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07.24.2012 EDC PacketECONOMIC DEVELOPMENT CORPORATION AGENDA BOARD OF DIRECTORS - REGULAR MEETING July 24, 2012 CITY HALL COUNCIL CHAMBERS, 405 MUNICIPAL DRIVE REGULAR SESSION - 7:15 PM I. CALL TO ORDER II. ROLL CALL III. MINUTES APPROVAL A. Consider approval of minutes from June 26, 2012 regular meeting. IV. REGULAR ITEMS A. Review and accept the KEDC Financial Report for May 2012. B. Conduct a public hearing on FY2012-13 economic development projects. C. Discuss and approve FY2012-13 Proposed Budget for recommendation to City Council. D. Consider authorizing the Executive Director to execute an agreement with JLB for the construction of the TownCenter parking lot. E. Review and discuss the hotel study from Interim Hospitality Consultants. V. STAFF ANNOUNCEMENTS/REPORTS A. Updates from the Executive Director, Orasi Development, and the Chamber of Commerce: 1.Chamber of Commerce update and introduction of the new Executive Director, Jesse Elizondo. 2.TownCenter status 3.New Hope & Bloxom Road Tax Increment Reinvestment Zone (TIRZ) with Tarrant County 4.Concept development for Oak Crest and Kennedale Parkway 5.TxDOT signage VI. EXECUTIVE SESSION A. The Economic Development Corporation will meet in closed session pursuant to Section 551.072 of the Texas Government Code to deliberate the purchase, lease, or value of real property. 1. Discuss Property at 1000 E Kennedale Parkway 2. Discuss bid submissions for city properties B. The Economic Development Corporation will meet in closed session pursuant to Section 551.087 of the Texas Government Code to deliberate the offer of a financial or other incentive to a business project with which the city is conducting economic development negotiations. 1. Incentives for development of property at 1201 West Kennedale Parkway 2. Incentives for development of property at 445 West Kennedale Parkway VII. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO EXECUTIVE SESSION, IF NEEDED VIII. ADJOURNMENT In compliance with the Americans with Disabilities Act, the City of Kennedale will provide for reasonable accommodations for persons attending City Council meetings. This building is wheelchair accessible, and parking spaces for disabled citizens are available. Requests for sign interpreter services must be made forty-eight (48) hours prior to the meetings. Please contact Amethyst Cirmo, City Secretary, at 817.985.2104 or (TDD) 1.800.735.2989 CERTIFICATION I certify that a copy of the July 24, 2012, Kennedale Economic Development Corporation agenda was posted on the City Hall bulletin board next to the main entrance of the City Hall building, 405 Municipal Drive, of the City of Kennedale, Texas, in a place convenient and readily accessible to the general public at all times and said agenda was posted at least 72 hours preceding the schedule time of said meeting, in accordance with Chapter 551 of the Texas Government Code. ￿Amethyst G. Cirmo, City Secretary Staff Report to the Board of Directors Date: July 24, 2012 Agenda Item No: MINUTES APPROVAL - A. I. Subject: Consider approval of minutes from June 26, 2012 regular meeting. II. Originated by: Amethyst G. Cirmo, City Secretary and Communications Coordinator III. Summary: Please see the attached minutes. IV. Recommendation: Approve V. Alternative Actions: VI. Attachments: 1.minutes 06.26.2012 EDC Minutes.doc ECONOMIC DEVELOPMENT CORPORATION MINUTES BOARD OF DIRECTORS - REGULAR MEETING June 26, 2012 CITY HALL COUNCIL CHAMBERS, 405 MUNICIPAL DRIVE I. CALL TO ORDER President Mundy called the meeting to order at 7:15 PM II. ROLL CALL Roll Call Present Darrell Erwin, Robert Mundy, Donnie Graham, Mark Yeary, Rebecca Mowell, Pat Turner, Beverly Hayes III. WORKSHOP ROLL CALL (City Council): John Clark, Brian Johnson, Liz Carrington, Frank Fernandez, Kelly Turner. At this time the Economic Development Corporation will hold a joint meeting with the Kennedale City Council to discuss the following items: A. Discuss development preferences for Oak Crest and Kennedale Parkway. Bob Hart approached the EDC and City Council with regard to the design, architectural, and development goals of both groups. Both City Council and the EDC noted a preference for modern, clean, structures. Stonework was also mentioned. B. Discuss TxDOT signage on Interstate Highway 20. Bob Hart noted that the City and the EDC would need to begin to discuss implementation of signage on Interstate Highway 20 to help drive business development in the city. IV. MINUTES APPROVAL A. Consider approval of minutes from regular meeting dated May 22, 2012. Motion , Action Approve, Moved By Darrell Erwin, Seconded By Rebecca Mowell Motion Passed Unanimously V. REGULAR ITEMS A. Review KEDC Financial Report. Sakura Dedrick approached the board with the most recent financial report. No significant changes were noted. Motion , Action Approve, Moved By Rebecca Mowell, Seconded By Mark Yeary Motion Passed Unanimously B. Consider first amendment to the Economic Development Corporation's agreement for development of the Kennedale TownCenter. Bob Hart noted that this amendment would extend the time period for Cypress Properties to develop certain pads of land in the TownCenter. Motion , Action Approve, Moved By Rebecca Mowell, Seconded By Pat Turner Motion Passed Unanimously VI. STAFF ANNOUNCEMENTS/REPORTS A. Updates from the Executive Director, Orasi Development, and the Kennedale Chamber of Commerce. 1. Chamber of Commerce update Bob Hart noted that the Chamber had recently hired a new executive director, Jesse Elizondo. 2. TownCenter status Bob Hart explained that the parking lot around the old Subway building area would need to be completed in the near future and that he was currently gathering financial and other information on this project. 3. Property listing This discuss was postponed until the July meeting. 4. New Hope Road TIRZ District with Tarrant County Bob Hart noted that the Council would be voting on this item at the July 12, 2012 regular City Council meeting. President Mundy closed the regular session and entered executive session at 8:33 PM. VII. EXECUTIVE SESSION A. The Economic Development Corporation will meet in closed session pursuant to Section 551.072 of the Texas Government Code to deliberate the purchase, exchange, lease, or value of real property. 1. Discuss property at 1000 E Kennedale Parkway. B. The Economic Development Corporation will meet in closed session pursuant to Section 551.087 of the Texas Government Code to deliberate the offer of a financial or other incentive to a business project with which the city is conducting economic development negotiations. 1. Incentives for development of property at 1201 West Kennedale Parkway. 2. Incentives for development of property at 445 West Kennedale Parkway. VIII. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO EXECUTIVE SESSION, IF NEEDED President Mundy reopened the regular session at 9:02 PM. No action pursuant to executive session was necessary. The next regular EDC meeting will be held on July 24, 2012 at 7:15 PM. IX. ADJOURNMENT Motion , Action Adjourn, Moved By Donnie Graham, Seconded By Rebecca Mowell Motion Passed Unanimously The meeting was adjourned at 9:07 PM Staff Report to the Board of Directors Date: July 24, 2012 Agenda Item No: REGULAR ITEMS - A. I. Subject: Review and accept the KEDC Financial Report for May 2012. II. Originated by: Sakura Moten-Dedrick, Director of Finance & IT III. Summary: IV. Recommendation: Approve V. Alternative Actions: VI. Attachments: 1.May 2012 EDC Financials 20120724 EDC May 12 Financials.pdf MAY 2012 ECONOMIC DEVELOPMENT CORPORATION FINANCIALS Budget/Amendment No changes. Year -To -Date • Ad Valorem Tax: Decrease in comparison over this time last year . Based on MMD assessment and timing of renter payment . • Sales /Beverage Tax: Increase in co mparison over this time last year . Receipts are trending upward with the economy (see Monthly Graph, 3 -Year Historical Graph, 10 -Year Historical Data). • Investment Earnings : Increase in comparison over this time last year . • Miscellaneous Income: Increase i n comparison over this time last year . • Surplus Sales/Rentals : Decrease in comparison over this time last year. Please note that both April and May’s income was not posted until June. April had reconciliation issues that we worked through with Cypress, and May wasn’t received and book until the first week in June. Taking both payments into consideration, May’s financials should be $127,620. This update will , in addition to June’s income, will reflect on June ’s financials. • Transfers: No significant change. • Personnel : No significant change. • Supplies: Increase in comparison over this time last year . This year included costs tied to the TownCenter Grand Reopening and 9/11 Memorial. • Maintenance: Increase in comparison over this time last year. This is tied to costs with the Town Shopping Center. • S undry : Increase in comparison over this time last year . This year included approximately $6 0K of Engineering expenses tied to the Green Ribbon Grant Project. • Debt: Increase in comparison over this time last year . Thi s year included the repayment of over $1M in Texas Leverage Fund principal back to the state per the EDC Board’s direction. • Transfers: Increase in comparison over this time last year . This reflects total reimbursement of debt payment back to General Fund for recent $2.0M Bond Issuance. • Capital: Decrease in comparison over this time last year . E stimate We anticipate a FY11/12 ending fund balance of $146,573 ($26,707 operations / $0 capital bond project / $119,866 reserve bond ). CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES INCOME STATEMENT "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND FY10-11 FY10-11 FY10-11 FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 INCOME STATEMENT BUDGET AMENDED YTD MAY ACTUAL PROPOSED AMENDED YTD MAY ESTIMATE OPERATING REVENUES 587,149 587,149 358,615 2,349,305 1,295,404 1,295,404 339,523 696,118 OPERATING EXPENDITURES (608,509) (608,509) (860,501) (1,180,427) (2,837,324) (2,837,324) (1,897,226) (2,114,783) OPERATING INCOME/(LOSS)(21,360) (21,360) (501,886) 1,168,878 (1,541,920) (1,541,920) (1,557,704) (1,418,665) NONOPERATING REVENUES/(EXPENSES)INTEREST EARNINGS 4,200 4,200 126 130 250 250 700 950 TRANSFERS IN - - - - - - - - (TRANSFER OUT)(154,619) (154,619) (39,809) (154,619) (153,119) (153,119) (153,119) (153,119) NET OPERATING INCOME/(LOSS)(171,779) (171,779) (541,569) 1,014,389 (1,694,788) (1,694,788) (1,710,122) (1,570,833) BEGINNING FUND BALANCE 583,151 $ 583,151 $ 583,151 $ 583,151 $ 1,597,540 $ 1,597,540 $ 1,597,540 $ 1,597,540 $ ENDING FUND BALANCE (EXCLUDING OTHER FUNDS)411,372 $ 411,372 $ 41,582 $ 1,597,540 $ (97,248)$ (97,248)$ (112,582)$ 26,707 $ 95: EDC4B RESERVE FUND 120,137 $ 120,137 $ 119,739 $ 119,766 $ 120,006 $ 120,006 $ 119,826 $ 119,866 $ 19: EDC4B CAPITAL BOND FUND 1,017,184 $ 1,017,184 $ 643,206 $ 464,133 $ 119,383 $ 119,383 $ 110,081 $ (0)$ ENDING FUND BALANCE (INCLUDING OTHER FUNDS)1,548,693 $ 1,548,693 $ 804,527 $ 2,181,439 $ 142,141 $ 142,141 $ 117,325 $ 146,573 $ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES FUND SUMMARY BY CATEGORY "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND FY10-11 FY10-11 FY10-11 FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY10-11 FY11-12 CATEGORY BUDGET AMENDED YTD MAY ACTUAL PROPOSED AMENDED YTD MAY ESTIMATE YTD %YTD % BEGINNING FUND BALANCE 583,151 $ 583,151 $ 583,151 $ 583,151 $ 1,597,540 $ 1,597,540 $ 1,597,540 $ 1,597,540 $ AD VALOREM TAXES 23,467 23,467 39,242 52,138 42,466 42,466 26,709 43,653 167.2%62.9% SALES/BEVERAGE TAXES 324,438 324,438 182,419 366,165 352,666 352,666 202,997 397,943 56.2%57.6%INVESTMENT EARNINGS 4,200 4,200 126 130 250 250 700 950 3.0%280.1% MISCELLANEOUS INCOME - - - 21,916 676,000 676,000 5,250 5,250 0.0%0.8% SURPLUS SALES/RENTALS 239,244 239,244 136,954 209,087 224,272 224,272 104,566 249,272 57.2%46.6%TRANSFERS -$ -$ -$ 1,700,000 $ -$ -$ -$ -$ 0.0%0.0% TOTAL REVENUES 591,349 $ 591,349 $ 358,741 $ 2,349,435 $ 1,295,654 $ 1,295,654 $ 340,223 $ 697,068 $ 60.7%26.3% PERSONNEL - - - - - - - - 0.0%0.0% SUPPLIES 31,610 31,610 3,339 22,314 21,344 21,344 13,114 24,475 10.6%61.4% MAINTENANCE 17,790 17,790 18,066 21,749 22,856 22,856 21,150 23,631 101.5%92.5%SUNDRY 249,810 249,810 162,109 243,564 265,906 265,906 218,394 353,308 64.9%82.1% DEBT 111,798 111,798 125,701 125,701 313,243 313,243 1,236,617 1,250,160 112.4%394.8% TRANSFERS 154,619 154,619 39,809 154,619 153,119 153,119 153,119 153,119 25.7%100.0%CAPITAL 197,501 197,501 551,286 767,099 2,213,975 2,213,975 407,952 463,209 279.1%18.4% TOTAL