1 00:00:00,000 --> 00:00:07,000 one. Good morning to our hundreds of adoring fans. I'm sure who are watching this meeting 2 00:00:07,000 --> 00:00:12,040 of the Community Partnership Committee of the Denton City Council. If you are watching, 3 00:00:12,040 --> 00:00:16,200 thank you and let me know because that'd be very interesting to know who's out there watching 4 00:00:16,200 --> 00:00:21,160 us on the internet. We're going to start off our agenda this morning. I should note that 5 00:00:21,160 --> 00:00:28,920 it's Thursday, March the 18th, 2021, and our first item for consideration is 1A, hold the 6 00:00:28,920 --> 00:00:35,200 discussion and elect a committee chair and vice chair. And, Randy, is there really anything 7 00:00:35,200 --> 00:00:41,120 that we need to go over there other than to point out that we do this annually? The committee, 8 00:00:41,120 --> 00:00:45,720 it's a committee of three people. Right now, it's myself, Council Member Johnson of District 9 00:00:45,720 --> 00:00:50,480 1 and Council Member Connie Baker of District 2. We elect a chair each year, someone to 10 00:00:50,480 --> 00:00:55,080 preside over our meetings. The meetings are usually pretty informal, but then we also 11 00:00:55,080 --> 00:01:01,860 elect a vice chair in the event the chair is unable to attend and preside. So I'll open 12 00:01:01,860 --> 00:01:11,440 the floor for nominations for chair. Allow me to nominate Councilman Baker since he's 13 00:01:11,440 --> 00:01:20,940 not here and that we can vote him in. Oh my gosh. Well, I'd hesitate to do that just because 14 00:01:20,940 --> 00:01:25,520 he's not here, just because we don't know if he's willing to serve or not. We haven't 15 00:01:25,520 --> 00:01:31,920 heard from him yet this morning. Well, sir, you have done a good job, so how about we 16 00:01:31,920 --> 00:01:39,320 nominate Councilman Baker? I mean, Councilman Desi Davies. Thank you, Council Member Johnson. 17 00:01:39,320 --> 00:01:45,480 I'll accept your nomination. And not anticipating any other further nominations, I'll close 18 00:01:45,480 --> 00:01:55,000 nominations and move on to a vote. Council Member Johnson, how do you say? Yes. And the 19 00:01:55,000 --> 00:02:01,280 chair is an aye, so I will remain as chair of this subcommittee. And Council Member Johnson, 20 00:02:01,280 --> 00:02:09,520 would you like to serve as vice chair or? Yes. Yes, sir. That would be great. I will 21 00:02:09,520 --> 00:02:15,720 nominate you as vice chair, and then we'll move on to a vote. Council Member Johnson? 22 00:02:15,720 --> 00:02:22,080 I accept. Me. And the chair is an aye, so Council Member Johnson, you'll serve as vice 23 00:02:22,080 --> 00:02:28,040 chair. And I think you'll enjoy that role, too. This committee is involved in supporting 24 00:02:28,040 --> 00:02:34,600 a lot of the community stuff that I know that you're also very much in support of. That 25 00:02:34,600 --> 00:02:43,760 moves us to item 1B, considering approval of the minutes from July 20th, 2020. Those 26 00:02:43,760 --> 00:02:49,280 have been posted on our website along with the agenda and provided to the committee members. 27 00:02:49,280 --> 00:02:53,520 Council Member Johnson, do you have any changes to the minutes, or would you move their approval 28 00:02:53,520 --> 00:02:59,760 if you don't? I move their approval. And I will second. Council Member Johnson, how do 29 00:02:59,760 --> 00:03:05,200 you say? Yes. And the chair is an aye, so the minutes are approved. That moves us to 30 00:03:05,200 --> 00:03:10,000 item 1C, receive a report, hold discussion, and consider approval of an annual meeting 31 00:03:10,000 --> 00:03:16,840 schedule. Thank you. Per the city's ordinance, each committee needs to set a schedule for 32 00:03:16,840 --> 00:03:23,440 the fiscal year. And we do that normally in the first meeting that we meet in the calendar 33 00:03:23,440 --> 00:03:28,640 year. As you've noticed in your backup, it's only three meetings that we dedicate onto 34 00:03:28,640 --> 00:03:33,320 our agenda. We have the current meeting that we're in today, which is just an informal 35 00:03:33,320 --> 00:03:39,000 meeting about information about the programs. We will have a kickoff meeting April 22nd 36 00:03:39,000 --> 00:03:42,880 for the next program year, where we talk about applications and guidelines and things like 37 00:03:42,880 --> 00:03:48,640 that for our next process. And then in June, we get back together and talk about funding 38 00:03:48,640 --> 00:03:53,120 for that program year. So those are the three main meetings that we are required to have, 39 00:03:53,120 --> 00:03:58,180 and we'll put on the calendar for you to approve today. But we can make any additions and add 40 00:03:58,180 --> 00:04:03,520 any meetings as necessary throughout the year. But these are the three that we know we want 41 00:04:03,520 --> 00:04:09,400 to have and need to have for the program can continue on and move forward. So those dates 42 00:04:09,400 --> 00:04:16,480 are provided in your backup as today, April 22nd, today's date, April 22nd, and then June 43 00:04:16,480 --> 00:04:24,240 24th. Council Member Johnson, are those meeting dates 44 00:04:24,240 --> 00:04:28,240 acceptable to you? I move that they be accepted. 45 00:04:28,240 --> 00:04:32,000 I will second. And Council Member Johnson, are you an aye? 46 00:04:32,000 --> 00:04:34,760 Aye. The Chair is an aye and the annual meeting 47 00:04:34,760 --> 00:04:41,140 dates are approved. That moves us to item 1D, receive a report and hold discussion regarding 48 00:04:41,140 --> 00:04:49,120 the hotel occupancy tax and sponsorship programs. Great. We have a short presentation for you 49 00:04:49,120 --> 00:05:01,720 today. And let me share my screen before I do that. I guess that's a good idea. Okay, 50 00:05:01,720 --> 00:05:16,320 get to full view here. Okay. Is everybody on board with this presentation 51 00:05:16,320 --> 00:05:19,640 here? Yes. Awesome. Yes. 52 00:05:19,640 --> 00:05:26,320 So this is the overview that I spoke with earlier before we started about the hotel 53 00:05:26,320 --> 00:05:31,060 occupancy tax program and the sponsorship program, which are the two main programs that 54 00:05:31,060 --> 00:05:37,080 this committee oversees. So we're basically going to go over the HOT and the sponsorship 55 00:05:37,080 --> 00:05:41,520 program separately. And then there's a slide in between in the slide deck so we can talk 56 00:05:41,520 --> 00:05:45,440 about the HOT program if you have any questions. And then we'll move on to sponsor with