Friday, November 23, 2018

City's Agreement with MedHab Nears Expiration

The City of San Angelo's economic development agreement with MedHab LLC will expire January 1, 2019.  City Council approved the $3.6 million incentive package on January 3, 2012 and the approved the contract seven months later.  The city had high hopes for significant job creation which can be seen in estimated impact of 75 new jobs (with up to 227 total).

The City projected an annual economic impact of $9.9 million.

The 2014 Annual Report for the Development Corporation stated:

Under that agreement, MedHab LLC will locate its production operation in San Angelo, create between 75 and 227 full-time qualifying positions, and relocate its offices to the Incubator Annex at 2009 W. Beauregard Ave., which was accomplished in December 2012.
To date MedHab has not had the projected impact on San Angelo employment.  The company accepted three years of free rent but has not accessed any other incentive provided in the contract.

Several months ago both the Development Corporation and City Council took up MedHab in executive session.  City officials shared nothing in regard to those discussions.  What happens on January 1, 2019?  Does MedHab, with its promising fall detection device for seniors, walk away from the City of San Angelo? 

Saturday, November 17, 2018

Mayor Gunter Snubbed by Finance Staff

On October 20, 2018 Mayor Brenda Gunter asked city staff to present information on how the city performed in its just closed fiscal year.  Finance Director Tina Dierschke expressed reluctance to present unaudited numbers in her reply.  Four days later Dierschke did just that for the city's Development Corporation.

"Good morning, Board.  I'm going to present your year end unaudited financial statements to you this morning."--Tina Dierschke, Finance Director

It's not clear why city staff ignored the Mayor's request for November 6th and 20th City Council meetings, but they have. 

Update 12-8-18:   Staff will present preliminary financial results for fiscal year ended 9-30-18 at the upcoming City Council meeting on 12-11-18.

Saturday, November 03, 2018

Mayor Asks, City Staff Ignores

Mayor Brenda Gunter made a clear request of San Angelo city staff during the October 16, 2018 Council meeting.  It was not recorded in the minutes or acted upon for the November 6, 2018 City Council meeting.

Mayor Gunter asked staff to present the financial results from the just closed fiscal year.  This item is not on the November 6th agenda as requested.  The Mayor made a clear request the minutes fail to document in that section or under future agenda items.

The Water Enterprise Fund Balance rose to $10.3 million as of 9-30-18.  That's 158 days of budgeted water revenue.  The city said its target is 75 days.  Other water fund balances total $20.5 million.  That does not include the Lake Nasworthy fund of $14 million.  With massive runoff the last two months the City's water supply is the healthiest I've ever seen. 

The Solid Waste Fund Balance rose to $4.3 million.  Council will deal with the solid waste contract in Executive Session.  Republic Services requested to walk back its recycling commitments.

Council makes strategic budget decisions and should hear the results of their actions prior to the completion of the fiscal audit.  I applaud Mayor Gunter's request for timely feedback.  Time will show if staff intend to deliver. 

Update 11-16-18:  Once again city staff ignored the Mayor's request (as reflected in the November 20 City Council agenda.)