4B Sales Tax Corporation Minutes - 08/23/2018MINUTES OF THE
WImiTA FALLS 4B SALES TAX CORPORATION (4BSTC)
August 23, 2018
PRESENT:
Tony Fidelie, President § Members
Rick Hatcher, Secretary -Treasurer §
Dave Clark §
Darron Leiker §
Michael Mills §
Stephen L. Santellana, Mayor § Mayor
Bobby Whiteley, Councilor at Large §
Jim Dockery, Deputy City Manager § City Staff
James McKechnie, Senior Assistant City Attorney §
Davis Powell, City Engineer §
Terry Points, Parks Gen. Services Superintendent §
Linda Merrill, Recording Secretary §
Brian Hoffman § Spectra
Lindsay Barker § CVB
Paul Fleming § Museum of North Texas History
ABSENT:
Glenn Barham, Vice President §
Derik Schneider § Members
1. Call to Order.
Tony Fidelie called the meeting to order at 3:37 p.m.
2. Approval of Minutes of 6/25/18.
Rick Hatcher moved, seconded by Michael Mills, to approve the minutes. The motion
carried 5-0.
3. Financial Report.
Jim Dockery said the Board's adopted budget with all changes thereto reveals $4.096
million in revenues. With nine months of the fiscal year completed, revenues are at $3.010
million, and are projected at $4.35 million by the end of the fiscal year.
He noted certain projects have been completed, such as the Kemp sidewalk project, and
Half Pint Taproom. There are still annual debt service obligations for previous projects and other
expenditures.
N:\_legal\4A, 4B, DDSC, TIFS\4B Corp\4B Minutes\2018\2018.8.23\Minutes_4B_2018.8.23.doe
WFEDC — Minutes of August 23, 2018
The Board's beginning cash balance was $3.782 million; he projects that ending position
to be at $3.597 million. With encumbrances totaling $1.330 million, the Board will have an
unreserved fund balance of $2.266 million. As of today, the Board has an unreserved fund
balance of $1.282 million.
Mr. Clark questioned the status of the grocery store at 922 Indiana. Mr. Dockery said no
ending date was included in the agreement. They are making progress, but are not ready for their
Certificate of Occupancy. Mr. Fidelie noted that the deadline for the Petroleum Building project
was July 1. Mr. Dockery said he would unencumber the $800,000 at the pleasure of the Board.
4. Public Hearing to Consider Request for Funding from the Museum of North Texas
History.
Mr. Fidelie opened the public hearing at 3:44 p.m.
Paul Fleming, president of the board for the Museum of North Texas History, spoke
regarding the proposed new children's exhibit. Ten years ago, a board member left the museum
$20,000. Since that time, they have acquired grants totaling $55,000. The new interactive exhibit
they have planned will cost $120,000. They request $40,000 from the 413STC.
They have worked with Museum Fabrication Group to create the exhibits, based upon the
Chisolm Trail, aviation, and the oil and gas industry. A donation box and a photo stand with the
museum's logo would also be included.
There being no further discussion, Mr. Fidelie closed the public hearing at 3:51 p.m.
5. Discussion of 2018-19 Budget.
Mr. Dockery explained that this item is the beginning discussion of the 2018-19 budget.
The Board will have the opportunity to review the proposed budget and ultimately take action at
its September meeting. He will provide an overview of the budget with certain requests, followed
by Paul Menzies and Lindsay Barker, who will discuss particular items.
He noted that City Attorney Kinley Hegglund had created a guidance checklist noting
how 4B sales tax funds can be used. The 4B fund can do anything the 4A fund can do; however,
the 4A fund can only do what it is allowed by statute to do. The 4A fund is used to fund primary
jobs in areas of manufacturing, military, distribution, etc. The 4B funds are usually used in areas
not required to create primary jobs, such as in job training, infrastructure improvements, career
centers, athletic facilities, tourism and convention, parks and open space improvements, and
affordable housing.
