HomeMy WebLinkAboutOrdinance - 2021-O0059 - Budget Amendment #27First Reading
May 25, 2021
Item No. 6.7
ORDINANCE NO. 2021-00059
Second Reading
June 8, 2021
Item No. 7.3
AN ORDINANCE AMENDING THE FY 2020-21 BUDGET FOR MUNICIPAL PURPOSES
RESPECTING THE OPERATING BUDGET FOR LUBBOCK ECONOMIC
DEVELOPMENT ALLIANCE AND MARKET LUBBOCK INC. (MLI) — VISITORS
BUREAU (VISIT LUBBOCK); PROVIDING FOR FILING; AND PROVIDING FOR A
SAVINGS CLAUSE.
WHEREAS, Section 102.010 of the Local Government Code of the State of Texas
authorizes the City Council to make changes in the budget for municipal purposes; and
WHEREAS, in accordance with the City Budget Ordinance the City Council shall
approve all transfers between funds; and
WHEREAS, the City Council deems it advisable to change the FY 2020-21 Budget for
municipal purposes and reallocate funds as follows; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1. THAT the City Council of the City of Lubbock hereby approves changes
to the City of Lubbock Budget FY 2020-21 (Budget Amendment #27) for municipal purposes,
as follows:
I. Amend the FY 2020-21 Lubbock Economic Development Alliance, Inc. Operating
Budget as Shown in Exhibit A.
II. Amend the FY 2020-21 MLI —Visit Lubbock Operating Budget as shown in Exhibit
B.
SECTION 2. THAT a copy of the changes made to the City of Lubbock Budget
pursuant to this Ordinance shall be filed with the City Secretary and County Clerk of Lubbock
as required by law.
SECTION 3. THAT should any section, paragraph, sentence, clause, phrase or word of
this Ordinance be declared unconstitutional or invalid for any reason, the remainder of this
Ordinance shall not be affected thereby.
AND IT IS SO ORDERED
Passed by the City Council on first reading on May 25, 2021
Passed by the City Council on second reading on June , 21
DANIEL M. POPEIWIAYOR
ATTEST:
Reh cca Garza
City Secretary
APPROVED AS TO CONTENT:
D. u Kesfelich
Chief Financial Officer
APPROVED AS TO FORM:
Amy Si
Deputy City Attorney
ccdocs/nudgetFY2021. Amend27.ord
5.18.2021
Exhibit A
Lubbock Economic Development Alliance, Inc
Approved Revised Budget
Fiscal Year 2020-21
Approved Approved
Budget Revised
FY 20-21 FY 20-21
REVENUES
Sales Tax Funding
$ 6,799,676
$ 6,799,676
Investment Income
130,000
130,000
Grant from Dept. of Commerce EDA
1,467,262
- 1
Lease Income
13,000
49,000 2
Lubbock Business Park TIF Reimbursement
3,265,503
3,153,965 s
Sale of Inventory
0
3,763,870 4
Total Revenue Sources
11,675,441
13,896,511
Utilization of Non -Cash Assets - Land
18,000
39,000 5
Utilization of Net Assets
10,195,671
17,945,868 6
TOTAL REVENUES
$ 21,889,112
$ 31,881,379
EXPENSES
PERSONNEL
Salaries
1,251,800
1,251,800
Employee Benefits
321,500
321,500
PERSONNEL SUBTOTAL
1,573,300
1,573,300
ADMINISTRATIVE
Bank Charges
500
500
Pre -employment
3,000
3,000
Repairs & Maintenance
5,000
5,000
Repairs & Maintenance - Business Parks
196,000
196,000
Professional Services
185,000
185,000
Meeting Expense
15,500
15,500
Insurance
20,000
40,000 7
Miscellaneous
12,000
12,000
Professional Memberships/Dues/Subscriptions/Licenses
146,100
146,100
Travel/Training
77,300
77,300
ADMINISTRATIVE SUBTOTAL
660,400
680,400
OFFICE
Office Supplies
22,500
22,500
Office Equipment Rental
11,200
11,200
Office Rent
118,000
118,000
Telephone
19,200
19,200
Postage
4,000
4,000
OFFICE SUBTOTAL
174,900
174,900
MARKETING AND SALES
Promotions/Advertising
589,000
589,000
Meeting Expense
31,000
31,000
Travel
129,300
89,300 8
MARKETING AND SALES SUBTOTAL
749,300
709,300
BUSINESS INCENTIVES/SPECIAL PROJECTS
Special Projects
5.855,500
5,855,500
Incentive Fund - Direct Business Incentives
1,512,000
947,000 9
BUSINESS INCENTIVES/SPECIAL PROJECTS SUBTOT,
7,367,500
6,802,500
CAPITAL COSTS
Furniture, Fixtures & Equipment
20,300
25,300 io
Miscellaneous Land Purchases
500,000
10,208,420 11
Lubbock Business Park & Railport
10,843,412
11,707,259 12
CAPITAL COSTS SUBTOTAL
11,363,712
21,940,979
TOTAL EXPENSES $
21,889,112
$ 31,881,379
Lubbock Economic Development Alliance, Inc.