EXPENDITURES 763,128 $ 763,128 $ 900,310 $ 1,335,046 $ 2,990,442 $ 2,990,442 $ 2,050,345 $ 2,267,901 $ 118.0%68.6% REVENUES OVER EXPENDITURES (171,779)$ (171,779)$ (541,569)$ 1,014,389 $ (1,694,788)$ (1,694,788)$ (1,710,122)$ (1,570,833)$ ENDING FUND BALANCE 411,372 $ 411,372 $ 41,582 $ 1,597,540 $ (97,248)$ (97,248)$ (112,582)$ 26,707 $ ADJUSTMENTS FUND BALANCE AS % OF EXP 53.9%53.9%4.6%119.7%-3.3%-3.3%-5.5%1.2% RESERVE (NO REQUIREMENT)-$ -$ -$ -$ -$ -$ -$ -$ RESERVE SURPLUS/(SHORTFALL)411,372 $ 411,372 $ 41,582 $ 1,597,540 $ (97,248)$ (97,248)$ (112,582)$ 26,707 $ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES REVENUE LINE ITEM SUMMARY "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND FY10-11 FY10-11 FY10-11 FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY10-11 FY11-12 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD MAY ACTUAL PROPOSED AMENDED YTD MAY ESTIMATE YTD %YTD % 4001-00-00 PROPERTY TAX-CURRENT YEAR - - - - - - - - 0.0%0.0%4002-00-00 MMD TAX-CURRENT YEAR 23,467 23,467 39,242 52,138 42,466 42,466 26,709 43,653 167.2%62.9%AD VALOREM TAXES 23,467 $ 23,467 $ 39,242 $ 52,138 $ 42,466 $ 42,466 $ 26,709 $ 43,653 $ 167.2%62.9% 4081-00-00 SALES TAX 324,438 324,438 182,419 366,165 352,666 352,666 202,997 397,943 56.2%57.6% 4082-00-00 MIXED BEVERAGE TAX - - - - - - - - 0.0%0.0%SALES/BEVERAGE TAXES 324,438 $ 324,438 $ 182,419 $ 366,165 $ 352,666 $ 352,666 $ 202,997 $ 397,943 $ 56.2%57.6% 4401-00-00 INVESTMENT INCOME 4,200 4,200 126 130 250 250 700 950 3.0%280.1%INVESTMENT EARNINGS 4,200 $ 4,200 $ 126 $ 130 $ 250 $ 250 $ 700 $ 950 $ 3.0%280.1% 4409-00-00 MISCELLANEOUS INCOME - - - 21,916 676,000 676,000 5,250 5,250 0.0%0.8% 4411-00-00 TEXAS LEVERAGE FUND PROGRAM - - - - - - - - 0.0%0.0%4415-00-00 INSURANCE REIMBURSEMENT - - - - - - - - 0.0%0.0%MISCELLANEOUS INCOME -$ -$ -$ 21,916 $ 676,000 $ 676,000 $ 5,250 $ 5,250 $ 0.0%0.8% 4805-00-00 RENTAL FEES-SHOPPING CENTER 235,244 235,244 137,203 208,534 220,272 220,272 104,364 245,272 58.3%47.4%4806-00-00 RENTAL INSURANCE 4,000 4,000 (249) 553 4,000 4,000 202 4,000 -6.2%5.0%SURPLUS SALES/RENTALS 239,244 $ 239,244 $ 136,954 $ 209,087 $ 224,272 $ 224,272 $ 104,566 $ 249,272 $ 57.2%46.6% 4902-00-00 PROCEEDS - DEBT/LOAN ISSUANCE - - - 1,700,000 - - - - 0.0%0.0%TRANSFERS -$ -$ -$ 1,700,000 $ -$ -$ -$ -$ 0.0%0.0% TOTAL REVENUES 591,349 $ 591,349 $ 358,741 $ 2,349,435 $ 1,295,654 $ 1,295,654 $ 340,223 $ 697,068 $ 60.7%26.3% TOTAL REVENUES (EXCLUDING INTEREST/TRANSFERS)587,149 $ 587,149 $ 358,615 $ 649,305 $ 1,295,404 $ 1,295,404 $ 339,523 $ 696,118 $ 10% ADMIN CHARGE-GENERAL FUND 58,715 58,715 42,250 64,931 129,540 129,540 33,952 69,612 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 $65,000 $70,000 $75,000 $80,000 $85,000 $90,000 $95,000 $100,000 $105,000 $110,000 $115,000 $120,000 $125,000 $130,000 $135,000 $140,000 $145,000 $150,000 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP Economic Development Corporation Sales Tax Revenue Three Year History 2008-09 ACTUAL 2009-10 ACTUAL 2010-11 ACTUAL 2009-10 ACTUAL 2011-12 ACTUAL 24,368 39,515 24,331 28,700 38,020 25,672 27,583 37,335 24,899 25,572 28,137 36,010 24,368 39,515 24,331 28,700 38,020 24,647 26,558 36,310 23,874 24,547 26,962 34,835 22,693 30,206 21,542 21,227 27,504 21,135 21,155 36,308 32,887 21,031 37,506 30,582 31,540 37,196 38,349 29,926 30,992 24,484 37,230 41,230 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP Year Economic Development Corporation Sales Tax Revenue FY2011 -12 Monthly History 2010-11 ACTUAL 2011-12 BUDGET Sales Tax Collections ECONOMIC DEVELOPMENT CORPORATION 4B SALES TAX - $0.005 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2009-10 GAIN/GAIN/YTD 2009-10 2010-11 2010-11 2010-11 GAIN/GAIN/YTD 2010-11 2011-12 2011-12 2011-12 GAIN/GAIN/YTD 2011-12 ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL YTD LOSS LOSS CUM ACTUAL BUDGET ACTUAL YTD LOSS LOSS CUM ACTUAL BUDGET ACTUAL YTD LOSS LOSS CUM ESTIMATE OCT 25,015 26,737 27,574 30,493 26,719 21,880 22,001 19,568 19,568 (2,433) -11.1%-11.1%19,568 22,693 24,368 24,368 1,674 24.5%24.5%24,368 24,368 31,540 31,540 7,172 29.4%29.4%31,540 NOV 34,511 33,807 28,806 33,284 41,109 30,548 33,732 27,081 46,649 (6,651) -19.7%-16.3%27,081 30,206 39,515 63,882 9,309 45.9%36.9%39,515 39,515 37,196 68,736 (2,319) -5.9%7.6%37,196 DEC 23,399 26,428 23,373 24,372 23,107 23,438 30,093 18,417 65,067 (11,675) -38.8%-24.2%18,417 21,542 24,331 88,213 2,788 32.1%35.6%24,331 24,331 38,349 107,085 14,019 57.6%21.4%38,349 JAN 23,198 21,991 22,728 23,443 26,331 22,677 19,433 18,102 83,169 (1,331) -6.8%-21.0%18,102 21,227 28,700 116,914 7,473 58.5%40.6%28,700 28,700 29,926 137,011 1,226 4.3%17.2%29,926 FEB 32,631 35,744 33,862 35,625 29,751 29,839 33,556 24,379 107,548 (9,177) -27.3%-22.5%24,379 27,504 38,020 154,933 10,516 56.0%44.1%38,020 38,020 30,992 168,004 (7,027) -18.5%8.4%30,992 MAR 23,889 22,465 21,345 24,975 16,997 21,830 17,063 18,010 125,557 947 5.6%-19.5%18,010 21,135 25,672 180,605 4,537 42.5%43.8%25,672 24,647 24,484 192,488 (162) -4.6%6.6%24,484 APR 20,435 23,465 21,936 24,036 25,672 24,231 22,636 18,030 143,587 (4,607) -20.4%-19.6%18,030 21,155 27,583 208,188 6,428 53.0%45.0%27,583 26,558 37,230 229,718 10,672 35.0%10.3%37,230 MAY 35,360 36,121 36,355 35,851 32,194 31,278 30,806 55,683 199,269 24,876 80.8%-4.8%55,683 36,308 37,335 245,523 1,028 -32.9%23.2%37,335 36,310 41,230 270,948 4,920 10.4%10.4%41,230 JUN 22,968 33,889 24,011 27,616 26,993 24,985 21,608 29,762 229,031 8,154 37.7%-0.8%29,762 32,887 24,899 270,422 (7,988) -16.3%18.1%24,899 23,874 24,369 295,317 494 -2.1%9.2%24,369 JUL 25,600 25,928 25,987 24,299 27,477 30,517 17,906 141,681 370,712 123,774 691.2%49.0%141,681 21,031 25,572 295,994 4,540 -82.0%-20.2%25,572 24,547 40,830 336,146 16,283 59.7%13.6%40,830 AUG 32,378 30,767 34,222 35,983 28,340 38,499 33,664 34,381 405,093 717 2.1%43.4%34,381 37,506 28,137 324,131 (9,368) -18.2%-20.0%28,137 26,962 26,962 363,108 - -4.2%12.0%26,962 SEP 26,060 25,710 22,677 27,368 30,430 23,534 24,245 27,457 432,550 3,212 13.2%41.0%27,457 30,582 36,010 360,141 5,428 31.1%-16.7%36,010 34,835 34,835 397,943 - -3.3%10.5%34,835 325,445 343,051 322,876 347,346 335,121 323,256 306,744 432,550 125,806 432,550 323,775 360,141 36,365 360,141 352,666 397,943 45,278 397,943 -2.62%5.41%-5.88%7.58%-3.52%-3.54%-5.11%41.01%41.01%-25.15%-16.74%-16.74%-2.08%10.50%10.50% ACCOUNT OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP TOTAL INCOME Rental Income 17,468.00 $ 17,468.00 $ 17,468.00 $ 17,468.00 $ 14,668.00 $ 15,090.92 $ 15,090.92 $ 15,090.92 $ 6,690.92 $ -$ -$ -$ 136,503.68 $ Tax Escrows 3,224.02 $ 11,399.98 $ 3,224.02 $ 3,224.02 $ 2,898.37 $ 2,738.95 $ 13,812.15 $ 2,738.95 $ 393.26 $ -$ -$ -$ 43,653.72 $ Insurance Escrows 38.37 $ 38.37 $ 38.37 $ 38.37 $ 23.95 $ 24.37 $ 1,355.60 $ 24.37 $ 24.37 $ -$ -$ -$ 1,606.14 $ CAM Escrows 814.70 $ 814.70 $ 814.70 $ 814.70 $ 737.16 $ 737.16 $ 722.69 $ 737.16 $ 737.16 $ -$ -$ -$ 6,930.13 $ Security Deposit -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL INCOME 21,545.09 $ 29,721.05 $ 21,545.09 $ 21,545.09 $ 18,327.48 $ 18,591.40 $ 30,981.36 $ 18,591.40 $ 7,845.71 $ -$ -$ -$ 188,693.67 $ EXPENSES General & Admin -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Property Mgmt 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ -$ -$ -$ 4,500.00 $ Office Expenses -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Legal Services -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Rental Commissions -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Electricity 329.26 $ 361.84 $ 384.35 $ 458.41 $ -$ -$ 749.37 $ -$ 325.66 $ -$ -$ -$ 2,608.89 $ Sweeping 326.00 $ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 326.00 $ Porter service -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Landscape 638.28 $ 638.28 $ 638.28 $ 1,442.68 $ 638.00 $ 638.28 $ 638.28 $ 638.28 $ 638.28 $ -$ -$ -$ 6,548.64 $ Fire Sprinkler/Alarm 150.00 $ -$ -$ 150.00 $ -$ -$ 150.00 $ -$ -$ -$ -$ -$ 450.00 $ Asphalt -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Landscape Materials -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Maintenance/Construction 3,299.60 $ 5,132.36 $ -$ 1,650.00 $ 607.58 $ 1,065.00 $ 1,902.23 $ -$ 1,327.34 $ -$ -$ -$ 14,984.11 $ Roofing Repair -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Signage -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL EXPENSES 5,243.14 $ 6,632.48 $ 1,522.63 $ 4,201.09 $ 1,745.58 $ 2,203.28 $ 3,939.88 $ 1,138.28 $ 2,791.28 $ -$ -$ -$ 29,417.64 $ ADJUSTMENTS Operating Balance -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL ADJUSTMENTS -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ NET PROFIT/(LOSS) - CHECK 16,301.95 $ 23,088.57 $ 20,022.46 $ 17,344.00 $ 16,581.90 $ 16,388.12 $ 27,041.48 $ 17,453.12 $ 5,054.43 $ -$ -$ -$ 159,276.03 $ Total Rental Income Posted 18,282.70 $ 18,282.70 $ 18,282.70 $ 18,282.70 $ 15,405.16 $ 15,828.08 $ 15,813.61 $ 15,828.08 $ 7,428.08 $ -$ -$ -$ 143,433.81 $ CYPRESS HISTORY FOR KENNEDALE TOWN SHOPPING CENTER FY2011-2012 ACCOUNT OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP TOTAL INCOME Rental Income 16,568.00 $ 16,568.00 $ 16,568.00 $ 16,568.00 $ 16,568.00 $ 16,568.00 $ 16,568.00 $ 16,568.00 $ 16,568.00 $ 16,568.00 $ 17,468.00 $ 17,468.00 $ 200,616.00 $ Tax Escrows 1,669.00 $ 1,669.00 $ 1,669.00 $ 3,455.24 $ 12,434.32 $ 7,544.56 $ 3,953.93 $ 3,224.02 $ 3,224.02 $ 3,224.02 $ 3,224.02 $ 3,224.02 $ 48,515.15 $ Insurance Escrows 142.00 $ 142.00 $ 142.00 $ 90.81 $ 38.37 $ 38.37 $ 38.37 $ 38.37 $ 38.37 $ 687.30 $ 38.37 $ 38.37 $ 1,472.70 $ CAM Escrows 1,040.00 $ 1,040.00 $ 1,040.00 $ 983.50 $ 814.70 $ 814.70 $ 814.70 $ 814.70 $ 814.70 $ 814.70 $ 814.70 $ 814.70 $ 10,621.10 $ Security Deposit -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL INCOME 19,419.00 $ 19,419.00 $ 19,419.00 $ 21,097.55 $ 29,855.39 $ 24,965.63 $ 21,375.00 $ 20,645.09 $ 20,645.09 $ 21,294.02 $ 21,545.09 $ 21,545.09 $ 261,224.95 $ EXPENSES General & Admin -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Property Mgmt 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 500.00 $ 6,000.00 $ Office Expenses -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Legal Services -$ -$ -$ -$ -$ -$ 80.00 $ -$ -$ -$ -$ -$ 80.00 $ Rental Commissions -$ -$ -$ -$ -$ 5,040.00 $ 5,040.00 $ -$ -$ -$ -$ -$ 10,080.00 $ Electricity 35.99 $ 35.99 $ 71.98 $ 35.99 $ 90.30 $ 232.48 $ 294.52 $ 415.64 $ 700.26 $ 625.61 $ 373.86 $ 296.64 $ 3,209.26 $ Sweeping 300.00 $ 300.00 $ 300.00 $ 300.00 $ 300.00 $ 300.00 $ -$ -$ -$ -$ -$ -$ 1,800.00 $ Porter service -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Landscape 320.00 $ 320.00 $ 320.00 $ 320.00 $ 870.00 $ 620.00 $ 638.28 $ 638.28 $ 638.28 $ 1,618.28 $ 638.28 $ 638.28 $ 7,579.68 $ Fire Sprinkler/Alarm 150.00 $ -$ -$ 150.00 $ -$ -$ 150.00 $ -$ -$ 150.00 $ -$ -$ 600.00 $ Asphalt -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Landscape Materials -$ -$ -$ -$ -$ 2,963.38 $ -$ -$ -$ -$ -$ -$ 2,963.38 $ Maintenance/Construction 75.00 $ -$ -$ 2,725.83 $ 3,179.04 $ 2,725.83 $ -$ -$ -$ -$ -$ -$ 8,705.70 $ Roofing Repair -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Signage -$ -$ -$ -$ -$ -$ 100.00 $ -$ -$ -$ -$ -$ 100.00 $ TOTAL EXPENSES 1,380.99 $ 1,155.99 $ 1,191.98 $ 4,031.82 $ 4,939.34 $ 12,381.69 $ 6,802.80 $ 1,553.92 $ 1,838.54 $ 2,893.89 $ 1,512.14 $ 1,434.92 $ 41,118.02 $ ADJUSTMENTS Operating Balance -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TOTAL ADJUSTMENTS -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ NET PROFIT/(LOSS) - CHECK 18,038.01 $ 18,263.01 $ 18,227.02 $ 17,065.73 $ 24,916.05 $ 12,583.94 $ 14,572.20 $ 19,091.17 $ 18,806.55 $ 18,400.13 $ 20,032.95 $ 20,110.17 $ 220,106.93 $ Total Rental Income Posted 17,608.00 $ 17,608.00 $ 17,608.00 $ 17,551.50 $ 17,382.70 $ 17,382.70 $ 17,382.70 $ 17,382.70 $ 17,382.70 $ 17,382.70 $ 18,282.70 $ 18,282.70 $ 211,237.10 $ CYPRESS HISTORY FOR KENNEDALE TOWN SHOPPING CENTER FY2010-2011 CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND 01: ADMINISTRATION FY10-11 FY10-11 FY10-11 FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY10-11 FY11-12 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD MAY ACTUAL PROPOSED AMENDED YTD MAY ESTIMATE YTD %YTD % 5101-01-00 SALARIES - - - - - - - - 0.0%0.0% 5107-01-00 OVERTIME - - - - - - - - 0.0%0.0% 5111-01-00 AUTO ALLOWANCE - - - - - - - - 0.0%0.0%5114-01-00 LONGEVITY - - - - - - - - 0.0%0.0% 5115-01-00 RETIREMENT - - - - - - - - 0.0%0.0%5116-01-00 UNEMPLOYMENT INSURANCE - - - - - - - - 0.0%0.0% 5117-01-00 FICA - - - - - - - - 0.0%0.0% 5118-01-00 MEDICAL INSURANCE - - - - - - - - 0.0%0.0%5120-01-00 LIFE INSURANCE - - - - - - - - 0.0%0.0% 5121-01-00 DENTAL INSURANCE - - - - - - - - 0.0%0.0%5122-01-00 VISION INSURANCE - - - - - - - - 0.0%0.0% 5190-01-00 VACATION/SICK/TERM/LEAVE ADJ - - - - - - - - 0.0%0.0% PERSONNEL -$ -$ -$ -$ -$ -$ -$ -$ 0.0%0.0% 5220-01-00 UNIFORMS 300 300 - - 300 300 - - 0.0%0.0% 5240-01-00 PRINTED SUPPLIES 22,000 22,000 3,327 4,466 16,544 16,544 4,875 16,544 15.1%29.5% 5260-01-00 GENERAL OFFICE SUPPLIES 250 250 12 12 250 250 - - 4.7%0.0%5261-01-00 POSTAGE 500 500 - 59 250 250 58 250 0.0%23.1% 5280-01-00 MINOR EQUIP/SMALL TOOLS<$5K - - - - - - - - 0.0%0.0%5290-01-00 EXPENDABLE SUPPLIES 4,000 4,000 - 17,778 4,000 4,000 8,181 7,681 0.0%204.5% SUPPLIES 27,050 $ 27,050 $ 3,339 $ 22,314 $ 21,344 $ 21,344 $ 13,114 $ 24,475 $ 12.3%61.4% 5403-01-00 BUILDING MAINTENANCE - - - - - - 775 775 0.0%#DIV/0!5440-01-00 OFFICE EQUIP/SOFTWARE MAINT - - - - - - - - 0.0%0.0% MAINTENANCE -$ -$ -$ -$ -$ -$ 775 $ 775 $ 0.0%#DIV/0! 