Page 22 - NRH FY20 Approved Budget

specials are implemented as a way to counteract bad weather days. If the forecast calls for rain,
we push specials leading up to rainy days. We also focus on consignment tickets, exclusive
rentals, birthday parties, and food sales to increase overall revenue in the park.

Adopted revenue for 2019/2020 is $4,506,323 with a projected attendance of 210,000 visitors.
This is a reduction of $62,186 from the current year adopted budget. We have been conservative
on revenue projections because expenditures are developed based on anticipated revenue, as
72% of revenue comes from admissions and 19% from food and beverage.

Adopted water park expenditures for FY 2019/2020 are $4,506,323 a reduction of $62,186
from the current year adopted budget. Grounds, aquatics, debt and maintenance make up the
majority of the cost. The biggest expense reductions result from the removal of indirect costs to
the General Fund, and a decrease in utility costs.

NRH2O is now 25 years old, and with age comes maintenance challenges. Repairs and general
updates must continue to be made to the park to stay competitive in the DFW market and
maintain our rating as one of the top 10 water parks in Texas. Rebuilding reserves is critical in
order to continue to reinvest in the park. Being the only uphill water roller coaster in Texas, the
Green Extreme is one of the rides that differentiates NRH2O from other waterparks. It is a big
draw for visitors to the park. Projecting out NRH2O reserves, we plan to be able to replace the
Green Extreme by 2024.

Drainage Utility Fund

In 1991 the City established a drainage utility fee to fund drainage improvements throughout the
community. The drainage fee has not been changed since it was established. Current rates are
not meeting the drainage improvement needs, and additional drainage improvement projects
are necessary to prevent property loss. Last year staff proposed an increase in the drainage
utility fee from $3.00 to $5.50 in an effort to fund additional drainage projects. The average
drainage utility fee among area cities is $6.68. The City Council agreed that an increase in the
fee was necessary. Staff anticipated implementing the new fee during the current fiscal year, but
preparing the fees in accordance with the current fee schedule and gathering the data required
by state law in order to prepare the ordinance took longer than anticipated. As a result, the fee

increase was implemented 2018/2019. $1,647,000
revenue to the Drainage Utility Fund in FY 2019/2020. Expenditures of

$883,599 from this fund planned in the coming fiscal year. It is anticipated that the
additional resulting revenue over expenditures of $773,401 will provide an opportunity
to fund additional drainage improvement projects in the future.

Conclusion

Our focus continues to be the implementation of the vision, goals and objectives as identified
by the City Council. City staff at all levels have diligently worked to develop a budget that
maintains our course of direction in spite of the challenges that we face. As we look to the
future we will continue to seek additional revenue sources and more efficient ways of meeting
the service demands of our citizens.

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