2017_02.28 EDC Packet ic
KENNEDALE
Kennedale Economic
Development Corporation
www.cityofkennedale.com
ECONOMIC DEVELOPMENT CORPORATION
AGENDA
BOARD OF DIRECTORS - REGULAR MEETING
February 28, 2017
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 24, 2017 regular meeting
IV. REGULAR ITEMS
A. Review and accept the KEDC Financial Reports for December 2016 and January 31, 2017.
B. Discuss and consider action for approval of Economic Development Corporation Independent
Auditor's Report for year ended September 30, 2016.
C. Discuss and consider approval for the purchase and installation of a "For Sale" sign at 1109 W.
Kennedale Parkway
V. STAFF ANNOUNCEMENTS/REPORTS
A. TownCenter
B. Chamber of Commerce 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. Hospitality Project
2. Oak Crest Development
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 28, 2017, 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 1 Telephone: 817.985.2102 1 Fax: 817-478-7169
ic
KENNEDALE
Kennedale Economic
Development Corporation
www.cityofkennedale.com
STAFF REPORT TO THE BOARD OF DIRECTORS
Date: February 28, 2017
Agenda Item No: MINUTES APPROVAL - A.
I. Subject:
Consider approval of the minutes from the January 24, 2017 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 24, 2017 11-24-17.pdf
_jc
KENNEDALE
Kennedale Economic
Development www.ci yofi(enn Corporation rn ECONOMIC DEVELOPMENT CORPORATION
BOARD OF DIRECTORS - REGULAR MEETING
MINUTES
January 24, 2017
7:00 P.M.
I. CALL TO ORDER
President Mundy called the meeting to order at 7:04 p.m.
II. ROLL CALL
Present: Michael Johnson, Adrienne Kay, Rebecca Carlton, Robert Mundy, Pat Turner, Ronald
Whitley, Mark Yeary
Absent: None
Staff Present: Bob Hart, Jack Thompson, Krystal Crump, and Leslie Galloway
III. MINUTES APPROVAL
A. Consider approval of the minutes from the November 22, 2016 regular meeting
Motion To approve the November 22, 2016 Economic Development Corporation meeting
minutes. Action Approve, Moved By Mark Yeary, Seconded By Rebecca Carlton
Motion passed Unanimously
There was not a December 2016 Economic Development Corporation Board Meeting.
IV. REGULAR ITEMS
A. Review and accept the KEDC Financial Report for November and December 2016
Finance Director Krystal Crump provided a short overview of the November and December
2016 Financial Reports for the Economic Development Corporation. She noted that there was
little activity. Krystal informed the Board that staff will be going out for bids within the next few
months for roof repairs at TownCenter, Building One.
In closing, she stated that December revenues were down; however, January revenues were
the highest in the past five years.
Motion To approve the November 2016 Finance Report for the Economic Development
Corporation. Action Approve, Moved By Adrienne Kay, Seconded By Michael Johnson
Motion passed Unanimously
B. Consider Approval of Hotel Occupancy Agreement
Director Bob Hart reminded the Board that a few years back, City Council approved an
ordinance adopting a hotel/motel tax. He added that the ordinance states that the Economic
Development Corporation (EDC) will manage those funds; therefore, the EDC will need
to prepare an agreement. He stated that the contract in their packet shows that the EDC will
be responsible for the administration of the hotel/motel tax.
Motion To approve the Hotel Occupancy Tax Delegation Agreement. Action Approve, Moved
By Pat Turner, Seconded By Ronald Whitley.
Motion passed Unanimously
C. Project Review
Director Bob Hart provided a status review of ongoing and upcoming Economic Development
Corporation projects and activities.
V. EXECUTIVE SESSION
President Mundy recessed into executive session at 8:07 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. Hospitality Project
2. Oak Crest Redevelopment
B. The Economic Development Corporation will meet in closed session pursuant to Section
551.074 of the Texas Government Code to deliberate the appointment, employment,
evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee.
1. Discuss selection of and reassignment of duties for an Interim Executive Director for the
Economic Development Corporation
VI. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO
EXECUTIVE SESSION, IF NEEDED
President Mundy reconvened into open session at 8:54 p.m.
A. Appoint an Economic Development Director to assist the Interim Executive Director for the
Economic Development Corporation
Motion To appoint Orasi Development, LLC as Economic Development Director.
Action Approve, Moved By Adrienne Kay, Seconded By Mark Yeary.
Motion passed Unanimously
B. Consider approval of three hospitality related contracts involving a hotel
President Mundy stated that Paragraph 9a: The office of the title company is not stated as it
says it should be. He requested that this administrative change be made to the contract.
Motion To authorize the Economic Development Corporation President, Robert Mundy to sign
a 380 Agreement with Karmali Holdings, Inc. Action Approve, Moved By Adrienne Kay,
Seconded By Ronald Whitley.
Motion passed Unanimously
C. Consider approval of contract to sell a portion of Oak Crest land
No action was taken.
VII. ADJOURNMENT
Motion To adjourn. Action Adjourn, Moved By Michael Johnson, Seconded By Ronald Whitley.
Motion passed Unanimously
The meeting was adjourned at 8:55 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 28, 2017
Agenda Item No: REGULAR ITEMS - A.
I. Subject:
Review and accept the KEDC Financial Reports for December 2016 and January 31, 2017.
II. Originated by:
Finance Director, Director of Finance & IT
Bob Hart
Krystal Crump, Finance Director
III. Summary:
Finance Director, Krystal Crump will provide an overview of the December 31, 2016 and January 31,
2017 Kennedale Economic Development Corporation Financial Report.
IV. Recommendation:
Approve
V. Alternative Actions:
VI. Attachments:
1. IKEDC Financials January 2017 k017 01 Monthly Financials. df
P. KEDC Financials December 2016 P016 12 Monthly Financials. df
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
JANUARY
ECONOMIC DEVELOPMENT CORPORATION FINANCIALS SUMMARY
Budget Amendment
No amendments.
Monthly Information
Sales Taxes are trending over budgeted projections.
Functional Grant line item - paid out property taxes for H &0 and paying out sales taxes for 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
ADDITIONAL INFORMATION
FUND 15-OPERATING FUND (ALL BILLS AND REVENUE RECEIVED IN THIS FUND)
FUND 19- CAPITAL BOND FUND (REMAINING CAPITAL MONEY)
FUND 95- RESERVE FUND FOR DEBT REQUIREMENTS
"YOU'RE HERE. YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
EDC CASH POSITION JANUARY
FY15-16 FYI 6-17 CURRENT FY16-17
CATEGORY ACTUAL ADOPTED MONTH YTD
BEGINNING CASH BALANCE - FUND 15 $ 90,295 $ 45,406 $ 27,385 $ 45,406
BEGINNING TEXPOOL BALANCE - FUND 15 $ 19 $ - $ - $ -
