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Home My WebLink AboutP.O. NO. 7445 APPROVING AND ADOPTING A BUDGET FOR THE CITY OF PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION FOR FY 2026-2027. P.O. NO. 7445 9/14/2025 LYN ORDINANCE NO. AN APPROPRIATION ORDINANCE APPROVING AND ADOPTING A BUDGET FOR THE CITY OF PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION FOR THE ENSUING FISCAL YEAR BEGINNING OCTOBER 1, 2026 AND ENDING SEPTEMBER 30,2027 IN ACCORDANCE WITH SECTION 12.03 OF THE BYLAWS OF THE CORPORATION WHEREAS,the City Council desires to approve and adopt the budget for fiscal year 2026-2027 for the City of Port Arthur Economic Development Corporation("PAEDC"); and WHEREAS, this Ordinance is necessary for municipal/corporation purposes as delineated under §102.009 Local Government Code; and WHEREAS, the PAEDC Board of Directors approved a proposed budget at its September 14, 2026 meeting; and WHEREAS, the PAEDC budget was included in the City Manager's budget as submitted to City Council; and WHEREAS, the City Council conducted a public hearing on the proposed budget on September 14, 2026. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the funding for a salary increase of 3.5% for PAEDC staff has been approved by the PAEDC Board of Directors effective October 1, 2026, contingent on the City Council approval of the same salary increase for City staff. Section 3. That the funding for One Million Dollars from PAEDC to the Capital Improvement Fund is the last in accordance to Resolution Number 19-436 voted on by the people and approved by City Council accordingly at the September 17, 2024 special meeting with at least 5 votes. Section 4. That the budget of PAEDC is hereby adopted and approved in the sum of Sixteen Million, Two Hundred Eleven Thousand, Five Hundred Sixty-Nine Dollars ($16,211,569). h Executive Director of PAEDC shall file a true and cor rect copyof Section 5. That the the Ordinance and the budget with the County Clerk of Jefferson County, the County Clerk of Orange County, and with the Texas Department of Economic Development. Section 6. That this Ordinance is effective from and after its passage. Section 7. That a copy of the caption of this Ordinance be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this day of A.D., 2026, at a Meeting of the City Council of the City of Port Arthur, Texas,by the following roll call vote: AYES: Mayor Councilmembers NOES: Charlotte M. Moses, Mayor Page 2 ATTEST: Christe Whitley Ned, City Secretary APPROVED AS TO ADMINISTRATION: }kkaab--- PAtive Director APPR VE AS TO FORM: Sr Le PAEDC Attorney J I Roxann Pais Cotroneo,City Attorney APPROV AS T( V ILABILITY F FUNDS: Ly a oswell rector of Finance Page 3 c?j9R;43 Enrr It A City 0f1.2) ort rthur Texas Economic Development Corporation The Port Arthur Economic Development Corporation was organized for the purpose of assisting and acting on behalf of the City of Port Arthur to promote and develop new, existing and expanded business enterprises throughout the City. The EDC, a component unit which is legally separate from the City, is governed by a seven-member board appointed by the City Council and funded by a one-half(1/2) percent sales tax allocation dedicated to economic development activities. / i4 ! O VSON Of „ ur Economic Development Corporation Established in 1996, the Port Arthur Economic Development Corporation is the economic development engine of the City of Port Arthur and its stakeholders, and it is responsible for facilitating the creation of jobs via business attraction, retention, and expansion, and supporting the proliferation of entrepreneurship. The PAEDC works relentlessly to improve the quality-of-place, quality-of-life, and economic opportunities for the residents and businesses that call Port Arthur Strategic Plan Alignment: The Port Arthur Economic Development Corporation (PAEDC) supports the City's Strategic Plan by investing in projects and initiatives that strengthen the local economy,create and retain primary jobs,expand the tax base,and enhance Port Arthur's competitiveness for business investment.The FY 2026-2027 budget continues to prioritize business recruitment, business retention and expansion, infrastructure improvements within PAEDC-owned business parks, workforce development partnerships, and redevelopment initiatives that attract private investment. In addition, PAEDC remains committed to sound fiscal management through responsible stewardship of sales tax revenues, transparent incentive administration, long-term capital planning,and compliance with applicable state statutes governing economic development corporations.Budgeted initiatives also support organizational excellence through enhanced marketing, strategic communications, and operational efficiencies. 2025-2026 Accomplishments ❖ Advanced redevelopment and business attraction efforts through enhanced marketing initiatives, website improvements, business outreach, and expanded regional partnerships. • Continued investment in business park infrastructure,property maintenance,and facility improvements to improve market readiness and attract new industrial and commercial development. ❖ Expanded economic development opportunities through implementation of newly authorized Chapter 505 eligible projects following voter approval, while continuing to administer existing incentive agreements and business assistance programs. 2026-2027 Goals ❖ Recruit new primary employers while supporting the retention and expansion of existing industries and small businesses. ❖ Implement strategic infrastructure and capital improvement projects that increase the marketability and competitiveness of PAEDC-owned properties. ❖ Expand marketing and business attraction efforts through targeted campaigns, digital communications, site selection outreach, and community partnerships. ❖ Continue responsible management of economic development incentives,grant opportunities,and business assistance programs while maintaining compliance, accountability, and measurable return on investment. Performance Measures Measures 2027 Target ❖ Capital Investment ❖ Facilitate economic development projects that generate new private capital investment and expand the City's commercial and industrial tax base ❖ Projects ❖ Advance and administer eligible projects that support economic development, quality of life, and community vitality initiatives in accordance with state law. Fir ❖ Workforce Development ❖ Support workforce development by providing training incentives and partnerships that increase employment opportunities and workforce skills for Port Arthur residents. ❖ Small Business Development ❖ Expand entrepreneurship and small business growth by providing access to business assistance programs, educational workshops, technical resources, and small business support services ❖ Project and Agreement Compliance ❖ Maintain 100%compliance monitoring for active incentive agreements, grant requirements, and required reporting ❖ Marketing and Business Outreach ❖ Increase engagement through targeted marketing campaigns,business retention visits, prospect outreach, and strategic partnerships to promote Port Arthur as a premier location for business investment The Port Arthur Economic Development Corporation remains committed to fiscal responsibility, strategic investment, transparency, and exceptional customer service while advancing economic opportunities that strengthen the local tax base, create quality employment opportunities, and improve the quality of life for the citizens of Port Arthur. Through prudent financial management and strategic partnerships, PAEDC will continue supporting. EDC Chief Executive Officer 1FTE EDC Deputy Director 1FTE EDC EDC Administrative Assistant Admnstrative Cist 11.1h 1 FM BARE EDC Financial Manager Operations Officer 1 FTE 1 FTE Entrepreneurship Marktiog aid Program Specialist Jo'ghrts Manager IFTE 1FTE Program'Admin tik orkforce and Assistant Comm Dev Malaga 1FTE 1F1E Scrim Famines Madmaace worker 1FTE CITY OF PORT ARTHUR 2026-2027 BUDGET ECONOMIC DEVELOPMENT CORPORATION FUND Amended Actual Actual Budget Estimated Adopted Fund 120 23-24 24-25 25-26 25-26 26-27 REVENUES AND OTHER SOURCES Sales Tax $ 7,818,973 $ 7,807,602 $ 7,185,521 $ 7,185,521 $ 7,500,000 RentlLeaseal Income 279,059 278,943 302,890 250,000 230,000 Sale of land 256,082 1,086,911 - 186,300 1,310,500 Interest on investments 533,570 444,179 203,999 203,999 203,999 Miscellaneous 294,241 209 - 156,073 - Business Park Maintenance 62,752 36,207 52,890 52,890 52,890 Transfer from General Fund 132,589 132,588 132,588 132,588 132,588 Fund Balance/Reserve - - 5,326,412 1,000,000 6,731,592 TOTAL REVENUES 9,377,267 9,786,638 13,204,300 9,167,371 16,161,569 EXPENDITURES EDC Operating Expenditures 3,653,892 2,924,522 6,436,442 8,483,240 12,426,813 Debt Service 2013 Sales Tax Refunding 553,662 - - - - 2019 GO Refunding 217,748 218,832 224,665 224,665 220,956 TOTAL EXPENDITURES 4,425,303 3,143,354 6,661,107 8,707,905 12,647,769 Transfers to and Other Expenditures: General Liability Fund(612) 12,000 12,000 13,800 13,800 13,800 Transfer to 119(Revolving Loan) - 100,000 - 100,000 50,000 General Fund Administrative Cost 133,903 133,903 150,000 150,000 150,000 Capital Improvements-Parks&Rec 1,000,000 - 1,000,000 1,000,000 3,300,000 Capital Improvements-Press Building TOTAL TRANSFERS 1,145,903 245,903 1,163,800 1,263,800 3,513,800 TOTAL EXPENDITURES AND TRANSFERS 5,571,206 3,389,257 7,824,907 9,971,705 16,161,569 CITY OF PORT ARTHUR 2026-2027 BUDGET DEPARTMENT SUMMARY ECONOMIC DEVELOPMENT CORPORATION Expenditures by Category Amended Actual Actual Budget Estimated Proposed 23-24 24-25 25-26 25-26 26-27 Salaries and Benefits $ 711,823 $ 990,416 $ 1,167,040 $ 1,167,040 $ 1,349,910 Supplies and Materials 29,538 82,388 170,499 173,477 134,700 Maintenance 200,914 211,497 517,000 555,802 518,200 Contractual Services 2,706,427 1,629,673 4,536,992 6,260,562 9,724,003 Capital Outlay 5,190 10,548 44,910 326,359 700,000 OTAL OPERATING EXPENDITURES $ 3,653,892 $ 2,924,522 $ 6,436,442 $ 8,483,240 $ 12,426,813 Expenditures by Division Economic Development Corp. $ 3,653,892 $ 2,924,522 S 6,436,442 $ 8,483,240 $ 12,426,813 CITY OF PORT ARTHUR 2026-2027 BUDGET DETAIL EXPENDITURES-BY DIVISION ECONOMIC DEVELOPMENT CORPORATION Amended 120-80-625 Actual Actual Budget Estimated Proposed 23-24 24-25 25-26 25-26 26-27 Salaries and Benefits Regular Earnings 494,386 649,642 750,000 750,000 914,789 Overtime 3,838 6,772 6,500 6,500 6,500 Allowances 2,031 9,720 15,000 15,000 21,000 Extra Help 28,793 45,726 123,200 123,200 123,200 Social Security 36,460 56,162 65,040 65,040 69,981 Retirement 72,309 99,559 126,000 126,000 130,410 Health Insurance 71,815 119,155 78,000 78,000 80,730 Workers Compensation 2,192 3,681 3,300 3,300 3,300 Terminating Pay - - - - 0 Total Salaries and Benefits 711,823 990,416 1,167,040 1,167,040 1,349,910 Supplies and Materials Office Supplies 4,577 9,269 10,000 10,918 5,000 Postage 0 48 500 500 500 Fuel&Lubrication 761 1,423 8,500 8,500 4,300 Minor Equipment 2,133 12,849 30,000 30,000 30,000 IT Equipment 9,121 43,717 30,000 30,000 35,000 Uniforms and Cleaning 690 247 4,000 4,000 7,000 Board Meeting Expense 3,351 2,766 7,500 7,500 4,800 Other Supplies 8,905 12,069 80,000 82,060 48,100 Total Supplies and Materials 29,538 82,388 170,499 173,477 134,700 Maintenance Building Maintenance 130,232 141,538 347,000 353,990 348,200 Equipment Maintenance 70,350 69,701 170,000 201,012 170,000 Motor Vehicle Maintenance 332 258 - 800 - Total Maintenance 200,914 211,497 517,000 555,802 518,200 Contractual Service Rent/Lease 195,010 181,736 243,000 243,000 180,000 Insurance 0 0 0 0 - Contingency (5,350) 0 0 191,478 10,000 Professional Services 152,141 197,783 567,823 640,531 673,399 Advertising 10,510 6,236 90,000 90,200 145,000 Consultant 0 0 0 0 - Travel and Education 40,179 58,332 200,000 200,000 115,000 Dues and Subscriptions 7,347 12,784 35,360 35,360 19,200 Computer Programs 34,595 42,259 208,204 211,370 259,000 Other Contractual Service 70,212 36,797 55,000 64,394 60,600 Development 1,253,133 516,502 1,591,945 2,651,606 3,754,339 Business Park Development 595,901 258,623 462,661 473,675 485,015 4B Development 0 0 - - 2,930,000 Promotional Programs 19,165 19,784 200,000 200,000 135,000 Job Training Programs 69,498 93,978 630,000 887,949 681,000 Temporary Services 77,107 11,207 0 118,000 - Water Utilities 6,208 9,067 30,000 30,000 30,000 Electricity 126,775 128,995 166,000 166,000 174,000 Gas 7,691 7,439 15,000 15,000 15,200 Communications 46,304 48,151 42,000 42,000 57,250 Total Contractual Services 2,706,427 1,629,673 4,536,992 6,260,562 9,724,003 Building 0 0 44,910 100,000 150,000 Land 0 0 0 0 550,000 Streets - - - - - Furniture and Fixtures 0 0 0 0 - Equipment 5,190 10,548 - 150,359 - Motor Vehicles - - - 76,000 - Capital Outlay 5,190 10,548 44,910 326,359 700,000 TOTAL EXPENDITURES $ 3,653,892 $ 2,924,522 $ 6,436,442 $ 8,483,240 $ 12,426,813 ECONOMIC DEVELOPMENT CORPORATION REVOLVING LOAN FUND Amenuea Actual Actual Budget Estimated Proposed 23-24 24-25 25-26 25-26 26-27 REVENUES AND OTHER SOURCES Transfer from Fund 120 $ - $ 100,000 $ - $ 100,000 $ 50,000 Program Income 4,735 6,281 - - - Interest Revenue 4,735 106,281 - 100,000 50,000 TOTAL REVENUES AND OTHER SOURCE 9,471 212,563 - 200,000 50,000 EXPENDITURES Professional Services - - - 100,000 50,000 Interest TOTAL EXPENDITURES - - - 100,000 50,000 Summary of.Annual Debt Service Requirement to Maturity Bonded Debt-Series 2013,Sales Tax Refunding Bonds Fiscal Year Principal Interest Total 2023 525,000 26,945 551,945 2024 540,000 13,662 553,662 1,065,000 40,607 1,105,607