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HomeMy WebLinkAboutAgenda_GEDCO_03.20.2017Notice of Meeting for the Georgetown Economic Dev elopment Corporation and the Gov erning Body of the City of Georgetown March 20, 2017 at 4:00 PM at the City Council Chambers, located at 101 E. 7th Street, Georgetown, TX 78626 The City o f G eo rgeto wn is committed to comp lianc e with the Americans with Dis abilities Ac t (ADA). If yo u req uire as s is tanc e in participating at a p ublic meeting d ue to a disability, as d efined und er the ADA, reas onab le as s is tance, ad ap tatio ns , or acc o mmo d ations will b e provid ed up o n req uest. P leas e c o ntact the City Sec retary's Office, at leas t three (3) days prior to the sc hed uled meeting d ate, at (512) 930-3652 o r City Hall at 113 Eas t 8th Street fo r add itional info rmation; TTY us ers ro ute through Relay Texas at 711. Regular Session (This Regular S es s io n may, at any time, b e rec es s ed to convene an Exec utive S es s io n fo r any p urpose authorized b y the Op en Meetings Act, Texas Go vernment Co d e 551.) A Co nsideration and approval of the minutes fo r Georgetown Ec o nomic Develo p ment Co rp o ration for the Regular Meeting held Mo nday, January 23, 2016--Kevin Kelly, Sec retary B Co nsideration of the January 31, 2017 and February 28, 2017 financ ial rep o rts and d is cus s io n regarding the Fisc al Year 2016 external audit and Comprehensive Annual Financial R ep o rt fo r the City and GEDC O- -Leigh Wallac e, F inance Manager, GEDCO, F inance Direc tor, COG C Co nsideration and possible actio n regard ing GEDCO and City Co uncil partic ipatio n in a F eas ib ility Study regard ing the need for a Ho s p ice Fac ility in Geo rgeto wn - Steve Fought, GEDCO Bo ard member D Co nsideration and possible actio n to approve a recommend ation from s taff regard ing a cons ultant to c o nduct a Target Ind ustry and Wo rkforc e Analys is for Geo rgeto wn - Mic haela Dollar E Review and p o s s ib le ac tion related to the Day and Time o f the GEDCO Board Meetings--David Mo rgan, General Manager F Co nfirmation and approval of the Fo urth Amend ed Bylaws fo r GEDCO ap p ro ved b y the City Co uncil on December 8, 2015 and the Artic les of Amend ment for GEDCO ap p ro ved by the City Counc il on December 8, 2015 related to Board Members hip --David Mo rgan, General Manager G Review and d is cus s io n regarding the City Counc il Attend anc e Po licy fo r Board Memb ers --David Morgan, General Manager H Consideration and possible action to nominate and elect a P resident, Vice-P resident, and Secretary consistent with Section 3.02 of the GEDCO Bylaws— David Morgan, General Manager I Actio n o ut o f Exec utive Session. J Dis cus s ion and pos s ible actio n regarding the Staff Rep o rt —David Morgan, C ity Manager -P erformance Agreement Report -Rep o rt from Planning -Other Pro jec ts Executiv e Session In compliance with the Op en Meetings Act, C hapter 551, Go vernment Code, Vernon's Texas Codes, Page 1 of 51 Annotated, the items lis ted below will be d is c us s ed in closed s es s io n and are s ubjec t to actio n in the regular s es s io n. K Sec. 551.071: CONSULTATION WITH ATTORNEY Co nsultation with attorney regarding legal is s ues related to agenda items and other matters in whic h (1) when the go vernmental body seeks the advic e o f its attorney ab o ut: (A) p ending o r c o ntemp lated litigatio n; o r (B) a s ettlement o ffer; o r (2) o n a matter in which the d uty of the attorney to the go vernmental body under the Texas Dis ciplinary Rules o f P ro fes s io nal Cond uc t o f the S tate Bar o f Texas clearly c o nflic ts with this chap ter - Charlie McNabb, C ity Attorney L Section 551.072. DELIBERATIONREGARDING REAL PROPERTY Dis cus s ion and pos s ible actio n to d elib erate the p urc hase,exc hange, leas e or value of real property for purp o s es authorized b y the Development C o rp o ration Ac t which disc us s io n in o p en s es s io n would have adetrimental effect on negotiations with third pers ons . M Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS. Delib eratio n regarding commerc ial or financ ial info rmation that the corp o ration has rec eived fro m a bus iness pros pec t that the Georgetown Ec ono mic Develo p ment Co rp oratio n s eeks to have loc ate, stay, or exp and in or near the territory of the City o f Georgetown and with