2016_02.23 EDC Packet ic
KENNEDALE
Kennedale Economic
Development Corporation
www.cityofkennedale.com
ECONOMIC DEVELOPMENT CORPORATION
AGENDA
BOARD OF DIRECTORS - REGULAR MEETING
February 23, 2016
CITY COUNCIL CHAMBERS, 405 MUNICIPAL DRIVE
REGULAR SESSION - 7:00 PM
I. CALL TO ORDER
II. ROLL CALL
III. MINUTES APPROVAL
A. Consider approval of the minutes from the January 26, 2016 regular meeting
IV. REGULAR ITEMS
A. Review and accept the KEDC Financial Report for January 2016
B. Discuss and consider action for approval of Economic Development Corporation Independent
Auditor's Report for year ended September 30, 2015.
V. STAFF ANNOUNCEMENTS/REPORTS
A. Village Creek
B. TownCenter
C. Chamber Report
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. 1200 Block Bowman Springs Road
2. 6900 Block Kennedale Parkway
3. 5400 and 5404 Kennedale Road
4. 5401 High Ridge Road
5. TownCenter Building Pad 5
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 February 23, 2016, 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.
Leslie Galloway, City 816cretary
405 Municipal Drive, Kennedale, TX 76060 Telephone: 817.985.2102 Fax: 817-478-7169
ic
KENNEDALE
Kennedale Economic
Development Corporation
www.cityofkennedale.com
STAFF REPORT TO THE BOARD OF DIRECTORS
Date: February 23, 2016
Agenda Item No: MINUTES APPROVAL - A.
I. Subject:
Consider approval of the minutes from the January 26, 2016 regular meeting
II. Originated by:
III. Summary:
Minutes are prepared by the Deputy City Secretary and ready for approval.
IV. Recommendation:
Approve
V. Alternative Actions:
VI. Attachments:
1. JEconomic Development Corporation Meeting Minutes - January 26, 2016 11-26-16.pdf
_Jc
KENNEDALE
Kennedale Economic
Development www.ci yofi(enn Corporation rn ECONOMIC DEVELOPMENT CORPORATION
BOARD OF DIRECTORS - REGULAR MEETING
MINUTES
January 26, 2016
I. CALL TO ORDER
President Mundy called the meeting to order at 7:00 p.m. and introduced the new Library
Director, Amanda King.
II. ROLL CALL
Present: Michael Johnson, Rebecca Mowell, Robert Mundy, Pat Turner, Ronald Whitley, Mark
Yeary
Absent: Adrienne Kay
III. MINUTES APPROVAL
A. Consider approval of the minutes from the November 17, 2015 regular meeting
Motion To approve the November 17, 2015 regular meeting minutes. Action Approve, Moved
By Pat Turner, Seconded By Rebecca Mowell.
Motion passed Unanimously
It was noted that the Economic Development Corporation did not meet in the month of
December.
IV. REGULAR ITEMS
A. Review and accept the KEDC Financial Report for November and December 2015.
Finance Director, Krystal Crump provided a brief overview of the November and December
2015 Finance Reports for the Economic Development Corporation Board members. She noted
that sales revenue was up; less than this time last year, but better than expected. Additionally,
she stated that we have not had any major expenses so far this fiscal year.
Board members, Pat Turned questioned if Red's Roadhouse was current on their payments.
Krystal Crump stated that they are currently two months behind. Bob Hart will send a letter
reminding them of the terms of their agreement. In closing, Krystal noted that the 2015 EDC
Audit Report will be presented at the February meeting.
Motion To approve the November and December 2015 Economic Development Corporation
Financial Reports. Action Approve, Moved By Mark Yeary, Seconded By Rebecca Mowell.
Motion passed Unanimously
V. STAFF ANNOUNCEMENTS/REPORTS
A. Village Creek
B. TownCenter
C. Chamber Report
Director Bob Hart stated that he met with the Army Corp of Engineers regarding
evaluation alternatives for the Village Creek 205 Study; he expects the preliminary results by
March. Bob provided announcement hand-outs from the Kennedale Development Partners
with their latest updates for TownCenter. He added that the building permits for buildings 6 and
7 will be issued next week and construction is scheduled to start in March. There was some
discussion regarding prospective and new tenants for TownCenter; the status of the vacant
Surplus Warehouse space; and the status of the salvage yards.
Jack Thompson, Orasi Development provided an update on Chamber activities noting that
MCA sponsored their January luncheon; kicking off the new year with Keep Kennedale
Healthy. Jack added that the Chamber's January Lunch and Learn will cover accounting
principles/business taxes; the Chamber After Hours event, "Death by Chocolate" will
be February 6 at Emerald Hills; and the annual Clay Shoot is scheduled for April 1 at Alpine.
Board members questioned Thompson on what was new on the EDC's side of Jack's
responsibilities. Jack stated that he was working with Craig Hughes on TownCenter; he was
working with developers on industrial sites; and he plans to attend the ICSC Conference in
May.
VI. EXECUTIVE SESSION
President Mundy recessed into executive session at 7:27 p.m.
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. 1200 Block Bowman Springs Road
2. 6900 Block Kennedale Parkway
3. 5400 and 5404 Kennedale Road
4. 5401 High Ridge Road
5. TownCenter Building Pad 5
VII. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO
EXECUTIVE SESSION, IF NEEDED
President Mundy reconvened into open session at 8:30 p.m.
No action was necessary pursuant to the Executive Session.
The February meeting is scheduled to be held on February 23, 2016, however it may be
necessary to meet earlier on February 16, 2016. Staff will send out a confirmation on the date.
Board member Pat Turner stated that in order to obtain more community support, he would like to
take steps to reach out to the community to see what they would like in Kennedale; possibly
forming a think tank to generate interest. Director Hart stated that Council is thinking about
preparing a strategic plan for the City later this year and the City Council could incorporate this as
an element of the plan.
VIII. ADJOURNMENT
The meeting was adjourned at 8:43 p.m.
APPROVED: ATTEST:
President Robert Mundy Deputy City Secretary Kathy E. Moore
ic
KENNEDALE
Kennedale Economic
Development Corporation
www.cityofkennedale.com
STAFF REPORT TO THE BOARD OF DIRECTORS
Date: February 23, 2016
Agenda Item No: REGULAR ITEMS - A.
I. Subject:
Review and accept the KEDC Financial Report for January 2016
II. Originated by:
Finance Director, Director of Finance & IT
Bob Hart
III. Summary:
Finance Director, Krystal Crump will provide an overview of the January 2016 Kennedale Economic
Development Corporation Financial Report.
