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Home My WebLink AboutAgenda_GEDCO_06.18.2018Notice of Meeting for the Georgetown Economic Dev elopment Corporation of the City of Georgetown June 18, 2018 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 Meeting held Mo nday, April 16, 2018--Steve Bohnenkamp, S ecretary B Co nsideration and possible actio n regard ing the 2030 Co mp rehens ive P lan update - Sofia Nelson, Planning Direc tor. C Co nsideration of the April & May 2018 financ ial rep o rts. Leigh Wallac e, F inance Manager, GEDCO, Finance Direc to r, COG D Dis cus s ion and pos s ible actio n to recommend the F Y2019 p ro p o s ed G EDCO b udget. Leigh Wallac e, Finance Direc to r, COG, Financ e Manager, GEDC O E 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 -Activity Report -Other Staff Items F Actio n o ut o f Exec utive Session. Executiv e Session In compliance with the Op en Meetings Act, C hapter 551, Go vernment Code, Vernon's Texas Codes, 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. G 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 H 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 Page 1 of 74 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 a detrimental effect on negotiations with third pers ons . I 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. - Projec t Deliver 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 __________________, 2018, 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 74 City of Georgetown, Texas Georgetown Economic Development Corporation June 18, 2018 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 Meeting held Mond ay, Ap ril 16, 2018--Steve Bo hnenkamp , Sec retary ITEM SUMMARY: ATTACHMENTS: Draft Minutes FINANCIAL IMPACT: None SUBMITTED BY: Steve Bo hnenkamp, C o rp o rate Sec retary ATTACHMENTS: Description Type minutes Cover Memo Page 3 of 74 GEDCO Minutes April 19, 2018 Page 1 of 2 Minutes of the Meeting of the Georgetown Economic Development Corporation City of Georgetown, Texas April 16, 2018 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday, April 16, 2018. Present: Members Absent: Kevin Kelly, Jeff Parker, Bill Mateja, Steve Fought, Steve Bohnenkamp, Tom Menke, Valerie Nicholson Staff Present: David Morgan, City Manager/General Manager; Michaela Dollar, Director of Economic Development; Wayne Reed, Assistant City Manager; Conchita Gusman, Business Retention and Expansion Program Manager; Leah Wallace, Finance Manager; Laurie Brewer, Assistant City Manager; Paul Diaz, Budget Manager; Tina Dunbar, Marketing Coordinator; Debbie Mitchell, Senior Accountant MINUTES Call to Order at 4:00 pm A Consideration and approval of the minutes for Georgetown Economic Development Corporation for the Regular Meeting held Monday, March 19, 2018—Steve Bohnenkamp, Secretary Motion by Parker, second by Menke to approve the March 19, 2018 minutes. (Approved 6-0) B Consideration of the March 2018 financial reports. Leigh Wallace, Finance Manager, GEDCO, Finance Director, COG Wallace presented the financial report. She, Morgan, and Diaz answered questions from the board. Nicholson arrived at 4:05 C Discussion and possible action regarding the Staff Report —David Morgan, City Manager - Performance Agreement Report - Activity Report - Other Staff Items Gusman presented the Performance Agreement Report and detailed the DisperSol agreement. Dollar presented the activity report and economic indicators and then answered questions from the board. Into Exec Session at 4:45pm Page 4 of 74 GEDCO Minutes April 19, 2018 Page 2 of 2 Return to Regular Session at 5:18 D Motion out of Executive Session. Motion by Mateja, second by Bohnenkamp to approve an incentives agreement with Project Badge as discussed in Executive Session. Motion by Fought, second by Nicholson to adjorn at 5:19pm. ______________________________ ___________________________________ Steve Bohnenkamp, Corporate Secretary Kevin Kelly, President Page 5 of 74 City of Georgetown, Texas Georgetown Economic Development Corporation June 18, 2018 SUBJECT: Cons id eration and p o s s ib le ac tion regard ing the 2030 Comprehensive Plan up d ate - S o fia Nels o n, Planning Direc tor. ITEM SUMMARY: Geo rgeto wn’s 2030 C o mp rehens ive Plan, adopted in 2008, provid es long-range guidance fo r the community’s develo p ment and c harac ter. All c omprehensive plans mus t be updated periodic ally to remain useful to the c o mmunity. T his 2030 Plan Up d ate is intend ed to address the fo llo wing: · To engage the community and c o llec t meaningful input