1 00:00:00,000 --> 00:00:08,440 Good morning and welcome to this meeting of the Hotel Occupancy Tax and Sponsorship Committee 2 00:00:08,440 --> 00:00:10,140 of the Denton City Council. 3 00:00:10,140 --> 00:00:17,020 We'll start off with our first item for consideration, hot 20-021. 4 00:00:17,020 --> 00:00:21,860 Consider approval of the minutes from our June 11, 2020 meeting. 5 00:00:21,860 --> 00:00:28,900 Do we have any changes or additions to the minutes from that meeting? 6 00:00:28,900 --> 00:00:31,140 If we don't, do we have a motion for approval? 7 00:00:31,140 --> 00:00:34,080 I move for approval. 8 00:00:34,080 --> 00:00:37,560 Okay, I saw Councilmember Armitter, but I heard Mayor Watts. 9 00:00:37,560 --> 00:00:43,080 So I'm going to say Mayor Watts moved approval and Councilmember Armitter, do you second? 10 00:00:43,080 --> 00:00:44,080 Yes. 11 00:00:44,080 --> 00:00:45,080 Okay, there's been a motion and a second. 12 00:00:45,080 --> 00:00:46,580 All those in favor say aye. 13 00:00:46,580 --> 00:00:47,580 Aye. 14 00:00:47,580 --> 00:00:48,580 Aye. 15 00:00:48,580 --> 00:00:49,580 Aye. 16 00:00:49,580 --> 00:00:54,120 With no one in opposition, the minutes are approved from our June 11 meeting that moves 17 00:00:54,120 --> 00:01:02,040 us to item hot-022, receive a report and hold a discussion regarding Discover Denton. 18 00:01:02,040 --> 00:01:03,640 Yes, sir. 19 00:01:03,640 --> 00:01:08,840 This second item is a direct reflection of Councilmember Armitter's request from our 20 00:01:08,840 --> 00:01:12,000 last meeting on June 11 and concluding items. 21 00:01:12,000 --> 00:01:17,480 She requested some information regarding just the hotel tourism in general for the City 22 00:01:17,480 --> 00:01:27,680 of Denton and what the city and the tourism community is doing to assist our own market 23 00:01:27,680 --> 00:01:34,840 in downtown and the immediate areas in that nature of what was the impact of COVID currently, 24 00:01:34,840 --> 00:01:38,880 what they had to do to make some changes, and then what the forecast is shortly coming 25 00:01:38,880 --> 00:01:39,880 up. 26 00:01:39,880 --> 00:01:45,480 Of course, we went to our resident expert, I'm calling them Discover Denton. 27 00:01:45,480 --> 00:01:49,040 I think we're rebranding a little bit now, Mike, if you will correct me on that. 28 00:01:49,040 --> 00:01:52,700 We've always called them the CVB, so we've tried to change our paperwork to Discover 29 00:01:52,700 --> 00:01:57,080 Denton as they move forward to that new name for themselves and branding. 30 00:01:57,080 --> 00:02:00,400 And so we have invited Mike, he's got a short presentation. 31 00:02:00,400 --> 00:02:04,440 And Mike Costano, you are on the line and present, you all can see him there in your 32 00:02:04,440 --> 00:02:06,000 right corner. 33 00:02:06,000 --> 00:02:07,880 And I will bring up your presentation. 34 00:02:07,880 --> 00:02:11,640 And if you just start whenever you want to start once I get it up, and then just tell 35 00:02:11,640 --> 00:02:16,400 me next slide, please, and I will do my best. 36 00:02:16,400 --> 00:02:17,400 Sounds good. 37 00:02:17,400 --> 00:02:18,400 Thank you. 38 00:02:18,400 --> 00:02:19,400 Thank you, committee. 39 00:02:19,400 --> 00:02:20,400 Appreciate the time this morning. 40 00:02:20,400 --> 00:02:21,400 Good morning to everybody. 41 00:02:21,400 --> 00:02:22,400 Yeah. 42 00:02:22,400 --> 00:02:28,240 So just wanted to follow up with from the last meeting and Councilmember Armitage had 43 00:02:28,240 --> 00:02:31,360 some questions and some of the committee did. 44 00:02:31,360 --> 00:02:36,040 So we just wanted to present real quickly here some of the things that we have been 45 00:02:36,040 --> 00:02:40,760 doing obviously since the quarantine had started. 46 00:02:40,760 --> 00:02:45,040 And so really, this is touching on things that came up last month in your meeting. 47 00:02:45,040 --> 00:02:49,760 The first thing was really just some specific activity due to the shelter actually go back 48 00:02:49,760 --> 00:02:50,760 Randy. 49 00:02:50,760 --> 00:02:51,760 Well, that's fine. 50 00:02:51,760 --> 00:02:52,760 I can't get it full screen yet. 51 00:02:52,760 --> 00:02:53,760 I don't know what it's doing. 52 00:02:53,760 --> 00:02:54,760 Okay. 53 00:02:54,760 --> 00:02:55,760 Give me one second. 54 00:02:55,760 --> 00:02:56,760 I'll see if I can do anything else. 55 00:02:56,760 --> 00:03:00,160 Billy and I just went over this and it worked. 56 00:03:00,160 --> 00:03:03,880 Do you have any suggestions, David? 57 00:03:03,880 --> 00:03:11,740 Just a little clicker down here won't do anything. 58 00:03:11,740 --> 00:03:15,400 Well I mean I can read it because I got it up on my right. 59 00:03:15,400 --> 00:03:16,400 So it's not doing it. 60 00:03:16,400 --> 00:03:24,400 If you just want to go to the next slide sharing the screen, let's try it one more time. 61 00:03:24,400 --> 00:03:26,400 All right. 62 00:03:26,400 --> 00:03:29,400 There we go. 63 00:03:29,400 --> 00:03:31,920 All right. 64 00:03:31,920 --> 00:03:32,920 There we go. 65 00:03:32,920 --> 00:03:33,920 Thank you, Randy. 66 00:03:33,920 --> 00:03:34,920 Yeah, just go to the next slide. 67 00:03:34,920 --> 00:03:39,240 So this is just a quick recap of some of the things. 68 00:03:39,240 --> 00:03:44,720 The team has been doing an incredible job obviously like every other business and organization 69 00:03:44,720 --> 00:03:53,240 we've had to adapt and pivot and see how we can best still do our jobs and try to drive 70 00:03:53,240 --> 00:03:57,420 hotel revenue and help our hospitality partners and community partners. 71 00:03:57,420 --> 00:04:01,320 One of the first things we did, and this is just across the board, I mean the whole state, 72 00:04:01,320 --> 00:04:06,720 any other CVB or DMO, we immediately paused all of our marketing and advertising efforts 73 00:04:06,720 --> 00:04:13,360 as a cost savings measure and then we evolved directly to become more community driven and 74 00:04:13,360 --> 00:04:21,360 focus on Denton focused marketing, talking about the community, support local, things 75 00:04:21,360 --> 00:04:24,840 like that because people just weren't traveling. 76 00:04:24,840 --> 00:04:29,800 We created a COVID-19 resources page on our website providing information and updates 77 00:04:29,800 --> 00:04:34,880 on government health and safety protocols, city of Denton announcements, what events 78 00:04:34,880 --> 00:04:40,560 were still taking place, what were closing, first responder and health workers, special 79 00:04:40,560 --> 00:04:42,360 rates that the hotels have provided. 80 00:04:42,360 --> 00:04:46,280 So it's kind of an all resources page, it's still up there on the website. 81 00:04:46,280 --> 00:04:50,760 First thing people see, we've received a lot of great feedback from that. 82 00:04:50,760 --> 00:04:56,360 We then produced our Distant Denton campaign which was really a creative video put together 83 00:04:56,360 --> 00:05:01,160 by Jake Laughlin and our Dentonradio.com team, people on our marketing team. 84 00:05:01,160 --> 00:05:07,120 It was a 30 second promotional video that talked about Denton, stay at home, be safe 85 00:05:07,120 --> 00:05:11,580 and Denton will be here when it's time and safe to come back. 86 00:05:11,580 --> 00:05:14,760 We have that, there's a link in the presentation so you guys can check out the video if you 87 00:05:14,760 --> 00:05:17,280 already have it, it's on our website. 88 00:05:17,280 --> 00:05:19,880 It's really great, we got a lot of great feedback from that. 89 00:05:19,880 --> 00:05:25,160 We also created a Discover Denton virtually web page so people can, you know, videos that 90 00:05:25,160 --> 00:05:31,360 had VR tours, Denton trivia game, Spotify playlist for our great Denton musicians, featured 91 00:05:31,360 --> 00:05:32,880 our mural tour. 92 00:05:32,880 --> 00:05:37,760 We even had downloadable Zoom backgrounds so that people can, you know, get their piece 93 00:05:37,760 --> 00:05:41,360 of Denton while they're home and zooming in their meetings. 94 00:05:41,360 --> 00:05:47,200 Our sales and services team has been assisting with meeting planners, rescheduling events. 95 00:05:47,200 --> 00:05:51,360 We're trying to get people to, you know, not just cancel but we want them to postpone, 96 00:05:51,360 --> 00:05:54,240 come back in the fall, come back early next year. 97 00:05:54,240 --> 00:05:57,200 We've been having some great success with that. 98 00:05:57,200 --> 00:06:02,040 Ongoing communication efforts with our hotel GMs and owners has been going on. 99 00:06:02,040 --> 00:06:05,320 Probably the communication now is better than it's ever been. 100 00:06:05,320 --> 00:06:11,000 We are, some of the things that have come up over the last couple months is with the 101 00:06:11,000 --> 00:06:18,080 hotels, you know, the occupancies are down, they're always have had some issues with let's 102 00:06:18,080 --> 00:06:23,960 say as problem guests or things like credit card fraud, it just goes on in the hotel business. 103 00:06:23,960 --> 00:06:27,280 We've openly now these hotels, they're all communicating back to us here at Discover 104 00:06:27,280 --> 00:06:28,280 Denton. 105 00:06:28,280 --> 00:06:30,240 We're sending that information out to the other hotels. 106 00:06:30,240 --> 00:06:36,040 There's basically a list of kind of a do not rent guests, which is standard in the industry. 107 00:06:36,040 --> 00:06:40,400 And they're sharing this information and actually cutting down a little bit on things like some 108 00:06:40,400 --> 00:06:44,880 activities that are going on in hotels that generally shouldn't be going on and they're 109 00:06:44,880 --> 00:06:47,920 doing a great job of communicating openly with everyone else. 110 00:06:47,920 --> 00:06:52,000 You know, it's camaraderie now, it's not a competition. 111 00:06:52,000 --> 00:06:56,080 Everyone's sharing information and you know, we're really the conduit of that and that's 112 00:06:56,080 --> 00:06:57,080 part of our goal. 113 00:06:57,080 --> 00:07:03,320 Some of the really great things we did and it's Wendy from our marketing team and Jessica, 114 00:07:03,320 --> 00:07:08,320 we created some real cool original content to support local restaurants and hotels and 115 00:07:08,320 --> 00:07:10,880 shops and entertainment venues. 116 00:07:10,880 --> 00:07:14,400 Hopefully you guys have all seen all this stuff before and apologize if it's redundant, 117 00:07:14,400 --> 00:07:16,560 but I just wanted to get in touch on these things. 118 00:07:16,560 --> 00:07:21,720 The ultimate Denton bracket, which was our March Madness Bracketology competition, where 119 00:07:21,720 --> 00:07:28,080 we pitted shops and restaurants, venues, and we had it go out on social media and people 120 00:07:28,080 --> 00:07:34,720 voted through Facebook and Instagram on what was their favorite Denton venue. 121 00:07:34,720 --> 00:07:40,680 And that was an incredible success, a lot of participation. 122 00:07:40,680 --> 00:07:44,120 I've got another slide coming right after this that will show some results for that. 123 00:07:44,120 --> 00:07:48,120 We created the Quarantune Songwriting Competition, which began with Denton tapping into the local 124 00:07:48,120 --> 00:07:50,000 music scene. 125 00:07:50,000 --> 00:07:56,600 We had a competition that went on for about a month and people submitted songs, original 126 00:07:56,600 --> 00:08:01,980 songs about Denton, and when we actually had 24 entries, we put together a compilation 127 00:08:01,980 --> 00:08:05,800 album that's now a Spotify playlist. 128 00:08:05,800 --> 00:08:11,880 The winners all were able to come into Denton Radio and record their recording live there. 129 00:08:11,880 --> 00:08:16,600 Safely, of course, if they wanted to, not everyone did come in, but that is an isolated 130 00:08:16,600 --> 00:08:21,960 booth, and Jake Laughlin did set that up where we had some of the artists come on in and 131 00:08:21,960 --> 00:08:26,520 record their song professionally, and we got, again, great feedback on that. 132 00:08:26,520 --> 00:08:31,040 We created social distancing guidelines, which, again, I have a slide on that I'll show you 133 00:08:31,040 --> 00:08:32,160 right behind this. 134 00:08:32,160 --> 00:08:36,840 And then DentonRadio.com, again, tapping into the local hotel community, did interviews 135 00:08:36,840 --> 00:08:41,360 and set up live interviews that they streamed with Denton Hotel leadership where they could 136 00:08:41,360 --> 00:08:45,280 talk about their properties and that, yes, they are still open, that they have enhanced 137 00:08:45,280 --> 00:08:49,080 cleaning standards, and that we're ready for people to come in and travel. 138 00:08:49,080 --> 00:08:52,520 Randy, next slide, please. 139 00:08:52,520 --> 00:08:57,080 And this is just a couple of, this was the Denton bracket, and you guys can see we had 140 00:08:57,080 --> 00:09:01,240 the nightlife, the restaurants, festivals, events region, and then the shopping region. 141 00:09:01,240 --> 00:09:06,120 And this was purely, it was a creation of Wendy from our marketing team. 142 00:09:06,120 --> 00:09:08,120 It was really great, creative. 143 00:09:08,120 --> 00:09:13,240 There was rankings for each business or organization that meant nothing. 144 00:09:13,240 --> 00:09:14,500 It was just kind of random. 145 00:09:14,500 --> 00:09:16,360 She put that all out there on the front end. 146 00:09:16,360 --> 00:09:18,120 And then people voted each week. 147 00:09:18,120 --> 00:09:21,600 And again, it was a good way to keep everyone engaged. 148 00:09:21,600 --> 00:09:26,080 It was a lot of great fun banter on the social channels about who's best and why. 149 00:09:26,080 --> 00:09:32,560 And as you can see from the, we reached about 149,000 people on Facebook. 150 00:09:32,560 --> 00:09:34,880 Twitter impressions were almost 65,000. 151 00:09:34,880 --> 00:09:38,400 So again, it was very successful in that, again, it was just keeping Denton present, 152 00:09:38,400 --> 00:09:43,240 fresh out there, top of mind for not only locals, but again, we were getting some push 153 00:09:43,240 --> 00:09:45,300 throughout other channels. 154 00:09:45,300 --> 00:09:48,360 Next slide, Brandy. 155 00:09:48,360 --> 00:09:49,640 This was our social distancing guide. 156 00:09:49,640 --> 00:09:54,880 And again, it was another creative marketing way that we could show what's six feet of 157 00:09:54,880 --> 00:09:55,880 Denton. 158 00:09:55,880 --> 00:09:56,880 All right, here's some laughs. 159 00:09:56,880 --> 00:09:59,040 Six feet of distance in Denton. 160 00:09:59,040 --> 00:10:02,320 So again, a lot of people had the standard, here's what six foot is. 161 00:10:02,320 --> 00:10:05,800 Well, we were, you know, again, putting this out on social media, on our website. 162 00:10:05,800 --> 00:10:07,620 We were sharing it with other businesses. 163 00:10:07,620 --> 00:10:11,240 So it was a good way again to incorporate some local businesses. 164 00:10:11,240 --> 00:10:16,800 You can see six feet is eight microphones from Dan Silverleaf or six record from Mad 165 00:10:16,800 --> 00:10:19,440 World Records, two guitars from Andy's Bar. 166 00:10:19,440 --> 00:10:23,480 So again, we got a great marketing team that's been very creative and putting these sort 167 00:10:23,480 --> 00:10:24,480 of things together. 168 00:10:24,480 --> 00:10:31,040 Again, it was just another fun way to keep it engaging and get people out there and get 169 00:10:31,040 --> 00:10:32,040 good feedback. 170 00:10:32,040 --> 00:10:33,040 Next slide, please. 171 00:10:33,040 --> 00:10:41,400 This, again, just tests back on the quarantine songwriting competition in that it had started 172 00:10:41,400 --> 00:10:46,120 in April, ended in May, and now we had the 24 songs submitted. 173 00:10:46,120 --> 00:10:48,560 Again, it was really fun competition. 174 00:10:48,560 --> 00:10:51,360 You can go right on Spotify or on our website and find the playlist. 175 00:10:51,360 --> 00:10:53,600 Some incredible songs were really submitted. 176 00:10:53,600 --> 00:10:58,080 It's unbelievable how talented the musicians are in this town and we're real proud to be 177 00:10:58,080 --> 00:11:02,680 able to showcase that and put a good focus on that during these times. 178 00:11:02,680 --> 00:11:06,120 And then again, those are just some clips of the videos of some of the interviews with 179 00:11:06,120 --> 00:11:07,120 hotel leadership. 180 00:11:07,120 --> 00:11:12,440 Zach Glenn from the Best Western and Bianca Phillips from the Hilton Garden Inn. 181 00:11:12,440 --> 00:11:15,240 Next slide. 182 00:11:15,240 --> 00:11:18,020 And then just a couple of quick things here on some other activity during the shelter 183 00:11:18,020 --> 00:11:21,160 at home from our sales teams. 184 00:11:21,160 --> 00:11:22,920 The groups did stop down. 185 00:11:22,920 --> 00:11:26,120 Convention business came to a halt, but our team has been actively involved, especially 186 00:11:26,120 --> 00:11:30,620 the last month and six weeks getting people rescheduled. 187 00:11:30,620 --> 00:11:32,400 We're still talking to meetings planners. 188 00:11:32,400 --> 00:11:38,400 We've actually, you can see from this chart, there's been 13 groups contracted since mid-March. 189 00:11:38,400 --> 00:11:44,920 So when we started the lockdown, 2,200 room nights over a $775,000 economic impact. 190 00:11:44,920 --> 00:11:50,680 So Ruben Perez and his team are still out there aggressively speaking to planners and 191 00:11:50,680 --> 00:11:54,480 trying to get people to book, working with all the hotel partners, working with the Denton 192 00:11:54,480 --> 00:11:55,480 Convention Center. 193 00:11:55,480 --> 00:11:58,560 We're continuing to have conversations with clients. 194 00:11:58,560 --> 00:11:59,760 Again, rebook. 195 00:11:59,760 --> 00:12:00,760 Don't cancel. 196 00:12:00,760 --> 00:12:03,360 Get you to rebook. 197 00:12:03,360 --> 00:12:07,880 And then another thing is we run the horse country tours that we always have, which is 198 00:12:07,880 --> 00:12:09,520 a very incredible program. 