questions 57 00:05:45,440 --> 00:05:51,080 at the end of that or any time throughout that you have a question, feel free to join 58 00:05:51,080 --> 00:05:57,760 in and let me know what you have going. So the HOT program, hotel occupancy tax, is based 59 00:05:57,760 --> 00:06:04,040 on the state statute 35101 on expenditures. There's also a state tax on the revenue that 60 00:06:04,040 --> 00:06:09,920 we receive from all of our hotels. But annually what we do in the HOT kickoff, which we will 61 00:06:09,920 --> 00:06:15,640 have in April, is review the guidelines and the applications for the HOT program that 62 00:06:15,640 --> 00:06:21,440 are already in existence and then looking to see if the committee or staff or anybody 63 00:06:21,440 --> 00:06:27,200 that participates throughout the year has provided us with any feedback or items of 64 00:06:27,200 --> 00:06:32,520 concern through the guidelines or the contract that may have challenges. So we present you 65 00:06:32,520 --> 00:06:38,000 with a red line of those items for you to review that we can update for the upcoming 66 00:06:38,000 --> 00:06:44,440 program year. Once we approve those applications and guidelines, they are put out on the city's 67 00:06:44,440 --> 00:06:49,680 website and also emailed to current and past recipients to give anybody an opportunity 68 00:06:49,680 --> 00:06:55,240 that is still interested in participating, the time to submit the applications. They 69 00:06:55,240 --> 00:07:01,160 come to the committee and the committee annually reviews those and makes funding recommendations 70 00:07:01,160 --> 00:07:07,180 in June. So we go through the applications, you have those in your backup, you can review 71 00:07:07,180 --> 00:07:11,480 all the questions and answers, and then when we come to the committee, we have a fund balance 72 00:07:11,480 --> 00:07:15,600 sheet where you can see the actuals for the previous year, what the budget looks like 73 00:07:15,600 --> 00:07:19,640 for the current year, and then what the ask is of the recipients for the next program 74 00:07:19,640 --> 00:07:28,160 year. Staff produces the fund balance sheet, which we project revenues and establish the 75 00:07:28,160 --> 00:07:33,400 funding levels for you guys to review during that meeting. And then the HOT recipients 76 00:07:33,400 --> 00:07:40,420 provide quarterly reports to finance 30 days after each end of quarter. The HOT program 77 00:07:40,420 --> 00:07:47,280 begins January 1st and ends December 31st, so runs in the program year, calendar year, 78 00:07:47,280 --> 00:07:54,640 excuse me. See how if I could minimize you guys over here. Hopefully I don't lose you. 79 00:07:54,640 --> 00:08:01,520 There you go. Okay. The contracts are approved by council after your recommendations are 80 00:08:01,520 --> 00:08:08,600 made in the August budget work session. And the contracts include the approved budget, 81 00:08:08,600 --> 00:08:14,200 which you've reviewed during your committee meetings. The use of funds with all the state 82 00:08:14,200 --> 00:08:22,280 statute recognizes what we call categories, such things as advertising, art, history, 83 00:08:22,280 --> 00:08:26,760 convention center, convention registrants. The use of funds will be itemized in exhibit 84 00:08:26,760 --> 00:08:33,240 A in the budget attached to each contract. The contract also illustrates how that particular 85 00:08:33,240 --> 00:08:38,080 recipient will be paid out. Majority of our recipients are paid out quarterly, but we 86 00:08:38,080 --> 00:08:43,520 do have a few that get paid twice a year and a handful that are paid with lump sums. Depends 87 00:08:43,520 --> 00:08:49,480 on the total contract amount. It also depends on possibility of where their event is in 88 00:08:49,480 --> 00:08:54,480 the calendar year. So we have a couple that have already happened in the first quarter. 89 00:08:54,480 --> 00:08:59,040 And so having some of their money or all of their money, depending on the contract term 90 00:08:59,040 --> 00:09:03,840 in this first quarter really assists them to put on a better program with having their 91 00:09:03,840 --> 00:09:09,580 money upfront. In the payout section of the budget of the contract, it also shows that 92 00:09:09,580 --> 00:09:15,100 reductions of current budgets can occur during the contract period at any time. If we foresee 93 00:09:15,100 --> 00:09:20,760 any shortfalls in our estimates, for example, last year, you know, we had this conversation 94 00:09:20,760 --> 00:09:26,080 in the summer due to the COVID pandemic, you know, how are we going to adapt? One of the 95 00:09:26,080 --> 00:09:31,640 options we could have done is reduce the contract during the year. We chose not to do that and 96 00:09:31,640 --> 00:09:36,000 the recipients were grateful and we had a lot of discussions, but that is a possibility 97 00:09:36,000 --> 00:09:40,320 and it is in each contract. It's also in each contract that at the end of your calendar 98 00:09:40,320 --> 00:09:45,760 year, if you have not used the funds for the hot purpose that was intended, those funds 99 00:09:45,760 --> 00:09:51,160 are due back to the city and create a refund for the next year. It also has the quarterly 100 00:09:51,160 --> 00:09:56,700 reporting procedures that each recipient must do every quarter, 30 days after the quarter. 101 00:09:56,700 --> 00:10:01,800 There's a financial report, expenditure detail report, and some banking information to show 102 00:10:01,800 --> 00:10:06,240 that those checks and credit card payments have cleared their bank and went to the proper 103 00:10:06,240 --> 00:10:12,640 vendor as noted in their information. And then it also has the terms of the contract. 104 00:10:12,640 --> 00:10:17,760 We have three internal recipients and what we consider as an internal recipient is some 105 00:10:17,760 --> 00:10:23,360 that we don't contract with or cannot contract with. So the Parks and Recreation Department 106 00:10:23,360 --> 00:10:29,580 of the city currently oversees three applications and three processes, and that's for the Public 107 00:10:29,580 --> 00:10:36,800 Art Committee, who by resolution receives 2.4% of the estimated hotel revenue every year, 108 00:10:36,800 --> 00:10:41,880 and that is the minimum that they can receive. They can be allotted more and they have asked 109 00:10:41,880 --> 00:10:47,300 for less in the past when they've had a bunch of projects that are needing to be completed 110 00:10:47,300 --> 00:10:52,600 and they just can't take on anymore at that point. And so we've allotted them less when 111 00:10:52,600 --> 00:10:57,960 they've asked for less, but they are required to get 2.4% of the actual revenue. The Civic 112 00:10:57,960 --> 00:11:02,480 Center also is one of the recipients that we consider internal and then the Water Works 113 00:11:02,480 --> 00:11:07,800 Park. Those are the three internals. They still apply. They go through the same process. 114 00:11:07,800 --> 00:11:14,400 They just do not have a contract, and the only caveat is they run by our fiscal year. 115 00:11:14,400 --> 00:11:20,640 Their funds are already in the city's budget, so they use check recs, P cards, purchase 116 00:11:20,640 --> 00:11:26,840 orders, all the rules and regulations that the city uses to expend funds. They do that 117 00:11:26,840 --> 00:11:31,280 in the same manner, so they have to follow the fiscal year along with the rest of the 118 00:11:31,280 --> 00:11:41,440 expenses. And this is the best way I could illustrate how the city's fiscal year, when 119 00:11:41,440 --> 00:11:47,600 we receive the revenue from the hotels, looks versus how we pay out the hotel revenue to 120 00:11:47,600 --> 00:11:54,280 the recipients. So the hot revenue for quarter one is received by the city October through 121 00:11:54,280 --> 00:12:02,280 December of 2020, and then we pay it out in the first calendar month of the contract. 122 00:12:02,280 --> 00:12:07,160 So for January, that's when recipients start their contract year, and that's where they 123 00:12:07,160 --> 00:12:12,440 receive their first allocation, and then they can use it in their first quarter, which is 124 00:12:12,440 --> 00:12:17,960 January through March. We move to quarter two. It's the same thing. We take three months 125 00:12:17,960 --> 00:12:22,820 of revenue from the hotels. Once we've collected that money, then we have the opportunity and 126 00:12:22,820 --> 00:12:29,120 by contract, we pay it out 25 days after that quarter. Then the recipients have three months 127 00:12:29,120 --> 00:12:33,320 to expend it. Now they can accumulate all this money as they go. If they don't have 128 00:12:33,320 --> 00:12:39,560 an event until December, oops, sorry, if they don't have an event in December or wherever, 129 00:12:39,560 --> 00:12:44,240 they can build that money up, but most of them have expenses that they need to pay prior 130 00:12:44,240 --> 00:12:50,720 to it. It doesn't all come during or after their event. So if the recipient gets $10,000, 131 00:12:50,720 --> 00:12:54,600 they don't have to spend it in that quarter. They can spend five, or they can spend nothing, 132 00:12:54,600 --> 00:12:58,400 and it just rolls over till the next quarter, as long as they expend everything by December 133 00:12:58,400 --> 00:13:07,560 31st. So I will jump down to Q4. This is just an internal note, but just so that we understand 134 00:13:07,560 --> 00:13:12,100 how the process works, because during this quarter for the recipients, they're already 135 00:13:12,100 --> 00:13:17,560 in our new fiscal year, which is not relevant to them, but so that our budget books are 136 00:13:17,560 --> 00:13:23,440 correct and our accounting is correct, the July, August, and September money that I received 137 00:13:23,440 --> 00:13:29,920 from Hot Funds, I go ahead and I cut those checks that need to go out to the recipients, 138 00:13:29,920 --> 00:13:34,600 but so they're in our current fiscal year, I cut them and I hold them, because I'm not 139 00:13:34,600 --> 00:13:40,800 due to pay those to my recipients until October, their last quarter, but so we get them on 140 00:13:40,800 --> 00:13:44,200 our books, I go ahead and cut them in September, hold them, and then issue them to everybody 141 00:13:44,200 --> 00:13:51,160 in October. And that's how we cross the line between their calendar year and our fiscal 142 00:13:51,160 --> 00:13:56,800 year, and make sure that our expenses for the city are going out in our fiscal year 143 00:13:56,800 --> 00:14:02,720 four quarters, but they're allotted to them properly in their four quarters of their calendar 144 00:14:02,720 --> 00:14:09,200 year. That's a lot to keep up with, so I have to keep it up in my head, too. So the Hot 145 00:14:09,200 --> 00:14:14,800 Program timeline, we have a March meeting, which we're here today, to elect chair, look 146 00:14:14,800 --> 00:14:18,760 at the meeting schedule, and any outstanding items, you know, we may have in place that 147 00:14:18,760 --> 00:14:23,120 we need to discuss or want to discuss from the last meeting. The last time we did meet 148 00:14:23,120 --> 00:14:29,840 was July of last year. April is what I consider a kickoff meeting for the next program year, 149 00:14:29,840 --> 00:14:33,960 when we get together and talk about the applications that are going to be distributed and placed 150 00:14:33,960 --> 00:14:41,880 on the website. And then in May is the opportunity for all the applicants to review the guidelines 151 00:14:41,880 --> 00:14:48,040 and the applications and complete those, ask any questions they have. The Treasury staff, 152 00:14:48,040 --> 00:14:52,260 we're here to work with them, how their budget should look, you know, maybe they're having 153 00:14:52,260 --> 00:14:57,280 a hard time on what to request, and we are here to walk through that process. We just 154 00:14:57,280 --> 00:15:00,920 don't want to throw the applications out there and just let them figure it out. A lot of 155 00:15:00,920 --> 00:15:05,680 the applications have had a lot of, applicants have had a lot of practice, so they've done 156 00:15:05,680 --> 00:15:10,360 this a lot, but there's, you know, some constraints on finances sometimes and where they want 157 00:15:10,360 --> 00:15:15,120 to spend it and maybe how they can adapt their general fund to help out their ask for the 158 00:15:15,120 --> 00:15:20,920 hot funds. So we're here to do that for them and we're always available. Once the application 159 00:15:20,920 --> 00:15:27,040 is closed, that due date in May, it is a hard close. The committee last year made a decision, 160 00:15:27,040 --> 00:15:32,340 a formal decision that once that deadline is received, no more applications will be 161 00:15:32,340 --> 00:15:38,760 accepted throughout that calendar year for that program year. So in June, when that meeting 162 00:15:38,760 --> 00:15:43,640 is closed and y'all have decided what your recommendations are for the council, then 163 00:15:43,640 --> 00:15:50,000 there will be no more opening of that budget and that availability of funds. If we have 164 00:15:50,000 --> 00:15:55,640 any or we don't have any