Finance and Government Budget Committee Meeting #2

CITY OF GRAND PRAIRIE FINANCE AND GOVERNMENT COMMITTEE BUDGET MEETING #2 COUNCIL BRIEFING ROOM TUESDAY, JULY 30, 2024 AT 9:00 AM MINUTES CALL TO ORDER Chairwomen Clemson called the meeting to order at 9:03 a.m. PRESENT Chairwoman Mayor Pro Tem Jorja Clemson Deputy Mayor Pro Tem Junior Ezeonu ABSENT Council Member Kurt Johnson STAFF PRESENTATIONS 1. Presentation and Discussion of Proposed FY 2024-2025 Operating Budget  Opening remarks given by City Manager Bill Hills  Director of Management Services Thao Vo presented the Water/Wastewater Fund Overview noting this provides for the operation of the city’s water and wastewater systems, including maintenance, the purchase of water and wastewater treatments and utility billing. Discussion highlights were utility customer service data, CIP projects, utility operations, work orders completed in 2024, projects with streets and the water/wastewater key changes. Deputy City Managers Cheryl De Leon and Megan Mahan said the team did a good job to get the account to balance and are proud of Noreen’s team for being proactive in fixing the pipes that leak. Mr. Hills said the water leaks list id down to less than 100 because leaks are being prioritized by severity.  Mr. Vo presented the Solid Waste Overview noting the Solid Waste Fund accounts for the city’s landfill and garbage/recycling collection service, brush and litter collection, street sweeping, illegal dumping cleanup, Keep Grand Prairie Beautiful and auto related business programs. Discussion included the Solid Waste Program Overview, additional services provided and solid waste highlights. Chairwoman Clemson asked for additional information on the auto related business programs. Public Health and Environmental Quality Director Cindy Mendez said this is administered through Public Health Department and inspections are done by the Environmental Specialist and Code Compliance Officer. Finance and Government Committee Budget Meeting #1 – July 23, 2024 Page 1 of 6  Deputy Mayor Pro Tem Ezeonu inquired on the Republic Services increase and when the contract will expire. Ms. Mahan said they hope to have the increase information by the Budget Workshop. Mr. Hills said the contact with Republic will expire in 2028 and looking at a 10-year extension. Mr. Hills said the city is looking into a pilot program in the south sector of the city for cart service and afterwards move it further to the north sector of the city. Chairwoman Clemson thanks staff for a job well done.  Mr. Vo presented the Airport Overview noting the Grand Prairie Municipal Airport provides infrastructure to support general aviation services and flights for fixed wing and rotary wing aircraft. These services include air traffic control tower, flight training, maintenance and repairs of aircraft, hangars, air ambulance, a restaurant and an airport conference room. Discussion included airport highlights and airport key changes. Chairwoman Clemson asked how the airport restaurant is doing. Airport Director Mark Divita said it is doing well.  Budget Manager Krystal Crump presented the Employee Insurance Fund noting this accounts for all funding of health and wellness related benefits and services for both employee and retirees, such as medical, dental, vision, life, disability and the employee assistance program. Discussion included the employee insurance key changes. Chairwoman Clemson asked if there is an insurance increase to the employees. Human Resources Director Tasha Camacho said there will not be an insurance increase to employees. Deputy Mayor Pro Tem Ezeonu said currently trending to be under budget for insurance claims and services. Ms. De Leon answered in the affirmative and commended the employees for their efforts.  Ms. Crump presented the Risk Management Fund noting this accounts for all funds collected through internal service rates for workers’ compensation, property, and liability insurance indemnity. Risk Management is managed cooperatively between the City Attorney’s Office and Human Resources. Discussion included Risk Management key changes. Deputy Mayor Pro Tem Ezeonu asked for clarification presented on the Auto Catastrophic Policy (hail, flood, fire, tornado) reduction of $107,000 premium paid to TML.  