The Levelland Economic Development Corporation held a regular meeting Thursday, covering yearly financials, sales tax numbers and a rail park update.
Securing monthly and annual financial statements has become a pressing issue for various boards and groups within the City of Levelland due to a vacancy in the chief financial officer position.
To combat the issue, the city has began working with Local CFO which is based out of Lubbock to aid the city while the search for the vacant position continues.
With financial numbers finally in hand, LEDC Director Justin Balderas explained that the board is sitting in a positive financial position as the end of the fiscal year nears in October.
Sales tax for the group has continue to see large increases over the projected amounts estimated in the beginning of the year. Last month the group accrued more than $80,000, which is a 5% increase from this time last year and continues to trend in a positive direction.
In the 2022-2023 Fiscal Year, January was the only month with a negative growth in sales tax. Balderas all but confirmed that the sales tax numbers will exceed what was expected and budgeted for the year come December.
Regarding the rail park update, Balderas gave a brief update regarding the Red Flour Beetles situation. Balderas explained that all partners within the rail park had been cooperative throughout the investigation and abatement protocols.
For the month of August, Balderas has been the communication link between the city staff and rail park businesses.
In regard to rail car numbers for the month of July, Titan Transloading brought in 161 cars, Pipeline Plastics brought in 38, and Penny Newman has continued to be at a stand-still bringing in no rail cars for the month of August and the year as they continue to recover from a poor cotton season. The year-todate total for rail cars has reached 2069 cars.
The group also reviewed the resolution to repay a Texas Department of Agriculture Grant which was brought before the board.
The Texas Capital Infrastructure Grant from the TDA was pursued by the LEDC in order to construct a rail spur for the Envirotech Facility, with the understanding that they would bring a certain amount of jobs to the community, as were the conditions of the grant.
However after the company was bought out by Arxada, the required jobs have not been created.
The rail spur is constructed, and will remain at the rail park, but that utilized grant funds in the amount of $621,500 must be paid back to the TDA. This was already in the works, but seeing as there is a lack of a CFO at this juncture for the city, the board thought it wise to include it as a way for a new CFO to follow along and avoid any financial mishaps.