8.2 Capital Equipment & Facility Modifications Grant
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
6/21/2010
TIME
4:00 P.M.
AGENDA SECTION
NO:
8
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
CITY MANAGER'S OFFICE
ITEM
NO.
Page 1
2
BY:
BY: Jason A. Gage, City Manager
ITEM:
Consider an incentive request from Philips Lighting Company to fund the purchase of capital
equipment and facility modifications to support three new projects and the addition of up to twenty-two
(22) new primary jobs.
BACKGROUND:
Philips Lighting Company manufactures fluorescent lighting and is one of Salina's largest employers.
Philips is looking at three potential new projects for their Salina facility. Together, these three potential
projects would add up to an additional twenty-two (22) jobs locally and result in an estimated $3.2
million in capital facility investment. This possibility is very good news for Salina during a difficult
economic time.
The first project would bring five (5) manufacturing positions to the facility. This project would add an
additional draw line to the glass furnace and allow the facility to make more of their own glass
components for their lamp manufacturing operation.
The second proposed project would be to relocate a testing laboratory from its current location to the
Salina factory. This relocation would enable consolidation opportunities and improve service levels for
Philip's customers. This project would add an additional eight (8) employees, to include a lab
manager and other lab technicians.
The third project is part of the Philips global consolidation process to improve overall manufacturing
efficiency and effectiveness. This proposed project would be expected to create nine (9) additional
manufacturing jobs in Salina (8 hourly production jobs and 1 engineering support position).
The wage levels from these projects will range from $22.60/hour to $24.29/hour plus benefits. This
rate is significantly above the Saline County average wage for these positions. The total estimated
payroll for these jobs is around $1.1 million.
Philips has requested $150,000 in SEDIC economic development grant funds to position them for
approval from company headquarters for these three projects. These projects would be a positive
step forward for the additional growth and development of the Philips Lighting Company in Salina.
The grant will fund capital equipment and facility modifications necessary to expand their operations
and sustain the projected employment. For these projects, this includes:
o purchase, delivery and installation of equipment necessary to modify the existing manufacturing
process;
o related electrical and building upgrades; and
o construction of a fully equipped laboratory and related facility modifications
From a grant performance perspective, each project will be looked at independently. It is important to
note that no funding will be obligated if Philips is not awarded these projects. The commitment of
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
6/21/2010
TIME
4:00 P.M.
AGENDA SECTION
NO:
8
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
CITY MANAGER'S OFFICE
ITEM
NO. 2 BY:
Page 2 BY: Jason A. Gage, City Manager
these dollars at this time reinforces our community's support for Philips and can help position Salina
as a positive location for future investment as near the end of a recessionary econom ic period.
The Wichita State University (WSU) Benefit-Cost Analysis (attached) is included and provides a
benefit-cost ratio in excess of 1.34 for all impacted governmental units.
FISCAL NOTE:
If authorized, this request will be funded from the economic development allocation of the City's sales
tax (sales tax cash flow report attached).
CONFORMANCE WITH STRATEGIC PLAN
GOAL #3: The City will create a community of qualit~ mixed-use development and
redevelopment
Philips Lighting is a global, stable, very efficiently run company, with an extremely successful track
record in Salina. Staff believes that the growth of healthy, local industries such as Philips Lighting will
certainly foster this goal.
ALTERNATIVES AND RECOMMENDED ACTION:
Due to the nature of this request, certain company trade secrets that relate to the proposed projects
cannot be publicly disclosed. If during the public discussion the City Commission has questions
about project aspects or the company that would be considered trade secrets, you can choose to
recess into executive session in order to make such inquiries of the applicant and/or discuss this
information with staff and legal counsel.
Alternative #1: Recommend to the City Commission approval of the request to commit funding for
capital equipment and facility modifications to Philips Lighting in an amount not to
exceed $150,000.
Alternative #2: Recommend to the City Commission denial of the request to commit funding for
capital equipment and facility modifications to Philips Lighting in an amount not to
exceed $150,000.
This item was recommended for approval with a unanimous vote by the SEDIC at their June 2, 2010
meeting. Staff believes this request clearly meets the intent of Resolution #09-6608, which provides
for the funding of capital expenditures in property, plant and equipment to stimulate job growth for
primary businesses. As a result, Staff also recommends Alternative #1.