Mr. Vo presented the General Fund Overview noting this is a governmental fund that provides funding for four types of basic operating services: Public Safety, Recreation and Leisure, Support Services and Development and Other Services. Mr. Vo said the General Fund is supported by property taxes, sales taxes, and other fees/charges and a 2% increase in propped sales tax revenues. Discussion included the Property Tax Overview, Sales Tax Financial Management Policy, General Fund Expenditures. Mr. Hills gives an explanation of the budget shortfall adding the 2024 budget becomes a transitional budget year. Ms. De Leon gives a brief explanation of Tier 3 of the Sales Tax Financial Management Policy. Chairwoman Clemson said she would share an idea with staff on a public art project for the Ruthe Jackson Center at a later time. Finance and Government Committee Budget Meeting #1 – July 23, 2024 Page 2 of 6   Mr. Vo presented the Debt Service Overview noting this is primarily funded from taxes and interest earnings to meet the requirements of General Obligation Debt Service and Reserve. EpicCentral debt partially funded here and with a transfer from EpicCentral Fund and Lake Parks debt paid here but funded by transfer from the Lake Parks Fund. Discussion included Debt Service key changes. Explanation given on what is a tax note and what the certificates of obligation can be used for.  Ms. Crump presented the Equipment Acquisition Overview noting this may be used to purchase capital outlay wen the unit purchase price is $10,000 or more and the useful life is at least two years. Major purchases include replacement vehicle for the General Fund, including Engineering Services, Fire, Police, Public Health, and Transportation, as well as Special Revenue Funds like Lake Parks, Cemetery, Golf, Parks, Fleet and EpicCentral. Discussion included Equipment Acquisition key changes noting FY2024/2025 proposed budget is for equipment units and 72 vehicles, to include the “make-ready” costs associated with the acquisitions, and these purchases will be funded with a Tax Note. Chairwomen Clemson called a recess and reconvened at 10:10 a.m.  Ray Cerda Parks, Art and Recreation Director and Stephen Bowles, Parks, Art and Recreation Fiscal Manager, provided an overview of the Park Venue funds are supported by revenue from a ¼ cent Parks Venue Sales Tax, general fund transfers, user fees, and grants. The Park Venue Fund finances the maintenance and operations of 56 parks, covering 5,083 acres of parkland, as well as various recreational services throughout Grand Prairie, including key venues like The Summit, Ruthe Jackson Center, Tony Shotwell Life Center, Dalworth Recreation Center, and Charley Taylor Recreation Center. The fund, classified as a special revenue fund, supports 91 full-time, 104 part-time, and 89 seasonal staff. Recent developments include the opening of Turner, Tyre, and Mi Familia Parks with Phase I improvements. The 2024 Main Street Fest has been nominated for the Best DFW Music Festival by the Dallas Observer. Seasonal pools achieved 100% utilization for all scheduled days of operation, and a partnership with Chicken N’ Pickle was formed to offer pickleball access to residents. Upcoming plans include new special events at the Farmers Market, such as Meat on Main and Pickle Fest, Phase II improvements to Tyre Park in Fall 2024, and the installation of six National Fitness Campaign courts also, scheduled for Fall 2024.  Ray Cerda Parks, Art and Recreation Director and Stephen Bowles, Parks, Art and Recreation Fiscal Manager, and Rod Hayes, Parks and Recreation Superintendent presented an overview of the Neighborhood Recreation Center funds, which are supported by the Parks Venue Fund and user fees. The funds cover the Tony Shotwell Life Center, Dalworth Recreation Center, and Charley Taylor Recreation Center, which provide recreation programs, after-school care, and safe zones for children and teens, offering families access to activities and events within their neighborhoods. These centers employ 9 full-time, 26 part-time, and 24 seasonal staff. Year-to-date, the centers have 1,946 members and recorded 98,676 visits. The afterschool program serves 60 children. A new Pickleball Pass offers universal access to all recreation centers. The Dalworth Recreation Center hosted a basketball camp with the Texas Legends, and 10 new tournaments were added to the athletics program. Recent upgrades include new AV equipment for the meeting room at the Tony Shotwell Life Center, new playground equipment at Charley Taylor Recreation Center, and roof replacements at both the Tony Shotwell Life Center and Dalworth Recreation Center. Finance and Government Committee Budget Meeting #1 – July 23, 2024 Page 3 of 6   Ray Cerda, Parks, Art and Recreation Director, Stephen Bowles, Parks, Art and Recreation Fiscal Manager, and Halima Baquedano, The Summit Manager, presented an overview of The Summit's funding, which comes from the Parks Venue Sales Tax and user fees. The Summit, Grand Prairie's premier center for active adults aged 50 and above, offers a range of amenities and activities to promote health and well-being. The facility is supported by 15 full-time employees, 30 part-time employees, and 50 volunteers, with a membership of 8,315. Annually, it provides over 24,000 meals through its congregate meal program. Recent upgrades include new gymnasium and ballroom