HomeMy WebLinkAboutColleyville Economic Development Corporation (CEDC)-Agenda Packets-8/24/2004
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PUBLIC NOTICE
ON TUESDAY, AUGUST 24, 2004, AT 6:45 P.M., IN THE CITY COUNCIL
CHAMBERS, 100 MAIN STREET, THE COLLEYVILLE ECONOMIC DEVELOPMENT
CORPORATION BOARD OF DIRECTORS WILL HOLD A MEETING FOR THE
FOLLOWING PURPOSE:
1. CALL TO ORDER
CONSENT:
2. CONSIDERATION OF CONSENT RESOLUTION R-04-61 - CONSENT ITEMS:
a. Approval of minutes of the Colleyville Economic Development Corporation
Board of Directors meeting held September 9,2003
PUBLIC HEARINGS:
3. READING AND PUBLIC HEARING - RESOLUTION R-04-62 - Appointing a
Colleyville Economic Development Corporation President and Vice President
4. READING AND PUBLIC HEARING - RESOLUTION R-04-63 - Adopting the
Economic Development Capital Improvement Program (EDCIP) for 2005-2009
5. READING AND PUBLIC HEARING - RESOLUTION R-04-64 - Adopting the
Fiscal Year 2005 Budget
ACTION ITEMS:
6. DISCUSSION AND CONSIDERATION OF THE COLLEYVILLE ECONOMIC
DEVELOPMENT CORPORATION INVESTMENT POLICY
REPORTS:
7. ANNUAL ACTIVITY REPORT
8. ANNUAL INVESTMENT REPORT
100 MAIN STREETCOLLEYVILLE, TEXAS 76034 (817) 503-1000
CEDC AGENDA
AUGUST 24, 2004
9. READING AND PUBLIC HEARING - RESOLUTION R-04-65 - Discussion and
consideration of a Resolution ratifying Corporate Board action for the meeting of
August 24, 2004
ADJOURNMENT:
10. ADJOURNMENT
I certify that the above notice was posted on the Bulletin Board at City Hall on August
20,2004, at 5:00 p.m.
cJ "?y,E~~
Cynthia Singleton, TRMC
City Secretary
RESOLUTION R-04-61
A RESOLUTION APPROVING BOARD ACTION
UNDER CONSENT ITEMS AT THE COLLEYVILLE ECONOMIC DEVELOPMENT
CORPORATION MEETING OF AUGUST 24, 2004
WHEREAS, Board has taken action on certain items on the agenda under Consent
Items,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION:
Sec. 1:
THAT the agenda decisions approved by the Economic Development
Corporation Board of Directors action under Consent Items as follows are
hereby adopted:
a.
THAT the minutes of the Colleyville Economic Development Corporation
Board of Directors meeting held September 9, 2003, are hereby approved.
AND IT IS SO RESOLVED.
APPROVED AND ADOPTED, this August 24, 2004.
COLLEYVILLE ECONOMIC
DEVELOPMENT CORPORATION
President
ATTEST:
Cynthia Singleton
Secretary
MINUTES OF THE
COLLEYVILLE ECONOMIC DEVELOPMENT
CORPORATION BOARD OF DIRECTORS MEETING
SEPTEMBER 9, 2003
The meeting of the Colleyville Economic Development Corporation Board of
directors was called to order by Director Ginny Tigue on September 9, 2003, at
7:14 p.m. The meeting was delayed due to the conclusion of the Special
Election early voting.
ROLL CALL:
Directors Jon Ayers, Rich Hendler, Mark Skinner, Janice
Cole, Gary Cantrell, and Donna O'Brien were present.
Director Ginny Tigue, City Manager Bill Lindley, Deputy City
Manager Dianne McWethy, Finance Director Terry Leake,
Parks and Recreation Director Monica Walsh, and City
Secretary Cynthia Singleton were also present.
CONSENT:
1. CONSIDERATION OF CONSENT RESOLUTION R-Q3-54 - CONSENT
ITEMS:
a. Approval of minutes of the Colleyville Economic Development
Corporation Board of Directors meeting held September 10, 2002
Director Tigue opened the public hearing.
There was no one present wishing to speak concerning this item and Director
Tigue closed the public hearing.
Director Tigue asked if there were any amendments to the minutes.
Director Hendler moved to approve Resolution R-03-54.
Director Skinner seconded the motion.
COLLEYVILLE ECONOMIC DEVELOPMENT
CORPORATION MINUTES
SEPTEMBER 9, 2003
Ayes:
Nays:
Abstain:
Directors Ayers, Cole, Hendler, O'Brien, Skinner and Tigue
None
Director Cantrell
Director Tigue declared the motion carried.
PUBLIC HEARINGS:
2. READING AND PUBLIC HEARING - RESOLUTION R-03-55 - A
Resolution appointing a Colleyville Economic Development Corporation
President and Vice President
Director Tigue opened the public hearing and read Resolution R-03-55 in its
entirety.
There was no one present wishing to speak concerning this item and Director
Tigue closed the public hearing.
Director Tigue called for nominations for President.
Director Cole nominated Director Mark Skinner for President.
Director Hendler nominated Director Jon Ayers.
There were no other nominations and Director Tigue called for the vote.
Director Skinner:
Director Ayers:
Directors Cole, Cantrell, Ayers, O'Brien, Skinner and Tigue
Director Hendler
Director Tigue declared Mark Skinner appointed President.
Director Tigue called for nominations for Vice-President.
Director Cole nominated Director Ginny Tigue.
Director Hendler nominated Director Jon Ayers.
There were no other nominations and Director Tigue called for the vote.
Director Tigue:
Director Ayers:
Directors Cole, Cantrell, Ayers, O'Brien, Skinner and Tigue
Director Hendler
Director Tigue declared Ginny Tigue appointed Vice President.
2
COLLEYVILLE ECONOMIC DEVELOPMENT
CORPORATION MINUTES
SEPTEMBER 9, 2003
Director Hendler moved to approve Resolution R-03-55.
Director Cantrell seconded the motion.
Ayes: Directors Ayers, Cantrell, Cole, Hendler, O'Brien, Skinner and Tigue
Nays: None
Director Tigue declared the motion carried.
3. READING AND PUBLIC HEARING - RESOLUTION R-03-56 - A
Resolution adopting the Economic Development Capital Improvement
Program (EDCIP) for 2004 - 2008
President Skinner opened the public hearing and read Resolution R-03-56 in its
entirety.
There was no one present wishing to speak concerning this item and President
Skinner closed the public hearing.
Finance Director Terry Leake provided an overview of the Economic
Development Capital Improvement Program for 2004-2008.
Discussion ensued regarding the fund balance and potential park land
purchases.
Director of Parks and Recreation Monica Walsh reviewed the current and future
park projects and potential park land sites.
City Manager Bill Lindley provided information related to 4A and 4B initiatives.
The Board requested that staff obtain a legal opinion regarding the scope of
powers of the Colleyville Economic Development Corporation.
Director Tigue moved to approved Resolution R-03-56.
Director O'Brien seconded the motion.
Ayes: Directors Ayers, Cantrell, Cole, Hendler, O'Brien, Tigue and Skinner
Nays: None
President Skinner declared the motion carried.
3
COLLEYVILLE ECONOMIC DEVELOPMENT
CORPORATION MINUTES
SEPTEMBER 9, 2003
4. READING AND PUBLIC HEARING - RESOLUTION R-03-57 - A
Resolution adopting the Fiscal Year 2004 Budget
President Skinner opened the public hearing and read Resolution R-03-57 in its
entirety.
