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Home My WebLink AboutOrdinance - 2023-O0090 - Amendment 28 - 08/08/2023First Reading July 25, 2023 Item No. 5.5 ORDINANCE NO. z023-00090 Second Reading August 8, 2023 Item No. 7.3 AN ORDINANCE AMENDTNG THE �Y 2022-23 BUDGET FOR MUNTCIi'AL 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 2022-23 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 2022-23 (Budget Amendment #28) for municipal purposes, as follows: I. Amend the FY 2022-23 Lubbock Economic Development Alliance, Inc. Operating Budget as shown in Exhibit A. II. Amend the FY 2022-23 MLI — Visit Lubbock and Sports Authority Operating Budget as shows 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 TT IS SO ORDERED Passed by the City Council on first reading on July 25, 2023 Passed by the City Council on second reading on August 8, 2023 APPROVED AS TO CONTENT: D. Blu Ko • elich Chief Financial Officer ccdocsl I1BudgetFY22.23.Amend28.ord July 17, 2023 City Secretary APPROVED AS TO FORM: Lubbock Economic Development Alliance, Inc. Proposed Revised Budget Fiscal Year 2022-23 REVENUES Sales Tax Funding Investment Income Grant from Market Lubbock, Inc. Grant from Dept. of Commerce EDA Lease Income Lubbock Business Park TIF Reimbursement Taxable Bond Proceeds Non -Taxable Bond Proceeds Other Income Total Revenue Sources Utilization of Non -Cash Assets - Land Utilization of Net Assets TOTAL REVENUES EXPENSES PERSONNEL Approved Proposed Revised Budget Budget - 71 - - - 70 $ 8,188,793 $ 8,188,793 30,000 30,000 1,000,000 1,000,000 1,200,000 1,200,000 42,000 42,000 600,000 954,274 ' 16,775'000 2 13,315,000 154,500 154,500 11,215,293 41,659,567 107,479 3,191,177 3 8,606,107 - $ 19,928,879 $ 44,850,744 Compensation Employee Benefits PERSONNELSUBTOTAL ADMINISTRATIVE Bank Charges 300 Pre -employment 3,000 Repairs & Maintenance 7,500 Repairs & Maintenance - Business Parks 199,800 Professional Services 184,800 Meeting Expense 17,500 Insurance 46,300 Miscellaneous 12,000 Professional Memberships/Dues/Subscriptions/Licenses 149,800 Travel/Training 99,100 ADMINISTRATIVE SUBTOTAL 720,100 OFFICE Office Supplies 20,000 Office Equipment Rental 9,000 Office Rent 119,800 Telephone 26,000 Postage 3,000 OFFICE SUBTOTAL 177,800 MARKETING AND SALES Promotions/Advertising 683,000 Meeting Expense 36,000 Travel 108,900 MARKETING AND SALES SUBTOTAL 827,900 BUSINESS INCENTIVES/SPECIAL PROJECTS Special Projects 1,008,500 Non -Cash Incentives - Land 107,479 Direct Business Incentives 1,160,000 BUSINESS INCENTIVES/SPECIAL PROJECTS SUBTC 2,275,979 CAPITAL COSTS Furniture, Fixtures & Equipment 25,300 Miscellaneous Land Purchases 500,000 Lubbock Business Park & Railport 13,682,000 Debt Service 0 CAPITAL COSTS SUBTOTAL 14,207,300 300 3,000 7,500 229,800 s 458,400 6 17,500 46,300 12,000 149,800 99,100 1,023,700 20,000 9,000 119,800 26,000 3,000 177,800 683,000 36,000 108,900 827,900 1,008,500 3,191,177 1,160,000 5,359,677 25,300 14,510,000 a 13,682,000 2,227,453 9 30,444,753 TOTAL EXPENSES $ 19,928,879 $ 39,553,630 1,380,400 1,380,400 339,400 339,400 1,719,800 1,719,800 Lubbock Economic Development Alliance, Inc. Schedule of Explanation for Selected Accounts Proposed Revised Budget Fiscal Year 2022-23 Approved Proposed 2021-22 2022-23 Difference Explanation REVENUES Reimbursement from LBP TIF for Lubbock Business Park median irrigation and landscaping infrastructure improvements based on actual contracts and construction 1 Lubbock Business Park TIF Reimbursement 600,000 954,274 354,274 schedule. 