CC MEETING: November 18, 2025
DATE: November 10, 2025
TO: Erin Rinehart, City Manager
FROM: Melissa Evertt, Finance Director
Diana Vaughn, Chief Financial Officer
Chrystal Davis, Assistant City Manager
Title
Consider An Ordinance Amending The Operating And Capital Budgets For Fiscal Year October 1, 2025 Through September 30, 2026.
Body
BACKGROUND:
The City of Carrollton approved its annual Operating and Capital Budgets on September 9, 2025. The budget consists of $325,958,067 operating funds and $133,380,437 capital funds; each adopted independently of each other and requiring Council approval to make changes to the planned expenditures.
To maintain the City’s commitment to providing high-quality recreational services and efficient facility operations, a professional management company will be engaged to oversee the day-to-day management, programming, marketing, and maintenance of the Oak Creek Tennis Center, pro-shop, and all associated satellite facilities (collectively referred to as the “Facility”).
Under the Qualified Management Agreement, the City will grant the management company the rights to operate and promote the Facility as an independent contractor. The management company will be responsible for staffing, customer service, programming, financial reporting, and ensuring the continued upkeep and enhancement of the Facility in alignment with City standards. In accordance with the City’s established fee structure, all revenues generated from Facility operations will be collected and retained by the City. The City will compensate the management company with a payment of nine and one-half percent (9.5%) of the monthly gross revenues as its management fee.
Additionally, an adjustment to the Utility Operating Fund and Capital Fund are being requested to provide for additional use of resources in capital projects. Funding is provided by the excess fund balance in the Utility Operating Fund.
As a result of these changes, an adjustment to the adopted Fiscal Year 2025-2026 Operating and Capital Budget are necessary to allocate funds to support the Oak Creek Tennis Center management agreement and associated expenditures and capital projects.
FINANCIAL IMPLICATIONS:
This budget amendment will make the following amendments:
1. In the General Fund, increase the sources of revenue by $1,050,000 to reflect the anticipated revenues that will now be collected and retained by the City.
2. In the General Fund, increase the uses of funds by $1,048,650 to provide for the management company’s fee and associated operating expenses.
3. In the Utility Operating Fund, decrease the fund balance by increasing the transfers out by a one-time transfer of $2,000,000 to the Utility Capital Fund.
4. In the Utility Capital Fund, increase the sources of revenue by $2,000,000 through a non-recurring transfer from the Utility Operating Fund.
5. In the Utility Capital Fund, increase the uses of funds by $2,000,000
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends adopting the attached Ordinance amending the City’s Approved Annual Operating and Capital Budget.