There was no one present wishing to speak concerning this item and President
Skinner closed the public hearing.
Discussion ensued regarding construction elements of the McPherson Park Land
plan and criteria for grant funding.
Director Ayers moved to approve Resolution R-03-57.
Director O'Brien seconded the motion.
Ayes: Directors Ayers, Cantrell, Cole, Hendler, O'Brien, Tigue and Skinner
Nays: None
President Skinner declared the motion carried.
5. READING AND PUBLIC HEARING - RESOLUTION R-03-58 - A
Resolution approving the amendment of the Bylaws of the Colleyville
Economic Development Corporation
President Skinner opened the public hearing and read Resolution R-03-58 in its
entirety.
There was no one present wishing to speak concerning this item and President
Skinner closed the public hearing.
Director Tigue moved to approve Resolution R-03-58.
Director Cole seconded the motion.
Ayes: Directors Ayers, Cantrell, Cole, Hendler, O'Brien, Tigue and Skinner
Nays: None
President Skinner declared the motion carried.
4
COLLEYVILLE ECONOMIC DEVELOPMENT
CORPORATION MINUTES
SEPTEMBER 9, 2003
ACTION ITEMS:
6. READING AND PUBLIC HEARING - RESOLUTION R-03-59 - A
Resolution revising the Colleyville Economic Development Corporation
I nvestment Policy
President Skinner opened the public hearing and read Resolution R-03-59 in its
entirety.
There was no one present wishing to speak concerning this item and President
Skinner closed the public hearing.
Finance Director Terry Leake provided an overview of the CEDC Investment
Policy and proposed changes.
Director Cantrell moved to approve Resolution R-03-59.
Director Ayers seconded the motion.
Ayes: Directors Ayers, Cantrell, Cole, Hendler, O'Brien, Tigue and Skinner
Nays: None
President Skinner declared the motion carried.
REPORTS:
7. ANNUAL ACTIVITY REPORT
There was no action taken on this item.
8. ANNUAL INVESTMENT REPORT
There was no action taken on this item.
9. READING AND PUBLIC HEARING - RESOLUTION R-03-60 - A
Resolution ratifying Corporate Board action for the meeting of September
9,2003
This Resolution was not needed.
5
COLLEYVILLE ECONOMIC DEVELOPMENT
CORPORATION MINUTES
SEPTEMBER 9, 2003
ADJOURNMENT:
10. ADJOURNMENT
There being no further business before the Board, Director Ayers moved to
adjourn.
Director Hendler seconded the motion.
Ayes: Directors Ayers, Cantrell, Cole, Hendler, O'Brien, Tigue and Skinner
Nays: None
President Skinner declared the meeting adjourned at 8:20 p.m.
APPROVED THIS
AYES,
DAY OF
NAYS AND
2004, BY A VOTE OF
ABSTENTIONS.
Minutes taken and prepared by:
Cynthia Singleton, TRMC
City Secretary
6
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CEDC CC~~ce
(t".'\::lS
AGENDA BRIEFING
MEETING DATE: 08/24/04 GENERAL MANAGER I K2
~
ITEM # : 3 DEPARTMENT HEAD ,
,
; !
REPORT: R-04-62 FINANCE MANAGER !
,
Previous Action: None
DEPARTMENT: CITY MANAGER'S OFFICE
SUBJECT: Appointing a Colleyville Economic Development
Corporation President and Vice President
Reading and Public Hearing
As per Article III, Officers, the President and Vice President shall be elected by the Board and
shall serve a term of one (1) year. The President and Vice President shall continue to serve
until their successors are appointed as provided in Article II, Section I. (See attached). On
September 9, 2003, the Board of Directors appointed Director Mark Skinner to serve as
President and Director Ginny Tigue to serve as Vice President. On the basis that Ginny Tigue
no longer serves on the Colleyville Economic Development Board of Directors, the position of
Vice President is currently vacant.
The Board of Directors will need to elect a President and Vice President of the Colleyville
Economic Development Corporation.
Financial Impact
None
Recommendation
Approval
Attachments
· Excerpts of the CEDC Bylaws
· Resolution R-03-55
· Resolution R-04-62
C. The Secretary of the Corporation shall act as Secretary of all meetings of the
Corporation, but in the absence of the Secretary, the presiding officer may
appoint any person to act as Secretary of the meeting. The Secretary shall
keep minutes of the transactions of the Board and committee meetings and
shall cause such official minutes to be recorded in books kept for that
purpose in the principal office of the Corporation.
SECTION 6. COMMITTEES OF THE BOARD
An official committee of the Board shall consist of two (2) or more directors. It is
provided, however, that all final official actions ofthe Corporation may be exercised
only by the Board. Each committee so designated shall keep regular minutes of the
transactions of its meetings and shall cause such minutes to be recorded in books
kept for that purpose in the principal office of the Corporation.
SECTION 7. COMPENSATION OF DIRECTORS
The directors, including the President and Vice President, shall not receive any
salary or compensation for their services. However, directors may be reimbursed
for their actual expenses incurred in the performance of their duties hereunder,
including but not limited to the cost of travel, lodging and incidental expenses
reasonably related to the corporate duties of the Board. Travel expenses incurred
by directors for both regular and special meetings are not eligible for
reimbursement.
ARTICLE III.
OFFICERS
SECTION 1. TITLES AND TERM OF OFFICE
The President and Vice President shall be elected by the Board and shall serve a
term of one (1) year. The President and Vice President shall continue to serve until
their successors are appointed as provided in Article II, Section 1.
SECTION 2. POWERS AND DUTIES OF THE PRESIDENT
The President shall be the chief executive officer of the Corporation, and shall
preside at all meetings of the Board, and absent any different designation by a
majority of the Board, shall sign and execute all contracts, conveyances, franchises,
bonds, deeds, assignments, mortgages, and notes in the name of the Corporation.
In addition the President shall:
-4-
A. call both regular and special meetings of the Board and establish the agenda
for such;
B. shall endorse and countersign, on behalf of the Corporation, for collection or
issuance, checks, notes and other obligations in or drawn upon such bank or
banks or depositories as shall be designated by the City Council consistent
with these Bylaws.
C. have the authority to appoint standing or study committees to aid and assist
the Board in its business undertaking or other matters incidental to the
operation and functions of the Board;
D. perform all duties incident to the office, and such other duties as shall be
prescribed from time to time by the Board, subject to approval by the City
Council;
E. appear before the City Council on a periodic basis to give a report on the
status of activities of the Corporation; and
F. appear before the City Council, or be represented by his designee, regarding
any item being considered by the City Council concerning the Corporation.
SECTION 3. VICE PRESIDENT
The Vice President shall exercise the powers of the President during that officer's
absence or inability to act. The Vice President shall also perform other duties as
from time to time may be assigned by the President or the Board.
SECTION 4. ATTENDANCE
Directors must be present in order to vote at any meeting. Regular attendance at
the Board meetings is required of all directors. The following number of absences
shall constitute the basis for replacement of a director. Three (3) consecutive
unexcused absences from meetings of the Board shall cause the position to be
considered vacant.
In addition, the position of any director who has four (4) unexcused absences in a
twelve (12) month period shall also be considered vacant.
