WEBVTT 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 00:00:07.000 --> 00:00:12.040 of the Community Partnership Committee of the Denton City Council. If you are watching, 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 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 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 00:00:28.920 --> 00:00:35.200 discussion and elect a committee chair and vice chair. And, Randy, is there really anything 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, 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 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 00:00:50.480 --> 00:00:55.080 preside over our meetings. The meetings are usually pretty informal, but then we also 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 00:01:01.860 --> 00:01:11.440 the floor for nominations for chair. Allow me to nominate Councilman Baker since he's 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 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 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 00:01:31.920 --> 00:01:39.320 nominate Councilman Baker? I mean, Councilman Desi Davies. Thank you, Council Member Johnson. 00:01:39.320 --> 00:01:45.480 I'll accept your nomination. And not anticipating any other further nominations, I'll close 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 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, 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 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? 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 00:02:22.080 --> 00:02:28.040 chair. And I think you'll enjoy that role, too. This committee is involved in supporting 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 00:02:34.600 --> 00:02:43.760 moves us to item 1B, considering approval of the minutes from July 20th, 2020. Those 00:02:43.760 --> 00:02:49.280 have been posted on our website along with the agenda and provided to the committee members. 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 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 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 00:03:05.200 --> 00:03:10.000 item 1C, receive a report, hold discussion, and consider approval of an annual meeting 00:03:10.000 --> 00:03:16.840 schedule. Thank you. Per the city's ordinance, each committee needs to set a schedule for 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 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 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 00:03:33.320 --> 00:03:39.000 meeting about information about the programs. We will have a kickoff meeting April 22nd 00:03:39.000 --> 00:03:42.880 for the next program year, where we talk about applications and guidelines and things like 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 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, 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 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 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 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 00:04:16.480 --> 00:04:24.240 24th. Council Member Johnson, are those meeting dates 00:04:24.240 --> 00:04:28.240 acceptable to you? I move that they be accepted. 00:04:28.240 --> 00:04:32.000 I will second. And Council Member Johnson, are you an aye? 00:04:32.000 --> 00:04:34.760 Aye. The Chair is an aye and the annual meeting 00:04:34.760 --> 00:04:41.140 dates are approved. That moves us to item 1D, receive a report and hold discussion regarding 00:04:41.140 --> 00:04:49.120 the hotel occupancy tax and sponsorship programs. Great. We have a short presentation for you 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, 00:05:01.720 --> 00:05:16.320 get to full view here. Okay. Is everybody on board with this presentation 00:05:16.320 --> 00:05:19.640 here? Yes. Awesome. Yes. 00:05:19.640 --> 00:05:26.320 So this is the overview that I spoke with earlier before we started about the hotel 00:05:26.320 --> 00:05:31.060 occupancy tax program and the sponsorship program, which are the two main programs that 00:05:31.060 --> 00:05:37.080 this committee oversees. So we're basically going to go over the HOT and the sponsorship 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 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 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 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 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 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 00:06:09.920 --> 00:06:15.640 have in April, is review the guidelines and the applications for the HOT program that 00:06:15.640 --> 00:06:21.440 are already in existence and then looking to see if the committee or staff or anybody 00:06:21.440 --> 00:06:27.200 that participates throughout the year has provided us with any feedback or items of 00:06:27.200 --> 00:06:32.520 concern through the guidelines or the contract that may have challenges. So we present you 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 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 00:06:44.440 --> 00:06:49.680 website and also emailed to current and past recipients to give anybody an opportunity 00:06:49.680 --> 00:06:55.240 that is still interested in participating, the time to submit the applications. They 00:06:55.240 --> 00:07:01.160 come to the committee and the committee annually reviews those and makes funding recommendations 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 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 00:07:11.480 --> 00:07:15.600 sheet where you can see the actuals for the previous year, what the budget looks like 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 00:07:19.640 --> 00:07:28.160 year. Staff produces the fund balance sheet, which we project revenues and establish the 00:07:28.160 --> 00:07:33.400 funding levels for you guys to review during that meeting. And then the HOT recipients 00:07:33.400 --> 00:07:40.420 provide quarterly reports to finance 30 days after each end of quarter. The HOT program 00:07:40.420 --> 00:07:47.280 begins January 1st and ends December 31st, so runs in the program year, calendar year, 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. 00:07:54.640 --> 00:08:01.520 There you go. Okay. The contracts are approved by council after your recommendations are 00:08:01.520 --> 00:08:08.600 made in the August budget work session. And the contracts include the approved budget, 00:08:08.600 --> 00:08:14.200 which you've reviewed during your committee meetings. The use of funds with all the state 00:08:14.200 --> 00:08:22.280 statute recognizes what we call categories, such things as advertising, art, history, 00:08:22.280 --> 00:08:26.760 convention center, convention registrants. The use of funds will be itemized in exhibit 00:08:26.760 --> 00:08:33.240 A in the budget attached to each contract. The contract also illustrates how that particular 00:08:33.240 --> 00:08:38.080 recipient will be paid out. Majority of our recipients are paid out quarterly, but we 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 00:08:43.520 --> 00:08:49.480 on the total contract amount. It also depends on possibility of where their event is in 00:08:49.480 --> 00:08:54.480 the calendar year. So we have a couple that have already happened in the first quarter. 