whic h the C o rp o ration is cond uc ting ec o nomic d evelopment nego tiatio ns; and/o r deliberatio n regarding the o ffer of a financ ial or o ther incentive to a bus iness p ro s p ect that the C o rp o ration seeks to have lo cate, s tay, o r exp and in o r near the territory o f the City o f Georgetown. CERTIFICATE OF POSTING I, Shelley No wling, C ity S ecretary fo r the C ity of Geo rgeto wn, Texas , d o hereby c ertify that this Notice of Meeting was p o s ted at City Hall, 113 E. 8th Street, a p lace read ily acc es s ible to the general p ublic at all times , on the ______ d ay o f __________________, 2017, at __________, and remained so p o s ted fo r at leas t 72 c o ntinuo us ho urs p receding the sc heduled time o f s aid meeting. ____________________________________ S helley No wling, City Sec retary Page 2 of 51 City of Georgetown, Texas Georgetown Economic Development Corporation March 20, 2017 SUBJECT: Cons id eration and ap p ro val o f the minutes for Geo rgeto wn Econo mic Development Corporatio n fo r the Regular Meeting held Mond ay, January 23, 2016--Kevin Kelly, S ecretary ITEM SUMMARY: ATTACHMENTS: 1. Draft Minutes for the Regular Meeting held Mo nday, January 23, 2016 FINANCIAL IMPACT: None SUBMITTED BY: Kevin Kelly, Corporate S ecretary ATTACHMENTS: Description Type minutes Cover Memo Page 3 of 51 GEDCO Minutes January 23, 2017 Page 1 of 2 Minutes of the Meeting of the Georgetown Economic Development Corporation and the Governing Body of the City of Georgetown, Texas January 23, 2017 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday, January 23,2017. Members Present: Jeff Parker, Hugh Brown, Steve Fought, Kevin Kelly, Rachael Jonrowe, Bill Mateja Members Absent: Steve Klein Staff Present: David Morgan, City Manager/General Manager; Wayne Reed, Assistant City Manager; Michaela Dollar, Director of Economic Development; Conchita Gusman, Economic Development Program Manager; Leah Wallace, Finance Director/Finance Manager; Laurie Brewer, Assistant City Manager; Debbie Mitchell, Senior Accountant; Tina Dunbar, Administrative Assistant MINUTES Call to Order at 4:00 pm Legislative Regular Session A Consideration and approval of the minutes for Georgetown Economic Development Corporation for the Special Meeting held Friday, November 4, and the regular meeting held Monday, November 21, 2016-- Kevin Kelly, Secretary Motion by Fought, second by Parker to approve the November 4 and November 21, 2016 Minutes. (Approved 6-0) B Consideration of the November and December, 2016 Financial Reports--Leigh Wallace, Finance Manager, GEDCO, Finance Director, COG. Wallace presented the reports and answered questions from the board. C Discussion and possible action regarding the Staff Report —David Morgan, City Manager -Performance Agreement Report -Report from Planning -Other Projects Morgan and Dollar provided an update on the Retail Study and the Holt project press release. Gusman presented the Performance Agreement summary sheet and highlighted the GISD engineering program. D. Discussion and possible action regarding a Target Industry Analysis—Michaela Dollar, Economic Development Director Page 4 of 51 GEDCO Minutes January 23, 2017 Page 2 of 2 Dollar explained the scope of a Target Industry Analysis and how Georgetown could benefit. Following discussion, GEDCO members expressed approval for staff to release an RFP to find a consultant and discover costs of the analysis. E Action out of Executive Session. No executive session. Adjourn at 4:56 pm ATTEST: ______________________________ ___________________________________ Kevin Kelly, Corporate Secretary Hugh Brown, President Page 5 of 51 City of Georgetown, Texas Georgetown Economic Development Corporation March 20, 2017 SUBJECT: Cons id eration o f the January 31, 2017 and F eb ruary 28, 2017 financial reports and disc ussion regard ing the Fisc al Year 2016 external audit and Co mp rehens ive Annual F inancial Report fo r the City and GEDCO-- Leigh Wallace, Financ e Manager, GEDCO, Financ e Directo r, COG ITEM SUMMARY: See Attachments FINANCIAL IMPACT: None SUBMITTED BY: Leigh Wallace, Financ e Manager, GEDCO F inanc e Direc tor, COG ATTACHMENTS: Description Type report Cover Memo Page 6 of 51 GEDCO Board Meeting Date: March 20, 2017 Item No. __________ GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM COVER SHEET _________________________________________________________________ SUBJECT: Consideration of the January 31, 2017 and February 28, 2017 financial reports and discussion regarding the Fiscal Year 2016 external audit and Comprehensive Annual Financial Report for the City and GEDCO. Leigh Wallace, Finance Manager, GEDCO, Finance Director, COG. _________________________________________________________________ ITEM SUMMARY: The corporate bylaws require the Finance Manager to present the monthly financial reports to the Board. Included in these reports will be: • Financial reports • Sales Tax revenues • Monthly expenditures • Any other relevant financial information Sales tax revenue is two months in arrears. Included in this report is the sales tax revenue collected in January and February for sales in November and December. There were no payments made to vendors in the month of January. A report of payments made to vendors in the month of February is included. The Fiscal Year 2016 external audit was completed by Weaver & Tidwell. GEDCO is considered a “Discretely Presented Component Unit” of the City and is included in the audit. Staff will discuss the results of the audit and present the financial statements for GEDCO. ATTACHMENTS: Monthly Financial Reports Sales Tax History Disbursement Report Auditor’s Letter Statement of Net Position Balance Sheet Governmental Funds GEDCO Budget Based Fund Schedule SUBMITTED BY: Leigh Wallace Finance Manager, GEDCO Finance Director, COG Page 7 of 51 YEAR-END YEAR-END APPROVED JANUARY-17 YEAR TO DATE YEAR-END VARIANCE % VARIANCE BUDGET W/ENCUMB W/ENCUMB PROJECTION FAV(UNFAV)FAV(UNFAV) BEGINNING BALANCE 5,015,684 5,015,684 0 NA OPERATING REVENUES Sales Tax 1,468,750 120,346 244,113 1,468,750 0 NA Interest 10,400 1,641 9,593 10,400 0 NA Miscellaneous Revenue 60,321 0 10,302 60,321 0 NA Lease Revenue (Grape Creek)48,000 4,000 16,000 48,000 0 NA Total Operating Revenues 1,587,471 125,987 280,008 1,587,471 0 NA OPERATING EXPENDITURES Debt Service 115,839 0 0 115,839 0 NA Principal Reduction 100,000 0 0 100,000 0 NA Interest Expense 111,463 0 0 111,463 0 NA Bond Issuance Costs 0 0 (114)0 0 NA Joint Services Allocation 197,722 16,477 65,908 197,722 0 NA Supplies 300 0 140 300 0 NA Special Services 7,500 0 33 7,500 0 NA Travel & Training 1,500 0 0 1,500 0 NA Promotional & Marketing Program 81,000 19,700 35,551 81,000 0 NA Miscellaneous Expense 10,321 0 10,302 10,321 0 NA Total Operating Expenditures 625,645 36,177 111,820 625,645 0 NA TOTAL NET OPERATIONS 961,826 89,810 168,188 961,826 0 NA NON-OPERATING EXPENDITURES Catalyst 24,000 0 0 24,000 0 NA DisperSol 60,000 0 0 60,000 0 NA Economic Development Projects -Undetermined 5,370,322 0 0 5,370,322 0 NA Radix 50,000 0 0 50,000 0 NA Tasus 6,000 0 0 6,000 0 NA Texas Life Sciences 100,000 0 0 100,000 0 NA Total Non-Operating Expenditures 5,610,322 0 0 5,610,322 0 NA TOTAL NET NON-OPERATIONS (5,610,322)0 0 (5,610,322)0 NA EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (4,648,496)89,810 168,188 (4,648,496)0 NA ENDING BALANCE 367,188 367,188 0 NA RESERVED ENDING BALANCE 367,188 367,188 Georgetown Economic Development Corporation Fund Year End Projection to Approved as of January 2017 Page 8 of 51 YEAR-END YEAR-END APPROVED FEBRUARY-17 YEAR TO DATE YEAR-END VARIANCE % VARIANCE BUDGET W/ENCUMB W/ENCUMB PROJECTION FAV(UNFAV)FAV(UNFAV) BEGINNING BALANCE 5,015,684 5,015,684 0 NA OPERATING REVENUES Sales Tax 1,468,750 156,391 405,246 1,468,750 0 NA Interest 10,400 2,647 13,518 10,400 0 NA Miscellaneous Revenue 60,321 0 10,302 60,321 0 NA Lease Revenue (Grape Creek)48,000 4,000 20,000 48,000 0 NA Total Operating Revenues 1,587,471 163,038 449,066 1,587,471 0 NA OPERATING EXPENDITURES Debt Service 115,839 0 0 115,839 0 NA Principal Reduction 100,000 0 0 100,000 0 NA Interest Expense 111,463 66,679 66,679 111,463 0 NA Bond Issuance Costs 0 0 (114)0 0 NA Joint Services Allocation 197,722 16,477 82,385 197,722 0 NA Supplies 300 0 140 300 0 NA Special Services 7,500 0 33 7,500 0 NA Travel & Training 1,500 0 0 1,500 0 NA Promotional & Marketing Program 81,000 3,975 40,660 81,000 0 NA Miscellaneous Expense 10,321 0 10,302 10,321 0 NA Total Operating Expenditures 625,645 87,131 200,085 625,645 0 NA TOTAL NET OPERATIONS 961,826 75,907 248,981 961,826 0 NA NON-OPERATING EXPENDITURES Catalyst 24,000 0 0 24,000 0 NA DisperSol 60,000 0 0 60,000 0 NA Economic Development Projects -Undetermined 5,370,322 0 0 5,370,322 0 NA Radix 50,000 0 0 50,000 