flooring, improved lighting, updated furniture in the lobby and café, and modernized kitchen equipment. Additionally, a new ADA-accessible 12-passenger bus and golf carts have been acquired for shared use with Epic Recreation. Chairwoman Clemson inquired about the possibility of increasing fees for non-residents or grandfathering current members at the existing rate. Deputy City Manager Megan Mahan noted that the Legal team would review the options. Deputy Mayor Pro Tem Ezeonu raised concerns about the meal program's restriction to Dallas County Grand Prairie residents. Mrs. Baquedano explained that the program is funded by Dallas County, and Tarrant County has opted not to participate, though The Summit provides an alternative program for other residents in need. City Manager Bill Hills added that the meal program originally started at Dalworth Recreation Center and that Tarrant County had been invited to participate multiple times.  Ray Cerda, Parks, Art and Recreation Director, Stephen Bowles, Parks, Art and Recreation Fiscal Manager, and Cheryl Allgood, Venue Manager, provided a summary of the Ruthe Jackson Center's (RJC) funding and activities. Funded to support Grand Prairie's premier venue for weddings, corporate events, and other gatherings, the 18,500-square-foot facility includes an 8,500-square-foot ballroom, conference room, board room, and outdoor garden space. The center is staffed by 5 full-time and 5 part-time employees. In FY24, the RJC hosted 108 weddings and social events as well as 207 corporate events, earning both the 2024 Best of The Knot Award and the 2024 Couples Choice Award. Recent improvements include a complete garden renovation with a new landscape design and artificial turf, the acquisition of 400 new ballroom chairs, and a new stage with an ADA-accessible ramp. Deputy Mayor Pro Tem Ezeonu expressed support for the RJC's decision to allow outside catering, which accommodates guests who prefer multi-cultural cuisine. Mrs. Allgood confirmed that the venue has mitigated the cost of outside catering by adjusting the venue charge from $9,000 to $4,000.  Chip Nami, Downtown / Community Services Manager, updated the committee on the community theater funded by the Parks Venue Fund. This historic venue, managed by 2 full- time employees, offers a diverse range of events, including concerts, musicals, stage plays, and dance performances. The Grand Prairie Arts Council (GPAC) uses 60% of the theater's rental dates. Recent efforts have focused on increasing community rentals and ticketed events, with notable recent events including a Special Needs Conference and Sensory Friendly Family Night. Significant upgrades to the Charles Luckert Gallery and Memorial include improved sound and lighting systems and a refresh of backstage areas. Chairwoman Clemson suggested reviewing the possibility of adjusting the Arts Council's usage to a 50:50 split, which could increase availability for city use and potentially bring in more revenue on select weekends. Mr. Nami agreed that this change could provide 4-5 additional weekends for city events. Deputy Mayor Pro Tem Ezeonu expressed interest in presenting alternative ideas to the Council if this adjustment is not pursued. Finance and Government Committee Budget Meeting #1 – July 23, 2024 Page 4 of 6   Ray Cerda, Parks, Art and Recreation Director, Stephen Bowles, Parks, Art and Recreation Fiscal Manager, and Chris Ginapp, Supervenue Manager provided an overview of the EPIC and EPIC Waters funds. These funds, supported by a ¼ cent Epic sales tax and user fees, provide ongoing funding for the maintenance and capital needs of Epic Rec and Epic Waters. The special revenue fund supports 23 full-time, 95 part-time, and 25 seasonal staff for Epic Rec, while Epic Waters is managed by American Resorts Management (ARM). The Epic Recreation Center has 12,391 members year-to-date, generating $1.33 million in revenue and over 309,000 visits. New partnerships with organizations such as the Grand Prairie Arts Council, Asia Times Square, MPX Wrestling, tabletop gaming groups, Bluewave fitness, and 1310 The Ticket have been established to offer unique events. Rental revenues have increased by 42% year-over-year, totaling $231,000 through June, due to enhanced efforts to utilize rentable space. The center also averaged 120 children per week for summer programming and will replace the multipurpose court floor in August 2024. Attendance reached 199,770 through June, with a record high in March of 43,771 visitors. Per capita spending increased by $2.16, averaging $50.63 per guest. EPIC Waters was ranked #2 in USA Today's Top Ten Waterparks. A new partnership pass with Boulder Adventure Park has sold over 5,000 units year-to-date. The fund also contributed over 100 bicycles to the Santa Cop program and participated in the "Stuff The Bus" campaign to collect school supplies for GPISD. An engineering study was commissioned to identify future maintenance needs.  