HomeMy WebLinkAboutPO 6185: AMENDING BUDGET FOR EDC FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2011 THROUGH SEPTEMBER 30, 2012 FOR PROMOTIONAL EXPENDITURES NOT TO EXCEED TEN PERCENT OF CURRENT REVENUES Interoffice
MEMORANDUM
To: Mayor, City Council, City Manager
From: Floyd Batiste, CEO
Date: October 10, 2011
Subject: P. O. No. 6185; Council Meeting on October 18, 2011
AN ORDINANCE AMENDING THE BUDGET FOR THE
CITY OF PORT ARTHUR SECTION 4A ECONOMIC
DEVELOPMENT CORPORATION FOR THE FISCAL
YEAR BEGINNING OCTOBER 1, 2011 AND ENDING
SEPTEMBER 30, 2012 TO BUDGET FOR PROMOTIONAL
EXPENDITURES NOT TO EXCEED TEN (10) PERCENT
OF CURRENT REVENUES
P.O. No. 6185
10/11/2011 CS
ORDINANCE NO.
AN ORDINANCE AMENDING THE BUDGET FOR THE
CITY OF PORT ARTHUR SECTION 4A ECONOMIC
DEVELOPMENT CORPORATION FOR THE FISCAL
YEAR BEGINNING OCTOBER 1, 2011 AND ENDING
SEPTEMBER 30, 2012 TO BUDGET FOR PROMOTIONAL
EXPENDITURES NOT TO EXCEED TEN (10 %) PERCENT
OF CURRENT REVENUES
WHEREAS, the City Council approved the budget for the City of Port Arthur Section
4A Economic Development Corporation (the "PAEDC ") on September 20, 2011 per Ordinance
No. 11 -49; and
WHEREAS, Section 4A(b)(1) of the Development Corporation Act limits Section 4A
corporations to spend no more than 10% of their corporate revenues (Section 4A tax proceeds)
for promotional purposes. The Development Corporation Act generally requires a Section 4A
development corporation to use sales tax revenues "for the promotion and development of new
and expanded businesses." Thus, a promotional expenditure under Section 4A(b)(1) must
advertise or publicize the City for the purpose of developing new or expanded business
enterprises. Authorized uses include economic development projects (such as land, equipment,
facilities and infrastructure) as set forth in Section 2(4) and (11)(a) of the Development
Corporation Act; and
WHEREAS, the PAEDC Board of Directors at its Special Board meeting of October 10,
2011, approved an amendment to its 2011 -2012 Fiscal Year's budget to increase its Promotional
Programs Account to an amount not to exceed ten (10 %) percent of its corporate revenues.
PAEDC estimated that they will receive $4,200,000.00 in revenues for the 2012 fiscal year, and
therefore, proposes to increase its budget by $379,500.00 to be added to its Promotional
Programs Account number 120 - 1429 - 582 - 59.06; and
WHEREAS, sufficient funds are available in the operating reserve of the PAEDC to
fund this amendment; and
WHEREAS, the PAEDC Bylaws require that the City Council approve its budget and
budget amendments.
NOW THEREFORE, BE IT RESOLVED 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 budget for the PAEDC be increased by $379,500 for promotional
expenditures.
Section 3. That Section 2 of Ordinance 11 -49 shall be amended to read: That the
budget of the City of Port Arthur Section 4A Economic Development Corporation is hereby
adopted and approved in the sum of Six Million Three Hundred Sixty One Thousand Six
Hundred Seventy Eight Dollars ($6,361,678).
Section 4. That a copy of the caption of this Ordinance be spread upon the Minutes
of the City Council.
Section 5. That the ordinance shall be effective immediately.
READ, ADOPTED AND APPROVED on this day of A.D., 2011,
at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
AYES:
Mayor
Councilmembers
#874442 Page 2
NOES:
Deloris "Bobbie" Prince, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED:
Floyd Batiste, PAEDC CEO
APPROVED • S TO FORM:
f/
Guy N. Goodson, PAEDC Attorn y—
APPROVED AS TO FORM:
Valecia R. Tizeno, City Attorney
Page 3
#874442
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APPROVED AS TO FORM:
7 Y/ei
City At /