that will guide the up d ated p lan’s rec o mmendatio ns; To examine recent p o p ulatio n gro wth and d emo graphic s hifts , whic h can c hange a c o mmunity’s need s and priorities ; To c o ns ider recent d evelopments or o p p o rtunities that may not have b een kno wn during the previo us p lan p ro cess; and To reflec t the progres s that the C ity has made s inc e the 2030 Comprehensive P lan was originally adopted . This update is no t intended to rewrite the entire 2030 P lan; ins tead it is intended to update c ritic al elements that no lo nger reflec t the community’s circ ums tances o r go als , o r to introduc e new elements into the Plan’s s cope, such as inc orporating a hous ing needs as s es s ment and targeted hous ing rec o mmendatio ns. FINANCIAL IMPACT: n/a SUBMITTED BY: Sofia Nelson, P lanning Directo r Page 6 of 74 City of Georgetown, Texas Georgetown Economic Development Corporation June 18, 2018 SUBJECT: Cons id eration o f the Ap ril & May 2018 financ ial reports . Leigh Wallace, Financ e Manager, GEDCO, Financ e Direc tor, 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 April & Map financials Cover Memo s ales tax Cover Memo Page 7 of 74 GEDCO Board Meeting Date: June 18, 2018 Item No. __________ GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM COVER SHEET _________________________________________________________________ SUBJECT: Consideration of the April 30, 2018 and May 31, 2018 financial reports. 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; therefore the revenues reflect only the amount received, not actually earned, as of the report date. A report on payments made to vendors in the month of April and May is also included. ATTACHMENTS: Monthly Financial Reports Sales Tax History Disbursement Report SUBMITTED BY: Leigh Wallace Finance Manager, GEDCO Finance Director, COG Page 8 of 74 APPROVED BUDGET CURRENT PERIOD YEAR TO DATE (W/ENCUMB) YEAR-END PROJECTION BEGINNING FUND BALANCE 5,902,863 6,051,152 OPERATING REVENUES - Interest 25,400 9,526 58,524 60,300 Lease Revenue (Grape Creek)24,000 4,000 36,000 36,000 Miscellaneous Revenue 61,100 - 60,991 61,000 Sales Tax 1,643,750 158,094 826,394 1,693,750 Sale of Property - - OPERATING REVENUES Total 1,754,250 171,620 981,908 1,851,050 OPERATING EXPENDITURES - Debt Service 212,569 - 43,784 212,569 Interest Expense 26,128 - - 26,128 Joint Services Allocation 221,328 18,444 147,552 221,328 Miscellaneous Expense 11,108 - 10,991 11,040 Principal Reduction 90,485 - - 90,485 Promotional & Marketing Program 81,000 9,655 75,301 81,000 Special Services 57,500 - 42,500 57,500 Supplies 300 - - - Travel & Training 1,500 - - 500 OPERATING EXPENDITURES Total 701,918 28,099 320,128 700,550 TOTAL NET OPERATIONS 1,052,332 143,521 661,781 1,150,500 Catalyst 36,000 - 33,006 18,839 DisperSol 60,000 - 40,000 40,000 Economic Development Projects -Undetermined 6,308,518 - - 150,000 Texas Life Sciences 139,740 - 139,740 139,740 NON-OPERATING EXPENDITURES Total 6,544,258 - 212,746 348,579 TOTAL NET NON-OPERATIONS (6,544,258) - (212,746) (348,579) EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (5,491,926) 143,521 449,035 801,921 ENDING FUND BALANCE 410,938 6,853,073 RESERVES Contingency 410,938 423,438 RESERVES Total 410,938 - - 423,438 AVAILABLE FUND BALANCE - 6,429,635 Georgetown Economic Development Corporation Fund Year-End Projection to Approved: May FY2018 Page 9 of 74 GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION CHECKS WRITTEN REPORT FOR THE MONTH OF MAY 2018 • Promotions & Marketing Program: - Texas Monthly $ 5,595.00 - Eastex Productions $ 4,060.00 Page 10 of 74 APPROVED BUDGET CURRENT PERIOD YEAR TO DATE (W/ENCUMB) YEAR-END PROJECTION BEGINNING FUND BALANCE 5,902,863 6,051,152 OPERATING REVENUES - Interest 25,400 8,204 48,981 48,981 Lease Revenue (Grape Creek)24,000 12,000 32,000 32,000 Miscellaneous Revenue 61,100 50,000 60,991 61,100 Sales Tax 1,643,750 128,548 668,300 1,643,750 Sale of Property - - OPERATING REVENUES Total 1,754,250 198,752 810,273 1,785,831 OPERATING EXPENDITURES - Debt Service 212,569 - 43,784 212,569 Interest Expense 26,128 - - 26,128 Joint Services Allocation 221,328 18,444 129,108 221,328 Miscellaneous Expense 11,108 - 10,991 11,108 Principal Reduction 90,485 - - 90,485 Promotional & Marketing Program 81,000 6,600 75,301 81,000 Special Services 27,500 - 12,500 27,500 Supplies 300 - - 300 Travel & Training 1,500 - - 1,500 OPERATING EXPENDITURES Total 671,918 25,044 271,684 671,918 TOTAL NET OPERATIONS 1,082,332 173,708 538,589 1,113,913 NON-OPERATING EXPENDITURES - Catalyst 