Loading...
HomeMy WebLinkAbout2010-05-10 EDC Minutes EULESS DEVELOPMENT CORPORATION BOARD OF DIRECTORS MINUTES MAY 10, 2010 The Board of Directors of the Euless Development Corporation (EDC) met on Monday, May 10, 2010, in the Precouncil 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 Council Member Linda Martin, Vice Chairman Mayor Pro Tem Tim Stinneford Council Member Glenn Porterfield Citizen Member Sonja Adams 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 Director of Finance Vicki Rodriquez, Treasurer City Secretary Susan Crim, Secretary Director of Parks and Community Services Ray McDonald Library Administrator Kate Lyon CALL TO ORDER Chairman Mary Lib Saleh called the meeting to order at 5:33 p.m. APPROVAL OF MINUTES OF AUGUST 10, 2009 MEETING Upon motion by Tim Stinneford and second by Sonja Adams, the minutes of the August 10, 2009, meeting were approved by unanimous vote. FISCAL YEAR 2009 COMPREHENSIVE ANNUAL AUDIT Director of Finance Vicki Rodriquez presented the Financial Report for the Euless Development Corporation for the year ended September 30, 2009. She stated that, as in the past, Weaver and Tidwell performed the audit in accordance with generally accepted accounting principles, and it received an Unqualified Opinion, the highest level assurance that the corporation's financial condition, position, and operations are EULESS DEVELOPMENT CORPORATION MAY 10.2010 PAGE 2 fairly presented in the financial statements, which has been the case for the EDC for many years. The audit contains Management's Discussion and Analysis which is a concise overview of the financial activities and financial position of the Corporation. At the end of 2009 the EDC had total assets of $8,603,492 and total liabilities of $5,972,240, leaving net assets of$2,631,252. The Corporation ended the year with total fund balances of $4,504,763. Of this amount, $938,999 is reserved for debt service, $2,678,388 is reserved for capital projects, leaving $887,376 unreserved and available to meet the $500,000 recommended reserve level set by the Board and to fund future projects as approved by the board. Upon motion by Linda Martin and second by Carmen Deithloff, the Euless Development Corporation Independent Auditor's Report from Weaver and Tidwell, L.L.P., for the year ended September 30, 2009, was accepted by unanimous vote. REVIEW OF FINANCIAL REPORT FOR THE QUARTER ENDING MARCH 31, 2010 Director of Finance Vicki Rodriquez reviewed the Financial Report for the quarter ending March 31, 2010, and stated that sales tax collections through the end of March totaled $1,470,886 or 42% of budget. There continues to be significant declines in sales tax collections, particularly those commercial segments that are closely tied to the housing sector. It is expected that the fiscal year will end with approximately $490,000 less in sales tax revenue than originally budgeted. Interest earnings through the end of March totaled $321. Operating and capital expenditures are within budget at $1,486,523 or 41% of budget. The $250,000 contingency will help offset a portion of the revenue shortfall. Also, there are savings in sales tax rebates, which is directly related to the decline in sales tax revenues. In addition, there are some savings in capital funds allocated to art projects. The statue at the Texas Star Conference Centre is complete, and currently there are no other projects identified for these funds, leaving a balance in the art fund of approximately $200,000. The EDC is fortunate to have a $250,000 contingency built into their budget, but it will not be enough to cover the shortfall this year, therefore, we continue to hold vacant positions, and the departments are holding expenses in areas they can without impacting service. The shade structure located at the dog park has been completed. The money allocated for the refurbishment of the building located at 1100 Westpark Way is currently on hold. After this building was vacated by Redi-Mix Concrete, it was used as a temporary facility for our recreation staff during the remodel of the Midway Recreation Center. EULESS DEVELOPMENT CORPORATION MAY 10,2010 PAGE 3 In the capital projects fund, year-to-date expenses totaled $1,196,538, the majority of which are for the Redi-Mix Concrete facility construction, which is now complete. This leaves a remaining balance in the Capital Project Fund for existing projects of $518,284, consisting primarily of park structures, irrigation improvements, trail projects and the EDC incentive project for the Redi-Mix Facility. In addition, there is $1,017,528 in undesignated funds, which is available for future projects as approved by the Board. The Debt