199 00:12:09,520 --> 00:12:13,760 Obviously, those ranches have been shut down and we're not having groups out there. 200 00:12:13,760 --> 00:12:16,000 So we've had to put that program on hold. 201 00:12:16,000 --> 00:12:20,240 We don't really see it coming back this year, but again, we're looking at new creative ways 202 00:12:20,240 --> 00:12:21,240 or how we do it. 203 00:12:21,240 --> 00:12:27,320 Maybe it's smaller groups or again, what can we do to get that program back going when 204 00:12:27,320 --> 00:12:31,760 it's safe again for people to come out and come onto the ranches. 205 00:12:31,760 --> 00:12:33,920 And then we have active leads going right now. 206 00:12:33,920 --> 00:12:39,680 We have 31 leads for over 12,000 room nights, which could be a $3.6 million economic impact. 207 00:12:39,680 --> 00:12:47,240 So again, the sales team has been very, very busy catching up, cleaning up our database, 208 00:12:47,240 --> 00:12:50,240 following up on traces. 209 00:12:50,240 --> 00:12:53,360 And again, they're out there trying to get, you know, we got to get people back here in 210 00:12:53,360 --> 00:12:55,800 these hotels and get the occupancies back up. 211 00:12:55,800 --> 00:12:58,760 And that's ultimately our goal. 212 00:12:58,760 --> 00:13:01,480 Next slide. 213 00:13:01,480 --> 00:13:05,680 And then, so the other thing was some of the activity, I think another question was we 214 00:13:05,680 --> 00:13:11,320 were following up on with CVV activity as the state opens back up and as we move towards 215 00:13:11,320 --> 00:13:13,480 the end of this year, program year. 216 00:13:13,480 --> 00:13:18,960 I just wanted to put this, this is really kind of a four-phase roadmap to recovery we 217 00:13:18,960 --> 00:13:25,200 had put together when this all started and this is actually working with state associations 218 00:13:25,200 --> 00:13:29,280 and national destination organizations, you know, is really where we're at. 219 00:13:29,280 --> 00:13:33,400 So we started in the wait mode, which is when everything was quarantined and social distancing 220 00:13:33,400 --> 00:13:35,880 orders were in place. 221 00:13:35,880 --> 00:13:41,360 Then we had the ready mode, reduction of distancing and assessing the impact set, going back in 222 00:13:41,360 --> 00:13:43,800 public and trip planning, and then go free to travel. 223 00:13:43,800 --> 00:13:46,080 And these were really the four quadrants. 224 00:13:46,080 --> 00:13:47,280 And we were in that wait mode. 225 00:13:47,280 --> 00:13:51,200 We moved into ready and that's really where we are now where we are entering the conversation 226 00:13:51,200 --> 00:13:55,240 and providing inspiration and relevant information and we're beginning incorporating calls to 227 00:13:55,240 --> 00:13:57,400 action in our messaging. 228 00:13:57,400 --> 00:14:04,080 So this is really some guidance again from national organizations as well on how we can 229 00:14:04,080 --> 00:14:07,640 go back and get travelers coming and conventioneers coming back to Den. 230 00:14:07,640 --> 00:14:12,920 You know, these times are unusual and again, unprecedented as we all know, I don't have 231 00:14:12,920 --> 00:14:13,920 to get into that. 232 00:14:13,920 --> 00:14:17,280 And we're, you know, just when you think things are going to open back up, it kind of, you 233 00:14:17,280 --> 00:14:20,440 know, things get a little, again, tighter. 234 00:14:20,440 --> 00:14:26,000 And so we're just kind of moving as we can and we're pivoting and we're just again trying 235 00:14:26,000 --> 00:14:30,760 to keep up on daily activities and trying to get the right time where we're going to 236 00:14:30,760 --> 00:14:35,800 start putting some messaging out there again and some marketing out to the broader range 237 00:14:35,800 --> 00:14:38,200 in the region about coming back to Den. 238 00:14:38,200 --> 00:14:41,720 You know, we don't want to be insensitive to people, but at the same time, we've got 239 00:14:41,720 --> 00:14:43,920 to support our hotels and our business here. 240 00:14:43,920 --> 00:14:49,000 So we're doing that dance between both. 241 00:14:49,000 --> 00:14:50,760 Next slide. 242 00:14:50,760 --> 00:14:57,400 Okay, this was just another question I know we had about budget and I think it was Mayor 243 00:14:57,400 --> 00:15:02,640 Watts or might have come up with, you know, we, this was what we have for this year. 244 00:15:02,640 --> 00:15:05,320 And you had asked us, the committee had asked everyone put together, what do you think we 245 00:15:05,320 --> 00:15:09,840 can save by the end of the year and give back? 246 00:15:09,840 --> 00:15:15,660 So we had initially had the numbers, this just has some more meat to it, give some more 247 00:15:15,660 --> 00:15:20,520 details exactly where our savings came up because we had a pretty nice savings. 248 00:15:20,520 --> 00:15:21,920 Really what I did is I lumped this all together. 249 00:15:21,920 --> 00:15:25,520 I know there's a lot of numbers there, but the important columns, the savings column, 250 00:15:25,520 --> 00:15:30,360 which was the 262 K and then I have detailed notes in there for everything. 251 00:15:30,360 --> 00:15:36,280 The bulk of that is at the bottom is about 150,000 is just in salary combined salary 252 00:15:36,280 --> 00:15:40,320 savings and a lot of that had to do with, we just had some positions that weren't filled 253 00:15:40,320 --> 00:15:41,640 this year. 254 00:15:41,640 --> 00:15:43,980 The first month we didn't have a director of sales. 255 00:15:43,980 --> 00:15:48,920 We didn't have our director of marketing position filled until June. 256 00:15:48,920 --> 00:15:54,120 We had a convention sales manager that at the end of April, she moved on to another 257 00:15:54,120 --> 00:15:59,060 opportunity as well as we had someone in our welcome center move on the manager there. 258 00:15:59,060 --> 00:16:03,220 So we've had some built in savings, which in this year it's been kind of very fortunate 259 00:16:03,220 --> 00:16:08,240 that we're able to have some of that salary savings and that we'll be able to pass that 260 00:16:08,240 --> 00:16:09,240 on. 261 00:16:09,240 --> 00:16:14,960 The other main thing we saved on is just paid marketing and advertising, general advertising 262 00:16:14,960 --> 00:16:18,160 where we're not doing any digital advertising. 263 00:16:18,160 --> 00:16:22,580 We've cut production of our Denton live magazine for the second half of the year, obviously 264 00:16:22,580 --> 00:16:26,560 with not knowing what's going on, there's all the events and festivals are canceling. 265 00:16:26,560 --> 00:16:29,300 That was a large expense in itself. 266 00:16:29,300 --> 00:16:33,600 So that's going to save us about $25,000 right there, as well as the distribution to that's 267 00:16:33,600 --> 00:16:39,880 probably another $6,000 or $7,000 just distributing that to different welcome centers and around 268 00:16:39,880 --> 00:16:42,560 the state to all the hotels. 269 00:16:42,560 --> 00:16:46,600 Again we've cut down on travel completely, no one's been doing any travel since March. 270 00:16:46,600 --> 00:16:52,620 So we've just had some savings that are able to lump back in there and obviously if things 271 00:16:52,620 --> 00:16:56,880 did open up tomorrow and the conventions were back and there were travels and associations 272 00:16:56,880 --> 00:17:01,000 we had to be at and we had to go on sales missions, we still want to do that. 273 00:17:01,000 --> 00:17:06,040 So again, that's why we're looking to, I'd love to spend that money if we could but obviously 274 00:17:06,040 --> 00:17:11,520 with the shortfall that's coming, we know it's impacted the hotels tremendously. 275 00:17:11,520 --> 00:17:16,460 We know things are going to be down 30%, 35% and we're trying to be obviously fiscally 276 00:17:16,460 --> 00:17:20,440 responsible because we get the biggest share of the hot funds. 277 00:17:20,440 --> 00:17:26,000 But again, on the flip side, we're the ones that are driving tourism for the whole destination 278 00:17:26,000 --> 00:17:28,720 and we want to keep our team out there. 279 00:17:28,720 --> 00:17:32,920 So we're doing everything this year that we can to get ahead of it. 280 00:17:32,920 --> 00:17:37,440 Like I said, the sales team hasn't stopped talking to meeting planners. 281 00:17:37,440 --> 00:17:38,940 We haven't stopped communicating. 282 00:17:38,940 --> 00:17:43,360 We haven't stopped trying to do things to get groups here. 283 00:17:43,360 --> 00:17:50,960 Everyone's working hard every single day to make the best of it as we move towards normalcy. 284 00:17:50,960 --> 00:17:57,920 And then the next slide, this is just the last slide that we have and there was a question 285 00:17:57,920 --> 00:18:06,360 on ongoing objectives and in our post COVID-19 plan, and these are really just some items 286 00:18:06,360 --> 00:18:11,320 that are taken out of our marketing plan for the coming year, the upcoming year. 287 00:18:11,320 --> 00:18:14,800 The main thing we're going to continue to operate as the Torum as an engine for the 288 00:18:14,800 --> 00:18:16,240 city of Denton. 289 00:18:16,240 --> 00:18:18,160 That's what Discover Denton is here to do. 290 00:18:18,160 --> 00:18:19,160 We're here to drive tourism. 291 00:18:19,160 --> 00:18:20,160 We're here to drive to meetings. 292 00:18:20,160 --> 00:18:25,400 We're here to drive conventions and try to get visitors to stay in these hotels. 293 00:18:25,400 --> 00:18:29,980 And right now with the occupancy is down, they're down. 294 00:18:29,980 --> 00:18:34,640 We just finished out June actually, I'm going to sidetrack real quick, but we just finished 295 00:18:34,640 --> 00:18:39,240 June at 48% occupancy for the hotels. 296 00:18:39,240 --> 00:18:42,920 That's normally not a great number, but it's a tremendous increase from the prior month 297 00:18:42,920 --> 00:18:46,520 where the hotels came in at 40% occupancy. 298 00:18:46,520 --> 00:18:50,080 And then in April, which was the worst month, we were at 28%. 299 00:18:50,080 --> 00:18:53,840 So there's been steady increase over the past three months. 300 00:18:53,840 --> 00:18:55,580 So that's again, an encouraging sign. 301 00:18:55,580 --> 00:19:01,360 12 of the last 14 weeks occupancies have gone up across the board for the city of Denton. 302 00:19:01,360 --> 00:19:06,720 So again, we're trending in the right direction, but at the end of the day, until the big conventions 303 00:19:06,720 --> 00:19:10,560 start coming back and the corporate business starts coming back, we won't get back to our 304 00:19:10,560 --> 00:19:17,520 normal occupancies that are generally in the 70% range, 65, 70, 75% range depending on 305 00:19:17,520 --> 00:19:18,520 the month. 306 00:19:18,520 --> 00:19:22,360 A couple of the other things just to touch on that we're going to keep doing is make 307 00:19:22,360 --> 00:19:26,200 the travel planning process as easy as possible for visitors. 308 00:19:26,200 --> 00:19:27,400 We're developing a new website. 309 00:19:27,400 --> 00:19:30,880 It's actually a project we started in the beginning of the year before all this. 310 00:19:30,880 --> 00:19:35,080 So we keep tweaking and enhancing our current website, but we have a whole new platform 311 00:19:35,080 --> 00:19:44,120 coming online that's really going to make it much more user friendly, much more interactive 312 00:19:44,120 --> 00:19:49,040 and overall, it's going to connect to our internal CRM database. 313 00:19:49,040 --> 00:19:55,760 So we'll have one seamless software program now for leads generation, for RFPs and things 314 00:19:55,760 --> 00:20:01,280 that come right to our website directly into our systems here internally, which is great. 315 00:20:01,280 --> 00:20:05,200 We're going to really, as everyone knows, with everything going on now, we're trying 316 00:20:05,200 --> 00:20:10,380 to, the whole country, promote things outdoors and where there's larger space. 317 00:20:10,380 --> 00:20:14,780 So we're going to increase awareness about Denton's 300 plus acres of open space. 318 00:20:14,780 --> 00:20:18,720 We're going to build awareness more of our close proximity to Lake Ray Roberts and Lake 319 00:20:18,720 --> 00:20:19,720 Louisville. 320 00:20:19,720 --> 00:20:22,240 Again, we want people to stay here. 321 00:20:22,240 --> 00:20:26,600 You can go boat and go fishing and do those things up in those lakes, but let's stay in 322 00:20:26,600 --> 00:20:28,320 our hotels. 323 00:20:28,320 --> 00:20:30,760 Great things to do outdoors in this area. 324 00:20:30,760 --> 00:20:37,200 We're going to keep promoting Denton's historical sites and the public arts and music venues. 325 00:20:37,200 --> 00:20:41,840 We're going to continue to build strong relationships with select tourism, travel, meeting planners 326 00:20:41,840 --> 00:20:44,280 and event planners. 327 00:20:44,280 --> 00:20:49,760 We need a partner at Downtown Main Street Association and all of our other co-op partners. 328 00:20:49,760 --> 00:20:53,360 The Welcome Center, which I hadn't even touched on, but we're obviously still running that. 329 00:20:53,360 --> 00:20:57,160 We've had to use abbreviated hours with the Welcome Center. 330 00:20:57,160 --> 00:21:01,700 With everything that was going on, it was actually shut down for about 10 weeks, but 331 00:21:01,700 --> 00:21:09,160 it's back open and operating and we're now getting some really good, a decent amount 332 00:21:09,160 --> 00:21:10,160 of foot traffic through there. 333 00:21:10,160 --> 00:21:15,440 The volumes are obviously down at least 50%, but the people that are coming out, we've 334 00:21:15,440 --> 00:21:16,440 redid the floor. 335 00:21:16,440 --> 00:21:22,320 We've got all enhanced safety protocols, the sneeze guards, the hand sanitizer, everything 336 00:21:22,320 --> 00:21:25,680 that is required of every business, everyone wearing a mask. 337 00:21:25,680 --> 00:21:30,400 We're getting real positive feedback about it's a place to come and get a little shopping 338 00:21:30,400 --> 00:21:31,400 in. 339 00:21:31,400 --> 00:21:34,480 Again, we're helping to make that as another excuse for getting people downtown to help 340 00:21:34,480 --> 00:21:37,240 support everything that's around it. 341 00:21:37,240 --> 00:21:41,240 There's a few other things on there. 342 00:21:41,240 --> 00:21:45,200 I hope that addressed everything and obviously I'm here for questions or anything that you 343 00:21:45,200 --> 00:21:46,200 have. 344 00:21:46,200 --> 00:21:53,360 Yeah, that was the last slide. 345 00:21:53,360 --> 00:21:56,640 - Any questions for Mike, Council Member Armitage? 346 00:21:56,640 --> 00:21:57,640 - Yes. 347 00:21:57,640 --> 00:22:00,120 I have several questions. 348 00:22:00,120 --> 00:22:04,800 First I want to say about my laugh, I didn't realize that I didn't have the mute pressed, 349 00:22:04,800 --> 00:22:09,920 but now you know I generally thought that was just wonderful. 350 00:22:09,920 --> 00:22:16,120 You can see the big smile on my face at all of the virtual options and I was clicking 351 00:22:16,120 --> 00:22:22,440 around and looking at what you have up there. 352 00:22:22,440 --> 00:22:23,880 It was really inspiring to me. 353 00:22:23,880 --> 00:22:33,080 I continue to be inspired by how as terrible as this crisis is and I wish that it never 354 00:22:33,080 --> 00:22:39,400 happened this pandemic, it has brought out the creativity in everybody and we are such 355 00:22:39,400 --> 00:22:44,800 a creative town and it's not only our artists who are creative. 356 00:22:44,800 --> 00:22:51,960 I'm just really delighted and inspired by the creativity that I see in these changes 357 00:22:51,960 --> 00:22:58,840 that have come out of necessity, but I hope that we get better as soon as possible and 358 00:22:58,840 --> 00:23:06,520 I hope that the creativity stays with you all, stays with all of us and that it doesn't 359 00:23:06,520 --> 00:23:10,600 only come in emergencies, it's just really wonderful to see. 360 00:23:10,600 --> 00:23:17,320 I was wondering if Discover Denton had thought about putting, and this was something that 361 00:23:17,320 --> 00:23:23,560 I hadn't thought about with Discover Denton until just looking at this just now, with 362 00:23:23,560 --> 00:23:31,360 all the attention nationwide on promoting Black-owned businesses, maybe having a feature 363 00:23:31,360 --> 00:23:38,680 of Black-owned businesses in Denton with links. 364 00:23:38,680 --> 00:23:46,600 That's just a suggestion of mine and I take it or leave it, but I think it would be a 365 00:23:46,600 --> 00:23:52,340 great way both for you all to call attention to local Black-owned businesses, but also 366 00:23:52,340 --> 00:23:58,120 a great way for people who are out there looking for where can I find local Black-owned businesses 367 00:23:58,120 --> 00:24:02,120 to direct them to Discover Denton. 368 00:24:02,120 --> 00:24:05,920 I just see that as a win-win. 369 00:24:05,920 --> 00:24:18,440 I was wondering if you could talk about, for conventions, are there both at Embassy Suites, 370 00:24:18,440 --> 00:24:25,040 or our convention center rather, but also if there's some sort of standardization of 371 00:24:25,040 --> 00:24:34,040 convention practices for our hotels that might have smaller conventions, what is the current 372 00:24:34,040 --> 00:24:40,560 policy about refunds regarding COVID to people? 373 00:24:40,560 --> 00:24:44,560 If there has been a convention scheduled, or say somebody schedules a convention for 374 00:24:44,560 --> 00:24:54,280 next year, and we'll just pick the convention center, is there a guaranteed refund if there's 375 00:24:54,280 --> 00:24:57,760 still COVID going on, or if for COVID reasons? 376 00:24:57,760 --> 00:25:00,120 Yeah, that's a great question. 377 00:25:00,120 --> 00:25:04,160 Obviously, with the different brands and different hotel management companies, everyone has their 378 00:25:04,160 --> 00:25:05,920 own policies. 379 00:25:05,920 --> 00:25:11,920 We can't set their policies, but yes, Deb, they're being very forgiving, obviously. 380 00:25:11,920 --> 00:25:13,920 We've had to be flexible. 