36,000 - 33,006 36,000 DisperSol 60,000 - 40,000 40,000 Economic Development Projects -Undetermined 6,338,518 - - 6,338,518 Texas Life Sciences 139,740 - 139,740 139,740 NON-OPERATING EXPENDITURES Total 6,574,258 - 212,746 6,554,258 TOTAL NET NON-OPERATIONS (6,574,258) - (212,746) (6,554,258) EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (5,491,926) 173,708 325,843 (5,440,345) ENDING FUND BALANCE 410,938 610,807 RESERVES Contingency 410,938 410,938 RESERVES Total 410,938 - - 410,938 AVAILABLE FUND BALANCE - 199,869 Georgetown Economic Development Corporation Fund Year-End Projection to Approved: Apr FY2018 Page 11 of 74 GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION CHECKS WRITTEN REPORT FOR THE MONTH OF APRIL 2018 • Promotions & Marketing Program: - Conway Data, Inc. $ 6,600.00 Page 12 of 74 As of May 31, 2018 Georgetown Economic Development Corporation Sales Tax History Variance % Var. MONTH [a]2013-14 2014-15 2015-16 2016-17 2017-18 To FY 17 To FY 17 October 91,863$ 98,094$ 106,050$ 114,748$ 124,478$ 9,730$ 8.48% November 99,552 102,891 112,766 125,214 127,064 1,850$ 1.48% December 134,682 143,774 148,200 160,542 162,940 2,398$ 1.49% January 89,357 87,695 96,563 110,006 115,291 5,285$ 4.80% February 86,901 89,107 108,117 105,556 133,797 28,241$ 26.75% March 114,355 123,951 133,492 137,301 158,112 20,811$ 15.16% April 106,002 102,671 108,977 117,261 May 112,572 95,699 120,418 125,188 June 123,306 130,589 142,767 151,484 July 102,435 108,994 119,534 154,889 August 98,015 102,888 132,582 122,847 September 119,473 125,201 135,378 143,897 Total 1,278,513$ 1,311,554$ 1,464,844$ 1,568,933$ 821,682$ YTD 616,710 645,512 705,188 753,367 821,682 68,315 9.07%[b] Notes: [a]Sales tax revenue from the State Comptroller is received two months in arrears. [b]YTD compared through current month. $- $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 2015-16 2016-17 2017-18 Page 13 of 74 FY2019 Annual Budget Page 14 of 74 FY2019 Annual Budget Agenda •Sales tax Overview •Process and Methodology •Projections Page 15 of 74 FY2019 Annual Budget Sales Tax Facts •8.25 cents = Total Sales Tax •6.25 cents = State’s portion •2.00 cents = City Page 16 of 74 FY2019 Annual Budget City Sales Tax Breakdown Page 17 of 74 FY2019 Annual Budget Lots of Data •Two Major Sources –Confidential Report from the State: This is specific to Georgetown. (Over 200,000 rows of data) •NAICS Codes –All Cities Data (230,00 rows of data) Page 18 of 74 FY2019 Annual Budget Connection via PowerPivot 1014568977 Downtown TIRZ Paul’s Pizza Shack NAICS Code 725050 = Food Page 19 of 74 FY2019 Annual Budget PowerPivot Slices Page 20 of 74 FY2019 Annual Budget Page 21 of 74 FY2019 Annual Budget Page 22 of 74 FY2019 Annual Budget 2012 2013 2014 2015 2016 2017 2018 *Estimate Wolf Ranch*2,296,110 2,520,927 2,612,430 2,736,892 2,786,915 2,828,247 1,497,305 *Estimate Total*16,692,632 18,764,396 20,667,409 21,193,097 23,689,818 25,442,491 12,534,435 % of Total 13.76%13.43%12.64%12.91%11.76%11.12%11.95%Page 23 of 74 FY2019 Annual Budget Estimate Impact of Wolf Ranch Fiscal Year Actual Sales Tax Wolf Ranch Estimated Impact of Wolf Ranch FY 00 3,439,121 - FY 01 3,549,242 - FY 02 4,942,309 - FY 03 5,777,404 - FY 04 7,038,635 - FY 05 8,121,550 - FY 06 11,534,673 - FY 07 12,921,262 1,550,551 1,550,551 FY 08 13,963,313 1,675,598 3,226,149 FY 09 13,100,865 1,572,104 4,798,253 FY 10 14,025,782 1,683,094 6,481,347 FY 11 15,553,557 1,866,427 8,347,773 FY 12 16,555,003 1,986,600 10,334,374 FY 13 18,645,312 2,237,437 12,571,811 FY 14 20,456,206 2,454,745 15,026,556 FY 15 20,984,850 2,518,182 17,544,738 FY 16 23,437,496 2,812,500 20,357,238 FY 17 25,102,936 3,012,352 23,369,590 FY 18 15,307,476 1,836,897 25,206,487 Page 24 of 74 FY2019 Annual Budget Forecasting Tools •Different trend analysis –Regression types –Different timeframes •Correlation Models Page 25 of 74 FY2019 Annual Budget Consistency in Data Page 26 of 74 FY2019 Annual Budget Page 27 of 74 FY2019 Annual BudgetAnother Way to Think about this Concept Page 28 of 74 FY2019 Annual Budget Multi-Level Analysis •Austin MSA region (about 7%) •Top Twenty cities in Texas (Up 6.97%) •All Cities in Texas (7.42%) Page 29 of 74 FY2019 Annual Budget Scorecard Fiscal Actual Projected Variance Variance % FY2015 20,984,850 21,000,000 (15,150) -0.072% FY2016 23,437,496 22,900,000 537,496 2.347% FY2017 25,102,936 25,300,000 (197,064) -0.779% 69,525,283 69,200,000 325,283 -0.468% Page 30 of 74 FY2019 Annual Budget FY2018 Projection •FY2018 Year End Projection: $27,100,000 Jan Feb Mar Apr Current Year Total 