Stafford EDC fund balance rises $3.2 million; board tables amended budget pending audit

The Stafford Economic Development Corporation reported a combined fund balance increase of $3,200,000 for the 12 months ending December 2024, the corporation—s finance staff said at the Feb. 25 meeting. The board also agreed to delay a proposed amended budget until the annual audit is complete.

The finance presentation, delivered by finance staff Alka, said combined fund balance rose from $17.1 million in December 2023 to $20.4 million in December 2024, an increase of $3.2 million. The SEDC—s cash and investment portfolio totaled about $19.4 million, with approximately $12 million (62%) in a government pool, $3 million (16%) in government agency securities, $2.2 million (11%) in brokered certificates of deposit, about $2.0 million newly invested in U.S. Treasury bills, and roughly $200,000 in the depository bank.

Alka said the portfolio—s total weighted-average yield was about 4.51% with a weighted-average maturity of about 188 days. Year-to-date interest received totaled about $57,159, and interest accrued but not yet received was about $69,473.

On the operating side, the packet reflected two carryover items: a $49,000 Stafford Center expansion study and the remaining balance of $304,078 for capital repairs at the Stafford Center. The finance staff said $552,750 had originally been approved for Stafford Center capital repairs; about $248,672 was spent in the prior year, leaving the $304,078 balance carried forward.

Alka told the board that council in December approved a loan from the EDC to the city to purchase police vehicles: a $482,338 loan at 3.85% interest. The interest income related to that loan (about $47,000) was accounted for in the operating fund adjustments.

The SEDC makes quarterly transfers from the operating fund to the debt service fund to cover an outstanding debt; the first transfer in the fiscal year was $422,473. Alka said the SEDC—s single outstanding debt has an outstanding principal of about $9,560,000 and accrued interest of about $559,313, with final payoff projected in September 2030.

Capital projects revenues include a planned reimbursement from the Lovett Agency for the Pike Road project of up to $1.6 million; Alka said the Lovett Agency had reimbursed about $1.2 million so far and that close to $20,000 remained to be reimbursed.

Board members asked for clearer public presentation of committed funds versus available fund balance. One director asked that the capital project fund be labeled to show committed project funds; Alka said the capital project fund already represents committed project balances and that any savings after project completion would be returned to the operating fund.

Alka also explained why the board was being asked to table a formal amended budget: the audit of the prior fiscal year is not yet complete. The amended budget reflects audited fund balances and carryovers; Alka said she preferred to present the audited figures and would return the amendment once the audit concludes. Board members indicated they would discuss any reallocations before formal adoption.

The board recorded no formal vote on the financial presentation itself; the amended budget item was tabled pending receipt of the audit.

Costs, dates and dollar figures above are those reported to the SEDC during the Feb. 25 meeting and were described by finance staff Alka.

The board moved on to other agenda items including an update on Chapter 380 agreements and a report on Stafford Center operations.