Subject/Recommendation: |
(First Reading) Approve an Ordinance amending the City's Approved Budget for Fiscal Year 2016-17 (Budget Amendment No. 1) by increasing total appropriations for expenditures in the City's General Fund by $480,000 and decreasing fund balance in the General Fund by the same amount in order to provide interest-free cash financing to RSI, Inc., for fulfillment of their obligations under the Economic Incentives Agreement as approved by the City of Kyle. ~ Perwez A. Moheet, CPA, Director of Finance |
Other Information: |
On September 20, 2016, the City Council approved an Economic Incentives Agreement (agenda item #3) with RSI, Inc., to include:
- A $480,000.00 payment by City to RSI, Inc., within 10 days of after the execution of the agreement.
- The $480,000.00 payment by the City to RSI, Inc., is comprised of: (1) $246,000.00 for a forgivable grant, and (2) $234,000 for a 10-year interest-free loan to be repaid to the City in equal annual installment payments.
This budget amendment will increase total appropriations for expenditures in the City's General Fund by $480,000.00 and decrease the fund balance in the General Fund by the same amount in order to provide interest-free cash financing to RSI, Inc., for fulfillment of their obligations under the Economic Incentives Agreement (Section 8.1) as approved by the City of Kyle.
The following documents are attached to provide complete information supporting this budget amendment for Fiscal Year 2016-17:
- Economic Incentives Agreement with RSI, Inc.
- City Council meeting agenda and approved meeting minutes for the City Council meeting held on September 20, 2016.
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