money to allocate. So that is just a stance that this committee 165 00:15:55,640 --> 00:16:01,920 has taken for ease of administrating the program. So you know the money that you have, you know 166 00:16:01,920 --> 00:16:05,240 the money that users spend, and then you know the contracts that you're going to work throughout 167 00:16:05,240 --> 00:16:11,200 the year. So in June, you will review the applications and the budget requests. You'll 168 00:16:11,200 --> 00:16:17,240 discuss them and make a budget recommendation to council. And it is up to the committee 169 00:16:17,240 --> 00:16:22,160 on how they want to review them during that meeting. You'll have all the backup information 170 00:16:22,160 --> 00:16:28,760 before that. We itemize each applicant out on your fund balance sheet. So you will see 171 00:16:28,760 --> 00:16:34,400 each request, what they had last year, what they asked going in. We make a recommendation 172 00:16:34,400 --> 00:16:42,000 and it goes to the budget work session in August. And there's not a lot of time spent 173 00:16:42,000 --> 00:16:45,680 on it in the budget work session. Usually it might be one slide and it'll just kind 174 00:16:45,680 --> 00:16:50,160 of give you an overview that the committee has recommended this. And it's let's just 175 00:16:50,160 --> 00:16:55,240 say 2.1 million dollars in expenses this year. And we give the opportunity to the council 176 00:16:55,240 --> 00:17:01,680 to ask any questions at that time. In August, once that meeting occurs on the budget work 177 00:17:01,680 --> 00:17:06,800 session, I wait a couple of days, make sure there's no follow-up questions from the council 178 00:17:06,800 --> 00:17:13,240 or the committee. And then we get an applicant notification of what has been recommended 179 00:17:13,240 --> 00:17:17,840 by the committee to the council, and that the contracts will be forthcoming for them 180 00:17:17,840 --> 00:17:22,280 to review. So at that time, they just get a nice letter that you have been reviewed. 181 00:17:22,280 --> 00:17:26,440 This is the dollar amount that the committee has recommended, and then the contracts will 182 00:17:26,440 --> 00:17:33,700 be forthcoming. And at that time, if the committee has directed me or we need to go back and 183 00:17:33,700 --> 00:17:39,160 ask them, you know, you asked for 50,000, you're getting 45,000, please submit me a 184 00:17:39,160 --> 00:17:43,800 new budget reflective of the $45,000. And that gives a little time for them to review 185 00:17:43,800 --> 00:17:47,800 the actual amount that they're going to receive it and kind of allocate it differently if 186 00:17:47,800 --> 00:17:53,560 there needs to be that done with their difference in what they've asked. And then in October, 187 00:17:53,560 --> 00:17:57,200 we'll get the organizations their contracts, they'll review them, they'll sign them and 188 00:17:57,200 --> 00:18:02,400 they'll return them back to finance. And then November is our target date for contracts 189 00:18:02,400 --> 00:18:07,600 to go to council. And that is a target date. This last year, you saw them in December. 190 00:18:07,600 --> 00:18:13,760 So it really is just about how soon the contracts can be returned to us from their committees 191 00:18:13,760 --> 00:18:16,920 they have to meet with their boards, you know, they also have to get with the commissioners 192 00:18:16,920 --> 00:18:22,600 court. So there's a process for our recipients as well. December is not too late. They don't 193 00:18:22,600 --> 00:18:28,160 start till January. So as long as I have time to enter their contracts into the JD system, 194 00:18:28,160 --> 00:18:35,440 December is not too terribly late. So you may see them in December some points. So that 195 00:18:35,440 --> 00:18:48,840 is the hot program and I will unshare my screen. So move that out of the way. We have any questions 196 00:18:48,840 --> 00:18:55,400 we can't seem to get it there. Councilmember Johnson, I think it's still just you and I 197 00:18:55,400 --> 00:19:01,080 so sorry about Mr. Baker. That's okay. I'll kind of get with him offline too and make 198 00:19:01,080 --> 00:19:05,960 sure he has read through the presentation, everything. Councilmember Johnson, do you 199 00:19:05,960 --> 00:19:13,080 have any questions? I was wondering about the public art committee. There's 2.4%. Why 200 00:19:13,080 --> 00:19:20,040 is it just designated a certain amount? Once upon a time when this was created, that's 201 00:19:20,040 --> 00:19:25,960 my new favorite. Once upon a time there was the public art committee and the public art 202 00:19:25,960 --> 00:19:31,400 groups that were interested in always having some money set aside that they knew they could 203 00:19:31,400 --> 00:19:38,320 have. And so when the parks department created the public art policy internally, it was a 204 00:19:38,320 --> 00:19:44,720 discussion. I don't want to tell you how many years ago that was, but it's eight to 10, 205 00:19:44,720 --> 00:19:51,760 five to seven, somewhere in there. And I honestly do not know how parks and legal at that time 206 00:19:51,760 --> 00:20:01,240 came up with a 2.4%. We get 7% out of the 13% that a guest pays at a hotel. So I don't 207 00:20:01,240 --> 00:20:05,640 know if it had anything to do based on that 7%, but I'd be more than happy to go back 208 00:20:05,640 --> 00:20:14,520 and look at that timeframe and see what drove that 2.4%. I'm not so much interested in the 209 00:20:14,520 --> 00:20:22,140 timeframe as I am in the why the decision was made to do one more so than the other. 210 00:20:22,140 --> 00:20:31,640 Okay. Thank you. Where the percent came from? Yes. Okay. Absolutely. And Randy, kind of 211 00:20:31,640 --> 00:20:37,520 along those lines, can you remind us, there are some percentages involved in how much 212 00:20:37,520 --> 00:20:42,200 we can give to certain things, you know, historic preservation is the one that comes to mind, 213 00:20:42,200 --> 00:20:49,200 kind of some restrictions in the law on how we can allocate this money. Granted, we have 214 00:20:49,200 --> 00:20:53,840 groups that it's almost like an incremental budgeting when we look at it from year to 215 00:20:53,840 --> 00:20:58,120 year, because we have groups that come back every year, Arts and Jazz Fest, Denton Black 216 00:20:58,120 --> 00:21:05,200 Film Festival, those kinds of things. And they come with a similar ask most years. But 217 00:21:05,200 --> 00:21:10,280 if we were to look at it from a zero budgeting standpoint, we'd be limited by some percentages. 218 00:21:10,280 --> 00:21:18,360 And could you remind us what those are? Yes, sir. The 351 101 has caps and regulations 219 00:21:18,360 --> 00:21:23,800 regarding on how much we can expend in some of those categories. Advertising, they consider 220 00:21:23,800 --> 00:21:29,960 the biggest bang for their buck. And so we have to at least spend 1% of our revenue on 221 00:21:29,960 --> 00:21:35,880 that. And that is easily done every year, because we can support that in many ways, 222 00:21:35,880 --> 00:21:42,520 you know, besides, you know, television, radio, marketing, print advertising, social media, 223 00:21:42,520 --> 00:21:48,520 those are all things that fit into advertising. Also, internet, Facebook, their websites, 224 00:21:48,520 --> 00:21:56,640 you know, hosting those and updating those. The caps that we run into most is the 15% 225 00:21:56,640 --> 00:22:02,040 cap on the art category. So we're, we're an art town. That's one of our things. So all 226 00:22:02,040 --> 00:22:08,960 the festivals that want to pay for musicians, anything to put on the event, whether it's 227 00:22:08,960 --> 00:22:15,040 the generators, the stages, the microphones, the artists themselves, those all fall into 228 00:22:15,040 --> 00:22:23,960 the 15% cap of our revenues. And then we also have the same 15% cap on historical expenditures. 229 00:22:23,960 --> 00:22:33,200 So anything to preserve museum sites or operation, things like that. Those are the two main ones 230 00:22:33,200 --> 00:22:39,400 we really look at 15% in the art is really the closest one we get to. Historically, that's 231 00:22:39,400 --> 00:22:45,240 the we usually have maybe a percent, you know, and used to we be over the top. And what we 232 00:22:45,240 --> 00:22:49,480 would do going into the application phase, we would go ahead if we already knew we were 233 00:22:49,480 --> 00:22:53,160 going to exceed before we even came to the committee, we would go back to everyone that 234 00:22:53,160 --> 00:22:57,880 requested art, you know, and kind of ask them, what can we do to look at your budget to either 235 00:22:57,880 --> 00:23:03,040 move it into advertising, you know, or something like that. So we're very aware of the 15% 236 00:23:03,040 --> 00:23:11,800 art plays a factor in our city, particularly. Sure. And on those, those three internal accounts, 237 00:23:11,800 --> 00:23:17,480 we talked about public art already, but do you remember the the others obviously Waterworks 238 00:23:17,480 --> 00:23:22,920 Park has not been around forever. But do you remember any of those discussions with those 239 00:23:22,920 --> 00:23:27,360 two internal accounts, the Civic Center and Waterworks? Because, you know, they're just 240 00:23:27,360 --> 00:23:34,320 not enormous sums of money. Do those support specific activities and in parks, or they 241 00:23:34,320 --> 00:23:40,720 do certain things with that? Those hot funds? The Waterworks Park is advertising only. And 242 00:23:40,720 --> 00:23:45,280 so that supports all the not all the advertising, but the advertising that they do along with 243 00:23:45,280 --> 00:23:53,200 the general fund budget. And unique to them, I'd found in the past, and once upon a time, 244 00:23:53,200 --> 00:23:59,200 is movie theater advertising. And they did that a lot, pre summer and through spring 245 00:23:59,200 --> 00:24:03,760 break to get all the kids and everybody that are going to the G, you know, and PG movies 246 00:24:03,760 --> 00:24:07,840 and things like that. And they would put movie theater advertising in. So that was a lot. 247 00:24:07,840 --> 00:24:11,800 And then they have some North Texas child magazines and things like that, that they 248 00:24:11,800 --> 00:24:17,960 do and that they promote. And for the Civic Center, they do do some advertising. But in 249 00:24:17,960 --> 00:24:23,040 the past, I would say five years, it's really geared more towards their building, the use 250 00:24:23,040 --> 00:24:27,280 of their building and updating things that will be a better rental, you know, in the 251 00:24:27,280 --> 00:24:31,480 kitchen and in the tables and the outdoor seating. Those are the type of tangible things 252 00:24:31,480 --> 00:24:40,200 that the Civic Center statutory categories are the actual Convention Center category. 253 00:24:40,200 --> 00:24:45,000 And then a little bit of advertising to promote that. Those are the two that have been used. 254 00:24:45,000 --> 00:24:50,160 Do they have any? And you may know the answer, you may not. But do they have any limits on 255 00:24:50,160 --> 00:24:55,240 being able to use general fund money for those things? Like, are we are we kind of supplementing 256 00:24:55,240 --> 00:25:01,000 their general fund budget with hot funds because hot funds are more available for those those 257 00:25:01,000 --> 00:25:06,240 purposes or just because it was kind of a decision made a policy decision made at some 258 00:25:06,240 --> 00:25:11,040 point to support advertising to support the Civic Center as a destination, that kind of 259 00:25:11,040 --> 00:25:16,320 stuff. I think at some point, it was just another pot of money you could you could grab 260 00:25:16,320 --> 00:25:20,120 and it also relieves the general fund. And there are other things to, you know, tighten 261 00:25:20,120 --> 00:25:24,720 up on things like hot funds. It's just an expenditure that they are going to expend 262 00:25:24,720 --> 00:25:29,240 anyway. And if they can take that out of the general fund and alleviate and give them the 263 00:25:29,240 --> 00:25:34,040 ability to do something else from the general fund money, that's just the way I've seen 264 00:25:34,040 --> 00:25:40,000 it in the past. Sure. Good deal. Councilmember Johnson, do you have any more questions on 265 00:25:40,000 --> 00:25:48,080 this presentation? No. Good deal. Then that will wrap up item D and we'll move on. Sorry, 266 00:25:48,080 --> 00:25:54,720 we have sponsorship sponsorship. I'm sorry. I forgot about that. Okay, I split it up. 267 00:25:54,720 --> 00:26:08,800 Okay. So here's the sponsorship, the second program that this committee oversees and this 268 00:26:08,800 --> 00:26:15,400 is based on resolution 18 1709, which in your backup, I illustrated just for historical 269 00:26:15,400 --> 00:26:23,560 purposes that once upon a time, I'll get tired me say that once upon a time, the city did 270 00:26:23,560 --> 00:26:30,800 sponsorships all across all departments in some fashion or form. And they were out there 271 00:26:30,800 --> 00:26:37,760 doing what was appropriate for their own departments. And then we were looking at how those things 272 00:26:37,760 --> 00:26:43,000 were done and what would be a better way and really came down to transparency, you know, 273 00:26:43,000 --> 00:26:49,640 instead of having departments making those decisions in 2017, some of the couple of departments 274 00:26:49,640 --> 00:26:54,480 came to the council and create a resolution that kind of trued up what they were doing 275 00:26:54,480 --> 00:26:59,640 in each department. So we had three resolutions out there with sponsorships on how the process 276 00:26:59,640 --> 00:27:05,480 works and what the department would do and how they would report it to council annually. 