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Home My WebLink AboutAgenda_GEDCO_07.10.2019Notice of Meeting for the Georgetown E conomic Dev elopment Corporation of the City of Georgetown July 10, 2019 at 4:30 P M at 808 Martin L uther K ing Jr Street, Georgetown, T X 78626 T he C ity of G eorgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require as s is tance in partic ipating at a public meeting due to a disability, as defined under the ADA, reas onable as s is tance, adaptations , or ac commodations will be provided upon request. P leas e c ontact the C ity S ec retary's O ffic e, at leas t three (3) days prior to the sc heduled meeting date, at (512) 930-3652 or C ity Hall at 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626 for additional information; T T Y users route through R elay Texas at 711. Regular Session (T his R egular S es s ion may, at any time, be rec es s ed to c onvene an Exec utive S es s ion for any purpose authorized by the O pen Meetings Act, Texas G overnment C ode 551.) A C ons ideration and approval of the minutes for the G eorgetown Ec onomic Development C orporation Meeting held on Monday Marc h 18, 2019--Hugh Brown, S ec retary B P resentation of the G eorgetown Economic Development C orporation March, April, May and June 2019 financ ial reports and disc ussion regarding the F is cal Year 2018 external audit and C omprehens ive Annual F inanc ial R eport for the C ity and G EDC O . Leigh Wallac e, F inance Manager, G EDC O , F inance Director, C O G . C S ales Tax P resentation-P aul Diaz, Budget Manager D Disc ussion and possible action to recommend the F Y2020 proposed G EDC O budget. P aul Diaz - Budget Manager E Disc ussion and possible action regarding the S taff R eport – David Morgan, C ity Manager • P erformance Agreement R eport • Activity R eport • O ther S taff Items F Ac tion out of Executive S ession E xecutiv e Session In c omplianc e with the O pen Meetings Ac t, C hapter 551, G overnment C ode, Vernon's Texas C odes, Annotated, the items listed below will be dis cus s ed in c los ed session and are s ubjec t to action in the regular s es s ion. G Sec. 551.071: C ON S ULTAT ION WIT H AT TOR N E Y C ons ultation with attorney regarding legal is s ues related to agenda items and other matters in whic h (1) when the governmental body s eeks the advice of its attorney about: (A) pending or c ontemplated litigation; or (B) a settlement offer; or (2) on a matter in whic h the duty of the attorney to the governmental body under the Texas Dis ciplinary R ules of P rofessional C onduc t of the S tate Bar of Texas c learly conflicts with this chapter - C harlie Mc Nabb, C ity Attorney H Section 551.072. D E LIB E R AT ION R E G AR D IN G R E AL P R O P E RT Y Disc ussion and possible action to deliberate the purchas e,exchange, leas e or value of real property for Page 1 of 95 purpos es authorized by the Development C orporation Act whic h dis cus s ion in open s es s ion would have a detrimental effec t on negotiations with third persons . I Section 551.087. D E LIB E R AT ION R E G AR D IN G E C ON O MIC D E VE LOP ME N T N E G O T IAT IO N S. Deliberation regarding commerc ial or financial information that the c orporation has rec eived from a bus iness pros pect that the G eorgetown Economic Development C orporation seeks to have locate, s tay, or expand in or near the territory of the C ity of G eorgetown and with whic h the C orporation is c onducting ec onomic development negotiations ; and/or deliberation regarding the offer of a financial or other inc entive to a busines s prospec t that the C orporation s eeks to have loc ate, stay, or expand in or near the territory of the C ity of G eorgetown. --P rojec t C Adjournment Adjourn meeting Ce rtificate of Posting I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that this Notic e of Meeting was posted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626, a plac e readily acc es s ible to the general public as required by law, on the _____ day of _________________, 2019, at __________, and remained s o posted for at leas t 72 c ontinuous hours prec eding the s cheduled time of said meeting. __________________________________ R obyn Dens more, C ity S ec retary Page 2 of 95 City of Georgetown, Texas Georgetown Economic Development Corporation July 10, 2019 S UB J E C T: C onsideration and approval of the minutes for the G eorgetown Economic Development C orporation Meeting held on Monday March 18, 2019--Hugh Brown, S ecretary IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Amy Mertink, Board Liais on AT TAC H ME N T S: Description Type March 2019 minutes Backup Material Page 3 of 95 GEDCO Minutes March 18, 2019 Page 1 of 2 Minutes of the Meeting of the Georgetown Economic Development Corporation City of Georgetown, Texas March 18, 2019 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday March 18, 2019. Members Present: Tom Menke, Steve Bohnenkamp, Hugh Brown, Valerie Nicholson, Ron Garland Members Absent: Steve Fought, Kevin Cummins Staff Present: David Morgan, City Manager; Laurie Brewer, Assistant City Manager; Michaela Dollar, Director of Economic Development; Conchita Gusman, Business Retention and Expansion Program Manager; Leigh Wallace, Finance Director; Debbie Mitchell, Sr Accountant; Jennifer Schoenradt, Special Events & Marketing Coordinator; Amy Janecka, Finance Admin Guest Present: none MINUTES Call to Order at 4:01 pm A. Consideration and possible action to nominate and elect a President, Vice-President, and Secretary consistent with Section 3.02 of the GEDCO Bylaws— David Morgan, City Manager David Morgan reviewed the duties of each position and then opened the floor for nominations. Motion by Tom Menke to elect Steve Bohnenkamp as President, seconded by Valerie Nicholson. Approved 5-0. Motion by Steve Bohnenkamp to elect Tom Menke as Vice President, seconded by Ron Garland. Approved 5-0. Motion by Ron Garland to elect Hugh Brown as Secretary, seconded by Steve