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Home My WebLink About1995-06-22 EDC Minutes EULESS DEVELOPMENT CORPORATION BOARD OF DIRECTORS MINUTES JUNE 22, 1995 The Board of Directors of the Euless Development Corporation met at 7:30 a.m., Thursday, June 22, 1995, in the Downstairs Conference Room of Building A., Euless Municipal Complex, 201 North Ector Drive, Euless, Texas. Members present included: Mayor Mary Lib Saleh, Chairman of the Board of Directors Mayor Pro Tern Bobby Baker, Vice Chairman of the Board of Directors Councilman Charles Miller Citizenmember Sonja Adams Citizenmember Edward Denari Citizenmember Letty Lynn Maloney City Manager Tom Hart, President Assistant City Manager Joe Hennig, Vice President Director of Economic Development Tom Cox, Second Vice President Finance Director Diana Ortiz, Treasurer City Secretary Susan Crim, Secretary Deputy City Secretary Cathy DiMaggio, Assistant Secretary Members absent included: Councilman Henry Boatright Other staff present included: Director of Community Services Rick Herold CALL TO ORDER The meeting was called to order at 7:45 a.m. by Chairman of the Board of Directors, Mary Lib Saleh. APPROVAL OF MINUTES OF FEBRUARY 9, 1995 MEETING Upon motion by Mr. Denari and second by Ms. Adams, the Minutes of the February 9, 1995 meeting were approved as presented by unanimous vote. EULESS DEVELOPMENT CORPORATION MINUTES JUNE 22, 1995 PAGE 2 REPORT ON MAIN STREET AND ENTRYWAY SIGNAGE PROGRAM Director of Economic Development Tom Cox said that the Economic Development Status Report will be distributed soon with a featured article on Aerobotics, a high-tech engineering company located on Westpark Way which has plans for major expansion. Mr. Cox showed a video of N. Main Street as it appears and presented a concept plan for major improvements, including reconstruction of North Main Street from the bridge to Harwood Road. A grant proposal has been submitted to the North Central Texas Council of Governments (NCTCOG) which includes the expansion of Main Street, utility relocation, major landscaping improvements, complete renovation of the strip shopping center and a shopping center that would include a major anchor and which would include all the businesses now located elsewhere along N. Main Street. It was noted that the bridge at SH 183 would need to be expanded to accommodate street upgrades. If NCTCOG does not approve the grants, Main Street will be improved to the extent possible, particularly intersection improvements, relocation of overhead power lines to less conspicuous areas, and some landscaping improvements. An entryway program is being designed which will incorporate a symbol that will signify Euless in some way. Mr. Denari suggested using a symbol that would be lasting and would have an intellectual thrust, perhaps incorporating some of the architectural designs of the library. Mr. Denari asked what the role of the Euless Development Corporation is in this project. Mr. Hart said that the project is included in the revised 37-month financial plan which is before the board under professional services ($20,000 to $30,000). There is also a line item for the project in the amount of $250,000, and as current projects are completed, there may be significant future funding available for the Main Street project. Mr. Baker said he hoped there would be some plan to continue some improvements past Harwood and not stop abruptly. Mr. Miller expressed the same concerns about South Main Street. STAFF REPORT ON CURRENT FINANCIAL STATUS Mr. Hart reviewed half cent sales tax revenues and stated that he was optimistic about continued sales tax increases despite the closing of Kmart which will mean a $50,000 per year revenue loss in the half cent sales tax fund. However, the proposed strip center on SH 121 and several new restaurants which have opened recently will help to defray this loss. Mr. Denari asked Mr. Hart if his revenue projections were realistic. Mr. Hart replied that he had based his projections