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Home My WebLink AboutRES 082724-5.X - 2025 GEDCO Budget ResolutionRESOLUTION NO. C8 2.72q '15 X A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, ACCEPTING THE PROPOSED 2025 BUDGET FOR THE GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION (GEDCO) REPEALING CONFLICTING RESOLUTIONS; INCLUDING A SEVERABILITY CLAUSE; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City is required by State Law, the Bylaws of the Georgetown Economic Development Corporation (GEDCO), previously established pursuant to Vernon's Rev. Civ. Stat. Ann., Article 5190.6 Section 4(A) to approve an annual budget; and WHEREAS, the appropriations were approved by the GEDCO Type A Board on July 22 2024; and WHEREAS, the budget is for the fiscal year beginning October 1, 2024 and ending September 30, 2025; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, THAT: SECTION 1. The meeting at which this resolution was approved was conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. SECTION 2. The facts and recitations contained in the preamble of this resolution are hereby found and declared to be true and correct and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. SECTION 3. The City Council of the City of Georgetown hereby accepts the proposed 2024 budget of the Georgetown Economic Development Corporation (GEDCO) for the twelve month period beginning October 1, 2024 and ending September 30, 2025 in accordance with State Law and the GEDCO Bylaws. SECTION 4. All resolutions that conflict with the provisions of this resolution are hereby repealed, and all other resolutions of the City not in conflict with the provisions of this resolution shall remain in full force and effect. SECTION 5. If any provision of this resolution, or application thereof, to any person or circumstance, shall be held invalid, such invalidity shall not affect the other provisions, or application thereof, of this resolution, which can be given effect without the invalid provision or application, and to this end the provisions of this resolution are hereby declared to be severable. SECTION 6. The Mayor is hereby authorized to sign this resolution and the City Secretary to attest. This resolution shall become effective and be in full force and effect immediately in accordance with the provisions of the City Charter of the City of Georgetown. Resolution No. C*,ZV —S•1- Description: 2025 GEDCO Budget Resolution Date Approved: August 27, 2024 Page 1 of 1 RESOLVED this 27th day of August, 2024. ATTEST: Robyn D smore City Secretary APPROVED AS TO FORM: Skye asson City Attorney Resolution No. 09aZq -5-j Description: 2025 GEDCO Budget Resolution Date Approved: August 27, 2024 Page 2 of 1 THE/CITY/OF GEORGETOWN.- By: 4osh Soroeder Mayorj / v 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 1/8' cent of the City's sales tax rate. FISCAL YEAR 2024 Total revenues are projected to be $4.5 million, which is 7.2% more than budget. Sales tax revenue is projected at 2% more than budget. Interest revenue came in over budget totaling $550 thousand. Total expenses are projected to be $6.4 million, which is more than the budgeted amount of $6.3 million. The projected expenses are still contingent on projects meeting their milestones; it is anticipated that some of the monies projected to be spent in FY24 may not actually be spent until FY25 given the timing of certain projects. If this occurs a roll forward of funds will be requested at year end to ensure payment in FY2025. Several approved agreements have met their performance targets to receive reimbursement: Atmos - North Park 35, Cell -ink, Texas Outdoor Power, and WBW. Total fund balance as of September 30th, 2024 is projected to be $6.1 million with a sales tax contingency reserve of $810 thousand and a reserve for debt service of $200 thousand. FISCAL YEAR 2025 Budgeted revenues are expected to total $4.4 million. Sales tax is projected to increase 2% over FY2024 projections. Budgeted expenses total $1.7 million. This includes the cost of all currently anticipated Economic Development projects for CelLink, Loram, Texas Outdoor Power, Texas Speed, GAF Energy, Valex, Enflite, EcoMicron, and WBW. GEDCO's share of Joint Services and General Fund Allocations total $490 thousand. A cost allocation study was completed in FY2022 which resulted in a slight decrease of GEDCO's allocation to the General Fund, and a large increase to GEDCO's allocation to the Joint Services Fund. These increases are a result of the data sets used to allocate Economic Development department, Finance departments, City Manager's Office, and other support services. The annual debt service payment for the Sheraton Garage in the Rivery TIRZ is $140 thousand. Total fund balance is projected to be $8.8 million as of September 30th. This meets the contingency requirement of reserving 25% of budgeted sales tax revenue, as well as the debt service reserve requirement. ,IGEDC• FY2023 FY2024 FY2025 Actuals Amended Budget Projected Base Budget Changes Proposed Budget Beginning Fund Balance 6,310,052 7,899,478 8,016,018 6,141,011 6,141,011 40002:SalesTaxes I 314,004 3,243,056 3,301,184I 3,367,208 3,367,208 42001:lnterest Income 7300,000 550,000 400,OD0 400,000 Operating Revenue Total 3,652,300 3,543,056 3,851,184 3,767,208 3,767,208 Operations 690,383 621,077 647,586 645,374 645,374 Transfers 204,139 - Operating Expense Total 894,522 621,077 647,586 645,374 645,374 Available Operating Fund Balance 9,067,930 10,821,457 11,219,616 9,262,845 9,262,845 Non -Operating 45003:Misc Reimbursements 491,139 _ 680,860 680,8601 710,768 710.768 Non -Operating Revenue Total 491,139 680,860 680,860 710,768 710,768 Operations 1,567,985 5,416,300 5,465,600 929,001 929,001 Debt Service 91.506 293.865 293,865 200,769 200,769 Non -Operating Expense 1,659,491 5,710,165 5,759,465 1,129,770 1,129,770 Ending Fund Balance 7,899,478 5,792,152 6,141,011 8,843,843 8,843,843 AFR Adjustment 116,540 Contingency 878,044 810,764 810,764 841,802 841,802 Debt Service Reserve 205,519 200,769 200,769 203,769 203,769 Reserves Total 1,200,103 1,011,533 1,011,533 1,045,571 1,045,571 Available Fund Balance 6,932,455 4,780,619 5,129,478 7,798,272 7,798,272 •!!;•\![7! all 11 !!5 ~®§ dom— N§§°#kr! \ 11111 IH