381 00:25:13,920 --> 00:25:17,320 They're encouraging people still, "Let's rebook." 382 00:25:17,320 --> 00:25:22,480 Let's say they are booked in October and everything's still happening and they can't have their event. 383 00:25:22,480 --> 00:25:24,800 They're looking to get people rescheduled. 384 00:25:24,800 --> 00:25:27,720 Most groups are very welcoming of that. 385 00:25:27,720 --> 00:25:28,720 They're fine with that. 386 00:25:28,720 --> 00:25:32,760 They still want to meet, but as far as giving individual refunds, I have heard stories, yes, 387 00:25:32,760 --> 00:25:33,760 for sure. 388 00:25:33,760 --> 00:25:34,760 They've been very flexible. 389 00:25:34,760 --> 00:25:38,760 It was a little tougher back in March and April, to be honest, because it was new to 390 00:25:38,760 --> 00:25:39,800 them too. 391 00:25:39,800 --> 00:25:40,800 Hotels are pretty rigid. 392 00:25:40,800 --> 00:25:42,800 They've got contracts just like everyone else. 393 00:25:42,800 --> 00:25:44,880 I spent 20 years working in the hotel industry. 394 00:25:44,880 --> 00:25:49,600 They get protective of their groups, but obviously, everyone's had to adapt and pivot, and they 395 00:25:49,600 --> 00:25:56,320 are being very flexible with their terms, much more loose than they used to be, whether 396 00:25:56,320 --> 00:25:58,920 it was a force majeure event or not. 397 00:25:58,920 --> 00:26:02,240 Now, the meeting planner is on the flip side too. 398 00:26:02,240 --> 00:26:06,600 They're getting savvier and they're asking to write clauses into their contracts that 399 00:26:06,600 --> 00:26:08,160 do protect them for those things. 400 00:26:08,160 --> 00:26:11,640 Yeah, I think it's both sides working together, like everything. 401 00:26:11,640 --> 00:26:15,960 We've all had to do things different, and at the end of the day, it's just the right 402 00:26:15,960 --> 00:26:16,960 thing to do. 403 00:26:16,960 --> 00:26:24,840 If a group can't come because there are attendees, there's a lockdown or whatever it might be, 404 00:26:24,840 --> 00:26:30,600 there's just enhanced protocols, the hotels are going to be as flexible as they can. 405 00:26:30,600 --> 00:26:36,400 But again, we can give guidance on that, but we've got so many big brands in town with 406 00:26:36,400 --> 00:26:41,240 Hilton and Marriott and Best Western, and they're all doing their own thing. 407 00:26:41,240 --> 00:26:45,920 But I guess the communication has been good, we've been working together, and they use 408 00:26:45,920 --> 00:26:49,400 us as the conduit for that so that everyone can share practices. 409 00:26:49,400 --> 00:26:50,400 Wonderful. 410 00:26:50,400 --> 00:26:54,560 Well, that is really great to hear, and that makes a lot of sense. 411 00:26:54,560 --> 00:26:57,020 I'm glad to hear that. 412 00:26:57,020 --> 00:27:02,040 And I wonder to what extent this, and it looks like you're already thinking this way from 413 00:27:02,040 --> 00:27:11,080 the rebooking campaign, to what extent can Denton's flexibility, at least as you say, 414 00:27:11,080 --> 00:27:15,960 it's not standardized because you've got these nationwide, including nationwide, not just 415 00:27:15,960 --> 00:27:22,520 local brands, but to what extent can Denton's flexibility be used, not only to encourage 416 00:27:22,520 --> 00:27:27,840 people who are already booked to rebook instead of canceling, but to encourage people who 417 00:27:27,840 --> 00:27:33,040 are thinking about booking a new convention, hey, come book with us because we're going 418 00:27:33,040 --> 00:27:37,560 to be, if something comes up, if that's what's preventing you, if something comes up, we're 419 00:27:37,560 --> 00:27:39,360 going to be flexible. 420 00:27:39,360 --> 00:27:43,360 We're going to help you, I'm not saying a guaranteed refund, but help you rebook. 421 00:27:43,360 --> 00:27:44,840 So I would just, you don't have to answer that. 422 00:27:44,840 --> 00:27:45,840 I would just say I would continue. 423 00:27:45,840 --> 00:27:56,840 I think it's a great idea to promote rebooking, and I think to use that as an actual marketing. 424 00:27:56,840 --> 00:28:00,840 It's a great thought, and one other thing that we're using are kind of the nimbleness 425 00:28:00,840 --> 00:28:03,520 of being a smaller town. 426 00:28:03,520 --> 00:28:11,240 We're not small, but groups are looking at, they're looking at a Dallas or they're looking 427 00:28:11,240 --> 00:28:12,840 at a Fort Worth. 428 00:28:12,840 --> 00:28:16,680 There's millions of people there, and we're using our advantage of being a little smaller 429 00:28:16,680 --> 00:28:21,540 destination that there's less crowds, there's less people. 430 00:28:21,540 --> 00:28:24,680 So those are some of the things that we're trying to do, and how do we strategize and 431 00:28:24,680 --> 00:28:27,940 use our effectively? 432 00:28:27,940 --> 00:28:33,120 If I may, I wanted to just report on a great example I have of that has actually just happened. 433 00:28:33,120 --> 00:28:35,440 I got word on it over the weekend. 434 00:28:35,440 --> 00:28:40,360 We were bidding for a convention, the city of Denton, in our convention center, for the 435 00:28:40,360 --> 00:28:45,520 Northeast County Judges and Commissioners Association Conference for 2022, and it's 436 00:28:45,520 --> 00:28:49,560 a conference we've been on twice before in previous years. 437 00:28:49,560 --> 00:28:55,000 We made it to 18 cities submitted proposals. 438 00:28:55,000 --> 00:28:58,560 What we did with, again, as the timing, we got more creative over the last month. 439 00:28:58,560 --> 00:29:03,580 We were able to put together a video of Denton and some of the protocols that are in place 440 00:29:03,580 --> 00:29:05,560 at the convention center and the embassy suites. 441 00:29:05,560 --> 00:29:09,200 We worked together with them because the group was looking at the convention center, put 442 00:29:09,200 --> 00:29:13,320 together a video, and we submitted that with our proposal. 443 00:29:13,320 --> 00:29:19,880 We made it to the final three, which was three cities were us, Grapevine, and Rockwall. 444 00:29:19,880 --> 00:29:25,360 So we were competing against the Gaylord Texan, much bigger hotel than any hotel around here, 445 00:29:25,360 --> 00:29:30,240 the Hilton Rockwall, and their CVB, and then it was the embassy suites and the convention 446 00:29:30,240 --> 00:29:31,240 center. 447 00:29:31,240 --> 00:29:35,480 Last week was the presentation, and Ruben Perez from our team and Josh Delgado from 448 00:29:35,480 --> 00:29:40,100 the embassy suites actually went to their 2020 convention, which was still taking place 449 00:29:40,100 --> 00:29:41,960 in Nacogdoches. 450 00:29:41,960 --> 00:29:47,600 We were the only group that actually went and presented in person, and we just got word 451 00:29:47,600 --> 00:29:50,360 the other day that we won the bid. 452 00:29:50,360 --> 00:29:54,780 So again, it was our efforts of working collaboration with the hotels. 453 00:29:54,780 --> 00:29:59,240 We actually took the time to go down there and make the presentation in person. 454 00:29:59,240 --> 00:30:04,480 Some of the feedback, I think, was that we were not that large hotel like the Texan, 455 00:30:04,480 --> 00:30:10,000 but ultimately it was that it was a combination of the proposal put together, the relationship 456 00:30:10,000 --> 00:30:14,120 of Discover Denton working with the convention center, and then the fact that our city and 457 00:30:14,120 --> 00:30:17,580 hotel took the time to actually go down there and present in person. 458 00:30:17,580 --> 00:30:18,920 And I'm proud to say we won the bid. 459 00:30:18,920 --> 00:30:25,040 It's for July of 2022, the group's going to be over 500 room nights, and it'll be over 460 00:30:25,040 --> 00:30:28,520 $100,000 in room revenue for the city. 461 00:30:28,520 --> 00:30:33,000 So we're real proud of that, and I'm sorry if I overstepped just telling that, but I 462 00:30:33,000 --> 00:30:34,000 wanted to. 463 00:30:34,000 --> 00:30:36,600 It was very exciting to know that we're still booking groups, and this one just literally 464 00:30:36,600 --> 00:30:41,040 got put in front of me the other day, so we're really excited about that one. 465 00:30:41,040 --> 00:30:42,040 Yeah. 466 00:30:42,040 --> 00:30:43,040 And thank you so much for that example. 467 00:30:43,040 --> 00:30:46,800 I know I, for one, love hearing that. 468 00:30:46,800 --> 00:30:47,800 That's a wonderful story. 469 00:30:47,800 --> 00:30:50,620 Thank you. 470 00:30:50,620 --> 00:30:54,880 I don't know if Jesse and Chris, I don't know if you want me to continue, I had several 471 00:30:54,880 --> 00:31:01,060 more questions, but if we should rotate, if others have questions, if I should ask my 472 00:31:01,060 --> 00:31:03,100 several others now. 473 00:31:03,100 --> 00:31:06,380 I don't have any specific questions from Mike Marruats. 474 00:31:06,380 --> 00:31:07,380 Do you have questions? 475 00:31:07,380 --> 00:31:09,180 I don't have any, no. 476 00:31:09,180 --> 00:31:13,160 If we could, if we could move just as quickly as possible, we still have a lot of numbers 477 00:31:13,160 --> 00:31:16,100 to talk about this morning. 478 00:31:16,100 --> 00:31:18,040 So if we could. 479 00:31:18,040 --> 00:31:24,520 I will just, I will limit it to two then, and I can follow up with Mike, maybe you and 480 00:31:24,520 --> 00:31:28,560 I can, we can have our Zoom meeting and talk. 481 00:31:28,560 --> 00:31:29,560 Anytime. 482 00:31:29,560 --> 00:31:30,560 Yep. 483 00:31:30,560 --> 00:31:31,560 No problem. 484 00:31:31,560 --> 00:31:45,240 So, but my next question is about, have y'all thought about discounts having, by y'all, 485 00:31:45,240 --> 00:31:52,360 I guess I should say the convention center, embassy suites, but also maybe if you've heard 486 00:31:52,360 --> 00:32:00,280 of other local hoteliers, thinking about how the impending need coming up with schools 487 00:32:00,280 --> 00:32:08,440 starting, whether or not there's going to be virtual only, I guess we'll find out soon, 488 00:32:08,440 --> 00:32:18,520 now they can do virtual school only, but if there is the online option, we're going to 489 00:32:18,520 --> 00:32:23,640 have some kids in the schools and there's also going to be parents who are looking, 490 00:32:23,640 --> 00:32:28,080 working parents who want to go online, who are looking for kind of safe spaces to do 491 00:32:28,080 --> 00:32:37,460 kind of smaller scale child care, you know, is that the kind of thing that a parent should 492 00:32:37,460 --> 00:32:44,700 consider using maybe embassy suites or hotels for, or is there some, is there some barrier 493 00:32:44,700 --> 00:32:49,960 to that, you know, that I might not know about, that is to say, you know, given that that 494 00:32:49,960 --> 00:32:56,720 hotel rooms or hotel suites are kind of clean, neutral spaces, maybe to get some help to 495 00:32:56,720 --> 00:33:01,200 get some daytime business for hotels, is that an option? 496 00:33:01,200 --> 00:33:07,560 Yeah, it actually is, and I know a few of the hotels, the embassy suites was one in 497 00:33:07,560 --> 00:33:11,920 best western premiere, they've had day rates available, really, they were the first to 498 00:33:11,920 --> 00:33:16,440 come out with it back back in March and April for some people that wanted to not go to the 499 00:33:16,440 --> 00:33:20,760 office, but they did want to have a safe space or, you know, they didn't have a home office, 500 00:33:20,760 --> 00:33:25,240 let's say, so but they had to go, they wanted to be away from their family and you know, 501 00:33:25,240 --> 00:33:29,360 if they were going to work, so they are offering daily day rates, which is something normally 502 00:33:29,360 --> 00:33:34,440 hotels don't do, where you can come in for like eight hours and they're offering a special 503 00:33:34,440 --> 00:33:35,440 rate. 504 00:33:35,440 --> 00:33:38,820 So there's a few doing that now, specifically for daycare and things. 505 00:33:38,820 --> 00:33:43,060 I hadn't heard of that, but I know, you know, just in general, the staycation has gotten 506 00:33:43,060 --> 00:33:48,640 very popular, anyone with a pool, that's what's helping the hotels right now and running their 507 00:33:48,640 --> 00:33:54,200 50% occupancies is a lot of them are locals and are regional people coming with families 508 00:33:54,200 --> 00:33:57,920 and staying the night now, as school moves on, that could be something we could suggest 509 00:33:57,920 --> 00:34:00,200 to them, so I could certainly bring that to the table. 510 00:34:00,200 --> 00:34:06,920 Well, well, thank you so much and yes, so please send me an email and would love to 511 00:34:06,920 --> 00:34:12,880 set up, you know, maybe an hour, an hour or two, you know, when you have time and to just 512 00:34:12,880 --> 00:34:22,760 learn more about everything that's going on and, you know, how we can just what what you 513 00:34:22,760 --> 00:34:28,760 all are doing because I'm really inspired by the by the creativity and the flexibility 514 00:34:28,760 --> 00:34:35,760 that I'm seeing and I know it's been a real struggle for the hotel industry. 515 00:34:35,760 --> 00:34:40,200 So anyway, thank you for coming and speaking to us and thank you to, you know, Jesse and 516 00:34:40,200 --> 00:34:46,440 Chris for indulging me all my questions, but we continue the rest offline, but I'm glad 517 00:34:46,440 --> 00:34:49,800 also that, you know, the public is an opportunity to hear some of this too. 518 00:34:49,800 --> 00:34:55,160 No, I appreciate the time and we're always here to tell our story and, yeah, and again, 519 00:34:55,160 --> 00:34:58,320 at the end of this month, we're having our next advisory board meeting. 520 00:34:58,320 --> 00:35:01,960 So we'll be putting together really a whole compilation of the last quarter of information. 521 00:35:01,960 --> 00:35:04,160 So all that's being worked on right now. 522 00:35:04,160 --> 00:35:09,400 So again, I'm always available for any of you guys if you want to speak offline and 523 00:35:09,400 --> 00:35:10,800 we're here to help and serve. 524 00:35:10,800 --> 00:35:14,480 So we're here to get through this thing with everybody. 525 00:35:14,480 --> 00:35:22,400 So again, thank you for the time and if that's it, I'll disappear. 526 00:35:22,400 --> 00:35:26,280 Thank you for hopping on the call with us and for the information and thank you in advance 527 00:35:26,280 --> 00:35:27,280 too. 528 00:35:27,280 --> 00:35:29,680 Our next agenda item is looking at the budget requests. 529 00:35:29,680 --> 00:35:35,120 Appreciate your organization's forethought and attention to detail in that budget request. 530 00:35:35,120 --> 00:35:37,840 It's going to be very helpful in our decision making. 531 00:35:37,840 --> 00:35:38,840 Thank you. 532 00:35:38,840 --> 00:35:39,840 Thank you, Jesse. 533 00:35:39,840 --> 00:35:40,840 I appreciate it. 534 00:35:40,840 --> 00:35:47,640 Okay, anything else from council members on this agenda item and then we'll close this 535 00:35:47,640 --> 00:35:54,320 out and move on to item 1C hot 20 dash zero two three, receive a report, hold a discussion, 536 00:35:54,320 --> 00:35:58,800 provide recommendations regarding hotel occupancy tax funding levels and budget requests for 537 00:35:58,800 --> 00:36:03,880 program year 2021 and fiscal year 2020 to 2021. 538 00:36:03,880 --> 00:36:04,880 Okay. 539 00:36:04,880 --> 00:36:11,360 This has a very tiny presentation, so hopefully this will come up and work for us again. 540 00:36:11,360 --> 00:36:15,640 Let me get that up for us. 541 00:36:15,640 --> 00:36:21,800 Hey, just wants to work quickly for us. 542 00:36:21,800 --> 00:36:22,800 Okay. 543 00:36:22,800 --> 00:36:24,280 Everybody on board with that? 544 00:36:24,280 --> 00:36:25,280 Okay. 545 00:36:25,280 --> 00:36:26,280 All right. 546 00:36:26,280 --> 00:36:29,440 So basically this is a very short version of the presentation. 547 00:36:29,440 --> 00:36:33,520 You've seen the last couple of hot committee meetings that we've brought to you the past 548 00:36:33,520 --> 00:36:37,960 two months and we're just going to go over our hot assumptions, the fund balances, and 549 00:36:37,960 --> 00:36:44,600 then open it up for discussions on all the recipients' requests in their application 550 00:36:44,600 --> 00:36:52,080 and as well as their budget requests that are embedded in those applications. 551 00:36:52,080 --> 00:36:57,160 So first we have that the program year 20 revenue estimate is based on actuals less 552 00:36:57,160 --> 00:37:00,240 than 25% of the budget. 553 00:37:00,240 --> 00:37:06,360 So for actuals we have October through May currently, and then June through September 554 00:37:06,360 --> 00:37:08,760 is the 25% we're basing off of budget. 555 00:37:08,760 --> 00:37:14,480 So that's where we have received or have indicated what our 20 current estimate is. 556 00:37:14,480 --> 00:37:22,520 And our expenditures are reflective of our last meeting when we brought to you the mid-year 557 00:37:22,520 --> 00:37:28,840 budget updates from our recipients who showed around 469,000, I believe, impossible refunds 558 00:37:28,840 --> 00:37:35,840 for this year due to COVID, impacts of cancellations or postponements or delays, and so our current 559 00:37:35,840 --> 00:37:42,320 year estimates are already embedded in those numbers when we get to our fund balance sheets. 560 00:37:42,320 --> 00:37:47,640 And then for the 21 revenue estimate we're calculating a 35% less than current year budget, 561 00:37:47,640 --> 00:37:55,680 which is the same that we have shown in any other fund balance worksheet like this one 562 00:37:55,680 --> 00:37:59,640 that we have shown to you in the previous couple of meetings. 563 00:37:59,640 --> 00:38:04,040 So since our last meeting on June 11th we've only received one more month of revenue and 564 00:38:04,040 --> 00:38:07,040 that was May and it was around $90,000. 