City staff briefed the Paddock Board on the Economic Development Corporation (EDC) strategic-planning process and on questions about the permissible uses of 4A and 4B sales-tax revenues.

Renee, a city staff member who sits on the EDC strategic-planning committee, said the EDC is shifting some focus toward quality-of-life investments as well as traditional job-growth projects. “The big push in even some of the ... 4B sales tax conferences ... is more and more of your economic development corporations is being pushed into that quality of life,” Renee told the board, describing how consultants and peer cities recommend broader uses for economic-development funds.

Legal and program guidance: Staff said they will coordinate with the city’s sales-tax attorney, Jeff Brown, to obtain a clear definition of allowable 4A and 4B expenditures so the board can consider whether downtown preservation and civic improvements fit within statutory limits. The city will workshop legal guidance before next year’s budget planning.

Joint meetings and calendar: Staff proposed that the Paddock Board hold its first budget discussion in April and convene a joint meeting with the EDC in May (staff proposed May 8 at 5:30 p.m.). City staff indicated a goal of presenting a recommended budget for adoption in July (proposed adoption date July 11) to allow time for council review.

EDC structure: The board discussed historical context: when the Paddock Board (Paddock) was created it received only the 4A sales tax while Kaufman (a neighboring city) retained both 4A and 4B; staff said that difference explains some past tensions and that recent sales-tax growth has largely offset earlier revenue losses.

Next steps: Staff will obtain a legal opinion from the city’s sales-tax attorney and present recommended funding categories and budget allocations ahead of the April budget discussion and the May joint meeting with the EDC.