-5-
RESOLUTION R-03-55
A RESOLUTION APPOINTING A COLLEYVILLE ECONOMIC DEVELOPMENT
CORPORATION PRESIDENT AND VICE PRESIDENT
WHEREAS,
in accordance with Article III, Officers, the President and Vice
President shall be elected by the Board and shall serve a term of
one (1) year.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION:
Sec. 1. THAT Director Mark Skinner shall be appointed to serve as President of
the Colleyville Economic Development Corporation.
Sec. 2. THAT Director Ginny Tigue shall be appointed to serve as Vice President
of the Colleyville Economic Development Corporation.
AND IT IS SO RESOLVED.
PASSED AND ADOPTED, THIS SEPTEMBER 9, 2003.
COLLEYVILLE ECONOMIC
DEVELOPMENT CORPORATION
~.~,.. ~..~
Mark Skinner
President
ATTEST:
I(i~~~
Cynthia Singleton
Secretary
RESOLUTION R-04-62
A RESOLUTION APPOINTING A COLLEYVILLE ECONOMIC DEVELOPMENT
CORPORATION PRESIDENT AND VICE PRESIDENT
WHEREAS, in accordance with Article II, Officers, the President and Vice President shall
be elected by the Board and shall serve a term of one (1) year.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION:
Sec 1.
THAT Director shall be appointed to serve as
President of the Colleyville Economic Development Corporation.
Sec. 2.
THAT Director shall be appointed to serve as Vice
President of the Colleyville Economic Development Corporation.
AND IT IS SO RESOLVED.
PASSED AND ADOPTED, this August 24,2004.
COLLEYVILLE ECONOMIC
DEVELOPMENT CORPORATION
President
ATTEST:
Cynthia Singleton
Secretary
City or
~
CEDC CQ~~ilce AGENDA BRIEFING
IL-:-;<\S
MEETING DATE: 08/24/04 GENERAL MANAGER
ITEM #: ' 4 DEPARTMENT HEAD
RESOLUTION #: I R-04-63 FINANCE MANAGER
Previous Action: None
DEPARTMENT: FINANCE
SUBJECT : Adopting the Economic Development Capital
Improvement Program (EDCIP) for 2005-2009
Reading and Public Hearing
The CEDC by-laws require that annually the Board develop a combined Economic
Development Capital Improvement Program, (EDCIP) which sets forth long and short-term
goals. This program "shall be one that addresses the development needs of the City within the
financial constraints available to the Corporation". The "EDCIP shall identify the projects to be
undertaken by the Corporation and include proposed methods and the expected cost of
implementation". After the EDCIP is developed, it must be approved by the City Council.
Staff will provide an overview of current and future park projects, including master plans and
cost estimates and review the priorities established and recommended by the Parks and
Recreation Advisory Board at their August 2, 2004, meeting. (See attached report).
For the Board's information, the current EDCIP for FY 2004 - FY 2008 is included as Exhibit 1.
For the FY 2005 - FY 2009 EDCIP (Exhibit 2) the following revenue and expenditure changes
were proposed: increasing the sales tax revenue to 1/2 the amount in the proposed FY 2005
City of Colleyville General Fund budget with a 5% annual increase in FY 2006 and 4% in FY
2007- FY 2009, due to the construction of Colleyville Boulevard. In FY 2005 funding was
allocated for chair replacement at the Colleyville Center ($50,000) and Senior Citizen's Center
design ($125,000). In the remaining years, funding for park land purchase was in FY 2006
was reduced to $150,000 and funding was allocated for Senior Citizen's Center furnishing in
FY 2006. In FY 2009, funding is allocated to the McPherson Park plan ($150,000) and park
land purchase ($150,000). These changes are proposed to accommodate the revised revenue
projection and to retain the fund balance at an acceptable level.
Recommendation
Approval
Attachments
. Overview of Current and Future Park Projects
. Exhibit 1 - FY 2004-2008 EDCIP
. Exhibit 2 - FY 2005-2009 EDCIP
. Resolution R-04-63
MEMORANDUM
TO:
FROM:
Colleyville Economic Development Corporation Board of Directors
Dianne McWethy, Deputy City Manager\\/
August 6, 2004 1
DATE:
SUBJECT:
Economic Development Capital Improvement Program (EDCIP) for
FY2005-2009
Among the primary responsibilities of the Colleyville Economic Development
Corporation (CEDC) Board of Directors is the adoption of a five-year plan and an
annual budget. The five-year plan was last updated in September 2003 and is
attached for your reference. Historically, the CEDC Board has limited the use of
funds to capital expenditures and a small administrative charge. The plan for
FY2005-2009 strives to maintain this philosophy. The projects in the plan are
related to the Parks and Recreation Department and the Colleyville Center.
On August 2, 2004, the Parks and Recreation Advisory Board established their
priorities. (See attached). In consideration of establishing their priorities, the
Parks and Recreation Advisory Board reviewed the citizens priorities based on
the Comprehensive Parks, Recreation and Open Space Master Plan (See
attached). The proposed FY2005-2009 EDCIP plan attempts to incorporate
some of the Parks and Recreation Advisory Board identified priorities:
1. McPherson Park, Phase I
2. Little Bear Creek Trail Extension (t)
Pleasant Run Park, Phase II (t)
3. Cottonbelt Trail, Phase III (t)
McPherson Park, Phase II (t)
4. Recreation Center
5. Senior Center
6. ADA Improvements
7. Longwood Trail (t)
McPherson Park, Phase III (t)
8. Parkland Purchase (t)
Bransford Park, Phase II (t)
9. McPherson Park, Phase IV
10. McPherson Park Adjacent Hike and Bike Trails
11. Park Maintenance Building
12. Tennis Courts
13. Uniform Park Signage
(t) Denotes tie vote
Revenue
The sole source of revenue for the CEDC budget is a one-half cent sales tax.
The revenue projection in this plan includes the estimated amount to be received
in FY2004 and increases the sales tax revenue by 8% in the proposed FY2005
City of Colleyville General Fund budget with a 5% annual increase in FY2006
and a 4% in FY2007-2009, due to planned construction of SH26 (Colleyville
Boulevard). These changes are proposed to accommodate the revised revenue
projection and to retain the fund balance at an acceptable level.
Projects
In preparing recommendations for the update of the five-year plan, we first review
projects with funding allocations, included in the current plan:
1. McPherson Park Master Plan
2. Park Land Purchase
3. Pleasant Run Park Land Purchase
4. Trail Grants Local Share Match
The current plan provides monies for McPherson Park Master Plan, which
includes a walking trail, picnic and playground areas, entry road, fishing pond,
unstructured play areas, recreation amenities and pavilion with a restroom, in the
amount of $125,000. Monies have also been allocated for FY2006 - FY2009,
annually in the amount of $150,000, for a total funding allocation of $725,000.
The Parks and Recreation Advisory Board ranked McPherson Park, Phase I, as
priority 1 .
The purchase of parkland is priority 8 of the Parks and Recreation Advisory
Board. The current EDCIP plan proposes $600,000 for the purchase of parkland
in FY2006 - FY2009, with an annual allocation of $150,000.
The EDCIP plan provided funding for the final installment for the purchase of the
Pleasant Run Practice Park, as per the City's agreement with GCISD in FY2004.