0 NA Tasus 6,000 0 0 6,000 0 NA Texas Life Sciences 100,000 0 0 100,000 0 NA Total Non-Operating Expenditures 5,610,322 0 0 5,610,322 0 NA TOTAL NET NON-OPERATIONS (5,610,322)0 0 (5,610,322)0 NA EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (4,648,496)75,907 248,981 (4,648,496)0 NA ENDING BALANCE 367,188 367,188 0 NA RESERVED ENDING BALANCE 367,188 367,188 Georgetown Economic Development Corporation Fund Year End Projection to Approved as of February 2017 Page 9 of 51 As of February 28, 2017 Georgetown Economic Development Corporation Sales Tax History Variance % Var. MONTH [a]2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 To FY 15 To FY 15 October 70,264$ 86,324$ 91,863$ 98,094$ 106,050$ 114,748$ 8,698$ 8.20% November 74,472 82,083 99,552 102,891 112,766 125,214 12,448$ 11.04% December 111,968 117,582 134,682 143,774 148,200 160,542 12,342$ 8.33% January 73,177 82,714 89,357 87,695 96,563 110,006 13,443$ 13.92% February 72,946 77,890 86,901 89,107 108,117 March 105,822 115,564 114,355 123,951 133,492 April 81,362 84,420 106,002 102,671 108,977 May 80,919 94,412 112,572 95,699 120,418 June 99,664 114,132 123,306 130,589 142,767 July 89,969 92,765 102,435 108,994 119,534 August 85,792 92,735 98,015 102,888 132,582 September 88,334 125,197 119,473 125,201 135,378 Total 1,034,688$ 1,165,819$ 1,278,513$ 1,311,554$ 1,464,844$ 510,510$ YTD 329,881 368,704 415,454 432,454 463,579 510,510 46,931 10.12% Notes: [a]Sales tax revenue from the State Comptroller is received two months in arrears. Sales tax for September is actually received in November. $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 Re v e n u e s Sales Tax 3 Year Trend 2014-15 2015-16 2016-17 Page 10 of 51 • Promo and Marketing Programs: - Conway Data, Inc. - GIS Planning, Inc. - Williamson Co Economic - Texas Healthcare & Bioscience Page 11 of 51 AN INDEPENDENT MEMBER OF BAKER TILLY INTERNATIONAL WEAVER AND TIDWELL, L.L.P. CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS 1601 SOUTH MOPAC EXPRESSWAY, SUITE D250, AUSTIN, TX 78746 P:512.609.1900 F:512.609.1911 13 INDEPENDENT AUDITOR’S REPORT The Honorable Mayor Members of the City Council City of Georgetown, Texas Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Georgetown, Texas (the City), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2016, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison for the general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Page 12 of 51 The Honorable Mayor Members of the City Council City of Georgetown, Texas 14 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, Texas Municipal Retirement System pension schedules, Other Post-employment Benefits, and Modified Approach for Street Infrastructure Capital Assets on pages 16 – 27 and 80 - 82 be presented to supplement the basic financial statements.Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual major and nonmajor fund financial statements and schedules and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for the purposes of additional analysis as required by the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and is also not a required part of the basic financial statements. The combining and individual major and nonmajor fund financial statements and schedules and the schedule of the expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual major and nonmajor fund financial statements and schedules and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections listed in the table of contents have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Page 13 of 51 The Honorable Mayor Members of the City Council City of Georgetown, Texas 15 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 7, 2017 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance.That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. WEAVER AND TIDWELL, L.L.P. Austin, Texas March 7, 2017 Page 14 of 51 CITY OF GEORGETOWN, TEXAS STATEMENT OF NET POSITION SEPTEMBER 30, 2016 The Notes to Financial Statements are an integral part of this statement. 