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HomeMy WebLinkAboutOrdinance - 2022-O0069 - Budget Amendment #22 - 04/26/2022First Reading April 26, 2022 Item No. 7.5 Second Reading May 10, 2022 Item No. 7.1 ORDINANCE NO. 2022-00069 AN ORDINANCE AMENDING THE FY 2021-22 BUDGET FOR MUNICIPAL PURPOSES RESPECTING THE OPERATING BUDGET FOR LUBBOCK ECONOMIC DEVELOPMENT ALLIANCE AND MARKET LUBBOCK INC. (MLI) — VISIT LUBBOCK AND SPORTS AUTHORITY; 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 2021-22 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 2021-22 (Budget Amendment #22) for municipal purposes, as follows: I. Amend the FY 2021-22 Lubbock Economic Development Alliance, Inc. Operating Budget as shown in Exhibit A. II. Amend the FY 2021-22 MLI — Visit Lubbock and Sports Authority 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 April 26, 2022 Passed by the City Council on second reading on May 10, 2022 "I � DANIEL M. POPE, MAYOR ATTEST: D .4 A�� ) � Reb ca Garza City Secretary APPROVED AS TO CONTENT: D. lu Kostelich Chief Financial Officer Io :29-6011VU101M.' V 114316).13T ccdocsBudgetFY2 122.Amend22.ord April 6, 2022 Exhibit A Lubbock Economic Development Alliance, Inc. Proposed Revised Budget Fiscal Year 2021-22 Approved Proposed Budget Revised Budget FV 91-121> FV 71-97 REVENUES Sales Tax Funding $ 7,344,980 $ 7,344,980 Investment Income 32,000 32,000 Grant from Market Lubbock, Inc. 1,000,000 1,000,000 Lease Income 39,000 39,000 Lubbock Business Park TIF Reimbursement 0 405,386 ' Sale of Inventory 0 - Other Income 5,000,000 z Total Revenue Sources 8,415,980 13,821,366 Utilization of Non -Cash Assets - Land 2,531,448 2,531,448 Utilization of Net Assets 3,949,020 6,235,220 3 TOTAL REVENUES $ 14,896,448 $ 22,588,034 EXPENSES PERSONNEL Compensation 1,296,800 1,322,600 Employee Benefits 330,100 335,880 PERSONNEL SUBTOTAL 1,626,900 1,658,480 ' ADMINISTRATIVE Bank Charges 300 300 Pre -employment 3,000 3,000 Repairs & Maintenance 7,500 7,500 Repairs & Maintenance - Business Parks 180,000 180,000 Professional Services 184,400 184,400 Meeting Expense 17,500 17,500 Insurance 40,300 40,300 Miscellaneous 12,000 12,000 Professional Memberships/Dues/Subscriptions/Licenses 154,400 154,400 TraveltTraining 92,900 92,900 ADMINISTRATIVE SUBTOTAL 692,300 692,300 OFFICE Office Supplies 21,500 21,500 Office Equipment Rental 9,000 9,000 Office Rent 119,500 119,500 Telephone 26,000 26,000 Postage 3,000 3,000 OFFICE SUBTOTAL 179,000 179,000 MARKETING AND SALES Promotions/Advertising 683,000 683,000 Meeting Expense 31,000 31,000 Travel 104,000 104,000 MARKETING AND SALES SUBTOTAL 818,000 818,000 BUSINESS INCENTIVES/SPECIAL PROJECTS Special Projects 1,176,500 1,176,500 Non -Cash Incentives - Land 2,531,448 2,531,448 Direct Business Incentives 1,500,000 1,500,000 BUSINESS INCENTIVES/SPECIAL PROJECTS SUBTOTP 5,207,948 5,207,948 CAPITAL COSTS Furniture, Fixtures & Equipment 25,300 25,300 Miscellaneous Land Purchases 5,272,000 5,272,000 Lubbock Business Park & Railport 1,075,000 8,735,006 a CAPITAL COSTS SUBTOTAL 6,372,300 14,032,306 TOTAL EXPENSES $ 14,896,448 $ 22,588,034 Exhibit A Lubbock Economic Development Alliance, Inc. Schedule of Explanation for Selected Accounts Proposed Revised Budget Fiscal Year 2021-22 Proposed Approved Revised 2021-22 2021-22 Difference Explanation REVENUES 1 Lubbock Business Park TIF Reimbursement 0 405,386 405,386 At the time that the budget was prepared LEDA expected the N. Ivory Street at Lubbock Business Park to be completed and the TIF reimbursed funds to be received, but the construction on the roadway continued into the current fiscal year. 2 Other Income 39,000 5,039,000 5,000,000 Lubbock County has agreed to provide funding from their allocation of ARPA funds toward the improvements of East 19th Street adjacent to Leprino Foods. 3 Utilization of Net Assets 3,949,020 6,235,220 2,286,200 Infrastructure improvements associated with the Leprino Foods facility east of Loop 289 require additional funding for the effluent water line. Also N. Nutmeg and E. Hunter Streets were completed in the current fiscal year rather than in the past one. EXPENSES PERSONNEL Recently filled positions have required higher than 4 Compensation 1,296,800 1,322,600 25,800 anticipated compensation to acquire talent. Employee Benefits 330,100 335,880 5,780 Increase associated with increased compensation Total Compensation & Benefits 1,626,900 1,658,480 31,580 Total budgeted increase of 1.94%. 