MINUTES REGULAR. JOINT MEETING  HEATH, MUNICIPAL, BENEFITS CORPORATION (HMBC) and HEATH ECONOMICDEVELOPMENT CORPORATION (HEDC)  TUESDAY, JULY 18, 2023, 5:30 P.M.  ATTENDING:  JUSTIN SAUNDERS, PRESIDENT SCOTT DODSON, VICE PRESIDENT KELSON ELAM, MAYOR, EX OFFICIO  CYNTHIA ALLEN JIM CHESTER VICKI WALLACE  1. President. Justin Saunders called the Heath Economic Development Corporation (HEDC) and Heath Municipal Benefits Corporation (HMBC) meeting to order at 5:30 p.m.  2. Public Comments:  There were: no public comments. 3. Items for Individual Consideration  3.a Discussion and. Action Regarding the Minutes of the May 16, 2023, Regular  Meeting.  MOTION: MOTION MADE: SECONDED: APPROVED:  ACCEPT MINUTES FROM MAY 16, 2023, REGULAR MEETING.  CHESTER DODSON UNANIMOUS5-0  3.b Council, Staff and Board Member Reports:  Suzanne Brooke reported that the Sunset Swings project at Terry Park, funded by PATH and the annual 25% HEDC/HMBC: sales tax contribution for Park CIP projects was complete. She also reminded them that ai full section on the website was dedicated tol keeping citizens updated on the water  conservation and planning efforts.  Assistant City Manager Kevin Lasher reported that the Park Board had approved recommending that the City Council approve the revised schematic design and budget fori the pocket park at the' Town Center/Tom Thumb retail site. The revised design incorporated input provided by the HEDC/HMBC Board.  Mayor Elam updated the Board on litigation activities.  3.c Discussion and Action Regarding HMBC: Investment in City of Heath Infrastructure and Public Assistant City Aretha Adams presented a request for the HEDC/HMBC toj partner with the Cityi in the funding of a new Public Safety facility, the renovation ofTowne Center Park, and a new. Public Works facility. The priority need: for a new. DPS: facility, or even two newi facilities, wasi identified in a recently- completed fire station study.. A master plan for the park was completed and approved in 2022, and the need Noting that public safety and parks were considered economic development projects, Adams said she was comfortable making this request due to the high fund balances both the HEDC/HMBC possessed. The best  Safety. (A.Adams)  for a new Public Works facility has existed forr multiple years.  July 18, 2023-K Heath. Economic Development & Municipal Benefits Corporation - Minutes  Page 1of3    practice fund balance is 259ofoperating expenses, and the HMBCh has ai 1,538%1 fund balance of The City of Heath would issue thet total amount needed to complete the project, which is $29 million through a 20-year bond.' The City would repay the annual bond repayment for the Public Safety or Towne Center Park] projects (HMBC could choose), and for the Public Works Maintenance facility. Adams requested that the HMBC participate by contributing $3 million ofits available fund balance toward the construction ofTown Center Park oft the Public Safety Building as noted above, HMBC could choose which facility. Also, she asked HMBC to commiti to the annual bond repayment fori the Towne Center Park portion, which would be $473,000 for thel life oft the 20-year bond. She also suggested the HEDC/HMBC This] participation structure would allow the completion of all three projects without anyi impact to the citizens' taxi rate. Also, the HMBCi fund balance would be at 29%1 by the end oft the FY 2023-2024 budget and She was not seeking an action at this meeting, but a "nod" of approval to continue with this approach throughout the budget process, including the finalization for approval by thel board ofits FY 2023-2024 The Board discussion revolved around the: need for these projects, the optics of park expansion during a water crisis, how city needs are planned and funded, and the mission oft the HEDC/HMBC. Upon Adams responded that the FY: 2023-2024 budget received by the Board at its next meeting would  $4,012,191.  continue with the 25% commitment to the Park CIP projects.  jump to 163% by FY: 2025  Annual Budget.  conclusion, each Board member expressed support for Adam's request.  incorporate these expenditures.  3.d Discussion Regarding HEDC/HMBCI F& 2023-2024 Annual Budget.  Assistant Director of Finance Tara Plexico presented a draft budget forl FY: 2023-2024. There were: no significant changes, except for the: incorporation of] partnering with the City to fund the construction of the DPS and Public Works Maintenance facilities, and the' Towne Center Park renovation. There would still be $3,836,757 ending resources in the HEDCbudget with $300,000 identified for economic development The Board supported thel budget as presented, and Plexico will bring a final budget and resolutions for 3.d Discussion and. Action Regarding EDC/MBCH202203 Project Focus, including Marketing Campaign and Publication ofDevelopment Standards for The Reserve. Brooke provided an update on ongoing marketing activities for' The Reserve, noting that shei is working with five possible prospects inj preparing presentations for economic development assistance in the neari future. The prospects are a result of the targeted marketing efforts and fit the vision for' The Reserve. She reported that the advertisement and free editorial the Board approved in the national publication, Shopping Center. Business, was completed and published. The publication represents a good value in terms ofa an ad' buy with at targeted readership oft the development and commercial brokerage industry. The effort was good: for visibility, with an understanding that the HEDC/HMBCs criteria is highly selective and not the  grants and projects.  adoption at the next: meeting.  national norm: for developers. CONVENE EXECUTIVESESSION  4.  At7:30p.m., President Saunders recessed the meeting to. Executive Session (closed meeting) stating that in accordance with' Texas Government Code Chapter 551, Subchapter D, thel Boards oft the HMBCand the  July 18, 2023- - Heath Economic Development & Municipal. Benefits Corporation- - Minutes  Page 2of3    HEDC recessed into Executive Session (closed meeting) to discuss the following: S 551.087: To discuss ord deliberatei regarding commercial orf financial information that the HMBCa and the HEDChavei received from a business prospect that the HMBC and HEDC seek tol have locate, stay, or expand in the City of Heath and with which the HMBCand HEDC: are conducting conomiedevelopment negotiations; and/or todeliberate the offer of ai financial ord otherincentive tot hehuinuspupatrgming Project Reserve.  5. RE- CONVENE OPEN SESSION  At7 7:38 p.m., President Saunders closed Executive Session and reconvened the meeting into open session  stating that no action was taken in the Executive Session.  6.  ADJOURN  At7:38 p.m., President Saunders adjourned the meeting.  APPROVED; R JUSTIYSAUNDERS PRESIDENT  Be   SUZANNÉ BROOKE BOARD LIAISON  July 18, 2023-1 Heath Economic Development & Municipal Benefits Corporation- - Minutes  Page 3of3