BEGINNING TEXPOOL BALANCE - FUND 19 $ 29,444 $ 29,529 $ 29,560 $ 29,529
BEGINNING CASH BALANCE - FUND 95 $ 119,962 $ 120,132 $ 120,183 $ 120,132
TOTAL REVENUES $ 627,490 $ 933,227 $ 42,365 $ 133,500
TOTAL EXPENDITURES $ 718,004 $ 803,880 $ 24,066 $ 159,565
CHANGE IN CASH DURING PERIOD $ (44,653) $ 200,099 $ 19,169 $ 1,230
ENDING CASH BALANCE - FUND 15 $ 45,406 $ 270,559 $ 46,504 $ 46,504
ENDING TEXPOOL BALANCE - FUND 15 $ - $ 19 $ - $ -
ENDING TEXPOOL BALANCE - FUND 19 $ 29,529 $ 4,456 $ 29,574 $ 29,574
ENDING CASH BALANCE - FUND 95 $ 120,132 $ 120,132 $ 120,220 $ 120,220
"YOU'RE HERE. YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
JANUARY
COMBINED EDC413 FUNDS SUMMARY
FY15-16 FY15-16 FY16-17 FY16-17 CURRENT FY16-17 CY-PY %OF PY BUDGEIOF CY BUDGI BUDGET
CATEGORY YTD ACTUAL ADOPTED AMENDED MONTH YTD CHANGE USED USED REMAINING
BEGINNING FUND BALANCE $313,866 $313,866 $ 248,862 $ 223,530 $ 179,106 $223,522
AD VALOREM TAXES 1,966 34,335 48,462 48,462 393 1,573 400 5.7% 3.2% 46,889
SALES/BEVERAGE TAXES 58,627 376,545 349,351 349,351 29,812 57,580 (649) 15.6% 16.5% 291,772
INVESTMENT EARNINGS 92 333 260 260 62 157 180 27.6% 60.3% 103
MISCELLANEOUS INCOME 9,143 115,841 435,796 435,796 4,100 42,196 51,676 7.9% 9.7% 393,600
SURPLUS SALES/RENTALS 48,326 100,606 99,358 99,358 7,999 31,994 (30,416) 48.0% 32.2% 67,364
TOTAL REVENUES $118,154 $627,660 $ 933,227 $ 933,227 $ 42,365 $133,500 $ 21,191 18.8% 14.3% $ 799,727
SUPPLIES - 5,110 3,100 3,100 - - - 0.0% 0.0% 3,100
MAINTENANCE 1,945 19,709 95,403 95,403 1,334 6,257 71,811 9.9% 6.6% 89,146
SUNDRY 57,469 353,786 291,959 291,959 18,160 70,783 91,701 16.2% 24.2% 221,175
DEBT 53,663 166,773 168,600 168,600 4,573 47,616 2,226 32.2% 28.2% 120,984
TRANSFERS 35,959 151,919 154,819 154,819 - 34,909 1,300 23.7% 22.5% 119,909
CAPITAL 20,707 90,000 90,000 (75,000) 0.0% 0.0% 90,000
TOTAL EXPENDITURES $149,037 $718,004 $ 803,880 $ 803,880 $ 24,066 $159,565 $ 92,038 20.8% 19.8% $ 644,315
REVENUES OVER EXPENDITUI $ (30,883) $ (90,344) $ 129,347 $ 129,347 $ 18,299 $ (26,066)
ENDING FUND BALANCE $282,983 $223,522 $ 378,209 $ 352,877 $ 197,405 $197,456
FUND BALANCE AS%OF EXP 189.9% 31.1% 47.0% 43.9% 820.3% 123.7
RESERVE($115,000)REQUIRE $ - $ - $ 115,000 $ - $ - $ -
RESERVE SURPLUS/(SHORTF) $282,983 $223,522 $ 263,209 $ 352,877 $ 197,405 $197,456
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
JANUARY
15:EDC413 FUND
FY15-16 FY15-16 FY16-17 FY16-17 CURRENT FY16-17 CY-PY OF PY BUDGIOF CY BUDGI BUDGET
CATEGORY YTD ACTUAL ADOPTED AMENDED MONTH YTD CHANGE USED USED REMAINING
BEGINNING FUND BALANC $164,460 $164,460 $ 99,198 $ 73,861 $ 29,414 $ 73,861
AD VALOREM TAXES 1,966 34,335 48,462 48,462 393 1,573 400 5.7% 3.2% 46,889
SALES/BEVERAGE TAXES 58,627 376,545 349,351 349,351 29,812 57,580 (649) 15.6% 16.5% 291,772
INVESTMENT EARNINGS 32 78 40 40 11 25 - 41.7% 61.6% 15
MISCELLANEOUS INCOME 9,143 115,841 435,796 435,796 4,100 42,196 51,676 7.9% 9.7% 393,600
SURPLUS SALES/RENTALS 48,326 100,606 99,358 99,358 7,999 31,994 (30,416) 48.0% 32.2% 67,364
TOTAL REVENUES $118,095 $627,405 $ 933,007 $ 933,007 $ 42,315 $133,367 $ 21,011 18.8% 14.3% $799,640
SUPPLIES - 5,110 3,100 3,100 - - - 0.0% 0.0% 3,100
MAINTENANCE 1,945 19,709 95,403 95,403 1,334 6,257 71,811 9.9% 6.6% 89,146
SUNDRY 57,469 353,786 291,959 291,959 18,160 70,783 91,701 16.2% 24.2% 221,175
DEBT 53,663 166,773 168,600 168,600 4,573 47,616 2,226 32.2% 28.2% 120,984
TRANSFERS 35,959 151,919 154,819 154,819 - 34,909 1,300 23.7% 22.5% 119,909
CAPITAL - 20,707 90,000 90,000 - - (50,000) 0.0% 0.0% 90,000
TOTAL EXPENDITURES $149,037 $718,004 $ 803,880 $ 803,880 $ 24,066 $159,565 $117,038 20.8% 19.8% $644,315
REVENUES OVER EXPENDI $ (30,942) $ (90,599) $ 129,127 $ 129,127 $ 18,248 $ (26,198)
ENDING FUND BALANCE $133,518 $ 73,861 $ 228,324 $ 202,987 $ 47,662 $ 47,662
FUND BALANCE AS%OFE 89.6% 10.3% 28.4% 25.3% 198.0% 29.9%
RESERVE(NO REQUIREME $ - $ - $ - $ - $ - $ -
RESERVE SURPLUS/(SHOR $133,518 $ 73,861 $ 228,324 $ 202,987 $ 47,662 $ 47,662
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
JANUARY
15:EDC413 FUND
FYI 5-16 FYI 5-16 FY16-17 FYI 6-17 CURRENT FYI 6-17 CY-PY OF PY BUDGIOF CY BUDGI BUDGET
ACCOUNT ACCOUNTNAME YTD ACTUAL ADOPTED AMENDED MONTH YTD CHANGE USED USED REMAINING
4002-00-00 MMD TAX-CURRENT YEAR 1,966 34,335 48,462 48,462 393 1,573 400 5.7% 3.2% 46,889
AD VALOREM TAXES $ 1,966 $ 34,335 $ 48,462 $ 48,462 $ 393 $ 1,573 $ 400 5.7% 3.2% $ 46,889
4081-00-00 SALES TAX 58,627 376,545 349,351 349,351 29,812 57,580 (649) 15.6% 16.5% 291,772
SALES/BEVERAGE TAXES $ 58,627 $376,545 $ 349,351 $ 349,351 $ 29,812 $ 57,580 $ (649) 15.6% 16.5% $291,772
4401-00-00 INVESTMENT INCOME 32 78 40 40 11 25 41.7% 61.6% 15
INVESTMENT EARNINGS $ 32 $ 78 $ 40 $ 40 $ 11 $ 25 $ - 41.7% 61.6% $ 15
4409-00-00 MISCELLANEOUS INCOME 9,143 115,841 435,796 435,796 4,100 42,196 51,676 7.9% 9.7% 393,600
MISCELLANEOUS INCOME $ 9,143 $ 115,841 $ 435,796 $ 435,796 $ 4,100 $ 42,196 $ 51,676 7.9% 9.7% $393,600
4805-00-00 RENTAL FEES-SHOPPING CEM 48,015 98,580 98,612 98,612 7,938 31,753 (22,662) 48.7% 32.2% 66,859
4806-00-00 RENTAL INSURANCE 311 2,026 746 746 60 241 (7,754) 15.3% 32.3% 505
SURPLUS SALES/RENTALS $ 48,326 $ 100,606 $ 99,358 $ 99,358 $ 7,999 $ 31,994 $(30,416) 48.0% 32.2% $ 67,364
TOTAL REVENUES $ 118,095 $627,405 $ 933,007 $ 933,007 $ 42,315 $ 133,367 $ 21,011 18.8% 14.3% $799,640
'ENUES(EXCLUDING INTEREST/TRANSFERS) $ 118,062 $627,327 $ 932,967 $ 932,967 $ 42,303 $ 133,343 $ 21,011
10%ADMIN CHARGE-GENERAL FUND 11,806 62,733 93,297 93,297 4,230 13,334 2,101
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
JANUARY
15:EDC413 FUND
01:ADMINISTRATION
FY15-16 FY15-16 FY16-17 FY16-17 CURRENT FY16-17 CY-PY OF PY BUDGIOF CY BUDGI BUDGET
ACCOUNT ACCOUNTNAME YTD ACTUAL ADOPTED AMENDED MONTH YTD CHANGE USED USED REMAINING
5240-01-00 PRINTED SUPPLIES - 5,110 3,000 3,000 - 0.0% 0.0% 3,000
5260-01-00 GENERAL OFFICE SUPPI 50 50 0.0% 0.0% 50
5261-01-00 POSTAGE 50 50 0.0% 0.0% 50
SUPPLIES $ $ 5,110 $ 3,100 $ 3,100 $ $ $ - 0.0% 0.0% $ 3,100
5501-01-00 ADVERTISING 210 2,200 2,200 1,000 0.0% 0.0% 2,200
5510-01-00 ASSOC DUES/PUBLICATI 1,236 5,356 5,320 5,320 1,300 23.1% 0.0% 5,320
5525-01-00 TRAINING/SEMINARS - 525 250 250 - 0.0% 0.0% 250
5565-01-00 LEGAL SERVICES 5,662 7,000 7,000 5,250 5,750 6,000 0.0% 82.1% 1,250
5567-01-00 AUDIT SERVICES 2,000 2,250 2,250 - - 250 0.0% 0.0% 2,250
5570-01-00 SPECIAL SERVICES 25,427 140,283 68,650 68,650 5,700 34,615 (3,950) 18.1% 50.4% 34,035
5574-01-00 FILING FEES - - - - - 40 #DIV/0I #DIV/0I (40)
5575-01-00 EQUIPMENT RENTAL - - - #DIV/0I #DIV/0I -
5578-01-00 TRAVEL - 100 100 0.0% 0.0% 100
5580-01-00 ENGINEERING SERVICE; - 55,070 6,000 6,000 - - 5,000 0.0% 0.0% 6,000
5595-01-00 ADMIN CHARGE-GENER! 10,780 56,796 93,297 93,297 4,230 13,334 2,101 19.0% 14.3% 79,962
5610-01-00 VISUAL GRANT - 11,122 50,000 50,000 - - 50,000 0.0% 0.0% 50,000