8,476,358 10,617,108 13,146,901 15,307,476 Prior Year Total 8,168,155 9,857,058 12,053,881 13,930,057 Net Difference 308,203 760,050 1,093,019 1,377,419 % Change 3.77%7.71%9.07%9.888% Last Year Actuals 25,102,936 Projection Models % Change from Last Year Aggregate Linear 6M 26,835,976 6.90% Aggregate Linear 12 M 27,072,352 7.85% Aggregate Linear 18M 26,994,385 7.53% Correlation 27,541,190 9.71% Average 27,110,976 8.00% FY2018 Budget 26,312,000 4.82% Page 31 of 74 FY2019 Annual Budget FY2019 Projection Segement Amount General 14,146,200 GTEC 7,073,100 GEDCO 1,768,275 Property Tax Relief 1,768,275 Streets 3,536,550 28,292,400 Page 32 of 74 City of Georgetown, Texas Georgetown Economic Development Corporation June 18, 2018 SUBJECT: Disc ussion and p o s s ib le ac tion to rec o mmend the FY2019 proposed GEDC O bud get. Leigh Wallace, Financ e Direc tor, COG, F inance Manager, G EDCO ITEM SUMMARY: costs and to tal funding req uirements. The p ro p o s ed FY 2019 bud get identifies revenues and spec ific p ro jects planned for the up coming year, as well as , costs as s o c iated with past debt issues . •P ro p o s ed FY 2019 Bud get P res entation •P ro p o s ed FY 2019 Bud get F und Sched ule •P ro p o s ed FY 2019 R evenue Detail •P ro p o s ed FY 2019 Expend iture Detail •P ro p o s ed FY 2019 Adminis trative Contrac t SP ECIAL CO NS IDERAT IONS : Counc il is s cheduled to take actio n o n all c omponents of the F Y 2019 b udget in S ep tember 2018. FINANCIAL IMPACT: none SUBMITTED BY: Leigh Wallace, Financ e Directo r, COG, Financ e Manager, GEDCO ATTACHMENTS: Description Type 2019 budget Cover Memo Page 33 of 74 Meeting Date: June 18, 2018 Item No. __________ GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM COVER SHEET SUBJECT: Discussion and possible action to recommend the FY2019 proposed GEDCO budget. Leigh Wallace, Finance Director, COG, Finance Manager, GEDCO ITEM SUMMARY: The proposed FY 2019 GEDCO budget includes projects identified for funding along with administrative costs and total funding requirements. The proposed FY 2019 budget identifies revenues and specific projects planned for the upcoming year, as well as, costs associated with past debt issues. •Proposed FY 2019 Budget Presentation •Proposed FY 2019 Budget Fund Schedule •Proposed FY 2019 Revenue Detail •Proposed FY 2019 Expenditure Detail •Proposed FY 2019 Administrative Contract SPECIAL CONSIDERATIONS: Council is scheduled to take action on all components of the FY 2019 budget in September 2018. FINANCIAL IMPACT: None SUBMITTED BY: Leigh Wallace Finance Director, COG Finance Manager, GEDCO Page 34 of 74 FY2019 Annual Budget GEDCO Budget Page 35 of 74 FY2019 Annual Budget GEDCO Budget Process •GEDCO -“component unit” of the City –GEDCO Board recommends budget to City Council –City Council adopts in August/September •Guided by GEDCO Fiscal and Budgetary Policy •GEDCO projects in collaboration with Economic Development Department Page 36 of 74 FY2019 Annual Budget GEDCO Budget Process •GEDCO budget developed annually –Revenue estimates for upcoming year •Sales Tax –Expenses for approved economic development projects and agreements; promotions –Debt service –from previously issued debt for projects –Administrative costs •Staff, overhead, project management, travel Page 37 of 74 FY2019 Annual Budget Revenues •Sales tax is projected to end FY2018 at $1,693,750, an increase of 3% over the FY2018 Budget •FY2019 Sales Tax is projected to be $1,768,275,an increase of 4.4% over the year- end projection •Interest revenue is budgeted at $43,000 in FY2019 Page 38 of 74 FY2019 Annual Budget Expenditures •Operation expenses total $130,500. –$100,000 for Marketing –$30,000 for Special Services –$500 for Travel and Training and $50 for Ads and Notices. •Two Debt Service Payments –Transfer out to the City’s main debt fund for $205,069 for Rivery –Repayment to the Water Fund for $103,725 Page 39 of 74 FY2019 Annual Budget Expenditures •Existing projects –Radiation Detection Co –Dispersol –Holt Cat •Funding available for undetermined projects –$ 7,146,613 •Contingency Reserves –Per Fiscal and Budgetary Policy = 25% of sales tax •$442,069 Page 40 of 74 FY2019 Annual Budget Administrative Contract •Joint Service Administrative Contract –$238,622 for the Joint Service contract includes services of Economic Development, Legal, and Finance Administration –7% increase for personnel increases, technology costs, etc. Page 41 of 74 FY2019 Annual Budget Conclusion •Discussion •Recommendation to Council Page 42 of 74 420 - GEDCO 6/12/2018 8:41:03 