Economic Development News
Chamber's contract with City and County is cost effective
Published: Tuesday, April 21, 2015 9:30 am
By: Randy Allen, President/CEO
The Jefferson City Area Chamber of Commerce Economic Development staff recently presented the 2014 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 in compliance with our contracts.
The report is divided into the following Activities:
Regional Economic Development
Business Retention and Expansion
Industrial Site Management
RETURN ON INVESTMENT (ROI) UPDATE
Several articles in the 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 2014 Chamber expenditures in its operating budget was $926,658. Of that amount $555,405, or 60% of the budget, was spent working on economic development activities and programs listed above. See Figure 1.
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 $422,137 in 2014.
Figure 2 shows the 2014 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, $60,000 for Economic Development from the Chamber subsidiary corporation, 21st Century Land Management, $364,000 from Chamber membership Investments and finally $168,000 from Chamber events and miscellaneous income.
As can be seen, the total budgeted commitment to the ED program was $395,000. On the spending side, total expenditures for economic development were $526,786 or $131,786 more than the base level funding of $395,000. 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 2014 has been $ 2,185,000. During that same period (2007-2014), direct support from the Chamber through Chamber Subsidiaries was $1,480,000. With additional support from membership investment of $ 910,405, total Chamber spending on economic development was $ 2,390,405.
During that same period of time, 2007-2014 the Attraction and Expansion of Businesses facilitated by the Chamber have led to a total of 598 new jobs and over $25,000,000 of ongoing payroll wages leading to $2,900,000 of Anticipated Economic Return to the City and County from the new wages created. See Figure 3.
In addition to this, when fully operational, Morris Converting, Special Olympics TLC and Continental Commercial Products will add another 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 its Economic Development Program it provides on behalf of its 2000 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.