5 Lubbock Business Park & Railport 1,075,000 8,735,006 7,660,006 Infrastructure projects associated with winning the Leprino Foods project include the construction of an effluent water line and the reconstruction of E. 19th St. to meet the company's requirements. Additionally, a portion of the construction in Lubbock Business Park was delayed from the prior year and occurred in this fiscal year. REVENUES Hotel/Motel Tax Revenue HOT True -Up - CVB/LSA Investment Income Sale of Promotional Items Advertising Income Events Trust Fund Reimbursement Event Revenue PPP Loan Proceeds Total Revenue Sources Utilization of Net Assets Grant from CVB TOTAL REVENUES EXPENSES PERSONNEL Exhibit B Visit Lubbock (Convention and Visitors Bureau and Lubbock Sports) Proposed Revised Budget Fiscal Year 2021-22 Approved Approved Approved Proposed Proposed Proposed Budget CVB Sports Revised Budget Revised CVB Revised Sports 2021-22 2021-22 2021-22 2021-22 2021-22 2021-22 3,821,559 2,882,071 939,488 3,821,559 2,882,071 939,488 - - - 1.058,748 798,467 260,281 26,000 19,760 6,240 26,000 19,760 6,240 1,500 1,500 1,500 1,500 145,000 145,000 145,000 145,000 61,500 61,500 61,500 61,500 4,055,559 2,903,331 1,152,228 5,114,307 3,701,798 1,412,509 798,041 606,511 191,530 (0) 2 - - (309,792) 309,792 - (338,258) 338,258 $ 4,853,600 $ 3,200,050 $ 1,653,550 $ 5,114,307 $ 3,363,540 $ 1,750,768 Compensation $ 1,115,700 882.800 232,900 1,137,700 3 900,400 237,300 Employee Benefits $ 269,400 220,570 48,830 274,200 3 224,410 49,790 PERSONNEL SUBTOTAL 1,385,100 1,103,370 281,730 1,411,900 3 1,124,810 287,090 ADMINISTRATIVE Bank Charges 1,000 760 240 1,000 760 240 Automobile 5,500 4,180 1,320 5,500 4,180 1,320 Pre -Employment 1,000 760 240 1,000 760 240 Member Dues/Subscriptions 64,500 49,020 15,480 64,500 49,020 15,480 Miscellaneous Expense 5,000 3,800 1,200 5,000 3,800 1,200 Professional Services 163,900 131,200 32,700 163,900 131,200 32,700 Insurance/Workers Comp. 12,600 9,500 3,100 12,600 9,500 3,100 Repairs and Maintenance 3,000 2,280 720 3,000 2,280 720 Capital Asset Purchase 37,000 28,120 8,880 37,000 28,120 8,880 Business Meetings 2,500 1,900 600 2,500 1,900 600 ADMINISTRATIVE SUBTOTAL 296,000 231,520 64,480 296,000 231,520 64,480 OFFICE Postage and Shipping 5,000 3,800 1,200 5,000 3,800 1,200 Rent 107,200 81,500 25,700 107,200 81,500 25,700 Storage Fees 3,000 2,280 720 3,000 2,280 720 Supplies 25,000 19,000 6,000 25,000 19,000 6,000 Telephone 26,000 19,760 6,240 26,000 19,760 6,240 OFFICE SUBTOTAL 166,200 126,340 39,860 166,200 126,340 39,860 MARKETING/SALES Industry Conventions 82,000 62,320 19,680 94,000 4 71,440 22,560 Incentives 226,000 226,000 - 226,000 226,000 - Convention and Sports Sales 687,000 322,500 364,500 744,000 5 379,500 364,500 Servicing Items 65,000 49,400 15,600 65,000 49,400 15,600 Site Tours 120,700 110,700 10,000 120,700 110,700 10,000 Marketing 1,174,000 892,300 281,700 1,273,907 6 968,229 305,678 Public Relations 90,600 75,600 15,000 90,600 75,600 15,000 Sports Servicing 561,000 - 561,000 626,000 7 - 626,000 MARKETING/SALES SUBTOTAL 3,006,300 1,738,820 1,267,480 3,240,207 1,880,869 1,359,338 TOTAL OPERATING EXPENSE $ 4,853,600 $ 3,200,050 $ 1,653,550 $ 5,114,307 $ 3,363,539 1,750,768 $ - $ - $ - $ - $ 1 $ (0) Exhibit B Visit Lubbock Schedule of Explanation for Selected Accounts Proposed Revised Budget Fiscal Year 2021-22 Proposed Approved Revised 2021-22 2021-22 Difference Explanation REVENUES 1 HOT True -Up - CVB/LSA - 1,058,748 1,058,748 FY 2020-2021 Hotel Occupancy True -Up received in November 2021 2 Utilization of Net Assets 798,041 (0) (798,041) Able to eliminate use of net assets with True -Up received Helps Visit Lubbock & Lubbock Sports meet the cash reserve policy. EXPENSES PERSONNEL Recently filled positions have required higher than anticipated 3 Compensation 1,115,700 1,137,700 22,000 compensation to acquire talent. Employee Benefits 269,400 274,200 4,800 Increase associated with increased compensation PERSONNEL SUBTOTAL 1,385,100 1,411,900 26,800 Total increase of 1.93% 4 Industry Conventions 82,000 94,000 12,000 Restore industry meetings closer to pre-Covid amounts to allow sales and marketing personnel to receive training, industry networking & new trend information. 5 Convention and Sports Sales 687,000 744,000 57,000 Continental Amateur Baseball Association (CABA) 18U Baseball bid fee and increase for trade shows for staff to get more events. 6 Marketing 1,174,000 1,273,907 99,907 Restoring budget for Visitor Guide demand, monitoring tools, influencer partnerships and various promotional guides for groups. 7 Sports Servicing 561,000 626,000 65,000 Secured 2022 and 2023 USA Boxing events that require deposits in the current year on facilities and NJCAA Region V Baseball that also requires facility rental and various other smaller events.