12 - PEDC Budget for FY 2022-2023Item No. 12
1V�emorandum
TO: Mayor & City Council
Grayson Path, City Manager
FROM: PEDC Board/Maureen Hammond, Executive Director
SUBJECT: PEDC's Approved Budget for FY 2022-2023
DATE: July 25, 2022
OK"WORMW
Pursuant to Section 8.03 of the PEDC Bylaws, a proposed budget for the 2022-2023 fiscal year
was brought before the PEDC Board for approval during their July 19, 2022 meeting. The Board
has approved the proposed budget, and per Section 8.03, we are submitting the budget to the City
Manager for inclusion in his annual budget to be presented to the City Council in accordance with
the Charter of the City of Paris before the August 1 deadline.
STATUS OF ISSUE:
Budget approved by Paris EDC Board on July 19, 2022.
BUDGET:
See attached for the Paris EDC's Proposed Budget for FY 2022-2023, as well an excerpt from the
PEDC Bylaws containing Section 8.03 for reference.
RECOMMENDATION:
Accept the budget for inclusion in the City Manager's annual budget to be presented to the City
Council.
Section 8. 01 Financial and Accounting Services.
The Corporation shall contract with the City of Paris for financial, accounting and auditing
services. The Corporation's financial and accounting records shall be maintained in accordance
with these Bylaws, State and Federal laws, and the accounting practices of the City of Paris.
Section 8.02 Fiscal Year.
The fiscal year of the Corporation shall begin on October 1, and end on September 30, of
the following year.
Section 8.03 Budget.
A budget for the forthcoming fiscal year shall be submitted to and approved by the Board
in July and delivered to the City on or before August 1. In submitting the budget to the City, the
Board shall submit the budget on forms prescribed by the City Manager and in accordance with
the annual budget preparation schedule as set forth by the City Manager. The budget shall be
submitted to the City Manager for inclusion in his annual budget to be presented to the City
Council in accordance with the Charter of the City of Paris. The budget proposed for adoption
shall include the projected operating expenses, and such other budgetary information as shall be
useful to or appropriate for the Board and the City.
Section 8.04 Contracts.
A As provided in 'Section V1 above, the Chairman, whose signature shall be attested
by tine Secretary Treasurer, shall execute any contrast or other instruments which
the Board by resolluution has approved and authorized to lac executed, provided
however, that: the Board may, by appropriate resolution, authorize any other officer
or officers to enter mato contracts or, execute and deliver instruments in the name of
and on behalf of the Corporation, in all such cases the signature shall be attested
lby the Secretary Treasurer. Such au.nthority may be confined to specific instances
or defined in general terms. When appropriate, the, Board Inay grant to a Director
of the t::;orluoration a specific or general 1power of attorney to carry out action on
behalf of the Board, provided, however, that no such power of attorney may be
granted unless an appropriate resolution of the Ill:loard authorizes the sat.ne.
B.. The Ca:arl)oration may., with approval of the City, contract: with any ulu.ualiiied rand
appropriate person, association, Corporation or governrnental entity to llaerf'turrn. and
discharge designated tasks which. will aid or assist: the, Board in the performance of
its duties; however., no such contract shall ever- be approved or entered into which
seeks or attempts to divest the l:loard of its decision making and policy-making
functions in. discharging its duties in accordance with these Bylaws.
BYLAWS -PARIS ECONOMIC DEVELOPMENT CORPORATION
Updated and Approved by the City Council on 7-11-2022
PEDC BUDGET 2022- 2023
CASH AND INVESTMENTS
Balance 5/2021
Balance 6/2022
% Change
Cash and Cash Equivalents
1,860,702.00
2,972,189.00
60%
Investments
2,113,864.00
2,119,728.00
0%
TOTAL CASH AND INVESTMENTS
3,974,566.00
5,091,917.00
28%
(
BUDGET FOR
BUDGET FOR
Acct #