5615-01-00 FUNCTIONAL GRANT 8,577 51,850 32,000 32,000 1,362 4,278 32,000 16.5% 13.4% 27,722
SUNDRY $ 46,019 $328,873 $ 267,067 $ 267,067 $ 16,542 $ 58,017 $ 93,701 14.0% 21.7% $209,049
5800-01-00 LAND - 1,968 - - - - - 0.0% 0.0% -
5813-01-00 KENNEDALE ENTRANCE 0.0% 0.0%
5820-01-00 BUILDING IMPROVEMEN 0.0% 0.0%
5875-01-00 CONSTRUCTION 0.0% 0.0%
CAPITAL $ - $ 1,968 $ $ - $ - $ - $ - 0.0% #DIV/0! $ -
TOTAL EXPENDITURES $ 46,019 $335,951 S 27-e,'.67 $ 270,167 $ 16,542 $ 58,017 $ 93,701 13.7% 21.5% $212,149
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
JANUARY
15:EDC413 FUND
01:ADMINISTRATION
03:DEBT SERVICE
FY15-16 FY15-16 FY16-17 FY16-17 CURRENT FY16-17 CY-PY OF PY BUDGE OF CY BUDGE BUDGET
ACCOUNT ACCOUNTNAME YTD ACTUAL ADOPTED AMENDED MONTH YTD CHANGE USED USED REMAINING
5643-01-03 2007$1.2M TAX BON D-INTE 31,034 62,135 58,728 58,728 29,325 (3,476) 49.9% 49.9% 29,402
5644-01-03 2007$1.2M TAX BOND-PRII - 50,000 55,000 55,000 - 5,000 0.0% 0.0% 55,000
5645-01-03 2011$1.7M TX LEVERAGE- 6,153 15,930 15,672 15,672 1,410 5,456 (126) 38.6% 34.8% 10,217
5646-01-03 2011$1.7M TX LEVERAGE- 16,476 38,709 39,200 39,200 3,163 12,835 827 42.6% 32.7% 26,365
DEBT $ 53,663 $166,773 $ 168,600 $ 168,600 $ 4,573 $ 47,616 $ 2,226 32.2% 28.2% $ 120,984
5702-01-03 TRANSFER OUT-DEBT SEF 35,959 151,919 154,819 154,819 34,909 1,300 23.7% 22.5% 119,909
TRANSFER $ 35,959 $151,919 $ 154,819 $ 154,819 $ - $ 34,909 $ 1,300 23.7% 22.5% $ 119,909
TOTAL EXPENDITURES $ 89,623 $318,692 $ 323,419 $ 323,419 $ 4,573 $ 82,525 $ 3,526 28.1% 25.5% $ 240,893
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
JANUARY
15:EDC413 FUND
02:TOWN SHOPPING CENTER
FY15-16 FY15-16 FY 16-17 FY16-17 CURRENT FY16-17 CY-PY OF PY BUDGIOF CY BUDGI BUDGET
ACCOUNT ACCOUNTNAME YTD ACTUAL ADOPTED AMENDED MONTH YTD CHANGE USED USED REMAINING
5403-02-00 BUILDING MAINTENA 1,945 19,709 95.40`; 95,403 1,334 6,257 71,811 9.9% 6.6% 89,146
MAINTENANCE $ 1,945 $ 19,709 $ 95,403 $ 95,403 $ 1,334 $ 6,257 $ 71,811 9.9% 6.6% $ 89,146
5530-02-00 ELECTRIC SERVICES 1,249 5,401 5.006 5,000 502 1,795 - 23.1% 35.9% 3,205
5545-02-00 INSURANCE-PROPEF 6,121 6,121 6.500 6,500 - 6,507 (2,000) 100.0% 100.1% (7)
5570-02-00 SPECIAL SERVICES 4,080 13,392 13.392 13,392 1,116 4,464 30.5% 33.3% 8,928
SUNDRY $ 11,450 $ 24,914 5 24,392 $ 24,892 $ 1,618 $ 12,766 $ (2,000) 46.0% 51.3% $ 12,126
TOTAL
EXPENDITURES $ 13,395 $ 44,622 ;: $ 120,295 $ 2,951 $ 19,023 $ 69,811 30.0% 15.8% $ 101,272
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
JANUARY
15:EDC413 FUND
03:TOWN CENTER REDEVELOPMENT
FY15-16 FY15-16 FY16-17 FY16-17 CURRENIFY16-17 CY-PY OF PY BUDGIOF CY BUDGI BUDGET
ACCOUNT ACCOUNTNAME YTD ACTUAL ADOPTED AMENDED MONTH YTD CHANGE USED USED REMAINING
5580-03-00 ENGINEERING SERVI, 10,000 10,000 0.0% 0.0% 10,000
5847-03-00 CONSTRUCTION 80.000 80,000 0.0% 0.0% 80,000
CAPITAL $ $ $ 90,000 $ 90,000 $ $ $ 0.0% 0.0% $ 90,000
TOTAL
EXPENDITURES $ $ $ 90,000 $ 90,000 $ $ $ 0.0% 0.0% $ 90,000
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
JANUARY
15:EDC413 FUND
04:TEXAS LEVERAGE PROGRAM
FY15.16 FY15.16 FY16-17 FY16.17 CURRENIFY16.17 CY-PY OF PY BUDGIOF CY BUDGI BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED 4MENDEE MONTH YTD CHANGE USED USED REMAINING
5800-04-00 LAND 18,739 (50,000) 0.0% 0.0%
CAPITAL $ $ 18,739 $ $ $ $ $ (50,000) 0.0% 0.0% $
TOTAL
EXPENDITURES $ $ 18,739 $ $ $ $ $ (50,000) 0.0% 0.0% $
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
JANUARY
19:EDC4B CAPITAL BOND FUND
FYI 5-16 FYI 5-16 F>.c FYI 6-17 FYI 6-17 CURRENT FYI 6-17 CY-PY OF PY BUDGIOF CY BUDGI BUDGET
CATEGORY YTD ACTUAL AMENDED PROJECTED MONTH YTD CHANGE USED USED REMAINING
BEGINNING FUND BALANC$ 29,444 $ 29,444 $ 29,529 $ 29,529 $ 29,560 $ 29,529
INVESTMENT EARNINGS 17 85 60 14 44 45 19.4% 73.9% 16
TOTAL REVENUES $ 17 $ 85 $ S $ 60 $ $ 14 $ 44 $ 45 19.4% 73.9% $ 16
CAPITAL (25,000) 0.0% 0.0%
TOTAL EXPENDITURES $ - $ - $ $ - $ $ - $ - $ (25,000) 0.0% 0.0% $ -
REVENUES OVER EXPENE$ 17 $ 85 $ 60 $ 60 $ $ 14 $ 44
ENDING FUND BALANCE $ 29,461 $ 29,529 $ 29,584 $ 29,589 $ 29,529 $ 29,573 $ 29,573
FUND BALANCE AS% I N/A N/A NIA N/A N/A N/A N/A
RESERVE(NO REQUIREME$ - $ - $ - $ - $ - $ - $ -
RESERVE SURPLUS/(SHOI$ 29,461 $ 29,529 $ 29,584 $ 29,589 $ 29,529 $ 29,573 $ 29,573
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
JANUARY
19:EDC413 CAPITAL BOND FUND
FY15-16 FY15-16 `Y16-1 r' FY16-17 3URREN1FY16-17 CY-PY OF PY BUDGIOF CY BUDG BUDGET
ACCOUNT ACCOUNTNAME YTD ACTUAL .?0007 %MENDE[ MONTH YTD CHANGE USED USED REMAINING
4401-00-00 INVESTMENT INCOM 17 85 60 14 44 45 19.4% 73.9% 16
INVESTMENT EARNII $ 17 $ 85 `%, 6 $ 60 $ 14 $ 44 $ 45 19.4% 73.9% $ 16
TOTAL REVENUES $ 17 $ 85 5 60 $ 60 $ 14 $ 44 $ 45 19.4% 73.9% $ 16
19:EDC413 CAPITAL BOND FUND
01:TOWN CENTER REDEVELOPMENT
FY15-16 FY15-16 FY16-17 FY16-17 3URREN1FY16-17 CY-PY OF PY BUDGIOF CY BUDG BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL .ADOPT l' %MENDE[ MONTH YTD CHANGE USED USED REMAINING
5847-01-00 CONSTRUCTION (25,000) 0.0% 0.0%
CAPITAL $ $ $ $ $ $(25,000) 0.0% 0.0% $
TOTAL EXPENDITUR $ $ $ $ $ $(25,000) 0.0% 0.0% $
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
JANUARY
95:EDC413 RESERVE FUND
FY15-16 FY15-16 FY16-17 FY16-17 CURRENT FY16-17 CY-PY OF PY BUDGIOF CY BUDGI BUDGET
CATEGORY YTD ACTUAL ADOPTED AMENDED MONTH YTD CHANGE USED USED REMAINING
BEGINNING FUND BALANCI $119,962 $119,962 $ 120,141 $ 120,141 $ 120,132 $120,132
INVESTMENT EARNINGS 43 170 160 160 37 88 135 25.2% 54.9% 72
TOTAL REVENUES $ 43 $ 170 $ 160 $ 160 $ 37 $ 88 $ 135 25.2% 54.9% $ 72
TOTAL EXPENDITURES $ - $ - $ - $ - $ - $ - $ 0.0% 0.0% $
REVENUES OVER EXPENDI $ 43 $ 170 $ 160 $ 160 $ 37 $ 88
ENDING FUND BALANCE $120,005 $120,132 $ 120,301 $ 120,301 $ 120,169 $120,220
FUND BALANCE AS%OF E: N/A N/A N/A N/A N/A N/A
RESERVE($112,606 REQUIF $112,606 $112,606 $ 112,606 $ 112,606 $ 112,606 $112,606
RESERVE SURPLUS/(SHOR $ 7,399 $ 7,526 $ 7,695 $ 7,695 $ 7,563 $ 7,614
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
JANUARY
95:EDC413 RESERVE FUND
FY15-16 FY15-16 PY16-17 FY16-17 3URREN1FY16-17 CY-PY OF PY BUDGIOF CY BUDG BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED %MENDE[ MONTH YTD CHANGE USED USED REMAINING
4401-00-00 INVESTMENT INCOM 43 170 i6c 160 37 88 135 25.2% 54.9% 72
INVESTMENT EARNI $ 43 $ 170 S 160 $ 160 $ 37 $ 88 $ 135 25.2% 54.9% $ 72
TOTAL REVENUES $ 43 $ 170 S 160 $ 160 $ 37 $ 88 $ 135 25.2% 54.9% $ 72
95:EDC413 RESERVE FUND
FY15-16 FY15-16 -Yl$-1,7 FY16-17 3URREN1FY16-17 CY-PY OF PY BUDGIOF CY BUDG BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ,'.DOPTED %MENDE[ MONTH YTD CHANGE USED USED REMAINING
TRANSFERS $ $ c - $ $ $ $ 0.0% 0.0% $
TOTAL EXPENDITUR $ $ s . $ $ $ $ 0.0% 0.0% $
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
DECEMBER
ECONOMIC DEVELOPMENT CORPORATION FINANCIALS SUMMARY
Budget Amendment
No amendments.