IV. Recommendation:
Approve
V. Alternative Actions:
VI. Attachments:
1. lianuary Financials 016 01 Monthly Financials. df
CITY OF KENNEDALE, TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
ECONOMIC DEVELOPMENT CORPORATION FINANCIALS SUMMARY
JANUARY 2015
Budget Amendment
No amendments.
Monthly Information
Sales Taxes are slightly exceeding budget expectations and prior year numbersto date.
No out of the ordinary expenditures during month.
Functional Grant line item-paid out property taxes for H&Oand paying out salestaxesfor H2O per
380 agreements.
Rental Fees, MMD Tax and Rental Insurance are reported on the Accrual Basis of Accounting, while
all other revenues and expenditures are reported on the Cash Basis. This procedure has been in
effect for several years, but can be changed should the Board wish.
Krystal Crump
Finance Director
ADD111ONAL I N FORM ATION
FUND 15-OPERATING FUND(ALLBILLSAND REVENUEFECBVED IN THIS FUND)
FUND 19-C RTALBOND FUND(FEMAININGC RTALMONEY)
FUND 95- PESB:?\/E FUND FOR DEBT FEW F EM ENT;
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
EDC CASH POSITION
FY14-15 FY15-16 CURRENT FY15-16
CATEGORY ACTUAL PROPOSED MONTH YTD
BEGINNING CASH BALANCE-FUND 15 $ 177,198 $ 90,295 $ 86,899 $ 90,295
BEGINNING TEXPOOL BALANCE-FUND 15 $ 19 $ 19 $ 19 $ 19
BEGINNING TEXPOOL BALANCE-FUND 19 $ 29,429 $ 29,444 $ 29,449 $ 29,444
BEGINNING CASH BALANCE-FUND 95 $ 119,922 $ 119,962 $ 119,970 $ 119,962
TOTAL REVENUES $ 650,469 $ 912,036 $ 27,668 $ 118,149
TOTAL EXPENDITURES $ 694,023 $ 711,842 $ 15,264 $ 140,460
CHANGE IN CASH DURING PERIOD $ (86,848) $ 200,166 $ 20,640 $ (3,382)
ENDING CASH BALANCE-FUND 15 $ 90,295 $ 315,449 $ 107,494 $ 86,899
ENDING TEXPOOL BALANCE-FUND 15 $ 19 $ 19 $ 19 $ 19
ENDING TEXPOOL BALANCE-FUND 19 $ 29,444 $ 4,456 $ 29,461 $ 29,449
ENDING CASH BALANCE-FUND 95 $ 119,962 $ 119,962 $ 120,004 $ 119,970
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
ALL EDC FUNDS
FY14-15 FY14-15 FY15-16 CURRENT FY15-16 CY- PY %OF BUDGET BUDGET
CATEGORY YTD ACTUAL ADOPTED MONTH YTD CHANGE USED REMAINING
BEGINNING FUND BALANCE $ 376,091 $ 376,091 $ 258,442 $ 297,821 $ 332,537
AD VALOREM TAXES 35,322 38,075 48,062 - 1,966 0 4.1% 46,096
SALES/BEVERAGE TAXES 52,506 457,222 350,000 25,451 58,627 15,209 16.8% 291,373
INVESTMENT EARNINGS 37 112 80 43 86 40 108.1% (6)
MISCELLANEOUS INCOME 22,750 57,546 384,120 2,174 9,143 - 2.4% 374,977
SURPLUS SALES/RENTALS 28,996 97,515 129,774 - 48,326 (4,918) 37.2% 81,448
TOTAL REVENUES $ 139,610 $ 650,469 $ 912,036 $ 27,668 $ 118,149 $ 10,331 13.07. $ 793,888
SUPPLIES - 4,625 3,100 - - - 0.0% 3,100
MAINTENANCE 8,899 39,375 23,592 - 1,945 8.2% 21,647
SUNDRY 55,294 204,629 210,258 10,691 48,892 (19,764) 23.3% 161,365
DEBT 55,358 169,796 166,374 4,573 53,663 (3,475) 32.3% 112,711
TRANSFERS 36,759 153,519 153,519 - 35,959 (0) 23.4% 117,559
CAPITAL 6,540 122,078 155,000 - - (887) 0.0% 155,000
TOTAL EXPENDITURES $ 162,850 $ 694,023 $ 711,842 $ 15,264 $ 140,460 $ (24,127) 19.7% $ 571,382
REVENUES OVER EXPENDITURES $ (23,240) $ (43,553) $ 200,194 $ 12,405 $ (22,312)
ENDING FUND BALANCE $ 352,850 $ 332,537 $ 458,635 $ 310,225 $ 310,225
ADJUSTMENTS
FUND BALANCE AS%OF EXP 216.7% 47.9% 64.4% 2032.4% 220.9%
RESERVE(NO REQUIREMENT) $ - $ - $ - $ - $ -
RESERVE SURPLUS/(SHORTFALL) $ 352,850 $ 332,537 $ 458,635 $ 310,225 $ 310,225
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
15:EDC4B FUND
FY14-15 FY14-15 FY15-16 CURRENT FY15-16 CY-PY % BUDGET BUDGET
INCOME STATEMENT YTD ACTUAL ADOPTED MONTH YTD CHANGE USED REMAINING
OPERATING REVENUES 139,573 650,357 911,956 27,625 118,062 10,291 -61.9% 793,894
OPERATING EXPENDITURES (126,091) (540,504) (533,324) (15,264) (104,501) 24,126 3.0% (428,823)
OPERATING INCOME/(LOSS) 13,482 109,853 378,633 12,361 13,561 34,418
NONOPERATING REVENUES/(EXPENSES)
INTEREST EARNINGS 22 57 40 17 30 36 74.8% 10
TRANSFERS IN - - - - - - 0.0% -
(TRANSFER OUT) (36,759) (153,519) (153,519) - (35,959) 0 -23.4% (117,559)
NET OPERATING INCOME/(LOSS) (23,255) (43,609) 225,154 12,378 (22,368) 34,454