The construction of the Cotton belt Trail, Phase III, from John McCain Road
(north) to the Grapevine city limits and the Little Bear Creek Trail Extension from
the Nature Center to Sparger Park are planned for future grant funding. The
Little Bear Creek Trail Extension is priority 2 of the Parks and Recreation
Advisory Board along with Pleasant Run Park, Phase II.
The Cotton belt Trail, Phase I, is nearing completion and Cottonbelt Trail, Phase
II, in conjunction with the City of Hurst, is currently under design. Cotton belt
Trail, Phase II will be the final phase of this regional trail system located within
the City of Colleyville. This phase of the project will be constructed during the
construction of the planned improvements for SH26. The design of the trail will
need to be completed prior to construction of the highway, which is scheduled for
FY2007. The proposed EDCIP plan proposes $393,000 in FY2006 for trail grant
opportunities. Cotton belt Trail, Phase III, is priority 3 of the Parks and Recreation
Advisory Board along with McPherson Park, Phase II.
In addition to the parks related improvements incorporated into the proposed
FY2004 - 2008 EDCIP plan, this plan also provides for the allocation of $50,000
for the capital purchase of chairs for the Colleyville Center. On the basis that the
Colleyville Center opened in January 1998, the chairs are in need of replacement
for the Center's use. Due to the continued stacking and un-stacking of the chairs
for the numerous rentals of the facility, many of the chairs have torn upholstery.
In consideration of replacement of the Center's chairs, the chairs that are in
better condition would be reallocated to other City departments, e.g., the Library
for use on the 2nd floor, the Parks, Public Works and Fire Stations. Another
option would be for the City to offer the sale of the remaining chairs for another
public purpose, according to the State requirements for the sale of public
property.
Additionally, the plan provides funding for the allocation of $125,000 in FY2005
and $100,000 in FY2006 for Senior Center architectural design fees and
furnishings. Staff is currently in the process of selection of an architectural firm
for the design of the Senior Center. The Senior Center is Priority 5 of the Parks
and Recreation Advisory Board.
Conclusion
The recommended five-year plan does not provide sufficient resources for the
funding of every project identified by the Parks and Recreation Advisory Board or
the City Council. In FY2005, the plan provides funding for the replacement of the
Colleyville Center chairs, partial funding for the McPherson Park Master Plan,
partial funding for the Senior Center architectural design fees and furniture,
fixture and equipment, and the trail grants local share match.
Recommendation
Staff recommends that the CEDC Board approve the five-year Capital
Improvement Program, as proposed.
Attachments
· Parks and Recreation Advisory Board Prioritization, August 2, 2004
· Citizen Priorities based on the Comprehensive Parks, Recreation and
Open Space Master Plan
MEMORANDUM
TO: Dianne McWethy, Deputy City Manager
FROM: Monica Sue Walsh, Director of Parks and Recreation
DATE: August 4, 2004
SUBJECT: Parks and Recreation Board CIP priorities
At the Parks and Recreation Board meeting on August 2, 2004 the board prioritized
the following CIP projects:
PRIORITY LIST
One being the most important
McPherson Park Phase 1 1
Little Bear Creek Trail Extension 2 t
Pleasant Run Park Phase 2 2 t
Cotton belt Trail Phase 3 3 t
McPherson Park Phase 2 3 tl
Recreation Center 4
Senior Center 5
ADA Improvements 6
Longwood Trail 7 (t
McPherson Park Phase 3 7 t
Bransford Park Phase 2 8 t
Park Land Purchase 8 t
McPherson Park Phase 4 9
McPherson Park Adjacent Hike and Bike Trails 10
Park Maintenance Buildina 11
New Tennis Courts 12
Uniform Park SiQnaQe 13
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COLLEYVILLE ECONOMIC DEVELOPMENT COPRORATION
ECONOMIC DEVELOPMENT CAPITAL IMPROVEMENT PROGRAM FY 2004 - FY 2008
EXHIBIT 1
FISCAL YEAR
PROJECTED
2003
2004
2005
2006
2007
2008
BEGINNING FUND BALANCE
$961,253
$596,567
$563,934
$377,911
$290,521
$262,036
PROJECTED 1/2 CENT SALES TAX REVENUE $717,286 $785,000 $809,000 $841,360 $875,014 $910,015
INTEREST INCOME $53,838 $8,948 $8,459 $5,669 $4,358 $3,931
USE OF FUND BALANCE $605,932 $272,793 $0 $0 $0 $0
REMAINING FY 97 BOND PROCEEDS' $300,000 $0 $0 $0 $0 $0
TOTAL REVENUES $1,677,056 $1,066,741 $817,459 $847,029 $879,372 $913,946
OPERATING:
ADMINISTRATIVE $6,800 $6,800 $6,800 $6,800 $6,800 $6,800
1997 DEBT SERVICE & 1.4 TIMES COVERAGE $668,093 $666,044 $665,606 $666,306 $666,306 $666,306
2000 DEBT SERVICE & 1.4 TIMES COVERAGE $176,267 $174,517 $179,549 $177,360 $175,174 $179,767
CAPITAL:
BRANSFORD PARK RESTORATION $207,893 $0 $0 $0 $0 $0
LIBRARY STARTUP' $500,000 $0 $0 $0 $0 $0
MC PHERSON LAND PARK PLAN $0 $125,000 $0 $0 $0 $0
PARK LAND PURCHASE $0 $0 $0 $325,000 $300,000 $300,000
PLEASANT RUN PARK $19,993 $0 $0 $0 $0 $0
SCHOOUSOCCER FIELD PARK LAND NOTE $98,010 $94,380 $0 $0 $0 $0
TRAILS GRANT MATCH $0 $0 $393,000 $0 $0 $0
TOTAL EXPENDITURES $1,677,056 $1,066,741 $1,244,955 $1,175,467 $1,148,280 $1,152,873
EXCESS REVENUES OVER EXPENDITURES $0 $0 ($427,496) ($328,438) ($268,908) ($238,928)
ADD BACK .4 TIMES BOND COVERAGE RATIO $241,246 $240,160 $241,473 $241,048 $240,423 $241,735
ENDING FUND BALANCE
$596,567
$563,934
$377,911
$290,521
$262,036
$264,843
ASSUMPTIONS: 4% ANNUAL SALES TAX INCREASE (FOR FY 2005 - 2008 GROWTH WILL BE MONITORED DUE TO COLLEYVILLE BLVD. CONSTRUCTION)
. THE REMAINING 1997 BOND PROCEEDS ($300,000) ARE ALLOCATED TO
LIBRARY START-UP ($300,000 - FY 2003)
COLLEYVILLE ECONOMIC DEVELOPMENT COPRORATION
ECONOMIC DEVELOPMENT CAPITAL IMPROVEMENT PROGRAM FY 2005 - FY 2009
EXHIBIT 2
FISCAL YEAR
PROJECTED
2004
2005
2006
2007
2008
2009
BEGINNING FUND BALANCE
$828,549
$947,548
$512,617
$405,440
$433,289
$495,947
PROJECTED 1/2 CENT SALES TAX REVENUE $809,000 $847,800 $890,190 $925,798 $962,830 $1,001,343
INTEREST INCOME $9,780 $18,951 $10,252 $8,109 $8,666 $9,919
USE OF FUND BALANCE $147,793 $677,376 $349,000 $216,000 $182,000 $138,000
TOTAL REVENUES $966,573 $1,544,127 $1,249,442 $1,149,906 $1,153,495 $1,149,262
OPERATING
ADMINISTRATIVE $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
1997 DEBT SERVICE & 1.4 TIMES COVERAGE $666,044 $665,606 $666,306 $666,306 $665,606 $664,049
2000 DEBT SERVICE & 1.4 TIMES COVERAGE $174,517 $179,549 $177,360 $175,174 $179,767 $177,142
CAPITAL:
COLLEYVILLE CENTER CHAIR REPLACEMENT $0 $50,000 $0 $0 $0 $0
MC PHERSON LAND PARK PLAN $0 $125,000 $150,000 $150,000 $150,000 $150,000
PARK LAND PURCHASE $0 $0 $150,000 $150,000 $150,000 $150,000
SCHOOUSOCCER FIELD PARK LAND NOTE $94,380 $0 $0 $0 $0 $0
SENIOR CENTER DESIGN/FURNISHINGS $0 $125,000 $100,000 $0 $0 $0
TRAILS GRANT MATCH $0 $393,000 $0 $0 $0 $0
TOTAL EXPENDITURES $939,941 $1,543,155 $1,248,667 $1,146,480 $1,150,373 $1,146,191
EXCESS REVENUES OVER EXPENDITURES $26,631 $972 $776 $3,427 $3,122 $3,070
ADD BACK.4 TIMES BOND COVERAGE RATIO $240,160 $241,473 $241,048 $240,423 $241,535 $240,340
ENDING FUND BALANCE
$947,548
$512,617
$405,440
$433,289
$495,947
$601,357
ASSUMPTIONS: FY 2006 5% ANNUAL SALES TAX INCREASE / FY 2007 - 2009: 4% GROWTH DUE TO COLLEYVILLE BLVD.CONSTRUCTION
RESOLUTION R-04-63
A RESOLUTION ADOPTING THE COLLEYVILLE ECONOMIC DEVELOPMENT
CORPORATION CAPITAL IMPROVEMENT PLAN
WHEREAS, the by-laws of the Colleyville Economic Development Corporation require
that an Economic Development Capital Improvement Plan be developed
setting forth long and short term goals that address the needs of the City
within the financial constraints of revenues available to the Corporation; and
WHEREAS, the Board of Directors has developed and approved an Economic
Development Capital Improvement Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION:
Sec 1.
