Title
Discuss and consider action regarding approval of the Fiscal Year 2013 budget for the Pflugerville Community Development Corporation (PCDC).
Summary
Article VII of the Articles of Incorporation of the PCDC states: Expenditures of the Corporation unrelated to approved contracts require City Council approval before the expenditure is made by the Corporation. This statement requires the City Council's approval of the annual budget for PCDC prior to the beginning of the fiscal year. Upon the City Manager's request by email, the proposed budget was provided to City staff for review and City Council approval.
The staff received a copy of the budget for review on Monday, September 17. The email from the City Manager requesting the budget for review on August 7, 2012 including a reply from PCDC is attached to this agenda item.
Staff offers the following comments on the budget document:
1. Sales tax revenue for fiscal year 2013 for the City of Pflugerville was budgeted with an estimated 8% increase over fiscal year 2012 projected actual. PCDC has budgeted a 10% increase.
2. Staff noted that the PCDC revenue associated with the Princess Craft property economic development agreement was not included in the proposed budget.
3. Discussion between Mr. Floyd Akers and City staff regarding Project Arista determined that measurable expenditures for the next twelve months are difficult to determine at this time. Budget amendments may be
necessary during fiscal year 2013 to account for activity on this project.
4. The proposed budget did not include any information regarding unobligated funds that would exist at the end of the current fiscal year, carrying over into the next fiscal year. Mr. Akers estimates that amount at $950,000.
During the discussion staff requested, and Mr. Akers agreed to provide, interim financial reports throughout the fiscal year for City staff review. This will enable staff to provide a more complete analysis of future budget documents as well as provide information to track the status of current agreements which may affect the City's obligations with regards to economic development agreements.
Prior City Council Action
N/A
Deadline for City Council Action
This budget was approved by the PCDC Board on September 8, 2012. City Council action is requested on September 25, 2012 in order to provide approval for expenditures beginning October 1, 2013.
Fiscal Impact
Fiscal impact is shown in the attached budget.
Staff Recommendation
City staff has no recommendation concerning the PCDC budget.
Drafter
Brandon Wade
City Manager