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 00:08:59.040 --> 00:09:03.840 in this first quarter really assists them to put on a better program with having their 00:09:03.840 --> 00:09:09.580 money upfront. In the payout section of the budget of the contract, it also shows that 00:09:09.580 --> 00:09:15.100 reductions of current budgets can occur during the contract period at any time. If we foresee 00:09:15.100 --> 00:09:20.760 any shortfalls in our estimates, for example, last year, you know, we had this conversation 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 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 00:09:31.640 --> 00:09:36.000 the recipients were grateful and we had a lot of discussions, but that is a possibility 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 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 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 00:09:51.160 --> 00:09:56.700 reporting procedures that each recipient must do every quarter, 30 days after the quarter. 00:09:56.700 --> 00:10:01.800 There's a financial report, expenditure detail report, and some banking information to show 00:10:01.800 --> 00:10:06.240 that those checks and credit card payments have cleared their bank and went to the proper 00:10:06.240 --> 00:10:12.640 vendor as noted in their information. And then it also has the terms of the contract. 00:10:12.640 --> 00:10:17.760 We have three internal recipients and what we consider as an internal recipient is some 00:10:17.760 --> 00:10:23.360 that we don't contract with or cannot contract with. So the Parks and Recreation Department 00:10:23.360 --> 00:10:29.580 of the city currently oversees three applications and three processes, and that's for the Public 00:10:29.580 --> 00:10:36.800 Art Committee, who by resolution receives 2.4% of the estimated hotel revenue every year, 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 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 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 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 00:10:57.960 --> 00:11:02.480 Center also is one of the recipients that we consider internal and then the Water Works 00:11:02.480 --> 00:11:07.800 Park. Those are the three internals. They still apply. They go through the same process. 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. 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 00:11:20.640 --> 00:11:26.840 orders, all the rules and regulations that the city uses to expend funds. They do that 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 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 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 00:11:47.600 --> 00:11:54.280 the recipients. So the hot revenue for quarter one is received by the city October through 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. 00:12:02.280 --> 00:12:07.160 So for January, that's when recipients start their contract year, and that's where they 00:12:07.160 --> 00:12:12.440 receive their first allocation, and then they can use it in their first quarter, which is 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 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 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 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 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, 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 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, 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, 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 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 00:13:07.560 --> 00:13:12.100 how the process works, because during this quarter for the recipients, they're already 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 00:13:17.560 --> 00:13:23.440 correct and our accounting is correct, the July, August, and September money that I received 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, 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 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 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 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 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 00:13:56.800 --> 00:14:02.720 four quarters, but they're allotted to them properly in their four quarters of their calendar 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 00:14:09.200 --> 00:14:14.800 Program timeline, we have a March meeting, which we're here today, to elect chair, look 00:14:14.800 --> 00:14:18.760 at the meeting schedule, and any outstanding items, you know, we may have in place that 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 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, 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 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 00:14:41.880 --> 00:14:48.040 and the applications and complete those, ask any questions they have. The Treasury staff, 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 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 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 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 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 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 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 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, 00:15:27.040 --> 00:15:32.340 a formal decision that once that deadline is received, no more applications will be 00:15:32.340 --> 00:15:38.760 accepted throughout that calendar year for that program year. So in June, when that meeting 00:15:38.760 --> 00:15:43.640 is closed and y'all have decided what your recommendations are for the council, then 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 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 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 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 00:16:05.240 --> 00:16:11.200 the year. So in June, you will review the applications and the budget requests. You'll 00:16:11.200 --> 00:16:17.240 discuss them and make a budget recommendation to council. And it is up to the committee 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 00:16:22.160 --> 00:16:28.760 before that. We itemize each applicant out on your fund balance sheet. So you will see 00:16:28.760 --> 00:16:34.400 each request, what they had last year, what they asked going in. We make a recommendation 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 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 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 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 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 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 00:17:06.800 --> 00:17:13.240 or the committee. And then we get an applicant notification of what has been recommended 00:17:13.240 --> 00:17:17.840 by the committee to the council, and that the contracts will be forthcoming for them 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. 