WEBVTT 00:00:00.000 --> 00:00:08.440 Good morning and welcome to this meeting of the Hotel Occupancy Tax and Sponsorship Committee 00:00:08.440 --> 00:00:10.140 of the Denton City Council. 00:00:10.140 --> 00:00:17.020 We'll start off with our first item for consideration, hot 20-021. 00:00:17.020 --> 00:00:21.860 Consider approval of the minutes from our June 11, 2020 meeting. 00:00:21.860 --> 00:00:28.900 Do we have any changes or additions to the minutes from that meeting? 00:00:28.900 --> 00:00:31.140 If we don't, do we have a motion for approval? 00:00:31.140 --> 00:00:34.080 I move for approval. 00:00:34.080 --> 00:00:37.560 Okay, I saw Councilmember Armitter, but I heard Mayor Watts. 00:00:37.560 --> 00:00:43.080 So I'm going to say Mayor Watts moved approval and Councilmember Armitter, do you second? 00:00:43.080 --> 00:00:44.080 Yes. 00:00:44.080 --> 00:00:45.080 Okay, there's been a motion and a second. 00:00:45.080 --> 00:00:46.580 All those in favor say aye. 00:00:46.580 --> 00:00:47.580 Aye. 00:00:47.580 --> 00:00:48.580 Aye. 00:00:48.580 --> 00:00:49.580 Aye. 00:00:49.580 --> 00:00:54.120 With no one in opposition, the minutes are approved from our June 11 meeting that moves 00:00:54.120 --> 00:01:02.040 us to item hot-022, receive a report and hold a discussion regarding Discover Denton. 00:01:02.040 --> 00:01:03.640 Yes, sir. 00:01:03.640 --> 00:01:08.840 This second item is a direct reflection of Councilmember Armitter's request from our 00:01:08.840 --> 00:01:12.000 last meeting on June 11 and concluding items. 00:01:12.000 --> 00:01:17.480 She requested some information regarding just the hotel tourism in general for the City 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 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, 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 00:01:38.880 --> 00:01:39.880 up. 00:01:39.880 --> 00:01:45.480 Of course, we went to our resident expert, I'm calling them Discover Denton. 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. 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 00:01:52.700 --> 00:01:57.080 Denton as they move forward to that new name for themselves and branding. 00:01:57.080 --> 00:02:00.400 And so we have invited Mike, he's got a short presentation. 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 00:02:04.440 --> 00:02:06.000 right corner. 00:02:06.000 --> 00:02:07.880 And I will bring up your presentation. 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 00:02:11.640 --> 00:02:16.400 me next slide, please, and I will do my best. 00:02:16.400 --> 00:02:17.400 Sounds good. 00:02:17.400 --> 00:02:18.400 Thank you. 00:02:18.400 --> 00:02:19.400 Thank you, committee. 00:02:19.400 --> 00:02:20.400 Appreciate the time this morning. 00:02:20.400 --> 00:02:21.400 Good morning to everybody. 00:02:21.400 --> 00:02:22.400 Yeah. 00:02:22.400 --> 00:02:28.240 So just wanted to follow up with from the last meeting and Councilmember Armitage had 00:02:28.240 --> 00:02:31.360 some questions and some of the committee did. 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 00:02:36.040 --> 00:02:40.760 doing obviously since the quarantine had started. 00:02:40.760 --> 00:02:45.040 And so really, this is touching on things that came up last month in your meeting. 00:02:45.040 --> 00:02:49.760 The first thing was really just some specific activity due to the shelter actually go back 00:02:49.760 --> 00:02:50.760 Randy. 00:02:50.760 --> 00:02:51.760 Well, that's fine. 00:02:51.760 --> 00:02:52.760 I can't get it full screen yet. 00:02:52.760 --> 00:02:53.760 I don't know what it's doing. 00:02:53.760 --> 00:02:54.760 Okay. 00:02:54.760 --> 00:02:55.760 Give me one second. 00:02:55.760 --> 00:02:56.760 I'll see if I can do anything else. 00:02:56.760 --> 00:03:00.160 Billy and I just went over this and it worked. 00:03:00.160 --> 00:03:03.880 Do you have any suggestions, David? 00:03:03.880 --> 00:03:11.740 Just a little clicker down here won't do anything. 00:03:11.740 --> 00:03:15.400 Well I mean I can read it because I got it up on my right. 00:03:15.400 --> 00:03:16.400 So it's not doing it. 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. 00:03:24.400 --> 00:03:26.400 All right. 00:03:26.400 --> 00:03:29.400 There we go. 00:03:29.400 --> 00:03:31.920 All right. 00:03:31.920 --> 00:03:32.920 There we go. 00:03:32.920 --> 00:03:33.920 Thank you, Randy. 00:03:33.920 --> 00:03:34.920 Yeah, just go to the next slide. 00:03:34.920 --> 00:03:39.240 So this is just a quick recap of some of the things. 00:03:39.240 --> 00:03:44.720 The team has been doing an incredible job obviously like every other business and organization 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 00:03:53.240 --> 00:03:57.420 hotel revenue and help our hospitality partners and community partners. 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, 00:04:01.320 --> 00:04:06.720 any other CVB or DMO, we immediately paused all of our marketing and advertising efforts 00:04:06.720 --> 00:04:13.360 as a cost savings measure and then we evolved directly to become more community driven and 00:04:13.360 --> 00:04:21.360 focus on Denton focused marketing, talking about the community, support local, things 00:04:21.360 --> 00:04:24.840 like that because people just weren't traveling. 00:04:24.840 --> 00:04:29.800 We created a COVID-19 resources page on our website providing information and updates 00:04:29.800 --> 00:04:34.880 on government health and safety protocols, city of Denton announcements, what events 00:04:34.880 --> 00:04:40.560 were still taking place, what were closing, first responder and health workers, special 00:04:40.560 --> 00:04:42.360 rates that the hotels have provided. 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. 00:04:46.280 --> 00:04:50.760 First thing people see, we've received a lot of great feedback from that. 00:04:50.760 --> 00:04:56.360 We then produced our Distant Denton campaign which was really a creative video put together 00:04:56.360 --> 00:05:01.160 by Jake Laughlin and our Dentonradio.com team, people on our marketing team. 00:05:01.160 --> 00:05:07.120 It was a 30 second promotional video that talked about Denton, stay at home, be safe 00:05:07.120 --> 00:05:11.580 and Denton will be here when it's time and safe to come back. 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 00:05:14.760 --> 00:05:17.280 already have it, it's on our website. 00:05:17.280 --> 00:05:19.880 It's really great, we got a lot of great feedback from that. 00:05:19.880 --> 00:05:25.160 We also created a Discover Denton virtually web page so people can, you know, videos that 00:05:25.160 --> 00:05:31.360 had VR tours, Denton trivia game, Spotify playlist for our great Denton musicians, featured 00:05:31.360 --> 00:05:32.880 our mural tour. 00:05:32.880 --> 00:05:37.760 We even had downloadable Zoom backgrounds so that people can, you know, get their piece 00:05:37.760 --> 00:05:41.360 of Denton while they're home and zooming in their meetings. 00:05:41.360 --> 00:05:47.200 Our sales and services team has been assisting with meeting planners, rescheduling events. 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, 00:05:51.360 --> 00:05:54.240 come back in the fall, come back early next year. 00:05:54.240 --> 00:05:57.200 We've been having some great success with that. 00:05:57.200 --> 00:06:02.040 Ongoing communication efforts with our hotel GMs and owners has been going on. 00:06:02.040 --> 00:06:05.320 Probably the communication now is better than it's ever been. 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 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 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. 00:06:23.960 --> 00:06:27.280 We've openly now these hotels, they're all communicating back to us here at Discover 00:06:27.280 --> 00:06:28.280 Denton. 00:06:28.280 --> 00:06:30.240 We're sending that information out to the other hotels. 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. 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 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 00:06:44.880 --> 00:06:47.920 doing a great job of communicating openly with everyone else. 00:06:47.920 --> 00:06:52.000 You know, it's camaraderie now, it's not a competition. 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 00:06:56.080 --> 00:06:57.080 part of our goal. 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, 00:07:03.320 --> 00:07:08.320 we created some real cool original content to support local restaurants and hotels and 00:07:08.320 --> 00:07:10.880 shops and entertainment venues. 00:07:10.880 --> 00:07:14.400 Hopefully you guys have all seen all this stuff before and apologize if it's redundant, 00:07:14.400 --> 00:07:16.560 but I just wanted to get in touch on these things. 00:07:16.560 --> 00:07:21.720 The ultimate Denton bracket, which was our March Madness Bracketology competition, where 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 00:07:28.080 --> 00:07:34.720 voted through Facebook and Instagram on what was their favorite Denton venue. 00:07:34.720 --> 00:07:40.680 And that was an incredible success, a lot of participation. 00:07:40.680 --> 00:07:44.120 I've got another slide coming right after this that will show some results for that. 00:07:44.120 --> 00:07:48.120 We created the Quarantune Songwriting Competition, which began with Denton tapping into the local 00:07:48.120 --> 00:07:50.000 music scene. 00:07:50.000 --> 00:07:56.600 We had a competition that went on for about a month and people submitted songs, original 00:07:56.600 --> 00:08:01.980 songs about Denton, and when we actually had 24 entries, we put together a compilation 00:08:01.980 --> 00:08:05.800 album that's now a Spotify playlist. 00:08:05.800 --> 00:08:11.880 The winners all were able to come into Denton Radio and record their recording live there. 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 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 00:08:21.960 --> 00:08:26.520 record their song professionally, and we got, again, great feedback on that. 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 00:08:31.040 --> 00:08:32.160 right behind this. 00:08:32.160 --> 00:08:36.840 And then DentonRadio.com, again, tapping into the local hotel community, did interviews 00:08:36.840 --> 00:08:41.360 and set up live interviews that they streamed with Denton Hotel leadership where they could 00:08:41.360 --> 00:08:45.280 talk about their properties and that, yes, they are still open, that they have enhanced 00:08:45.280 --> 00:08:49.080 cleaning standards, and that we're ready for people to come in and travel. 00:08:49.080 --> 00:08:52.520 Randy, next slide, please. 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 00:08:57.080 --> 00:09:01.240 the nightlife, the restaurants, festivals, events region, and then the shopping region. 00:09:01.240 --> 00:09:06.120 And this was purely, it was a creation of Wendy from our marketing team. 00:09:06.120 --> 00:09:08.120 It was really great, creative. 00:09:08.120 --> 00:09:13.240 There was rankings for each business or organization that meant nothing. 00:09:13.240 --> 00:09:14.500 It was just kind of random. 00:09:14.500 --> 00:09:16.360 She put that all out there on the front end. 00:09:16.360 --> 00:09:18.120 And then people voted each week. 00:09:18.120 --> 00:09:21.600 And again, it was a good way to keep everyone engaged. 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. 00:09:26.080 --> 00:09:32.560 And as you can see from the, we reached about 149,000 people on Facebook. 00:09:32.560 --> 00:09:34.880 Twitter impressions were almost 65,000. 00:09:34.880 --> 00:09:38.400 So again, it was very successful in that, again, it was just keeping Denton present, 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 00:09:43.240 --> 00:09:45.300 throughout other channels. 00:09:45.300 --> 00:09:48.360 Next slide, Brandy. 00:09:48.360 --> 00:09:49.640 This was our social distancing guide. 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 00:09:54.880 --> 00:09:55.880 Denton. 00:09:55.880 --> 00:09:56.880 All right, here's some laughs. 00:09:56.880 --> 00:09:59.040 Six feet of distance in Denton. 00:09:59.040 --> 00:10:02.320 So again, a lot of people had the standard, here's what six foot is. 00:10:02.320 --> 00:10:05.800 Well, we were, you know, again, putting this out on social media, on our website. 00:10:05.800 --> 00:10:07.620 We were sharing it with other businesses. 00:10:07.620 --> 00:10:11.240 So it was a good way again to incorporate some local businesses. 00:10:11.240 --> 00:10:16.800 You can see six feet is eight microphones from Dan Silverleaf or six record from Mad 00:10:16.800 --> 00:10:19.440 World Records, two guitars from Andy's Bar. 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 00:10:23.480 --> 00:10:24.480 of things together. 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 00:10:31.040 --> 00:10:32.040 good feedback. 00:10:32.040 --> 00:10:33.040 Next slide, please. 00:10:33.040 --> 00:10:41.400 This, again, just tests back on the quarantine songwriting competition in that it had started 00:10:41.400 --> 00:10:46.120 in April, ended in May, and now we had the 24 songs submitted. 00:10:46.120 --> 00:10:48.560 Again, it was really fun competition. 00:10:48.560 --> 00:10:51.360 You can go right on Spotify or on our website and find the playlist. 00:10:51.360 --> 00:10:53.600 Some incredible songs were really submitted. 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 00:10:58.080 --> 00:11:02.680 able to showcase that and put a good focus on that during these times. 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 00:11:06.120 --> 00:11:07.120 hotel leadership. 00:11:07.120 --> 00:11:12.440 Zach Glenn from the Best Western and Bianca Phillips from the Hilton Garden Inn. 00:11:12.440 --> 00:11:15.240 Next slide. 00:11:15.240 --> 00:11:18.020 And then just a couple of quick things here on some other activity during the shelter 00:11:18.020 --> 00:11:21.160 at home from our sales teams. 00:11:21.160 --> 00:11:22.920 The groups did stop down. 00:11:22.920 --> 00:11:26.120 Convention business came to a halt, but our team has been actively involved, especially 00:11:26.120 --> 00:11:30.620 the last month and six weeks getting people rescheduled. 00:11:30.620 --> 00:11:32.400 We're still talking to meetings planners. 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. 00:11:38.400 --> 00:11:44.920 So when we started the lockdown, 2,200 room nights over a $775,000 economic impact. 00:11:44.920 --> 00:11:50.680 So Ruben Perez and his team are still out there aggressively speaking to planners and 00:11:50.680 --> 00:11:54.480 trying to get people to book, working with all the hotel partners, working with the Denton 00:11:54.480 --> 00:11:55.480 Convention Center. 00:11:55.480 --> 00:11:58.560 We're continuing to have conversations with clients. 00:11:58.560 --> 00:11:59.760 Again, rebook. 00:11:59.760 --> 00:12:00.760 Don't cancel. 00:12:00.760 --> 00:12:03.360 Get you to rebook. 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 00:12:07.880 --> 00:12:09.520 a very incredible program. 00:12:09.520 --> 00:12:13.760 Obviously, those ranches have been shut down and we're not having groups out there. 00:12:13.760 --> 00:12:16.000 So we've had to put that program on hold. 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 00:12:20.240 --> 00:12:21.240 or how we do it. 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 00:12:27.320 --> 00:12:31.760 it's safe again for people to come out and come onto the ranches. 00:12:31.760 --> 00:12:33.920 And then we have active leads going right now. 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. 00:12:39.680 --> 00:12:47.240 So again, the sales team has been very, very busy catching up, cleaning up our database, 00:12:47.240 --> 00:12:50.240 following up on traces. 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 00:12:53.360 --> 00:12:55.800 these hotels and get the occupancies back up. 00:12:55.800 --> 00:12:58.760 And that's ultimately our goal. 00:12:58.760 --> 00:13:01.480 Next slide. 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 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 00:13:11.320 --> 00:13:13.480 the end of this year, program year. 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 00:13:18.960 --> 00:13:25.200 had put together when this all started and this is actually working with state associations 00:13:25.200 --> 00:13:29.280 and national destination organizations, you know, is really where we're at. 00:13:29.280 --> 00:13:33.400 So we started in the wait mode, which is when everything was quarantined and social distancing 00:13:33.400 --> 00:13:35.880 orders were in place. 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 00:13:41.360 --> 00:13:43.800 public and trip planning, and then go free to travel. 00:13:43.800 --> 00:13:46.080 And these were really the four quadrants. 00:13:46.080 --> 00:13:47.280 And we were in that wait mode. 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 00:13:51.200 --> 00:13:55.240 and providing inspiration and relevant information and we're beginning incorporating calls to 00:13:55.240 --> 00:13:57.400 action in our messaging. 00:13:57.400 --> 00:14:04.080 So this is really some guidance again from national organizations as well on how we can 00:14:04.080 --> 00:14:07.640 go back and get travelers coming and conventioneers coming back to Den. 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 00:14:12.920 --> 00:14:13.920 to get into that. 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 00:14:17.280 --> 00:14:20.440 know, things get a little, again, tighter. 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 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 00:14:30.760 --> 00:14:35.800 start putting some messaging out there again and some marketing out to the broader range 00:14:35.800 --> 00:14:38.200 in the region about coming back to Den. 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 00:14:41.720 --> 00:14:43.920 to support our hotels and our business here. 00:14:43.920 --> 00:14:49.000 So we're doing that dance between both. 00:14:49.000 --> 00:14:50.760 Next slide. 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 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. 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 00:15:05.320 --> 00:15:09.840 can save by the end of the year and give back? 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 00:15:15.660 --> 00:15:20.520 details exactly where our savings came up because we had a pretty nice savings. 00:15:20.520 --> 00:15:21.920 Really what I did is I lumped this all together. 00:15:21.920 --> 00:15:25.520 I know there's a lot of numbers there, but the important columns, the savings column, 00:15:25.520 --> 00:15:30.360 which was the 262 K and then I have detailed notes in there for everything. 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 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 00:15:40.320 --> 00:15:41.640 this year. 00:15:41.640 --> 00:15:43.980 The first month we didn't have a director of sales. 00:15:43.980 --> 00:15:48.920 We didn't have our director of marketing position filled until June. 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 00:15:54.120 --> 00:15:59.060 opportunity as well as we had someone in our welcome center move on the manager there. 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 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 00:16:08.240 --> 00:16:09.240 on. 00:16:09.240 --> 00:16:14.960 The other main thing we saved on is just paid marketing and advertising, general advertising 00:16:14.960 --> 00:16:18.160 where we're not doing any digital advertising. 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 00:16:22.580 --> 00:16:26.560 with not knowing what's going on, there's all the events and festivals are canceling. 00:16:26.560 --> 00:16:29.300 That was a large expense in itself. 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 00:16:33.600 --> 00:16:39.880 probably another $6,000 or $7,000 just distributing that to different welcome centers and around 00:16:39.880 --> 00:16:42.560 the state to all the hotels. 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. 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 00:16:52.620 --> 00:16:56.880 did open up tomorrow and the conventions were back and there were travels and associations 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. 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 00:17:06.040 --> 00:17:11.520 with the shortfall that's coming, we know it's impacted the hotels tremendously. 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 00:17:16.460 --> 00:17:20.440 responsible because we get the biggest share of the hot funds. 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 00:17:26.000 --> 00:17:28.720 and we want to keep our team out there. 00:17:28.720 --> 00:17:32.920 So we're doing everything this year that we can to get ahead of it. 00:17:32.920 --> 00:17:37.440 Like I said, the sales team hasn't stopped talking to meeting planners. 00:17:37.440 --> 00:17:38.940 We haven't stopped communicating. 00:17:38.940 --> 00:17:43.360 We haven't stopped trying to do things to get groups here. 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. 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 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 00:18:06.360 --> 00:18:11.320 that are taken out of our marketing plan for the coming year, the upcoming year. 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 00:18:14.800 --> 00:18:16.240 city of Denton. 00:18:16.240 --> 00:18:18.160 That's what Discover Denton is here to do. 00:18:18.160 --> 00:18:19.160 We're here to drive tourism. 00:18:19.160 --> 00:18:20.160 We're here to drive to meetings. 00:18:20.160 --> 00:18:25.400 We're here to drive conventions and try to get visitors to stay in these hotels. 00:18:25.400 --> 00:18:29.980 And right now with the occupancy is down, they're down. 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 00:18:34.640 --> 00:18:39.240 June at 48% occupancy for the hotels. 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 00:18:42.920 --> 00:18:46.520 where the hotels came in at 40% occupancy. 00:18:46.520 --> 00:18:50.080 And then in April, which was the worst month, we were at 28%. 00:18:50.080 --> 00:18:53.840 So there's been steady increase over the past three months. 00:18:53.840 --> 00:18:55.580 So that's again, an encouraging sign. 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. 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 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 00:19:10.560 --> 00:19:17.520 normal occupancies that are generally in the 70% range, 65, 70, 75% range depending on 00:19:17.520 --> 00:19:18.520 the month. 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 00:19:22.360 --> 00:19:26.200 the travel planning process as easy as possible for visitors. 00:19:26.200 --> 00:19:27.400 We're developing a new website. 00:19:27.400 --> 00:19:30.880 It's actually a project we started in the beginning of the year before all this. 00:19:30.880 --> 00:19:35.080 So we keep tweaking and enhancing our current website, but we have a whole new platform 00:19:35.080 --> 00:19:44.120 coming online that's really going to make it much more user friendly, much more interactive 00:19:44.120 --> 00:19:49.040 and overall, it's going to connect to our internal CRM database. 00:19:49.040 --> 00:19:55.760 So we'll have one seamless software program now for leads generation, for RFPs and things 00:19:55.760 --> 00:20:01.280 that come right to our website directly into our systems here internally, which is great. 00:20:01.280 --> 00:20:05.200 We're going to really, as everyone knows, with everything going on now, we're trying 00:20:05.200 --> 00:20:10.380 to, the whole country, promote things outdoors and where there's larger space. 00:20:10.380 --> 00:20:14.780 So we're going to increase awareness about Denton's 300 plus acres of open space. 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 00:20:18.720 --> 00:20:19.720 Louisville. 00:20:19.720 --> 00:20:22.240 Again, we want people to stay here. 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 00:20:26.600 --> 00:20:28.320 our hotels. 00:20:28.320 --> 00:20:30.760 Great things to do outdoors in this area. 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. 00:20:37.200 --> 00:20:41.840 We're going to continue to build strong relationships with select tourism, travel, meeting planners 00:20:41.840 --> 00:20:44.280 and event planners. 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. 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. 00:20:53.360 --> 00:20:57.160 We've had to use abbreviated hours with the Welcome Center. 