Account Name
%CHANGE
2021-2022
2022-2023
REVENUE
ESTIMATED SALES TAX INCOME _J�1,700,000.00
1,700,000.00
0%
ESTIMATED INCOME
1,700,000.00
1,700,000.00
0%
EXPENSES
PERSONNEL
0101
Salaries& Wages
$
194,500.00 $
220,000.00
13%
0102
Social Security/Medicare (6.2916/1.459/)
$
15,000.00
$
16,800.00
12%
0103
Retirement
$
15,000.00
$
22,000.00
47%
0104
Insurance Benefits:
$
35,000.00
$
40,000.00
14%
0105
Workers ComE. Ins. (.44%)
$
800.00
$
950.00
19%
TOTAL PERSONNEL EXPENSES
$
260,300.00
$
299,750.00
15%
ADMINISTRATION
0201
Office Supplies
4,700.00
5,000.00
6%
0202
Postage
500.00
500.00
0%
0203
Meetings
3,000.00
3,000.00
0%
0301
Telephone/Communication
10,000.00
10,000.00
0%
0302
Car Allowance
8,400.00
8,400.00
0%
0303
Insurance & Bonds
2,500.00
2,750.00
10%
0304
Moving Expenses-
-
-
0306
Mileage Reimbursement
1,000.00
1,000.00
0%
0308
Utilities
12,000.00
12,000.00
0%
0310
Miscellaneous
500.00
500.00
0%
0311
Association Membershi s
3,500.00
3,500.00
0%
0314
Staff Trainin
1,500.00
1,500.00
0%
0348
Depot Operations
16,150.00
16,150.00
0%
0355
Contract Labor
-
-
-
0357
Contract Services - Legal Fees
25,000.00
25,000.00
0%
0402
Industrial Park Maintenance
10,000.00
-100%
0605
AuditinE and Com °)ilation Services
10,000.00
11,500.00
15%
1002
Machinery, Tools & Equipment
15,000.00
10,000.00
-33%
TOTAL ADMINISTRATION
$
123,750.00
$
110,800.00
-10%
June 2022 PEDC Board PROPOSED 2022-2023 Budget
Page 1
DC BUDGET 222- 202
Acct # Account Name
MARKETING AND PROMOTION
Secure Jobs/Retention/Bus. Retention & Ex ansion
Lamar County Days 2023
Marketing Videos
BUDGET FOR
2021-2022
10,000.00
-
-
BUDGET FOR
2022-2023
10,000.00
10,000.00
I -
%CHANGE
0%
100%
-
Marketing - Rebrand and Website
20,000.00
35,000.00
75%
Marketing and Promotion
100,000.00
75,000.00
-25%
0315 TOTAL MARKETING AND PROMOTION
$
130,000.00
$
130,000.00
0%
TOTAL OPERATING EXPENSES$
514,050.00
$
540,550.00
5%
JOB TRAINING -DIRECT INCENTIVES -DEBT SERVICE -CAPITAL INCENTIVES
JOB TRAINING
High Demand Job Training & Recruitin Match Grant
25,000.00
50,000.00
100%
0318 TOTAL JOB TRAINING
$
25,000.00
$
50,000.00
100%
DIRECT BUSINESS INCENTIVES
American Spiral Weld -Jobs
$
1,000,000.00
$
1,000,000.00
0%
Huhtamaki - Rail Develo ment
$
102,000.00
-100%
Project Rocket X - Infrastructure
$
-
$
250,000.00
100%
Project Rocket X - Jobs - Due in 2024
$
-
-
Metro Gate and Manufacturing
$
120,000.00
$
69,000.00
-43%
Blossom Aerospace
$
-
$
100,000.00
100%
Attraction/Recruitment Pro'ects
$
500,000.00
$
100,000.00
-80%
TOTAL DIRECT BUSINESS INCENTIVES
$
1,722,000.00
$
1,519,000.00
I
-12%
June 2022 PEDC Board PROPOSED 2022-2023 Budget
Page 2
June 2022 PEDC Board PROPOSED 2022-2023 Budget
Page 3
PED.0 U ,, E 1 .0
2- 2023
BUDGET FOR
BUDGET FOR
Acct #
Account Name
%CHANGE
2021-2022
2022-2023
DEBT SERVICE
SW BUSINESS PARK - PRINCIPAL AND INTEREST
ORIGINAL NOTE - $697,000.00
SW PARK PRINCIPAL 02-0001-90-061
$
48,053.08
$
-
-100%
SW PARK INTEREST 02-0002-90-06
$
12,984.20
$
-
-100%
TOTAL PARK
$
61,037.28
$
-
-100%
ASWP LOAN - PRINCIPAL AND INTEREST
ORIGINAL NOTE - $1,000,000.00
ASWP PRINCIPAL 02-0001-90-05
$
55,584.63
$
-
-100%
ASWP INTEREST 02-0002-90-05
32,201.97
-
-100%
TOTAL ASWP
$
87,786.60
$
-
-100%
LOAN WITH CITY - PRINCIPAL AND INTEREST
2022 PROJECTED $1.9M - 2023 ORIGINAL NOTE -$2.5M
Principal
$
120,000.00
$
145,198.52
Interest
$
49,794.12
TOTAL
$
120,000.00
$
194,992.64
62%
TOTAL DEBT SERVICE
$
268,823.88
$
194,992.64
-27%
NEW INDUSTRY PROJECTS
0065
SW Business Park Maintenance
$
20,000.00
$
20,000.00
0%
NW Business Park Maintenance
$
15,000.00
100%
Land Development
$
100,000.00
$
100,000.00
0%
TOTAL NEW INDUSTRY PROJECTS
$
120,000.00
$
135,000.00
139/o
TOTAL DEBT, CAPITAL & INCENTIVES
$
2,135,823.88
$
1,898,992.64
-11%
TOTAL BUDGET EXPENSES
$
2,649,873.88
$
2,439,542.64
INCOME
ESTIMATED TAX INCOME
1,700,000.00
1,700,000.00
0%
ESTIMATED INCOME
1,700,000.00
1,700,000.00
0%
ESTIMATED SURPLUS (SHORTAGE)
(949,873.88)
(739,542.64)
-22%
CA11 SH AND INVESTMENTS ENDING BALANCE
=$3,024,692.12=$
4,352,374.36
44%
June 2022 PEDC Board PROPOSED 2022-2023 Budget
Page 3