Schedule of Explanation for Selected Accounts
Approved Revised Budget
Fiscal Year 2020-21
Proposed
Approved Revised
2019-20 2020.21 Difference Explanation
REVENUES
1 Gmnl from Dept of Commerce EDA
1.467.262
0
(1,467,262)
The project associated with the EDA grant is an hold for
the current budget year. We anticipate using the EDA
granted funds within the next Iwo years on projects locating
at the Railport.
2 Lease Income
13.000
49,000
36,000
With the purchase of land this fiscal year, there are some
fans rents coming to LEDA.
3 Lubbock Business Park TIF Reimbursement
3,265.503
3.153,965
(111,538)
LBP TIF reimbursement for the construction of N. Ivory
Ave. in Lubbock Business Park. LEDA expects
construction to begin and be completed in FY 2020/21.
4 Sale of Inventory
0
3.763,870
3,763,870
Funds that LEDA received for the sale of land at LBP to
ET Lubbock, LLC for the Amazon sort facility
5 Utilization of Non -Cash Assets - Land
18,000
39,000
21.000
Use of land at LBP for anticipated projects in this year
6 Utilization of Net Assets 10,195.671 17.945,868 7,750.197 Use of cash net assets for anticipated projects that could
be needed in the current fiscal year.
EXPENSES
ADMINISTRATIVE
7 Insurance
20,000 40.000 20,000 Increase need of insurance related to the purchase of
property, i.e., liability, crop and equipment coverage.
MARKETING AND SALES
8 Travel
129,300 89.300 (40,000) Overall reduction in travel in the current year as many trade
shows and face-to-face meetings are just now beginning to
take place.
BUSINESS INCENTIVES/SPECIAL PROJECTS
9 Incentive Fund - Direct Business Incentives
1,512,000
947,000
(565,000)
Two projects thalwe anticipated closing in the current year
have slowed down due to the pandemic
CAPITAL COSTS
10 Furniture, Fixtures & Equipment
20,300
25,300
5,000
Additional technology equipment and upgrades.
11 Miscellaneous Land Purchases
500.000
10,208,420
9.708,420
Potential projects requiring land acquisition.
12 Lubbock Business Park & Railport
10,843,412
11.707,259
863,847
Original budget based on the completion of E. Vassar Street The
successful landing of Amazon required the completion of the
north side of the Business Park rather than the southern portion.
REVENUES
Hotel/Motel Tax Revenue
HOT True -Up - CVB/LSA
Investment Income
Sale of Promotional Items
Advertising Income
Events Trust Fund Reimbursement
Event Revenue
Payroll Protection Plan Loan Proceeds
Total Revenue Sources
Utilization of Net Assets
Grant from CVB
TOTAL REVENUES
EXPENSES
PERSONNEL
Compensation
Employee Benefits
PERSONNEL SUBTOTAL
ADMINISTRATIVE
Bank Charges
Automobile
Pre -Employment
Member Dues/Subscriptions
Miscellaneous Expense
Professional Services
Insurance/Workers Comp.
