Aug 15, 2022 Economic Development Corp. (Type A)

HEY EVERYONE.

[00:00:03]

I UNDERSTAND MISS PAYNE IS DELAYED.

SHE'S ON THE ROAD IN TRAFFIC.

BUT BECAUSE WE HAVE MEETINGS STACKED UP BACK TO BACK, I WITH APOLOGIES TO HER, I WOULD LIKE TO GO AHEAD AND GET THE MEETING UNDERWAY BECAUSE TO NOT DO SO MAY IMPACT THE TIF MEETING AND OTHER PEOPLE.

SO LET'S GO AHEAD AND OPEN THE MEETING AT THIS TIME, THE FIRST ITEM ON OUR AGENDA IS CITIZEN APPEARANCES.

DO WE HAVE ANYONE HERE THAT WANTS TO ADDRESS THE TYPE A ECONOMIC DEVELOPMENT CORPORATION AND NO ONLINE SPEAKER CARDS HAVE BEEN FILED I UNDERSTAND.

SO THE NEXT ITEM IS ITEM 3A TO CONSIDER APPROVAL OF THE MINUTES FROM THE JULY 18TH ECONOMIC DEVELOPMENT CORPORATION, TYPE A MEETING.

[3A. Consider approval of the minutes from the July 18, 2022 Economic Development Corporation (Type A) meeting. (Staff Contact: Amanda Campos, City Secretary)]

MOVE TO APPROVE.

SECOND. HAVE A MOTION BY JOHNSON.

THE SECOND BY GREEN TO APPROVE.

WILL ALL IN FAVOR.

ALL RIGHT, I SEE 4-0 VOTE.

[3B. Consider approval of a resolution adopting the 4A Economic Development Corporation FY2022-2023 annual budget. (Staff Presenter: Martin Avila, Finance Director)]

THIS WILL BE PRESENTED BY MARTIN AVILA, OUR FINANCE DIRECTOR.

THANK YOU, PRESIDENT AND BOARD MEMBERS.

TODAY I WILL BE PRESENTING TO YOU THE 4A PROPOSED BUDGET FOR FISCAL YEAR 2023.

FOR THE 23 PROPOSED BUDGET, WE'RE PROJECTING ABOUT $4.9 MILLION IN EXPENDITURES FOR FISCAL YEAR 2023.

THE 4A SALES TAX REVENUE, WHICH IS THE PRIMARY THE MAJOR SOURCE OF REVENUE FOR THE 4A IS GOING TO BE ABOUT $7.1 MILLION.

PROPOSED ENDING FUND BALANCE FOR 2023 WILL BE ABOUT $3.3 MILLION.

IN THE PROPOSED BUDGET IT INCLUDES A $1.8 MILLION ALLOCATED FOR DEBT SERVICE.

IT HAS $1.3 MILLION FOR ECONOMIC DEVELOPMENT INCENTIVES AND ANOTHER $1.7 FOR PERSONNEL AND OPERATING COST.

AND WITHIN THE 4A ECONOMIC DEVELOPMENT PLAN AND PROJECTIONS, THERE IS A CAPITAL PROJECT PLAN OF WHICH WILL HAVE $35 MILLION ISSUED FOR CHISHOLM SUMMIT AND $20 MILLION EXPANSION OF BUSINESS PARK FOR APPROXIMATELY $20 MILLION.

AND THAT'S PART OF A FIVE YEAR CIP PLAN FOR THE 4A ECONOMIC DEVELOPMENT CORPORATION.

AGAIN, THIS IS SOMETHING THAT WE'VE PRESENTED SEVERAL TIMES THROUGHOUT.

THIS IS THE 4A FINANCIAL OVERVIEW.

YOU CONTINUE TO SEE THE FUND BALANCE IN FISCAL YEAR 22.

IT DOES GO DOWN TO ABOUT 10%.

THERE IS THE REASON FOR THAT.

THERE IS A $5 MILLION ITEM THAT'S IN THERE FOR FOR A CAPITAL OUTLAY PURCHASE.

BUT AGAIN, AS YOU CONTINUE TO MOVE FORWARD, IT CONTINUES TO GO BACK UP AND IT CONTINUES TO BE PROJECTED ABOUT 100 OVER 100% IN FISCAL YEAR 2027.

THIS IS THE 4A A LITTLE BIT MORE DETAIL AS IT RELATES TO THE 4A FUND BUDGET.

AND AGAIN, YOU'VE GOT PERSONNEL SERVICES, $487,000, YOU'VE GOT YOUR 4A DEBT, YOU HAVE PURCHASE SERVICES FOR $555,000 ECONOMIC INCENTIVES.

