HomeMy WebLinkAboutAgenda_GEDCO_07.19.2021Notice of Meeting for the
Georgetown E conomic Dev elopment Corporation
of the City of Georgetown
July 19, 2021 at 4:00 P M
at Georgetown City Hall Community Room, 808 Martin L uther K ing Jr. St.
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.
The Geor getown E conomic De ve lopme nt Cor por ation B oar d is now mee ting
in -per son with a quor um pr esent and public is we lc ome to attend. If spec ial
ac commodations ar e nee de d due to C O V I D -19 and attending vir tually is
nee de d, ple ase re ach out to the Staff L iaison, S har on P ar ke r at 512-930-6534
for assistance .
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 May17, 2021 G EDC O minutes - S haron P arker, Board Liaison.
B C ons ideration of the S eptember 1, 2020 financ ial report - Nathan P arras , Assistant F inanc e Direc tor
C S ales Tax P resentation - Nathan P arras , Assistant F inanc e Direc tor
D Disc ussion and possible action to recommend the F Y2022 proposed G EDC O budget and adminis trative
services contrac t – Nathan P arras, As s is tant F inance Director
E Disc ussion regarding the S taff R eport - David Morgan, G eorgetown C ity Manager
F Ac tion out of Executive S ession
Adjournment
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 _________________, 2021, 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 1 of 81
City of Georgetown, Texas
Georgetown Economic Development Corporation
July 19, 2021
S UB J E C T:
C onsideration and approval of the May17, 2021 G EDC O minutes - S haron P arker, Board Liais on.
IT E M S UMMARY:
F IN AN C IAL IMPAC T:
N/A
S UB MIT T E D B Y:
S haron P arker
AT TAC H ME N T S:
Description Type
Minutes Backup Material
Page 2 of 81
GEDCO Minutes
May 17, 2021
Page 1 of 2
Minutes of the Meeting of the
Georgetown Economic Development Corporation
City of Georgetown, Texas
May 17, 2021
The Georgetown Economic Development Corporation of the City of Georgetown, TX, met virtually on Monday March
15, 2021.
Members
Present: Barrie Laing, Hugh Brown, Kevin Cummins, Robert Hilton, Ron Garland, Steve Fought,
Members
Absent: Rachael Jonrowe
Staff
Present:
David Morgan, City Manager; Laurie Brewer, Assistant City Manager; Michaela Dollar, Director of
Economic Development; Nathan Paras, Assistant Finance Director;; Conchita Gusman, Business
Retention Manager, Katherine Clayton, Budget Analyst; Sharon Parker, Board Liaison.
Guest
Present:
MINUTES
Meeting called to Order at 4:02 pm
A. Consideration and approval of the March 15, 2021 GEDCO Minutes— Sharon Parker, Board Liaison
Motion to approve by Ron Garland, 2nd by Barrie Laing. Approved 6-0 Rachael Jonrowe absent
B. Review and discussion regarding the Amended Bylaws for GEDCO approved by the City Council on April
23, 2019 – David Morgan, City Manager.
David noted the address needed to be updated, he will send to Legal department to find out if the address
can be amended or do they need to be presented to council for the change.
No Action Needed.
C. Review and discussion regarding the City Council Attendance Policy for Board Members – David
Morgan, City Manger.
No Action Needed.
D. Review and possible action related to the Day and Time of the GEDCO Board Meetings – David Morgan,
City Manger.
No Action Needed.
E. Presentation of Council Goals – David Morgan, City Manger.
Presentation of council goals with Areas of Emphasis – Governance, Growth, Housing, Economic
Development, Downtown.
• Governance – confirming council / City manger roles, Equipping the Council to be successful,
Communication and Engagement with Citizens and board members
• Growth – Proactively Plan for Growth, Ensure Financial Capacity to Manage Growth, Develop and
manae water supply souces and treatment capacity, Maintain high customer service levels
• Housing – Affordable housing, multifamily housing, residential / neighborhood commercial mix in
targeted areas, development of executing housing, strong development standards, quality housing
products, annexation of development.
Page 3 of 81
GEDCO Minutes
May 17, 2021
Page 2 of 2
• Economic Development – viable workforce development program, industrial and commercial growth,
business retention, business recruitment, Foster regional cooperaton with area governmental
partners.
