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19 - PEDC 2018-2019 Budget AmendmentsItem No. 19 TO: City Council Gene Anderson, Interim City Manager FROM: Michael Paris, PEDC Executive Director SUBJECT: PEDC 2018-2019 BUDGET AMENDMENTS DATE: September 17, 2019 BACKGROUND: The Paris EDC Board has requested that the following amendments to its 2018-2019 Budget be approved by the City Council as required by the PEDC bylaws. Attached to this memo is a worksheet containing columns for the current PEDC budget, the changes requested and the amended budget amounts. These changes are necessitated by: additional Personnel expense for the end of year payroll; Debt Service to bank loans for the purchase of land for the SW Business Park and the $1,000,000.00 incentive to American SpiralWeld Pipe; New Industry Projects increased to $535,000.00 since they were not started before the beginning of the fiscal year. STATUS OF ISSUE: The PEDC Board approved the changes to the budget at the September 17, 2019 Board Meeting and requests that the City Council approve the budget changes. BUDGET: These amendments increase the total PEDC budget by $629,757.70. This increase is for Direct Business Incentives and New Industry Projects. RECOMMENDATION: Motion to approve the requested amendments to the 2018-2019 PEDC budget. 2018-2019 PEDC BUDGET BUDGET AMENDMENTS BUDGET FOR SUGGESTED Acct 11 Account Name AMENDED BUDGET 2018-2019 CHANGES PERSONNEL 0101 Salaries & Wages $ 174,900.00 $ 10,000.00 $ 184,900.00 0102 Social Security/Medicare (6.2%/1.45%) $ 13,400.00 $ 2,500.00 $ 15,900.00 0103 Retirement $ 10,800.00 $ 1,500.00 $ 12,300.00 0104 Insurance Benefits: $ 34,500.00 $ - $ 34,500.00 0105 Workers Comp. Ins. (.44%) $ 750.00 $ - $ 750.00 TOTAL PERSONNEL EXPENSES $ 234,350.00 $ 14,000.00 $ 248,350.00 ADMINISTRATION 0201 Office Supplies 4,700.00 $ (1,000.00), 3,700.00 0202 Postage 500.00 $ 500.00 0301 Telephone/Communication 5,500.00 $ 5,500.00 0302 Car Allowance 8,400.00 $ 8,400.00 0303 Insurance & Bonds 2,500.00 $ 2,500.00 0304 Moving Expenses - $ - 0306 Travel Expenses 1,000.00 $ 1,000.00 0308 (Adisio 12,000.00 $ 12,000.00 0310 Miscellaneous 500.00 $ 500.00 0311 Association Memberships 3,500.00 $ (1,000.00) 2,500.00 0314 Staff Training 1,500.00 $ 1,500.00 0348 Depot Operations 16,150.00 $ 16,150.00 0355 Contract Labor - $ - 0357 Contract Services - Legal Fees 5,000.00 $ (4,000.00) 1,000.00 0402 Industrial Park Maintenance 10,000.00 $ 10,000.00 0605 Auditing Services 8,700.00 $ 8,700.00 1002 Machinery, Tools & Equipment 129000.00 $ (8,000.00) 4,000.00 TOTAL ADMINISTRATION $ 91,950.00 $ (14,000.00) 77,950.00 MARKETING AND PROMOTION Secure Jobs/Retention/Bus.Retention & Expansion 5,000.00 $ 5,000.00 Lamar County Days 2019 10,000.00 $ 10,000.00 Marketing Airport as Industrial Site 10,000.00 $ 10,000.00 Industry Attraction Video 10,000.00 $ 10,000.00 Marketing and Promotion 90,000.00 $ - 90,000.00 0315 TOTAL MARKETING AND PROMOTION $ 125,000.00 $ - $ 125,000.00 TOTAL OPERATING EXPENSES $ 451,300.00 $ $ 451,300.00 JOB TRAINING -DIRECT INCENTIVES -DEBT SERVICE -CAPITAL INCENTIVES JOB TRAINING Can )be1Ps/KC-ACT WorkKeys 500.00 $ - 500.00 High Demand Rfl,r Traming,, &Recruiting Match Cirw 25,000.00 $ 25,000.00 0318 TOTAL JOB TRAINING $ 25,500.00 $ $ 25 500.00 DIRECT BUSINESS INCENTIVES American Spiral Weld -Upfront $ 1,500,000.00 $ $ 1,500,000.00 American Spiral Weld -Jobs S 1,000,000.00 $ - $ 1,000,000.00 Daisy Dairy S 113,150.00 $ $ 1139150.00 TOTAL DIRECT BUSINESS INCENTIVES $ 2,613,150.00 1 $ - $ 2,613 150.00 DEBT SERVICE SW BUSINESS PARK-PRIN, INT SW PARK PRINCIPAL 02-0001-90-06$ $ 29,209.74 SW PARK INTEREST 02-0002-90-061$ - $ 21,654.66 September 17, 2019 PEDC Board Approved the 2018-2019 Budget Amendments PAGE 1 2018-2019 PEDC BUDGET BUDGET AMENDMENTS September 17, 2019 PEDC Board Approved the 2018-2019 Budget Amendments PAGE 2 BUDGET FOR SUGGESTED Acct # Account Name ENDED BUDGET 2018-2019 CHANGES TOTAL PARK $ 50,864.40 $ 50,864.40 ASWP LOAN - PRIN, INT ASWP PRINCIPAL 02-0001-90-05 $ - $ 22,597.30 ASWP INTEREST 02-0002-90-05 $ - $ 21,296.00 TOTAL ASWP $ - $ 43,893.30 $ 43,893.30 TOTAL DEBT SERVICE $ $ 94,757.70 $ 94L757.70 NEW INDUSTRY PROJECTS 0064 Project American SprialWeld $ - $ 450,000.00 $ 450,000.00 0065 SW Business Park $ - $ 85,000.00 $ 85,000.00 TOTAL NEW INDUSTRY PROJECTS $ - $ 535,000.00 $ 5354000.00 TOTAL DEBT, CAPITAL & INCENTIVES $ 2,638,650.00 $ 629,757.70 $ 3,268,407.70 TOTAL BUDGET EXPENSES $ 3,089,950.00 11 $ 629,757.70 $ 3,719,707.70 September 17, 2019 PEDC Board Approved the 2018-2019 Budget Amendments PAGE 2