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2015_03.12 EDC Agenda PacketECONOMIC DEVELOPMENT CORPORATION AGENDA BOARD OF DIRECTORS - REGULAR MEETING March 12, 2015 CITY HALL CONFERENCE ROOM, 405 MUNICIPAL DRIVE REGULAR SESSION - 12:00 PM CALL TO ORDER II. ROLL CALL III. MINUTES APPROVAL A. Consider approval of the minutes from the February 12, 2015 regular meeting IV. REGULAR ITEMS A. Review and accept the KEDC Financial Report for January 2015. B. Discuss and consider action for approval of Economic Development Corporation Independent Auditor's Report for year ended September 30, 2014. 1VA&A L\3y, \iN .00111.N? &I#Rk &*fl.1 09J;W A. Link Street, Burger King, Popeye's Ribbon Cutting B. TIP Sidewalk Project C. Village Creek Studies D. Chamber Update 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. Town Center Development 2. 733 Kennedale Parkway Business Incentives 3. 5414 Highridge Road 4. Industrial Prospect for Bloxom Park 5. 1298 Kennedale Parkway Business Incentives 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 the City Secretary at 817.985.2104 or (TDD) 1.800.735.2989 CERTIFICATION I certify that a copy of the March 12, 2015, 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. _!a_Q.2c- �� Leslie Galloway, City cretary 405 Municipal Drive, Kennedale, TX 76060 1 Telephone: 817.985.2102 1 Fax: 817- 478 -7169 Date: March 12, 2015 Agenda Item No: MINUTES APPROVAL - A. I. Subject: Consider approval of the minutes from the February 12, 2015 regular meeting 11. Originated by: Kathy Moore, Deputy City Secretary III. Summary: Minutes are prepared by the Deputy City Secretary and ready for approval. IV. Recommendation: Approve V. Alternative Actions: VI. Attachments: 1. JEDC Meeting Minutes - February 12, 2015 2712.15.pdf ECONOMIC DEVELOPMENT CORPORATION BOARD OF DIRECTORS - REGULAR MEETING MINUTES February 12, 2015 I. CALL TO ORDER Robert Mundy called the meeting to order at 12:00 p.m. II. ROLL CALL Present: Robert Mundy, Ron Whitley, Rebecca Mowell, Mark Yeary, Mike Johnson, Adrienne Kay and Pat Turner Absent: None Staff Present: Bob Hart, Kathy Moore, and Jack Thompson with Orasi Development/Chamber of Commerce III. MINUTES APPROVAL A. Consider approval of the minutes from the January 8, 2015 regular meeting Motion: To approve the minutes as presented. Action: Approve, Moved By: Adrienne Kay, Seconded By: Ron Whitley. Motion Passed Unanimously IV. REGULAR ITEMS A. Review and accept the KEDC Financial Report for December 2014 Sakura Moten - Dedrick present the December 2014 Financial Report for the Kennedale Economic Development Corporation, noting the comparisons from 2013. Pat Turner questioned the decline in sales tax; Finance Director Moten - Dedrick stated that posting normally runs 2 months behind, also noting that it was dependent upon the timing of the deposits. Motion: To approve the minutes as presented. Action: Approve, Moved By: Pat Turner, Seconded By: Mike Johnson. Motion Passed Unanimously V. STAFF ANNOUNCEMENTS /REPORTS A. Link Street, Burger King, Popeye's Ribbon Cutting Bob Hart stated that Jack Thompson was planning a ribbon cutting ceremony for Popeye's and Burger King and will combine the ribbon cutting with the dedication of Link Street with Commissioner Andy Nguyen. The target date is in March. Additionally, he added that the Dixie House Cafe had expressed interest in the old Showtime building. B. TIP Sidewalk Project Bob Hart informed the Board that the Kennedale Parkway Sidewalk project was under construction, with some curb repairs underway; he estimated that the project should be complete by the end of August. C. Village Creek Studies Hart stated that the City completed contracts for the Village Creek Flood Control Study with the Corps of Engineers, and with UTA for water quality testing. Pat Turner questioned the future project funding source; Hart replied that 80% was core funding (FEMA and the EPA) and 20% was local funding. It was noted that the UTA contract was funded by the City thought the Storm Water Budget. Bob Hart concluded that the flood control study project would take approximately two and a half years to complete. D. Kabosi Properties Director Hart stated that H2O Plumbing Supply based out of McKinney / Lewisville are interested in expanding their business and have expressed interest in this property. Bob noted that they have a good history at their other locations and would employee 6 -8 people at the Kennedale location. E. Chamber Update Jack Thompson provided updates of Chamber activities, highlighting the Chambers increase in membership renewals. Additionally, he stated that a total of seventeen attended Legislative Day in Austin on February 10 and they held their Ambassador Retreat with eleven representatives. Thompson reminded everyone that the Chamber was still seeking sponsorships until the end of the month for ribbon cutting baskets and new resident welcome packets. President Mundy recessed the meeting into executive session at 12:37 p.m. 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. Town Center Development 2. 1298 Kennedale Parkway 3. 5414 High Ridge Road 4. Industrial Prospect VII. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO EXECUTIVE SESSION, IF NEEDED President Mundy reopened the regular session at 1:29 p.m. No Action required pursuant to executive session. Mundy noted that the next regular scheduled meeting would be held March 12, 2015, at 12:00 p.m. VIII. ADJOURNMENT Motion Adjourn. Action Adjourn, Moved By Becky Mowell, Seconded By Mark Yeary. Motion passed Unanimously The meeting was adjourned at 1:31 PM APPROVED: President Robert Mundy ATTEST: Deputy City Secretary Kathy E. Moore Date: March 12, 2015 Agenda Item No: REGULAR ITEMS - A. I. Subject: Review and accept the KEDC Financial Report for January 2015. 11. Originated by: Sakura Moten - Dedrick, Director of Finance & IT III. Summary: The January 2015 EDC Financial Reports will be emailed on Tuesday, March 10, 2015. IV. Recommendation: Approve V. Alternative Actions: VI. Attachments: F-A KENNEDALE Kennedale Economic Development nned a . Staff Report to the Board of Directors c om vaww cityoflt Date: March 12, 2015 Agenda Item No: REGULAR ITEMS - B. I. Subject: Discuss and consider action for approval of Economic Development Corporation Independent Auditor's Report for year ended September 30, 2014. 