HomeMy WebLinkAbout2020-03-24 Regular Meeting Packet AGENDA
Regular City Council Meeting
Tuesday, March 24, 2020 @ 6:30 P M
A nna City Hall, Council Chambers
111 N. P owell P arkway, Anna, Texas 75409
T he City Council of the City of A nna will meet in Regular S ession at 6:30 P M, on March
24, 2020, at the Anna C ity Hall, L ocated at 111 North Powell P arkway (Hwy 5), to
consider the following items.
Welcome to the City Council Meeting. Please sign the Sign-In-Sheet as a record of
attendance. If you wi sh to speak on an open-session agenda i tem, please fill out the
Opinion/Speaker Registration Form and turn it in to the Ci ty Secretary before the
meeting starts.
1.Call to Order, Roll Call and Establishment of Quorum.
2.I nvocation and P ledge of A llegiance.
3.Citizen Comments.
At thi s time, any person may address the City Council regarding an item on this
meeting agenda that is not scheduled for public hearing. Also, at this time any
person may address the Counci l regarding an item that is not on this meeting
agenda. Each person will be allowed up to three (3) minutes to speak. No
discussion or action may be taken at this meeting on items not listed on this
agenda, other than to make statements of specific factual information in
response to a citizen's inquiry or to reci te existing poli cy i n response to the
inquiry.
4.Receive reports from Staff or the City Council about items of community interest.
Items of communi ty i nterest include: expressions of thanks, congratulations, or
condolence; i nformation regarding holiday schedules; an honorary or salutary
recognition of a public official, public employee, or other citizen (but not
including a change in status of a person's public office or publ ic empl oyment); a
reminder about an upcoming event organized or sponsored by the governing
body; information regarding a social, ceremonial, or communi ty event organized
or sponsored by an entity other than the governing body that was attended or is
scheduled to be attended by a member of the governing body or an official or
employee of the municipality; and announcements involving an imminent threat
to the public health and safety of people in the municipality that has arisen after
the posting of the agenda.
a.Staff will provide an update on the Ferguson Parkway project funding.
a
b.Chief I som will provide a brief update on C O V I D-19 activities.
a
5.Consent Items.
These items consist of non-controversial or "housekeeping" items required by
law. Items may be considered individually by any Council member making such
request prior to a motion and vote on the Consent Items.
a.Approve Council Meeting Minutes for March 10, 2020. (City Secretary Carrie
Land)
a
b.Review CDC/EDC Joint Meeting Minutes from the February 6, 2020 Meeting
(Economic Development Director Joey Grisham)
a
c.Approve a Resolution accepting the FY 2019 audit report (Dana Thornhill)
a
d.Approve an Ordinance providing for requirements and verification of
requirements for elective office. (City Secretary Carrie Land)
a
6.Consider/Discuss/Action regarding approval of an ordinance extending the
declaration of disaster and public health emergency. (City Manager Jim Proce)
a
7.Consider/Discuss/Act on an Ordinance postponing the May 2, 2020 General and
Special Election to the November 3, 2020 Uniform Election Date. (City Secretary
Carrie Land)
a
8.CLOSED SESSION (EXCEPTIONS)
Under Tex. Gov't Code Chapter 551, the City Council may enter into closed
session to discuss any items listed or referenced on this agenda under the
following exceptions:
a.Consult with legal counsel regarding pending or contemplated litigation and/or
on matters in which the duty of the attorney to the governmental body under the
Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas
clearly conflicts with Chapter 551 of the Government Code (Tex. Gov’t Code
§551.071). architect contract
a
b.Discuss or deliberate the purchase, exchange, lease, or value of real property
(Tex. Gov’t Code §551.072); city facilities; acquisition of easements
a
c.Discuss or deliberate Economic Development Negotiations: (1) To discuss or
deliberate regarding commercial or financial information that the City has
received from a business prospect that the City seeks to have locate, stay, or
expand in or near the territory of the City of Anna and with which the City is
conducting economic development negotiations; or (2) To deliberate the offer
of a financial or other incentive to a business prospect described by
subdivision (1). (Tex. Gov’t Code §551.087); possible incentive agreements
with property developers; pending negotiations on development agreements.
a
d.Discuss or deliberate personnel matters (Tex. Gov’t Code §551.074); Boards
and Commission Members; Personnel
a
The Council further reserves the right to enter into executive session at any time
throughout any duly noticed meeting under any applicable exception to the Open
Meetings Act.
9.Consider/Discuss/Action on any items listed on any agenda—work session, regular
meeting, or closed session—that is duly posted by the City of Anna for any City
Council meeting occurring on the same date as the meeting noticed in this agenda.
(If there is no need to address any other such agenda item, the Mayor shall adjourn
this meeting).
10.Adjourn. There being no further business before the Council, we will consider this
meeting adjourned at ___________ p.m.
This is to certify that I, Carrie L. Land, City Secretary, posted this agenda at a
place readily accessible to the public at the Anna City Hall and on the City Hall bulletin
board at or before 5:00 p.m. on March 20, 2020
___________________________________
Carrie L. Land, City Secretary
1. The Council may vote and/or act upon each of the items listed in this agenda.
2. The Council reserves the right to retire into executive session concerning any of the items listed on
this agenda, whenever it is considered necessary and legally justified under the Open Meeting Act.
3. Persons with a disability who want to attend this meeting who may need assistance should contact
the City Secretary at 972 924-3325 two working days prior to the meeting so that appropriate
arrangements can be made.
Item No. 4.a.
City Council Agenda
Staff Report
Meeting Date: 3/24/2020
AGENDA ITEM:
Staff will provide an update on the Ferguson Parkway project funding.
SUMMARY:
The Ferguson Parkway project is shown in the City of Anna Thoroughfare Plan and is listed in the
City of Anna Strategic Plan as a major project.
Staff has been working with the North Central Texas Council of Governments and Collin County to
prepare a funding package for final design and construction.
Staff has been receiving information regarding project funding and will present the Council with an
update on project funding and next steps.
STAFF RECOMMENDATION:
None at this time. Staff is seeking feedback and direction from the City Council on how to move
forward regarding project funding.
Item No. 4.b.
City Council Agenda
Staff Report
Meeting Date: 3/24/2020
AG E ND A IT E M :
Chief I som will provide a brief update on C O V I D-19 activities.
S UM M ARY:
S TAF F RE C O M M E ND AT I O N:
Item No. 5.a.
City Council Agenda
Staff Report
Meeting Date: 3/24/2020
AG E ND A IT E M :
A pprove Council Meeting Minutes for March 10, 2020. (City S ecretary Carrie L and)
S UM M ARY:
Strategic Connection
T his items supports the City of Anna Strategic Plan, specifically advancing:
Goal 4: High Performing Professional City
S TAF F RE C O M M E ND AT I O N:
Approval
AT TAC HM E NT S :
Description Upload Date Type
Work Session 3/18/2020 Exhibit
A NNA C I T Y C O UNC I L
M I NUT E S
W O R K S E S S I O N
March 10, 2020
T he City Council of the City of Anna met in Work S ession on the above date at A nna
City Hall, located at 111 North Powell Parkway (Hwy 5), to consider the following items.
1.Call to Order, Roll Call and E stablishment of Quorum
Mayor Pro Tem Miller called the meeting to order at 6:30 P M
Mayor Nate P ike was absent.
2.Citizen Comments. At this time, any person may address the City Council
regarding an item on this meeting agenda that is not scheduled for public
hear ing. Also, at this time any person may address the Council regarding
an item that is not on this meeting agenda. E ach person will be allowed up
to three (3) minutes to speak. No discussion or action may be taken at this
meeting on items not listed on this agenda, other than to make statements
of specific factual information in response to a citizen's inquiry or to recite
existing policy in response to the inquiry.
None
3.C L O S E D S E S S I O N (E X C E P T I O NS )
Under Tex. Gov't Code Chapter 551, the City Counci l may enter into closed
session to discuss any items listed or referenced on this agenda under the
following exceptions:
a.Consult with legal counsel regarding pending or contemplated litigation and/or
on matters in which the duty of the attorney to the governmental body under the
Texas Disciplinary Rules of P rofessional C onduct of the S tate B ar of Texas
clearly conf licts with C hapter 551 of the Government C ode (Tex. Gov’t Code
§551.071). architect contract
a
b.Discuss or deliberate the purchase, exchange, lease, or value of real property
(Tex. Gov’t Code §551.072); city facilities; acquisition of easements
a
c.Discuss or deliberate E conomic Development Negotiations: (1) To discuss or
deliberate regarding commercial or financial information that the City has
received from a business prospect that the City seeks to have locate, stay, or
expand in or near the territory of the City of Anna and with which the C ity is
conducting economic development negotiations; or (2) To deliberate the offer
of a f inancial or other incentive to a business prospect described by
subdivision (1). (Tex. Gov’t C ode §551.087); possible incentive agreements
with property developers; pending negotiations on development agreements.
a
d.Discuss or deliberate personnel matters (Tex. Gov’t Code §551.074); Boards
and Commission Members
a
MO T I O N: Council Member B ryan moved to enter closed session. Council
Member B eazley seconded. Motion carried 5-0
Mayor Pro Tem Miller recessed the meeting at 6:33 P M
Mayor Pro Tem Miller reconvened the meeting at 7:31 P M
The Council further reserves the ri ght to enter into executive session at any time
throughout any duly noticed meeting under any applicable exception to the
Open Meetings Act.
4.Consider/Discuss/Action on any items listed on any agenda—work session, regular
meeting, or closed session—that is duly posted by the C ity of A nna for any City
Council meeting occurring on the same date as the meeting noticed in this agenda.
None
5.A djourn. There being no f urther business bef ore the Council, we will consider this
meeting adjourned at ___________ p.m.
Mayor Pro Tem Miller adjourned the meeting at 7:31 P M.
Approved on the March 24, 2020.
________________________
Mayor Nate Pike
AT T E S T:
__________________________
City Secretary Carrie L . Smith
Item No. 5.b.
City Council Agenda
Staff Report
Meeting Date: 3/24/2020
AG E ND A IT E M :
Review C D C/E D C J oint Meeting Minutes from the F ebruary 6, 2020 Meeting (Economic
Development Director J oey Grisham)
S UM M ARY:
S TAF F RE C O M M E ND AT I O N:
AT TAC HM E NT S :
Description Upload Date Type
F ebruary 6, 2020 C D C/E D C J oint Meeting Minutes 3/17/2020 Staff Report
Officers: Staff:
Anthony Richardson, President Joey Grisham, Economic Development Director
Stan Carver, Vice-President Taylor Lough, Economic Development Manager
Rocio Gonzalez, Secretary
Anna Community Development Corporation and Anna Economic Development
Corporation Meeting Minutes
Thursday, February 6, 2020 at 6:00 pm
Inc-Cube Building, Conference Room
312 N. Powell Parkway, Anna, Texas 75409
CDC and EDC Board Members Present: Anthony Richardson, Bruce Norwood, Stan
Carver, Rocio Gonzalez, and Doris Pierce. Michelle Hawkins was absent. Others present:
Joey Grisham (Economic Development Director), Clark McCoy (CDC/EDC Legal Counsel),
and Lee Miller (City Council Member).
1. Call to Order. Roll Call and Establishment of Quorum.
The meeting was called to order by Anthony Richardson, Board President, at 6:03 p.m.
2. Invocation and Pledge.
Invocation and pledge of allegiance led by Anthony Richardson.
3. Citizen Comments.
There were no citizen comments.
4. Consider/Discuss/Act on approving minutes from the January 15, 2020 CDC and EDC
Meeting.
Bruce Norwood made a motion on behalf of the Community Development Corporation and
Economic Development Corporation to approve the minutes from the January 15, 2020 CDC
and EDC Meeting. Rocio Gonzalez seconded the motion. All were in favor. Motion passed.
5. Hear update from Andrea Henry.
Andrea Henry with Simply Floor It provided updates to the Board. She stated that as of Jan.
1 she is no longer in the 6,000 square foot building behind Flying J as her rent was
increasing. Andrea is in smaller facility and focusing strictly on commercial projects (mainly
tenant finish out). She has been attending events on responding to public RFPs and bidding
websites, and remains in contact with the Collin County Small Business Development
Center. Lastly, she stated that she has generated $8,144.39 in sales collection to date for
the city and is on pace to meet the performance obligations.
6. Director’s Report
Officers: Staff:
Anthony Richardson, President Joey Grisham, Economic Development Director
Stan Carver, Vice-President Taylor Lough, Economic Development Manager
Rocio Gonzalez, Secretary
A. Report on current financial status—Discussion Only
Joey updated the Board on financials from December.
B. Bisnow 121 Corridor Event on March 26, 2020
Joey Grisham stated that the EDC is a booth sponsor at this event to be held at the
Sheraton McKinney, and invited Board members. He expects over 300 to be in
attendance.
C. Greater Anna Chamber Banquet on Feb. 22, 2020
Joey Grisham reminded the Board about the Chamber Banquet to be held on Saturday,
Feb. 22nd at the Anna High School at 6 pm.
D. ICSC ReCON Conference
Joey Grisham said that he is finalizing travel plans for those who will be attending the
event in May.
E. Inc-Cube Construction Update
Joey Grisham said that the project was nearing completion.
7. Conduct an Economic Development Strategic Plan Workshop
Jason Claunch with Catalyst Commercial summarized the planning process and presented
a PowerPoint slide deck that outlined the vision statements, mission statements, core
values, goals, objectives, tactics, and metrics. He stated that he would send a draft report
to Joey Grisham in the next few weeks for review and that it would come back before the
Board for approval in March. The Board and staff thanked Jason for his hard work on
facilitating the plan and looked forward to implementation.
8. CLOSED SESSION (exceptions):
A. Deliberate regarding the purchase, exchange, lease or value of real property.
(Tex. Gov’t Code §551.072) possible property acquisition; possible land
sale/purchase;
B. Consult with legal counsel on matters in which the duty of the attorney to the
governmental body under the Texas Disciplinary Rules of Professional Conduct
of the State Bar of Texas clearly conflicts with Chapter 551 of the Government
Code (Tex. Gov’t Code §551.071); Discuss contract concerning Revolving Loan
Fund; promotional contract.
C. Discuss or deliberate Economic Development Negotiations:
(1) To discuss or deliberate regarding commercial or financial information that the
Board of Directors has received from a business prospect that the Board of
Directors seeks to have locate, stay, or expand in or near the territory of the City
of Anna and with which the Board is conducting economic development
negotiations; or,
(2) To deliberate the offer of a financial or other incentive to a business prospect
described by subdivision (1). (Tex. Gov’t Code §551.087) Anna Business Park
Property; potential retail and medical projects.
Stan Carver made a motion for the Community Development Corporation at 7:40 pm to
enter closed session. Bruce Norwood seconded the motion. All were in favor. Motion
passed.
9. Reconvene into open session and take any action on closed session items.
Item No. 5.c.
City Council Agenda
Staff Report
Meeting Date: 3/24/2020
AG E ND A IT E M :
A pprove a Resolution accepting the F Y 2019 audit report (Dana Thornhill)
S UM M ARY:
T he C ity currently is in the f irst year of a two to f ive year contract with the accounting firm Weaver
and Tidwell P L L C to prepare the audit and Comprehensive Annual F inancial Report (C A F R).
Due to the recent C O V I D-19 pandemic and limiting the number in attendance at the Council
meeting, a representative from Weaver and Tidwell will not be in attendance to present the F Y
2019 audit. However, at C ouncil's discretion, Weaver will provide a presentation on the audit and
C A F R at a later date. A copy of Weaver's presentation will be provided to C ouncil at the
meeting. I n addition, Weaver has draf ted a letter to address Council which is attached as Exhibit
2. A Resolution to take action to accept the audit report will be presented to Council.
S TAF F RE C O M M E ND AT I O N:
Staff recommends approval of a Resolution accepting the F Y 2019 audit report.
AT TAC HM E NT S :
Description Upload Date Type
Resolution 3/18/2020 Staff Report
Exhibit 1 Draft Comprehensive Annual Financial Report 3/20/2020 Staff Report
Exhibit 2 L etter to Council from Weaver & Tidwell 3/20/2020 Staff Report
CITY OF ANNA, TEXAS
RESOLUTION NO. _____________
A RESOLUTION ACCEPTING THE FISCAL YEAR 2019 FINANCIAL AUDIT OF THE
CITY OF ANNA.
WHEREAS, the City of Anna, Texas (“the City”) is committed to principles and
practices of open and fair government that honor the public trust; and
WHEREAS, Article 7 Section 7.18 of the City’s Home-Rule Charter (“the Charter”)
requires an annual independent audit of all accounts of the City by a certified public
accountant.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ANNA, TEXAS, THAT:
Section 1. Recitals Incorporated.
The above-referenced recitals are incorporated herein as if set forth in full for all
purposes.
Section 2. Audit Accepted
The City Council has hereby accepted the FY 2019 audit attached hereto as Exhibit 1.
PASSED AND APPROVED by the City Council of the City of Anna, Texas, on this the
24th day of March 2020.
ATTEST:
_______________________________
Carrie L. Land, City Secretary
APPROVED:
________________________________
Nate Pike, Mayor
The City of Anna
111 N. Powell Parkway, Anna, TX 75409 972-924-3325
www.annatexas.gov
Comprehensive Annual Financial Report
For Fiscal Year Ended
September 30, 2019
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2019
Prepared by
Dana Thornhill
Finance Director
Sheila Alexander
Accounting Manager
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2019
Table of Contents
Page
Introductory Section
Letter of Transmittal i
GFOA Certificate of Achievement vi
Organizational Chart vii
List of Elected Officials and Management viii
Financial Section
Independent Auditor’s Report 1
Management's Discussion and Analysis 5
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position 17
Statement of Activities 18
Fund Financial Statements:
Balance Sheet - Governmental Funds 20
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position 21
Statement of Revenues, Expenditures, and Changes in Fund Balances 22
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 23
Proprietary Fund Financial Statements
Statement of Net Position - Proprietary Fund 24
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Fund 26
Statement of Cash Flows - Proprietary Fund 27
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position - Agency Fund 29
Notes to the Financial Statements 31
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget (GAAP Basis) and Actual - General Fund 62
Schedule of Changes in Net Pension Liability and Related Ratios -
Texas Municipal Retirement System (TMRS)63
Schedule of Employer Contributions to Pension Plan - TMRS 64
Schedule of Changes in Total OPEB Liability and Related Ratios – TMRS 65
Schedule of OPEB Contributions – TMRS 66
Combining and Individual Fund Financial Statements and Schedules
Combining Balance Sheet - Nonmajor Governmental Funds 70
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Nonmajor Governmental Funds 72
Balance Sheet - Community Development Corporation 74
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position - Community Development Corporation 75
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2019
Table of Contents – Continued
Page
Combining and Individual Fund Financial Statements and Schedules - Continued
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Community Development Corporation 76
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of the Governmental Funds to the Statement of Activities – Comm. Development Corporation 77
Balance Sheet – Economic Development Corporation 78
Reconciliation of the Governmental Fund Balance Sheet to
the Statement of Net Position - Economic Development Corporation 79
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Economic Development Corporation 80
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of
the Governmental Fund to the Statement of Activities – Economic Development Corporation 81
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
Community Development Corporation 82
Economic Development Corporation 83
Debt Service Fund 84
Statement of Changes in Assets and Liabilities - PID Agency Fund 87
Statistical Section (Unaudited)
Financial Trends
Net Position by Component 92
Changes in Net Position 93
Fund Balances of Governmental Funds 95
Changes in Fund Balances of Governmental Funds 96
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property 97
Direct and Overlapping Property Tax Rates 98
Principal Property Taxpayers 99
Property Tax Levies and Collections 100
Debt Capacity
Ratios of Outstanding Debt by Type 101
Ratios of General Bonded Debt Outstanding 102
Direct and Overlapping Governmental Activities Debt 103
Pledged-Revenue Coverage 104
Demographic and Economic Information
Demographic and Economic Statistics 105
Principal Employers 106
Operating Information
Full-Time Equivalent City Government Employees by Function/Program 107
Operating Indicators by Function/Program 108
Capital Asset Statistics by Function/Program 109
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
Introductory Section
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
i
March 18, 2020
To the Honorable Mayor and City Council, City Manager,
Neighbors of Anna:
The Comprehensive Annual Financial Report (CAFR) of the City of Anna, Texas, for the fiscal
year ended September 30, 2019 including the independent auditor’s report, is hereby submitted in
accordance with the provisions of Section 10.3 of the City Charter. Also, state law requires that all
general-purpose local governments publish within six months of the close of each fiscal year a
complete set of financial statements presented in conformity with the generally accepted
accounting principles (GAAP) and audited in accordance with generally accepted auditing
standards by an independent firm of licensed public accountants. This report is published to
fulfill those requirements for the fiscal year ended September 30, 2019.
This report is published to provide the Mayor and City Council, city staff, our neighbors,
representatives of financial institutions, our bondholders and other interested parties with
detailed information concerning the financial condition and activities of the City. Responsibility
for the accuracy of the data and the completeness and fairness of the presentation, including all
disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is
accurate in all material respects and is reported in a manner designed to present fairly the
financial position and results of operations of the various funds of the City. Because the cost of
internal controls should not outweigh their benefits, the City of Anna’s comprehensive framework
of internal controls has been designed to provide reasonable, rather than absolute assurance, that
the financial statements will be free from material misstatement.
The City of Anna’s financial statements have been audited by Weaver and Tidwell, L.L.P., a firm
of licensed certified public accountants. The goal of the independent audit was to provide
reasonable assurance that the financial statements of the City for the fiscal year ended September
30, 2019, are free of material misstatement. The independent audit involved examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements; assessing the
accounting principles used and significant estimates made by management; and evaluating the
overall financial statement presentation. The independent auditor’s report is presented as the first
component of the financial section of this report.
Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s
report and provides a narrative introduction, overview, and analysis to accompany the basic
financial statements. This letter of transmittal is designed to complement MD&A and should be
read in conjunction with it.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
ii
Profile of the City
The City of Anna, incorporated in 1913, is located in north central Collin County on U.S. 75, State
Highway 5, and State Highway 121, about 40 miles north of Dallas, and is one of the fastest
growing cities in the Dallas/Fort Worth Metroplex. The City currently occupies a land area of
approximately 15.96 square miles and services approximately 15,010 residents. The City of Anna
is empowered to levy a property tax on both real and personal properties located within its
boundaries. It also is empowered by state statue to extend its corporate limits by annexation,
which occurs periodically when deemed appropriate by the governing body.
The City of Anna operates under a home rule charter adopted in 2005, with a Council-Manager
form of government. Policy-making and legislative authority are vested in the City Council
consisting of the Mayor and six Council members. The City Council is responsible for, among
other things, passing ordinances, resolutions, and regulations governing the City as well as
adopting the budget which serves as the foundation for financial planning and control. The City
Council appoints the City Manager, who has full responsibility for carrying out the policies and
ordinances of the City Council, for overseeing the day-to-day operations of the government and
appointing the heads of the various departments. The City Council also appoints the City
Attorney, City Secretary, and Municipal Judge. The Council is elected on a non-partisan basis.
Council members serve three-year staggered terms.
The City of Anna provides a full range of services, including police and fire protection; municipal
court; parks and recreation; water and sewer services; solid waste collection/disposal; and the
construction and maintenance of streets and other infrastructure. In addition, the City of Anna is
also financially accountable for a legally separate economic development corporation and
community development corporation, which are reported separately with the City of Anna’s
financial statements. Additional information on these legally separate entities can be found in the
Notes to the Financial Statements. The City currently has 102.5 budgeted full-time equivalent
positions.
The annual budget serves as the foundation for the City of Anna’s financial planning and control.
All departments of the City of Anna are required to submit a budget that would maintain current
services and new requests for appropriations separately to the City Manager. The City Manager
and Finance Director then use these requests as the starting point for developing a proposed
budget. The City Manager and Finance Director then presents a proposed budget to Council for
review no later than August 15th. The Council is required to hold public hearings on the
proposed budget and to adopt the final budget no later than September 20th.
The appropriated budget is prepared by fund and department (e.g., police). The City Manager
may authorize transfers of appropriations within a department and between departments within
a fund and within major line item categories. Increases or decreases of appropriations to a fund;
however, require special approval of the City Council in the form of an Ordinance formally
amending the adopted budget.
Budget-to-actual comparisons are provided in this report for each individual governmental fund
for which an appropriated annual budget has been adopted. For the General Fund, this
comparison is presented as part of the basic financial statement for the governmental funds. For
other governmental funds with appropriated annual budgets, this comparison is presented in the
governmental fund subsection of the report.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
iii
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the City of
Anna operates.
Local Economy
The City of Anna’s economic outlook continues to improve due to the overall improvement in the
economy and continued residential and commercial growth. This is evidenced by local economic
indicators such as a significant increase in tax appraisal values, the increase in residential building
permits, and continued sales tax growth. Residential construction activity remains strong in the
City of Anna. In FY 2019, the City received 579 single family building permit applications. In
addition, Starbucks, Whataburger, Chick-fil-A, Salsa Tex Mex, Sunrise Café, a surgery center, and
a free-standing emergency room will be opening in the FY 2020.
The Anna Economic Development Corporation (EDC) works in cooperation with the Community
Development Corporation to coordinate efforts that expand the city's business tax base with a
focus on creating primary jobs within the City of Anna. The corporations have provided
incentives that resulted in much of the retail development that has occurred in Anna since 2008.
The EDC was instrumental in recruiting Brookshires Grocery Company, CVS pharmacy,
McDonalds, and Walmart. The EDC owns and operates Inc-Cube, a small business incubator
located in our downtown. The corporations cooperatively purchased an 85-acre tract of land at
the northeast corner of State Highway 5 and the Collin County Outer Loop with the intent of
developing a business park.
Anticipated growth is expected to continue for the north Collin County region. This has improved
the overall connectivity and mobility to and within Anna, but also will bring continued growth
and new development.
Long –Term Financial Planning
The City’s fund balance/operating position concept continues to be an important factor in policy
decisions. The City’s Financial Policy states that the City’s target unassigned fund balance is an
amount equal or greater than 25% of annual general fund operating expenditures. The City’s
ending unassigned fund balance for fiscal year 2019 reflected a fund balance of 67.7% of total
expenditures, well above the stated goal. These resources allow the City to avoid disruptions in
services during economic downturns and to ensure that there will be adequate liquid resources to
serve as a financial cushion against the potential shock of unanticipated events.
Major Initiatives
At the end of the 2018-19 fiscal year, the City of Anna had a number of major projects in progress.
The City Council and City staff continue to work to ensure completion of ongoing projects that
will provide infrastructure improvements to the City of Anna. During 2018-2019, the City met
with governmental partners including Collin County, TxDOT and the North Central Texas
Council of Governments (NCTCOG) to review the City’s transportation priorities and to discuss
opportunities to partner on future projects. The City also continues to use developer
incentives/agreements to improve other critical roadways within the City.
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The City completed the process of selecting a Construction Manager at Risk (CMR) and moved
forward with determining the maximum guaranteed price to construct a new municipal complex.
These projects are funded from Certificate of Obligation bonds the City issued in the FY 2018.
These City facilities are needed in order to continue to expand, provide quality services to the
neighbors, and provide a more central location for staff to be located. The new municipal complex
will include a City Hall with a Police Department and a stand-alone fire station.
In addition, the Public Works Department completed the Foster Crossing Waterline project in
August of 2019, extending a 12-inch water main from the east side of State Highway 5 to Pecan
Grove Phase 1. The City also began the preliminary engineering for Ferguson Parkway, has
progressed the engineering design of Rosamond Parkway and engineering design for the
Hurricane Creek Trunk Sewer. All of these key projects will improve and expand infrastructure
to serve the growing needs of the community.
