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Home My WebLink About2008-08-11 EDC Minutes EULESS DEVELOPMENT CORPORATION BOARD OF DIRECTORS MINUTES AUGUST 11, 2008 The Board of Directors of the Euless Development Corporation met on Monday, August 11, 2008, 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 Mayor Pro Tem Linda Martin, Vice Chairman Council Member Glenn Porterfield Council Member Tim Stinneford 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 Bill Ridgway, Second Vice President Director of Finance Vicki Rodriquez, Treasurer City Secretary Susan Crim, Secretary Director of Parks and Leisure Services Ray McDonald Library Administrator Kate Lyon Manager of Parks Randy Smith CALL TO ORDER Chairman Mary Lib Saleh called the meeting to order at 5:10 p.m. APPROVAL OF MINUTES OF JUNE 23, 2008 MEETING Upon motion by Tim Stinneford and second by Wayne Marrs, the minutes of the June 23, 2008, meeting were approved by unanimous vote. REVIEW OF FINANCIAL REPORT FOR THE QUARTER ENDING JUNE 30, 2008 Vicki Rodriquez, Treasurer, reviewed the Financial Report for the quarter ending June 30, 2008, and stated that sales tax collections through June 30, 2008 totaled $2,676,201, which represents 68% of budget. Operating expenditures were within budget at $4,254,490. In the Capital Projects Fund, expenditures during the third quarter were EULESS DEVELOPMENT CORPORATION AUGUST 11,2008 PAGE 2 $357,282. The remaining balance in the Capital Projects Fund for projects not yet completed is $4,928,109, primarily for Park Amenities, Midway Park Trail, Park Structure Improvements, Irrigation Project and FY08 Incentive Projects. Undesignated Capital Project Funds in the amount of $140,599 remain available for future allocation to approved projects. The required reserves and debt service funds have been maintained as required by bond covenant and by the Board. PUBLIC HEARING ON FISCAL YEAR 2008-2009 BUDGET Chairman Saleh opened a public hearing for the Fiscal Year 2008-2009 Euless Development Corporation budget. Treasurer Vicki Rodriquez referred to the Fiscal Year 2009 budget distributed to the Board members prior to the meeting and compared it to the Fiscal Year 2008 Budget currently in effect. She stated that they expect to end FY08 with a fund balance of $927,640, and in FY09 expect to receive sales tax revenue and related interest totaling $3,929,500. Proposed operating and capital expenditures in FY09 will total $4,024,507. The park budget includes an increase of 3.2% for personnel and additional mowing costs, and it funds maintenance of our park systems, supplies, utilities, equipment and irrigation. The library budget includes an increase of approximately 3.5% for library personnel plus approximately $100,000 more for library materials. The economic development budget includes funding for personnel, supplies, advertising, artwork and incentive agreements that have been instrumental in bringing additional development to the City of Euless. The budget provides for debt payments on existing bonds and provides for an annual contingency of$250,000. If approved as submitted, this budget would have an estimated ending fund balance of $832,633 which exceeds the Board's recommended minimum reserve level of$500,000. There being no proponents or opponents, Chairman Saleh closed the public hearing. APPROVAL OF FISCAL YEAR 2008-2009 BUDGET Upon motion by Sonja Adams and second by Linda Martin, the Fiscal Year 2008-2009 Euless Development Corporation budget, which provides funding for ongoing park and park facility projects in the amount of $692,380, library improvement projects in the amount of $922,275, and economic development projects in the amount of $1,470,365 and provides for debt service related to such projects in the amount of $939,487 was approved by unanimous vote. EULESS DEVELOPMENT CORPORATION AUGUST 11,2008 PAGE 3 APPROVAL OF CHAPTER 380 CONSTRUCTION AGREEMENT WITH U. S. CONCRETE, INC., AND ITS SUBSIDIARY, REDI MIX, L. L. C. City Manager Gary McKamie reported that the construction agreement being considered is for a facility for a corporate regional headquarters and primary job training facility for U.S. Concrete, Inc., and its subsidiary, Redi Mix, L.L.C. He said it is being proposed as a Chapter 380 Construction Agreement in order to allow the project to flow more smoothly, and to allow the staff to administer the project much the same as they do other city projects. Upon motion by Tim Stinneford and second by Linda Martin, the Chapter 380 Construction Agreement by and between the City of Euless and the Euless Development Corporation for leasehold improvements pursuant to a Lease and Incentive Agreement with U.S. Concrete, Inc., and its subsidiary Redi Mix, L.L.C., was approved by unanimous vote. REPORT ON CURRENT AND UPCOMING PROJECTS Gary McKamie reported that the City's budget for Fiscal Year 2009 will provide funding for a major project at Midway Park. It will include an expansion of the Midway Recreation Center, a new Senior Citizen Center and an Aquatics Center. The EDC budget would be considered for the funding of staff positions in subsequent years. It is anticipated that the project will remove all of the ball fields from Midway Park and totally change the face of the entire area. Bill Ridgway reported that there is a great deal of economic development activity on the East side of SH121 in the Glade Road area including a new Baskin Robbins, Polio Campero, Freddy's Frozen Custard, and a national retailer on the South end. The West side of SH121 is moving more slowly. In the Euless Town Centre, O. C. Burgers has opened in the former Grandy's location, and Incredible Pizza is doing well. A German based grocery store is scheduled to open in Euless Town Centre in September, 2009. Overall the economic development activity has been quiet. Library Administrator Kate Lyon reported that they have hired a Library Assistant who is teaching English as a Second Language classes, which have been very popular. They plan to purchase additional materials and perhaps hire a second person. She stated that Library usage is up and they recently broke an all-time record. They had 52,653 check-outs for the month of July, which was up 19% from the same month one year ago. Reading club participation increased and 540 adults were members this summer. Renovation of the Library is complete and the new local genealogy room was featured in the Star-Telegram recently. The Euless Library Foundation tile project is progressing nicely and some of the tiles will be ready for viewing soon. Several music and author programs are scheduled in the near future. EULESS DEVELOPMENT CORPORATION AUGUST 11,2008 PAGE 4 Ray McDonald introduced Randy Smith, the new Manager of Parks, and announced that Johnnie Green recently retired after 25 years with the City. Ray reported that his department has neared completion of all projects budgeted through the EDC, and they are excited to look forward to the new major project at Midway Park. They will be applying for outdoor and indoor grants for that project. ADJOURN There being no further business before the Board, the meeting was adjourned at 6:10 p.m. APPROVED: A-14_4011P 40% /■4 Mary Lib 'leh Chairman ATTEST: i usan Crim Secretary • Approved August 11, 2008 EULESS DEVELOPMENT CORPORATION PROPOSED OPERATING BUDGET FISCAL YEAR 2008/09 FY2008 FY2008 FY2009 Budget Projected