Economic Development Corporation

The Forney Economic Development Corporation (FEDC) is funded by a ½ cent local sales tax. The FEDC works to attract desirable new business and support existing businesses through business retention efforts. This is accomplished by working closely with the City of Forney through the City Manager’s Office alongside the other City departments, community organizations, and private sector entities. The Economic Development Corporation maintains two funds: ► Economic Development Corporation Operating Fund ► Economic Development Corporation Capital Improvement Fund

Sales tax revenue makes up 98% of the Economic Development Corporation’s revenue. The remaining 2% is categorized as Miscellaneous and includes revenue from downtown property leases and sales of EDC owned properties.

Tax Revenue - $4,000,420 In May of 1994, Forney citizens approved an additional 1.00% sales tax for the purpose of creating and funding the Forney Economic Development Corporation (EDC) and property tax reduction. Half of the approved 1.00% funds the FEDC and the other half is retained by the City in order to offset property taxes. Estimates for sales tax collections are based on prior year collections and trends.

Over the past five years, sales tax revenues have increased an average of 14.8% per year. This continued increase is indicative of a growing local economy, resulting from continued population growth within the city limits and the surrounding area, as well as increased commercial development.

The Fiscal Year 2022 budget assumed a 7% increase in sales tax revenue over Fiscal Year 2021, and actual collections are trending 22.36% above the budgeted amount. The Fiscal Year 2023 budget remains conservative with a projected 7% increase over 2022 year-end projections.

4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 -

Sales Tax Revenue

4,000,417 3,738,707 3,055,436 3,247,009 2,453,488 1,845,622 2,081,619

FY 2018 ACTUAL FY 2019 ACTUAL FY 2020 ACTUAL FY 2021 ACTUAL FY 2022 BUDGET FY 2022 REVISED FY 2023 BUDGET

Interest & Penalty - $2,500 Interest is collected on checking accounts and investments.

Miscellaneous - $69,844 Miscellaneous Income for the EDC includes lease income, sale of properties, and minor, onetime payments made for small events or training courses hosted by the Forney Economic Development Corporation.

EDC USE OF FUNDS

Salary & Benefits accounts for 29% of the Economic Development Department spending. As with all other city staff, a cost-of-living adjustment of 3% and a possible merit increase of 2% are included in the 2023 budget. Health insurance costs are budgeted at a 15% increase. Services & Supplies make up 30% of the total EDC expenses. This includes sales tax abatement agreements, the expenses associated with daily activities of the office and with trade shows and promotions.

Maintenance & Repair expenses are 39% of the EDC’s spending and the category is composed of expenses associated with FEDC owned properties and programs that encourage and assist in local business development.

The Economic Development Corporation issued debt in Fiscal Year 2013 for the purpose of improving the downtown area. While the EDC’s debt was previously represented as being accounted for in a separate fund, in actual practice this debt is accounted for In the EDC’s operating fund as a separate department.

ECONOMIC DEVELOPMENT DEBT SERVICE

2013 Sales Tax Revenue Bonds

Original Issue Amount: $2,000,000 Original Date of Issue: September 19, 2013 Maturity Date: August 15, 2032

Use of Bond Proceeds “Proceeds from the sale of the Bonds will be used (i) for the acquisition, improvement and equipment of land, buildings and facilities to lease or sell to businesses in downtown Forney and beautification improvements in downtown Forney, (ii) for funding a debt service reserve fund, and (iii) to pay the costs of professional services including the costs of issuance of the Bonds.”

211 South Bois D’ Arc Renovation –Groovy’s Boutique Total Project Cost: $171,312 2013 Bond Allocation: $147,312 Completion Date: December 2014

215 South Bois D’ Arc Renovation Total Project Cost: $217,859 2013 Bond Allocation: $175,859 Completion Date: February 2015 106 East Main Street Renovation Total Project Cost: $231,032 2013 Bond Allocation: $231,033 Completion Date: December 2015

215 South Bois D’ Arc Finish Out Total Project Cost: $247,615 2013 Bond Allocation: $247,615 Completion Date: March 2016