• Downtown – continued development of downtown, partnerships for downtown
No Action Needed.
F. Consideration of the preliminary financial report for period ending April 30, 2021 - Nathan Parras,
Assistant Finance Director
Nathan reviewed the financial report. No action needed
G. Discussion regarding the Staff Report -David Morgan, City Manager
• Performance Agreement Report
• Activity Report
• Other Staff Items
Michaela reviewed the Performance Agreement report and the Activity Report. No action needed.
H. Action out of Executive Session.
No Executive session, no action needed.
Motion to adjourn by Ron Garland, 2nd by Barrie Laing
Meeting adjourned at 5:15 pm
Hugh Brown, Secretary Kevin Cummins, President
Page 4 of 81
City of Georgetown, Texas
Georgetown Economic Development Corporation
July 19, 2021
S UB J E C T:
C onsideration of the S eptember 1, 2020 financial report - Nathan P arras, As s is tant F inance Director
IT E M S UMMARY:
T he corporate bylaws require the F inanc e Manager to present the monthly financial reports to the Board.
Included in these reports will be:
• F inancial reports
• S ales Tax revenues
• Monthly expenditures
• Any other relevant financial 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.
F IN AN C IAL IMPAC T:
N/A
S UB MIT T E D B Y:
S haron P arker
AT TAC H ME N T S:
Description Type
June Financials and Pres entation Pres entation
Page 5 of 81
F
GEDCO MONTHLY REPORT AS OF JUNE 30, 2021
Operating revenue is comprised of sales tax and allocated interest. The budget for sales tax collections for GEDCO
is $2,063,750. Year-to-date sales tax revenue totals $1,462,280, or 70.86% of budget. Through this period, sales tax
collections are up $288,403, or 24.57% over year-to-date collections from the prior fiscal year. The City continues
to see and monitor the strong performance in sales tax.
Operating expenses total $1,323,469, or 73.77% of
budget through the period. Operating expenses include
administrative expenses, marketing costs, contractual
services, and operating transfers to other City funds.
Administrative expenses include the allocation for City
staff to support the GEDCO fund. Year-to-date
administrative expense total $189,189, or 66.67% of
budget. The GEDCO fund has dedicated funding to
market the City for potential economic development.
Year-to-date marketing efforts total $80,503, or 44.72%
of budget. Contractual services include $130,000
budgeted for consulting in FY2021. GEDCO will transfer
out $1,200,169 in FY2021. This includes a transfer out
to the Electric fund for GEDCO’s portion of the Titan
North Park development, and a transfer to the Water
fund to pay for debt service.
Non-Operating revenue, which typically includes bond
proceeds, is not part of the FY2021 budget. City staff
does not intend to issue any new debt for this fund in
the current fiscal year.
Non-Operating expense budget totals $8,346,963.
Year-to-date non-operating expenses total $396,500, or
4.75% of budget through the period. Non-Operating
expenses include funding for strategic partnerships and
GEDCO’s debt service payment. Strategic partnerships
include year-to-date expense of $400,000 for economic
incentive agreements. GEDCO’s debt service payment
includes principal reduction of $72,830, and an interest
expense of $17,742. The debt service payment for
FY2021 has been made and is reflected in this report.
Ending fund balance for FY2021 is anticipated to be
$787,612. After accounting for the contingency reserve
of $505,468, and the debt service reserve of $202,769,
this fund will have an available fund balance of $79,375.
