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4B Sales Tax Corporation Minutes - 03/05/2026 MINUTES OF THE WICHITA FALLS 4B SALES TAX CORPORATION (WF4BSTC) MARCH 5, 2026 PRESENT: Glenn Barham, President § WF4BSTC Members Michael Grassi, Vice-President § Nick Schreiber, Secretary-Treasurer § Stephen Santellana § Craig Reynolds § Darrell Coleman § Steve Garner § Tim Short, Mayor § Mayor & City Councilors Tom Taylor, Councilor, District 5 § Jeff Jenkins, City Manager § City Staff James McKechnie, Deputy City Manager § Paul Menzies, Assistant City Manager § Blake Jurecek, Assistant City Manager § Julia Vasquez, Deputy City Attorney § Stephen Calvert, CFO & Finance Director § Russell Schreiber, Public Works Director § Tyson Traw, Engineering Director § Fabian Medellin, Development Svcs Director § Karen Montgomery-Gagne, Principal Planner § Kalee Robinson, Parks & Rec Director § Cody Melton, Fire Chief § Samantha Forester, Public Information § Paige Lessor, Executive Legal Assistant § 1. Call to Order. Mr. Glenn Barham called the meeting to order at 3:00 p.m., noting that a quorum was present. 2. Report of Financial Condition. Mr. Paul Menzies reported that the sales tax figures remain unchanged from the prior meeting due to the adjusted meeting schedule but noted that revenues continue to perform well. He stated that, for the first quarter of the fiscal year, sales tax collections are ahead of the same period last year. Mr. Menzies further reported that the Corporation's unencumbered fund balance, or "bottom line," is approximately $6.2 million available for new projects. 3. Consent Agenda: a) Approval of Minutes of January 8, 2026. b) Approval of Downtown Matching Grant applications for: i, 1001 8th St (WF Baptist Church) WF4BSTC Minutes Page 1 of 8 3/5/2026 ii. 813 8th St (Oil & Gas Building) iii. 913 7th St(Fidelie Building) iv. 901 Ohio (Brian's Plumbing) Mr, Stephen Santellana moved to approve the consent agenda as presented. Seconded by Mr. Steve Garner, with no further public comment, the motion carried 7-0. 4. Public hearing regarding a funding request from the City of Wichita Falls to support the Art Walk event downtown. Mr. Paul Menzies introduced the item and explained that the $152,000 funding request is being made by the City of Wichita Falls. He noted that, if approved by the Board, the City would subsequently enter into an agreement with the selected organization, subject to City Council approval at an upcoming meeting. Mr. James McKechnie further explained that, following the Downtown Development Board's discontinuation of the Art Walk, City Council and management tasked a committee with identifying a path forward. He stated that the committee has identified Potencia Projects as a local partner to operate the event, with a plan aimed at continuing the Art Walk while also reducing the overall cost to the City over time. Mr. Ismael "Ish" Duran, President of Potencia Projects, presented a proposal to operate and enhance the Downtown Art Walk. He provided an overview of Potencia Projects' experience, highlighting its longstanding involvement in downtown events, including festivals, community partnerships, and prior contributions to Art Walk and other local programming. He emphasized the organization's local presence, community partnerships, and capacity to manage large-scale events. Mr. Duran described the prior Art Walk format as having a large but unstructured footprint, spanning multiple downtown blocks with primarily volunteer coordination and limited oversight. He noted average attendance of approximately 8,000 participants per event, but identified key concerns from downtown stakeholders, including sanitation issues, lack of traffic control and safety measures, insufficient communication, and a drift away from the event's original focus on art. He outlined Potencia Projects' proposed operational approach, which includes enhanced planning and permitting coordination with the City, improved communication with stakeholders, formal public safety and emergency planning, and expanded event-day logistics such as infrastructure setup, teardown, and post-event sanitation. He further explained that vendor management would be restructured through an application and screening process to better categorize and place participants, supported by centralized marketing, communications, and performance tracking metrics for continuous improvement. Mr. Duran presented a redesigned event layout featuring a smaller, defined perimeter to improve safety and manageability. The plan includes designated zones, such as a curated "Art Zone" focused on artists and programming, a separate merchant area for resale vendors, a food- focused farmers market area, and general vendor spaces. He noted that this structure would restore emphasis on art while improving organization, navigation, and overall attendee experience. Mr. Duran then turned the floor over to Mr. Cosme Solis. Mr. Solis, a former Texas Department of Transportation District Safety Officer with 31 years of experience, presented the proposed safety plan for the Art Walk. He explained that, following outreach and discussions with downtown business owners, safety was identified as a primary concern under the previous event format. Mr. Solis outlined several measures designed to enhance safety and address those concerns. He