07/13/2010-4A-Agenda Packet-Regular•
AGENDA
4A SANGER, TEXAS INDUSTRIAL DEVELOPMENT CORPORATION
TUESDAY, JULY 13, 2010
1:00 P.M.
502ELM
1. Call Meeting to Order.
2. Approval of Minutes: March 23, 2010.
3. Update on C&M Steel Project ..
4. Update on Infrastructure Projects.
5. Discuss, Consider and Approve the 2011 Budget.
6. Review Financials.
7. Adjournment.
I, the undersigned authority, do hereby certify that this Notice of Meeting was posted on
the bulletin board, at the City Hall of the City of Sanger, Texas, a place convenient and
readily accessible to the gen~public at all times, and said notice was posted on the
following date and time: ::::s..ru.J~~1{JJ.) l Q at 1: O(? p.m.
and shall remain posted until me~ng · . a JO, r~~ ~ "' •••• •• •• ·<_<,·,_~ .. ;~ .. ~ CJ ... · ~ ·· .. .,./J :-
Ta~~ry ( (W) ) . .
City of Sanger, Texas \ ·· ......... , .. / j
"",,,,, 'EX p... S ,,,,,~
This facility is wheelchair accessible aJtf11a1ctuas!nHle parking spaces are available. Requests for
accommodations or interpretive services must be made 48 hours prior to this meeting. Please
contact the City Secr~tary's office at (940) 458-7930 for further information .
•
MINUTES: 4A
MEMBERS
SANGER TEXAS INDUSTRIAL DEVELOPMENT CORPORATION
March 23, 2010
PRESENT: Bill Fuller, Vickie Jenkins, Carroll McNeill, Gary Bilyeu
MEMBERS
ABSENT: Fred Yeatts
OTHERS
PRESENT: Mike Brice, City Manager; Cheryl Price, Administrative Assistant
1. Call Meeting to Order.
President Fuller called meeting to order at 1:05 p.m.
2. Approval of Minutes: July 30, 2009
Motion was made by Gary Bilyeu to approve the minutes of July 30, 2009 with the
correction removing a statement by Carroll McNeill who was not present at the July
30, 2009 meeting~ Motion with correction was seconded by Vicki Jenkins. Motion
carried unanimously.
3. Discussion and Consideration of Possible Lease of 103 Bolivar and Consider
Authorizing the City Manager to Execute a Lease Based on the Terms in the Letter
of Intent.
Mike Brice noted that Steve Watkins with Elk River Real Estate was in the
audience. His company marketed and is brokering the lease Agreement for 103
Bolivar. The company that is proposing to lease the property is C& M Steel. The
proposal to lease includes an offer of up to $150,000 to finish the building out. This
amount would be amortized over the life of the lease. The lease amount is about
$2.50 a foot; however, the 1st two years with the finish out amount included would
be about $3.15 a foot.
Gary Bilyeu questioned if this $150,000 was a hard amount or credit? Mike noted
that it is a loan over the life of the lease.
Steve Watkins noted that the City would be getting their loan, plus administration
fees and interest back monthly. He noted that C & M Steel had been at their
present facility for 19 months at Corbin Road in Denton. Their current lease is a 5-
year lease. They have negotiated the lease obligation with their current Landlord to
•
continue with lease payments for one year after vacating the property. The
proposed agreement will discount the tenant for one year beginning on
commencement date up to $100,000 in existing lease obligation discounted monthly.
Steve Watkins advised that C & M Steel is a company that does engineered steel
structure buildings and their clients are mainly municipalities. They are currently
only able to do one job at a time onsite. If they lease this facility they will be able to
construct 3 to 5 jobs at a time. He noted that they have approximately 27 employees
and their payroll was 1.3 million last year. One of the principals of the company
owns land in Sanger and intends to build a home on it.
Mike Brice referred to "C & M Steel Six Year Lease Cash Flow Summary", noting
the numbers are estimates and did not include the finish out cost which .would be
amortized over the life of the lease. He emphasized that these are only estimates and
that after the first year there would be cash flow of $3000 to $5000 per month.
Mike referred to the "Sanger Economic Development Project Impact Estimate" and
noted the "estimated" property tax impact the proposal for C & M Steel would
have.
Vickie Jenkins questioned if they have checked the references on the proposed
tenant.
Steve Watkins advised that they will make sure that the proposed tenant's set of
finances meet with the City's criteria.
Gary Bilyeu asked why this was on the agenda, that he thought they already gave
permission for the City Manager to negotiate a lease.
