Economic Development News
Chamber outlines use of resources for economic development
Published: Tuesday, April 15, 2014 11:00 am
By: Randy Allen
The Jefferson City Area Chamber of Commerce Economic Development staff recently presented the 2013 Economic Development Annual Report to the City of Jefferson and the County of Cole. This report is the seventh Annual Report prepared and presented outlining the results of the work the Chamber does on behalf of the residents of Cole County and its members.
The report is divided into the following Activities
· ECONOMIC POLICY AND PLANNING
· BUSINESS ATTRACTION
· REGIONAL ECONOMIC DEVELOPMENT PARTNERSHIP
· WORKFORCE DEVELOPMENT
· BUSINESS RETENTION & EXPANSION PROJECTS
· BUSINESS RETENTION & EXPANSION
· SMALL BUSINESS PROGRAMS
· COMMUNITY DEVELOPMENT PROJECTS
· COMMUNITY DEVELOPMENT SUPPORT
· TRANSPORTATION INITIATIVES
· INDUSTRIAL SITE PROJECTS
· INDUSTRIAL SITE MANAGEMENT
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 2013 Chamber expenditures in its operating budget was $928,763. Of that amount $526,786, or 57% of the budget, was spent working on economic development activities listed above. See Figure 1.
Because of the way the Chamber manages its personnel resources we are able to track and report the use of staff time on specific activities related both to economic development and traditional chamber work. Personnel costs associated with economic development activities totaled $401,977.
Figure 2 shows the 2013 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, nearly $400,000 from Chamber membership Investments and finally $130,000 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 2013 has been $ 2,185,000. During that same period (2007-2013), direct support from the Chamber through Chamber Subsidiaries was $ 1,420,000. With additional support from membership investment of $ 750,000,total Chamber spending on economic development was $ 2,200,000.
During that period of time the City and County leveraged a return of $2.00 for its $1.00 investment in the Operating Budget for ED. During that same five-year period, 21st Century spent an additional $ 4,250,000 developing certified sites and infrastructure at the Partnership Business Park.
The Jefferson City Area Chamber of Commerce continues to be proud of its Economic Development Program 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.