THAT the Economic Development Capital Improvement Plan of the
Colleyville Economic Development Corporation (Exhibit A) is hereby
adopted.
Sec. 2.
THAT this Resolution shall become effective on the date of passage.
AND IT IS SO RESOLVED.
PASSED AND ADOPTED, this August 24,2004.
COLLEYVILLE ECONOMIC
DEVELOPMENT CORPORATION
President
ATTEST:
Cynthia Singleton
Secretary
COLLEYVILLE ECONOMIC DEVELOPMENT COPRORATION
ECONOMIC DEVELOPMENT CAPITAL IMPROVEMENT PROGRAM FY 2005 - FY 2009
EXHIBIT A
FISCAL YEAR
PROJECTED
2004
2005
2006
2007
2008
2009
BEGINNING FUND BALANCE
$828,549
$947,548
$512,617
$405,440
$433,289
$495,947
PROJECTED 1/2 CENT SALES TAX REVENUE $809,000 $847,800 $890,190 $925,798 $962,830 $1,001,343
INTEREST INCOME $9,780 $18,951 $10,252 $8,109 $8,666 $9,919
USE OF FUND BALANCE $147,793 $677,376 $349,000 $216,000 $182,000 $138,000
TOTAL REVENUES $966,573 $1,544,127 $1,249,442 $1,149,906 $1,153,495 $1,149,262
OPERATING:
ADMINISTRATIVE $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
1997 DEBT SERVICE & 1.4 TIMES COVERAGE $666,044 $665,606 $666,306 $666,306 $665,606 $664,049
2000 DEBT SERVICE & 1.4 TIMES COVERAGE $174,517 $179,549 $177,360 $175,174 $179,767 $177,142
CAPITAL:
COLLEYVILLE CENTER CHAIR REPLACEMENT $0 $50,000 $0 $0 $0 $0
MC PHERSON LAND PARK PLAN $0 $125,000 $150,000 $150,000 $150,000 $150,000
PARK LAND PURCHASE $0 $0 $150,000 $150,000 $150,000 $150,000
SCHOOL/SOCCER FIELD PARK LAND NOTE $94,380 $0 $0 $0 $0 $0
SENIOR CENTER DESIGN/FURNISHINGS $0 $125,000 $100,000 $0 $0 $0
TRAILS GRANT MATCH $0 $393,000 $0 $0 $0 $0
TOTAL EXPENDITURES $939,941 $1,543,155 $1,248,667 $1,146,480 $1,150,373 $1,146,191
EXCESS REVENUES OVER EXPENDITURES $26,631 $972 $776 $3,427 $3,122 $3,070
ADD BACK.4 TIMES BOND COVERAGE RATIO $240,160 $241,473 $241,048 $240,423 $241,535 $240,340
ENDING FUND BALANCE
$947,548
$512,617
$405,440
$433,289
$495,947
$601,357
ASSUMPTIONS: FY 2006 5% ANNUAL SALES TAX INCREASE / FY 2007 - 2009: 4% GROWTH DUE TO COLLEYVILLE BLVD.CONSTRUCTION
CEDC
CJJe'" AGENDA BRIEFING
/l~:x,,$
MEETING DATE:
ITEM#:
RESOLUTION #: I
08/24/04
5
R-04-64
GENERAL MANAGER
DEPARTMENT HEAD
FINANCE MANAGER 1
Previous Action: None
DEPARTMENT: FINANCE
SUBJECT: Adopting the Fiscal Year 2005 Budget
Reading and Public Hearing
Per the Corporate by-laws, the Board of Directors must adopt an annual budget for the
Colleyville Economic Development Corporation. Attached is a proposed budget with estimated
revenues and expenditures for Fiscal Year 2005 (Exhibits 1A - 1 C). The revenue estimate is
1/2 of the sales tax revenue estimate in the City's proposed FY 2005 budget. Expenditures
include Trails Grant match ($393,000), McPherson Land Park Plan ($125,000), replacement of
chairs in the Colleyville Center ($50,000), funding for the design of the Senior Citizens Center
(125,000), debt service on the 1997 and 2000 sales tax bonds ($600,401) and $5,000 for
board expenses and insurance. The budget also utilizes $433,376 in fund balance, with the
projected ending Fiscal Year 2005 Fund Balance being $746,515.
Financial Impact
Adoption of the budget will provide appropriations for the FY 2005 budget.
Recommendation
Approval
Attachments
. CEDC Budget Exhibits 1A, 1 B, 1 C
. Resolution R-04-64
COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION EXHIBIT 1A
FY 2005 PROPOSED BUDGET SUMMARY
FY 2004 FY 2005
ANTICIPATED PROPOSED
BEGINNING FUND BALANCE $ 828,549 947,548
REVENUES:
SALES TAX REVENUES $ 809,000 847,800
INTEREST INCOME $ 9,780 18,951
USE OF FUND BALANCE $ 147,793 677,376
TOTAL REVENUES $ 966,573 1,544,127
LESS EXPENSES:
ADMINISTRATIVE EXPENSES $ 5,000 5,000
DEBT SERVICE $ 600,401 603,682
CAPITAL PROJECTS:
COLLEYVILLE CENTER CHAIR REPLACEMENT $ 0 50,000
MC PHERSON LAND PARK PLAN $ 0 125,000
SCHOOUSOCCER FIELD PARK LAND NOTE $ 94,380 0
SENIOR CENTER DESIGN $ 0 125,000
TRAILS GRANT MATCH $ 0 393,000
TOTAL EXPENSES $ 699,781 1,301,682
EXCESS REVENUES OVER EXPENSES $ 266,792 242,445
NOTE: A COVERAGE RATIO OF 1.4 IS REQUIRED TO MEET THE SALES TAX
BOND COVENANTS. FOR FY 2005 REVENUES MUST EXCEED EXPENDITURES
BY AT LEAST $241 ,473.
COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION
FY 2005 BUDGET
EXHIBIT 1B
PROPOSED
FY 2005
BEGINNING FUND BALANCE
$
947,548
REVENUES:
SALES TAX REVENUES
$
847,800
INTEREST INCOME
$
18,951
USE OF FUND BALANCE
$
677 ,376
TOTAL REVENUES
$
1,544,127
LESS EXPENSES:
ADMINISTRATIVE EXPENSES
$
5,000
DEBT SERVICE
$
603,682
CAPITAL PROJECTS:
COLLEYVILLE CENTER CHAIR REPLACEMENT
TOTAL EXPENSES
$ 50,000
$ 125,000
$ 125,000
$ 393,000
$ 1,301,682
$ 242,445
MC PHERSON PARK LAND PLAN
SENIOR CENTER DESIGN
TRAILS GRANT MATCH
EXCESS REVENUES OVER EXPENSES
NOTE: A COVERAGE RATIO OF 1,4IS REQUIRED TO MEET THE SALES TAX
BOND COVENANTS. FOR FY 2005 REVENUES MUST EXCEED EXPENDITURES
BY AT LEAST $241,473.
COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION
FISCAL YEAR 2005 BUDGET ADMINISTRATIVE EXPENSE
ACCOUNT
NUMBER
6203
6293
6301
6308
EXPENSE ACCOUNT
AMOUNT
BUDGETED
$4,800
$100
$50
$50
INSURANCE
BOARD AND COMMISSION
OFFICE SUPPLIES
PRINTING
TOTAL EXPENSES
$5,000
EXHIBIT 1C
RESOLUTION R-04-64
A RESOLUTION ADOPTING AN ANNUAL BUDGET FOR FISCAL YEAR 2005 FOR
THE COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION
WHEREAS, the by-laws of the Colleyville Economic Development Corporation require
that an annual budget be adopted by the Board of Directors; and
WHEREAS, the by-laws require that the budget includes projected revenues and
proposed expenditures.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION:
Sec 1.
THAT the Fiscal Year 2004 budget amounts for the Colleyville Economic
Development Corporation are as follows:
Revenues
$1,544,127
$1,301,682
Expenditures
AND IT IS SO RESOLVED.
PASSED AND ADOPTED, this August 24, 2004.
COLLEYVILLE ECONOMIC
DEVELOPMENT CORPORATION
President
ATTEST:
Cynthia Singleton
Secretary
CEDe
cc~'" AGENDA BRIEFING
Il':-;;:l.$
MEETING DATE:
ITEM#:
08/24/04
6
GENERAL MANAGER
DEPARTMENT HEAD
FINANCE MANAGER
Previous Action: None
REPORT:
DEPARTMENT: FINANCE
SUBJECT: Discussion and Consideration of the Colleyville
Economic Development Corporation Investment
Policy
A section in the Public Funds Investment Act requires that an entity's governing body review
the investment strategy of the entity annually. The Corporation's investment strategy is
contained in the section entitled, "Investment Strategy" and is presented for the Board's
review. As an additional note, there are no changes proposed to the existing policy as the
legislature has not met this year.
Financial Impact
None
Recommendation
Approval
Attachments
. Colleyville Economic Development Corporation Investment Policy
COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION INVESTMENT POLICY
Policy
It is the policy of the City of Colleyville (the City) to invest public funds in a manner which
will provide the highest investment return with the maximum security while meeting the
daily cash flow demands of the entity and conforming to all State of Texas statutes and
City ordinances.
Scope
This investment policy applies to all financial assets of the Colleyville Economic
Development Corporation including:
General Fund
Debt Service Fund
Capital Projects Fund
and any new fund created by the governing body, unless specifically exempted by the
governing body.
Objectives
The primary objectives, in priority order, of the City's investment activities shall be:
Safety: Safety of principal is the foremost objective of the City in managing its portfolio.
Investments of the City shall be undertaken in a manner that seeks to ensure the
preservation of capital in the overall portfolio. To attain this objective the City will diversify
its investments by investing funds among a variety of securities offering independent
returns and financial institutions.
Liquidity: The City will also maintain sufficient liquidity to provide adequate and timely
working funds.
Return on Investments: The investment portfolio shall be designed with the objective of
obtaining a rate of return throughout budgetary and economic cycles, commensurate with
the investment risk constraints and cash flow needs. The City investment strategy is
passive and the portfolio shall be designed with the objective of regularly exceeding the
weighted average return on thirteen-week Treasury bills. This is considered a benchmark
for riskless investment transactions, and therefore, is a minimum standard for the portfolio's
rate of return. For bond funds that fall under the arbitrage provisions of the Tax Reform Act
of 1986, the City will attempt to earn allowable bond yield with market conditions permitting.
Delegation of Authority
The Corporation designates the Investment Officers to be the General Manager with
overall responsibilities to see that investment objectives are accomplished and the Finance
Manager with the specific day-to-day performance of managing the funds of the
Corporation.
Ethics and Conflict of Interest
All investment Officers and employees involved in the investment process shall refrain from
personal business activity that could conflict with proper execution of the investment
program, or which could impair their ability to make impartial investment decisions.
Employees shall disclose to the Colleyville Economic Development Corporation and Texas
Ethics Commission a statement under the following conditions:
A. If they have a personal business relationship with a business organization offering to
engage in an investment transaction with the entity. Under the Public Funds Investment
Act, a personal business relationship is defined as:
1 . the investment officer owns 10 percent or more of the voting stock or shares of
the business organization or owns $5,000 or more of the fair market value of the
business organization:
2. funds received by the investment officer from the business organization exceed
10 percent of the investment officer's gross income for the previous year; or
3. the investment officer has acquired from the business organization during the
previous year investments with a book value of $2,500 or more for the personal
account of the investment officer.
B. If they are related within the second degree by affinity or consanguinity, as determined
by Chapter 573 V.A.T.C.S. to an individual seeking to sell an investment to the City of
Colleyville.
Prudence
Investments shall be made with judgement and care - under circumstances then prevailing
- which persons of prudence, discretion, and intelligence exercise in the management of
their own affairs, not for speculation, but for investment, considering the probable safety of
their capital as well as the probable income to be derived.
The standard of prudence to be used by investment officials shall be the "prudent person"
which means the officer may not be an expert but is obligated to act responsibly and shall
be applied in the context of managing an overall portfolio. Investment officers acting in
accordance with written procedures and exercising due diligence shall be relieved of
personal responsibility for an individual security's credit risk or market price changes,
provided deviations from expectations are reported in a timely fashion and appropriate
action is taken to control adverse developments.
Investment officers shall notify the Board of Directors in writing of any conflicts of interest,
as defined by the Public Funds Investment Act, no later than the next regularly scheduled
Board of Director's meeting.
