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Home My WebLink About2015-08-10 EDC MinutesEULESS DEVELOPMENT CORPORATION BOARD OF DIRECTORS MINUTES August 10, 2015 The Board of Directors of the Euless Development Corporation met on Monday, August 10, 2015, in the Precouncil Conference Room at City Hall in the Municipal Complex, 201 North Ector Drive, Euless, Texas. The following persons were in attendance: Council Member Linda Martin, Chair Council Member Tim Stinneford Council Member Jeremy Tompkins Council Member Linda Eilenfeldt Citizen Member Sonja Adams Citizen Member Carmen Deithloff Citizen Member Wayne Marrs City Manager Loretta Getchell, President Deputy City Manager Bob Freeman, First Vice President Director of Economic Development Mike Collins, Second Vice President Finance Director Janina Jewell, Treasurer City Secretary Kim Sutter, Board Secretary Assistant City Manager Chris Barker Director of Planning and Economic Development Mike Collins Director of Parks and Community Services Ray McDonald Library Administrator Sherry Knight ITEM NO. 1. CALL TO ORDER Chair Linda Martin called the meeting to order at 5:31 p.m. ITEM NO. 2 APPROVED MEETING MINUTES Wayne Marrs motioned to approve the minutes of the March 16, 2015, and May 7, 2015, meetings as presented. Seconded by Tim Stinneford the motioned carried by a unanimous vote. ITEM NO. 3 REVIEWED FINANCIAL REPORT FOR THE QUARTER ENDING JUNE 30, 2015 Treasurer Janina Jewell reviewed the Financial Report for the quarter ending June 30, 2015, including revenues and expenditures as follows: Beginning Fund Balance for FY 2014/15 Revenues Sales Tax Collections Interest Income Total Revenues $2,311,495 3,316,019 (75 percent of budget) 1,284 $3,317,304 EDC Meeting Minutes Expenditures Parks Library Economic Development Other Capital Expenditures Total Expenditures Ending Fund Balance Page 2 of 5 August 10, 2015 1,022,892 724,298 158,896 840,039 301,396 $3,047,522 $2,581,277 (55 percent of appropriations) The remaining balance in the capital projects fund for existing projects is $571,690. The designated balance consists of monies for miscellaneous park improvements, irrigation projects, incentives, contingencies, and Phase IV improvements to the Texas Star Sports Complex. Undesignated capital projects funds in the amount of $418,186 remain available for allocation to future projects. Director Wayne Marrs inquired about the status of the capital expenditures. Staff reviewed the circumstances related to the status of the capital expenditure projects, including the trail project, the South Euless Park upgrades, and the hardware/software replacement expenditure. Additionally, she reviewed the activity related to the debt service and debt reserve funds and provided the current fund balances: Debt Service Fund Balance *$674,025 Debt Reserve Fund Balance **$916,928 *to be applied toward P&I payment due September 15 of $898,000 **Amount required by bond covenant is $906, 803 ITEM NO. 4. HELD PUBLIC HEARING FOR FISCAL YEAR 2015-2016 BUDGET WHICH PROVIDES CONTINUED FUNDING FOR PARKS AND PARK FACILITIES, LIBRARY IMPROVEMENTS AND ECONOMIC DEVELOPMENT PROJECTS AS SET FORTH IN THE OFFICIAL BALLOT DATED JANUARY 16, 1993. Chair Linda Martin opened the public hearing at 5:41 p.m. to receive comments related to the proposed Fiscal Year 2015-2016 budget. Director Wayne Marrs stated that it would be helpful if staff could provide information regarding the difference, in dollars, in revenue and expenditures projections versus what is being proposed for the upcoming budget year. Treasurer Janina Jewell referred to the Fiscal Year 2016 budget document distributed to Board members prior to the meeting, and reviewed the Fiscal Year 2015 budget currently in effect. She stated that the projected revenues for the FY 2015 original budget included projected sales tax collections and related interest earnings of $4,444,038 and expenditures totaling $5,495,565. Due to increased sales tax collections, the projected revenue for FY 2015 is $4,548,739. EDC Meeting Minutes Page 3 of 5 August 10, 2015 Treasurer Janina Jewell advised that the FY 2015 budget included total expenditures of $5,495,565, which provides funding for park personnel, maintenance and improvements, library personnel and materials, economic development personnel, incentives, and public art, and operating expenditures, debt service and funding for capital expenditures. The projected expenditures for FY 2015 is $4,890,632. Treasurer Janina Jewell reviewed the FY 2016 proposed operating budget and provided an explanation regarding the increases and decreases between the FY 2015 projected and the FY 2016 proposed expenditures. She advised that the expenditures for FY 2016 is $5,650,489, and the projected revenues are $4,652,104. She stated that the sales tax revenues for the FY 2016 budget are based on FY 2015 projections with an increase of 2.5 percent based on the addition of new developments and the impact of the State Highway 183 (SH183) expansion on existing businesses along the SH183 corridor. Director of Parks and Community Services Ray McDonald and Library Administrator presented the FY 2016 proposed capital requests. Treasurer Jewell outlined the FY 2015 approved and the FY 2016 recommended capital expenditures associated with the capital projects With the approval of the budget, the fund would have an estimated ending fund balance of $971,217, which would exceed the recommended reserve level of $500,000. The projected ending fund balance for the FY 2015 Capital Projects Budget is $418,351. Funding for any projects not completed by the end of the fiscal year will