Red Oak EDC has 6-figure surplus
By 05/15/2003 00:00:00
New police, fire station $180,000 over budget
The Ellis County Press
RED OAK - The Economic Development Corporation has $900,000 sitting in its bank account, according to Councilwoman Kay Wiggs.
Wiggs said she received a balance sheet in April showing the figures; additionally, Wiggs said the central fire/police station is $180,000 over budget.
'I want [to get this out] before I go,' Wiggs said at Monday night's city council meeting.
Wiggs, who has served for six years and could not run again because of term limits, will give up her seat to her husband, Steve, or his opponent Eric Smith in the May 31 runoff election.
Development corporations, the industrial and economic, operate separately from cities, with board of directors working to promote local business development.
The EDC is funded by the local sales and use tax, or 4A sales tax. The tax could be levied only after its approval by the voters.
The Red Oak Parks and Recreation Department, with a plate full of projects lined up this year, sought to receive funding from the city; residents, according to the city council, are willing to pay for the new sports complex, nature preserve, and a hike and bike trail.
Now, with the additional EDC revenue, the parks department could receive their share of the money, but Wiggs said it would not be easy.
'The people want money to pay for the parks,' she said. 'The [hurdle] is to convince the [EDC] board.'
However, Red Oak City Manager Ken Pfeifer said the year-to-date budget sheet as of April 30 is $289,699 - $926,451 is stored away in the EDC investment account.
Additionally, Pfeifer did say because of several change orders approved during a special council meeting April 21, the central police, fire station went $180,000 over budget.
That figure was not originally approved by the council for the project, but money was set aside for a contingency fund.
'We were acting as the general contractors on [that project],' Pfeifer said.