4B Sales Tax Corporation Minutes - 08/10/2010MINUTES OF THE 4B SALES TAX CORPORATION
August 10, 2010
Present:
Jim Ginnings
§
Alan Donaldson
§
Corporation Board Members
Charles Elmore
§
Darron Leiker
§
Bob Seabury
§
Dustin Nimz
§
Rick Hatcher
§
City Council
Darron Leiker, City Manager
§
Jim Dockery, CFO /Asst. City Manager
§
Kevin Hugman, Assistant City Manager
§
City Staff
Jack Murphy, Director of Parks
§
Pat Hoffman, Property Administrator
Miles Risley, City Attorney
§
Linda Merrill, Recording Secretary
§
Penny Miller, Park Board member
§
Rowena Jackson, Wichita Theatre
§
Attendees
Dwayne Jackson, Wichita Theatre
§
1. CALL TO ORDER
Jim Ginnings called the meeting to order at 3:00 p.m. He asked for a moment of
silence to acknowledge the passing of former Board member John Alexander.
2. APPROVAL OF MINUTES (5/19/10) AND REPORT OF FINANCIAL CONDITION
Charles Elmore moved, seconded by Darron Leiker, that the minutes be
approved. Mr. Ginnings had a question about the minutes; final approval was tabled
pending a discussion with Messrs. Dockery and Hugman, who were not yet present.
3. FISCAL YEAR 2010 -11 BUDGET
Discussion was delayed on this topic until later in the meeting.
4. PUBLIC HEARING OF LAKE WICHITA IMPROVEMENTS PROJECT
Mr. Ginnings opened the public hearing. No citizens were present. Jack Murphy
made a presentation to the Board. He noted that Penny Miller, Park Board member and
Chair of the Lake Wichita Improvements Committee, was also in attendance. The total
funding request of $85,000 was itemized as follows:
Recommendations
Cost Estimate
Flexible base gravel to shoreline to accommodate access for bank fishing
$17,000
Observation Platform to view wildlife
$20,000
Signs (four nature educational signs, designed for inexpensive
replacement due to inclement weather and vandalism
$8,000
Floating Pier at site of original pier. 20' x 20' with metal roof. If City
eventually builds a larger pier, this one could be relocated
$30,000
Ramp 20' Ion to pier
$10,000
5. PUBLIC HEARING OF THE WICHITA THEATRE PERFORMING ARTS CENTER
RENOVATION - REMODELING PROJECT
Dwayne Jackson requested funding of $46,000 for Theatre renovations. The 4B
Board provided funding for renovations in 2008. That project was completed at a cost of
$415,000, of which about $340,000 was supplied through the 4B Board and private
donations. A few items (prep kitchen on the second floor, renovation of second floor
restroom, outdoor awning, and wheelchair vertical lift) did not get completed due to lack
of funds. They have $15,000 committed to this project to date.
Mr. Seabury noted that $25,000 seemed expensive for the vertical lift.
Mr. Jackson said it has been needed at approximately ten parties this year. Although
they can take people up in the old freight elevator, he fears there may be ADA
prohibitions to using that elevator to transport the public, and it is not located in a
desirable place in the Theatre.
Mr. Seabury asked if they could hold dinner theatre productions upstairs.
Mr. Jackson said they are moving in that direction, but it would not be a full food facility.
They have lost weddings and receptions because they do not have a handicapped
accessible restroom or a place for caterers to prep.
Mr. Ginnings closed the public hearing.
2. APPROVAL OF MINUTES (5/19/10) AND REPORT OF FINANCIAL CONDITION
(REVISITED)
Mr. Ginnings questioned a statement in the minutes (there is a $2.466 Million
unreserved balance, and $575,000 unreserved cash balance). Jim Dockery noted it was
most likely an error in the minutes; the larger number would be the cash, and the
smaller would be the uncommitted funds. Kevin Hugman added that the unreserved
cash on hand was lower than the budgeted number because the City had not realized
the full year of sales tax revenues. The Fiscal Year 2010 actual unreserved fund
balance is less than the budgeted fund reserve balance. Mr. Dockery said he and
Mr. Hugman will work out appropriate language for that paragraph. The minutes, subject
to correction, were unanimously approved.