The Parks Department began several key projects during FY 2019. One major project was the
restoration of the train depot which was relocated to Shirley Heritage Park. This was done in
conjunction with the Anna Area Historical Preservation Society. In addition, a community build
playground was constructed at Shirley Heritage Park, as well as a gazebo. In the upcoming year,
the City will work to finalize the park by adding a locomotive to the park.
Another Park’s project that began in FY 2019 was the construction of the City’s first dog park. The
dog park consists of open space, a steel fence, a pergola structure, benches, water fountains, and
obstacle equipment for the dogs to utilize.
Additional information related to the capital improvement projects and funding for those
improvements is located in the Five-Year Capital Improvements Plan located in the City’s annual
budget book.
Fund Accounting: The City's accounting system is organized and operated on a "fund basis."
Each fund is a distinct, self-balancing entity. A description of the various major funds and fund
types is contained in the Notes of the financial statements. A description of each individual non-
major fund is contained at the beginning of its related combined financial statement.
Basis of Accounting: The City's accounting records for all governmental funds are maintained on
the modified accrual basis of accounting. This method recognizes revenue when it is measurable
and available and expenditures when goods or services are received. All proprietary funds are
accounted for using the accrual basis of accounting; revenue is recognized when it is earned, and
expenses are recognized when they are incurred.
Internal Control: Management of the City is responsible for establishing and maintaining an
internal control structure. This structure is designed to provide reasonable, but not absolute,
assurance that: (1) City assets are protected from loss, theft or misuse; and (2) City financial
records and data are accurate and reliable. The concept of reasonable assurance recognizes that
the cost of a control should not exceed the benefits likely to be derived from it, and that the
evaluation of cost and benefits requires estimates and judgments by management.
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Budgetary Control: Each year, on or before September 20th, the City Council adopts an annual
operating budget for the ensuing fiscal year. The operating budget includes anticipated revenues
and expenditures for the General Fund, Special Revenue Funds, the Debt Service Fund, and
Proprietary Funds. The budget is a planning device that defines the type, quality, and quantity of
City goods and services that will be provided to our neighbors. The budget is also a control
device that serves as a system of "checks and balances" between levels of City government. The
budgetary system ensures that individual departments contain their expenditures within
limitations set by the City management, and that City management contains expenditures for the
entire City within limitations set by the City Council. After adoption, the City Manager may
authorize transfers of appropriations within a department and between departments within a
fund and within major line item categories. Increases or decreases of appropriations to a fund;
however, require special approval of the City Council in the form of an Ordinance formally
amending the adopted budget.
Awards and Acknowledgements
Awards – The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Anna for
its CAFR for the fiscal year ending September 30, 2018. This was the first year the City has
achieved this prestigious award. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized comprehensive annual
financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current CAFR
continues to meet the Certificate of Achievement Program’s requirements. We will be submitting
it to the GFOA to determine its eligibility for another certificate.
Acknowledgements - The presentation of this report could not have been accomplished without
the efficient and dedicated services of the entire staff of the Finance Department and all
department directors. We would like to express our appreciation to all members of the
departments who assisted and contributed to the preparation of this report. We would also like to
thank the Mayor and the City Council for their continued interest and support for maintaining the
highest standards of professionalism in the management of the City of Anna financial operations.
Furthermore, the work of the independent auditors from Weaver and Tidwell, L.L.P., is greatly
appreciated.
Respectfully submitted,
Dana Thornhill
Finance Director
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City of Anna, Texas
Organizational Chart
September 30, 2019
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City of Anna, Texas
Elected Officials and Management
September 30, 2019
City Council
Nate Pike Mayor
Kevin Toten Place 1
Josh Vollmer Place 2
John Beazley Place 3 – Deputy Mayor Pro-Tem
Chris Reeves Place 4
Nathan Bryan Place 5
Lee Miller Place 6 - Mayor Pro-Tem
Management
Jim Proce City Manager
Ryan Henderson Assistant City Manager
Dana Thornhill Finance Director
Jeff Caponera Chief of Police
Ray Isom Fire Chief
Carrie Land City Secretary
Greg Peters Director of Public Works
Ross Altobelli Director of Development Services
Stephanie Beitelschies Director of Human Resources
Joey Grisham Economic Development Director
Ashley Stathatos Managing Director of Community Services
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Financial Section
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Independent Auditor’s Report
The Honorable Mayor
and Members of the City Council of the
City of Anna, Texas
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, the discretely presented component units, each major fund, and the aggregate
remaining fund information of the City of Anna, Texas (the City), as of and for the fiscal year ended
September 30, 2019, and the related notes to the financial statements, which collectively comprise the
City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
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Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
The Honorable Mayor
and Members of the City Council of the
City of Anna, Texas
2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely
presented component units, each major fund, and the aggregate remaining fund information of the
City of Anna, Texas, as of September 30, 2019, and the respective changes in financial position, and,
where applicable, cash flows thereof for the fiscal year then ended in accordance with accounting
principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management’s Discussion and Analysis and the Required Supplementary Information, as listed in the
table of contents, be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the Required Supplementary Information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The Introductory Section, Statistical Section
and Combining and Individual Fund Statements and Schedules, as listed in the table of contents, are
presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The Combining and Individual Fund Statements and Schedules are the responsibility of management
and were derived from and relate directly to the underlying accounting and other records used to
prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the Combining and Individual Fund Statements and Schedules
are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements, and accordingly, we do not express an opinion or provide
any assurance on them.
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Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
The Honorable Mayor
and Members of the City Council of the
City of Anna, Texas
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
March 18, 2020, on our consideration of the City’s internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion
on the effectiveness of the City’s internal control over financial reporting or on compliance. That report
is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the City’s internal control over financial reporting and compliance.
(Signature of Auditor)
Dallas, Texas
March 18, 2020
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Management’s Discussion and Analysis
As management of the City of Anna, Texas (the “City”), we offer readers of the City’s financial
statements this narrative overview and analysis of the financial activities of the City for the fiscal year
ended September 30, 2019. We encourage readers to consider the information presented here in
conjunction with additional information contained in this report.
Financial Highlights
• The City's total combined net position was $92,053,750 at September 30, 2019. Of this,
$48,323,347 (unrestricted net position) may be used to meet the City’s ongoing obligations to its
citizens and creditors.
• The City had an overall increase in net position of $21,216,929. The increase is primarily a result
of $15,179,885 of capital grants and contributions.
• On a government-wide basis, the City's total liabilities decreased by $1,115,245. The decrease in
liabilities is a result of decreases in long-term debt due to principal payments, and a decrease
in interest payable for the utility fund.
• At the close of the current fiscal year, the City’s governmental funds reported combined fund
balances of $46,044,411, an increase of $6,035,328. This increase is largely due to revenue from
the new Public Improvement District Capital Projects fund, offset by an increase in capital
projects expenditures.
• As of the end of the year, the unassigned fund balance of the General Fund was
$5,705,117 or 66.3% of total General Fund expenditures.
Overview of the Financial Statements
The discussion and analysis provided here is intended to serve as an introduction to the City’s basic
financial statements. The City’s basic financial statements consist of three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) the notes to financial
statements. This report also includes supplementary information intended to furnish additional detail to
support the basic financial statements themselves.
Government-Wide Statements
The government-wide financial statements are designed to provide readers with a broad overview of
the City’s finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City’s assets, deferred inflows of
resources, deferred outflows of resources, liabilities, and net position. Over time, increases or decreases
in net position may serve as a useful indicator of whether the financial position of the City is improving
or deteriorating. Other non-financial factors, such as the City’s property tax base and the condition of
the City’s infrastructure, need to be considered in order to assess the overall health of the City.
The statement of activities presents information showing how the City’s net position changed during
the most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused vacation leave).
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Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions
that are intended to recover all or a significant portion of their costs through user fees and charges
(business-type activities). The governmental activities of the City include general government, public
safety, public works, culture and recreation, and economic development. The business-type activities
of the City include water, sewer, and sanitation operations.
FUND FINANCIAL STATEMENTS
A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The City, like other state and local governments,
uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
All of the funds of the City can be divided into three categories: governmental funds, proprietary
funds, and a fiduciary fund.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near- term inflows and outflows of
spendable resources, as well as on balances of spendable resources available at the end of the fiscal
year. Such information may be useful in assessing a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the government’s near-term
financing decisions. Both the governmental funds balance sheet and the governmental funds
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City maintains twelve individual governmental funds. Information is presented separately in the
governmental funds balance sheet and in the governmental funds statement of revenues,
expenditures, and changes in fund balances for the General Fund, Capital Projects Fund, Debt Service
Fund, and PID Capital Projects Fund, which are all considered to be major funds. Data from the other
governmental funds are combined into a single, aggregated presentation. Individual fund data for
each of these non-major governmental funds is provided in a separate section of the report.
The City adopts an annual appropriated budget for its General Fund and Debt Service Fund.
Proprietary Funds
The City’s proprietary fund is an enterprise funds. Enterprise funds are used to report the same functions
presented as business-type activities in the government-wide financial statements. The City uses an
enterprise fund to account for its water, sewer, and sanitation operations. All activities associated with
providing such services are accounted for in this fund, including administration, operation,
maintenance, debt service, capital improvements, meter maintenance, billing and collection. The
City's intent is that costs of providing the services to the general public on a continuing basis is
financed through user charges in a manner similar to a private enterprise.
Proprietary financial statements provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate information
for the Utility Fund, which is considered to be a major fund of the City.
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Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statements because
the resources of those funds are not available to support the City’s own programs. The accounting used
for fiduciary funds is much like that used for proprietary funds. The City has one fiduciary fund, the PID
Agency Fund.
Component Units
The City maintains the accounting and financial statements for two component units. The Anna
Economic Development Corporation and Anna Community Development Corporation are discretely
presented component units.
Notes to Financial Statements
The notes provide additional information that is necessary to acquire a full understanding of the data
provided in the government-wide and fund financial statements.
Other Information
In addition to the basic financial statements, MD&A, and accompanying notes, this report also
presents certain Required Supplementary Information (RSI). The required RSI includes a budgetary
comparison schedule for the General Fund, schedule of changes in the net pension liability and
related ratios, schedule of employer contributions for the Texas Municipal Retirement System (TMRS),
schedule of changes in the Total OPEB liability and related ratios, and schedule of OPEB contributions
for TMRS. RSI can be found after the basic financial statements.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted previously, net position may serve over time as a useful indicator of the City’s financial
position. For the City of Anna, net position was $92,053,750 as of September 30, 2019, in the primary
government.
The largest portion of the City’s restricted net position, $33,622,159, reflects its investments in capital
assets (e.g., land, park improvements, buildings, furniture and fixtures, streets, drainage, machinery and
equipment, etc.), less any debt used to acquire those assets that are still outstanding. The City uses
these capital assets to provide services to citizens; consequently, these assets are not available for
future spending. Although the City’s investment in its capital assets is reported net of related debt, it
should be noted that the resources needed to repay this debt must be provided from other sources,
since the assets themselves cannot be used to liquidate these liabilities.
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The following table reflects the condensed Statement of Net Position:
2019 2018 2019 2018 2019 2018
Current and other assets 27,185,006$ 9,620,107$ 6,017,875$ 5,945,268$ 33,202,881$ 15,565,375$
Restricted assets 21,056,952 31,742,013 9,638,637 6,761,991 30,695,589 38,504,004
Capital assets, net 40,208,990 32,204,043 51,614,559 49,927,178 91,823,549 82,131,221
Total assets 88,450,948 73,566,163 67,271,071 62,634,437 155,722,019 136,200,600
Deferred outflows of resources 654,679 353,030 327,114 245,901 981,793 598,931
Current liabilities 2,657,248 1,679,462 3,617,083 3,626,857 6,274,331 5,306,319
Noncurrent liabilities 35,916,425 35,821,329 22,308,956 24,487,309 58,225,381 60,308,638
Total liabilities 38,573,673 37,500,791 25,926,039 28,114,166 64,499,712 65,614,957
Deferred inflows of resources 113,902 262,844 36,448 84,909 150,350 347,753
Net position:
Net investment in capital assets 4,989,562 29,892,142 28,632,597 25,064,065 33,622,159 54,956,207
Restricted 469,607 469,607 9,638,637 6,761,991 10,108,244 7,231,598
Unrestricted 44,958,883 5,793,809 3,364,464 2,855,207 48,323,347 8,649,016
Total net position 50,418,052$ 36,155,558$ 41,635,698$ 34,681,263$ 92,053,750$ 70,836,821$
Activities Activities Primary Government
Governmental Business-Type Total
Statement of Activities:
The following table provides a summary of the City’s changes in net position:
2019 2018 2019 2018 2019 2018
Revenues:
Program revenues:
Charges for services 3,134,869$ 2,015,583$ 9,021,096$ 11,416,192$ 12,155,965$ 13,431,775$
Operating grants and contributions 182,943 4,225 - - 182,943 4,225
Capital grants and contributions 15,179,885 9,338,204 8,244,205 5,348,481 23,424,090 14,686,685
General revenues:
Property taxes 6,728,848 5,579,490 - - 6,728,848 5,579,490
Sales taxes 1,835,421 1,502,079 - - 1,835,421 1,502,079
Franchise and local taxes 612,332 573,517 - - 612,332 573,517
Investment income 1,044,444 327,200 276,200 136,261 1,320,644 463,461
Other revenue 84,132 314,750 1,028,735 148,148 1,112,867 462,898
Intergovernmental - 142,273 - - - 142,273
Gain on sale of assets 135,910 276,970 - - 135,910 276,970
Total revenues 28,938,784 20,074,291 18,570,236 17,049,082 47,509,020 37,123,373
Expenses:
General government 1,954,083 1,758,159 - - 1,954,083 1,758,159
Public safety 3,972,445 3,730,871 - - 3,972,445 3,730,871
Culture and recreation 877,455 799,378 - - 877,455 799,378
Public works 4,113,592 2,013,096 - - 4,113,592 2,013,096
Community services 1,289,798 810,369 - - 1,289,798 810,369
Interest and fiscal charges 2,420,375 670,788 - - 2,420,375 670,788
Water, sewer, & sanitation - - 11,664,343 8,893,526 11,664,343 8,893,526
Total expenses 14,627,748 9,782,661 11,664,343 8,893,526 26,292,091 18,676,187
Change in net position
before transfers 14,311,036 10,291,630 6,905,893 8,155,556 21,216,929 18,447,186
Transfers (48,542) 159,500 48,542 (159,500) - -
Total transfers (48,542) 159,500 48,542 (159,500) - -
Change in net position 14,262,494 10,451,130 6,954,435 7,996,056 21,216,929 18,447,186
Net position, beginning 36,155,558 25,732,310 34,681,263 26,694,012 70,836,821 52,426,322
Cumulative effect of
change in accounting - (27,882) - (8,805) - (36,687)
Net position, ending 50,418,052$ 36,155,558$ 41,635,698$ 34,681,263$ 92,053,750$ 70,836,821$
Activities Activities Primary Government
Governmental Business-type Total
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Graphic presentations of selected data from the summary tables are displayed below to assist in the
analysis of the City’s activities.
For the year ended September 30, 2019, revenues from governmental activities totaled $28,938,784.
Capital grants and contributions, property taxes, and charges for services are the City’s largest revenue
sources. Property taxes increased by $1,149,358 or 21% when compared to 2018 due to an increase in
overall assessed property values. Capital grants and contributions increased by $5,841,681 mainly due
to contributed capital relating to streets and drainage. The following graph shows the governmental
function expenses of the City:
For the year ended September 30, 2019, expenses for governmental activities totaled $14,627,748. This
represents an increase of $4,845,087 or 50% from the prior year. The City’s largest increase was in public
works and totaled $2,100,496, or 104%, due to continued expenses for various construction projects in
progress.
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Interest and fiscal charges increased $1,749,586, or 261%, due to increased interest payments on bonds
payable, and the issuance of PID bonds from the fiduciary fund.
Business-type activities are shown comparing operating costs to revenues generated by related
services.
For the year ended September 30, 2019, charges for services by business-type activities totaled
$9,021,096. This is a decrease of $2,395,096, or (56%), from the previous year. This decrease in revenues is
directly related to the significant amount of rainfall the City experienced during the fiscal year which
caused a decrease in water consumption. Expenses totaled $11,664,343, which was an increase of
$2,770,817, or 31% due to the inflow and infiltration issues the City continues to experience as heavy
rainfall occurs. The Public Works Department completed several I&I projects during FY 2019 in order to
aid in resolving these issues. The City will continue to complete I&I projects in FY 2020 in order to
minimize the amount of rainfall the City is treating through the City's sewer system.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, fund accounting is used to demonstrate and ensure compliance with finance-
related legal requirements.
Governmental Funds - The focus of the City’s governmental funds is to provide information of near-
term inflows, outflows and balances of spendable resources. Such information is useful in assessing the
City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of
the City’s net resources available for spending at the end of the year.
As of September 30, 2019, the General Fund reflected a total fund balance of $5,941,424. Of this,
$13,133 is considered restricted for parks and $215,932 is committed for capital projects. Unassigned
fund balance totaled $5,705,117 as of year-end. The General Fund saw a significant increase in property
taxes when compared to the prior year. This directly relates to the addition of new properties to the tax
roll, as well as an increase in property values.
The Capital Projects Fund had an ending fund balance of $29,456,663 at year-end for a decrease of
$3,476,985 due primarily to an increase in current capital projects.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
11
The Debt Service Fund had an ending fund balance of $89,877 at year-end for a decrease of $191,930
due primarily to increases in principal and interest charges for outstanding debt.
The PID Capital Projects Fund had an ending fund balance of $7,504,779 at year-end. This fund was
new this year, and the increase in fund balance was from a contribution of bonds issued for the PID that
are not liabilities of the City, but are payable by assessments within the public improvement district.
Proprietary Funds - The City’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
CAPITAL ASSETS
As of the end of the year, the City’s governmental activities funds had invested $40,208,990 in a variety
of capital assets and infrastructure, net of accumulated depreciation. The City’s business-type activities
funds had invested $51,614,559 in a variety of capital assets and infrastructure, net of accumulated
depreciation.
Major capital asset events during the current year include the following:
• Street contributions of $5,241,497 relating to paving and drainage.
• Water & Sewer improvements totaling $2,780,138.
• Construction in progress for various water and sewer projects totaling $973,101.
More detailed information about the City’s capital assets is presented in Note 5 to the financial
statements.
LONG-TERM DEBT
At September 30, 2019, the City had total bonds, contractual obligations, and capital leases
outstanding of $58,317,439. During the year, the City made payments on long-term debt totaling
$1,718,665. More detailed information about the City’s long-term liabilities is presented in Note 6 to the
financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The economy remains strong for the City of Anna and the North Texas region. The City continues to
focus on economic development and working toward providing a balanced community. The City is
taking a more proactive and aggressive approach to economic development with its business
recruitment efforts, as well as continued development of residential housing options. In addition, the
City continues to conservatively manage its budget. The fiscal year 2018-19 budget reflects the
commitment of the City Council and staff to focus on enhancing the quality of existing services to our
neighbors and respond to our city’s continuing growth and development, while maintaining a strong
financial position.
Since property values stabilized in 2013 following the 2008-2011 housing recession, the City has
continued to see healthy increases in the value of existing properties. For the tax year 2018, the City
saw existing property values increase just over 12% and $116,176,921 in new value was added to the tax
roll. Again, for the 2019 tax year, the City saw existing property values increase just over 10% and
$73,451,007 in new value was added to the tax roll. We remain cautiously optimistic that we will
experience modest, but slowing, appreciation in the value of existing properties and additional value
will continue to be added to the tax roll, as a result of new residential and commercial construction in
the near term. In FY 2020, Chick-fil-A, Whataburger, Starbucks, a surgery center and a free-standing
emergency room will be completed. However, the City will not see the full valuation increase reflected
in the property tax appraised values until FY 2021 due to the values being set in January of each year.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
12
However, in preparation of the passage of Senate Bill 2, the Texas Property Tax Reform and
Transparency Act of 2019, the City Council held the current year tax rate of $.591288 per $100 in
valuation. Senate Bill 2 compresses the capability of a local government to generate revenue and
provide services by lowering the tax rate a city can adopt without a mandatory election. SB 2 will also
change the way property tax rates are calculated, make changes to the appraisal process, and
reduce the previously called “rollback rate” of 8% to a new rate of 3.5% now called “the voter-approval
rate”. This tax rate is the maximum a City can set the tax rate above the “effective tax rate”, now
known as the “no-new-revenue rate”, without voter approval. This bill will tremendously impact
growing cities such as Anna into the future.
As the City begins to see the impact of the reduction of the amount of property tax a city can levy,
sales tax will become increasingly important for growing communities. Sales tax was up approximately
22% in FY 2019 largely due to the continued growth of the City. A conservative 4.13% increase was
budgeted for sales tax for FY 2020. As new commercial development occurs, the City expects to once
again see sizable increases in sales tax. In FY 2020, Starbucks, Chick-fil-A, Whataburger, Salsa TexMex,
and Sunrise Cafe will be opening. The City will not see the full impact of the sales tax from these
restaurants opening until FY 2021.
The growth in both sales tax and taxable value of real property corresponds to a significant increase in
residential growth and population over the past 36 months. According to the most recent population
estimates published by the North Central Texas Council of Governments, the City of Anna population as
of January 1, 2019 was 15,010. However, the population is believed to be well above this estimate due
to the number of new utility accounts established and single-family permits which have been issued.
The City is striving to reach out to its neighbors to encourage them to complete the 2020 Census to
receive a more accurate population count. Reflecting the City’s continued high growth in population
will be key to attracting additional commercial and retail businesses the City lacks and needs in order to
sustain the City into the future to provide the funding for expenditures needed in a rapidly growing
community.
Furthermore, with the growth in population comes a proportional increase in demand for municipal
services that are funded primarily by property taxes. As stated previously, in order to fund the FY 2020
budget, the City adopted a tax rate of $0.591288 per $100 valuation which is equivalent to the tax rate
adopted in FY 2019. When compared with other cities in our area, the City of Anna still has one of
lowest per-capita property tax levies.
Rapid population growth has also resulted in significant investment over the past 10 to 15 years in the
City’s water and sewer system. Currently the Water and Sewer Fund holds just under $21.5 million in
outstanding debt. The City has worked closely with our financial advisors, Hilltop Securities, to develop a
sound debt management plan for the Water and Sewer Fund. Over the past several years, in order to
appropriately manage this debt, the City and Hilltop Securities developed a plan to take advantage of
call dates and pursue advance refunding of the City’s outstanding debt. Every effort has been made to
minimize the present value costs to the City.
The City of Anna, along with the cities of Melissa, Van Alstyne, and Howe, belongs to a strategic alliance
called the Collin Grayson Municipal Alliance (CGMA). The alliance (CGMA) purchases treated surface
water from the North Texas Municipal Water District (NTMWD) through a contract with the Greater
Texoma Utility Authority (GTUA). The CMGA purchases a minimum take or pay (MT/P) allocation of
water through GTUA from NTMWD. Currently, each city is responsible for the percentage of the total
MT/P amount that corresponds to the total amount of water each city uses.
This treated surface water supplements the City’s water supply especially during the summer months
when water consumption is highest. As our population has grown and water demand has increased,
we have been required to increasingly supplement our well water with treated surface water. As we
have forecasted consumption and production of our wells, it appears that the CGMA as a group will
likely exceed the MT/P allocation in FY 2020. When this happens, MT/P amount will reset at the new
consumption level, and the City of Anna will be responsible for the cost of all the water we consume
above the current MT/P amount.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
13
Due to this continued increase in water cost, treatment and transportation cost, the growing needs for
infrastructure improvements and additions, as well as staffing needs for a growing community, the City
will be working with a water rate consultant in FY 2020 in order to evaluate rates and establish a five-
year rate model.
The City of Anna’s budget continues to be impacted by both moderately strong growth and
conservative fiscal management. The 2019-2020 budget reflects the efforts of the governing body and
city staff to address the need to provide services to support our growing community.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide a general overview of the City of Anna’s finances for all those
with an interest in the City’s finances. Questions concerning this report or requests for additional
financial information should be directed to the City Finance Director, 101 S. Powell Parkway, Anna,
Texas 75409.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
14
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
15
Basic Financial Statements
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
16
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Statement of Net Position
September 30, 2019
The Notes to Financial Statements are an integral part of this statement.
17
Governmental Business-type
Activities Activities Total CDC EDC
ASSETS
Cash and cash equivalents 16,394,698$ 2,785,022$ 19,179,720$ 755,946$ 591,617$
Investments 10,029,772 1,897,948 11,927,720 - -
Receivables, net 640,776 1,320,755 1,961,531 279,769 89,476
Due from other governments 111,518 - 111,518 - -
Prepaids 8,242 - 8,242 - -
Inventories - 14,150 14,150 - -
Restricted assets:
Restricted cash and cash equivalents 21,056,952 8,813,124 29,870,076 - -
GTUA prepaid reserves - 825,513 825,513 - -
Capital assets:
Non-depreciable 7,374,286 2,113,896 9,488,182 2,757,904 90,346
Net depreciable capital assets 32,834,704 49,500,663 82,335,367 - 246,838
Total assets 88,450,948 67,271,071 155,722,019 3,793,619 1,018,277
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on bond refunding - 117,616 117,616 - -
Deferred outflows - pension 647,999 207,360 855,359 8,640 -
Deferred outflows - OPEB 6,680 2,138 8,818 89 -
Total deferred outflows of resources 654,679 327,114 981,793 8,729 -
LIABILITIES
Accounts payable and other liabilities 1,857,975 1,362,641 3,220,616 13,857 3,370
Accrued salaries 94,997 28,194 123,191 1,817 -
Customer deposits - 970,106 970,106 - -
Due to other governments - 7,433 7,433 - -
Accrued interest payable 166,485 85,136 251,621 14,252 -
Long-term obligations:
Due within one year 537,791 1,163,573 1,701,364 215,000 -
Due in more than one year 34,895,804 21,982,357 56,878,161 2,870,000 -
Net pension liability 977,249 312,720 1,289,969 13,030 -
Total OPEB liability 43,372 13,879 57,251 578 -
Total liabilities 38,573,673 25,926,039 64,499,712 3,128,534 3,370
DEFERRED INFLOWS OF RESOURCES
Deferred inflows - pension 107,945 34,542 142,487 1,439 -
Deferred inflows - OPEB 5,957 1,906 7,863 79 -
Total deferred inflows of resources 113,902 36,448 150,350 1,518 -
NET POSITION
Net investment in capital assets 4,989,562 28,632,597 33,622,159 (327,096) 337,184
Restricted for:
Water and sewer improvements - 8,813,124 8,813,124 - -
Capital projects and other 469,607 - 469,607 - -
GTUA deposits - 825,513 825,513 - -
Community and economic development - - - 999,392 677,723
Unrestricted 44,958,883 3,364,464 48,323,347 - -
TOTAL NET POSITION 50,418,052$ 41,635,698$ 92,053,750$ 672,296$ 1,014,907$
Primary Government Component Units
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Statement of Activities
For the Fiscal Year Ended September 30, 2019
The Notes to Financial Statements are an integral part of this statement.