BEGINNING FUND BALANCE $226,740 $226,740 $ 109,049 $148,385 $183,131
ENDING FUND BALANCE(EXCLUDING OTHER FUNDS) $203,485 $183,131 $ 334,203 $160,763 $160,763
95:EDC413 RESERVE FUND $ 119,938 $ 119,977 $ 119,977 $ 120,002 $ 120,002
19:EDC413 CAPITAL BOND FUND $ 54,449 $ 4,456 $ 4,456 $ 29,461 $ 29,461
ENDING FUND BALANCE(INCLUDING OTHER FUNDS) $377,871 $307,564 $ 458,635 $310,225 $310,225
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
15:EDC411 FUND
FY14-15 FY14-15 FY15-16 CURRENT FY15-16 CY- PY OF BUDGET BUDGET
CATEGORY YTD ACTUAL ADOPTED MONTH YTD CHANGE USED REMAINING
BEGINNING FUND BALANCE $ 226,740 $ 226,740 $ 109,049 $ 148,385 $ 183,131
AD VALOREM TAXES 35,322 38,075 48,062 - 1,966 0 4.1% 46,096
SALES/BEVERAGE TAXES 52,506 457,222 350,000 25,451 58,627 15,209 16.8% 291,373
INVESTMENT EARNINGS 22 57 40 17 30 36 74.8% 10
MISCELLANEOUS INCOME 22,750 57,546 384,120 2,174 9,143 - 2.4% 374,977
SURPLUS SALES/RENTALS 28,996 97,515 129,774 - 48,326 (4,918) 37.2% 81,448
TOTAL REVENUES $ 139,595 $ 650,414 $ 911,996 $ 27,642 $ 118,092 $ 10,327 12.9% $ 793,904
SUPPLIES - 4,625 3,100 - - - 0.0% 3,100
MAINTENANCE 8,899 39,375 23,592 - 1,945 8.2% 21,647
SUNDRY 55,294 204,629 210,258 10,691 48,892 (19,764) 23.3% 161,365
DEBT 55,358 169,796 166,374 4,573 53,663 (3,475) 32.3% 112,711
TRANSFERS 36,759 153,519 153,519 - 35,959 (0) 23.4% 117,559
CAPITAL 6,540 122,078 130,000 - - (887) 0.0% 130,000
TOTAL EXPENDITURES $ 162,850 $ 694,023 $ 686,842 $ 15,264 $ 140,460 $ (24,127) 20.57. $ 546,382
REVENUES OVER EXPENDITURES $ (23,255) $ (43,609) $ 225,154 $ 12,378 $ (22,368)
ENDING FUND BALANCE $ 203,485 $ 183,131 $ 334,203 $ 160,763 $ 160,763
ADJUSTMENTS
FUND BALANCE AS%OF EXP 125.07. 26.47. 48.7% 1053.27. 114.57.
RESERVE(NO REQUIREMENT) $ - $ - $ - $ - $ -
RESERVE SURPLUS/(SHORTFALL) $ 203,485 $ 183,131 $ 334,203 $ 160,763 $ 160,763
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
15:EDC4B FUND
FY14-15 FY14-15 FY15-16 CURRENT FY15-16 CY-PY OF BUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD CHANGE USED REMAINING
4002-00-00 MMD TAX-CURRENT YEAR 35,322 38,075 48,062 1,966 0 4.1% 46,096
AD VALOREM TAXES $ 35,322 $ 38,075 $ 48,062 $ $ 1,966 $ 0 4.1% $ 46,096
4081-00-00 SALES TAX 52,506 457,222 350,000 25,451 58,627 15,209 16.8% 291,373
SALES/BEVERAGE TAXES $ 52,506 $457,222 $ 350,000 $ 25,451 $ 58,627 $ 15,209 16.8% $ 291,373
4401-00-00 INVESTMENT INCOME 22 57 40 17 30 36 74.8% 10
INVESTMENT EARNINGS $ 22 $ 57 $ 40 $ 17 $ 30 $ 36 74.8% $ 10
4409-00-00 MISCELLANEOUS INCOME 22,750 57,546 384,120 2,174 9,143 - 2.4% 374,977
MISCELLANEOUS INCOME $ 22,750 $ 57,546 $ 384,120 $ 2,174 $ 9,143 $ 2.4% $ 374,977
4805-00-00 RENTAL FEES-SHOPPING CENTER 28,922 97,271 121,274 - 48,015 (4,918) 39.6% 73,259
4806-00-00 RENTAL INSURANCE 73 244 8,500 311 3.7% 8,189
SURPLUS SALES/RENTALS $ 28,996 $ 97,515 $ 129,774 $ $ 48,326 $ (4,918) 37.2% $ 81,448
TRANSFERS $ - $ - $ $ $ $ - 0.0% $
TOTAL REVENUES $139,595 $650,414 $ 911,996 $ 27,642 $118,092 $ 10,327 12.9% $ 793,904
TOTAL REVENUES(EXCLUDING INTEREST/TRANSFERS) $139,573 $650,357 $ 911,956 $ 27,625 $118,062 $ 10,291
10%ADMIN CHARGE-GENERAL FUND 13,957 65,036 91,196 2,763 11,806 1,029
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
15: EDC413 FUND
FY15-16
PROPOSED
4002-00-00 MMD TAX-CURRENT YEAR BASED ON FY13/14 ASSESSED VALUEOF 48,062
$2,783,693 AND TOTAL TAX RATE OF
2.880965 PER $100 (MINUS TRACT 1 R
FOR SURPLUS)
CITY OF KENNEDALE:$0.747500
KENNEDALE ISD:$1.492068
TARRANT COUNTY:$0.264000
TARRANT HOSPITAL:$0.227897
4081-00-00 SALES TAX GENERALLY BUDGET BASED ON PRIOR 350,000 350,000
3 YEARS OF HISTORY
4401-00-00 INVESTMENT INCOME EARNING BASED UPON AVERAGE 40 40
BALANCE/INTEREST RATE:
4409-00-00 MISCELLANEOUS INCOME SALE OF 1121 WEST KENNEDALE 360,000 384,120
PARKWAY
(APACHE/NACHO/FOX/WHEELER/HUN
DE PURCHASED FY09/10) - 3RD
PADSITE,4TH PADSITE REMAININC
MONTHLY FEE FROM CHAMBER FOR 24,000
SERVICES ($2000 MONTH)
MONTHLY FEE FROM CHAMBER PER 120
RENTALAGREEMENT($10 MONTH) PLUS
100 DEPOSIT