Monthly Information
Sales Taxes received in October and November are accrued back to FY16.
Functional Grant line item - paid out property taxes for H &O and paying out sales taxes for 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
ADDITIONAL INFORMATION
FUND 15-OPERATING FUND (ALL BILLS AND REVENUE RECEIVED IN THIS FUND)
FUND 19-CAPITAL BOND FUND (REMAINING CAPITAL MONEY)
FUND 95- RESERVE FUND FOR DEBT REQUIREMENTS
"YOU'RE HERE. YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
EDC CASH POSITION DECEMBER
FY15-16 FYI 6-17 CURRENT FY16-17
CATEGORY ACTUAL ADOPTED MONTH YTD
BEGINNING CASH BALANCE - FUND 15 $ 90,295 $ 45,406 $ 13,024 $ 45,406
BEGINNING TEXPOOL BALANCE - FUND 15 $ 19 $ - $ - $ -
BEGINNING TEXPOOL BALANCE - FUND 19 $ 29,444 $ 29,529 $ 29,549 $ 29,529
BEGINNING CASH BALANCE - FUND 95 $ 119,962 $ 120,132 $ 120,166 $ 120,132
TOTAL REVENUES $ 627,490 $ 933,227 $ 42,200 $ 91,135
TOTAL EXPENDITURES $ 718,004 $ 803,880 $ 26,799 $ 135,499
CHANGE IN CASH DURING PERIOD $ (44,653) $ 200,099 $ 14,389 $ (17,939)
ENDING CASH BALANCE - FUND 15 $ 45,406 $ 270,559 $ 27,385 $ 27,385
ENDING TEXPOOL BALANCE - FUND 15 $ - $ 19 $ - $ -
ENDING TEXPOOL BALANCE - FUND 19 $ 29,529 $ 4,456 $ 29,560 $ 29,560
ENDING CASH BALANCE - FUND 95 $ 120,132 $ 120,132 $ 120,183 $ 120,183
"YOU'RE HERE. YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
DECEMBER
COMBINED EDC4B FUNDS SUMMARY
FY15-16 FY15-16 FY16-17 FY16-17 CURRENT FY16-17 CY-PY %OFPYBUDGET %OFCYBUDGET BUDGET
CATEGORY YTD ACTUAL ADOPTED AMENDED MONTH YTD CHANGE USED USED REMAINING
BEGINNING FUND BALANCE $ 313,866 $ 313,866 $ 248,862 $ 223,530 $ 163,722 $223,522
AD VALOREM TAXES 1,966 34,335 48,462 48,462 393 1,180 400 5.7% 2.4% 47,282
SALES/BEVERAGE TAXES 33,176 376,545 349,351 349,351 27,446 27,768 (649) 8.8% 7.9% 321,583
INVESTMENT EARNINGS 43 333 260 260 31 95 180 12.9% 36.7% 165
MISCELLANEOUS INCOME 6,969 115,841 435,796 435,796 6,331 38,096 51,676 6.0% 8.7% 397,700
SURPLUS SALES/RENTALS 48,326 100,606 99,358 99,358 7,999 23,996 (30,416) 48.0% 24.2% 75,362
TOTAL REVENUES $ 90,480 $ 627,660 $ 933,227 $ 933,227 $ 42,200 $ 91,135 $ 21,191 14.4% 9.8% $ 842,092
SUPPLIES - 5,110 3,100 3,100 - - - 0.0% 0.0% 3,100
MAINTENANCE 1,945 19,709 95,403 95,403 567 4,923 71,811 9.9% 5.2% 90,480
SUNDRY 39,955 353,786 291,959 291,959 21,659 52,623 91,701 11.3% 18.0% 239,335
DEBT 49,091 166,773 168,600 168,600 4,573 43,043 2,226 29.4% 25.5% 125,557
TRANSFERS 35,959 151,919 154,819 154,819 - 34,909 1,300 23.7% 22.5% 119,909
CAPITAL - 20,707 90,000 90,000 - - (75,000) 0.0% 0.0% 90,000
TOTAL EXPENDITURES $ 126,951 $ 718,004 $ 803,880 $ 803,880 $ 26,799 $135,499 $ 92,038 17.7% 16.9% $ 668,381
REVENUES OVER EXPENDITURES $ (36,471) $ (90,344) $ 129,347 $ 129,347 $ 15,401 $ (44,364)
ENDING FUND BALANCE $ 277,395 $ 223,522 $ 378,209 $ 352,877 $ 179,123 $179,157
FUND BALANCE AS%OFEXP 218.5% 31.1% 47.0% 43.9% 668.4% 132.2%
RESERVE($115,000)REQUIREMENT) $ - $ - $ 115,000 $ - $ - $ -
RESERVE SURPLUS/(SHORTFALL) $ 277,395 $ 223,522 $ 263,209 $ 352,877 $ 179,123 $179,157
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
DECEMBER
15:EDC4BFUND
FY15-16 FY15-16 FY16-17 FY16-17 CURRENT FY16-17 CY-PY %OFPYBUDGET %OFCYBUDGET BUDGET
CATEGORY YTD ACTUAL ADOPTED AMENDED MONTH YTD CHANGE USED USED REMAINING
BEGINNING FUND BALANCE $ 164,460 $ 164,460 $ 99,198 $ 73,861 $ 14,041 $ 73,861
AD VALOREM TAXES 1,966 34,335 48,462 48,462 393 1,180 400 5.7% 2.4% 47,282
SALES/BEVERAGE TAXES 33,176 376,545 349,351 349,351 27,446 27,768 (649) 8.8% 7.9% 321,583
INVESTMENT EARNINGS 13 78 40 40 3 13 - 16.5% 33.4% 27
MISCELLANEOUS INCOME 6,969 115,841 435,796 435,796 6,331 38,096 51,676 6.0% 8.7% 397,700
SURPLUS SALES/RENTALS 48,326 100,606 99,358 99,358 7,999 23,996 (30,416) 48.0% 24.2% 75,362
TOTAL REVENUES $ 90,450 $ 627,405 $ 933,007 $ 933,007 $ 42,171 $ 91,053 $ 21,011 14.4% 9.8% $ 841,954
SUPPLIES - 5,110 3,100 3,100 - - - 0.0% 0.0% 3,100
MAINTENANCE 1,945 19,709 95,403 95,403 567 4,923 71,811 9.9% 5.2% 90,480
SUNDRY 39,955 353,786 291,959 291,959 21,659 52,623 91,701 11.3% 18.0% 239,335
DEBT 49,091 166,773 168,600 168,600 4,573 43,043 2,226 29.4% 25.5% 125,557
TRANSFERS 35,959 151,919 154,819 154,819 - 34,909 1,300 23.7% 22.5% 119,909
CAPITAL - 20,707 90,000 90,000 - - (50,000) 0.0% 0.0% 90,000
TOTAL EXPENDITURES $ 126,951 $ 718,004 803,880 $ 803,880 $ 26,799 $135,499 $ 117,038 17.7% 16.9% $ 668,381
REVENUES OVER EXPENDITURES $ (36,501) $ (90,599) $ 129,127 $ 129,127 $ 15,373 $ (44,446)
ENDING FUND BALANCE $ 127,959 $ 73,861 $ 228,324 $ 202,987 $ 29,414 $ 29,414
FUND BALANCE AS%OFEXP 100.8% 10.3% 28.4% 25.3% 109.8% 21.7%
RESERVE(NO REQUIREMENT) $ - $ - $ - $ - $ - $ -
RESERVE SURPLUS/(SHORTFALL) $ 127,959 $ 73,861 $ 228,324 $ 202,987 $ 29,414 $ 29,414
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
DECEMBER
15:EDC4BFUND
FY15-16 FY15-16 FY16-17 FY16-17 CURRENT FY16-17 CY-PY %OFPYBUDGET %OFCYBUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED AMENDED MONTH YTD CHANGE USED USED REMAINING
4002-00-00 MMDTAX-CURRENTYEAR 1,966 34,335 48,462 48,462 393 1,180 400 5.7% 2.4% 47,282
ADVALOREM TAXES $ 1,966 $ 34,335 $ 48,462 $ 48,462 $ 393 $ 1,180 $ 400 5.7% 2.4% $ 47,282
4081-00-00 SALES TAX 33,176 376,545 349,351 349,351 27,446 27,768 (649) 8.8% 7.9% 321,583
SALES/BEVERAGE TAXES $ 33,176 $376,545 $ 349,351 $349,351 $ 27,446 $27,768 $ (649) 8.8% 7.9% $ 321,583
4401-00-00 INVESTMENT INCOME 13 78 40 40 3 13 - 16.5% 33.4% 27
INVESTMENT EARNINGS $ 13 $ 78 $ 40 $ 40 $ 3 $ 13 $ - 16.5% 33A% $ 27
