From
Gary Yakesch
Title
Ordinance amending the FY 2019/2020 Epic Fund Operating Budget; Ratifying the emergency appropriation of $800,000 to fund minimum operating reserves for Epic Waters and reduce operating revenues due to COVID operational shut down
Presenter
Duane Strawn, Director of Parks, Arts and
Recommended Action
Approve
Analysis
Epic Waters operations closed on March 16, 2020 due to COVID pandemic. Accordingly, operating revenues projected during the peak weeks of spring break did not materialize. Additionally, early summer projections and expected social distancing measures will further hamper the ability of Epic Waters to generate substantial revenues to replace minimum operating reserves. It is the peak period operations, particularly those during state spring break periods as well as summer months, that sustain cash flow for Epic Waters during the fiscal year.
The executed management contract requires the city to fund operations where minimum reserves are depleted. (Ref Paragraph 4.2.2.3 and Paragraph 4.3 of the executed Management Agreement between The City of Grand Prairie and American Resort Management)
American Resort Management is monitoring all activities and expenditures closely to mitigate further losses because of the pandemic and subsequent/expected social distancing measures.
$200,000 was issued on April 24, 2020 to fund immediate cash needs for accounts payable and payroll liabilities; future disbursements will be based on projected cash flows each month.
This item was presented to the Finance and Government Committee on May 5, 2020 for review and approval.
Financial Consideration
Funding to maintain a minimum operating reserves for Epic Waters and reduce operating revenues due to COVID operational shut down, in the amount of $800,000, is available by approving an ordinance transferring and appropriating from the unobligated fund balance in the Epic Fund (3209); Reserves held for Epic Waters totaled $2,384,268...
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