Bohnenkamp. Approved 5-0. B. Review and discussion regarding the Fourth Amended Bylaws for GEDCO approved by the City Council on December 8, 2015 and the Articles of Amendment for GEDCO approved by the City Council on December 8, 2015 related to Board Membership --David Morgan, City Manager David Morgan reviewed the bylaws. C. Review and possible action related to the Day and Time of the GEDCO Board Meetings--David Morgan, City Manager Board discussed the currently standing time for GEDCO meetings. Hugh Brown motioned to keep the meetings on the 3rd Monday of the month at 4pm, seconded by Ron Garland. Approved 5-0. D. Review and discussion regarding the City Council Attendance Policy for Board Members—David Morgan, City Manager David Morgan reviewed the board member attendance policy. E. Consideration and approval of the minutes for the Georgetown Economic Development Corporation Meeting held on Thursday February 21, 2019--David Morgan, City Manager Motion by Valerie Nicholson to approve the February 21, 2019 minutes, seconded by Hugh Brown. Approved 5-0. F. Consideration of the February 28, 2019 financial report. Leigh Wallace, Finance Manager, GEDCO, Finance Director, COG. Leigh Wallace reviewed the financial report. Page 4 of 95 GEDCO Minutes March 18, 2019 Page 2 of 2 G. Discussion and possible action regarding the Staff Report —David Morgan, City Manager - Performance Agreement Report - Activity Report - Other Staff Items Michaela Dollar reviewed the reports. Michaela Dollar and Conchita Gusman answered questions from the Board regarding which businesses are being reached out to and the software systems being used/implemented. H. Discussion and possible action to approve a resolution of the Georgetown Economic Development Corporation authorizing the bylaws of the corporation, clarifying the roles of the General Manager and Finance Manager and authorizing those individuals to delegate duties and responsibilities.--Leigh Wallace, Finance Director, COG, Finance Manager, GEDCO. Leigh Wallace explained the need to amend the bylaws and how this amendment would make the bylaws consistent with city policies. Leigh answered questions from the board regarding any future changes to the city’s policies and how the GEDCO bylaws would automatically be updated as changes are made. Motion to approve by Hugh Brown, seconded by Ron Garland. Approved 5-0. -----GEDCO entered into Executive Session at 5:08 p.m. and returned to Regular Session at 5:18 p.m.----- I. Action out of Executive Session. No action out of Executive Session Motion by Tom Menke to adjourn at 5:19, seconded by Ron Garland. Approved 5-0. Attest: Hugh Brown, Secretary Steve Bohnenkamp, President Page 5 of 95 City of Georgetown, Texas Georgetown Economic Development Corporation July 10, 2019 S UB J E C T: P res entation of the G eorgetown Ec onomic Development C orporation Marc h, April, May and June 2019 financial reports and dis cus s ion regarding the F isc al Year 2018 external audit and C omprehensive Annual F inancial R eport for the C ity and G EDC O . Leigh Wallace, F inanc e Manager, G EDC O , F inanc e Direc tor, C O G . IT E M S UMMARY: I. T he Bylaws of G EDC O (Artic le VI, S ection 6.02) require the F inance Manager to pres ent the monthly financ ial reports to the Board. Inc luded in thes e reports will be: • F inancial reports • S ales Tax revenues • Monthly expenditures • Any other relevant financ ial information S ales tax revenue is two months in arrears ; therefore the revenues reflect only the amount rec eived, not actually earned, as of the report date. A report on payments made to vendors in the month of Marc h, April and June is also inc luded. I I. T he F isc al Year 2018 external audit was c ompleted by Weaver & Tidwell. G EDC O is a c onsidered a “Dis cretely P res ented C omponent Unit” of the C ity on the G overnment-Wide F inanc ial S tatements and is included in the audit. S taff will dis cus s the res ults of the audit and pres ent the financial s tatements for G EDC O . F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Leigh Wallace, F inanc e Direc tor AT TAC H ME N T S: Description Type Financial Report Backup Material Page 6 of 95 GEDCO Board Meeting Date July 10, 2019 Item No. __________ GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM COVER SHEET _________________________________________________________________ SUBJECT: Presentation of the Georgetown Economic Development Corporation March, April, May and June 2019 financial reports and discussion regarding the Fiscal Year 2018 external audit and Comprehensive Annual Financial Report for the City and GEDCO. Leigh Wallace, Finance Manager, GEDCO, Finance Director, COG. _________________________________________________________________ ITEM SUMMARY: I.The Bylaws of GEDCO (Article VI, Section 6.02) 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 March, April and June is also included. II.The Fiscal Year 2018 external audit was completed by Weaver & Tidwell. GEDCO is a considered a “Discretely Presented Component Unit” of the City on the Government-Wide Financial Statements and is included in the audit. Staff will discuss the results of the audit and present the financial statements for GEDCO. ATTACHMENTS: Monthly Financial Report Sales Tax History Disbursement Report Independent Auditor’s Report Audited Year-End Financials •Statement of Net Position •Statement of Activities SUBMITTED BY: Leigh Wallace Finance Manager, GEDCO Finance Director, COG Page 7 of 95 APPROVED BUDGET CURRENT PERIOD YEAR TO DATE (W/ENCUMB) YEAR-END PROJECTION BEGINNING FUND BALANCE 6,853,073 6,853,073 OPERATING REVENUES Interest 40,300 - 116,685 40,300 Sales Tax 1,768,275 160,468 1,064,972 1,768,275 OPERATING REVENUES Total 1,808,575 160,468 1,181,657 1,808,575 OPERATING EXPENDITURES Joint Services Allocation 238,622 19,885 178,967 238,622 Miscellaneous Expense 50 - - 50 Promotional & Marketing Program 100,000 4,500 73,843 100,000 Special Services 30,000 - - 30,000 Travel & Training 500 - - 500 OPERATING EXPENDITURES Total 369,172 24,385 252,810 369,172 TOTAL NET OPERATIONS 1,439,403 136,083 928,847 1,439,403 NON-OPERATING EXPENDITURES Principal Reduction 80,568 - - 80,568 Debt Service 205,069 - 42,534 205,069 Interest Expense 23,157 - - 23,157 Atmos Energy 146,096 - - 146,096 DisperSol 50,000 - 30,000 50,000 Economic Development Projects -Undetermined 7,000,517 - - 7,000,517 Holt Cat 185,000 - - 185,000 Radiation Detection Company 150,000 - - 150,000 NON-OPERATING EXPENDITURES Total 7,840,407 - 72,534 7,840,407 TOTAL NET NON-OPERATIONS (7,840,407) - (72,534) (7,840,407) EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (6,401,004) 136,083 856,313 (6,401,004) ENDING FUND BALANCE 452,069 452,069 RESERVES Contingency 442,069 442,069 RESERVES Total 442,069 - - 442,069 AVAILABLE FUND BALANCE 10,000 10,000 Georgetown Economic Development Corporation Fund Year-End Projection to Approved: June FY2019 Page 8 of 95 As of June 30, 2019 Georgetown Economic Development Corporation Sales Tax History Variance % Var. MONTH [a]2014-15 2015-16 2016-17 2017-18 2018-19 To FY 17 To FY 17 October 98,094$ 106,050$ 114,748$ 124,478$ 159,033$ 34,555$ 27.76% November 102,891 112,766 125,214 127,063 135,079 8,016$ 6.31% December 143,774 148,200 160,542 162,940 171,066 8,126$ 4.99% January 87,695 96,563 110,006 115,291 126,985 11,694$ 10.14% February 89,107 108,117 105,556 133,797 134,421 624$ 0.47% March 123,951 133,492 137,301 158,112 168,168 10,056$ 6.36% April 102,671 108,977 117,261 135,036 155,962 20,926$ 15.50% May 95,699 120,418 125,188 148,761 June 130,589 142,767 151,484 157,313 July 108,994 119,534 154,889 143,616 August 102,888 132,582 122,847 142,154 September 125,201 135,378 143,897 154,864 Total 1,311,554$ 1,464,844$ 1,568,933$ 1,703,425$ 1,050,714$ YTD 748,183 814,165 870,628 956,717 1,050,714 93,997 9.82%[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 2016-17 2017-18 2018-19 Page 9 of 95 GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION CHECKS WRITTEN REPORT FOR THE MONTH OF JUNE 2019 • Promotional and Marketing Programs: - Gazelle.AI, Inc. $ 4,500.00 Page 10 of 95 APPROVED BUDGET CURRENT PERIOD YEAR TO DATE (W/ENCUMB) YEAR-END PROJECTION BEGINNING FUND BALANCE 6,853,073 6,853,073 OPERATING REVENUES Interest 40,300 - 100,572 40,300 Sales Tax 1,768,275 169,893 904,504 1,768,275 OPERATING REVENUES Total 1,808,575 169,893 1,005,076 1,808,575 OPERATING EXPENDITURES Joint Services Allocation 238,622 19,885 159,081 238,622 Miscellaneous Expense 50 - - 50 Promotional & Marketing Program 100,000 3,439 69,343 100,000 Special Services 30,000 - - 30,000 Travel & Training 500 - - 500 OPERATING EXPENDITURES Total 369,172 23,324 228,424 369,172 TOTAL NET OPERATIONS 1,439,403 146,569 776,652 1,439,403 NON-OPERATING EXPENDITURES Principal Reduction 80,568 - - 80,568 Debt Service 205,069 - 42,534 205,069 Interest Expense 23,157 - - 23,157 Atmos Energy 146,096 - - 146,096 DisperSol 50,000 - 30,000 50,000 Economic Development Projects -Undetermined 7,000,517 - - 7,000,517 Holt Cat 185,000 - - 185,000 Radiation Detection Company 150,000 - - 150,000 NON-OPERATING EXPENDITURES Total 7,840,407 - 72,534 7,840,407 TOTAL NET NON-OPERATIONS (7,840,407) - (72,534) (7,840,407) EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (6,401,004) 146,569 704,117 (6,401,004) ENDING FUND BALANCE 452,069 452,069 RESERVES Contingency 442,069 442,069 RESERVES Total 442,069 - - 442,069 AVAILABLE FUND BALANCE 10,000 10,000 Georgetown Economic Development Corporation Fund Year-End Projection to Approved: May FY2019 Page 11 of 95 GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION CHECKS WRITTEN REPORT FOR THE MONTH OF MAY 2019 • Promotional and Marketing Programs: - Costar Realty Information, Inc. $ 3,439.33 Page 12 of 95 APPROVED BUDGET CURRENT PERIOD YEAR TO DATE (W/ENCUMB) YEAR-END PROJECTION BEGINNING FUND BALANCE 6,853,073 6,853,073 OPERATING REVENUES Interest 40,300 15,331 100,572 40,300 Sales Tax 1,768,275 138,678 734,611 1,768,275 OPERATING REVENUES Total 1,808,575 154,009 835,183 1,808,575 OPERATING EXPENDITURES Joint Services Allocation 238,622 19,885 139,196 238,622 Miscellaneous Expense 50 - - 50 Promotional & Marketing Program 100,000 2,475 65,904 100,000 Special Services 30,000 - - 30,000 Travel & Training 500 - - 500 OPERATING EXPENDITURES Total 369,172 22,360 205,100 369,172 TOTAL NET OPERATIONS 1,439,403 131,649 630,083 1,439,403 NON-OPERATING EXPENDITURES Principal Reduction 80,568 - - 80,568 Debt Service 205,069 - 42,534 205,069 Interest Expense 23,157 - - 23,157 Atmos Energy 146,096 - - 146,096 DisperSol 50,000 - 30,000 50,000 Economic Development Projects -Undetermined 7,000,517 - - 7,000,517 Holt Cat 185,000 - - 185,000 Radiation Detection Company 150,000 - - 150,000 NON-OPERATING EXPENDITURES Total 7,840,407 - 72,534 7,840,407 TOTAL NET NON-OPERATIONS (7,840,407) - (72,534) (7,840,407) EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (6,401,004) 131,649 557,549 (6,401,004) ENDING FUND BALANCE 452,069 452,069 RESERVES Contingency 442,069 442,069 RESERVES Total 442,069 - - 442,069 AVAILABLE FUND BALANCE 10,000 10,000 Georgetown Economic Development Corporation Fund Year-End Projection to Approved: Apr FY2019 Page 13 of 95 GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION CHECKS WRITTEN REPORT FOR THE MONTH OF APRIL 2019 • Promotional and Marketing Programs: - Flyer View Group, LLC $ 2,475.00 Page 14 of 95 APPROVED BUDGET CURRENT PERIOD YEAR TO DATE (W/ENCUMB) YEAR-END PROJECTION BEGINNING FUND BALANCE 6,853,073 6,853,073 OPERATING REVENUES Interest 40,300 15,608 85,241 40,300 Sales Tax 1,768,275 123,824 595,933 1,768,275 OPERATING REVENUES Total 1,808,575 139,432 681,174 1,808,575 OPERATING EXPENDITURES Joint Services Allocation 238,622 19,885 119,311 238,622 Miscellaneous Expense 50 - - 50 Promotional & Marketing Program 100,000 - 63,429 100,000 Special Services 30,000 - - 30,000 Travel & Training 500 - - 500 OPERATING EXPENDITURES Total 369,172 19,885 182,740 369,172 TOTAL NET OPERATIONS 