4409-00-00 MISCELLANEOUS INCOME 6,969 115,841 435,796 6,331 38,096 51,676 6.0% 8.7% 397,700
MISCELLANEOUS INCOME $ 6,969 $115,841 5 435,796 $435,796 $ 6,331 $38,096 $ 51,676 6.0% 8.7% $ 397,700
4805-00-00 RENTAL FEES-SHOPPING CENTER 48,015 98,580 °,;5i- 98,612 7,938 23,815 (22,662) 48.7% 241% 74,797
4806-00-00 RENTAL INSURANCE 311 2,026 746 60 180 (7,754) 15.3% 24.2% 565
SURPLUS SALES/RENTALS $ 48,326 $100,606 < 99,358 $ 99,358 $ 7,999 $23,996 $ (30,416) 48.0% 24.2% $ 75,362
TOTAL REVENUES $ 90,450 $627,405 S 933,O07 $933,007 $ 42,171 $91,053 $ 21,011 14.4% 9.8% $ 841,954
TOTAL REVENUES(EXCLUDING INTEREST/TRANSFERS) $ 90,437 $627,327 $ 932,967 $932,967 $ 42,169 $91,039 $ 21,011
10%ADMIN CHARGE-GENERAL FUND �_,�. x,197 2,101
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
DECEMBER
15:EDC4BFUND
01:ADMINISTRATION
FY15-16 FY15-16 FY16-17 FY16-17 CURRENT FY16-17 CY-PY %OFPYBUDGET %OFCYBUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED AMENDED MONTH YTD CHANGE USED USED REMAINING
5240-01-00 PRINTED SUPPLIES 5,110 3,000 3,000 0.0% 0.0% 31000
5260-01-00 GENERAL OFFICE SUPPLIES - 50 50 0.0% 0.0% 50
5261-01-00 POSTAGE - 50 50 0.0% 0.0% 50
SUPPLIES $ $ 5,110 $ 3,100 $ 3,100 $ $ $ - 0.0% 0.0% $ 3,100
5501-01-00 ADVERTISING 210 2,200 2,200 1,000 0.0% 0.0% 2,200
5510-01-00 ASSOCDUES/PUBLICATIONS 1,236 5,356 5,320 5,320 1,300 23.1% 0.0% 5,320
5525-01-00 TRAINING/SEMINARS - 525 250 250 - 0.0% 0.0% 250
5565-01-00 LEGAL SERVICES 5,662 7,000 7,000 500 6,000 0.0% 7.1% 6,500
5567-01-00 AUDITSERVICES 2,000 2,250 2,250 - 250 0.0% 0.0% 2,250
5570-01-00 SPECIAL SERVICES 18,730 140,283 68,650 68,650 14,515 28,915 (3,950) 13.4% 42.1% 39,735
5574-01-00 FILING FEES - - - - 40 40 #DIV/0! #DIV/0! (40)
5575-01-00 EQUIPMENT RENTAL - - - - #DIV/0! #DIV/0! -
5578-01-00 TRAVEL - 100 100 0.0% 0.0% 100
5580-01-00 ENGINEERING SERVICES - 55,070 6,000 6,000 5,000 0.0% 0.0% 6,000
5595-01-00 ADMIN CHARGE-GENERAL FUND 8,017 56,796 93,297 93,297 4,217 9,104 2,101 14.1% 9.8% 84,193
5610-01-00 VISUAL GRANT - 11,122 50,000 50,000 - - 50,000 0.0% 0.0% 50,000
5615-01-00 FUNCTIONALGRANT 1,754 51,850 32,000 32,000 1,373 2,916 32,000 3.4% 9.1% 29,084
SUNDRY $ 29,738 $ 328,873 $ 267,067 $ 267,067 $ 20,145 $41,475 $ 93,701 9.0% 15.5% $ 146,508
5800-01-00 LAND - 1,968 - - - - - 0.0% 0.0% -
5813-01-00 KENNEDALE ENTRANCE SIGN - 0.0% 0.0%
5820-01-00 BUILDING IMPROVEMENT 0.0% 0.0%
5875-01-00 CONSTRUCTION - 0.0% 0.0%
CAPITAL $ - $ 1,968 $ $ - $ - $ - $ - 0.0% #DIV/0! $ -
TOTAL EXPENDITURES $ 29,738 $ 335,951 $ 270,167 $ 270,167 $ 20,145 $41,475 $ 93,701 8.9% 15.4% $ 149,608
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
DECEMBER
15:EDC4BFUND
01:ADMINISTRATION
03:DEBT SERVICE
FY15-16 FY15-16 FY16-17 FY16-17 CURRENT FY16-17 CY-PY %OFPYBUDGET %OFCYBUDGET BUDGET
ACCOUNT ACCOUNTNAME YTD ACTUAL ADOPTED AMENDED MONTH YTD CHANGE USED USED REMAINING
5643-01-03 2007$1.2M TAX BOND-INTEREST 31,034 62,135 58,728 58,728 29,325 (3,476) 49.9% 49.9% 29,402
5644-01-03 2007$1.2M TAX BOND-PRINCIPAL - 50,000 55,000 55,000 - 5,000 0.0% 0.0% 55,000
5645-01-03 2011$17M TX LEVERAGE-INT 4,721 15,930 15,672 15,672 1,339 4,046 (126) 29.6% 25.8% 11,626
5646-01-03 2011$13M TX LEVERAGE-PRI 13,336 38,709 39,200 39,200 3,233 9,672 827 34.5% 24.7% 29,528
DEBT $ 49,091 $ 166,773 $ 168,600 $ 168,600 $ 4,573 $43,043 $ 2,226 29.4% 25.5% $ 125,557
5702-01-03 TRANSFER OUT-DEBT SERVICE FUND 35,959 151,919 154,819 154,819 - 34,909 1,300 23.7% 22.5% 119,909
TRANSFER $ 35,959 $ 151,919 $ 154,819 $ 154,819 $ - $34,909 $ 1,300 23.7% 22.5% $ 119,909
TOTAL EXPENDITURES $ 85,050 $ 318,692 $ 323,419 $ 323,419 $ 4,573 $77,953 $ 3,526 26.7% 24.1% $ 245,466
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
DECEMBER
15:EDC4BFUND
02:TOWN SHOPPING CENTER
FY15-16 FY15-16 "'Y16-17 FY16-17 CURRENT FY16-17 CY-PY %OFPYBUDGET %OFCYBUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED AMENDED MONTH YTD CHANGE USED USED REMAINING
5403-02-00 BUILDING MAINTENANCE 1,945 19,709 +03 95,403 567 4,923 71,811 9.9% 5.2% 90,480
MAINTENANCE $ 1,945 $ 19,709 $ 95,40? $ 95,403 $ 567 $ 4,923 $ 71,811 9.9% 5.2% $ 90,480
5530-02-00 ELECTRIC SERVICES 1,249 5,401 GGO 5,000 398 1,293 - 23.1% 25.9% 3,707
5545-02-00 INSURANCE-PROPERTY 6,121 6,121 6,500 6,500 - 6,507 (2,000) 100.0% 100.1% (7)
5570-02-00 SPECIAL SERVICES 2,848 13,392 39i 13,392 1,116 3,348 21.3% 25.0% 10,044
SUNDRY $ 10,218 $ 24,914 24,892 $ 24,892 $ 1,514 $11,148 $ (2,000) 41.0% 44.8% $ 13,744
TOTAL EXPENDITURES $ 12,163 $ 44,622 120;295 $ 120,295 $ 2,081 $ 16,072 $ 69,811 27.3% 13.4% $ 104,224
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
DECEMBER
15:EDC4BFUND
03:TOWN CENTER REDEVELOPMENT
FY15-16 FY15-16 FY16-17 FY16-17 CURRENT FY16-17 CY-PY %OFPYBUDGET %OFCYBUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED AMENDED MONTH YTD CHANGE USED USED REMAINING
5580-03-00 ENGINEERING SERVICES 10,000 10,000 0.0% 0.0% 10,000
5847-03-00 CONSTRUCTION 80,000 80,000 0.0% 0.0% 80,000
CAPITAL $ $ $ 90,000 $ 90,000 $ $ $ 0.0% 0.0% $ 90,000
TOTAL EXPENDITURES $ $ $ 90,000 $ 90,000 $ $ $ 0.0% 0.0% $ 90,000
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
DECEMBER
15:EDC4BFUND
04:TEXAS LEVERAGE PROGRAM
FY15-16 FY15-16 FYlC=17 FY16-17 CURRENT FY16-17 CY-PY %OF PY BUDGET %OFCYBUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED AMENDED MONTH YTD CHANGE USED USED REMAINING
5800-04-00 LAND 18,739 (50,000) 0.0% 0.0%
CAPITAL $ $ 18,739 $ $ $ $ (50,000) 0.0% 0.0% $
TOTAL EXPENDITURES $ $ 18,739 $ $ $ $ (50,000) 0.0% 0.0% $
