FY 2018-19 Budget Presentation

Economic Development

Economic DevelopmentAccomplishmentsAccomplishments for 17-18• Transitioned management of Stoke Entrepreneur Center to

Hickory & Rail Ventures• Assisted in opening Embassy Suites by Hilton Denton Convention

Center• Located US Cold Storage and expanded Fisher59• Increased year-over-year participation in Shop Here on Purpose

(SHOP) Denton program • Launched new outreach programs, including the “Denton

Developments” video series and an economic development column in the Denton Business Chronicle

• Revised City of Denton Policy for Tax Abatement and Incentives• Implemented new performance measures

Economic DevelopmentKey Performance Metrics

Performance Measure FY 17-18 Target Q1 & Q2 Total

# RFPs returned in target industry sectors (State and DRC)

20 7

# direct leads worked (baseline data collection year) 16

# workforce development activities or grants facilitated

12 31

# Downtown properties redeveloped

6 6

# Downtown BRE visits 24 7

# general BRE visits 48 17

Business assistance provided (baseline data collection year) 239

Participation in small business programs

10% increase over FY16-17 29.5% increase

Economic DevelopmentGoalsGoals for 18-19• Revise the Public Improvement District Guidelines to clarify

the City’s position on the use of residential and commercial public improvement districts.• Leverage Denton’s designation as an Official Music Friendly

Community by the Texas Music Office and a Film Friendly Certified Community by the Texas Film Commission• Streamline operations of the Public Art Committee• Explore Denton’s participation in the Texas Commission on

the Arts’ Cultural Districts program• Continue implementation of the business retention and

expansion program

City Economic

Development

Business Development

Entrepreneur-ship

Workforce Development

Community Relations

Project Administration

Cultural Affairs

Economic DevelopmentBudget Emphasis

The Department of Economic Development promotes shared prosperity in Denton.

We offer support and services to businesses of all sectors and sizes through a variety of strategic efforts.

RecruitmentRetentionDowntown

StokeSmall Business Programs

PartnershipsGrants

DBC column“Denton Developments” on DTVSpeaking engagements

Special DistrictsBoards/CommitteesIncentivesLong-term projects

MusicFilmPublic Art

Economic DevelopmentFTEs By Functional Area

FTEs By Functional Area FY 2014-15Actuals

FY 2015-16Actuals

FY 2016-17Actuals

FY 2017-18Budget

FY 2018-19Proposed

Administration 5.75 6.75 6.75 5.75 5.75

Total FTEs 5.75 6.75 6.75 5.75 5.75

6

Economic DevelopmentStaffing

Caroline Booth

Director of Economic Development

Michelle CunninghamBusiness Development

Officer

(workforce, retention/expansion, Public

Art)

Christina Davis

Economic Development Specialist

(recruitment, marketing, small business)

Julie Glover

Program Administrator

(Downtown, music, film)

Erica Sullivan

Economic Development Analyst

(project analysis, special districts, incentive admin.)

Michelle CoughlinAdministrative Assistant

Economic DevelopmentCost Containment Strategies

Cost containment strategies:•Monthly meetings among Economic Development,

Finance, and Legal departments

• Cross training between Economic Development and Finance staff

• Internal cross training with Economic Development staff

• Fully leveraging existing staff

Economic DevelopmentProcess Improvements

Completed process improvements:• In-house development of Access system to track performance

measures

Future process improvements:• Document standard operating procedures for critical

functions

Economic DevelopmentRevenue / Expenditures

• Chapter 380 agreements for Victor, US Aviation Group, and Business Air were terminated in FY 2017-18 so not included in FY 2018-19 budget

• WinCo Distribution Center Ch. 380: $87,000 budgeted increase

• Rayzor Ranch Ch. 380: $468,000 budgeted increase

• O’Reilly Ch. 380: $1.3 million budgeted increase

• Buc-ee’s Ch. 380 (first year): $187,000 budgeted

• Operations budget less Ch. 380 rebates: $100,525

Economic DevelopmentBudget Highlights

Expenses FY 2014-15Actuals

FY 2015-16Actuals

FY 2016-17Actuals

FY 2017-18Budget

FY 2018-19Baseline

Personal Services $554,973 $575,393 $625,099 $649,372 $676,070

Materials & Supplies 32,440 31,434 29,260 56,643 39,650

Maintenance 576 - - 10,600 5,600

Insurance 9,034 9,724 2,039 6,288 8,437

Miscellaneous 177,426 211,891 318,730 91,397 85,397

Operations 1,941,251 2,049,990 2,864,174 3,589,208 5,099,055

Cost of Service 31,231 36,268 37,498 54,563 42,801

Fixed Assets 103,841 112,435 - - -

Total $2,850,772 $3,027,135 $3,876,800 $4,458,071 $5,957,010

Economic DevelopmentOperations Detail: Ch. 380 Rebates

Description FY 2018-19

Sally Beauty $24,250

WinCo DC 306,171

O’Reilly 1,402,514

Buc-ee’s 187,500

Westgate Business Park $35,083

Cont. -

Description FY 2018-19

Schlumberger 60,000

Mayday 41,450

Denton Crossing 589,945

Unicorn Lake 76,220

Rayzor Ranch 1,956,747

Golden Triangle Mall 119,480

Grand Total $4,799,360

Economic DevelopmentOperations Detail: Active Ch. 380 Project Net Revenue

Project & Initiation Year

2017 Net Revenue

Cumulative Net Revenue

Denton Crossing (2005) 1,685,729 19,216,681

Schlumberger (2007) 1,102,058 2,648,305

Unicorn Lake (2010) 1,032,431 6,837,429

Rayzor Ranch (2012) 2,224,372 13,243,724

Mayday (2014) 18,681 69,090

Westgate Business Park (2016)

19,943 38,064

Golden Triangle Mall (2016)

1,896,730 9,107,839

Total $7,979,944 $51,161,132

Questions / Comments

Economic Development