00:20:57.160 --> 00:21:01.700 With everything that was going on, it was actually shut down for about 10 weeks, but 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 00:21:09.160 --> 00:21:10.160 of foot traffic through there. 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 00:21:15.440 --> 00:21:16.440 redid the floor. 00:21:16.440 --> 00:21:22.320 We've got all enhanced safety protocols, the sneeze guards, the hand sanitizer, everything 00:21:22.320 --> 00:21:25.680 that is required of every business, everyone wearing a mask. 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 00:21:30.400 --> 00:21:31.400 in. 00:21:31.400 --> 00:21:34.480 Again, we're helping to make that as another excuse for getting people downtown to help 00:21:34.480 --> 00:21:37.240 support everything that's around it. 00:21:37.240 --> 00:21:41.240 There's a few other things on there. 00:21:41.240 --> 00:21:45.200 I hope that addressed everything and obviously I'm here for questions or anything that you 00:21:45.200 --> 00:21:46.200 have. 00:21:46.200 --> 00:21:53.360 Yeah, that was the last slide. 00:21:53.360 --> 00:21:56.640 - Any questions for Mike, Council Member Armitage? 00:21:56.640 --> 00:21:57.640 - Yes. 00:21:57.640 --> 00:22:00.120 I have several questions. 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, 00:22:04.800 --> 00:22:09.920 but now you know I generally thought that was just wonderful. 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 00:22:16.120 --> 00:22:22.440 around and looking at what you have up there. 00:22:22.440 --> 00:22:23.880 It was really inspiring to me. 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 00:22:33.080 --> 00:22:39.400 happened this pandemic, it has brought out the creativity in everybody and we are such 00:22:39.400 --> 00:22:44.800 a creative town and it's not only our artists who are creative. 00:22:44.800 --> 00:22:51.960 I'm just really delighted and inspired by the creativity that I see in these changes 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 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 00:23:06.520 --> 00:23:10.600 only come in emergencies, it's just really wonderful to see. 00:23:10.600 --> 00:23:17.320 I was wondering if Discover Denton had thought about putting, and this was something that 00:23:17.320 --> 00:23:23.560 I hadn't thought about with Discover Denton until just looking at this just now, with 00:23:23.560 --> 00:23:31.360 all the attention nationwide on promoting Black-owned businesses, maybe having a feature 00:23:31.360 --> 00:23:38.680 of Black-owned businesses in Denton with links. 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 00:23:46.600 --> 00:23:52.340 great way both for you all to call attention to local Black-owned businesses, but also 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 00:23:58.120 --> 00:24:02.120 to direct them to Discover Denton. 00:24:02.120 --> 00:24:05.920 I just see that as a win-win. 00:24:05.920 --> 00:24:18.440 I was wondering if you could talk about, for conventions, are there both at Embassy Suites, 00:24:18.440 --> 00:24:25.040 or our convention center rather, but also if there's some sort of standardization of 00:24:25.040 --> 00:24:34.040 convention practices for our hotels that might have smaller conventions, what is the current 00:24:34.040 --> 00:24:40.560 policy about refunds regarding COVID to people? 00:24:40.560 --> 00:24:44.560 If there has been a convention scheduled, or say somebody schedules a convention for 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 00:24:54.280 --> 00:24:57.760 still COVID going on, or if for COVID reasons? 00:24:57.760 --> 00:25:00.120 Yeah, that's a great question. 00:25:00.120 --> 00:25:04.160 Obviously, with the different brands and different hotel management companies, everyone has their 00:25:04.160 --> 00:25:05.920 own policies. 00:25:05.920 --> 00:25:11.920 We can't set their policies, but yes, Deb, they're being very forgiving, obviously. 00:25:11.920 --> 00:25:13.920 We've had to be flexible. 00:25:13.920 --> 00:25:17.320 They're encouraging people still, "Let's rebook." 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. 00:25:22.480 --> 00:25:24.800 They're looking to get people rescheduled. 00:25:24.800 --> 00:25:27.720 Most groups are very welcoming of that. 00:25:27.720 --> 00:25:28.720 They're fine with that. 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, 00:25:32.760 --> 00:25:33.760 for sure. 00:25:33.760 --> 00:25:34.760 They've been very flexible. 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 00:25:38.760 --> 00:25:39.800 them too. 00:25:39.800 --> 00:25:40.800 Hotels are pretty rigid. 00:25:40.800 --> 00:25:42.800 They've got contracts just like everyone else. 00:25:42.800 --> 00:25:44.880 I spent 20 years working in the hotel industry. 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 00:25:49.600 --> 00:25:56.320 are being very flexible with their terms, much more loose than they used to be, whether 00:25:56.320 --> 00:25:58.920 it was a force majeure event or not. 00:25:58.920 --> 00:26:02.240 Now, the meeting planner is on the flip side too. 00:26:02.240 --> 00:26:06.600 They're getting savvier and they're asking to write clauses into their contracts that 00:26:06.600 --> 00:26:08.160 do protect them for those things. 00:26:08.160 --> 00:26:11.640 Yeah, I think it's both sides working together, like everything. 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 00:26:15.960 --> 00:26:16.960 thing to do. 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, 00:26:24.840 --> 00:26:30.600 there's just enhanced protocols, the hotels are going to be as flexible as they can. 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 00:26:36.400 --> 00:26:41.240 Hilton and Marriott and Best Western, and they're all doing their own thing. 00:26:41.240 --> 00:26:45.920 But I guess the communication has been good, we've been working together, and they use 00:26:45.920 --> 00:26:49.400 us as the conduit for that so that everyone can share practices. 00:26:49.400 --> 00:26:50.400 Wonderful. 00:26:50.400 --> 00:26:54.560 Well, that is really great to hear, and that makes a lot of sense. 00:26:54.560 --> 00:26:57.020 I'm glad to hear that. 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 00:27:02.040 --> 00:27:11.080 the rebooking campaign, to what extent can Denton's flexibility, at least as you say, 00:27:11.080 --> 00:27:15.960 it's not standardized because you've got these nationwide, including nationwide, not just 00:27:15.960 --> 00:27:22.520 local brands, but to what extent can Denton's flexibility be used, not only to encourage 00:27:22.520 --> 00:27:27.840 people who are already booked to rebook instead of canceling, but to encourage people who 00:27:27.840 --> 00:27:33.040 are thinking about booking a new convention, hey, come book with us because we're going 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 00:27:37.560 --> 00:27:39.360 going to be flexible. 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. 00:27:43.360 --> 00:27:44.840 So I would just, you don't have to answer that. 00:27:44.840 --> 00:27:45.840 I would just say I would continue. 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. 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 00:28:00.840 --> 00:28:03.520 of being a smaller town. 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 00:28:11.240 --> 00:28:12.840 at a Fort Worth. 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 00:28:16.680 --> 00:28:21.540 destination that there's less crowds, there's less people. 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 00:28:24.680 --> 00:28:27.940 use our effectively? 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. 00:28:33.120 --> 00:28:35.440 I got word on it over the weekend. 00:28:35.440 --> 00:28:40.360 We were bidding for a convention, the city of Denton, in our convention center, for the 00:28:40.360 --> 00:28:45.520 Northeast County Judges and Commissioners Association Conference for 2022, and it's 00:28:45.520 --> 00:28:49.560 a conference we've been on twice before in previous years. 00:28:49.560 --> 00:28:55.000 We made it to 18 cities submitted proposals. 00:28:55.000 --> 00:28:58.560 What we did with, again, as the timing, we got more creative over the last month. 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 00:29:03.580 --> 00:29:05.560 at the convention center and the embassy suites. 00:29:05.560 --> 00:29:09.200 We worked together with them because the group was looking at the convention center, put 00:29:09.200 --> 00:29:13.320 together a video, and we submitted that with our proposal. 00:29:13.320 --> 00:29:19.880 We made it to the final three, which was three cities were us, Grapevine, and Rockwall. 00:29:19.880 --> 00:29:25.360 So we were competing against the Gaylord Texan, much bigger hotel than any hotel around here, 00:29:25.360 --> 00:29:30.240 the Hilton Rockwall, and their CVB, and then it was the embassy suites and the convention 00:29:30.240 --> 00:29:31.240 center. 00:29:31.240 --> 00:29:35.480 Last week was the presentation, and Ruben Perez from our team and Josh Delgado from 00:29:35.480 --> 00:29:40.100 the embassy suites actually went to their 2020 convention, which was still taking place 00:29:40.100 --> 00:29:41.960 in Nacogdoches. 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 00:29:47.600 --> 00:29:50.360 the other day that we won the bid. 00:29:50.360 --> 00:29:54.780 So again, it was our efforts of working collaboration with the hotels. 00:29:54.780 --> 00:29:59.240 We actually took the time to go down there and make the presentation in person. 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, 00:30:04.480 --> 00:30:10.000 but ultimately it was that it was a combination of the proposal put together, the relationship 00:30:10.000 --> 00:30:14.120 of Discover Denton working with the convention center, and then the fact that our city and 00:30:14.120 --> 00:30:17.580 hotel took the time to actually go down there and present in person. 00:30:17.580 --> 00:30:18.920 And I'm proud to say we won the bid. 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 00:30:25.040 --> 00:30:28.520 $100,000 in room revenue for the city. 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 00:30:33.000 --> 00:30:34.000 wanted to. 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 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. 00:30:41.040 --> 00:30:42.040 Yeah. 00:30:42.040 --> 00:30:43.040 And thank you so much for that example. 00:30:43.040 --> 00:30:46.800 I know I, for one, love hearing that. 00:30:46.800 --> 00:30:47.800 That's a wonderful story. 00:30:47.800 --> 00:30:50.620 Thank you. 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 00:30:54.880 --> 00:31:01.060 more questions, but if we should rotate, if others have questions, if I should ask my 00:31:01.060 --> 00:31:03.100 several others now. 00:31:03.100 --> 00:31:06.380 I don't have any specific questions from Mike Marruats. 00:31:06.380 --> 00:31:07.380 Do you have questions? 00:31:07.380 --> 00:31:09.180 I don't have any, no. 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 00:31:13.160 --> 00:31:16.100 to talk about this morning. 00:31:16.100 --> 00:31:18.040 So if we could. 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 00:31:24.520 --> 00:31:28.560 I can, we can have our Zoom meeting and talk. 00:31:28.560 --> 00:31:29.560 Anytime. 00:31:29.560 --> 00:31:30.560 Yep. 00:31:30.560 --> 00:31:31.560 No problem. 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, 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 00:31:52.360 --> 00:32:00.280 of other local hoteliers, thinking about how the impending need coming up with schools 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, 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 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, 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 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 00:32:37.460 --> 00:32:44.700 consider using maybe embassy suites or hotels for, or is there some, is there some barrier 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 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 00:32:56.720 --> 00:33:01.200 get some daytime business for hotels, is that an option? 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 00:33:07.560 --> 00:33:11.920 best western premiere, they've had day rates available, really, they were the first to 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 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, 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, 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 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 00:33:34.440 --> 00:33:35.440 rate. 00:33:35.440 --> 00:33:38.820 So there's a few doing that now, specifically for daycare and things. 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 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 00:33:48.640 --> 00:33:54.200 50% occupancies is a lot of them are locals and are regional people coming with families 00:33:54.200 --> 00:33:57.920 and staying the night now, as school moves on, that could be something we could suggest 00:33:57.920 --> 00:34:00.200 to them, so I could certainly bring that to the table. 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 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 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 00:34:22.760 --> 00:34:28.760 all are doing because I'm really inspired by the by the creativity and the flexibility 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. 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 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 00:34:46.440 --> 00:34:49.800 also that, you know, the public is an opportunity to hear some of this too. 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, 00:34:55.160 --> 00:34:58.320 at the end of this month, we're having our next advisory board meeting. 00:34:58.320 --> 00:35:01.960 So we'll be putting together really a whole compilation of the last quarter of information. 00:35:01.960 --> 00:35:04.160 So all that's being worked on right now. 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 00:35:09.400 --> 00:35:10.800 we're here to help and serve. 00:35:10.800 --> 00:35:14.480 So we're here to get through this thing with everybody. 00:35:14.480 --> 00:35:22.400 So again, thank you for the time and if that's it, I'll disappear. 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 00:35:26.280 --> 00:35:27.280 too. 00:35:27.280 --> 00:35:29.680 Our next agenda item is looking at the budget requests. 00:35:29.680 --> 00:35:35.120 Appreciate your organization's forethought and attention to detail in that budget request. 00:35:35.120 --> 00:35:37.840 It's going to be very helpful in our decision making. 00:35:37.840 --> 00:35:38.840 Thank you. 00:35:38.840 --> 00:35:39.840 Thank you, Jesse. 00:35:39.840 --> 00:35:40.840 I appreciate it. 00:35:40.840 --> 00:35:47.640 Okay, anything else from council members on this agenda item and then we'll close this 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, 00:35:54.320 --> 00:35:58.800 provide recommendations regarding hotel occupancy tax funding levels and budget requests for 00:35:58.800 --> 00:36:03.880 program year 2021 and fiscal year 2020 to 2021. 00:36:03.880 --> 00:36:04.880 Okay. 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. 00:36:11.360 --> 00:36:15.640 Let me get that up for us. 00:36:15.640 --> 00:36:21.800 Hey, just wants to work quickly for us. 00:36:21.800 --> 00:36:22.800 Okay. 00:36:22.800 --> 00:36:24.280 Everybody on board with that? 00:36:24.280 --> 00:36:25.280 Okay. 00:36:25.280 --> 00:36:26.280 All right. 00:36:26.280 --> 00:36:29.440 So basically this is a very short version of the presentation. 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 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 00:36:37.960 --> 00:36:44.600 then open it up for discussions on all the recipients' requests in their application 00:36:44.600 --> 00:36:52.080 and as well as their budget requests that are embedded in those applications. 00:36:52.080 --> 00:36:57.160 So first we have that the program year 20 revenue estimate is based on actuals less 00:36:57.160 --> 00:37:00.240 than 25% of the budget. 00:37:00.240 --> 00:37:06.360 So for actuals we have October through May currently, and then June through September 00:37:06.360 --> 00:37:08.760 is the 25% we're basing off of budget. 