24.57% 1,462,280
SALES TAX
K
250K
500K
750K
1.0M
1.3M
1.5M
1.8M
01
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FY2020 FY2021
593,783 283,385
OPERATING EXPENSES
K
50K
100K
150K
200K
250K
300K
51001:Administrative
Expense
51003:Marketing &
Promotional
51004:Contractual
Services
FY2021 FY2021 Budget
Page 6 of 81
COG - GEDCO Financial Report
Period: Jun-21
Budget Period
FY2021 Jun-21
YTD Actuals
w/Encumbrances Variance % Variance
Beginning Fund Balance 8,845,777 8,845,777 8,845,777 - 100.00%
Operating Revenue
40002:Sales Taxes 2,063,750 223,842 1,462,280 (601,471) 70.86%
42001:Interest Income 19,000 236 22,975 3,975 120.92%
Operating Revenue Total 2,082,750 224,079 1,485,254 (597,496) 71.31%
Operating Expense
Operations 593,783 45 283,385 310,398 47.73%
Transfers 1,200,169 - 1,040,084 160,085 86.66%
Operating Expense Total 1,793,952 45 1,323,469 470,483 73.77%
Total Net Operations 288,798 224,034 161,785 (1,067,979) 56.02%
Non-Operating Revenue
Non-Operating Expense
Operations 8,256,391 (3,500) 396,500 7,859,891 4.80%
Debt Service 90,572 - - 90,572 0.00%
Non-Operating Expense Total 8,346,963 (3,500) 396,500 7,950,463 4.75%
Net Non-Operations Total (8,346,963) 3,500 (396,500) 7,950,463 4.75%
Excess (Deficiency) of Total Revenue over Total
Requirements (8,058,165) 227,534 (234,715) (8,292,880) 102.91%
Ending Fund Balance 787,612 9,073,311 8,611,062 7,823,450 1093.31%
Reserves
Contingency Reserve 505,468 - 505,468 - 100.00%
Debt Service Reserve 202,769 - 202,769 - 100.00%
Reserves Total 708,237 - 708,237 - 100.00%
Available Fund Balance 79,375 7,902,825 7,823,450 9956.31%
YTD Actuals Budget Vs. Actuals
Page 7 of 81
GEDCO
Financial Summary: June 21Page 8 of 81
FY2021 FINANCIAL SUMMARY: GEDCO
GEDCO Revenue
•FY2021 Revenue Budget •Revenue Budget Sources
•The FY2021 revenue budget for
the GEDCO is $2.1 million
•99% of budgeted revenue is sales
tax, $2.1 million
•Interest Income accounts for
$19,000
99.09%
0.91%
40002:Sales Taxes
42001:Interest Income
Page 9 of 81
FY2021 FINANCIAL SUMMARY: GEDCO
GEDCO Revenue
COG - GEDCO Financial Report
Period: Jun-21
Budget
FY2021 Jun-20 Jun-21 Variance % Variance
Variance from
Budget % of Budget
Operating Revenue
40002:Sales Taxes 2,063,750 1,173,877 1,462,280 288,403 24.57%(601,471) 70.86%
42001:Interest Income 19,000 84,934 22,975 (61,960) -72.95%3,975 120.92%
Operating Revenue Total 2,082,750 1,258,811 1,485,254 226,443 17.99%(597,496) 71.31%
YTD Comparison YTD Budget Comparison
Page 10 of 81
FY2021 FINANCIAL SUMMARY: GEDCO
GEDCO Revenue
•Sales Tax
•Year -to-date sales tax revenue
totals $825,614, 47% of budget
•FY2021 year-to-date collections
are 15% more than FY2020 year-
to-date collections
•There is a two-month lag on sales
tax collections.
24.57% 1,462,280
SALES TAX
K
250K
500K
750K
1.0M
1.3M
1.5M
1.8M
01
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FY2020 FY2021
Page 11 of 81
FY2021 FINANCIAL SUMMARY: GEDCO
GEDCO Expense
•FY2021 Expense Budget •Expense Budget Sources
•The FY2021 expense budget for
the GEDCO is $10.1 million
•81% of budgeted expenses are for
Economic Development
Agreements
•Administrative expense budget
totals $283,783
•Debt service payment for FY2021
accounts for $90,752
2.80%1.77%
1.28%
81.42%
0.72%
0.17%
11.83%
51001:Administrative Expense
51003:Marketing &
Promotional
51004:Contractual Services
53011:Economic Development
Agreements
55001:Principal Reduction
55002:Interest Expense
80001:Transfers Out
Page 12 of 81
FY2021 FINANCIAL SUMMARY: GEDCO
GEDCO Revenue
COG - GEDCO Financial Report
Period: Jun-21
Budget
FY2021
YTD Actuals
w/Encumbrances:
Jun-20
YTD Actuals
w/Encumbrances:
Jun-21 Variance % Variance
Variance from
Budget % of Budget
Operating Expense
51001:Administrative Expense 283,783 183,578 189,189 (5,610) 3.06%94,594 66.67%
51003:Marketing & Promotional 180,000 69,604 80,503 (10,898) 15.66%99,497 44.72%
51004:Contractual Services 130,000 6,615 12,500 (5,885) 88.96%117,500 9.62%
51006:Subscriptions - 10,972 - 10,972 -100.00%- 0.00%
51010:Legal Services - 2,493 - 2,493 -100.00%- 0.00%
53016:Travel Expense - 92 1,194 (1,102) 1204.51%(1,194) 0.00%
80001:Transfers Out 1,200,169 41,334 1,040,084 (998,750) 2416.27%160,085 86.66%
Operating Expense Total 1,793,952 314,688 1,323,469 (1,012,620) 320.57%470,483 73.77%
Non-Operating Expense
53009:Strategic Partnership - 448,316 400,000 48,316 -10.78%(400,000) 0.00%
53011:Economic Development Agreement 8,256,391 356,235 (3,500) 359,735 -100.98%8,259,891 -0.04%
55001:Principal Reduction 72,830 - - - 0.00%72,830 0.00%
55002:Interest Expense 17,742 - - - 0.00%17,742 0.00%
Non-Operating Expense Total 8,346,963 804,551 396,500 408,051 -50.72%7,950,463 4.75%
YTD Actuals w/Encumbrances Comparison YTD Budget Comparison
Page 13 of 81
FY2021 FINANCIAL SUMMARY: GEDCO
GEDCO Expense
•Operating Expenses
•Operating expense budget totals
$1.8 million
•Administrative Expense: 58.3% of
budget
•Marketing: 47.4% of budget
•Contractual Services: 10% of
budget
593,783 283,385
OPERATING EXPENSES
K
50K
100K
150K
200K
250K
300K
51001:Administrative
Expense
51003:Marketing &
Promotional
51004:Contractual
Services
FY2021 FY2021 Budget
Page 14 of 81
FY2021 FINANCIAL SUMMARY: GEDCO
Questions
Page 15 of 81
City of Georgetown, Texas
Georgetown Economic Development Corporation
July 19, 2021
S UB J E C T:
S ales Tax P res entation - Nathan P arras, As s is tant F inance Director
IT E M S UMMARY:
R eview of the sales tax methodology and projections.
F IN AN C IAL IMPAC T:
.
S UB MIT T E D B Y:
S haron P arker
AT TAC H ME N T S:
Description Type
Sales Tax Presentation Pres entation
Page 16 of 81
FY2020 Annual Budget
Sales Tax Methodology
Page 17 of 81
FY2020 Annual Budget
Overview of Sales Tax
•$0.02
•$0.0625
•$0.0825
Page 18 of 81
FY2020 Annual Budget
Sales Tax Break Down –The City
of Georgetown’s Two Cents
Page 19 of 81
FY2020 Annual BudgetSales Tax Model –Shape of
Data
Page 20 of 81
FY2020 Annual BudgetSales Tax Model –Large Data
Sources•Two Major Sources
of Data:
–Confidential Report
from the State
Comptrollers Office
(200,000 rows of
data per month)
–All Cities Data
(230,000 rows of
data annually)
Page 21 of 81
FY2020 Annual BudgetSales Tax Model –Excel Power
Pivot
Page 22 of 81
FY2020 Annual Budget
Sales Tax Model -NAICS
North
American
Industrial
Classificatio
n
System
Page 23 of 81
FY2020 Annual Budget
Sales Tax Model -Tables
Page 24 of 81
FY2020 Annual Budget
Sales Tax Model -Slicers
Page 25 of 81
FY2020 Annual Budget
Sales Tax Model -Slicers
Page 26 of 81
FY2020 Annual Budget
Sales Tax Model -Sector
•FY2020 core sectors –
63%
•Food
•Retail
•Information
Page 27 of 81
FY2020 Annual Budget
Sales Tax Model -Subsector
•Information
Subsector
Page 28 of 81
FY2020 Annual Budget
Forecasting –Multiple Views
•Different trend analysis
–Regression types
–Different timeframes
•Correlation Models
–Aggregate
–Sector Based
Page 29 of 81
FY2020 Annual BudgetForecasting –Consistency in
Data
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
FY 16
FY 17
FY 18
FY 19
FY20
FY21
Page 30 of 81
FY2020 Annual Budget
Forecasting -Multiplier
Month Month %Running Month %Multiplier
01) Oct 7.28%7.28%13.74
02) Nov 7.25%14.53%6.88
03) Dec 10.36%24.89%4.02
04) Jan 7.18%32.07%3.12
05) Feb 6.77%38.84%2.57
06) Mar 9.65%48.49%2.06
07) Apr 7.83%56.32%1.78
08) May 8.06%64.38%1.55
09) Jun 9.80%74.18%1.35
10) Jul 8.18%82.35%1.21
11) Aug 8.34%90.69%1.10
12) Sep 9.31%100.00%1.00
Page 31 of 81
FY2020 Annual BudgetForecasting –Another way to