18
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
PRIMARY GOVERNMENT
Governmental activities:
General government 1,954,083$ 236,673$ 49,800$ -$
Culture and recreation 877,455 900,150 - -
Community services 1,289,798 1,314,178 - -
Public safety 3,972,445 16,995 133,143 -
Public works 4,113,592 666,873 - 15,179,885
Interest and fiscal charges 2,420,375 - - -
Total governmental activities 14,627,748 3,134,869 182,943 15,179,885
Business-type activities:
Water and sewer 11,664,343 9,021,096 - 8,244,205
Total business-type activities 11,664,343 9,021,096 - 8,244,205
TOTAL PRIMARY GOVERNMENT 26,292,091$ 12,155,965$ 182,943$ 23,424,090$
Component units
Community Development Corporation 667,531$ -$ -$ -$
Economic Development Corporation 70,683 - - -
Total component units 738,214$ -$ -$ -$
General revenues:
Property taxes
Sales taxes
Franchise and local taxes
Investment income
Other revenue
Gain on sale of capital assets
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning
NET POSITION, ENDING
Program Revenues
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
19
Community Economic
Governmental Business-type Development Development
Activities Activities Total Corporation Corporation
(1,667,610)$ -$ (1,667,610)$
22,695 - 22,695
24,380 - 24,380
(3,822,307) - (3,822,307)
11,733,166 - 11,733,166
(2,420,375) - (2,420,375)
3,869,949 - 3,869,949
- 5,600,958 5,600,958
- 5,600,958 5,600,958
3,869,949 5,600,958 9,470,907
(667,531)$ -$
- (70,683)
(667,531) (70,683)
6,728,848 - 6,728,848 - -
1,835,421 - 1,835,421 1,101,253 -
612,332 - 612,332 - -
1,044,444 276,200 1,320,644 12,591 4,669
84,132 1,028,735 1,112,867 - 42,045
135,910 - 135,910 - 371,925
(48,542) 48,542 - - -
10,392,545 1,353,477 11,746,022 1,113,844 418,639
14,262,494 6,954,435 21,216,929 446,313 347,956
36,155,558 34,681,263 70,836,821 225,983 666,951
50,418,052$ 41,635,698$ 92,053,750$ 672,296$ 1,014,907$
Net (Expense) Revenue
and Changes in Net Position
Component UnitsPrimary Government
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Balance Sheet - Governmental Funds
September 30, 2019
The Notes to Financial Statements are an integral part of this statement.
20
Total
Governmental
Funds
ASSETS
Cash and cash equivalents 3,680,777$ 9,187,957$ 89,877$ -$ 3,436,087$ 16,394,698$
Investments 1,897,948 - - - - 1,897,948
Receivables, net 566,995 16,346 36,320 - 21,115 640,776
Due from other governments - - - - 111,518 111,518
Due from other funds 727,195 - - - - 727,195
Prepaids 7,242 - - - 1,000 8,242
Restricted cash 13,133 13,328,013 - 7,715,806 - 21,056,952
Restricted investments - 8,131,824 - - - 8,131,824
TOTAL ASSETS 6,893,290$ 30,664,140$ 126,197$ 7,715,806$ 3,569,720$ 48,969,153$
LIABILITIES
Accounts payable and other liabilities 763,510$ 601,618$ -$ 211,027$ 281,820$ 1,857,975$
Accrued salaries 93,057 - - - 1,940 94,997
Due to other funds - 605,859 - - 121,336 727,195
Total liabilities 856,567 1,207,477 - 211,027 405,096 2,680,167
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue - property taxes 95,299 - 36,320 - - 131,619
Unavailable revenue - grants - - - - 112,956 112,956
Total deferred inflows of resources 95,299 - 36,320 - 112,956 244,575
FUND BALANCES
Nonspendable
Prepaids 7,242 - - - 1,000 8,242
Restricted for:
Culture and recreation 13,133 - - - - 13,133
Debt service - - 89,877 - - 89,877
Public safety - - - - 204,598 204,598
Capital projects - 29,456,663 - 7,504,779 2,958,588 39,920,030
Committed for:
Capital projects 215,932 - - - - 215,932
Unassigned 5,705,117 - - - (112,518) 5,592,599
Total fund balances 5,941,424 29,456,663 89,877 7,504,779 3,051,668 46,044,411
TOTAL LIABILITIES, DEFERRED
INFLOWS, AND FUND BALANCES 6,893,290$ 30,664,140$ 126,197$ 7,715,806$ 3,569,720$ 48,969,153$
Nonmajor
GovernmentalGeneral Fund
Capital
Projects
PID Capital
Projects
Debt Service
Fund
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
September 30, 2019
The Notes to Financial Statements are an integral part of this statement.
21
FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 46,044,411$
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets used in governmental activities are not current financial resources and,
therefore not reported in the governmental funds.
Capital assets - non-depreciable 7,374,286
Capital assets - net depreciable 32,834,704
Other long-term assets are not available to pay for current-period expenditures and,
therefore, are deferred in the governmental funds.244,575
Deferred outflows or resources, represent a consumption of net position that applies to a
future period(s) and is not recognized as an outflow of resources (expenditure).
Deferred outflows - pension 647,999
Deferred outflows - OPEB 6,680
Deferred inflows of resources, represent an acquisition of net position that applies to a future
period(s) and will not be recognized as an inflow of resources (revenue) until that time.
Deferred inflows - pension (107,945)
Deferred outflows - OPEB (5,957)
Some liabilities, including bonds payable and accrued interest, are not reported as
liabilities in the governmental funds.
Accrued interest payable (166,485)
General obligation bonds (1,922,000)
Certificates of Obligation (30,820,000)
Combination tax and revenue refunding bonds (615,000)
Unamortized premiums (1,433,211)
Capital lease (429,217)
Net pension liability (977,249)
Total OPEB liability (43,372)
Compensated absences (214,167)
NET POSITION OF GOVERNMENTAL ACTIVITIES 50,418,052$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Statement of Revenues, Expenditures, and Changes
in Fund Balances - Governmental Funds
For the Fiscal Year Ended September 30, 2019
The Notes to Financial Statements are an integral part of this statement.
22
Total
Governmental
Funds
REVENUES
Property taxes 4,876,783$ -$ 1,842,459$ -$ -$ 6,719,242$
Sales taxes 1,835,421 - - - - 1,835,421
Charges for services 145,592 - - - 1,567,023 1,712,615
License and permits 1,334,823 - - - - 1,334,823
Franchise and local taxes 612,332 - - - - 612,332
Investment income 138,658 763,743 13,820 67,506 60,717 1,044,444
Other revenues 41,749 - - - 124,711 166,460
Intergovernmental 93,190 - - - - 93,190
Fines and forfeitures 87,431 - - - - 87,431
Contributions and donations 7,425 - - 9,816,212 - 9,823,637
Total revenues 9,173,404 763,743 1,856,279 9,883,718 1,752,451 23,429,595
EXPENDITURES
Current:
General government 1,918,254 - - - - 1,918,254
Culture and recreation 472,605 - - - 46,091 518,696
Community services 1,286,794 - - - - 1,286,794
Public safety 3,574,722 - - - 147,030 3,721,752
Public works 636,515 1,029,415 - 490,480 9,950 2,166,360
Debt service:
Principal 55,851 - 371,000 - - 426,851
Interest and fiscal charges 1,508 - 1,677,209 911,257 - 2,589,974
Capital outlay 660,043 3,250,886 - 977,202 526,589 5,414,720
Total expenditures 8,606,292 4,280,301 2,048,209 2,378,939 729,660 18,043,401
Excess (deficiency) of revenues
over (under) expenditures 567,112 (3,516,558) (191,930) 7,504,779 1,022,791 5,386,194
OTHER FINANCING SOURCES (USES)
Transfers in - 88,115 - - 33,522 121,637
Transfers out (33,522) (48,542) - - (88,115) (170,179)
Inception of capital lease 485,068 - - - - 485,068
Proceeds from sale of capital assets 209,000 - - - 3,608 212,608
Total 660,546 39,573 - - (50,985) 649,134
Net change in fund balances 1,227,658 (3,476,985) (191,930) 7,504,779 971,806 6,035,328
FUND BALANCES, BEGINNING OF YEAR 4,713,766 32,933,648 281,807 - 2,079,862 40,009,083
FUND BALANCES, END OF YEAR 5,941,424$ 29,456,663$ 89,877$ 7,504,779$ 3,051,668$ 46,044,411$
General
Capital
Projects
Nonmajor
Governmental
Funds
PID Capital
Projects
Debt Service
Fund
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
September 30, 2019
The Notes to Financial Statements are an integral part of this statement.
23
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 6,035,328$
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. Capital contributions are only recognized on the
statement of activities.
Capital outlay 5,415,321
Depreciation expense (2,585,831)
Capital contributions 5,252,155
Net effect of proceeds from the sale of capital assets and gains on disposal (76,698)
Some expenses reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds.
Increase in compensated absences (16,035)
Decrease in accrued interest 85,259
Changes to net pension liability and pension related deferred outflows and inflows of
resources do not require the use of current financial resources and, therefore,
are not reported as expenditures in governmental funds.12,186
Changes to other postemployment benefits liability and related deferred outflows and inflows
of resources do not require the use of current financial resources and, therefore,
are not reported as expenditures in governmental funds.(6,438)
Various other reclassification and eliminations are necessary to convert from the modified
accrual basis of accounting to accrual basis of accounting. This includes the realization of
changes in unavailable revenues from the prior year.121,124
The issuance of long-term debt (e.g., bonds, leases, certificates of obligation) provides
current financial resources to governmental funds, while the repayment of the principal of
long-term debt consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net position. Also, governmental funds report the
effect of issuance costs, premiums, discounts, and similar items when debt is first issued,
whereas the amounts are deferred and amortized in the statement of activities. This amount
is the net effect of these differences in the treatment of long-term debt and related items.
Inception of capital lease (485,068)
Amortization of debt premium 84,340
Principal payments 371,000
Capital lease payments 55,851
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 14,262,494$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Statement of Net Position
Proprietary Fund
September 30, 2019
The Notes to Financial Statements are an integral part of this statement.
24
Utility Fund
ASSETS
Current assets
Cash and cash equivalents 2,785,022$
Certificate of deposit 1,897,948
Receivables, net 1,320,755
Inventories 14,150
Total current assets 6,017,875
Noncurrent assets
Restricted cash and pooled investments 8,813,124
GTUA prepaid reserves 825,513
Capital assets
Non-depreciable 2,113,896
Net depreciable capital assets 49,500,663
Total noncurrent assets 61,253,196
Total assets 67,271,071
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on bond refunding 117,616
Deferred outflows - pension 207,360
Deferred outflows - OPEB 2,138
Total deferred outflows of resources 327,114
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Statement of Net Position – Continued
Proprietary Fund
September 30, 2019
The Notes to Financial Statements are an integral part of this statement.
25
Utility Fund
LIABILITIES
Current liabilities
Accounts payable 1,326,155$
Salaries payable 28,194
Other liabilities 36,486
Bond interest payable 85,136
Due to other governments 7,433
Customer deposits 970,106
Total current liabilities 2,453,510
Noncurrent liabilities
Due within one year 1,163,573
Due in more than one year 21,982,357
Net pension liability 312,720
Total OPEB liability 13,879
Total noncurrent liabilities 23,472,529
Total liabilities 25,926,039
DEFERRED INFLOWS OF RESOURCES
Deferred inflows - pension 34,542
Deferred inflows - OPEB 1,906
Total deferred inflows of resources 36,448
NET POSITION
Net investment in capital assets 28,632,597
Restricted for:
GTUA deposits 825,513
Water and sewer improvements 8,813,124
Unrestricted 3,364,464
TOTAL NET POSITION 41,635,698$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Statement of Revenues, Expenses, and Changes
in Net Position - Proprietary Fund
For the Fiscal Year Ended September 30, 2019
The Notes to Financial Statements are an integral part of this statement.
26
OPERATING REVENUES
Water 4,291,024$
Sewer 2,681,152
Sanitation 1,102,883
Service charges 569,215
Connection fees 315,805
Miscellaneous 61,017
Total operating revenues 9,021,096
OPERATING EXPENSES
Personnel services 1,666,327
Contracted services 4,823,327
Maintenance 691,593
Supplies 139,703
Utilities 383,888
Depreciation 2,182,344
Other expenses 278,411
Total operating expenses 10,165,593
Operating loss (1,144,497)
NONOPERATING REVENUES (EXPENSES)
Investment income 276,200
Interest expense (899,950)
Other revenue 1,028,735
Developer and impact fees 5,496,345
Reimbursed developer fees (598,800)
Total nonoperating revenues (expenses)5,302,530
Income before transfers and capital contributions 4,158,033
Transfers in 48,542
Contributed capital 2,747,860
Change in net position 6,954,435
Net position, beginning of year 34,681,263
NET POSITION, END OF YEAR $ 41,635,698
Utility Fund
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Statement of Cash Flows - Proprietary Fund
For the Fiscal Year Ended September 30, 2019
The Notes to Financial Statements are an integral part of this statement.
27
Utility Fund
OPERATING ACTIVITIES
Receipts from customers and users 9,614,611$
Payments to suppliers (6,589,879)
Payments to employees (1,653,090)
Net cash provided by operating activities 1,371,642
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Cash to GTUA reserve accounts 88,535
Developer and impact fees 4,897,545
Interest correction 951,337
Cash paid for acquisition and construction of capital assets (1,121,865)
Interest and fees paid on long-term debt (1,903,394)
Principal payments on debt (1,131,810)
Net cash provided by capital and related financing activities 1,780,348
NONCAPITAL AND RELATED FINANCING ACTIVITIES
Nonoperating revenue 77,398
Transfers in from other funds 48,542
Net cash provided by noncapital financing activities 125,940
INVESTING ACTIVITIES
Purchase of investment securities (1,522,948)
Interest received 276,200
Net cash used by investing activities (1,246,748)
Net increase in cash and cash equivalents 2,031,182
Cash and cash equivalents, beginning of year 9,566,964
Cash and cash equivalents, end of year 11,598,146$
RECONCILIATION TO STATEMENT OF NET POSITION
Cash and cash equivalents 2,785,022$
Restritcted cash and cash equivalents 8,813,124
11,598,146$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Statement of Cash Flows - Proprietary Fund – Continued
For the Fiscal Year Ended September 30, 2019
The Notes to Financial Statements are an integral part of this statement.
28
Utility Fund
RECONCILIATION OF OPERATING LOSS TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating loss (1,144,497)$
Adjustments to reconcile operating loss to cash
provided by operating activities:
Depreciation expense 2,182,344
Decrease in accounts receivable 48,122
Decrease in inventories 22,785
Decrease in due from other funds 445,435
Increase in deferred outflows - pension and OPEB (98,015)
Decrease in deferred inflows - pension and OPEB (48,461)
Increase in net pension and total OPEB liability 144,775
Decrease in accounts payable (295,742)
Increase in salaries payable 5,607
Increase in customer deposits 99,958
Increase in accrued compensated absences 9,331
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,371,642$
NON-CASH CAPITAL ACTIVITIES
Contributions of capital assets 2,747,860$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Statement of Fiduciary Net Position
Agency Fund
September 30, 2019
The Notes to Financial Statements are an integral part of this statement.
29
PID Agency
Fund
ASSETS
Cash and cash equivalents 1,799,220$
Total assets 1,799,220$
LIABILITIES
Accounts payable 1,799,220$
Total liabilities 1,799,220$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
30
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
31
Note 1. Summary of Significant Accounting Policies
A. Reporting Entity
The City of Anna, Texas (the "City") is a home rule charter city that operates under a Council-Manager
form of government.
The City Council is the principal legislative body of the City. The City Manager is appointed by a majority
vote of the City Council and is responsible to the Council for the administration of all the affairs of the
City. The City Manager is responsible for the appointment and removal of department directors and
employees, supervision and control of all City departments, and preparation of the annual budget.
The City provides the following services: public safety, ambulance, streets, sanitation, planning and
zoning, and general administrative services. Other services include water, sewer, and sanitation
operations.
The City is an independent political subdivision of the State of Texas governed by an elected council
and a mayor and is considered a primary government. As required by generally accepted accounting
principles, these basic financial statements have been prepared based on considerations regarding the
potential for inclusion of other entities, organizations, or functions as part of the City's financial reporting
entity. The component units listed below, although legally separate, are considered part of the
reporting entity. No other entities have been included in the City's reporting entity. Additionally, as the
City is considered a primary government for financial reporting purposes, its activities are not
considered a part of any other governmental or other type of reporting entity.
Considerations regarding the potential for inclusion of other entities, organizations, or functions in the
City's financial reporting entity are based on criteria prescribed by generally accepted accounting
principles. These same criteria are evaluated in considering whether the City is a part of any other
governmental or other type of reporting entity. The overriding elements associated with prescribed
criteria considered in determining that the City's financial reporting entity status is that of a primary
government are that it has a separately elected governing body, it is legally separate, and it is fiscally
independent of other state and local governments. Additionally, prescribed criteria under generally
accepted accounting principles include considerations pertaining to organizations for which the
primary government is financially accountable and considerations pertaining to organizations for which
the nature and significance of their relationship with the primary government are such that exclusion
would cause the reporting entity's financial statements to be misleading or incomplete.
Discretely Presented Component Units
Some organizations are included as component units because of their fiscal dependency on the
primary government. An organization is fiscally dependent on the primary government if it is unable to
adopt its budget, levy taxes, set rates or charges, or issue bonded debt without the approval by the
primary government. The following entities were found to be component units of the City and are
included in the basic financial statements:
Anna Economic Development Corporation
The Anna Economic Development Corporation (EDC) fund was incorporated in the state of Texas as a
nonprofit industrial development corporation under Section 4B of the Development Corporation Act of
1979. The purpose of the EDC is to promote economic development within the City of Anna.
Anna Community Development Corporation
The Anna Community Development Corporation (CDC) fund was incorporated in the state of Texas as
a nonprofit industrial development corporation under Section 4A of the Development Corporation Act
of 1979. The purpose of the CDC is to promote community development within the City of Anna.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
32
The members of both the EDC and CDC’s board of seven directors are appointed by the City Council.
Both the EDC and CDC are fiscally dependent upon the City as the City Council approves their budgets
and must approve any debt issuance. However, the component units do not qualify for blending
because the component services directly benefit the community rather than the City itself. The EDC
and CDC are discretely presented as governmental fund types and do not issue separate financial
statements.
B. Government-wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government.
Governmental activities, which normally are supported by taxes, intergovernmental revenues, and
other nonexchange transactions, are reported separately from business-type activities, which rely to a
significant extent on fees and charges to external customers for support.
C. Basis of Presentation – Government-wide Financial Statements
While government-wide and fund financial statements are presented separately, they are interrelated.
The governmental activities column incorporates data from governmental funds and internal service
funds, while business-type activities incorporate data from the City’s enterprise funds. Separate financial
statements are provided for governmental funds and proprietary funds.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are payments in lieu of taxes where the amounts are
reasonably equivalent in value to the interfund services provided and other charges between the City's
water and wastewater functions and various other functions of the City. Elimination of these charges
would distort the direct costs and program revenues reported for the various functions concerned.
D. Basis of Presentation – Fund Financial Statements
The fund financial statements provide information about the City’s funds. Separate statements for each
fund category - governmental and proprietary - are presented. The emphasis of fund financial
statements is on major governmental and enterprise funds, each displayed in a separate column. All
remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.
The City reports the following major governmental funds:
The general fund is used to account for and report all financial resources not accounted for and
reported in other funds. The principal sources of revenues include local property taxes, sales and
franchise taxes, licenses and permits, fines and forfeitures, and charges for services. Expenditures
include general government, public safety, public works, and culture and recreation. The general
fund is always considered a major fund for reporting purposes.
The capital projects fund is used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the acquisition or construction
of capital facilities and other capital assets. The capital projects fund is considered a major fund for
reporting purposes.
The debt service fund is used to account for the accumulation of resources that are restricted,
committed, or assigned for the payment of principal and interest on long-term obligations of
governmental funds. The primary source of revenue for debt service is local property taxes. The debt
service fund is considered a nonmajor fund for reporting purposes.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
33
The PID capital projects fund is used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the acquisition or construction
of capital facilities and other capital assets relating to the Hurricane Creeks PID.
Additionally, the City reports the following nonmajor governmental funds:
The City accounts for resources restricted to, or designated for, specific purposes in Special Revenue
Funds. These funds consist of the roadway impact fee service area one and two, and road capital
developer agreements fund, police seizure fund, park development fund, fire department capital
improvement fund, grant fund, and other special revenue fund.
The City reports the following enterprise fund:
The Utility Fund is used to account for the provision of water, sewer, and solid waste collection
services and wastewater treatment operations. Activities of the fund include administration,
operations and maintenance of the water system, and billing and collection activities. The fund also
accounts for the accumulation of resources for, and the payment of, long-term debt principal and
interest. All costs are financed through charges to utility customers with rates reviewed regularly and
adjusted if necessary to ensure integrity of the fund.
The City reports the following fiduciary fund:
The Public Improvement District (PID) Agency Fund accounts for bond proceeds, assessments, and
related debt associated with the issuance of bonds issued by the City as an agent for the Public
Improvement District.
During the course of operations the City has activity between funds for various purposes. Any residual
balances outstanding at year end are reported as due from/to other funds and advances to/from
other funds. While these balances are reported in fund financial statements, certain eliminations are
made in the preparation of the government-wide financial statements. Balances between the funds
included in governmental activities (i.e., the governmental and internal service funds) are eliminated so
that only the net amount is included as internal balances in the governmental activities column.
Similarly, balances between the funds included in business-type activities (i.e., the enterprise funds) are
eliminated so that only the net amount is included as internal balances in the business-type activities
column.
Further, certain activity occurs during the year involving transfers of resources between funds. In fund
financial statements these amounts are reported at gross amounts as transfers in/out. While reported in
fund financial statements, certain eliminations are made in the preparation of the government-wide
financial statements. Transfers between the funds included in governmental activities are eliminated so
that only the net amount is included as transfers in the governmental activities column. Similarly,
balances between the funds included in business-type activities are eliminated so that only the net
amount is included as transfers in the business-type activities column.
E. Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable measurement focus
and basis of accounting. Measurement focus indicates the type of resources being measured such as
current financial resources or economic resources. The basis of accounting indicates the timing of
transactions or events for recognition in the financial statements.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
34
The government-wide and proprietary fund financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash
flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have
been met.
The governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon
as they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However,
debt service expenditures are recorded only when payment is due. General capital asset acquisitions
are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under
capital leases are reported as other financing sources.
The City considers revenues available if they are collected within 60 days of the end of the current
period. Property taxes, sales taxes, franchise taxes, and interest associated with the current period are
all considered to be susceptible to accrual and so have been recognized as revenues of the current
period. Other receipts and other taxes become measurable and available when cash is received by
the government and are recognized as revenue at that time. Generally, the effect of interfund activity
has been eliminated from the government- wide financial statements.
F. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance
1. Cash and Cash Equivalents
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, balances
in local government investment pools, and short-term investments with original maturities of three
months or less from the date of acquisition. For the purpose of the statement of cash flows, the
proprietary fund types consider temporary investments with maturity of three months or less when
purchased to be cash equivalents.
The City maintains pooled cash and investment accounts. Each fund whose monies are deposited in
the pooled cash and investment accounts has equity therein, and interest earned on the investment of
these monies is allocated based upon relative equity at the previous month end.
2. Investments
Investments, with certain exceptions, are reported at fair value. The exceptions are investments in
external investment pools and nonparticipating interest earning contracts, such as certificates of
deposit, which are reported at amortized cost and a cost-based measure, respectively.
The City has adopted a written investment policy regarding the investment of its funds as defined in the
Public Funds Investment Act, Chapter 2256, Texas Government Code. In summary, the City is authorized
to invest in the following:
Direct obligations of the U.S. government, its agencies and instrumentalities
Certificates of deposit that meet certain criteria
Money market mutual funds that meet certain criteria
Local government investment pools
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
35
3. Receivables and Interfund Transactions
Transactions between funds that are representative of lending/borrowing arrangements outstanding at
the end of the year are referred to as either “interfund receivables/payables” (i.e., the current portion of
interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). All
other outstanding balances between funds are reported as “due to/from other funds” in the fund
financial statements. If the transactions are between the primary government and its component unit,
these receivables and payables are classified as “due to/from component unit/primary government.”
Any residual balances outstanding between the governmental activities and business-type activities are
reported in the government-wide financial statements as “internal balances.”
4. Inventories and Prepaid Items
Inventories are valued at cost using the first-in/first-out (FIFO) method. The cost of such inventories is
recorded as expenditures/expenses when the related liability is incurred, (i.e., the purchase method).
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is
recorded as expenditures/expenses when consumed rather than when purchased.
5. Capital Assets
Capital assets, which include land and improvements, construction in progress, buildings and
improvements, machinery and equipment, infrastructure (e.g. roads, bridges, sidewalks, and similar
items), and water and sewer systems are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements. Capital assets are defined by the City
as assets with an initial, individual cost of more than $5,000, and an estimated useful life in excess of one
year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Donated capital assets are recorded at acquisition value at the date of donation. Major outlays for
capital assets and improvements are capitalized as projects are constructed. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are
not capitalized.
Interest costs incurred during the construction phase of capital assets of business-type activities
acquired with tax-exempt debt is included as part of the capitalized value of the assets constructed.
Land and improvements and construction in progress are not depreciated. Buildings and
improvements, machinery and equipment, infrastructure, and water and sewer systems of the primary
government are depreciated using the straight-line method over the following estimated useful lives:
Asset Description
Estimated
Useful Life
Buildings 20 years
Water and sewer system 35 years
Equipment 3-20 years
Streets 20 years
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
36
6. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position that applies to a future period(s) and so will not be
recognized as an outflow of resources (expense/expenditure) until then. The City has the following items
that qualify for reporting in this category:
In the government-wide and proprietary fund statements of net position:
• A deferred charge on refunding bonds results from the difference in the carrying value of
refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter
of the life of the refunded or refunding debt.
• Deferred outflows related to net pension and other postemployment benefit liabilities result from
differences in projected and actual earnings on plan investments, expected and actual
economic experience, changes in actuarial assumptions and other inputs, and contributions
made subsequent to the measurement date of each plan. These activities are amortized over
the weighted average remaining service life of all participants in the respective qualified
pension and OPEB plan, except for projected and actual earnings differences on investments,
which are amortized on a closed basis over a 5-year period, and contributions made
subsequent to the measurement date of each plan, which are recognized in the subsequent
fiscal year.
In addition to liabilities, the statement of financial position (or balance sheet) will sometimes report a
separate section for deferred inflows of resources. This separate financial statement element, deferred
inflows of resources, represents an acquisition of net position (or fund balance) that applies to a future
period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has
the following items that qualify for reporting in this category:
In the governmental funds balance sheet:
• Unavailable revenues from property taxes and grants are deferred and recognized as an inflow
of resources in the period that the amounts become available.
In the government-wide and proprietary fund statements of net position:
• Deferred inflows related to net pension and other postemployment benefit liabilities results from
differences in projected and actual earnings on plan investments, expected and actual
economic experience, changes in actuarial assumptions and other inputs. These activities are
amortized over the weighted average remaining service life of all participants in the respective
qualified pension plan, except for projected and actual earnings differences on investments,
which are amortized on a closed basis over a 5-year period.
7. Compensated Absences
The City maintains formal programs for vacation and sick leave. Eligible employees are granted
vacation pay benefits in varying amounts to specified maximums depending on tenure with the City.
The City’s personnel policy permits its eligible employees to accumulate earned but unused vacation
pay benefits.
There is no liability for unpaid accumulated sick leave as the City will not pay any unused amounts
when employees separate from service with the City.
The estimated amount of accrued vacation and sick pay benefits that is expected to be liquidated
with expendable available financial resources is reported as an expenditure and a fund liability of the
governmental fund that will pay it upon maturity. Amounts of accrued vacation pay benefits that are
not expected to be liquidated with expendable available financial resources are maintained
separately and represent a reconciling item between the fund and government-wide presentations.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
37
8. Long-Term Obligations
The government-wide financial statements and proprietary fund type fund financial statements report
long-term debt and other long-term liabilities in the applicable governmental activities, business-type
activities, or proprietary fund type statement of net position. Bond premiums and discounts are
amortized over the life of the bonds using the effective interest method, if material. Bonds payable are
reported net of the applicable bond premiums or discounts.
The fund financial statements report bond premiums and discounts during the current period. The face
amount of debt issued is reported as other financing sources. Premiums received on debt issuances are
reported as other financing sources while discounts on debt issuances are reported as other financing
uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as
debt service expenditures.