stated that the plan includes the deployment of approximately ten police officers per WF4BSTC Minutes Page 2 of 8 3/5/2026 event, strategically stationed throughout the event area, with additional "zone officers" assigned to specific sections to improve coordination and response times. He noted that this structure is intended to provide visible security presence and allow for quicker response in the event of an incident. He further explained that emergency medical services (EMS) would be on-site and centrally located within the event perimeter to ensure rapid response to medical emergencies. Mr. Solis also described sanitation and crowd accommodation measures, including the placement of portable restroom facilities throughout the event area, with each location consisting of multiple units, including ADA-accessible accommodations. He also detailed traffic control protocols, including advance signage to notify motorists of the event and caution signage to alert drivers to pedestrian activity in and around the event area. He stated that these measures are intended to improve both pedestrian and vehicular safety. Additionally, he outlined operational safety protocols, including a lost child response plan to quickly reunite children with guardians, and a severe weather protocol to notify vendors and attendees and facilitate safe sheltering in the event of inclement weather. Mr. Solis emphasized that these coordinated safety measures are intended to create a more secure and well-managed environment for attendees, vendors, and downtown stakeholders. Mr. Solis turned the presentation back over to Mr. Duran. Mr. Duran presented an overview of the proposed budget for the Art Walk, noting that primary cost components include security, emergency medical services (EMS), insurance, sanitation, portable restrooms (including ADA- accessible units), programming, and event management. He stated that security and EMS represent significant expenses, with security estimated at approximately $40 per hour per officer and EMS services ranging from $200 to $300 per hour, totaling approximately $2,500 per event. He further noted that insurance costs are estimated at $1,600, and sanitation services, including active cleanup crews during the event, are projected at approximately $1,500. Mr. Duran emphasized that funding for art programming is a key component of the proposal, as it directly supports the goal of restoring a strong artistic focus to the event through curated experiences and partnerships with local arts organizations. Additional costs include portable restroom facilities and related infrastructure, as well as minor site-related expenses. He stated that management and production costs account for approximately 42% of the budget and reflect an estimated 167 hours of work per month to plan and execute the event. In closing, Mr. Duran characterized the Art Walk as a quality-of-life initiative that enhances community engagement and serves as a key promotional asset for Wichita Falls. He noted that the event regularly attracts large crowds and contributes positively to the community's image and economic activity. Mr. Duran stated that, while the event is not expected to be a revenue- generating operation, it provides significant community value and is an asset worth sustaining and improving moving forward. Mr. Duran asked for questions from the Board. Mr. Nick Schreiber inquired about the potential to extend the Art Walk into the months of November and December. Mr. Duran responded that Potencia Projects is open to extending the season, particularly given positive vendor feedback and the appeal of cooler months, but noted that continuation would depend on participation and overall success. Mr. Schreiber also requested additional detail regarding vendor and premium fees. Mr. Duran explained that vendor fees would begin at a modest level and increase gradually over time, with food vendors and food trucks subject to higher initial fees. He noted that premium fees, such as early setup access and preferred placement, are still under consideration and will be determined based on vendor feedback and operational needs. Mr. Garner asked for clarification regarding the art programming budget. Mr. Duran explained that funds would be used to secure artists from the Texas Commission on the Arts WF4BSTC Minutes Page 3 of 8 3/5/2026 roster, including performance-based artists, with costs varying depending on timing and artist availability, particularly later in the season. Board members discussed sponsorship opportunities, with Mr. Schreiber and Mr. Coleman suggesting expanded sponsorship models, including event-specific or component- based sponsorships. Mr. Duran acknowledged prior sponsorships and indicated that future sponsorship revenue would be directed toward a sustainability fund to support ongoing programming and reduce reliance on public funding. Mayor Short and Board members raised concerns regarding vendor placement and potential resistance from vendors accustomed to prior informal arrangements. Mr. Duran emphasized that communication and coordination with downtown business owners would be critical, noting that business owners within the proposed event footprint have expressed support and that efforts will be made to work collaboratively with vendors while implementing the new