The attached Memorandum of Understanding (MOU) between the City of Buda and the Buda Economic Development Corporation (Buda EDC) outlines the administrative and professional services the City will continue to provide to Buda EDC for Fiscal Year 2027. The agreement ensures continuity of support for payroll, financial management, IT services, contracted services, and the Development Project Manager position. The City will also provide access to employee benefits, liability and property insurance, and retirement programs as outlined in the MOU.

The total previously approved FY 2026 budget for these services, based on initial estimates, was $179,540. The adjustments reflected remove the HR services that will be migrated to our new outsourced company, and the new MOU total estimate is $180,300. Actual reimbursements will be based on costs incurred, and payments will be made according to the schedule in the agreement. This MOU replaces the current FY 2026 agreement and will take effect October 1, 2026, continuing through September 30, 2027.

Under this MOU, the City will provide the following services: •    Payroll and Benefits Administration: Payroll processing, benefits management, compliance reporting, and employee support. •    Financial and Accounting Services: Budget preparation and maintenance, monthly financial reporting, accounts payable, bank reconciliations, and external audit support. •    Information Technology Services: General IT support, system administration, cybersecurity compliance, and access to City infrastructure (with reimbursements based on actual costs). •    Contracted Services: Includes investment advisory, external audit, and liability insurance. •    Development Project Manager: Shared cost of a City staff position that provides direct assistance to local businesses navigating the City’s development process. •    The agreement formalizes the reimbursement arrangement required by law, under which BEDC pays the City for the actual costs of these services. It reinforces the long-standing partnership between the City of Buda and BEDC, strengthening operational efficiency while supporting BEDC’s mission to grow and expand the local economy.