AND AGAIN, IT IS $7.3 MILLION IN TOTAL REVENUES, OFFSET BY TOTAL EXPENDITURES OF 4.9 MILLION FOR AN ENDING FUND BALANCE OF ABOUT $3.3 MILLION.

AND THE NEXT STEPS AS IT RELATES TO THE BUDGET PROCESS.

SEPTEMBER SIX, WE'LL HAVE OUR PUBLIC HEARING ON THE BUDGET AND TAX RATE AND THE FIRST READING OF THE BUDGET AND TAX RATE ORDINANCE.

AND ALSO SEPTEMBER 12 WE'LL HAVE OUR SPECIAL COUNCIL MEETING.

FINAL READING OF THE ORDINANCE TO APPROVE THE BUDGET AND THE TAX RATE.

AND AGAIN, ANY QUESTIONS, COMMENTS AS IT RELATES TO THE 4A BUDGET.

LET'S LET TAMARA GET SETTLED HERE AND SEE IF SHE HAS ANYTHING.

DON'T WANT TO RUSH ANYBODY HERE.

SORRY, WE STARTED WITH OUT YOU.

NO, THAT'S OKAY. WE HAVE OTHER MEETINGS BEHIND YOU.

GOOD. KEEP GOING.

I DON'T HAVE ANY QUESTIONS.

OKAY. ALL RIGHT.

MEMBERS, OTHER THAN TAMARA, ANY QUESTIONS ABOUT THE AGENDA ABOUT THE BUDGET.

ALL RIGHT. REMIND US WHAT THE $5 MILLION OUTLAY IS THAT DROPS THE RESERVE BALANCE FROM.

IT IS CURRENTLY A PURCHASE OF LAND RIGHT FROM THE 4A.

OKAY, GOT IT.

THIS IS THE TOD PURCHASE.

[00:05:01]

SORRY, I'VE BEEN IN HAWAII AND HAVE BEEN ON THE COCONUT TIME, SO NOW WE'RE BACK.

ALL RIGHT. ONE THING REAL QUICK NOW, MARTIN, I KNOW WE'RE GETTING INTO THE BUDGET CYCLE.

I'VE HAD SEVERAL CITIZENS MENTIONED THIS.

I WANT TO MAKE SURE WE SHARE IT WITH THEM.

4A IS STRICTLY SALES TAX BASE.

IT'S NOT COMING OUT OF YOUR PROPERTY TAXES.

IT IS IT IS NO PROPERTY TAX.

IT IS A PORTION IT TAKES.

I GUESS THAT WE THE NORMALLY THE LOCAL GOVERNMENT HAS A 2% AND IT TAKES HALF OF 1% TO THE 4A AND THE OTHER HALF WILL GO TO 4B AND THEN 1% GOES TO THE GENERAL FUND OUT OF THAT 2% STATE GETS 6.5%.

SO AND WE PROJECT SALES TAX COLLECTIONS RATHER CONSERVATIVELY.

HOW MANY YEARS OUT OF THE PAST YEARS YOU'VE BEEN HERE, HAVE WE UNDERESTIMATED HOW MUCH OUR SALES TAX? NEVER. I'VE NEVER UNDERESTIMATED IT.

I KNOW I THINK I'VE BEEN SO CONSERVATIVE AT TIMES THAT I OKAY. YEAH. I THINK WE AND I BELIEVE WE HAD AN INCREASE OF ABOUT 10% IN THE PAST FISCAL YEAR.

IS THAT MY RECOLLECTION? IN THE PAST? IN THE PAST YEAR? THE PAST. IT IS. IT IS AVERAGING BETWEEN.

THANKS. ALL RIGHT.

IF THERE ARE NO MORE QUESTIONS, ANYONE, I'LL TAKE A A MOTION ON ITEM 3B.

MOVE TO APPROVE.

MOTION BY STANFORD. SECOND BY GREEN.

ALL THOSE IN FAVOR AND I SEE ALL THE HANDS WENT UP SO THAT PASSES BY UNANIMOUS VOTE.

ALSO ON OUR AGENDA IS REQUESTS FROM THE TYPE A BOARD FOR ANY FUTURE AGENDA ITEMS OR REPORTS THAT YOU'D LIKE TO HEAR.

ARE THERE ANY. I SEE NONE.

THEN IF WE DO, WE HAVE A NEED FOR EXECUTIVE SESSION.

ALL RIGHT, WE DO NOT.

SO I WILL ADJOURN THE MEETING AT 4:23.

* This transcript was compiled from uncorrected Closed Captioning.