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 CHICKEN EXPRESS ($2518 MONTH, 22,662 121,274
RELOCATION JUL 2013, LEASE EXPIRES
05/31/17,GOES TO$0 UPON MOVE)
DOLLAR GENERAL ($4719 MONTH, 56,628
LEASE EXPIRES 07131117, 2%
MANAGEMENT FEE FOR AT RENEWA
BUILDING ONE VACANT ($8400 -
MONTH, LEASE EXPIRES 05/31/16, 2%
MANAGEMENT FEE FOR AT RENEWAL)
PREPAID TENANT FEES RECEIVED BUT 41,984
CORRESPONDING OFFSET OCCURS
WHEN BOOKED AGAINST CAM
EXPENSES (EXCLUDES RENTAL
INSURANCE CAM
4806-00-00 RENTAL INSURANCE RENTAL CAM COLLECTED ON LEASE 8,500 8,500
AGREEMENTS AND THEN USED TO PAY
TML INSURANCE (OFFSETTING EXPENSE
UNDER TOWN SHOPPING CENTER)
TOTAL REVENUES $ 911,996
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
15:EDC4B FUND
01:ADMINISTRATION
FY14-15 FY14-15 FY15-16 CURRENT FY15-16 CY-PY %OF BUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD CHANGE USED REMAINING
PERSONNEL $ $ - $ - $ - $ - $ - 0.0% $
5240-01-00 PRINTED SUPPLIES 4,505 3,000 0.0% 3,000
5260-01-00 GENERAL OFFICE SUPPLIES - 50 0.0% 50
5261-01-00 POSTAGE 120 50 0.0% 50
SUPPLIES $ $ 4,625 $ 3,100 $ $ $ 0.076 $ 3,100
5403-01-00 BUILDING MAINTENANCE 285 - - 0.0% -
MAINTENANCE $ 285 $ $ $ $ $ 0.07o $
5501-01-00 ADVERTISING - 359 1,200 0.0% 1,200
5510-01-00 ASSOC DUES/PUBLICATIONS 905 4,755 4,020 1,236 30.7% 2,784
5525-01-00 TRAINING/SEMINARS - - 250 - 0.0% 250
5565-01-00 LEGAL SERVICES 9,700 1,000 (8,700) 0.0% 1,000
5567-01-00 AUDIT SERVICES 2,000 2,000 0.0% 2,000
5570-01-00 SPECIAL SERVICES 24,200 82,708 72,600 6,697 25,427 (15,000) 35.0% 47,173
5578-01-00 TRAVEL - 70 100 - - 0.0% 100
5580-01-00 ENGINEERING SERVICES 4,115 17,038 1,000 - - (10,000) 0.0% 1,000
5595-01-00 ADMIN CHARGE-GENERAL FUND 13,957 60,557 91,196 2,763 10,780 6,336 11.8% 80,416
SUNDRY $ 43,177 $ 177,187 $ 173,366 $ 9,459 $ 37,442 $ (27,364) 21.67. $ 135,923
5615-01-00 FUNCTIONAL GRANT - 39,097 - 6,822 8,577 (37,744) 0.0% (8,577)
DEBT $ $ 39,097 $ $ 6,822 $ 8,577 $ (37,744) 0.07. $ (8,577)
TRANSFERS $ $ - $ $ - $ - $ - 0.0% $
5800-01-00 LAND 6,540 20,887 (20,887) 0.0%
CAPITAL $ 6,540 $ 20,887 $ $ $ $ (20,887) 0.0% $
TOTAL EXPENDITURES $ 50,003 $ 241,795 $ 176,466 $ 16,281 $ 46,019 $ (85,995) 26.1% $ 130,447
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
15: EDC4B FUND
01:ADMINISTRATION
FY15-16
PROPOSED
5240-01-00 PRINTED SUPPLIES PRINTED MAPS OF ENTIRE CITY - 3,000
EDC COPIES/BROCHURES 3,000
CITY MARKETING FLYERS/AERIAL PHOTOS -
5260-01-00 GENERAL OFFICE SUPPLIES FILES/FOLDERS/PAPER/PENCILS 50 50
5261-01-00 POSTAGE FOR MAIL OUTS/MARKETING PACKAGES 50 50
5280-01-00 MINOR EQUIP/SMALLTOOLS<$5K ADDITIONAL EQUIPMENT ASSOCIATED WITH -
PRESENTATIONS/MARKETING
5290-01-00 EXPENDABLE SUPPLIES TOWN CENTER GRAND OPENING
9/11 MEMORIAL
5440-01-00 OFFICE EQUIP/SOFTWARE MAINT - -
5501-01-00 ADVERTISING PROMOTIONAL ADVERTISING, LEGAL NOTICES 1,200 1,200
AND BUDGET HEARING AD 1200
5510-01-00 ASSOC DUES/PUBLICATIONS TEXAS ECONOMIC DEVELOPMENT 200 4,020
COMMISSION
CITY($1875) &EDC ($675) KENNEDALE 2,550
CHAMBER MEMBERSHIP
DALLAS CHAMBER ($870) & TX MONTHLY 1,270
ECONOMIC GUIDE AD ($0), DALLAS CHAMBER
MAP ADD 400
5525-01-00 TRAINING/SEMINARS EDC TRAINING THROUGH VARIOUS 250 250
ASSOCIATIONS BY BOARC
5565-01-00 LEGAL SERVICES BILLABLE HOURS FOR CITY ATTORNEY ON EDC 1,000 1,000
RELATED PROJECTS (I.E., HOTEL, OTHER
POTENTIAL OPPORTUNITIES'
5567-01-00 AUDIT SERVICES PATILLO, BROWN & HILL SERVICES FOR 2,000 2,000
INDEPENDENT ANNUAL AUDIT (FYI 1/12 $1500,
FY12/13 $1500, FY13/14 $2K, FY14/15 $2K,
FY15 16 2250
5570-01-00 SPECIAL SERVICES TOW N CENTER CONSULTING FIRM 66,000 72,600
(APPROXIMATELY $5500/MONTH BEGINNING
JUL 2014, TO INCLUDE $3500 FOR EDC
SERVICES, $2000 FOR CHAMBER SERVICES) -
$2000 DIRECT REVENUE OFFSET FROM
CHAMBER EACH MONTH
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)
WEBSITE MAINTENANCE BY CONSULTANT 6,600
550/MONTH
5575-01-00 EQUIPMENT RENTAL -
5578-01-00 TRAVEL TRAVEL RELATED TO OTHER EDC 100 100
TRAINING/SEMINARS BY STAFF/BOARS
5580-01-00 ENGINEERING TIED TO POTENTIAL ACTIVITIES/PROJECTS (I.E., 1,000 1,000
HOTEL ETC.