Long-term debt is recognized as a liability of a governmental fund when due, or when resources have
been accumulated in the debt service fund for payment early in the following year. For other long-term
obligations, only that portion expected to be paid from expendable available financial resources is
reported as a fund liability of a governmental fund. Long-term liabilities expected to be paid from
proprietary fund operations are accounted for in those funds.
Assets acquired under the terms of a capital lease are recorded as liabilities and capitalized in the
government-wide financial statements at the present value of net minimum lease payments at
inception of the lease. In the year of acquisition, capital lease transactions are recorded as other
financing sources and as capital outlay expenditures in the applicable fund. Lease payments
representing both principal and interest are recorded as expenditures in the general fund upon
payment with an appropriate reduction of principal recorded in the government-wide financial
statements.
9. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows
of resources related to pensions, and pension expense, information about the Fiduciary Net Position of
the Texas Municipal Retirement System (TMRS) and additions to/deductions from TMRS’s Fiduciary Net
Position have been determined on the same basis as they are reported by TMRS. For this purpose, plan
contributions are recognized in the period that compensation is reported for the employee, which is
when contributions are legally due. Benefit payments and refunds are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value. 10. Other Postemployment Benefits (OPEB)
The City offers one OPEB plan, a defined benefit group-term life insurance plan known as the
Supplemental Death Benefits Fund (“SDBF”) administered by TMRS. Total OPEB liability, deferred outflows
of resources and deferred inflows of resources related to total OPEB liability, and total OPEB expense
have been determined on the same basis as they are reported by TMRS. For this purpose, plan
contributions are recognized in the period that compensation is reported for the employee, which is
when contributions are legally due. Benefit payments and refunds are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
11. Net Position Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or
grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted –
net position and unrestricted – net position in the government-wide and proprietary fund financial
statements, a flow assumption must be made about the order in which the resources are considered to
be applied. It is the City’s policy to consider restricted – net position to have been depleted before
unrestricted – net position is applied.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
38
12. Fund Balance Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted
resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the
amounts to report as restricted, committed, assigned, and unassigned fund balance in the
governmental fund financial statements, a flow assumption must be made about the order in which the
resources are considered to be applied. It is the City’s policy to consider restricted fund balance to
have been depleted before using any of the components of unrestricted fund balance. Further, when
the components of unrestricted fund balance can be used for the same purpose, committed fund
balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
13. Fund Balance Policies
Fund balance of governmental funds is reported in various categories based on the nature of any
limitations requiring the use of resources for specific purposes. The City itself can establish limitations on
the use of resources through either a commitment (committed fund balance) or an assignment
(assigned fund balance). The City reports the following classifications of fund balance:
Nonspendable fund balance – includes amounts that are not in spendable form or are legally or
contractually required to be maintained intact.
Restricted fund balance – includes amounts that have external constraints imposed upon the use of the
resources by creditors, grantors, contributors, laws or regulations of other governments or imposed by
law through constitutional provisions or enabling legislation.
Committed fund balance - includes amounts that can be used only for the specific purposes pursuant
to constraints imposed by a formal action of the City’s highest level of decision-making authority. The
City Council is the highest level of decision-making authority for the City that can, by approval of a
resolution prior to the end of the fiscal year, commit fund balance. Once approved, the limitation
imposed by the resolution remains in place until a similar action is taken (the approval of another
resolution) to remove or revise the limitation.
Assigned fund balance – includes amounts that are intended to be used by the City for specific
purposes but do not meet the criteria to be classified as committed. The City Council has, by resolution,
authorized the City’s Finance Director to assign fund balance to a specific purpose as approved by the
City’s fund balance policy. Unlike commitments, assignments generally only exist temporarily. In other
words, an additional action does not normally have to be taken for the removal of an assignment.
Conversely, as discussed above, an additional action is essential to either remove or revise a
commitment.
Unassigned fund balance – the residual classification for the government’s General Fund and includes
all spendable amounts not contained in the other classifications, and other funds that have total
negative fund balances.
14. Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and deferred outflows and inflows of resources, and the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported amounts of revenues and
expenditures/expenses during the reporting period. Actual results could differ from those estimates.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
39
G. Revenues and Expenditures/Expenses
1. Program Revenues
Amounts reported as program revenues include 1) charges to customers or applicants who purchase,
use, or directly benefit from goods, services, or privileges provided by a given function or segment and
2) grants and contributions (including special assessments) that are restricted to meeting the
operational or capital requirements of a particular function or segment. All taxes, including those
dedicated for specific purposes, and other internally dedicated resources are reported as general
revenues rather than as program revenues.
2. Property Taxes
Property taxes are levied by October 1 on the assessed value listed as of the prior January 1 for all real
and business personal property in conformity with Subtitle E, Texas Property Tax Code. Taxes are due on
receipt of the tax bill and are delinquent if not paid before February 1 of the year following the year in
which imposed. Penalties are calculated after February 1 up to the date collected by the government
at the rate of 6% for the first month and increased 1% per month up to a total of 12%. Interest is
calculated after February 1 at the rate of 1% per month up to the date collected by the government.
Under state law, property taxes levied on real property constitute a lien on the real property which
cannot be forgiven without specific approval of the State Legislature. The lien expires at the end of
twenty years. Taxes levied on personal property can be deemed uncollectible by the City.
3. Proprietary Funds Operating and Nonoperating Revenues and Expenses
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of
the utility fund is charges to customers for sales and services. The utility fund also recognizes as operating
revenue the portion of tap fees intended to recover the cost of connecting new customers to the
system. Operating expenses for the utility fund includes the operating cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as nonoperating revenues and expenses.
Note 2. Stewardship, Compliance and Accountability
Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles
(GAAP) for the General, Debt Service, and Utility Fund. The original budget is adopted by the City
Council prior to the beginning of the year. The legal level of control is defined at the fund level. No funds
can be transferred or added to a budgeted fund without Council approval. Appropriations lapse at the
end of the year.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
40
Note 3. Deposits and Investments
Deposits – State statutes require that all deposits be fully collateralized by U.S. Government obligations
or obligations of Texas and its agencies that have a market value of not less than the principal amount
of the deposits. The City’s demand deposits and certificates of deposit were fully insured or
collateralized at September 30, 2019, with collateral required by state statutes. At year-end, the carrying
amount of the City’s deposits (including component units and fiduciary funds) was $14,713,301 and the
bank balance was $14,721,563. Of the bank balance, federal depository insurance covered $250,000
and the remainder was covered by collateral held by the pledging financial institution’s agent in the
City’s name.
Cash and cash equivalents as of September 30, 2019 consist of and are classified in the accompanying
financial statements as follows:
Statement of net position:
Primary government:
Cash and cash equivalents 19,179,720$
Restricted cash and cash equivalents 29,870,076
Total primary government 49,049,796
Fiduciary Fund:
Cash and cash equivalents 1,799,220
Component units:
Cash and cash equivalents 1,347,563
Total cash and investments 52,196,579$
Cash on hand 2,000$
Deposits with financial institution 14,713,301
Investment pools / money market 37,481,278
Total cash and investments 52,196,579$
As of September 30, 2019, the City had the following investments:
Value
Weighted
Average
Maturity
(Years)
Certificates of deposit 11,927,720$ 0.6104
TexPool 30,330,446 0.0767
Money market accounts 7,150,831 0.0767
Total 49,408,997$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
41
Interest rate risk
Interest rate risk is the risk that changes in interest rates may adversely affect the value of an investment.
The City structures its investment portfolio so that securities mature to meet cash requirements for
ongoing operations, and monitors interest rate risk using weighted average maturity analysis. In
accordance with its investment policy, the City manages its exposure to declines in fair values by
limiting the weighted average maturity of its investment portfolio as a whole to no more than 365 days.
Credit risk
The City's policy requires that investments are limited to only certain instruments that are authorized by
the Public Funds Investment Act. Further specifications are that external investment pools must be rated
no lower than "AAA" or an equivalent rating by at least one nationally recognized rating service, United
States Treasury and agency investments are guaranteed (either express or implied) and backed by the
full faith and credit of the United States or its respective agencies, and certificates of deposit are
guaranteed or insured by the Federal Deposit Insurance Corporation (FDIC) or fully collateralized under
an approved pledge agreement.
As of September 30, 2019, the City's investment in TexPool was rated "AAAm" by Standard & Poor’s. The
certificates of deposit are unrated but were fully collateralized.
Custodial credit risk – deposits
In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be
returned. The City's investment policy requires funds on deposit at the depository bank to be
collateralized by securities, to the extent the deposits exceed FDIC coverage. As of September 30, 2019,
the combined values of pledged securities and FDIC coverage exceeded bank balances for the City.
Custodial credit risk – investments
For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be
able to recover the value of its investments or collateral securities that are in the possession of an
outside party. The City's investment policy requires that custody of securities is maintained at financial
institutions, avoiding physical possession, and that securities owned by the City shall be held in the City’s
account.
Concentration of credit risk
The risk is the risk of loss attributed to the magnitude of a City’s investment in a single issuer. The City’s
investment policy specifies undue concentrations of assets in a specific maturity sector shall be
avoided.
The City’s investments are stated at fair value, with certain exceptions described below. The City
categorizes its fair value measurements within the fair value hierarchy established by GASB Statement
No. 72, Fair Value Measurement and Application, which provides a framework for measuring fair value
and establishes a three-level fair value hierarchy that describes the inputs that are used to measure
assets and liabilities.
• Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets
that a government can access at the measurement date.
• Level 2 inputs are inputs, other than quoted prices within Level 1, that are observable for an
asset or liability, either directly or indirectly.
• Level 3 inputs are unobservable inputs for an asset or liability.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
42
The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.
If a price for an identical asset or liability is not observable, a government should measure fair value
using another valuation technique that maximizes the use of relevant observable inputs and minimizes
the use of unobservable inputs. If the fair value of an asset or a liability is measured using inputs from
more than one level of the fair value hierarchy, the measurement is considered to be based on the
lowest priority level input that is significant to the entire measurement.
Certain investments are not required to be measured at fair value; these include its investment in the
TexPool external investment pool, which is measured at amortized cost and is included in cash
equivalents, and its investments in certificates of deposit, which are measured based on cost. These
instruments are exempt from categorization within the fair value hierarchy.
TexPool
TexPool is a local government investment pool, duly chartered and overseen by the State Comptroller’s
Office, and administered and managed by Federated Investors, Inc. State Street Bank serves as the
custodial bank. TexPool’s investment portfolio consists of U.S. Government securities; collateralized
repurchase and reverse repurchase agreements; and AAA-rated money market mutual funds. The
pool’s investments are highly rated by nationally recognized statistical rating organizations, have no
more than five percent concentrated in one issuer (excluding U.S. government securities), and are
sufficiently liquid to meet reasonably foreseeable redemptions.
TexPool transacts at a net asset value of $1.00 per share, and maintains a weighted average maturity of
60 days or less and a weighted average life of 120 days or less. TexPool has a redemption notice period
of one day and investors may redeem daily. TexPool's authority may only impose restrictions on
redemptions in the event of a general suspension of trading on major securities markets, general
banking moratorium, or national state of emergency that affects TexPool's liquidity.
Note 4. Receivables
The following comprise receivable balances of the primary government as of September 30, 2019:
General Capital Projects
Debt Service
Fund
Nonmajor
Governmental Utility Fund
Property taxes 95,299$ -$ 36,320$ -$ -$
Sales taxes 314,099 - - - 8,588
Accounts 155,155 - - 21,115 1,538,503
Interest 2,442 16,346 - - 16,820
Less: Allowance - - - - (243,156)
Totals 566,995$ 16,346$ 36,320$ 21,115$ 1,320,755$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
43
Note 5. Capital Assets
The following is a summary of changes in capital assets for governmental activities for the year ended
September 30, 2019:
Beginning Ending
Balance Additions Dispositions Balance
Governmental activities:
Capital assets, not being depreciated:
Land 2,610,951$ 1,367,350$ (3,958)$ -$ 3,974,343$
Construction in progress 675,430 3,231,351 - (506,838) 3,399,943
Total capital assets, not being depreciated 3,286,381 4,598,701 (3,958) (506,838) 7,374,286
Depreciable assets:
Park improvements 5,712,526 43,449 - 177,860 5,933,835
Buildings 1,542,758 - - - 1,542,758
Furniture and fixtures 26,541 7,370 - - 33,911
Streets and drainage 33,359,745 5,258,404 - 328,978 38,947,127
Machinery and equipment 3,246,243 759,552 (180,713) - 3,825,082
Total depreciable assets 43,887,813 6,068,775 (180,713) 506,838 50,282,713
Less accumulated depreciation for:
Park improvements 2,043,493 294,127 - - 2,337,620
Buildings 493,984 82,499 - - 576,483
Furniture and fixtures 26,841 238 - - 27,079
Streets and drainage 10,337,685 1,872,809 - - 12,210,494
Machinery and equipment 2,068,148 336,158 (107,973) - 2,296,333
Total accumulated depreciation 14,970,151 2,585,831 (107,973) - 17,448,009
Total depreciable assets, net 28,917,662 3,482,944 (72,740) 506,838 32,834,704
Governmental activities capital assets, net 32,204,043$ 8,081,645$ (76,698)$ -$ 40,208,990$
Adjustments /
Transfers
Depreciation expense was charged to governmental functions as follows:
Governmental activities:
General government 30,359$
Culture and recreation 358,171
Community services 2,845
Public safety 255,413
Public works 1,939,043
Total governmental activities depreciation expense 2,585,831$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
44
The following is a summary of changes in capital assets for business-type activities for the year ended
September 30, 2019:
Beginning Ending
Balance Additions Dispositions Balance
Business-type activities:
Capital assets, not being depreciated:
Land 1,045,097$ 13,000$ (1,470)$ -$ 1,056,627$
Construction in progress 2,512,531 973,101 - (2,428,363) 1,057,269
Total capital assets, not being depreciated 3,557,628 986,101 (1,470) (2,428,363) 2,113,896
Depreciable assets:
Furniture and fixtures 5,620 - - - 5,620
Buildings and improvements 486,244 - - - 486,244
Machinery and equipment 1,824,049 104,956 - - 1,929,005
Water treatment system 13,351,529 1,591,971 - - 14,943,500
GTUA water improvements 17,185,804 3,375 - - 17,189,179
GTUA sewer improvements 939,796 - - - 939,796
Water and sewer system 27,841,981 1,184,792 - 2,428,363 31,455,136
Total depreciable assets 61,635,023 2,885,094 - 2,428,363 66,948,480
Less accumulated depreciation for:
Furniture and fixtures 5,620 - - - 5,620
Buildings and improvements 194,756 23,567 - - 218,323
Machinery and equipment 1,212,882 196,081 - - 1,408,963
Water treatment system 2,953,812 409,975 - - 3,363,787
GTUA water improvements 4,537,322 556,200 - - 5,093,522
GTUA sewer improvements 237,186 26,851 - - 264,037
Water and sewer system 6,123,895 969,670 - - 7,093,565
Total accumulated depreciation 15,265,473 2,182,344 - - 17,447,817
Total depreciable assets, net 46,369,550 702,750 - 2,428,363 49,500,663
Business-type activities capital assets, net 49,927,178$ 1,688,851$ (1,470)$ -$ 51,614,559$
Adjustments /
Transfers
Depreciation expense was charged to business-type functions as follows:
Water and sewer 2,182,344$
Total business-type activities depreciation expense 2,182,344$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
45
The following is a summary of changes in capital assets for component units for the year ended
September 30, 2019:
Beginning Ending
Balance Additions Dispositions Balance
Community Development Corporation:
Capital assets, not being depreciated:
Land 2,757,904$ -$ -$ 2,757,904$
Total capital assets, not being depreciated 2,757,904 - - 2,757,904
Community Development Corporation capital assets, net 2,757,904$ -$ -$ 2,757,904$
Beginning Ending
Balance Additions Dispositions Balance
Economic Development Corporation:
Capital assets, not being depreciated:
Land 96,914$ -$ (6,568)$ 90,346$
Total capital assets, not being depreciated 96,914 - (6,568) 90,346
Depreciable assets:
Buildings and improvements 366,589 - - 366,589
Furniture and fixtures 13,871 - - 13,871
Total depreciable assets 380,460 - - 380,460
Less accumulated depreciation for:
Buildings and improvements 111,504 18,329 - 129,833
Furniture and fixtures 2,402 1,387 - 3,789
Total accumulated depreciation 113,906 19,716 - 133,622
Total depreciable assets, net 266,554 (19,716) - 246,838
Economic Development Corporation capital assets, net 363,468$ (19,716)$ (6,568)$ 337,184$
Remaining commitments under related construction contracts for general government and utility
construction projects at year end were as follows:
Approved Stored and
Opinion Construction Completed Remaining
Projects Unit Budget To Date Commitment
City Hall Municpal Complex General government 27,340,952$ 1,547,981$ 25,792,971$
Rosamund Parkway Extension General government 696,500 248,385 448,115
East Fork Regional Sewer Utility Fund 973,257 546,357 426,900
E/W Collector Water Line Utility Fund 373,633 54,630 319,003
Total 29,384,342$ 2,397,353$ 26,986,989$
The remaining commitments above will be primarily financed through completion of construction with
the resources of the capital projects funds, supplemented by the general fund and issuance of debt, as
needed.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
46
Note 6. Long-term Liabilities
The following is a summary of changes in the City's total long-term liabilities for the year ended
September 30, 2019. In general, the City uses the general and debt service funds to liquidate
governmental long-term liabilities.
Amounts
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds, notes and other payables:
General obligation bonds 2,018,000$ -$ (96,000)$ 1,922,000$ 107,000$
Certificates of obligation 30,910,000 - (90,000) 30,820,000 200,000
Combination tax and revenue refunding bonds 800,000 - (185,000) 615,000 190,000
Capital lease payable - 485,068 (55,851) 429,217 40,791
Unamortized premiums 1,517,551 - (84,340) 1,433,211 -
Total bonds, notes and other payables, net 35,245,551 485,068 (511,191) 35,219,428 537,791
Other liabilities:
Compensated absences 198,132 142,464 (126,429) 214,167 -
Net pension liability 533,341 1,131,410 (687,502) 977,249 -
Other postemployment benefit liability 42,437 7,657 (6,722) 43,372 -
Total governmental activities 36,019,461$ 1,766,599$ (1,331,844)$ 36,454,216$ 537,791$
Amounts
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Business-type activities:
Bonds, notes and other payables:
Contract revenue bonds 3,723,750$ -$ (277,083)$ 3,446,667$ 286,250$
TWDB participation agreement 2,168,750 - - 2,168,750 -
Combination tax and revenue certificates of obligation 7,855,000 - (160,000) 7,695,000 160,000
Combination tax and revenue refunding bonds 8,697,000 - (575,000) 8,122,000 590,000
Capital leases 1,217,631 - (123,060) 1,094,571 127,323
Unamortized premiums (discounts)643,354 - (72,331) 571,023 -
Total bonds, notes and other payables, net 24,305,485 - (1,207,474) 23,098,011 1,163,573
Other liabilities:
Compensated absences 38,588 35,006 (25,675) 47,919 -
Net pension liability 168,423 364,297 (220,000) 312,720 -
Other postemployment benefit liability 13,401 2,629 (2,151) 13,879 -
Total business-type activities 24,525,897$ 401,932$ (1,455,300)$ 23,472,529$ 1,163,573$
Amounts
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Component Units - CDC:
Bonds, notes and other payables:
Sales tax revenue bonds 3,295,000$ -$ (210,000)$ 3,085,000$ 215,000$
Other liabilities:
Net pension liability - 22,196 (9,166) 13,030 -
Other postemployment benefit liability - 668 (90) 578 -
Total component units 3,295,000$ 22,864$ (219,256)$ 3,098,608$ 215,000$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
47
Long-term liabilities applicable to the City's governmental activities are not due and payable in the
current period and, accordingly, are not reported as fund liabilities in the governmental funds. The
governmental activities compensated absences, OPEB liability, and net pension liability are generally
liquidated by the general fund. Interest on long-term debt is not accrued in governmental funds, but
rather is recognized as an expenditure when due.
Long-term debt at year end was comprised of the following debt issues:
Interest
Description Rates Balance
Governmental activities:
General obligation refunding bonds
Series 2014B 0.30 - 2.40 %1,278,000$
Series 2016 1.90 - 4.50 %644,000
Total general obligation bonds 1,922,000
Certificates of obligation
Series 2018 3.00 - 4.00 %30,820,000
Total certificates of obligation 30,820,000
Combination tax and revenue refunding bonds
Series 2017 2.00 - 4.00 %615,000
Total certificates of obligation 615,000
Total governmental activities long-term debt 33,357,000$
Business-type activities:
Contract revenue and revenue refunding bonds
Series 2006 GTUA Contract Revenue Bonds (12 &15) 2.95 - 3.75 %925,000$
2007 GTUA Contract 2.95 - 4.10 %1,275,000
CGMA Pipeline Project Phase I 2.29 - 5.74 %370,417
CGMA Pipeline Project Phase III 2.67 - 5.62 %876,250
Total contract revenue and revenue refunding bonds 3,446,667
TWDB state participation agreement
CGMA Pipeline Project Phase II 5.68 - 5.83 %2,168,750
Total TWDB state participation agreement 2,168,750
Combination tax & revenue certificates of obligation
Series 2012 1.50 - 2.50 %3,805,000
Series 2014 2.00 - 2.65 %3,890,000
Total combination tax & revenue certificates of obligation 7,695,000
Combination tax and revenue refunding bonds
Series 2014A 2.11%2,107,000
Series 2017 2.00 - 4.00 %6,015,000
Total combination tax and revenue refunding bonds 8,122,000
Capital Leases
2017 AMI Meters 2.00%1,094,571
Total capital leases 1,094,571
Total business-type activities long-term debt 22,526,988$
Component units:
Sales Tax Revenue Bonds
CDC - Sales Tax Revenue Bonds - Series 2012B 3.30%1,470,000$
CDC - Sales Tax Revenue Bonds - Series 2016 1.9% - 4.5%1,615,000
Total CDC long-term debt 3,085,000$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
48
The annual requirements to amortize general obligation bonds, certificates of obligation outstanding,
and sales tax revenue bonds at year end were as follows:
Year Ending
September 30,Principal Interest Principal Interest Principal I nterest
2020 107,000$ 38,782$ 200,000$ 1,263,550$ 190,000$ 20,800$
2021 259,000 35,538 195,000 1,256,625 50,000 16,000
2022 265,000 30,689 215,000 1,250,475 40,000 14,200
2023 285,000 25,189 215,000 1,242,950 35,000 12,700
2024 286,000 19,112 235,000 1,233,950 35,000 11,300
2025-2029 720,000 19,139 2,100,000 5,956,050 265,000 31,700
2030-2034 - - 6,075,000 4,968,325 - -
2035-2039 - - 7,140,000 3,602,000 - -
2040-2044 - - 7,380,000 2,174,600 - -
2045-2048 - - 7,065,000 579,500 - -
Totals 1,922,000$ 168,449$ 30,820,000$ 23,528,025$ 615,000$ 106,700$
Governmental Activities
GO Bonds CO Bonds Combination Tax and Revenue
Year Ending
September 30,Principal Interest Principal Interest Principal Interest
2020 286,250$ 152,647$ -$ 125,206$ 160,000$ 226,888$
2021 298,750 141,401 - 125,206 170,000 223,388
2022 306,250 129,434 - 125,206 170,000 219,588
2023 320,000 117,005 - 125,206 175,000 215,300
2024 332,500 103,924 - 125,206 210,000 210,000
2025-2029 1,288,750 307,756 413,750 413,750 2,955,000 857,214
2030-2034 416,250 117,491 666,250 435,602 3,855,000 281,569
2035-2039 201,250 11,485 881,250 881,250 - -
2040 - - 207,500 12,097 - -
Totals 3,450,000$ 1,081,143$ 2,168,750$ 2,368,729$ 7,695,000$ 2,233,947$
Year Ending
September 30,Principal Interest
2020 590,000$ 296,481$
2021 607,000 276,714
2022 635,000 255,300
2023 654,000 232,313
2024 649,000 208,528
2025-2029 2,452,000 738,528
2030-2033 2,535,000 205,900
Totals 8,122,000$ 2,213,764$
Combination Tax and Revenue
TWDB State Participation Combination Tax and Revenue
Certificates of ObligationAgreementContract Revenue Bonds
Business-type Activities
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
49
Year Ending
September 30,Principal Interest
2020 215,000$ 110,876$
2021 225,000 104,250
2022 160,000 167,463
2023 100,000 226,660
2024 115,000 211,080
2025-2029 855,000 781,463
2030-2033 1,015,000 249,300
2034-2037 400,000 27,675
Totals 3,085,000$ 1,878,767$
Combination Tax and Revenue
Contractual Obligations with Greater Texoma Utility Authority
Under the terms of long term water supply and sewer service contracts between the City and Greater
Texoma Utility Authority (GTUA), the City recognizes that GTUA has an undivided ownership interest in
the City's water system and sewer collection and treatment facility equivalent to the percentage of the
total cost of the facility provided by GTUA through the issuance of GTUA bonds.
The City has a contractual obligation to make payments specified by the contract to GTUA to pay the
principal and interest on the bonds, maintain a Reserve Fund for the security and payment of bonds
similarly secured, pay the administrative and overhead expenses of GTUA directly attributable to the
bonds, and pay any extraordinary expenses incurred by GTUA in connection with the bonds. Under
terms of the contracts the City's obligation to make payments to GTUA, as well as GTUA's ownership
interest in the facilities terminates, when all of GTUA's bonds issued in connection with construction of
the facilities have been paid in full, are retired, and are no longer outstanding.
Collin Grayson Municipal Alliance Transmission Water Pipeline
In 2004, the City, along with the City of Van Alstyne, Howe, and Melissa, formed a group called the
Collin Grayson Municipal Alliance ("CGMA"). CGMA entered into a long-term contractual obligation
with GTUA for the purpose of providing funds for the construction of a transmission water pipeline that
will provide water to CGMA cities. The cost of the pipeline is being funded in four phases.
Each CMGA city was required to make payments to GTUA in an amount equivalent to 25% of the total
obligation to cover their portion of the cost of the obligation until the pipeline project was completed.
As water continues to flow to each CGMA city, the City shall be charged it's percentage or fraction
share of debt service on the obligation based upon the amount of water to be paid by the City under
its water contract (i.e. the greater of its minimum take-or-pay amount or the actual amount of water
taken) divided by the total amount of water to be paid by all CGMA cities. The sum of the four (4)
fractional amounts shall always equal 100% of the debt service on the contractual obligation with
GTUA. The billing rates for each City will be calculated to provide funds necessary to cover the
contractual obligation, interest, repairs, maintenance, and production costs.
At the end of the contractual obligation with GTUA, the City will own an undivided interest in the
transmission water pipeline based on the percentage of water it utilized and paid for during the
contract term. The contract will expire and the transfer of ownership will occur during the fiscal year
ended September 30, 2040, as long as no new debt is issued.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
50
Capital Leases
On October 9, 2018, the City entered into a new lease agreement as lessee for financing the acquisition
of a fire apparatus which is payable from the general fund. This lease agreement qualifies as a capital
lease for accounting purposes and, therefore, has been recorded at the present value of their future
minimum lease payments as of the inception date.
On November 28, 2016, the City entered into a capital lease to finance the acquisition of water meters
which is payable from the utility fund.