277 00:27:05,480 --> 00:27:09,600 And then we got that barely under our belt. And then we looked at it again, we're like, 278 00:27:09,600 --> 00:27:14,520 well, this really is a fit for at the time the hot committee, you know, it's the same 279 00:27:14,520 --> 00:27:20,120 process, it could be more streamlined, and the decisions could be taken off the departments 280 00:27:20,120 --> 00:27:25,920 and placed on a committee that has oversight and reports regularly to the council. So that's 281 00:27:25,920 --> 00:27:35,080 where we resulted in the 18 1709 resolution, which is one resolution for the entire city. 282 00:27:35,080 --> 00:27:41,520 So with this program, it falls very similar to the hot program in that in the April kickoff, 283 00:27:41,520 --> 00:27:47,200 we will review the program guidelines and the application to the subcommittee and just 284 00:27:47,200 --> 00:27:52,240 get your feedback on if there's any changes or needs that you think the program needs 285 00:27:52,240 --> 00:27:57,360 to see moving forward into the next fiscal year. And we'll make those changes and update 286 00:27:57,360 --> 00:28:01,840 those and then we submit the applications at the same time as the hot application and 287 00:28:01,840 --> 00:28:08,020 we put those on the city website, email them out just like we do the hot and present those 288 00:28:08,020 --> 00:28:13,960 to the committee. And those funding decisions again are presented to the council. The city 289 00:28:13,960 --> 00:28:20,320 sponsorship budget includes both general fund and electric funds. So both of those funds 290 00:28:20,320 --> 00:28:27,080 budget the dollar amounts. And then in the fiscal year, we transfer those into the sponsorship 291 00:28:27,080 --> 00:28:32,280 fund, where we have one pool of money then and it's not a general fund sponsorship, it's 292 00:28:32,280 --> 00:28:39,320 not electric or a wastewater DME, it is just a city sponsorship. And this is basically 293 00:28:39,320 --> 00:28:44,580 a cash sponsorship that does not have all the restrictions like the hot funds. So it's 294 00:28:44,580 --> 00:28:50,280 unrestricted money. And so they also have a contract, just like the hot funds, which 295 00:28:50,280 --> 00:28:56,120 will provide in it the approved budgets, because they do ask specifically for the dollar amount 296 00:28:56,120 --> 00:29:00,480 on what they want to spend it on. And the things I've seen in the last couple of years 297 00:29:00,480 --> 00:29:10,080 of your oversight is anything from a venue rental to catering to maybe gifts and awards 298 00:29:10,080 --> 00:29:17,640 that they're going to be presented to their organization. So it varies once upon a time, 299 00:29:17,640 --> 00:29:21,440 and it still goes on in a different manner, it would be a sponsorship for a table, and 300 00:29:21,440 --> 00:29:25,760 they would use the money however they needed to be, or that type of thing. So they ask 301 00:29:25,760 --> 00:29:31,640 more specifically now and then you take a view at their application and decide what 302 00:29:31,640 --> 00:29:37,160 level of sponsorship that you provide to each organization. So it will have the approved 303 00:29:37,160 --> 00:29:42,360 budget, the use of funds, and we pay this out in a lump sum in Q1. It's just a check 304 00:29:42,360 --> 00:29:46,800 correct to the organizations and then they have that money to spend and report back to 305 00:29:46,800 --> 00:29:53,000 the city. They do have an annual reporting requirement instead of the quarterly one. 306 00:29:53,000 --> 00:29:58,960 And then the terms of the contract are the fiscal year. So hot program terms, calendar 307 00:29:58,960 --> 00:30:04,380 year, sponsorship goes with the city's fiscal year. And at the end of that fiscal year in 308 00:30:04,380 --> 00:30:10,000 September, they report back to the city to finance department on how they spent those 309 00:30:10,000 --> 00:30:14,880 funds and we just make sure it matches the budget and that those cleared the bank properly 310 00:30:14,880 --> 00:30:19,160 and went to the proper people. And then we close that off and we're in with that that 311 00:30:19,160 --> 00:30:28,600 year on September 30th. Finance administers the program within the fiscal year. All allocations 312 00:30:28,600 --> 00:30:34,520 are paid out in Q1 and these are unrestricted funds and only spent by the contract terms 313 00:30:34,520 --> 00:30:40,120 that are allowed. No city departments allocate sponsorship funds individually. If they get 314 00:30:40,120 --> 00:30:46,080 a request or have something that comes through, they forward it to finance and we contact 315 00:30:46,080 --> 00:30:50,400 the organization and let them know our process and put them on our list so that they will 316 00:30:50,400 --> 00:30:57,280 be aware of the next application process that they can be involved in. One caveat to this 317 00:30:57,280 --> 00:31:06,000 is it includes two long term contracts that the city has held for many years, 25, 30 years, 318 00:31:06,000 --> 00:31:11,960 maybe even longer than that. And that is noted there on your slide deck there for the greater 319 00:31:11,960 --> 00:31:18,380 Denton Arts Council and the Denton Community Theater. And sponsorship contracts support 320 00:31:18,380 --> 00:31:27,560 city DME utilities, gas and facility and maintenance cost. This has been going on for many years, 321 00:31:27,560 --> 00:31:32,760 but the current contract, which finance took over as part of the sponsorship program. So 322 00:31:32,760 --> 00:31:39,400 the contract out there right now is through 21 through 2026 and that is a five year contract 323 00:31:39,400 --> 00:31:47,920 that we oversee. And currently GDAC is getting 111,300 and that money goes for the Center 324 00:31:47,920 --> 00:31:54,920 for Visual Arts and the Campus Theater. And then the Denton Community Theater gets 11,100 325 00:31:54,920 --> 00:31:59,300 