AM FY2017 Actual FY2018 Budget FY2018 Projected FY2019 Base FY2019 Changes FY2019 Budget Beginning Fund Balance 5,068,518 5,902,863 6,051,152 6,853,073 - 6,853,073 Revenues FY2017 Actual FY2018 Budget FY2018 Projected FY2019 Base FY2019 Changes FY2019 Budget Sales Tax 1,568,934 1,643,750 1,693,750 1,768,275 1,768,275 Interest 45,017 25,400 60,300 40,300 40,300 Other 108,302 85,100 97,000 - - Grand Total 1,722,252 1,754,250 1,851,050 1,808,575 1,808,575 Expenses FY2017 Actual FY2018 Budget FY2018 Projected FY2019 Base FY2019 Changes FY2019 Budget ED Projects 203,209 6,574,258 348,579 7,531,613 7,531,613 Allocations 197,724 221,328 221,328 238,622 238,622 Transfer Out - 116,613 212,569 205,069 205,069 Operations 82,634 121,408 150,040 130,550 130,550 Debt Service 327,308 212,569 116,613 103,725 103,725 Grand Total 810,875 7,246,176 1,049,129 8,209,579 8,209,579 FY2017 Actual FY2018 Budget FY2018 Projected FY2019 Base FY2019 Changes FY2019 Budget Ending Fund Balance 5,979,896 410,937 6,853,073 452,069 - 452,069 CAFR Adjustment 71,256 - - - - - Contingency Reserves 392,234 410,937 423,438 442,069 - 442,069 Available Fund Balance 5,658,918 (0) 6,429,635 10,000 - 10,000 Page 43 of 74 Row Labels GL Mapping FY2017 Actual FY2018 Adopted Budget FY2018 Projected FY2019 Base Budget FY2019 Changes FY2019 Budget 420-4-0000-49-108 TRANSFER IN, UTILITIES Other - - - 420-4-0901-40-105 SALES TAX Sales Tax 1,568,934 1,643,750 1,693,750 1,768,275 1,768,275 420-4-0901-42-100 ALLOCATED INTEREST Interest (2,678) 400 - - - 420-4-0901-42-110 DIRECT INTEREST Interest 44,747 20,000 60,000 40,000 40,000 420-4-0901-42-111 INTEREST - 2016 BONDS Interest 2,947 5,000 300 300 300 420-4-0901-44-105 MISCELLANEOUS REVENUE Other 60,302 61,100 61,000 - - 420-4-0901-44-301 CONTRIBUTION FROM CITY Other - - - 420-4-0901-45-102 LEASE REVENUE Other 48,000 24,000 36,000 - - 420-4-0901-47-100 BOND PROCEEDS Other - - - 420-4-0901-47-104 PREMIUM ON BOND ISSUANCE Other - - - 420-4-0901-47-105 PREMIUM ON BOND ISSUANCE Other - - - 1,722,252 1,754,250 1,851,050 1,808,575 - 1,808,575 442068.75 Page 44 of 74 Row Labels GL Mapping Operating /Non- Operating FY2017 Actual FY2018 Adopted Budget FY2018 Projected FY2019 Base Budget FY2019 Changes FY2019 Budget 420-5-0902-51-110 OFFICE SUPPLIES Operations 193 300 - - - 420-5-0902-51-130 ADS, NOTICES, RECORDING FEES Operations - 50 50 50 50 420-5-0902-51-310 CONTRACT & LEASES Operations - - - 420-5-0902-51-330 SPECIAL SERVICES Operations 33 27,500 57,500 30,000 30,000 420-5-0902-51-333 LEGAL FEES Operations - - - 420-5-0902-51-340 CONTRACTS - OTHER Operations 10,302 11,058 10,990 - - 420-5-0902-51-350 PROMO & MKTING PROGRAMS Operations 72,106 81,000 81,000 100,000 100,000 420-5-0902-51-430 UTILITIES Operations - - - 420-5-0902-51-630 TRAVEL & TRAINING Operations - 1,500 500 500 500 420-5-0902-51-900 DEPRECIATION Operations - - - 420-5-0902-51-950 JOINT SERVICES ALLOCATION Allocations 197,724 221,328 221,328 238,622 238,622 420-5-0902-51-970 ADMINISTRATION ALLOCATION Allocations - - - 420-6-0901-60-001 TRANSFER OUT-DEBT SERVICE Transfer Out - 116,613 212,569 205,069 205,069 420-6-0901-60-002 TRANSFER OUT, JNT SVCS Transfer Out - - - 420-6-0901-60-003 TRANSFER OUT, UTILITIES Transfer Out - - - 420-6-0901-60-100 WASTEWATER LOAN-PRINCIPAL RED Debt Service 186,861 125,000 90,485 80,568 80,568 420-6-0901-60-200 WASTEWATER LOAN-INTEREST EXPENS Debt Service 140,561 87,569 26,128 23,157 23,157 420-6-0901-60-300 BOND ISSUANCE COSTS Debt Service (114) - - 420-6-9990-60-300 BOND ISSUANCE COST Debt Service - - - 420-9-0902-90-000 CAPITAL EXPENSES ED Projects - - - 420-9-0980-90-001 ECONOMIC DEVEL PROJECTS ED Projects - 6,338,518 150,000 7,146,613 7,146,613 420-9-0980-90-011 RADIX ED Projects - - - 420-9-0980-90-012 TEXAS LIFE SCIENCES ED Projects - 139,740 139,740 - - 420-9-0980-90-018 GEORGETOWN ISD ED Projects - - - 420-9-0980-90-019 RIVERY ED Projects - - - 420-9-0980-90-020 STI ED Projects - - - 420-9-0980-90-021 SPECULATIVE COMMERCIAL BLDG ED Projects - - - 420-9-0980-90-022 RADIATION DETECTION COMPANY ED Projects 150,000 150,000 420-9-0980-90-023 FREEPORT EXEMPTION STUDY ED Projects - - - 420-9-0980-90-024 MOLECULAR TEMPLATES INC ED Projects - - - 420-9-0980-90-025 TASUS ED Projects - - - 420-9-0980-90-026 DISPERSOL TECHNOLOGIES, LLC ED Projects 10,000 60,000 40,000 50,000 50,000 420-9-0980-90-027 CATALYST COMMERCIAL, INC ED Projects 23,209 36,000 18,839 - - 420-9-0980-90-028 RENTSCHLER BREWING, LLC ED Projects 70,000 - - 420-9-0980-90-029 AVALANCHE CONSULTING, INC ED Projects 100,000 - - 420-9-0980-90-XXX HOLT