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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).