565 00:38:07,040 --> 00:38:13,520 So that's the only difference really you see here in the year to date and the estimated 566 00:38:13,520 --> 00:38:19,120 year is that one more month with all others and then also one more month with embassy 567 00:38:19,120 --> 00:38:21,480 so that that has changed a bit. 568 00:38:21,480 --> 00:38:26,800 So overall this is the snapshot you've seen before but as we go into discussions you'll 569 00:38:26,800 --> 00:38:31,240 see the main fund balance worksheet that we're going to look at that has every expenditure 570 00:38:31,240 --> 00:38:34,300 on there from every requested recipient. 571 00:38:34,300 --> 00:38:38,920 So we'll go into that in a minute but this is the snapshot we've kind of shown you over 572 00:38:38,920 --> 00:38:41,200 the last couple of months. 573 00:38:41,200 --> 00:38:48,520 And this is just kind of where we are we're projecting a 1.6 million in revenue for 2021 574 00:38:48,520 --> 00:38:53,160 for all others you know and the embassy suites is always there but they're an in and out 575 00:38:53,160 --> 00:39:02,820 because we pay them 100% out what they put in so the projection is the 1.6. 576 00:39:02,820 --> 00:39:07,320 And really that's all I have for this before we get into the others. 577 00:39:07,320 --> 00:39:14,360 Other than saying any information on your AIS sheet does include that we have one recipient 578 00:39:14,360 --> 00:39:21,400 in the 2020 year the Denton Arts and Jazz Festival that is going to keep the $31,250 579 00:39:21,400 --> 00:39:24,800 in their current year and we're going to amend that budget and contract so they're going 580 00:39:24,800 --> 00:39:29,400 to take the $31,000 forward with them so you might want to take that into consideration 581 00:39:29,400 --> 00:39:33,640 when you're looking at the 2021 requests. 582 00:39:33,640 --> 00:39:39,880 Other than that they are the only one that has rollover money to be spent for next year. 583 00:39:39,880 --> 00:39:48,600 Mayor Wallace did I see your hand yes Randy on the last let me get back to this on on 584 00:39:48,600 --> 00:39:58,640 the Hot Fund Summary slide because the one I see in the backup is a little bit different 585 00:39:58,640 --> 00:40:01,920 than this one. 586 00:40:01,920 --> 00:40:06,880 The one in the backup and I was looking to make sure I didn't miss the one in the backup 587 00:40:06,880 --> 00:40:14,880 adds back in the unspent funds and I think I'm looking at the right one. 588 00:40:14,880 --> 00:40:19,440 You want me to pull that up because that's what we'll be sharing on the screen most of 589 00:40:19,440 --> 00:40:20,440 the time. 590 00:40:20,440 --> 00:40:26,720 Oh the other one look at it yes let's go ahead and I'll pull that up yeah. 591 00:40:26,720 --> 00:40:36,720 Are we talking about this one no no it's it's the Hot Fund Summary it's the same 592 00:40:36,720 --> 00:40:42,720 slide that it had underneath if you go back to the Hot Fund Summary it's slide four of 593 00:40:42,720 --> 00:40:46,040 the presentation in this agenda item in the backup. 594 00:40:46,040 --> 00:40:52,240 It shows estimated unspent funds of 476,000 change in fund balance and it says revised 595 00:40:52,240 --> 00:41:00,800 change in fund balance is 199,000 for an updated fund balance of 2.231 and then when you carry 596 00:41:00,800 --> 00:41:04,900 that forward I think I'm looking at the right meeting let me make sure I think we took that 597 00:41:04,900 --> 00:41:09,360 out of this meeting that there was two extra lines on the previous meeting on this fun 598 00:41:09,360 --> 00:41:14,840 sheet from June looking at the right now I'm looking at the right I'm looking at the right 599 00:41:14,840 --> 00:41:21,560 meeting is for the 20th yeah the 20th today it's it's in it's on agenda item C and when 600 00:41:21,560 --> 00:41:36,000 I hit that and go to exhibit six which is the presentation and it's slide four it shows 601 00:41:36,000 --> 00:41:44,280 those other those other items so that that's mayor it's all it's the same I see the slide 602 00:41:44,280 --> 00:41:49,640 it's the same information that in the previous format it was just pointing out that it was 603 00:41:49,640 --> 00:41:54,520 $810,000 change in fund balance in the presentation rain to give it just didn't didn't have that 604 00:41:54,520 --> 00:41:59,400 additional information but if you look at the revenues and expenses they're the same 605 00:41:59,400 --> 00:42:06,160 on that well no the only question I have David is in the preliminary FY 2021 beginning fund 606 00:42:06,160 --> 00:42:13,640 balance it shows 1.754 million but that doesn't but down at the bottom on this slide I'm looking 607 00:42:13,640 --> 00:42:23,600 at it says updated fund balance based upon it is 2.231 million so it didn't go ahead 608 00:42:23,600 --> 00:42:28,040 that that's that two point that that's a calculation error I believe the 2.2 the one point that 609 00:42:28,040 --> 00:42:33,720 and that's probably why the presentation was updated on when Randy was presenting well 610 00:42:33,720 --> 00:42:38,200 they only okay and that and that may be so the only thing I'm looking at though is when 611 00:42:38,200 --> 00:42:43,520 you have the estimate because the slide that was in the presentation stopped those lines 612 00:42:43,520 --> 00:42:51,480 stopped at estimated unspent fund balance of 476,986 and so then it looks like what happened 613 00:42:51,480 --> 00:42:59,760 was the 199,217 is the difference between the 277 minus number that the negative number 614 00:42:59,760 --> 00:43:07,640 added with the 476 and then the 199 gets added to the 1.754 in fund balance right there this 615 00:43:07,640 --> 00:43:13,880 highlighted in but can we pull the slide up the the the hot fun summary that was in the 616 00:43:13,880 --> 00:43:17,440 presentation that's what I'm trying I'm trying to find I mean no I'm talking about the one 617 00:43:17,440 --> 00:43:25,240 that you that you did the one I just did yeah okay this one here correct no no no it's the 618 00:43:25,240 --> 00:43:33,440 it's the one pretty just the summary hot fun summary I guess I'm confused because my my 619 00:43:33,440 --> 00:43:40,200 the slide from the power point you showed us just now I think Randy I think you need 620 00:43:40,200 --> 00:43:49,320 to stop share of the yeah I'm looking at an Excel spreadsheet yeah okay yeah all right 621 00:43:49,320 --> 00:43:58,720 so we want just that hot fun summary that's a like a eight or nine line summary yeah right 622 00:43:58,720 --> 00:44:05,440 there yes okay that was okay stop share and reshare gotcha okay so so I see the estimated 623 00:44:05,440 --> 00:44:12,200 unspent funds let me let me see if I can't I can't really read those are the recipients 624 00:44:12,200 --> 00:44:17,560 numbers they gave us last meeting that's the amount the recipients expect not to spend 625 00:44:17,560 --> 00:44:24,640 this year so mayor I think I can clarify that that line on the S the row on estimated unspent 626 00:44:24,640 --> 00:44:29,400 funds is just telling you what you're seeing in the estimate if you look at the recipients 627 00:44:29,400 --> 00:44:34,200 budget versus your recipients estimate so that's just for reference the slide that was 628 00:44:34,200 --> 00:44:39,560 in the presentation just incorrectly that bottom row was kind of double counting that 629 00:44:39,560 --> 00:44:47,120 or just calculating incorrectly so the 1.75 is the accurate estimated fund balance assuming 630 00:44:47,120 --> 00:44:53,160 the estimates that were submitted by the recipients okay so are you looking at the slide I'm looking 631 00:44:53,160 --> 00:44:59,000 at that's got those lines broken out I am yeah okay so help me go through this so under 632 00:44:59,000 --> 00:45:03,560 the estimate the councilmember armature and councilmember Davis do they have that slide 633 00:45:03,560 --> 00:45:12,040 up as well it's page four of the summary yeah you're asking about the one from the backup 634 00:45:12,040 --> 00:45:18,280 yes yeah I've got that okay I just want to make sure everybody can follow me yeah so 635 00:45:18,280 --> 00:45:23,280 so when I see the estimate of the beginning fund balance at 2.032 million that's carried 636 00:45:23,280 --> 00:45:29,320 over from I guess I don't know where it's carried over from because it shows the end 637 00:45:29,320 --> 00:45:34,440 fund balance on the budget is 1.99 but we're going to go with the 2032 so then it says 638 00:45:34,440 --> 00:45:42,800 in fund balance is 175 4841 and the 277,000 is the delta between the two million and the 639 00:45:42,800 --> 00:45:50,600 1.754 million well then what I'm seeing is the estimated unspent funds is four hundred 640 00:45:50,600 --> 00:45:56,760 thousand dollars which means that's money coming back into the hot funds and so when 641 00:45:56,760 --> 00:46:04,800 that money comes back into it it's saying all right we've got 1.754 million and now 642 00:46:04,800 --> 00:46:14,040 we're going to have another 476,000 coming in which adds up to that 2.231830 so I don't 643 00:46:14,040 --> 00:46:19,760 see anything really necessarily being double counted unless that 476 is somewhere up here 644 00:46:19,760 --> 00:46:23,960 in the revenue and expenditures it that's what that's what's happening at the force 645 00:46:23,960 --> 00:46:29,120 so the sliding the backup was just incorrect on those bottom those bottom lines of 476 646 00:46:29,120 --> 00:46:33,360 is accounted for when you look at that if you look at the expenditures right look at 647 00:46:33,360 --> 00:46:39,560 the budget for recipients to 2.5 kind of take that forward to the estimate the two million 648 00:46:39,560 --> 00:46:44,960 that's where that difference is so that row is really just for reference but this in the 649 00:46:44,960 --> 00:46:50,200 backup it was counting for him fair enough okay thank you very much for helping me understand 650 00:46:50,200 --> 00:46:56,700 that absolutely I I read that line as here's what the fund balance is until we start spending 651 00:46:56,700 --> 00:47:03,200 this year I thought those those things added up correctly on that slide I read that line 652 00:47:03,200 --> 00:47:11,560 as 2.231 is what we have in the fund until we start drawing out for this year's requests 653 00:47:11,560 --> 00:47:16,720 and then if we did if we if we funded this year's requests then the fund balance as requested 654 00:47:16,720 --> 00:47:24,480 the fund balance would be the 944,000 the only problem the only thing Jesse is Mr. Chairs 655 00:47:24,480 --> 00:47:31,160 when you go up to the proposed fi 2021 beginning fund balance he doesn't show the 2.2 doesn't 656 00:47:31,160 --> 00:47:37,520 match got it so that's why there's he's he's saying that the estimated unspent funds that 657 00:47:37,520 --> 00:47:42,120 should just be something that's just somewhere else because apparently it's it's in this 658 00:47:42,120 --> 00:47:47,920 what when I wait to see well now hold on a second David on the on the on the recipients 659 00:47:47,920 --> 00:47:56,600 it shows 2.531984 for the budget and then it says the estimate is basically two million 660 00:47:56,600 --> 00:48:05,920 all right and you're saying that the 476,000 that that's the difference there is that correct 661 00:48:05,920 --> 00:48:15,400 correct all right and so that 476,989 shouldn't be anywhere close to another mathematical equation 662 00:48:15,400 --> 00:48:23,360 it's already been taken but but when they go to get back they've already they've already 663 00:48:23,360 --> 00:48:30,040 paid it well okay this is where it's meant this is so it has to be added back because 664 00:48:30,040 --> 00:48:38,280 we've expended 2.531984 that that's the amount that if we had the budget and now we're only 665 00:48:38,280 --> 00:48:44,240 saying that the 2049496 is what's actually going to be spent so you have these savings 666 00:48:44,240 --> 00:48:52,480 but the question becomes are those savings is it money that's already been paid out or 667 00:48:52,480 --> 00:48:58,080 is it money that's that that's just a line item budget kind of entry because if it's 668 00:48:58,080 --> 00:49:04,560 money that if we've paid out 2.531 million dollars but the expenditures are only 2 million 669 00:49:04,560 --> 00:49:11,320 49 let's say we paid all the money out then we then that 476 thousand dollars is actual 670 00:49:11,320 --> 00:49:22,360 dollars coming back into the the hot funds correct so on on the fund balance worksheet 671 00:49:22,360 --> 00:49:27,040 not the one that's in the slideshow it'll show you it shows us our current budget as 672 00:49:27,040 --> 00:49:32,880 2.5 which i'll bring up in a second and then the estimate for expenditures which is less 673 00:49:32,880 --> 00:49:40,280 everybody's expected unused money due to covid brings us down to the 2 million so when our 674 00:49:40,280 --> 00:49:49,240 estimate rolls up to the 175 it's already inclusive of the 400,000 if you will give 675 00:49:49,240 --> 00:49:57,080 or take let me this is what we this is what we usually play off once we get here is this 676 00:49:57,080 --> 00:50:01,200 in our presentation is this in the backup anywhere this right here was attached to the 677 00:50:01,200 --> 00:50:06,200 email notification because this is what i usually print out as your handout it's also 678 00:50:06,200 --> 00:50:14,880 labeled financials in your hot item okay let me let me look at that so i have access to 679 00:50:14,880 --> 00:50:20,320 this in the backup information for this meeting yes okay it's under your hot agenda item labels 680 00:50:20,320 --> 00:50:26,680 financials okay financials all right so we got well i've only got one of one which is 681 00:50:26,680 --> 00:50:33,440 the hotel occupancy tax july 20 2020 is that what we're talking about okay this is it all 682 00:50:33,440 --> 00:50:48,120 right um so the 2020 budget uh okay let me look up total total expenditures two five 683 00:50:48,120 --> 00:50:59,160 okay this is yeah this is where i'm this is where i'm getting uh confused because and 684 00:50:59,160 --> 00:51:02,720 somebody chime in if if they've got some ideas to help me understand this and i'm pretty 685 00:51:02,720 --> 00:51:08,240 good math but somehow this is this is throwing me because when i hear that we have money 686 00:51:08,240 --> 00:51:13,400 that's coming back in other words people who have not spent the money they have to pay 687 00:51:13,400 --> 00:51:21,060 it back which tells me that if we've got 2.5 million dollars that we that we've got as 688 00:51:21,060 --> 00:51:25,400 budgeted expenditures and let's say for this purpose of discussion all that money's been 689 00:51:25,400 --> 00:51:32,120 sent out it will be yes sir okay so now what we're hearing is so these people have have 690 00:51:32,120 --> 00:51:41,800 got 2.5 million dollars but they've only spent two million dollars right okay so so that 691 00:51:41,800 --> 00:51:48,200 means somebody's holding close to half a million dollars that they have to give back to us 692 00:51:48,200 --> 00:51:53,240 and so when they give that back to us that's an additional 400 in other words the total 693 00:51:53,240 --> 00:52:00,680 expenditures line um should still almost when you add back in the money the total expenditures 694 00:52:00,680 --> 00:52:08,440 line um should almost it's not when you add it back it's sort of you're adding back the 695 00:52:08,440 --> 00:52:16,680 expense but these we've expended 2.5 million but we i mean we we pay 2.5 million out but 696 00:52:16,680 --> 00:52:22,560 they've only yeah thank you but they've only spent two million four to 180,000 so now let's 697 00:52:22,560 --> 00:52:26,520 just stop right there for a second because the convention center the incentive expenditures 698 00:52:26,520 --> 00:52:30,800 those cancel out so i'm not even those that there's a line item for those in the revenues 699 00:52:30,800 --> 00:52:36,680 there's a line item so let's just stop right there so this is the picture now what we're 700 00:52:36,680 --> 00:52:47,520 saying is that the delta there is money that wasn't spent that is due back to us am i right 701 00:52:47,520 --> 00:52:56,200 on that correct it'll be due back to us in january 2021 okay so let's say it's one organization 702 00:52:56,200 --> 00:53:06,120 and so they write us a check back for 486,000 or 476 whatever it was where on this sheet 703 00:53:06,120 --> 00:53:15,600 would that show up it won't show up until we actually receive it under the 2020 estimate 704 00:53:15,600 --> 00:53:20,280 we already show the reductions here that's how we're getting to the two four two zero 705 00:53:20,280 --> 00:53:24,860 four nine because they've already projected that estimate right but the reductions the 706 00:53:24,860 --> 00:53:29,360 reductions are just reductions that doesn't that doesn't take into account the money that 707 00:53:29,360 --> 00:53:34,240 they're paying us back that's just what they've spent so some of these organizations are still 708 00:53:34,240 --> 00:53:43,080 holding cash that they have to give us back so that that that 476 has to be accounted 709 00:53:43,080 --> 00:53:49,880 for in some budget saying we're going to receive this money back uh so does it follow up in 710 00:53:49,880 --> 00:53:56,640 fund balance doesn't it follow up yeah the estimate column is not what they've spent 711 00:53:56,640 --> 00:54:02,040 today that's their estimate to spend throughout the remainder of the of the of the program 712 00:54:02,040 --> 00:54:08,800 year so the 470,000 is shown we're looking at it on from a fund balance perspective just 713 00:54:08,800 --> 00:54:14,720 in the estimate reductions on the expense side in actual terms right we're going to 714 00:54:14,720 --> 00:54:20,600 spend that 2.5 this fiscal year next fiscal year we're going to get it back just for the 715 00:54:20,600 --> 00:54:25,040 sake of kind of simplicity for having the conversation we've just shown the expense 716 00:54:25,040 --> 00:54:31,240 reductions here on that column but just to be clear that column is is based completely 717 00:54:31,240 --> 00:54:38,160 on those estimates that the that the entities gave is that does that help kind of show the 718 00:54:38,160 --> 00:54:44,720 way that we're walking forward it does but so then i've got another it does but i still 719 00:54:44,720 --> 00:54:49,640 think there's