28 Component Unit Georgetown Economic Governmental Business-type Development Activities Activities Total Corporation ASSETS Cash and cash equivalents 52,868,225$ 12,464,164$ 65,332,389$ 9,398,649$ Cash and cash equivalents - restricted - 20,516,574 20,516,574 - Investments 39,613,877 - 39,613,877 2,723 Investments - restricted - 23,758,448 23,758,448 - Prepaid items 402,785 5,443,900 5,846,685 - Security deposit - - - - Accounts receivable Services (net of allow ance for uncollectibles) - 14,729,618 14,729,618 - Other 10,551,341 2,715,674 13,267,015 258,789 Internal balances (1,189,607) 1,189,607 - - Inventories 717,686 4,171,006 4,888,692 - Long-term note receivable 3,427,185 848,818 4,276,003 - Capital assets Land 28,611,637 3,665,995 32,277,632 171,382 Streets 181,655,391 - 181,655,391 - Building and improvements 129,967,829 7,608,585 137,576,414 296,874 Machinery, furniture and equipment 47,056,676 5,653,457 52,710,133 - Distribution system - 533,987,684 533,987,684 - Water system - - - - Construction in progress 49,928,216 13,971,591 63,899,807 - Accumulated depreciation (60,643,596) (138,049,468) (198,693,064) (24,245) Total assets 482,967,645 512,675,653 995,643,298 10,104,172 DEFERRED OUTFLOWS OF RESOURCES Deferred outflow related to pension 9,378,985 2,205,160 11,584,145 - Deferred charge on refunding 2,464,767 1,535,600 4,000,367 - Total deferred outflows of resources 11,843,752 3,740,760 15,584,512 - TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 494,811,397$ 516,416,413$ 1,011,227,810$ 10,104,172$ LIABILITIES AND NET POSITION Liabilities Current liabilities Accounts payable 9,734,945$ 10,429,156$ 20,164,101$ 4,513,630$ Accrued employee benefits 1,684,122 400,771 2,084,893 - Unearned revenue 3,087,020 86,867 3,173,887 4,000 Unapplied credits 447,055 - 447,055 - Current portion of noncurrent liabilities 10,849,774 6,636,305 17,486,079 222,698 Accrued interest 657,654 378,240 1,035,894 - Construction contracts and retainages payable from restricted assets - 457,415 457,415 - Customer deposits payable from restricted assets - 1,184,328 1,184,328 - Noncurrent liabilities Accrued employee benefits 4,760,827 531,043 5,291,870 - Net pension liability 18,602,878 4,397,993 23,000,871 - Long-term debt 158,140,406 84,138,698 242,279,104 3,744,867 Total liabilities 207,964,681 108,640,816 316,605,497 8,485,195 NET POSITION Net investment in capital assets 254,289,833 380,034,944 634,324,777 171,382 Restricted for Debt service 1,377,661 - 1,377,661 - Specific programs 3,580,444 - 3,580,444 - Unrestricted 27,598,778 27,740,653 55,339,431 1,447,595 Total net position 286,846,716 407,775,597 694,622,313 1,618,977 TOTAL LIABILITIES AND NET POSITION 494,811,397$ 516,416,413$ 1,011,227,810$ 10,104,172$ Primary Government Page 15 of 51 CITY OF GEORGETOWN, TEXAS ECONOMIC DEVELOPMENT SALES TAX - Discretely presented component unit SCHEDULE OF REVENUES AND EXPENDITURES (BUDGET BASIS) - BUDGET AND ACTUAL (NON-GAAP) - RECONCILED TO GAAP BASIS FISCAL YEAR ENDED SEPTEMBER 30, 2016 (WITH COMPARATIVE FOR 2015) FINAL BUDGET 2016 ACTUAL BUDGETARY BASIS VARIANCE TO BUDGET 2015 ACTUAL BUDGETARY BASIS REVENUES: Sales tax 1,345,313$ 1,464,844$ 119,531$ 1,311,553$ Lease Revenue 48,000 44,000 (4,000) 102,778 Investment earnings 7,500 27,882 20,382 10,914 Other - 3,178,715 3,178,715 - Total revenues 1,400,813 4,715,441 3,314,628 1,425,245 EXPENDITURES: Operations 304,000 212,124 91,876 285,672 Capital outlay 9,036,770 4,691,000 4,345,770 269,000 Total expenditures 9,340,770 4,903,124 4,437,646 554,672 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (7,939,957) (187,683) 7,752,274 870,573 OTHER FINANCING SOURCES (USES): Bond proceeds - - - - Bond issuance costs (87,500) (18,224) 69,276 - Bond proceeds 3,100,000 - (3,100,000) - Interest & Fiscal Charges - - - - Transfers in - - - - Operating transfers out (106,694) (106,695) 1 (99,783) Total other financing sources (uses) 2,905,806 (124,919) (3,030,723) (99,783) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES) - BUDGETARY BASIS (5,034,151) (312,602) 4,721,551 770,790 FUND BALANCES, Beginning of period 4,539,793 5,375,707 835,914 4,604,917 FUND BALANCES - BUDGETARY BASIS, End of period (494,358)$ 5,063,105 5,557,465$ 5,375,707 Adjustments to GAAP: Reverse current year encumbrances 42,735 30,556 Record net unrealized loss on investment 2,723 220 Record principal reduction 74,430 63,124 Record depreciation (4,734)(9,365) (525,069) PY GAAP Adjustments (440,534) FUND BALANCES - GAAP BASIS End of period 4,737,725$ 4,935,173$ -$ -$ Page 16 of 51 City of Georgetown, Texas Georgetown Economic Development Corporation March 20, 2017 SUBJECT: Cons id eration and p o s s ib le ac tion regard ing GEDCO and City Counc il partic ip ation in a Feasibility Study regarding the need fo r