00:17:22.280 --> 00:17:26.440 This is the dollar amount that the committee has recommended, and then the contracts will 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 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 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 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 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, 00:17:53.560 --> 00:17:57.200 we'll get the organizations their contracts, they'll review them, they'll sign them and 00:17:57.200 --> 00:18:02.400 they'll return them back to finance. And then November is our target date for contracts 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. 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 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 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 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, 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 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 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 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 00:19:01.080 --> 00:19:05.960 sure he has read through the presentation, everything. Councilmember Johnson, do you 00:19:05.960 --> 00:19:13.080 have any questions? I was wondering about the public art committee. There's 2.4%. Why 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 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 00:19:25.960 --> 00:19:31.400 groups that were interested in always having some money set aside that they knew they could 00:19:31.400 --> 00:19:38.320 have. And so when the parks department created the public art policy internally, it was a 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, 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 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 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 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 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. 00:20:22.140 --> 00:20:31.640 Okay. Thank you. Where the percent came from? Yes. Okay. Absolutely. And Randy, kind of 00:20:31.640 --> 00:20:37.520 along those lines, can you remind us, there are some percentages involved in how much 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, 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 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 00:20:53.840 --> 00:20:58.120 year, because we have groups that come back every year, Arts and Jazz Fest, Denton Black 00:20:58.120 --> 00:21:05.200 Film Festival, those kinds of things. And they come with a similar ask most years. But 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. 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 00:21:18.360 --> 00:21:23.800 regarding on how much we can expend in some of those categories. Advertising, they consider 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 00:21:29.960 --> 00:21:35.880 that. And that is easily done every year, because we can support that in many ways, 00:21:35.880 --> 00:21:42.520 you know, besides, you know, television, radio, marketing, print advertising, social media, 00:21:42.520 --> 00:21:48.520 those are all things that fit into advertising. Also, internet, Facebook, their websites, 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% 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 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 00:22:08.960 --> 00:22:15.040 the generators, the stages, the microphones, the artists themselves, those all fall into 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. 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 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 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 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 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 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 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% 00:23:03.040 --> 00:23:11.800 art plays a factor in our city, particularly. Sure. And on those, those three internal accounts, 00:23:11.800 --> 00:23:17.480 we talked about public art already, but do you remember the the others obviously Waterworks 00:23:17.480 --> 00:23:22.920 Park has not been around forever. But do you remember any of those discussions with those 00:23:22.920 --> 00:23:27.360 two internal accounts, the Civic Center and Waterworks? Because, you know, they're just 00:23:27.360 --> 00:23:34.320 not enormous sums of money. Do those support specific activities and in parks, or they 00:23:34.320 --> 00:23:40.720 do certain things with that? Those hot funds? The Waterworks Park is advertising only. And 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 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, 00:23:53.200 --> 00:23:59.200 is movie theater advertising. And they did that a lot, pre summer and through spring 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 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. 00:24:07.840 --> 00:24:11.800 And then they have some North Texas child magazines and things like that, that they 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 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 00:24:23.040 --> 00:24:27.280 of their building and updating things that will be a better rental, you know, in the 00:24:27.280 --> 00:24:31.480 kitchen and in the tables and the outdoor seating. Those are the type of tangible things 00:24:31.480 --> 00:24:40.200 that the Civic Center statutory categories are the actual Convention Center category. 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. 