11. Originated by: Sakura Moten- Dedrick, Director of Finance & IT III. Summary: The auditor's opinion on the financial statements for the year ended September 30, 2014 is that the statements present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the discretely - presented component unit, each major fund, and the aggregate remaining fund information of the Kennedale Economic Development Corporation (KEDC) as of September 30, 2014. The statements also present the respective changes in financial position and cash flows, where applicable, and the budgetary comparison for major fund - types, thus demonstrating the KEDC end of year financial report is in conformity with the Generally Accepted Accounting Principles (GAAP) as provided by the Governmental Accounting Standard Boards (GASB) of America. Our auditors will be present to review their findings with the Board, as well as provide bound copies of the report. IV. Recommendation: Approve V. Alternative Actions: Staff recommends Directors accept and approve the Independent Auditor's Report as presented by Patillo, Brown, & Hill, LLP. VI. Attachments: 1. F '13 -14 EDC Draft Audit 12014 Draft EDC Audit.pdf KENNEDALE ECONOMIC DEVELOPMENT CORPORATION ANNUAL FINANCIAL REPORT SEPTEMBER 30, 2014 KENNEDALE ECONOMIC DEVELOPMENT CORPORATION TABLE OF CONTENTS SEPTEMBER 30, 2014 Page Nunibei- Independent Auditors' Report ............. ... . ............, ......... .. 1-2 Management's Discussion and Analysis .............................. ........ ............................... 3-6 Basic Financial Statements: Statement of Net Assets and Governmental Fund Balance Sheet ....... ............................... 7 Statement of Activities and Governmental Fund Revenues, Expenditures and Changes in Fund Balance ..................................... ............................... 8 Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual — General Fund ....................... ............................... 9 Notesto Financial Statements .............................................................. ............................... 10-16 161 PATTILLO, BROWN & HILL, L.L.P. CERTIFIED PUBLIC ACCOUNTANTS ■ BUSINESS CONSULTANTS INDEPENDENT AUDITORS' REPORT To the Board of Directors, Of Kennedale Economic Development Corporation Kennedale, Texas Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities and major fund of Kennedale Economic Development Corporation (the "Corporation "), a component unit of the City of Kennedale, Texas, as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the Corporation's basic financial statements as listed in the table of contents, Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. IIILLSB0110, TX HOUSTON, TX NVACO, TX 1 I 5 South Church St. 281.671,6259 254.772.4901 A� PA Hillsboro, Toxae 76645 1110 CRANDF, VALI,F.Y, 'rX 254,582.2583 956.544.7778 AL1WQ1JEIt }1JF, NIFI Governmental Audit WWW,phhepa.num TFI►1PLF., TX 505.266.5904 Quality Center 254,791,3460 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and major fund of the Corporation, as of September 30, 2014, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle As discussed in Note 1 to the Financial Statements, in 2014 the City adopted new accounting guidance, GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. Our opinion in not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 3 through 6 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. March 5, 2015 2 MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the Kennedale Economic Development Corporation, we offer readers of the Kennedale Economic Development Corporation financial statements, this narrative overview, and analysis of the financial activities of the Kennedale Economic Development Corporation for the fiscal year ended September 30, 2014. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the accompanying basic financial statements. FINANCIAL HIGHLIGHTS • The assets of the Kennedale Economic Development Corporation exceeded its liabilities at the close of the most recent fiscal year by $5,220,834. • The Kennedale Economic Development Corporation's net position increased by $262,913. The increase was due to decreases in miscellaneous income from the sale of property and sales tax revenue. This was offset by the increase in administration expenses primarily due to depreciation and a decrease in rental income. +► As of the close of the current fiscal year, the Kemnedale Economic Development Corporation's governmental fund reported an ending fund balance of $376,090, an increase of $781,855 in comparison with the prior year. The increase is primarily related to the sale of property in the current year. • At the end of the current fiscal year, the restricted fund balance for the General Fund was $376,090. OVERVIEW OF THE FINANCIAL STATEMENTS The discussion and analysis is intended to serve as an introduction to the Kennedale Economic Development Corporation's basic financial statements. The Kennedale Economic Development Corporation's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the Kennedale Economic Development Corporation's finances, in a manner similar to a private- sector business. The statement of net position presents information on all of the Kennedale Economic Development Corporation's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Kennedale Economic Development Corporation is improving or deteriorating. 3 The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in these statements for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes). Both the statement of net position and the statement of activities are prepared utilizing the accrual basis of accounting as opposed to the modified accrual basis used in prior reporting models. Governmental activities — Most of the Corporation's basic expenditures are reported here, including administrative and incentive grants. Sales taxes and investment earnings finance these activities. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Kennedale Economic Development Corporation uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. The Corporation uses the following fund type: Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for govermmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -tern impact of the government's near -term financing decision. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Kennedale Economic Development Corporation maintains one individual governmental fund. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, which is considered to be a major fund. The Kennedale Economic Development Corporation adopts an annual appropriated budget for its governmental fiend. A budgetary comparison statement has been provided for General Fund component unit to demonstrate compliance with the budget. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found in the financial section. 