Revenues for the 2018-19 fiscal year are anticipated at $4,383,522, which would include
sales tax revenues, TIF #2 reimbursements, and interest earnings. Sales tax revenues are
estimated to end the year over 6% above the sales tax receipts from 2017.
Expenditures, estimated at $3,875,891, include the debt service for which the 4B has
been paying for several projects; Downtown Improvement Grants; CVB Incentive Funding;
capital equipment maintenance/improvements; and administrative expenses.
Revenues less expenses total $507,631. The Board will have an estimated beginning cash
balance on October 1, 2018 of $4,781,100. However, $2,085,040 is reserved for encumbrances,
leaving $3,203,691 as the unreserved fund balance.
WFEDC — Minutes of August 23, 2018
The 2018-19 budget also includes a request for renovation of MPEC facilities in the sum
of $730,000 in the form of (1) roof replacement at the Bridwell Agricultural Center ($500,000);
(2) LED lighting at the Coliseum ($125,000); and (3) restroom renovations at the Exhibit Hall
($105,000).
The City has received grants through the Transportation Alternatives Program for three
circle trail projects: (1) Loop 11 to Lucy Park; (2) Seymour Highway to Barnett Road; and (3)
Lake Wichita from Fairway to Marina. The grants cover 80% of the trail construction, while the
City provides the remainder, in addition to costs of design. The City must also pay some advance
funding that will be reimbursed once the projects are completed if the funds are not needed.
These three grants total $5,432,531, and the City's share is $1,547,898. These projects
must be under construction by October 2020. The City requests the 4B provide matching funds
over the next three fiscal years in order to receive these grants. The 2018-19 budget request
includes $675,560 to construct the section from Loop 11 to Lucy Park, and advance funding
required for the other two projects.
Paul Menzies discussed a proposed program recommended by the City's Downtown
Development Steering Committee regarding sidewalk and tree maintenance in the core
downtown area. The area in question would encompass 7th, loth, Scott and Ohio, which contains
the majority of the sidewalk issues where the roots of mature trees have broken the surrounding
sidewalk. Under the City code, it is the responsibility of the adjacent property owner to repair or
replace any broken or defective sidewalk.
The City would like to use the existing $50,000 downtown improvement grant program
to assist property owners with the repair and/or replacement of defective sidewalks, or with the
cost of removal/replacement of trees. It is suggested this line item be increased to $100,000.
Mr. Dockery said close to $40,000 has been spent from this account the past couple of years.
Lindsay Barker explained that the CVB is hosting the National Horseshoe Pitchers
Association World Tournament July 22-August 3, 2019. Between 5,000-6,000 people are
expected to attend this two -week event. Average spending by participants is anticipated at $175
per day. Ten hotels are reserving blocks of rooms for this event; the Fairfield Inn and Suites is
the host hotel. Many of the participants turn this event into a vacation, and bring family
members.
Revenue sources include food and beverages, merchandise sales, off -site tours, and
sponsorships. However, there are many expenditures for a venture this large for which the CVB
is seeking $50,000 from the 4B Board, which would include the rental of the facility, the set-up
and the break -down of the pits, and many other items. The economic impact of this event is
estimated at $20 million.
6. Executive Session
Mr. Fidelie adjourned the meeting into executive session at 4:44 p.m. pursuant to TEXAS
GOVERNMENT CODE section 551.087. He announced the meeting back into regular session at
5:27 p.m. The subjects posted in the Notice of Meeting were deliberated, and no votes or further
action was taken on these items in executive session.
WFEDC — Minutes of August 23, 2018 4
7. Consider Request for Funding from the Museum of North Texas History.
Mr. Fidelie moved to provide funding not to exceed $25,000 for the stated project for the
Museum of North Texas History. Seconded by Mr. Clark, the motion carried 5-0.
8. Adjourn.
The meeting adjourned at 5:27 p.m.
Guy A. "To y" Fidelie, Jr., President