5585-01-00 TELEPHONE SERVICES - -
5595-01-00 ADMIN CHARGE-GENERAL FUND CHARGE FOR SERVICES PROVIDED BY 91,196 91,196
GENERAL FUND RESOURCES (10% TOTAL
REVENUES EXCLUDING INTEREST RANSFERS
5615-01-00 FUNCTIONAL GRANT -
5701-01-00 TRANSFER OUT-GENERAL FUND
5800-01-00 LAND
TOTAL EXPENDITURES $ 176,466
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
15:EDC413 FUND
01:ADMINISTRATION
03:DEBT SERVICE
FY14-15 FY14-15 FY15-16 CURRENT FY15-16 CY-PY OF BUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD CHANGE USED REMAINING
5643-01-03 2007$1.2M TAX BOND-INTEREST 32,787 65,625 62,203 31,034 (3,475) 49.9% 31,169
5644-01-03 2007$1.2M TAX BOND-PRINCIPAL - 50,000 50,000 - 0.0% 50,000
5645-01-03 2011 $1.7M TX LEVERAGE-INT 7,240 17,024 15,798 1,432 6,153 (1,226) 38.9% 9,645
5646-01-03 2011 $1.7M TX LEVERAGE-PRI 15,332 37,147 38,373 3,141 16,476 1,226 42.9% 21,896
DEBT $ 55,358 $169,796 $ 166,374 $ 4,573 $ 53,663 $ (3,475) 32.37o $ 112,711
5702-01-03 TRANSFER OUT-DEBT SERVICE FUND 36,759 153,519 153,519 - 35,959 (0) 23.4% 117,559
TRANSFER $ 36,759 $153,519 $ 153,519 $ - $ 35,959 $ (0) 23.47. $ 117,559
TOTAL EXPENDITURES $ 92,117 $323,315 $ 319,893 $ 4,573 $ 89,623 $ (3,475) 28.07. $ 230,270
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
15: EDC413 FUND
O1:ADMINISTRATION
03: DEBT SERVICE
FY15-16
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 31,102 62,203
DU E 05/01 31,102
5644-01-03 2007$1.2M TAX BOND-PRINCIPAL DUE 05/01 50,000 50,000
5645-01-03 2011 $1.7M TX LEVERAGE-INT DUE BY 1ST OF EACH MONTH (BEGINS 15,798 15,798
11/01/2011
5646-01-03 2011 $1.7M TX LEVERAGE-PRI DUE BY 1ST OF EACH MONTH (BEGINS 38,373 38,373
11/01/2011
5702-01-03 TRANSFER OUT-DEBT SERVICE FUND DUE 1 1/01 INTEREST 2010 $2.OM CO 36,759 153,519
BOND
DUE 05/01 INTEREST 2010 $2.OM CO 36,759
BOND
DUE 05/01 PRINCIPAL : 2010 $2.OM CO 80,000
BOND
TOTAL EXPENDITURES $ 319,893
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
15:EDC4B FUND
02:TOWN SHOPPING CENTER
FY14-15 FY14-15 FY15-16 CURRENT FY15-16 CY-PY OF BUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD CHANGE USED REMAINING
SUPPLIES $ - $ - $ . $ - $ - $ - 0.0% $
5403-02-00 BUILDING MAINTENANCE 8,614 39,375 23,592 1,945 8.2% 21,647
MAINTENANCE $ 8,614 $ 39,375 $ 23,592 $ $ 1,945 $ 8.27o $ 21,647
5530-02-00 ELECTRIC SERVICES 1,005 5,297 5,000 1,249 25.0% 3,751
5545-02-00 INSURANCE-PROPERTY 6,347 6,347 8,500 6,121 72.0% 2,379
5570-02-00 SPECIAL SERVICES 4,764 15,797 13,392 1,232 4,080 30.5% 9,312
SUNDRY $ 12,117 $ 27,442 $ 26,892 $ 1,232 $ 11,450 $ 42.67o $ 15,442
TOTAL EXPENDITURES $ 20,730 $ 66,817 $ 50,484 $ 1,232 $ 13,395 $ 26.5% $ 37,089
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
15: EDC413 FUND
02:TOWN SHOPPING CENTER
FY15-16
PROPOSED
5403-02-00 BUILDING MAINTENANCE WATER ($350/MONTH) 4,200 23,592
FIRE SPRINKLER-CAM ($150/QUARTER) 600
LANDSCAPE/MATERIALS-CAM
($1 166/MONTH) 13,992
MAINTENANCE-CAM ($400/MONTH) 4,800
5530-02-00 ELECTRIC SERVICES ELECTRICITY-CAM 5,000 5,000
5545-02-00 INSURANCE-PROPERTY COVERAGE THROUGH TEXAS 8,500 8,500
MUNICIPAL LEAGUE (CHICKEN
EXPRESS/DOLLAR GENERAL BUILDING
ON TML SCHEDULE, ALL OTHER
BUILDINGS CARRIED ON CYPRESS
5570-02-00 SPECIAL SERVICES PROPERTY/ASSET MANAGEMENT ($500 6,000 13,392
PER MONTH)
SEP 2015 - FEB 2017:SUBWAY$150,ACE 7,392
$466 OR $7392 FY 15/16 - FY 16/17
ANNUAL
MAR 2017-AUG 2018:SUBWAY$150 OR -
1800 FY17 18 ANNUAL
TOTAL EXPENDITURES $ 50,484
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
15:EDC4B FUND
03:TOWN CENTER REDEVELOPMENT
FY14-15 FY14-15 FY15-16 CURRENT FY15-16 CY-PY %OF BUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD CHANGE USED REMAINING
5580-03-00 ENGINEERING SERVICES 10,000 10,000 0.0% 10,000
SUNDRY $ $ $ 10,000 $ $ $ 10,000 0.0% $ 10,000
5847-03-00 CONSTRUCTION 80,000 80,000 0.0% 80,000
CAPITAL $ $ $ 80,000 $ $ $ 80,000 0.0% $ 80,000
$ $ $ 90,000 $ $ $ 90,000 0.0% $ 90,000
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
15: EDC413 FUND
03:TOWN CENTER REDEVELOPMENT
FY15-16
PROPOSED
5580-03-00 ENGINEERING SERVICES PARKING LOT MODIFICATION 10,000 10,000
5847-03-00 CONSTRUCTION CHICKEN EXPRESS BUILDING HEALTH 5,000 80,000
INSPECTIONS/ASBESTOS SURVEY
CHICKEN EXPRESS TEAR DOWN/DEMOLITION 25,000
CHICKEN EXPRESS PARKING LOT MODIFICATION
50,000
TOTAL EXPENDITURES :,1 90,000
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
15:EDC4B FUND
04:TEXAS LEVERAGE PROGRAM
FY14-15 FY14-15 FY15-16 CURRENT FY15-16 CY- PY % BUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD CHANGE USED REMAINING
