NEDERLAND — The Nederland Economic Development Corporation is looking to present a balanced budget to city council in the upcoming weeks.

The proposed budget with projected revenues and expenditures of $622,000, reflects an increase in sales tax revenue as well as an increase in salaries, advertising, travel and training and a decrease in the amount set aside for incentives.

Sales tax revenue in the city of Nederland has been on a steady climb this year and the city saw a near 25 percent increase from June 2011 to June 2012. The increase is likely due to auditing by the state comptrollers office, Nederland City Manager Chris Duque said in a story that ran in the June 7 edition of The Port Arthur News.

Duque, in working with the NEDC, suggested the board be conservative  when estimating sales tax revenues for the 2012-2013 fiscal year budget, Larry Ducharme, NEDC president, said during a recent meeting.

The NEDC is proposing revenues of $622,000, up from $609,500 from the previous budget. The increase reflects an additional $15,000 in sales tax revenue.

Expenditures, which include salaries, moved up from $128,000 which was adopted in the 2011-2012 budget to $150,000. In January, the board of directors welcomed a new executive director, Mark Rantala, whose base salary totals $95,000. He also received, according to contract information, a moving allowance reimbursement of out-of-pocket expenses capped at $5,000. On June 20, the board approved a motion to increase Rantala’s salary an additional $850 per month.

Rantala also serves as the real estate advisor for the Jack Brooks Regional Airport.

In May, Jefferson County Commissioners approved an interlocal agreement with the NEDC to provide real estate consulting services for the purpose of aiding in the economic development of the piece of property. The county and the NEDC share the cost of advertising the property.

Also in the proposed budget are additional monies for advertising, going from the previously budgeted $4,000 to $12,000. The NEDC is actively promoting the sale of the airport property and the Sterling Ridge/Beauxart garden Road property.

In June, the NEDC approved a proposed letter of intent for the sale of 19 acres of land on U.S. 69 and Beauxart Garden Road to Sonic Corporation LLC. The price for the acreage at $2.25 per square foot totals around $1.8 million.

Officials with the NEDC declined to comment on the name of the business which is looking to move to the plot of land saying that announcement should come from that business. They also would not confirm nor deny that Philpott Ford, which is a Sonic Automotive premier dealership, is the buyer.

The News contacted the general manager of Philpott Motors and was referred to John Russ of Sonic Auto at the corporate offices in Charlotte, N.C., but the calls were not returned.

The NEDC also advertises for Providing Rewards and Development Efforts, or PRIDE, providing matching dollar grants up to $10,000 for projects such as landscaping, painting, signage or a new building facade.

Travel and training expenditures are also being increased in the proposed budget, moving from $6,700 to $12,000. Rantala noted that the adjusted 2011-2012 fiscal year budget showed the NEDC actually spent that amount for travel/training.

Rantala said he expects to travel to see prospective tenants in their head quarters hence the reason to allot the $12,000 figure.

Funding for incentives is also down from the 2011-2012 budget, dropping from $350,000 to $312,000.

The decrease in incentive funding may be a temporary issue though.

“I have a goal of coming back to you next year and asking for more money for incentives,” Rantala said during the Aug. 1 meeting.

The NEDC budget will be submitted to the city of Nederland for final approval. Nederland’s charter requires for the complete budget — including that of the city — be presented to council by Aug. 31.

mmeaux@panews.com