something i mean and i'm not an accountant but there's there's still something 720 00:54:49,640 --> 00:54:54,440 so let's just go to the and i just think this is important because it increases that fund 721 00:54:54,440 --> 00:55:00,080 balance next year if somehow it's added back so when i look at this i go okay we have paid 722 00:55:00,080 --> 00:55:07,040 out cash and i'm assuming this so just we've paid out 2.5 million dollars and so if they 723 00:55:07,040 --> 00:55:16,400 spent everything the way they were supposed to our fund balance would be 1.991284 right 724 00:55:16,400 --> 00:55:23,160 and again i'm using the i'm using the subtotal for the economic incentive expenditures for 725 00:55:23,160 --> 00:55:29,080 the for the convention center those cancel each other out so that's almost a zero so 726 00:55:29,080 --> 00:55:33,480 we're really it's it's as if those two columns are zero and we're just dealing with the normal 727 00:55:33,480 --> 00:55:38,440 sort of hot fund expenditures so let's say then for instance let's just use that column 728 00:55:38,440 --> 00:55:43,240 forget the expenditures forget the expenditure side so we got one point trying to read is 729 00:55:43,240 --> 00:55:52,320 that nine million 1.991 million okay so we got 1.991 million now of that 2.5 million 730 00:55:52,320 --> 00:55:59,640 those people are only spending two million dollars so forget the estimate on the expenditure 731 00:55:59,640 --> 00:56:05,880 side you know the the with the reduction so what we know is okay guys y'all didn't y'all 732 00:56:05,880 --> 00:56:13,840 didn't spend 2.5 million you've got to pay us back 476 000 all right we've already put 733 00:56:13,840 --> 00:56:20,360 out the 2.5 million so the 476 000 if we just deal with the first column would come in as 734 00:56:20,360 --> 00:56:26,760 an addition to the fund balance because they're paying it back so somehow we're double we're 735 00:56:26,760 --> 00:56:32,440 double subtracting it because you're saying it's taken into consideration under the expenditures 736 00:56:32,440 --> 00:56:37,080 but we're not taking it in consideration as a revenue stream because we've already paid 737 00:56:37,080 --> 00:56:40,440 it back and it's got to come back to us we're just sort of calculating it there because 738 00:56:40,440 --> 00:56:49,720 i don't know how the fund balance could only be 200 it's it's less um so i'm really confused 739 00:56:49,720 --> 00:56:53,600 reductions i think i think part of that too correct me if i'm wrong david but i think 740 00:56:53,600 --> 00:56:57,920 part of what's reducing that fund balance is how much less we're going to take in the 741 00:56:57,920 --> 00:57:05,280 assumptions that we're building into um into the the revenue for the rest of this year 742 00:57:05,280 --> 00:57:10,880 and next year so i i've read the drop as um i'm glad you caught this i'm glad you're bringing 743 00:57:10,880 --> 00:57:15,200 it up to make sure that additional almost half a million is built into the correctly 744 00:57:15,200 --> 00:57:20,240 built into the fund balance estimate but i read it as we're going to have a significant 745 00:57:20,240 --> 00:57:24,720 drop in the fund balance just due to spending the money that's not coming in yeah and that's 746 00:57:24,720 --> 00:57:30,880 up in that's up in the hotel revenue others the budget was 2.4 million and the estimate 747 00:57:30,880 --> 00:57:40,000 is 1.7 million um so that's a seven hundred thousand dollar drop that's what i thought 748 00:57:40,000 --> 00:57:45,440 accounted for the fund balance being so much lower even with the half a mil dropped back 749 00:57:45,440 --> 00:57:51,440 into it right right oh no no and i i agree and so i think i'm i think i'm slowly but 750 00:57:51,440 --> 00:57:55,680 what happened i just something just happened on this i can't see the bottom part of the 751 00:57:55,680 --> 00:58:00,480 so let's scroll down again randy thank you i just made okay i'm sitting here trying to scroll it 752 00:58:00,480 --> 00:58:07,760 i'm sorry so i just may help frame it just one more just to try to add a little bit of more 753 00:58:07,760 --> 00:58:13,040 clarity we're you have to we have to show the savings either in the expense or the revenue 754 00:58:13,040 --> 00:58:18,000 side we're we just chose to show on the expense side here what we what we could have done is said 755 00:58:18,000 --> 00:58:24,480 on our expenses for this for this fiscal year this program year had the whole 2.5 and then next year 756 00:58:24,480 --> 00:58:29,840 to show a revenue coming back to us of the 470 that would have been another way to show it but 757 00:58:29,840 --> 00:58:35,760 from a fund balance perspective it would have been the same thing either way right but and so now i 758 00:58:35,760 --> 00:58:41,680 understand because if you take into consideration the difference of the 1.7 million in the revised 759 00:58:41,680 --> 00:58:48,160 estimate and if you didn't change any of the sub recipient expenditures and it still stayed 2.5 760 00:58:48,160 --> 00:58:53,440 well the fund balance is going to be about 1.2 million but then we're going to get that 476 761 00:58:53,440 --> 00:58:59,120 so i'm looking at it from a cash flow perspective from hey here's here's how it's coming in so i do 762 00:58:59,120 --> 00:59:09,360 see now how it's it's built in uh to the expenses i think i think um in the future we might just i 763 00:59:09,360 --> 00:59:15,600 mean i got really confused with that yeah i i from a cash that is the way it's going to work i think 764 00:59:15,600 --> 00:59:20,000 i think the the reason that we wanted to show it this way was as you make your decisions we thought 765 00:59:20,000 --> 00:59:25,680 it would be good for you to see kind of where each entity started an estimate but um definitely take 766 00:59:25,680 --> 00:59:34,240 your point on that yeah i agree no okay and like when we actually have some unspent funds from 767 00:59:34,240 --> 00:59:40,880 previous years it will be shown up here in your revenue but we don't have it yet it's you know 768 00:59:40,880 --> 00:59:46,320 it's actual so next year when we come to you with this same fund balance worksheet under convention 769 00:59:46,320 --> 00:59:50,800 center hotel it'll be say prior year refunds because we will have some actual prior year 770 00:59:50,800 --> 00:59:54,720 refunds and you will see them itemized out here but we don't have that money yet so we didn't 771 00:59:54,720 --> 01:00:02,880 put it up in the revenue and account for it there okay so i think i thought i was clear and i think 772 01:00:02,880 --> 01:00:07,760 i'm still clear but i just want to make sure i'm getting this so on this spreadsheet that i'm looking 773 01:00:07,760 --> 01:00:15,280 at let's say next year in january we get the four hundred and seventy six thousand dollars 774 01:00:15,280 --> 01:00:26,320 in a check so if we had this same slide january 1 would there be an item under the physical 775 01:00:27,120 --> 01:00:34,560 fiscal year 2021 request for for the revenues would there be something another revenue that says 776 01:00:34,560 --> 01:00:43,600 refund yes another in between convention center revenue and hotel revenue there'll be a prior year 777 01:00:43,600 --> 01:00:48,880 refund okay i see the line there so that would have one hundred and seventy six thousand dollars 778 01:00:48,880 --> 01:00:56,000 in yes because we actually received it they did happen but okay but in that scenario our expenses 779 01:00:56,000 --> 01:01:00,880 for f for plant program year 20 would be 2.5 million dollars so it would 780 01:01:00,880 --> 01:01:09,200 no but that's what okay this is my point we're sort of we're sort of mixing kind of reporting 781 01:01:09,200 --> 01:01:15,760 kind of pathologies for for this purpose we've got a budget kind of presentation of okay 782 01:01:15,760 --> 01:01:21,440 we we we've got reduced so i i get that i get how that the two million dollars 783 01:01:23,440 --> 01:01:32,800 represents that that's the money that was saved um let me let me think through this okay yes because 784 01:01:32,800 --> 01:01:39,440 if we showed the revenue the prior year refunds you're right we would have to show instead of 785 01:01:39,440 --> 01:01:46,480 two million dollars under the expenses it'd be 2.531 and i'm going to be truthful i think that's how 786 01:01:46,480 --> 01:01:52,720 we should be showing it because if we're saying the 2020 estimate and we could maybe have another 787 01:01:52,720 --> 01:01:57,520 column that says this is the estimate of what the people are trying to say that they're going to 788 01:01:57,520 --> 01:02:05,760 spend but in reality we have expended all of that money under revenues and so the fund balance um 789 01:02:05,760 --> 01:02:17,520 right now the fund balance right now today uh my hunch is not 1.754 because we've we've got still 790 01:02:17,520 --> 01:02:23,120 that 400 something thousand dollars outstanding to the recipients who still have to pay it back 791 01:02:23,120 --> 01:02:31,280 so the budget part of this i mean i understand the numbers are correct now but it's it's to see how 792 01:02:31,280 --> 01:02:38,400 it flows it just that's anyway so would you like us to go that route right now and show it to you 793 01:02:38,400 --> 01:02:42,400 do what would you like us to go ahead and alter this 794 01:02:45,600 --> 01:02:53,040 well you'll have let me see um well i think this is a well i think if we're submitting an actual 795 01:02:53,040 --> 01:02:58,560 this is what we really think as far as how all the money's moving around i think this is more 796 01:02:58,560 --> 01:03:04,640 accurate in the sense of if you have 2.5 million dollars showing as expenses uh there could be an 797 01:03:04,640 --> 01:03:09,040 asterisk on that saying that and you still could use the two million dollars in another column to 798 01:03:09,040 --> 01:03:13,200 say hey this is what they're really spending it's just making sure that that savings is somewhere 799 01:03:13,840 --> 01:03:21,040 you know easy to find that hope here's the 478 we're talking about i probably made it too big of a 800 01:03:21,040 --> 01:03:25,200 deal out of it but i got really confused and then as we kept talking it it became a little more 801 01:03:25,200 --> 01:03:33,600 clear but i think it's because it's hard to it's it's hard to find it um and maybe because we knew 802 01:03:33,600 --> 01:03:37,840 how much it was then that made it to where i'm like oh wait a minute where is it in this in this 803 01:03:37,840 --> 01:03:44,480 slide if i didn't know about it then i mean i i would have known about it so um but yeah i just 804 01:03:44,480 --> 01:03:50,800 it helps me understand exactly what's happening because i think in more terms of probably cash 805 01:03:50,800 --> 01:03:58,160 flow than budget um and that's just my i mean that's my issue so it's not that it's not that 806 01:03:58,160 --> 01:04:02,480 it's right or wrong it's just it was different than than what i'm understanding how to process 807 01:04:02,480 --> 01:04:08,560 it does that make sense to my colleagues it does and mayor for me the the way i'm reconciling it 808 01:04:08,560 --> 01:04:14,640 is just kind of holding in my mind that delta in line 42 between cells d and f and line 42 809 01:04:14,640 --> 01:04:19,840 and they're in the rest of it's kind of a where where it goes in and where it comes out is 810 01:04:19,840 --> 01:04:25,280 is kind of a wash for me because i'm watching those two those two cells and then the ending fund 811 01:04:25,280 --> 01:04:30,880 balance right um as long as it's square i don't really care how it gets there yeah um because i 812 01:04:30,880 --> 01:04:35,360 know we're we're gonna dig into that fund balance significantly in this conversation so right well i 813 01:04:35,360 --> 01:04:40,160 just wanted to make sure for me i understood that that 400 something thousand was already included 814 01:04:40,160 --> 01:04:46,320 in that 1.75 for uh fund balance because i was thinking it was going to be added to it and it 815 01:04:46,320 --> 01:04:50,880 wasn't carrying forward to the right amount but now i understand that it's just implicitly into 816 01:04:50,880 --> 01:04:57,040 reduction in the expenses so no i get it and i'm you know i'm i'm the same way i feel the same as 817 01:04:57,040 --> 01:05:04,320 jesse but um i i also you know i'm all for uh you know since there's just a few of us on the committee 818 01:05:04,320 --> 01:05:12,480 if there's um you know one column that needs to be added in the future to um uh you know make it so 819 01:05:12,480 --> 01:05:19,920 that we can see it from different perspectives if that would help you mayor i'm well well it doesn't 820 01:05:19,920 --> 01:05:27,920 matter to me except we have prior year refunds as a line item in the revenue but under this type 821 01:05:27,920 --> 01:05:34,880 of scenario that would never you couldn't put it in there with this slide presentation unless you 822 01:05:34,880 --> 01:05:41,760 changed the subtotal recipient expenditures to the 2.5 million because that prior year refund is 823 01:05:41,760 --> 01:05:48,480 representing money that's coming in and what i'm hearing is the way this is presented currently 824 01:05:49,920 --> 01:05:53,600 we can't put it in there unless we change something else like the expenditures 825 01:05:53,600 --> 01:05:58,160 i see yes so that would have to be a separate slide if it doesn't matter to me i don't need an 826 01:05:58,160 --> 01:06:05,760 extra i just i'm glad i understand now so okay okay got it yeah and can i ask a fund balance 827 01:06:05,760 --> 01:06:11,200 question and y'all tell me if this is this answer is forthcoming in the recommendations and discussion 828 01:06:11,200 --> 01:06:17,520 discussion but um since we're already talking about fund balance i think that kind of 50,000 foot 829 01:06:18,240 --> 01:06:23,920 issue is going to be really important to our conversation is uh if there's any guidance from 830 01:06:23,920 --> 01:06:33,040 staff on best practice or um last year we talked about a fund balance in anticipation of uh you 831 01:06:33,040 --> 01:06:38,960 know projects in the future and then projects that didn't come to fruition um is there going to be a 832 01:06:38,960 --> 01:06:45,440 recommendation from staff specifically on fund balance and where we you know where we ought to 833 01:06:45,440 --> 01:06:49,920 ought to land with a fund balance because we're going to draw it down regardless if we find if 834 01:06:49,920 --> 01:06:56,480 we fund dollar one this year we're going to draw down the fund balance sure you know we we don't 835 01:06:56,480 --> 01:07:01,520 we don't have a formal fund balance policy for this fund which is a priority over the next year 836 01:07:01,520 --> 01:07:05,840 to try to get a fund balance policy for each of these funds so we have a standard way to look at 837 01:07:05,840 --> 01:07:12,000 it i would say as we look into the next fiscal year knowing there's going to be more uncertainty 838 01:07:12,000 --> 01:07:18,720 than usual um that we probably want to keep a fund balance that's about 50 of those expenditures 839 01:07:18,720 --> 01:07:24,720 going into the next year so i would kind of look at the even the 2.5 from the budget year 840 01:07:24,720 --> 01:07:29,920 at least carrying over 50 of that or or whatever we end up with the recipients and have that be our 841 01:07:29,920 --> 01:07:35,440 benchmark so a little bit over a million dollars just knowing knowing what we're what we're headed 842 01:07:35,440 --> 01:07:42,000 into so like like 1.25 or something yeah that would that would be my recommendation obviously 843 01:07:42,000 --> 01:07:46,320 it's up to the committee and council's discretion but i think that would be appropriate just given 844 01:07:46,320 --> 01:07:55,520 the amount of uncertainty next year okay mr chair yeah go ahead yeah when i'm looking at this um 845 01:07:55,520 --> 01:08:05,680 i'm going to really struggle with um funding this much over the last year's i mean we're a little 846 01:08:05,680 --> 01:08:17,840 bit under last year's budget a little bit um but that that budget uh um is based upon full 847 01:08:17,840 --> 01:08:23,920 everything working fine so i i personally i'm going to be more comfortable with saying hey 848 01:08:24,960 --> 01:08:31,840 and when you look at some of these um like north texas state fair association they went up forty 849 01:08:31,840 --> 01:08:39,040 thousand or fifty thousand dollars fifty one five yeah just so for me i'm real comfortable with going 850 01:08:39,040 --> 01:08:44,640 okay we got two million dollars that everybody spent under this scenario under this sort of 851 01:08:44,640 --> 01:08:51,120 pandemic scenario and when we look at the potential potential revenue projections 852 01:08:51,760 --> 01:08:57,200 the hotel revenue is 1.7 million is what we're projecting and we're only projecting 1.6 next year 853 01:08:57,200 --> 01:09:05,440 so i don't mind funding some increases but i don't think that i'm not comfortable with pulling out of 854 01:09:05,440 --> 01:09:12,640 the fund balance to fully fund everyone's requests as if everything was the status quo prior to the 855 01:09:12,640 --> 01:09:18,160 pandemic when right now we're looking at a difference of an eight hundred thousand dollar drop 856 01:09:18,720 --> 01:09:24,880 from the budget prior to all these situations this pandemic so and i don't know what that number is 857 01:09:24,880 --> 01:09:32,240 i'm okay with how we figure that out but i'd be hard to accept the request line and this isn't 858 01:09:32,240 --> 01:09:37,040 about staff or the requesters it's just yeah if we funded everything that everybody requested we're 859 01:09:37,040 --> 01:09:44,480 down to we basically depleted our uh fund balance by almost half mayor i'll be honest with you i came 860 01:09:44,480 --> 01:09:49,440 into this meeting and i again i don't want to cut uh cut off staff's intended time for discussion 861 01:09:49,440 --> 01:09:56,320 recommendation um but i came into this meeting with with that thought in mind exactly