Cheryl De Leon, Deputy City Manager and Zane King Creative Producer, presented an overview of the EPIC Central funds, which are financed by rent generated from restaurants, hotels, and the conference center to support operations and maintenance. This special revenue fund supports activities such as 35 concerts scheduled at the Jambox and 13 events or festivals on the Lawn in 2024. On average, the site hosts 2,000 guests per hour during the evenings. Revenue is expected from hotel and conference center proceeds, as well as transfers from other funds, to support EPIC Central debt. New program requests include a marketing campaign, landscaping services from Yellowstone, and maintenance contracts for PlayGrand, along with the addition of two full-time personnel: an Operations Supervisor and a Senior Trade Technician. Recent successes include watch parties for Cricket and the Mavs, with upcoming Cowboys watch parties planned in collaboration with restaurants. Upcoming events and activities include Texas Monthly events, Texas Country Reporter, Taco Festival, BBQ Festival, new projection shows in production, and new portal animations and interactions.  Ray Cerda, Parks, Art and Recreation Director, Stephen Bowles, Parks, Art and Recreation Fiscal Manager, provided an overview of the Lake Parks funds, which are allocated to cover the operating expenses for Lynn Creek Park, Loyd Park, and Britton Park. This special revenue fund supports 24 full-time, 6 part-time, 30 seasonal employees, and 16 volunteers. Year-to-date, Lynn Creek Park recorded 18,945 paid vehicle entries, while Loyd Park had 24,613. Loyd Park was ranked the 3rd best campground in Texas by Texas Outside Magazine and reached full capacity during events like the Forest of Fear and the Chili Cook-Off. Recent improvements include upgrades and renovations to cabins at Loyd Park, the replacement of canopies and picnic benches at Lynn Creek's beach area, and the installation of a new point-of-sale system at its gate entry. Lynn Creek also hosted 8 high school and college cross-country events. Chairwoman Clemson asked if they were working on remodeling the cabins and staff confirmed all eight would be renovated. Finance and Government Committee Budget Meeting #1 – July 23, 2024 Page 5 of 6   Ray Cerda, Parks, Art and Recreation Director, Stephen Bowles, Parks, Art and Recreation Fiscal Manager, presented an overview of the Golf Venue funds, which are designated for the maintenance and operation of Tangle Ridge Golf Club and Prairie Lakes Golf Course, including the pro shop at Prairie Lakes. The fund, classified as an enterprise fund, supports 20 full-time, 22 part-time, and 16 seasonal employees. As of the current year, Prairie Lakes Golf Course has hosted 45,060 rounds, while Tangle Ridge Golf Club has seen 36,223 rounds played. Tangle Ridge was also recognized as the 19th-best golf course in Texas by NBC’s Golf Now. Recent updates include the introduction of Crowns BBQ as a new vendor at Prairie Lakes, kitchen renovations, new patio dining area, a new front entry gate, and parking lot enhancements at Tangle Ridge, as well as roof replacement and parking lot improvements at Prairie Lakes.  Ray Cerda, Parks, Art and Recreation Director, and Stephen Bowles, Parks, Art and Recreation Fiscal Manager, provided an overview of the Prairie Lights fund, which supports the setup and operation of the holiday light park at Lynn Creek Park on Joe Pool Lake. This major attraction for Grand Prairie draws visitors from across the Metroplex and beyond, offering a festive, family-oriented experience. Classified as a special revenue fund, it covers the costs for full-time staff and 30 seasonal employees. In FY 2023/2024, the event generated over $1.86 million in revenue, attracted more than 30,000 vehicles and 150,000 guests, and achieved a 96% customer satisfaction rate based on onsite surveys. A coupon for Grand Prairie residents was successfully introduced, and the event received 3.9 million media impressions through various television, radio, online articles, and social media channels. New attractions and enhancements are planned for 2024. Deputy Mayor Pro Tem Ezeonu inquired about a potential increase in the event price, and Mr. Cerda confirmed that there would be no increase, emphasizing that it was deemed unnecessary, and that the resident coupon would continue. EXECUTIVE SESSION No executive session was held. CITIZEN COMMENTS There were no citizen comments. ADJOURNMENT Chairwoman Clemson adjourned the meeting at 2:47 p.m. The foregoing minutes were approved at the September 3, 2024, Finance and Government Committee meeting. Chairwoman Jorja Clemson Finance and Government Committee Budget Meeting #1 – July 23, 2024 Page 6 of 6