1,439,403 119,547 498,434 1,439,403 NON-OPERATING EXPENDITURES Principal Reduction 80,568 - - 80,568 Debt Service 205,069 - 42,534 205,069 Interest Expense 23,157 - - 23,157 Atmos Energy 146,096 - - 146,096 DisperSol 50,000 30,000 30,000 50,000 Economic Development Projects -Undetermined 7,000,517 - - 7,000,517 Holt Cat 185,000 - - 185,000 Radiation Detection Company 150,000 - - 150,000 NON-OPERATING EXPENDITURES Total 7,840,407 30,000 72,534 7,840,407 TOTAL NET NON-OPERATIONS (7,840,407) (30,000) (72,534) (7,840,407) EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (6,401,004) 89,547 425,900 (6,401,004) ENDING FUND BALANCE 452,069 7,278,973 452,069 RESERVES Contingency 442,069 442,069 RESERVES Total 442,069 - - 442,069 AVAILABLE FUND BALANCE 10,000 7,278,973 10,000 Georgetown Economic Development Corporation Fund Year-End Projection to Approved: Mar FY2019 Page 15 of 95 GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION CHECKS WRITTEN REPORT FOR THE MONTH OF MARCH 2019 • Capital Improvement Project: - Dispersol Technologies, LLC $ 30,000.00 Page 16 of 95 Austin | Conroe | Dallas | Fort Worth | Houston Los Angeles | Midland | New York City | San Antonio Weaver and Tidwell, L.L.P. 1601 South MoPac Expressway, Suite D250 | Austin, Texas 78746 Main: 512.609.1900 | Fax: 512.609.1911 CPAs AND ADVISORS | WEAVER.COM 3 Independent Auditor’s Report To the Honorable Mayor and 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, 2018, 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. Page 17 of 95 The Honorable Mayor and Members of the City Council City of Georgetown, Texas 4 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, 2018, 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. Emphasis of Matter As discussed in Note 1 to the financial statements, the City adopted the provisions of Government Accounting Standards Board Statement No. 75, Accounting and Reporting for Postemployment Benefits Other than Pensions, during the year ended September 30, 2018. Our opinions are not modified with respect to this matter. 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 schedules, and Modified Approach for Street Infrastructure Capital Assets as listed in the table of contents 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 generallys 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. Page 18 of 95 The Honorable Mayor and Members of the City Council City of Georgetown, Texas 5 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 15, 2019 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, 15, 2019 Page 19 of 95 City of Georgetown, Texas Statement of Net Position September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 22 Component Unit Georgetown Economic Governmental Business-type Development Activities Activities Total Corporation Cash and cash equivalents 50,445,077$ 33,804,828$ 84,249,905$ 6,882,951$ Cash and cash equivalents - restricted - 2,702,793 2,7 02,793 - Investments 57,639,767 - 57,639,767 - Investments - restricted - 52,55 8,669 52,558,669 - Prepaid items 429,078 9,168,894 9,5 97,972 - Accounts receivable Services (net of allowance for uncollectibles)- 19,813,376 19,813,376 - Other 11,867,201 1,603,028 13,470,229 287,821 Internal balances - - - - Inventories 1,054,891 3,095,031 4,1 49,922 - Long-term note receivable 2,952,633 671,472 3,624,105 - Capital assets Land 42,240,043 4,988,858 47,228,901 - Streets 211,872,450 - 211,872,450 - Building and improvements 161,364,618 19,657,357 181,021,975 139,740 Machinery and equipment 54,514,051 3,300,617 57,814,668 - Distribution system - 591,423,059 591,423,059 - Construction in progress 50,807,447 12,657,860 63,465,307 - Accumulated depreciation (71,578,275) (166,154,491) (237,732,766) - Total assets 573,608,981 589,291,351 1,162,900,332 7,310,512 DEFERRED OUTFLOWS OF RESOURCES Deferred outflow related to pension 7,061,808 1,877,190 8,938,998 - Deferred outflow related to OPEB 243,945 - 243,945 - Deferred charge on refunding 1,872,612 1,059,383 2,931,995 - Total deferred outflows of resources 9,178,365 2,936,57 3 12,114,938 - LIABILITIES Accounts payable 11,075,352 12,374,236 23,449,588 157,905 Unearned revenue 3,721,472 239,130 3,960,602 - Unapplied credits 245,401 - 245,401 - Accrued interest 899,298 481,262 1,380,560 - Payable from restricted assets Construction contracts and retainages - 699,749 699,749 - Customer deposits payable from restricted assets - 1,389,461 1,389,461 - Noncurrent liabilities, due within one year 15,245,613 8,209,108 23,454,721 200,568 Noncurrent liabilities, due in more than one year Accrued employee benefits 4,026,975 629,106 4,656,081 - Net pension liability 13,664,869 3,632,433 17,297,302 - Other post employment benefits 3,273,304 - 3,273,304 - Long-term debt 194,356,372 103,144,357 297,500,729 3,348,969 Total liabilities 246,508,656 130,798,842 377,307,498 3,707,442 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pension 4,744,253 1,261,131 6,005,384 - NET POSITION Net investment in capital assets 276,645,061 361,380,352 638,025,413 139,740 Restricted for Debt service 1,487,048 - 1,487,048 - Specific programs 6,190,516 - 6,190,516 - Unrestricted 47,211,812 98,787,599 145,999,411 3,463,330 T OTAL NET POSITION 331,534,437$ 460,167,951$ 791,702,388$ 3,603,070$ Primary Government ASSETS Page 20 of 95 City of Georgetown, Texas Statement of Activities For the Fiscal Year Ended September 30, 2018 The Notes to the Financial Statements are an integral part of this statement. 