on a 10-year trends analysis, and although he was not extremely conservative, he was confident that his projections were solid. Mr. Baker asked if there had ever been a year when sales tax revenues decreased. Mr. Hart said that he was not aware of this happening, but would look at his data from past years. Mr. Hart pointed out that there were a few major changes in the expenditures portion of the budget with the library being consolidated into two line items (Acquisitions and Construction). Also, since the net cost of the golf course of$340,000 and the development cost of $400,000, is to be paid back when bonds are sold, a line item was added to reflect both revenues and expenditures. The bond sale is backed up by a General Obligation pledge and income from the golf course. EULESS DEVELOPMENT CORPORATION MINUTES JUNE 22, 1995 PAGE 3 Mr. Denari questioned the cushion between revenues and expenditures. Mr. Hart explained that there is an excess of revenues over expenditures of $1.3 million ($809,288 of which is the bond reserve required by the bond covenant). Mr. Hart said it was his goal to keep 20% of the annual budget in reserve--or approximately $500,000. Mr. Hart commented that if funds were needed, there is versatility to adjust within the budget, i.e. "Existing Park Projects" where $500,000 has been budgeted, but only $30,728 has been expended. APPROVAL OF AMENDED 37-MONTH FISCAL PLAN Upon motion by Dr. Maloney and second by Ms. Adams, the amended 37-Month Fiscal Plan was approved by unanimous vote as presented with total expenditures of$13,884,532 and revenues of $15,199,135. Mr. Baker said he hoped that some operational items could be shifted to the General Fund, particularly if the proposed mall is built. APPROVAL OF AMENDED BUDGET FOR FY 1994/95 AND BUDGET FOR FY 1995/96 Upon motion by Mr. Denari and second by Ms. Adams, the amended budget for FY 1994/95 and the budget for FY 1995/96 were approved unanimously as presented. Mr. Denari asked Ms. Ortiz where the funds for the Corporation were kept. Ms. Ortiz explained that approximately $850,000 is kept in a bond reserve per the bond covenant; there is approximately $100,000 kept in cash and approximately $12 million is kept in investments in government securities at an interest rate of about 6%. AUTHORIZE PRESIDENT TO MAKE NAME CHANGES IN CORPORATE DOCUMENTS PERTAINING TO LAND ACQUISITION Mr. Hart explained that Item 9 on the Agenda (Consider approval of an agreement between the Euless Development Corporation and the City of Euless regarding land acquisition)was placed on the agenda to ensure that all documents pertaining to the acquisition of the three land tracts for the golf course and athletic complex were in the name of the city rather than the Corporation. Upon motion by Mr. Miller and second by Ms. Adams, the President was authorized by unanimous vote to execute documents to change the name to City of Euless on all corporate documents pertaining to the land acquisition to ensure that the land is properly titled and to establish a procedure to be followed for all such future transactions of this Corporation. Mr. Denari asked to have some explanation of how the funds set aside for Senior Citizens Projects ($50,000) were being used. Mr. Herold said that building improvements were being made to the Simmons Senior Center including the installation of a new heating/ventilation/air conditioning system, new windows, carpeting and a built-in sound system. EULESS DEVELOPMENT CORPORATION MINUTES JUNE 22, 1995 PAGE 4 ADJOURN There being no further business before the Corporation, the meeting was adjourned at 9:20 a.m. ATTEST: APPROVED: agay_EitJ usan Cri , Secretary Mary Lib Ieh, Chairman M I N UTES16-22-95.E DC Half-Cent Sales Tax Budget FY 93/94 through 95/96 as of May 31, 1995 EXPENDITURES: Life To Date LIBRARY Approved Revised Thru 5/95 Remainder Street Upgrade $250,000 $0 $0 $0 Electrical Realignment 3,000 0 0 0 Land Acquisition 295,000 0 0 0 Parking, Bldg B& Police 75,000 0 0 0 Irrigation/Landscaping 