Attachment: WSU Benefit-Cost Analysis
DRAFT Grant Offer Agreement
Resolution No. 09-6608
Economic Development Sales Tax Cash Flow Report
\
I l4IJ \1 {
~
WICHITA SfATE
UNNERSITY
Center for Economic Development and Business Research
Wichita State University
1845 Fairmount St.
Wichita, Kansas 67260-0121
(316) 978-3225
DATE OF ANALYSIS
TIME OF ANALYSIS
VERSION OF ANALYSIS
6/10/2010
2:11 PM
Draft
PROJECT SUMMARY (no multipliers, no substitution)
Company Name Phillips Liqhtinq
Number of new jobs for 1 a-year period 22
Amount of payroll for 1 a-year period $11,833,475
Amount of capital investment for 1 a-year period $3,725,000
Land $0
Buildings $900,000
Machinery and Equipment $2,825,000
INCENTIVE SUMMARY
City Incentives - Salina 150,000
Tax abatement 0
Sales tax exemption 0
Forgivable loans 0
Training dollars 0
Infrastructure 0
Cash value all other incentives 150,000
County Incentives - Saline 0
Tax abatement 0
Sales tax exemption 0
Forgivable loans 0
Training dollars 0
Infrastructure 0
Cash value all other incentives 0
State Incentives 0
Tax abatement 0
Sales tax exemption 0
Forgivable loans 0
Training dollars 0
Infrastructure 0
Cash value all other incentives 0
School District Incentives - 305 Salina 0
Tax abatement 0
Sales tax exemption 0
Forqivable loans 0
Training dollars 0
Infrastructure 0
Cash value all other incentives 0
Page 1 of 4
It~(j ,1
-
Center for Economic Development and Business Research
Wichita State University
1845 Fairmount St.
Wichita, Kansas 67260-0121
(316) 978-3225
WICHITA SfATE
UNIVERSIlY
DATE OF ANALYSIS
TIME OF ANALYSIS
VERSION OF ANALYSIS
6/10/2010
2:11 PM
Draft
TAX ABATEMENT PARAMETER5
Real Property
Number of years 0
Percentage 0.0%
Personal Property
Number of years 0
Percentage 0.0%
CONSTRUCTION IMPACTS
Jobs Multiplier 1.6547
Earninqs Multiplier 1.5556
11
$450,000
Total jobs
Total payroll earnings
17
$700,020
SUBSTITUTION
Firm NAICS code 335120 Liqhtinq fixture manufacturinq
Substitution percentage applied to firm operations 0.0%
FIRM MULTIPLIERS (On-going Operations)
