Promotional Expenditures Policy (WEDC) WYLIE ECONOMIC DEVELOPMENT CORPORATION
PROMOTIONAL EXPENDITURES POLICY
DRAFT MAY 1, 2006
INTRODUCTION
The Development Corporation Act of 1979, in Section 4A(b)(1), provides that a
4A development corporation may spend up to ten percent (10%) of its annual
revenues for "promotional purposes". This policy shall govern the use of funds of
the Wylie Economic Development Corporation ("WEDC") on expenditures for
promotional purposes.
ANNUAL BUDGET
The annual budget for the WEDC may authorize up to ten percent (10%) of
annual revenues to be spent on promotional expenditures. To the extent any
particular promotional expenditure is anticipated, it shall be specifically identified
in the budget (hereinafter "Line Item Expense"). Any portion of the funds
budgeted for promotional expenditures, but not allocated to a particular Line Item
Expense shall be identified in the budget as "General Promotional Expenditure
Funds" (hereinafter "General Funds"). Promotional expenditures shall only be
made in accordance with this Policy.
REQUIREMENTS FOR PROMOTIONAL EXPENDITURES
Any item included in the annual budget as a Line Item Expense and any
expenditure of General Funds shall:
1. advertise or publicize the City of Wylie for the purpose of developing new
and expanded business enterprises; and
2. serve a public purpose.
EXPENDITURE OF GENERAL FUNDS $2,000 OR LESS
To the extent General Funds are available within the WEDC budget, the
Executive Director may approve promotional expenditures of General Funds in
amounts of $2,000 or less. Before approving an expenditure as a promotional
expense, the Executive Director shall determine that the expenditure meets the
requirements listed above. All General Fund expenditures shall be presented to
the WEDC Board of Directors for approval as part of the monthly WEDC
Treasurer's Report.
The Executive Director shall support the determination that an expenditure meets
the requirements listed above by documenting the purpose(s) for the
expenditure.
EXPENDITURE OF GENERAL FUNDS OVER $2,000
Any expenditure of General Funds in amounts over $2,000 for promotional
purposes must be approved by the Board of Directors. Before approving an
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expenditure as a promotional expense, the Board of Directors shall determine
that the expenditure meets the requirements listed above.
The Board of Directors shall support the determination that an expenditure meets
the requirements listed above by documenting the purpose(s) for the
expenditure.
VERIFICATION OF PROMOTIONAL EXPENDITURES
If a Line Item Expense or use of General Funds is for direct marketing services,
such as print or media advertising, then a receipt shall be obtained from the
Vendor. To the extent it is practical or efficient, the Executive Director and/or
Board of Directors shall obtain a written contract for other expenditures of Line
Item Expenses or General Funds. Otherwise, written documentation shall be
provided by a recipient of funds that sets forth how the funds will be used and the
public purpose served by the recipient's programs or services.
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