The Bandera Economic Development Corporation (EDC) confronted financial and administrative challenges as board members questioned their relationship with Bandera Bank, debated spending priorities, struggled to find an auditor and ultimately selected new legal representation while weighing the future of EDC-owned properties.
President Kim McAleb and Treasurer Nancy De Foster expressed differing views on spending for professional training.
EDC President Kim McAleb and Secretary Andrea Jankoski review the Bandera Economic Development Corporation’s proposed budget during the board’s meeting. The budget is scheduled to go before the Bandera City Council for final approval. BULLETIN PHOTO/ Veronica Rector
McAleb advocated for attending a Texas Economic Development Council workshop in Houston, noting that the experience could help the board learn how other economic development organizations operate.
“I think that’s the whole point, right? Is to learn what other small cities are doing,” McAleb said.
De Foster questioned whether sending one person to the workshop would use too much of the organization's available training budget.
“I just think that training one person for the most of our budget is a little excessive,” De Foster said. “That leaves a thousand dollars for all the rest of us to get into training or education.”
The discussion came as the board reviewed its finances and sales tax revenue projections. Sales tax revenue was set at $350,000, as current-year receipts were tracking lower than budgeted.
Members also discussed a December Texas Municipal League economic development conference in Bastrop that could potentially accommodate the entire board at a lower cost.
The EDC also took action on $1 million sitting in its Bandera Bank checking account, where the money was earning almost no interest.
“We have lost so much money in interest on this checking account,” McAleb said. “I'm surprised they haven't turned to us and said, ‘Hey, what is all that money doing in there?’” The board approved moving $500,000 into a sixmonth Bandera Bank CD at 3.5% and another $500,000 into a separate TexStar investment account. A representative from TexStar is expected to make a presentation to the board at a future meeting.
McAleb also provided an update to the board regarding the search for an auditor, after members expressed concerns over prior audit findings for previous years.
“Right now, we can't find anybody that can do an audit,” McAleb said. “I've reached out to several people; they don't want to do audits. So, we're going to have to go to the big boys, I guess.”
The board also discussed $100,000 for long-term legacy projects, $500,000 set aside for a water treatment facility, existing flood infrastructure and drinking-water commitments, and additional money that could eventually be used for infrastructure projects.
A $35,000 promotional marketing allocation was retained as a placeholder for potential projects, including bringing the Vietnam Veterans Memorial Wall to Bandera or supporting opportunities connected to the Cross Texas Trail.
De Foster questioned the size of the marketing allocation.
“How do you measure the return on investment for marketing?” she asked.
McAleb acknowledged that measuring marketing's direct economic impact can be difficult but argued that the EDC needs flexibility to pursue events and projects capable of attracting visitors and generating sales-tax revenue.
The board also addressed its legal representation.
Attorney Kim Manglberger presented a revised proposal of $250 per hour with no retainer or engagement fee.
Following an executive session, however, EDC voted to hire Frank Garza as its new legal counsel.
The change comes as the organization works through its financial, administrative and property-related issues.
The board also decided to keep its Maple and 10th property off the market and pursue P4 zoning, a move board member Gay Guilott said would provide greater flexibility for future development.
At the property known as Settlers Park, the board voted to seek three bids for cleanup. The property is overgrown, but members agreed it could potentially be developed for recreational uses such as pickleball or disc golf, although no final use has been selected.
The EDC’s budget will be an agenda item for the city council on the Aug. 25 meeting for final approval.
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