4B Sales Tax Corporation Minutes - 08/25/2005MINUTES OF THE 4B SALES TAX CORPORATION
August 25, 2005
Present:
Warren Ayres, President §
Leon Mallonee, Vice - President §
Ray Gonzalez § Corporation Board Members
Tommy McCulloch §
Bob Seabury §
Matt Benoit, Assistant City Manager § City Staff
Linda Merrill, Recording Secretary §
Absent:
Benay Ayers, Secretary- Treasurer § Corporation Board Member
Alan Donaldson §
I. Call To Order
President Warren Ayres called the meeting to order at 8:03 a.m. Matt Benoit
notified the Board that Benay Ayers was unable to attend today's meeting.
II. Approval Of Minutes (June 17, 2005)
Leon Mallonee moved that the minutes be approved, seconded by Tommy
McCulloch. The motion carried.
III. Election of Officers
Mr. Benoit informed the Board that the current slate of officers is as follows:
Warren Ayres, President; Leon Mallonee, Vice - President; and Benay Ayers, Secretary-
Treasurer. Mr. McCulloch moved, seconded by Ray Gonzalez, that this slate of officers
be continued for the next fiscal year. The motion carried.
IV. Consider Approval of FY 2005 -2006 Budget
Mr. Benoit provided a review of the preparation of the 4B budget. He budgets for
known revenues and expenditures; he does not anticipate projects. When a project is
presented to the Board that it wishes to fund, the 4B budget is brought before the City
Council for amendment. The Council then provides expenditure authority. Thus, the 4B
budget can be amended throughout the year.
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Revenues. Mr. Benoit stated there is a 2.85% rate of growth on the actual tax
collection. That is the same rate of growth as of the present time. He applied that to the
2004 actual collection, because that year is complete. This brings collections up to
nearly $3 million a year.
The interest rate collection remains the same. There was a prime rate increase,
but the Board does not need interest rate collections to make ends meet, so he did not
make any changes.
Expenditures. The 4B Board, through the Council, issued debt in fiscal year
2003 to pay for the following three projects: (1) public safety training center; (2) radio
project; and (3) CAD /RMS. The 4B Board has a three -tier debt, in the form of 5 -year,
10 -year, and 15 -year obligations. The Board is currently in the third year of the five -year
tier, with an obligation of $935,265.
Mr. Benoit reviewed minutes of past Board meetings. He noted that in May 2004,
the 4B Board took on some of the responsibility for radio maintenance costs. The one -
year warranty will expire in May 2006; the 4B budget reflects a partial year payment of
this cost ($84,970).
The minutes also stated there was excess money in the original amendment to
pay for the first three years of maintenance. The City requested assistance from the
Board for years four and five. There is approximately $400,000 left unspent in the radio
budget. This could be used to make a radio payment. However, Mr. Benoit stated that
he planned to "kill' this encumbrance and make that cash available to the Board. Then,
he would budget the maintenance payments as a regular expense. This would draw the
line between capital costs and maintenance costs. Mr. Ayres noted this would make it
easier to keep up with.
CAD /RMS maintenance in the sum of $69,036 was also included in the budget
as a partial year payment. Pieces of the system will start coming online in January
2006, and continue throughout the year.
Mr. Benoit then reminded the Board they had agreed to fund $25,000 for a golf
course consultant. He has not taken this before the Council yet; he first wants to see
the proposals. Mr. Ayres asked for confirmation that this is not in the budget. Mr. Benoit
confirmed that it is not.
Mr. Seabury asked for information on the radio system purchased by the City.
Mr. Benoit replied that it is an eight - megahertz system used for the fire and police. It is
a public safety radio system, which includes consoles, portable radios and mobile
radios used in vehicles. Mr. McCulloch added that police and fire had been using quite
an antiquated system prior to this upgrade. Mr. Benoit stated that this expenditure was
included on the ballot to approve the additional sales tax in 1997. Mr. McCulloch
believes that all of the projects on the ballot have been accomplished.
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Mr. Ayres asked if the only debt remaining at this time is for the public safety
facility. Mr. Benoit replied affirmatively.
Mr. Gonzalez remarked on the success of the sales tax program. He indicated a
group from Tyler came to Wichita Falls, and the projects they were working on were
some that Wichita Falls had already accomplished.
Mr. Ayres asked if there is anything on the Council's agenda that might call for
the use of 4B funds. Mr. Gonzalez stated that laptops for the police department are an
issue. Mr. Benoit remarked that mobile data terminals would give police and fire the
ability to send and receive information over laptops instead of over the radios. The cost
for this project in 2002 was $3 million, which this board does not have. More debt could
be issued, and cash could be "chewed up," but he has not received direction from the
Board to obligate its funds in such a manner.
Mr. Ayres questioned whether anyone is pushing this issue. Mr. Benoit stated the
police department is pushing it very hard, to which Mr. Gonzalez agreed. Mr. McCulloch
asked if the department's ability is hampered without the laptops. Mr. Benoit stated
there could be an argument for efficiency. The City Administration's view is that this
would be a great project, but a source of revenue still needs to be found.
Mr. Benoit stated he may come before the Board to request funds for renovation
of the golf course at a future date.
Mr. Ayres called for a motion to adopt the budget as it appears today, with the
understanding that it may be modified throughout the year. Mr. McCulloch so moved,
seconded by Mr. Gonzalez. The motion carried.
IX. Adjourn
The meeting adjourned at 8:25 a.m.
Warren T. Ayres
President