that 862 01:09:56,320 --> 01:10:03,680 we don't have room to be funding increases some of those increases are salaries um additional 863 01:10:03,680 --> 01:10:12,160 salaries over last year's uh budget and requests so i wasn't comfortable either so far with with 864 01:10:12,160 --> 01:10:17,440 funding any of these major increases and then we have some entities that have significant decreases 865 01:10:17,440 --> 01:10:23,760 they're asking for less uh probably because we asked them to um and they they know what the picture 866 01:10:23,760 --> 01:10:29,600 is so i agree with you i think in principle that that funding some of these major increases is not 867 01:10:29,600 --> 01:10:35,440 not in the cards this year however we end up slicing it i thought an easy way to start would be 868 01:10:36,160 --> 01:10:42,800 um everybody's at last year's level except those who are asking for less and those who are asking 869 01:10:42,800 --> 01:10:49,360 for less or whatever their request is when mr chair when you say last year's level are you 870 01:10:49,360 --> 01:10:54,480 talking about the original request or the estimate of what they said they would need 871 01:10:54,480 --> 01:11:01,520 this revised kind of estimate last year's budget last year's budget because what i'm looking at is 872 01:11:02,240 --> 01:11:08,160 and there's room in that conversation i think for um those that are able to carry forward a balance 873 01:11:08,160 --> 01:11:12,000 for something or you know we talked about fireworks for instance that's a different 874 01:11:12,000 --> 01:11:17,680 different issue but somebody who who's able to carry forward something they paid for in this year 875 01:11:17,680 --> 01:11:22,960 and and realize it next year maybe they they put some ad space or something that's on hold 876 01:11:22,960 --> 01:11:33,040 or or whatever what i'm talking about is no increases over uh column d on our slide and 877 01:11:33,040 --> 01:11:39,840 decreases for those groups that are asking for less in column h than they got last year in column d 878 01:11:39,840 --> 01:11:46,320 okay let me look at my slide here so yeah so when i'm looking at my slide on the presentation 879 01:11:46,320 --> 01:11:54,720 in the backup uh column d on the the excel spreadsheet is the fy budget which is what their 880 01:11:54,720 --> 01:12:01,200 their full ask was when everything was was good everything was normal well that comes to 2.5 881 01:12:01,200 --> 01:12:08,960 million dollars and if you look at the the request for 2021 and these are the requests that people 882 01:12:08,960 --> 01:12:17,600 are putting in it's even it's less than that it's 2.429 million and and i'm saying and so i yeah i 883 01:12:17,600 --> 01:12:23,360 would be hard prepped because if we if we use the 2.531 our fund balance is going to be less than 884 01:12:23,360 --> 01:12:29,440 what it what we're projecting under this py 2021 request i'm saying except for the except for the 885 01:12:29,440 --> 01:12:34,880 groups that are asking for less are not making a request at all so i'm saying if they're if they're 886 01:12:34,880 --> 01:12:43,120 delta between d and h is positive then they don't get that if their delta between d and h is negative 887 01:12:43,120 --> 01:12:47,680 then it's negative we give them what they asked for this year because they're asking for less 888 01:12:47,680 --> 01:12:57,920 i think we'd save about 80 if you look at that 2.429 million um if we funded uh if we funded the 889 01:12:57,920 --> 01:13:02,560 groups that are asking for more the same way we did last year we saved about 80 000 dollars 890 01:13:03,440 --> 01:13:09,920 right can i can i throw in my my two cents um so i think i think that uh 891 01:13:09,920 --> 01:13:19,040 and this will um probably won't surprise anyone and uh it's the minority of minority opinion 892 01:13:19,040 --> 01:13:27,440 but i do just kind of want to state it for the record um you know my my approach is somewhat 893 01:13:27,440 --> 01:13:36,960 different uh i uh i look at these requests and instead of thinking uh in in terms of categories 894 01:13:36,960 --> 01:13:41,040 of you know who's asking for more who's asking for less who's asking for the same 895 01:13:41,040 --> 01:13:51,520 i look at uh what you know each separately what their needs are uh and how their needs may have 896 01:13:51,520 --> 01:14:00,080 changed and if there's an increase i want to know how it's justified um but uh i i myself 897 01:14:00,080 --> 01:14:09,920 am open to funding an increase or not funding an increase just based on the on the uh the individual 898 01:14:09,920 --> 01:14:21,120 need for it as shown in the application and of course it being uh uh you know with with within 899 01:14:21,120 --> 01:14:28,800 the legal definition of of hot funds um so i'm not uh you know in in favor of that kind of across 900 01:14:28,800 --> 01:14:39,200 the board although i i understand it it's it's a nice way to um uh make it um clean uh you know i 901 01:14:39,200 --> 01:14:45,840 prefer to do it you know more look more on an individual basis and under under covet i'm also 902 01:14:45,840 --> 01:14:56,800 thinking about you know where the need is you know in terms of uh the current pandemic situation so 903 01:14:56,800 --> 01:15:07,120 for instance um under you know uh the uh let's see where is where's so embassy suites is under 904 01:15:07,120 --> 01:15:13,760 uh it's not under the discover or they're a category all to themselves your category all 905 01:15:13,760 --> 01:15:20,720 to themselves okay yeah so i want um but i'll i'll mention them as an example so they're not even 906 01:15:20,720 --> 01:15:28,640 they're not on the list okay um the no they are received the funds they receive uh are the funds 907 01:15:28,640 --> 01:15:33,200 that they bring in so they pay a hot tax bill every year and then we give it right back to them yeah 908 01:15:33,200 --> 01:15:37,600 that's the arrangement so they're not really they're not like a hot fund recipient because 909 01:15:37,600 --> 01:15:44,240 they're helping out yeah so um okay but i was just looking for them on the list okay so i got here 910 01:15:44,240 --> 01:15:51,120 council member armenter their convention center hotel 453 and then they come right back out at 911 01:15:51,120 --> 01:15:56,240 the bottom as an expense got it got it got it okay yeah so anyway so i'll just i won't dwell on it 912 01:15:56,240 --> 01:16:01,360 because i know it's the minority opinion you know but but but that's my approach just to state that 913 01:16:01,360 --> 01:16:06,800 for the public record sure you know and i i uh i have a lot of respect for that approach it's closer 914 01:16:06,800 --> 01:16:11,760 to what we did last year uh you know we went you know based on the merits of each individual 915 01:16:11,760 --> 01:16:16,880 application in each budget and we did a we've done that i know y'all have done that in prior years 916 01:16:16,880 --> 01:16:22,560 too kind of a deeper dive into the individual requests and in budgets you know well how are 917 01:16:22,560 --> 01:16:27,040 y'all spending this do you really need to do this this is a big priority for y'all how can we help 918 01:16:27,040 --> 01:16:33,360 make it happen um you know one that i'm struggling with for instance is the black chamber of commerce 919 01:16:33,360 --> 01:16:40,160 for the blues festival uh they've got uh they can absolutely justify every every bit of the what 920 01:16:40,160 --> 01:16:44,240 they're asking for and they they did last year they came in front of us and and gave us a really 921 01:16:44,240 --> 01:16:49,040 good explanation of why they are asking for a significant increase they did last year and again 922 01:16:49,040 --> 01:16:56,480 this year the problem for me with that this year is we're like orders of magnitude less money to 923 01:16:56,480 --> 01:17:04,480 deal with we're talking about at least 35 less money to deal with it's hard for me to say to 924 01:17:04,480 --> 01:17:10,800 any organization these guys got an increase even if it's legitimate and justified and a good thing 925 01:17:10,800 --> 01:17:18,160 to do these guys got an increase of x number of dollars we could barely fund what you're asking 926 01:17:18,160 --> 01:17:24,960 for uh because of the decrease so for me i think the only way that we and i don't have a problem 927 01:17:24,960 --> 01:17:29,680 with dipping into the fund balance to be honest with you that fund balance we've got to figure out 928 01:17:29,680 --> 01:17:36,560 what it's there for yeah right now uh you know it's it's sitting there we had ideas for it before 929 01:17:36,560 --> 01:17:40,960 that project fell through so now we've got a chunk of change sitting there that we've got to figure 930 01:17:40,960 --> 01:17:46,560 out what to do with for that reason because it's unprogrammed money i don't have a big problem with 931 01:17:46,560 --> 01:17:52,160 drawing down that fund some to make sure that these things are happening that these hot fund 932 01:17:52,160 --> 01:17:57,760 appropriate activities are happening and we just heard a great presentation about how that money 933 01:17:57,760 --> 01:18:03,040 goes out into the market and doubles itself you know or more than doubles itself bringing events 934 01:18:03,040 --> 01:18:11,440 in what i'm talking about is if we have such a significant drop in the amount of available cash 935 01:18:11,440 --> 01:18:18,640 the only way i can think of to be fair to everybody is to do something like a flat flat funding 936 01:18:19,280 --> 01:18:24,320 or the ones that were proactive and are giving us discovered it's another good example they're 937 01:18:24,320 --> 01:18:29,680 giving us a budget this year that's significantly lower a request this year that's significantly 938 01:18:29,680 --> 01:18:35,440 lower than their request and budget for last year i think we realize those savings where we can 939 01:18:35,440 --> 01:18:41,920 and then fund everybody else flat where they were last year it as a starting point 940 01:18:43,920 --> 01:18:49,200 i think that's the only way we can we can even begin to tackle the drop because otherwise we're 941 01:18:49,200 --> 01:18:55,920 going to have to end up if we're going to fund somebody an increase and not draw down the fund 942 01:18:55,920 --> 01:19:00,240 balance then that means we're going to not fund another organization there's just not going to be 943 01:19:00,240 --> 01:19:05,440 money there now they still they still are i'll just throw this out there they still are getting 944 01:19:05,440 --> 01:19:11,200 much more than um to name the example you just gave black chamber of commerce so we can look at 945 01:19:11,200 --> 01:19:18,720 in terms of increases or we can just look at it as total amounts you know in one uh synchronous 946 01:19:18,720 --> 01:19:24,480 slice of time right and compare the different amounts again it's just it's just a different 947 01:19:24,480 --> 01:19:29,920 way to look at it but that's just more how i see it sure i understand that the the difference there 948 01:19:29,920 --> 01:19:36,800 would be you know the chamber of commerce event uh is a is a long weekend and then discover dentin 949 01:19:36,800 --> 01:19:41,840 you know they're running an entire we basically pay them to run the marketing of the city 950 01:19:41,840 --> 01:19:47,280 we've got our our public affairs folks who do our internal marketing to our citizens 951 01:19:47,280 --> 01:19:52,320 but we pay discover dentin to sell the city to all these groups that come in and spend 952 01:19:52,320 --> 01:19:56,400 millions and millions and millions of dollars so kind of apples and oranges there to me but 953 01:19:56,400 --> 01:20:02,960 i think that's this is kind of a threshold issue of how we want to treat this fund balance 954 01:20:03,600 --> 01:20:09,840 and what our our fund balance goal is because there's no way we're funding these requests 955 01:20:09,840 --> 01:20:12,560 without getting into that fund balance in some form or fashion 956 01:20:12,560 --> 01:20:20,960 yeah and i don't i don't have an issue with the fund balance uh drawing down the fund balance i 957 01:20:20,960 --> 01:20:26,800 think that uh there needs to be a discussion at the council level on you know if we're looking at 958 01:20:26,800 --> 01:20:30,560 wanting to have certain type of event centers or something like that that we want to be able 959 01:20:30,560 --> 01:20:35,200 to do without dipping into general funds this is the fund that would primarily be the source of it 960 01:20:35,200 --> 01:20:43,040 but let's just say for instance we just we we've uh take out of the fund balance of what is it 961 01:20:43,040 --> 01:20:48,000 about 900 000 or or we we drop it to where the fund balance is a million dollars in other words 962 01:20:48,000 --> 01:20:55,840 we almost fully fund all the requests well we never thought we would have this situation 963 01:20:55,840 --> 01:20:59,760 and i don't know how long it's going to take for this situation to reoccur 964 01:20:59,760 --> 01:21:03,840 but you're talking you got two years left that somewhere down the line there's going to be have 965 01:21:03,840 --> 01:21:08,080 to be an adjustment if the money doesn't keep coming in or if the money doesn't recover 966 01:21:08,080 --> 01:21:14,160 after next year then you're looking at those requests are going to take the fund balance to 967 01:21:14,160 --> 01:21:22,880 zero yeah and that's so that becomes a policy question then as far as well is that what you 968 01:21:22,880 --> 01:21:30,000 want to do or you know everybody's had to take a hit during this this pandemic all of our businesses 969 01:21:30,000 --> 01:21:34,240 everybody's had to sort of you know experience something that they never thought they would have 970 01:21:34,240 --> 01:21:41,040 to experience and so we've just got to figure out as you said mr chair what is the purpose of the 971 01:21:41,040 --> 01:21:50,880 fund balance and because this is hopefully a very isolated incident in our in our history or certainly 972 01:21:50,880 --> 01:21:57,040 near-term history because otherwise that fund balance could be nothing and then of course we 973 01:21:57,040 --> 01:22:02,560 won't have any decisions to make i mean it'll be just like well we don't have any money so 974 01:22:02,560 --> 01:22:10,080 you're going to have to drop your your requests you know mayor i left in my estimate earlier of 975 01:22:10,080 --> 01:22:17,600 what we'd save by funding uh funding flat except for those who are asking for less i left out public 976 01:22:17,600 --> 01:22:25,120 art committee so we'd actually i said 80 000 i think we'd probably be closer to 110 120 savings 977 01:22:25,120 --> 01:22:35,600 over last year i think that might be helpful might be prescribed by ordinance or statute 978 01:22:35,600 --> 01:22:46,160 i don't it is that right uh mac um do we have to fund a certain percentage to the art there was 979 01:22:46,160 --> 01:22:53,280 something we have to fund a certain percentage of there's a 2.4 resolution in place but the pack 980 01:22:53,280 --> 01:22:59,280 committee voted to request less than that 2.4 percent this year because they have so many 981 01:22:59,280 --> 01:23:03,600 projects going on right now that they're trying to get their hands on and they want to use just 982 01:23:03,600 --> 01:23:11,440 this 35 000 to get the the one art project going so they're just a little bit behind and so they 983 01:23:11,440 --> 01:23:18,080 didn't want to dip into the funds if they couldn't use them okay all right thank you well it unless 984 01:23:18,080 --> 01:23:23,760 staff has a better recommendation and i'm very open to hearing um what the brain trust has to say 985 01:23:23,760 --> 01:23:31,520 because you know we're laypeople in this area but um i i think it may be helpful if we as a committee 986 01:23:31,520 --> 01:23:37,520 set a fund balance that we're comfortable with an estimate going forward if we were to say 987 01:23:38,160 --> 01:23:42,320 we're good with 900 we're good with a million we're good with 1.2 the number i came in this 988 01:23:42,320 --> 01:23:48,560 meeting with was 1.2 and and i'm very open to discussion about that but i think it would be 989 01:23:48,560 --> 01:23:54,800 helpful if we set a fund balance that we're comfortable with and then that tells us how much 990 01:23:54,800 --> 01:24:02,720 money in estimate that we have and then david mentioned 1.25 is about half the projected 991 01:24:02,720 --> 01:24:08,560 expenditures uh i think that would adequately cover what you're worried about mayor that you 992 01:24:08,560 --> 01:24:12,080 know we don't know if there's going to be another shutdown we don't know if there's going to be some 993 01:24:12,080 --> 01:24:19,200 additional we have no idea what the future holds in store so i'm comfortable anywhere in that 994 01:24:19,200 --> 01:24:28,080 that 1 million to 1.2 million range for a fund balance so can i ask of staff um is you know what 995 01:24:28,080 --> 01:24:35,680 would uh you know i guess david you know whoever wants to take this or maybe get multiple opinions 996 01:24:35,680 --> 01:24:42,960 what would you consider a quote healthy fund balance is you know 1 million or 1.2 million 997 01:24:42,960 --> 01:24:49,600 somewhere in that range i believe that's um an earlier question that we kind of propose is the 998 01:24:49,600 --> 01:24:57,600 50 of your expenses and so that was the 1.25 or 1.2 and if the committee can come up with a directive 999 01:24:58,080 --> 01:25:03,680 a short-term directive to give us to take offline if you can give us the fund balance you want to 1000 01:25:03,680 --> 01:25:11,440 get you want to advise us to try out the you know h or you said d less h to get that directive then 1001 01:25:11,440 --> 01:25:16,720 we can go on a five or 10 minute recess work those in this j column and let you see what it looks like 1002 01:25:16,720 --> 01:25:23,040 um so if y'all want to come up with some plan for us to calculate and put in this worksheet and get 1003 01:25:23,040 --> 01:25:27,200 offline for a few minutes then come back and and show