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HomeMy WebLinkAboutRES 082526-5.G - FY2027 GEDCO Budget ResolutionRESOLUTION NO. -5. G A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, APPROVING THE PROPOSED 2027 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 and the Bylaws of the Georgetown Economic Development Corporation (GEDCO), a Type A corporation, 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 20, 2026; and WHEREAS, the budget is for the fiscal year beginning October 1, 2026, and ending September 30, 2027; 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 approves the proposed 2027 budget of GEDCO, and all programs and expenditures set forth therein, for the twelve month period beginning October 1, 2026 and ending September 30, 2027 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 All resolutions that conflict with the provisions of this resolution are hereby repealed, and all other resolutions of the City not in conflict with the provisions of this resolution shall remain in full force and effect.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. Resolution No. 0%;02(6 6 • tj Description: 2027 GEDCO Budget Resolution Date Approved: August 25, 2026 Page I of 2 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. RESOLVED this 25' day of August, 2026. ATTEST: Robyn nsmore By: City Secretary APPROVED AS TO FORM: kye asson City Attomc Resolution No. 0Sz26 - S • `q Description: 2027 GEDCO Budget Resolution Date Approved: August 25, 2026 Page 2 of 2 GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION FUND The Georgetown Economic Development Corporation (GEDCO) considers grants using 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 2026 Total revenues are projected to be $4.5 million, which is slightly above budget. Sales tax revenue is projected at 1% less than budget. Interest revenue came in above budget totaling $550 thousand. Total expenses are projected to be $4.5 million, which is in line with the budget. This includes the cost of all currently anticipated Economic Development projects for Pegatron, Loram, CeIlLink, GAF Energy, Compal Technologies, and WBW. A few approved agreements have met their performance targets to receive reimbursement: VTC and Cell -ink. Total fund balance as of September 30th, 2026, is projected to be $12.1 million with a sales tax contingency reserve of $910 thousand and a reserve for debt service of $201 thousand. FISCAL YEAR 2027 Budgeted revenues are expected to total $11.5 million. Sales tax is projected to increase 2% over FY2026 projections. Budgeted expenses total $13.2 million. This includes the cost of all currently anticipated Economic Development projects for Pegatron, Loram, CeIlLink, GAF Energy, Texas Outdoor Power and Equipment, Baer Electric, and Jackson Shaw. There is additional CIP money in the amount of $10 million budgeted for the customer service center and the library Parking Lots. GEDCO's share of Joint Services and General Fund Allocations total $864 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 Rivery TIRZ is $271 thousand. Total fund balance is projected to be $10.4 million as of September 30th, 2027. This includes the contingency requirement of reserving 2S% of budgeted sales tax revenue, or $920 thousand, as well as the debt service reserve requirement of $203 thousand. FY2025 FY2026 FY2027 Actuals Amended Budget Projected Base Budget Changes Proposed Budget Beainnlna Fund Balance 11,222,471 13,001,025 13,225,138 13,218,694 13,218,694 40002:Sales Taxes 3 3 3 ,605,2 3,681534 3,681,534 42001:lnterest Income I 646.i79 I 396,000 550,000 I 544,500 544,500 Operating Revenue Total 4,165,000 4,037,635 4,155,219 4,226,034 4,226,034 Operating Operations • 1,080,5691 925,430 871,652 993,497 993,497 Operating Expense Total 1,080,569 925,430 871,652 993,497 993,497 Available Operating Fund Balance 14,306,9011 16,113,230 16,508,705 16,451,231 16,451,231 45003:Misc Reimbursements I 505,7681 334,838 334,838 I 7,200,7768 7,200,7768 46001:Bond Proceeds000 Non -Operating Revenue Total 505,768 334,838 334,838 7,270,768 7,270,768 Operations 1,519,100 3,411,909 3,421,000 1,963,189 1,963,189 CIP Expense 7,000,000 7,000,000 Transfers 3,000,000 3,000,000 Debt Service 292,544 203,769 203.849 270,849 270,849 Non -Operating Expense 1,811,644 3,615,678 3,624,649 12,234,038 12,234,038 WC Adjustment 2.24,113 - - - Ending Fund Balance 13,225,138 1 12,832,390 13,218,694 1 11,487,961 11,487,961 Contingency I Debt Service Reserve 203.5011 200:769 200,769I 202,581 202,581 Reserves Total 1,045,373 1,111,178 1,111,178 1,122,965 1,122,965 Available Fund Balance 12,179,7651 11,721,212 12,107,516 10,364,997 10,364,997 8/11/2026 8:17 AM