00:37:08.760 --> 00:37:14.480 So that's where we have received or have indicated what our 20 current estimate is. 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 00:37:22.520 --> 00:37:28.840 budget updates from our recipients who showed around 469,000, I believe, impossible refunds 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 00:37:35.840 --> 00:37:42.320 year estimates are already embedded in those numbers when we get to our fund balance sheets. 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, 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 00:37:55.680 --> 00:37:59.640 that we have shown to you in the previous couple of meetings. 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 00:38:04.040 --> 00:38:07.040 that was May and it was around $90,000. 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 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 00:38:19.120 --> 00:38:21.480 so that that has changed a bit. 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 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 00:38:31.240 --> 00:38:34.300 on there from every requested recipient. 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 00:38:38.920 --> 00:38:41.200 the last couple of months. 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 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 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. 00:39:02.820 --> 00:39:07.320 And really that's all I have for this before we get into the others. 00:39:07.320 --> 00:39:14.360 Other than saying any information on your AIS sheet does include that we have one recipient 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 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 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 00:39:29.400 --> 00:39:33.640 when you're looking at the 2021 requests. 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. 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 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 00:39:58.640 --> 00:40:01.920 than this one. 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 00:40:06.880 --> 00:40:14.880 adds back in the unspent funds and I think I'm looking at the right one. 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 00:40:19.440 --> 00:40:20.440 the time. 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. 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 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 00:40:42.720 --> 00:40:46.040 the presentation in this agenda item in the backup. 00:40:46.040 --> 00:40:52.240 It shows estimated unspent funds of 476,000 change in fund balance and it says revised 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 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 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 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 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 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 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 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 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 00:41:54.520 --> 00:41:59.400 additional information but if you look at the revenues and expenses they're the same 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 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 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 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 00:42:28.040 --> 00:42:33.720 and that's probably why the presentation was updated on when Randy was presenting well 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 00:42:38.200 --> 00:42:43.520 you have the estimate because the slide that was in the presentation stopped those lines 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 00:42:51.480 --> 00:42:59.760 was the 199,217 is the difference between the 277 minus number that the negative number 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 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 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 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 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 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 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 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 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 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 00:44:12.200 --> 00:44:17.560 numbers they gave us last meeting that's the amount the recipients expect not to spend 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 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 00:44:29.400 --> 00:44:34.200 budget versus your recipients estimate so that's just for reference the slide that was 00:44:34.200 --> 00:44:39.560 in the presentation just incorrectly that bottom row was kind of double counting that 00:44:39.560 --> 00:44:47.120 or just calculating incorrectly so the 1.75 is the accurate estimated fund balance assuming 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 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 00:44:59.000 --> 00:45:03.560 the estimate the councilmember armature and councilmember Davis do they have that slide 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 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 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 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 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 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 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 00:45:50.600 --> 00:45:56.760 thousand dollars which means that's money coming back into the hot funds and so when 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 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 00:46:14.040 --> 00:46:19.760 see anything really necessarily being double counted unless that 476 is somewhere up here 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 00:46:23.960 --> 00:46:29.120 so the sliding the backup was just incorrect on those bottom those bottom lines of 476 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 00:49:11.320 --> 00:49:22.360 dollars coming back into the the hot funds correct so on on the fund balance worksheet 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 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 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 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 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 00:49:57.080 --> 00:50:01.200 in our presentation is this in the backup anywhere this right here was attached to the 00:50:01.200 --> 00:50:06.200 email notification because this is what i usually print out as your handout it's also 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 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 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 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 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 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 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 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 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 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 00:51:21.060 --> 00:51:25.400 budgeted expenditures and let's say for this purpose of discussion all that money's been 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 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 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 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 00:51:53.240 --> 00:52:00.680 expenditures line um should still almost when you add back in the money the total expenditures 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 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 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 00:52:22.560 --> 00:52:26.520 just stop right there for a second because the convention center the incentive expenditures 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 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 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 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 