4 GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted earlier, over time, net position may serve as a useful indicator of the Corporation's financial position. In the case of the Kennedale Economic Development Corporation, assets exceeded liabilities by $5,220,834 at the close of the most recent fiscal year. KENNEDALE ECONOMIC DEVELOPMENT CORPORATION'S NET POSITION Govermnental Activities 2014 2013 Current assets $ 394,344 $ 275,105 Capital assets 6,330,481 6,930,383 Total assets 6,724,825 7,205,488 Current liabilities 18,254 658,233 Noncurrent liabilities 1,485,737 1,566,697 Total liabilities 1,503,991 2,224,930 Net position: $ 339,515 Rental Income Net investment in capital assets 4,844,744 5,363,686 Unrestricted 376,090 ( 383,128) Total net position $ 5,220,834 $ 4,980,558 The Corporation's net position increased by $262,913 during the current fiscal year. This increase is primarily due to increases in sales tax and miscellaneous income offsetting the increase in administration expenses. KENNEDALE ECONOMIC DEVELOPMENT CORPORATION'S CHANGES IN NET POSITION 1 Governmental Activities 2014 2013 General Revenues: Sales tax $ 377,959 $ 339,515 Rental Income 149,950 199,990 Miscellaneous income 601,337 117,255 Investment earnings 49 612 Total general revenues 1,129,295 657,372 Expenses: Economic development: Administration 624,286 322,345 Payment to city for debt 155,119 151,619 Interest and fiscal charges 86,977 89,233 Total expenses 866,382 563,197 Changes in net assets 262,913 94,175 Net assets, beginning 4,980,558 4,886,383 Prior period adjustment (22,637 - Net assets,, ending $ 5,220,834 $ 4,980,558 1 Governmental activities. The Corporation's general revenues increased by $878,681 or 133.67% from last year. The increase was due to an increase in miscellaneous income due to the sale of land. Sales tax revenue increased by $38,444 or 11.32% to $377,959. DISCUSSION OF CURRENTLY KNOWN FACTS, DECISIONS OR CONDITIONS IN FISCAL YEAR 2014 The Kennedale Economic Development Corporation's projects for the fiscal year and beyond include: 1) Securing development agreements with the racetracks providing for the orderly conversion to residential subdivisions, 2) Opening two fast food restaurants in the Oak Crest development, 3) Securing a commitment from a hotel developer for the Oak Crest development, 4) Continuing the development of the Kennedale TownCenter, and 5) Identifying potential tracts of land to acquire, consolidate, clear and resell for light manufacturing uses. REQUESTS FOR INFORMATION The financial report is designed to provide a general overview of the Kennedale Economic Development Corporation's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Treasurer, Kennedale Economic Development Corporation, 405 Municipal Dr., Kennedale, Texas 76060. 6 BASIC FINANCIAL STATEMENTS KENNEDALE ECONOMIC DEVELOPMENT CORPORATION STATEMENT OF NET POSITION AND GOVERNMENTAL FUND BALANCE SHEET SEPTEMBER 30, 2014 General Adjustments ASSETS 394,344 Cash and investments $ 336,568 $ - Sales taxes receivable 55,464 - Accounts receivable 2,312 - Capital assets: - Land - 1,340,853 Buildings and improvements - 5,697,832 Construction in progress - 171,641 Less: accumulated depreciation - ( 879,845 Total capital assets - 6,330,481 Total assets 394,344 6,330,481 LIABILITIES Accounts payable 3,355 - Customer deposits 14,899 - Noncurrent liabilities: Due within one year - 87,147 Due in more than one year - 1,398,590 Total liabilities 18,254 1,485,737 FUND BALANCE/NET POSITION Fund balance: Restricted for economic development 376,090 ( 376,090) Total fund balance 376,090 ( 376,090) Total liabilities and fund balance $ 394,344 Net position: Invested in capital assets, net of related debt 4,844,744 Restricted for economic development 376,090 Total net position $ 5,220,834 The accompanying notes are an integral part of these financial statements. 7 Statement of Net Assets $ 336,568 55,464 2,312 1,340,853 5,697,832 171,641 879,845) 6,330,481 6,724,825 3,355 14,899 87,147 1,398,590 1,503,991 4,844,744 376,090 $ 5,220,834 KENNEDALE ECONOMIC DEVELOPMENT CORPORATION STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUND REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED SEPTEMBER 30, 2014 The accompanying notes are an integral part of these financial statements. 8 Statement General Adjustments of Activities Expenditures /expenses: Current: Economic development $ 431,142 $ 193,144 $ 624,286 Payment to city for debt 155,119 - 1 S 5,119 Debt service: Principal 80,961 ( 80,961) - Interest and fiscal charges 86,976 1 86,977 Total expenditures /expenses 754,198 112,184 866,382 General revenues: Sales taxes 377,959 4 377,959 Rental income 149,950 149,950 Miscellaneous income 1,008,095 ( 406,758) 601,337 Investment earnings 49 49 Total general revenues 1,536,053 (_ 406,758 1,129,295 Excess of revenues over expenditures 781,855 ( 518,942 262,913 Net change in fiend balance 781,855 ( 781,855) - Change in net position - 262,913 262,913 Fund balance /net position: Beginning ( 405,765) 5,386,323 4,980,558 Prior period adjustment - ( 22,637 ( 22,637) Ending $ 376,090 $ 4,844,744 $ 5,220,834 The accompanying notes are an integral part of these financial statements. 8 KENNEDALE ECONOMIC DEVELOPMENT CORPORATION I COMPONENT UNIT - GENERAL FUND i STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2014 (With Comparative Actual Amounts for the Year Ended September 30, 2013) Ei f 2014 2013 REVENUES Sales tax Rental income Miscellaneous income Investment earnings Total revenues EXPENDITURES Current: Economic development Payment to city for debt Debt Service: Principal Interest and fiscal charges Total expenditures NET CHANGE IN FUND BALANCES FUND BALANCES, BEGINNING FUND BALANCES, ENDING Variance with Final Budget Budgeted Amounts Actual Positive Actual Original Final Amounts (Negative) Amounts $ 328,940 $ 328,940 $ 377,959 $ 49,019 $ 339,515 174,940 174,940 149,950 ( 24,990) 199,990 600,000 600,000 1,008,095 408,095 117,255 697 697 49_ ( 648 612 L104,577 1,104,577 1,536,053 431,476 657,372 451,470 459,182 431,142 28,040 952,303 155,118 155,118 155,119 ( 1) 151,619 99,171 91,459 80,961 10,498 71,954 87,016 87,016 86,976 40 89,233 792,775 792,775 754,198 38,577 1,265,109 311,802 311,802 781,855 470,053 ( 607,737) 405,765) { +105,765 { 405,765 - 201,972 $( 93,963 ) $( 93 93 $ 376,090 $ 470,053 $( 405,765 The accompanying notes are an integral part of these financial statements. 