Economic Development News
Summarizing the Chamber's Economic Development ROI
Published: Thursday, April 14, 2016 11:00 am
By: Randy Allen
The Jefferson City Area Chamber of Commerce Economic Development staff recently presented the 2015 Economic Development Annual Report to the City of Jefferson and the County of Cole. This report is the 8th 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 Activities
- ACTIVITIES REPORT
- 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.
The total 2015 Chamber expenditures in its operating budget was $883,630. Of that amount $517,909, or 59% of the budget, was spent working 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 $383,039 in 2015.
Figure 1 (right) shows the 2015 income and spending for the Chamber. On the income side, the Chamber has five 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; $370,220 from Chamber membership Investments and finally $178,410 from Chamber events and miscellaneous income. As you can see, the total budgeted commitment to the ED program was $335,000. On the spending side, total expenditures for economic development were $517,909 or $182,909 more than the base level funding of $335,000. 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 program for the City and County through 2015 has been $2,185,000. During that same period (2007-2015), direct support from the Chamber through Chamber Subsidiaries was $1,720,000. With additional support from membership investment of $1,228,269, total Chamber spending on economic development was $2,948,269. (See Figure 2)
During that same period of time (2007-2015) existing business expansions facilitated by the Chamber have led to a total of 836 new jobs and over $32,800,000 of ongoing payroll wages with an average of more than $39,000 annually per job. The direct sales and property taxes anticipated to return to the City and County from these ongoing annual wages is more $750,000. In addition to this, business attraction projects in 2015, namely Morris Converting and Continental Commercial Products, 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 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.