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06.17.2015 PEDC MinutesFill Prosper MINUTES Meeting of the Prosper Economic Development Corporation ECONOMIC 170 N. Preston Rd., Suite 50 DEVELOPMENT Prosper, Texas 75078 CORPORATION Wednesday, June 17, 2015.6:00 p.m. Call to Order and Announce a Quorum is Present Board President Jim Wicker called the meeting to order at 6:00 p.m. Board members present were Mayor Ray Smith, Gary Jackson, David Bristol, Jim Wicker and Reno Jones. Board members Jordan Simms and Roger Thedford were absent. PEDC Executive Director Robert Winningham, Economic Development Specialist Garrett Weaver and Economic Development Assistant Sam Blatt were also present. Town of Prosper Finance Director Cheryl Davenport was also in attendance. 1. Comments from Citizens (The EDC may receive input from citizens only on topics that are not listed on the meeting agenda) There were no comments from citizens. 2. Approval of Minutes from the Regular Meeting on May 26, 2015 Gary Jackson moved to approve the May 26, 2015 Regular Meeting Minutes. The motion was seconded by Ray Smith and was unanimously approved by all Board members present. 3. Approval of PEDC Financial Reports for April and May 2015 and Take Any Additional Action Necessary Robert Winningham introduced the newly hired Town of Prosper Finance Director Cheryl Davenport to the Board. Winningham noted that Davenport was previously employed by the City of Sanger and the Town of Flower Mound. Treasurer Reno Jones presented the April and May 2015 Financials. Jones pointed out a slight change in the format of the Financials, noting that total liabilities and fund balance is now reported at the bottom of the first page. Jones noted a slight decrease in sales tax receipts for the previous two months. He surmised that the decreases were likely due to the recent increases of rain in the area. Jones added that Executive Director Robert Winningham recently met with a representative of the ProBuild operation in Prosper, who indicated that recent weather had affected their business as well. Prosper Finance Director Cheryl Davenport estimated that the icy weather in February and Spring Break in March could have had a possible effect. Jim Wicker noted that consumer spending nationally has declined, and shortened spending cycles could also provide an explanation for the decrease. Wicker added that if the downward trend continues over the coming months, then further investigation may be necessary. David Bristol noted that this fiscal year's sales tax receipts seem to track closely with historical sales tax receipt trends, but he also agreed with Wicker's sentiments. Gary Jackson asked if sales tax receivables remain a static number from month -to -month. Davenport replied that the sales tax receivable number is actual revenues collected from October and November and remains the same through the remainder of the budget year as to eliminate the need for estimating. This figure is then updated again in November of the next budget year. Wicker clarified that the number booked for sales tax receivables is reported 60 days in arrears. David Bristol moved to approve the April and May 2015 Financial Reports. The motion was seconded by Gary Jackson and was unanimously approved by all Board members present. 4. Approval of the PEDC Quarterly Investment Report for Period Ending March 31, 2015 Reno Jones presented the PEDC Quarterly Investment Report for Period Ending March 31, 2015. Jones noted a basis point increase and otherwise noted that the document remained the same as previous reports. Ray Smith commented that seventy-five (75) basis points was a good increase for the quarter. PEDC Minutes —page 2 June 17, 2015 Ray Smith moved to approve the PEDC Quarterly Investment Report for Period Ending March 31, 2015. The } motion was seconded by Reno Jones and was unanimously approved by all Board members present. 5. Consider and Act upon a Resolution Accepting the Independent Audit Report and Comprehensive Annual Financial Report (CAFR) for the Fiscal Year Ended September 30, 2014, as presented by Cara Hilbrich of Davis Kinard & Co., PC, Certified Public Accountants Town of Prosper Finance Director Cheryl Davenport presented the Audit Report and Comprehensive Annual Financial Report to the Board. Gary Jackson asked about noting future committed PEDC funds. Davenport pointed to Note No. 7 in the Audit Report which notes future committed funds. Davenport added that reporting contingencies under government Generally Accepted Accounting Principles (GAAP) is different than traditional GAAP as governments have the ability to not appropriate future funds due to uncertain future economic circumstances. Reno Jones moved to approve the Resolution Accepting the Independent Audit Report and Comprehensive Annual Financial Report (CAFR) for the Fiscal Year Ended September 30, 2014. The motion was seconded by Ray Smith and was unanimously approved by all Board members present. 