5501-01-00 ADVERTISING 5,000 5,000 - 1,436 5,000 5,000 2,871 5,000 0.0%57.4%5510-01-00 ASSOC DUES/PUBLICATIONS 3,375 3,375 1,006 2,460 2,350 2,350 7,334 7,335 29.8%312.1% 5512-01-00 CONTRACTUAL SERVICES - - - - - - - - 0.0%0.0%5525-01-00 TRAINING/SEMINARS 1,000 1,000 - - 1,000 1,000 - - 0.0%0.0% 5565-01-00 LEGAL SERVICES 25,000 25,000 2,593 7,581 10,000 10,000 36,879 40,200 10.4%368.8% 5567-01-00 AUDIT SERVICES 1,500 1,500 - 1,500 1,500 1,500 1,500 1,500 0.0%100.0%5569-01-00 IT SUPPORT - - - - - - - - 0.0%0.0% 5570-01-00 SPECIAL SERVICES 95,420 95,420 72,352 126,611 86,036 86,036 63,803 85,000 75.8%74.2%5575-01-00 EQUIPMENT RENTAL - - - - - - - - 0.0%0.0% 5578-01-00 TRAVEL 700 700 22 22 700 700 - - 3.2%0.0% 5580-01-00 ENGINEERING SERVICES - - - - - - 53,991 88,000 0.0%#DIV/0!5585-01-00 TELEPHONE SERVICES - - - - - - - - 0.0%0.0% 5595-01-00 ADMIN CHARGE-GENERAL FUND 58,715 58,715 42,250 69,885 129,540 129,540 33,952 69,612 72.0%26.2%SUNDRY 190,710 $ 190,710 $ 118,223 $ 209,494 $ 236,126 $ 236,126 $ 200,331 $ 296,647 $ 62.0%84.8% 5610-01-00 VISUAL GRANT - - - - - - - - 0.0%0.0%5615-01-00 FUNCTIONAL GRANT - - - - - - - - 0.0%0.0% 5625-01-00 ISSUANCE COST - - - - - - - - 0.0%0.0% DEBT -$ -$ -$ -$ -$ -$ -$ -$ 0.0%0.0% 5701-01-00 TRANSFER OUT-GENERAL FUND - - - - - - - - 0.0%0.0%5714-01-00 TRANSFER OUT-DEDICATION FUND - - - - - - - - 0.0%0.0% 5795-01-00 TRANSFER OUT-EDC RESERVE FUND - - - - - - - - 0.0%0.0% TRANSFERS -$ -$ -$ -$ -$ -$ -$ -$ 0.0%0.0% 5800-01-00 LAND 10,000 10,000 9,242 293,392 325,000 325,000 161,582 165,000 92.4%49.7%5813-01-00 KENNEDALE ENTRANCE SIGN 45,000 45,000 - - 45,000 45,000 - - 0.0%0.0% 5820-01-00 BUILDING IMPROVEMENT 15,000 15,000 - - 15,000 15,000 39,209 39,209 0.0%261.4% 5875-01-00 CONSTRUCTION - - - 18,644 - - 83,138 84,000 0.0%#DIV/0!CAPITAL 70,000 $ 70,000 $ 9,242 $ 312,036 $ 385,000 $ 385,000 $ 283,928 $ 288,209 $ 13.2%73.7% TOTAL EXPENDITURES 287,760 $ 287,760 $ 130,804 $ 543,844 $ 642,470 $ 642,470 $ 498,148 $ 610,106 $ 45.5%77.5% CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND 01: ADMINISTRATION 03: DEBT SERVICE FY10-11 FY10-11 FY10-11 FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY10-11 FY11-12 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD MAY ACTUAL PROPOSED AMENDED YTD MAY ESTIMATE YTD %YTD % 5620-01-03 ISSUANCE COSTS - - - - - - - - 0.0%0.0% 5621-01-03 PAYING AGENT FEES - - - - - - - - 0.0%0.0%5643-01-03 2007 $1.2M TAX BOND-INTEREST 76,798 76,798 76,676 76,676 74,365 74,365 74,210 74,210 99.8%99.8%5644-01-03 2007 $1.2M TAX BOND-PRINCIPAL 35,000 35,000 35,000 35,000 40,000 40,000 40,000 40,000 100.0%100.0%5645-01-03 2011 $1.7M TX LEVERAGE-INT - - - - 50,479 50,479 21,924 26,938 0.0%43.4% 5646-01-03 2011 $1.7M TX LEVERAGE-PRI - - - - 131,399 131,399 1,083,484 1,092,012 0.0%824.6% DEBT 111,798 $ 111,798 $ 111,676 $ 111,676$ 296,243 $ 296,243 $ 1,219,617 $ 1,233,160 $ 99.9%411.7% 5702-01-03 TRANSFER OUT-DEBT SERVICE FUND 154,619 154,619 39,809 154,619 153,119 153,119 153,119 153,119 25.7%100.0% TRANSFER 154,619 $ 154,619 $ 39,809 $ 154,619$ 153,119 $ 153,119 $ 153,119 $ 153,119 $ 25.7%100.0% TOTAL EXPENDITURES 266,417 $ 266,417 $ 151,485 $ 266,295$ 449,362 $ 449,362 $ 1,372,736 $ 1,386,279 $ 56.9%305.5% CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND 02: TOWN SHOPPING CENTER FY10-11 FY10-11 FY10-11 FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY10-11 FY11-12 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD MAY ACTUAL PROPOSED AMENDED YTD MAY ESTIMATE YTD %YTD % 5280-02-00 MINOR EQUIP/SMALL TOOLS<$5K 4,560 4,560 - - - - - - 0.0%0.0% SUPPLIES 4,560 $ 4,560 $ -$ -$ -$ -$ -$ -$ 0.0%0.0% 5403-02-00 BUILDING MAINTENANCE 17,790 17,790 18,066 21,749 22,856 22,856 20,375 22,856 101.5%89.1% MAINTENANCE 17,790 $ 17,790 $ 18,066 $ 21,749 $ 22,856 $ 22,856 $ 20,375 $ 22,856 $ 101.5%89.1% 5501-02-00 ADVERTISING - - - - - - - - 0.0%0.0% 5510-02-00 ASSOC DUES/PUBLICATIONS - - - - - - - - 0.0%0.0%5512-02-00 CONTRACTUAL SERVICES - - - - - - - - 0.0%0.0% 5530-02-00 ELECTRIC SERVICES 7,800 7,800 1,213 3,209 4,200 4,200 2,283 4,200 15.5%54.4%5545-02-00 INSURANCE-PROPERTY 4,000 4,000 3,401 3,401 4,000 4,000 5,881 5,881 85.0%147.0% 5565-02-00 LEGAL SERVICES - - - - - - - - 0.0%0.0% 5570-02-00 SPECIAL SERVICES 6,000 6,000 14,160 16,160 11,580 11,580 9,899 36,580 236.0%85.5%SUNDRY 17,800 $ 17,800 $ 18,774 $ 22,770 $ 19,780 $ 19,780 $ 18,063 $ 46,661 $ 105.5%91.3% TOTAL EXPENDITURES 40,150 $ 40,150 $ 36,839 $ 44,519 $ 42,636 $ 42,636 $ 38,438 $ 69,517 $ 91.8%90.2% CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND 03: TOWN CENTER REDEVELOPMENT FY10-11 FY10-11 FY10-11 FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY10-11 FY11-12 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD MAY ACTUAL PROPOSED AMENDED YTD MAY ESTIMATE YTD %YTD % 5570-03-00 SPECIAL SERVICES - - - - - - - - 0.0%0.0% 5579-03-00 ARCHITECT/DESIGN SERVICES 26,000 26,000 - - - - - - 0.0%0.0% 5580-03-00 ENGINEERING SERVICES 15,300 15,300 25,113 11,300 10,000 10,000 - 10,000 164.1%0.0% SUNDRY 41,300 $ 41,300 $ 25,113 $ 11,300 $ 10,000 $ 10,000 $ -$ 10,000 $ 60.8%0.0% 5800-03-00 LAND - - - - - - - - 0.0%0.0% 5847-03-00 CONSTRUCTION 127,501 127,501 542,044 455,063 160,000 160,000 124,024 175,000 425.1%77.5% CAPITAL 127,501 $ 127,501 $ 542,044$ 455,063 $ 160,000 $ 160,000 $ 124,024$ 175,000 $ 425.1%77.5% 168,801 $ 168,801 $ 567,157$ 466,363 $ 170,000 $ 170,000 $ 124,024$ 185,000 $ 336.0%73.0% CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND 04: TEXAS LEVERAGE FUND PROGRAM FY10-11 FY10-11 FY10-11 FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY10-11 FY11-12 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD MAY ACTUAL PROPOSED AMENDED YTD MAY ESTIMATE YTD %YTD % 5565-04-00 LEGAL SERVICES - - - - - - - - 0.0%0.0% SUNDRY -$ -$ -$ -$ -$ -$ -$ -$ 0.0%0.0% 5615-04-00 FUNCTIONAL GRANT - - 14,025 14,025 - - - - #DIV/0!0.0%5620-04-00 ISSUANCE COSTS - - - - 17,000 17,000 17,000 17,000 0.0%100.0% DEBT -$ -$ 14,025 $ 14,025 $ 17,000 $ 17,000 $ 17,000 $ 17,000 $ #DIV/0!100.0% 5847-03-00 CONSTRUCTION - - - - 1,668,975 1,668,975 - - 0.0%0.0% CAPITAL -$ -$ -$ -$ 1,668,975 $ 1,668,975 $ -$ -$ 0.0%0.0% -$ -$ 14,025 $ 14,025 $ 1,685,975 $ 1,685,975 $ 17,000 $ 17,000 $ #DIV/0!1.0% CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES FUND SUMMARY BY CATEGORY "EXEMPLIFYING EXCELLENCE" 19: EDC4B CAPITAL BOND FUND FY10-11 FY10-11 FY10-11 FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY10-11 FY11-12 CATEGORY BUDGET AMENDED YTD MAY ACTUAL PROPOSED AMENDED YTD MAY ESTIMATE YTD %YTD % BEGINNING FUND BALANCE 1,279,351 $ 1,279,351 $ 1,279,351 $ 1,279,351 $ 464,133 $ 464,133 $ 464,133 $ 464,133 $ INVESTMENT EARNINGS 500 500 1,168 1,310 250 250 194 250 233.6%77.7% TRANSFERS - - - - - - - - 0.0%0.0% TOTAL REVENUES 500 $ 500 $ 1,168 $ 1,310 $ 250 $ 250 $ 194 $ 250 $ 233.6%77.7% MAINTENANCE - - - - - - - - 0.0%0.0% SUNDRY 28,143 28,143 64,813 100,371 250,000 250,000 23,220 104,383 230.3%9.3% CAPITAL 234,524 234,524 572,500 716,157 95,000 95,000 331,026 360,000 244.1%348.4%TOTAL EXPENDITURES 262,667 $ 262,667 $ 637,313 $ 816,529 $ 345,000 $ 345,000 $ 354,246 $ 464,383 $ 242.6%102.7% REVENUES OVER EXPENDITURES (262,167)$ (262,167)$ (636,145)$ (815,218)$ (344,750)$ (344,750)$ (354,052)$ (464,133)$ ENDING FUND BALANCE 1,017,184 $ 1,017,184 $ 643,206 $ 464,133 $ 119,383 $ 119,383 $ 110,081 $ (0)$ ADJUSTMENTS FUND BALANCE AS % OF EXP 387.3%387.3%100.9%56.8%34.6%34.6%31.1%0.0% RESERVE (NO REQUIREMENT)-$ -$ -$ -$ -$ -$ -$ -$ RESERVE SURPLUS/(SHORTFALL)1,017,184 $ 1,017,184 $ 643,206 $ 464,133 $ 119,383 $ 119,383 $ 110,081 $ (0)$ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES REVENUE/EXPENDITURE LINE ITEM SUMMARY "EXEMPLIFYING EXCELLENCE" 19: EDC4B CAPITAL BOND FUND FY10-11 FY10-11 FY10-11 FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY10-11 FY11-12 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD MAY ACTUAL PROPOSED AMENDED YTD MAY ESTIMATE YTD %YTD % 4401-00-00 INVESTMENT INCOME 500 500 1,168 1,310 250 250 194 250 233.6%77.7%INVESTMENT EARNINGS 500 $ 500 $ 1,168 $ 1,310 $ 250 $ 250 $ 194 $ 250 $ 233.6%77.7% 4913-00-00 TRANSFER IN-CAPITAL BOND FUND - - - - - - - - 0.0%0.0%TRANSFERS -$ -$ -$ -$ -$ -$ -$ -$ 0.0%0.0% TOTAL REVENUES 500 $ 500 $ 1,168 $ 1,310 $ 250 $ 250 $ 194 $ 250 $ 233.6%77.7% 19: EDC4B CAPITAL BOND FUND 01: TOWN CENTER REDEVELOPMENT FY10-11 FY10-11 FY10-11 FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY10-11 FY11-12 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD MAY ACTUAL PROPOSED AMENDED YTD MAY ESTIMATE YTD %YTD % 5403-01-00 BUILDING MAINTENANCE - - - - - - - - 0.0%0.0%MAINTENANCE -$ -$ -$ -$ -$ -$ -$ -$ 0.0%0.0% 5525-01-00 TRAINING/SEMINARS - - - - - - - - 0.0%0.0% 5570-01-00 SPECIAL SERVICES - - - 15,400 240,000 240,000 13,750 86,883 0.0%5.7% 5579-01-00 ARCHITECT/DESIGN SERVICES - - 32,502 37,217 - - - - #DIV/0!0.0%5580-01-00 ENGINEERING SERVICES 28,143 28,143 32,310 47,755 10,000 10,000 9,470 17,500 114.8%94.7%SUNDRY 28,143 $ 28,143 $ 64,813 $ 100,371 $ 250,000 $ 250,000 $ 23,220 $ 104,383 $ 230.3%9.3% 5800-01-00 LAND - - 6,473 7,558 25,000 25,000 - 25,000 #DIV/0!0.0%5847-01-00 CONSTRUCTION 234,524 234,524 566,027 708,600 70,000 70,000 331,026 335,000 241.4%472.9%CAPITAL 234,524 $ 234,524 $ 572,500 $ 716,157 $ 95,000 $ 95,000 $ 331,026 $ 360,000 $ 244.1%348.4% TOTAL EXPENDITURES 262,667 $ 262,667 $ 637,313 $ 816,529 $ 345,000 $ 345,000 $ 354,246 $ 464,383 $ 242.6%102.7% CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES FUND SUMMARY BY CATEGORY "EXEMPLIFYING EXCELLENCE" 95: EDC4B RESERVE FUND FY10-11 FY10-11 FY10-11 FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY10-11 FY11-12 CATEGORY BUDGET AMENDED YTD MAY ACTUAL PROPOSED AMENDED YTD MAY ESTIMATE YTD %YTD % BEGINNING FUND BALANCE 119,637 $ 119,637 $ 119,637 $ 119,637 $ 119,766 $ 119,766 $ 119,766 $ 119,766 $ INVESTMENT EARNINGS 500 500 102 129 240 240 60 100 20.3%25.1%TRANSFERS - - - - - - - - 0.0%0.0%TOTAL REVENUES 500 $ 500 $ 102 $ 129 $ 240 $ 240 $ 60 $ 100 $ 20.3%25.1% TRANSFERS - - - - - - - - 0.0%0.0%TOTAL EXPENDITURES -$ -$ -$ -$ -$ -$ -$ -$ 0.0%0.0% REVENUES OVER EXPENDITURES 500 $ 500 $ 102 $ 129 $ 240 $ 240 $ 60 $ 100 $ ENDING FUND BALANCE 120,137 $ 120,137 $ 119,739 $ 119,766 $ 120,006 $ 120,006 $ 119,826 $ 119,866 $ ADJUSTMENTS - - - - - - - - FUND BALANCE AS % OF EXP N/A N/A N/A N/A N/A N/A N/A N/A RESERVE ($112,606 REQUIREMENT)112,606 $ 112,606 $ 112,606 $ 112,606 $ 112,606 $ 112,606 $ 112,606 $ 112,606 $ RESERVE SURPLUS/(SHORTFALL)7,531 $ 7,531 $ 7,133 $ 7,160 $ 7,400 $ 7,400 $ 7,220 $ 7,260 $ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES REVENUE/EXPENDITURE LINE ITEM SUMMARY "EXEMPLIFYING EXCELLENCE" 95: EDC4B RESERVE FUND FY10-11 FY10-11 FY10-11 FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY10-11 FY11-12 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD MAY ACTUAL PROPOSED AMENDED YTD MAY ESTIMATE YTD %YTD % 4401-00-00 INVESTMENT INCOME 500 500 102 129 240 240 60 100 20.3%25.1%INVESTMENT EARNINGS 500 $ 500 $ 102 $ 129 $ 240 $ 240 $ 60 $ 100 $ 20.3%25.1% 4915-00-00 TRANSFER IN-EDC FUND - - - - - - - - 0.0%0.0% 4920-00-00 TRANSFER IN - - - - - - - - 0.0%0.0%OTHER AGENCY -$ -$ -$ -$ -$ -$ -$ -$ 0.0%0.0% TOTAL REVENUES 500 $ 500 $ 102 $ 129 $ 240 $ 240 $ 60 $ 100 $ 20.3%25.1% 95: EDC4B RESERVE FUND FY10-11 FY10-11 FY10-11 FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY10-11 FY11-12 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD MAY ACTUAL PROPOSED AMENDED YTD MAY ESTIMATE YTD %YTD % 5715-00-00 TRANSFER OUT-EDC FUND - - - - - - - - 0.0%0.0%TRANSFERS -$ -$ -$ -$ -$ -$ -$ -$ 0.0%0.0% TOTAL EXPENDITURES -$ -$ -$ -$ -$ -$ -$ -$ 0.0%0.0% Staff Report to the Board of Directors Date: July 24, 2012 Agenda Item No: REGULAR ITEMS - B. I. Subject: Conduct a public hearing on FY2012-13 economic development projects. II. Originated by: Sakura Moten-Dedrick, Director of Finance & IT III. Summary: Generally, an EDC4B corporation must allow for a period of sixty (60) days from the date of publication to close before recommending to Council and also publish fifteen (15) days prior to public hearing. While the Kennedale Economic Development Corporation did publish its FY2012-13 economic development projects in the Fort Worth Star Telegram on July 2, 2012, because we are an entity with less than 20,000 population, and our projects concern mainly industrial / commercial projects, a public hearing is not required per SB 1969, Section 505.156 of the Local Government Code. In an effort to foster open and transparent government, as well as better community participation, the KEDC publishes a notice and conducts a public hearing as a courtesy to our residents. IV. Recommendation: Approve V. Alternative Actions: VI. Attachments: 1.FY2012-13 Projects 0 - KEDC Notice Of Projects & Public Hearing.doc NOTICE OF PROJECTS AND PUBLIC HEARING KENNEDALE ECONOMIC DEVELOPMENT CORPORATION NOTICE IS HEREBY GIVEN that the Kennedale Economic Development Corporation intends to participate in “Projects,” as defined in the Development Corporation Act of 1979, as amended, Texas Revised Civil Statutes Annotated Article 5190.6, including, but not limited to, designing, acquiring, improving, and operating the following: 1)“TownCenter Project,” Operations/Management/Marketing of a “mid-city” downtown district including but not limited to the commercial, medical, retail, land acquisition and (New Urbanism style, typically higher density / multi-storied) residential growth of TownCenter Kennedale and its surrounding area; 2)“Redevelopment Project,” The development of new and renovation of existing commercial/residential and municipal / KEDC projects designed to enhance Kennedale’s lifestyle and quality of life; 3)“TownCenter Beautification Project,” The further development/beautification/landscaping/upgrading of the TownCenter Kennedale area and its adjoining TCK Plaza; 4)“Arts Project,” The planning, implementation, and operation of Civic / City Events and establishment of a City/TCK Public Arts Program; 5)“Sign Project,” The construction of a new Kennedale Entranceway Monument Sign at a site TBD; 6)“Parkway Project,” The creation & implementation of Kennedale Parkway, Village Creek, and I-20 commercial and residential Urban Renewal / Development/Redevelopment / Revitalization / Economic Incentives / Beautification plans / Kennedale Parkway Landscape / Sidewalks and actual projects derived from these plans, including Consultation, Planning, Legal, and Engineering Services; 7)“Development Project,” The Creation of a Tax Increment Financing District(s) (TIF), Reinvestment Zone and Municipal Management District (MMD) including Consultation, Planning, Legal, and Engineering Services; 8)“Branding Project,” A Kennedale Marketing and Implementation Plan aimed at City Branding and attracting new Kennedale projects and businesses; 9)“Grant Project,” The continuation of the existing Revitalization Grant Program and funding for façade and/or signage improvements; 10)“Industrial Expansion Project,” Industrial expansion and recruitment program, including loans, fee waivers, incentive payments, driveway and access construction and land leases; 11)“Industrial Recruitment Project,” The recruitment of new and retention of existing Kennedale industrial businesses and development/redevelopment of industrial park(s), including but not limited to rail spurs, infrastructure, and office parks, etc.; 12)“Hotel Project,” The attraction and development of a hotel, including site development, financing, land lease, studies, and ownership investment; 13)“Transit Project,” The attraction and development of DFW Metroplex area commuter transit / light rail / mass transportation services, including land acquisition, the development of a Kennedale rail station and related improvements; 14)“Landbank Project,” The purchase / leasing / sale or other means of transfer of real estate land and properties for the accomplishment of the above designated projects; 15)“Village Creek Project,” The development of Village Creek Park, including land acquisition, recreation facility development, and water quality enhancement features; 16)“Oak Crest Development,” The land acquisition and site development for the Oak Crest area, including utility extension, street improvements, consultation, plans, legal and engineering services; 17)“Financing Project,” The issuance, purchase, sale, or other means of transfer of Bonds and other debt instruments designed to fund the above objectives including, but not limited to implementing a Tax Increment Financing (TIF) District / Municipal Management District (MMD) / Texas Leverage Fund and mixed-use project(s) development/redevelopment; 18)“Staff Support Project,” Contractual staff services (Orasi Development); and 19)“Administrative Project,” All necessary services and related expenses for the above projects including but not limited to project master-planning; engineering; alternate energy sources; project advertising / marketing; related consultant and legal services; new construction / remodeling / maintenance of landscaping, roadways, City / KEDC owned or leased buildings, and their related improvements. The Economic Development Corporation will hold a public hearing to receive input regarding the expenditure of funds for such Projects during a meeting to be held on Tuesday, July 24, 2012 at the Kennedale Municipal Building, 405 Municipal Drive, Kennedale, TX at 7:15 p.m. The above listed projects will require expenditure of funds collected from the 4B sales tax for Fiscal Year 2012-2013. If the KEDC Board of Directors recommends approval of such Projects, the City Council will act on this recommendation at a meeting tentatively scheduled on the 20 th day of September 2012. Citizens are encouraged to attend the public hearing for comments or may furnish written correspondence to the City Secretary’s Office, 405 Municipal Drive, Kennedale, TX 76060, prior to the hearing. Staff Report to the Board of Directors Date: July 24, 2012 Agenda Item No: REGULAR ITEMS - C. I. Subject: Discuss and approve FY2012-13 Proposed Budget for recommendation to City Council. II. Originated by: Sakura Moten-Dedrick, Director of Finance & IT III. Summary: On July 24, the Kennedale Economic Development Board held a public hearing to receive input regarding the expenditure of funds for KEDC Projects, which will require expenditure of funds collected from the 4B sales tax for Fiscal Year 2012/13. In order for the Council to approve and adopt the City’s FY2012/13 Budget (KEDC budget/projects included) and tax rate at a special called session tentatively scheduled on September 19, 2012, the KEDC must make a recommendation to Council given its review of the aforementioned items. IV. Recommendation: Approve V. Alternative Actions: VI. Attachments: 1.EDC FY2012-13 Proposed Budget EDC FY2012-13 Proposed Budget.pdf CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES FUND SUMMARY BY CATEGORY "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY12-13 CY - PY CATEGORY ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE BEGINNING FUND BALANCE 583,151 $ 1,873,131 $ 1,597,540 $ 1,597,540 $ 1,597,540 $ 26,707 $ 323,848 $ AD VALOREM TAXES 52,138 42,466 42,466 26,709 43,653 42,466 - SALES/BEVERAGE TAXES 366,165 352,666 352,666 202,997 397,943 397,943 45,277 INVESTMENT EARNINGS 130 250 250 585 950 250 - MISCELLANEOUS INCOME 21,916 684,000 684,000 5,250 5,250 395,000 (289,000) SURPLUS SALES/RENTALS 209,087 249,272 249,272 104,566 249,272 231,556 (17,716) TRANSFERS 1,700,000 $ -$ -$ -$ -$ -$ -$ TOTAL REVENUES 2,349,435 $ 1,328,654 $ 1,328,654 $ 340,108 $ 697,068 $ 1,067,215 $ (261,439)$ PERSONNEL - - - - - - - SUPPLIES 22,314 21,344 21,344 13,114 24,475 17,344 (4,000) MAINTENANCE 21,749 22,856 22,856 18,460 23,631 22,856 - SUNDRY 243,564 269,206 269,206 212,911 353,308 265,799 (3,407) DEBT 125,701 313,243 313,243 1,232,103 1,250,160 165,757 (130,486) TRANSFERS 154,619 153,119 153,119 153,119 153,119 151,619 (1,500) CAPITAL 767,099 2,213,975 2,213,975 407,952 463,209 470,548 (470,000) TOTAL EXPENDITURES 1,335,046 $ 2,993,742 $ 2,993,742 $ 2,037,658 $ 2,267,901 $ 1,093,922 $ (609,393)$ REVENUES OVER EXPENDITURES 1,014,389 $ (1,665,088)$ (1,665,088)$ (1,697,550)$ (1,570,833)$ (26,707)$ ENDING FUND BALANCE 1,597,540 $ 208,043 $ (67,548)$ (100,010)$ 26,707 $ (0)$ ADJUSTMENTS FUND BALANCE AS % OF EXP 119.7%6.9%-2.3%-4.9%1.2%0.0% RESERVE (NO REQUIREMENT)-$ -$ -$ -$ -$ -$ RESERVE SURPLUS/(SHORTFALL)1,597,540 $ 208,043 $ (67,548)$ (100,010)$ 26,707 $ (0)$ -$ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES REVENUE LINE ITEM SUMMARY "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY12-13 CY - PY ACCOUNT ACCOUNT NAME ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 4001-00-00 PROPERTY TAX-CURRENT YEAR - - - - - - - 4002-00-00 MMD TAX-CURRENT YEAR 52,138 42,466 42,466 26,709 43,653 42,466 - AD VALOREM TAXES 52,138 $ 42,466 $ 42,466 $ 26,709 $ 43,653 $ 42,466 $ -$ 4081-00-00 SALES TAX 366,165 352,666 352,666 202,997 397,943 397,943 45,277 4082-00-00 MIXED BEVERAGE TAX - - - - - - - SALES/BEVERAGE TAXES 366,165 $ 352,666 $ 352,666 $ 202,997 $ 397,943 $ 397,943 $ 45,277 $ 4401-00-00 INVESTMENT INCOME 130 250 250 585 950 250 - INVESTMENT EARNINGS 130 $ 250 $ 250 $ 585 $ 950 $ 250 $ -$ 4409-00-00 MISCELLANEOUS INCOME 21,916 684,000 684,000 5,250 5,250 395,000 (289,000) 4411-00-00 TEXAS LEVERAGE FUND PROGRAM - - - - - - - 4415-00-00 INSURANCE REIMBURSEMENTS - - - - - - - MISCELLANEOUS INCOME 21,916 $ 684,000 $ 684,000 $ 5,250 $ 5,250 $ 395,000 $ (289,000)$ 4805-00-00 RENTAL FEES-SHOPPING CENTER 208,534 245,272 245,272 104,364 245,272 227,556 (17,716) 4806-00-00 RENTAL INSURANCE 553 4,000 4,000 202 4,000 4,000 - SURPLUS SALES/RENTALS 209,087 $ 249,272 $ 249,272 $ 104,566 $ 249,272 $ 231,556 $ (17,716)$ 4902-00-00 PROCEEDS - DEBT/LOAN/LEASE 1,700,000 - - - - - - TRANSFERS 1,700,000 $ -$ -$ -$ -$ -$ -$ TOTAL REVENUES 2,349,435 $ 1,328,654 $ 1,328,654 $ 340,108 $ 697,068 $ 1,067,215 $ (261,439)$ TOTAL REVENUES (EXCLUDING INTEREST/TRANSFERS)649,305 $ 1,328,404 $ 1,328,404 $ 339,523 $ 696,118 $ 1,066,965 $ (261,439)$ 10% ADMIN CHARGE-GENERAL FUND 64,931 132,840 132,840 33,952 69,612 106,697 (26,144) CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES REVENUE LINE ITEM DETAIL "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND FY12-13 PROPOSED 4002-00-00 MMD TAX-CURRENT YEAR BASED ON ASSESSED VALUE OF $826,108 AND TOTAL TAX RATE OF 2.840677 PER $100. CITY OF KENNEDALE: $0.722500 KENNEDALE ISD: $1.488610 TARRANT COUNTY: $0.264000 TARRANT HOSPITAL: $0.227897 TARRANT COLLEGE: $0.137670 42,466 42,466 4081-00-00 SALES TAX GENERALLY BUDGET BASED ON PRIOR 3 YEARS OF HISTORY 397,943 397,943 4401-00-00 INVESTMENT INCOME EARNING BASED UPON AVERAGE BALANCE/INTEREST RATES 250 250 4409-00-00 MISCELLANEOUS INCOME SALE OF 1121 WEST KENNEDALE PARKWAY (APACHE,PURCHASED FY09/10) 135,000 395,000 SALE OF 1170 EAST KENNEDALE PARKWAY (RED'S ROADHOUSE, BLOXOM GAVE CITY LAND FY10/11) - SALE OF 1000 EAST KENNEDALE PARKWAY (BELL RUBBER,PURCHASED FY10/11)260,000 SALE OF LINDALE STREET (MOORE, PURCHASED FY11/12)- SALE OF 621 EAST KENNEDALE PARKWAY (PRICE, PURCHASED FY11/12)- REBATE FOR PRIOR YEAR INSTALLATION OF TOWNCENTER LIGHTING FROM ONCOR ENERGY - 4411-00-00 TX LEVERAGE PROG REIMBURSEMENTS PRINCIPAL &INTEREST PAYMENTS RECEIVED FROM GROVER TO REIMBURSE THE STATE EDC FOR $1.7M LOAN - - 4805-00-00 RENTAL FEES-SHOPPING CENTER SUBWAY ($1400 MONTH,RELOCATION FEB 2012,LEASE EXPIRES 09/01/13, GOES TO $1750 UPON EXPIRATION) - 227,556 ACE ($1400 MONTH,RELOCATION FEB 2012,LEASE EXPIRES 03/01/2012, GOES TO $1634 UPON MOVE)- CHICKEN EXPRESS ($2518 MONTH,RELOCATION JUL 2013,LEASE EXPIRES 05/31/17, GOES TO $2618 UPON MOVE)25,180 DOLLAR GENERAL ($4719 MONTH,LEASE EXPIRES 07/31/17,2% MANAGEMENT FEE FOR AT RENEWA) 56,628 SURPLUS WAREHOUSE ($8400 MONTH,LEASE EXPIRES 05/31/16,2% MANAGEMENT FEE FOR AT RENEWAL)100,800 PREPAID TENANT FEES RECEIVED BUT CORRESPONDING OFFSET OCCURS WHEN BOOKED AGAINST CAM EXPENSES (EXCLUDES RENTAL INSURANCE CAM) 44,948 4806-00-00 RENTAL INSURANCE RENTAL CAM COLLECTED ON LEASE AGREEMENTS AND THEN USED TO PAY TML INSURANCE (OFFSETTING EXPENSE UNDER TOWN SHOPPING CENTER) 4,000 4,000 TOTAL REVENUES 1,067,215 $ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND 01: ADMINISTRATION FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY12-13 CY - PY ACCOUNT ACCOUNT NAME ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 5101-01-00 SALARIES - - - - - - - 5107-01-00 OVERTIME - - - - - - - 5111-01-00 AUTO ALLOWANCE - - - - - - - 5114-01-00 LONGEVITY - - - - - - - 5115-01-00 RETIREMENT - - - - - - - 5116-01-00 UNEMPLOYMENT INSURANCE - - - - - - - 5117-01-00 FICA - - - - - - - 5118-01-00 MEDICAL INSURANCE - - - - - - - 5120-01-00 LIFE INSURANCE - - - - - - - 5121-01-00 DENTAL INSURANCE - - - - - - - 5122-01-00 VISION INSURANCE - - - - - - - 5190-01-00 VACATION/SICK/TERM/LEAVE ADJ - - - - - - - PERSONNEL -$ -$ -$ -$ -$ -$ -$ 5220-01-00 UNIFORMS - 300 300 - - 300 - 5240-01-00 PRINTED SUPPLIES 4,466 16,544 16,544 4,875 16,544 16,544 - 5260-01-00 GENERAL OFFICE SUPPLIES 12 250 250 - - 250 - 5261-01-00 POSTAGE 59 250 250 58 250 250 - 5280-01-00 MINOR EQUIP/SMALL TOOLS<$5K - - - - - - - 5290-01-00 EXPENDABLE SUPPLIES 17,778 4,000 4,000 8,181 7,681 - (4,000) SUPPLIES 22,314 $ 21,344 $ 21,344 $ 13,114 $ 24,475 $ 17,344 $ (4,000)$ 5403-01-00 BUILDING MAINTENANCE - - - 775 775 - - 5440-01-00 OFFICE EQUIP/SOFTWARE MAINT - - - - - - - MAINTENANCE -$ -$ -$ 775 $ 775 $ -$ -$ 5501-01-00 ADVERTISING 1,436 5,000 5,000 2,871 5,000 5,000 - 5510-01-00 ASSOC DUES/PUBLICATIONS 2,460 2,350 2,350 7,334 7,335 9,775 7,425 5512-01-00 CONTRACTUAL SERVICES - - - - - - - 5525-01-00 TRAINING/SEMINARS - 1,000 1,000 - - 1,000 - 5565-01-00 LEGAL SERVICES 7,581 10,000 10,000 36,879 40,200 16,000 6,000 5567-01-00 AUDIT SERVICES 1,500 1,500 1,500 1,500 1,500 1,500 - 5569-01-00 IT SUPPORT - - - - - - - 5570-01-00 SPECIAL SERVICES 126,611 61,036 61,036 63,803 85,000 49,036 (12,000) 5575-01-00 EQUIPMENT RENTAL - - - - - - - 5578-01-00 TRAVEL 22 700 700 - - 700 - 5580-01-00 ENGINEERING SERVICES - - - 53,991 88,000 50,000 50,000 5585-01-00 TELEPHONE SERVICES - - - - - - - 5595-01-00 ADMIN CHARGE-GENERAL FUND 69,885 132,840 132,840 29,719 69,612 106,697 (26,144) SUNDRY 209,494 $ 214,426 $ 214,426 $ 196,098 $ 296,647 $ 239,707 $ 25,281 $ 5610-01-00 VISUAL GRANT - - - - - - - 5615-01-00 FUNCTIONAL GRANT - - - - - - - 5625-01-00 ISSUANCE COST - - - - - - - DEBT -$ -$ -$ -$ -$ -$ -$ 5701-01-00 TRANSFER OUT-GENERAL FUND - - - - - - - 5714-01-00 TRANSFER OUT-DEDICATION FUND - - - - - - - 5795-01-00 TRANSFER OUT-EDC RESERVE FUND - - - - - - - CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND 01: ADMINISTRATION FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY12-13 CY - PY ACCOUNT ACCOUNT NAME ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE TRANSFERS -$ -$ -$ -$ -$ -$ -$ 5800-01-00 LAND 293,392 325,000 325,000 161,582 165,000 - (325,000) 5813-01-00 KENNEDALE ENTRANCE SIGN - 45,000 45,000 - - 45,000 - 5820-01-00 BUILDING IMPROVEMENT - 15,000 15,000 39,209 39,209 - (15,000) 5875-01-00 CONSTRUCTION 18,644 - - 83,138 84,000 - - CAPITAL 312,036 $ 385,000 $ 385,000 $ 283,928 $ 288,209 $ 45,000 $ (340,000)$ TOTAL EXPENDITURES 543,844 $ 620,770 $ 620,770 $ 493,915 $ 610,105 $ 302,051 $ (318,719)$ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM DETAIL "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND 01: ADMINISTRATION FY12-13 PROPOSED 5101-01-00 SALARIES EDC DIRECTOR POSITION OMITTED.- - 5107-01-00 OVERTIME EDC DIRECTOR POSITION OMITTED.- - 5115-01-00 RETIREMENT EDC DIRECTOR POSITION OMITTED.- - 5117-01-00 FICA EDC DIRECTOR POSITION OMITTED.- - 5118-01-00 MEDICAL INSURANCE EDC DIRECTOR POSITION OMITTED.- - 5120-01-00 LIFE INSURANCE EDC DIRECTOR POSITION OMITTED.- - 5121-01-00 DENTAL INSURANCE EDC DIRECTOR POSITION OMITTED.- - 5122-01-00 VISION INSURANCE EDC DIRECTOR POSITION OMITTED.- - 5220-01-00 UNIFORMS NEW SHIRTS FOR CONVENTIONS/MEETINGS 300 300 5240-01-00 PRINTED SUPPLIES PRINTED MAPS OF ENTIRE CITY 2,000 16,544 EDC COPIES/BROCHURES 3,000 CITY MARKETING FLYERS/AERIAL PHOTOS 5,000 CITY PUBLICATION (SPLIT 66% EDC/34% CITY)6,544 5260-01-00 GENERAL OFFICE SUPPLIES FILES/FOLDERS/PAPER/PENCILS (REDUCED DUE TO CONTRACTING OUT EDC DIRECTOR POSITION)250 250 5261-01-00 POSTAGE FOR MAIL OUTS/MARKETING PACKAGES (REDUCED DUE TO CONTRACTING OUT EDC DIRECTOR POSITION)250 250 5280-01-00 MINOR EQUIP/SMALL TOOLS<$5K ADDITIONAL EQUIPMENT ASSOCIATED WITH PRESENTATIONS/MARKETING (REDUCED DUE TO CONTRACTING OUT EDC DIRECTOR POSITION) - - 5290-01-00 EXPENDABLE SUPPLIES TOWN CENTER GRAND OPENING - - 9/11 MEMORIAL - 5440-01-00 OFFICE EQUIP/SOFTWARE MAINT REDUCED DUE TO CONTRACTING OUT EDC DIRECTOR POSITION - - 5501-01-00 ADVERTISING PROMOTIONAL ADVERTISING 5,000 5,000 5510-01-00 ASSOC DUES/PUBLICATIONS TEXAS ECONOMIC DEVELOPMENT COMMISSION 200 9,775 DUNN & BRADSTREET/HOOVERS SUBSCRIPTION SERVICE 2,875 CITY ($1875) & EDC ($675) KENNEDALE CHAMBER MEMBERSHIP 2,550 DALLAS CHAMBER ($800)&TX MONTHLY ECONOMIC GUIDE AD ($3350)4,150 5512-01-00 CONTRACTUAL SERVICES NO LONGER USE THIS LINE. MERGED INTO SPECIAL SERVICES (5570).- - 5525-01-00 TRAINING/SEMINARS EDC TRAINING THROUGH VARIOUS ASSOCIATIONS BY BOARD 1,000 1,000 5565-01-00 LEGAL SERVICES BILLABLE HOURS FOR CITY ATTORNEY ON EDC RELATED PROJECTS (I.E., REINVESTMENT ZONE) 16,000 16,000 5567-01-00 AUDIT SERVICES PATILLO, BROWN & HILL SERVICES FOR INDEPENDENT ANNUAL AUDIT 1,500 1,500 5570-01-00 SPECIAL SERVICES TOWN CENTER CONSULTING FIRM (APPROXIMATELY $3500 PER MONTH)45,000 49,036 BRANDING &IMAGING (PLANNING PHASE ONLY,IMPLEMENTATION PHASE BUDGETED UNDER CITY MANAGER BUDGET)- CONTRACT WITH MUNISERVICES FOR SALES TAX AUDIT SERVICES,35% CONTINGENCY IF REALLOCATIONS ARE UNCOVERED DUE TO REPORTING ERRORS (APPLIES TO FIRST 8 CONSECUTIVE REPORTING QUARTERS FOLLOWING CORRECTION, SHARED 75% CITY/%25 EDC) 3,750 DATAPROSE SERVICE FOR STUFFING OF NEWSLETTER ($70 MONTH), SPLIT 66% EDC/34% CITY 286 5575-01-00 EQUIPMENT RENTAL - - 5578-01-00 TRAVEL TRAVEL RELATED TO OTHER EDC TRAINING/SEMINARS BY STAFF/BOARD 700 700 5580-01-00 ENGINEERING TIED TO POTENTIAL ACTIVITIES/PROJECTS (FINISH OUT GREEN RIBBON, POTENTIAL $50K GRANT IN FY11/12,WHICH MAY OFFSET THIS EXPENSE IN FY12/13) 50,000 50,000 5585-01-00 TELEPHONE SERVICES NO LONGER UTILIZE SERVICE (REDUCED DUE TO CONTRACTING OUT EDC DIRECTOR POSITION) - - 5595-01-00 ADMIN CHARGE-GENERAL FUND CHARGE FOR SERVICES PROVIDED BY GENERAL FUND RESOURCES (10% TOTAL REVENUES EXCLUDING INTEREST/TRANSFERS) 106,697 106,697 5610-01-00 VISUAL GRANT GRANT ASSISTANCE PROVIDED TO LOCAL BUSINESSES - - 5701-01-00 TRANSFER OUT-GENERAL FUND - - 5800-01-00 LAND - - CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM DETAIL "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND 01: ADMINISTRATION FY12-13 PROPOSED 5813-01-00 KENNEDALE ENTRANCE SIGN NEW ENTRANCEWAY SIGNS 45,000 45,000 5820-01-00 BUILDING IMPROVEMENT - - 5875-01-00 CONSTRUCTION - - TOTAL EXPENDITURES 302,051 $ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND 01: ADMINISTRATION 03: DEBT SERVICE FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY12-13 CY - PY ACCOUNT ACCOUNT NAME ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 5620-01-03 ISSUANCE COSTS - - - - - - - 5621-01-03 PAYING AGENT FEES - - - - - - - 5643-01-03 2007 $1.2M TAX BOND-INTEREST 76,676 74,365 74,365 74,210 74,210 71,585 (2,780) 5644-01-03 2007 $1.2M TAX BOND-PRINCIPAL 35,000 40,000 40,000 40,000 40,000 40,000 - 5645-01-03 2011 $1.7M TX LEVERAGE-INT - 50,479 50,479 20,214 26,938 19,359 (31,120) 5646-01-03 2011 $1.7M TX LEVERAGE-PRI - 131,399 131,399 1,080,679 1,092,012 34,813 (96,586) DEBT 111,676 $ 296,243 $ 296,243 $ 1,215,103 $ 1,233,160 $ 165,757 $ (130,486)$ 5702-01-03 TRANSFER OUT-DEBT SERVICE FUND 154,619 153,119 153,119 153,119 153,119 151,619 (1,500) TRANSFER 154,619 $ 153,119 $ 153,119 $ 153,119 $ 153,119 $ 151,619 $ (1,500)$ TOTAL EXPENDITURES 266,295 $ 449,362 $ 449,362 $ 1,368,221 $ 1,386,279 $ 317,376 $ (131,986)$ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM DETAIL "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND 01: ADMINISTRATION 03: DEBT SERVICE FY12-13 PROPOSED 5620-01-03 ISSUANCE COSTS AGENT FEES TO HANDLE BOND AMORTIZATIONS - - 5621-01-03 PAYING AGENT FEES FEES RELATED TO THE ACQUISITION OF NEW DEBT (BANK/BOND ATTORNEY/FINANCIAL ADVISOR).BANK IS PAYING AGENT IN PRIVATE PLACEMENT AND GENERALLY DOES NOT CHARGE. - 5643-01-03 2007 $1.2M TAX BOND-INTEREST DUE 11/01 35,793 71,585 DUE 05/01 35,793 5644-01-03 2007 $1.2M TAX BOND-PRINCIPAL DUE 05/01 40,000 40,000 5645-01-03 2011 $1.7M TX LEVERAGE-INT DUE BY 1ST OF EACH MONTH (BEGINS 11/01/2011)19,359 19,359 5646-01-03 2011 $1.7M TX LEVERAGE-PRI DUE BY 1ST OF EACH MONTH (BEGINS 11/01/2011)34,813 34,813 5702-01-03 TRANSFER OUT-DEBT SERVICE FUND DUE 11/01 INTEREST : 2010 $2.0M CO BOND 38,309 151,619 DUE 05/01 INTEREST : 2010 $2.0M CO BOND 38,309 DUE 05/01 PRINCIPAL : 2010 $2.0M CO BOND 75,000 TOTAL EXPENDITURES 317,376 $ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND 02: TOWN SHOPPING CENTER FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY12-13 CY - PY ACCOUNT ACCOUNT NAME ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 5280-02-00 MINOR EQUIP/SMALL TOOLS<$5K - - - - - - - SUPPLIES -$ -$ -$ -$ -$ -$ -$ 5403-02-00 BUILDING MAINTENANCE 21,749 22,856 22,856 17,685 22,856 22,856 - MAINTENANCE 21,749 $ 22,856 $ 22,856 $ 17,685 $ 22,856 $ 22,856 $ -$ 5501-02-00 ADVERTISING - - - - - - - 5510-02-00 ASSOC DUES/PUBLICATIONS - - - - - - - 5512-02-00 CONTRACTUAL SERVICES - - - - - - - 5530-02-00 ELECTRIC SERVICES 3,209 4,200 4,200 1,534 4,200 4,200 - 5545-02-00 INSURANCE-PROPERTY 3,401 4,000 4,000 5,881 5,881 4,000 - 5565-02-00 LEGAL SERVICES - - - - - - - 5570-02-00 SPECIAL SERVICES 16,160 36,580 36,580 9,399 36,580 17,892 (18,688) SUNDRY 22,770 $ 44,780 $ 44,780 $ 16,814 $ 46,661 $ 26,092 $ (18,688)$ TOTAL EXPENDITURES 44,519 $ 67,636 $ 67,636 $ 34,498 $ 69,517 $ 48,948 $ (18,688)$ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM DETAIL "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND 02: TOWN SHOPPING CENTER FY12-13 PROPOSED 5280-02-00 MINOR EQUIP/SMALL TOOLS<$5K - - 5403-02-00 BUILDING MAINTENANCE SWEEPING-CAM ($300 PER MONTH)3,600 22,856 LANDSCAPE-CAM ($638 PER MONTH)7,656 FIRE SPRINKLER-CAM ($150 PER QUARTER)600 R&M-CAM 5,000 LANDSCAPE MATERIALS-CAM 1,000 MAINTENANCE-CAM 5,000 ROOFING REPAIR-CAM - POWER WASHING-CAM - PORTER SERVICE-CAM - 5501-02-00 ADVERTISING - - 5510-02-00 ASSOC DUES/PUBLICATIONS - - 5512-02-00 CONTRACTUAL SERVICES - - 5530-02-00 ELECTRIC SERVICES ELECTRICITY-CAM 4,200 4,200 5545-02-00 INSURANCE-PROPERTY COVERAGE THROUGH TEXAS MUNICIPAL LEAGUE 4,000 4,000 5570-02-00 SPECIAL SERVICES PROPERTY/ASSET MANAGEMENT ($500 PER MONTH)6,000 17,892 MAR 2012 - AUG 2013: SUBWAY $525, ACE $466 11,892 SEP 2013 - AUG 2015: SUBWAY $350, ACE $466 - SEP 2015 - FEB 2017: SUBWAY $150, ACE $466 - MAR 2017 - AUG 2018: SUBWAY $150 - TOTAL EXPENDITURES 48,948 $ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND 03: TOWN CENTER REDEVELOPMENT FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY12-13 CY - PY ACCOUNT ACCOUNT NAME ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 5570-03-00 SPECIAL SERVICES - - - - - - - 5579-03-00 ARCHITECT/DESIGN SERVICES - - - - - - - 5580-03-00 ENGINEERING SERVICES 11,300 10,000 10,000 - 10,000 - (10,000) SUNDRY 11,300 $ 10,000 $ 10,000 $ -$ 10,000 $ -$ (10,000)$ 5800-03-00 LAND - - - - - - - 5847-03-00 CONSTRUCTION 455,063 160,000 160,000 124,024 175,000 30,000 (130,000) CAPITAL 455,063 $ 160,000 $ 160,000 $ 124,024 $ 175,000 $ 30,000 $ (130,000)$ 466,363 $ 170,000 $ 170,000 $ 124,024 $ 185,000 $ 30,000 $ (140,000)$ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM DETAIL "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND 03: TOWN CENTER REDEVELOPMENT FY12-13 PROPOSED 5570-03-00 SPECIAL SERVICES - - 5579-03-00 ARCHITECT/DESIGN SERVICES - - 5580-03-00 ENGINEERING SERVICES TIED TO POTENTIAL ACTIVITIES/PROJECTS (CHICKEN EXPRESS $10K IN FY13-14)- - 5847-03-00 CONSTRUCTION RELOCATION OF ACE & SUBWAY - 30,000 CHICKEN EXPRESS BUILDING HEALTH INSPECTIONS/ASBESTOS SURVEY 5,000 CHICKEN EXPRESS TEAR DOWN/DEMOLITION 25,000 CHICKEN EXPRESS PARKING LOT MODIFICATION ($50K IN FY13-14)- POTENTIAL ACTIVITIES/PROJECTS - TOTAL EXPENDITURES 30,000 $ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND 04: TEXAS LEVERAGE PROGRAM FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY12-13 CY - PY ACCOUNT ACCOUNT NAME ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 5615-04-00 FUNCTIONAL GRANT 14,025 - - - - - - 5620-04-00 ISSUANCE COSTS - 17,000 17,000 17,000 17,000 - (17,000) DEBT 14,025 $ 17,000 $ 17,000 $ 17,000 $ 17,000 $ -$ (17,000)$ 5847-04-00 CONSTRUCTION - 1,668,975 1,668,975 - - 395,548 (1,273,427) CAPITAL -$ 1,668,975 $ 1,668,975 $ -$ -$ 395,548 $ (1,273,427)$ 14,025 $ 1,685,975 $ 1,685,975 $ 17,000 $ 17,000 $ 395,548 $ (1,290,427)$ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM DETAIL "EXEMPLIFYING EXCELLENCE" 15: EDC4B FUND 04: TEXAS LEVERAGE PROGRAM FY12-13 PROPOSED 5615-04-00 FUNCTIONAL GRANT - - 5620-04-00 ISSUANCE COSTS AGENT FEES TO HANDLE BOND AMORTIZATIONS - - 5847-04-00 CONSTRUCTION CMAQ/RTR GRANT MATCH 225,000 395,548 OAK CREST DEVELOPMENT & EAST CORNER INCENTIVES 170,548 TOTAL EXPENDITURES 395,548 $ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES FUND SUMMARY BY CATEGORY "EXEMPLIFYING EXCELLENCE" 19: EDC4B CAPITAL BOND FUND FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY12-13 CY - PY CATEGORY ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE BEGINNING FUND BALANCE 1,279,351 $ 396,455 $ 464,133 $ 464,133 $ 464,133 $ (0)$ INVESTMENT EARNINGS 1,310 250 250 161 250 - (250) TRANSFERS - - - - - - - TOTAL REVENUES 1,310 $ 250 $ 250 $ 161 $ 250 $ -$ (250)$ MAINTENANCE - - - - - - - SUNDRY 100,371 250,000 250,000 23,220 104,383 - (250,000) CAPITAL 716,157 95,000 95,000 331,026 360,000 - (95,000) TOTAL EXPENDITURES 816,529 $ 345,000 $ 345,000 $ 354,246 $ 464,383 $ -$ (345,000)$ REVENUES OVER EXPENDITURES (815,218)$ (344,750)$ (344,750)$ (354,085)$ (464,133)$ -$ 344,750 $ ENDING FUND BALANCE 464,133 $ 51,705 $ 119,383 $ 110,047 $ (0)$ (0)$ 344,750$ ADJUSTMENTS FUND BALANCE AS % OF EXP 56.8%15.0%34.6%31.1%0.0%N/A RESERVE (NO REQUIREMENT)-$ -$ -$ -$ -$ -$ RESERVE SURPLUS/(SHORTFALL)464,133 $ 51,705 $ 119,383 $ 110,047 $ (0)$ (0)$ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES REVENUE/EXPENDITURE LINE ITEM SUMMARY "EXEMPLIFYING EXCELLENCE" 19: EDC4B CAPITAL BOND FUND FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY12-13 CY - PY ACCOUNT ACCOUNT NAME ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 4401-00-00 INVESTMENT INCOME 1,310 250 250 161 250 - (250) INVESTMENT EARNINGS 1,310 $ 250 $ 250 $ 161 $ 250 $ -$ (250)$ 4913-00-00 TRANSFER IN-CAPITAL BOND FUND - - - - - - - TRANSFERS -$ -$ -$ -$ -$ -$ -$ TOTAL REVENUES 1,310 $ 250 $ 250 $ 161 $ 250 $ -$ (250)$ 19: EDC4B CAPITAL BOND FUND 01: TOWN CENTER REDEVELOPMENT FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY12-13 CY - PY ACCOUNT ACCOUNT NAME ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 5403-01-00 BUILDING MAINTENANCE - - - - - - - MAINTENANCE -$ -$ -$ -$ -$ -$ -$ 5525-01-00 TRAINING/SEMINARS - - - - - - - 5570-01-00 SPECIAL SERVICES 15,400 240,000 240,000 13,750 86,883 - (240,000) 5579-01-00 ARCHITECT/DESIGN SERVICES 37,217 - - - - - - 5580-01-00 ENGINEERING SERVICES 47,755 10,000 10,000 9,470 17,500 - (10,000) SUNDRY 100,371 $ 250,000 $ 250,000 $ 23,220 $ 104,383 $ -$ (250,000)$ 5800-01-00 LAND 7,558 25,000 25,000 - 25,000 - (25,000) 5847-01-00 CONSTRUCTION 708,600 70,000 70,000 331,026 335,000 - (70,000) CAPITAL 716,157 $ 95,000 $ 95,000 $ 331,026$ 360,000 $ -$ (95,000)$ TOTAL EXPENDITURES 816,529 $ 345,000 $ 345,000 $ 354,246$ 464,383 $ -$ (345,000)$ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES REVENUE/EXPENDITURE LINE ITEM DETAIL "EXEMPLIFYING EXCELLENCE" 19: EDC4B CAPITAL BOND FUND FY12-13 PROPOSED 4401-00-00 INVESTMENT INCOME EARNING BASED UPON AVERAGE BALANCE/INTEREST RATES - - TOTAL REVENUES -$ 19: EDC4B CAPITAL BOND FUND 01: TOWN CENTER REDEVELOPMENT FY12-13 PROPOSED 5403-01-00 BUILDING MAINTENANCE - - 5570-01-00 SPECIAL SERVICES - - 5579-01-00 ARCHITECT/DESIGN SERVICES - - 5580-01-00 ENGINEERING SERVICES REMAINING ACTIVITIES - - 5800-01-00 LAND REMAINING PROPERTY ACQUISITION - - 5847-01-00 CONSTRUCTION SECTION HOUSE: REMAINING COST, TOTAL $150K - - TOTAL EXPENDITURES -$ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES FUND SUMMARY BY CATEGORY "EXEMPLIFYING EXCELLENCE" 95: EDC4B RESERVE FUND FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY12-13 CY - PY CATEGORY ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE BEGINNING FUND BALANCE 119,637 $ 119,767 $ 119,766 $ 119,766 $ 119,766 $ 119,866 $ INVESTMENT EARNINGS 129 240 240 44 100 200 (40) TRANSFERS - - - - - - - TOTAL REVENUES 129 $ 240 $ 240 $ 44 $ 100 $ 200 $ (40)$ TRANSFERS - - - - - - - TOTAL EXPENDITURES -$ -$ -$ -$ -$ -$ -$ REVENUES OVER EXPENDITURES 129 $ 240 $ 240 $ 44 $ 100 $ 200 $ (40)$ ENDING FUND BALANCE 119,766 $ 120,007 $ 120,006 $ 119,810 $ 119,866 $ 120,066 $ (40)$ ADJUSTMENTS - - - - - - FUND BALANCE AS % OF EXP N/A N/A N/A N/A N/A N/A RESERVE ($112,606 REQUIREMENT)112,606 $ 112,606 $ 112,606 $ 112,606 $ 112,606 $ 112,606 $ RESERVE SURPLUS/(SHORTFALL)7,160 $ 7,401 $ 7,400 $ 7,204 $ 7,260 $ 7,460 $ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES REVENUE/EXPENDITURE LINE ITEM SUMMARY "EXEMPLIFYING EXCELLENCE" 95: EDC4B RESERVE FUND FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY12-13 CY - PY ACCOUNT ACCOUNT NAME ACTUAL BUDGET AMENDED YTD MAY ESTIMATE PROPOSED CHANGE 4401-00-00 INVESTMENT INCOME 129 240 240 44 100 200 (40) INVESTMENT EARNINGS 129 $ 240 $ 240 $ 44 $ 100 $ 200 $ (40)$ 4915-00-00 TRANSFER IN-EDC FUND - - - - - - - 4920-00-00 TRANSFER IN - - - - - - - OTHER AGENCY -$ -$ -$ -$ -$ -$ -$ TOTAL REVENUES 129 $ 240 $ 240 $ 44 $ 100 $ 200 $ (40)$ 95: EDC4B RESERVE FUND FY10-11 FY11-12 FY11-12 FY11-12 FY11-12 FY11-12 CY - PY ACCOUNT ACCOUNT NAME ESTIMATE PROPOSED AMENDED YTD APR ESTIMATE PROPOSED CHANGE 5715-00-00 TRANSFER OUT-EDC FUND - - - - - - - TRANSFERS -$ -$ -$ -$ -$ -$ -$ TOTAL EXPENDITURES -$ -$ -$ -$ -$ -$ -$ CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES REVENUE/EXPENDITURE LINE ITEM DETAIL "EXEMPLIFYING EXCELLENCE" 95: EDC4B RESERVE FUND FY12-13 PROPOSED 4401-00-00 INVESTMENT INCOME EARNING BASED UPON AVERAGE BALANCE/INTEREST RATES 200 200 4915-00-00 TRANSFER IN-EDCB PER BOND COVENANTS,WE ARE REQUIRED TO ESTABLISH THIS FUND AND DEPOSIT INTO IT A SPECIFIC AMOUNT OF RESERVES.THESE RESERVES ARE TO BE USED SOLELY FOR THE PURPOSE OF RETIRING THE LAST OF ANY PARITY BONDS AS THEY BECOME DUE OR PAYING OFF ANY PRINCIPAL/INTEREST WHENDEBT SERVICE FUNDS ARE INSUFFICIENT. - - TOTAL REVENUES 200 $ 5715-00-00 TRANSFER OUT-EDCB FUND - - TOTAL EXPENDITURES -$ Staff Report to the Board of Directors Date: July 24, 2012 Agenda Item No: REGULAR ITEMS - D. I. Subject: Consider authorizing the Executive Director to execute an agreement with JLB for the construction of the TownCenter parking lot. II. Originated by: III. Summary: Please see the attached information. IV. Recommendation: Approve V. Alternative Actions: VI. Attachments: 1.1 KTC change order 11 KTC Ph 2 recommendation letter.pdf 2.2 ktc co 11.pdf Shield Engineering Group, PLLC 1200 W. Freeway, Suite 300, Fort Worth, TX 76 102 • office (817) 8 10 -0696 • fax (817) 8 10 -0372 Email: info@segpllc .com • www.shieldengineeringgroup.com July 11 , 201 2 Mr. Bob Hart Kennedale Economic Development Corporation 405 Municipal Drive Kennedale, TX 76060 RE: Kenne dale TownCenter – JLB Change Order 11 for KTC Phase 2 improvements Dear Bob: I hereby recommend authorization of the attached chan ge order to JLB Contracting, LLC, in the amount of $50 ,453.96 for Phase 2 improvements associated with the Kennedale TownCenter project. This change order and unit prices are for the proposed work under the phase 2 plans only. All other original unit price s for previous work will remain unchanged. A preconstruction meeting has been scheduled for Thursday July 12, 2012 at 3:45pm. Please call me if you have any questions regarding change order authorization . Sincerely, Shield Engineering Group, PLLC Cr aig H. Barnes, P.E. cc: Sam Davis, JLB Contracting, LLC David Johnson, Cypress Properties Staff Report to the Board of Directors Date: July 24, 2012 Agenda Item No: REGULAR ITEMS - E. I. Subject: Review and discuss the hotel study from Interim Hospitality Consultants. II. Originated by: Amethyst G. Cirmo, City Secretary and Communications Coordinator III. Summary: Please see the abbreviated study attached. IV. Recommendation: V. Alternative Actions: VI. Attachments: 1.Study Brief.pdf FEASIBILITY STUDY with FINANCIAL PROJECTIONS for a proposed in Kennedale, Texas For the Kennedale Economic Development Corporation Kennedale, Texas 4145 Yardley Circle Tallahassee, Florida 32308-2942 Telephone: 850/893-6010 • Fax: 850/893-83 45 • Cell: 850/443-5010 www.interimhospitality.com • ihcex@comcast.net Member, International Association of Hospitality Advisors Member, Extended-Stay Hotel Council, AHLA July 2, 2012 Mr. Bob Hart, Executive Director Economic Development Corporation 405 Municipal Drive Kennedale, Texas 76060 Via FedEx Dear Mr. Hart: This report, entitled “Feasi bility Study with Financia l Projections” for a proposed Combination Sleep Inn and MainStay Suites Hote l,” to be located at 1100 West Kennedale Parkway, Kennedale, Texas 76060 has been prepar ed pursuant to our Letter of Agreement of May 26, 2012. The report consists of a survey of the site and surrounding areas regarding the suitability for hotel development; a market study of the Kennedale, Texas area pertaining to transient lodging facilities; and based on these studies, es timates and assumptions, discussed in this report, the Financial Projec tions for the proposed hotel. The scope of our work is described in the at tached report and include s, among other things, the following steps: We discuss the demand for the proposed facilities with representatives of government, commerce, and industry. We revisited economic and demographic data and industrial growth statistics of the area. Existing and planned tr avel patterns, area approaches, hotels, restaurants, and lounges were surveyed and analyzed as they pertain to the site. In accordance with our engagement letter, we did not ascertain the legal and regulatory requirements applicable to this project, including zoning, permits, licenses, Americans With Disabilities Act, and other state and lo cal government regulations. No effort has been made to determine the possible effect on this project of present or future federal, state, and local legislation, including any regarding envir onmental or ecological matters, nor was there any analysis of the potential impact of possible energy shortages. Our study is based on information developed from research of the market, knowledge of the industry, and conversati ons with you during which we were provided certain information. The sources of information and bases of our estimates and assumptions are stated in the body of this report. We have no responsibility to update this report for events and circumstances occurring afte r the date of this report. Listed in the Top 20 Hotel Consulting Firms by Hotel/Motel Management for 2006 through 2012 Member, International Associat ion of Hospitality Advisors Member, Extended-Stay Hotel Council, AHLA Mr. Bob Hart, Executive Director July 2, 2012 Page 2 The accompanying projections are based on es timates and assumptions developed in connection with the Feasibility Study. Howeve r, certain assumptions may not materialize, and unanticipated events and circumstances ma y occur; therefore, ac tual results achieved during the projection period may vary from the forecasts, and the variations may be material. The Author and Interim Hospitality Consultants will not be liable for errors and omissions in judgment, negligence, or other fault in c onnection with this Feasibility Study, except for acts of gross negligence, w illful malfeasance, and fraud. We acknowledge that the hotel will be financed through one or more loans with financial institutions, and said financ ial institutions may rely on the Feasibility Study when determining whether to extend financial credit and the terms thereof. In addition, we understand that you plan to offer ownership interests in the hote l to accredited investors in a private placement under various rules and regu lations of the Securities Acts (“Offering), and that investors may rely on the Feasibility Study as part of their investment analysis. Further, we acknowledge that you and others ma y utilize the Feasibili ty Study to evaluate the market potential for the proposed hot el, planning the composition of the hotel, projecting levels of market pe netration, occupancy, and averag e room rate, preparing cash flow and financial projec tions, and other purposes. In your multiple capacities as developer of the hotel, you and your agents and assigns, are hereby authorized to utili ze the Feasibility Study for its intended purposes and in pursuance of the matters described herein. As such, you and your agents and assigns, are authorized to disclose the Feas ibility Study to any a nd all third parties and their attorneys, accountants, and employees who need access in order to analyze aspects of the hotel. These authorizations may not and will not be revoked. Neither you nor third parties to which you disclose the Feasibility Study have a du ty to maintain the c onfidentiality of the Feasibility Study. We acknowledge that the Feasibility Study is owned by you, and you may utilize it as your sole property. Thank you for allowing Interim Hospitality Consultants to be of service to you. Regards, Edward L. Xanders, CHA Its Manager i PREFACE During the Field Research for th e Feasibility Study to determine the viability of a possible hotel near Exit 442 of Interstate 20 (I-20) it became very ev ident that the City of Kennedale, Texas lacked the appropriate market generators to support a normal 60- to 80-room transient hotel. The negative factors included: 1. Lack of I-20 highway signage noting Kennedale Parkway. 2. Lack of Class A Office Space. 3. Numerous reuse equipment businesses along Kennedale Parkway. 4. Three first-class transient hotel s with 211 rooms, only four miles west of the hotel site on I-20 in Forest Hills, Texas. 5. Lack of first-class restaurants and lounge establishments. Mr. Bob Hart, Executive Director of the Kenne dale, Texas, Economic Development Corporation provided a personal tour and independent conversation to ruminate the following points. 1. The streetscape aspects of Kennedale Parkway. 2. Upgrading of Bowman Springs Road, Ex it 443 of I-20, into Kennedale Parkway. 3. Tour of the upper-middl e-class residential neighborhoods. 4. Tour of the Kennedale Town Center and retail expansion plans. 5. Identification of 12 major industrial firms. 6. A speculation of future commuter rail station to tie the city into the Greater Dallas/Ft. Worth Metroplex. 7. An aspiration, with plans, for the Village Creek Park System. 8. A commitment to a developer to “work with va rious city incentives” to foster the development of a feasible hotel. 9. The “Beautification” of Kennedale’s front door – Kennedale Parkway at Interstate 20. 10. A renewed focus to rename Exit 442 of I-20 signage from Mansfield Highway to Kennedale Parkway. The afternoon tour encompassed the I-20 portion of Forest Hill and the U.S. 287 Expressway portion of Mansfield, Texas. Subsequent tours of Mansfield, coupled with a visit to the Mansfield Chamber of Commerce, began to revise positiv e points for a possible Kennedale hotel. In the Spring of 2012, Choice Hotels Internati onal offered a new hybrid mid-priced hotel building – half Sleep Inn and half an extended-stay MainStay Suites. This new product was a perfect fit for the Kennedale, Texas site. Kennedale could support the 35 transient Sleep Inn rooms, and the cities of Forest Hills, Kennedale and Mansfield need a 37-room mid-priced extended-stay hotel, MainStay Suites. These findings were revealed to Mr. Hart, who supported the conclusi on and announced that conversation had begun by the Kenne dale Economic Development office on a possible restaurant/lounge adjoining the hotel site. During the drafting of the Feasibility Study, in a call to Mr. Hart requesting certain manufacturing firms’ number of employees and Growth Plans, Mr. Hart stated he was receiving some “pushback” from ii City Council members and the City Chief of Police, Tommy Williams. The comment was that extended- stay hotels attract a lower social economic client ele and possibly promote criminal-related activities. Interim Hospitality Consultants took the co mment under advisement, with the following response. History The Extended-Stay Hotel Segment of the Amer ican Hotel Industry was begun in the 1970s by Jack DeBoer. Unable to rent a townhouse complex in Wichita, Kansas, he furnished each apartment, added a gatehouse, and rented the units on a weekly basis. This first Residence Inn grew to over 100 hotels across the country, and he sold out to Marriott Hotels. DeBoer waited five years, then built the mid-priced extended-stay Candlewood Suites to 105 units , and cashed out again to Intercontinental Hotels Group. He waited a few years and now has over 200 ValuPlace hotels, a low end economy extended-stay hotel that he calls a studio apartment, rented on a weekly basis, and not a hotel. Most of the hotel franchise companies caught on to this extended-stay segment in the 1980s as it is more profitable than transient hotels, and developed over 25 upscale, mid-priced and economy franchises across the country. In the 1990s extended-stay hotel executives fo rmed the Extended-Stay Council of the American Hotel Lodging Association. Edward Xanders, President of Interim Hospitality Consultants was approved as an Allied Member in 1998. The main purpose of the Council was, and remains, to: 1. Educate hotel developers on the operationa l nuances and high profitab ility of extended-stay hotels; and 2. Inform various regulators and government al officials of this non-traditional hotel accommodation. The nearly 20 years of the Extended-Stay Co uncil work has been successful on both fronts. The Highland Group of Atlanta, Georgia, executives of wh ich were the catalyst of the Council’s formation, produces an annual report on the Extended-Stay Hotel Industry. A copy of the 2012 Report is presented at the end of Section H of this Feasibility Study. Edward Xanders (Cell: 850.443.5010) is available to address any questions on the Highland Report and the Ho tel Feasibility Study. He has been quoted in numerous Hotel Industry Publications and intervie wed on CNBC Cable News on the extended-stay hotel industry. Today The recent national recession has led to unfort unate unemployment and loss of family homes. National newscasts have reported Central Florida indepe ndent motels renting a single room to families of 4 to 10 persons. School bus stops were, and are, common at low end motels as the nation pulls the economy up. Unfortunately there are people who ar e “down and out” seeking shelter. Independent motels add a small refrige rator and microwave, and claim they are weekly extended-stay hotels – which they may be, due to economic conditions. iii The subject Sleep Inn/MainStay Suites is not a budget hotel. It is a mid-priced hotel product. Mid-priced Transient Hotels Mid-priced Extended-Stay Hotels Sleep Inn by Choice Hotels MainStay Suites by Choice Hotels Comfort Inn by Choice Hotels Candlewood Suites by IHG Comfort Suites by Choice Hotels Crestwood Suites Hampton Inn by Hilton Extended Stay America Holiday Inn Express by IHG Hawthorne Suites by Wyndham Hotels Fairfield Inn by Marriott Extended Stay Deluxe Springhill Suites by Marriott Homestead Suites Country Inn and Suites by Carlson Home-Towne Suites Wingate Inn by Wyndham Hotels Home2 by Hilton Best Western Plus TownPlace by Marriott Up-Scale Extended-Stay Hotels Economy Extended-Stay Hotels Residence Inn by Marriott Suburban Extended-Stay by Choice Hotels Homewood Suites by Hilton Studio 6 Hyatt House Crossland Suites by ESA Staybridge Suites by IHC Sun Suites Element by Starwood Hotels Savannah Suites Note: The Highland Report does NOT classify ValuPlace as an Economy Extended-Stay Hotel, as it is a studio apartment building The transient Sleep Inn, of this Study, is projected to have an Average Daily Rate of $75.00 in 2015. The mid-priced extended-stay MainStay Suites is projected to have an Average Daily Rate of 85.00 per night, or $595 per week. Not economy, not budget, but solid mid-priced. Fort Worth Area Extended Stay Hotels Smith Travel Research of Hendersonville, Tenn essee, the preeminent s ource of worldwide hotel data, lists the following extended-stay hotels in the Greater Fort Worth area. The City Police Chief is listed to assist Chief Williams in contacting his coun terparts and determine the police cases at any of the extended-stay hotels. Interim Hospitality Consultants, due to confidentiality, was not permitted to obtain the police case data. Arlington Texas Police Chief Theron Bowman Upscale Hotels Mid-priced Hotels Economy Hotels Residence Inn by Marriott Homestead Intown Suites (4) Homewood Suites by Hilton Hawthorn by Wyndham Studio 6 (2) Candlewood Suites by IHG TownePlace by Marriott Studio Plus Bedford Texas Police Chief Rodger Gibson Upscale Hotels Mid-priced Hotels Economy Hotels Homewood Suites by Hilton Extended-Stay Deluxe TownePlace by Marriott iv Fort Worth, Texas Police Chief Jeffery Halstead Upscale Hotels Mid-priced Hotels Economy Hotels Staybridge Suites by IHG TownePl ace by Marriott (2) Crossland Suites Homewood Suites by Hilton (2) Exended-Stay America Residence Inn by Marriott (4) Extended-Stay Deluxe (2) Candlewood Suites by IHG (3) Grapevine, Texas Police Chief Eddie Salame Upscale Hotels Mid-priced Hotels Economy Hotels Homewood Suites by Hilton Residence Inn by Marriott North Richland Hills, Texas Police Chief Jimmy Perdue Upscale Hotels Mid-priced Hotels Economy Hotels InTown Suites Studio 6 Weatherford, Texas Police Chief Mike Manning Upscale Hotels Mid-priced Hotels Economy Hotels Candlewood Suites by IHG Recap The 38 Extended-Stay Hotels – 13 Upscale; 16 Mid-priced; 9 Economy -- represent 11.2% of the 340 hotels in Greater Fort Worth. Please review the hotel websites to ascertain the quality level of each price point (i.e., choicehotelfranchise.com) or tour a local extended-stay hotel; the Hotel General Manager or Sales Director will be pleased to point out the features of these excellent hotel accommodations. The 35-room Sleep Inn for Kennedale, coupled w ith the fact that Forest Hills, Kennedale and Mansfield have NO extended-stay hotels, bodes well for th e success of the mid-priced 37-room Kennedale MainStay Suites by Choice Hotels. Inte restingly, MainStay Suites has a national average occupancy of 64%, the highest of any of the eleven hotel brands operated by Choice Hotels. vii Summary..........................................................................................................................F-3 Prototype Rendering of Sleep Inn/MainStay Suites...........................................F-4 and F-6 Environmental Concerns...................................................................................F-5 and F-47 Changes in ADA Standards..............................................................................F-5 and F-51 Room Layout for 72 Rooms, Aquatic Center and Meeting Rooms...............................F-45 PROJECTED UTILIZATION OF THE PROPOSED HOTEL ................................G-1 Projected Market Penetration and Occupancy................................................................G-1 Market Penetration..........................................................................................................G-4 Projected Occupancy Average Room Rate.....................................................................G-7 Summary.........................................................................................................................G-8 FINANCIAL PROFORMA .................................................................................H-1 Proforma Year One ........................................................................................................H-2 Rooms Depart ment.........................................................................................................H-3 Miscellaneous Departments............................................................................................H-4 Total Hotel Payroll..........................................................................................................H-4 Administrative and General............................................................................................H-5 Food & Beverage Complimentary Services...................................................................H-6 Sales and Marketing........................................................................................................H-7 National Fees..................................................................................................................H-7 Utilities............................................................................................................................H-8 Repairs and Maintenance................................................................................................H-8 Five-Year Proforma .......................................................................................................H-9 Suite Hotels...................................................................................................................H-10 Financing Considerations..............................................................................................H-10 Hospitality Investment Survey – Pannell, Kerr, Forster Consulting, May 2012............H-11 Trends in the Hotel Industry – Pannell, Kerr, Forster Consulting................................H-17 U.S. Extended Stay Lodging Market 2012 – The Highland Group...............................H-59 INTERIM HOSPITALITY CONSULTANTS ........................................................I-1 2008 Top Hotel Consultants Survey.................................................................................I-3 Interim Hospitality Consultants Map................................................................................I-4 Selected Completed Projects.............................................................................................I-5 Feasibility Study Client List...........................................................................................I-10 Hotel Properties Assisted................................................................................................I-22 Brochure..........................................................................................................................I-26 Letter of Agreement........................................................................................................I-35 Kennedale, Texas, Feasibility Study Page A-1 INTRODUCTION Interim Hospitality Consultants was engaged to conduct a Feasibility Study with Financial Projections for a Sleep Inn/MainStay Suites hotel to be located at 1100 West Kennedale Parkway in Kennedale, Texas. The proposed hotel is to have all the amenities commensurate with a mid- priced transient and extended-stay hotel. Objectives of Study The basic objectives of the study were to: 1. Evaluate the market potential for the pr oposed hotel based on an analysis of the market support for a lodging facility on the subject site. 2. Comment on the appropriate number, types, and sizes of guest rooms and other amenities which would best serve the needs of the market. 3. Project levels of market penetration, occupancy, and average room rate for the proposed hotel for the first five years of operations. 4. Prepare detailed projections of Cash Flow from operations befo re fixed charges for the hotel for the first five years of operations. 5. Provide a written report containing the conclusions of the Feasibility Study and present Financial Projections for the proposed hotel. Kennedale, Texas, Feasibility Study Page A-2 Scope of Study The Feasibility Study included a variety of work steps which enabled us to evaluate historic trends and project the future competitive supply of and demand for lodging accommodations in the area. The scope of the wo rk included, but was not necessarily limited to, the following: 1. An analysis and economic evaluation of the Kennedale, Texas, market area based on interviews with area businessmen and govern ment officials, comp ilation of pertinent market data, and a review of those economic indices which would be most relevant to the success of the proposed project. 2. An inspection of the site and surrounding area to determine their suitability for the proposed hotel, taking into consideration su ch factors as accessibility, visibility, and proximity to demand generators. 3. An inspection and analysis of the hotels in Kennedale, Texas, that would provide the primary competition to the proposed hotel. Our census of the competitive facilities included existing hotels as well as those under construction, planned, or rumored. 4. A determination of the current overall ma rket demand and rooms in the subject area and the share of market demand that is ge nerated by tourists, commercial travelers, and group meetings/ convention delegates. 5. A projection of growth rates for the various market segments based on the factors that should impact the future demand for hotel rooms. 6. An evaluation of the projected hotel s upply and demand relationship in the market area to reach conclusions regarding the market support for the proposed hotel. 7. Comment on the proposed facilities in term s of number, mix, and type of guest rooms, and recreational amenities. 8. Comment on the proposed facilities in terms of style and size. 9. Projections of occupancy and average r oom rate for the proposed hotel, including projected market mix of guests. 10. Projections of cash flow from operations be fore fixed charges for the first five years of operations. Kennedale, Texas, Feasibility Study Page B-1 CONCLUSIONS The Market research and analysis, as de scribed in this report, indicate that the composition, strength, and projected demand for lodging accommodations in Kennedale, Texas are sufficient to support the proposed mid-priced Sleep Inn/MainStay Suites. Market Area Analysis (Section C) Kennedale, Texas is a community on the move with its: 1. Hosting 12 major industrial firms, led by Fort Worth Tower (FWT) located across the Parkway from the hotel site. 2. Working with Tarrant County to esta blish a commuter rail stop in the city, thereby connecting the city to the entire Dallas/Fort Worth Metroplex by rail. 3. Establishment of the Village Creek Park System, adjacent to the hotel site. Kennedale, Texas, Feasibility Study Page B-2 4. Offering beautiful, upper middle cla ss neighborhoods for the 20 minute commute to downtown Fort Worth. 5. Establishment of Class-A retail centers and office space along Kennedale Parkway/Business Route U.S. 287. The progressive leadership of elected offici als and city staff assure the success of the “Imagine Kennedale 2015 Strategic Plan.” Site and Area Evaluation (Section D) The site of the proposed Sleep Inn/MainStay Suites hotel is well positioned at Exit 442A at the intersection of Interstate 20 and th e Fort Worth Business l oop Interstate 820. The site is 1100 West Kennedale Park way (Business Route U.S. 287) at Oakcrest Drive, one block south of the Interstate exit. It must be noted that prac tically all of the I-20 signage does NOT mention the roadway of Kennedale Parkway – but Mans field Highway. The city of Mansfield is located eight miles south of this Interstate exit. Until the City of Kennedale corrects this misnomer it will continue to be “second” to Mansfield. The City of Kennedale has begun to establis h a Village Park system along the banks of Village Creek. A portion of this park is to be located immediately south of the site of the proposed hotel. Supply and Demand Analysis (Section E) In 2008 there were six hotels in Forest Hills and Mansfield, Texas with 415 rooms which produced a reportedly 50.7% occupancy. In 2009 a LaQuinta Inn and Hampton Inn opened in Forest Hills and a Fairfield Inn in Mansfield. These 233 new rooms (a 56.1% increase) dropped the Market Area Occupancy to 39.9%. Two years later in 2011, the Market Demand increased to absorb the now 648 R oom Supply to produce a 52.7% occupancy in 2011. For the first four months of 2012, the occupancy is at 55.9% up from 48.0% in 2011. The market area is now ready to accept a new hotel – and first for Kennedale, Texas with a 72-room Sleep Inn/MainStay Suites. Kennedale, Texas, Feasibility Study Page B-3 Professional operation and management w ill focus the mid-priced Sleep Inn to Kennedale and the mid-priced extended MainStay Su ites to the tri-city market area of Forest Hills, Kennedale and Mansfield.. Proposed Facilities and Services (Section F) The Field Research of the Feasibility Study supports the selection of Sleep Inn/MainStay Suites, a franchise of Choice Hotels International. Sleep Inn/MainStay Suites Kennedale, Texas Proposed Room Mix 19 Queen/Queen – Sleep Inn 9 King – Sleep Inn 7 King/Sofa – Sleep Inn 3 King Celebration – MainStay Suites 18 Queen/Queen – MainStay Suites 13 King/Sofa – MainStay Suites 3 King/Parlor – MainStay Suites 72 Total Rooms Source: Interim Hospitality Consultants Note: Certain Guest Rooms and Suites may be combined to form market-warranted two-room suites. Projected Utilization of the Proposed Hotel (Section G) As previously noted in Supply and Dema nd (Section E) the 35 room Sleep Inn will primarily focus on the City of Kennedale for its transient room occupancy. The 37 room MainStay Suites will be marked to the Tri-City area of Forest Hills, Kennedale and Mansfield as the only mid-priced Extended Stay Hotel. The U.S. Extended Stay Lodging Market – 2012 by the Highland Group, Atlanta, Georgia (the report is presented at the end of the Financial Proforma (Section H) of this Feasibility Study) reveals that Extended Stay Hotels enjoyed a 14.1% increase in occupancy over transient hotels in 2011. Of note, is th at Extended Stay occupancy has produced an average 12.4% increase every year since 1998. Based upon the premium occupancy of the Ma inStay Suites, the proposed hotel’s Total Market Penetration and underlying assumptions are summarized as follows: Kennedale, Texas, Feasibility Study Page B-4 1. Leisure: Due to the hotel being marketed as the number one qua lity product in the midpriced limited-service hotel classificati on, the hotel’s projec ted penetration of fair market share will rise from 110.9% to 118.6% over the five-year projection period. 2. Commercial: The fair market share of commercial business is projected to rise from 110.9% to 118.6%. This can be achieved with a professional sales marketing effort. If for any reason the tourist bus iness declines through seasonality or energy shortages, state and local commercial solicitation must be made to offset the decline. 3. Occupancy: The projected occupancy should be attainable if the property is built as described, professionally operated in all facets, and business of the area continues to be positive. In years 3 to 5, additional competition may materialize to substantially reduce the projections. These projections are based on estimates and assumptions developed in connection with the Feasibility Study. However, certain assumptions may not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the projection period may vary from the forecasts, and the variations may be material. Proposed Sleep Inn/MainStay Suites Kennedale, Texas Year Occupancy Average Daily Rate Room Revenue 2015 61% $ 84.00 $1,346,590 2016 63% $ 88.00 $1,460,950 2017 65% $ 92.00 $1,571,540 2018 68% $ 97.00 $1,733,430 2019 70% $102.00 $1,876,390 Source: Interim Hospitality Consultants Financial Analysis (Section H) Projections of annual operating returns fo r the Sleep Inn/MainStay Suites by Choice Hotels Worldwide were prepared for five y ears, 2015 through 2019. The projections are based on the results of operations of comparable facilities and our conclusions regarding the environment in which the hotel would operate. Kennedale, Texas, Feasibility Study Page B-5 Proposed Sleep Inn/MainStay Suites Kennedale, Texas Year Total Revenue Net Operating Income Before Debt Service 2015 $1,414,790 $447,350 31.6% 2016 $1,543,960 $500,100 32.4% 2017 $1,656,950 $573,800 34.6% 2018 $1,620,420 $660,460 36.3% 2019 $1,968,370 $739,790 37.6% Source: Interim Hospitality Consultants The accompanying projections are based on estimates and assumptions developed in connection with the Feasibility Study. Howeve r, some assumptions inevitably will not materialize, and unanticipated events and circ umstances may occur, therefore, actual results achieved during the projection period will vary from the projections and the variations may be material. Choice Hotels International Information on the worldwide hotel company, Choice Hotels Interna tional, is presented on the following pages. Staff Report to the Board of Directors Date: July 24, 2012 Agenda Item No: STAFF ANNOUNCEMENTS/REPORTS - A. I. Subject: Updates from the Executive Director, Orasi Development, and the Chamber of Commerce: 1.Chamber of Commerce update and introduction of the new Executive Director, Jesse Elizondo. 2.TownCenter status 3.New Hope & Bloxom Road Tax Increment Reinvestment Zone (TIRZ) with Tarrant County 4.Concept development for Oak Crest and Kennedale Parkway 5.TxDOT signage II. Originated by: III. Summary: General updates. IV. Recommendation: None V. Alternative Actions: VI. Attachments: Staff Report to the Board of Directors Date: July 24, 2012 Agenda Item No: EXECUTIVE SESSION - A. I. Subject: The Economic Development Corporation will meet in closed session pursuant to Section 551.072 of the Texas Government Code to deliberate the purchase, lease, or value of real property. 1. Discuss Property at 1000 E Kennedale Parkway 2. Discuss bid submissions for city properties II. Originated by: III. Summary: Executive session. IV. Recommendation: V. Alternative Actions: VI. Attachments: Staff Report to the Board of Directors Date: July 24, 2012 Agenda Item No: EXECUTIVE SESSION - B. I. Subject: The Economic Development Corporation will meet in closed session pursuant to Section 551.087 of the Texas Government Code to deliberate the offer of a financial or other incentive to a business project with which the city is conducting economic development negotiations. 1. Incentives for development of property at 1201 West Kennedale Parkway 2. Incentives for development of property at 445 West Kennedale Parkway II. Originated by: III. Summary: Executive session. IV. Recommendation: V. Alternative Actions: VI. Attachments: