1) Call to Order. The meeting of the Budget & Finance Committee was held in the Municipal Courtroom of City Hall, Thursday, at 2:30 p.m. The meeting was called to order by Alderwoman Cris Bohinc. 2) Roll Call. Members present: Alderman Patrick Parnell, Alderwoman Cris Bohinc, City Administrator Bill Malinen, Rod Romine and Pamela Yancey. Members absent: Mayor Raeanne Presley. Also present: Finance Director Jamie Rouch, Police Chief Kent Crutcher, Planning & Development Director Joel Hornickel, Stacy McAlister, Carl Garrett, Keith Francis, Charlie Huston and Kim Varner. 3) Discussion of Branson Convention Center. Marc Mulherin explained that June is tentatively the busiest month of the year, and that customer service scores for the month were 93 for overall customer satisfaction. June 2014 revenue was $773, 090, which exceeded the budgeted $710,971 by $53,119. All groups exceeded their contracted revenue amounts to largely contribute to the excess revenues. Expenses were down $28,931 to budget to finish the month at $475,244. Typically, July is a slower month for the convention center industry, though contracts for 12 groups are currently on the book for the month. Year-to-date budgeted profit and loss was ($559,035), though the actual loss was $106,804 better than budget at ($452,231). Since SMG S management change over on April 1, the second quarter actual profit is $173,793 which is $166,146 better than budget. Marc explained to the committee that on July 3 rd, the Convention Center hosted event parking for the Branson Landing fireworks display. 735 cars utilized the convention center s garage & south parking lot, paying a fee of $5.00 per car, producing over $3,600.00 in revenue. Finance Director Jamie Rouch thanked Marc and his staff for the professionalism and help put forth during Governor Jay Nixon s visit to the facility on July 15 th to attend a Government Finance Officers Association meeting. Marc explained he and his staff are working diligently to provide excellent service and to keep the facility very clean and presentable. In addition, a high-end photo shoot was recently completed to use for upcoming advertisements. Finally, the last few positions left open from the change-over from Hilton management earlier this year are expected to be filled soon. Marc explained that several positions have been consolidated as a cost-saving measure and to also allow other employees more time to focus on generating future business. 1
4) Regular Reports. a) Minutes of June 26, 2014. Rod Romine moved to accept the minutes of June 26, 2014, seconded by Alderman Patrick Parnell. Motion carried. b) Monthly Sales & Tourism Tax Reports. Carl began discussion on Sales Tax receipts in July 2014, which were 27% higher for the month compared to one year ago for May revenue. This increase resulted in receipts up 2.7% on a year-to-date basis, though he explained that most of the large increase was due to slow processing of April receipts. Tourism tax receipts were up 7.8% for the month, and up 1.1% year-to-date. Prior to the meeting, Carl ran a report for July receipts for June tourism activity, and receipts were already up 4%. He expects to end July on a year-todate up 1.9% or potentially higher. Breakdown by Business Classification reveals amusements are up nearly 10% on a year-to-date basis. Compared to last year, theaters are up almost 1%, which he considers a positive as theaters have not been increasing in the recent past. Restaurants were down 1.1%, while hotels/motels were up 1.9%. The Rolling 12 Months report shows the sales tax returns in the appropriate filing month to get a true picture on each month. April receipts were up 2.7%, with the first four months all showing a positive growth in the economy. Carl went on to explain that December was a particularly poor month, with the trend of Christmas shopping going toward online purchases. Carl completed his report with the Unrestricted Sales and Tourism Tax reports which reflect spendable money for budgeted items once amounts due for bond payments have been received. City sales tax receipts increase remaining after bond payments is $150,594 and $2,150 for tourism receipts. c) Financials. i) Monthly Financials June 2014. Jamie explained that FY 2013 ended higher than budgeted, which increased the beginning balance of 2014. Alderwoman Bohinc inquired when the transition of responsibility for the Red Roof Mall would begin since it has been leased to Ballparks of Branson. Jamie explained that we will not see any additional expenses once it changes hands in August and will save the General Fund some of the monies budgeted to the Red Roof Mall Fund for the remainder of 2014. Jamie explained that for 2014, the City had estimated about $127,000 for maintenance on the property. For 2013, the budgeted amount was about $85,000 but had to be increased through a budget amendment as maintenance costs were higher than expected. 2
ii) Cash Reconciliation & Balance Sheet June 2014. This item was not discussed. iii) 2014 Semi-Annual Financial Report. In a brief overview of the 2014 Semi-Annual Financial Report, Jamie expressed concern that the 911 Tax would now be remitted to the City quarterly and is expected to taper off in the future. Leases and rents, as well as building permits are up, however, which is a good economic indicator. 5) Review of Disbursements & Approval of Disbursements $50,000 & over. (June 14, 2014 July 18, 2014). Discussion was held regarding the expenses for attorney fees. Though these expenses had slowed, they are now picking back up. Resolution to the associated lawsuits will hopefully be reached soon. Disbursements were acknowledged as presented. Bill Malinen moved to accept the disbursements, seconded by Alderman Patrick Parnell. Motion carried. 6) Discussion of Police & Fire False Alarm Fines. Police Chief Kent Crutcher discussed his proposal to recoup some of the costs associated with the Police and Fire Departments responding to excessive false alarms. Any charges for responding to alarms are waived only when the reason for the alarm is beyond the owner s control. In 2013, combined responses to false alarms totaled over 1,600. Chief Crutcher suggested that instead of increasing the charge for each false alarm, the charges remain flat at $100 but to lower the amount of false alarms allowed from 5 to 3. For the remainder of 2014, both departments will better track actual time spent responding to false alarms. Chief Crutcher explained that different types of businesses severely affect the amount of time needed to clear a property. Alderman Patrick Parnell moved to accept the Fire and Police Departments proposal to reduce the amount of false alarms allowed from 5 to 3, seconded by Rod Romine. Motion carried. 7) Discussion of Planning & Zoning Special Event Permit Fees. Planning & Development Director Joel Hornickel explained that he has been researching and comparing other cities that host various special events and how they recoup associated costs for their General Funds. He and his department have already begun working with applicants to reach out and find other sources of security other than using the city s Police Department, as well as finding alternatives to using city property such as cones and barricades. Of the cities he reached out to, including Myrtle Beach, SC, San Diego, CA and Wisconsin Dells, WI, he found examples of cities recouping 100% of their costs. He suggested a tiered structure, where 3
the city only seeks to recoup 50% of costs for events such as parades, while more intensive events such as marathons would pay up to 100% of cost. He also recommended to the committee that the city not differentiate between profit and nonprofit entities, and that they all pay the same amount. He clarified that there are some events that cost the city nothing beyond reviewing and granting the application and there have also been events that have cost the city thousands of dollars. While a code change is not necessary to begin recouping the costs associated with these special events, he feels it is necessary to better define what the city views as a special event. He also suggested that a list be made which would specifically define events that are not a special event such as funerals and POW marches. Through more detailed discussions with applicants for special events, he expects to reduce the total number events to about 25 for 2014, compared to a high of nearly 100 in 2010. Concern was expressed that if the City seeks to recoup 100% of costs that some events may move to be hosted elsewhere. It was suggested that in addition to defining what a special event truly is, the city only recover 75% of costs, which matches the same structure that was put into place earlier to recoup other costs for various services provided by other city departments. Concern was also expressed that events such as the Adoration Parade and Veterans Parade which are hosted by non-profit organizations may not be able to raise the necessary funds to continue each of these events. Discussion was held on whether different types of events could have different requirements. Joel explained that one city had a clause in code regarding special Events that if public purpose will be served, reimbursement fees would not be assessed. No motion was made. The committee made recommendation to narrow down the definition of special events before bringing the topic to a Board of Aldermen study session. 8) Discussion of Planning & Zoning Neighborhood Grants. Joel explained that this is the second year for the neighborhood grants, though no grants were awarded in 2013. There are three main goals he hopes to achieve through these grants: build community, attract new and diverse members to the neighborhood organizations and to sustain those already involved in the organizations. Through these goals, Joel expects to strengthen communication and efforts with neighborhoods. Included in the 2014 budget was a grant in the amount of $5,000 for neighborhoods improvements. Currently, there are four neighborhood organizations eligible to apply for the grant which include Hiawatha Heights, Lucia Ridge, Cantwell Hills and Branson North. Cantwell Hills was the only neighborhood organization that did not apply for a grant. Kim Varner gave a brief overview of each organization s application. Lucia Ridge would like to replace the street signs at every intersection in the neighborhood and would also like to include their logo on the signs to create a neighborhood identity and sense of community at a cost of $765. Hiawatha Heights is requesting funds to create a community garden in conjunction with the Salvation Army at a cost of $2400. Branson North has a neighborhood sign that has been kept by volunteers, though recently they ve hired a landscaping company to 4
provide upkeep. Branson North would like to enhance the sign with additional landscaping and lighting. Joel explained they took the established criteria and compared them against the proposals. He feels that the Lucia Ridge meets the criteria the best out of the three by meeting the goals set by the city to establish partnerships with the neighborhood organizations as well as helping with the identification of that neighborhood. He recommended granting the full amount to Lucia Ridge. After looking at the remaining two applications, Joel felt that the requests were very similar and suggested that the remaining balance of $4235.00 be granted between the two remaining organizations in the amount of 78.5% of their requested amounts. The grants will cover many of the items and work needed to make the projects successful including stump and tree removal, hydrants and signage. Branson North currently has funds that could be used to make up the difference in the amount requested and the amount granted. Bill Malinen moved to accept Planning and Development s recommendation, seconded by Rod Romine. Alderman Patrick Parnell abstained as he is treasurer for the Lucia Ridge Neighborhood. 9) Finance Director s Report. Jamie has been investing more funds in BOSC from which we are receiving the treasury rate plus 10 basis points. She plans on bringing investment reports to the committee at the next meeting. Jamie discussed recent legislation which was vetoed by Governor Nixon regarding tax cuts granted to various types of businesses. In conjunction with the City of Springfield, Greene County and several school districts she is working to develop a midpoint between estimates from the Missouri Department of Revenue and the Legislative Oversight Committee to give a better picture of the potential impact the legislation could have if the veto is overridden. Jamie briefly discussed what information was included in the 2014 Semi-Annual Report, including revenues consisting of taxes, franchise fees, licenses and permits, and leases and rents. She highlighted the section showing steps the City has taken in 2014 to sustain the General Fund balance. 10) Adjourn. The meeting adjourned on a motion by Bill Malinen, seconded by Patrick Parnell. Motion carried. 5