be carried forward into the next budget year. The proposed FY 2016 Capital Projects Budget includes funding for park irrigation in the amount of $25,000, and incentives the amount of $25,000 for total expenditures of $50,000. The projected ending fund balance for the FY 2016 Capital Projects Budget is $418,951. Following discussion among the Board, Chair Martin asked to hear from any proponents or opponents of the proposed budget. Darl Easton, 1005 Fayette Drive, Euless, raised questions regarding the incentives paid to Redi-Mix/U.S. Concrete, and asked if any other companies are receiving rebates payable from the EDC revenues. Additionally, Mr. Easton asked for clarification regarding the balance and expenditures related to the funds designated for the "Art" line item and clarification regarding the part-time positions funded through the EDC budget. He recommended the City consider adding additional information to the budget to help citizens better understand the budget. City Manager Getchell responded that Redi-Mix is the only company who receives incentives payable from the EDC revenues as outlined in a 380 agreement. She added that Redi-Mix/U.S. Concrete provides a substantial revenue stream to the City of Euless FY 2015 Budget FY 2015 Projected FY 2016 Proposed FY 2015 Approved Capital Expenditures $1,058,381 $538,657 $604,933 FY 2016 Recommended Capital Expenditures $948,165 Total Capital Expenditures $1,553,098 With the approval of the budget, the fund would have an estimated ending fund balance of $971,217, which would exceed the recommended reserve level of $500,000. The projected ending fund balance for the FY 2015 Capital Projects Budget is $418,351. Funding for any projects not completed by the end of the fiscal year will be carried forward into the next budget year. The proposed FY 2016 Capital Projects Budget includes funding for park irrigation in the amount of $25,000, and incentives the amount of $25,000 for total expenditures of $50,000. The projected ending fund balance for the FY 2016 Capital Projects Budget is $418,951. Following discussion among the Board, Chair Martin asked to hear from any proponents or opponents of the proposed budget. Darl Easton, 1005 Fayette Drive, Euless, raised questions regarding the incentives paid to Redi-Mix/U.S. Concrete, and asked if any other companies are receiving rebates payable from the EDC revenues. Additionally, Mr. Easton asked for clarification regarding the balance and expenditures related to the funds designated for the "Art" line item and clarification regarding the part-time positions funded through the EDC budget. He recommended the City consider adding additional information to the budget to help citizens better understand the budget. City Manager Getchell responded that Redi-Mix is the only company who receives incentives payable from the EDC revenues as outlined in a 380 agreement. She added that Redi-Mix/U.S. Concrete provides a substantial revenue stream to the City of Euless EDC Meeting Minutes Page 4 of 5 August 10, 2015 and allows the city to maintain the tax rate. Additionally, she responded to Mr. Easton's questions and comments related to the "Art" line item, part-time positions, and the request to provide additional details/explanations regarding the budget. There being no others wishing to speak, Chair Martin closed the public hearing at 6:42 p.m. ITEM NO. 5. APPROVED THE FISCAL YEAR 2015-2016 OPERATING BUDGET WHICH PROVIDES FUNDING FOR ONGOING PARK AND PARK FACILITY PROJECTS IN THE AMOUNT OF $3,012,676, LIBRARY IMPROVEMENT PROJECTS IN THE AMOUNT OF $1,176,278, AND ECONOMIC DEVELOPMENT PROJECTS IN THE AMOUNT OF $1,285,659 AND PROVIDES FOR DEBT SERVICE RELATED TO SUCH PROJECTS IN THE AMOUNT OF $175,976. City Manager Getchell advised that an amendment is being requested to appropriate $730,000 from the reserve fund for the Texas Star Sports Complex Phase V project. Director Tim Stinneford motioned to approve the Fiscal Year 2015-2016 EDC Operating and Capital Budget which provides funding for ongoing park and park facility projects in the amount of $3,742,676, library improvement projects in the amount of $1,176,278, and economic development projects in the amount of $1,285,659 and provide for debt service related to such projects in the amount of $175,976. Seconded by Director Wayne Marrs, the motioned carried by a unanimous vote. ITEM NO. 6. HEARD REPORTS ON CURRENT AND UPCOMING PROJECTS. Director of Parks and Community Services Ray McDonald reported on the following items: - Purchase of new bus - Euless Family Life Center aquatics, recreation, fitness center, and senior center attendance statics Library Administrator Sherry Knight reported on the following items: - Summer reading challenge - Masterworks performances - Fall events • September 24, Author Adventures • Star Wars Read Day, October 10, 2015 • NalloWriMo, November 2015 - Community outreach • Operation Back to School, Pop-up library, and Historical Preservation Committee • Tile project dedication, September 20, 2015, 5 p.m. Director Linda Eilenfeldt commended the library and parks staff for their collaboration in hosting events. EDC Meeting Minutes Page 5 of 5 August 10, 2015 Planning and Economic Development Director Mike Collins presented an update related to the Glade Park development, Harwood Crossing, and commercial development along State Highway 10 and FM 157. Staff responded to questions related the the proposed senior housing facility. ITEM NO. 7 ADJOURN There being no further business before the Board, the meeting was adjourned at 7:06 p.m. APPROVED: inda Martin, C air ATTEST: I L- Kir)a'Sutter, Secretary