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Home My WebLink About2010-08-16 EDC Minutes EULESS DEVELOPMENT CORPORATION BOARD OF DIRECTORS MINUTES AUGUST 16, 2010 The Board of Directors of the Euless Development Corporation met on Monday, August 16, 2010, in the Precouncil Conference Room of City Hall in the Municipal Complex, 201 North Ector Drive, Euless Texas. The following persons were in attendance: Mayor Mary Lib Saleh, Chairman Mayor Pro Tern Linda Martin, Vice Chairman Council Member Glenn Porterfield Council Member Tim Stinneford Citizen Member Carmen Deithloff Citizen Member Wayne Marrs City Manager Gary McKamie, President Deputy City Manager Loretta Getchell, First Vice President Director of Economic Development Mike Collins, Second Vice President Finance Director Vicki Rodriquez, Treasurer City Secretary Susan Crim, Secretary Deputy City Secretary Kim Sutter Director of Parks and Community Services Ray McDonald Citizen Member Sonja Adams was not present. CALL TO ORDER Chairman Mary Lib Saleh called the meeting to order at 5:30 p.m. APPROVAL OF MINUTES OF MAY 10, 2010 Upon motion by Tim Stinneford and second by Linda Martin, the minutes of the May 10, 2010, meeting were approved by unanimous vote. FINANCIAL REPORT FOR THE QUARTER ENDING JUNE 30, 2010 Treasurer Vicki Rodriquez reviewed the Financial Report for the quarter ending June 30, 2010, and stated that sales tax collections through the end of June totaled $2,256,714, which represents 65 percent of budget. She added that although we have seen increases in sales tax collections since May, we have not recovered from the double-digit declines earlier in the year. Additionally, due to a significant decline in interest rates this year, interest earnings through the end of June totaled $469, and the total portfolio is earning approximately 0.55 percent. Operating and capital EDC Meeting Minutes Page 2 of 4 August 16, 2010 expenditures are within budget at $2,162,872, which is approximately 60 percent of budget. The remaining balance in the capital projects fund for projects that have not been completed is $474,173. This designated balance consists primarily of monies for the park amenities, park structure improvements, irrigation project, trails at Bob Eden Park and EDC incentives. Undesignated capital project funds in the amount of $1,063,487 remain available for future allocation toward approved projects. As of June 2010, the debt service fund has an ending fund balance of $617,082. The funds are available to pay the next principal and interest payment due on September 15, 2010. The current bond reserve balance is $939,474, which meets the required $938,998 fund balance. HELD PUBLIC HEARING ON FISCAL YEAR 2010-2011 BUDGET Chairman Saleh opened the public hearing at 5:42 p.m. to receive comments related to the Fiscal Year 2010-2011 budget. Finance Director Vicki Rodriquez referred to the Fiscal Year 2011 budget document distributed to Board members prior to the meeting, and reviewed the Fiscal Year 2010 budget currently in effect. She stated that the FY2010 original budget included expected sales tax collections and related interest earnings of $3,497,764, and total proposed expenditures of $3,602,455, which provided funding for park maintenance and improvements, library personnel and materials, economic development personnel and operating expenditures, debt service on outstanding bonds, and funding for capital expenditures. The original budget projected an ending fund balance of $756,349. However, going into FY2010, sales tax collections have continued to decline, and projections indicate total sales tax collections of $3,049,082, which is a 12.5 percent decline from our original estimates. In addition, interest earnings are also projected to be about 8 percent less than budgeted. Based on these projections, an operating fund balance of $1,161,897 is anticipated to end FY2010, which is $405,548 greater than originally budgeted due in large part to the return of funds from the Redi-Mix project. The FY2011 budget includes expected sales tax collections and related interest earnings of $3,201,635. The sales tax revenues are based on current year estimated collections with 4 percent growth. Additionally, proposed expenditures total $3,561,363 and include funding for parks, library, economic development, debt service, and proposed capital. The contingency line item expenditure has been reduced from $250,000 to $50,000, as historically, these funds have not been spent. Discussion ensued as to whether to increase the recommended reserve level by $250,000 or apply the funds to capital projects. It was the consensus of the Board to reduce the contingency line item to $50,000 and apply $250,000 to the Capital Improvement Program. EDC Meeting Minutes Page 3 of 4 August 16, 2010 A list of capital expenditures for FY2010 and FY2011 have been included in the proposed budget and staff has proposed rolling over $3,270 for the monument sign program and $33,620 for renovations to the building on Westpark Way which was vacated by Redi-mix. Additionally, capital funding for FY2011 in the amount of $118,130 is also recommended, which includes $11,530 for a self check-out unit at the library, $23,750 for part-time security at the library, $52,850 to replace a retaining wall at Trailwood Park, and $30,000 to fund a part-time economic development consultant is also recommended. With the approval of the budget, this fund would have an estimated ending fund balance of$552,169, which