Agenda Item Wording:
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Approve continued membership in Tulare County Economic Development Corporation (TCEDC) for FY 2023/24 for $60,000 and appropriate $10,000 from General Fund to Economic Development Division budget.
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Deadline for Action: 8/7/2023
Submitting Department: Community Development
Contact Name and Phone Number: Devon Jones, Economic Development Manager, 713-4190
Department Recommendation:
Approve continued membership in Tulare County Economic Development Corporation (TCEDC) for FY 2023/24 for $60,000 and appropriate $10,000 from General Fund to Economic Development Division budget as prior budgeted amount was $50,000. Staff would support continuing membership for FY 23/24 at the increased level, in part, due to the TCEDC’s transition to GIS Webtech as the vendor for an enhanced real estate database. Utilizing GIS Webtech will come at an increased cost to TCEDC but will allow for a more robust site selection tool as it will incorporate the City’s local GIS layers, such as zoning, general plan land use, urban development boundaries, local infrastructure locations, circulation element and other Esri based layers. with other economic development partners. With more information incorporated into the real estate database itself, TCEDC will make the site selection process more efficient for prospects and save both TCEDC and city staff time on initial inquiries.
Additionally, there has not been a CPI increase or inflationary adjustment to the membership amount for the past three fiscal years, so a portion of the $10,000 increase is understandable from that perspective as well. The City’s contribution has been $50,000 annually since FY 20/21. In past years, the City’s contribution was $84,440 in FY 19/20, $92,440 in FY 18/19 and FY 17/18, $165,593 in FY 16/17 and FY 15/16.
Over the course of this fiscal year, staff will also prioritize working with the TCEDC and stakeholders to assist in implementing a more sustainable operating budget and corresponding work plan for future years. While quality of customer service and transparency has improved, and many budget reductions have been implemented, TCEDC’s reserve fund, which has been utilized to balance the organization’s budget, is rapidly depleting. In FY 20/21, when public sector membership levels were lowered, it was thought the budget could be balanced through operational budget cuts and increased private sector memberships. As mentioned above, numerous budget cuts have been made and private sector membership growth is not occurring at the rate envisioned. There is a private sector membership drive initiated that could yield a sharp increase in private sector revenue, but staff’s assessment is that short of necessary revenue increases, the reserve fund could continue to be depleted which may necessitate more drastic cuts to the operating budget, or a new service alternative. If a more sustainable operating budget, or increased revenues do not appear likely for FY 24/25, staff will present an alternative service plan to Council for consideration with the FY 24/25 TCEDC membership option.
Background Discussion:
None
Fiscal Impact:
Additional $10,000 will need to be appropriated from General Fund to Economic Development Division budget for membership at this level. $50,000 has already been approved in the existing budget.
Prior Council Action: 4.17.23 - Approved FY 23/24 membership in TCEDC for $50,000
Other: N/A
Alternatives: Per Council direction
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to approve continued membership in the Tulare County Economic Development Corporation for FY 2023/24 for $60,000 and appropriate $10,000 from General Fund to Economic Development Division budget.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: TCEDC letter