2 Bond Proceeds Taxable 0 16,775,000 16,775,000 Taxable Bonds issued in February 2023 Non -Taxable 0 13,315,000 13,315,000 NonTaxable Bonds issued in February 2023 3 Utilization of Non -Cash Assets - Land 107,479 3,191,177 3,083,698 Anticipated grant of approx 700 acres to Project 176. Exact offset of change in expense line item #7 below. 4 Utilization of Net Assets 8,606,107 0 (8,606,107) Able to eliminate the use of net assets with the receipt of bond funds. EXPENSES 5 Repairs & Maintenance - Business Parks 199,800 229,800 30,000 Increase of land inventory requires additional budget for repairs and maintenance. 6 Professional Services 184,800 458,400 273,600 Cost of issuance of bonds 7 Non -Cash Incentives - Land 107,479 3,191,177 3,083,698 Anticipated grant of approx 700 acres to Project 176. Exact offset of change in revenue line item #3 above. Purchase of 383 acres west of 1-27 (Reimer) and 8 Miscellaneous Land Purchases 500,000 14,510,000 14,010,000 potential expansion of Lubbock Business Park 9 Debt Service 0 2,227,453 2,227,453 Debt Service related to the bond issuance. Infrastructure projects associated with winning the Leprino Foods and W.L. Plastics projects. Infrastructure projects include the construction of an effluent water line, the reconstruction of E. 19th Street and construction of 12 Lubbock Business Park & Railport 13,682,000 13,682,000 0 utilities and roadway in Lubbock Railport. Visit Lubbock (Convention and Visitors Bureau and Lubbock Sports) Proposed Revised Budget Fiscal Year2022-23 Approved Approved Approved Proposed Revised Proposed Revised Proposed Revised Budget CVB Sports Budget CVB Sports 2022-23 2022-23 2022-23 2022-23 2022-23 2022-23 REVENUES Hotel/Motel Tax Revenue 4,902,779 3,697,485 1,205,294 4,902,779 3,697,485 1,205,294 HOTTrue-Up- CVB/LSA 1,343,774 1,D13,422 330,352 Investment Income 34,100 25,570 8,530 34,100 25,570 8,530 Sale of Promotional Items 1,500 1,500 1,500 1,500 Advertising Income - - Events Trust Fund Reimbursement 235,000 235,000 235,000 235,000 Event Revenue 54,000 54,000 54,000 54,000 Rent Income 6,D00 4,500 1,500 6,000 4,500 1,500 Total Revenue Sources 5,233,378 3,729,054 1,504,324 6,577,153 4,742,477 1,834,676 Utilization of Net Assets 337,822 253,366 84,456 - 2 - - Grant from CVB - (519,295) 519,295 - (1,001,602) 1,001,602 TOTAL REVENUES $ 5,571,200 $ 3,463,125 $ 2,108,075 $ 6,577,153 $ 3,740,875 $ 2,836,278 EXPENSES PERSONNEL Compensation $ 1,187,600 906,800 280,800 1,187,600 906,800 280,800 Employee Benefits $ 278,400 228,000 50,400 278,400 228,000 50,400 PERSONNEL SUBTOTAL 1,466,000 1,134,800 331,200 1,466,000 1,134,800 331,200 ADMINISTRATIVE Bank Charges 1,000 750 250 1,000 750 250 Automobile 8,000 6,000 2,000 8,000 6,000 2,000 Pre -Employment 1,000 750 250 1,000 750 250 Member Dues/Subscriptions 69,500 52,125 17,375 74,500 s 55,875 18,625 Miscellaneous Expense 5,000 