Jobs 2.2775
Earnings 1.7793
ECONOMIC IMPACT OF FIRM OPERATIONS
Number of jobs 10-year period
Direct 22
Total 50
Payroll earnings for 1 O-year period
Direct $11,833,475
Total $21,055,302
Page 2 of 4
I ),t ,11,
~
WICHITA SfATE
UNMRSIlY
Center for Economic Development and Business Research
Wichita State University
1845 Fairmount St.
Wichita, Kansas 67260-0121
(316) 978-3225
DATE OF ANALYSIS
TIME OF ANALYSIS
VERSION OF ANALYSIS
6/10/2010
2:11 PM
Draft
FISCAL IMPACT
City Fiscal Impacts. - Salina Discounted
Present value of net benefits $49,296
Rate of Return on Investment
Net public benefits 1 a-year period $49,296
Public costs 1 a-year period $144,928
ROI 34.0%
Benefit-Cost Ratio
Public benefits 1 a-year period $194,224
Public costs 1 a-year period $144,928
Benefit-Cost Ratio 1.34
County Fiscal Impacts. - Saline Discounted
Present value of net benefits $102,287
Rate of Return on Investment
Net public benefits 1 a-year period $102,287
Public costs 1 a-year period $0
ROI NA
Benefit-Cost Ratio
Public benefits 1 a-year period $102,287
Public costs 1 a-year period $0
Benefit-Cost Ratio NA
State Fiscal Impacts Discounted
Present value of net benefits $1,135,880
Rate of Return on Investment
Net public benefits 1 a-year period $1,135,880
Public costs 1 a-year period $0
ROI NA
Benefit-Cost Ratio
Public benefits 1 a-year period $1,135,880
Public costs 1 a-year period $0
Benefit-Cost Ratio NA
School District Fiscal Impacts. - 305 Salina Discounted
Present value of net benefits $35,254
Rate of Return on Investment
Net public benefits 1 a-year period $35,254
Public costs 1 O-vear period $0
ROI NA
Benefit-Cost Ratio
Public benefits 1 a-year period $35,254
Public costs 1 a-year period $0
Benefit-Cost Ratio NA
Page 3 of 4
In the preparation of this report, the Centerfor Economic Development and Eusiness Research assumed that
all information and data provided by the applicant or others is accurate and reliable. CEDER did not take
extraordinmy steps to verify or audit such information, but relied on such information and data as provided
for p1ll]Joses (~lthe project.
This analysis requires CEDER to make predictive forecasts, estimates and/or projections (hereinafter
collectively referred to as "FORWARD-LOOKING STATEMENTS"). These FORWARD-LOOKING
STATEMENTS are based on information and data provided by others and involve risks, uncertainties and
assumptions that are d(fflcult to predict. The FORWARD-LOOKING STATEMENTS should not be considered
as guarantees or assurances that a certain level (dpelformance will be achieved or that certain events will
occur. While CEDER believes that all FORWARD-LOOKING STATEMENTS it provides are reasonable
based on the information and data available at the time o.lwriting, actual outcomes and results are dependent
on a variety (~ffactors and may d!tler materiallyji'om what is expressed orforecast. CEDER does not assume
any responsibilityfor any and all decisions made or actions taken based upon the FORWARD-LOOKING
STATEMENTSprovided by CEDER.
Page 4 of 4
CITY OF SALINA
SPECIAL 1/4 CENT SALES TAX CASH FLOW DETAIL
Commitment or
Receipts Expenditure Encumbrance Balance Comment