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
DECEMBER
19:EDC413 CAPITAL BOND FUND
FY15-16 FY15-16 FY16-17 CURRENT FY16-17 CY-PY %OFPYBUDGET %OFCYBUDGET BUDGET
CATEGORY YTD ACTUAL AMENDED MONTH YTD CHANGE USED USED REMAINING
BEGINNING FUND BALANCE $ 29,444 $ 29,444 $ 29,529 $ 29,548 $29,529
INVESTMENT EARNINGS 10 85 60 11 31 45 11.60/6 51.30/6 29
TOTAL REVENUES $ 10 $ 85 $ 60 $ 11 $ 31 $ 45 11.6% 51.3% $ 29
CAPITAL - - - - - (25,000) 0.0% 0.00/6 -
TOTAL EXPENDITURES $ - $ - $ - $ - $ - $ (25,000) 0.0% 0.0% $
REVENUES OVER EXPENDITURES $ 10 $ 85 $ 60 $ 11 $ 31
ENDING FUND BALANCE $ 29,454 $ 29,529 $ 29,589 $ 29,560 $29,560
FUND BALANCE AS% EXP N/A N/A N/A N/A N/A
RESERVE(NO REQUIREMENT) $ - $ - $ - $ - $ -
RESERVE SURPLUS/(SHORTFALL) $ 29,454 $ 29,529 $ 29,589 $ 29,560 $29,560
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
DECEMBER
19:EDC4B CAPITAL BOND FUND
FY15-16 FY15-16 FY16-17 FY16-17 CURRENT FY16-17 CY-PY %OFPYBUDGET %OFCYBUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL 00PTED AMENDED MONTH YTD CHANGE USED USED REMAINING
4401-00-00 INVESTMENT INCOME 10 85 60 60 11 31 45 11.6% 51.3% 29
INVESTMENT EARNINGS $ 10 $ 85 6t3 $ 60 $ 11 $ 31 $ 45 11.6% 51.3% $ 29
TOTAL REVENUES $ 10 $ 85 t' 60 $ 60 $ 11 $ 31 $ 45 11.6% 51.3% $ 29
19:EDC4B CAPITAL BOND FUND
01:TOWN CENTER REDEVELOPMENT
FY15-16 FY15-16 T FY16-17 CURRENT FY16-17 CY-PY %OFPYBUDGET %OFCYBUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL a>cl,D AMENDED MONTH YTD CHANGE USED USED REMAINING
5847-01-00 CONSTRUCTION (25,000) 0.0% 0.0%
CAPITAL $ $ $ $ $ $ (25,000) 0.0% 0.0% $
TOTAL EXPENDITURES $ $ S $ $ $ $ (25,000) 0.0% 0.0% $
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
DECEMBER
95:EDC4B RESERVE FUND
FY15-16 FY15-16 FY16-17 FY16-17 CURRENT FY16-17 CY-PY %OF PY BUDGET %OFCY BUDGET BUDGET
CATEGORY YTD ACTUAL ADOPTED AMENDED MONTH YTD CHANGE USED USED REMAINING
BEGINNING FUND BALANCE $ 119,962 $ 119,962 $ 120,141 $ 120,141 $ 120,132 $ 120,132
INVESTMENT EARNINGS 20 170 160 160 17 51 135 11.9% 32.0% 109
TOTAL REVENUES $ 20 $ 170 $ 160 $ 160 $ 17 $ 51 $ 135 11.9% 32.0% $ 109
TOTAL EXPENDITURES $ - $ - $ - $ - $ - $ - $ - 0.0% 0.0% $ -
REVENUES OVER EXPENDITURES $ 20 $ 170 $ 160 $ 160 $ 17 $ 51
ENDING FUND BALANCE $ 119,982 $ 120,132 $ 120,301 $ 120,301 $ 120,149 $ 120,184
FUND BALANCEAS%OFEXP N/A N/A N/A N/A N/A N/A
RESERVE($112,606 REQUIREMENT) $ 112,606 $ 112,606 $ 112,606 $ 112,606 $ 112,606 $ 112,606
RESERVE SURPLUS/(SHORTFALL) $ 7,376 $ 7,526 $ 7,695 $ 7,695 $ 7,543 $ 7,578
"YOU'RE HERE.YOUR HOME."
CITY OF KENNEDALE
ANNUAL PROGRAM OF SERVICES
DECEMBER
95:EDC4B RESERVE FUND
FY15-16 FY15-16 �Y16-17 FY16-17 CURRENT FY16-17 CY-PY %OF PY BUDGET %OFCY BUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL ^CPT', AMENDED MONTH YTD CHANGE USED USED REMAINING
4401-00-00 INVESTMENT INCOME 20 170 160 17 51 135 11.9% 32.0% 109
INVESTMENT EARNINGS $ 20 $ 170 16" $ 160 $ 17 $ 51 $ 135 11.9% 32.0% $ 109
TOTAL REVENUES $ 20 $ 170 '> $ 160 $ 17 $ 51 $ 135 11.9% 32.0% $ 109
95:EDC4B RESERVE FUND
FY15-16 FY15-16 ",136- FY16-17 CURRENT FY16-17 CY-PY %OF PY BUDGET %OFCY BUDGET BUDGET
ACCOUNT ACCOUNT NAME YTD ACTUAL 1,'; .'; i1 AMENDED MONTH YTD CHANGE USED USED REMAINING
TRANSFERS $ $ $ $ $ $ 0.0% 0.0% $
TOTAL EXPENDITURES $ $ $ $ $ $ 0.0% 0.0% $
"YOU'RE HERE.YOUR HOME."
ic
KENNEDALE
Kennedale Economic
Development Corporation
www.cityofkennedale.com
STAFF REPORT TO THE BOARD OF DIRECTORS
Date: February 28, 2017
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, 2016.
II. Originated by:
Finance Director, 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, 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. 12016 EDC Annual Financials k016 EDC Annual Financials. df
P. Re uired Comminication P016 Required Communication.pdf
KENNEDALE EDC
FINANCIAL REPO
I
KENNEDALE ECONOMIC
DEVELOPMENT CORPORATION
ANNUAL FINANCIAL REPORT
SEPTEMBER 30, 2016
KENNEDALE ECONOMIC DEVELOPMENT CORPORATION
TABLE OF CONTENTS
SEPTEMBER 30, 2016
Page
Number
Independent Auditors' 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
Notes to Financial Statements............................................................................................. 9 — 15
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in
Fund Balances—Budget and Actual—General Fund...................................................... 16
THIS PAGE LEFT BLANK INTENTIONALLY
IV47 I
PATTILLO , BROWN & DILL, 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, 2016, 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.
1
WACO,TX HOUSTON,TX TEMPLE,TX ,AI C PA
401 West Highway 6 281.671.6850 254.791.3460
Waco,Texas 76710
254.772.4901 RIO GRANDE VALLEY,TX ALBUQUERQUE,NM Governmental Audit
www.phhcpa.com 956.544.7778 505.266.5904 Quality Center
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.
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, 2016, 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, and budgetary information on pages 3 through 6 and page 16 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.
Waco, Texas
February 21, 2017
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 30,2016.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 $4,460,872.
• The Kennedale Economic Development Corporation's net position decreased by
$190,066. The decrease was due to decreases in sales tax revenue and rental income.
This was offset by the decreases in overall expenses.Net position was further decreased
by a prior period adjustment for land sold in a prior year.
• As of the close of the current fiscal year, the Kennedale Economic Development
Corporation's governmental fund reported an ending fund balance of $223,520, a
decrease of$90,345 in comparison with the prior year.The decrease is primarily related
to the decrease in sales tax revenue and rental income offset by increased miscellaneous
income and decreased expenditures in economic development.
• At the end of the current fiscal year, the restricted fund balance for the General Fund
was $223,520.
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
$4,460,872 at the close of the most recent fiscal year.
KENNEDALE ECONOMIC DEVELOPMENT CORPORATION'S NET POSITION
Governmental Activities
2016 2015
Current assets $ 279,453 $ 329,468
Capital assets 5,571,489 6,171,472
Total assets 5,850,942 6,500,940
Current liabilities 80,190 41,296
Noncurrent liabilities 1,309,880 1,398,589
Total liabilities 1,390,070 1,439,885
Net position:
Net investment in capital assets 4,261,609 4,772,883
Unrestricted 199,263 288,172
Total net position $ 4,460,872 $ 5,061,055
The Corporation's net position decreased by $190,066 during the current fiscal year. This decrease is
primarily due to decreases in sales tax revenue,rental income, and a prior period adjustment for land sold
in a prior year. This was offset by the decreases in overall expenses.
KENNEDALE ECONOMIC DEVELOPMENT CORPORATION'S
CHANGES IN NET POSITION
Governmental Activities
2016 2015
General Revenues:
Sales tax $ 410,880 $ 496,083
Rental 100,606 116,845
Miscellaneous 59,999 57,855
Investment earnings 333 112
Total general revenues 571,818 670,895
Expenses:
Economic development:
Administration 533,335 568,814
Payment to City for debt 151,919 153,519
Interest and other 76,630 81,213
Total expenses 761,884 803,546
Changes in net position ( 190,066) ( 132,651)
Net position,beginning 5,061,055 5,220,834
Prior period adjustment ( 410,117) ( 27,128)
Net position,ending $ 4,460,872 $ 5,061,055
5
General Fund. The Corporation's general revenues decreased by $43,235 or 6.44% from last year. The
decrease was due to a decrease in sales tax revenue and rental income. Sales tax revenue decreased by
$85,203 or 17.18% to $410,880.
General Fund budgetary highlights. The actual expenditures for the year were $718,005, which was
$28,392 under budget.
For fiscal year 2016,the actual revenues were$627,660,as compared to the budgeted amount of$649,854.
Contributing to the variance was lower than anticipated rental revenue ($29,168 less than the budget).
With revenues lower than expectation and expenditures below appropriations, the fund balance in the
General Fund decreased by $90,345, which was $6,198 higher than the final budgeted decrease.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The investment in capital assets for its governmental as of September 30, 2016, amounts
to$4,261,609(net of accumulated depreciation). This investment in capital assets includes land,buildings,
improvements and infrastructure.
Additional information on the capital assets can be found in the notes to the financial statements on page
15.
Long-term debt. At year-end, the KEDC had revenue bonds and a loan in the amount of$845,000 and
$464,880,respectively.
Additional information on the long-term debt can be found in the notes to the financial statements on page
16.
DISCUSSION OF CURRENTLY KNOWN FACTS, DECISIONS OR CONDITIONS IN FISCAL
YEAR 2016
The Kennedale Economic Development Corporation's projects for the fiscal year and beyond include: 1)
Opening a "sit-down" restaurant in the Oak Crest development, 2) Building a hotel in the Oak Crest
development, 3) Continuing the development of the Kennedale Town Center, and 4) 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 Finance Director, Kennedale Economic Development Corporation, 405 Municipal Dr.,
Kennedale, Texas 76060.
6
BASIC
FINANCIAL STATEMENTS
THIS PAGE LEFT BLANK INTENTIONALLY
KENNEDALE ECONOMIC DEVELOPMENT CORPORATION
STATEMENT OF NET POSITION
AND GOVERNMENTAL FUND BALANCE SHEET
SEPTEMBER 30,2016
Statement of
General Adjustments Net Position
ASSETS
Cash and investments $ 205,067 $ - $ 205,067
Sales taxes receivable 68,301 - 68,301
Accounts receivable 6,085 - 6,085
Capital assets:
Land - 1,085,147 1,085,147
Buildings and improvements - 5,945,769 5,945,769
Construction in progress - - -
Less: accumulated depreciation - ( 1,459,427) ( 1,459,427)
Total capital assets - 5,571,489 5,571,489
Total assets 279,453 5,571,489 5,850,942
LIABILITIES
Accounts payable 41,034 - 41,034
Accrued interest payable - 24,257 24,257
Customer deposits 14,899 - 14,899
Noncurrent liabilities:
Due within one year - 94,200 94,200
Due in more than one year - 1,215,680 1,215,680
Total liabilities 55,933 1,334,137 1,390,070
FUND BALANCE/NET POSITION
Fund balance:
Restricted for economic development 223,520 ( 223,520) -
Total fund balance 223,520 ( 223,520) -
Total liabilities and fund balance $ 279,453
Net position:
Net investment in capital assets 4,261,609 4,261,609
Restricted for economic development 199,263 199,263
Total net position $ 4,460,872 $ 4,460,872
The accompanying notes are an integral
part of these financial statements. 7
THIS PAGE LEFT BLANK INTENTIONALLY
KENNEDALE ECONOMIC DEVELOPMENT CORPORATION
STATEMENT OF ACTIVITIES
AND GOVERNMENTAL FUND REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED SEPTEMBER 30,2016
Statement
General Adjustments of Activities
Expenditures/expenses:
Current:
Economic development $ 399,312 $ 134,023 $ 533,335
Payment to City for debt 151,919 - 151,919
Debt service:
Principal 88,709 ( 88,709) -
Interest and fiscal charges 78,065 ( 1,435) 76,630
Total expenditures/expenses 718,005 43,879 761,884
General revenues:
Sales taxes 410,880 - 410,880
Rental 100,606 - 100,606
Miscellaneous 115,841 ( 55,842) 59,999
Investment earnings 333 - 333
Total general revenues 627,660 ( 55,842) 571,818
Excess of revenues over expenditures ( 90,345) ( 99,721) ( 190,066)
Net change in fund balance ( 90,345) 90,345 -
Change in net position - ( 190,066) ( 190,066)
Fund balance/net position:
Beginning 313,865 4,747,190 5,061,055
Prior period adjustment - ( 410,117) ( 410,117)
Ending $ 223,520 $ 4,237,352 $ 4,460,872
The accompanying notes are an integral
part of these financial statements. 8
THIS PAGE LEFT BLANK INTENTIONALLY
KENNEDALE ECONOMIC DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,2016
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.
9
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 Fund Balance
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. Investment income on investments is allocated to the Corporation based upon its
pro rata participation in the pool.
10
Investments for the City are reported at fair value, except for the position in investment
pools. The City's investment in pools are 2a7-like pools and are reported at the net asset
value per share (which approximates fair value) even though it is calculated using the
amortized cost method. 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
will, and does, operate in a manner consistent with the SEC's Rule 2a7 of the Investment
Company Act of 1940.
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.
Estimates
The preparation of financial statements, in conformity with generally accepted accounting
principles, requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures of contingent liabilities at the date of the
financial statements and the reported amounts of revenue and expenses during the reporting
period. Actual amounts could differ from those estimates.
11
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.
3. DETAIL NOTES ON FUNDS AND ACTIVITIES
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
12
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, 2016, 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.
At September 30, 2016, the carrying amounts of the Corporation's investments were as
follows:
Balances in public funds investment pools:
State Treasurer's Investment Pool(TexPool) $ 205,067
$ 205,067
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.
13
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. Agreement with City
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.
D. Capital Assets
Capital asset activity for the year ended September 30, 2016, was as follows:
Primary Government
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets,not being depreciated:
Land $ 1,457,391 $ 93,716 $ 465,960 $ 1,085,147
Total capital assets not being depreciated 1,457,391 93,716 465,960 1,085,147
Capital assets,being depreciated:
Buildings 4,680,139 38 .30 - 4,718,369
Improvements 1,017,693 - - 1,017,693
Infrastructure 184,679 25,028 - 209,707
Total capital assets being depreciated 5,882,511 63,258 - 5,945,769
Less accumulated depreciation:
Buildings 936,936 235,918 - 1,172,854
Improvements 227,800 50,885 - 278,685
Infrastructure 3,694 4,194 - 7,888
Total accumulated depreciation 1,168,430 290,997 - 1,459,427
Total capital assets,being depreciated,net 4,714,081 ( 227,739) - 4,486,342
Governmental activities capital assets,net $ 6,171,472 $( 134,023) $ 465,960 $ 5,571,489
14
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. During the fiscal year 2011, $1,047,000 of the loan issued
was returned to the lender netting a balance of $653,000. 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 $ 895,000 $ - $ 50,000 $ 845,000 $ 55,000
Texas leverage fund loan 503,589 - 38,709 464,880 39,200
Governmental activity
Long-termliabilities $ 1,398,589 $ - $ 88,709 $ 1,309,880 $ 94,200
Annual debt service requirements to maturity for the revenue bonds are as follows:
Year Fading Governmental Activities
September 30, Principal Interest
2017 $ 94,200 $ 74,400
2018 100,594 69,183
2019 102,038 63,570
2020 108,533 57,904
2021 115,081 51,838
2022-2026 680,630 154,044
2027-2031 108,804 7,311
Total $ 1,309,880 $ 478,250
F. Prior Period Adiustment
Net position at the beginning of the year was restated to reflect the disposal of land in a prior
period.
