ 34,500.00 20% Calculated for 12 months. (Not showing changes for 2019) The PEDC Board approved insurance benefits through the Texas Municipal League. Medical, Dental and Vision for the staff. 0105 Workers Comp. Ins. (.44%) $ 750.00 $ 750.00 0% Calculated Salaries by .44% Used the calculation provided. TOTAL PERSONNEL EXPENSES $ 224,800.00 $ 234,350.00 4% $ 9,550.00 ADMINISTRATION 0201 Office Supplies 4,700.00 4,700.00 0% No Change. Function 4; Petty Cash - Office Supplies; Pickle Printing & Capital One. 0202 Postage 250.00 500.00 100% Increase Stamps; FedEx. 0301 Telephone/Communication 5,500.00 5,500.00 0% No Change. SuddenLink; Executive Director's cell phone; Capital One/Data Plan. 0302 Car Allowance 8,400.00 8,400.00 0% No Change. Monthly Car Allowance for Executive Director ($700 mo). 0303 Insurance & Bonds 2,500.00 2,500.00 0% No Change. Liability Insurance on property for the PEDC (Pierson & Fendley). 0304 Moving Expenses - - 0% No Change. Held for moving expenses when an Executive Director is hired. 0306 Travel Expenses 1,000.00 1,000.00 0% No Change. Mileage reimbursement for non -marketing travel of staff. 0308 Utilities 12,000.00 12,000.00 0% No Change. City of Paris - Water; Atmos Energy; Cirro/Gexa Energy. 0310 Miscellaneous 500.00 500.00 0% No Change. Capital One; Petty Cash; King Sports. 0311 Association Memberships 3,500.00 3,500.00 0% No Change. Membership for Texas Economic Development Council (TEDC) and LC Chamber. 0314 Staff Training 1,500.00 1,500.00 0% No Change. Professional development training for staff other than Executive Director. 0348 Depot Operations 16,150.00 16,150.00 0% No Change. Expenses related to the Depot facilities: JC Darnell Computer Services; RWCS Janitorial; Forrest Signs; A-1 Bug Busters; Paris News; Advanced Alarm; E -File Cabinet; Petty Cash; Paris Fire Extinguisher; Capital One. 0355 Contract Labor - - 4DIV/0! No Contract Labor expected. No temp staff. 0357 Contract Services - Legal Fees - 5,000.00 4DIV/0! Increase Fee - Board approved ED attorney on an as needed basis. 0402 Industrial Park Maintenance 10,000.00 10,000.00 0% No Change. Expenses related to maintaining the Industrial Park and Build -to -Suit site i.e.: mowing. 0605 Auditing Services 8,300.00 8,700.00 5% Gene suggested the 3% increase. Paid each year for the PEDC portion of the overall City audit. 1002 Machinery, Tools & Equipment 18,000.00 12,000.00 1 -33% New copier before October 2018. Copier; Cell Phone. TOTAL ADMINISTRATION $ 92,300.00 $ 91,950.00 1 0% 1 $ (350.00) PAGE 1 August 7, 2018 PEDC Board Approved the 2018-2019 Budget H1H=1KI�s� PEDC BUDGET WORKSHEET Acct # Account Name,'— BUDGET VOR,2017- 2018, BUDGET FOR,2018- � � � 2019 CHANGE CLTRR NT N©TES ITEM DESCMPT ©N MARKETING AND PROMOTION Secure Jobs/Retention/Bus.Retention & Expansion 5,000.00 5,000.00 0% Was not spent. Emergency fund for hosting C -level executives of our local plants. Includes emergency travel for PEDC board members and City Council members. Lamar County Days 2019 - 10,000.00 9DIV/0! Every Two Years Expenses are directed towards tent & parking meter rental; Grounds rental/trash removal; reception fees; two night hotel for Executive Director and PEDC Board member. MarketingAirport as Industrial Site rp 10,000.00 10,000.00 0% Was not spent. Approved by the PEDC board and the Paris City Council. Plan not articulated yet with the Cox Airport advisory group. Industry Attraction Video 10,000.00 10,000.00 0% Was not spent. Approved by the PEDC board and previously approved by the Paris City Council. Working with LCCC, Downtown Development and VCC on a comprehensive theme. Marketing and Promotion 75,000.00 90,000.00 20% Extra Marketing funds needed for: video work; mail campaign; out town presentations in California and Illinois . Leverage marketing efforts by participating in Team Texas. Travel can include: XPONENTIAL; TEDC Mid -year Conference; IFT Conference & Expo; Westec; IAMC Annual Forum; Team Texas Road Show; TEDC Annual Conference, Fab Tech and other conferences. 0315 TOTAL MARKETING AND PROMOTION $ 100,000.00 $ 125,000.00 25% $ 25,000.00 TOTAL OPERATING EXPENSES $ 417,100.00 $ 451,300.00 8% $ 34,200.00 JOB TRAINING -DIRECT INCENTIVES -DEBT SERVICE -CAPITAL INCENTIVES JOB TRAINING Campbell's/KC-ACT WorkKeys 1,000.00 500.00 -50% ACT WorkKeys is offered to area high school students for application to Campbell Soup. 50,000.00 - -100% Paid before the end of Sept. 2018 Reimbursement for Results training programs. High Demand Job Training & Recruiting Match Gra - 25,000.00 9DIV/0! Paid on 3 occasions - 9/2015, 6/2017, 9/2017 TWC matching grant (50/50) for training equipment (CNC machine) bought for PJC. 0318 TOTAL JOB TRAINING $ 51,000.00 $ 25,500.00 -50% DIRECT BUSINESS INCENTIVES American Spiral Weld -Upfront $ - $ 1,500,000.00 9DIV/0! In anticipation of new business. Payable 14 days after construction begins. PEDC $500,000.00 and $1,000,000.00 from Local Banks loan to PEDC. American Spiral Weld -Jobs (See Footnote 91) $ - $ 1,000,000.00 9DIV/0! In anticipation of new business. $25,000 per job payable on jobs over 60. J. Skinner $ - $ 400,000.00 9DIV/0! Incentive agreement. Incentive agreement, if completed, is payable after September 30, 2018. 0044 Pa-fis Lakes $ 250,000.00 $ - -100% Did not complete incentive agreement Taken back out of Direct Business Incentives. 0047 $ 25,000.00 $ - o -100% Incentive completed Bodyguard hired and employed a total of twenty-five FT persons, exceeding their goal of fifteen persons. 0053 fs liAti.tfies $ 8,000.00 $ - -100% Incentive completed Last payment towards current incentives. Compliance good. $ - 9DIV/0! Promissory note was paid in 2017-2018 year. Plum Line. Daisy Dairy $ 94,900.00 $ 113,150.00 19% Did not complete incentive to receive the 2017-18 payment. Portion allotted according to their incentive agreement. TOTAL DIRECT BUSINESS INCENTIVES $ 377,900.00 $ 3,013,150.00 697% PAGE 2 August 7, 2018 PEDC Board Approved the 2018-2019 Budget 2018-2019 PEDC BUDGET WORKSHEET TOTAL DEBT, CAPITAL & INCENTIVES DEBT SERVICE 784,576.00 $ 3,256,951.00 315% $ 354,926.00 $ - -100% Bond completed 2017-2018 Last year towards the bond payment for Paris Packaging. 750.00 - -100% Bond completed 2017-2018 Bond fees. ASWP Local Banks Loan $ - $ 218,301.00 9DIV/0! Yearly pay back on the Local Banks Loan Total Loan Amount = $1,000,000.00. Terms: 5 -year loan at 3.5% interest. Payment is $218,301.00 per year. 3,708,251.00 TOTAL DEBT SERVICE $ 355,676.00 $ 218,301.00 -39% CAPITAL EXPENSES 0057 2305 NW Loop 286 $ - $ - 9DIV/0! New Project I $ - $ - 9DIV/0! TOTAL CAPITAL EXPENSES 1 $ - $ - 4DIV/0! TOTAL DEBT, CAPITAL & INCENTIVES $ 784,576.00 $ 3,256,951.00 315% TOTAL BUDGET EXPENSES $ 1,201,676.00 $ 3,708,251.00 209% LOCAL BANK LOAN (See Footnote #2) 1 1,000,000.00 ESTIMATED TAX INCOME 1,416,000.00 1 1,440,000.00 12% Notes on Estimated Sales Tax Estimated Tax Income $1,420,000 divided by 12 FY 2018 $ 118,333.33 2017-2018 Sales Tax of $727,177 divided by 6 months giving estimate FY 2018-2019 $ 121,196.17 FY 2017-2018 Estimated at $120,000 average monthly $ 1,440,000.00 FOOTNOTES: 41 - May not be achieved by ASWP or paid in the 2018-2019 fiscal year. Shown are the obligation for incentives. 42 - If ASWP chooses Paris, shown as loan income in reference to the $1,000,000.00 from bankers as incentive. PAGE 3 August 7, 2018 PEDC Board Approved the 2018-2019 Budget