Mike Brice noted that the reason we brought it before the 4A Board is to be sure
that the board is satisfied with the terms that are being proposed. If the 4A Board is
not satisfied with the terms then we can bring it back with changes. It is really the
board's decision. He noted that if something changes they will bring it back to the
board again.
Vickie Jenkins wanted to reiterate the importance of getting a solid background on
this company before the lease is signed. ·
Steve Watkins noted that at this stage it is just an ok to move forward and then they
will proceed with requesting corporate returns, 2 years tax statements, guarantors,
etc.
A motion was made by Vicki Jenkins to authorize the City Manager to execute a
lease based on the terms submitted in the letter of intent provided the tenant has a
favorable financial report. The motion was seconded by Carroll McNeill. Motion
carried unanimously.
•
4. Discussion and Consideration of Various Options on Financing the Finish-out of 103
Bolivar and Authorize City Manager to Proceed with the Finance Method Chosen '
by the Board.
Mike Brice summarized the various options available to the board on financing the
finish-out of 103 Bolivar. He noted they have approximately $400,000 and they
were looking at about $190,000 in expenses including the 4% gross lease amount
due to Elk River as broker. He noted the funding of the Commission fee is discussed
in the next agenda item. He advised that he has spoken to one of the banks and both
CD's are maturing in April on the 2nd and one on the 14th• The Board could get a
loan on the CD's at a very good rate.
Gary Bilyeu asked if the $100,000 for the Wal-Mart improvement has gone through
yet Mike Brice noted that it has not. He said they have $300,000 in unobligated
funds in the bank now and there are currently no other outstanding obligations.
Vicki Jenkins noted that we are really not getting paid that much interest on the
CD; just 1 %. Gary Bilyeu stated that they would not want to finance the
Commission to Elk River. There was additional discussion as to whether to finance
or pay cash for the commission and finish out amounts.
Vicki Jenkins asked when they would be moving forward on this if approved.
Steve Watkins advised that it would be as soon as possible. Max would be 75 days
to 90 days out.
Vicky Jenkins suggested putting the big CD which was only yielding 1 % into the
Money Market account and pay out the draw schedule. Vickie Jenkins said that she
did not feel it was necessary to borrow any money at this time. Gary Bilyeu agreed.
A motion was made by Vickie Jenkins to authorize the City Manager put the largest
CD that matures on April 14th into the Money Market account and commence with
a pay to draw schedule for the finish out of 103 Bolivar. H any additional funds are
necessary they can review. No money will be borrowed. Motion was seconded by
Carroll McNeill. Motion carried unanimously.
5. Authorize Payment to Elk River Regarding Commission Fee for Marketing and
Brokering Lease Agreement as per Contract.
Mike Brice advised that we would pay Elk River the 4 % of the gross lease
commission fee when the lease is signed. It was noted that the typical fee is 6% and
that it is typical that the landlord pays commission to the broker •
A motion was made by Carroll McNeill to authorize payment to Elk River
•
regarding commission fee for marketing and brokering lease agreement as per
contract. Motion was seconded by Gary Bilyeu. Motion carried unanimously.
6. Discussion and Consideration of Authorizing the City Manager and Staff to Sign
Checks for Expenditures Authorized by the Board and to Serve as Signatories for
4A Bank Accounts and Investments.
Mike Brice advised that Dusty resigned a few weeks ago and our CPA was going
through financials and suggested we handle expenditures for the 4A and 4B Boards
the same way we do for City Council. He noted that for City Council we provide a
register of the expenditures at each meeting. This request was also included on the
agenda for the 4B Board who approved the change at last night's meeting.
Consensus among members that this was a good idea since staff was having to track
down two members to get signatures to pay for items that have already been
approved by the board.
A motion was made by Gary Bilyeu to authorize the City Manager and staff to sign
checks for expenditures authorized by the board and to serve as signatories for 4A
Bank accounts and investments, provided a list of expenditures is provided to the
4A Board at each meeting. The Motion was seconded by Carroll McNiell. Motion
carried unanimously.
7. Review Financials
Mike Brice noted the sales tax revenue was down about 8% from last year. He
noted that March's revenue will come in at about $20,000.
Bill Fuller asked where we get the sales tax revenue from. Mike advised that he did
not have a list available but could get the top ten tax payers. There was discussion
about which business brought in the sales tax revenue. Mike noted that Red River
Pump recently moved their business from Sanger and were probably a contributor
to the sales tax revenue. He noted that the sales tax revenue is about 2 months
behind explaining that November's revenue would be in January. Mike noted that
Bolivar Water is not a sales tax contributor in response to questioning by Bill Fuller.