you what that looks like we can do that as 1004 01:25:27,200 --> 01:25:33,520 well yeah mayor what do you think about that fund balance number oh i'm okay with that but i think 1005 01:25:33,520 --> 01:25:40,320 you're i think your uh mr chair your process or your uh formula or algorithm that you originally 1006 01:25:40,320 --> 01:25:47,360 stated which i'm going to repeat to make sure i understood that in the 2020 budget that if if they 1007 01:25:47,360 --> 01:25:56,160 if they asked for less this year that we give them the less if they asked for more we give 1008 01:25:56,160 --> 01:26:02,960 them what they had in the 2020 budget so i'm just looking at a couple of these and when i look at 1009 01:26:02,960 --> 01:26:09,120 dent chamber of commerce discovery center they asked for 1.62 now they're only asking for 1.067 1010 01:26:09,120 --> 01:26:12,880 well there's a hundred thousand dollar savings right there because what will be included 1011 01:26:12,880 --> 01:26:21,440 is the 1067 when you look at north texas state fair they're asking for 247 195 was the last year 1012 01:26:21,440 --> 01:26:27,040 so we would give them the last year well that's another 50 that's the 50 000 savings so i think 1013 01:26:27,040 --> 01:26:32,640 it's going to all come up to be the same but 1.2 i mean i'm comfortable with that given that we 1014 01:26:32,640 --> 01:26:40,000 don't know what's going to happen i mean unless there's a vaccine that's developed that is you 1015 01:26:40,000 --> 01:26:46,720 know safe and people are willing to use it and to and it becomes widely distributed we're going to 1016 01:26:46,720 --> 01:26:51,840 be in this process for quite some time quite honestly and it's going to and it's going to 1017 01:26:51,840 --> 01:26:58,640 move into so this time next year when we're having this same conversation do we think that the that 1018 01:26:58,640 --> 01:27:06,080 the landscape is going to be a whole lot different than what it is right now and that's assuming that 1019 01:27:06,080 --> 01:27:11,040 it's different in a good way and not different in that something's happened and it's pushed things 1020 01:27:11,040 --> 01:27:16,880 further behind so i'm okay with that that kind of fun balance yes absolutely either one probably 1021 01:27:16,880 --> 01:27:23,760 1.2 would be what i'd like to see the number on see how that affects people's requests because 1022 01:27:23,760 --> 01:27:28,480 we may have to the next council may have to have the same discussion and saying hey we don't have 1023 01:27:28,480 --> 01:27:33,840 the money that we budgeted you guys have to tell us what you actually need and we go through this 1024 01:27:33,840 --> 01:27:41,360 whole conversation uh next year yeah good deal well then uh randy and david if y'all don't mind let's um 1025 01:27:41,360 --> 01:27:46,880 how many how much time do y'all need before we kind of gavel back in not very long i i've i've 1026 01:27:46,880 --> 01:27:52,080 kind of i've done it very quickly here and so we just kind of assume that you would be yeah i will 1027 01:27:52,080 --> 01:27:57,840 say just to kind of give you a heads up as we go um back it looks like that got us to about 2.2 million 1028 01:27:58,480 --> 01:28:05,040 in in those recipient expenditures uh doing the the the route that you mentioned which would bring 1029 01:28:05,040 --> 01:28:10,240 our fund balance down to about 1.1 but we'll go back and and confirm that and bring it back to you 1030 01:28:10,240 --> 01:28:17,840 in a clean format and before we take the break a break can i make a a brief request uh that to um 1031 01:28:17,840 --> 01:28:28,160 jesse and chris uh we would either of you feel okay with kind of temporarily removing for discussion 1032 01:28:28,160 --> 01:28:36,720 the uh the denton county funding issue um since as you know you know i i don't believe we should be 1033 01:28:36,720 --> 01:28:44,560 giving a hot fund to another taxing entity the county being its own taxing entity um 1034 01:28:44,560 --> 01:28:53,360 i would prefer you know for us to deal with that on that issue separately but you know we're a 1035 01:28:53,360 --> 01:28:57,040 committee so i'm curious how you feel about that i just wanted to bring that up before they go back 1036 01:28:57,040 --> 01:29:02,880 and calculate everything if i could ask a point of privilege on that um so i think under our 1037 01:29:02,880 --> 01:29:08,640 ethics code i'm allowed to vote on the whole the whole deal the whole enchilada um i don't think 1038 01:29:08,640 --> 01:29:12,720 that i can be a part of a conversation that specifically deals with the county and their 1039 01:29:12,720 --> 01:29:19,360 request um so if if you wouldn't mind that would be a conversation i think just between you and the 1040 01:29:19,360 --> 01:29:25,200 the mayor um well and the whole city watching i suppose um but if you wouldn't mind holding 1041 01:29:25,200 --> 01:29:32,400 on to that until after we kind of do this sure omnibus uh top down kind of thing and then uh 1042 01:29:32,400 --> 01:29:36,720 similar to what we did last year y'all can take up the county as a separate a separate item 1043 01:29:36,720 --> 01:29:44,080 with me that sounds good so um what do y'all think five minutes ten minutes oh go ahead mayor 1044 01:29:44,080 --> 01:29:53,600 mr chair real quick on that last point um i don't think that so uh mac just chime in if i'm if 1045 01:29:53,600 --> 01:29:59,280 somehow i'm stepping over something or stepping on something because i can share my thought on 1046 01:29:59,280 --> 01:30:07,680 that right now on removing the county uh and so i don't know i mean mr chair if you don't deliberate 1047 01:30:07,680 --> 01:30:11,360 if you don't say anything you're going to hear everything we say anyway even if you're my if 1048 01:30:11,360 --> 01:30:17,360 you're if your screen is off so um i'm gonna i'm gonna stop my video until you're done talking 1049 01:30:17,360 --> 01:30:22,960 okay you bet all right so yeah i just assumed the reason why i think that should be a council 1050 01:30:22,960 --> 01:30:28,720 decision i don't i mean i don't feel comfortable with it coming out of this committee with that i 1051 01:30:28,720 --> 01:30:33,840 mean the council can always make that revision at the council level uh haven't really delved into 1052 01:30:33,840 --> 01:30:40,400 what all they're asking that for so it's not necessarily a an objection to that i just think 1053 01:30:40,400 --> 01:30:44,880 that that decision is better suited for a full council than just two members of the council 1054 01:30:44,880 --> 01:30:50,080 making that decision in hot front so it seems like council member armature uh that's something she 1055 01:30:50,080 --> 01:30:53,680 may want to do and it's something that i'm not willing to do here at the committee level 1056 01:30:53,680 --> 01:31:01,200 doesn't not making a statement as to what it would be at the council level so i don't know uh if you 1057 01:31:01,200 --> 01:31:07,200 if you have differing opinions and you i mean there's no vote i mean it's it's one one i mean 1058 01:31:07,200 --> 01:31:13,360 so yeah yeah so yeah and so is this and when is when is this um are recommendations going 1059 01:31:13,360 --> 01:31:19,360 forward to council first week of august it would be part of the proposed budget presentation 1060 01:31:19,360 --> 01:31:25,280 so on august 6 it would be in front of council okay yeah i mean i'm i'm fine with that because 1061 01:31:25,280 --> 01:31:30,320 i mean like you say you know this is this is a recommendation within this committee anyway 1062 01:31:30,320 --> 01:31:35,840 that's going going to council it would just be the two of us and and i appreciate the jesse's 1063 01:31:35,840 --> 01:31:43,440 for keys i think that's good so um yeah i'm fine with that okay all right great i guess the chair 1064 01:31:43,440 --> 01:31:52,240 will rejoin here shortly there he is so i'm back and um the time right now is i've got 10 32 um 1065 01:31:52,240 --> 01:31:58,320 david orandy y'all want to tell us when we when we want to come back i think 10 45 probably 1066 01:31:58,320 --> 01:32:03,920 already finished it i know right we just have to move it to the other computer i think 10 45 1067 01:32:03,920 --> 01:32:09,280 would be perfect all right let's do 10 45 that'll be just uh just a little while all right thank you 1068 01:32:09,280 --> 01:32:17,840 a little bit thank you thank you then bye bye all right and we're back we took a little recess there 1069 01:32:17,840 --> 01:32:25,840 for uh staff to update the excel spreadsheet we were looking at and how's it look guys did we uh 1070 01:32:25,840 --> 01:32:30,640 can we shave what we needed to uh yeah i think i think so i think it's basically kind of the 1071 01:32:30,640 --> 01:32:37,760 summary i gave right before um about 1.1 million in fund balance so i'll pull that up for us right now 1072 01:32:39,840 --> 01:32:45,040 so obviously we could go through through these um line by line or open up for y'all's discussion 1073 01:32:45,040 --> 01:32:52,000 but i went through and we did the proposed as either essentially the lesser of the request or 1074 01:32:52,000 --> 01:32:59,920 the current year's budget and that got us to a um subtotal recipient expenditures of 2.2 million 1075 01:32:59,920 --> 01:33:06,800 dollars and an ending fund balance of 1.1 million dollars i i do want to i did just because we had 1076 01:33:06,800 --> 01:33:11,520 the discussion on it earlier i don't want to um drag us down too much and where you're headed with 1077 01:33:11,520 --> 01:33:17,280 the discussion on the on the proposals but i did put this in the format that we discussed 1078 01:33:17,280 --> 01:33:21,760 previously where you just to see it's going to have the same ending fund balance just to walk it 1079 01:33:21,760 --> 01:33:28,560 forward in a different manner so if you if you follow this this would assume that we're obviously 1080 01:33:28,560 --> 01:33:34,720 spending the entire 2.5 this fiscal year kind of walking that forward and ending with a fund balance 1081 01:33:34,720 --> 01:33:39,840 of 1.2 million dollars and then that becomes our beginning fund balance next fiscal year 1082 01:33:39,840 --> 01:33:46,560 and then showing our prior year refunds of that around 4.8 million dollars coming back in as revenues 1083 01:33:46,560 --> 01:33:53,360 but then ultimately with the same proposals ending with the same fund balance so no obviously this is 1084 01:33:53,360 --> 01:33:58,640 more on that cash flow perspective yeah no yeah you bet thank you great so i'll just go over the 1085 01:33:58,640 --> 01:34:03,040 tab for conversation but obviously go back and forth if one of them works better 1086 01:34:04,960 --> 01:34:11,280 so um what do my what do my colleagues think this is uh this is what i asked for prior to the break 1087 01:34:11,280 --> 01:34:17,600 as a starting point for conversation um for myself i'll say i'm i'm honestly comfortable with this as 1088 01:34:17,600 --> 01:34:24,480 a council recommendation um but i think we plenty of room for conversation here also so 1089 01:34:26,640 --> 01:34:35,120 well no i'm fine i think it took basically i think it took your original um proposal when i look at 1090 01:34:35,120 --> 01:34:39,760 this and it just seems like that's that's sort of how they got there they either did what their 1091 01:34:39,760 --> 01:34:44,080 original request was i mean there's maybe a few variations but i'm okay with this as a recommendation 1092 01:34:44,080 --> 01:34:49,200 and if there's something that changes between now and august in the economy or or things such as that 1093 01:34:49,200 --> 01:34:55,680 or our projections we can always revisit that at the council level sure council member armenter do 1094 01:34:55,680 --> 01:35:01,440 you have any other i know you mentioned earlier you kind of prefer to go yeah line yeah so i'm 1095 01:35:01,440 --> 01:35:12,000 going to so respectfully i'm going to be uh voting no to this for that for that reason um but but uh 1096 01:35:12,000 --> 01:35:21,760 but i you know but i appreciate the uh that that we've got something to bring forward to council 1097 01:35:22,560 --> 01:35:26,320 but that's why you know for consistency's sake that's why i'm going to be voting no 1098 01:35:26,320 --> 01:35:35,200 to this sure can completely understand um i i will say i think uh doing kind of a across the board 1099 01:35:35,200 --> 01:35:39,360 like this it gives me a little bit more comfort too and i'm going to run into these guys in the 1100 01:35:39,360 --> 01:35:43,200 community these are people we're going to see at the grocery store and at future council meetings 1101 01:35:43,200 --> 01:35:48,640 and this is a uh this is a lot easier for me to explain as a fair and even-handed way of dealing 1102 01:35:48,640 --> 01:35:55,920 with it then you got this and you got that and all that kind of deal so um if a member davis we just 1103 01:35:55,920 --> 01:36:01,680 have one outlier there we have one new applicant so who's not in the picture there but the texas 1104 01:36:01,680 --> 01:36:06,400 veterans hall of fame so if anyone would like to speak on that we can accept no new applicants or 1105 01:36:06,400 --> 01:36:12,480 y'all can make another decision oh i see that they're not in they're not on column j i didn't 1106 01:36:12,480 --> 01:36:16,560 make it all the way to the bottom i assume they'd be in column j well that's a new applicant that's 1107 01:36:16,560 --> 01:36:22,400 up to y'all to accept it under the conditions at any time or make another decision they've asked 1108 01:36:22,400 --> 01:36:26,560 for 12 000 you can give them less you can give them starter meat i mean it's all up to you 1109 01:36:26,560 --> 01:36:31,360 let me while uh mayor do you have an opinion there i need to pull up their budget 1110 01:36:31,360 --> 01:36:34,320 i had it up a second ago but i need to take a look at what they're asking for 1111 01:36:34,320 --> 01:36:38,720 i think they're at the golden triangle mall they're asking for some rent some liability 1112 01:36:38,720 --> 01:36:45,200 insurance and a part-time salary council member arminter sounded like you're going to say something 1113 01:36:46,320 --> 01:36:52,400 yeah i mean as i said i'm i'm you know i i already said that i'm going to be voting no for the the uh 1114 01:36:52,400 --> 01:36:59,520 to the over for the overall approach um but you know for what it's worth i think it's important 1115 01:36:59,520 --> 01:37:08,640 that that we put uh their full request in there uh it's a it is also it's a small one um compared 1116 01:37:08,640 --> 01:37:15,200 to the others obviously it doesn't uh factor into this you know increase decrease remain the same 1117 01:37:15,200 --> 01:37:23,680 conversation um but uh you know it won't uh affect the i mean it can be be easily factored in to 1118 01:37:23,680 --> 01:37:30,400 to the the fund balance that that that we're proposing so i i think we should put in the 1119 01:37:30,400 --> 01:37:34,320 whole thing i give in how little it is how affordable it is 1120 01:37:41,760 --> 01:37:47,760 mayor go ahead oh uh well i know that in the past when we've had new applicants 1121 01:37:47,760 --> 01:37:56,640 i don't know if we've ever funded fully a new applicant um and that could be wrong because my 1122 01:37:56,640 --> 01:38:03,200 memory is not that great sometimes i think that even if we only funded ten thousand dollars 1123 01:38:03,200 --> 01:38:09,680 i i think any any amount of money would would certainly be appreciated because this is a new 1124 01:38:09,680 --> 01:38:17,920 organization and certainly their their mission and what they bring to the potential for people 1125 01:38:17,920 --> 01:38:22,720 coming to the city to look at that is important so i don't have a problem funding them i think just 1126 01:38:22,720 --> 01:38:28,000 as a matter of if we just looked at the dollars of course i mean 12 million or 12 thousand dollars is 1127 01:38:28,000 --> 01:38:32,320 not going to do anything even if you lowered it to 10 000 so i don't really know if i have any 1128 01:38:32,320 --> 01:38:38,240 heartburn about that i just want to make sure that we deal with that evenly and consistently 1129 01:38:39,280 --> 01:38:45,520 moving forward with new applicants um so yeah that's that's my thought on it i mean 1130 01:38:45,520 --> 01:38:51,840 if if the consensus is to put in you know the full amount that's fine if not i mean rent and 1131 01:38:51,840 --> 01:38:57,200 salaries i have to have to pull up the application really delve into it that much but sure so i'm 1132 01:38:57,200 --> 01:39:03,920 looking at their uh kind of the the encapsulated version of their budget request it's a hundred 1133 01:39:03,920 --> 01:39:10,000 dollars for internet advertising um forty hundred dollars for rent four hundred dollars for insurance 1134 01:39:10,000 --> 01:39:16,320 and six thousand dollars for part-time salary um you know one of the things we did last year that 1135 01:39:16,320 --> 01:39:22,560 i thought was helpful with a new a new group and then also an increase we said well both of these 1136 01:39:22,560 --> 01:39:27,440 things look to be about the same how about we give them half of what they're asking for and they get 1137 01:39:27,440 --> 01:39:31,600 to choose which how they're going to spend it you know it's going to be either the salary or the 1138 01:39:32,400 --> 01:39:38,000 or the rent and insurance um i agree with you mayor i'm not quite comfortable with a full 1139 01:39:38,000 --> 01:39:42,960 a new organization a new applicant funding their full request especially in a tight year 1140 01:39:42,960 --> 01:39:50,240 where we're not increasing some other groups um so i'd be fine with you know six or ten thousand 1141 01:39:50,240 --> 01:39:56,400 dollars somewhere in there whatever the the consensus is well i always put that and just say 1142 01:39:56,400 --> 01:40:03,600 eight i'm fine i'm fine with that i mean i'll just without prolonging it too much i'll just say to me 1143 01:40:03,600 --> 01:40:11,840 it feels kind of uh to me it feels like it could be seen as as arbitrary