3,750 1,250 5,000 3,750 1,250 Professional Services 222,000 166,500 55,500 222,000 166,500 55,500 Staff Development 10,000 7,500 2,500 10,000 7,500 2,500 InsuranceM/orkers Comp. 12,600 9,450 3,150 12,600 9,450 3,150 Repairs and Maintenance 3,000 2,250 750 3,000 2,250 750 Capital Asset Purchase 37,000 27,750 9,250 37,000 27,750 9,250 Business Meetings 2,500 1,875 625 2,500 1,875 625 ADMINISTRATIVE SUBTOTAL 371,600 278,700 92,900 376,600 282,450 94,150 OFFICE Postage and Shipping 5,000 3,750 1,250 5,000 3,750 1,250 Rent 107,600 80,700 26,900 107,600 80,700 26,900 Storage Fees 3,000 2,250 750 3,000 2,250 750 Supplies 25,000 18,750 6,250 25,000 18,750 6,250 Telephone 26,000 19,500 6,500 26,000 19,500 6,500 OFFICE SUBTOTAL 166,600 124,950 41,650 166,600 124,950 41,650 MARKETING/SALES Industry Conventions 104,500 78,375 26,125 114,500 4 85,875 28,625 Incentives 115,000 115,000 - 115,000 115,000 - Convention and Sports Sales 825,000 382,500 442,500 1,095,000 e 472,500 622,500 Servicing Items 65,000 48,750 16,250 90,000 s 67,500 22,500 Site Tours 182,500 172,500 10,000 207,500 7 197,500 10,000 Marketing 1,399,900 1,049,950 349,950 1,576,900 a 1,182,700 394,200 Public Relations 92,600 77,600 15,000 92,600 77,600 15,000 Sports Servicing 782,500 - 782,500 852,500 y - 852,500 MARKETING/SALES SUBTOTAL 3,567,000 1,924,675 1,642,325 4,144,000 2,198,675 1,945,325 TOURISM CAPITAL IMPROVEMENTS Tourism Capital Projects 423,953 10 423,953 TOURISM CAP IMPR SUBTOTAL 423,953 - 423,953 TOTAL OPERATING EXPENSE $ 5,571,200 $ 3,463,125 $ 2,108,074 $ 6,577,153 $ 3,740,875 $ 2,836,278 $ (0) $ 0 $ 0 $ - $ - $ (0) Visit Lubbock Schedule of Explanation for Selected Accounts Proposed Revised Budget Fiscal Year 2022-23 Proposed Approved Revised 2022-23 2022-23 Difference Explanation REVENUES 1 HOT True -Up - CVB/LSA - 1,343,774 1,343,774 FY 2021-2022 Hotel Occupancy True -Up rec'd in Nov. 2022 2 Utilization of Net Assets 337,822 - (337,822) Able to eliminate use of net assets with true -up received. EXPENSES 3 Member Dues/Subscriptions 69,500 74,500 5,000 Slight increase for new licensing fees. 4 Industry Conventions 104,500 114,500 10,000 Additional training and networking for staff. 5 Convention and Sports Sales 825,000 1,095,000 270,000 Additional trade shows and sponsorship opportunities for existinc shows and more international coop options 6 Servicing Items 65,000 90,000 25,000 Updating inventory to offer more traditional souvenir -type items 7 Site Tours 182,500 207,500 25,000 Funding to assist with possible UK FAM coming to Lubbock in the spring. 8 Marketing 1,399,900 1,576,900 177,000 The popularity of the Visitor Guide indicates that there may be a need for a significant reprint. Also, additional opportunities to target meeting planners have developed. 9 Sports Servicing 782,500 852,500 70,000 Funds for bid fees for 3 more events and servicing for TBT basketball to be held this summer. 10 Tourism Capital Projects - 423,953 423,953 Future enhancing and upgrading of existing sports facilities of fields as related to TX Statute 351.101(a)(7) and funding the establishment of a visitor information center adjacent to or near the Downtown Park as related to TX Statute 351.101(a)(1)