CAT ED Projects 185,000 185,000 - 810,875 7,246,176 1,049,129 8,209,579 - 8,209,579 Page 45 of 74 1 .ADMINISTRATIVE SERVICES CONTRACT BETWEEN THE CITY OF GEORGETOWN, TEXAS AND THE GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION STATE OF TEXAS § COUNTY OF WILLIAMSON § THIS CONTRACT FOR SERVICES ("Contract") is made by and between the City of Georgetown, 113 East 8th Street, Georgetown, Texas 78626, hereinafter called "City" and the Georgetown Economic Development Corporation, having its principal business address at 113 East 8th Street, Georgetown, Texas 78626, hereinafter called "Corporation" for the purpose of contracting for administrative services of the staff and employees of the City. WITNESSETH WHEREAS, on May 7, 2005 the City established the Corporation pursuant to Secion 4A of the Economic Development Corporation Act of 1979, as amended (Vernon's Rev. Civ. Stat. Ann., Article 5190.6. § 4(A), as amended) (the “Act”) to promote and develop new and expanded business enterprises on behalf of the City of Georgetown. WHEREAS, on June 21, 2005 the City Council approved the Articles of Incorporation for the Corporation. WHEREAS, on December 13, 2005 the Board of Directors of the Corporation approved the Bylaws of the Corporation. WHEREAS, on January 10, 2006 the City Councl approved the Bylaws of the Corporation. WHEREAS, Section 3.08 of said Bylaws provide that the City and the Corporation shall execute an administrative services contract for the services to be provided to the Corporation by the City by the General Manager, Finance Director, City Attorney, and other City personnel, services or functions, pursuant to. Section 2(4) of the Act, which authorizes the Corporation to pay administrative and legal expenses which are necessary or incidental to placing a project into operation; and WHEREAS. the City and Corporation desire to contract for administrative services described as follows: the services provided by the City Manager, Finance Director, the staff and employees of the City's Finance and Administration Division, and the Economic Development Department, as well as, the City Attorney's Office. AGREEMENT NOW, THEREFORE, the City and Corporation, in consideration of the mutual covenants and agreements herein contained, do hereby mutually agree as follows: Page 46 of 74 2 ARTICLE I SCOPE OF SERVICES TO BE PROVIDED BY CITY The City will furnish items and perform those services for fulfillment of the Contract as identified in the Bylaws of the Corporation. ARTICLE 2 CONTRACT PERIOD This Contract shall begin at the start of business on October 1, 2018 and terminate at the close of business on September 30, 2019 unless extended by written supplemental agreement duly executed by the Corporation and the City prior to the date of termination. Any work performed or cost incurred prior to the date of this contract and after estabilishment of the Corporation, will be reimbursemented as in the terms of the Contract. ARTICLE 3 CONTRACT PRICE Corporation shall pay City for the services contemplated herein as follows: 1. For all administrative and legal services, the monthly flat fee of $19,885 as identified in Attachment A. External third party legal services will be billed separately as needed. ARTICLE 4 PAYMENT PROCEDURES The Corporation shall pay the City $19,885 per month on the first of each month, begininng on October 1, 2018, during the term of this Agreement. In addition, the Corporation shall pay for all external legal or other professional services invoices pursuant to the Article 3 within thirty (30) days of receipt. ARTICLE 5 OWNERSHIP OF DOCUMENTS All data, basic sketches, charts, calculations, plans, specifications, and other documents created or collected under the terms of this Contract are the exclusive property of the Corporation and shall be furnished to the Corporation upon request. Release of information to the public shall be subject to and in conformance with the Texas Public Information Act. ARTICLE 6 SUSPENSION As authorized by Section 3.08 of the Corporation’s Bylaws, the City may suspend services under this Contract without committing a breach of its terms upon the occurrence of any of the following: (1) The City Manager does not approve of the utilization of any or all services; Page 47 of 74 3 (2) The City Manager feels the City is not receiving reasonable compensation for any or all services; or (3) The performance of a service materially interferes with the other duties of the affected City personnel. ARTICLE 7 TERMINATION The Contract may be terminated before