8. Adjournment.
The meeting was adjourned at 1:43 p.m .
Investments 6/15/2010
4A Certificates of Depo!:Sit,_ ~~'-18.Y.JVl~rke.!, ~nd. Cash Acct
Name Acct. # Maturity Yield Balance Restricted
Cash #900020693 00-1010 0.50% $239,957.89 Y
4A Money Market#902551273 00-1012 0.75% $69,528.04 Y
SangerTXlndCorpCD#486639 00-1013 6MO 2.25% $91,502.92 Y
Sanger TX Ind Corp CD#568058 00-1014 90Day 1.00% Redeemed Y
I TOTAL INVESTED $400,988.851
Name Acct. # Maturity Yield Balance Restricted
Cash MMKT 2379694 00-1010 0.10% $289,260.00 Y
4B CD 461024 (6669) 00-1012 300 1.00% $191,259.85 Y
4B CD #653500 00-1013 1 YR 2.50% $20,572.30 Y
4B CD #659924 00-1014 1 YR 2.50% $20,524.05 Y
4B CD# 664243 00-1015 1 YR 2.50% $20,505.77 Y
4B CD# 673277 00-1016 1YR 2.50% $20,463.72 Y
4BCD#686115 00-1018 1 YR 2.50% $20,420.36 Y
4B CD#689521 00-1017 1 YR 2.50% $20,377.09 Y
4B CD#694371 00-1019 1YR 2.50% $20,335.31 Y
4B CD #697230 00-1020 1YR 2.50% $20,292.22 Y
4B CD #699934 00-1021 1 YR 2.50% $20,164.89 Y
4B CD #702285 00-1022 1 YR 2.50% $20,207.71 Y
I· TOTAL INVESTED $684,383.271
•
4A DEPOSITS
1999 I 2000 I 2001--1 · 2002 I 2003 I 2004 I 2005 I 2006 I 2007 I 2008 I 2009 I 2010 I
1
JAN. I $6,691.041 $ 81083.931 $ 81937.431 $10,348.821 $101188.221 $25,847.621 $ 131993.781 $ 161264.501 $161691.411 $17,436.571 $221880.041 $16,389.971
C I
FEB. I !_9,806.451 $ 9z763.37I $ 11 1840.641 $ 141870.781 $ 141840.341 $171485.761 $21,779.911 $211513.621 $191601.101 $221071.091 $231228.791 $21,815.961
' MARCH I i 6,100.021 $ 101384.631 $81984.181 $91209.151 $ 121446.361 $ 131382.91 I $ 141254.431 $16,620.931 $16,472.341 $191892.631 $241179.621 $201921.541
• APRIL I J10,075.18I $8,416.521 $ 91517.251 $91195.021 $9,202.141 $121224.771 $141166.101 $17,198.171 s 151482.001 $18,511.541 $161279.441 $171032.721
t
MAY I $9,970.221 $ 101323.151 $14,946.441 $ 101623.561 $15,125.041 $ 201311.371 $20,556.141 $ 171428.361 s 26z767.83I $22,163.331 $24z744.75I s21,612.61 I
1
JUNE I $ 71392.451 $7,953.661 $101131.011 $111911.061 $1958,111 $18,276.941 $ 151585.541 $ 231063.991 $171172.671 $191338.741 $201537.051 $191823.47
[
JULY t $8z733.021 $7,642.301 $12,784.181 $10,597.471 $111370.281 $16,692.361 $ 161914.661 $ 171896.761 $191127.611 $20,703.081 $201159.791
s 121935.491 s 101854.251 s 11 1035.001 $14,962.171 $16,132.421 $19,354.71 I $ 201375.581 $ 241003.151 $ 24,581.421 $25,288.441 $24 1028.481
JS 1584.58I $ 71103.501 $111612.081 $ 121928.161 $ 131140.491 s 15,125.621 s 161977.991 s 19z746.74I $ 26,990.121 $211583.441 $221688.851
$9,164.481 $101136.271 $281586.961 s 131940.441 s 11,426.121 s 16,084.641 $111014_51 I s 11 1042.111 $2997.631 $211510.391 $171688.521