structure. Mr. Santellana raised questions regarding vendors operating outside the designated event area. Mr. McKechnie explained that the City intends to adopt a policy or ordinance establishing clear boundaries and requirements, with enforcement by police and code enforcement personnel, while emphasizing an initial focus on education and cooperation. Board members also discussed safety and capacity concerns related to the reduced event footprint. Mr. Solis stated that the proposed plan is sufficient to accommodate anticipated attendance levels, with the ability to adjust staffing and expand the perimeter if needed. Mr. Duran added that closing streets to traffic would provide additional usable space and improve crowd flow. Additional discussion included potential use of nearby parking areas for vendor access and premium parking options, as well as traffic control logistics. Board members further emphasized the importance of pursuing sponsorships to offset costs and reduce the burden on public funding over time. Finally, Mr. Schreiber confirmed that the current funding request is for a one-year term, with the expectation that the program will be evaluated for future continuation. Staff and presenters affirmed that the intent is to assess performance after the initial year and explore future funding strategies. Mr. Barham asked for any further comments or questions from the Board and the public. There being no further questions, Mr. Barham closed the public hearing at 3:39 p.m. 5. Public hearing regarding a funding request from the City of Wichita Falls to assist in supporting several capital improvement projects, including but not limited to, the renovation of the former Kirby Middle School into the new Police Department Headquarters, The Falls renovation at 1-44 adjacent to the Wichita River, and the Lake Wichita section of the Circle Trail. Mr. Menzies introduced the item and explained that, while the Board is familiar with the proposed projects and funding discussions, the presentation was intended to provide additional context for the public. He stated that staff would review the proposed funding structure, provide an overview of each project, and discuss the Board's potential commitment and associated funding terms. Mr. Stephen Calvert, Chief Financial Officer, provided an overview of the proposed funding plan, stating that the three projects are estimated to total approximately$47.9 million to $50 million in capital expenditures. He explained that the City proposes to fund these projects through a combination of sources, including approximately $11 million in existing General Fund savings WF4BSTC Minutes Page 4 of 8 3/5/2026 designated by the City Council, anticipated community support and contributions, and the issuance of approximately $26.9 million in Certificates of Obligation to finance the remaining costs. Mr. Calvert noted that each project represents a significant investment in the community and is intended to address long-term infrastructure and quality-of-life needs. He stated that additional details regarding the financing structure, including borrowing terms, would be presented later in the discussion. Kirby Middle School— Police Department Headquarters Mr. Blake Jurecek then provided an overview of the proposed Police Department Headquarters project, which involves the redevelopment of the former Kirby Middle School campus. He stated that the approximately 100,000-square-foot facility would be renovated to house the Police Department and Municipal Court, noting that the project represents an opportunity to repurpose an existing structure into a modern public safety facility. Mr. Jurecek outlined the anticipated project timeline, explaining that schematic design is currently underway and expected to be completed by June, followed by detailed design development through the fall. He stated that construction documents would be prepared thereafter, with the project anticipated to be bid in early 2027 and construction beginning shortly thereafter. He noted that the estimated construction timeline is between 18 months and two years, with a projected completion date between late 2028 and 2029. He further stated that preliminary work, including asbestos abatement and demolition planning, has already begun, and that staff will continue to engage Police Department personnel in the design process. Mr. Jurecek added that the City anticipates community support to assist in funding the project and will be pursuing contributions to supplement public funding sources. Mr. Calvert emphasized that securing funding at this stage would allow the City to accelerate the initiation of the proposed capital projects, noting that while each project will require significant time to complete, early funding commitments will help advance timelines and move the projects toward completion more efficiently. The Falls Renovation Mr. Russell Schreiber then provided an overview of the proposed renovations to The Falls, describing it as one of the City's most significant landmarks and emphasizing the need to improve both its functionality and aesthetic appeal. He noted that, in March 2025, the Board directed staff to evaluate options to enhance the reliability and appearance of the Falls, including increasing operational consistency outside of flood events. Mr. Schreiber explained