a Hospic e F acility in Georgetown - S teve F o ught, GEDC O Board memb er ITEM SUMMARY: Steve Fought has res earc hed area fac ilities and talked with indus try profess io nals regarding Geo rgeto wn's lack of inpatient hos pic e fac ilities. He would like GEDCO to cons id er further examination of the need for a hospic e fac ility. FINANCIAL IMPACT: TBD SUBMITTED BY: Tina Dunb ar o n b ehalf o f S teve F o ught, GEDC O Page 17 of 51 City of Georgetown, Texas Georgetown Economic Development Corporation March 20, 2017 SUBJECT: Cons id eration and p o s s ib le ac tion to approve a rec o mmendatio n fro m staff regarding a c o nsultant to cond uc t a Target Indus try and Workfo rce Analys is fo r Georgetown - Mic haela Do llar ITEM SUMMARY: At the January GEDCO meeting, staff presented a p ro p o s al to hire a cons ultant to cond uc t a Target Indus try and Wo rkforc e Analysis. GEDCO s up p o rted the proposal and s taff's plan to reques t b id s from cons ultants . A fo rmal s olic itatio n (Reques t for Propos als) fo r Econo mic Development Target Indus try & Wo rkforc e Analys is was posted on the City’s Ion Wave bid s ystem on February 2, 2017 and 574 vend o rs were invited to s ub mit a proposal. S even (7) prop o s als were rec eived. The propo s als were reviewed fo r c o mp lianc e with the spec ificatio ns and reference checks were performed . Now, staff res p ec tfully reques t that GEDCO approve a contrac t with the preferred c o nsultant. FINANCIAL IMPACT: Up to $100,000 SUBMITTED BY: Michaela Dollar, Direc tor o f Econo mic Development Page 18 of 51 City of Georgetown, Texas Georgetown Economic Development Corporation March 20, 2017 SUBJECT: Review and pos s ible actio n related to the Day and Time of the GEDCO Bo ard Meetings --David Morgan, General Manager ITEM SUMMARY: In ac cordanc e with the GEDCO Bylaws , Section 2.03 REGULAR MEETING; PLACE OF MEETING “The Bo ard s hall meet o n a regular basis, at a spec ified time, day, and loc ation as ap p ro ved annually by the Bo ard . Sc heduled meeting times will b e prop erly p o s ted fo r pub lic no tific atio n for regular and s pec ial called meetings as necessary. The president o f the Board may c anc el the meeting if there is no b us ines s to be cond uc ted .” Currently, the GEDCO Bo ard meets on the third Mo nday of each month at 4:00 p .m. in the City Counc il Chamb ers loc ated at 101 E. 7th S treet, Georgetown, Texas 78626. FINANCIAL IMPACT: None SUBMITTED BY: Tina Dunb ar o n b ehalf o f David S. Morgan, City Manager Page 19 of 51 City of Georgetown, Texas Georgetown Economic Development Corporation March 20, 2017 SUBJECT: Confirmation and ap p ro val o f the Fourth Amended Bylaws for GEDCO approved by the City Counc il on Dec emb er 8, 2015 and the Articles o f Amendment fo r GEDCO approved b y the C ity Co uncil o n Dec emb er 8, 2015 related to Bo ard Members hip --David Morgan, General Manager ITEM SUMMARY: In 2015, City C o uncil ap p ro ved changes to the board memb ers hip req uirements of the Georgetown Ec o nomic Develo p ment Co rp o ration (GEDCO) Bo ard to require that a minimum o f two (2) o f the s even (7) d irecto rs b e c urrent City Counc il Members . GEDCO Bylaws and Articles of Inc o rp o ration were amended to reflec t the c hanges and GEDCO ac c epted the changes in Marc h 2016. T here have been no ad d itional c hanges s ince that time. Eac h year, GEDC O is as ked to review and ac c ep t the doc uments even if no c hanges were made. ATTACHMENT 1. Res o lutio n No. 120815-F Approving Fourth Amend ed Bylaws of the Georgetown Ec o nomic Development Corporatio n 2. Res o lutio n No. 120815-G ap p ro ving Articles o f Amend ment for the Artic les of Inc o rp o ration fo r the Geo rgeto wn Econo mic Development Corporatio n. FINANCIAL IMPACT: None SUBMITTED BY: Tina Dunb ar o n b ehalf o f David S. Morgan, City Manager ATTACHMENTS: Description Type Res olution No. 120815-F Backup Material Res olution No. 120815-G Backup Material Page 20 of 51 Page 21 of 51 Page 22 of 51 Page 23 of 51 Page 24 of 51 Page 25 of 51 Page 26 of 51 Page 27 of 51 Page 28 of 51 Page 29 of 51 Page 30 of 51 Page 31 of 51 Page 32 of 51 Page 33 of 51 Page 34 of 51 Page 35 of 51 Page 36 of 51 Page 37 of 51 Page 38 of 51 Page 39 of 51 Page 40 of 51 Page 41 of 51 City of Georgetown, Texas Georgetown Economic Development Corporation March 20, 2017 SUBJECT: Review and dis c us s ion