It is the policy of the Colleyville Economic Development Corporation that the Investment
Officers perform their duties in accordance with the policies and procedures set forth in this
policy. The Investment Officers of the Corporation (General Manager and Finance
Manager, and Assistant to the Finance Director of the City of Colleyville) shall be
personally indemnified in the event of investment loss provided the Investment Policy is
followed.
Internal Controls
The Finance Manager shall establish a system of written internal controls which shall be
reviewed annually by the independent auditor. The controls shall be designed to prevent
the loss of public funds due to fraud, error, misrepresentation, unanticipated market
changes or imprudent actions.
Permissible Instruments
The following is a list of permissible instruments as authorized by the 70th Texas
Legislature in the Public Funds Investment Act (TEX. REV. CIV. STAT. ANN. ACT 842A-2)
and amended by the 71st Legislature:
1. obligations of the United States or its agencies or instrumentalities;
2. direct obligations of the State of Texas or its agencies;
3. other obligations, the principal of and interest on which are unconditionally
guaranteed or insured by the State of Texas or the United States or its agencies or
instrumentalities;
4. obligations of states, agencies, counties, cities, and other political subdivisions of
any state having been rated as to investment quality by nationally recognized
investment rating firm and having received a rating of not less than "A" or its
equivalent;
5. certificates of deposit issued by state and national banks and domiciled in the state
that are:
a. guaranteed or insured by the Federal Deposit Insurance Corporation,
FSLlC or its successors; or
b. secured by obligations that are described by subdivisions (1) through (4)
of this subsection which are intended to include all direct federal agency or
instrumentality issued mortgage backed securities, and that have a market
value of not less than the principal amount of the certificates or in any other
manner and amount provided by law for deposits of the investing entities;
6. invest in a local government investment pool as authorized by the Interlocal
Cooperation Act (TEX. REV. CIV. STAT. ANN. ACT. 4413 (32c), as amended, and
the Public Funds Investment Act (TEX. REV. CIV. STAT. ACT. 842A-2), as
amended. The investment pool must comply with the requirements of the Public
Funds Investment Act, as amended, as follows:
a. the investment pool maintains a stable asset value as defined in the
Public Funds Investment Act;
b. the investment pool maintains a AAA rating by one of the nationally
recognized ratings agencies;
c. the investment pool's maximum average dollar weighted maturity does
not exceed 90 days; and
d. the investment pool's continued compliance with the remaining provisions
of the Public Funds Investment Act.
e. the eligible investments of the pool are as follows: obligations of the
United States or its agencies and instrumentalities, other obligations, the
principal of and interest on which are unconditionally guaranteed or
insured by the United States, fully collateralized repurchase agreements
with a defined termination date secured by obligations of the United
States or its agencies and instrumentalities, other obligations, the
principal of and interest on which are unconditionally guaranteed or
insured by the United States, and SEC registered money market funds
authorized by the Public Funds Investment Act and rated in the highest
category by at least one nationally recognized rating agency, reverse
repurchase agreements with a term of no longer than 90 days.
f. Include in its investment policy and/or operating procedures the following
information: a description of eligible investment securities and
unacceptable investments, a written statement on investment policy and
objectives, a description of interest calculations, distribution, and
treatment of gains and losses, security safeguarding, valuation
collateralization and auditing, and a fee schedule.
7. Direct repurchase agreements with primary security dealers or financial institutions
doing business in the State of Texas having a defined termination date, and
secured by U.S. Government or federal agency securities, provided that the
ownership of collateral for the repurchase agreement is transferred to the
Corporation, and deposited with a safekeeping agentforthe duration ofthe contract
and a signed master repurchase agreement has been executed with the
counterparty.
8. SEC-registered no-load money market mutual funds with a dollar weighted average
portfolio of 90 days or less whose assets consist exclusively of United States
Government Securities whose investment objectives include seeking to maintain a
stable net asset value of $1.00 per share. Investment in mutual funds shall be
limited to a maximum of ten percent (10%) of the Corporations available funds.
Unacceptable Investment Instruments
The following securities, although authorized by the Public Funds Investment Act, are not
eligible investments for the Colleyville Economic Development Corporation:
1. Collateralized mortgage obligations
2. Commercial paper
3. Banker's acceptances
4. Reverse repurchase agreements Local Government Investment Pools which
the City participates in may engage in reverse repurchase agreements if the
term is 90 days or less)
5. No-load mutual funds other than no-load money market mutual funds
6. Guaranteed investment contracts
7. Share certificates of qualifying credit unions
Investment Strategy
The investment strategy by type of fund is as follows:
(1) Operating Funds
The investment strategy for operating fund(s) is to assure that anticipated cash flows are
matched with adequate investment liquidity. A secondary objective is to create a portfolio
which will experience minimum volatility during economic cycles. These funds shall not
have an investment with a stated maturity greater than eighteen (18) months.
(2) Debt Service Funds
The investment strategy for debt service fund(s) is the assurance of investment liquidity to
cover the debt service obligations on the required payment date. Investments purchased
shall not have a stated final maturity date which exceeds the corresponding debt service
payment date.
(3) Reserve Funds
The investment strategy for reserve fund(s) is the assurance of investment liquidity
adequate to cover the debt service obligations not funded by debt service funds on the
required payment date. Investment of reserve funds are controlled by their ordinance,
resolution or indenture, and Federal and State law. Bond documents must be examined
for each issue, for potential differences with this policy concerning investment instruments,
maximum maturity or average life restrictions, call dates or sinking fund redemptions, and
applicable arbitrage yields and rebate liability. Provisions contained in the bond documents
will supersede provisions of this policy.
Reserve funds will be invested using a more conservative approach than the current
standard investment strategy when arbitrage rebate rules require refunding excess
earnings. All excess earnings received will be segregated to allow a proper determination
of interest income to be used in the arbitrage calculation.
Maturity limitations for single issue reserve funds shall not exceed the sooner of five (5)
years, the call provisions of the bond ordinance, or the final maturity of the bond issue.
A. Diversification
The Corporation will attempt to limit the risk of loss through diversification of its portfolio
and to achieve the aforementioned investment strategies by diversification of instruments.
Maximum
Diversification by Instrument
U.S. Treasury Obligations (Bills, Notes and Bonds)
U.S. Government Agency Securities
and Instrumentalities of Government
Sponsored Corporations
Percent
of Portfolio
100%
75%
Certificates of Deposit (CD's)
Commercial Bank's
75%
Local Government Investment Pool
75%
Tri-Party Repurchase Agreement
75%
SEC registered, no-load mutual fund
10%
Competitive Selection of Investments
On all funds available for investment other than those placed with Investment Pools, oral
bids shall be requested from at least two broker/dealers or national banks. The
Corporation will accept the bid which provides the highest rate of return within the maturity
required and within the parameters of this policy. Records will be kept of the bids offered,
bids accepted, and a brief explanation of the decision which was made regarding the
investment.
Qualified Institutions
As the Corporations investments are managed by the investment officers for the City of
Colleyville, the Corporation shall utilize the broker/dealers selected by the City of
Colleyville. The selection process is as follows: annually, the City Council shall approve
four financial institutions for investment purposes as recommended by the Finance
Director. All firms shall answer the Broker/Dealer questionnaire (Appendix A) and submit
their most recent audited financial statements for evaluation of credit worthiness. All
personnel in the firms who will be trading or quoting securities to the Corporation must
maintain a current NASD license and be registered to deal securities in the State of Texas.