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 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 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 00:53:20.280 --> 00:53:24.860 four nine because they've already projected that estimate right but the reductions the 00:53:24.860 --> 00:53:29.360 reductions are just reductions that doesn't that doesn't take into account the money that 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 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 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 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 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 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 00:54:08.800 --> 00:54:14.720 in the estimate reductions on the expense side in actual terms right we're going to 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 00:54:20.600 --> 00:54:25.040 sake of kind of simplicity for having the conversation we've just shown the expense 00:54:25.040 --> 00:54:31.240 reductions here on that column but just to be clear that column is is based completely 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 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 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 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 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 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 00:55:07.040 --> 00:55:16.400 spent everything the way they were supposed to our fund balance would be 1.991284 right 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 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 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 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 00:55:38.440 --> 00:55:43.240 forget the expenditures forget the expenditure side so we got one point trying to read is 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 00:55:52.320 --> 00:55:59.640 those people are only spending two million dollars so forget the estimate on the expenditure 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 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 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 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 00:56:26.760 --> 00:56:32.440 double subtracting it because you're saying it's taken into consideration under the expenditures 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 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 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 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 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 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 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 00:57:10.880 --> 00:57:15.200 it up to make sure that additional almost half a million is built into the correctly 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 01:00:27.120 --> 01:00:34.560 fiscal year 2021 request for for the revenues would there be something another revenue that says 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 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 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 01:00:56.000 --> 01:01:00.880 for f for plant program year 20 would be 2.5 million dollars so it would 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 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 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 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 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 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 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 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 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 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 01:02:17.520 --> 01:02:23.120 that 400 something thousand dollars outstanding to the recipients who still have to pay it back 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 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 01:02:38.400 --> 01:02:42.400 do what would you like us to go ahead and alter this 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 01:05:34.880 --> 01:05:41.760 changed the subtotal recipient expenditures to the 2.5 million because that prior year refund is 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 01:05:49.920 --> 01:05:53.600 we can't put it in there unless we change something else like the expenditures 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 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 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 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 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 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 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 01:06:38.960 --> 01:06:45.440 recommendation from staff specifically on fund balance and where we you know where we ought to 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 01:08:39.040 --> 01:08:44.640 okay we got two million dollars that everybody spent under this scenario under this sort of 01:08:44.640 --> 01:08:51.120 pandemic scenario and when we look at the potential potential revenue projections 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 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 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 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 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 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 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 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 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 01:09:49.440 --> 01:09:56.320 recommendation um but i came into this meeting with with that thought in mind exactly that 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 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 01:10:12.160 --> 01:10:17.440 funding any of these major increases and then we have some entities that have significant decreases 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 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 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 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 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 01:10:49.360 --> 01:10:54.480 talking about the original request or the estimate of what they said they would need 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 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 01:11:08.160 --> 01:11:12.000 for something or you know we talked about fireworks for instance that's a different 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 01:15:44.240 --> 01:15:51.120 council member armenter their convention center hotel 453 and then they come right back out at 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 01:17:52.160 --> 01:17:57.760 appropriate activities are happening and we just heard a great presentation about how that money 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 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 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 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 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 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 01:18:35.440 --> 01:18:41.920 and then fund everybody else flat where they were last year it as a starting point 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 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 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 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 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 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 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 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 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 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 01:19:41.840 --> 01:19:47.280 we've got our our public affairs folks who do our internal marketing to our citizens 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 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 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 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 01:20:09.840 --> 01:20:12.560 without getting into that fund balance in some form or fashion 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 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 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 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 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 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 01:20:48.000 --> 01:20:55.840 we almost fully fund all the requests well we never thought we would have this situation 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 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 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 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 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 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 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 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 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 01:21:50.880 --> 01:21:57.040 near-term history because otherwise that fund balance could be nothing and then of course we 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 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 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 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 01:22:25.120 --> 01:22:35.600 over last year i think that might be helpful might be prescribed by ordinance or statute 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 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 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 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 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 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 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 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 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 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 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 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 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 01:24:02.720 --> 01:24:08.560 expenditures uh i think that would adequately cover what you're worried about mayor that you 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 01:26:09.120 --> 01:26:12.880 well there's a hundred thousand dollar savings right there because what will be included 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 01:28:36.720 --> 01:28:44.560 giving a hot fund to another taxing entity the county being its own taxing entity um 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 01:31:13.360 --> 01:31:19.360 forward to council first week of august it would be part of the proposed budget presentation 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 01:33:34.720 --> 01:33:39.840 of 1.2 million dollars and then that becomes our beginning fund balance next fiscal year 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 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 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 01:33:58.640 --> 01:34:03.040 tab for conversation but obviously go back and forth if one of them works better 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 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 01:34:17.600 --> 01:34:24.480 a council recommendation um but i think we plenty of room for conversation here also so 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 01:37:30.400 --> 01:37:34.320 whole thing i give in how little it is how affordable it is 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 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 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 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 01:38:09.680 --> 01:38:17.920 organization and certainly their their mission and what they bring to the potential for people 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 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 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 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 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 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 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 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 01:39:03.920 --> 01:39:10.000 dollars for internet advertising um forty hundred dollars for rent four hundred dollars for insurance 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 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 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 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 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 01:39:38.000 --> 01:39:42.960 a new organization a new applicant funding their full request especially in a tight year 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 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 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 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 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 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 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 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 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 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 01:40:49.600 --> 01:40:57.440 uh so i you know i i would advocate still for giving them the full amount 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 01:43:30.400 --> 01:43:36.160 regarding sponsorship funding levels and budget requests for fiscal year 2020-21 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 01:43:42.160 --> 01:43:47.840 eighty eight thousand dollars in a set budget each year to allocate to organizations that have 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 01:43:55.600 --> 01:44:01.120 current sponsorship year that we have allowed through the committee's approval in june 11th 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 01:44:06.560 --> 01:44:12.800 will go forward so the county master gardeners association has 378 dollars they're moving forward 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 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 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 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 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 01:44:40.320 --> 01:44:45.120 their pyrotechnics i think another ten thousand dollars but you will see that in the reflection 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 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 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 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 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 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 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 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 01:45:35.920 --> 01:45:41.680 the application process it's just a continuing partnership that this committee um is able to 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 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 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 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 01:46:09.440 --> 01:46:14.560 setting deadlines and that we didn't expect to see rolling requests through the year 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 01:48:37.520 --> 01:48:43.600 because they've already been paid for correct all of the current sponsorship recipients already have 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 01:50:52.720 --> 01:50:59.440 some people may have some reservations about increasing that funding almost 50 over 50 so 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 01:55:05.840 --> 01:55:10.160 been i appreciate everybody's help today and especially the financial wizards walking us 01:55:10.160 --> 01:55:17.280 through it um and that concludes our agenda thank you thank you all i appreciate it