Proposed Beginning Fund Balance $ 2,391,775 2,391,775 927,640 Revenues: Sales Tax Collections $ 3,920,403 3,732,721 3,865,000 Transfer from EDC Debt Reserve $ 60,000 60,000 36,000 Interest Income $ 47,500 47,500 28,500 Operating Revenue $ 4,027,903 3,840,221 3,929,500 Expenditures: . Parks Personnel: $ (324,320) (324,320) (336,645) Supplies&Miscellaneous $ (74,120) (74,120) (74,120) Advertising $ (5,000) (5,000) (5,000) Contingencies $ (15,000) (15,000) (15,000) Utilities $ (122,500) (122,500) (122,500) Irrigation(Transfer to CIP) $ (25,000) (25,000) (25,000) Equipment Replacement $ - - (4,131) Mowing Contract/Flower Bed Contract $ (94,214) (94,214) (99,214) Parks Subtotal $ (660,154) (660,154) (681,610) Library Personnel $ (645,710) (645,710) (673,343) Special Events/Promotions $ (7,000) (7,000) (7,000) Library Materials $ (131,925) (131,925) (239,200) Library Subtotal $ (784,635) (784,635) (919,543) Economic Development Personnel: $ (65,093) (65,093) (67,794) Supplies and Miscellaneous $ (46,300) (46,300) (46,300) Advertising and Promotions $ (16,500) (16,500) (16,500) Professional Services $ (5,000) (5,000) (5,000) Incentives(Transfer to CIP) $ (25,000) (25,000) (25,000) Contingencies $ (10,000) (10,000) (10,000) Art(2%of Sales Tax Collections) $ (183,340) - (260,640) Economic Dev.Subtotal $ (351,233) (167,893) (431,234) Bank Charges/Debt Sery/Audit $ (939,966) (940,216) (939,487) Contingency $ (275,987) (250,000) (250,000) Sales Tax Rebate/Job Creation/Training Incentive $ (331,250) (422,464) (239,131) Operating Expenditures $ (1,547,203) (1,612,680) (1,428,618) • EXCESS REVENUE OVER EXPENDITURES $ 823,603 753,784 714,695 Capital Expenditures Capital Expenditures for FY08(see attached) $ (2,087,126) $ (2,078,994) (6,002) Capital Expenditures for FY09(see attached) $ - - (557,500) Subtotal-Capital Expenditures $ (2,087,126) (2,078,994) (563,502) t-. TOTAL EXPENDITURES $ (5,430,351) $ (5,304,356) $ (4,024,507) Available Fund Balance $ 989,327 927,640 832,633 Projected Ending Fund Balance,FY08-09 832,633 1 FY 2008 FY 2008 FY 2009 PROJECT DESCRIPTION BUDGET PROJECTED PROPOSED FY 2008 APPROVED CAPITAL EXPENDITURES Monument Signs $ 3,270 - 3,270 ESL Projects $ 3,443 711 2,732 Update Aerials $ 12,875 12,875 - Trail Enhancements $ 6,983 6,983 - Parks Master Plan Update $ 14,978 12,848 - Contract Flower Bed Maintenance $ 5,577 5,577 - Multi-bay Masonry Storage Bin $ 10,000 10,000 - Metal Shade Structures-PATS $ 30,000 30,000 - EDC Incentive Project $ 2,000,000 2,000,000 - TOTAL FY 2008 CAPITAL EXPENDITURES $ 2,087,126 2,078,994 6,002 FY 2009 RECOMMENDED CAPITAL EXPENDITURES Renovation of Sand Volleyball Court-JA Carr Park $ - - 7,500 EDC Incentive Project $ - - 550,000 TOTAL FY 2009 CAPITAL EXPENDITURES $ - - 557,500 2 EULESS DEVELOPMENT CORPORATION PROPOSED CAPITAL BUDGET FISCAL YEAR 2008/09 FY2008 FY2008 FY2009 Budget Projected Proposed Beginning Fund Balance $ 348,787 348,787 139,919 Revenues: Transfer from EDC Operating Fund $ 2,050,000 2,050,000 600,000 Transfer from Car Rental Fund $ 3,000,000 3,450,000 Interest Income $ 15,000 15,000 9,000 Operating Revenue $ 5,065,000 5,515,000 609,000 Expenditures:* Parks Irrigation $ (25,000) (25,000) (25,000) Trail Enhancement at Bob Eden Park $ - - (135,000) Misc Park Structure Improvements $ (223,868) (223,868) - Subtotal Parks: $ (248,868) (248,868) (160,000) Economic Development Incentives $ (5,025,000) (5,475,000) (575,000) Total Expenditures $ (5,025,000) (5,475,000) (575,000) EXCESS REVENUE OVER EXPENDITURES $ (208,868) (208,868) (126,000) Available Fund Balance $ 139,919 139,919 13,919 Projected Ending Fund Balance, FY08-09 13,919 * Unspent Capital Expenditures carryover until the project is complete. 3