Agenda No. 5.
SEDC MEMORANDUM
| SEDC Board Meeting: | 08/24/2023 |
| Department: | Economic Development Corporation |
| Subject: | Resolution 2023-9 - Briefing and possible action on recommending approval by the City Council for the proposed Schertz Economic Development Corporation FY 2023-24 Budget and Reserves. (S. Wayman) |
BACKGROUND
Typically the budget is presented during the month of June or July. With July meeting's postponement, we are providing the presentation today with the findings and presentation from staff. Pending no urgent modifications from the board, the budget will accompany the city's budget on the eventing of September 5th.
Our SEDC Bylaws state that, "Prior to the commencement of each fiscal year of the corporation the board shall adopt a proposed budget and expected revenues from sources set out in Section 4.5 of this article and proposed expenditures for the next ensuing fiscal year. The budget shall contain such classifications and shall be in such form as may be prescribed from time to time by council. The budge shall not be effective until it has been approved by the council."
Our SEDC Bylaws state that, "Prior to the commencement of each fiscal year of the corporation the board shall adopt a proposed budget and expected revenues from sources set out in Section 4.5 of this article and proposed expenditures for the next ensuing fiscal year. The budget shall contain such classifications and shall be in such form as may be prescribed from time to time by council. The budge shall not be effective until it has been approved by the council."
COMMUNITY BENEFIT
FISCAL IMPACT
Presented this evening will be a budget not unlike the budget we are currently working under. We hae adjusted our Total Revenue because of increased tax receipts and interest gained on the funding that we have currently.
Our overall revenue from sales taxes were raised 15% this year to $7,540,000. Accordingly, our Miscellaneous revenues which is primarily our interest off of our investment portfolio also increased dramatically to $1,315,000. Together this makes our total projected revenues for next fiscal year $8,855,000.
Some of the projects we see revenues going towards this coming year are a final phase for Schertz 312. Ace Mart, Sysco, and Caterpillar. Performance Agreements are in place for all of these and we anticipate the funding being provided this year. There are other projects underway, but most of our money paid out are operational grants when they complete their development and get certificates of occupancy, or when they are assessed their taxes during the next year. These projects are underway and if we do choose to enter into a performance agreement with them, it is likely we won't see the impact in the coming year.
Everything else is business as usual. Personnel costs will follow the city's lead this year. Most everything else, Advertising, Marketing, Utility services, Support services, Professional fees have all stayed pretty constant.
Our overall revenue from sales taxes were raised 15% this year to $7,540,000. Accordingly, our Miscellaneous revenues which is primarily our interest off of our investment portfolio also increased dramatically to $1,315,000. Together this makes our total projected revenues for next fiscal year $8,855,000.
Some of the projects we see revenues going towards this coming year are a final phase for Schertz 312. Ace Mart, Sysco, and Caterpillar. Performance Agreements are in place for all of these and we anticipate the funding being provided this year. There are other projects underway, but most of our money paid out are operational grants when they complete their development and get certificates of occupancy, or when they are assessed their taxes during the next year. These projects are underway and if we do choose to enter into a performance agreement with them, it is likely we won't see the impact in the coming year.
Everything else is business as usual. Personnel costs will follow the city's lead this year. Most everything else, Advertising, Marketing, Utility services, Support services, Professional fees have all stayed pretty constant.
SUMMARY OF RECOMMENDED ACTION
Recommend the SEDC Board pass Resolution 2023-9 providing a recommendation to the City Council for the SEDC Fiscal Year 2023-24 Budget.