25,000 0 0 0 Demolition/Houses 25,000 0 0 0 Book&Library Acquisitions 500,000 _ 336,880 25,487 311,393 Library Automation 250,000 _ 250,000 0 250,000 Library Construction 4,000,000 4,435,666 380,431 4,055,235 Operation Exp. FY 93/94(Thru 4/30/94) 9,546 0 0 0 Professional Services 50,000 0 0 0 Miscellaneous 50,000 10,000 0 10,000 Restricted-New Positions 0 200,000 0 200,000 Contingencies 0 200,000 0 200,000 Furniture, Fixtures& Equipment 0 300,000 0 300,000 Subtotal: $5,532,546 $5,732,546 $405,918 $5,326,628 I PARKS . Land Acquisition(Complex) $1,250,000 $2,431,191_ $899,441 $1,531,750 Athletic Complex/Phase I 1,000,000 1,000,000 26,553 973,447 Golf Land-Loan 0 340,000 340,000 01 Golf Development Cost-Loan 0 400,000 100,983 299,017 Existing Park Projects 500,000 500,000 30,728 469,272 Operations 200,000 155,000 77,393 77,607 Trail Grant 200,000 200,000 18,900 181,100 Additional Land Acquisition 150,000 300,000 0 300,000 Midway Rec Wall FY 92/93 91,597 91,597 91,597 0 Professional Services 75,000 75,000 50,791 24,209 Sr. Citizen Projects 50,000 50,000 0 50,000 Subtotal: $3,516,597 $5,542,788 $1,636,386 $3,906,402 ECONOMIC DEVELOPMENT Operations $225,000 $150,000 $49,288 $100,712 Professional Services 90,000 155,000 92,433 62,567 Western Hills 40,000 50,000 44,378 5,622 Incentives 500,000 500,000 150,000 350,000 Projects 250,000 250,000 17,992 232,008 Subtotal: $1,105,000 $1,105,000 $354,092 $750,908 ota1. *xo)ect Expert Lures $1 Q 154;143 ',; $12;380,334 $2,396 a9a $9,983,939 Debt Service & Issue Cost FY 93/94 $0 $76,487 $76,487 $0 FY 94/95 587,526 618,423 0 618,423 FY 95/96 792,332 809,288 0 809,288 Subtotal: $1 379 858 $1 504 198 $76 487 $1 427 711 iSeWr` 'Y'93 'hru M 'Y96`n b.. 4111534,0010:413,884;532142;47218,8201101t650; 06/22/95 REVENUES: Approved Revised Monthly Collections: FY 92/93 $85,576 $85,580 --. FY 93/94 1,350,000 1,429,571 FY 94/95 1,383,750 1,560,000 FY 95/96 1.18,344 1.600.000 SUBTOTAL: $4,237,670 $4,675,151 Bond Proceeds: 8,000,000 8,855,195 Interest Earnings: 360,000 892,838 Miscellaneous: 0 35,951 Loan Repayment if Golf bonds sold: 0 740,000 Total FY93 thru FY96 $12,597,670 $15,199,135 EXCESS/(DEFICIT):• $1,063,669 $1,314,603 LESS: BOND RESERVE $809,288 $809,288 NET AVAILABLE: $254,381 $505,315 06/22/95 HALF-CENT SALES TAX CIP FUND BUDGET SUMMARY 1994-95 Approved Revised Revised ** 1 Audit Audit Budget Budget Pro Forma Cumulative I FY92-93 FY93-94 FY94-95 FY94-95 FY96 Totals i i Working Capital,beginning $0 ($14,541) $10,067,247 $10,067,247 $5,777,942 (A) 1 Plus Receipts: 1 Half-Cent Sales Tax $85,580 $1,429,571 $1,406,000 $1,560,000 $1,600,000 $4,675,151 I Bond Proceeds $0 $8,855,195 $0 $0 $0 $8,855,1951 Interest Earnings $0 $36,838 $225,000 $541,000 $315,000 $892,838 * Loan Repaymt-Golf Course $0 $0 $0 $740,000 * $740,0001 MiscellaneoG-Earnings $0 $17,833 $0 $18,118 $0 $35,951 TOTAL RE 'CNUE: $85,580 $10,339,437 $1,631,000 $2,119,118 $2,655,000 $15,199,1351 Funds Available $85,580 $10,324,896 $11,698,247 $12,186,365 $8,432,9421 $15,199,1351 I Less Deductions: Issuance Cost/Debt $0 $76,487 $618,423 $618,423 $809,288 $1,504,1981 Parks/Recreation $93,597 $83,322 $3,359,365 $3,340,0001 $2,025,869 $5,542,7881 Library $5,622 $39,432 $5,487,492 $2,000,0001 $3,687,4921 $5,732,5461 Economic Development $902 $58,408 $422,737 $450,000 $595,690 $1,105,0001 Non-Departmental $0 $0 $0 $0 $0 $0 1 TOTAL DEDUCTIONS: $100,121 $257,649 $9,888,017 $6,408,423 $7,118,339 $13,884,532 I i (B) NET Working Capital,ending ($14,541) $10,067,247 $1,810,230 $5,777,942 $1,314,6031 $1,314,6031 (C) (C) Less Reserve: ($809,288) ($809,288) 1 I Net Available: ! $505,315 $505,3151 I i 1 1 I (A) FY1995 funding includes bond proceeds of$8,855,000 received in FY1994. (B) Deductions based on projects totally expended and completed which may not be realized but is conservative. (C) Estimated Bond reserve required per covenant$809,288. * Loan repayment only if Golf Course started and bonds sold. **Cumulative totals=Audited years plus Revised Budget totals. SLTXTABL.WK4