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ADOPTED | BOOK

Crime and Control District Fund

The FY 2022/2023 adopted revenues and expenditures in the Crime Control and Prevention District
Fund are $6,715,617. This is an increase from the FY 2021/2022 Adopted Budget by $477,340 or
7.7%. Revenue increases are due to sales tax collections being estimated much higher than the
previous year. Expenditures have been increased for the employee market/merit adjustment,
inflationary impact on insurance cost, the addition of one new Mental Health Coordinator position,
and employee training.

Park and Recreation Facilities Development Fund

The FY 2022/2023 adopted revenues and expenditures in the Parks and Recreation Facilities
Development Fund are $10,742,547. This is an increase from the FY 2021/2022 Adopted Budget
of $813,325 or 8.2%. Sales tax is expected to increase by $553,397, along with an increase of
$82,390 for Grand Hall and Tennis Center revenue due to reservations and lesson fees. The
employee market/merit increase of $166,639, transfer to capital projects fund of $454,000 comprise
a majority of additional costs for the year. The fund anticipates a total of $419,112 being contributed
to fund balance to fund future capital needs of the operation.

Golf Fund

During FY2021/22 the contractual agreement for management of the Iron Horse Golf Club expired
and city issued a request for proposals. After twenty years of partnership with one firm, the city hired
Kemper Sports in April 2022 to take over management of operations. Kemper is a nationally
recognized company in the golf industry with over a portfolio that includes both private and municipal
facilities. Their initial assessment of the course, restaurant, staffing and programs included
modifications in the annual budget.

The FY 2022/2023 adopted revenues and expenditures in the Golf Course Fund are $3,345,060.
This is an increase of $501,488 or 17.6% from the FY 2021/2022 Adopted Budget. An anticipated
increase in green fees of $618,800 is attributed to minimizing discount windows to optimize prime
rate utilization and adding dynamic pricing models to adjust pricing based on demand. Driving range
revenues are expected to increase by $75,000 resulting from the elimination of the previous
company’s range program. Kemper will institute a range program that will improve revenue while
still preserving the condition of the driving range surface. A decrease of $70,718 is expected in Food
& Beverage due to an assessment of the overall decrease in golf and catering events at the course
over the past few years. In FY2022/23 there will be a renewed focus on strategic growth efforts in
this area to improve conditions by FY2023/24.

Investments will be added for course maintenance to meet the expectations of existing and potential
golfers. A total of $421,744 is added to the fiscal year budget to fund enhancements in course
agronomic practices and for the cost of leasing maintenance equipment. Kemper’s management
plan includes the addition of an accountant position which will greatly improve financial reporting
and oversite. The cost of that addition is included in the general & administrative cost for the year.

23 NRH | TEXAS