would exceed the recommended reserve level of $500,000. The capital fund balance expected to remain at the end of FY2010 is $1,065,581. The FY2011 capital budget provides $25,000 for continued funding of park irrigation, and $25,000 for economic development incentives. No new capital projects are proposed for FY2011. There being no proponents or opponents, Chairman Saleh closed the public hearing at 5:57 p.m. APPROVED FISCAL YEAR 2010-2011 BUDGET Upon motion by Tim Stinneford and second by Carmen Deithloff, the Fiscal Year 2010 — 2011 Euless Development Corporation budget, which provides for ongoing park and park facility projects in the amount of$1,004,143, library improvement projects in the amount of $943,184, economic development projects in the amount of $668,724 and provides for debt service related to such projects in the amount of $945,312 was approved by unanimous vote. HEAR REPORTS ON CURRENT AND UPCOMING PROJECTS City Manager Gary McKamie reported on the following items: - Redi-Mix building - Creation of a Tax Increment Reinvestment Zone - A potential mixed-used development at SH 183 and SH 360. Economic Development Director Mike Collins reported on the following items: - Fuzzy's Taco status - Republic Tire signage - Restaurant development at SH 183 and FM 157. Parks and Community Services Director Ray McDonald reported on the following: - Fitness Center update - Senior Center construction EDC Meeting Minutes Page 4 of 4 August 16, 2010 ADJOURN There being no further business before the Board, the meeting was adjourned at 6:30 p.m. APPROVED: ATTEST: ary Lib Sale Susan Crim Chairman Secretary APPROVED AUGUST 16, 2010 EULESS DEVELOPMENT CORPORATION PROPOSED OPERATING BUDGET FISCAL YEAR 2010-11 FY2010 FY2010 FY2011 Budget Projected Proposed Beginning Fund Balance $ 861,040 861,040 911,897 Revenues: Sales Tax Collections $ 3,490,264 3,049,082 3,200,135 Transfer from EDC Debt Reserve $ 2,500 500 500 Transfer from EDC CIP $ - 281,000 - Interest Income $ 5,000 1,000 1,000 Total Revenues $ 3,497,764 3,331,582 3,201,635 Expenditures: PARKS Personnel $ (387,087) (390,513) (548,249) Supplies&Miscellaneous $ (88,967) (109,347) (82,000) Advertising $ (5,000) (1,000) (1,000) Contingencies $ (15,000) (15,000) (15,000) Utilities $ (175,000) (175,000) (175,000) Irrigation(Transfer to CIP) $ (25,000) (25,000) (25,000) Equipment Replacement $ (2,560) (2,560) (2,560) Mowing Contract/Flower Bed Contract $ (99,214) (99,214) (99,214) Parks Subtotal $ (797,828) (817,634) (948,023) LIBRARY Personnel $ (690,277) (658,970) (668,004) Special Events/Promotions/Supplies $ (2,000) (2,000) (8,500) Library Materials $ (246,704) (246,704) (231,400) Library Subtotal $ (938,981) (907,674) (907,904) ECONOMIC DEVELOPMENT Personnel $ (177,068) (183,338) (156,978) Supplies and Miscellaneous $ (36,310) (36,310) (35,800) Advertising and Promotions $ (7,500) (7,500) (7,500) Professional Services $ (1,000) (1,000) (1,000) Incentives(Transfer to CIP) $ (25,000) (25,000) (25,000) Contingencies $ (5,000) (2,000) (2,000) Art(2%of Sales Tax Collections) $ (69,805) - - Economic Development Subtotal $ (321,683) (255,148) (228,278) OTHER Bank Charges/Debt Serv/Audit $ (936,438) (910,101) (945,312) Operating Contingencies $ (250,000) - (50,000) Contingencies(Transfer to CIP) $ - (250,000) - Sales Tax Rebate/Job Creation/Training Incentive $ (158,205) (115,078) (119,681) Other Subtotal $ (1,344,643) (1,275,179) (1,114,993) Excess Revenue over Expenditures $ 94,629 75,947 2,437 CAPITAL Capital Expenditures for FY10(see attached) $ (199,320) (25,090) (244,035) Capital Expenditures for FY11 (see attached) $ - - (118,130) Capital Expenditures Subtotal $ (199,320) (25,090) (362,165) Total Expenditures $ (3,602,455) (3,280,725) (3,561,363) Projected Ending Fund Balance $ 756,349 911,897 552,169 [Recommended Reserve Level $ 500,000 500,000 500,000 [Excess Reserves 52,169 1 EULESS DEVELOPMENT CORPORATION PROPOSED OPERATING BUDGET CAPITAL EXPENDITURE DETAIL FISCAL YEAR 2010-11 FY 2010 FY 2010 FY 2011 PROJECT DESCRIPTION BUDGET PROJECTED PROPOSED FY2010 Approved Capital Expenditures Monument Signs $ 3,270 - 3,270 Shade Structures $ 18,000 18,000 - Art $ 143,050 5,710 207,145 Refurbish Building at 1100 Westpark Way $ 35,000 1,380 33,620 Total FY2010 Capital Expenditures $ 199,320 25,090 244,035 FY2011 Recommended Capital Expenditures Self-Check Unit for Library $ - - 11,530 Part time Security Guard $ - - 23,750 Replace Retaining Wall-Trailwood $ - - 52,850 ---- Part time Consultant $ - - 30,000 Total FY2011 Capital Expenditures $ - - 118,130 2 EULESS DEVELOPMENT CORPORATION PROPOSED CAPITAL PROJECTS BUDGET FISCAL YEAR 2010-11 FY2010 FY2010 FY2011 Budget Projected Proposed Beginning Fund Balance $ 2,678,388 2,678,388 1,065,581 Revenues: Transfer from EDC Operating Fund $ 50,000 300,000 50,000 Interest Income $ 5,000 14,000 2,500 Total Revenue $ 55,000 314,000 52,500 Expenditures:* PARKS Contingencies $ (19,684) - - Irrigation $ (74,230) (74,230) (25,000) Hike/Bike Trails $ (22,827) (4,500) - Misc Park Structure Improvements $ (89,781) (89,781) - Parks Subtotal $ (206,522) (168,511) (25,000) ECONOMIC DEVELOPMENT Incentives $ (2,015,479) (1,508,296) (25,000) Contingencies $ - (250,000) - Economic Development Subtotal $ (2,015,479) $ (1,758,296) $ (25,000) r- Excess(Deficiency)of Revenues over Expenditures $ (2,167,001) (1,612,807) 2,500 Projected Ending Fund Balance $ 511,387 1,065,581 1,068,081 * Unspent Capital Expenditures carryover until the project is complete. 3