15
THIS PAGE LEFT BLANK INTENTIONALLY
REQUIRED SUPPLEMENTARY
INFORMATION
THIS PAGE LEFT BLANK INTENTIONALLY
KENNEDALE ECONOMIC DEVELOPMENT CORPORATION
COMPONENT UNIT-GENERAL FUND
SCHEDULE OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30,2016
(With Comparative Actual Amounts for the Year Ended September 30,2015)
2016 2015
Variance with
Final Budget
Budgeted Amounts Actual Positive Actual
Original Final Amounts (Negative) Amounts
REVENUES
Sales tax $ 398,062 $ 405,000 $ 410,880 $ 5,880 $ 496,083
Rental income 129,774 129,774 100,606 ( 29,168) 116,845
Miscellaneous income 384,120 115,000 115,841 841 57,855
Investment earnings 80 80 333 253 112
Total revenues 912,036 649,854 627,660 ( 22,194) 670,895
EXPENDITURES
Current:
Economic development 391,950 426,504 399,312 27,192 409,805
Payment to city for debt 153,519 153,519 151,919 1,600 153,519
Debt Service:
Principal 88,373 88,373 88,709 ( 336) 87,147
Interest and fiscal charges 78,001 78,001 78,065 ( 64) 82,649
Total expenditures 711,843 746,397 718,005 28,392 733,120
NET CHANGE IN FUND BALANCES 200,193 ( 96,543) ( 90,345) 6,198 ( 62,225)
FUND BALANCES,BEGINNING 313,865 313,865 313,865 - 376,090
FUND BALANCES,ENDING $ 514,058 $ 217,322 $ 223,520 $ 6,198 $ 313,865
16
THIS PAGE LEFT BLANK INTENTIONALLY
FV4 _I
PATTILLO , BROWN & HILL, L . L . P .
CERTIFIED PUBLIC ACCOUNTANTS ■ BUSINESS CONSULTANTS
To the Board of Directors
of Kennedale Economic Development Corporation
Kennedale, Texas
We have audited the financial statements of the Kennedale Economic Development Corporation
as of and for the year ended September 30, 2016, and have issued our report thereon date February 21,
2017. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated August 25,2016, our responsibility, as described
by professional standards,is to form and express opinions about whether the financial statements that have
been prepared by management with your oversight are presented fairly, in all material respects, in
accordance with accounting principles generally accepted in the United States of America. Our audit of
the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to
obtain reasonable, rather than absolute, assurance about whether the financial statements are free of
material misstatement. An audit of financial statements includes consideration of internal control over
financial reporting as a basis for designing 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 over
financial reporting.Accordingly, as part of our audit,we considered the internal control of the Corporation
solely for the purpose of determining our audit procedures and not to provide any assurance concerning
such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to
communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously
communicated to you.
WACO,TX HOUSTON,TX TEMPLE,TX AI C 1 W
401 West Highway 6 281.671.6850 254.791.3460 v
Waco,Texas 76710
254.772.4901 RIO GRANDE VALLEY,TX ALBUQUERQUE,NM Governmental Audit
www.phhcpa.com 956.544.7778 505.266.5904 Quality Center
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, and, as appropriate, our firm have complied with all
relevant ethical requirements regarding independence.
As a part of the engagement we assisted in preparing the financial statements, and related notes to
the financial statements of the Corporation in conformity with U.S. generally accepted accounting
principles based on information provided by you. These nonaudit services do not constitute an audit under
Government Auditing Standards and such services were not conducted in accordance with Government
Auditing Services.
In order to ensure we maintain our independence for performing these nonaudit services certain
safeguards were applied to this engagement.Management assumed responsibility for the financial statements
and related notes to the financial statements and any other nonaudit services we provided. Management
acknowledged in the management representation letter our assistance with the preparation of the financial
statements and related notes to the financial statements and that these items were reviewed and approved prior
to their issuance and accepted responsibility for them. Further, the nonaudit services were oversaw by an
individual within management that has the suitable skill, knowledge, or experience; evaluated the adequacy
and results of the services; and accepted responsibility for them.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary
of the significant accounting policies adopted by the Corporation is included in Note I to the financial
statements. No matters have come to our attention that would require us, under professional standards, to
inform you about (1) the methods used to account for significant unusual transactions and (2) the effect
of significant accounting policies in controversial or emerging areas for which there is a lack of
authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and
are based on management's current judgments. Those judgments are normally based on knowledge and
experience about past and current events and assumptions about future events. Certain accounting
estimates are particularly sensitive because of their significance to the financial statements and because of
the possibility that future events affecting them may differ markedly from management's current
judgments.
The most sensitive accounting estimates affecting the financial statements are:
Management's estimate of the useful lives of capital assets is based on the expected lifespan of the
asset in accordance with standard guidelines. We evaluated the key factors and assumptions used to
develop the estimate of useful lives in determining that it is reasonable in relation to the financial
statements taken as a whole and in relation to the applicable opinion units.
2
Management's estimate of the net pension liability is based on actuarial assumptions which are
determined by the demographics of the plan and future projections that the actuarial makes based on
historical information of the plan and the investment market. We evaluated the key factors and
assumptions used to develop the net pension liability and determined that it is reasonable in relation to the
basic financial statements taken as a whole and in relation to the applicable opinion units.
Management's estimate of the allowance for uncollectible accounts is based on historical
collection rates. We evaluated the key factors and assumptions used to develop the estimates listed above
in determining that they are reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The most sensitive disclosures affecting the
Corporation's financial statements relate to depreciation of capital assets. The disclosures in the financial
statements are neutral, consistent, and clear.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance
of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known
and likely misstatements identified during the audit, other than those that we believe are trivial, and
communicate them to the appropriate level of management. Further, professional standards require us to
also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes
of transactions, account balances or disclosures, and the financial statements as a whole and each
applicable opinion unit. Management has corrected all identified misstatements.
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit procedures.
None of the misstatements identified by us as a result of our audit procedures and corrected by
management were material, either individually or in the aggregate, to the financial statements taken as a
whole or applicable opinion units.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or
auditing matter, which could be significant to the Corporation's financial statements or the auditor's
report. No such disagreements arose during the course of the audit.
3
Representations Requested from Management
We have requested certain written representations from management, which are included in the
management representation letter dated February 21, 2017.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management informed us that, and to our knowledge, there were no consultations
with other accountants regarding auditing and accounting matters.
Other Significant Matters,Findings, or Issues
In the normal course of our professional association with the Corporation, we generally discuss a
variety of matters, including the application of accounting principles and auditing standards, operating
and regulatory conditions affecting the entity,and operational plans and strategies that may affect the risks
of material misstatement. None of the matters discussed resulted in a condition to our retention as the
Corporation's auditors.
This report is intended solely for the information and use of the Corporation Board of Directors
and management of the Kennedale Economic Development Corporation and is not intended to be and
should not be used by anyone other than these specified parties.
r
P0,4: 10/�" 6 AA , L.L
Waco, Texas
February 21, 2017
4
ic
KENNEDALE
Kennedale Economic
Development Corporation
www.cityofkennedale.com
STAFF REPORT TO THE BOARD OF DIRECTORS
Date: February 28, 2017
Agenda Item No: REGULAR ITEMS - C.
I. Subject:
Discuss and consider approval for the purchase and installation of a "For Sale" sign at 1109 W.
Kennedale Parkway
II. Originated by:
III. Summary:
Economic Development Corporation Director Jack Thompson will provide information regarding the
proposed sale and sign for property located at 1109 W. Kennedale Parkway.
IV. Recommendation:
Approve
V. Alternative Actions:
VI. Attachments:
1. ISign Quotes IFor Sale Sign Quotes.pdf
For Sale Sign Quotes
Real Estate Media
Design, production and installation of 4'x8' sign
• Single side - $350.00
• 2 side V-shape sign $550.00
Fort Worth HighTech Signs Co.
Design, production and installation of 4'x8' sign
• Single side sign - $390
• 2 side V-shape sign -$595
ic
KENNEDALE
Kennedale Economic
Development Corporation
www.cityofkennedale.com
STAFF REPORT TO THE BOARD OF DIRECTORS
Date: February 28, 2017
Agenda Item No: STAFF ANNOUNCEMENTS/REPORTS - A.
I. Subject:
TownCenter
B. Chamber of Commerce Report
II. Originated by:
Bob Hart
III. Summary:
The Director will provide an update on these items.
• TownCenter
• Chamber of Commerce 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 28, 2017
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. Hospitality Project
2. Oak Crest Development
II. Originated by:
III. Summary:
IV. Recommendation:
V. Alternative Actions:
VI. Attachments: