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HomeMy WebLinkAboutColleyville Economic Development Corporation (CEDC)-Agenda Packets-8/19/2011~:~~i_ ~~~ ~ City of Colleyville 100 Main Street .! :\> ~==_._.. ~. Colleyville, Texas 76034 ~ ~~'~ ~ Agenda 817. 503.1000 ~r;.,, www.colleyville.com Economic Development Corporation Board Tuesday, August 23, 2011 6:30 PM City Council Chambers 1. 2. 2a 2b 2c 3. 3a 3b 3c 4. 4a 4b 5. CALL TO ORDER CONSENT: READING AND PUBLIC HEARING - Resolution R-11-113 Approval of the minutes of the Colleyville Economic Development Corporation Board of Directors' meeting of August 24, 2010 Approval of the minutes of the Colleyville Economic Development Corporation Board of Directors' meeting of August 11, 2011 Approval of the annual review of the Colleyville Economic Development Corporation's Investment Policy RESOLUTION(S): READING AND PUBLIC HEARING R-11-114 Adopting the Economic Development Capital Improvement Program (EDCIP) for FY 2012-2016 R-11-115 Adopting the Fiscal Year 2012 (FY 2012) Budget R-11-116 Appointing a Colleyville Economic Development Corporation (CEDC) Board President and Vice President REPORT(S): Annual Activity Report Annual Investment Report ADJOURNMENT I hereby certify the above agenda was posted on the bulletin boards at City Hall on Friday, August 19, 2011, by 5:00 p.m. City of Colleyville Page 1 Printed on 8/19/2011 Economic Developrr~as~ Agenda August 23, 2011 Corporation Board~ 1 ,------~ i ~inthia Singleton, TRMC, CMC ity Secretary Any matter on this agenda may, at the discretion of the governing body, be opened for public comment and discussion. If you plan to attend this public meeting and have a disability that requires special accomodations, please advise the City Secretary at least 48 hours in advance at 817.503.1133, and reasonable accomodations willbe made to assist you. City of Col/eyville Page 2 Printed on 8h9/2011 RESOLUTION R-11-113 A RESOLUTION APPROVING BOARD ACTION UNDER CONSENT ITEMS AT THE COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION MEETING OF AUGUST 23, 2011 WHEREAS, the Colleyville Economic Development Corporation 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 of August 24, 2010, are hereby approved. b. THAT the minutes of the Colleyville Economic Development Corporation Board of Directors' meeting of August 11, 2011, are hereby approved. c. THAT the annual review of the Colleyville Economic Development Corporation's Investment Policy, is hereby approved. AND IT IS SO RESOLVED. PASSED AND ADOPTED, THIS August 23, 2011. COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION David Kelly President ATTEST: Cynthia Singleton, TRMC, CMC City Secretary ~"~ ' CitV of ColleV ville ~p ~~ W~ ;- ~ + + N ~~ Y ~~ ~ ,'. , , ~"r,.~~ Minutes - Draft ~R;.~~.,~ Economic Development Corporation Boa rd City Hall 100 Main Street Colleyville, Texas 76034 817. 503.1000 www.colleyville.com Tuesday, August 24, 2010 6:30 PM City Council Chambers The Colleyville Economic Development Corporation Board of Director's meeting was called to order by President David Kelly on August 24, 2010, at 6:31 p. m. 2. 2a 2b 2c ROLL CALL: Directors Carol Wollin, Stan Hall, Sue Kijowski, Carel Tornes and Vice President Tom Hart were present. President David Kelly, General Manager Jennifer Fadden, Finance Manager Terry Leake, Economic Development Director Marty Wieder, Parks and Recreation Director Monica Walsh, Library Director Mary Rodne and Secretary Cynthia Singleton were also present. Director Greg Appel arrived at 6:58 p.m. CONSENT: READING AND PUBLIC HEARING - Resolution R-10-109 Approval of the minutes of the Colleyville Economic Development Corporation Board of Directors' meeting of January 12, 2010 Approval of the minutes of the Colleyville Economic Development Corporation Board worksession of August 10, 2010 Approval of the annual review of the Colleyville Economic Development Corporation's Investment Policy President Kelly read Resolution R-10-109 in its entirety. President Kelly opened the public hearing. There was no one present wishing to speak concerning this item and President Kelly closed the public hearing. Director Wollin moved to approve Resolution R-10-109, with the amendment to the August 10, 2010 CEDC minutes, page 2, as follows: Finance Manager Terry Leake stated the CEDC Board will meet August 24, 2010, for consideration of adopting the budget and EDCIP Plan. Director Hall seconded the motion. City of Colleyville Page 1 Printed on 8/19/2011 Economic Development Minutes - Draft August 24, 2010 Corporation Board The motion carried by the following vote: Aye: 6- Carol Wollin, Carel Tornes, Tom Hart, Stan Hall, David Kelly, Sue Kijowski Absent: 1 - Greg Appel 3. RESOLUTION(S): READING AND PUBLIC HEARING 3a R-10-110 Adopting the Economic Development Capital Improvement Program (EDCIP) for FY 2011-2015 President Kelly read Resolution R-10-110 in its entirety. President Kelly opened the public hearing. There was no one present wishing to speak concerning this item and President Kelly closed the public hearing. Finance Manager Terry Leake stated the CEDC bylaws require the Board to develop a combined Economic Development Capital Improvement Program (EDCIP) annually, which sets forth long and short-term goals. Ms. Leake outlined the changes in the Fiscal Year 2011 to 2015 EDCIP from the prior year EDCIP, which covered the period of Fiscal Year 2010 to Fiscal Year 2014 and answered questions of the Board. Ms. Leake also stated the revenue estimate is one-half of the sales tax revenue estimated in the City's proposed FY 2011 budget. Fiscal Years 2012-2015 include a 1% increase in sales tax. The use of available cash during FY 2011 - 2015 brings the fund balance down to $861,412 in Fiscal Year 2015. Economic Development Director Marty Wieder provided information regarding the appropriate funding for promotional expenditures and answered questions of the Board. Discussion ensued regarding the guidelines and budget for promotional expenditures. General Manager Jennifer Fadden stated if the Board would like to identify different expenditures for purely promotional advertising marketing dollars to be allocated in the CEDC budget, rather than funding events and special events for the community, staff could certainly try to shift those funds to the General Fund. There is not an City of Colleyville Page 2 Printed on 8/19/2011 Economic Development Minutes - Draft August 24, 2010 Corporation Board equal amount of funding in the General Fund to offset that amount. We could move all of the other marketing and advertising dollars allocated in the Economic Development budget in the General Fund to the CEDC promotional budget, but it is significantly less than the $69,000 proposed for special events. Ms. Fadden further stated other funds in CEDC, beyond promotional expenses, are not an appropriate use for special events. I do not believe, based on the ballot langua ge that approved the formation of the Colleyville Economic Development Corporation, as well as the state statute that establishes Economic Development Co rporations in Texas, would allow the City to use any other funds beyond the 10% promotional cap for special event purposes. President Kelly moved to approve Resolution R-10-110. Vice President Hart seconded the motion. The motion carried by the following vote: Aye: 6- Carol Wollin, Carel Tornes, Tom Hart, Stan Hall, David Kelly, Sue Kijowski Absent: 1 - Greg Appel 3b R-10-111 Adopting the Fiscal Year 2011 (FY 2011) Budget President Kelly read Resolution R-10-111 in its entirety. President Kelly opened the public hearing. There was no one present wishing to speak concerning this item and President Kelly closed the public hearing. Finance Manager Terry Leake reviewed the revenues and expenditures in the Colleyville Economic Development Corporation (CEDC) Fiscal Year 2011 budget. Discussion ensued regarding funding sources for the Colleyville Center renovation project and the Colleyville Tomorrow Fund balance. Parks and Recreation Director Monica Walsh provided information regarding the McPherson Park Splash Pad water usage. Director Wollin spoke regarding the timeline for completion of the second floor expansion of the Colleyville Public Library. City of Colleyville Page 3 Printed on 8/19/2011 Economic Development Minutes - Draft August 24, 2010 Corporation Board President Kelly moved to approve Resolution R-10-111. Director Wollin seconded the motion. The motion carried by the following vote: Aye: 7- Carol Wollin, Greg Appel, Carel Tornes, Tom Hart, Stan Hall, David Kelly, Sue Kijowski 3c R-10-112 Appointing a Colleyville Economic Development Corporation (CEDC) Board President and Vice President President Kelly read Resolution R-10-112 in its entirety. President Kelly opened the public hearing. There was no one present wishing to speak concerning this item and President Kelly closed the public hearing. Vice President Hart moved to approve Resolution R-10-112, appointing Director Kelly as President and Director Wollin as Vice President. Director Hall seconded the motion The motion carried by the following vote: Aye: 7- Carol Wollin, Greg Appel, Carel Tornes, Tom Hart, Stan Hall, David Kelly, Sue Kijowski President Kelly expressed appreciation to Director Hart for excellent service as Vice President of the CEDC. President Kelly congratulated Director Wollin on the appointment as Vice President of the CEDC. 4. REPORT(S): 4a Annual Activity Report There was no discussion of this item. 4b Annual Investment Report There was no discussion of this item. City of Colleyville Page 4 Printed on 8/19/2011 Economic Development Minutes - Draft August 24, 2010 Corporation Board 5. ADJOURNMENT There being no further business, President Kelly adjourned the meeting at 7:02 p. m. APPROVED BY A VOTE OF AYES, NAYS AND ABSTENTIONS ON THIS THE DAY OF 2011. Minutes taken and prepared by: Cynthia Singleton, TRMC, CMC City Secretary City of Colleyville Page 5 Printed on 8/19/2011 ~"~ ' CitV of ColleV ville ~p ~~ W~ ;- ~ + + N ~~ Y ~~ ~ ,'. , , ~"r,.~~ Minutes - Draft ~R;.~~.,~ Economic Development Corporation Boa rd City Hall 100 Main Street Colleyville, Texas 76034 817. 503.1000 www.colleyville.com Thursday, August 11, 2011 7:00 PM Executive Conference Room, 3rd floor The Colleyville Economic Development Corporation was called to order by President David Kelly on August 11, 2011, at 7:05 p.m. 2. 2a 2b ROLL CALL: Directors Stan Hall, Tom Hart, Carel Tornes and Vice President Carol Wollin were present. President David Kelly, General Manager Jennifer Fadden, Finance Manager Terry Leake, Economic Development Director Marty Wieder, Library Director Mary Rodne, Colleyville Center Manager Lin Przybyl and Secretary Cynthia Singleton were also present. Directors Greg Appel and Sue Kijowski were absent. PRESENTATION AND DISCUSSION Colleyville Economic Development Corporation (CEDC) Fiscal Year 2011 (FY 2011) budget update Finance Manager Terry Leake provided an update of the Colleyville Economic Development Corporation (CEDC) Fiscal Year 2011 budget and answered questions of the Board. Ms. Leake spoke regarding the state of the economy and that the sales tax revenue is higher than projected and the CEDC is in a stronger financial position than the prior year for the same period. Ms. Leake further stated an audit payment of over $74,000, combined with the sales tax revenue of $90,000, leaves a projected fund balance of almost $170,000 over the adopted budget. Finance Manager Leake stated the design of the Bogart Drive to Mission Lane segment of the Pleasant Run Trail will not be completed and the budgeted funds will be reallocated to that project in the proposed FY 2012 CEDC budget. Ms. Leake further stated the interest income line item reflects the all time historic low interest rates. Discussion of the FY 2012 - 2016 Economic Development Capital Improvement Program (EDCIP) priorities Finance Manager Terry Leake stated the bylaws of the CEDC require the Board to develop an Economic Development Capital Improvement City of Colleyville Page 1 Printed on 8/19/2011 Economic Development Minutes - Draft August 11, 2011 Corporation Board Program (EDCIP), which addresses the long and short-term development goals and needs of the City, reviewed the proposed FY 2012-2016 EDCIP priorities and answered questions of the Board. Ms. Leake stated the sales tax revenue projections are conservative based on previous history, however, the expected fund balance in 2016 will be approximately $850,000. Finance Manager Leake reviewed the carry forward funding for incomplete projects, which include Pleasant Run Trail design, Cotton Belt II spur at the Webb House, replacement tables at the Colleyville Center and Radio Frequency Identification (RFID) equipment for library material check-out and outlined the future projects funding allocation. Discussion ensued regarding the technology needs of the library and funding sources for completing the library's interior and furnishings. Library Director Mary Rodne stated a report identifying the remaining projects necessary to complete the library will be developed and provided to the CEDC Board for consideration. The Board requested the EDCIP and the FY 2012 budget be revised to provide for the library technology upgrades and projects. Discussion ensued regarding the Colleyville Center inventory and timetable for replacing tables and chairs. Discussion continued regarding the senior population in the City and the needs of the Senior Center. General Manager Jennifer Fadden stated the Parks Master Plan will come before the Parks and Recreation Advisory Board in October. General Manager Fadden suggested that the Master Plan be reviewed and the needs of seniors be prioritized at that time. There was general discussion regarding the McPherson Park Splash Pad and the promotions budget. Finance Manager Terry Leake stated $51,000 for library technology will be moved to the FY 2012 budget and the funding needed to complete the library projects will be moved from the 2014 future projects to the FY 2012 budget. The revised EDCIP and budget will be brought forward at the August 23, 2011 CEDC Board meeting for consideration. City of Colleyville Page 2 Printed on 8/19/2011 Economic Development Minutes - Draft August 11, 2011 Corporation Board 3. ADJOURNMENT There being no further business before the Board, President Kelly adjourned the meeting at 7:45 p.m. APPROVED BY A VOTE OF AYES, NAYS AND ABSTENTIONS ON THIS THE DAY OF 2011. Minutes taken and prepared by: Cynthia Singleton, TRMC, CMC City Secretary City of Colleyville Page 3 Printed on 8/19/2011 n ~M ~ ~ ~~w ~ °'~`~ City of Colleyville City Hall 100 M i S ~ ~ ~~~~ ~~ ` a n treet °"mm~^ Colleyville, Texas 76034 ° ~ Agenda Briefing 817.503.1000 www.colleyville.com File Number: File Type: Resolution Status: Consent Agenda Version: 1 Agenda Date: 08/23/2011 Controlling Body: Economic Development Corporation Board Requester: Office of the City Agenda No.: 2c Final Action: Manager File Name: Approval of the annual review of the Colleyville Economic Development Corporation's Investment Policy Attachments: Investment Policy.pdf History of Legislative File Version: Date: Acting Body: Action Text: 1 08/23/2011 Economic Development Corporation Board Title Approval of the annual review of the Colleyville Economic Development Corporation's Investment Policy Explanation Reading and Public Hearing 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. There are no changes proposed to the existing policy. Financial Impact There is no financial impact. Recommendation Approval City of Colleyville Page 1 Printed on 8/19/2011 COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION INVESTMENT POLICY Policy It is the policy of the Colleyville Economic Development Corporation (the Corporation) 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 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 Corporation's investment activities shall be: Safety: Safety of principal is the foremost objective of the Corporation in managing its portfolio. Investments of the Corporation shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective the Corporation will diversify its investments by investing funds among a variety of securities offering independent returns and financial institutions. Liquidity: The Corporation 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 Corporation 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 Corporation will attempt to earn allowable bond yield with market conditions permitting. Delegation of Authority The Corporation designates the Investment Officers to be the Corporation 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 that 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: 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 Corporation. 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 Corporation in writing of any conflicts of interest, as defined by the Public Funds Investment Act, no later than the next regularly scheduled Board meeting. It is the policy of the 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 the 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 71 st 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, FSLIC 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 which 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 rating 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 agent for the duration of the 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 Corporation's available funds. Unacceptable Investment Instruments The following securities, although authorized by the Public Funds Investment Act, are not eligible investments for the Corporation: Collateralized mortgage obligations 2. Commercial paper 3. Banker's acceptances 4. Reverse repurchase agreements (Local Government Investment Pools which the Corporation participates in may engage in reverse repurchase agreements if the term is 90 days or less) 5. No-load mutual funds other than 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. 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 Percent Diversification by Instrument of Portfolio U.S. Treasury Obligations (Bills, Notes and Bonds), 100% U.S. Government Agency Securities, and Instrumentalities of Government Sponsored Corporations 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% Investment Procedures The Corporation shall enter the following agreements (if applicable): safekeeping, PSA repurchase agreements, wire transfer agreements, banking services contracts, and collateral/depository agreements. These contracts shall include the explicit delegation of authority to persons responsible for the transactions involving these agreements. No person except those designated in the contract may engage in any investment transactions. On all funds invested in instruments as listed in "Permissible Investments" numbers one through five, oral bids shall be requested from at least two broker/dealers or national banks. The Corporation will accept the bid that 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 that was made regarding the investment. Qualified Institutions As the Corporations investments are managed by the investment officers of the City of Colleyville, the Corporation shall utilize the broker/dealers selected by the City of Colleyville. All firms shall answer the Broker/Dealer questionnaire (Appendix A) and subm it their most recent audited financial statements to the City 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 Corporation, depository which pledged the collateral, and the third party custodian of the collateral. The Corporation will retain possession of all original safekeeping receipts and the receipts will state the security is pledged to the Corporation. Either the Corporation 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 Corporation 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. Texas state, city county or school bonds with a remaining maturity of seven years or less and a rating of "A" or better by Moody's, Fitch ICBA, and Standard and Poor's. F. Surety Bond Collateral shall be "marked to market" monthly by the Finance Manager. The following percentages constitute the minimum market value for collateral instruments that are pledged for the Corporation's Certificates of Deposit and demand deposits. Form of Collateral PledgedCollateral 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% 4. Entities in the State of Texas bonds General Obligation Bonds a. maturing in less than 1 year 102% b. maturing in 1-5 years 105% c. maturing in more than 5 years 107% Revenue Bonds a. maturing in less than 1 year 105% b. maturing in 1-5 years 110% c. maturing in more than 5 years 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, 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 Manager 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. R:~'~',5:..+~~~ J~ p ~~ ~~ f~~ I~6q~ ~mm ~ , City of Colleyville Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 817. 503.1000 www.colleyville.com File Number: R-11-114 File Number: R-11-114 Version: 1 Requester: Office of the City Manager File Type: Resolution Agenda Date: 08/23/2011 Status: Resolution Controlling Body: Economic Development Corporation Board Agenda No.: 3a Final Action: File Name: Adopting the Economic Development Capital Improvement Program (EDCIP) for FY 2012-2016 Attachments: EDCIP FY 2012-2016 - Exhibit A.pdf • EDCIP FY 2011-2015 - Exhibit B.pdf • Resolution R-11-114 History of Legislative File Version: Date: Acting Body: Action Text: 1 08/23/2011 Economic Development Corporation Board Title Adopting the Economic Development Capital Improvement Program (EDCIP) for FY 2012-2016 Explanation Reading and Public Hearing The Colleyville Economic Development Corporation bylaws require the Board to develop a combined Economic Development Capital Improvement Program (EDCIP) annually, 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 the implementation." After the EDCIP is developed, it must be approved by the City Council. On August 11, 2011, the Board met in a worksession to provide input on the FY 2012-2016 EDCIP. The following FY 2012 - 2016 EDCIP (Exhibit A) is as directed by the Board. The proposed changes from the attached adopted FY 2011 - FY 2015 EDCIP (Exhibit B) are as follows: Revenues: Projection of sales tax growth conservatively remains at 1% annually throughout the next five years. There is a reduction of projected interest income, due to projected investment return rates continuing to remain at record low levels. There is the use of available cash from the .4 times bond coverage ratio in all years of the plan, with the ending target fund City of Colleyville Page 1 Printed on 8/19/2011 Apenda Briefinp Continued (R-11-1141 balance in 2016 at a level slightly above $850,000. Expenditures: FY 2012: Carry forward of funding for incomplete projects - Pleasant Run Trail design (Bogart Drive to Mission Lane) -$58,000. In the FY 2011 budget, there was funding for four part-time library clerk positions related to the expansion of the second floor of the library. The project was completed and the second floor opened on June 6, 2011. This resulted is a salary savings of $46,532, and it is proposed these savings coupled with an additional $78,566, be allocated for the purchase of the remaining technology ($13,152), furniture, fixtures and equipment ($65,414) purchases related to the library expansion project for use on the second floor, teen room, first floor adult area and staff work area. There is also funding included for the replacement of the RFID equipment for library material check-out ($51,000), which was installed when the Library was opened in 2003. The existing equipment and Radio Frequency Identification (RFID) material tags are no longer offered by the vendor. The $134,905 balance of the Senior Center Open Area Phase I remains allocated to a future parks project, pending the completion of the Parks Master Plan in FY 2012. FY 2013: Carry forward of funding for incomplete projects - Cotton Belt II spur at Webb House - $165,000. Funding is included for the replacement of tables at the Colleyville Center ($9,000). These are replacements of the original tables purchased when the Colleyville Center opened in 1998. FY 2014: The future projects category was increased to $400,000 from $50,000. FY 2015: The future projects allocation is increased from $300,000 to $370,000. Funding is also included for the replacement of chairs at the Colleyville Center ($37,000). The chairs are used at over 600 events annually and were last replaced in 2005. FY 2016: The future projects allocation is $400,000. Financial Impact The revenue estimate is one-half of the sales tax revenue estimated in the City's proposed FY 2012 budget. FY 2013-2016 includes a 1% increase in sales tax. The use of available cash during FY 2012 - 2016 brings fund balance down to $851,953 in FY 2016. Recommendation Approval City of Colleyville Page 2 Printed on 8/19/2011 COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION ECONOMIC DEVELOPMENT CAPITAL IMPROVEMENT PROGRAM FY 2012 - FY 2016 FISCAL YEAR BEGINNING FUND BALANCE REVENUES: PROJECTED 1!2 CENT SALES TAX REVENUE INTEREST INCOME USE OF AVAILABLE CASH TOTALREVENUES OPERATING: ADMINISTRATIVE 2005 DEBT SERVICE 8 1.4 TIMES COVERAGE PROMOTIONAL WATER / WASTEWATER- MC PHERSON PARK PERSONNEL - SENIOR CENTER PERSONNEL-LIBRARY OPERATIONS - LIBRARY EXHIBIT A 2011 2012 2013 2014 2015 2016 $2,173,015 $1,702,334 $1,355,958 $1,100,004 $905,114 $874,215 $1,277,500 $1,290,275 $1,303,178 $1,316,210 $1,329,372 $1,342,665 $3,900 $3,405 $2,712 $2,200 $1,810 $1,748 $728,360 $605,011 $515,301 $452,742 $289,053 $282,430 $2,009,759 $1,898,691 $1,821,190 $1,771,151 $1,620,234 $1,626,843 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $901,873 $905,223 $907,711 $902,482 $903,536 $910,584 $120,000 $129,368 $130,589 $131,841 $133.118 $134,441 $16,000 $16,480 $16,974 $17,484 $18,008 $18,548 $70,095 $70,095 $72,198 $74.364 $76,595 $78,893 $21,649 $69,024 $71,095 $73,227 $75,424 $77,687 $4,046 $4,167 $4,292 $4,421 $4,554 $4,690 CAPITAL: INTERFUND LOAN - COLLEYVILLE CENTER RENOVATIONS $165,331 ($661,325 REPAID OVER 4 YEARS) COLLEYVILLE CENTER - REPLACEMENT TABLES $0 COLLEYVILLE CENTER - REPLACEMENT CHAIRS $0 LIBRARY SECOND FLOOR EXPANSION $522,274 LIBRARY - COLLECTION SORTER $86,491 LIBR.4RY - BALANCE OF UNUSED 2011 SALARIES (FF&E) $0 LIBR,4RY - SECOND FLOOR, TEEN ROOM AND FIRST FLOOR-TECHNOLOGY / FFBE LIBRARY TECHNOLOGY REPLACEMENTS $0 '~ CITYWIDE TRAIL SYSTEM $765,331 $165,331 $165,332 $0 $0 $0 $9,000 $0 $0 $0 $0 $0 $0 $37,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $46,532 $0 $6 $0 $0 $78.566 $51,000 $0 $0 $0 $0 COTTON BELT II SPUR @ WEBB HOUSE CONSTRUCTION $0 $0 $165,000 $0 $0 $0 COTTON BELT II SPUR @ L.D. LOCKETT PARK CONSTRUCTION $100,000 $0 $0 $0 $0 $0 PLEASANT RUN TRAIL DESIGN (BOGART TO MISSION)-CARRY FORWARD $0 $58,000 $0 $0 $0 $0 PLEASANT RUN TRAIL ROW ACQUISITION (80GART TO MISSION) $0 $168,000 $0 $0 $0 $0 PLEASANT RUN TRAIL CONSTRUCTION (BOGART TO MISSION) $0 $0 $277,000 $0 $0 $0 FUTURE PROJECTS - PARKS $0 $134,905 $0 $0 $0 $0 FUTURE PROJECTS $0 $0 $0 $400.000 $370,000 $400,000 TOTAL EXPENDITURES $2,009,759 $1,898.691 $1,821.191 $1,771,151 $1,620,235 $1.626,844 EXCESS REVENUES OVER EXPENDITURES $0 $0 $0 $0 $0 $0 ADD BACK .4 TIMES BOND COVERAGE RATtO $257,678 $258,635 $259,346 $257,852 $258,153 $260,167 ENDING FUND BALANCE $1,702,334 $1.355,958 $1,100,004 $905,114 $874,215 $851,953 ASSUMPTIONS: FY 2012: 1!2 OF CITY SALES TAX BUDGET PROJECTION / FY 2013 - 2016: 1% GROWTH COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION ECONOMIC DEVELOPMENT CAPITAL IMPROVEMENT PROGRAM FY 2011 - FY 2015 FISCAL YEAR 2010 201' BEGINNING FUND BALANCE $2,228,621 $2,007,114 $1,342,316 $980,748 $810,873 $875,984 REVENUES: PROJECTED 1/2 CENT SALES TAX REVENUE $1,166,820 $1,178,488 $1,190,273 $1,202,176 $1,214,197 $1,226,339 INTEREST INCOME $11,143 $15,053 $13,423 $9,807 $8,109 $8,109 USE OF AVAILABLE CASH $480,023 $922,476 $620,204 $429,221 $192,741 $272,725 TOTALREVENUES $1,657,986 $2,116,017 $1,823,900 $1,641,204 $1,415,047 $1,507,173 EXPENDITURES: OPERATING: ADMINISTRATIVE $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 2005 DEBT SERVICE & 1.4 TIMES COVERAGE $904,806 $901,873 $905,223 $907,711 $902,482 $903,536 PROMOTIONAL $216,400 $120,000 $120,370 $121,198 $122,231 $123,445 KEEP COLLEYVILLE BEAUTIFUL AGENCY AGREEMENT $3,000 $0 $0 $0 $0 $0 WATER / WASTEWATER- MC PHERSON PARK $15,000 $16,000 $16,480 $16,974 $17,484 $18,008 PERSONNEL-SENIORCENTER $70,654 $70,095 $72,198 $74,364 $76,595 $78,893 PERSONNEL-LIBRARY $0 $68,181 $70,226 $72,333 $74,503 $76,738 OPERATIONS - LIBRARY $0 $4,046 $4,167 $4,292 $4,421 $4,554 TRANSFER TO ARTS FUND $0 $0 $0 $0 $0 $0 CAPITAL: ENTRY MARKER $293,521 $0 $0 $0 $0 $0 INTERFUND LOAN - COLLEYVILLE CENTER RENOVATIONS $0 $165,331 $165,331 $165,331 $165,332 $0 ($661,325 REPAID OVER 4 YEARS) LIBRARY SECOND FLOOR EXPANSION $51,000 $524,000 $0 $0 $0 $0 LIBRARY - COLLECTION SORTER $0 $86,491 $0 $0 $0 $0 CITYWIDE TRAIL SYSTEM COTTON BELT II SPUR @ WEBB HOUSE CONSTRUCTION $0 $0 $165,000 $0 $0 $0 COTTON BELT II SPUR @ L.D. LOCKETT PARK CONSTRUCTION $0 $100,000 $0 $0 $0 $0 PLEASANT RUN TRAIL (HARDAGE LN. TO COTTONBELT) $86,510 $0 $0 $0 $0 $0 PLEASANT RUN TRAIL DESIGN (BOGART TO MISSION) $0 $58,000 $0 $0 $0 $0 PLEASANT RUN TRAIL ROW ACQUISITION (BOGART TO MISSION) $0 $0 $168,000 $0 $0 $0 PLEASANT RUN TRAIL CONSTRUCTION (BOGART TO MISSION) $0 $0 $0 $277,000 $0 $0 SENIOR CENTER OPEN AREA - PHASE I $15,095 $0 $0 $0 $0 $0 FUTURE PROJECTS - PARKS $0 $0 $134,905 $0 $0 $0 FUTURE PROJECTS $0 $0 $0 $0 $50,000 $300,000 TOTALEXPENDITURES $1,657,986 $2,116,017 $1,823,900 $1,641,204 $1,415,048 $1,507,173 EXCESS REVENUES OVER EXPENDITURES $0 $0 ADD BACK .4 TIMES BOND COVERAGE RATIO $258,516 $257,678 ENDING FUND BALANCE $2,007,114 $1,342,316 ASSUMPTIONS: FY 2011: 1/2 OF CITY SALES TAX BUDGET PROJECTION / FY 2012 - 2015: 1% GROWTH EXHIBIT B 2012 2013 2014 2015 $0 $258,635 $0 $259,346 $0 $257,852 $0 $258,153 $980,748 $810,873 $875,984 $861,412 RESOLUTION R-11-114 A RESOLUTION ADOPTING THE ECONOMIC DEVELOPMENT CAPITAL IMPROVEMENT PROGRAM (EDCIP) FOR FISCAL YEARS 2012-2016 WHEREAS, the bylaws of the Colleyville Economic Development Corporation require that an Economic Development Capital Improvement Program 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 EDCIP shall identify the projects to be undertaken by the Corporation and include proposed methods and the expected cost of the implementation. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION: Sec. 1. THAT the Economic Development Capital Improvement Program of the Colleyville Economic Development Corporation (Exhibit A) is hereby adopted. Sec. 2. THAT once approved, the EDCIP will be forwarded to the City Council for their subsequent approval. Sec. 3. THAT this Resolution shall become effective on the date of passage. AND IT IS SO RESOLVED. PASSED AND ADOPTED, THIS August 23, 2011. COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION David Kelly President ATTEST: Cynthia Singleton, TRMC, CMC City Secretary COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION ECONOMIC DEVELOPMENT CAPITAL IMPROVEMENT PROGRAM FY 2012 - FY 2016 FISCAL YEAR BEGINNING FUND BALANCE REVENUES: PROJECTED 1/2 CENT SALES TAX REVENUE INTEREST INCOME USE OF AVAILABLE CASH TOTALREVENUES EXPENDITURES: ~;; ~ ,_ E=w OPERATING: ADMINISTRATIVE 2005 DEBT SERVICE & 1.4 TIMES COVERAGE PROMOTIONAL WATER / WASTEWATER- MC PHERSON PARK PERSONNEL - SENIOR CENTER PERSONNEL-LIBRARY OPERATIONS - L18RARY EXHIBIT A 2011 2012 2013 2014 2015 2016 $2,173,015 $1.702,334 $1,355,958 $1,100,004 $905,114 $874,215 $1,277,500 $1,290,275 $1,303,178 $1,316,210 $1,329,372 $1,342,665 $3,900 $3,405 $2,712 $2,200 $1,810 $1,74g $728,360 $605,011 $515,301 $452,742 $289,053 $282,430 $2,009.759 $1,898.691 $1,821,190 $1.771.151 $1,620,234 $1,626,843 $2,000 $2,000 $2.000 $2,000 $2,000 $2,000 $901,873 $905,223 $907,711 $902,482 $903,536 $910,584 $120,000 $129,368 $130,589 $131,841 $133,118 $134,441 $16,000 $16,480 $16,974 $17,484 $18,008 $18,548 $70,095 $70,095 $72,198 $74,364 $76,595 $78,893 $21,649 $69,024 $71,095 $73,227 $75,424 $77,687 $4,046 $4,167 $4,292 $4,421 $4,554 $4,690 CAPITAL: INTERFUND LOAN - COLLEYVILLE CENTER RENOVATIONS $165,331 ($661,325 REPAID OVER 4 YEARS) COLLEYVILLE CENTER - REPLACEMENT TABLES $0 COLLEYVILLE CENTER - REPLACEMENT CHAIRS $0 LIBRARY SECOND FLOOR EXPANSION $522,274 LIBRARY - COLLECTION SORTER $86,491 LIBRARY - BALANCE OF UNUSED 2011 SALARIES (FF&E) $0 LIBRARY - SECOND FLOOR, TEEN ROOM AND FIRST FLOOR-TECHNOLOGY / FF&E LIBRARY TECHNOLOGY REPLACEMENTS $0 ~~ CITYWIDE TRAIL SYSTEM $165,331 $165,331 $165,332 $0 $0 $0 $9,000 $0 $0 $0 $0 $0 $0 $37,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $46,532 $0 $0 $0 $0 $76,566 $51.000 $0 $0 $0 $0 COTTON BELT II SPUR @ WEBB HOUSE CONSTRUCTION $0 $0 $165,000 $0 $0 $0 COTTON BELT 11 SPUR @ L.D. LOCKETT PARK CONSTRUCTION $100,000 $0 $0 $0 $0 $0 PLEASANT RUN TRAIL DESIGN (BOGART TO MISSION)-CARRY FORWARD $0 $58,000 $0 $0 $0 $0 PLEASANT RUN TRAIL ROW ACQUISITION (BOGART TO MISSION) $0 $168,000 $0 $0 $0 $0 PLEASANT RUN TRAIL CONSTRUCTION (BOGART TO MISSION) $0 $0 $277,000 $0 $0 $0 FUTURE PROJECTS-PARKS $0 $134,905 $0 $0 $0 $0 FUTURE PROJECTS $0 $0 $0 $400,000 $370,000 $400,000 TOTAL EXPENDITURES $2,009,759 $1,898,691 $1,821,191 $1,771,151 $1,620,235 $1,626,844 EXCESS REVENUES OVER EXPENDITURES $0 $0 $0 $0 $0 $0 ADD BACK .4 TIMES BOND COVERAGE RATIO $257,678 $258,635 $259,346 $257,852 $258,153 $260,167 ENDING FUND BALANCE $1,702,334 $1,355,958 $1,100,004 $905,114 $874,215 $851,953 ASSUMPTIONS: FY 2012: 1/2 OF CITY SALES TAX BUDGET PROJECTION / FY 2013 - 2016: 1% GROWTH R:~'~',5:..+~~~ J~ p ~~ ~~ f~~ I~6q~ ~mm ~ , City of Colleyville Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 817. 503.1000 www.colleyville.com File Number: R-11-115 File Number: R-11-115 Version: 1 Requester: Office of the City Manager File Type: Resolution Agenda Date: 08/23/2011 Status: Resolution Controlling Body: Economic Development Corporation Board Agenda No.: 3b File Name: Adopting the Fiscal Year 2012 (FY 2012) Budget Final Action: Attachments: FY 2012 Budget Summary.pdf • FY 2012 CEDC Promotional Budget.pdf • Resolution R-11-115. pdf History of Legislative File Version: Date: Acting Body: Action Text: 1 08/23/2011 Economic Development Corporation Board Title Adopting the Fiscal Year 2012 (FY 2012) Budget Explanation Reading and Public Hearing Per the Colleyville Economic Development Corporation (CEDC) bylaws, the Board of Directors must adopt an annual budget. The attached FY 2012 budget replicates the FY 2012 revenues and expenditures contained in the proposed FY 2012 - 2016 EDCIP (Agenda item 3a). The sales tax portion of the revenue estimate ($1,290,275) is one-half of the sales tax revenue estimate in the City's proposed FY 2012 budget. Total proposed expenditures include the following: Ca pital: • Library - Furniture, Fixtures & Equipment second floor expansion $ 46,532 FY 2011 - balance of unused salaries • Library - Technology, Furniture, Fixtures & Equipment second floor expansion, teen room and first floor $ 78,566 • Library - Technology replacements - RFID system $ 51,000 • Pleasant Run Trail (Bogart to Mission) design $ 58,000 FY 2011 expenditure carry forward • Pleasant Run Trail (Bogart to Mission) ROW acquisition $ 168,000 FY 2011 expenditure carry forward • Future Projects - Parks $ 134,905 FY 2011 expenditure carry forward City of Colleyville Page 1 Printed on 8/19/2011 Apenda Briefinp Continued (R-11-1151 Operating: • Administrative $ 2,000 • Personnel - Senior Center Supervisor position $ 70,095 • Personnel - Library (four part time positions) $ 69,024 • Operations - Library $ 4,167 • Promotional $ 129,368 • Water/wastewater McPherson splash pad $ 16,000 • Debt service on the 2005 sales tax refunding bonds $ 646,588 • Interfund loan repayment - Colleyville Center renovations $ 165,331 The budget also utilizes $605,011 in available cash balance, with the projected ending Fiscal Year2011 Fund Balance being $1,702,334. Financial Impact Adoption will provide appropriations for the FY 2012 budget. Recommendation Approval City of Colleyville Page 2 Printed on 8/19/2011 COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION FY 2012 BUDGET SUMMARY BEGINNING FUND BALANCE REVENUES: SALES TAX REVENUES INTEREST INCOME USE OF AVAILABLE CASH TOTALREVENUES FY 2011 ANTICIPATED $ 2,173, 015 1,277,500 3, 900 728, 360 FY 2012 PROPOSED $ 1,702,334 $ 1,290,275 $ 3,405 $ 605,011 $ 1,898,691 2, 009, 760 LESS EXPENSES: ADMI NI STRATI VE EXPENSES: MARKETING PERSONNEL- SENIOR CENTER SUPERVISOR PERSONNEL- LIBRARY OPERATIONS - LIBRARY WATER-MC PHERSON PARK DEBT SERVICE INTERFUND LOAN REPAYMENT - COLLEYVILLE CENTER RENOVATION CAPITAL PROJECTS: LIBRARY SECOND FLOOR EXPANSION LIBRARY COLLECTION SORTER LIBRARY SECOND FLOOR EXPANSION FF&E (BALANCE OF UNUSED FY 2011 SALARIES) LIBRARY SECOND FLOOR, TEEN ROOM AND FIRST FLOOR - TECHNOLOGY AND FF&E LIBRARY TECHNOLOGY REPLACEMENTS TRAIL CONSTRUCTION - PLEASANT RUN (HARDAGE LN. TO COTTONBELT) TRAIL CONSTRUCTION - PLEASANT RUN (BOGART TO MISSION) DESIGN TRAIL CONSTRUCTION - PLEASANT RUN (BOGART TO MISSION) ROW ACQUISITION FUTURE PROJECTS - PARKS TOTAL EXPENSES $ 1,752,081 $ 1,640,056 EXCESS REVENUES OVER EXPENSES $ 257,679 $ 258,635 ENDING FUND BALANCE $ 1,702,334 $ 1,355,958 NOTE: A COVERAGE RATIO OF 1.4 IS REQUIRED TO MEET THE SALES TAX BOND COVENANTS. FOR FY 2012 REVENUES MUST EXCEED EXPENDITURES BY AT LEAST $258,635. 