Service Fund has an ending fund balance of $384,847 and is available to pay the next principal and interest payment due on September 15. We are required to keep a bond reserve equal to the maximum annual debt service requirement, which is $938,998. We currently have $939,051 in our bond reserve. Any funds in excess of our required reserves will be transferred back to the EDC operating fund at the end of the year. REPORT ON CURRENT AND UPCOMING PROJECTS Finance Director Vicki Rodriquez stated that the overall economic climate continues to cause a great deal of concern. Not only is the city's sales tax revenue being impacted, but we are also seeing declines in many of our other revenue sources. Our sales tax revenue has had double digit declines the last couple of months and is down approximately 15.5% year-to-date when compared to last year. Last year at this time we were already down about 3% from 2008. Our Car Rental receipts are also down .-. when compared to the prior year. In addition, our local hotels are suffering due to the economic downturn. Even with the addition of 2 new hotels, this revenue source will end the year with only 55% of their budgeted revenues, a shortfall of approximately $175,000. Our preliminary figures from the Tarrant Appraisal District on appraised values indicate that we could see significant declines in both commercial and residential values. We do not see any bright spots in the upcoming budget year, but we continue to filter through all the data as we receive it, and look for cost savings without impacting service. City Manager Gary McKamie reported that the entire City staff is doing more with considerably less. He said he believes the citizens are not seeing any difference in the level of service they are receiving, because the employees are continuing to provide the very same services with less dollars. He stated that U.S. Concrete/Redi Mix Concrete recently filed for Chapter 11 Bankruptcy strictly for a reorganization of debt. They have assured him there will be no change in operation and they expect to emerge from the bankruptcy in July. Deputy City Manager Loretta Getchell reported that the Redi Mix Concrete building project came in under budget by about $260,000 and that amount will be returned to the EDC fund balance. The project was downsized from $6 million last year to approximately $5.2 million, but the final building cost is now going to be slightly under $5 million. EULESS DEVELOPMENT CORPORATION MAY 10,2010 PAGE 4 Mr. McKamie reported that the City Council is considering the award of a contract to the firm of Gideon Toal to review the possibilities of a Tax Increment Financing district to build the roads in the Glade Parks development on State Highway 121 at Glade Road. Library Administrator Kate Lyon discussed the activity statistics in the Library compared to the same time period a year ago. She announced the Friends of the Library semi- annual book sale to be held on May 14-16 and the Beatlegras music program to be presented at 7 p.m. on the evening of May 10. Director of Parks and Community Services Ray McDonald reported that the shade shelters at the dog park have been installed. The landscaping at the Redi Mix facility and the spring planting around the City have been completed. The water reclamation program was very well received at Arbor Daze and many business owners are inquiring how they can implement it for their landscaping. The Parks at Texas Star baseball season is underway and there are more kids playing baseball in Euless this year than ever before— over 1,200. There are more than 100 league teams in additional to tournament teams. The Midway Recreation Center is getting ready to open up again after the remodeling project. The Midway pool will open Memorial Day week-end and summer camp begins June 1. The Fitness Center will be ready for use in August and the Senior Center in December. Director of Economic Development Mike Collins reported that the Aldi grocery store is having a ribbon cutting May 11 and Texas Car Title is going in at the corner of Midway Drive and Main Street. Gary McKamie said the new Mexican restaurant, Tequila Rain, is open on Main Street and doing a good business. Sonja Adams suggested putting information in the water bills about new businesses in town. Mike Collins said he is investigating the possibility of a link from the City's web site to new businesses in town. It was announced that the EDC meeting to consider the Fiscal Year 2011 budget will be held on August 16, 2010. ADJOURN There being no further business before the Board, the meeting was adjourned at 6:40 p.m. APPROVED: ATTEST: Mary Lib/ aleh Susan Crim Chairman Secretary