9 KENNEDALE ECONOMIC DEVELOPMENT CORPORATION NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2014 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of Kennedale Economic Development Corporation (the "Corporation ") have been prepared in conformity with generally accepted accounting principles ( "GAAP ") for local governmental units. The Governmental Accounting Standards Board ( "GASB ") is the accepted standard- setting body for establishing governmental accounting and financial reporting principles. GASB's jurisdiction includes nonprofit corporations that are in substance part of a governmental unit. The most significant accounting and reporting policies of the Corporation are described in the following notes to the financial statements. A. Reporting Entity The Kennedale Economic Development Corporation (KEDC) was incorporated on December 2, 1996. The Corporation is a nonprofit corporation organized and operating under the laws of the State of Texas, particularly Section 4B of the Development Corporation Act of 1979, as amended and Article 5190.6, Vernon's Texas Civil Statutes, (the "Act "), as amended. The Corporation was created following an election held by the City of Kennedale, Texas (the "City "), on August 10, 1996, to levy 0.5% local sales and use tax in the City for the benefit of the Corporation. The Corporation, as currently organized, is to promote economic development within the City, including, but not limited to, construction, operation and administration, as permitted by Section 4B of the Act, as amended. The Corporation is a discretely presented component unit of the City under the provisions of Governmental Accounting Standards Board Statement No. 61. As required by generally accepted accounting principles, these financial statements present the Kennedale Economic Development Corporation and do not include any component units, entities for which the Corporation is considered to be financially accountable. The Corporation did not have any entities which meet the component unit criteria. Therefore, the reporting entity is limited to those departments which comprise the Corporation's legally adopted jurisdiction. However, the Corporation is considered to be, and is reported as, a component unit of the City. B. Government -wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the government. Governmental activities are supported by taxes, rent and investment revenue. 10 The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenue. Direct expenses are those that are clearly identifiable with a specific function. Program revenue includes 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenue are reported instead as general revenue. The government -wide and fund financial statements are provided for the governmental fund of the Corporation with a column for adjustments between the two statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenue is recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Corporation considers revenues to be available if they are collected within 60 days of the end of the current period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest income associated with the current fiscal period is considered to be susceptible to accrual and so has been recognized as revenue of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the Corporation. The Corporation reports the following major governmental fund: The General Fund is the government's primary operating fund. It accounts for all financial resources of the Corporation. There are no other funds of the Corporation. D. Assets, Liabilities and Net Assets or Equity Cash and Investments The City of Kennedale, Texas, pools substantially all cash and investments except for separate cash and investment accounts which are maintained in accordance with legal restrictions. The Corporation participates in the City's cash and investment pool. Investments are recorded at fair value. Fair value is the amount at which a financial instrument could be exchanged in current transactions between willing parties. Investment income on investments is allocated to the Corporation based upon its pro rata participation in the pool. 11 Long -term Obligations In the government -wide financial statements, long -term debt and other long -term obligations are reported as liabilities in the governmental activities statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Net Position Net positions represent the difference between assets, deferred inflows /outflows of resources and liabilities. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvements of those assets, and adding back unspent proceeds. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislations adopted by the District or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. 2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgetary Information The Economic Development Board of Directors and the City Council of the City of Kennedale, Texas, follow these procedures in establishing budgets reflected in the financial statements: 1. Prior to the beginning of each fiscal year, the Executive Director submits a proposed budget to the Corporation's Board of Directors for the fiscal year beginning on the following October 1. The operating budget includes proposed expenditures and means of financing them. 2. Public hearings are conducted at which all interested persons' comments concerning the budget are heard. 3. The budget is legally enacted by the Corporation's Board of Directors and ratified by the City Council of the City. 4. The Board of Directors and the City Council must approve any budget amendments. At the end of each fiscal year, all appropriations lapse. 5. Annual budgets adopted for the Economic Development Fund are adopted on a basis consistent with generally accepted accounting principles. 12 3. DETAIL NOTES A. Cash and Investments The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the areas of investment practices, management reports and establishment of appropriate policies. Among other things, it requires the Corporation to adopt, implement, and publicize an investment policy. That policy must address the following areas: (1) safety of principal and liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum allowable stated maturity of portfolio investments, (7) maximum average dollar- weighted maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality and capabilities, and (9) bid solicitation preferences for certificates of deposit. Statutes authorize the Corporation to invest in (1) obligations of the U. S. Treasury, certain U. S. Agencies, and the State of Texas; (2) certificates of deposit, (3) certain municipal securities, (4) money market savings accounts, (5) repurchase agreements, (6) bankers' acceptances, (7) Mutual Funds, (8) Investment pools, (9) guaranteed investment contracts, and (10) common trust funds. The Act also requires the Corporation to have independent auditors perform test procedures related to investment practices as provided by the Act. The Corporation is in substantial compliance with the requirements of the Act and with local policies In compliance with the Public Funds Investment Act, the Corporation has adopted the deposit and investment policy used by the City of Kennedale. That policy does address the following risks: a. Custodial Credit Risk - Deposits: In the case of deposits, this is the risk that, in the event of a bank failure, the government's deposits may not be returned to it. As of September 30, 2014, all of the Corporation's deposits were in the TexPool accounts held by the City of Kennedale. b. Credit Risk; It is the Corporation's policy to limit investments to investment types with an investment quality rating no lower than AAA or AAA -m or an equivalent rating by at least one nationally recognized rating service or no lower than investment grade by at least one nationally recognized rating service with a weighted average maturity no greater than 90 days. The Corporation's investments were rated AAAm by Standard and Poor's Investors Services. c. Interest Rate Risk: In accordance with the Corporation's investment policy, the Corporation manages its exposure to declines in fair values by limiting the weighted average maturity of its investment portfolio to 90 days or less, dependent on market conditions. d. Concentration of Credit Risk: The Corporation's investment policy states the maximum percentage allowed for each different investment instrument that can be used to make up the portfolio. 13 At September 30, 2014, the carrying amounts of the Corporation's investments were as follows: Balances in public funds investment pools: State Treasurer's Investment Pool (TexPool) 336,568 $ 336,568 Balances in public funds investment pools noted above are not evidenced by underlying securities that exist in physical or book entry form and, therefore, are not subject to credit risk categorization. B. Risk Management The City of Kennedale, Texas, carries its general insurance risks with a public entity risk pool by transferring all risks to the insurance carrier except for small deductible amounts. C. Employee Plans The Corporation has no employees. The personnel duties for the Corporation are performed by employees of the City of Kennedale, and the Corporation is charged for expenses related to these duties. For complete "Employee Plan" disclosures, reference is made to the basic financial statements of the City of Kennedale, Texas. 14 D. Capital Assets Capital asset activity for the year ended September 30, 2014, was as follows: Primary Government Less accumulated depreciation: Buildings Improvements Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net E. Lontr -term Debt 468,922 234,007 - 702,929 126,031 50,885 - 176,916 594,953 284,892 - 879,845_ 2,229,089 2,588,898 4,817,987 $ 6,930,383 $ 2,680,646 $ 3,280,548 $ 6,330,481 During fiscal year 2011, a loan was issued for $1,700,000 for the purpose of financing new projects in addition to the revenue bonds issued fiscal year 2007 of $1,200,000 also for the purpose of financing new projects. Revenue bonds and loans outstanding at year end are as follows: Beginning Ending Ending Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: $ 990,000 $ - $ 45,000 $ 945,000 $ 50,000 Land $ 1,703,328 $ 44,283 $ 406,758 $ 1,340,853 Construction in progress 2,997,966 47,465 2,873,790 171,641 Total capital assets not being depreciated 4,701,294 91,748 3,280,548 1,512,494 Capital assets, being depreciated: Buildings 1,937,215 2,742,924 - 4,680,139 Improvements 886,827 130,866 - 1,017,693 Total capital assets being depreciated 2,824,042 2,873,790 - 5,697,832 Less accumulated depreciation: Buildings Improvements Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net E. Lontr -term Debt 468,922 234,007 - 702,929 126,031 50,885 - 176,916 594,953 284,892 - 879,845_ 2,229,089 2,588,898 4,817,987 $ 6,930,383 $ 2,680,646 $ 3,280,548 $ 6,330,481 During fiscal year 2011, a loan was issued for $1,700,000 for the purpose of financing new projects in addition to the revenue bonds issued fiscal year 2007 of $1,200,000 also for the purpose of financing new projects. Revenue bonds and loans outstanding at year end are as follows: 15 Beginning Ending Due Within Balance Additions Reductions Balance One Year Government activities Revenue bonds $ 990,000 $ - $ 45,000 $ 945,000 $ 50,000 Texas leverage fund loan 576,697 - 35,960 540,737 37,147 Governmental activity Long -term liabilities $ 1,566,697 $ - $ 80,960 $ 1,485,737 $ 87,147 15 Annual debt service requirements to maturity for the revenue bonds are as follows: Year Ending Governmental Activities September 30 Principal Interest 2015 $ 87,147 $ 82,701 2016 88,373 78,001 2017 94,638 73,260 2018 100,946 68,130 2019 102,297 62,609 2020 -2024 608,357 221,673 2025 -2029 403,979 45,925 Total $ 1,485,737 $ 632,299 F. Prior Period Adjustment - Change in Accounting Principle As a result of implementing GASB Statement 65, the Corporation has decreased beginning net position as of September 1, 2013 by $22,637 for the governmental activities. This decrease results from no longer deferring and amortizing bond issuance costs. 16 Date: March 12, 2015 Agenda Item No: STAFF ANNOUNCEMENTS /REPORTS - A. I. Subject: Link Street, Burger King, Popeye's Ribbon Cutting B. TIP Sidewalk Project C. Village Creek Studies D. Chamber Update 11. Originated by: Bob Hart III. Summary: The Director will provide an update on these items. IV. Recommendation: V. Alternative Actions: VI. Attachments: Date: March 12, 2015 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. Town Center Development 2. 733 Kennedale Parkway Business Incentives 3. 5414 Highridge Road 4. Industrial Prospect for Bloxom Park 5. 1298 Kennedale Parkway Business Incentives 11. Originated by: Bob Hart III. Summary: These items will be discussed during the Executive Session. IV. Recommendation: V. Alternative Actions: VI. Attachments: KENNEDALE You're Here,Your Home The following pages contain documents that were submitted or presented during the meeting. JAN 2015 ECONOMIC DEVELOPMENT CORPORATION FINANCIALS Budget/Amendment No changes. Year -To -Date • Ad Valorem Tax: Increase in comparison over this time last year. Based on tax receipts received from assessments. • Sales/Beverage Tax: Increase in comparison over this time last year (see Monthly Graph, 3- Year Historical Graph, 10 -Year Historical Graph). Please note, sales tax receipts run two months in arrears. • Investment Earnings: Increase in comparison over this time last year. Based on record low earning rates and decrease in cash balance. • Miscellaneous Income: Increase in comparison over this time last year. • Surplus Sales /Rentals: Decrease in comparison over this time last year. Approximately $8400 a month lost due to Surplus Warehouse closure beginning Feb 2014. • Transfers: No significant change over this time last year. • Personnel: No significant change over this time last year. • Supplies: No significant change over this time last year. • Maintenance: Increase in comparison over this time last year. Due in part to landscaping materials. • Sundry: Increase in comparison over this time last year. Additional $2,000 per month Chamber Management Fee (on top of $3,500 Orasi consulting service fee, $550 website maintenance /hosting fee). • Debt: Increase in comparison over this time last year. Based