SUNDRY $ $ $ $ $ $ 0.0% $
DEBT $ $ $ $ $ $ 0.0% $
5800-04-00 LAND 101,192 50,000 (60,000) 0.0% 50,000
CAPITAL $ $ 101,192 $ 50,000 $ $ $ (60,000) 0.07. $ 50,000
$ $ 101,192 $ 50,000 $ $ $ (60,000) 0.0% $ 50,000
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE, TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
15: EDC4B FUND
04:TEXAS LEVERAGE PROGRAM
FY15-16
PROPOSED
5800-00-00 LAND HOTELPROPERTY 50,000 50,000
TOTAL EXPENDITURES $ 50,000
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
19:EDC4B CAPITAL BOND FUND
FY14-15 FY14-15 FY15-16 CURRENT FY15-16 CY- PY OF BUDGET BUDGET
CATEGORY YTD ACTUAL ADOPTED MONTH YTD CHANGE USED REMAINING
BEGINNING FUND BALANCE $ 29,429 $ 29,429 $ 29,441 $ 29,454 $ 29,444
INVESTMENT EARNINGS 4 15 15 7 17 (5) 110.2% (2)
TOTAL REVENUES $ 4 $ 15 $ 15 $ 7 $ 17 $ (5) 110.27. $ (2)
CAPITAL - - 25,000 - - - 0.0% 25,000
TOTAL EXPENDITURES $ - $ - $ 25,000 $ - $ - $ 0.07. $ 25,000
REVENUES OVER EXPENDITURES $ 4 $ 15 $ (24,985) $ 7 $ 17
ENDING FUND BALANCE $ 29,433 $ 29,444 $ 4,456 $ 29,461 $ 29,461
ADJUSTMENTS
FUND BALANCE AS%OF EXP N/A N/A 17.87. N/A N/A
RESERVE(NO REQUIREMENT) $ - $ - $ - $ - $
RESERVE SURPLUS/(SHORTFALL) $ 29,433 $ 29,444 $ 4,456 $ 29,461 $ 29,461
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
19:EDC4B CAPITAL BOND FUND
FY14-15 FY14-15 FY15-16 CURRENT FY15-16 CY-PY OF BUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD CHANGE USED REMAINING
4401-00-00 INVESTMENT INCOME 4 15 15 7 17 (5) 110.2% (2)
INVESTMENT EARNINGS $ 4 $ 15 $ 15 $ 7 $ 17 $ (5) 110.276 $ (2)
TRANSFERS $ $ $ $ $ $ - 0.07o $
TOTAL REVENUES $ 4 $ 15 $ 15 $ 7 $ 17 $ (5) 110.276 $ (2)
19:EDC4B CAPITAL BOND FUND
01:TOWN CENTER REDEVELOPMENT
FY14-15 FY14-15 FY15-16 CURRENT FY15-16 CY-PY 76 OF BUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD CHANGE USED REMAINING
MAINTENANCE $ $ $ $ $ $ 0.07o $
SUNDRY $ $ $ $ $ $ 0.07o $
5847-01-00 CONSTRUCTION 25,000 0.0% 25,000
CAPITAL $ $ $ 25,000 $ $ $ 0.076 $ 25,000
TOTAL EXPENDITURES $ $ $ 25,000 $ $ $ 0.076 $ 25,000
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE, TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
19: EDC4B CAPITAL BOND FUND
FY15-16
PROP
4401-00-00 INVESTMENT INCOME EARNING BASED UPON AVERAGE 15
BALANCE INTEREST RATE,'
TOTAL REVENUES
19: EDC4B CAPITAL BOND FUND
01:TOWN CENTER REDEVELOPMENT
FY15-16
PROPQUD-
5847-01-00 CONSTRUCTION WATER TANK IN TOWNCENTER 25,000 25,000
TOTAL EXPENDITURES $ 25,000
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
95:EDC4B RESERVE FUND
FY14-15 FY14-15 FY15-16 CURRENT FY15-16 CY- PY %OF BUDGET BUDGET
CATEGORY YTD ACTUAL ADOPTED MONTH YTD CHANGE USED REMAINING
BEGINNING FUND BALANCE $ 119,922 $ 119,922 $ 119,952 $ 119,982 $ 119,962
INVESTMENT EARNINGS 12 40 25 20 40 9 160.0% (15)
TOTAL REVENUES $ 12 $ 40 $ 25 $ 20 $ 40 $ 9 160.07. $ (15)
TOTAL EXPENDITURES $ - $ - $ - $ - $ - $ 0.0% $
REVENUES OVER EXPENDITURES $ 12 $ 40 $ 25 $ 20 $ 40
ENDING FUND BALANCE $ 119,933 $ 119,962 $ 119,977 $ 120,002 $ 120,002
ADJUSTMENTS - -
FUND BALANCE AS%OF EXP N/A N/A N/A N/A N/A
RESERVE($112,606 REQUIREMENT) $ 112,606 $ 112,606 $ 112,606 $ 112,606 $ 112,606
RESERVE SURPLUS/(SHORTFALL) $ 7,327 $ 7,356 $ 7,371 $ 7,396 $ 7,396
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE,TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
95:EDC4B RESERVE FUND
FY14-15 FY14-15 FY15-16 CURRENT FY15-16 CY-PY OF BUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD CHANGE USED REMAINING
4401-00-00 INVESTMENT INCOME 12 40 25 20 40 9 160.0% (15)
INVESTMENT EARNINGS $ 12 $ 40 $ 25 $ 20 $ 40 $ 9 160.07o $ (15)
TRANSFERS $ $ $ $ $ $ 0.07o $
TOTAL REVENUES $ 12 $ 40 $ 25 $ 20 $ 40 $ 9 160.07o $ (15)
95:EDC4B RESERVE FUND
FY14-15 FY14-15 FY15-16 CURRENT FY15-16 CY-PY 76 OF BUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD CHANGE USED REMAINING
TRANSFERS $ $ $ $ $ $ 0.07o $
TOTAL EXPENDITURES $ $ $ $ $ $ 0.0% $
"EXEMPLIFYING EXCELLENCE"
CITY OF KENNEDALE, TEXAS
ANNUAL PROGRAM OF SERVICES
MONTHLY FINANCIALS
95: EDC413 RESERVE FUND
FY15-16
PROPOSED
4401-00-00 INVESTMENT INCOME EARNING BASED UPON AVERAGE 25
BALANCE INTEREST RATES
TOTAL REVENUES
FY15-16
PROPOSED
TOTAL EXPENDITURES
"EXEMPLIFYING EXCELLENCE"
ic
KENNEDALE
Kennedale Economic
Development Corporation
www.cityofkennedale.com
STAFF REPORT TO THE BOARD OF DIRECTORS
Date: February 23, 2016
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, 2015.
