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HomeMy WebLinkAboutRES 082625-5.G - FY2026 GEDCO BudgetREsoLUTION No. A24a!�6 C-1 INCLUDING A SEVERABILITY CLAUSE; AND ESTABLISHING AN EFFECTIVE D4TE. 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 21 2025;and WHEREAS, the budget is for the fiscal year beginning October 1, 2025 and ending September 30, 2026; 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 2026 budget of the Georgetown Economic Development Corporation (GEDCO) for the twelve month period beginning October 1, 2025 and ending September 30, 2026 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 All resolutions that conflict with the provisions of this resolution are hereby repealed, and all other resolutions of the City not in conflict with the provisions of this resolution shall remain in full force and effect.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 �hall 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. 6-1 Do iddAlm ho'w Wate Approved: August 26, 2025 Page I of 2 Robyn D moro City Secretary a Aso s 4 ' ityyAttorneyl Resolution No. Descriptio : 2" Date Approved: August 26, 2025 Page 2 of 2 r RINFEWO 114 GEORGETOWN' 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 primaryjobs and/or provision ion f significant capital investment which benefits the community of Georgetown, The funding; source is 1/ cry cent of the City's sales tax rate. SAL YEAR Total revenues are projected to be $4.4 million, which is in line with budget. Sales tax revenue is projected at 5% more than budget. Interest revenue came in at budget totaling $400 thousand. Total expenses are projected to be $3.5 million, which is less than the budgeted amount of $4.4 million. This is largely due to a decrease in the projected amount of economic development incentive payments. Several approved agreements have met their performance targets to receive reimbursement: Valex, CelLink, GAF Energy, Texas Speed, and Strategic Thermal Labs. Total fund balance as of September 30th, 2025 is projected to be $12.1 million with a sales tax contingency reserve of $841 thousand and a reserve for debt service of $203 thousand. ISCAL YEAR 2026 Budgeted revenues are expected to total $4.3 million. Sales tax is projected to increase 3% over FY2025 projections. Budgeted expenses total $4 million. This includes the cost of all currently anticipated Economic Development projects for Texas OutdoorPower, Loram, Cangshan, GISD/Atmos, and North Park 35 - Gas Line. GEDCO's share of Joint Services,and General Fund Allocations total $750 thousand, which covers GEDCO's share of expenses in the Economic Development department, Finance departments, City Manager's Office, and other support services. The annual debt service payment for the Sheraton Garage in the RiveryTIPZ is $203 thousand. Total fund balance is projected to be $12.4 million as of September 30th, 2026. This meets the contingency requirement of reserving 25% of budgeted sales tax revenue, as well as the debt service reserve requirement. 112024 FY2025 FY2026 AMuals Amended Bud et Pro'ected Base 8 et trait as Pro s d 0-Ud et 8a triitin Fund 8atael 8,016,018 12,222,472 11,222.472 - 12,119,67A - 12,119,673 002:Salesa ,,< , �3,�641:635 001aom , , 06 34 000 Operating Revenue Total 3,997,648 3,767,208 3,935,568 4,037,635 4,037,635 a 11 asat�oass "a6767�a „74 632.it86 877,430 13, : 890,430 Operating Expense Total 567,672 680,374 632,086 877,430 13,000 890,430` Available araW -Fund Balance 11,445; i 14,300,30 14,52$,954 15,279,878 S3, 15,2%978 45003:Pvlisc Rei¢nbursements i5„29 7C€ 68 S0,7b8 34,833 - 4 838 Non -Operating Revenue Total 795,519 710,768 505,768 334,838 334,838 Operations 1,143,321 3,101,000 2,284,000 2,857,720 61,189 2,919,909 Transfers 427,280 427,280 Debt Service 293.<756 200,,769 200.769 203.76 203,769 Non -Operating Expense 1,437,077 3,729,049 2,912,049 3,061,489 61,189 3,122,678 Eodirr Fund Balance 10 436 1t.7."931025 12,119,673 12,553, 2a 74189$ 12,47%038 AFR Adjustment ' 418,036 Contingency 810,764 841,802 841,802 910,409 910,409 DebtServica Reserve 20Q,769 203,769...: 203,769 2 ,769 700,769.-. Reserves Total 1,429,569 1,045,571 1,045,571 ' 1,111,178 -: ' 1,111,178 ' Available Fund Balance 1021tt,39 10245,454 11,074102 11442,049 74,199 11377,860