Economic Development News
Summarizing the Chamber's Economic Development ROI From the 2016 Annual Report Published: Friday, April 14, 2017 By: Randy Allen
The Jefferson City Area Chamber of Commerce Economic Development staff recently presented the 2016 Economic Development Annual Report to the City of Jefferson and the County of Cole at a joint work session at the City Hall chambers on February 27. This report is the 9th Annual Report prepared and presented to the City and County outlining the results of the work the Chamber does in compliance with our contracts.
The report is divided into the following:
- Business Attraction
- Regional Economic Development
- Workforce Development
- Business Retention and Expansion
- Small Business
- Community Development
- Industrial Site Management
RETURN ON INVESTMENT (ROI) UPDATE
Several articles in this April edition of Chamber TODAY focus on the specifics of some of those programs. The focus of this article is the specific use of chamber resources in both personnel time and cash resources to fulfill the economic development contract and discuss the Return on Investment (ROI) of the economic development services.
In 2016, the total Chamber expenditures in its operating budget was $952,704. Of that amount $578,054, or 61% of the budget, was spent on economic development activities and programs listed above.
The Chamber manages the time and activities of its staff to address the current needs of the Economic Development strategy and can therefore report that cost to the taxpayers. Personnel costs associated with economic development activities and programs totaled $369,716 in 2016.
Figure 1 shows the 2016 sources and uses of funds for the Chamber. On the income side, the Chamber has four major categories of revenue support for its operating budget. These include the Economic Development contract with the City for $185,000, the Economic Development contract with the County for $150,000, $360,745 from Chamber Membership Investments and finally $247,958 from Chamber events and miscellaneous income. The total budgeted commitment to the ED program was $344,000. On the spending side, total expenditures for economic development were $578,054 or $234,054 more than the base level funding of $344,000. This additional support was provided by the chamber membership through their investment and other support.
Since the enhanced Economic Development Program, Progress Jefferson City, began in 2007; the total investment in the on-going ED program from the City and County through 2016 has been $ 2,805,000. During that same period (2007-2016), direct support from the Chamber for the same ongoing program the Chamber was $1,729,000. Along with additional support from membership investment of $1,228,269, the total Chamber spending on economic development was $2,948,269. (See Figure 2)
During that same period of time (2007-2016) existing business expansions facilitated by the Chamber have led to a total of 1315 new jobs and over $42,000,000 of ongoing payroll wages with an average of more than $39,000 annually per job. In addition to this, business attraction projects have added 275 jobs and $8,620,000 of yearly payroll wages adding over $200,000 of yearly return to the City and County. The direct sales and property taxes anticipated to return to the City and County from these ongoing annual wages is more than $4.9m and $5.3m for the County Schools.
The total provided by the Chamber for the ongoing ED operations was $1.7m and for Capital Improvements and Infrastructure was $4.1m. It is easy to see that the net benefit to the Taxpayers is more than $14.6m over the 10 Year period.
The Jefferson City Area Chamber of Commerce continues to be proud of the Economic Development Program it provides on behalf of its 1800 members and the citizens of Jefferson City and Cole County. We look forward to the future as we work hard toward economic growth and prosperity.