that the Falls was shut down in September 2025 for evaluation, during which time significant structural and facade-related deficiencies were identified, including deterioration of the stone veneer. Although the Falls was briefly restarted, these issues necessitated another shutdown. He stated that a formal evaluation report was received in December 2025 outlining recommended improvements, and that in January 2026 the Board approved funding for design services, which are currently underway. He outlined the key components of the proposed project, which include replacement of pumps, electrical systems, and control systems; structural analysis and potential repairs following removal of the facade; safety improvements such as upgraded handrails; enhanced site lighting and landscaping; and installation of a water recirculation system to improve water quality and operational consistency. He also noted that improved access for maintenance is a critical component of the project, as current access is limited and inefficient. Mr. Schreiber reported that the estimated construction cost for the project ranges from WF4BSTC Minutes Page 5 of 8 3/5/2026 approximately $4 million to $6 million, including a contingency of approximately $2.1 million to address potential structural issues that may be discovered during construction. He further stated that the anticipated project timeline is approximately two years, with work beginning in 2026 and projected completion in 2028. Circle Trail Completion Mr. Calvert introduced the final project, noting the Circle Trail as a longstanding and valued community asset and emphasizing the importance of completing the remaining segment to fully realize the vision of the trail system. Mr. Tyson Traw, Director of Engineering, provided an overview of the proposed Lake Wichita section of the Circle Trail. He explained that the project represents the final remaining segment needed to complete the trail loop, consisting of approximately one mile along the shoreline of Lake Wichita. He noted that, once completed, the trail will form a continuous loop of approximately 24 miles, enhancing recreational opportunities and supporting future community events. Mr. Traw stated that the Circle Trail has been a long-term community project spanning approximately 40 years and that completion of this segment would mark a significant milestone. He further explained that the new section will connect existing trail segments from Lake Wichita Park to the current endpoint near Barnett Road, while maintaining the natural, off-road experience that users expect. He noted that the project includes environmental considerations, including navigating or mitigating wetland areas along the proposed route. As a result, the design will incorporate features such as bridges and environmentally sensitive construction methods. Mr. Traw provided a preliminary cost estimate of approximately $5.5 million, including $4.5 million for construction, approximately $75,000 for environmental permitting, and just under $500,000 for design. He noted that no additional right-of-way acquisition costs are anticipated, as the project will primarily be constructed on City-owned property, with only a minor section already acquired. He outlined the anticipated project timeline, stating that, upon securing funding, the project would begin with field studies and preliminary work, followed by environmental permitting and design. He estimated approximately four months for initial studies, eight months for permitting, ten months for design, and approximately twelve months for construction. He further noted that the project could be bid in late 2027, with anticipated completion in approximately October 2028. Board members and staff discussed the proposed timeline for the Circle Trail project, with Mayor Short noting the projected completion near the winter season. Mr. Traw explained that the proposed timeline is already considered optimistic, particularly due to the duration of environmental permitting and coordination with external regulatory agencies. He noted that while construction could potentially be accelerated, doing so would likely result in increased project costs. Mr. Barham raised concerns regarding potential impacts of concurrent large-scale construction projects in the region, including data center developments, on labor availability and material costs. Mr. Traw responded that while staff has reviewed regional trends and consulted with other cities, such impacts are difficult to quantify at this stage, though increased costs— particularly in certain trades—are anticipated. Further discussion among Board members highlighted concerns regarding rising costs for construction materials, particularly concrete, aggregates, and reinforcing steel, as well as competition for trucking and labor resources. It was noted that large projects, such as data WF4BSTC Minutes Page 6 of 8 3/5/2026 centers, often bring in external labor forces and may require dedicated material production, which could impact pricing and availability for local projects. Board members acknowledged that these market pressures may result in increased project costs beyond current estimates. Mr. Santellana summarized the importance of the three proposed projects, emphasizing their collective impact on public safety, community identity, and