An investment certification form (Appendix B) on the firm's letterhead signed by a principal
of the firm must be on file with the Corporation.
Safekeeping
All marketable securities purchased by the Corporation shall be held in third party
safekeeping by an institution designated as primary agent. All securities will be delivered to
the third party institution by seller. Personnel in the third party institution will verify the
correct security was delivered by the seller ("delivery vs payment"). The third party
institution shall issue a safekeeping receipt to the Corporation listing the specific
instrument, rate/yield, maturity, CUSIP, and other pertinent information. Collateral on
deposit type securities which exceed the FDIC coverage shall be held in a third party
safekeeping institution. In the event a third party safekeeping institution is used, a collateral
agreement shall be executed between the Board of Directors, depository which pledged
the collateral, and the third party custodian of the collateral. The Board of Directors will
retain possession of all original safekeeping receipts and the receipts will state the security
is pledged to the Colleyville Economic Development Corporation. Either the General
Manager or the Finance Manager must approve release of collateral in writing prior to its
removal from the safekeeping account.
Collateral Securities for Certificates of Deposit and Demand Accounts
The General Manager will accept as collateral for its Certificates of Deposit and demand
accounts the following securities:
A. FDIC coverage
B. U.S. Treasury bills, notes and bonds
C. United States Agency and instrumentalities bills or notes
D. GNMA mortgage backed fully modified pass through securities
E. Surety Bond
The collateral for the demand account may combined with the collateral held by the City of
Colleyville's demand account for the demand accounts held at the same institution.
Collateral shall be "marked to market" monthly by the Finance Manager. The following
percentages constitutes the minimum market value for collateral instruments which are
pledged for the Corporation's Certificates of Deposit and demand deposits.
Form of Collateral Pledged Collateral Ratio
1. U.S. Treasury bills, notes, and bonds
a. maturing within 1 year 102%
b. maturing in 1-5 years 105%
c. maturing in more than 5 years 110%
2. Actively traded U.S. Government Agency securities
a. maturing in less than 1 year 103%
b. maturing in 1-5 years 107%
c. maturing in more than 5 years 115%
3. GNMA mortgage pass through securities 115%
Collateral shall be audited annually be the Corporation's independent auditor and may be
audited by the Corporation at anytime during normal business hours of the safekeeping
bank.
Arbitrage
The Tax Reform Act of 1986 places limitations on the Corporation's yield from investing
certain tax-exempt bond proceeds, debt service funds and reserve funds. The rebate
provisions require that the Corporation compute earnings on investments from certain
issues of bonds on a periodic basis to determine if rebate is required.
To determine the Corporation's arbitrage position, the corporation is required to calculate
the actual yield earned on the investment of the funds and compare it to the yield that
would have been earned if the funds had been invested at a rate equal to the yield on the
applicable bonds sold by the Corporation. The rebate provisions state that periodically (
not less than once every five years and not later than sixty days after maturity of the
bonds), the Corporation is required to pay the United States Treasury a rebate of any
excess earnings. These restrictions require extreme precision in the monitoring and record
keeping of investments, particularly in computing yields to ensure compliance. Failure to
comply can dictate that the bonds become taxable, retroactively from the date of issuance.
The investment strategy for bond funds which fall under the arbitrage provisions of the Tax
Reform Act of 1986, is that the Corporation will attempt to earn maximum allowable bond
yield with market conditions permitting.
Reporting Requirements
Included as a part of the City of Colleyville's quarterly investment report, the Finance
Manager shall issue a written report concerning the Corporation's investment transactions
for the preceding quarter and describing in detail the investment position of the Corporation
as of the end of the quarter indicating the market values of all investments held during the
quarter. The report shall list for each investment held during the quarter: the purchase
price of the investment, the par value of the investment, the market value of the investment
at the beginning of the quarter, market value of the investment at the end of the quarter,
the market change from the beginning until the end of the quarter, and fully accrued
interest for the period. This report shall be in compliance with provisions of the Public
Funds Investment Act, as amended. The report shall be signed by the General Manager
and Finance Manager.
Training Requirements
Both the Finance Manager and Assistant to the Finance Director of the City of Colleyville
shall complete ten hours of training every two years as required by the Public Funds
Investment Act. This training may be obtained from the following sources: North Central
Texas Council of Governments, Government Treasurer's Organization of Texas,
Government Finance Officer's of Texas, or Texas Municipal League. The training must
include education in investment controls, security risks, strategy risks, market risks, and
any other topics as required by the Public Funds Investment Act.
CEDC CC~'"
TL":-':"::;
AGENDA BRIEFING
MEETING DATE: 08/24/04 GENERAL MANAGER ...2 .//
,r~
ITEM#: 7 <.-'
DEPARTMENT HEAD
REPORT: I FINANCE MANAGER ,
Previous Action: None
DEPARTMENT: FINANCE
SUBJECT: Annual Activity Report
The CEDC Bylaws require that the Board make an annual report by February 1 to the City
Council "reviewing the accomplishments of the Corporation for the preceding year and the
activities of the Corporation for the budget year". Attached is the Annual Activity Report that
will be submitted to the City Council on September 6, 2004.
Financial Impact
None
Recommendation
Approval
Attachments
. Annual Report of The Colleyville Economic Development Corporation
ANNUAL REPORT OF THE COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION
ACTIONS OF THE CORPORATION
On September 9, 2003, the Board held its annual meeting and approved the FY 04 annual
budget for the Corporation with projected revenues of $1,066,741 and expenses of $826,581.
The Board also adopted the attached Economic Development Capital Improvement Plan
(EDCIP) for fiscal years 2004 through 2008. This plan provides funding for McPherson Park
plan, park land purchase, school/soccer field park land note, and Sparger Park/Nature Center
trail.
CEDe
ci.1r or
CCeme AGENDA BRIEFING
Il~:O;'2.$
MEETING DATE: !
ITEM#:
REPORT:
08/24/04
8
GENERAL MANAGER !
DEPARTMENT HEAD !
FINANCE MANAGER '
Previous Action: None
DEPARTMENT: FINANCE
SUBJECT: Annual Investment Report
From the period of October 1, 2003 through July 31, 2004, the CEDC had an average
$975,896 invested in Local Government Investment Cooperative (LOGIC) pool, and it earned
$8,458 for this period. The Corporation also owns a portion ($400,000) of a Treasury note
purchased August 31, 2003 yielding 1.158%. The Treasury bill will mature on August 31,
2004, and as of June 30, 2004, its market value was $406,290.
RESOLUTION R-04-65
A RESOLUTION RATIFYING CORPORATE BOARD ACTION UNDER BUSINESS
FOR THE MEETING OF THE BOARD OF DIRECTORS OF THE COLLLEYVILLE
ECONOMIC DEVELOPMENT CORPORATION AUGUST 24, 2004
WHEREAS, the Board of Directors has taken action on certain items on the agenda
under Business.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION:
Sec 1 . THAT the agenda decisions approved by the Board of Directors of the
Colleyville Economic Development Corporation under Business this date and
not otherwise adopted by separate Resolution, as follows are hereby
adopted.
THAT
AND IT IS SO RESOLVED.
PASSED AND ADOPTED, this August 24, 2004.
COLLEYVILLE ECONOMIC
DEVELOPMENT CORPORATION
President
ATTEST:
Cynthia Singleton
Secretary