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Buda Economic Development Corporation Board Adopts Fifth Amendments to Buda Economic Development Corporation Bylaws

On April 15, 2019, the Buda Economic Development Corporation Board of Directors per the directive by resolution of the Buda City Council of March 26, that the Buda Economic Development Corporation Board has taken up and adopted the 5th Amended Bylaws of the Corporation.  Per City Council directive, the Board addressed the issue at its April 4th meeting (8 days), at which time it referred the City Council’s proposed bylaws to the Board’s attorney for review and to advise on whether the Council’s recommended changes conformed to state law and were consistent, by comparison, with the bylaws of other Type B Corporation Bylaws around the State.  

 

Following receipt of our attorney’s report, the Board adopted a set of  5th Amended Bylaws that is not identical to those submitted by the Buda City Council.  In addition, the Board passed a resolution to accompany the modified changes and the Board requests the Council’s approval of the amended bylaws approved by the Board.  While some changes were minor in nature, others were inserted in order to address what the Board considered as potential conflicts with current City policy, to eliminate changes that are unnecessary due to their already being state law,  and in order adopt modifications we believe are more in line with the historic purpose of the Buda EDC 4B Corporation as intended by the Voters when they created the entity in 2001.

 

The reasons for our revisions are as follows:

 

Council Member Participation on EDC Board—City Charter already allows Council members as non-voting, Ex-officio members of any Board or Commission, including Buda EDC, therefore, we amended the language to be in line with State law Chapter 501 stating the Council ‘may’ rather than ‘shall’ appoint two Council members.

 

Training Requirements—Modified language to concur with State law.

 

Fiscal Matters

6.02.  The Board adjusted the dates by which a proposed budget is to be presented to the City Manager and City Council.  The EDC Budget and the Council’s budget are not concurrent.  While your recommended changes would have been appropriate for the City of Buda Fiscal Year, they would not allow new members appointed to the board adequate time to engage in the budgeting process.  We adjusted the dates accordingly.

 

Reserves 6.03—We concur that sound fiscal policy should include a certain number of months held in  reserves.  So much so, we increased the amount of reserves from the 3 months recommended, to 6 months.   We applaud your desire that by doing so is a sign of sound fiscal policy.

 

However, we are troubled by the language attached that would allow Buda Economic Development Corporation reserve funds beyond the six months held in reserve to be eligible for transfer to fund City of Buda Capital Projects.  This is in direct contrast with the intention of the creation of the Type B Corporation and certainly not the intent of the voters when the Corporation was enacted.  Furthermore, our attorney obtained copies of other Bylaws of Economic Development Corporations and could find no other EDC in the State whose Bylaws require such transfers. 

 

We feel that some of the amendments provided by the City Council contain too much of a change in scope and purpose of a Type B Corporation, and the Board did not, therefore,  accept those amendments.  In the future, should the City Council want the ability to utilize EDC funds for something other than the promotion of new or expanded business development or the creation or maintenance of primary jobs, the Board recommends a public hearing dedicated to receiving citizen input on this change.

 

Therefore, as per State law, we are submitting these Bylaws for approval by the Buda City Council at the next available opportunity.

 

View the Resolution, 5th Amended Bylaws, and letter to the Buda City Council regarding the Buda Economic Development Corporation Board of Director’s actions here.