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 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 00:24:55.240 --> 00:25:01.000 their general fund budget with hot funds because hot funds are more available for those those 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 00:25:06.240 --> 00:25:11.040 point to support advertising to support the Civic Center as a destination, that kind of 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 00:25:16.320 --> 00:25:20.120 and it also relieves the general fund. And there are other things to, you know, tighten 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 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 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 00:25:34.040 --> 00:25:40.000 it in the past. Sure. Good deal. Councilmember Johnson, do you have any more questions on 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, 00:25:48.080 --> 00:25:54.720 we have sponsorship sponsorship. I'm sorry. I forgot about that. Okay, I split it up. 00:25:54.720 --> 00:26:08.800 Okay. So here's the sponsorship, the second program that this committee oversees and this 00:26:08.800 --> 00:26:15.400 is based on resolution 18 1709, which in your backup, I illustrated just for historical 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 00:26:23.560 --> 00:26:30.800 sponsorships all across all departments in some fashion or form. And they were out there 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 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, 00:26:43.000 --> 00:26:49.640 instead of having departments making those decisions in 2017, some of the couple of departments 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 00:26:54.480 --> 00:26:59.640 in each department. So we had three resolutions out there with sponsorships on how the process 00:26:59.640 --> 00:27:05.480 works and what the department would do and how they would report it to council annually. 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, 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 00:27:14.520 --> 00:27:20.120 process, it could be more streamlined, and the decisions could be taken off the departments 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 00:27:25.920 --> 00:27:35.080 where we resulted in the 18 1709 resolution, which is one resolution for the entire city. 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, 00:27:41.520 --> 00:27:47.200 we will review the program guidelines and the application to the subcommittee and just 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 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 00:27:57.360 --> 00:28:01.840 those and then we submit the applications at the same time as the hot application and 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 00:28:08.020 --> 00:28:13.960 to the committee. And those funding decisions again are presented to the council. The city 00:28:13.960 --> 00:28:20.320 sponsorship budget includes both general fund and electric funds. So both of those funds 00:28:20.320 --> 00:28:27.080 budget the dollar amounts. And then in the fiscal year, we transfer those into the sponsorship 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 00:28:32.280 --> 00:28:39.320 not electric or a wastewater DME, it is just a city sponsorship. And this is basically 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 00:28:44.580 --> 00:28:50.280 unrestricted money. And so they also have a contract, just like the hot funds, which 00:28:50.280 --> 00:28:56.120 will provide in it the approved budgets, because they do ask specifically for the dollar amount 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 00:29:00.480 --> 00:29:10.080 of your oversight is anything from a venue rental to catering to maybe gifts and awards 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, 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 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 00:29:25.760 --> 00:29:31.640 more specifically now and then you take a view at their application and decide what 00:29:31.640 --> 00:29:37.160 level of sponsorship that you provide to each organization. So it will have the approved 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 00:29:42.360 --> 00:29:46.800 correct to the organizations and then they have that money to spend and report back to 00:29:46.800 --> 00:29:53.000 the city. They do have an annual reporting requirement instead of the quarterly one. 00:29:53.000 --> 00:29:58.960 And then the terms of the contract are the fiscal year. So hot program terms, calendar 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 00:30:04.380 --> 00:30:10.000 September, they report back to the city to finance department on how they spent those 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 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 00:30:19.160 --> 00:30:28.600 year on September 30th. Finance administers the program within the fiscal year. All allocations 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 00:30:34.520 --> 00:30:40.120 that are allowed. No city departments allocate sponsorship funds individually. If they get 00:30:40.120 --> 00:30:46.080 a request or have something that comes through, they forward it to finance and we contact 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 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 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, 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 00:31:11.960 --> 00:31:18.380 Denton Arts Council and the Denton Community Theater. And sponsorship contracts support 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, 00:31:27.560 --> 00:31:32.760 but the current contract, which finance took over as part of the sponsorship program. So 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 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 00:31:47.920 --> 00:31:54.920 for Visual Arts and the Campus Theater. And then the Denton Community Theater gets 11,100 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 00:31:59.300 --> 00:32:08.600 Mall. So those contracts are overseen by finance and they are reviewed by the committee. They 00:32:08.600 --> 00:32:13.280 do not go through the application process. This is just something we work with individually 00:32:13.280 --> 00:32:18.520 with both those organizations. This money is stagnant through the five years. In previous 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 00:32:23.000 --> 00:32:26.940 a certain increase through that year, but currently we're going stagnant with for these 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 00:32:35.880 --> 00:32:40.480 the chair and everything because that is the committee role. We come back in April where 00:32:40.480 --> 00:32:45.640 we were talking about the kickoff for the next fiscal year. In May, the applications 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. 