23 Component Unit Georgetown Economic Charges for Operating Grants Capital Grants Governmental Business-type Development Expenses Services & Contributions & Contributions Activities Activities Total Corporation PRIMARY GOVERNMENT Governmental activities Culture / recreation 13,151,439$ 3,255,788$ 990,656$ 12,795$ (8,892,200)$ -$ (8,892,200)$ Development 3,356,356 3,169,625 114,920 1,643,1 60 1,571,349 - 1,571,349 Fire 17,642,881 4,538,006 - - (13,1 04,875) - (13,104,875) General government 4,989,778 365,766 405,853 1,581,763 (2,636,396) - (2,636,396) Police 17,174,693 1,004,922 49,527 - (16,120,244) - (16,120,244) Streets 12,773,454 - - 12,242,407 (531,047) - (531,047) Environmental services 8,246,680 8,782,764 - - 536,084 - 536,084 Interest on long-term debt 7,172,983 - - - (7,172,983) - (7,172,983) Total governmental activities 84,508,264 21,116,871 1,560,956 15,480,125 (46,350,312) - (46,350,312) Business-type activities Electric 77,960,552 73,419,224 - 3,286,880 - (1,254,448) (1,254,448) Water 42,004,858 65,542,222 - 7,011,801 - 30,549,165 30,549,165 Airport 3,675,044 3,500,244 - 689,983 - 515,183 515,183 Stormwater 3,7 07,981 3,571,582 - 768,5 81 - 632,182 632,1 82 Total business-type activities 127,348,435 146,033,272 - 11,757,245 - 30,442,082 30,442,082 TOTAL PRIMARY GOVERNMENT 211,856,699$ 167,150,143$ 1,560,956$ 27,237,370$ (46,350,312) 30,442,082 (15,908,230) COMPONENT UNIT - GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION 992,163$ 100,991$ -$ -$ (891,172)$ GENERAL REVENUES Property tax 27,118,902 - 27,118,902 - Sales tax 25,036,952 - 25,036,952 1,703,425 Taxes - other 1,663,994 - 1,663,994 - Franchise taxes 5,274,758 - 5,274,758 - Investment income 1,518,679 1,454,767 2,973,446 103,232 Other - - - - Transfers 9,259,037 (9,259,037) - - Total general revenues and transfers 69,872,322 (7,804,270) 62,068,052 1,806,657 Change in net position 23,5 22,010 22,637,812 46,15 9,822 915,485 Net position, beginning of the year 308,012,427 437,530,139 745,542,566 2,687,585 NET POSITION, END OF THE YEAR 331,534,437$ 460,167,951$ 791,702,388$ 3,603,070$ Net (Expense) Revenue and Program Revenues Changes in Net Position Primary Government Functions/Programs Page 21 of 95 City of Georgetown, Texas Georgetown Economic Development Corporation July 10, 2019 S UB J E C T: S ales Tax P res entation-P aul Diaz, Budget Manager IT E M S UMMARY: R eview of the sales tax methodology and projections F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: P aul Diaz, Budget Manager AT TAC H ME N T S: Description Type Pres entation Pres entation Page 22 of 95 FY2020 Annual Budget Sales Tax Methodology Page 23 of 95 FY2020 Annual Budget City Sales Tax Breakdown Page 24 of 95 FY2020 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 25 of 95 FY2020 Annual Budget Page 26 of 95 FY2020 Annual Budget Page 27 of 95 FY2020 Annual Budget Page 28 of 95 FY2020 Annual Budget Connection via PowerPivot 1014568977 Downtown TIRZ Paul’s Pizza Shack NAICS Code 725050 = Food Page 29 of 95 FY2020 Annual Budget PowerPivot Slices Page 30 of 95 FY2020 Annual Budget Page 31 of 95 FY2020 Annual Budget Page 32 of 95 FY2020 Annual Budget Forecasting Tools •Different trend analysis –Regression types –Different timeframes •Correlation Models –Aggregate –Sector Based Page 33 of 95 FY2020 Annual Budget Consistency in Data Page 34 of 95 FY2020 Annual Budget Page 35 of 95 FY2020 Annual BudgetAnother Way to Think about this Concept Page 36 of 95 FY2020 Annual Budget Page 37 of 95 FY2020 Annual Budget Sector Based Correlation Sector Percentage Multipler Two Year Trend Aggregate Forecast Retail 46%2.174 11,951,161 25,980,785 Information 8%12.500 1,996,126 24,951,571 Food 11%9.091 2,969,567 26,996,068 Sector Percentage Multipler Three Year Trend Aggregate Forecast Retail 46%2.174 12,201,161 26,524,264 Information 8%12.500 2,046,576 25,582,196 Food 11%9.091 2,969,567 26,996,068 Sector Percentage Multipler Four Year Trend Aggregate Forecast Retail 46%2.174 12,021,161 26,132,959 Information 8%12.500 2,016,626 25,207,821 Food 11%9.091 2,924,567 26,586,977 Median 26,132,959 Average 26,106,523 STD 700,867 Page 38 of 95 FY2020 Annual Budget Multi-Level Analysis •Georgetown Data •Austin MSA region •Top Twenty cities in Texas •Regions in Texas •All Cities in Texas Page 39 of 95 FY2020 Annual Budget Scorecard Fiscal Actual Projected Variance Variance % FY2015 20,984,850 21,000,000 (15,150) -0.07% FY2016 23,437,496 22,900,000 537,496 2.35% FY2017 25,102,936 25,300,000 (197,064) -0.78% FY2018 27,254,787 27,100,000 154,787 0.57% Total 96,780,070 96,300,000 480,070 0.50% Page 40 of 95 FY2020 Annual Budget What We Are Seeing •All four year end models are all in agreement. –Aggregate Linear 6M 29,931,760 –Aggregate Linear 12 M 29,938,399 –Aggregate Linear 18M 29,954,560 –Correlation 30,052,209 –Spread of only $120,000 (5.72% -6.15% over budget) –Standard deviation of less than $49,000. Page 41 of 95 FY2020 Annual Budget Forecast •FY2019: $29,750,000 •FY2020: $31,750,000 General 16,734,375 17,859,375 Streets 3,718,750 3,968,750 GEDCO 1,859,375 1,984,375 GTEC 7,437,500 7,937,500 29,750,000 31,750,000 Page 42 of 95 FY2020 Annual Budget Page 43 of 95 City of Georgetown, Texas Georgetown Economic Development Corporation July 10, 2019 S UB J E C T: Dis cus s ion and pos s ible ac tion to rec ommend the F Y2020 propos ed G EDC O budget. P aul Diaz - Budget Manager IT E M S UMMARY: T he proposed F Y2020 G EDC O budget inc ludes projects identified for funding along with adminis trative costs and total funding requirements . T he proposed F Y2020 budget identifies revenues and s pecific projec ts planned for the upcoming year, as well as c os ts as s ociated with past debt issuanc es . • P ropos ed F Y2020 Budget P resentation • P ropos ed F Y2020 Budget F und S chedule • P ropos ed F Y2020 R evenue Detail • P ropos ed F Y2020 Expenditure Detail • P ropos ed F Y2020 Adminis trative C ontract C ouncil is sc heduled to ac t on all c omponents of the F Y2020 budget in S eptember 2019. F IN AN C IAL IMPAC T: S ee attac hments S UB MIT T E D B Y: P aul Diaz, Budget Manager AT TAC H ME N T S: Description Type Fund Schedule Backup Material Revenues Backup Material Expenses Backup Material Contract Backup Material Pres entation Pres entation Page 44 of 95 Tuesday, July 2, 2019 9:10:04 AM FY2018 Actuals FY2019 Budget FY2019 Projected FY2020 Base Budget FY2020 Changes FY2020 Budget Beginning Fund Balance 5,979,896 6,853,073 6,972,637 8,018,546 - 8,018,546 Revenues FY2018 Actuals FY2019 Budget FY2019 Projected FY2020 Base Budget FY2020 Changes FY2020 Budget Sales Tax 1,703,425 1,768,275 1,859,375 1,984,375 - 1,984,375 Interest 103,233 40,300 119,000 76,000 - 76,000 Other 229,081 - - - - - Grand Total 2,035,739 1,808,575 1,978,375 2,060,375 - 2,060,375 Expenses FY2018 Actuals FY2019 Budget FY2019 Projected FY2020 Base Budget FY2020 Changes FY2020 Budget ED Projects 349,650 7,531,613 255,000 8,692,104 - 8,692,104 Debt Service 329,301 308,794 308,794 311,880 - 311,880 Allocations 221,328 238,622 238,622 244,771 - 244,771 Operations 143,581 130,550 130,050 130,550 - 130,550 Grand Total 1,043,860 8,209,579 932,466 9,379,305 - 9,379,305 FY2018 Actuals FY2019 Budget FY2019 Projected FY2020 Base Budget FY2020 Changes FY2020 Budget Ending Fund Balance 6,971,775 452,069 8,018,546 699,616 - 699,616 CAFR Adjustment 862 - - - - - Contingency Reserves 425,856 442,069 442,069 489,298 - 489,298 Debt Service Reserve - - - 210,318 - 210,318 Available Fund Balance 6,546,781 10,000 7,576,477 0 - 0 GEDCO - 420 Page 45 of 95 Revenues Row Labels GL Mapping FY2018 Actuals FY2019 Budget FY2019 Projected FY2020 Base Budget FY2020 Changes FY2020 Budget 420-4-0000-49-108 TRANSFER IN, UTILITIES Other - - - - - - 420-4-0901-40-105 SALES TAX Sales Tax 1,703,425 1,768,275 1,859,375 1,984,375 - 1,984,375 420-4-0901-42-100 ALLOCATED INTEREST Interest (7) - - - - - 420-4-0901-42-110 DIRECT INTEREST Interest 103,124 40,000 115,000 75,000 - 75,000 420-4-0901-42-111 INTEREST - 2016 BONDS Interest 116 300 4,000 1,000 - 1,000 420-4-0901-44-105 MISCELLANEOUS REVENUE Other 60,991 - - - - 420-4-0901-44-301 CONTRIBUTION FROM CITY Other - - - - - 420-4-0901-44-361 SALE OF PROPERTY Other 128,090 - - - - 420-4-0901-44-362 GAIN/LOSS ON SALE OF ASSETS Other - - - - - 420-4-0901-45-102 LEASE REVENUE Other 40,000 - - - - 420-4-0901-47-100 BOND PROCEEDS Other - - - - - 420-4-0901-47-105 PREMIUM ON BOND ISSUANCE Other - - - - - 2,035,739 1,808,575 1,978,375 2,060,375 - 2,060,375 Page 46 of 95 Expenses Row Labels GL Mapping FY2018 Actuals FY2019 Budget FY2019 Projected FY2020 Base FY2020 Added to Base FY2020 Base Budget FY2020 Department Requests FY2020 Department ReOrg FY2020 Changes FY2020 Budget 420-9-0980-90-001 ECONOMIC DEVEL PROJECTS ED Projects - 7,000,517 - 4,017,104 4,017,104 - 4,017,104 420-6-0901-XX-XXX PROJECT DELIVER ED Projects - 1,150,000 1,150,000 - 1,150,000 420-6-0901-XX-XXX PROJECT WAFER ED Projects - 900,000 900,000 - 900,000 420-6-0901-XX-XXX PROJECT GEAR ED Projects - 650,000 650,000 - 650,000 420-6-0901-XX-XXX CONFIDO ED Projects - 600,000 600,000 - 600,000 420-6-0901-XX-XXX GEORGETOWN DEV. LLC ED Projects - 500,000 500,000 - 500,000 420-6-0901-XX-XXX WBW DEVELOPMENT ED Projects - 290,000 290,000 - 290,000 420-6-0901-XX-XXX SEDRO CROSSING ED Projects - 250,000 250,000 - 250,000 420-5-0902-51-950 JOINT SERVICES ALLOCATION Allocations 221,328 238,622 238,622 244,771 244,771 - 244,771 420-6-0901-60-001 TRANS OUT- DEBT SERVICE P&I Debt Service 212,688 205,069 205,069 207,669 207,669 - 207,669 420-9-0980-90-030 HOLT CAT ED Projects - 185,000 - 185,000 185,000 - 185,000 420-9-0980-90-022 RADIATION DETECTION COMPANY ED Projects - 150,000 - 150,000 150,000 - 150,000 420-5-0902-51-350 PROMO & MKTING PROGRAMS Operations 76,942 100,000 100,000 100,000 100,000 - 100,000 420-6-0901-60-100 WASTEWATER LOAN-PRINCIPAL RED Debt Service 90,485 80,568 80,568 83,695 83,695 - 83,695 420-5-0902-51-330 SPECIAL SERVICES Operations 55,648 30,000 30,000 30,000 30,000 - 30,000 420-6-0901-60-200 WASTEWATER INTEREST EXPENSE Debt Service 26,128 23,157 23,157 20,516 20,516 - 20,516 420-5-0902-51-630 TRAVEL & TRAINING Operations - 500 - 500 500 - 500 420-5-0902-51-130 ADS, NOTICES, RECORDING FEES Operations - 50 50 50 50 - 50 420-5-0000-51-981 TRANSFER OUT -STORMWATER Operations - - - - - 420-5-0000-51-986 TRANSFER OUT - IT Operations - - - - - 420-5-0000-51-993 TRANSFER OUT - ISF Operations - - - - - 420-5-0000-51-994 TRANS TO FLEET-VEHICLE PURCH Operations - - - - - 420-5-0000-51-998 TRANSFER OUT - UTILITIES Operations - - - - - 420-5-0902-51-110 OFFICE SUPPLIES Operations - - - - - 420-5-0902-51-310 CONTRACT & LEASES Operations - - - - - 420-5-0902-51-333 LEGAL FEES Operations - - - - - 420-5-0902-51-340 CONTRACTS - OTHER Operations 10,991 - - - - 420-9-0980-90-012 TEXAS LIFE SCIENCES ED Projects 139,740 - - - - 420-5-0902-51-430 UTILITIES Operations - - - - - 420-5-0902-51-900 DEPRECIATION Operations - - - - - 420-5-0902-51-970 ADMINISTRATION ALLOCATION Allocations - - - - - 420-6-0901-60-002 TRANSFER OUT, JNT SVCS Operations - - - - - 420-6-0901-60-003 TRANSFER OUT, UTILITIES Operations - - - - - 420-6-0901-60-300 BOND ISSUANCE COSTS Debt Service - - - - - 420-9-0902-90-000 CAPITAL EXPENSES ED Projects - - - - - 420-9-0980-90-002 LOADING DOCK ED Projects - - - - - 420-9-0980-90-003 SMITH BRANCH W.FORK INT ED Projects - - - - - 420-9-0980-90-004 VISTA SOLUTIONS ED Projects - - - - - 420-9-0980-90-005 ORTHOPEUTICS, LC ED Projects - - - - - 420-9-0980-90-006 LOADING DOCK ED Projects - - - - - 420-9-0980-90-007 TEXAS OUTDOOR POWER EQUIP ED Projects - - - - - 420-9-0980-90-008 AIRBORN ED Projects - - - - - 420-9-0980-90-009 OLD FIRE 1 TRUCK BAYS REDEV ED Projects - - - - - 420-9-0980-90-010 RINGDALE ED Projects - - - - - 420-9-0980-90-011 RADIX ED Projects - - - - - 420-9-0980-90-026 DISPERSOL TECHNOLOGIES, LLC ED Projects 40,000 50,000 30,000 - - - 420-9-0980-90-013 LONE STAR CIRCLE OF CARE ED Projects - - - - - 420-9-0980-90-014 GEORGETOWN WINERY ED Projects - - - - - 420-9-0980-90-015 GRAPE CREEK WINERY ED Projects - - - - - 420-9-0980-90-016 CITY OFFICE BUILDING PURCHASE ED Projects - - - - - Page 47 of 95 420-9-0980-90-017 TLCC: DIFUSION TECH ED Projects - - - - - 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 - - - - - 420-9-0980-90-023 FREEPORT EXEMPTION STUDY ED Projects - - - - - 420-9-0980-90-024 MOLECULAR TEMPLATES INC ED Projects - - - - - 420-9-0980-90-025 TASUS ED Projects - - - - - 420-9-0980-90-027 CATALYST COMMERCIAL, INC ED Projects 16,005 - - - - 420-9-0980-90-028 RENTSCHLER BREWING, LLC ED Projects - - - - - 420-9-0980-90-029 AVALANCHE CONSULTING, INC ED Projects - - - - - 420-9-0980-90-031 ATMOS ENERGY ED Projects 153,905 146,096 225,000 - - - 1,043,860 8,209,579 932,466 9,379,305 - 9,379,305 - - - 9,379,305 Page 48 of 95 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 808 Martin Luther King Jr., 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 49 of 95 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, 2019 and terminate at the close of business on September 30, 2020 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 $21,243 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 $21,243 per month on the first of each month, begininng on October 1, 2019, 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: Page 50 of 95 3 (1) The City Manager does not approve of the utilization of any or all services; (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 indemnity shall not require payment of a claim by Corporation or its officers Page 51 of 95 4 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 52 of 95 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_________, 2019. 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: Robyn Densomre Title: City Secretary APPROVED AS TO FORM: Charles McNabb City Attorney Page 53 of 95 6 Attachment A Row Labels GL Mapping FY2018 Actuals FY2019 Budget FY2019 Projected FY2020 Budget 420-5-0902-51-950 JOINT SERVICES ALLOCATION Allocations 221,328 238,622 238,622 254,921 Page 54 of 95 FY2020 Annual Budget GEDCO Budget Page 55 of 95 FY2020 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 56 of 95 FY2020 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 57 of 95 FY2020 Annual Budget Revenues •Sales tax is projected to end FY2019 at $1,859,375, an increase of 5% over the FY2019 Budget •FY2020 Sales Tax is projected to be $1,984,375, an increase of 6.7% over the year- end projection •Interest revenue is budgeted at $76,000 in FY2020. Page 58 of 95 FY2020 Annual Budget Expenditures •Operation expenses total $130,550. –$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 $207,669 for Rivery –Repayment to the Water Fund for $104,211 Page 59 of 95 FY2020 Annual Budget Expenditures •Existing projects –Radiation Detection Co –Holt Cat •New Projects in FY2020 –Sedro, Confido, Georgetown Dev, WBW –“Gear,” “Deliver,” and “Wafer” •Funding available for undetermined projects –$ 4 million •Contingency Reserves –Per Fiscal and Budgetary Policy = 25% of sales tax •$489,298 Page 60 of 95 FY2020 Annual Budget Administrative Contract •Joint Service Administrative Contract –$254,921 for the Joint Service contract includes services of Economic Development, Legal, and Finance Administration –6.83% increase for personnel increases, health insurance, technology costs. Page 61 of 95 FY2020 Annual Budget Conclusion •Discussion •Recommendation to Council Page 62 of 95 City of Georgetown, Texas Georgetown Economic Development Corporation July 10, 2019 S UB J E C T: Dis cus s ion and pos s ible ac tion regarding the S taff R eport – David Morgan, C ity Manager • P erformanc e Agreement R eport • Ac tivity R eport • O ther S taff Items IT E M S UMMARY: T he G EDC O Board has requested that staff provide a project progres s and status report at eac h meeting on all of the ac tive projec ts dis cus s ed by the Board. F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: David Morgan, C ity Manager AT TAC H ME N T S: Description Type Active Projects update Backup Material Activity Report Pres entation Page 63 of 95 GEDCO - AGREEMENTS STATUS REPORT July 10, 2019 Name Description Start Date (Council Approved) End Date $ Encumbered $ Expended 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 DisperSol Grant for job creation related to expansion of manufacturing facilities. Five incentive payments totaling $150K have been expended so far with one remaining. 10/16/2014 2/15/2019 $ 250,000 $ 150,000 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 $ 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 job creation and reimbursement of up to $150,000 Qualified Expenditures related to the expansion of the existing HQ corporate offices located in Georgetown. Expired, not used by company. 6/13/2018 6/1/2019 $ 150,000 $ - Georgetown Development I, LLC Infrastructure reimbursement grant of $500,000 for qualified expenditures related to the development of 90,000 SF of speculative business park space in Georgetown at the Westinghouse Business Center. 10/9/2018 6/1/2021 $ 500,000 Page 64 of 95 WBW Development Infrastructure reimbursement grant of $200,000 for qualified expenditures and a $120,000 job creation grant for the creation of 30 jobs over 6 years related to the development of their headquarters location in Downtown Georgetown. 2/12/2019 within 6 years of the certificate of occupancy date $ 320,000 Confido III, LLC Infrastructure reimbursement grant for $600,00 to assis with construction of an access road and turn lane to maintain access to the Georgetown airport as area land development continues. 3/8/2019 3/31/2022 $ 600,000.00 Sedro Crossing Infrastructure reimbursement grant of $250,000 to assist with utilities and access points for construction of 170,000 square feet of new professional office space on Williams Dr. 3/26/2019 12/31/2023 $ 250,000.00 Atmos Energy Infrastructure reimbursement grant of $148,499.36 for the installation of 776 feet gas main along 7th, 8th, and 9th streets. 