Travis County Commssioners Court
September 16, 2003
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Item 14
Number 14, consider and take appropriate action on updated revenue report from Travis County exposition center including funding of utilities. And I just thought we would call the budget stuff and just take all of that stuff at one time.
>> good morning, alease I can't perez, executive manager of [inaudible]. We have sent out information on the utilities at the expo center, and this is a true-up that we would like to have the flexibility to do next year also or in f.y. '04. We are asking the court to approve a reclassification of $154,323 in utility expense from the general fund facilities management to the expo. In other words, we have money in the expo that will be reclassed to facilities management. It will be transferred over. And this is the money that the expo center had above and beyond what was needed for all their expenses this year. This will leave in the expo center in the ending fund balance about $91,360. We usually carry a $50,000 reserve for the deductible on insurance. We also need some operating money, usually at the beginning of the year. Leaving about 91,000 in there kind of gives us a little flexibility to be able to make some purchases and have the money available in case we need it to pay a deductible.
>> so a transfer of the $154,000 will reimburse the general fund, and this would be what total? How much are we trying -- how much general fund money did we use?
>> 168,312.
>> so general fund is only picking up the difference there?
>> yes, sir.
>> about 14,000?
>> that's what the total was, 168,000, 312. And we're giving them back 154,326.
>> okay. Christian, anything [inaudible]?
>> we had been in contact with facilities management, and we have actually incorporated alicia's recommendation in the expenditure estimates for the general fund, the expo center for the fifth revenue estimate which we supplied to the county. County auditor. So the f.y. '03 transaction is in -- that's the way we projected it.
>> this is exactly what you had in mind.
>> that's what we had -- that's how we planned it for '03. I think the question that still remains which we'll get to under markup is exactly how to handle that transfer or whatever in '04.
>> [inaudible] the degree to which the expo center will be subsidized or self-supporting, and if it is to be subsidized the best fashion for that subsidy to occur. This is a '03 issue due to the way in which utilities were hand this year. But it leads to the question of what it is the best way for the fiscal architecture of the expo center to be established. And in order to -- for '04, at least, for the expenditures to be met, a subsidy is going to be required. And as leroy said, how that occurs is up in the air and what options the department may wish to fund a subsidy, there may be other ways to fund a subsidy. This is, in essence, cleaning up '03.
>> you said it's like when we have a choice between whether subsidized or not, it's like, to me, for this year and for perhaps next year, we're going to be subsidizing it, and we're narrowing the gap in terms of they are covering most of their expenditures. Hopefully hr eu this next year will be the critical year that gets us on a path of no further subsidy from the general fund. To me we're past the point is there going to be a subsidy. To me it was how best to set up that. It was always my intention we have $500,000 we set aside for the utilities for next year, that expo was to be included within that big pot of money related to the city of Austin passing on a rate increase to another governmental entity.
>> yes. There is no question that the expo center will need a subsidy. One way to handle a subsidy is to do it as occurring now, which is trup at the end of the year -- true up at the end of the year based on what is needed. The other is to say here is the subsidy, here is the budget remaining within it. Those are two different approaches. One is very flexible, one is not. There isn't a right way to do it. There is only our way.
>> I like flexibility.
>> I do too.
>> because it encourages the department to be creative and find ways to solve their own problems related to this issue.
>> but as to the item before us, this is '03 only.
>> yes, sir.
>> and it's to reimburse the general fund $154,323.
>> yes.
>> and you all are saying there's another budget issue that we need to take up under the --
>> it's the same.
>> it's the same issue.
>> just the beginning of the year.
>> but this item is '03.
>> yes.
>> move approval.
>> I second that.
>> any more discussion? All in favor? That passes by unanimous vote. So when we discuss the '04 issues, we need -- expo is one of them.
>> right.
>> that's one of the outstanding questions from markup, yes. Under item number 8.
>> okay.
>> thank you.
>> thank you.
>> thank you.
Last Modified: Wednesday, September 16, 2003 7:52 AM