6. Discuss and Possibly Take Action on FY2016 Budget Robert Winningham presented the first draft of the proposed FY2016 Budget to the Board. Winningham noted a twenty-six percent (26%) increase in projected sales tax receivables, which reflects the same projected sales tax receivables figure for the Town's Property Tax Reduction account. Town of Prosper Finance Director Cheryl Davenport confirmed Winningham's statement and noted that the Finance Department projects $980,000 in sales tax receipts for the remainder of FY2015 annualized from past months, which would actually equate to a thirteen percent (13%) increase to arrive at the $1.1 million projected sales tax receipt in the proposed FY2016 Budget. Ray Smith clarified that the twenty-six (26%) increase was in comparison to what was budgeted in FY2015, not from the $980,000 that is currently projected for FY2015. Gary Jackson asked if the Town is also using the thirteen percent (13%) increase in sales tax receipts for its budget to which Davenport responded affirmatively. Jim Wicker noted a $450,000 increase for the Project Incentives budget line. Winningham explained that the increase was to cover the PEDC's commitment to the West Prosper Road Improvements Agreement. Wicker noted that the Project Incentives budget line also included $100,000 that has been accepted in the Budget for past budget years. Wicker noted an increase in the Operating Expenses budget to cover known expenses and specifically an increase in the Promotional Expenses budget line. Winningham added that such an increase in Promotional Expenses is being proposed to allow for possible recruitment trips and marketing events and will not necessarily be spent. Wicker noted a revamp of the PEDC website and possible mission trips accounted for the majority of the increase to the Promotional Expenses budget. Gary Jackson noted an increase in the TMRS budget. Davenport noted that the TMRS rate increased and also noted that the Town now makes full contributions instead of partial contributions, as it has done in the past. Ray Smith noticed that the Life Insurance line -item had increased, as well as other Personnel Services items. Wicker inquired why these items increased significantly. Davenport replied that the Personnel Services numbers were generated by the previous Finance Director and said that she would need to review the numbers further to determine the reason for the increases. She added that any revised numbers will be presented to the Board at its next meeting. Reno Jones noted $10,000 allocated for revamping the PEDC's website. Winningham stated that the $10,000 bid for the website development was the best value in comparison to other bids received. Wicker asked what web design firm would be working on the PEDC site. Sam Blatt replied that the company is Oasis Logic out of Indianapolis. PEDC Minutes —page 3 June 17, 2015 Wicker addressed the issue of PEDC email servers frequently going offline. Winningham agreed and said that y the Town's contractor, NCC Data, was working to resolve this issue. David Bristol noted that the Administration Fees to the Town remained the same as in the previous budget year. No action was taken. 7. Convene into Closed Executive Session Pursuant to Texas Government Code, Section 551.087; Deliberation of Economic Development Negotiations to Deliberate Commercial and Financial Information and Economic Incentives relating to the following: Board President Jim Wicker called the meeting into Executive Session at 6:49 p.m. to discuss: Retail Development Office Development Board President Jim Wicker reconvened the meeting into Open Session at 7:11 p.m. 8. Reconvene into Open Session and Take Any Action Necessary as a Result of Closed Session Deliberations No action taken. 9. Town of Prosper Report: Update on Various Activities and Projects by the Town Mayor Ray Smith gave an update on various projects and issues pertaining to the Town of Prosper. 10. Executive Director's Report: Administrative and Marketing Activities of the PEDC and Upcoming Events PEDC Executive Director Robert Winningham presented updates on projects on which the PEDC staff is working. Winningham also presented the Economic Excellence Award that the PEDC recently earned from the Texas Economic Development Council (TEDC). 11. Confirm Next Regularly Scheduled PEDC Board Meeting on July 15, 2015 It was determined that the next regularly scheduled Board meeting will be held on July 15, 2015 pending any unforeseen circumstances. 12. Adjourn The PEDC Board meeting adjourned at 7:14 p.m. with a motion from Ray Smith and seconded by Gary Jackson. The motion was passed unanimously. i�Jor-d_an S' s — PEDC Secretary Date