quality of life, including improved facilities for public safety personnel, restoration of a key city landmark, and completion of the Circle Trail. Proposed Funding Strategy Mr. Calvert then provided a summary of the proposed funding strategy. He reiterated that the City has already designated approximately $11 million in General Fund savings toward these projects and will seek additional community support through private contributions. He stated that the remaining funding would be addressed through the issuance of Certificates of Obligation, in an amount not to exceed $26.9 million. He explained that Certificates of Obligation would allow the City to move forward with the projects more quickly by providing upfront funding, rather than delaying projects through a pay- as-you-go approach. He noted that borrowing at this level is comparatively modest relative to other cities and emphasized that project costs are unlikely to decrease over time, reinforcing the benefit of proceeding with funding in the near term. Mr. Calvert then presented a detailed overview of the proposed financing strategy, emphasizing that, with anticipated support from the 4B Sales Tax Corporation, the City will not increase the property tax rate as a result of the proposed projects. He outlined the proposed timeline for financing, stating that the City Council would consider a resolution to publish notice of intent to issue Certificates of Obligation in March, followed by a required 45-day period before final approval in May. He noted that, if approved, funds would be available as early as June, allowing the City to begin project implementation. He further explained that the financing plan assumes issuance of up to $26.9 million in Certificates of Obligation, with repayment supported by a combination of property tax revenue and 4B sales tax funding. Under the proposal, approximately $600,000 annually would be funded through property taxes, with the remaining debt service to be supported by 4B. Mr. Calvert presented repayment term options of 30, 20, and 15 years, noting that shorter terms would reduce total interest costs but result in higher annual payments. He stated that the estimated annual 4B contribution would be approximately $1.08 million under a 30-year term, $1.39 million under a 20-year term, and $1.74 million under a 15-year term. He further explained that these amounts would represent approximately 18%, 23%, and 29% of 4B annual revenues, respectively, at their peak. He noted that, due to the fixed property tax contribution, 4B would fund a growing share of the total debt service over time, ranging from approximately 63% under a 30- year term to approximately 75% under a 15-year term. He also highlighted the strong financial position of 4B, including an unencumbered fund balance of approximately $6.2 million, equivalent to more than one year of revenues, and the scheduled payoff of several existing obligations in the coming years. He stated that these factors, combined with projected growth in sales tax revenues, would provide capacity to support the proposed debt while continuing to fund additional community projects. He concluded by emphasizing that the proposed financing approach would allow the City to move forward with critical infrastructure projects promptly, leverage existing reserves, and pursue additional community support, while maintaining financial flexibility for future initiatives. Mr. Barham asked for any further comments or questions from the Board and the public. WF4BSTC Minutes Page 7 of 8 3/5/2026 There being no further questions, Mr. Barham closed the public hearing at 4:07 p.m. 6. Executive Session. Mr. Barham adjourned the meeting into executive session at 4:08 p.m. pursuant to Texas Government Code sections 551.087, 551.071, and 551.072. He announced the meeting back into regular session at 5:01 p.m. The subjects posted in the Notice of Meeting were deliberated, and no votes or further action were taken on these items in executive session. 7. Consideration of a funding request from the City of Wichita Falls to support the Art Walk event downtown. Mr. Nick Schreiber made a motion to approve funding to the City of Wichita Falls to contract with Potencia Projects for the continuation of the Downtown Art Walk for 2026, for up to eight events at a cost not to exceed $25,363 per event, for a total one-year amount not to exceed $202,904. Seconded by Mr. Garner, the motion carried 7-0. 8. Consideration of a funding request from the City of Wichita Falls to assist in supporting several capital improvement projects including, but not limited to, the renovation of the former Kirby Middle School into the new Police Department Headquarters, The Falls renovation at 1-44 adjacent to the Wichita River, and the Lake Wichita section of the Circle Trail. Mr. Santellana made a motion to support the City of Wichita Falls capital improvement protects by committing an annual payment toward Certificates of Obligation, for a term not to exceed twenty (20) years and in an amount not to exceed $1.4 million per year. Seconded by Mr. Coleman, the motion carried 7-0. 9. Adjourn. No further discussions took place, nor actions taken. Mr. Barham adjourned the meeting at 5:03 p.m. Li4S)Ndv*—, Glenn Barham, President Wichita Falls 4B Sales Tax Corporation WF4BSTC Minutes Page 8 of 8 3/5/2026