9/24/2004 $ 15,487.57 $ 15,487.57 Sales Tax Distribution
9/30/2004 $ 2.47 $ 15,490.04 Interest Allocation
1 0/28/2004 $ 23,961.92 $ 39,451.96 Sales Tax Distribution
1 0/31/2004 $ 30.77 $ 39,482.73 Interest Allocation
11/29/2004 $ 25,183.70 $ 64,666.43 Sales Tax Distribution
11/30/2004 $ 87.59 $ 64,754.02 Interest Allocation
12f7/2004 $ (10,772.19) $ 53,981.83 Sales Tax Distribution
12/22/2004 $ 22,489.67 $ 76,471.50 Sales Tax Distribution
12/31/2004 $ 225.98 $ 76,697.48 Interest Allocation
1/31/2005 $ 24,098.65 $ 100,796.13 Sales Tax Distribution
1/31/2005 $ 187.40 $ 100,983.53 Interest Allocation
2/28/2005 $ 26,839.81 $ 127,823.34 Sales Tax Distribution
2/28/2005 $ 50.75 $ 127,874.09 Interest Allocation
3/31/2005 $ 22,092.24 $ 149,966.33 Sales Tax Distribution
3/31/2005 $ 111.97 $ 150,078.30 Interest Allocation
4/28/2005 $ 21,564.60 $ 171,642.90 Sales Tax Distribution
4/30/2005 $ 142.59 $ 171,785.49 Interest Allocation
5/27/2005 $ 23,913.56 $ 195,699.05 Sales Tax Distribution
5/31/2005 $ 416.53 $ 196,115.58 Interest Allocation
6/16/2005 $ 10,000.00 $ 186,115.58 Salina Downtown Fa~ade Program
6/1612005 $ 20,000.00 $ 40,000.00 $ 126,115.58 North Central RPC 3 year program
6/28/2005 $ 22,076.99 $ 148,192.57 Sales Tax Distribution
6/30/2005 $ 174.69 $ 148,367.26 Interest Allocation
7/27/2005 $ 23,315.15 $ 171,682.41 Sales Tax Distribution
7/31/2005 $ 242.75 $ 171,925.16 Interest Allocation
8/29/2005 $ 25,236.53 $ 197,161.69 Sales Tax Distribution
8/31/2005 $ 288.47 $ 197,450.16 Interest Allocation
9/28/2005 $ 23,396.01 $ 220,846.17 Sales Tax Distribution
9/30/2005 $ 180.77 $ 221,026.94 Interest Allocation
10/27/2005 $ 24,734.47 $ 245,761.41 Sales Tax Distribution
10/31/2005 $ 293.49 $ 246,054.90 Interest Allocation
11/30/2005 $ 734.98 $ 246,789.88 Interest Allocation
12/1/2005 $ 24,260.81 $ 271,050.69 Sales Tax Distribution
12/27/2005 $ 23,519.43 $ 294,570.12 Sales Tax Distribution
12/31/2005 $ 616.03 $ 295,186.15 Interest Allocation
1/31/2006 $ 25,005.65 $ 320,191.80 Sales Tax Distribution
1/31/2006 $ 1,123.26 $ 321,315.06 Interest Allocation
2/27/2006 $ 27,991.50 $ 349,306.56 Sales Tax Distribution
2/28/2006 $ 490.98 $ 349,797.54 Interest Allocation
3/6/2006 $ 50,000.00 $ 299,797.54 Kansas Army National Guard
3/30/2006 $ 22,110.37 $ 321,907.91 Sales Tax Distribution
3/31/2006 $ 978.63 $ 322,886.54 Interest Allocation
4/28/2006 $ 22,544.02 $ 345,430.56 Sales Tax Distribution
4/30/2006 $ 1,212.58 $ 346,643.14 Interest Allocation
5/31/2006 $ 25,767.51 $ 372,410.65 Sales Tax Distribution
5/31/2006 $ 1,586.69 $ 373,997.34 Interest Allocation
6/30/2006 $ 24,729.35 $ 398,726.69 Sales Tax Distribution
6/30/2006 $ 759.06 $ 399,485.75 Interest Allocation
7/26/2006 $ 20,000.00 $ (20,000.00) $ 399,485.75 North Central RPC 3 year program
7/28/2006 $ 24,669.37 $ 424,155.12 Sales Tax Distribution
7/31/2006 $ 1,749.45 $ 425,904.57 Interest Allocation
8/2/2006 $ 12,000.00 $ 413,904.57 Salina Downtown Fa~ade Program
8/31/2006 $ 1,749.37 $ 415,653.94 Interest Allocation
9/5/2006 $ 29,657.15 $ 445,311.09 Sales Tax Distribution
9/28/2006 $ 23,832.53 $ 469,143.62 Sales Tax Distribution