on amortization schedules. • Transfers: Decrease in comparison over this time last year. • Capital: Increase in comparison over this time last year. Payment of taxes on prior land purchases. Estimate For FY13 /14, the final audited ending fund balance is $376,090 which is comprised of $226,739 operations / $29,429 capital bond project / $119,922 reserve bond. For FY14 /15, the combined anticipated ending fund balance is $493,842 which is comprised of $369,455 operations / $4,449 capital bond project / $119,938 reserve bond. CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES INCOME STATEMENT IS: EDC4BFUND "EXEMPLIFYING EXCELLENCE" FY13 -14 FY13 -14 FY13 -14 FY13 -14 FY14 -15 FY14 -15 FY14.15 FY14.15 CY -PY INCOME STATEMENT BUDGET AMENDED YTD JAN ACTUAL PROPOSED AMENDED YTD JAN ESTIMATE CHANGE OPERATING REVENUES 1,103,880 1,103,880 86,430 1,536,006 901,665 901,665 139,573 901,047 (202,215) OPERATING EXPENDITURES (612,657) (612,657) (93,212) (599,078) (595,193) (595,193) (118,993) (604,848) 17,464 OPERATING INCOME /(LOSS) 491,223 491,223 (6,782) 936,927 306,472 306,472 20,580 296,199 (184,751) NONOPERATING REVENUES /(EXPENSES) INTEREST EARNINGS 645 645 3 12 4 4 13 35 (641) TRANSFERS IN - - - - - - - - - (TRANSFER OUT) (155,118) (155,118) (37,559) (155,119) (153,519) (153,519) (36,759) (153,519) 1,599 NET OPERATING INCOME /(LOSS) 336,750 336,750 (44,339) 781,820 152,958 152,958 (16,166) 142,716 (183,792) BEGINNING FUND BALANCE $ (306,400) $ (555,081) $ (555,081) $ (555,081) $ 223,526 $ 226,739 $ 226,739 $ 226,739 778,607 ENDING FUND BALANCE (EXCLUDING OTHER FUNDS) $ 30,350 $ (218,331) $ (599,420) $ 226,739 $ 376,484 $ 379,697 $ 210,573 $ 369,455 594,815 95:EDC4B RESERVE FUND $ 119,966 $ 119,955 $ 119,906 $ 119,922 $ 119,935 $ 119,938 $ 119,929 $ 119,938 (20) 19: EDC48 CAPITAL BOND FUND $ 13,357 $ 4,411 $ 29,422 $ 29,429 $ 4,451 $ 4,449 $ 29,431 $ 4,449 40 ENDING FUND BALANCE (INCLUDING OTHER FUNDS) $ 163,673 $ (93,965) $ (450,092) $ 376,090 $ 500,870 $ 504,084 $ 359,933 $ 493,842 $ 594,834 "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES FUND SUMMARY BY CATEGORY 15: EDC4B FUND REVENUES OVER EXPENDITURES $ 336,750 $ 336,750 $ (44,339) $ 781,820 $ 152,958 $ 152,958 $ (16,166) $ 142,716 ENDING FUND BALANCE $ 30,350 $ (218,331) $ (599,420) $ 226,739 $ 376,484 $ 379,697 $ 210,573 $ 369,455 ADJUSTMENTS FUND BALANCE AS %OF EXP 4.0% -28.47. - 458.4% 30.1% 50.37o 50.77. 135.2% 48.7% RESERVE (NO REQUIREMENT) $ - $ - $ - $ - $ - $ - $ - $ - RESERVE SURPLUS /(SHORTFALL) $ 30,350 $ (218,331) $ (599,420) $ 226,739 $ 376,484 $ 379,697 $ 210,573 $ 369,455 "EXEMPLIFYING EXCELLENCE" FY13.14 FYI 3-14 FY13 -14 FY13.14 FY14.15 FYI 4-15 FY14 -15 FY14 -15 CY - PY FY13 -14 FY14.15 CATEGORY BUDGET AMENDED YTD JAN ACTUAL PROPOSED AMENDED YTD JAN ESTIMATE CHANGE YTD % YTD BEGINNING FUND BALANCE $ (306,400) $ (555,081) $ (555,081) $ (555,081) $ 223,526 $ 226,739 $ 226,739 $ 226,739 $ 323,848 AD VALOREM TAXES 23,132 23,132 5,478 52,329 48,062 48,062 35,322 48,062 24,930 23.7% 73.5% SALES /BEVERAGE TAXES 305,808 305,808 31,943 325,630 334,791 334,791 52,506 334,173 28,983 10.4% 15.7% INVESTMENT EARNINGS 645 645 3 12 4 4 13 35 (641) 0.4% 319.07. MISCELLANEOUS INCOME 600,000 600,000 15,960 1,008,096 384,120 384,120 22,750 384,120 (215,880) 2.7% 5.9% SURPLUS SALES /RENTALS 174,940 174,940 33,049 149,950 134,692 134,692 28,996 134,692 (40,248) 18.9% 21.5% TRANSFERS $ - $ - $ - $ - $ - $ - $ - $ - $ - 0.0% 0.0% TOTAL REVENUES $ 1,104,525 $ 1,104,525 $ 86,433 $ 1,536,017 $ 901,669 $ 901,669 $ 139,586 $ 901,082 5 (202,856) 7.8% 15.57o PERSONNEL - - - - - - - - 0.0% 0.07. SUPPLIES 3,100 3,100 - - 3,100 3,100 - 3,100 0.0% 0.0% MAINTENANCE 30,240 30,240 3,773 26,036 23,592 23,592 8,899 23,592 (6,648) 12.57. 37.7% SUNDRY 213,130 317,742 34,127 345,865 201,629 201,629 48,196 204,744 (116,113) 10.7% 23.9% DEBT 186,187 178,475 52,421 167,937 186,872 186,872 55,358 186,872 8,397 29.4% 29.6 TRANSFERS 155,118 155,118 37,559 155,119 153,519 153,519 36,759 153,519 (1,599) 24.27. 23.9% CAPITAL 180,000 83,100 2,891 59,239 180,000 180,000 6,540 186,540 96,900 3.5% 3.6% TOTAL EXPENDITURES $ 767,775 $ 767,775 $ 130,771 $ 754,197 $ 748,712 $ 748,712 $ 155,752 $ 758,367 $ (19,063) 17.0% 20.8% REVENUES OVER EXPENDITURES $ 336,750 $ 336,750 $ (44,339) $ 781,820 $ 152,958 $ 152,958 $ (16,166) $ 142,716 ENDING FUND BALANCE $ 30,350 $ (218,331) $ (599,420) $ 226,739 $ 376,484 $ 379,697 $ 210,573 $ 369,455 ADJUSTMENTS FUND BALANCE AS %OF EXP 4.0% -28.47. - 458.4% 30.1% 50.37o 50.77. 135.2% 48.7% RESERVE (NO REQUIREMENT) $ - $ - $ - $ - $ - $ - $ - $ - RESERVE SURPLUS /(SHORTFALL) $ 30,350 $ (218,331) $ (599,420) $ 226,739 $ 376,484 $ 379,697 $ 210,573 $ 369,455 "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES REVENUE LINE ITEM SUMMARY 15: EDC4B FUND ACCOUNT ACCOUNTNAME FY13.14 BUDGET FY13.14 AMENDED FY13.14 YTD JAN FY13.14 ACTUAL FY14 -15 PROPOSED FY14.15 AMENDED FY14 -15 YTD JAN FY14 -15 ESTIMATE CY - PY CHANGE FY13.14 YID% FY14 -15 YTD% 4001 -00-W PROPERTY TAX - CURRENT YEAR - - - - - - - - - 0.07. 0.0% 40020000 MMDTAX- CURRENT YEAR 23,132 23,132 5,478 52,329 48.062 48,062 35,322 48.062 24,930 23.7% 73.57. 319.07. AD VALOREM TAXES $ 23,132 $ 23,132 $ 5,478 $ 52,329 $ 48,062 $ 48,062 $ 35,322 $ 48,062 $ 24,930 23.77. 73.57. 4081 -00-00 SALES TAX 305,808 305.808 31,943 325,630 334,791 334,791 52506 334,173 28,983 10.4% 15.7% 4082 -00-00 MIXED BEVERAGE TAX 8,500 81500 49 4,859 8,500 8,500 - - 0.07. 0.0% SALES /BEVERAGE TAXES $ 305,808 $ 305,808 $ 31,943 $ 325,630 $ 334,791 $ 334,791 $ 52,506 $ 334,173 $ 28,983 10.4% 15.7% 4401 -00-00 INVESTMENT INCOME 645 645 3 12 4 4 13 35 (641) 0.4% 319.07. INVESTMENT EARNINGS $ 645 $ 645 $ 3 $ 12 $ 4 $ 4 $ 13 $ 35 $ (641) 0.4% 319.0% 4409 -00-00 MISCELLANEOUS INCOME 600,000 600,000 4,018 989,468 384.120 384,120 22,750 384.120 (215,880) 0.7% 5.9% 4411 -00-00 TEXAS LEVERAGE FUND PROGRAM - - - - - - - - - 0.0% 0.0 4415 -00-00 INSURANCE REIMBURSEMENTS 11,943 18,628 - - #DIV /01 0.07. MISCELLANEOUS INCOME $ 600,000 $ 600,000 $ 15,960 $1,008,096 $ 384,120 $ 384,120 $ 22,750 $ 384,120 $ (215,880) 2.7% 5.9% 4805 -00-00 RENTAL FEES - SHOPPING CENTER 166,440 166,440 33,000 145,091 126,192 126,192 28,922 126,192 (40,248) 19.8% 22.97. 4806 -00-00 RENTAL INSURANCE 8,500 81500 49 4,859 8,500 8,500 73 8,500 - 0.6% 0.97. SURPLUS SALES /RENTALS $ 174,940 $ 174,940 $ 33,049 $ 149,950 $ 134,692 $ 134,692 $ 28,996 $ 134,692 $ (40,248) 18.97. 21.5% 4902-00-00 PROCEEDS -DEBT /LOAN /LEASE - - - 0.0 0.0% TRANSFERS $ - $ - $ - $ - $ • $ • $ - $ - $ 0.07. 0.0% TOTAL REVENUES $1,104,525 $1,104,525 $ 86,433 $1,536,017 $ 901,669 $ 901,669 $139,586 $ 901,082 $ (202,856) 7.87. 15.5% TOTAL REVENUES (EXCLUDING INTEREST/TRANSFERS) $1,103,880 $1,103,880 $ 74,487 $1,517,378 $ 901,665 $ 901,665 $139,573 $ 901,047 $ (202,215) 107. 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V1 LT N 411 L1 1 1 N to V1 V1 L1 1/1 to N N L1 Vi iA 4A iR LV 'A L1 L1 1 • L1 N l0 W m V W O N m w O w w W A H A H m V O w W N w O �. o O V V o w H O V 00 J A W W m Vl w 00 O A r I-+ w N m W N A O w l0 O Ol m J m J L1 N N L1 iA L> t/1 LT L11A LF L• V1 Vf LT L1 i/1 1/1 L1 N N L• N V1 L1111 Lf V• Lf H m V N O N m 61 V W N 00 m w O W W W V A N N V m , ' ' ' 00 ' ' 1 O O 00 lD In t0 A O 00 00 i J A w w V V O w J O w A H N m W w 0 O V A O m m J m J V) V1 N N L) iR i/1 L1 in AA N iA N N to N V1 V< N V1 4A N h to to N N VF N LU p N V 00 N VI O A p ` DD ` l H l1 m V 0 O (D H m A m 0 m A A O 00 N N W N V w A m 00 O N O 00 m O H w A O 00 H r m N lD A w A O DJ N A N W H w m to O of J V ' 0 H ao o w o w iD a (n O A w N O W O w W O V O 0 N w 00 { i N O � N W 1 O j A ' CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY 15: EDC46 FUND 01: ADMINISTRATION FY13 -14 FY13.14 FY13 -14 FY13 -14 FY14 -15 FY14 -15 FY14 -15 FY14.15 CY -PY FY13.14 FY14.15 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD JAN ACTUAL PROPOSED AMENDED YTD JAN ESTIMATE CHANGE YTD % YTD % 5101 -01 -00 SALARIES 0.07. 0.07. 5107 -01-00 OVERTIME - - - - - - - - - 0.07. 0.0% 5111 -01-00 AUTO ALLOWANCE 0.0% 0.0 1 / 5114 -01-00 LONGEVITY 0.0 0.0 1 / 5115 -01-00 RETIREMENT - - - - - - - - - 0.07 0.0 1 / 5116 -01 -00 UNEMPLOYMENT INSURANCE 0.07. 0.07. 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 1 y 5122 -01-00 VISION INSURANCE 0.0 1 y O.W. 5190-01 -00 VACATION /SICK/TERM/LEAVE ADJ - - - - - - 0.0 0.07. PERSONNEL $ - $ - $ - $ $ - $ - $ $ - $ - 0.0% 0.0% 5220-01 -00 UNIFORMS - - - - - 0.0% 0.0% 5240-01 -00 PRINTED SUPPLIES 3,000 3,000 3,000 3,000 3,000 0.0 1 y 0.0 1 y 5260-01 -00 GENERAL OFFICE SUPPLIES 50 50 - - 50 50 - 50 - 0.0 0.0 1 y 5261 -01 -00 POSTAGE 50 50 50 50 50 0.0 1 y 0.07. 5280-01 -00 MINOR EQUIP /SMALLTOOLS<$5K - - - - - 0.0 0.07. 5290-01 -00 EXPENDABLE SUPPLIES - - - - 0.0% 0.0% SUPPLIES $ 3,100 $ 3,100 $ - $ - $ 3,100 $ 3,100 $ - $ 3,100 $ 0.0% 0.0% 5403-01 -00 BUILDING MAINTENANCE - - - - - - 285 - - 0.0% #DIV /01 5440-01 -00 OFFICE EQUIP /SOFTWARE MAINT 0.0 1 y 0.0% MAINTENANCE $ - $ - $ - $ $ - $ - $ 285 $ - $ - 0.0% #DIV /01 5501 -01 -00 ADVERTISING 3,616 1,200 1,200 - 1,200 1,200 0.0 1 y 0.0 5510-01 -00 ASSOC DUES /PUBLICATIONS 3,150 3,150 3,614 4,020 4,020 905 4,020 870 0.0% 22.57. 5512 -01 -00 CONTRACTUAL SERVICES - - - - - - - - - 0.07. 0.07. 5525 -01-00 TRAINING /SEMINARS 1,000 1,000 - 250 250 250 (750) 0.07. 0.0% 5565-01 -00 LEGALSERVICES 5,000 5,000 250 1,000 1,000 1,000 (4,000) 0.0% 0.0 1 y 5567 -01-00 AUDITSERVICES 2,000 2,000 2,000 2,000 2,000 2,000 2,000 100.0% 0.0 5569 -01 -00 IT SUPPORT - - - - - - - 0.0 0.0 1 / 5570-01 -00 SPECIAL SERVICES 51,600 51,600 12,150 56,485 72,600 72,600 24,200 72,600 21,000 23.5% 33.3% 5575-01-00 EQUIPMENT RENTAL - - - - - - - - - 0.0 1 y 0.0 1 y 5578-01 -00 TRAVEL 700 700 - 100 100 - 100 (600) 0.0% 0.0 1 y 5580-01 -00 ENGINEERING SERVICES 10,000 10,000 12,855 1,000 1,000 4,115 4,115 (9,000) 0.0% 411.5% 5585-01 -00 TELEPHONE SERVICES - - - - - - - - 0.0% 0.07 5595-01 -00 ADMIN CHARGE-GENERAL FUND 110,386 215,000 213,607 90,167 90,167 6,859 90,167 (124,833) 0.0% 7b% SUNDRY $ 183,838 $ 288,450 $ 14,150 $ 292,428 $ 172,337 $ 172,337 $ 36,079 $ 175,452 $ (116,113) 4.9% 20.9% 5610-01 -00 VISUAL GRANT - - - - - - - 0.0% 0.0% 5615-01 -00 FUNCTIONAL GRANT 0.0 1 y OA% 5625-01 -00 ISSUANCE COST 0.07. 0.0% DEBT $ $ $ $ $ $ $ $ $ 0.0% 0.0% 5701 -01-00 TRANSFER OUT- GENERAL FUND - - - - - - - - - 0.0 1 / 0.0 5714 -01-00 TRANSFER OUT- DEDICATION FUND - - - - - - - - - 0.0 1 y 0.0 1 / 5795-01 -00 TRANSFER OUT -EDC RESERVE FUND - - - - - - - - 0.07. 0.0% TRANSFERS $ $ S $ $ S S $ $ 0.0% 0.0% 5806-01 -00 LAND 48,100 2,891 47,182 6,540 6,540 (48,100) 6.0% #DIV /01 5813-01 -00 KENNEDALE ENTRANCE SIGN - - - - - - - - - 0.0% 0.0 5820-01 -00 BUILDING IMPROVEMENT - - - - - - - - - 0.0% 0.07. 5875 -01 -00 CONSTRUCTION - - - - - - - 0.0% 0.09 CAPITAL $ $ 48,100 $ 2,891 $ 47,182 $ $ $ 6,540 $ 6,540 $ (48,100) 6.0% #DIV /01 TOTAL EXPENDITURES $ 186,938 $ 339,650 $ 17,041 $ 339,610 $ 175,437 $ 175,437 $ 42,905 $ 185,092 $ (164,213) 48.7% 5.0% "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE REM SUMMARY 15:EDC48FUND 01: ADMINISTRATION 03: DEBT SERVICE "EXEMPLIFYING EXCELLENCE" FY13.14 FY13.14 FY13 -14 FY13.14 FY14 -15 FY14 -15 FY14 -15 FY14.15 CY- PY FY13 -14 FY14 -15 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD JAN ACTUAL PROPOSED AMENDED YTD JAN ESTIMATE CHANGE 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 68,806 68,806 34,364 68,766 65,678 65,678 32,787 65,678 (3,129) 49.9% 49.9% 5644 -01 -03 2007 $1.2M TAX BOND- PRINCIPAL 45,000 45,000 - 45,000 50,000 50,000 - 50,000 5,000 0.0 1 y 0.0 5645 -01 -03 2011$1.7MTXLEVERAGE -IM 18,210 18,210 6,208 18,218 17,024 17,024 7,240 17,024 (1,186) 34.1% 42.5% 5646-01 -03 2011 $1,7M TX LEVERAGE-PRI 54,171 46,459 11,849 35,953 54,171 54,171 15,332 54,171 7,712 25.57. 28.3% DEBT $ 186,187 $ 178,475 $ 52,421 $ 167,937 $ 186,872 $ 186,872 $ 55,358 $ 186,872 $ 8,397 29.4% 29.6% 0.0% 0.0% 5702 -01 -03 TRANSFER OUT -DEBT SERVICE FUND 155,118 155,118 37,559 155,119 153,519 153,519 36,759 153,519 (1,599) 24.2% 23.9% TRANSFER $ 155,118 $ 155,118 $ 37,559 $ 155,119 $ 153,519 $ 153,519 5 36,759 $ 153,519 $ (1,599) 24.2% 23.9% TOTAL EXPENDITURES $ 341,305 $ 333,593 $ 89,980 $ 323,056 $ 340,391 $ 340,391 $ 92,117 $ 340,391 $ 6,798 27.0% 27.1% "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY 15: EDC4B FUND 02: TOWN SHOPPING CENTER FY13 -14 FY13.14 FY13 -14 FY13 -14 FY14.IS FY14.15 FY14 -15 FY14.15 CY - PY FY13.14 FY14 -15 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD JAN ACTUAL PROPOSED AMENDED YTD JAN ESTIMATE CHANGE YTD % YTD % 5280-02 MINOR EQUIP /SMALLTOOLS <$5K - - - - - - - 0.0% 0.07 SUPPLIES $ - $ - $ - $ - $ - $ - $ $ - $ - 0.0% 0.0% 5403-02-00 BUILDING MAINTENANCE 30,240 30,240 3,773 26,036 23,592 23,592 8,614 23,592 (6,648( 12.57. 36.5% MAINTENANCE $ 30,240 $ 30,240 $ 3,773 $ 26,036 $ 23,592 $ 23,592 $ 8,614 $ 23,592 $ (6,648) 12.5% 36.5% 5501 -02-00 ADVERTISING 0.0 1 y 0.0 5510 -02-00 ASSOC DUES /PUBLICATIONS 0.0% 0.0 1 y 5512 -02 -00 CONTRACTUAL SERVICES - - - - - - - - - 0.0 0.07. 5530 -02-00 ELECTRIC SERVICES 5 5,000 663 4,439 5,000 5,000 11005 5,000 13.3% 20.1% 5545 -02-00 INSURANCE - PROPERTY 8,500 8,500 10,075 10,075 8,500 8,500 6,347 8,500 118.5% 74.7% 5565 -02-00 LEGALSERVICES - - - - - - - - - 0.0 1 / 0.0% 5570 -02-00 SPECIAL SERVICES 15,792 15,792 3,623 16,371 15,792 15,792 4,764 15,792 22.9% 30.2% SUNDRY $ 29,292 $ 29,292 $ 14,361 $ 30,885 $ 29,292 $ 29,292 $ 12,117 $ 29,292 $ - 49.0% 41.4% TOTAL EXPENDITURES $ 59,532 $ 59,532 $ 18,134 $ 56,922 $ 52,884 $ 52,884 $ 20,730 $ 52,884 $ (6,648) 30.5% 39.2% "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY 15: EDC4B FUND 03: TOWN CENTER REDEVELOPMENT "EXEMPLIFYING EXCELLENCE" FY13.14 FY13.14 FY13 -14 FY13.14 FY14 -15 FY14.15 FY14 -15 FY14 -15 CY- PY FY13.14 FY14.15 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD JAN ACTUAL PROPOSED AMENDED YID JAN ESTIMATE CHANGE YTD % YTD % 5570 -03-00 SPECIALSERVICES - - - - - - - - - 0.0 1 / 0.07 5579-0300 ARCHITECT /DESIGN SERVICES - - - - - - - - - 0.07. 0.0 1 y 5580 -03-00 ENGINEERING SERVICES 0.07. 0.07 SUNDRY $ $ $ $ $ S $ $ $ 0.07. 0.0% 5800 -0300 LAND 0.095 0.0 1 y 5847 -0300 CONSTRUCTION 30.000 30,000 30,000 30.000 30,000 0.0 0.0 1 y CAPITAL $ 30,000 $ $ $ $ 30,000 $ 30,000 $ $ 30,000 $ 30,000 0.0% 0.0% $ 30,000 $ $ $ $ 30,000 $ 30,000 $ $ 30,000 $ 30,000 0.0% 0.0% "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY 15: EDC4B FUND 04: TEXAS LEVERAGE PROGRAM FY13.14 FY13.14 FY13.14 FY13.14 FY14.15 FY14.15 FY14.15 FY14.15 CY- PY FY13.14 FY14.15 ACCOUNT ACCOUNTNAME BUDGET AMENDED YTD JAN ACTUAL PROPOSED AMENDED YTD JAN ESTIMATE CHANGE YTD% YTD% 5580 -04-00 ENGINEERING SERVICES 5,616 22,552 - - - #DIV /01 401.6 SUNDRY $ - $ - $ 5,616 $ 22,552 $ - $ - $ - $ - $ - 0.0% 0.0% 5615-04-00 FUNCTIONALGRANT - - - - - - - - - 0.0% 0.0% 5620-04-00 ISSUANCE COSTS 0.0% 0.0% DEBT $ - $ $ - $ $ $ $ - $ - $ - 0.07. 0.0% 5800-04 -00 LAND 150,000 35,000 - 12,057 150,000 150,000 - 150,000 115,000 #DIV /01 142.8% 5847 -04-00 CONSTRUCTION 0.07. 0.0 CAPITAL $ 150,000 $ 35,000 $ - $ 12,057 $ 150,000 $ 150,000 $ $ 150,000 $ 115,000 100.77. 142.8% $ 150,000 $ 35,000 $ 5,616 $ 34,609 $ 150,000 $ 150,000 $ $ 150,000 $ 115,000 111.9% 156.6% "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES FUND SUMMARY BY CATEGORY 19: EDC4B CAPITAL BOND FUND RESERVE (NO REQUIREMENT) $ - $ - $ - $ - $ - $ - $ - $ RESERVE SURPLUS /(SHORTFALL) $ 13,357 $ 4,411 $ 29,422 $ 29,429 $ 4,451 $ 4,449 $ 29,431 $ 4,449 "EXEMPLIFYING EXCELLENCE' FY13 -14 FY13.14 FY13 -14 FY13 -14 FY14 -15 FY14 -15 FY14 -15 FY14 -15 CY - PY FY13 -14 FY14 -15 CATEGORY BUDGET AMENDED YTD JAN ACTUAL PROPOSED AMENDED YTD JAN ESTIMATE CHANGE YTD % YTD % BEGINNING FUND BALANCE $ 38,357 $ 29,411 $ 29,411 $ 29,411 $ 29,431 $ 29,429 $ 29,429 $ 29,429 INVESTMENT EARNINGS - - 10 18 20 20 2 20 20 #DIV /01 11.6% TRANSFERS - - - - - - - 0.0% 0,0% TOTAL REVENUES $ $ $ 10 $ 18 $ 20 $ 20 $ 2 $ 20 $ 20 #DIV /01 11.6% MAINTENANCE - - - - - - - 0.0% 0.0% SUNDRY - - - 0.0% 0.0% CAPITAL 25,000 25,000 25,000 25,000 25,000 0.0% 0.0 %, TOTAL EXPENDITURES $ 25,000 $ 25,000 $ $ - $ 25,000 $ 25,000 $ $ 25,000 $ 0.0% 0.0% REVENUES OVER EXPENDITURES $ (25,000) $ (25,000) $ 10 $ 18 $ (24,980) $ (24,980) $ 2 $ (24,980) ENDING FUND BALANCE $ 13,357 $ 4,411 $ 29,422 $ 29,429 $ 4,451 $ 4,449 $ 29,431 $ 4,449 ADJUSTMENTS FUND BALANCE AS % EXP 53.4% 17.6% N/A N/A 17.8% 17.8% N/A 17.8% RESERVE (NO REQUIREMENT) $ - $ - $ - $ - $ - $ - $ - $ RESERVE SURPLUS /(SHORTFALL) $ 13,357 $ 4,411 $ 29,422 $ 29,429 $ 4,451 $ 4,449 $ 29,431 $ 4,449 "EXEMPLIFYING EXCELLENCE' CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES REVENUE /EXPENDITURE LINE REM SUMMARY 19: EDC4B CAPITAL BOND FUND ACCOUNT ACCOUNT NAME FY13 -14 BUDGET FY13 -14 AMENDED FY13 -14 YTD JAN FY13 -14 ACTUAL FY14.15 PROPOSED FY14 -15 AMENDED FY14.15 YTD JAN FY14 -15 ESTIMATE CY- PY FY13.14 CHANGE YTD % FY14 -15 YTD % 4401-00 -00 INVESTMENT INCOME FY14.15 ACCOUNT ACCOUNT NAME 10 18 20 20 2 20 20 #DIV /01 11.6% INVESTMENT EARNINGS $ - $ - $ 10 $ 18 $ 20 $ 20 $ 2 $ 20 $ 20 #DIV /01 11.6% 4913-00-00 TRANSFER IN- CAPITAL BOND FUND - 0.0% MAINTENANCE $ - - 0.0 0.09 TRANSFERS $ - $ - $ - $ • $ - $ • $ - $ - $ - 0.0% 0.0% TOTAL REVENUES $ - $ - $ 10 $ 18 $ 20 $ 20 $ 2 $ 20 $ (250) #DIV /01 11.6% 19: EDC46 CAPITAL BOND FUND 01: TOWN CENTER REDEVELOPMENT "EXEMPLIFYING EXCELLENCE" FY13 -14 FY13 -14 FY13 -14 FY13.14 FY14.15 FY14.15 FY14 -15 FY14.15 CY - PY FY13 -14 FY14.15 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD JAN ACTUAL PROPOSED AMENDED YTD JAN ESTIMATE CHANGE 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 0.07 0.0% 5579 -01-00 ARCHITECT /DESIGN SERVICES - - - - - - - - - 0.07. 0.0% 5580 -01-00 ENGINEERING SERVICES 0.07. 0.0% SUNDRY $ - $ - $ $ - $ $ - $ $ - $ - 0.0% 0.0% 5800-01-00 LAND 0.0% 0.0 1 y 5847 -01-00 CONSTRUCTION 25,000 25,000 25,000 25,000 25,0D 0.07 0.07. CAPITAL $ 25,000 $ 25,000 $ - $ - $ 25,000 $ 25,000 $ - $ 25,000 $ - 0.0% 0.0% TOTAL EXPENDITURES $ 25,000 $ 25,000 $ - $ - $ 25,000 $ 25,000 $ - $ 25,000 $ - 0.0% 0.0% "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES FUND SUMMARY BY CATEGORY 95: EDC413 RESERVE FUND FY13 -14 FY13 -14 FY13 -14 FY13 -14 FY14 -15 FY14.15 FY14 -15 FY14 -15 CY - PY FY13 -14 FY14 -15 CATEGORY BUDGET AMENDED YTD JAN ACTUAL PROPOSED AMENDED YTD JAN ESTIMATE CHANGE YTD % YTD % BEGINNING FUND BALANCE $ 119,914 $ 119,903 $ 119,903 $ 119,903 $ 119,919 $ 119,922 $ 119,922 $ 119,922 INVESTMENT EARNINGS 52 52 3 19 16 16 7 16 (36) 5.6% 41.9% TRANSFERS - - - - - - - - - 0.0% 0.07. TOTAL REVENUES $ 52 $ 52 $ 3 $ 19 $ 16 $ 16 $ 7 $ 16 $ (36) 5.6% 41.9% TRANSFERS - 0.0% 0.0% TOTAL EXPENDITURES $ $ $ $ $ $ $ $ $ 0.0% 0.0% REVENUES OVER EXPENDITURES $ 52 $ 52 $ 3 $ 19 $ 16 $ 16 $ 7 $ 16 ENDING FUND BALANCE $ 119,966 $ 119,955 $ 119,906 $ 119,922 $ 119,935 $ 119,938 $ 119,929 $ 119,938 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) $ 7,360 S 7,349 S 7,300 $ 7,316 S 7,329 S 7,332 $ 7,323 $ 7,332 "EXEMPLIFYING EXCELLENCE' CITY OF KENNEDALE, TEXAS ANNUAL PROGRAM OF SERVICES REVENUE /EXPENDITURE LINE REM SUMMARY 95: EDC4B RESERVE FUND 95: EDC4B RESERVE FUND FY13 -14 FY13 -14 FY13 -14 FY13 -14 FY14 -15 FY14 -15 FY14 -15 FY14 -15 CY - PY FY13 -14 FY14 -15 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD JAN ACTUAL PROPOSED AMENDED YTD JAN ESTIMATE CHANGE YTD % YTD % 5715 -00-00 TRANSFER OUT -EDC FUND 0.0% 0.0% TRANSFERS $ $ $ $ S $ $ $ $ 0.0% 0.0% TOTAL EXPENDITURES $ $ $ $ $ $ $ $ $ 0.0% 0.0% D "EXEMPLIFYING EXCELLENCE" FY13 -14 FY13 -14 FY13.14 FY13.14 FY14 -15 FY14.15 FY14 -15 FYI 4-15 CY - PY FY13 -14 FY14 -15 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD JAN ACTUAL PROPOSED AMENDED YTD JAN ESTIMATE CHANGE YTD % YTD % 4401 -00 -00 INVESTMENT INCOME 52 52 3 19 16 16 7 16 (36) 5.6% 41.9% INVESTMENT EARNINGS $ 52 $ 52 $ 3 $ 19 $ 16 $ 16 $ 7 $ 16 $ (36) 5.6% 41.9% 4915-00 -00 TRANSFER IN -EDC FUND - - - - - - - - - 0.05V 0.0 4920 -00-00 TRANSFER IN 0.0 0.07. OTHER AGENCY $ $ $ $ $ $ $ $ S 0.0% 0.0% TOTAL REVENUES $ 52 $ 52 $ 3 $ 19 $ 16 $ 16 $ 7 $ 16 $ (36) 5.6% 41.9% 95: EDC4B RESERVE FUND FY13 -14 FY13 -14 FY13 -14 FY13 -14 FY14 -15 FY14 -15 FY14 -15 FY14 -15 CY - PY FY13 -14 FY14 -15 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD JAN ACTUAL PROPOSED AMENDED YTD JAN ESTIMATE CHANGE YTD % YTD % 5715 -00-00 TRANSFER OUT -EDC FUND 0.0% 0.0% TRANSFERS $ $ $ $ S $ $ $ $ 0.0% 0.0% TOTAL EXPENDITURES $ $ $ $ $ $ $ $ $ 0.0% 0.0% D "EXEMPLIFYING EXCELLENCE"