4/6/2019 $ 148,499.36 Page 65 of 95 Economic Development Activity Report July 2019 Page 66 of 95 Strategic Goal 1 Support existing businesses and industries Page 67 of 95 0 5 10 15 20 25 30 35 40 Ju l 1 8 Au g 1 8 Se p 1 8 Oc t 1 8 No v 1 8 De c 1 8 Ja n 1 9 Fe b 1 9 Ma r 1 9 Ap r 1 8 Ma y 1 9 Ju n 1 9 Business Retention Activity Visits Assistance Requests Touches Page 68 of 95 Additional BRE Activity •Several active expansion retention and projects •Approximately 26% of active projects are existing businesses •Major themes are growth and workforce Page 69 of 95 Additional BRE Activity Cont. •Georgetown Healthcare Alliance (GHA) strategy sessions –June 7 •Georgetown Manufacturers Alliance meeting –June 13 •Breakfast Bites & Downtown Lowdown –June 12 Page 70 of 95 Strategic Goal 2 Enhance targeted recruitment of identified industries Page 71 of 95 0 2 4 6 8 10 12 14 16 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Leads FY17 FY18 FY19 Rolling 12-Month Average Page 72 of 95 0 2 4 6 8 10 12 14 16 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Qualified Leads FY17 FY18 FY19 Rolling 12-Month Average Page 73 of 95 0 1 2 3 4 5 6 7 8 9 10 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Site Visits FY17 FY18 FY19 Rolling 12-Month Average Page 74 of 95 0 10 20 30 40 50 60 70 80 Ju l 1 8 Au g 1 8 Se p 1 8 Oc t 1 8 No v 1 8 De c 1 8 Ja n 1 9 Fe b 1 9 Ma r 1 9 Ap r 1 9 Ma y 1 9 Ju n 1 9 Active Projects Development Hot Warm Cold Page 75 of 95 Additional Recruitment Activity •ICSC Food for Thought conference •Opportunity Austin Southern California Recruitment Trip •BIOMEDevice Trade Show •BIO Convention •Opportunity Austin Chicago Recruitment Trip •Implemented direct targeting software Page 76 of 95 Strategic Goal 3 Diversify workforce development and recruitment initiatives Page 77 of 95 Workforce Development Activity •Working with four employers, Austin Community College, and Texas Workforce Solutions on a Skills Development Fund grant application •Workforce Development Alliance Committee •Red, White & You Job Fair –August 21 Page 78 of 95 Strategic Goal 4 Encourage speculative development Page 79 of 95 Speculative Development Activity •Continuing to see interest in speculative projects, mostly industrial •Working with existing projects through development process –Sedro Crossing –Lakeway Business Park –Westinghouse Business Center Page 80 of 95 Overall Objective Tell our story to a broader local audience Page 81 of 95 Other Activity •Presentations at Opportunity Austin luncheon and multiple realtor groups •Updated aerial maps •Red Poppy Festival VIP event •Planning a fall beer event –August 3 •Beginning to plan 2019 Symposium Page 82 of 95 Other Activity –Symposium 2016 Election Economy 2017 The Retail Ripple 2018 Workforce Trends 2019 ?? Page 83 of 95 Other Activity –Symposium Cont. Potential Topics •2020 Vision (Economic Forecast) •Commercial Real Estate Trends Potential Speakers… Page 84 of 95 Economic Indicators Page 85 of 95 - 200 400 600 800 1,000 1,200 1,400 $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 Ju n 1 8 Ju l 1 8 Au g 1 8 Se p 1 8 Oc t 1 8 No v 1 8 De c 1 8 Ja n 1 9 Fe b 1 9 Ma r 1 9 Ap r 1 9 Ma y 1 9 Construction Permit Applications Valuation (in millions) # of Permits Page 86 of 95 0 2 4 6 8 10 12 14 16 Ju n 1 8 Ju l 1 8 Au g 1 8 Se p 1 8 Oc t 1 8 No v 1 8 De c 1 8 Ja n 1 9 Fe b 1 9 Ma r 1 9 Ap r i l 1 9 Ma y 1 9 Certificates of Occupancy Issued Page 87 of 95 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Oc t No v De c Ja n Fe b Ma r Ap r Ma y Ju n Ju l Au g Se p Sales Tax Collections FY 2017 FY 2018 FY 2019 Page 88 of 95 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Ma y 1 8 Ju n 1 8 Ju l 1 8 Au g 1 8 Se p 1 8 Oc t 1 8 No v 1 8 De c 1 8 Ja n 1 9 Fe b 1 9 Ma r 1 9 Ap r 1 9 Unemployment Rate Page 89 of 95 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 Average Annual Wage Page 90 of 95 City of Georgetown, Texas Georgetown Economic Development Corporation July 10, 2019 S UB J E C T: Action out of Exec utive S es s ion IT E M S UMMARY: F IN AN C IAL IMPAC T: T BD S UB MIT T E D B Y: C harlie Mc Nabb, C ity Attorney Page 91 of 95 City of Georgetown, Texas Georgetown Economic Development Corporation July 10, 2019 S UB J E C T: S ec. 551.071: C O N S ULTAT IO N WIT H AT TO R N E Y C onsultation with attorney regarding legal issues related to agenda items and other matters in which (1) when the governmental body seeks the advic e of its attorney about: (A) pending or contemplated litigation; or (B) a s ettlement offer; or (2) on a matter in which the duty of the attorney to the governmental body under the Texas Disc iplinary R ules of P rofes s ional C onduct of the S tate Bar of Texas clearly c onflic ts with this c hapter - C harlie Mc Nabb, C ity Attorney IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: C harlie Mc Nabb, C ity Attorney Page 92 of 95 City of Georgetown, Texas Georgetown Economic Development Corporation July 10, 2019 S UB J E C T: S ection 551.072. D E LIB E R AT IO N R E GAR D IN G R E AL P R OP E RT Y Dis cus s ion and pos s ible ac tion to deliberate the purc hase,exc hange, lease or value of real property for purposes authorized by the Development C orporation Ac t which disc ussion in open session would have a detrimental effect on negotiations with third pers ons. IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: C harlie Mc Nabb, C ity Attorney Page 93 of 95 City of Georgetown, Texas Georgetown Economic Development Corporation July 10, 2019 S UB J E C T: S ection 551.087. D E LIB E R AT IO N R E GAR D IN G E C O N OMIC D E VE LO P ME N T N E GOT IAT ION S . Deliberation regarding c ommercial or financ ial information that the corporation has received from a busines s prospec t that the G eorgetown Ec onomic Development C orporation s eeks to have loc ate, stay, or expand in or near the territory of the C ity of G eorgetown and with whic h the C orporation is c onducting economic development negotiations; and/or deliberation regarding the offer of a financ ial or other incentive to a bus iness pros pect that the C orporation seeks to have locate, s tay, or expand in or near the territory of the C ity of G eorgetown. --P roject C IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: C harlie Mc Nabb, C ity Attorney Page 94 of 95 City of Georgetown, Texas Georgetown Economic Development Corporation July 10, 2019 S UB J E C T: Adjourn meeting IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Amy Mertink, Board Liais on Page 95 of 95