9/30/2006 $ 3,005.14 $ 472,148.76 Interest Allocation
10/31/2006 $ 3,226.75 $ 475,375.51 Interest Allocation
11/212006 $ 26,568.73 $ 501,944.24 Sales Tax Distribution
11/30/2006 $ 24,704.54 $ 526,648.78 Sales Tax Distribution
11/30/2006 $ 5,390.16 $ 532,038.94 Interest Allocation
12/312006 $ 76,171.71 $ 455,867.23 Raytheon Development Project
12/13/2006 $ 53,828.29 $ 402,038.94 Raytheon Development Project
12/28/2006 $ 24,567.26 $ 426,606.20 Sales Tax Distribution
12/31/2006 $ 6,423.04 $ 433,029.24 Interest Allocation
1/30/2007 $ 24,665.79 $ 457,695.03 Sales Tax Distribution
1/31/2007 $ 3,073.42 $ 460,768.45 Interest Allocation
2/28/2007 $ 2,741.00 $ 463,509.45 Interest Allocation
3/2/2007 $ 31,112.33 $ 494,621.78 Sales Tax Distribution
City of Salina - Special 1/4 Cent Sales Tax Cash Flow Detail
CITY OF SALINA
SPECIAL 1/4 CENT SALES TAX CASH FLOW DETAIL
3/2912007 $ 21,851.50 $ 516,473.28 Sales Tax Distribution
3/3112007 $ 2,212.32 $ 518,685.60 Interest Allocation
4/3012007 $ 23,184.03 $ 541,869.63 Sales Tax Distribution
4/3012007 $ 2,244.28 $ 544,113.91 Interest Allocation
5/3012007 $ 27,796.70 $ 571,910.61 Sales Tax Distribution
5/31/2007 $ 2,472.52 $ 574,383.13 Interest Allocation
6/30/2007 $ 2,442.48 $ 576,825.61 Interest Allocation
7/6/2007 $ 24,940.17 $ 601,765.78 Sales Tax Distribution
7/18/2007 $ 15,000.00 $ 586,765.78 Salina Downtown Fa~ade Program
7/3112007 $ 3,335.58 $ 590,101.36 Interest Allocation
8/6/2007 $ 25,951.39 $ 616,052.75 Sales Tax Distribution
8/612007 $ 24,000.00 $ 592,052.75 Premier Pneumatics
8/1512007 $ 20,000.00 $ (20,000.00) $ 592,052.75 North Central RPC 3 year program
8/30/2007 $ 26,428.83 $ 618,481.58 Sales Tax Distribution
8/3112007 $ 618,481.58 Interest Allocation
8/31/2007 $ (50,000.00) $ 668,481.58 Kansas Army National Guard
8/3112007 $ 4,839.93 $ 673,321.51 Interest Allocation
9/24/2007 $ 52,520.00 $ 620,801.51 Hawker Beechcraft
9/30/2007 $ 2,727.87 $ 623,529.38 Interest Allocation
101212007 $ 26,030.30 $ 649,559.68 Sales Tax Distribution
10/3112007 $ 29,210.05 $ 678,769.73 Sales Tax Distribution
10/3112007 $ 2,161.36 $ 680,931.09 Interest Allocation
11/30/2007 $ 23,282.55 $ 704,213.64 Sales Tax Distribution
11/3012007 $ 2,719.40 $ 706,933.04 Interest Allocation
12/31/2007 $ 26,013.21 $ 732,946.25 Sales Tax Distribution
12/3112007 $ 4,740.95 $ 737,687.20 Interest Allocation
1/1/2008 $ 50,000.00 $ 687,687.20 Salina Downtown Fa~ade Program
1/28/2008 $ 45,000.00 $ 642,687.20 Entreprenuershlp Program
1/3112008 $ 2,537.03 $ 645,224.23 Interest Allocation
2/1/2008 $ 26,978.35 $ 672,202.58 Sales Tax Distribution
2/2512008 $ 49,200.00 $ 623,002.58 CAY Aerospace
2/27/2008 $ 30,615.89 $ 653,618.47 Sales Tax Distribution
2/2712008 $ 45,000.00 $ (45,000.00) $ 653,618.47 Entreprenuershlp Program
2/2912008 $ 2,492.80 $ 656,111.27 Interest Allocation
3/3112008 $ 26,161.69 $ 682,272.96 Sales Tax Distribution
3/3112008 $ 3,832.04 $ 686,105.00 Interest Allocation
4/2512008 $ 100,000.00 $ 586,105.00 K-5tate Salina
4/3012008 $ 22,281.88 $ 608,386.88 Sales Tax Distribution
4/3012008 $ 1,158.73 $ 609,545.61 Interest Allocation
5/2112008 $ 21,000.00 $ 588,545.61 Thunderstruck, Inc.
5/31/2008 $ 629.12 $ 589,174.73 Interest Allocation
5/3112008 $ 589,174.73 Sales Tax Distribution
6121/2008 $ 50,000.00 $ (50,000.00) $ 589,174.73 Salina Downtown Fa!;ade Program
6/3012008 $ 857.21 $ 590,031.94 Interest Allocation
7/1/2008 $ 27,766.55 $ 617,798.49 Sales Tax Distribution
7/1/2008 $ 24,981.03 $ 642,779.52 Sales Tax Distribution
7/31/2008 $ 1,118.88 $ 643,898.40 Interest Allocation
8/5/2008 $ 27,578.21 $ 671,476.61 Sales Tax Distribution
8/29/2008 $ 29,188.36 $ 700,664.97 Sales Tax Distribution
8/29/2008 $ 52,520.00 $ (52,520.00) $ 700,664.97 Hawker Beechcraft
8/3112008 $ 2,296.88 $ 702,961.85 Interest Allocation
9/29/2008 $ 26,472.94 $ 729,434.79 Sales Tax Distribution
9/30/2008 $ 649.46 $ 730,084.25 Interest Allocation
10/24/2008 $ 17,868.65 $ (17,868.65) $ 730,084.25 K-5tate Salina
10/31/2008 $ 251.79 $ 730,336.04 Interest Allocation
11/5/2008 $ 28,000.96 $ 758,337.00 Sales Tax Distribution
11/19/2008 $ 24,000.00 $ (24,000.00) $ 758,337.00 Premier Pneumatics
11/30/2008 $ 1,858.85 $ 760,195.85 Interest Allocation
12/1/2008 $ 26,729.47 $ 786,925.32 Sales Tax Distribution
12/29/2008 $ 26,836.03 $ 813,761.35 Sales Tax Distribution
1/1512009 $ 5,483.08 $ (5,483.08) $ 813,761.35 K-5tate Salina
1/29/2009 $ 30,634.53 $ 844,395.88 Sales Tax Distribution
1/31/2009 $ 404.81 $ 844,800.69 Interest Allocation
2/1/2009 $ 40,000.00 $ 804,800.69 SDllnc.
2/2612009 $ 26,130.22 $ 830,930.91 Sales Tax Distribution
2/2812009 $ 871.61 $ 831,802.52 Interest Allocation
3/30/2009 $ 27,862.35 $ 859,664.87 Sales Tax Distribution
3/3112009 $ 45.51 $ 859,710.38 Interest Allocation
4/3012009 $ 22,080.48 $ 881,790.86 Sales Tax Distribution
4/3012009 $ 32.59 $ 881,823.45 Interest Allocation
5/19/2009 $ 744.86 $ (744.86) $ 881,823.45 K-5tate Salina
City of Salina - Special 1/4 Cent Sales Tax Cash Flow Detail
CITY OF SALINA
SPECIAL 1/4 CENT SALES TAX CASH FLOW DETAIL
5/19/2009 $ 23,252.52 $ (23,252.52) $ 881,823.45 K-State Salina
5/30/2009 $ 328.84 $ 882,152.29 Interest Allocation
6/5/2009 $ 25,896.52 $ 908,048.81 Sales Tax Distribution
6/2212009 $ 229.00 $ (229.00) $ 908,048.81 K-State Salina
6/24/2009 $ 50,000.00 $ 858,048.81 Salina Downtown Fa,,:ade Program
6/29/2009 $ 25,765.90 $ 883,814.71 Sales Tax Distribution
6/30/2009 $ 28.30 $ 883,843.01 Interest Allocation
7/8/2009 $ (480.84) $ 883,362.17 Lambertz TIF Credit
7/31/2009 $ 28,000.86 $ 911,363.03 Sales Tax Distribution
7/31/2009 $ 1,817.87 $ 913,180.90 Interest Allocation
8/1/2009 $ (289.63) $ 912,891.27 Lambertz TIF Credit
8/25/2009 $ 11,763.48 $ (11,763.48) $ 912,891.27 K-State Salina
8/26/2009 $ (287.52) $ 912,603.75 Lambertz TIF Credit
8/28/2009 $ 24,245.68 $ 936,849.43 Sales Tax Distribution
8/31/2009 $ 1,950.32 $ 938,799.75 Interest Allocation
9/10/2009 $ 14,473.39 $ (14,473.39) $ 938,799.75 K-State Salina
9/2212009 $ (304.02) $ 938,495.73 Lambertz TIF Credit
9/2212009 $ 25,275.02 $ 963,770.75 Sales Tax Distribution
9/30/2009 $ 2,042.66 $ 965,813.41 Interest Allocation
1 0/1/2009 $ 25,275.02 $ 991,088.43 Sales Tax Distribution
1 0/30/2009 $ 7,390.48 $ (7,390.48) $ 991,088.43 K-State Salina
10130/2009 $ 25,694,22 $ 1,016,782.65 Sales Tax Distribution
1 0130/2009 $ 68.16 $ 1,016,850.81 Interest Allocation
11/24/2009 $ (239.64) $ 1,016,611.17 Lambertz TIF Credit
11/24/2009 $ (270.91 ) $ 1,016,340.26 Lambertz TIF Credit
11/30/2009 $ 6,160.76 $ 1,022,501.02 Interest Allocation
12/4/2009 $ 10,737.24 $ (10,737.14) $ 1,022,500.92 K-State Salina
12/29/2009 $ 27,570.56 $ 1,050,071.48 Sales Tax Distribution
12/31/2009 $ 4,847.03 $ 1,054,918.51 Interest Allocation
12/31/2009 $ 160.52 $ 1,055,079.03 Interest Allocation
1/28/201 0 $ (950.37) $ 1,054,128.66 Lambertz TIF Credit
1/29/2010 $ 24,249.57 $ 1,029,879.09 Sales Tax Distribution
1/31/2010 $ 1,540.57 $ 1,031,419.66 Interest Allocation
2/1/2010 $ 8,057.30 $ (8,057.30) $ 1,031,419.66 K-State Salina
2/26/201 0 $ 27,096.11 $ 1,058,515.77 Sales Tax Distribution
2/28/2010 $ 73.20 $ 1,058,588.97 Interest Allocation
3/24/2010 $ 40,000.00 $ 1,018,588.97 SDllnc.
3/24/2010 $ 50,000.00 $ 968,588.97 Salina Downtown Fa,,:ade Program
3/31/2010 $ 26,799.87 $ 995,388.84 Sales Tax Distribution
3/31/2010 $ 80.73 $ 995,469.57 Interest Allocation
4/13/2010 $ (790.68) $ 994,678.89 Lambertz TIF Credit
4/1912010 $ 200,000.00 $ 794,678.89 K-State Salina-Pending Contract
4/29/2010 $ 21,237.40 $ 815,916.29 Sales Tax Distribution
4/30/201 0 $ 72.14 $ 815,988.43 Interest Allocation
$ 815,988.43
$ 815,988.43
Totals To date $ 1,788,958.10 $ 723,769.57 $ 249,200.10 $ 815,988.43
Revenues
$ 1,687,169.85 Sales Tax Distribution
$ (3,613.61) Lambertz TIF Credit
$ 105,401.86 Interest Allocation
$ 1,788,958.10 Total
Expenses and Commitments
$ 187,000.00 $ $ 187,000.00 Salina Downtown Fa,,:ade Program
$ 80,000.00 $ $ 80,000.00 SDllnc.
$ 60,000.00 $ $ 60,000.00 North Central RPC 3 year program
$ 130,000.00 $ $ 130,000.00 Raytheon Development Project
$ 52,520.00 $ $ 52,520.00 Hawker Beechcraft
$ 21,000.00 $ $ 21,000.00 Thunderstruck, Inc.
$ 24,000.00 $ $ 24,000.00 Premier Pneumatics
$ 45,000.00 $ $ 45,000.00 Entreprenuershlp Program
$ $ 49,200.00 $ 49,200.00 CAY Aerospace
$ 100,000.00 $ 0.10 $ 100,000.10 K-State Salina
$ $ $ Kansas Army National Guard
$ 699,520.00 $ 49,200.10 $ 748,720.10 Total
City of Salina - Special 1/4 Cent Sales Tax Cash Flow Detail
RESOLUTION NUMBER 09-6608
A RESOLUTION REGARDING THE SALINA ECONOMIC DEVELOPMENT INCENTIVES COUNCIL.
WHEREAS, that in 2004, Salina voters approved a special one-quarter cent Cf4 cent) sales tax and 12.5% of the
revenues from the special sales tax were restricted to the establishment of an economic development fund managed by the
City of Salina; and
WHEREAS, that in October 2004, the City Commission unanimously approved an initiative proposed by the Salina
Airport Authority and the Salina Area Chamber of Commerce to provide incentives to new and existing manufacturing and
primary businesses; and
WHEREAS, that the City Commission formed an ad hoc committee led by the Mayor and Vice Mayor to further
explore the protocol for expending the economic development funds, which then resulted in the establishment of a six
member Salina Economic Development Incentives Council pursuant to Resolution No. 05-6220; and
WHEREAS, on November 4,2008, Salina voters approved a substitute 0.40 percent (0.40%) special purpose sales
tax effective April I, 2009, for a number of purposes, including continuation of an economic development fund managed by
the City of Salina.
WHEREAS, it is the City Commission's intent to budget 7.8125% of the revenues from the special purpose sales
tax for continuation of an economic development fund. SO NOW THEREFORE,
BE IT RESOLVED by the governing body of the City of Salina, Kansas:
Section 1. Establishment. That the continued need for and status of the Salina Economic Development Incentives
Council (S.E.D.I.C.), as established pursuant to Resolution No. 05-6220, is confirmed.
Section 2. Responsibilities. The responsibilities of the S.E.D.I.C. are to:
(a) Develop and recommend guidelines, policies and processes to the City Commission for grants from the
allocated special sales tax funds for incentives to new and existing manufacturers and primary
businesses for the purpose of enticing them to relocate or expand capital and/or human investment in
Salina/Saline County in order to provide a stimulus to the local economy;
(b) Review applications and make specific recommendations to the City Commission regarding grants from
the sales tax;
(c) Make recommendations to the City Commission, County Commission and/or local government bodies
regarding other public economic development incentives; and
(d) Provide regular reports to the City Commission, County Commission, Salina Airport Authority Board
of Directors and the Chamber of Commerce Board of Directors regarding economic development
projects receiving incentives.
(e) Review applications and make specific recommendations to the City Commission regarding grants from
the sales tax;
(f) Make recommendations to the City Commission, County Commission and/or local government bodies
regarding other public economic development incentives; and
(g) Provide regular reports to the City Commission, County Commission, Salina Airport Authority Board
of Directors and the Chamber of Commerce Board of Directors regarding economic development
projects receiving incentives.
Section 3. Membership. The S.E.D.I.C. will be made up of the following persons:
( a) Mayor;
(b) Saline County Commission Chair;
(c) Salina Airport Authority Board Chair;
(d) Salina Chamber of Commerce Board Chair;
(e) Two citizens appointed by the Mayor and the City Commission; and
(f) Citizen appointed by the Saline County Commission
The citizens appointed by the City and County shall serve for terms of two years and shall be eligible for reappointment in
accordance with Resolution No. 90-4242.
Section 4. Oreanization. The S.E.D.I.C. chair shall be the Mayor and vice-chair shall be the Saline County
Commission Chair.
Section 5. Administration. Administration of the S.E.D.1C. shall be as follows:
(a) Meetings are to be held at least annually, and otherwise as needed for related projects, programs and
funding applications;
(b) Professional staffing for the S.E.DJ.C. to be provided by the City Manager, County Administrator,
Airport Authority Executive Director and Chamber of Commerce President;
(c) Administrative/clerical support shall be provided by the Chamber of Commerce;
(d) All meetings/records are covered under the Kansas Open Meetings Act and Open Records Act as
specified by State law; and
(e) The use oflocal organizations and other resources is highly encouraged.
Section 6. Miscellaneous. Miscellaneous considerations regarding this council are as follows:
(a) For purposes of the S.E.D.I.C. "primary business" includes manufacturing, processing, interstate
distribution, research, aviation, aerospace, or service sector businesses which derive a minimum of 90%
of revenue from sources outside Saline County;
(b) Sales tax grants are to focus primarily on human capital investment in training and capital investment in
plant, property and equipment, with priority given to human capital investment in training. Also, it is
important to ensure that existing primary businesses remain eligible for grant funding; and
(c) A program performance review is recommended to occur annually. This will allow an opportunity to
make any adjustments deemed necessary for the remaining term of the special sales tax funding.
Section 7. Effective Date. This resolution shall take effect from and after its adoption.
Adopted by the Board of Commissioners and signed by the Mayor this 23rd day of March, 2009.
John K. Vanier II, Mayor
[SEAL]
ATTEST:
Lieu Ann Elsey, CMC, City Clerk