annually and that is dedicated to the Black Box Theater, which is now at the Golden Triangle 326 00:31:59,300 --> 00:32:08,600 Mall. So those contracts are overseen by finance and they are reviewed by the committee. They 327 00:32:08,600 --> 00:32:13,280 do not go through the application process. This is just something we work with individually 328 00:32:13,280 --> 00:32:18,520 with both those organizations. This money is stagnant through the five years. In previous 329 00:32:18,520 --> 00:32:23,000 years, you know, we came back every year and they asked for an increase or we allowed for 330 00:32:23,000 --> 00:32:26,940 a certain increase through that year, but currently we're going stagnant with for these 331 00:32:26,940 --> 00:32:35,880 dollar amounts for the five years. Similar to the Hot Funds, we meet in March, talk about 332 00:32:35,880 --> 00:32:40,480 the chair and everything because that is the committee role. We come back in April where 333 00:32:40,480 --> 00:32:45,640 we were talking about the kickoff for the next fiscal year. In May, the applications 334 00:32:45,640 --> 00:32:51,880 go out and the applicants have time to submit those, ask any questions to the finance department. 335 00:32:51,880 --> 00:32:56,120 In June, we come back and we have another fund balance sheet for the sponsorship so 336 00:32:56,120 --> 00:33:01,200 that you can see how the sponsorships, actuals were in the previous year, the current budget 337 00:33:01,200 --> 00:33:06,280 and what the ask is for the next fiscal year. August, the recommendation from the committee 338 00:33:06,280 --> 00:33:11,880 goes to the council and the budget workshop. Applicants are notified and we begin contracts 339 00:33:11,880 --> 00:33:18,000 review for the legal department. And my best goal is to have these contracts, the sponsorships 340 00:33:18,000 --> 00:33:22,720 contracts come in October, the very first month of our fiscal year, because we do have 341 00:33:22,720 --> 00:33:28,200 a couple of events that are in November and December of our fiscal year. And so it's really 342 00:33:28,200 --> 00:33:33,560 important that they have their funds on middle to the end of October. So I try to get the 343 00:33:33,560 --> 00:33:39,200 sponsorships in October, hot in December, but sometimes all the stars don't align and 344 00:33:39,200 --> 00:33:43,080 they come to you at the same time and I take up a lot of space on your agenda on the council 345 00:33:43,080 --> 00:33:50,080 meeting. But sometimes I will separate those out if I can get the sponsor ones to come 346 00:33:50,080 --> 00:34:08,720 back in October. And that is all for the sponsorships. So if you'd like to have any questions. 347 00:34:08,720 --> 00:34:16,520 Councilmember Johnson, any questions? Not at this time. Okay, very good. And Rani, I'm 348 00:34:16,520 --> 00:34:22,440 going to put you on the spot just a little bit, but from an internal accounting standpoint 349 00:34:22,440 --> 00:34:26,320 and just a management of all these sponsorship contracts, does it feel like the way we're 350 00:34:26,320 --> 00:34:33,160 doing it now is a is a big improvement over kind of the, you know, solid waste is sponsoring 351 00:34:33,160 --> 00:34:36,800 this event over here and getting their name on the t shirt and DME is sponsoring this 352 00:34:36,800 --> 00:34:40,200 one over here and then putting the light bulb on the t shirt and all the stuff we used to 353 00:34:40,200 --> 00:34:45,320 do, as opposed to a little bit of council oversight like we have now. 354 00:34:45,320 --> 00:34:50,200 I think it's a great process that we have now, but both of those departments still have 355 00:34:50,200 --> 00:34:55,400 some of their own advertising money, if you will, or marketing where they get to go to 356 00:34:55,400 --> 00:35:01,360 events and be on property at school functions or on the square or any of those redbud events 357 00:35:01,360 --> 00:35:05,540 and those types of things, they still can participate and have that level. But the other 358 00:35:05,540 --> 00:35:10,560 just cash hand out to sponsor coming through the committee and presenting in council has 359 00:35:10,560 --> 00:35:16,640 really been a great idea and it's worked out well. Good deal. All right, if there aren't 360 00:35:16,640 --> 00:35:21,040 any other questions, I think we're, we're now done with D, I jumped the gun earlier, 361 00:35:21,040 --> 00:35:26,900 and that'll take us to item E, receive a report and hold a discussion regarding the hot program 362 00:35:26,900 --> 00:35:36,000 year 2020 for fiscal year 2020. Oh, excuse me, am I looking at them? Yep. Good deal. 363 00:35:36,000 --> 00:35:49,040 Okay, I have another short presentation for you. So this is hot program year 2020 update. 364 00:35:49,040 --> 00:35:55,280 Just a short presentation. Really, it's just to come back and update the committee, because 365 00:35:55,280 --> 00:35:59,640 last year we had a lot of discussions around COVID and what we should do or shouldn't do 366 00:35:59,640 --> 00:36:07,720 and how we are going to proceed without making too many negative impacts on the recipients. 367 00:36:07,720 --> 00:36:14,920 And so what we've done here is the little short slide here to give you an overview of 368 00:36:14,920 --> 00:36:20,920 what that looked like. So on your screen right here, the column that says program year 20 369 00:36:20,920 --> 00:36:28,560 budget, that is where we started in the summer of 2019. We made these plans in 2019 for the 370 00:36:28,560 --> 00:36:37,700 calendar year 2020, where you can see we had a total resources of 5.4 million coming in 371 00:36:37,700 --> 00:36:45,360 and expenditures of 3.4. And then we got into 2020 and the reality of COVID and all that. 372 00:36:45,360 --> 00:36:51,160 And so somewhere in May, we came back together and the committee had me go back to the recipients 373 00:36:51,160 --> 00:36:57,000 and say, what are we going to do? What are you going to do as an event? Do you foresee 374 00:36:57,000 --> 00:37:04,680 any changes in your budget that you can estimate that you will return to the city at the end 375 00:37:04,680 --> 00:37:10,020 of your contract due to COVID reasons or any other at that particular time? Whether you're 376 00:37:10,020 --> 00:37:15,520 going to move your event date, you're going to shorten your event, you're going to cancel 377 00:37:15,520 --> 00:37:21,060 your event. And so all the recipients were great during that process coming back and 378 00:37:21,060 --> 00:37:26,100 trimming their budgets, even if they weren't canceling something, or