EDC USE OF FUNDS Salary & Benefits make up 31% of the Economic Development department’s spending. As with all other city staff, no pay increases are budgeted for Fiscal Year 2021. However, there is a one-time payment equal to 5% of each employee’s annual salary included. Benefit costs are expected to increase 14% for 2021. Services & Supplies make up 27% of the total EDC expenses. This includes sales tax abatement agreements, the expenses associated with daily activities of the office and with trade shows and promotions. Maintenance & Repair expenses are 39% of the EDC’s spending and the category is composed of expenses associated with FEDC owned properties and programs that encourage and assist in local business development. Expense Summary Salary & Benefits Services & Supplies Maintenance & Repair Capital Outlay Miscellaneous Economic Development
Projected
History 2019 Actual
276,067 268,673 324,259 9,423 878,422
2020 Budget
301,933 526,340 1,405,000 20,000 2,253,273
2020 Revised
240,939 314,001 694,859 37,000 27,399 1,314,198
Budget 2021 Budget
314,480 272,062 396,000 25,000 1,007,542
% Change
4.16% -48.31% -71.81% 25.00% -55.29%
ECONOMIC DEVELOPMENT DEBT SERVICE The Economic Development Corporation issued debt in Fiscal Year 2013 for the purpose of improving the downtown area. While the EDC’s debt was previously represented as being accounted for in a separate fund, in actual practice this debt is accounted for In the EDC’s operating fund as a separate department.
2013 Sales Tax Revenue Bonds
Original Issue Amount: $2,000,000 Original Date of Issue: September 19, 2013 Maturity Date: August 15, 2022
Series 2013 EDC Sales Tax Revenue Bonds Fiscal Year Principal Interest Total Payments 2021 100,000 76,528 176,528 2022 110,000 72,278 182,278 2023 115,000 67,603 182,603 2024 120,000 62,715 182,715 2025 125,000 57,615 182,615 2026 130,000 51,990 181,990 2027 135,000 46,140 181,140 2028 145,000 39,728 184,728 2029 150,000 32,840 182,840 2030 160,000 25,340 185,340 2031 165,000 17,340 182,340 2032 175,000 8,925 183,925 1,630,000 559,040 2,189,040
Use of Bond Proceeds “Proceeds from the sale of the Bonds will be used (i) for the acquisition, improvement and equipment of land, buildings and facilities to lease or sell to businesses in downtown Forney and beautification improvements in downtown Forney, (ii) for funding a debt service reserve fund, and (iii) to pay the costs of professional services including the costs of issuance of the Bonds.” 236