the stated termination date by any of the following conditions: (1) By mutual written agreement and consent; or (2) By either party, upon the failure of the other party to fulfill its obligations as set forth herein; or (3) By either party for reasons of its own and without the consent of the other party, provided that at least thirty (30) days written notice is provided to the other party. The termination of this Contract and payment of an amount in settlement as prescribed in Article 3, above shall extinguish all rights, duties, and obligations of the City and the Corporation under this Contract. ARTICLE 8 INDEMINIFICATION Corporation's Indemnification. The Corporation agrees, to the extent permitted by law, to save harmless the City and its agents, officers and employees from all claims and liability due. to activities of itself, its agents, officers, or employees, performed under this Contract and which are caused by or result from error, omission, or negligent act of the Corporation or of the Corporation’s agents, officers, and employees. The Corporation shall also save harmless the City and its agents, officers, and employees from any and all expense, including, but not limited to, attorney fees which may be incurred by the City in litigation or otherwise resisting said claim or liabilities which may be imposed on the City as a result of such activities by the Corporation, its agents, officers, or employees. This indemnity shall not include claims based upon or arising out of the willful misconduct of City, its agents, officers or employees. Further, this indemnity shall not require payment of a claim by City or its agents, officers or employees as a condition precedent to City's recovery under this provision. City's Indemnification. The City agrees, to the extent permitted by law, to save harmless the Corporation and its agents, officers, and employees from all claims and liability due to activities of itself, its agents, officers, or employees, performed under this Contract and which are caused by or result from error, omission, or negligent act of the City or the City’s agents, officers, or employees. The City shall also save harmless the Corporation from any and all expense, including, but not limited to, attorney fees which my be incurred by the Corporation in litigation or otherwise resisting said claim or liabilities which may be imposed on the Corporation as a result of such activities by the City, its agents, officers, or employees. This indemnity shall not include claims based upon or arising out of the willful misconduct of Corporation, its agents, officers or employees. Further, this Page 48 of 74 4 indemnity shall not require payment of a claim by Corporation or its officers or employees as a condition precedent to Corporation's recovery under this provision. ARTICLE 9 SEVERABILITY In the event any one or more of the provisions contained in this Contract shall for any reason, be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision thereof and this Contract shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. ARTICLE 10 PRIOR CONTRACTS SUPERSEDED This Contract constitutes the sole and only agreement of the parties hereto and supersedes any prior understandings or written or oral contracts between the parties respecting the subject matter defined herein. ARTICLE 11 NOTICES All notices to either party by the other required under this Contract shall be personally delivered or mailed to such party at the following respective addresses: For City: City Manager City of Georgetown P.O. Box 409 Georgetown, Texas 78626 For Corporation: General Manager Georgetown Economic Development Corporation P.O. Box 409 Georgetown, Texas 78626 Page 49 of 74 5 ARTICLE 12 SIGNATORY WARRANTY The undersigned signatory or signatories for the parties hereby represent and warrant that the signatory is an officer of the organization for which be or she has executed this Contract and that he or she has full and complete authority to enter into this Contract on behalf of the firm. The above-stated representations and warranties arc made for the purpose of inducing the other party to enter into this Contract. IN WITNESS HEREOF, the City and the Corporation have executed these presents in duplicate on this the ____ day of_________, 2018. GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION By: Printed Name: Title: ATTEST: By: Printed Name: Title: CITY OF GEORGETOWN By: Printed Name: Dale Ross Title: Mayor ATTEST: By: Printed Name: Shelley Nowling Title: City Secretary APPROVED AS TO FORM: Charles