regard ing the City Co unc il Attendance Polic y fo r Bo ard Members--David Mo rgan, General Manager ITEM SUMMARY: Sec tion 2.07 Attendance o f the Bylaws of the Geo rgeto wn Econo mic Development Corporatio n s tates : “Board Memb ers are req uired to attend 75% o f regularly sc hed uled Board Meetings . Excessive ab s enteeis m will be s ubjec t to ac tion under Counc il polic y.” Additio nally, Chap ter 2.36 CITY COMMISSIONS, COMMITTEES, AND BOARDS , S ectio n 2.36.010(D) – Duties o f Members o f the City of Geo rgeto wn Co d e of Ordinanc es , als o addresses the City Counc il’s polic y on attend anc e for Bo ard Memb ers : SEC 2.36.010 DUTIES OF COMMISSION, COMMITTEE & BOARD MEMBERS “D. Attend anc e by Members is integral to s uc cess o f the commissio n, c o mmittee or b o ard . It is Co uncil p o licy to req uire a minimum of 75 p ercent attendanc e of each Memb er at eac h regularly s ched uled meeting inc luding s ub committee meetings . A Memb er s hall be allo wed two exc used ab s enc es fo r the Member's p ers o nal med ical c are, req uired med ical c are of a Memb er's immed iate family memb er (as d efined by City Ordinanc e), or Member's military Servic e that shall not count agains t the 75 perc ent attend anc e req uirement. Written notice shall b e s ent to a Member and the Memb er's City Co uncil rep res entative when it ap p ears the Memb er may violate the attend anc e p o licy b y being abs ent fro m mo re than 25 p erc ent of regularly s c heduled meetings, inc lud ing s ubc o mmittee meetings. Exc es s ive absenteeism may result in the Member b eing replac ed by the Counc il. If a Memb er is remo ved fro m a c o mmittee, c o mmis s io n o r board , that p o s ition shall b e c o nsidered vac ant and a new Memb er s hall be ap p o inted to the Board in acc o rd anc e with Section 2.36.040” The City Sec retary and the Mayo r review attend anc e and determine if warning or removal letters need to be s ent to a Member that is in danger of or has violated the 75% Council mandated attendance policy. Absences are exc us ed fo r medic al reasons or military reas o ns. City Co uncil and S taff Liaisons are notified if any letters are s ent to a Member. Absences for any S p ecial Meetings that are s c hed uled d o no t count to ward the 75% Attend anc e Po licy. The City o f Georgetown values the vo lunteers that s erve o n its Commissio ns , Committees or Boards and is fortunate to have a multitude of c itizens who ap p ly to be a part o f the pub lic p ro cess b y s erving o n them. Acc o rd ingly, it is very imp o rtant that the members who are ap p o inted to b e o n a City of Geo rgeto wn Commission, Co mmittee o r Bo ard understand the importanc e o f their attend anc e and their p artic ip ation at the regularly sc heduled meetings o f these Commission, Committee or Bo ard meetings . FINANCIAL IMPACT: None Page 42 of 51 SUBMITTED BY: Tina Dunb ar o n b ehalf o f David S. Morgan, City Manager Page 43 of 51 City of Georgetown, Texas Georgetown Economic Development Corporation March 20, 2017 SUBJECT: Consideration and possible action to nominate and elect a P resident, Vice-P resident, and Secretary consistent with Section 3.02 of the GEDCO Bylaws— David Morgan, General Manager ITEM SUMMARY: Purs uant to the GEDCO Bylaws , Section 3.02 Officers: "The o fficers of the C o rp o ration shall be a p res id ent, vic e president, and sec retary. T he Bo ard , at each annual meeting, which s hall no rmally o cc ur in the firs t meeting in March of eac h year, s hall elect these o fficers. The Bo ard may appoint s uc h o ther o ffic ers as it deems nec es s ary, who s hall have the authority, and s hall p erform s uc h d uties as fro m time to time may b e presc rib ed by the Board.” Ac cordingly, the C o rp o ration mus t nominate and elec t o fficers. FINANCIAL IMPACT: None SUBMITTED BY: Tina Dunb ar o n b ehalf o f David S. Morgan, City Manager Page 44 of 51 City of Georgetown, Texas Georgetown Economic Development Corporation March 20, 2017 SUBJECT: Ac tion out of Exec utive S es s io n. ITEM SUMMARY: FINANCIAL IMPACT: TBD SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 45 of 51 City of Georgetown, Texas Georgetown Economic Development Corporation March 20, 2017 SUBJECT: Disc ussion and p o s s ib le ac tion regard ing the S taff Report —David Morgan, City Manager -P erformance Agreement Report -Report from P lanning -Other Pro jec ts ITEM SUMMARY: The GEDCO Board has req uested that staff p ro vide a projec t p ro gress and s tatus report at eac h meeting o n all of the ac tive p ro jects disc ussed b y the Bo ard . FINANCIAL IMPACT: N/A SUBMITTED BY: David S. Morgan, C ity Manager ATTACHMENTS: Description Type report Cover Memo Page 46 of 51 Name Description Start Date (Council Approved)End Date $ Encumbered $ Expended Citigroup Grant for wastewater infrastructure for construction of datacenter. 