Repairs and Maintenance
Capital Asset Purchase
Business Meetings
ADMINISTRATIVE SUBTOTAL
OFFICE
Postage and Shipping
Rent
Storage Fees
Supplies
Telephone
OFFICE SUBTOTAL
MARKETING/SALES
Industry Conventions
Incentives
Convention and Sports Sales
Servicing Items
Site Tours
Marketing
Public Relations
Sports Servicing
MARKETING/SALES SUBTOTAL
TOTAL OPERATING EXPENSE
Exhibit B
Visit Lubbock
(Convention and Visitors Bureau and Lubbock Sports)
Approved Revised Budget
Fiscal Year 2020-21
Approved Approved Approved Approved Approved Approved
Budget CVB Sports Amended Budget Amended CVB Amended Sports
2020-21 2020.21 2020.21 2020-21 2020-21 2020-21
3,147,166 2,373,470 773,696
20,000 15,200 4,800
1,500 1,500
37,100 37,100
15,000 15,000
3,220,766 2,390,170 830,596
877,534 745,904 131,630
(402,714) 402.714
$ 4,098,300 $ 2,733,360 $ 1,364,940
3,147,166
2,373,470
773,696
322,321 i
243,082
79,239
20,000
15,200
4,800
1,500
1,500
37,100
37,100
15,000
15,000
232,360 z
196,722
35,638
3,775,447 2,829,974 945,473
452,353 3 384,600 67,853
- (402,714) 402,714
$ 4,227,800 $ 2,811.760 $ 1,416,040
$
1,075,400
855,020
220,380
1,075,400
855,020
220,380
$
261,800
215,400
46,400
261,800
215,400
46,400
1.337,200
1,070,420
266,780
1.337,200
1,070,420
266,780
1,000
800
200
1,000
800
200
5,500
4,400
1,100
5,500
4.400
1,100
1,000
800
200
1,000
800
200
60,000
48,000
12,000
64,000
d
52.000
12,000
5,000
4,000
1,000
5,000
4,000
1,000
164,400
131,500
32,900
164,400
131,500
32,900
12,600
10,080
2,520
12,600
10,080
2,520
1,500
1,200
300
3,000
s
2,400
600
30,000
24.000
6,000
37,000
s
29,600
7,400
2,000
1,600
400
2.000
1,600
400
283,000
226,380
56,620
295,500
237,180
58,320
5,000
4,000
1,000
5,000
4,000
1,000
106,100
84,900
21,200
106,100
84,900
21,200
3,000
2,400
600
3,000
2,400
600
25,000
20.000
5,000
25.000
20,000
5,000
19,200
15,400
3,800
26,200
7
21,000
5,200
158,300
126,700
31,600
165,300
132,300
33,000
70,000
56,000
14,000
70,000
56,000
14,000
90,000
90,000
-
90,000
90,000
-
503,500
241,500
262,000
518,500
a
251,500
267,000
65,000
52,000
13,000
65,000
52,000
13,000
71,500
61,500
10.000
71,500
61,500
10,000
929,700
743,760
185,940
994,700
a
795,760
198,940
80,100
65,100
15,000
80,100
65,100
15,000
510,000
-
510.000
540,000
ru
-
540,000
2.319,800
1,309,860
1,009.940
2,429,800
1,371,860
1,057,940
$
4,098,300 $
2,733,360 $
1,364.940
$ 4,227,800
$
2,811,760
1,416,040
$
- $
- $
-
$ (0)
$
- $
-
Visit Lubbock
Schedule of Explanation for Selected Accounts
Approved Revised Budget
Fiscal Year 2020-21
Approved Approved
2020-21 2020-21 Difference Explanation
REVENUES
1
HOT True -Up - CVB/LSA
-
322,321
322,321
City revised the cuff ant year VL budget for FY2019-20 True -Up
of HOT revenue
2
Payroll Protection Plan Loan Proce
-
232,360
232,360
With Board approval, VL made application and received a PPP
forgivable loan from the second release of funds that included
travel and tourism entities that were adversely affected by the
pandemic.
3
Utilization of Net Assets
877,534
452,353
(425,181)
As a result of the HOT True -Up and PPP loan, VL was able to
reduce the by just over $425k.
EXPENSES
4
Member Dues/Subscriptions
60,000
64,000
4,000
Ensure the ability to purchase sponsorships at the appropriate
level as tradeshows begin again
5
Repairs and Maintenance
1,500
3,000
1,500
VL has implemented the quarterly sanitization service of the
offices to prevent the spread of illness
6
Capital Asset Purchase
30,000
37.000
7,000
Anticipate the need to add additional computer and iPhone to
accommodate increased internally produced videos for the
various social media channels
7
Telephone
19,200
26,200
7,000
Upgrade in internet speed, capacity and reliability.
8
Convention and Sports Sales
503,500
518,500
15,000
Ensure the ability to purchase sponsorships at the appropriate
level as tradeshows begin again
9
Marketing
929,700
994,700
65,000
Increased emphasis on digital media buys and social medie
opportunities
10
Sports Servicing
510,000
540,000
30,000
Hosting 3 new baseball tournaments in July and August