Mr. Ginnings asked the requirements for attendance at Board meetings.
Mr. Leiker said three unexcused absences per year are allowed per City ordinance.
Report of Financial Condition
Mr. Hugman acknowledged the presence of the 4B Board's newest member,
Dustin Nimz, who just entered the meeting. He then went over the financial statement
for the current fiscal year.
2010 Budget
o Downtown Intersection Improvement Project $1 Million
It is likely that not all three intersections can be
done within the budgeted amount.
o Trail Extension from Rhea Road to Lake Wichita Dam $175,000
Despite change orders to the contract, it is
still within the approved amount
o The South Weeks Park Pond is nearing completion
o Anticipated revenues from TIF #2 reimbursements $200,000
2011 Budget
o $3.214 Million in sales tax revenue projected (same as 2010 budget)
o No interest earnings were provided for this report, but they will be low.
o $275,000 in TIF #2 reimbursements based on current appraised values
o Projected revenue: under $3.5 Million
Completed Projects
• Gym space for Wichita Falls Independent School District
• Community Wide Marketing Project
• River Bend Nature Works ($38,000 in unexpended funds from this project put
back in fund balance)
Ongoing Projects
o Community Wide Marketing Project
o Debt Service — Castaway Cove, CAD and Radios
Closed Projects
o Outdoor Warning Sirens
o MDT software maintenance
Administrative charges are held at $10,000
There is a street maintenance encumbrance of $400,000. Mr. Leiker stated that
street maintenance is severely under - funded. The City currently funds about $1.6 Million
annually, which covers 5 -6 miles of streets. At that rate, it would take almost 90 years to
do a full mill- and - overly cycle on the City's 500 miles of streets. The City has worked
with a pavement condition index expert. Based upon a set criteria, the City's overall
condition index is 63 out of 100 (100 being the best). A score of 60 is critical in the
industry. The expert recommended the expenditure of $9 Million per year to keep the
streets as they are today. Mr. Leiker is proposing a two cent tax increase in his 2011
budget for street maintenance to provide an additional $880,000 toward street
maintenance. With that money and a financial commitment from the 4B Board, it would
be a step in the right direction. Mr. Dockery added that the City's legal staff has been
consulted to ensure this project is eligible for 4B funds.
Total expenditures are just under $3 Million. The expected revenue less these
expenditures leaves a $500,000 balance. The budgeted cash balance and
encumbrances currently in the budget reflect a $1.7 Million unreserved fund balance.
Lake Wichita Improvements
Darron Leiker moved that the 4B Board authorize payment of $85,000 for the
Lake Wichita projects discussed today. Seconded by Alan Donaldson, the motion
unanimously carried.
Wichita Theatre
Mr. Elmore moved that the 4B Board authorize payment of $46,000 for the
Wichita Theatre projects discussed today. Seconded by Mr. Seabury, the motion
unanimously carried. The Board then discussed the cost for the vertical wheelchair lift.
Mr. Ginnings asked the City Manager to have his staff investigate the rules and
regulations for elevators and ADA compliance.
7. EXECUTIVE SESSION'
Mr. Ginnings adjourned the meeting into executive session at 4:34 p.m. pursuant
to TEXAS GOVERNMENT CODE § §551.072. He announced the meeting back into regular
session at 4:54 p.m. He noted that the subjects described in Footnote 1 were
deliberated, and no action was taken on these subjects in executive session.
7. ADJOURN
Mr. Ginnings adjourned the meeting at 4:55 p.m.
1 Executive Session in accordance with TExAs GOVERNMENT CODE §551.072, to deliberate the purchase,
exchange, lease, or value of real property interests due to the fact that deliberation in an open meeting would
have a detrimental effect on the position of the City in negotiations with a third party (including, but not limited to,
the purchase and /or value of real property interests along Scott Street in the area of the downtown park).