think about this…
Player Average Points Per
Game
% of Total
Points
Projected Team
Total
Tim Duncan 19 40%87.5
Tony Parker 15.5 30%93.3
Manu Ginobili 13.3 27%88.9
Page 32 of 81
FY2020 Annual Budget
Forecasting –Major Sectors
•Four Year Average of
Sectors
•Food
•Retail
•Information
Page 33 of 81
FY2020 Annual Budget
Forecasting
•Multi-Level Analysis
–Georgetown Data
–Austin MSA region
–Top Twenty cities in Texas
–Regions in Texas
–All Cities in Texas
Page 34 of 81
FY2020 Annual Budget
Forecasting –Score Card
Fiscal Year Actual Projection 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%
FY2019 $29,478,587 $29,750,000 (271,413)-0.91
FY2020*$33,965,302 $31,900,000 (2,065,302)-6.08
Total $160,223,958 $157,950,000 (2,273,958)1.42Page 35 of 81
FY2020 Annual Budget
Forecasting
•FY2020: all four-year end models are
all in agreement.
–Aggregate Linear 6M 40.2M
–Aggregate Linear 12 M 39.3M
–Aggregate Linear 18M 38.5M
–Correlation 41.6M
Page 36 of 81
FY2020 Annual Budget
Forecasting
Fund FY2021 Projection FY2022 Budget
100 –General Fund $22,921,875 $23,953,359
203 –Street Maintenance
Fund
$5,093,750 $5,322,969
400 –GTEC Fund $10,187,500 $10,645,938
420 -GEDCO $2,546,875 $2,661,484
Total Sales Tax $40,750,000 $42,583,750
Page 37 of 81
FY2020 Annual Budget
Questions
Page 38 of 81
City of Georgetown, Texas
Georgetown Economic Development Corporation
July 19, 2021
S UB J E C T:
Dis cus s ion and pos s ible ac tion to rec ommend the F Y2022 propos ed G EDC O budget and administrative
s ervic es c ontract – Nathan P arras , Assistant F inanc e Direc tor
IT E M S UMMARY:
T he proposed F Y2022 G EDC O budget inc ludes projects identified for funding along with adminis trative
costs and total funding requirements .
T he proposed F Y2022 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 roposed F Y2022 Budget P res entation and F und S chedule
· P roposed F Y2022 Administrative C ontrac t
S P EC I AL C O NS I DER AT I O NS :
C ouncil is sc heduled to ac t on all c omponents of the F Y2022 budget in S eptember 2021.
F IN AN C IAL IMPAC T:
.
S UB MIT T E D B Y:
S haron P arker
AT TAC H ME N T S:
Description Type
Admin Contract Pres entation
FY 2022 GEDCO Budget and Contract Pres entation
FY 2022 GEDCO Backup Material
Page 39 of 81
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, 808 Martin Luther King, 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 40 of 81
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, 2021 and terminate at the
close of business on September 30, 2022 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 $28,967 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 $28,967 per month on the first of each month,
begininng on October 1, 2021 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 41 of 81
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
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
Page 42 of 81
4
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 (PO Box zip is 78627)
For Corporation: General Manager
Georgetown Economic Development Corporation
P.O. Box 409
Georgetown, Texas 78626 (PO Box zip is 78627
ARTICLE 12
Page 43 of 81
5
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_________, 2021.
GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION
By:
Printed Name:
Title:
ATTEST:
By:
Printed Name:
Title:
CITY OF GEORGETOWN
By:
Printed Name: Josh Schroder
Title: Mayor
ATTEST:
By:
Printed Name: Robyn Densomre
Title: City Secretary
APPROVED AS TO FORM:
Skye Masson City Attorney
Page 44 of 81
6
Attachment A
The GEDCO Administrative Allocation for departments such as City
Manager’s Office, Finance and Accounting, and the Legal Deparment totals
$347,604 for FY2022. This equates to $28,967 per month.
Page 45 of 81
GEDCO
Financial Summary: July 21Page 46 of 81
FY2021 FINANCIAL SUMMARY: GEDCO
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 47 of 81
FY2021 FINANCIAL SUMMARY: GEDCO
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, training
Page 48 of 81
FY2021 FINANCIAL SUMMARY: GEDCO
Revenue
•Sales tax is projected to end FY2021 at $2,546,875 –
•Exceeds budget due to strong fiscal year
•20% increase over prior year actuals
•FY2022 Sales Tax is projected to be $2,661,484, which is an increase
of 4.5% over FY2021 projections
•Interest revenue is budgeted at $25,000 in FY2022
Page 49 of 81
FY2021 FINANCIAL SUMMARY: GEDCO
Expenditures
•Operation expenses include:
•$150,000 for Marketing
•$130,000 for Special Services/Contracts
•$100,000 for update to the strategic plan
•Administrative Costs/Overhead -$347,604
•Two Debt Service Payments
•Transfer out to the City’s main debt fund for $202,769 for Rivery conference center
project
•Repayment to the Water Fund for $92,048
Page 50 of 81
FY2021 FINANCIAL SUMMARY: GEDCO
Expenditures
•Existing projects -$976,000
•Anticipate to roll funding from FY2021 projects
•Reserves –per fiscal and budgetary policy
•Contingency = 25% of sales tax
•$665,371
•Debt Service = one year of debt service
•$204,019
Page 51 of 81
FY2021 FINANCIAL SUMMARY: GEDCO
•Administrative Contract
•$235,605 for the Joint Service contract includes services of Economic
Development, Legal, and Finance Administration
•$111,999 for General Fund –other/city management
•Total $374,604
•22% increase from FY20 due to additional contract oversight and activity
•Contract approved as a separate agenda item
Page 52 of 81
FY2021 FINANCIAL SUMMARY: GEDCO
Conclusion
•Discussion
•Recommendation to Council
Page 53 of 81
FY2022 Budget Workshop
GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION FUND
The Georgetown Economic Development Corporation (GEDCO) considers requests and also grants economic
development funds as authorized and defined by the Internal Revenue Code of 1986, Section 4A, leading to the
creation or retention of primary jobs and/or provision of significant capital investment which benefits the community
of Georgetown. The funding source is 1/8th cent of the City’s sales tax rate.
FISCAL YEAR 2021
Total revenues are projected to be $2.5 million, which is a 25% percent increase over budget. This increase is due to
stronger than estimated sales tax collections throughout the pandemic.
Total expenses are projected to be $7.3 million, which is less than the budgeted amount of $10.1 million. This is
largely due to the timing of certain projects not being expensed in the current fiscal year.
Total fund balance as of September 30th, 2021 is projected to be $992K with a sales tax contingency reserve of $505K
and a reserve for debt service of $202K.
FISCAL YEAR 2022
Budgeted revenues are expected to total $2.7 million. Sales tax is projected to increase 4.5% over 2021 projections.
Budgeted expenses total $2 million. This includes the cost of all currently anticipated Economic Development projects
for FY2022, including $100k for the startup of a small business loan program. GEDCO’s share of Joint Services and
General Fund Allocations total $347K. The debt service payment is $90K.
Total fund balance is projected to be $1.7 million as of September 30th, 2021. This meets the contingency
requirement of reserving 25% of budgeted sales tax revenue, as well as the debt service reserve requirement.
Page 54 of 81
FY2022 Budget Workshop
FUND SCHEDULE
GEDCO
FY2020 FY2021 FY2022
Actuals
Amended
Budget Projected Base Budget Changes
Proposed
Budget
Beginning Fund Balance 4,976,732 8,845,777 5,740,067 992,725 - 992,725
Revenue
40002:Sales Taxes 2,122,831 2,063,750 2,546,875 2,661,484 - 2,661,484
42001:Interest Income 98,282 19,000 25,000 25,000 - 25,000
Revenue Total 2,221,114 2,082,750 2,571,875 2,686,484 - 2,686,484
Expense
Operations 1,145,778 8,850,174 6,028,476 1,658,104 - 1,658,104
Debt Service 104,211 90,572 90,572 92,048 - 92,048
Transfers 207,789 1,200,169 1,200,169 202,769 - 202,769
Expense Total 1,457,778 10,140,915 7,319,217 1,952,921 - 1,952,921
Ending Fund Balance 5,740,067 787,612 992,725 1,726,288 - 1,726,288
Reserves
Contingency 689,467 505,468 505,468 665,371 - 665,371
Debt Service Reserve - 202,769 202,769 204,019 - 204,019
Reserves Total 689,467 708,237 708,237 869,390 - 869,390
Available Fund Balance 5,050,600 79,375 284,488 856,898 - 856,898
Page 55 of 81
City of Georgetown, Texas
Georgetown Economic Development Corporation
July 19, 2021
S UB J E C T:
Dis cus s ion regarding the S taff R eport - David Morgan, G eorgetown C ity Manager
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.
Activity R eport
P erformanc e Agreement R eport
O ther S taff Items
F IN AN C IAL IMPAC T:
N/A
S UB MIT T E D B Y:
S haron P arker
AT TAC H ME N T S:
Description Type
Active Project Update July Backup Material
Activity Report - July 2021 Backup Material
Page 56 of 81
Name Description
Start Date (Council
Approved)End Date $ Encumbered $ Expended
Georgetown Development I, LLC
Infrastructure reimbursement grant of $500,000 for
qualified expenditures related to the development
of 90,000 SF of speculative business park space in
Georgetown at the Westinghouse Business Center.10/9/2018 6/1/2021 500,000$
WBW Development
Infrastructure reimbursement grant of $200,000 for
qualified expenditures and a $120,000 job creation
grant for the creation of 30 jobs over 6 years
related to the development of their headquarters
location in Downtown Georgetown.2/12/2019
within 6 years of
the certificate of
occupancy date 320,000$
4871 Williams Dr., LLC (Sedro Crossing)
Infrastructure reimbursement grant of $250,000 to
assist with improvements (utilities and access
points) for construction of 89,500 square feet of
commercial building space.3/26/2019 12/31/2023 250,000$
Cockrum Commercial (Sedro Crossing)
Infrastructure reimbursement grant of $250,000 to
assist with improvements (utilities and access
points) for construction of 60,000 square feet of
new professional office space on Williams Dr.3/26/2019 12/31/2023 250,000$
Atmos Energy
Infrastructure reimbursement grant of $148,499.36
for the installation of 776 feet gas main along 7th,
8th, and 9th streets.4/6/2019 148,499$ 143,674$
Texas Speed & Performance
Job creation grant of $2K per job up to 100 jobs in 5
years.11/12/2019 11/12/2024 200,000$
Titan NorthPark35, LLC
Infrastructure reimbursement grant for qualified
infrastructure costs related to the speculative
development of a master planned industrial
business park located at SH130 & I35.11/17/2020
Certificate of
Occupancy date $1,900,000
(Motion Commercial Properties) assigned
to: Titan
NorthPark35, LLC
Infrastructure reimbursement grant in connection
with the construction of 2 bldgs :
$500K infrastructure reimbursement bldg #1
$500K infrastructure reimbursement bldg #2
Certificate of
occupancy issue
date
10 year
anniversary of
start date
$1,000,000
---------
GEDCO - AGREEMENTS STATUS REPORT
July 19, 2021
Page 57 of 81
Name Description
Start Date (Council
Approved)End Date $ Encumbered $ Expended
GEDCO - AGREEMENTS STATUS REPORT
July 19, 2021
Costco
Agreement to partner with Atmos for natural gas
line extension and reimbursement of cost to
GEDCO by Costco if retail store construction is not