The assets acquired through the capital leases as of September 30, 2019 are as follows:
Governmental Business-type
Activities Activities
Assets:
Fire apparatus 485,068$ -$
Water meters - 1,340,010
Less: Accumulated depreciation (38,407) (268,002)
Total 446,661$ 1,072,008$
The future minimum lease obligations and the net present value of these minimum lease payments as of
September 30, 2019 are as follows:
Year Ending Governmental Business-type
September 30,Activities Activities
2020 57,359$ 149,179$
2021 57,359 149,179
2022 57,359 149,179
2023 57,359 149,179
2024 57,359 149,179
2025-2028 229,436 449,300
Total minimum future lease payments 516,231 1,195,195
Less: amount representing interest (87,014) (100,624)
Present value of minimum lease payments 429,217$ 1,094,571$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
51
Note 7. Interfund Balances and Activity
1. Interfund Receivables and Payables
Interfund receivables and payables of the various funds at September 30, 2019 were as follows:
Interfund Interfund
Receivables Payables
General Fund 727,195$ -$
Capital Projects Fund - 605,859
Nonmajor Funds - 121,336
Totals 727,195$ 727,195$
Interfund balances consist of short-term lending/borrowing arrangements that have resulted primarily
from expenditures that are paid by one fund and then charged back to the appropriate other fund.
Additionally, some lending/borrowing may occur between two or more governmental funds due to
earned revenues not being received from outside agencies until the subsequent year.
2. Interfund Transfers
Transfers between funds during the year were as follows:
Transfers Out Transfers In Amounts
General Fund Nonmajor Funds 33,522$
Capital Projects Fund Utility Fund 48,542
Nonmajor Funds Capital Projects Fund 88,115
Totals 170,179$
Transfers to the special revenue fund were for year-end budgeted transfers to the grant fund. Transfers
to the utility fund were for utility relocations for the new City Hall building. Transfers to the capital project
fund were for the road project.
Note 8. Other Information
A. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters for which the City participates along with approximately 2,800
other entities in the Texas Municipal League's Intergovernmental Risk Pools (the "Pool"). The Pool
purchases commercial insurance at group rates for participants in the Pool. The City has no additional
risk or responsibility to the Pool, outside of the payment of insurance premiums. The City has not
significantly reduced insurance coverage or had settlements that exceeded coverage amounts for the
past three years.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
52
Note 9. Defined Benefit Pension Plan
Plan Description
The City participates in one of 887 plans in the nontraditional, joint contributory, hybrid defined benefit
pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency
created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8,
Texas Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal
employees in the State of Texas. The TMRS Act places the general administration and management of
the System with a six-member Board of Trustees. Although the Governor, with the advice and consent of
the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS’s defined
benefit pension plan is a tax-qualified plan under Section 401(a) of the Internal Revenue Code. TMRS
issues a publicly available comprehensive annual financial report (CAFR) that can be obtained at
www.tmrs.com.
All eligible employees of the City are required to participate in TMRS.
Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the
governing body of the City, within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, and
the city-financed monetary credits with interest were used to purchase an annuity. Members may
choose to receive their retirement benefit in one of seven payments options. Members may also choose
to receive a portion of their benefit as a partial lump sum distribution in an amount equal to 12, 24, or 36
monthly payments, which cannot exceed 75% of the member’s deposits and interest.
The plan provisions are adopted by City were as follows:
2018 2017
Employee deposit rate 7.00%7.00%
Matching ratio (City to employee)2 to 1 2 to 1
Years required for vesting 5 5
Service requirement eligibility
(expresed as age/years of service)60/5, 0/20 60/5, 0/20
Updated service credit 100% Repeating, 100% Repeating,
Transfers Transfers
Annuity increase (to retirees)70% of CPI Repeating 70% of CPI Repeating
Employees Covered by Benefit Terms
At the December 31, 2018 valuation and measurement date, the following employees were covered by
the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 10
I nactive employees entitled to but not yet receiving benefits 40
Active employees 76
Total 126
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
53
Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and
the City matching percentages are either 100%, 150%, or 200%, both as adopted by the governing
body of the City. Under the state law governing TMRS, the contribution rate for each city is determined
annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially
determined rate is the estimated amount necessary to finance the cost of benefits earned by
employees during the year, with an additional amount to finance any unfunded accrued liability.
Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal
year. The contribution rates for the City were 14.27% and 14.67% in calendar years 2018 and 2019,
respectively. The City’s contributions to TMRS for the year ended September 30, 2019, were $701,932,
and were equal to the required contributions.
Net Pension Liability
The City’s Net Pension Liability (NPL) was measured as of December 31, 2017, and the Total Pension
Liability (TPL) used to calculate the NPL was determined by an actuarial valuation as of that date.
Actuarial Assumptions
The total pension liability in the December 31, 2018 actuarial valuation was determined using the
following actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 3.0% per year
I nvestment rate of return 6.75%, net of pension plan investment expense, including infla
Salary increases were based on a service-related table. Mortality rates for active members, retirees, and
beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Table, with Blue
Collar Adjustment, with male rates multiplied by 109% and female rates multiplied by 103%. Based on
the size of the City, rates are multiplied by an additional factor of 100%. The rates are projected on a
fully generational basis by scale BB to account for future mortality improvements. For disabled
annuitants, the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment
are used with males rates multiplied by 109% and female rates multiplied by 103%. Based on the size of
the City, rates are multiplied by an additional factor of 100%. The rates are projected on a fully
generational basis by scale BB to account for future mortality improvements.
The actuarial assumptions were developed primarily from the actuarial investigation of the experience
of TMRS over the four year period from December 31, 2010 to December 31, 2014. They were adopted
in 2015 and first used in the December 31, 2015 actuarial valuation. The post-retirement mortality
assumption for healthy annuitants and Annuity Purchase Rate (APRs) are based on the Mortality
Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. In
conjunction with these changes first used in the December 31, 2013 valuation, the TMRS system
adopted the Entry Age Normal actuarial cost method and a one-time change to the amortization
policy. Plan assets are managed on a total return basis with an emphasis on both capital appreciation
as well as the production of income, in order to satisfy the short-term and long-term funding needs of
TMRS.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
54
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best estimate ranges of expected future real rates of return (expected returns,
net of pension plan investment expense and inflation) are developed for each major asset class. These
ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
In determining their best estimate of a recommended investment return assumption under the various
alternative asset allocation portfolios, the actuary focused on the area between (1) arithmetic mean
(aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative)
with an adjustment for time (aggressive). The target allocation and best estimates of arithmetic real
rates of return for each major asset class are summarized in the following table:
Long-term
Expected Real
Target Rate of Return
Asset Class Allocation (Arithmetic)
Domestic equity 17.5% 4.30%
International equity 17.5% 6.10%
Core fixed income 10.0% 1.00%
Non-core fixed income 20.0% 3.39%
Real return 10.0% 3.78%
Real estate 10.0% 4.44%
Absolute return 10.0% 356.00%
Private equity 5.0% 7.75%
Total 100%
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows
used to determine the discount rate assumed that employee and employer contributions will be made
at the rates specified in statute. Based on that assumption, the pension plan’s fiduciary net position was
projected to be available to make all projected future benefit payments of current active and inactive
employees. Therefore, the long-term expected rate of return on pension plan investments was applied
to all periods of projected benefit payments to determine the Total Pension Liability.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
55
Changes in Net Pension Liability
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a)(b)(a) - (b)
Balance at December 31, 2017 6,556,473$ 5,854,709$ 701,764$
Changes for the year:
Service cost 860,365 - 860,365
Interest 464,692 - 464,692
Change of benefit terms - - -
Difference between expected and actual
experience 13,331 - 13,331
Changes of assumptions - - -
Contributions - employer - 618,080 (618,080)
Contributions - employee - 298,589 (298,589)
Net investment income - (175,951) 175,951
Benefit payments, including refunds of employee
contributions (204,657) (204,657) -
Administrative expense - (3,389) 3,389
Other changes - (176) 176
Net changes 1,133,731 532,496 601,235
Balance at December 31, 2018 7,690,204$ 6,387,205$ 1,302,999$
Increase (Decrease)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the NPL of the City, calculated using the discount rate of 6.75%, as well as what
the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-
point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate:
1% Decrease in 1% Increase in
Discount Rate
(5.75%)
Discount Rate
(6.75%)
Discount Rate
(7.75%)
Net pension liability 2,687,484$ 1,302,999$ 202,800$
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in a separately-issued
TMRS financial report. That report may be obtained on the Internet at www.tmrs.com.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
56
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
For the year ended September 30, 2019, the City recognized pension expense of $691,663.
At September 30, 2019, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and
actual economic experience 11,098$ 143,926$
Changes in actuarial assumptions 8,309 -
Difference between projected and
actual investment earnings 304,418 -
Contributions subsequent to the
measurement date 540,174 -
Totals 863,999$ 143,926$
$540,173 reported as deferred outflows of resources related to pensions resulting from contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability for
the year ending September 30, 2020. Other amounts reported as deferred outflows and inflows of
resources related to pensions will be recognized in pension expense as follows:
Year Ending
December 31,
2019 49,451$
2020 3,828
2021 20,130
2022 106,493
2023 (3)
Totals 179,899$
Note 10. Other Postemployment Benefits Plan
Plan Description
Texas Municipal Retirement System (TMRS) administers a defined benefit group-term life insurance plan
known as the Supplemental Death Benefits Fund (SDBF). This is a voluntary program in which
participating member cities may elect, by ordinance, to provide group-term life insurance coverage for
their active members, including or not including retirees. Employers may terminate coverage under and
discontinue participation in the SDBF by adopting an ordinance before November 1 of any year to be
effective the following January 1. The City has elected to participate in the SDBF for its active members
including retirees. As the SDBF covers both active and retiree participants, with no segregation of assets,
the SDBF is considered to be an unfunded single-employer OPEB plan (i.e. no assets are accumulated in
a trust that meets the criteria in paragraph 4 of GASB Statement No. 75) for City reporting.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
57
Benefits Provided
The death benefit for active employees provides a lump-sum payment approximately equal to the
employee’s annual salary (calculated based on the employee’s actual earnings, for the 12-month
period preceding the month of death). The death benefit for retirees is considered an other
postemployment benefit (OPEB) and is a fixed amount of $7,500.
At the December 31, 2018 valuation and measurement date, the following employees were covered by
the benefit terms:
Inactive employees currently receiving benefits 6
Inactive employees entitled to but not yet receiving benefit 5
Active employees 76
Total 87
Contributions
The member city contributes to the SDBF at a contractually required rate as determined by an annual
actuarial valuation. The rate is equal to the cost of providing one-year term life insurance. The funding
policy for the SDBF program is to assure that adequate resources are available to meet all death
benefit payments for the upcoming year. The intent is not to pre-fund retiree term life insurance during
employees’ entire careers.
Contributions are made monthly based on the covered payroll of employee members of the
participating member city. The contractually required contribution rate is determined annually for each
city. The rate is based on the mortality and service experience of all employees covered by the SDBF
and the demographics specific to the workforce of the city.
There is a one-year delay between the actuarial valuation that serves as the basis for the employer
contribution rate and the calendar year when the rate goes into effect. The funding policy of this plan is
to assure that adequate resources are available to meet all death benefit payments for the upcoming
year.
The retiree portion of contribution rates to the SDBF for the City was 0.00% and 0.01% in calendar years
2018 and 2019 respectively. The City’s contributions to the SDBF for the year ended September 30, 2019
were $6,238, and were equal to the required contributions.
Total OPEB Liability
The City’s Total OPEB Liability was measured as of December 31, 2018 and was determined by an
actuarial valuation as of that date.
Actuarial Assumptions
The Total OPEB Liability In the December 31, 2018 actuarial valuation was determined using the
following actuarial assumptions:
Inflation 2.5% per year
Salary increases 3.5% to 10.5% including inflation
Discount rate 3.71%
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
58
Salary increases were based on a service-related table. Mortality rates for service retirees were based
on the RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates multiplied by 109%
and female rates multiplied by 103% and projected on a fully generational basis with scale BB. Mortality
rates for disabled retirees were based on the RP2000 Combined Mortality Table with Blue Collar
Adjustment with male rates multiplied by 109% and female rates multiplied by 103%. Based on the size of
the City, rates are multiplied by an additional factor of 100.0%. The rates are projected on a fully
generational basis by scale BB to account for future mortality improvements.
The actuarial assumptions used in the December 31, 2018,valuation were developed primarily from an
actuarial experience study of the four-year period from December 31, 2010 through December 31,
2014. The post-mortality assumption for healthy annuitants and Annuity Purchase Rate (APRs) are based
on the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31,
2013. In conjunction with these changes first used in the December 31, 2013 valuation, TMRS adopted
the Entry Age Normal Actuarial Cost Method.
The discount rate (3.71%) was based on the Fidelity Index’s “20-Year Municipal GO AA Index” rate as of
December 31, 2018.
Changes in Total OPEB Liability
Total OPEB
Liability
Balance at December 31, 2017 55,838$
Changes for the year:
Service cost 8,958
Interest on Total OPEB Liability 1,996
Change of benefit terms -
Difference between expected and actual experience (3,622)
Changes of assumptions or other inputs (5,341)
Benefit payments -
Net changes 1,991
Balance at December 31, 2018 57,829$
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability, calculated using the discount rate of 3.71%, as well as
what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1
percentage-point lower (2.31%) or 1 percentage-point higher (4.31%) than the current rate:
1% Decrease in 1% Increase in
Discount Rate
(2.71%)
Discount Rate
(3.71%)
Discount Rate
(4.71%)
72,416$ 57,829$ 46,777$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Notes to Financial Statements
59
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended September 30, 2019, the City recognized OPEB expense of $10,541.
At September 30, 2019, the City reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected
and actual experience -$ 3,210$
Changes in actuarial assumptions
and other inputs 4,120 4,732
Contributions made subsequent
to the measurement date 4,787 -
Totals 8,907$ 7,942$
The $4,787 reported as deferred outflows of resources resulting from contributions subsequent to the
measurement date will reduce the Total OPEB liability during the year ending September 30, 2020. The
other amounts reported as deferred outflows and inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Year Ending
December 31,
2019 (413)$
2020 (413)
2021 (413)
2022 (413)
2023 (413)
Thereafter (1,757)
Totals (3,822)$
Note 11. Villages of Hurricane Creek Public Improvement District
On November 13, 2018, the City of Anna City Council approved Ordinance No. 2018-01-506 authorizing
the creation of a Public Improvement District. The Hurricane Creek Public Improvement District consists
of approximately 368.20 acres within the jurisdictions of the City. This district was created in accordance
with Chapter 372.003 of the Texas Local Government Code, as amended.
On March 28, 2019 the City of Anna City Council approved the issuance and sale of two Special
Assessment Revenue Bonds in the amounts of $7,735,000 and $3,535,000 known as Hurricane Creek
Public Improvement District Improvement Area #1 Project and Hurricane Creeks Public Improvement
District Improvement Major Improvement Area Project, respectively. These bonds were authorized in
order to finance the projects benefiting the entire Hurricane Creek Public Improvement District including
certain roadway, water, sewer, and drainage improvements.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
60
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
61
Required Supplementary Information
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Schedule of Revenues, Expenditures, and Changes
in Fund Balance – Budget and Actual
General Fund
For the Year Ended September 30, 2019
62
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
REVENUES
Property taxes 4,774,602$ 4,774,602$ 4,876,783$ 102,181$
Sales taxes 1,645,698 1,645,698 1,835,421 189,723
Charges for services 103,220 103,220 145,592 42,372
License and permits 724,000 1,088,260 1,334,823 246,563
Franchise and local taxes 510,200 510,200 612,332 102,132
Investment income 55,000 55,000 138,658 83,658
Other revenues 28,450 28,450 41,749 13,299
Intergovernmental 95,273 95,273 93,190 (2,083)
Fines and forfeitures 52,500 52,500 87,431 34,931
Contributions and donations 2,000 2,000 7,425 5,425
Total revenues 7,990,943 8,355,203 9,173,404 818,201
EXPENDITURES
Current:
General government 2,006,211 2,016,288 1,918,254 98,034
Culture and recreation 512,523 512,523 472,605 39,918
Community services 854,646 1,125,212 1,286,794 (161,582)
Public safety 3,971,470 3,960,426 3,574,722 385,704
Public works 746,498 702,417 636,515 65,902
Debt service
Principal 55,851 55,851 55,851 -
Interest and fiscal charges 1,508 1,508 1,508 -
Capital outlay 187,500 672,568 660,043 12,525
Total expenditures 8,336,207 9,046,793 8,606,292 440,501
Excess (deficiency) of revenues
over (under) expenditures (345,264) (691,590) 567,112 1,258,702
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 3,000 3,000 209,000 206,000
Transfers in 375,118 375,118 - (375,118)
Transfers out (32,854) (33,522) (33,522) -
Capital lease - 485,068 485,068 -
Total other financing sources (uses 345,264 829,664 660,546 (169,118)
Net change in fund balance - 138,074 1,227,658 1,089,584
Beginning fund balance 4,713,766 4,713,766 4,713,766 -
ENDING FUND BALANCE 4,713,766$ 4,851,840$ 5,941,424$ 1,089,584$
Notes to Schedule
1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP)
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Schedule of Changes in the Net Pension Liability
and Related Ratios – TMRS
Last Five Measurement Periods
63
2018 2017 2016 2015 2014
TOTAL PENSION LIABILITY
Service cost 860,365$ 698,771$ 608,067$ 527,867$ 429,268$
Interest 464,692 398,225 343,924 309,015 277,884
Changes of benefit terms - - - - -
Differences between expected
and actual experience 13,331 (9,109) (60,518) (110,141) (173,824)
Change of assumptions - - - 19,349 -
Benefit payments, including refunds
of employee contributions (204,657) (163,326) (101,394) (109,637) (166,160)
Net change in total pension liability 1,133,731 924,561 790,079 636,453 367,168
Total pension liability - beginning 6,556,473 5,631,912 4,841,833 4,205,380 3,838,212
TOTAL PENSION LIABILITY - ENDING (a)7,690,204$ 6,556,473$ 5,631,912$ 4,841,833$ 4,205,380$
PLAN FIDUCIARY NET POSITION
Contributions - employer 618,080$ 516,066$ 442,230$ 386,733$ 270,279$
Contributions - employee 298,589 249,306 217,388 194,478 170,293
Net investment income (loss)(175,951) 641,130 257,535 4,915 165,488
Benefit payments, including refunds
of employee contributions (204,657) (163,326) (101,394) (109,637) (166,160)
Administrative expense (3,389) (3,315) (2,902) (2,992) (1,727)
Other (176) (169) (156) (148) (142)
Net change in plan fiduciary net position 532,496 1,239,692 812,701 473,349 438,031
Plan fiduciary net position - beginning 5,854,709 4,615,017 3,802,316 3,328,967 2,890,936
PLAN FIDUCIARY NET POSITION - ENDING (b)6,387,205$ 5,854,709$ 4,615,017$ 3,802,316$ 3,328,967$
NET PENSION LIABILITY - ENDING (a)-(b)1,302,999$ 701,764$ 1,016,895$ 1,039,517$ 876,413$
Plan fiduciary net position as a
percentage of total pension liability 83%89%82%79%79%
Covered payroll 4,265,561$ 3,561,515$ 1,194,348$ 2,778,260$ 2,432,756$
Net pension liability as a
percentage of covered payroll 31%20%85%37%36%
Notes to Schedule
1. This schedule is presented to illustrate the requirement to show information for ten years. However, until a
full ten-year trend is compiled, only available information is shown.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Schedule of Employer Contributions to Pension Plan - TMRS
Last Five Fiscal Years
64
2019 2018 2017 2016 2015
Actuarially determined contribution 701,932$ 592,188$ 490,248$ 444,631$ 353,170$
Contributions in relation to the
actuarially determined contribution 701,932 592,188 490,248 444,631 353,170
Contribution deficiency (excess)-$ -$ -$ -$ -$
Covered payroll 4,798,511$ 4,086,822$ 3,396,686$ 3,140,567$ 2,881,090$
Contributions as a percentage of
covered payroll 14.63% 14.49% 14.43% 14.16% 12.26%
Notes to Schedule
1. This schedule is presented to illustrate the requirement to show information for ten years. However, until a full
ten-year trend is compiled, only available information is shown.
2. GASB 68, paragraph 81.2.b requires that the data in this schedule be presented as of the City's fiscal year as
opposed to the time period covered by the measurement date.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Schedule of Changes in Total OPEB
Liability and Related Ratios – TMRS
Last Two Measurement Periods
65
2018 2017
TOTAL OPEB LIABILITY
Service cost 8,958$ 6,767$
Interest (on the Total OPEB Liability)1,996 1,716
Change of benefit terms - -
Differences between expected and actual experience (3,622) -
Changes in assumptions or other imputs (5,341) 5,334
Benefit payments - -
Net change in total OPEB liability 1,991 13,817
Total OPEB liability - beginning 55,838 42,021
TOTAL OPEB LIABILITY - ENDING (a)57,829$ 55,838$
Covered payroll 4,265,563$ 3,561,515$
Total OPEB liability as a percentage of covered payroll 1.36%1.57%
Notes to Schedule
1. This schedule is presented to illustrate the requirement to show information for 10 years. However,
recalculations of prior years are not reported in accordance with the standards of GASB 74/75 and
should not be shown here. Therefore, only years for which the new GASB statements have been
implemented have been shown and ultimately ten years will be presented.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Schedule of OPEB Contributions - TMRS
Last Two Fiscal Years
66
2019 2018
Actuarially determined contribution 6,238$ 4,496$
Contributions in relation to the
actuarially determined contribution 6,238 4,496
Contribution deficiency (excess)-$ -$
Covered payroll 4,798,511 4,086,822
Contributions as a percentage of
covered payroll 0.13%0.11%
Notes to Schedule
1. This schedule is presented to illustrate the requirement to show for 10 years. However, recalculations of p
years are not reported in accordance with the standards of GASB 74/75 and should not be shown here.
Therefore, only years for which the new GASB statements have been implemented will be shown and ul
ten years will be presented.
2. GASB 75 paragraph 57 requires that the data in this schedule be presented as of the City's fiscal year as
opposed to the time period covered by the measurement date.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
67
Combining and Individual Fund
Financial Statements and Schedule
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
68
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
69
Nonmajor Governmental Funds
Special Revenue Funds
Roadway Impact Fee Service Area 1
Accounts for revenue and expenditures from developer impact fees for future strategic
roadway improvements for service area 1.
Roadway Impact Fee Service Area 2
Accounts for revenue and expenditures from developer impact fees for future strategic
roadway improvements for service area 2.
Road Capital Development Agreement Fund
Accounts for negotiated developer agreements for road and street impact fees.
Police Seizure Fund
Accounts for revenues generated from property seized in connection with illegal activity once
the property is forfeited after prosecution that can only be used in accordance with
applicable state and federal laws.
Park Development Fund
Accounts for park development fees from developer agreements or the subdivision ordinance
in support of the City's parks master plan.
Fire Department Capital Improvement Fund
Accounts for voluntary fees negotiated with developers in support of the Anna Fire
Department for fire capital projects.
Grant Fund
Accounts for proceeds and expenditures relating to all grants.
Other Special Revenue Fund
Accounts for all other miscellaneous restricted funds not described in other special revenue
funds.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2019
70
ASSETS
Cash and cash equivalents 768,097$ 535,791$ 550,519$ 3,112$ 1,379,707$
Receivables, net - - - - -
Due from other governments - - - - -
Prepaids - - - - -
Total assets 768,097$ 535,791$ 550,519$ 3,112$ 1,379,707$
LIABILITIES
Accounts payable and other liabilities -$ -$ 88,775$ -$ 186,751$
Accrued salaries - - - - -
Due to other funds - - - - -
Total liabilities - - 88,775 - 186,751
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - grants - - - - -
Total deferred inflows of
resources - - - - -
FUND BALANCES
Nonspendable - - - - -
Restricted for:
Public safety - - - 3,112 -
Capital projects 768,097 535,791 461,744 - 1,192,956
Unassigned - - - - -
Total fund balances 768,097 535,791 461,744 3,112 1,192,956
TOTAL LIABILITIES AND FUND BALANCES 768,097$ 535,791$ 550,519$ 3,112$ 1,379,707$
Roadway
Impact Fee
SVC Area 1
Roadway
Impact Fee
SVC Area 2
Road Capital
Dev. Agr.
Fund
Police Seizure
Fund
Park
Development
Fund
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
71
77,563$ -$ 121,298$ 3,436,087$
- 15,947 5,168 21,115
- 111,518 - 111,518
- 1,000 - 1,000
77,563$ 128,465$ 126,466$ 3,569,720$
2,543$ 3,751$ -$ 281,820$
- 1,940 - 1,940
- 121,336 - 121,336
2,543 127,027 - 405,096
- 112,956 - 112,956
- 112,956 - 112,956
- 1,000 - 1,000
75,020 - 126,466 204,598
- - - 2,958,588
- (112,518) - (112,518)
75,020 (111,518) 126,466 3,051,668
77,563$ 128,465$ 126,466$ 3,569,720$
Total Nonmajor
Governmental
FundsOther Special
Revenue FundGrant Fund
Fire Dept.
Capital Impr.
Fund
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2019
72
REVENUES
Charges for services 331,328$ 297,145$ -$ -$ 900,150$
Investment income 14,274 8,015 10,799 198 23,689
Other revenue - - - 2,400 15,494
Total revenues 345,602 305,160 10,799 2,598 939,333
EXPENDITURES
Current:
Culture and recreation - - - - 46,091
Public safety - - - 10,110 -
Public works 4,142 5,808 - - -
Capital outlay - - - 2,400 403,103
Total expenditures 4,142 5,808 - 12,510 449,194
Excess (deficiency) of revenues
over (under) expenditures 341,460 299,352 10,799 (9,912) 490,139
OTHER FINANCING SOURCES (USES)
Transfers in - - - - -
Transfers out (88,115) - - - -
Proceeds from sale of capital assets - - - 3,608 -
Total other financing (uses)(88,115) - - 3,608 -
Net change in fund balances 253,345 299,352 10,799 (6,304) 490,139
Fund balances, beginning of year 514,752 236,439 450,945 9,416 702,817
FUND BALANCES, END OF YEAR 768,097$ 535,791$ 461,744$ 3,112$ 1,192,956$
Roadway
Impact Fee
SVC Area 1
Roadway
Impact Fee
SVC Area 2
Road Capital
Dev. Agr.
Fund
Police Seizure
Fund
Park
Development
Fund
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
73
38,400$ -$ -$ 1,567,023$
1,392 - 2,350 60,717
- 82,328 24,489 124,711
39,792 82,328 26,839 1,752,451
- - - 46,091
7,906 118,696 10,318 147,030
- - - 9,950
9,568 111,518 - 526,589
17,474 230,214 10,318 729,660
22,318 (147,886) 16,521 1,022,791
- 33,522 - 33,522
- - - (88,115)
- - - 3,608
- 33,522 - (50,985)
22,318 (114,364) 16,521 971,806
52,702 2,846 109,945 2,079,862
75,020$ (111,518)$ 126,466$ 3,051,668$
Other Special
Revenue Fund
Fire Dept.
Capital Impr.
Fund Grant Fund
Total Nonmajor
Governmental
Funds
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Balance Sheet
Community Development Corporation
September 30, 2019
74
Anna Community
Development
Corporation
ASSETS
Cash and cash equivalents 755,946$
Receivables, net 279,769
TOTAL ASSETS 1,035,715$
LIABILITIES
Accounts payable 13,857$
Accrued salaries 1,817
Total liabilities 15,674
DEFERRED INFLOWS OF RESOURCES
Local business loans 41,310
Total deferred inflows of resources 41,310
FUND BALANCES
Restricted for:
Community Development 978,731
Total fund balances 978,731
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES 1,035,715$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Reconciliation of Governmental Funds Balance Sheet
to the Statement of Net Position
Community Development Corporation
September 30, 2019
75
FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 978,731$
Amounts reported for governmental activities in the statement of net position
are different because:
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds.2,757,904
The following deferred outflows of resources and deferred inflows of resources
are not reported in governmental funds:
Deferred outflows of resources - OPEB 89
Deferred outflows of resources - pension 8,640
Deferred inflows of resources - OPEB (79)
Deferred inflows of resources - pension (1,439)
Long-term liabilities, including bonds payable, are not due and payable in the
current period and, therefore, are not reported in the fund financial statements.
Long-term liabilities consist of:
Sales tax revenue bonds (3,085,000)
Accrued interest (14,252)
Total OPEB liability (578)
Net pension liability (13,030)
Unavailable revenues are removed for the statement of net position.41,310
NET POSITION OF GOVERNMENTAL ACTIVITIES 672,296$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Statement of Revenues, Expenditures, and Changes in Fund Balances
Community Development Corporation
For the Year Ended September 30, 2019
76
Anna Community
Development
Corporation
REVENUES
Sales taxes 1,101,253$
Investment income 12,591
Total revenues 1,113,844
EXPENDITURES
Current:
Community and economic development 547,081
Debt service:
Principal retirement 210,000
Interest and fiscal charges 116,883
Total expenditures 873,964
Excess (deficiency) of revenues
over (under) expenditures 239,880
Net change in fund balances 239,880
Fund balance, beginning of year 738,851
Fund balance, end of year 978,731$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
Community Development Corporation
For the Year Ended September 30, 2019
77
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 239,880$
Amounts reported for governmental activities in the statement of activities
are different because:
Current year long-term debt principal payments on tax notes payable are expenditures
in the fund financial statements but are shown as reductions in long-term debt in the
government-wide financial statements.210,000
Some expenses reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental
funds.
Decrease in accrued interest:716
Decrease in accrued compensated absences:2,114
Increase in net pension liability:(5,829)
Increase in total OPEB liability:(568)
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 446,313$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Balance Sheet
Economic Development Corporation
September 30, 2019
78
Anna Economic
Development
Corporation
ASSETS
Cash and cash equivalents 591,617$
Receivables, net 89,476
TOTAL ASSETS 681,093$
LIABILITIES
Accounts payable 3,370$
Total liabilities 3,370
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue:
Local business loans 89,027
Total deferred inflows of resources 89,027
FUND BALANCES
Restricted for:
Economic Development 588,696
Total fund balances 588,696
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES 681,093$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Reconciliation of Governmental Fund Balance Sheet
to the Statement of Net Position
Economic Development Corporation
September 30, 2019
79
FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 588,696$
Amounts reported for governmental activities in the statement of net position
are different because:
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds.337,184
Unavailable revenues are not included in the government-wide financial statements.89,027
NET POSITION OF GOVERNMENTAL ACTIVITIES 1,014,907$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Statement of Revenues, Expenditures, and Changes in Fund Balance
Economic Development Corporation
For the Year Ended September 30, 2019
80
Anna Economic
Development
Corporation
REVENUES
Charges for services 17,045$
Investment income 4,669
Miscellaneous income 27,900
Total revenues 49,614
EXPENDITURES
Current:
Community and economic development 50,966
Total expenditures 50,966
Excess (deficiency) of revenues
over (under) expenditures (1,352)
Other Financing Sources (Uses)
Proceeds from the sale of capital assets 378,493
Total other financing sources (uses)378,493
Net change in fund balances 377,141
Fund balance, beginning of year 211,555
Fund balance, end of year 588,696$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balance of the Governmental Fund to the Statement of Activities
Economic Development Corporation
For the Year Ended September 30, 2019
81
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 377,141$
Amounts reported for governmental activities in the statement
of activities are different because:
Depreciation is not recognized as an expense in governmental funds since it
does not require the use of current financial resources (19,717)
In the governmental fund financial statements, the proceeds from sale of assets
are shown as an increase in financial resources. However, in the statement
of activities, a loss from the transaction is reported (6,568)
Various other reclassification and eliminations are necessary to convert from
the modified accrual basis of accounting to accrual basis of accounting. This
includes the change in unavailable revenue from the prior year (2,900)
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 347,956$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Schedule of Revenues, Expenditures, and Changes
In Fund Balances – Budget and Actual
Community Development Corporation
For the Year Ended September 30, 2019
82
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
REVENUES
Sales and use tax 898,227$ 898,227$ 1,101,253$ 203,026$
Investment income 2,474 2,474 12,591 10,117
Total revenues 900,701 900,701 1,113,844 213,143
EXPENDITURES
Current:
Community and economic development 573,818 594,131 547,081 47,050
Debt Service:
Principal retirement 210,000 210,000 210,000 -
Interest and fiscal charges 116,883 116,883 116,883 -
Total expenditures 900,701 921,014 873,964 47,050
Excess (deficiency) of revenues
over (under) expenditures - (20,313) 239,880 260,193
Net change in fund balance - (20,313) 239,880 260,193
Fund balances, beginning of year 738,851 738,851 738,851 -
FUND BALANCES, END OF YEAR 738,851$ 718,538$ 978,731$ 260,193$
Notes to Required Supplementary Information
1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP)
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Statement of Revenues, Expenditures, and Changes
In Fund Balances – Budget and Actual
Economic Development Corporation
For the Year Ended September 30, 2019
83
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
REVENUES
Charges for services - rentals 23,952$ 23,952$ 17,045$ (6,907)$
Investment income 660 660 4,669 4,009
Other income 30,612 30,612 27,900 (2,712)
Total revenues 55,224 55,224 49,614 (5,610)
EXPENDITURES
Current:
Community and economic development 80,250 100,263 50,966 49,297
Total expenditures 80,250 100,263 50,966 49,297
Excess (deficiency) of revenues
over (under) expenditures (25,026) (45,039) (1,352) 43,687
Other Financing Sources (Uses)
Proceeds on the sale of capital assets - - 378,493 378,493
Total other financing sources (uses)- - 378,493 378,493
Net change in fund balance (25,026) (45,039) 377,141 422,180
Fund balances, beginning of year 211,555 211,555 211,555 -
FUND BALANCES, END OF YEAR 186,529$ 166,516$ 588,696$ 422,180$
Notes to Required Supplementary Information
1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP)
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Statement of Revenues, Expenditures, and Changes
In Fund Balances – Budget and Actual
Debt Service Fund
For the Year Ended September 30, 2019
84
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
REVENUES
Property taxes 1,819,909$ 1,819,909$ 1,842,459$ 22,550$
Investment income 8,000 8,000 13,820 5,820
Total revenues 1,827,909 1,827,909 1,856,279 28,370
EXPENDITURES
Principal retirement 371,000 371,000 371,000 -
Interest and fiscal charges 1,678,417 1,678,417 1,677,209 1,208
Total expenditures 2,049,417 2,049,417 2,048,209 1,208
Excess (deficiency) of revenues
over (under) expenditures (221,508) (221,508) (191,930) 29,578
Net change in fund balances (221,508) (221,508) (191,930) 29,578
Fund balances, beginning of year 281,807 281,807 281,807 -
FUND BALANCES, END OF YEAR 60,299$ 60,299$ 89,877$ 29,578$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
85
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
86
Agency Funds
PID Agency Fund
To account for bond proceeds, assessments, and related debt associated with bonds issued
by the City as an agent for the Hurricane Creek public improvement district.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas
Statement of Changes in Assets and Liabilities
PID Agency Fund
For the Year Ended September 30, 2019
87
Balance at Balance at
Beginning End
of Year Additions Deletions of Year
ASSETS
Restricted cash and cash equivalents -$ 2,108,200$ 308,980$ 1,799,220$
Total assets -$ 2,108,200$ 308,980$ 1,799,220$
LIABILITIES
Liability to bond holders -$ 2,108,200$ 308,980$ 1,799,220$
Total liabilities -$ 2,108,200$ 308,980$ 1,799,220$
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
88
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
89
Statistical Section
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
90
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
91
Statistical Section
(Unaudited)
This part of the City's comprehensive annual financial report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and Required
Supplementary Information says about the City's overall financial health.
Tables
Financial Trends 1, 2, 3 & 4
These schedules contain trend information to help the reader understand how the City’s
financial performance and well-being have changed over time.
Revenue Capacity 5, 6, 7 & 8
These schedules contain information to help the reader assess the City’s most significant
local revenue source, property tax.
Debt Capacity 9, 10, 11 & 12
These schedules present information to help the reader assess the affordability of the
City’s current levels of outstanding debt and the City’s ability to issue additional debt in
the future.
Demographic and Economic Information 13 & 14
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take place.
Operating Information 15, 16 & 17
These schedules contain service and infrastructure data to help the reader understand
how the information in the City’s financial report relates to the services the City provides
and the activities it performs.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas Table 1
Net Position by Component
Last Ten Fiscal Years (Unaudited)
(accrual basis of accounting)
92
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
GOVERNMENTAL ACTIVITIES
Net investment in capital assets 4,989,562$ 29,892,142$ 20,398,968$ 13,466,866$ 13,288,789$ 12,463,939$ 11,698,639$ 10,749,210$ 11,048,398$ 10,763,659$
Restricted 469,607 469,607 1,489,057 1,550,067 1,781,301 1,265,399 983,464 444,340 156,274 206,256
Unrestricted 44,958,883 5,793,809 3,844,285 3,052,331 2,073,139 2,272,911 2,427,826 2,338,621 2,636,598 2,611,930
TOTAL GOVERNMENTAL ACTIVITIES NET POSITION 50,418,052$ 36,155,558$ 25,732,310$ 18,069,264$ 17,143,229$ 16,002,249$ 15,109,929$ 13,532,171$ 13,841,270$ 13,581,845$
BUSINESS-TYPE ACTIVITIES
Net investment in capital assets 28,632,597$ 25,064,065$ 17,356,378$ 12,878,858$ 9,150,846$ 7,161,432$ 9,228,796$ 11,584,537$ 11,657,252$ 10,990,672$
Restricted 9,638,637 6,761,991 6,407,402 7,349,941 10,029,856 11,632,410 8,358,837 3,809,923 3,260,968 3,125,129
Unrestricted (deficit)3,364,464 2,855,207 2,930,232 762,189 595,738 642,688 1,470,698 1,233,119 1,352,162 485,641
TOTAL BUSINESS-TYPE ACTIVITIES NET POSITION 41,635,698$ 34,681,263$ 26,694,012$ 20,990,988$ 19,776,440$ 19,436,530$ 19,058,331$ 16,627,579$ 16,270,382$ 14,601,442$
PRIMARY GOVERNMENT
Net investment in capital assets 33,622,159$ 54,956,207$ 37,755,346$ 26,345,724$ 22,439,635$ 19,625,371$ 20,927,435$ 22,333,747$ 22,705,650$ 21,754,331$
Restricted 10,108,244 7,231,598 7,896,459 8,900,008 11,811,157 12,897,809 9,342,301 4,254,263 3,417,242 3,331,385
Unrestricted 48,323,347 8,649,016 6,774,517 3,814,520 2,668,877 2,915,599 3,898,524 3,571,740 3,988,760 3,097,571
TOTAL PRIMARY GOVERNMENT NET POSITION 92,053,750$ 70,836,821$ 52,426,322$ 39,060,252$ 36,919,669$ 35,438,779$ 34,168,260$ 30,159,750$ 30,111,652$ 28,183,287$
Source: Comprehensive Annual Financial Report
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas Table 2
Changes in Net Position
Last Ten Fiscal Years (Unaudited)
(accrual basis of accounting)
93
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
EXPENSES
Governmental activities:
General government 1,954,083$ 1,758,159$ 1,405,085$ 1,393,256$ 1,058,719$ 963,243$ 885,833$ 1,047,147$ 979,107$ 1,091,501$
Culture and recreation 877,455 799,378 665,430 584,676 573,249 432,133 303,607 290,907 264,779 200,431
Community services 1,289,798 810,369 904,227 690,842 558,541 619,465 560,983 530,649 412,775 274,589
Public safety 3,972,445 3,730,871 3,062,333 2,727,997 2,511,931 2,272,660 2,278,515 1,841,980 1,802,720 1,563,583
Public works 4,113,592 2,013,096 1,502,775 1,261,514 1,053,123 954,932 940,941 888,763 853,980 880,894
Interest on long-term debt 2,420,375 670,789 132,433 174,446 316,079 258,663 270,057 196,169 208,551 220,033
Total governmental activities expenses 14,627,748 9,782,662 7,672,283 6,832,731 6,071,642 5,501,096 5,239,936 4,795,615 4,521,912 4,231,031
Business-type activities:
Water and sewer 11,664,343 8,893,526 7,443,593 7,371,352 6,487,099 5,453,831 5,307,272 4,928,084 4,400,065 4,261,246
Total business-type activities expenses 11,664,343 8,893,526 7,443,593 7,371,352 6,487,099 5,453,831 5,307,272 4,928,084 4,400,065 4,261,246
TOTAL PRIMARY GOVERNMENT EXPENSES 26,292,091$ 18,676,188$ 15,115,876$ 14,204,083$ 12,558,741$ 10,954,927$ 10,547,208$ 9,723,699$ 8,921,977$ 8,492,277$
PROGRAM REVENUES
Governmental activities:
Charges for services:
General government 236,673$ 90,890$ 136,465$ 48,181$ 30,000$ 30,000$ 20,839$ 97,951$ 99,065$ 130,824$
Culture and recreation 900,150 315,933 553,511 117,990 63,265 71,905 63,421 10,295 9,798 5,014
Public safety 16,995 94,244 49,950 768,988 218,973 183,533 194,379 69,200 84,134 4,542
Public works 666,873 641,119 382,390 129,914 - - - - - -
Community services 1,314,178 873,397 1,173,516 236,694 748,212 772,501 839,349 743,906 278,051 126,728
Operating grants and contributions 182,943 4,225 351,482 333,948 15,053 11,525 10,531 76,729 52,548 182,847
Capital grants and contributions 15,179,885 9,338,204 6,489,958 - 1,417,514 783,182 2,665,841 382,003 648,296 889,152
Total governmental activities program revenues 18,497,697 11,358,012 9,137,272 1,635,715 2,493,017 1,852,646 3,794,360 1,380,084 1,171,892 1,339,107
Business-type activities:
Charges for services:
Water and sewer 9,021,096 11,416,192 9,805,662 7,523,193 6,194,327 5,980,176 5,573,401 4,880,931 4,329,000 3,653,989
Capital grants and contributions 8,244,205 5,348,481 3,298,737 776,416 755,508 486,155 484,704 - 1,233,559 -
Total business-type activities program revenues 17,265,301 16,764,673 13,104,399 8,299,609 6,949,835 6,466,331 6,058,105 4,880,931 5,562,559 3,653,989
TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES 35,762,998$ 28,122,685$ 22,241,671$ 9,935,324$ 9,442,852$ 8,318,977$ 9,852,465$ 6,261,015$ 6,734,451$ 4,993,096$
Source: Comprehensive Annual Financial Report
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas Table 2
Changes in Net Position – Continued
Last Ten Fiscal Years (Unaudited)
(accrual basis of accounting)
94
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
NET (EXPENSE) REVENUE
Governmental activities 3,869,949$ 1,575,350$ 1,464,989$ (5,197,016)$ (3,578,625)$ (3,648,450)$ (1,445,576)$ (3,415,531)$ (3,350,020)$ (2,891,924)$
Business-type activities 5,600,958 7,871,147 5,660,806 928,257 462,736 1,012,500 750,833 (47,153) 1,162,494 (607,257)
TOTAL PRIMARY GOVERNMENT NET EXPENSE 9,470,907$ 9,446,497$ 7,125,795$ (4,268,759)$ (3,115,889)$ (2,635,950)$ (694,743)$ (3,462,684)$ (2,187,526)$ (3,499,181)$
GENERAL REVENUES AND OTHER CHANGES IN NET POSITION
Governmental activities:
Taxes:
Property taxes 6,728,848$ 5,579,490$ 4,619,461$ 3,973,028$ 3,322,054$ 2,807,140$ 2,483,857$ 2,392,504$ 2,418,445$ 2,407,914$
Sales taxes 1,835,421 1,502,079 1,203,749 1,542,309 1,473,097 1,350,896 1,149,297 522,840 537,544 438,071
Franchise taxes 612,332 573,517 505,571 447,498 450,799 416,175 353,482 363,970 333,936 358,732
Investment earnings 1,044,444 327,200 26,199 31,816 23,685 22,295 39,256 25,939 26,484 15,981
Gain on sale of capital assets 135,910 276,970 - - 39,160 11,960 - 3,339 - -
Miscellaneous 84,132 314,750 241,719 166,773 316,688 140,596 39,399 162,422 135,518 56,029
Intergovernmental - 142,273 - - - - - - - -
Transfers (48,542) 159,500 - 108,556 (649) 279,707 (1,489,156) (364,582) (59,138) (366,799)
Total governmental activities 10,392,545 8,875,779 6,596,699 6,269,980 5,624,834 5,028,769 2,576,135 3,106,432 3,392,789 2,909,928
Business-type activities:
Investment earnings 276,200 136,261 63,607 69,608 77,064 73,451 34,636 34,450 51,375 48,480
Gain on sale of capital assets - - - - - - - 5,318 - -
Miscellaneous 1,028,735 148,148 69,610 29,193 - - 156,127 - 185,569 88,842
Transfers 48,542 (159,500) - (108,556) 649 (279,707) 1,489,156 364,582 59,138 366,799
Total business-type activities 1,353,477 124,909 133,217 (9,755) 77,713 (206,256) 1,679,919 404,350 296,082 504,121
TOTAL PRIMARY GOVERNMENT 11,746,022$ 9,000,688$ 6,729,916$ 6,260,225$ 5,702,547$ 4,822,513$ 4,256,054$ 3,510,782$ 3,688,871$ 3,414,049$
CHANGE IN NET POSITION
Governmental activities 14,262,494$ 10,451,129$ 8,061,688$ 1,072,964$ 2,046,209$ 1,380,319$ 1,130,559$ (309,099)$ 42,769$ 18,004$
Business-type activities 6,954,435 7,996,056 5,794,023 918,502 540,449 806,244 2,430,752 357,197 1,458,576 (103,136)
TOTAL PRIMARY GOVERNMENT 21,216,929$ 18,447,185$ 13,855,711$ 1,991,466$ 2,586,658$ 2,186,563$ 3,561,311$ 48,098$ 1,501,345$ (85,132)$
Source: Comprehensive Annual Financial Report
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas Table 3
Fund Balances of Governmental Funds
Last Ten Fiscal Years (Unaudited)
(modified accrual basis of accounting)
95
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
GENERAL FUND
Nonspendable 7,242$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Restricted 13,133 12,891 12,768 19,580 523,192 394,002 232,160 356,686 156,274 206,256
Committed 215,932 215,932 740,768 185,788 157,476 161,510 558,127 110,894 - -
Assigned - - - - - 144,175 - - 52,383 -
Unassigned 5,705,117 4,484,943 3,741,504 3,114,627 2,617,940 2,351,029 1,830,457 2,178,670 2,097,832 2,016,980
TOTAL GENERAL FUND 5,941,424$ 4,713,766$ 4,495,040$ 3,319,995$ 3,298,608$ 3,050,716$ 2,620,744$ 2,646,250$ 2,306,489$ 2,223,236$
ALL OTHER GOVERNMENTAL FUNDS
Nonspendable 1,000$ -$ -$ -$ -$ 35,642$ 88,353$ -$ -$ -$
Restricted 40,214,505 35,295,317 1,476,290 2,284,212 1,100,633 871,397 662,951 87,654 315,321 -
Committed - - - - - - - - - -
Assigned - - - - - - - - - -
Unassigned (112,518) - (7,694) (574,937) (203,139) (371,273) (87,717) - - 241,216
TOTAL ALL OTHER GOVERNMENTAL FUNDS 40,102,987$ 35,295,317$ 1,468,596$ 1,709,275$ 897,494$ 535,766$ 663,587$ 87,654$ 315,321$ 241,216$
Notes: The City implemented GASB Statement No. 54 "Fund Balance Reporting and Governmental Fund Type
Definitions" in fiscal year 2011.
Source: Comprehensive Annual Financial Report
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
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City of Anna, Texas Table 4
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years (Unaudited)
(modified accrual basis of accounting)
96
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
REVENUES
Taxes 9,166,995$ 7,592,708$ 6,338,940$ 5,965,724$ 5,241,413$ 4,571,535$ 3,999,758$ 3,282,978$ 3,276,278$ 3,194,899$
Licenses, permits, and fees 1,331,173 824,186 1,115,294 711,462 748,212 772,501 839,349 743,906 278,051 126,728
Charges for services 1,716,265 1,113,856 1,106,620 - 158,491 166,242 139,646 82,834 93,932 9,556
Fines and forfeitures 87,431 77,541 73,918 84,360 115,027 100,055 133,018 98,446 87,877 122,947
Intergovernmental 93,190 142,273 185,392 287,614 114,200 106,600 1,463,430 126,900 91,400 51,650
Investment earnings 1,044,444 327,200 26,199 31,816 23,685 22,295 39,256 25,939 26,484 15,981
Other revenues 166,460 314,750 117,932 1,164,183 126,393 122,579 74,738 35,522 44,119 56,029
Contributions 9,823,637 4,225 351,482 135,949 29,085 674,398 458,732 290,908 747,733
Total revenues 23,429,595 10,396,739 9,315,777 8,245,159 6,663,370 5,890,892 7,363,593 4,855,257 4,189,049 4,325,523
EXPENDITURES
Current:
General government 1,918,254 1,553,102 1,339,668 1,507,324 1,181,679 1,048,004 967,299 985,070 957,021 950,697
Culture and recreation 518,696 473,477 332,249 268,538 246,808 196,502 120,030 116,883 101,444 61,852
Community development 1,286,794 809,682 902,552 689,308 896,419 1,001,631 737,119 529,080 411,206 271,639
Public safety 3,721,752 3,649,049 2,842,470 2,509,795 2,182,617 1,951,681 1,964,502 1,669,196 1,612,809 1,451,188
Public works 2,166,360 541,968 463,780 539,049 200,188 170,830 201,294 163,518 155,894 203,484
Debt service:
Principal retirement 426,851 342,000 328,000 779,842 466,776 415,662 430,877 327,914 323,737 298,576
Interest and fiscal changes 2,589,974 71,273 97,376 182,942 200,331 259,080 271,485 204,552 200,071 232,044
Bond issuance costs - 443,009 - - 38,350 - - - - -
Capital outlay 5,414,720 1,771,045 565,974 1,094,445 755,535 837,018 2,917,945 382,368 610,853 938,213
Total expenditures 18,043,401 9,654,605 6,872,069 7,571,243 6,168,703 5,880,408 7,610,551 4,378,581 4,373,035 4,407,693
Excess of revenues over (under) expenditures 5,386,194 742,134 2,443,708 673,916 494,667 10,484 (246,958) 476,676 (183,986) (82,170)
OTHER FINANCING SOURCES (USES)
Transfers in 121,637 1,455,713 585,209 298,419 335,134 316,507 1,755,532 213,753 107,636 186,338
Transfers (out)(170,179) (1,296,213) (585,209) (189,863) (335,783) (36,800) (3,244,688) (578,335) (166,774) (553,138)
Sale of capital assets 212,608 700,082 34,974 17,054 65,000 11,960 - - - -
Debt issuance - 31,795,000 (23,350) - 1,462,000 - - - 360,000 -
Premium on debt issuance - 1,601,891 850,000 - - - - - - -
Lease issuance 485,068 - - - - - - - - 70,578
Payments to escrow agent - (953,160) (820,899) - (1,411,398) - - - - -
Total other financing sources (uses)649,134 33,303,313 40,725 125,610 114,953 291,667 (1,489,156) (364,582) 300,862 (296,222)
NET CHANGE IN FUND BALANCE 6,035,328$ 34,045,447$ 2,484,433$ 799,526$ 609,620$ 302,151$ (1,736,114)$ 112,094$ 116,876$ (378,392)$
DEBT SERVICE AS A PERCENTAGE OF
NONCAPITAL EXPENDITURES 23.9%5.2%6.7%14.9%12.3%13.4%15.0%13.3%13.9%15.3%
Source: Comprehensive Annual Financial Report
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas Table 5
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years (Unaudited)
97
Fiscal Real Personal Less: Tax Exempt Total Taxable Total Direct
Year Property Property Property Assessed Value Tax Rate
2010 452,408,378$ 14,428,711$ 82,726,997$ 384,110,092$ 0.62273
2011 426,150,871 14,570,908 75,476,975 365,244,804 0.65033
2012 446,019,189 14,755,531 95,551,181 365,223,539 0.65033
2013 457,390,078 16,753,543 97,610,313 376,533,308 0.65033
2014 514,337,648 21,674,172 105,177,246 430,834,574 0.65033
2015 649,209,461 22,743,852 161,376,609 510,576,704 0.64900
2016 817,578,552 27,290,010 236,173,968 608,694,594 0.63900
2017 941,525,839 32,134,958 247,017,901 726,642,896 0.62900
2018 1,173,598,307 40,865,863 303,651,595 910,812,575 0.60129
2019 1,440,753,873 51,949,576 352,310,696 1,140,392,753 0.59129
Source: Collin County Appraisal District
Estimated Market Value
DRAFT FOR DISCUSSION PURPOSES ONLY –
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City of Anna, Texas Table 6
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years (Unaudited)
98
Anna Collin County
Fiscal Debt Total Independent Collin Community Total
Year Operating Service Direct Rate School District County College District Rate
2010 0.52994 0.09280 0.622739 1.540050 0.242500 0.086300 1.86885
2011 0.55423 0.09611 0.650332 1.540000 0.240000 0.086300 1.86630
2012 0.55938 0.09097 0.650341 1.540000 0.240000 0.086300 1.86630
2013 0.55937 0.09097 0.650332 1.540000 0.240000 0.086299 1.86630
2014 0.55937 0.09097 0.650332 1.540000 0.237500 0.083643 1.86114
2015 0.54583 0.10317 0.649000 1.540000 0.235000 0.081960 1.85696
2016 0.53234 0.10666 0.639000 1.670000 0.225000 0.081960 1.97696
2017 0.50658 0.12242 0.629000 1.670000 0.208395 0.081222 1.95962
2018 0.47887 0.12242 0.601288 1.670000 0.192246 0.798100 2.66035
2019 0.42812 0.16317 0.591288 1.670000 0.180785 0.081222 1.93201
Source: Collin County Central Appraisal District
Note: The entire City was located in Collin County and within the Anna Independent School District.
City Direct Rates Overlapping Rates
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City of Anna, Texas Table 7
Principal Property Tax Payers
Current and Nine Years Ago (Unaudited)
99
Taxable Percentage of Taxable Percentage of
Assessed Total City Assessed Total City
Taxpayer Valuation Assessed Valuation Taxpayer Value Assessed Valuation
Wal-Mart Real Estate Business Trust 20,460,245$ 1.56%Brookshire Grocery Company 7,401,924$ 2.14%
Lennar Homes of Texas 14,492,890 1.11%Anna Eagle Retail LP 3,324,119 0.96%
Bloomfield Homes LP 12,505,748 0.95%Anna West/2004 Ltd.2,833,748 0.82%
LGI Homes Texas LLC 10,847,605 0.83%Aahi-Antoninne LLC 2,800,000 0.81%
Wal-Mart Stores Texas LLC 10,377,449 0.79%Anna Commerical Partners LLC 2,458,662 0.71%
RR LI Enterprise LP 6,149,225 0.47%UDF Northpointe II LP 2,275,151 0.66%
Anna Crossing Phase VII LNRD Ltd.5,585,135 0.43%Hwy 75/Anna Property LP 2,036,553 0.59%
DR Horton - Texas Ltd.5,510,287 0.42%Bronco MFC Machine Shop 1,964,189 0.57%
Palladium Anna Ltd.5,044,222 0.38%Love's Country Stores Inc.1,932,557 0.56%
Burnco Texas LLC 4,878,913 0.37%First National Bank of Van Alstyne 1,867,631 0.54%
Total 95,851,719 7.31%28,894,534 8.36%
Source: Collin County Tax Collector
Notes: aTaxpayers are assessed on January 1, 2018 (2018 tax year) for the 2019 fiscal year.
20102019
bTaxpayers are assessed on January 1, 2009 (2009 tax year) for the 2010 fiscal year.
DRAFT FOR DISCUSSION PURPOSES ONLY –
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City of Anna, Texas Table 8
Property Tax Levies and Collections
Last Ten Fiscal Years (Unaudited)
100
Taxes Levied Collections
Fiscal for the Percentage in Subsequent Percentage
Year Fiscal Year Amount of Tax Levy Years Amount of Tax Levy
2010 2,354,795$ 2,310,499$ 98.1%42,875$ 2,353,374$ 99.9%
2011 2,377,408 2,330,562 98.0%44,562 2,375,124 99.9%
2012 2,365,624 2,314,801 97.9%47,482 2,362,283 99.9%
2013 2,483,972 2,420,674 97.5%58,076 2,478,750 99.8%
2014 2,851,672 2,771,670 97.2%67,311 2,838,981 99.6%
2015 3,373,239 3,290,905 97.6%67,134 3,358,039 99.5%
2016 3,966,064 3,881,905 97.9%68,059 3,949,964 99.6%
2017 4,606,565 4,541,224 98.6%45,590 4,586,814 99.6%
2018 5,495,607 5,348,790 97.3%14,529 5,363,319 97.6%
2019 6,772,700 6,569,608 97.0%- 6,569,608 97.0%
Source: Collin County Tax Assessor
Collected within the
Fiscal Year of the Levy Total Collections to Date
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City of Anna, Texas Table 9
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years (Unaudited)
101
General Certificates Combination Capital Waterworks &Combination Contract General Capital Total Percentage
Fiscal Obligation of Tax & Revenue Lease Sewer System Tax & Revenue Revenue Obligation Lease Primary of Personal Per
Year Bonds Obligation Bonds & Certificates Payable Revenue Bonds Bonds & Certificates Bonds Bonds Payable Government Income Capita
2010 310,000$ 4,280,000$ -$ 228,916$ 19,500$ 4,140,000$ 15,746,250$ 29,000$ 63,372$ 24,817,038$ N/A 3,064
2011 290,000 4,435,000 - 979,759 15,000 4,115,000 15,428,750 24,500 46,382 25,334,391 13.00%3,052
2012 270,000 4,215,000 - 2,686,726 10,000 4,090,000 15,086,250 20,000 28,526 26,406,502 13.38%3,078
2013 250,000 3,985,000 - 2,513,847 5,000 8,275,000 14,698,750 15,000 9,747 29,752,344 13.30%3,179
2014 230,000 3,755,000 - 2,354,618 - 12,430,000 14,201,250 10,000 - 32,980,868 12.58%3,187
2015 1,615,000 2,525,000 - 2,204,882 - 12,561,000 13,675,000 5,000 - 32,585,882 11.90%2,968
2016 1,563,000 2,270,000 - 1,732,000 - 12,359,000 13,140,000 - - 31,064,000 10.99%2,744
2017 2,145,000 1,045,000 - - - 12,212,619 12,503,750 - 1,340,010 29,246,379 8.63%2,360
2018 2,018,000 32,351,142 876,409 - - 17,195,354 5,892,500 - 1,217,631 59,551,036 16.54%4,350
2019 1,922,000 32,253,211 615,000 429,217 - 16,388,023 5,618,750 - 1,092,805 58,319,006 14.97%3,885
Notes: Details regarding the City's outstanding debt can be found in the notes to financial statements.
Business-type ActivitiesGovernmental Activities Business-type Activities (continued)
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City of Anna, Texas Table 10
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years (Unaudited)
102
Percentage of
Actual
Combination Taxable
Fiscal General Obligation Certificates of Tax & Revenue Value¹ of Per
Year Bonds Obligation Bonds & Certificates3 Total Property Capita2
2010 310,000$ 4,280,000$ 4,140,000$ 8,730,000$ 0.0023%1,078
2011 290,000 4,435,000 4,115,000 8,840,000 0.0024%1,065
2012 270,000 4,215,000 4,090,000 8,575,000 0.0023%999
2013 250,000 3,985,000 8,275,000 12,510,000 0.0033%1,337
2014 230,000 3,755,000 12,430,000 16,415,000 0.0038%1,586
2015 1,615,000 2,525,000 12,561,000 16,701,000 0.0033%1,521
2016 1,563,000 2,270,000 12,359,000 16,192,000 0.0027%1,430
2017 2,145,000 1,045,000 12,212,619 15,402,619 0.0021%1,243
2018 2,018,000 32,351,142 18,071,763 52,440,905 0.0058%3,831
2019 1,922,000 32,253,211 17,003,023 51,178,234 0.0045%3,410
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
¹See the Schedule of Assessed and Estimated Actual Value of Taxable Property for property value data.
2Population data can be found in the Schedule of Demographic and Economic Statistics.
3Bonds are payable from levy and collecton of a direct and continuing ad valorem tax and from a pledge of surplus revenues from water and sewer.
DRAFT FOR DISCUSSION PURPOSES ONLY –
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City of Anna, Texas Table 11
Direct and Overlapping Governmental Activities Debt
As of September 30, 2019 (Unaudited)
103
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable1 Debt
GOVERNMENTAL UNIT
Debt repaid with property taxes:
Collin County 392,565,000$ 0.65%2,551,673$
Collin College 239,445,000 0.65%1,556,393
Anna ISD 141,445,024 77.42%109,506,738
113,614,803
Subtotal, overlapping debt
City of Anna 35,219,428
TOTAL DIRECT AND OVERLAPPING DEBT 148,834,231$
Source: Net bonded debt and percentage of debt provided by Municipal Advisory of Texas
Notes:Overlapping governments are those that coincide,at least in part,with the geographic boundaries of the City.This schedule estimates the portion of
the outstanding debt of those overlapping by the residents and businesses of Statistical.This process recognizes that,when considering the City's ability
governments that is borne to issue and repay long-teim debt,the entire debt burden borne by the residents and businesses should be taken into account.
However, this does not imply that every taxpayer is a resident--and therefore responsible for repaying the debt--of each overlapping government.
1For debt repaid with property taxes,the percentage of overlapping debt applicable is estimated using taxable assessed property values.Applicable
percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and
dividing it by each unit's total taxable assessed value.
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City of Anna, Texas Table 12
Pledged-Revenue Coverage
Last Ten Fiscal Years (Unaudited)
104
Less:Net
Fiscal Total Operating Available Times
Year Revenuesa Expensesb Revenue Principal Interest Coverage
2010 3,791,310$ 2,498,178$ 1,293,132$ 336,000$ 787,293$ 1.15
2011 4,565,944 2,547,615 2,018,329 365,526 782,174 1.76
2012 4,920,699 2,899,257 2,021,442 416,826 906,240 1.53
2013 5,764,164 3,161,627 2,602,537 446,279 955,154 1.86
2014 6,053,627 3,151,655 2,901,972 542,247 1,054,947 1.82
2015 6,271,391 3,987,255 2,284,136 663,250 1,125,983 1.28
2016 8,371,878 5,137,343 3,234,535 742,000 1,056,647 1.80
2017 9,938,880 6,490,261 3,448,619 772,500 1,028,814 1.91
2018 11,700,601 6,146,505 5,554,096 1,015,628 912,272 2.88
2019 15,822,376 8,582,049 7,240,327 1,131,810 1,903,394 2.39
Note: aIncludes both operating and non-operating revenues.
bIncludes operating expenses minus depreciation.
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Debt Service
Water Revenue Bonds
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City of Anna, Texas Table 13
Demographic and Economic Statistics
Last Ten Fiscal Years (Unaudited)
105
Fiscal Personal Per Capita4 School Unemployment
Year Population1 Income Personal Income Enrollment3 Rate 2
2010 8,100 N/A N/A N/A 7.0%
2011 8,300 194,842,500$ 23,475$ 2,339 6.9%
2012 8,580 197,374,320 23,004 2,519 5.6%
2013 9,360 223,657,200 23,895 2,579 5.4%
2014 10,350 262,082,700 25,322 2,855 4.4%
2015 10,980 273,808,260 24,937 3,051 3.6%
2016 11,320 282,705,680 24,974 3,214 3.8%
2017 12,390 338,916,060 27,354 3,438 3.8%
2018 13,690 359,992,240 26,296 3,602 3.0%
2019 15,010 389,614,570 25,957 3,837 2.9%
Sources:1North Central Texas Council of Governements (NCTCOG)
2State Department of Labor and homefacts.com
3Anna Independent School District
4U. S. Census Bureau American Fact Finder & North Central Texas Council of Governments
(NCTCOG)
Note:The requirement is for 10 years worth of data. The City will present a full 10 year schedule as the
information becomes available. Areas where information could not be obtained are listed as N/A.
DRAFT FOR DISCUSSION PURPOSES ONLY –
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City of Anna, Texas Table 14
Principal Employers
Current and Nine Years Ago (Unaudited)
106
Percentage of Percentage of
No.Total City No.Total City
Employer Employees Employment Employer Employees Employment
Anna ISD 543 39.46%Anna ISD N/A N/A
Walmart 270 19.62%Pate Rehab N/A N/A
Pate Rehab 162 11.77%Brookshire's N/A N/A
City of Anna 104 7.56%Bronco N/A N/A
Brookshire's 85 6.18%Hurricane Creek Country Club N/A N/A
Bronco Manufacturing 51 3.71%City of Anna N/A N/A
Hurricane Creek County Club 45 3.27%KFC/Taco Bell N/A N/A
Loves Travel Stop 45 3.27%Crow's Country Café N/A N/A
McDonalds 40 2.91%Mudpies and Lullabies N/A N/A
Tri-County Vet 31 2.25%Highland Fire Protection N/A N/A
Total 1,376 -
Source: 1Top ten employers and employee count provided by Anna Econcomic Deveopment Corporation.
Note: Data not available for 2010 at the time of this publication. The City will present this information for future years' as the
information becomes available.
2019 2010
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City of Anna, Texas Table 15
Full-Time Equivalent City Government Employees by Function/Program
Last Ten Fiscal Years (Unaudited)
107
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
FUNCTION/PROGRAM
General Government and
Administration 23.5 15.5 12.5 13.5 13.5 12.5 12.5 13.5 12.5 12.5
Public Safety 33.0 28.0 24.0 22.0 21.0 18.0 18.0 16.0 16.0 16.0
Public Works 6.0 8.0 7.0 7.0 4.0 1.0 1.0 1.0 1.0 1.0
Culture and Recreation 7.0 10.0 4.0 4.0 2.0 3.0 1.0 2.0 2.0 2.0
Water and Sewer 16.0 13.0 11.0 8.0 10.0 12.0 10.0 10.0 9.0 9.0
Community Development 8.0 4.0 4.0 3.0 3.0 3.0 2.0 2.0 3.0 3.0
Economic Development 2.0 1.0 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5
TOTAL ALL GOVERNMENT FUNDS 95.5 79.5 63.0 58.0 54.0 50.0 45.0 45.0 44.0 44.0
Source: Finance and Human Resouces Department
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City of Anna, Texas Table 16
Operating Indicators by Function/Program
Last Ten Fiscal Years (Unaudited)
108
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
FUNCTION/PROGRAM
General government
Building permits issued-residential 579 342 440 273 216 290 305 351 100 26
Building permits issued-commerical 12 11 11 4 1 5 - 13 15 10
Building inspections conducted 15,416 14,718 16,046 9,474 7,493 12,584 10,566 8,604 3,310 1,183
Public Safety
Police:
Physical arrests 357 428 337 311 309 208 197 187 164 119
Accidents 323 336 265 261 231 182 155 139 129 121
Traffic violations 2,421 3,153 2,404 3,962 4,235 3,491 2,539 3,694 2,342 2,069
Fire:
Emergency responses 1,783 1,703 1,502 1,234 1,256 1,065 1,070 1,021 1,066 855
Fires extinguished 81 59 19 79 62 43 41 99 33 59
Inspections 186 284 132 115 107 79 77 55 34 37
Highways and streets
Street resurfacing (miles)2 1 0.4 1 - - - - - -
Potholes repaired 1,100 1,250 940 3,900 1,600 - - - - -
Recreation
Reservations issued 156 164 92 53 59 17 - - - -
Waster and Sewer
Number of Active Accounts 5,979 5,470 5,102 4,935 4,596 4,423 4,166 3,720 3,104 N/A
Average daily consumption (gallons) wells 1,122,943 1,097,062 1,018,025 1,007,258 1,115,682 1,061,013 772,487 1,200,000 1,093,365 N/A
Average daily consumption (gallons) NTMWD 1,025,503 679,857 679,857 355,970 - - - - - -
Source: City departments
Note: Some data not available for 10 years at the time of this publication. The City will present this
information for future years' as the information becomes available.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
City of Anna, Texas Table 17
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years (Unaudited)
109
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
FUNCTION
Public Safety
Number of police stations 1 1 1 1 1 1 1 1 1 1
Number of patrol units 8 8 11 9 9 7 7 6 6 6
Number of fire stations 1 1 1 1 1 1 1 1 1 1
Streets and Grounds
Streets (miles)73.8 67.5 65 50 - - - - - -
Streetlights 908 800 625 570 - - - - - -
Traffic signals 4 4 3 1 - - - - - -
Recreation
Acreage 201.0 201 197.06 197.06 179.67 177.09 177.09 177.09 177.09 177.09
Playgrounds 3 2 2 2 2 2 2 2 2 2
Baseball/softball diamonds 6 6 6 7 7 7 7 5 5 5
Water and Sewer
Water mains 69 55 55 - - - - - -
Fire hydrants 862 804 570 570 - - - - - -
Sanitary Sewer (miles)67.9 62.4 50 50
Storage capacity (millions of gallons)2.5 2.5 2.5 2.5 - - - - - -
Wastewater
Trealnient capacity 9.1 9.1 9.1 9.1 - - - - - -
Sanitary sewer (miles)67.9 62.4 60 50 - - - - - -
Storm sewers (miles)59.9 57.4 55 50 - - - - - -
Source: City Departments
Note: Some data not available for 10 years at the time of this publication. The City will present this
information for future years' as the information becomes available.
DRAFT FOR DISCUSSION PURPOSES ONLY –
Subject to final review and possible
revision and should not be relied upon
or distributed. 3.20.20
Austin | Conroe | Dallas | Fort Worth | Houston Los Angeles | Midland | New York City |
Weaver and Tidwell, L.L.P.
2300 North Field Street, Suite 1000 | Dallas, Texas 75201
Main: 972.490.1970 | Fax: 972.702.8321
CPAs AND ADVISORS | WEAVER.COM
To the City Council
of the City of Anna, Texas
We have audited the financial statements of the City of Anna, Texas (the City) as
of and for the year ended September 30, 2019 and we have issued an unmodified
opinion on the financial statements. An unmodified opinion is the highest level of
assurance that the City can receive. This opinion is in our Independent Auditor’s
Report, which is page 1 of the City’s Comprehensive Annual Financial Report.
Highlights of Auditors Results:
• We received information timely and accurately throughout the audit
process.
• No material weaknesses were identified during the audit.
• No noncompliance material to the financial statements was identified.
• There were no difficulties or disagreements with City staff or management
during the audit.
• The Finance Department, especially Ms. Dana Thornhill and Ms. Sheila
Alexander were very helpful and knowledgeable throughout the entire
audit process.
We appreciate the opportunity to work with the City of Anna and look forward
to our continued relationship.
WEAVER AND TIDWELL, L.L.P.
Item No. 5.d.
City Council Agenda
Staff Report
Meeting Date: 3/24/2020
AG E ND A IT E M :
A pprove an Ordinance providing for requirements and verification of requirements for elective
office. (City S ecretary Carrie L and)
S UM M ARY:
T he City currently does not conduct criminal background checks on candidates for office of the City
Council. Under Section 3.05 of the City of Anna Home Rule Charter members of the City Council may
not have a felony conviction, a misdemeanor conviction involving moral turpitude, or a conviction for
violation of any state law regulating conflicts of interest of municipal officers.
By adoption of this ordinance the City C ouncil establishes a C ity policy and procedures for
conducting criminal background checks on both candidates for the of f ices of Mayor and all places
on the City Council as well as City boards, commissions, and committees.
Strategic Connection
T his items supports the City of Anna Strategic Plan, specifically advancing:
Goal 4: High Performing Professional City
S TAF F RE C O M M E ND AT I O N:
Approval of proposed Ordinance.
AT TAC HM E NT S :
Description Upload Date Type
Ordinance 3/20/2020 Ordinance
CITY OF ANNA ORD. NO. ___________ Page 1 of 5
CITY OF ANNA, TEXAS
ORDINANCE NO. ______________________
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS PROVIDING
FOR REQUIREMENTS AND VERIFICATION OF REQUIREMENTS FOR ELECTIVE OFFICE;
PROVIDING A PENALTY FOR VIOLATION OF THIS ORDINANCE; PROVIDING FOR
SAVINGS, REPEALING AND SEVERABILITY CLAUSES; PROVIDING FOR AN EFFECTIVE
DATE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF.
WHEREAS, holding of elective office is a privilege of service to the citizens of the City of Anna; and
WHEREAS, voters in the City of Anna should expect that their elected officials do not have a confirmed
record of criminal dishonesty or felonies; and
WHEREAS, under Section 3.05 of the City of Anna Home Rule Charter members of the City Council
may not have a felony conviction, a misdemeanor conviction involving moral turpitude, or a conviction
for violation of any state law regulating conflicts of interest of municipal officers; and
WHEREAS, the City currently conducts criminal background checks on applicants for City boards,
commissions, and committees whose membership is appointed by the City Council; and
WHEREAS, the City currently does not conduct criminal background checks on candidates for office of
the City Council; and
WHEREAS, the City Council finds that verification of the extent of the criminal record of candidates for
office of the City Council is at least as important as verification of the extent of any criminal records of
City boards, commissions, and committees; and
WHEREAS, criminal background checks on candidates for office of the City Council can save tax-payer
money and create efficiencies by identifying candidates that may not be eligible to run for the office of
City Council; and
WHEREAS, by adoption of this ordinance the City Council desires to establish a City policy and
procedures for conducting criminal background checks on both candidates for the offices of Mayor and
all places on the City Council as well as City boards, commissions, and committees; and
WHEREAS, the City Council finds it advantageous and beneficial to the City and its citizens to amend
The Anna City Code of Ordinances (“Anna Code”), by adding a new Article 2.09 (BACKGROUND
CHECKS) to Chapter 2 (ADMINISTRATION AND PERSONNEL);
NOW THEREFRE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA:
Section 1. Recitals Incorporated.
The recitals above are incorporated herein as if set forth in full for all purposes.
Section 2. Adding a new Article 2.09 (BACKGROUND CHECKS) to Chapter 2
(ADMINISTRATION AND PERSONNEL) of the Anna Code, as follows:
CITY OF ANNA ORD. NO. ___________ Page 2 of 5
ARTICLE 2.09 BACKGROUND CHECKS
Sec. 2.09.001 Required background checks; purpose; timeliness
(a) The City Secretary in consultation with the City Attorney shall conduct criminal
background checks on persons that:
(1) file an application to run for the position of Mayor or any place on the City
Council; or
(2) file an application for appointment to any City board, commission, or
committee—other than committees composed of members of the City
Council including but not limited to the Mayor—whose membership is
appointed by the City Council.
(b) The purpose of the criminal background checks required under subsection (a) is to
determine whether the person who is the subject of the criminal background check has
been convicted of:
(1) a felony conviction;
(2) a misdemeanor conviction involving moral turpitude; or
(3) a conviction for a violation of any state law regulating conflicts of interest
of municipal officers an application to run for the position of Mayor or any
place on the City Council.
(c) The City Secretary shall endeavor to complete the criminal background checks
required under this article to allow for as much time as reasonably practicable to:
(1) in the case of a candidate who has filed to run for the office of Mayor or
any place on the City Council and who is ineligible for such office under
Sec. 2.09.002(a), declare a candidate disqualified to run for such office in
accordance with the Texas Election Code and other applicable law; and
(2) in the case of an applicant seeking to serve on any City board, commission,
or committee and who is ineligible for such position under Sec. 2.09.002(a),
remove the person’s application from the application pool that the City
Council considers for appointment to such board, commission, or
committee.
Sec. 2.09.002 Results of background checks; self-reporting of current officials
(a) If any criminal background check required under this article returns results showing
that a person has been convicted of any of the types of crimes identified in Sec.
2.09.001(b), that person—subject to appeal under Sec. 2.09.005—shall not be eligible
for and shall be disqualified from running for or seeking appointment to the position of
CITY OF ANNA ORD. NO. ___________ Page 3 of 5
Mayor, any place on the City Council, or any City board, commission, or committee
whose membership is appointed by the City Council.
(b) If the Mayor, any person serving on the City Council, or any person serving on any
City board, commission, or committee whose membership is appointed by the City
Council is finally convicted of any of the types of crimes identified in Sec. 2.09.001(b)
that person shall report the conviction to the City Secretary and shall take all necessary
actions to forfeit their position. For the purposes of this article “finally convicted”
means that the conviction is final and any and all appeals of the conviction have been
exhausted or are no longer available.
Sec. 2.09.003 Background checks on certain appointed officials
In the case of an appointment—in lieu of an election—to the position of Mayor or any place on
the City Council, the City Secretary may be informed of the identity of any person(s) who may
be anticipated to be appointed to such position and the City Secretary shall conduct a criminal
background check on any such person(s) before an appointment is made if practicable. In the
event that the City Council appoints any such person(s) to the position of Mayor or any place on
the City Council before the City Secretary has conducted a criminal background check on such
person(s), the City Secretary shall promptly thereafter conduct a criminal background check on
such person(s) who shall be subject to Sec. 2.09.004(b).
Sec. 2.09.004 Disqualification and forfeiture for certain offices
(a) If any criminal background check required under this article returns results showing
that a person who has applied to be a candidate for the office of Mayor or any place on
the City Council has been convicted of any of the types of crimes identified in Sec.
2.09.001(b), the City Secretary shall take all necessary steps to declare the candidate
disqualified from running for such office in accordance with the Texas Election Code
and other applicable law.
(b) Any person on the City Council who ceases to possess the required qualifications for
office or who is convicted of a felony or of a misdemeanor involving moral turpitude
or is convicted of violating any state laws regulating conflicts of interest of municipal
officers must forfeit his or her office. Every forfeiture must be declared and enforced
by the City Council.
Sec. 2.09.005 Notice, appeal and hearing
(a) The City Secretary shall endeavor to inform all persons subject to a criminal
background check under this Article that they are subject to a criminal background
check. The City Secretary shall endeavor to supply this information in writing on all
applications for City offices and positions subject to this Article or shall otherwise
attempt to supply this information at the time that a person applies for the office or
position they seek.
(b) The City Secretary shall provide written notice to any person whose criminal
background check shows that the person has been convicted of any of the types of
CITY OF ANNA ORD. NO. ___________ Page 4 of 5
crimes identified in Sec. 2.09.001(b) and shall supply the person with the crime the
person was convicted of and the date of conviction.
(c) Any person whose background check shows that the person has been convicted of any
of the types of crimes identified in Sec. 2.09.001(b) may submit information to the
City Secretary showing that the results are in error and that the person has not been
convicted of any of the types of crimes identified in Sec. 2.09.001(b). The person shall
submit such information within three (3) business days of receiving notice under this
subsection. If the City Secretary determines that the person has not been convicted of
any of the types of crimes identified in Sec. 2.09.001(b) the City Secretary shall take
all reasonable steps to restore the person’s status to allow the person to continue
seeking the office or position they seek.
(d) If for any reason the City Secretary finds that a person who has submitted information
under subsection (c) has, despite the submission of such information, been convicted
of any of the types of crimes identified in Sec. 2.09.001(b), that person may submit a
petition of appeal to the City Council and the City Council shall hold a hearing at its
next regular City Council meeting. The City Council’s decision on whether the person
has been convicted of any of the types of crimes identified in Sec. 2.09.001(b) is final.
Sec. 2.09.006 Penalty
Any person violating any of the provisions or terms of this article shall be deemed guilty of a
misdemeanor and, upon conviction, shall be punished by a fine not to exceed the sum of
$500.00 for each offense, and each and every day such violation shall continue be deemed to
constitute a separate offense. Allegation and evidence of a culpable mental state is not required
for proof of any offense defined by this article.
(Ordinance _______________, 3/24/20)
Section 5. Savings, Severability and Repealing Clauses.
All ordinances of the City in conflict with the provisions of this ordinance are repealed to the extent of
that conflict. Cross-references in other parts, articles or sections of the Anna Code which make reference
to previous enactments carrying the same designation as any section amended by this ordinance shall be
construed as referencing whichever currently effective provision best preserves the original intent and
effect of the cross-reference. If any provision of this ordinance shall be held to be invalid or
unconstitutional, the remainder of such ordinance shall continue in full force and effect the same as if
such invalid or unconstitutional provision had never been a part hereof. The City declares that it would
have passed this ordinance, and each section, subsection, clause, or phrase thereof irrespective of the fact
that any one or more sections, subsections, sentences, clauses, and phrases be declared unconstitutional or
invalid.
Section 6. Publication of the Caption Hereof and Effective Date.
This ordinance shall be in full force and effective from and after its passage and upon the posting and/or
publication of its caption as may be required by law, and the City Secretary is hereby directed to
implement such posting and/or publication.
CITY OF ANNA ORD. NO. ___________ Page 5 of 5
PASSED by the City Council of the City of Anna, Texas, this ___ day of _____________, 2020.
ATTESTED: APPROVED:
________________________________ _________________________
City Secretary, Carrie L. Land Mayor, Nate Pike
Item No. 6.
City Council Agenda
Staff Report
Meeting Date: 3/24/2020
AG E ND A IT E M :
Consider/Discuss/Action regarding approval of an ordinance extending the declaration of disaster
and public health emergency. (City Manager J im Proce)
S UM M ARY:
On Tuesday, March 17, the Mayor signed a declaration of disaster and public health emergency in
response to the C O V I D-19 pandemic. T he signed declaration was ef f ective for seven days. At
this time, the declaration would need to be extended should the Council wish to keep it in place.
T he declaration before the Council (E xhibit 2)
S TAF F RE C O M M E ND AT I O N:
Staff recommends that the declaration of disaster and public health emergency be extended to
April 28, which is the next scheduled C ity Council Meeting. S hould the C ouncil wish to extend the
declaration further, it can be done then.
AT TAC HM E NT S :
Description Upload Date Type
Declaration E xtension 3/20/2020 Exhibit
Original Declaration 3/20/2020 Exhibit
EXTENSION OF DECLARATION OF DISASTER - Page 1 of 4
ORD. NO. ___________
CITY OF ANNA, TEXAS
ORDINANCE NO. ______________________
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS EXTENDING
COVID-19 DECLARATION OF DISASTER AND PUBLIC HEALTH EMERGENCY;
PROVIDING A PENALTY FOR VIOLATION OF THIS ORDINANCE; PROVIDING FOR
SAVINGS, REPEALING AND SEVERABILITY CLAUSES; PROVIDING FOR AN EFFECTIVE
DATE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF.
WHEREAS, in December 2019 a novel coronavirus, now designated COVID-19, was detected in Wuhan
City, Hubei Province, China. Symptoms of COVID-19 include fever, cough, and shortness of breath.
