Agenda Information Sheet
DEPARTMENT: Finance
ACM: Bryan Langley
Date: August 16, 2016
SUBJECT
Title
Consider adoption of an ordinance of the City Council of the City of Denton, Texas, establishing an Economic Development Investment Fund; defining and committing certain revenues of the City; providing a severability clause; and providing an effective date.
Body
BACKGROUND
The Governmental Accounting Standards Board (GASB) has adopted Statement No. 54, which states that Special Revenue Funds are used to account for specific revenue sources that are restricted or committed to expenditures for purposes other than debt service or capital projects. In order to comply with GASB 54, the City Council must adopt an ordinance defining the scope, funding source, and purpose of the Economic Development Investment Fund, a Special Revenue Fund.
The attached ordinance will memorialize the City Council's intent regarding the Economic Development Investment Fund and ensure compliance with GASB 54. In conjunction with the FY 2015-16 Adopted Budget, the City Council approved the creation of this fund and dedicating $150,000 annually in mixed beverage taxes in order to create a cash grant program to increase the City's ability to compete for large economic development projects against communities with Types 4A or 4B economic development sale tax. The purpose of this fund is to provide cash grants to companies meeting at least two of three criteria which are also defined below:
1. Providing higher-wage or knowledge-based jobs;
2. Making a substantial capital investment; and
3. Addressing a recruitment or supplier target.
Higher-wage jobs are defined as having an average annual wage of $55,000 or greater for all positions or at least 25% of the positions have an annual wage of $65,000 or greater.
Knowledge-based jobs are defined as occupations which:
* Require specialized and theoretical knowledge, usually acquired through a college education or through work exper...
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