completed.12/10/2019 12/10/2024 N/A
Page 58 of 81
Economic Development Activity Report
July 2021
Page 59 of 81
Strategic Goal 1
Support existing businesses and industries
Page 60 of 81
Business Retention Activity
2 5 7 6 5 2 5
10
6 6 5 4
47
85
80
47
48
56
37
31
40
44
29 29
0
10
20
30
40
50
60
70
80
90
Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21
Visits Touches
Page 61 of 81
Business Retention Activity
•Published the Georgetown residential relocation portal
•Planning the 2021 Business Appreciation Event
Page 62 of 81
Strategic Goal 2
Enhance targeted recruitment of identified industries
Page 63 of 81
Leads Received
0
2
4
6
8
10
12
14
16
18
20
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
FY19 FY20 FY 21 Rolling 12-Month Average
In FY20 we received 95 leads total –So far in FY21 we have received 131 leads
Page 64 of 81
Qualified Leads
0
2
4
6
8
10
12
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
FY19 FY20 FY21 Rolling 12-Month Average
In FY20 we qualified for 47 leads total –So far in FY21 we have qualified for 61 leads
Page 65 of 81
Qualified Leads Comparison
0
2
4
6
8
10
12
14
16
18
20
Ju
l
2
0
Au
g
2
0
Se
p
2
0
Oc
t
2
0
No
v
2
0
De
c
2
0
Ja
n
2
1
Fe
b
2
1
Ma
r
2
1
Ap
r
2
1
Ma
y
2
1
Ju
n
2
1
Leads Qualified
Over the past 12 months we have qualified for 46% of the leads received
Page 66 of 81
Site Visits
0
1
2
3
4
5
6
7
8
9
10
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
FY19 FY20 FY 21 Rolling 12-Month Average
In FY20 we had 32 site visits total –So far in FY21 we have had 36 site visits
Page 67 of 81
Active Projects
0
10
20
30
40
50
60
70
80
90
Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21
Development Hot Warm Cold
Page 68 of 81
Strategic Goal 3
Diversify workforce development and recruitment initiatives
Page 69 of 81
Workforce Development Activity
•Implementing a job listing software for website to support major employers
•Visited Ft. Hood’s transition office to explore workforce development
partnerships
•Scheduling the Veterans’ and Military Spouses Job Fair for the Fall
Page 70 of 81
Strategic Goal 4
Encourage speculative development
Page 71 of 81
Speculative Development Activity
•GTEC agreement with Titan
Development for Gateway Commerce
35 business park
Page 72 of 81
Overall Goal
Tell our story to a broader local audience
Page 73 of 81
Other Activity
•Held Breakfast Bites & Downtown Lowdown
•Held the Residential Realtors Twelve@12 luncheon
•Released the Georgetown Business Briefs –2021 Q2 newsletter
•Producing mini videos for WilCo EDP
Page 74 of 81
Symposium
•Speaker: Dr. Mark G. Dotzour
•Date: August 30, 2021
•Location:Sheraton Hotel & Conference Center
•11:00 a.m.Registration
11:30 a.m.Lunch and Presentation
Page 75 of 81
Economic Indicators
Page 76 of 81
Unemployment Rate
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
Ju
n
e
2
0
Ju
l
y
2
0
Au
g
2
0
Se
p
t
2
0
Oc
t
2
0
No
v
2
0
De
c
2
0
Ja
n
2
1
Fe
b
2
1
Ma
r
2
1
Ap
r
i
l
2
1
Ma
y
2
1
Unemployment Rate Rolling 12-Month Average
Page 77 of 81
Sales Tax Collections
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
Oc
t
No
v
De
c
Ja
n
Fe
b
Ma
r
Ap
r
Ma
y
Ju
n
Ju
l
Au
g
Se
p
FY 2018 FY 2019 FY 2020 FY 2021
Page 78 of 81
Hotel Occupancy Tax Collections
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
Oct Nov Dec Jan Feb Mar April May Jun Jul Aug Sep
FY18 FY19 FY20 FY21
Page 79 of 81
Construction Permit Applications
0
500
1000
1500
2000
2500
3000
3500
$-
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
$400.0
$450.0
Ju
l
y
2
0
Au
g
2
0
Se
p
2
0
Oc
t
2
0
No
v
2
0
De
c
2
0
Ja
n
2
1
Fe
b
2
1
Ma
r
2
1
Ap
r
2
1
Ma
y
2
1
Ju
n
2
1
Valuation
(in millions)
# of Permits
Page 80 of 81
Certificates of Occupancy Issued
0
2
4
6
8
10
12
14
16
18
Ju
l
2
0
Au
g
2
0
Se
p
t
2
0
Oc
t
2
0
No
v
2
0
De
c
2
0
Ja
n
2
1
Fe
b
2
1
Ma
r
c
h
2
1
Ap
r
i
l
2
1
Ma
y
2
1
Ju
n
e
2
1
COs Issued Rolling 12-Month Average
Page 81 of 81