12/12/2006 12/31/2018 $ 1,300,000 $ 1,300,000 DisperSol Grant for job creation related to expansion of manufacturing facilities.10/16/2014 2/15/2019 250,000$ $ 70,000 Grape Creek Grant for reimbursement of Qualified Expenditures for the lease/purchase and future site improvements at 101 E. 7th Street and 614 Main Street for the operation of a winery on the Downtown Square. 8/23/2011 3/1/2018 280,000$ 280,000$ Grape Creek GEDCO purchase of building. GCV currently under lease/purchase agreement with right to exercise purchase at end of PA for $447K.8/23/2011 3/1/2018 447,000$ 447,000$ Lone Star Circle of Care Grant for Qualified Expenditures for future site improvements at 205 East University Avenue, Georgetown, Texas. Loan Agreement and Promissory Note have been executed. 6/28/2011 11/30/2017 387,000$ $ 387,000 Radiation Detection Corporation Grant for Qualified Expenditures and job creation related to the relocation of the corporate offices to Georgetown. 7/23/2013 12/31/2021 320,000$ 320,000$ Radix BioSolutions, Ltd. Provided grant to assist with the work and future plans of Radix BioSolutions at the TLCC. Radix paid back $47K on 3/15/15. Radix paid back $50K 3/10/16.3/9/2010 3/31/2018 250,000$ $ 153,000 GEDCO - ACTIVE PERFORMANCE AGREEMENTS STATUS REPORT March 20, 2017 Over Page 47 of 51 Name Description Start Date (Council Approved)End Date $ Encumbered $ Expended GEDCO - ACTIVE PERFORMANCE AGREEMENTS STATUS REPORT March 20, 2017 TASUS Texas Corporation Provide a grant of $67,500 for job creation related to expansion of manufacturing facilities. 2/25/2014 5/31/2017 67,500$ -$ Rentch Brewery Provide financial assistance not to exceed $70K for infrastructure costs related to the expansion of their existing operation including upgraded electric transformer and upgraded waterlines to the facility.10/11/2016 10/11/2019 70,000$ $ - Page 48 of 51 City of Georgetown, Texas Georgetown Economic Development Corporation March 20, 2017 SUBJECT: Sec. 551.071: CONSULTATION WITH ATTORNEY Cons ultation with atto rney regard ing legal iss ues related to agend a items and o ther matters in which (1) when the go vernmental b o d y s eeks the advic e of its atto rney about: (A) p end ing or contemplated litigation; o r (B) a settlement offer; or (2) o n a matter in whic h the duty of the attorney to the governmental b o d y und er the Texas Dis c ip linary Rules o f Pro fes s ional C o nduct of the State Bar of Texas c learly conflicts with this c hapter - C harlie McNab b , City Atto rney ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 49 of 51 City of Georgetown, Texas Georgetown Economic Development Corporation March 20, 2017 SUBJECT: Section 551.072. DELIBERATIONREGARDING REAL PROPERTY Disc ussion and p o s s ib le ac tion to deliberate the purchas e,exchange, leas e o r value o f real p ro p erty for p urposes autho rized by the Develo p ment Corporatio n Act whic h d is cus s ion in open session wo uld have ad etrimental effec t o n nego tiatio ns with third p ers o ns . ITEM SUMMARY: FINANCIAL IMPACT: n/a SUBMITTED BY: Skye Mas s o n, Interim City Attorney Page 50 of 51 City of Georgetown, Texas Georgetown Economic Development Corporation March 20, 2017 SUBJECT: Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS. Deliberatio n regard ing c o mmercial o r financ ial informatio n that the c o rp o ratio n has received from a b usines s pros p ec t that the Geo rgeto wn Economic Development Corporation s eeks to have lo cate, s tay, o r expand in or near the territo ry o f the City o f Geo rgeto wn and with whic h the Corporatio n is c o nducting econo mic d evelo p ment negotiations ; and/o r d elib eration regard ing the o ffer o f a financial o r other inc entive to a bus iness pros pec t that the Co rp o ration s eeks to have loc ate, stay, o r expand in or near the territory of the City of Georgetown. ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 51 of 51