Master Plannning - Regular Meeting

Oh my goodness. He is giving me more white hairs every day. That's what he's doing.

They like to do that. So will it change on here? Because normally it's the whatever's showing online is on our screens. Well, it's showing us, but normally it just has the Techie logo. Okay. All right. It is 1.31. I'm going to call the Corpus Christi B Corporation meeting to order. Ms. Huerta, would you please call the roll?

President Diana Summers. Here. Vice President Jesus Jimenez. Here. Secretary Mark LaRue.

Here.

Victoria Holland. Here. Johnny Filippello. Here. Duke Conchola is absent. Claudia Mustagasi, I understand, is on her way, but she's not here right now. Okay, so we do have a quorum present to conduct the meeting.

Thank you very much. Next, we have public comment. Do we have anyone here that would like to make public comment? Seeing none, Ms. Huerta, have you received any public comment?

No, ma'am.

All right. Okay, moving on to our minutes and excused absences. Are there any corrections to the May meeting minutes? Seeing none, I'll entertain a motion to approve the meeting minutes.

Motion to approve.

Second.

All those in favor say aye.

Aye.

Any opposed say no. The motion carries. We did have a few absences from Mr. Jimenez, Mr. Filippillo, and Mr. LaRue from our May meeting. Would you like to request an excused absence?

Yes. Yes, I would like to. I guess you may make a do I need to make the motion or does Victoria need to make it.

A motion to approve the absences. Of Mr. LaRue, Mr. Jimenez and Mr. Filippello.

And I'll second that motion. All those in favor say aye. Aye. Any opposed say no. The motion carries. Next we have item E, the financial report.

the financial statements include a balance sheet as well as an income statement. I have a brief presentation on some of the financial information as well as budget to actual for the different funds for the type b corporation. So we'll start with the first set of existing funds which I think expired in 2038. This existing type B authorization consists of three major funds which are economic funds for economic development, funds for housing, as well as funds for street capital projects. Starting with your economic development fund program here, the total revenue budgeted for this fund amounted to $4.7 million. year-to-date as of April amount to 2.9 million this leaves about 1.8 million of sales tax revenue pending to be collected. Jumping down to the total expenditures row we have a total of 12 million budgeted for expenditures 3.6 has been spent as of April 30th this is leaves about 8.3 of appropriations pending to be spent which is mostly funding for major business incentive projects as well as small business projects. Jumping down to your last row, your ending fund balance as of April 30th is 8.7 on an actual basis, and we anticipate to end the fiscal year with a fund balance of about 2.2. this next table is a forecast of funds available for commitment somewhat of a cash flow projection and the way this table works is we start off with your beginning fund balance and then we forecast out revenues here and add that to your fund balance and we forecast out with a 1% growth on sales tax so it's somewhat conservative and so that gives you total funds available for commitments and other expenses then we reduce those funds by the amount of commitments that are existing and those are projected out based on actual spent. Then we have administration other expenditures which are also projected out and this leaves a running total of funds available for commitments in your last column and you can see here the funds available continue to grow as the sources of funding coming in exceed the sources of funding going out. This is just a snapshot of your economic development fund for major business incentives and small business contracts Total 8.8 has been committed to this program with about 4.7 expected to be spent in the current fiscal year And then we have a site on are all of those projects on track to pay out for this year and I'll hand that over to economic development here. We kind of just work off a worksheet, but the department would be best to comment on that.

Okay, just an update on where those all stand.