if they had to adapt 379 00:37:26,100 --> 00:37:30,320 how the best way they could adapt and put on a great event with just a little bit less 380 00:37:30,320 --> 00:37:38,540 money. So in estimate program year 20, you will see our projected revenue at that time 381 00:37:38,540 --> 00:37:46,180 mid year went down to 3.8. But the choice that we made at the time, we looked at the 382 00:37:46,180 --> 00:37:51,400 expenses and because of the projected revenue and some of the fund balance that we had, 383 00:37:51,400 --> 00:37:57,920 the committee decided not to reduce program year 20 recipients at all. We were going to 384 00:37:57,920 --> 00:38:03,720 allocate all the funds. Half of them had already been spent at that time and expended through 385 00:38:03,720 --> 00:38:07,680 the check rec process. And we still had two more quarters to pay out. And the committee 386 00:38:07,680 --> 00:38:12,800 decided go ahead and pay them out. Even though we knew some of that portion would be refunded, 387 00:38:12,800 --> 00:38:17,720 we wanted the accounting system to see that we allocated all that money so we could see 388 00:38:17,720 --> 00:38:26,680 the refunds come in later. So program year 20 final came to 4.1 million, which was pretty 389 00:38:26,680 --> 00:38:32,440 close to the 3.8 since we were really an unchartered territory. We had no idea what was coming 390 00:38:32,440 --> 00:38:37,200 or how things would develop throughout the year. So I think we did a really good estimate 391 00:38:37,200 --> 00:38:44,520 on that. So I thought we looked pretty good at the end of the program year 20. We had 392 00:38:44,520 --> 00:38:51,840 a large reduction, obviously, in the 380 agreement. The 380 agreement, in case anybody is unaware, 393 00:38:51,840 --> 00:38:56,840 is the embassy suites hotel and convention center area. That is an agreement with the 394 00:38:56,840 --> 00:39:02,320 hot taxes that they pay in. And if you'll see the program year 20 final, that is embassy 395 00:39:02,320 --> 00:39:10,240 suites for 462,774. What they pay in, they automatically get returned. So those two line 396 00:39:10,240 --> 00:39:17,600 items will always be a wash as long as we go for many years until that ends. And so 397 00:39:17,600 --> 00:39:24,200 we allocated everything. And estimated fund balance for program year 20 is $1.1 million, 398 00:39:24,200 --> 00:39:29,800 which we will carry over into the current year that we're in. And so this kind of gives 399 00:39:29,800 --> 00:39:35,120 you a look at where we are in the budget for our current program year, which is this calendar 400 00:39:35,120 --> 00:39:42,200 year, and then the estimate, as you can see. If you look in program year 21 estimates, 401 00:39:42,200 --> 00:39:51,520 we are looking at receiving $554,597 in the actual refunds. And let me just pop over and 402 00:39:51,520 --> 00:39:56,360 give you a clear picture. This is what we estimated in June of last year that we would 403 00:39:56,360 --> 00:40:03,680 receive $476,989 in refunds. And the estimate, we're just missing one payment, but the estimate 404 00:40:03,680 --> 00:40:12,480 by the end of this month, we will have $554, which is a difference of $77,000 than we anticipated. 405 00:40:12,480 --> 00:40:18,960 So not only did our recipients do a good job, unfortunately, there are some events that 406 00:40:18,960 --> 00:40:22,480 were canceled later in the year. You know, they thought they were going to spend the 407 00:40:22,480 --> 00:40:25,960 money in June, they were going to have an event and there's a couple that they didn't 408 00:40:25,960 --> 00:40:30,720 quite get there and had to cancel. And then some just had to reduce some of the events 409 00:40:30,720 --> 00:40:35,040 that they were doing. So we're not going to spend as much money as they thought they were 410 00:40:35,040 --> 00:40:42,840 going to spend. And so I think going into 2021, we're looking good. We're opening up, 411 00:40:42,840 --> 00:40:52,200 you know, revenues are looking good. But if we look back here on this slide, 2020 was 412 00:40:52,200 --> 00:40:57,840 an interesting year. And from 2019, which was a very good year, we were down about 30% 413 00:40:57,840 --> 00:41:05,640 in revenue from 2019 to 2020. 2019 is not on your visual right now, but when we come 414 00:41:05,640 --> 00:41:13,280 to you in June for the funding, you'll have all the 2019 actuals, the 2020 budget, and 415 00:41:13,280 --> 00:41:19,240 you'll be able to see a larger spectrum of what it looked like pre-COVID, during COVID, 416 00:41:19,240 --> 00:41:31,880 and then what we're looking for in the future. So do we have any questions on the program 417 00:41:31,880 --> 00:41:39,200 year 20? Any, any questions on? No questions. I'll kind of second Randy on that was a wasn't 418 00:41:39,200 --> 00:41:44,080 interesting year and we were worried we might have to make some more difficult decisions 419 00:41:44,080 --> 00:41:51,280 and ultimately we did we did have to kind of adjust some things but between people rescheduling 420 00:41:51,280 --> 00:41:58,080 their events or being able to, like the fireworks show they were able to adjust their contract 421 00:41:58,080 --> 00:42:05,340 with a supplier and everything turned out just fine. 422 00:42:05,340 --> 00:42:11,380 All right, then, sorry, I switched screens here to get my agenda. I guess that takes 423 00:42:11,380 --> 00:42:19,160 us into item F, the management report, and is that just, I guess that's an informational 424 00:42:19,160 --> 00:42:24,520 item for us to know about virtual events. And, and I appreciate legal especially for 425 00:42:24,520 --> 00:42:30,040 kind of running that down for us last year to make sure that people, people had the ability 426 00:42:30,040 --> 00:42:35,800 to still hold their events and still make good use of hot funds to do that. Councilmember 427 00:42:35,800 --> 00:42:42,000 Johnson, did you have any questions on the, the virtual events memo that's attached to 428 00:42:42,000 --> 00:42:51,620 our agenda? No, I have no questions at this point. Very good. Then that brings us to concluding 429 00:42:51,620 --> 00:42:59,240 items. Councilmember Johnson, do you have any concluding items? No, sir. Very good. 430 00:42:59,240 --> 00:43:04,320 And I have none for myself so that exhausts our agenda. I appreciate staff very much for 431 00:43:04,320 --> 00:43:08,400 all the information this morning and we'll make sure Councilmember Baker gets briefed 432 00:43:08,400 --> 00:43:12,880 on that as well. So, all right, y'all have a good morning. Thank you.