KEDC budget 12 percent lower then last year

Kilgore Economic Development Corporation directors have approved a $3 million budget for the coming year.

Amanda Nobles, KEDC manager, said the $3,005,550 budget for 2009-10 is about 12 percent lower than last year.

With sales tax receipts anticipated to be $2.75 million, about 13 percent below the current year's payments. Nobles said KEDC has budgeted $1,231,966 for incentives and new projects, down from this past year's $1.7 million.

"That number reflects the decrease in projected sales tax revenue," Nobles said.

KEDC's primary source of income is from the half-cent sales tax generated within the city limits. Interest income from KEDC's investments is projected at $57,150; lease revenues are expected to total $151,400; and oil and gas revenues at Synergy Park, $40,000.

"Our interest revenue is projected to be a third of what we had last year," Nobles said. KEDC currently invests about $5.33 million in TexPool and TexStar, both of which are conservative, low-risk investment pools for municipalities and governmental entities. Some of the invested money is committed for future payments to past contractual agreements.

KEDC's reserve fund, as of March 31, was $3,366,020.

The 4A corporation's debt service for the coming year is $451,505, which is payment of principal, interest and fees associated with bonds for the original purchase of Synergy Park and its infrastructure, as well as for the shell building, Nobles said.

Directors, headed by board president Bill Adamson, also set aside another $300,000 for 4AS "quality of life" projects approved by the city council. There was some discussion about whether to hold back on that allotment as sales tax revenue is projected to be about $400,000 less than last year, but Bobby Beane, vice president, urged the board to keep the allotment in this year and said he considered the money for these projects to be important.

Like city employees, Nobles she KEDC employees will not receive raises this year but will receive one-time $500 stipends in December.

However, a new administrative assistant/marketing position will be opened. Nobles said it will be a "fulltime/ part-time position" with reduced hours but with benefits.

KEDC will pay the City of Kilgore $270,000 for administrative services associated with payroll and benefits, and for all property and general liability insurance coverage. That amount is up .39 percent from last year's $268,951.

Maintenance of buildings and grounds expenses are projected to cost $195,210 in 2009-10. KEDC properties include three industrial parks, Synergy, North Kilgore and Kilgore, and two buildings, the former Kennedy building on Energy Drive and the building at 2706 Hwy. 135, which has been leased to Weatherford Intl..

KEDC has designated $128,800 for marketing this coming year.