2,000 $ 2,000 120,000 $ 129,368 70,095 $ 70,095 21,649 $ 69,024 4,046 $ 4,167 16,000 $ 16,480 644,195 $ 646,588 165,331 $ 165,331 522,274 $ - 86,491 $ - - $ 46,532 - $ 78,566 - $ 51,000 100,000 $ - - $ 58,000 - $ 168,000 - $ 134,905 COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION FY 2012 Promotional Budget L?~scriptivn ~~~~~~~ F~cplanation ~~~~~ T€~tal Rrcc~posed'~~ Ct~sts~~~~~~~~~~~ MERCHANDISING PLAN: $10,000 Da ime Po ulation/Em lo mentAnal sis $10,000 COLLEYVILLE CLOSEBUY: $22,200 Colle ville CloseBu Pro ram: Event and Pro ram ads, events $4,000 Monthl Business Events $500/month for 20 on the 20th $6,000 Fre uent Bu er Cards $6,000 Colle ville CloseBu Merchandise $2,000 Chamber Nation Subscri tion Colle ville CloseBu Website $4,200 COME TO COLLEYVILLE PROGRAM: $22,168 Sho in and Dinin Guide $2,800 Fort Worth, TX or D Ma azine contin enc ads $10,000 Bridal Ex os $5,368 Marketin Desi n and Production $4,000 SPECIAL EVENTS: $75,000 Old Tyme BBQ/spring event (Colleyville Center/Town Center) $15,000 Holly Colley Christmas/Holiday Event (in the Village at Colleyville) $35,000 Red, White & Sousa (in the Village at Colleyville) $25,000 Total $129,368 RESOLUTION R-11-115 A RESOLUTION ADOPTING AN ANNUAL BUDGET FOR FISCAL YEAR 2012 FOR THE COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION WHEREAS, the bylaws of the Colleyville Economic Development Corporation require that an annual budget be adopted by the Board of Directors; and WHEREAS, the bylaws 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 2012 budget amounts for the Colleyville Economic Development Corporation are as follows: Revenues $1,898,691 Expenditures $1,640,056 AND IT IS SO RESOLVED. PASSED AND ADOPTED, THIS August 23, 2011. COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION David Kelly President ATTEST: Cynthia Singleton, TRMC, CMC City Secretary R:~'~',5:..+~~~ J~ p ~~ ~~ f~~ I~6q~ ~mm ~ , City of Colleyville Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 817. 503.1000 www.colleyville.com File Number: R-11-116 File Number: R-11-116 Version: 1 Requester: Office of the City Secretary File Type: Resolution Agenda Date: 08/23/2011 Status: Resolution Controlling Body: Economic Development Corporation Board Agenda No.: 3c Final Action: File Name: Appointing a Colleyville Economic Development Corporation (CEDC) Board President and Vice President Attachments: CEDC bylaws excerpt.pdf • Colleyville Econimic Development Corporation roster • Resolution R-11-116.pdf History of Legislative File Version: Date: Acting Body: Action Text: 1 08/23/2011 Economic Development Corporation Board Title Appointing a Colleyville Economic Development Corporation (CEDC) Board President and Vice President Explanation Reading and Public Hearing On August 24, 2010, the Colleyville Economic Development Corporation (CEDC) Board of Directors elected Director David Kelly as President and Director Carol Wollin as Vice President. As per the CEDC bylaws, 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. This item provides for the Board of Directors to elect a President and Vice President of the CEDC. Financial Impact There is no financial impact. Recommendation Approval City of Colleyville Page 1 Printed on 8/19/2011 CEDC Bylaws Excerpt 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 of the 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- Colleyville Economic Development Corporation PRESIDENT David Kelly 905 Inwood Lane Colleyville, TX 76034 H: (817) 656-1862 dkelly(a~colleyville.com TERM:Jun 2010 - May 2013 VICE PRESIDENT Carol Wollin 4600 Dartmoore Lane Colleyville, TX 76034 H: (817) 281-3058 cwollin(a~colleyville.com TERM:Jun 2010 - May 2013 DIRECTOR Greg Appel 404 Lloyd Circle Colleyville, TX 76034 H: (817) 428-1337 qappel a(~sbcqlobal.net TERM:Sep 2009 - Sep 2011 DIRECTOR Tom Hart 1717 Avondale Colleyville, TX 76034 H: (817) 540-1171 th a rt(a~ co I I eyvi I I e. co m TERM:Aug 2009 - May 2012 DIRECTOR Carel Tornes 6712 Hillier Court Colleyville, TX 76034 H: (817) 788-5611 careltornesCa~qmail. com TERM:Sep 2009 - Sep 2011 GENERAL MANAGER Jennifer Fadden 100 Main Street Colleyville, TX 76034 W: (817) 503-1116 Ifadden(a~colleyville.com DIRECTOR Stan Hall 6229 Cimmaron Trail Colleyville, TX 76034 H: (817) 488-2996 shallCa~collevville.com TERM:May 2011 - May 2014 DIRECTOR Sue Kijowski 6603 Carriage Drive Colleyville, TX 76034 H: (817) 251-4438 suekilowski(a~qmail.com TERM:Sep 2009 - Sep 2011 FINANCE MANAGER Terry Leake 100 Main Street Colleyville, TX 76034 W: (817) 503-1115 tl ea keCa~ co I I evvi I I e. co m SECRETARY Cynthia Singleton 100 Main Street Colleyville, TX 76034 W: (817) 503-1133 csinqleton(a~colleyville.com 08/17/2011 RESOLUTION R-11-116 A RESOLUTION APPOINTING A COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION BOARD PRESIDENT AND VICE PRESIDENT WHEREAS, the Bylaws of the Colleyville Economic Development Corporation, Article I I I, Officers, Section 1, Titles and Term of Office, state the President and the Vice President shall be elected by the Board and shall serve a term of one year; and WHEREAS, the President and Vice President shall continue to serve until their successors are appointed as provided in Article II, Section 1. 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 23, 2011. COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION David Kelly President ATTEST: Cynthia Singleton, TRMC, CMC City Secretary R:~'~',5:..+~~~ J~ p ~~ ~~ f~~ I~6q~ ~mm ~ , City of Colleyville Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 817. 