• $8,912.471 $111975.611 $161166.711 $ 141246.901 $17,184.881 $ 22i700.13I s 20,661.061 s 24,265.791 $ 221846.791 $241645.131 $201293.531 I
l
1.12.594~421 $7,860.371 $ 101397.061 $10,198.241 $12,570.111 $16,179.851 $19,822.071 $171830.911 $171961.611 $19,213.551 $171150.971 I
TOTAL S 111,559.82 S 110,497.56 S 160,938.94 S 143,031.77 S 157,985.11 S 214,267.28 S 212,161.77 S 226,875.69 S 248,092.53 S 252,357.93 S 253,859.83 S 117,596.27
•
7-08-2010 09:13 AM CITY OF SANGER PAGE: 1
REVENUE & EXPENSE REPORT (UNAUDITED)
AS OF: JUNE 30TH, 2010
42 -4B CORPORATION
FINANCIAL SUMMARY % OF YEAR COMPLETED: 75.00
CURRENT CURRENT PRIOR YEAR Y-T-D Y-T-D BUDGET % OF
BUDGET PERIOD PO ADJUST. ACTUAL ENCUMBRANCE BALANCE BUDGET
REVENUE SUMMARY
TAXES 259,000.00 19,823.47 0.00 172,729.29 0.00 86,270.71 66.69
INTEREST 16,900.00 228.28 0.00 5,656.35 0.00 11,243.65 33.47
TRANSFERS o.oo 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL REVENUES 275,900.00 20,051.75 0.00 178,385.64 0.00 97,514.36 64. 66
EXPENDITURE SUMMARY
76-4B EXPENSES 201,320.00 o.oo 0.00 896.52 0.00 200,423.48 0.45
TOTAL EXPENDITURES 201,320.00 o.oo 0.00 896.52 0.00 200,423.48 0.45
REVENUE OVER/(UNDER) EXPENDITURES 74,580.00 20,051.75 0.00 177,489.12 0.00 ( 102,909.12 237.98
OTHER FINANCING SOURCES 0.00 0.00 0.00 0.00 0.00 0.00 o.oo
OTHER FINANCING USES 0.00 0.00 0.00 0.00 0.00 0.00 0.00
NET OTHER SOURCES & USES 0.00 0.00 0.00 0.00 0.00 0.00 0.00
REVENUE & OTHER SOURCES OVER/
(UNDER) EXPENDITURES & OTHER (USES) 74,580.00 20,051.75 0.00 177,489.12 0.00 ( 102,909.12 237.98
•
7-08-2010 09:13 AM CITY OF SANGER PAGE: 2
REVENUE & EXPENSE REPORT (UNAUDITED)
AS OF: JUNE 30TH, 2010
42 -4B CORPORATION
FINANCIAL SUMMARY % OF YEAR COMPLETED: 75.00
CURRENT CURRENT PRIOR YEAR Y-T-D Y-T-D BUDGET % OF
REVENUES BUDGET PERIOD PO ADJUST. ACTUAL ENCUMBRANCE BALANCE BUDGET
TAXES
oo=TT25 STATE SALES TAX 2591000.00 191823.47 o.oo 172,729.29 ·o. oo 861270.71 66.69
TOTAL TAXES 259,000.00 19,823.47 0.00 172,729.29 0.00 86,270.71 66.69
INTEREST
00-4800 INTEREST INCOME 16,900.00 228.28 0.00 5,656.35 0.00 11,243.65 33.47
00-4801 INT. INCOME BOND PROCEEDS 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL INTEREST 16,900.00 228.28 0.00 5,656.35 0.00 11,243.65 33.47
TRANSFERS
00-4987 TRSF TO DEBT SERVICE 0.00 0.00 0.00 0.00 0.00 0.00 0.00
00-4990 TRANSFERS FROM RESERVES 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL TRANSFERS 0.00 0.00 o.oo 0.00 0.00 0.00 0.00
TOTAL REVENUES 275,900.00 20,051.75 0.00 178,385.64 0.00 97,514.36 64.66
7-08-2010 09:13 AM CITY OF SANGER PAGE: 3
REVENUE & EXPENSE REPORT (UNAUDITED)
AS OF: JUNE 30TH, 2010
42 -4B CORPORATION
76-4B EXPENSES % OF YEAR COMPLETED: 75.00
CURRENT CURRENT PRIOR YEAR Y-T-D Y-T-D BUDGET % OF
DEPARTMENTAL EXPENDITURES BUDGET PERIOD PO ADJUST. ACTUAL ENCUMBRANCE BALANCE BUDGET
52-SUPPLIES AND MATERIALS
76-5200 CHECK CHARGES 0.00 0.00 0.00 0.00 0.00 o.oo 0.00
76-5210 OFFICE SUPPLIES 200.00 0.00 0.00 0.00 0.00 200.00 o.oo
76-5215 FOOD 0.00 o.oo 0.00 0.00 0.00 0.00 0.00
76-5220 POSTAGE 10.00 0.00 0.00 0.00 0.00 10.00 0.00
76-5225 PUBLICATIONS/SUBSCRIPTIONS 200.00 0.00 0.00 0.00 0.00 200.00 0.00
76-5235 DUES & REGISTRATION 250.00 o.oo 0.00 0.00 0.00 250.00 0.00
76-5240 TRAVEL 660.00 0.00 0.00 0.00 0.00 660.00 0.00
TOTAL 52-SUPPLIES AND MATERIALS 1,320.00 0.00 0.00 0.00 0.00 1,320.00 0.00
54-CONTRACT SERVICES
76-5410 INSURANCE 0.00 0.00 0.00 0.00 0.00 0.00 0.00
76-5420 CONTRACTUAL SERVICES 0.00 0.00 0.00 0.00 0.00 0.00 0.00
76-5440 ENGINEERING FEES 0.00 o.oo 0.00 0.00 0.00 0.00 0.00
76-5445 PROPERTY TAXES 0.00 0.00 0.00 9.52 0.00 ( 9.52 o.oo
TOTAL 54-CONTRACT SERVICES 0.00 0.00 0.00 9.52 0.00 ( 9.52 0.00
61-CAPITAL OUTLAY> $SK
76-6111 LAND PURCHASE -SPORTS COMPLEX 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL 61-CAPITAL OUTLAY> $SK 0.00 0.00 0.00 0.00 0.00 0.00 0.00
65-CAPITAL PROJECTS
76-6500 PROJECT -STREETSCAPE 0.00 0.00 0.00 887.00 0.00 ( 887.00 0.00
TOTAL 65-CAPITAL PROJECTS 0.00 0.00 0.00 887.00 0.00 ( 887.00 o.oo
70-DEBT PAYMENTS
76-7001 2009 BOND PRINCIPAL 0.00 0.00 0.00 0.00 0.00 0.00 0.00
76-7002 2009 BOND INTEREST 0.00 0.00 0.00 0.00 0.00 o.oo o.oo
76-7080 BOND FEES 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL 70-DEBT PAYMENTS 0.00 0.00 0.00 0.00 0.00 0.00 0.00
74-TRANSFERS
76-7401 TRANFERS TO GENERAL FUND 20,000.00 0.00 o.oo 0.00 0.00 20,000.00 0.00
76-7402 TRANSFERS TO DSF 180,000.00 0.00 0.00 0.00 0.00 1801000.00 0.00
TOTAL 74-TRANSFERS 200,000.00 o.oo 0.00 0.00 0.00 200,000.00 0.00
TOTAL 76-4B EXPENSES 201,320.00 0.00 0.00 896.52 0.00 200,423.48 0.45
7-08-2010 09:13 AM CITY OF SANGER PAGE: 4
REVENUE & EXPENSE REPORT (UNAUDITED)
AS OF: JUNE 30TH, 2010
42 -4B CORPORATION
% OF YEAR COMPLETED: 75.00
CURRENT CURRENT PRIOR YEAR Y-T-D Y-T-D BUDGET % OF
OTHER FINANCING SOURCES & USES BUDGET PERIOD PO ADJUST. ACTUAL ENCUMBRANCE BALANCE BUDGET
TOTAL EXPENDITURES 201,320.00 0.00 0.00 896.52 0.00 200,423.48 0.45
** REVENUE OVER(UNDER) EXPENDITURES** 74,580.00 20,051.75 0.00 177,489.12 0.00 ( 102,909.12 237. 98
OTHER FINANCING SOURCES
00-4987 TRSF TO DEBT SERVICE 0.00 0.00 0.00 0.00 0.00 0.00 0.00
00-4990 TRANSFERS FROM RESERVES 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL OTHER FINANCING SOURCES 0.00 0.00 0.00 0.00 0.00 0.00 0.00
OTHER FINANCING (USES)
TOTAL OTHER FINANCING (USES) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
REVENUES & OTHER SOURCES OVER
(UNDER) EXPENDITURES & OTHER (USES) 74,580.00 20,051.75 0.00 177,489.12 0.00 ( 102,909.12 137. 98-
•