McNabb City Attorney Page 50 of 74 6 Attachment A GEDCO Administrative Allocation 2019 Monthly Economic Development and Legal Departments 238,622 19,885 Total 238,622 19,885 Page 51 of 74 City of Georgetown, Texas Georgetown Economic Development Corporation June 18, 2018 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 -Activity Report -Other Staff Items 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 Activity report Cover Memo Page 52 of 74 Economic Development Activity Report June 2018 Page 53 of 74 Strategic Goal 1 Support existing businesses and industries Page 54 of 74 0 5 10 15 20 25 Ju n 1 7 Ju l 1 7 Au g 1 7 Se p 1 7 Oc t 1 7 No v 1 7 De c 1 7 Ja n 1 8 Fe b 1 8 Ma r 1 8 Ap r 1 8 Ma y 1 8 Business Retention Activity Visits Assistance Requests Touches Page 55 of 74 Additional BRE Activity •Still seeing workforce and facilities as major themes •13 of the active projects are existing businesses (about 30%) •Radiation Detection incentive approved •BRE presentation at Chamber Breakfast Links (May 15th) •Breakfast Bites (May 30) •Manufacturer’s Alliance (June 14) Page 56 of 74 Strategic Goal 2 Enhance targeted recruitment of identified industries Page 57 of 74 0 2 4 6 8 10 12 14 16 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Leads FY17 FY18 Page 58 of 74 0 2 4 6 8 10 12 14 16 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Proposals Submitted FY17 FY18 Page 59 of 74 0 1 2 3 4 5 6 7 8 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Site Visits FY17 FY18 Page 60 of 74 Development, 18 Hot, 13 Warm, 6 Cold, 9 Active Projects Page 61 of 74 FY 2018 Project Wins 1.Wolf Crossing 2.KJ Scientific 3.Radiation Detection Company 4.Westinghouse Road Corporate Center 5.CVS 6.Kinetochem Page 62 of 74 Additional Recruitment Activity •BIO Trade Show (June 4-7) –Following up on leads •Working with available building owners to identify leads for their space Page 63 of 74 Strategic Goal 3 Diversify workforce development and recruitment initiatives Page 64 of 74 Workforce Development Activity •Working with the Texas Workforce Commission on Veteran’s Outreach –Veteran’s Job Fair August 15 •Working with Georgetown Young Professionals to grow the program •Coordinating entrepreneurship and small business outreach with Chamber Page 65 of 74 Strategic Goal 4 Encourage speculative development Page 66 of 74 Speculative Development Activity •Seven of the active projects are speculative development •Also focusing on “shovel-ready” sites •Inner Peace PUD approved Page 67 of 74 Overall Objective Tell our story to a broader local audience Page 68 of 74 Other Activity •WilCo EDP BIOMEDevice Show (April 17-20) •Attended THBI Summit (May 1) •Major Employers Twelve@12 (May 24) •City Downtown Building Sales •Planning Symposium –“Where’s the Workforce?” Page 69 of 74 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$ $ 80,000 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$ KJ Scientific (KJS) Provide a grant of the equipment obtained in the TLCC brand acquisition to KJ Scientific (KJS) to retain the business in Georgetown.The retention equipment grant is for five years with KJS obligated to pay a pro-rated amount of $10,000 per year should they relocate outside of the City.2/27/2018 12/31/2022 50,000.00$ 50,000.00$ Holt Caterpillar GEDCO to provide up to $185,000 infrastructure grant for the cost of connecting to a new wastewater line run to the property by the City. Approved by Council on 1/24/17. 1/24/2017 185,000 Radiation Detection Corporation 2 Grant for Qualified Expenditures and job creation related to the expansion of the existing corporate offices located in Georgetown. 6/12/2018 6/1/2019 150,000$ -$ GEDCO - ACTIVE PERFORMANCE AGREEMENTS STATUS REPORT June 18, 2018 Page 70 of 74 City of Georgetown, Texas Georgetown Economic Development Corporation June 18, 2018 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 71 of 74 City of Georgetown, Texas Georgetown Economic Development Corporation June 18, 2018 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 72 of 74 City of Georgetown, Texas Georgetown Economic Development Corporation June 18, 2018 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 a d etrimental effec t o n nego tiatio ns with third p ers o ns . ITEM SUMMARY: FINANCIAL IMPACT: n/a SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 73 of 74 City of Georgetown, Texas Georgetown Economic Development Corporation June 18, 2018 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. - P ro ject Deliver ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 74 of 74