To answer your question, from the finance side, those are estimates. They're not guaranteed to be paid out, and that's how we see them. next we have the economic development fund which the administration operating expenditures for this fund and the total 7.9 has been committed over the life of the this authorization or expected to be committed those numbers can fluctuate in 2026 we expect to spend about 1.7 million of that 1.4 million is a transfer to the CIP fund so on average your administrative cost for the city is about a hundred fifteen thousand and $346,000 for the Corpus Christi Regional Economic Development Center. So on average, the admin cost is about $471,000 between both entities. This is a snapshot of your Type B economic development funds capital improvement plan program. So a total of $5 million has been budgeted in the CIP fund, with the majority of that committed to the Harbor Playhouse. $346,000 has been expense to date. We do have encumbrances of $232,000. This leaves a balance of about $4.4 million. Our next major fund is the Affordable Housing Fund. If we go down to the total revenues, a total of $575,000 has been budgeted. Actuals year-to-date are $573,000, so your total budget has been met. are about to be met. It's slightly under by about $1,000. Next line down, we go to total expenditures. A total of a million has been budgeted with about $41,000 spent. This leaves about $1,034,000 to be spent. And the next slide will show that commitment of what those million dollars are pending for. So we jump down to your ending fund balance. A total of $2 million is anticipated based on the budget basis. As of April 30th, fund balance is about $3 million. for the housing fund we have a million dollars committed for the palo verde senior apartments project which is anticipated to be spent here in 2026. The last one from this first authorization type b sales tax is the streets arterial collector fund a total of 4 million of revenues have been budgeted for this fund 2.2 million has been collected as of April this leaves about 1.8 million pending to be collected. Expenditures amounts about 4.1 million, which is a majority is to transfer over to streets of 4.1 Total 2.4 is Expenditures I've been earned today. This leaves about 1.7 million of Appropriations to be spent which is largely related to the transfer to the streets fund At the end of the year we anticipate this one to end with the fund bounces on the budget basis of 35,000 currently we have a slight deficit of 35,000 but we expect to the true that up by a year and This here is a snapshot. This says contracts and commitments. It's really a snapshot of your administrative services cost and the transfer out to the CIP fund that hasn't had the remaining balance of that. So we expect 1.7 to be transferred out to the CIP fund in fiscal year 26. And we have about $29,000 left to be paid in admin services. On average, we spend about $75,000 on administrative services. this is a snapshot of your street fund CIP a Total of one point I'm sorry a total nineteen point three million has been budgeted for projects in the street fund a total of four point eight has been spent with encumbrances of three point eight this leaves about ten point five million of funds pending to be spent Okay, so now we have our new sales tax authorization, which also consists of three new funds. One fund is for facilities, which is funded by one-sixteenth of the sales tax. We have another fund for arterial and collector streets, which is also funded by one-sixteenth of sales tax. And then we have the downtown seawall and citywide flood control, which is one-eighth of sales tax. So the first fund here we have is the Facilities Fund with total revenues budgeted at $1.8 million. No revenues yet collected. We expect those to be coming in here in the month of June. Total expenditures are budgeted at $1.8 million with $46,000 spent year-to-date as of April. This leaves a balance of about $1.8 million. Overall, we anticipate the fund balance on a budget basis to end at $3,846.

as of april thirtieth we do have a deficit fund balance but we do anticipate those revenues to come in to troop our fund balance quick question for you just to clarify those facilities are c district facilities only is that correct i think it is i just would suggest maybe including that wording or something so we don't go down rabbit trails in the future i'll double check i don't know off the

right off the top of my head. Do you want to go ahead?

Sure. It's the entire Hilliard Center complex and then the cultural facilities and the water garden.

Okay. Thank you. Instead of it just being a broad label of facilities, I think if we can somehow reign that in in the future, that would be helpful for us. Okay.

Will do. Will do. Thank you for the comment. The next slide is the Streets Fund. Here we do have a total sales tax revenue budget of $1.8 million. Sales tax actuals are zero at this point as of April. We expect those to come in in June. total $4,000 was budgeted for administration services this leaves an estimated budget I'm sorry an estimated fund balance about 1.8 million on a budget basis and we expect to hit that by year-end The last one is the Seawall Citywide Flood Control Fund with $3.7 million budgeted for this fund for revenues. As of April, no revenues have been collected. Total expenditures were budgeted at $52,700. Actuals amount to about $30,825 as of April. This leaves about $21,000 of funds pending to be spent. We expect the year to end with a fund balance on a budget basis of about $3.7 million. Last slide is sales tax revenue update. This is just a comparison of your sales tax to budget and then year over year. If we go to your bottom, the very last bottom row there, total budget for 2026 for sales tax as of April amounts to $5.3 million. Actuals are at $5.5 million. So actuals are ahead of budget by $187,000. When compared to last year, we have the same actual versus our current actual. We have the same number. We're ahead about $187,000. And that concludes my presentation.

Starting in February, that's when we're starting to see these really big differences or increases over the budgeted amount in sales tax revenue. Do we know what's driving that?

So February would reflect Christmas sales. So right now my best guess is Christmas sales. If we look at our top, probably top 10 sales tax player, most of those are the retail. So your Amazon, Walmart, HEB. So it's mostly retail that's kind of driving that up from what I can see.

Okay, so retail starting in February, there's a two-month lag in reporting?

I'm sorry? There's a two-month lag in reporting? Not yet, not yet. So February is January. Let me go back and double-check what's driving it. I don't have that answer.

Yeah, it's a pretty consistent, it's a pretty large difference, and it's growing. And so I'm just wondering if there's something specific driving that, and I'm wondering if it's... Fuel.

Yeah, so we don't collect sales tax on fuel. There's a fuel tax that goes to the state, but just the cost of groceries could drive it, just inflation. Indirectly, the cost of fuel driving up prices of commodities could be an issue.

Well, thank you. Yeah, if you'll get us an answer on that, but just to see that for three months in a row, it'd be great to understand that. Thank you. Any other questions before? So sorry. All right. okay um miss huerta do you have that duke and claudia have arrived yes ma'am we noted that for the record excellent thank you um okay next we have executive session items the board will go into executive session on items three and four per texas government code section five five one zero seven one five five one zero seven two and five five one zero eight seven we will return

in case i don't Thank you.

You're always cold. Great, okay. All right, it is 3.49. I'm gonna call us back to order. Yes, we're reconvening. Reconvening, thank you very much. All right, we have item number four, executive session. Is there a motion on item number four?

I'd like to make a motion. I'd like to make a motion authorizing staff to begin deliberations and negotiations to purchase the property at 1525 North Shoreline Boulevard, Corpus Christi, Texas.

Is there a second? Second. All those in favor say aye. Aye. Any opposed say no. The motion carries. All right, next up we have item number five, motion to approve the Corpus Christi B Corporation's fiscal year 2026-2027 operating budget for economic development, housing, streets, facility seawall, and citywide flood control. the staff presentation. Thank you.

good afternoon Amy Rodriguez director of management and budget this is the second time you'll be seeing our proposed budget for FY 27 there have been a few changes so as I go through the slides I'll point those out for you. So to begin, I want to just describe what you're looking at from left to right. In the column on the left, the FY25 actuals are our final audited actuals for the fiscal year 2025. That gives us our starting point for the current fiscal year. And so the next column is our FY26 adopted budget, which is the current fiscal year. The following column is our FY26 amended budget. And then the FY26 estimated actuals. So about halfway through the fiscal year, we always look at what's actually occurring and we estimate where we believe will end the year. You can see that the ending fund balance for FY25 is the beginning fund balance for the FY26 estimated actuals. Then we have our estimated revenues and expenses for an estimated ending fund balance of 4.1 million. That 4.1 begins our FY27 proposed budget so that we know approximately what we'll be starting out the year with. Then we have our revenue and expenditure proposed budget and the anticipated ending fund balance for FY27. This is for the Type B Economic Development Fund. And then I'll go into further detail for revenues and expenses on the following slides. So for just about all of our type B funds, we did update the sales tax proposed budget to align with our forecast for sales tax in the general fund. We are anticipating about a 1% growth in sales tax, and we feel like that is a conservative budget. And so we updated the sales tax budget across the board to reflect that 1% increase. And then we also changed on a few of the funds that interest in investment budgets. So for FY27 in the economic development fund, we have a proposed budget of 4.8 million in revenues. On the economic development expenses, we have proposed expenses of 3.8 million. There was a change of $968,400, and that is for a project that you recently approved for this South Bay Park erosion project. And then we had an update to our transfer to general fund. That is another number that will be updated throughout that is provided by a third party. And so we were able to update that based on the information we'd received. For the major business incentives, the proposed budget of $900,000 includes South Texas military housing at $500,000 and Homewood Suites at $400,000. I believe this was a correction from the previous presentation. The name of the projects were updated. For the small business projects, we have a proposed budget of $1.2 million. This includes our projects with Texas A&M and Del Mar College, as well as LIV Fund and the SCORE project. We did have one update for the Del Mar College internship of $150,000. That was previously a bit higher, but that $150,000 reflects what they're requesting. The next fund is the housing fund. We anticipate beginning FY27 with $2 million in fund balance, and we have proposed revenues and expenses shown here with an estimated ending fund balance of $1.4 million. On this fund in particular, the sales tax did not change because it is capped at the $500,000. And so our total proposed revenues is unchanged from the last meeting at $563,000. The proposed expenses for housing are $1.1 million. And there was a change here previously. We did not have a budgeted amount in the affordable housing category. That now reflects $1 million. And then we had an update to the transfer to general fund as well. So that $1 million is not assigned to a specific project, but we are including it as an appropriation for potential future projects. The next fund is the Streets Fund. The beginning fund balance for FY27, we expect it to be about $76,000. We do typically transfer out the majority of these funds each year to the street CIP, which is why that beginning fund balance is so low. We anticipate revenues of $4.1 million and expenditures of $4.2 to zero out the fund balance at the end of the year. The sales tax revenue in this fund was adjusted for the 1% growth, and then we have zero proposed for interest, so the total proposed budget for revenues is $4.1 million. For the expenses in the streets fund, we did adjust the transfer to street CIP slightly, very minimal change, and a slight change to the transfer to general fund. for a total proposed budget of $4.2 million. And that transfer to CIP from the streets fund would be for, we're proposing an Alameda street project. Now we begin looking at the new authorization for type B funds. This is the facilities fund. We anticipate beginning FY27 with $5,000 in fund balance. This does reflect the amendment that we did at the previous meeting. The board approved an amendment to FY26, and so that is reflected here. We anticipate $4.6 million in revenue and $4.4 million in expenditures. So the sales tax proposed budget of $4.6 million has been adjusted to reflect the 1% growth. And then we did adjust the interest revenue here to $3,500 for a total of $4.6 million in revenue. The expenditures proposed for FY27 reflect a new line item for facilities maintenance. This would be for projects that might come up throughout the year. That proposed budget is $100,000. We have updated the transfer to general fund and updated the transfer to CIP fund. The projects that had been submitted previously had amounted to 2.5 million. We're now proposing total projects amounting to 4.2 million. These would be the projects that make up that amount. We have the Museum of Science and History HVAC, the Art Museum HVAC, Harbor Playhouse Building and HVAC, Hilliard Center Structural Repair and Life Safety Improvements, Museum of Science and History Improvements for a total of $4.2 million. The next fund is our streets fund under the new Type B authorization. We anticipate beginning the fiscal year 27 with a fund balance of $1.8 million, total revenues of $4.6 million, total expenditures of $6.4 million. This sales tax revenue does reflect the 1% growth we're anticipating for a total of $4.6 million in proposed revenues. For this fund, all of the expenditures were updated for street administration $5,000 transfer to general fund and then a transfer to CIP fund. The projects included in that transfer to CIP fund amounting to $6.4 million include Alameda Street and Sam Rankin Street. The next fund is our seawall and citywide flood control fund. We do anticipate beginning fiscal year 27 with $3.7 million in fund balance. We propose revenues of $9.3 million and total expenditures of just under $12 million for an estimated ending fund balance of $1.1 million. For the revenues in this fund, the sales tax was updated to reflect the 1% growth, and then we added a budget for interest for a total of 9.3 million. For expenses, the transfer to general fund was updated, and we added a transfer to CIP fund of 11.8 million. The projects that make up that $11.8 million are listed here. We have a coastal resiliency analysis and master plan, flood wall upgrades at the science museum, the marina breakwater, and marina bulkheads. This concludes my proposed budget presentation for the Type B funds, and I'll stand by for any questions. Thank you very much.

Does the board have any questions?

Just a quick question on the facilities maintenance piece that was added. What would that be typically used for? Are those venues not required to do the maintenance on their venues?

I'll defer to Jennifer Buxton.

It depends on the facility and our lease agreement or our contract with them, but there are some things we're required to take care of and sometimes some things they aren't. and i know there's one facility now where there is an uneven sidewalk that we need to address things like that i do have one question uh...

When I was reviewing the budget in comparison to this current year's budget, there is a $10,000 line item in professional services for both housing and for streets, but not for economic development. And given... some of the complexity with these projects that we have coming before us i think it might be wise for us to go ahead and budget if we needed to reach out to an expert on some of these items so i'd like to amend the budget to include that same ten thousand dollars to also extend over into economic development should the board feel that it needs it okay great i'll make a motion for such if you're comfortable okay I would just keep it the same across all three sectors, so $10,000 for economic development, $10,000 for, I believe it's streets, and then there was $10,000 in housing. Thank you.

But in the case that it might run higher, then you can change it later?

Yeah, we could do an amendment should we find something, but at least at this point, we would have access to engage with someone if we needed an expert.

I'll second that motion.

Okay.

All those, so Ms. Summers made the motion, and then did you second, Mr. Volker?

Sorry, I made the motion for 10,000 for the economic development professional service.

Okay, and then who seconded? Mr. Jimenez, thank you.

Thank you.

All those in favor, say aye. Aye. Any opposed, say no. The motion carries. Approve the budget as amended. And so now we need to approve the budget as amended. Thank you. Yes, ma'am. All right, so is there a motion to approve the budget as amended?

Motion to approve. I'll second.

All those in favor say aye. Aye. Any opposed say no. Thank you. Thank you. All right. Moving on to executive director comments. Mr. Dice, do you have any comments?

None at this time.

Thank you.

There being no further business, this meeting is now adjourned.