even though i understand 1144 01:40:11,840 --> 01:40:16,880 it's not you're saying for consistency's sake because we have in the past have not tended to 1145 01:40:17,600 --> 01:40:26,480 give the full amount to a new applicant uh but uh you know they've been around for uh i mean new 1146 01:40:26,480 --> 01:40:31,360 is relative you know they've they've been doing their thing out of a little they did it out of 1147 01:40:31,360 --> 01:40:38,560 the trailer now they're at the um at the golden triangle uh what they're asking for is so little 1148 01:40:38,560 --> 01:40:43,040 in the grand scheme of things and i think that that small amount i mean it could really make a 1149 01:40:43,040 --> 01:40:49,600 difference a negative difference in what they're what they're offering and what they can do 1150 01:40:49,600 --> 01:40:57,440 uh so i you know i i would advocate still for giving them the full amount 1151 01:40:57,440 --> 01:41:04,320 i'll just just again throwing that out throwing that out there uh well you're gonna vote against 1152 01:41:04,320 --> 01:41:10,640 it anyway council member armature true true true true true i was just asking i'm good with the a 1153 01:41:10,640 --> 01:41:16,080 and just bringing it to the council we've got four other people uh that they can can weigh in on that 1154 01:41:16,080 --> 01:41:19,360 and they can make whatever changes they want to there i don't think this is the place to really 1155 01:41:19,360 --> 01:41:25,360 have that that kind of discussion so i will i'll bring it up again there thank you thank you part 1156 01:41:25,360 --> 01:41:29,520 of my thinking there too with new organizations i know it can feel arbitrary that we're just you 1157 01:41:29,520 --> 01:41:33,920 know worker percentage or split the difference or something one of the things we never know what the 1158 01:41:33,920 --> 01:41:38,800 new organization is are they going to end up needing all the money are they going to have uh 1159 01:41:38,800 --> 01:41:42,400 is that part-time person gonna obviously they can find ways to spend all the money i'm sure 1160 01:41:42,400 --> 01:41:47,680 any good organization could but is that part-time person gonna be there the whole year are they 1161 01:41:47,680 --> 01:41:53,440 gonna have rent in the same spot the whole year as opposed to an arts and jazz or discover dentin 1162 01:41:53,440 --> 01:41:58,560 where we know year over year what their budget typically looks like and we have some some history 1163 01:41:58,560 --> 01:42:05,200 there so that's where i'm at on it um i think uh david and randy are there any other uh red flags 1164 01:42:05,200 --> 01:42:10,000 you see or things that we need to discuss before we're ready for a motion yeah it's just the third 1165 01:42:10,000 --> 01:42:21,840 yellow tab there sponsorship i'm sorry go ahead and ask that again that's fine anything else y'all 1166 01:42:21,840 --> 01:42:27,600 that from staff that we need to discuss about what we're looking at here and hot funds specifically 1167 01:42:27,600 --> 01:42:32,720 i know we've still got sponsorships but before we're ready for a motion on hot funds i don't 1168 01:42:32,720 --> 01:42:37,440 think so i think i think we've covered it all i think it's it's a very generous um way to look 1169 01:42:37,440 --> 01:42:43,280 at things i think the the recipients will be happy okay uh is there a motion on the floor then 1170 01:42:43,280 --> 01:42:51,920 i'll move to uh recommend uh to council the uh proposed hot funds allocation as presented by 1171 01:42:51,920 --> 01:42:58,720 staff modified after council discussion okay and um well i hesitate to ask for a second the chair 1172 01:42:58,720 --> 01:43:05,200 can second so i suppose i will um there's been a motion a second for this recommendation basically 1173 01:43:05,200 --> 01:43:13,440 column j that we're looking at on our screen um all those in favor please say aye aye all those 1174 01:43:13,440 --> 01:43:22,000 opposed nay thank you uh the ayes have it and that closes out uh item c for us that moves us on to 1175 01:43:22,720 --> 01:43:30,400 item d hot 20-024 hold a report excuse me receive a report hold a discussion provide recommendations 1176 01:43:30,400 --> 01:43:36,160 regarding sponsorship funding levels and budget requests for fiscal year 2020-21 1177 01:43:36,160 --> 01:43:42,160 yes now we move on to the sponsorship fund which is a little bit smaller we have the 1178 01:43:42,160 --> 01:43:47,840 eighty eight thousand dollars in a set budget each year to allocate to organizations that have 1179 01:43:47,840 --> 01:43:55,600 applied as in the past um currently we have 11 requests we have three organizations in the 1180 01:43:55,600 --> 01:44:01,120 current sponsorship year that we have allowed through the committee's approval in june 11th 1181 01:44:01,120 --> 01:44:06,560 to roll over funds that they've already spent or earmarked for a council event this year that 1182 01:44:06,560 --> 01:44:12,800 will go forward so the county master gardeners association has 378 dollars they're moving forward 1183 01:44:13,360 --> 01:44:18,000 but they've also asked for some in the current year we have the denton festival foundation which 1184 01:44:18,000 --> 01:44:23,920 is the arts and jazz festival at around 6 400 this year that they will be rolling forward to 1185 01:44:23,920 --> 01:44:28,720 next year and have asked for no additional funds which you will see in the chart here and the last 1186 01:44:28,720 --> 01:44:33,280 one is the kiwanis youth services which is the fourth of july fireworks they are rolling over 1187 01:44:33,280 --> 01:44:40,320 25 000 in pyrotechnics but they are also adding asking for 40 000 again this year to increase 1188 01:44:40,320 --> 01:44:45,120 their pyrotechnics i think another ten thousand dollars but you will see that in the reflection 1189 01:44:45,120 --> 01:44:51,520 of their budget so we have eighty eight thousand in budget and we have eighty eight thousand seven 1190 01:44:51,520 --> 01:44:58,560 hundred and fifty dollars in requests and as discussed in the february meeting um y'all are 1191 01:44:58,560 --> 01:45:04,720 going to oversee if you will the gdac and the dct contracts which are listed a little bit further 1192 01:45:04,720 --> 01:45:11,600 at the bottom we are holding those to their their current numbers their current um contract this is 1193 01:45:11,600 --> 01:45:19,760 the last year of their five-year contract for um 122 400 122 400 for those so we're going to move 1194 01:45:19,760 --> 01:45:26,320 that forward for the next five years for a constant number for the next five-year contract for 2021 1195 01:45:26,320 --> 01:45:32,480 through 2025 and those are being redlined and legal right now and and they're just illustrated 1196 01:45:32,480 --> 01:45:35,920 here because we wanted to show them in the sponsorship funds they don't come into play in 1197 01:45:35,920 --> 01:45:41,680 the application process it's just a continuing partnership that this committee um is able to 1198 01:45:41,680 --> 01:45:46,640 house these contracts under now in finance and have oversight of those so those are just illustrated 1199 01:45:46,640 --> 01:45:52,240 at the bottom for transparency um but the eighty eight seven fifteen request are the ones that are 1200 01:45:52,240 --> 01:46:02,000 on the table today for discussions okay so um a little bit different picture uh we're negative 1201 01:46:02,000 --> 01:46:09,440 750 on the balance there but you know when we last we talked about sponsorships we talked about 1202 01:46:09,440 --> 01:46:14,560 setting deadlines and that we didn't expect to see rolling requests through the year 1203 01:46:14,560 --> 01:46:22,480 is there um is there any budgetary reason why we would need to leave a balance obviously it's 1204 01:46:22,480 --> 01:46:28,640 negative right now but a positive balance in this fund or is this it's this is one of our uh our 1205 01:46:28,640 --> 01:46:33,520 balanced budgets i'll call it that this is a balanced budget this is internal money that 1206 01:46:33,520 --> 01:46:37,680 a couple departments put in the pool so that we can have these funds to spend out of one pot and 1207 01:46:37,680 --> 01:46:43,920 one oversight and so you are correct just like the hot funds the sponsorship fund also is a 1208 01:46:43,920 --> 01:46:48,240 a drop dead deadline so july 3rd was that date so there'll be no more requests coming forward 1209 01:46:48,240 --> 01:46:54,320 in either fund so if we spent this to zero uh we wouldn't be doing ourselves any any disservice in 1210 01:46:54,320 --> 01:47:06,000 the future we wouldn't regret it later in the year mayor it doesn't carry a fund balance forward so 1211 01:47:06,000 --> 01:47:11,280 it's a different conversation right yeah well and and i think if we applied though the same 1212 01:47:11,280 --> 01:47:17,200 principles and i and i think the the principles that we applied to the hot funds uh we we put it 1213 01:47:17,200 --> 01:47:25,040 in the context of the fund balance but i think also if that were a truly a balanced budget request 1214 01:47:25,040 --> 01:47:31,920 my only concern here is that and it's concern might be too strong these these that are rolling 1215 01:47:31,920 --> 01:47:37,760 over funds that they already have and then they're asking for basically the same request that they 1216 01:47:37,760 --> 01:47:45,360 did last year it's it's hard to to ascertain from this that you know when i look at the request for 1217 01:47:45,360 --> 01:47:50,800 2020-21 and it comes to 88 750 it looks like oh everybody's just sort of receiving their level 1218 01:47:50,800 --> 01:48:01,520 funding but they're really not um and so i i think that um i would be i would be more comfortable 1219 01:48:01,520 --> 01:48:08,400 with those that are uh that have money left over that they're rolling forward that if that those 1220 01:48:09,280 --> 01:48:17,040 2021 requests reflect and let's just take the north the koan as you service fireworks and lord 1221 01:48:17,040 --> 01:48:22,720 knows i'm i'm for the fireworks but so this is just an example that's real easy to do so they 1222 01:48:22,720 --> 01:48:29,920 got twenty five thousand dollars left over from last year um now is that money that they have in 1223 01:48:29,920 --> 01:48:34,000 their pocket is that money that they've spent like i think it was spent on fireworks and they're just 1224 01:48:34,000 --> 01:48:37,520 they're getting the credit and they they they don't have to pay for the fireworks next year 1225 01:48:37,520 --> 01:48:43,600 because they've already been paid for correct all of the current sponsorship recipients already have 1226 01:48:43,600 --> 01:48:48,320 their contracted funds and the ones that are rolling over have already spent those so they've 1227 01:48:48,320 --> 01:48:51,840 already paid the invoice to get a discount on those fireworks of course they're not holding 1228 01:48:51,840 --> 01:48:56,960 the fireworks they've just paid the invoice for those to happen and the the other ones are just 1229 01:48:56,960 --> 01:49:03,040 like deposits if you will the arts and jazz festival is a deposit so so what is the total 1230 01:49:03,040 --> 01:49:12,240 amount of that money that's sort of not included in these 2021 requests like so in essence the 1231 01:49:12,240 --> 01:49:19,680 budget for the koan as you services would be it's 40 000 but they've got 25 000 that they didn't have 1232 01:49:19,680 --> 01:49:24,560 to spend last year that they're getting credit for in the next year so that's a really an increase 1233 01:49:24,560 --> 01:49:34,800 of over 25 000 so in year 2021 they're receiving a value per se of 65 000 which is the 40 they're 1234 01:49:34,800 --> 01:49:39,760 asking for and they're not having to spend that necessarily on the fireworks because they're 1235 01:49:39,760 --> 01:49:45,120 getting it from last year so what is the total amount of these carryovers in this column 1236 01:49:47,360 --> 01:49:54,960 it would be the 25 the 6425 and the 378 that are noted at the bottom so about 30 1237 01:49:54,960 --> 01:50:01,600 32 000 roughly about 32 000 right and the arts and jazz is the only one that's not asking for 1238 01:50:01,600 --> 01:50:08,800 more money in the next year so this is just the 25 000 and the 378 dollars okay all right all right 1239 01:50:08,800 --> 01:50:16,400 yeah so i think we got to think about something the 378 obviously the biggest one is the 25 000 1240 01:50:16,400 --> 01:50:23,040 uh and i think it should i think what i'm comfortable with is somehow showing in the 1241 01:50:23,040 --> 01:50:31,920 request that they're requesting there they've got 15 000 plus the 25 gives them to their 40 1242 01:50:31,920 --> 01:50:37,200 that they're requesting this year but they're requesting an additional amount i just i want to 1243 01:50:37,200 --> 01:50:43,120 make sure that this all flows well because just by looking at this you don't know that that 40 000 1244 01:50:43,120 --> 01:50:48,720 means they really have 65 000 in the following year uh and i'm not picking on them i just i 1245 01:50:48,720 --> 01:50:52,720 want to make sure that when it comes before a discussion that we all understand that because 1246 01:50:52,720 --> 01:50:59,440 some people may have some reservations about increasing that funding almost 50 over 50 so 1247 01:50:59,440 --> 01:51:05,760 that's my only concern no that's legitimate i mean right we uh we we really don't want to see 1248 01:51:05,760 --> 01:51:16,080 windfalls from this current situation from that's a good way to put it yeah i think i think that's a 1249 01:51:16,080 --> 01:51:25,280 valid point i mean i would be fine with um kind of digging into that right now and and putting 1250 01:51:25,280 --> 01:51:32,080 that forward in a proposal i actually hadn't realized that it was that in in the case of that 1251 01:51:32,080 --> 01:51:39,440 one example that that was cumulative so then they had it uh that they that they had 65 1252 01:51:39,440 --> 01:51:45,200 we didn't want to skew the number in the proposed because that's you know or what they request but 1253 01:51:45,200 --> 01:51:51,520 you can see in the in the red if you can under remarks or request details in addition to and in 1254 01:51:51,520 --> 01:51:56,080 addition to so yeah they're on the right you will whatever number that is in addition to you would 1255 01:51:56,080 --> 01:52:01,120 add for what they're actually going to get whatever you propose it's plus the 25 and plus the 378 1256 01:52:02,320 --> 01:52:07,600 what about what about this idea y'all this is a much smaller amount of money but it's still money 1257 01:52:07,600 --> 01:52:12,400 that if i'm not mistaken it's general fund and here in about five minutes we got to start budgeting 1258 01:52:12,400 --> 01:52:20,000 the general fund as a council so what if our recommendation to council was to fund the request 1259 01:52:20,000 --> 01:52:26,880 less the rollover amount so less the $25,000 and less the 378 make council aware of it 1260 01:52:27,680 --> 01:52:32,400 when this recommendation goes to them and you know the whole council is going to have to figure out 1261 01:52:32,400 --> 01:52:38,560 where that $25,000 goes in general fund if it's not put into sponsorships it's going to go 1262 01:52:38,560 --> 01:52:45,680 somewhere else so let council make the the final call on whether an organization gets a windfall 1263 01:52:45,680 --> 01:52:50,720 from this situation or if we fund them basically the same put them back in the same position they 1264 01:52:50,720 --> 01:53:00,560 would have been in i'm fine with that me too okay uh mayor is that a is that a motion that is a 1265 01:53:00,560 --> 01:53:09,440 motion i make a motion to modify the request per uh the chair chairman's description of the funding 1266 01:53:09,440 --> 01:53:17,440 mechanism and i second that i second that very good uh there's a motion and a second all those 1267 01:53:17,440 --> 01:53:23,840 in favor say aye aye sounded unanimous to the chair so in the chair's opinion the ayes have it 1268 01:53:23,840 --> 01:53:30,800 motion carries and that will be our recommendation to council and uh sure staff will be able to 1269 01:53:30,800 --> 01:53:38,080 explain that to them just as well as they did to us so um that closes out that agenda item are there 1270 01:53:38,080 --> 01:53:52,560 any concluding items from the body i have one sure council member so i had uh after our last meeting 1271 01:53:52,560 --> 01:53:57,200 i had marked my calendar i was very excited i thought this would be the meeting where we would 1272 01:53:57,200 --> 01:54:10,480 unveil our new name unfortunately that is still in legal review it might be in a legal name it 1273 01:54:10,480 --> 01:54:17,280 might be already taken we might have to add just add another word on or an umlaut or something 1274 01:54:17,280 --> 01:54:24,320 to make it ours but okay well i look forward to that i was gonna yeah go on i was gonna say i was 1275 01:54:24,320 --> 01:54:28,480 gonna ask the same question um for the record we've got three lawyers staring at the camera right now 1276 01:54:28,480 --> 01:54:37,200 so um would it would it be helpful to staff or to the process if uh if one of us put in a one minute 1277 01:54:37,200 --> 01:54:42,160 pitch request or something like that did that help it get agenda placed with the council faster or is 1278 01:54:42,160 --> 01:54:47,920 it just got to run through its process regardless it's i think it needs to run through the process 1279 01:54:47,920 --> 01:54:52,400 right mack yeah i'll go through the process and i don't anticipate it going through a preliminary 1280 01:54:52,400 --> 01:54:58,480 process it'll go straight to the agenda from council with you yeah good deal any other concluding 1281 01:54:58,480 --> 01:55:05,840 items all right seeing none uh thanks thank you all that was uh more painless than it could have 1282 01:55:05,840 --> 01:55:10,160 been i appreciate everybody's help today and especially the financial wizards walking us 1283 01:55:10,160 --> 01:55:17,280 through it um and that concludes our agenda thank you thank you all i appreciate it