503.1000 www.colleyville.com File Number: Version: 1 File Type: Report Agenda Date: 08/23/2011 Status: Reports Controlling Body: Economic Development Corporation Board Requester: Office of the City Manager File Name: Annual Activity Report Agenda No.: 4a Attachments: FY 2011 Annual Activity Report.pdf History of Legislative File Final Action: Version: Date: Acting Body: Action Text: 1 08/23/2011 Economic Development Corporation Board Title Annual Activity Report Explanation The Colleyville Economic Development Corporation bylaws require that the Board make an annual report by February 1, 2012 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 report that will be submitted to the City Council at the September 6, 2011 City Council meeting. City of Colleyville Page 1 Printed on 8/19/2011 ANNUAL REPORT OF THE COLLEYVILLE ECONOMIC DEVELOPMENT CORPORATION ACTIONS OF THE CORPORATION On August 24, 2010, the Board held its annual meeting and approved the FY 2011 annual budget for the Corporation with projected revenues of $2,116,017 and expenses of $1,858,339. The Board also adopted the attached Exhibit "A" Economic Development Capital Improvement Program (EDCIP) for Fiscal Years 2011 through 2015. Throughout the period of FY 2011-2015, there was a reduction of the projection of sales tax growth from 2% to 1% annually, and reduction of projected interest income due to projected investment return rates continuing to remain at record low levels The EDCIP provided funding in FY 2011 for the Colleyville Public Library second floor expansion ($524,000), Library collection sorter ($86,491), Cotton Belt II spur at L.D. Lockett Park ($100,000), and Pleasant Run Trail design - Bogart to Mission ($58,000). Due to recent changes in state law limiting promotional expenditures to 10 percent of revenues, $120,000 is allocated for promotional expenditures including $19,000 for the "Keep It Colleyville" program, $26,000 for the "Come to Colleyville" program and $69,000 for special events such as Holly Colley Christmas, Old Tyme BBQ and Red, White & Sousa. In FY 2012 there was a carry forward of funding for Cotton Belt II spur at Webb House ($165,000), and Pleasant Run Trail right-of-way acquisition - Bogart to Mission ($168,000). The $134,905 balance of the Senior Center Open Area Phase I was reallocated to a future parks project, pending the completion of the Parks Master Plan. There was funding allocated from the future projects category for Pleasant Run Trail construction - Bogart to Mission ($277,000) in FY 2013, with the possibility that a future federal grant that could reduce the cost of this project. For the final two years of the EDCIP, the future projects allocation was $50,000 and $300,000, for FY 2014 and FY 2015, respectively, and the ending fund balance in FY 2015 was $861,412. On August 11, 2011, the Board held a worksession to discuss the FY 2012-2016 EDCIP prior to the annual meeting to be held on August 23, 2011. The following changes were proposed from the FY 2011-2015 EDCIP: Revenues: Projection of sales tax growth conservatively remains at 1% annually throughout the next five years. There is a reduction of projected interest income, due to projected investment return rates continuing to remain at record low levels. There is the use of available cash from the .4 times bond coverage ratio in all years of the plan, with the ending target fund balance in 2016 at a level slightly above $850,000. Expenditures: FY 2012: Carry forward of funding for incomplete projects - Pleasant Run Trail design (Bogart Drive to Mission Lane) -$58,000. In the FY 2011 budget, there was funding for four part-time library clerk positions related to the expansion of the second floor of the library. The project was completed and the second floor opened on June 6, 2011. This resulted is a salary savings of $46,532, and it is proposed these savings be allocated for the purchase of additional furniture and fixtures related to the library expansion project. The $134,905 balance of the Senior Center Open Area Phase I remains allocated to a future parks project, pending the completion of the Parks Master Plan in FY 2012. FY 2013: Carry forward of funding for incomplete projects - Cotton Belt II spur at Webb House - $165,000. Funding is included for the replacement of tables at the Colleyville Center ($9,000). These are replacements of the original tables purchased when the Colleyville Center opened in 1998. There is also funding included for the replacement of the RFID equipment for library material check-out ($51,000), which was installed when the Library was opened in 2003. The existing equipment and Radio Frequency Identification (RFID) material tags are no longer offered by the vendor. FY 2014: The future projects category was increased to $425,000 from $50,000. FY 2015: The future projects allocation is increased from $300,000 to $400,000. Funding is also included for the replacement of chairs at the Colleyville Center ($37,000). The chairs are used at over 600 events annually and were last replaced in 2005. FY 2016: The future projects allocation is $425,000. R:~'~',5:..+~~~ J~ p ~~ ~~ f~~ I~6q~ ~mm ~ , City of Colleyville Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 817. 503.1000 www.colleyville.com File Number: File Type: Report Version: 1 Agenda Date: 08/23/2011 Requester: Agenda No.: 4b File Name: Annual Investment Report Attach ments: History of Legislative File Status: Reports Controlling Body: Economic Development Corporation Board Final Action: Version: Date: Acting Body: Action Text: 1 08/23/2011 Economic Development Corporation Board Title Annual Investment Report Explanation From the period of October 1, 2010 through July 31, 2011, the Colleyville Economic Development Corporation had an average $1,371,324 invested in the Local Government Investment Cooperative (LOGIC) Pool, earning $2,268 during this period. From the period of October 1, 2010 through May 31, 2011, the Corporation held a Treasury note with a par value of $550,000, that earned $1,992. Currently, the Corporation holds a Treasury note with a purchase price of $552,320 (par value $550,000) and a market value of $551,738, yielding 0.202%, which will mature June 30, 2012. City of Colleyville Page 1 Printed on 8/19/2011