II. Originated by:
Finance Director, Director of Finance & IT
III. Summary:
5The 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, 2015. 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. 12015 EDC Audit Report IEDC Financials 2015. df
a
r
KENNEDALE ECONOMIC DEVELOPMENT CORPORATION
405 Municipal Drive • KenwwwFityyoenna# o�49$ -210D • 817) 483-070
KENNEDALE ECONOMIC
DEVELOPMENT CORPORATION
ANNUAL FINANCIAL REPORT
SEPTEMBER 30, 2015
THIS PAGE LEFT BLANK INTENTIONALLY
KENNEDALE ECONOMIC DEVELOPMENT CORPORATION
TABLE OF CONTENTS
SEPTEMBER 30,2015
Page
Number
IndependentAuditors' Report................................................................................................ 1 -2
Management's Discussion and Analysis ............................................................................... 3 -6
Basic Financial Statements:
Statement of Net Position 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
Notes to Financial Statements............................................................................................. 10- 16
THIS PAGE LEFT BLANK INTENTIONALLY
"-f4&I
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, 2015, 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.
1
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28 1.671.6259 254.772.40 11 A I5 SuWh Churrh til.
HilI—o o.Tcxuw 70645 ICIO GRANDE VALLEY,TX
254.582.25M 956.544.7778 AILRIIQUERQUE,NM Governmental Audit
mm.hbhrpu.cum TEMPLE,'rX 505.266.554 Quality Center
254.791.3460
THIS PAGE LEFT BLANK INTENTIONALLY
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, 2015, 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.
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.
P Lo, 1,1, �.
February 5, 2016
2
THIS PAGE LEFT BLANK INTENTIONALLY
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, 2015. 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 $5,061,055.
• The Kennedale Economic Development Corporation's net position decreased by
$132,651. The decrease was due to decreases in miscellaneous income from the sale
of property. This was offset by the increase in sales tax revenue.
• As of the close of the current fiscal year, the Kennedale Economic Development
Corporation's governmental fund reported an ending fund balance of $313,865, a
decrease of $62,225 in comparison with the prior year. The decrease is primarily
related to the sale of property in the prior year offset by increased sales tax revenue.
• At the end of the current fiscal year, the restricted fund balance for the General Fund
was $313,865.
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 governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term 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 fund. 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 $5,061,055 at the close of the most recent fiscal year.
KENNEDALE ECONOMIC DEVELOPMENT CORPORATION'S NET POSITION
Governmental Activities
2015 2014
Current assets $ 329,468 $ 394,344
Capital assets 6,171,472 6,330,481
Total assets 0,500,940 6,724,825
Current liabilities 41,296 18,254
Noncurrent liabilities 1,398,589 1,485,737
Total liabilities 1,439,885 1,503,991
Net position:
Net investment in capital assets 4,772,883 4,844,744
Unrestricted 288,172 376,090
Total net position $ 5,061,055 $ 5,220,834
The Corporation's net position decreased by $132,651 during the current fiscal year. This decrease is
primarily due to a decrease in miscellaneous income offsetting the increase in sales tax revenue.
KENNEDALE ECONOMIC DEVELOPMENT CORPORATION'S
CHANGES IN NET POSITION
Governmental Activities
2015 2014
General Revenues:
Sales tax $ 496,083 $ 377,959
Rental Income 116,845 149,950
Miscellaneous income 57,855 601,337
Investment earnings 112 49
Total general revenues 670,895 1,129,295
Expenses:
Economic development:
Administration 568,814 624,286
Payment to city for debt 153,519 155,119
Interest and fiscal charges 81,213 86,977
Total expenses 803,546 866,382
Changes in net position ( 132,651) 262,913
Net position,beginning 5,220,834 4,980,558
Prior period adjustment (27,128) (22,637)
Net position,ending $ 5,061,055 $ 5,220,834
5
Governmental activities. The Corporation's general revenues decreased by $62,225 or 16.55% from
last year. The decrease was due to a decrease in miscellaneous income from the sale of land in the prior
year. Sales tax revenue increased by $118,124 or 31.25%to $496,083.
DISCUSSION OF CURRENTLY KNOWN FACTS,DECISIONS OR CONDITIONS IN FISCAL
YEAR 2015
The Kennedale Economic Development Corporation's projects for the fiscal year and beyond include:
1) Development of residential subdivisions within the TIRZ, 2) Developing restaurants in the Oak Crest
development, 3) Securing a commitment from a hotel developer for the Oak Crest re-development, 4)
Securing land for development of Oak Crest re-development, 5) Continuing the development of the
Kennedale TownCenter, 6) Identifying potential tracts of land to acquire, consolidate, clear and resell
for light manufacturing/warehouse uses, and 7) Development of a fast-food restaurant adjacent to Oak
Crest.
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 30,2015
Statement of
General Adjustments Net Position
ASSETS
Cash and investments $ 249,720 $ - $ 249,720
Sales taxes receivable 70,758 - 70,758
Accounts receivable 7,963 - 7,963
Prepaid items 1,027 - 1,027
Capital assets:
Land - 1,457,391 1,457,391
Buildings and improvements - 5,882,511 5,882,511
Construction in progress - - -
Less: accumulated depreciation - [ 1,168,430} ( 1,168,430)
Total capital assets - 6,171,472 6,171,472
Total assets 329,468 6,171,472 6,500,940
LIABILITIES
Accounts payable 704 - 704
Accrued interest payable - 25,693 25,693
Customer deposits 14,899 - 14,899
Noncurrent liabilities:
Due within one year - 88,372 88,372
Due in more than one year - 1,310,217 1,310,217
Total liabilities 15,603 1,424,282 1,439,885
FUND BALANCE/NET POSITION
Fund balance:
Restricted for economic development 313,865 [ 313,865) -
Total fund balance 313,865 ( 313,865) -
Total liabilities and fund balance $ 329,468
Net position:
Net investment in capital assets 4,772,883 4,772,883
Restricted for economic development 288=172 288,172
Total net position $ 5,061,055 $ 5,061,055
The accompanying notes are an integral part of these financial statements.
7
KENNEDALE ECONOMIC DEVELOPMENT CORPORATION
STATEMENT OF ACTIVITIES
AND GOVERNMENTAL FUND REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED SEPTEMBER 30,2015
Statement
General Adjustments of Activities
Expenditures/expenses:
Current:
Economic development $ 409,805 $ 159,009 $ 568,814
Payment to city for debt 153,519 - 153,519
Debt service:
Principal 87,147 ( 87,147) -
Interest and fiscal charges 82,649 ( 1,436) 81,213
Total expenditures/expenses 733,120 70,426 803,546
General revenues:
Sales taxes 496,083 - 496,083
Rental income 116,845 - 116,845
Miscellaneous income 57,855 - 57,855
Investment earnings 112 - 112
Total general revenues 670,895 - 670,895
Excess of revenues over expenditures ( 62,225) ( 70,426) ( 132,651)
Net change in fund balance ( 62,225) 62,225 -
Change in net position - ( 132,651) ( 132,651)
Fund balance/net position:
Beginning 376,090 4,844,744 5,220,834
Prior period adjustment - ( 27,128 ( 27,128)
Ending $ 313,865 $ 4,747,190 $ 5,061,055
The accompanying notes are an integral part of these financial statements.
8
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KENNEDALE ECONOMIC DEVELOPMENT CORPORATION
COMPONENT UNIT-GENERAL FUND
STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30,2015
(With Comparative Actual Amounts for the Year Ended September 30,2014)
2015 2014
Variance with
Final Budget
Budgeted Amounts Actual Positive Actual
Original Final Amounts (Negative) Amounts
REVENUES
Sales tax $ 382,853 $ 382,853 $ 496,083 $ 113,230 $ 377,959
Rental income 134,692 134,692 116,845 ( 17,847) 149,950
Miscellaneous income 384,120 384,120 57,855 ( 326,265) 1,008,095
Investment earnings 40 40 112 72 49
Total revenues 901,705 901,705 670,895 ( 230,810) 1,536,053
EXPENDITURES
Current:
Economic development 433,321 450,345 409,805 40,540 431,142
Payment to city for debt 153,519 153,519 153,519 - 155,119
Debt Service:
Principal 104,171 87,147 87,147 - 80,961
Interest and fiscal charges 82,702 82,702 82,649 53 86,976
Total expenditures 773,713 773,713 733,120 40,593 754,198
NET CHANGE IN FUND BALANCES 127,992 127,992 ( 62,225) ( 190,217) 781,855
FUND BALANCES,BEGINNING 376,090 376,090 376,090 - ( 405,765)
FUND BALANCES,ENDING $ 504,082 $ 504,082 $ 313,865 $( 190,217) $ 376,090
The accompanying notes are an integral part of these financial statements.
9
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KENNEDALE ECONOMIC DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2015
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 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 Position 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, 2015, 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, 2015, the carrying amounts of the Corporation's investments were as
follows:
Balances in public funds investment pools:
State Treasurer's Investment Pool (TexPool) 249,720
$ 249,720
Public Funds Investment Pools
Public funds investment pools in Texas ("Pools") are established under the authority of the
Interlocal Cooperation Act, Chapter 79 of the Texas Government Code, and are subject to the
provisions of the Public Funds Investment Act (the "Act"), Chapter 2256 of the Texas
Government Code. In addition to other provisions of the Act designed to promote liquidity
and safety of principal, the Act requires Pools to: 1) have an advisory board composed of
participants in the pool and other persons who do not have a business relationship with the
pool and are qualified to advise the pool; 2) maintain a continuous rating of no lower than
AAA or AAA-m or an equivalent rating by at least one nationally recognized rating service;
and 3) maintain the market value of its underlying investment portfolio within one-half of
one percent of the value of its shares.
The District's investments in Pools are reported at an amount determined by the fair value
per share of the Pool's underlying portfolio, unless the Pool is 2a7-like, in which case, they
are reported at share value. A 2a7-like pool is one which is not registered with the Securities
and Exchange Commission ("SEC") as an investment company, but nevertheless has a policy
that it will, and does, operate in a manner consistent with the SEC's Rule 2a7 of the
Investment Company Act of 1940.
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, 2015, was as follows:
Primary Government
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets,not being depreciated:
Land $ 1,340,853 $ 116,538 $ - $ 1,457,391
Construction in progress 171,641 - 171,641 -
Total capital assets not being depreciated 1,512,494 116,538 171,641 1,457,391
Capital assets,being depreciated:
Buildings 4,680,139 - - 4,680,139
Improvements 1,017,693 - - 1,017,693
Infrastructure - 184,679 - 184,679
Total capital assets being depreciated 5,697,832 184,679 - 5,882,511
Less accumulated depreciation:
Buildings 702,929 234,007 - 936,936
Improvements 176,916 50,884 - 227,800
Infrastructure - 3,694 3,694
Total accumulated depreciation 879,845 288,585 - 1,168,430
Total capital assets,being depreciated,net 4,817,987 (103,906) - 4,714,081
Governmental activities capital assets,net $ 6,330,481 $ 12,632 $ 171,641 $ 6,171,472
E. Long-term Debt
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 Due Within
Balance Additions Reductions Balance One Year
Government activities
Revenue bonds $ 945,000 $ - $ 50,000 $ 895,000 $ 50,000
Texas leverage fund loan 540;737 - 37,148 503,589 38,372
Governmental activity
Long-term liabilities $ 1,485,737 $ - $ 87,148 $ 1,398,589 $ 88,372
15
Annual debt service requirements to maturity for the revenue bonds are as follows:
Year Ending Governmental Activities
_September 30, Principal Interest
2016 $ 88,372 $ 78,001
2017 94,638 73,260
2018 100,946 68,130
2019 102,297 62,609
2020 108,692 57,044
2021-2025 641,055 187,912
2026-2030 262,589 22,642
Total $ 1,398,589 $ 549,598
F. Prior Period Adjustment
A prior period adjustment was made to the government-wide financial statements to
recognize the accrued interest payable at September 30, 2014. This was a $27,128 decrease
adjusting beginning net position to $5,193,706.
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ic
KENNEDALE
Kennedale Economic
Development Corporation
www.cityofkennedale.com
STAFF REPORT TO THE BOARD OF DIRECTORS
Date: February 23, 2016
Agenda Item No: STAFF ANNOUNCEMENTS/REPORTS - A.
I. Subject:
Village Creek
B. TownCenter
C. Chamber Report
II. Originated by:
Bob Hart
III. Summary:
The Director will provide an update on these items.
• Village Creek
• TownCenter
• ICSC Meeting
• Chamber Report
IV. Recommendation:
None
V. Alternative Actions:
VI. Attachments:
ic
KENNEDALE
Kennedale Economic
Development Corporation
www.cityofkennedale.com
STAFF REPORT TO THE BOARD OF DIRECTORS
Date: February 23, 2016
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. 1200 Block Bowman Springs Road
2. 6900 Block Kennedale Parkway
3. 5400 and 5404 Kennedale Road
4. 5401 High Ridge Road
5. TownCenter Building Pad 5
II. Originated by:
Bob Hart
III. Summary:
These items will be discussed during the Executive Session.
• 1200 Block Bowman Springs Road
• 6900 Block Kennedale Parkway
• 5400 and 5404 Kennedale Road
• 5401 High Ridge Road
• TownCenter Building Pad 5
IV. Recommendation:
V. Alternative Actions:
VI. Attachments: