From
Kathleen C. Mercer
Title
Ordinance amending the FY 2015/2016 General Fund, Capital and Lending Reserve Fund, Park Venue Fund, EPIC Sales Tax Fund, and the Capital Improvement Projects Budget for additional funding for the EPIC in the total amount of $13,316,962
Presenter
Tom Hart, City Manager
Recommended Action
Approve
Analysis
The City consulted with numerous stakeholders to share ideas and dreams for the City's EPIC mega project. EPIC has developed into a "Wow" design that will "make a splash: for the City and results in the need for additional funding request for contingency item and a wave pool, a revenue generating feature.
In pursuit of the state's procurement regulations, the City is required to possess funds available for the entire cost of the project to proceed with our EPIC project. Therefore, we request the City Council to approve additional funding mechanisms to achieve the community's EPIC dream.
The request for additional funding is fiscally sound and retains each funds' integrity, as well as, delivering all features involved with EPIC such as PlayGrand. The additional funding is not an operational (recurring) cost for the EPIC but only for construction cost.
The FY 2014/2015 General Fund year end balance has a surplus of $2,000,000. This $2,000,000 does not have any future intended purposes and is an unexpected surplus. Therefore, it is available to be allocated towards the Epic in the current FY 2015/2016 General Fund budget.
The FY 2015/2016 Capital and Lending Reserve Fund currently has an ending resource balance of $7,377,061. The amount to be loaned to the EPIC project is $2,272,319. The fund will be repaid by using 50% of the net proceeds generated by the EPIC water operations beginning in fiscal year 2018, along with any surplus sales tax that is received. It is also understood that the City Manager may request future loans from the Capital and Lending Reserve Fund which will require City Council approval.
The FY 2015/2016 Park Venue Fund in the amount $4,500,000 will be pledged from a future bond sale and is based on sales tax revenues. The tentative date for the next bond sale is Fall of 2016. A reimbursement resolution will be done by a separate City Council action.
The FY 2015/2016 EPIC Sales Tax Fund is budgeted to collect $5,687,477, with an interest payment of $2,046,588 leaving a balance of $3,640,889. The fund will transfer surplus sales tax of $3,414,279 to the EPIC project.
The FY 2015/2016 Capital Reserve Fund currently has an ending resource balance of $3,688,826. The amount to be loaned to the EPIC project is $1,130,364. The fund will be repaid in FY 2016/2017 from the EPIC Sales Tax Fund, surplus sales tax collected minus the interest payment.
The item was presented and approved by the Finance and Government Committee on February 2, 2016.
Financial Consideration
Funding for the additional EPIC construction cost in the amount of $13,316,962 is available as follows:
1. $2,000,000 by approving an ordinance transferring and appropriating from the unobligated fund balance in the General Fund (1001) to the EPIC Center Capital Projects Fund (320893), WO #01512001-03 (The EPIC Center);
2. $2,272,319 by approving an ordinance transferring and appropriating from the unobligated fund balance in the Capital and Lending Reserve Fund (4026) to the EPIC Center Capital Projects Fund (320893), WO #01512001-03 (The EPIC Center);
3. $4,500,000 by approving an ordinance transferring and appropriating from the unobligated fund balance in the Park Venue Fund (3170) to the EPIC Center Capital Projects Fund (320893), WO #01512001-03 (The EPIC Center).
4. $3,414,279 by approving an ordinance transferring and appropriating from the unobligated fund balance in the EPIC Sales Tax Fund (3209) to the EPIC Center Capital Projects Fund (320893), WO #01512001-03 (The EPIC Center);
5. $1,130,364 by approving an ordinance transferring and appropriating from the unobligated fund balance in the Capital Reserve Fund (4025) to the EPIC Center Capital Projects Fund (320893), WO #01512001-03 (The EPIC Center);
Body
AN ORDINANCE OF THE CITY OF GRAND PRAIRIE, TEXAS, AMENDING THE FY 2015/2016 GENERAL FUND (1001) BY TRANSFERRING AND APPROPRIATING $2,000,000 FROM THE UNOBLIGATED FUND BALANCE, THE CAPITAL AND LENDING RESERVE FUND (4026) BY TRANSFERRING AND APPROPRIATING $2,272,319 FROM THE UNOBLIGATED FUND BALANCE, THE PARK VENUE FUND (3170) BY TRANSFERRING AND APPROPRIATING $4,500,000 FROM THE UNOBLIGATED FUND BALANCE, THE EPIC SALES TAX FUND (3209) BY TRANSFERRING AND APPROPRIATING $3,414,279 FROM THE UNOBLIGATED FUND BALANCE AND THE CAPITAL RESERVE FUND (4025) BY TRANSFERRING AND APPROPRIATING $1,130,364 FROM THE UNOBLIGATED FUND BALANCE TO THE EPIC CENTER CAPITAL PROJECTS FUND (320893), TO WO #01512001-03 (THE EPIC CENTER) FOR A TOTAL OF $13,316,962.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:
SECTION 1. THAT THE FY 2015/2016 General Fund (1001) be amended by transferring and appropriating $2,000,000 from the unobligated fund balance to the EPIC Center Capital Projects Fund (320893), WO #01512001-03 (The EPIC Center);
SECTION 2. THAT THE FY 2015/2016 Capital and Lending Reserve Fund (4026) be amended by transferring and appropriating $2,272,319 from the unobligated fund balance to the EPIC Center Capital Projects Fund (320893), WO #01512001-03 (The EPIC Center);
SECTION 3. THAT THE FY 2015/2016 Park Venue Fund (3170) be amended by transferring and appropriating $4,500,000 from the unobligated fund balance to the EPIC Center Capital Projects Fund (320893), WO #01512001-03 (The EPIC Center);
SECTION 4. THAT THE FY 2015/2016 EPIC Sales Tax Fund (3209) be amended by transferring and appropriating $3,414,279 from the unobligated fund balance to the EPIC Center Capital Projects Fund (320893), WO #01512001-03 (The EPIC Center);
SECTION 5. THAT THE FY 2015/2016 Capital Reserve Fund (4025) be amended by transferring and appropriating $1,130,364 from the unobligated fund balance to the EPIC Center Capital Projects Fund (320893), WO #01512001-03 (The EPIC Center);
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 16TH DAY OF FEBRUARY, 2016.