00:32:51.880 --> 00:32:56.120 In June, we come back and we have another fund balance sheet for the sponsorship so 00:32:56.120 --> 00:33:01.200 that you can see how the sponsorships, actuals were in the previous year, the current budget 00:33:01.200 --> 00:33:06.280 and what the ask is for the next fiscal year. August, the recommendation from the committee 00:33:06.280 --> 00:33:11.880 goes to the council and the budget workshop. Applicants are notified and we begin contracts 00:33:11.880 --> 00:33:18.000 review for the legal department. And my best goal is to have these contracts, the sponsorships 00:33:18.000 --> 00:33:22.720 contracts come in October, the very first month of our fiscal year, because we do have 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 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 00:33:33.560 --> 00:33:39.200 sponsorships in October, hot in December, but sometimes all the stars don't align and 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 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 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. 00:34:08.720 --> 00:34:16.520 Councilmember Johnson, any questions? Not at this time. Okay, very good. And Rani, I'm 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 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 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 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 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 00:34:40.200 --> 00:34:45.320 do, as opposed to a little bit of council oversight like we have now. 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 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 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 00:35:01.360 --> 00:35:05.540 and those types of things, they still can participate and have that level. But the other 00:35:05.540 --> 00:35:10.560 just cash hand out to sponsor coming through the committee and presenting in council has 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 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, 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 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. 00:35:36.000 --> 00:35:49.040 Okay, I have another short presentation for you. So this is hot program year 2020 update. 00:35:49.040 --> 00:35:55.280 Just a short presentation. Really, it's just to come back and update the committee, because 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 00:35:59.640 --> 00:36:07.720 and how we are going to proceed without making too many negative impacts on the recipients. 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 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 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 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 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. 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 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 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 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 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 00:37:15.520 --> 00:37:21.060 your event. And so all the recipients were great during that process coming back and 00:37:21.060 --> 00:37:26.100 trimming their budgets, even if they weren't canceling something, or if they had to adapt 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 00:37:30.320 --> 00:37:38.540 money. So in estimate program year 20, you will see our projected revenue at that time 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 00:37:46.180 --> 00:37:51.400 expenses and because of the projected revenue and some of the fund balance that we had, 00:37:51.400 --> 00:37:57.920 the committee decided not to reduce program year 20 recipients at all. We were going to 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 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 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, 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 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 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 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 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 00:38:44.520 --> 00:38:51.840 a large reduction, obviously, in the 380 agreement. The 380 agreement, in case anybody is unaware, 00:38:51.840 --> 00:38:56.840 is the embassy suites hotel and convention center area. That is an agreement with the 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 00:39:02.320 --> 00:39:10.240 suites for 462,774. What they pay in, they automatically get returned. So those two line 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 00:39:17.600 --> 00:39:24.200 we allocated everything. And estimated fund balance for program year 20 is $1.1 million, 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 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 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, 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 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 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 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. 00:40:12.480 --> 00:40:18.960 So not only did our recipients do a good job, unfortunately, there are some events that 00:40:18.960 --> 00:40:22.480 were canceled later in the year. You know, they thought they were going to spend the 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 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 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 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, 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 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% 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 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 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, 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 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 00:41:39.200 --> 00:41:44.080 interesting year and we were worried we might have to make some more difficult decisions 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 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 00:41:58.080 --> 00:42:05.340 with a supplier and everything turned out just fine. 00:42:05.340 --> 00:42:11.380 All right, then, sorry, I switched screens here to get my agenda. I guess that takes 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 00:42:19.160 --> 00:42:24.520 item for us to know about virtual events. And, and I appreciate legal especially for 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 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 00:42:35.800 --> 00:42:42.000 Johnson, did you have any questions on the, the virtual events memo that's attached to 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 00:42:51.620 --> 00:42:59.240 items. Councilmember Johnson, do you have any concluding items? No, sir. Very good. 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 00:43:04.320 --> 00:43:08.400 all the information this morning and we'll make sure Councilmember Baker gets briefed 00:43:08.400 --> 00:43:12.880 on that as well. So, all right, y'all have a good morning. Thank you.