Deer Park Community Development Corporation - Regular Meeting

Make a motion to approve the quarterly report.

Yes, thank you. Just sorry here. Where'd we go?

Oh, there we go.

That's good.

Okay. Brief update on the existing projects. First one is Glenwood Park. Glenwood Park, we actually have substantial completion scheduled for this Wednesday. That's nearing completion. I think we're just waiting on maybe a little bit of decomposed granite, a couple of benches, but that's pretty much Wednesday with any punches items that we want to address, but that's nearing completion this week actually. Update on the deck and the bathhouse. The bathhouse about finished, finished, substantial completion. Right now, we're looking at the second week in May. We anticipate getting staff in around the twelfth or thirteenth in time to open this summer at the pool.

Regarding the Dow Active Complex, it's moving along really well. A lot of the tile has gone in. The gym floor has gone in. The flooring in upstairs community rooms are all complete. We're still waiting on replaster the pool. I think that still has to be done obviously then filling and balancing the pool. First week in June, we're anticipating delivery of the fitness equipment and all the office furniture. Substantial completion, think, is May 19, and that's still on schedule. And then we'll have punch list and walk throughs from there. We're still anticipating a midsummer opening to the public, barring any setbacks.

Laser grading at the Dow Park, that's finished. There were two fields on the South side of the baseball field just two baseball fields south side of the park. If you remember correctly, we did they weren't really graded properly. It was creating some drainage issues and some safety issues. Those have been regraded and that's finished.

Those fields have been returned back over to the pony. Pickleball courts, you'll probably be getting a flyer here in the next day or two, but we have a groundbreaking we're planning for next Thursday, May 8, 05:00 for the groundbreaking ceremony to start off project for the pickleball court. Six courts with covered shade and lighting. And then the Spencerview Bridge project that construction actually started on that one, say, about two weeks ago. So they've already started construction.

That's Lucas Construction. We anticipate that to run through the fall and then sometime in mid to late fall completion of that project as well. The actual bridge is still being manufactured. That's about a twenty-, twenty four week process, and that's been about three months now. And then the last project, the Dow Park Pipeline. If you remember, there's a pipeline at Dow Park that runs north to south that's not functioning. It's kind of collapsed and it runs underneath the P Street parking lot. We've identified MHS Planning as the architect for that project. We've done a preliminary walk through with them. We're actually meeting with them later this week on a proposal that they're going to submit to the city.

And then from there, we'll go out for bid for construction and then start that process. So everything is moving along. That's just an update on all the current projects. Is there any questions?

Has the pricing structure for the DAC been finalized yet? It's like for members? Yes. Has it been published yet?

Yes. I believe in January when I met with the business plan, I believe they were included then.

I mean, but is it made available to the public at this point?

Yes, believe it went out. Well, yes, we'll send it out again. Okay. But There seems to be a lot of

questions about it. No one seems to have Yeah, it's

been We'll send it out. Yeah, we'll make it public again. Put We plan on putting it out again on Facebook, but Or on social media. Yeah. Yeah. But

And no one ever can come up with like the answer for that.

But yeah, we've made that public. And we'll probably get it out there a little more so people can see it.

Hey, how are you? Good evening. I'll stop my commentary. No, I'm happy to comment to provide a little more information. So back in February, the city and also the corporations and our special districts received notification from the comptroller's office that we had been erroneously overpaid in sales taxes. This is common. Actually really every month we receive adjustments of them you know truing up things and jurisdictions. But when it's material they actually let us know about it. So they told us that we had been overpaid $265,000 in sales taxes. So we have to pay that back.

The comptroller did offer fifty seven month payback arrangement that's interest free that would cause a deduction of our collections in the amount of $4,652 a month. So it's not a huge amount, but it is something that I wanna make you guys aware of. In addition, since this was an unexpected expenditure, we have to do a budget amendment to allocate funds. So what we have to do, it's it's really for recording purposes. We have to recognize the full expenditure, so the full 265,000 this fiscal year and it creates a liability for the corporation.

And then we're actually paying that back every month, coming off the balance sheet, it's coming off a liability, so we have to recognize the full expenditure this fiscal year. So it's for recording purposes.

How long of a time period did that

take 50 amount? Seven months.

No, how long did it take to get overpaid $265.00

I'm sorry. So the time period was January 2017 to September 2021 was the time period. So it's administered by the state. So we don't actually collect on our own behalf. So the state audited, either the taxpayer notified the state saying hey we paid these taxes in error thinking we owed it but we didn't. Or maybe it belonged to Pasadena or someplace and they're correcting it. Are we ever underpaid? Yes, we are. We are. Yes and that's corrected.

Like I said every month we see an in and out like sometimes they're reallocating to someone else, sometimes reallocating to us. It's just the fact that this was a material amount that they let us know and they allowed us to pay it back.

Are we actually gonna use the full fifty seven months or whatever it was to pay it back?

Yes. It's interest free and it's you know it's just it's less of a burden to

take Schedule it all at to pay?

It's yes it's scheduled.

I mean the state provides that to you what your payment is?

Yes. So they take the 265,000 divided by in this case fifty seven months. There there is. Yes. It it happens. It's it's happened to the city more than once. In that case, you know, we hope it's not material. You know, in our case, we've been able to to absorb it and and manage it and being able to it back gradually helps with that. Yeah, I'm hoping we don't see anything that's terrible. It's really unpredictable to be honest with you.

Sounds like they audit it very often. It's like every four or five years.

I think that would be prompted. So I imagine the taxpayer probably noticed it and mentioned something to the state. The state looked into it and had to make that determination that it was owed back. Yes. So we'll just look at this left to right.

So if you see our actuals for fiscal year twenty twenty three, twenty twenty four, total revenue came to be about $4,600,000 4,500,000.0 of that was sales tax revenue. So that was very, very good. I think that year we budgeted $4,000,000 so we exceeded budget by about $05,000,000 So that was a very good year. Last fiscal year twenty four, twenty five we budgeted much more conservatively. We budgeted $3,700,000 in sales tax revenue because we saw inflation coming down and we were concerned that we weren't going to bring in as much as we had the previous year.

So we were very conservative. We were fortunate that we did not see a downturn that consumer spending stayed high and our estimation for fiscal year twenty four, twenty five is $4,450,000 So still very healthy and actually comparable to what we received in twenty twenty three, twenty twenty four. So with that, we felt comfortable to bring it back up to a higher budget estimate. So we're budgeting 4,000,000 revenue for sales tax for the next year. You'll also see the prior year revenue line.

That is just indicative of what we anticipate to use for fund balance. So this next year we're anticipating using about $3,300,000 in fund balance to cover the expenditures for the year. So with that, I'll let Kenny discuss the expenditure side of things.

Okay. So for the expenses requesting for the budget for next year, three of them are projects that I've already discussed that we think the funding some of the funding will be rolled over into next year due to the duration of the project. The pickleball courts, which I mentioned were groundbreaking for next week. We anticipate most of that to come this year. We're estimating roughly $100,000 of that $658,000 for the project.

We're expecting about roughly 100,000 of that we think will actually go into next year just due to the duration. The Spencer View Bridge, we anticipate most of that to be in this year. We're anticipating about 50,000 of that we think will may go into next year. The pipeline rehabilitation at Dow Park, like said, that project is taking a little longer. We've identified the architect, but we still are waiting on the proposal.

And by then, it's securing a contractor and then starting the work. So that we think most of that will we anticipate most of that about 1.1 of the 1.5 for the project, we anticipate to go into next year. So those are three existing projects. Rest are basically new projects that we're wanting to take care of in the next fiscal year. We have the adding accessible sidewalks to the parks that don't have ADA access.

So most of our parks don't. We want to start adding more sidewalks and providing more ADA access to the amenities. We're requesting $100,000 renovate the restroom building at the Adult Sports Complex. We're requesting $750,000 The adult sports cost restroom, it's in a it's deteriorating. It's just the whole thing needs to be just gutted and rebuilt.

Upgrading the Musco lights on Field 5 at the mentioned complex, requesting $150,000 That's the Field 5, it's right behind the Jayback. That's the only field on the complex that has not been upgraded yet. All the others have the upgraded Musco lighting, that one does not. And then the parking lot expansion at the Adult Sport Complex, 1.4 is what we're requesting. So basically behind the ball fields, there's a very nice lighted usable soccer field that when we do have adult sports games, it tends to take up all the parking.

And then user groups that want to use that area can't do it because there's no parking. So we'd like to expand the parking lot to get full use of that complex, that soccer field back there. So we're requesting 1.4 to extend the parking lot further north at the Adult Sports Complex. That's toward the Water Tower?

Yes. Is even gravel at this point or is it just

Just grass. Correct, yes, towards Water Tower. And the last thing I just wanted to mention further up, there was the transfer of DAC funds of $820,000 So that's if you remember the last meeting when I presented the DAC business plan for next year, we anticipated roughly 1,100,000,000.0 I believe, in revenue and about 1,900,000,000.0 in expenses. So that 820,000 just transfers to the DAC to cover the gap to shore up funds. By subsidizing, it allows us to charge a reasonable membership rate to our residents and to our users. Any questions at all?

What month is the budget finalized in? Excuse me? What month is the budget finalized in? I

have the calendar. It is. So your budget, I believe at your next meeting, the July meeting, I believe you the board adopts your budget. Is that July 28? Yes. So the next time you'll see the budget will be when you adopt it. That's July 28. Any changes between now and then will be discussed at that meeting because again this is very preliminary. Some of these things will shift a little bit. We'll have better numbers as we can get deeper into the budget process. But yes, you guys will adopt it, submit it council, and then it's adopted by council on August 5.

Any other questions, colleagues?