Outcomes have ranged from mild to severe illness, and in some cases death; and
WHEREAS, on January 30, 2020, the World Health Organization Director General declared the outbreak
of COVID-19 as a Public Health Emergency of International Concern (PHEIC), advising countries to
prepare for the containment, detection, isolation and case management, contact tracing and prevention of
onward spread of the disease; and
WHEREAS, United States nationals were transported from Wuhan City, China to several secure
locations within the United States identified by the Centers for Disease Control and Prevention (CDC),
including military bases in Texas, in order to ensure the health and wellbeing of those persons; and
WHEREAS, on February 7, 2020, 91 Americans evacuated from Wuhan City, China (Cohort 1) arrived
at Texas military bases, with one person diagnosed with the virus and transported to a Texas hospital; and
WHEREAS, on February 17, 2020, the Centers for Disease Control evacuated 144 passengers from a
cruise ship docked in Japan (Cohort 2) to a Texas military base; and
WHEREAS, on February 20, 2020, 90 evacuees from Cohort 1 were released from quarantine and
returned to their homes; and
WHEREAS, persons in Cohort 2 that have not exhibited symptoms or have tested negative for the virus
were originally set to be released from quarantine at a Texas military base on March 2, 2020; and
WHEREAS, as of March 2, 2020 ten (10) persons evacuated to a Texas military hospitals have tested
positive for the virus and it is anticipated that the number of persons diagnosed with the virus Is likely to
increase, as testing for the virus continues; and
WHEREAS, on Saturday, February 29, 2020, one of the persons in Cohort 1 who had tested positive for
COVID-19 and subsequently tested negative on two tests was released from quarantine in Texas.
However, this person tested positive for the virus on a third test, with results coming in after her release.
This person visited a San Antonio mall, ate at its food court, and spent a few hours among other persons,
potentially exposing the public to the virus; and
WHEREAS, the person has been returned to quarantine at a Texas military base near San Antonio while
the CDC and local health authorities are taking steps to ensure the community is kept safe and the
exposure risk is minimized; and
EXTENSION OF DECLARATION OF DISASTER - Page 2 of 4
ORD. NO. ___________
WHEREAS, the identification of "community spread" cases of COVID-19 in the United States has
occurred and the virus is no longer limited to travel to China, or contact with travelers who have visited
China; and
WHEREAS, the World Health Organization has declared the coronavirus a pandemic and urged
aggressive action from all countries to fight it; and
WHEREAS, as of March 13, 2020, United States President Donald trump declared a national emergency
concerning the COVID-19 outbreak; and
WHEREAS, as of March 13, 2020, Governor Greg Abbott declared a state of disaster for Texas over the
coronavirus pandemic; and
WHEREAS, as of March 16, 2020, Dallas County, the most populous County bordering Collin County,
reports that there are fifteen (15) confirmed positive cases of COVID-19 in Dallas County; and
WHEREAS, as of March 13, 2020, Dallas County declared a state of local emergency due to the
COVID-19 pandemic; and
WHEREAS, as of March 16, 2020, County Judge Chris Hill issued a disaster declaration for Collin
County, Texas; and
WHEREAS, as of March 18, 2020, Collin County reports that there are thirteen (13) confirmed positive
cases of COVID-19 in Collin County at this time and there are 66 persons under monitoring in Collin
County; and
WHEREAS, as of March 18, 2020, the City has reported its first confirmed case positive case of
COVID-19 infecting a 54-year-old man; and
WHEREAS, pursuant to the Texas Disaster Act of 1975, the mayor is designated as the emergency
management director of the City of Anna, and may exercise the powers granted to the governor on an
appropriate local scale; and
WHEREAS, a declaration of local disaster and public health emergency includes the ability to reduce the
possibility of exposure to disease, control the risk, promote health, compel persons to undergo additional
health measures that prevent or control the spread of disease, including isolation, surveillance, quarantine,
or placement of persons under public health observation, including the provision of temporary housing or
emergency shelters for persons misplaced or evacuated and request assistance from the governor of state
resources; and
WHEREAS, by a Declaration of Disaster and Public Health Emergency, the Mayor may declare all rules
and regulations that may inhibit or prevent prompt response to this threat suspended for the duration of
the incident; and
WHEREAS, pursuant to the authority granted under the Texas Disaster Act of 1975, the Mayor
authorized the use of all available resources of state government and political subdivisions to assist in the
City's response to this situation; and
WHEREAS, on the 17th day of March, 2020, the Mayor determined that extraordinary and immediate
measures must be taken to respond quickly, prevent and alleviate the suffering of people exposed to and
EXTENSION OF DECLARATION OF DISASTER - Page 3 of 4
ORD. NO. ___________
those infected with the virus, as well as those that could potentially be infected or impacted by COVID-
19, and issued a proclamation declaring a disaster for the City of Anna;
WHEREAS, the conditions necessitating declaration of a state of disaster continue to exist, and the time
at which they may abate cannot be predicted at this time; and
WHEREAS, §418.108(b) of the Texas Government Code provides that a local state of disaster may not
be continued for a period of excess of seven days without the consent of the governing body of the
political subdivision; and
WHEREAS, the City Council of Anna has investigated and determined that good governance of the
municipality and the protection of the public health, safety, and welfare necessitates the continuation and
renewal of the Mayor’s declaration of a local state of disaster;
NOW THEREFRE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA:
1. Pursuant to §418.108(a)-(b) of the Texas Government Code, the local state of disaster proclaimed
for the City of Anna by the Mayor on the 17th day of March 2020 (“Declaration”) shall continue
until terminated by order of the City Council.
2. Pursuant to §418.108(c) of the Government Code, the continuation of the Declaration of a local
state of disaster and public health emergency shall be given prompt and general publicity and
shall be filed promptly with the City Secretary.
3. Pursuant to §418.108(d) of the Government Code, the Declaration of a local state of disaster and
public health emergency activates the City of Anna’s emergency management plan.
4. Pursuant to §418.020(d) of the Government Code, the Declaration authorizes the City to
commandeer or use any private property, temporarily acquire, by lease or other means, sites
required for temporary housing units or emergency shelters for evacuees, subject to compensation
requirements.
5. Pursuant to §122.006 of the Health and Safety Code, the Declaration authorizes the City to take
any actions necessary to promote health and suppress disease, including quarantine, examining
and regulating hospitals, regulating ingress and egress from the City, and fining those who do not
comply with the City's rules.
6. Pursuant to the statutory authority cited above, the City Council declares that ingress into and
travel through the City of Anna from any persons that have been quarantined in a facility for
treatment of COVID-19 is not permitted without the written permission of the Mayor. No
previously quarantined person shall be permitted to enter the City of Anna until further notice.
Any persons in the City confirmed to be infected with the COVID-19 virus must be treated in a
medical facility or self-quarantine in their home. The household members of any such infected
persons who have been exposed to the infected person must self-quarantine in their home.
7. Consistent with guidance from Collin County and the Centers for Disease Control and
Prevention, this declaration hereby limits the size of gatherings to not more than 10 people, and
no such gatherings shall be held in any area subject to regulation by the City of Anna until further
notice. A “gathering” refers generally to a scheduled event or common endeavor where more than
10 persons are present in a confined space or area.
EXTENSION OF DECLARATION OF DISASTER - Page 4 of 4
ORD. NO. ___________
8. The Mayor may take additional appropriate and legal actions and/or delegate to City officers
authority to take appropriate and legal actions to protect the public health and safety in response
to the COVID-19 virus pandemic including but not limited to: (i) closing or restricting access to
city facilities; (ii) revising occupant load numbers for city public facilities; (iii) revising,
suspending or deferring fees; and (iv) amending the personnel policies and procedures with
regard to leave provisions for quarantined/diagnosed staff, and other personnel matters.
9. This ordinance is passed as an emergency measure and pursuant to the City Council
and shall become effective on the 24th day of March 2020.
10. Penalty. Any person violating any of the provisions or terms of this ordinance shall be deemed
guilty of a misdemeanor and, upon conviction, shall be punished by a fine not to exceed the sum
of $1,000.00 or a lesser amount if limited by state law for each offense, and each and every day
such violation shall continue be deemed to constitute a separate offense. Allegation and evidence
of a culpable mental state is not required for proof of any offense defined by this ordinance.
11. Savings, Severability and Repealing Clauses. All ordinances of the City in conflict with the
provisions of this ordinance are repealed to the extent of that conflict. Cross-references in other
parts, articles or sections of the Anna Code which make reference to previous enactments
carrying the same designation as any section amended by this ordinance shall be construed as
referencing whichever currently effective provision best preserves the original intent and effect of
the cross-reference. If any provision of this ordinance shall be held to be invalid or
unconstitutional, the remainder of such ordinance shall continue in full force and effect the same
as if such invalid or unconstitutional provision had never been a part hereof. The City declares
that it would have passed this ordinance, and each section, subsection, clause, or phrase thereof
irrespective of the fact that any one or more sections, subsections, sentences, clauses, and phrases
be declared unconstitutional or invalid.
12. Publication. This emergency ordinance shall be in full force and effect immediately, and the City
Secretary is hereby directed to publish the caption hereof.
APPROVED AND ADOPTED BY THE CITY OF ANNA, TEXAS, this 24th day of March 2020.
________________________________
Nate Pike, Mayor
ATTEST:
________________________
Carrie L. Land, City Secretary
DECLARATION OF DISASTER AND PUBLIC HEALTH EMERGENCY
WHEREAS, in December 2019 a novel coronavirus, now designated COVID-19, was detected in Wuhan
City, Hubei Province, China. Symptoms of COVID-19 include fever, cough, and shortness of breath.
Outcomes have ranged from mild to severe illness, and in some cases death; and
WHEREAS, on January 30, 2020, the World Health Organization Director General declared the outbreak
of COVID-19 as a Public Health Emergency of International Concern (PHEIC), advising countries to
prepare for the containment, detection, Isolation and case management, contact tracing and prevention
of onward spread of the disease; and
WHEREAS, United States nationals were transported from Wuhan City, China to several secure locations
within the United States identified by the Centers for Disease Control and Prevention (CDC), including
military bases in Texas, in order to ensure the health and wellbeing of those persons; and
WHEREAS, on February 7, 2020, 91 Americans evacuated from Wuhan City, China (Cohort 1) arrived at
Texas military bases, with one person diagnosed with the virus and transported to a Texas hospital; and
WHEREAS, on February 17, 2020, the Centers for Disease Control evacuated 144 passengers from a
cruise ship docked in Japan (Cohort 2) to a Texas military base; and
WHEREAS, on February 20, 2020, 90 evacuees from Cohort 1 were released from quarantine and
returned to their homes; and
WHEREAS, persons in Cohort 2 that have not exhibited symptoms or have tested negative for the virus
were originally set to be released from quarantine at a Texas military base on March 2, 2020; and
WHEREAS, as of March 2, 2020 ten (10) persons evacuated to a Texas military hospitals have tested
positive for the virus and it is anticipated that the number of persons diagnosed with the virus Is likely to
increase, as testing for the virus continues; and
WHEREAS, on Saturday, February 29, 2020, one of the persons in Cohort 1 who had tested positive for
COVID-19 and subsequently tested negative on two tests was released from quarantine in Texas.
However, this person tested positive for the virus on a third test, with results coming in after her
release. This person visited a San Antonio mall, ate at its food court, and spent a few hours among other
persons, potentially exposing the public to the virus; and
WHEREAS, the person has been returned to quarantine at a Texas military base near San Antonio while
the CDC and local health authorities are taking steps to ensure the community is kept safe and the
exposure risk is minimized; and
WHEREAS, the identification of "community spread" cases of COVID-19 in the United States has
occurred and the virus is no longer limited to travel to China, or contact with travelers who have visited
China; and
WHEREAS, the World Health Organization has declared the coronavirus a pandemic and urged
aggressive action from all countries to fight it; and
WHEREAS, as of March 13, 2020, Collin County reports that there are five (5) confirmed positive cases of
COVID-19 in Collin County at this time and there are 63 persons under monitoring in Collin County; and
DECLARATION OF DISASTER AND PUBLIC HEALTH EMERGENCY PAGE 1
WHEREAS, as of March 13, 2020, Dallas County, the most populous County bordering Collin County,
reports that there are eight (8) confirmed positive cases of COVID-19 in Dallas County; and
WHEREAS, as of March 13, 2020, Dallas County declared a state of local emergency due to the COVID-19
pandemic; and
WHEREAS, as of March 13, 2020, Governor Greg Abbott declared a state of disaster for Texas over the
coronavirus pandemic; and
WHEREAS, pursuant to the Texas Disaster Act of 1975, the mayor is designated as the emergency
management director of the City of Anna, and may exercise the powers granted to the governor on an
appropriate local scale; and
WHEREAS, a declaration of local disaster and public health emergency includes the ability to reduce the
possibility of exposure to disease, control the risk, promote health, compel persons to undergo
additional health measures that prevent or control the spread of disease, including isolation,
surveillance, quarantine, or placement of persons under public health observation, including the
provision of temporary housing or emergency shelters for persons misplaced or evacuated and request
assistance from the governor of state resources; and
WHEREAS, by this Declaration of Disaster and Public Health Emergency, I declare all rules and
regulations that may inhibit or prevent prompt response to this threat suspended for the duration of the
incident; and
WHEREAS, pursuant to the authority granted to the Mayor under the Texas Disaster Act of 1975, I
authorize the use of all available resources of state government and political subdivisions to assist in the
City's response to this situation; and
WHEREAS, I, Nate Pike, the Mayor of the City of Anna, Texas, have determined that extraordinary and
immediate measures must be taken to respond quickly, prevent and alleviate the suffering of people
exposed to and those infected with the virus, as well as those that could potentially be infected or
impacted by COVID-19;
NOW, THEREFORE, BE IT DECLARED BY THE CITY OF ANNA, TEXAS:
1. That a local state of disaster and public health emergency is hereby declared for the City of Anna
pursuant to §418.108(a) of the Texas Government Code.
2. Pursuant to §418.108(b) of the Government Code, the state of disaster and public health
emergency shall continue for a period of not more than seven days from the date of this declaration
unless continued or renewed by the City Council.
3. Pursuant to §418.108(c) of the Government Code, this declaration of a local state of disaster and
public health emergency shall be given prompt and general publicity and shall be filed promptly with the
City Clerk.
4. Pursuant to §418.108(d) of the Government Code, this declaration of a local state of disaster
and public health emergency activates the City of Anna's emergency management plan.
DECLARATION OF DISASTER AND PUBLIC HEALTH EMERGENCY PAGE 2
5. Pursuant to §418 .020(d) of the Government Code, this declaration authorizes the City to
commandeer or use any private property, temporarily acquire, by lease or other means, sites required
for temporary housing units or emergency shelters for evacuees, subject to compensation
requirements.
6. Pursuant to §122.006 of the Health and Safety Code, this declaration authorizes the City to take
any actions necessary to promote health and suppress disease, including quarantine, examining and
regulating hospitals, regulating ingress and egress from the City, and fining those who do not comply
with the City's rules.
7. Pursuant to the statutory authority cited above, I, Mayor Nate Pike, declare that ingress into and
travel through the City of Anna from any persons that have been quarantined in a facility for treatment
of COVID-19 is not permitted without the written permission of the mayor. No previously quarantined
person shall be permitted to enter the City of Anna until further notice.
8. This Declaration shall take effect immediately from and after its issuance .
DECLARED AND ORDERED this 17 th day of March 2020.
;ta
Mayor Nate Pike
City of Anna, Texas
DECLARATION OF DISASTER AND PUBLIC HEALTH EMERGENCY PAGE 3
Item No. 7.
City Council Agenda
Staff Report
Meeting Date: 3/24/2020
AG E ND A IT E M :
Consider/Discuss/Act on an Ordinance postponing the May 2, 2020 General and S pecial Election
to the November 3, 2020 Uniform E lection Date. (City S ecretary Carrie L and)
S UM M ARY:
On the 17th day of March, 2020, the Mayor determined that extraordinary and immediate
measures must be taken to respond quickly, prevent and alleviate the suffering of people exposed
to and those infected with the virus, as well as those that could potentially be inf ected or impacted
by C O V I D-19, and issued a proclamation declaring a disaster for the City of Anna;
Given the manner in which the C O V I D -19 novel coronavirus spreads and its high degree of
contagiousness, the activities commonly associated with municipal elections and political
campaigns pose an unnecessary risk to public health and potential loss of life, and in this time of
emergency it is necessary to take swift and decisive action to save lives, protect the public
welfare, and reduce burdens on our health care system and medical professionals; and
Pursuant to his powers as Governor of the State of Texas, Greg Abbott has issued the following:
A proclamation suspending Sections 41.0052(a) and (b) of the Texas Election C ode and Section
49.103 of the Texas Water Code to the extent necessary to allow political subdivisions that would
otherwise hold elections on May 2, 2020, to move their general and special elections f or 2020
only to the next unif orm election date, occurring on November 3, 2020, without otherwise adjusting
the term of of f ice, and suspending Sections 31.093 and 42.0621(c) of the Texas Election Code
to the extent necessary to require all county election officers, if requested by an affected political
subdivision, to enter into a contract to furnish election services with any political subdivision who
postponed their election to November 3, 2020, under the authority of this proclamation.
Collin County E lections A dministrator, B ruce Sherbet, will NO T be offering the usual contract
election services as normally provided by the E lections D epartment for May 2, 2020 Election.
T he County will offer voting equipment for lease and the City may conduct their own election.
Strategic Connection
T his items supports the City of Anna Strategic Plan, specifically advancing:
Goal 4: High Performing Professional City
S TAF F RE C O M M E ND AT I O N:
Staff is recommending approval.
AT TAC HM E NT S :
Description Upload Date Type
Ordinance 3/20/2020 Ordinance
Governor P roclamation 3/20/2020 Backup Material
Election A dvisory 3/20/2020 Backup Material
Election A dvisory Questions 3/20/2020 Backup Material
Collin County Elections A dministrator's Communication 3/20/2020 Backup Material
ORDINANCE NO. _________
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS,
POSTPONING THE CITY’S GENERAL ELECTION ORDER FOR MAY 2020, FOR
THE PURPOSE OF ELECTING TWO (2) CITY COUNCIL MEMBERS AND A SPECIAL
ELECTION TO ELECT ONE (1) CITY COUNCIL MEMBER TO FILL AN UNEXPIRED
TERM OF OFFICE, TO THE UNIFORM GENERAL ELECTION DATE OF
NOVEMBER 3, 2020, AND AUTHORIZING RELATED ACTIONS; PROVIDING A
REPEALING CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING
FOR AN EFFECTIVE DATE.
WHEREAS, in accordance with the general laws and Constitution of the State of Texas, a
municipal officers’ election is normally held on the second Saturday in May; and
WHEREAS, the City Council of the City of Anna did order an election to be held on May 2,
2020, for the purpose of electing council members for Places 3, 4 and 5; and
WHEREAS, a state of local disaster and public health emergency currently exists in the United
States, the State of Texas, Collin County, and the City of Anna, as reflected in the official
proclamations regarding the COVID-19 virus; and;
WHEREAS, the nature of the COVID-19 disease outbreak is such that public health authorities
are exercising emergency powers to restrict activities which allow for continued community
spread of the virus; and
WHEREAS, as of March 13, 2020, United States President Donald Trump declared a national
emergency concerning the COVID-19 outbreak; and
WHEREAS, as of March 13, 2020, Governor Greg Abbott declared a state of disaster for Texas
over the coronavirus pandemic; and
WHEREAS, as of March 16, 2020, County Judge Chris Hill issued a disaster declaration for
Collin County, Texas; and
WHEREAS, on March 17, 2020, City of Anna Mayor Nate Pike declared a local state of disaster
and public health emergency in the City of Anna; and
WHEREAS, on March 18, 2020, Governor Greg Abbott by proclamation did suspend Sections
41.0052(a) and (b) of the Texas Election Code, and Section 49.103 of the Texas Water Code, to
the extent necessary to allow municipalities that would otherwise hold elections on May 2, 2020,
to move their general and special elections to the uniform election date occurring on November
3, 2020, without otherwise adjusting the term of office; and
WHEREAS, Governor Abbott’s proclamation of March 18, 2020 did further state that county
election officers, if requested by an affected political subdivision such as the City of Anna, would
enter into a contract to furnish election services for those who postpone their election to November
___________________ ______________ _____________ _____________ _____________ ____________
CITY OF ANNA, TEX AS_____________________________________________________________________________________________
CITY OF ANNA, TEXAS ORDINANCE NO. __________ PAGE 2 OF 4
3, 2020 under the authority of said proclamation; and
WHEREAS, on March 19, 2020, Governor Greg Abbott issued Executive Order GA-08 which
imposed restrictions on certain business operations and social activities as emergency measures,
WHEREAS, on the 24th day of March 2020, the City of Anna affirmed, adopted, renewed, and
extended the mayor’s declaration; and
WHEREAS, given the manner in which the COVID-19 novel coronavirus spreads and its high
degree of contagiousness, the activities commonly associated with municipal elections and
political campaigns pose an unnecessary risk to public health and potential loss of life, and in this
time of emergency it is necessary to take swift and decisive action to save lives, protect the public
welfare, and reduce burdens on our health care system and medical professionals; and
WHEREAS, the City Council of Anna has investigated and found that it is in the best interests of
the public health, welfare, good governance, and order for the municipality, during a time of
federal, state, county, and local public disaster and emergency, to postpone the election ordered
for May 2, 2020, until the November 3, 2020 uniform election date, and to take such further
measures as detailed below;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ANNA, TEXAS:
SECTION 1. Order Postponing Election; Confirmations; Major Relevant Dates.
1. The City of Anna, Texas does hereby exercise the authority provided by the Proclamation
by the Governor of the State of Texas, Greg Abbot, which did issue March 18, 2020, and
orders that its previously ordered general and special elections of May 2, 2020 shall be
postponed to November 3, 2020, and does request that the election officers of Collin
County, Texas, enter into an appropriate contract to furnish election services to the City of
Anna.
2. The City of Anna does hereby confirm that candidate filings for the postponed election will
remain valid for the election held on the November date and that the candidate filing period
will not be re-opened for the November election date.
3. The City of Anna does hereby confirm that all applications for ballot by mail (“ABBMs”)
for voters that are voting by mail due to being over the age of 65, or due to disability, will
still be valid for the postponed election.
The City of Anna does hereby confirm that ABBMs for voters who submitted ABBMs
based on expected absence from the county will not be valid for the postponed election.
4. Major relevant dates for the November 3, 2020 election:
a. The voter registration deadline is October 5, 2020
___________________ ______________ _____________ _____________ _____________ ____________
CITY OF ANNA, TEX AS_____________________________________________________________________________________________
CITY OF ANNA, TEXAS ORDINANCE NO. __________ PAGE 3 OF 4
b. Deadline to submit an ABBM is October 23, 2020
c. The dates for early voting shall be October 19 through October 30, 2020.
SECTION 2. Authorizations.
1. The City Secretary is authorized and directed to:
a. Deliver a copy of this ordinance to the election officials of Collin County, Texas,
as the request by the City of Anna for a contract for election services, or a joint
election agreement, pursuant to the Governor’s suspension of certain Texas
Election Code provisions on March 18, 2020.
b. Ensure that a copy of this ordinance and notice of the City’s exercise of authority
to postpone the election date is posted on the City’s website, and local media
organizations shall be alerted regarding the change.
c. Provide notice to the Collin County election officer regarding this change without
undue delay, and to provide same with a revised notice for posting on the county’s
website.
d. Arrange publication of this ordinance as soon as practicable.
2. The City Manager is authorized to coordinate and direct City staff to take additional actions
as needed to revise and update to the City’s original order of election, and to conduct the
election on November 3, 2020, and to ensure the public receives any notice required by law
for any changes in dates, main early voting locations, early voting dates and hours
(including weekend early voting), identities of the early voting clerks and their contact
information, or to branch early voting locations.
SECTION 3. Savings, Severability, and Repealer Clauses.
All ordinances, resolutions, or orders of the City in conflict with the provisions of this ordinance
are repealed to the extent of that conflict, including without limitation Ordinance No. 844-2020.
If any provision of this ordinance shall be held to be invalid or unconstitutional, the remainder of
such ordinance shall continue in full force and effect the same as if such invalid or unconstitutional
provision had never been a part hereof. The City declares that it would have passed this ordinance,
and each section, subsection, clause, or phrase thereof irrespective of the fact that any one or more
sections, subsections, sentences, clauses, and phrases be declared unconstitutional or invalid.
SECTION 4. Effective Date.
That this ordinance shall become effective immediately from and after its passage and publication
of its caption or content, if such publication is required by law.
___________________ ______________ _____________ _____________ _____________ ____________
CITY OF ANNA, TEX AS_____________________________________________________________________________________________
CITY OF ANNA, TEXAS ORDINANCE NO. __________ PAGE 4 OF 4
APPROVED AND ADOPTED by the City Council of the City of Anna, Texas on this the 24th
day of March 2020.
ATTESTED:
_________________________
City Secretary Carrie L. Land
APPROVED:
_________________________
Mayor Nate Pike
March 18,2020
The Honorable Ruth R.Hughs
Secretary of State
State Capitol Room 1E.8
Austin,Texas 78701
Dear Secretary Hughs:
FILED IN THE OFFICE OF THESECRETARyOFSTATE0:‘OMYCLOCK
Secretary of State
Pursuant to his powers as Governor of the State of Texas,Greg Abbott has issued the following:
A proclamation suspending Sections 41.0052(a)and (b)of the Texas Election Code and
Section 49.103 of the Texas Water Code to the extent necessary to allow political
subdivisions that would otherwise hold elections on May 2,2020,to move their general
and special elections for 2020 only to the next uniform election date,occurring on
November 3,2020,without otherwise adjusting the term of office,and suspending
Sections 31.093 and 42.0621(c)of the Texas Election Code to the extent necessary to
require all county election officers,if requested by an affected political subdivision,to
enter into a contract to furnish election services with any political subdivision who
postponed their election to November 3,2020,under the authority of this proclamation.
The original of this proclamation is attached to this letter of transmittal.
Governor
GOVERNOR GREG ABBOTT
Attachment
POST OFFICE Box 12428 AUSTIN,TEXAS 78711 512-463-2000 (VoICE)DIAL 7-1-1 FOR RELAY SERVICES
PROCLAMATION
BY THE
(%!t1fltttLTt 1f f1 f Lxz
TO ALL TO WHOM THESE PRESENTS SHALL COME:
WHEREAS,Section 41.001(a)(2)of the Texas Election Code provides that a general or
special election in this state shall be held on a uniform election date,and the next uniform
election date is occurring on May 2,2020;and
WHEREAS,Section 49.103 of the Texas Water Code provides that certain districts
governed by this provision are required to hold director elections in May of each even-
numbered year;and
WHEREAS,Section 41.0052 of the Texas Election Code prescribes a procedure for a
political subdivision to change a general election date,but the time for making such a
change has expired;and
WHEREAS,Section 31.093 of the Texas Election Code requires a county elections
administrator to enter into a contract to furnish election services upon request of a
political subdivision;and
WHEREAS,Section 42.0621(c)of the Texas Election Code does not require a political
subdivision to enter into a contract with a county or hold a joint election with a county on
the November uniform election date;and
WHEREAS,on March 13,2020,the Governor of Texas certified that the novel
coronavirus (COVID-19)poses an imminent threat of disaster and,under the authority
vested in the Governor by Section 418.0 14 of the Texas Government Code,declared a
state of disaster for all counties in Texas;and
WHEREAS,pursuant to Section 418.0 16 of the Texas Government Code,the Governor
has the express authority to suspend the provisions of any regulatory statute prescribing
the procedures for conduct of state business or the orders or rules of a state agency if
strict compliance with the provisions,orders,or rules would in any way prevent,hinder,
or delay necessary action in coping with a disaster.
NOW,THEREFORE,I,GREG ABBOTT,Governor of Texas,under the authority vested
in me by the Constitution and Laws of the State of Texas,do hereby suspend Sections
41.0052(a)and (b)of the Texas Election Code and Section 49.103 of the Texas Water
Code to .the extent necessary to allow political subdivisions that would otherwise hold
elections on May 2,2020,to move their general and special elections for 2020 only to the
next uniform election date,occurring on November 3,2020,without otherwise adjusting
the term of office.I further suspend Sections 31.093 and 42.0621(c)of the Texas Election
Code to the extent necessary to require all county election officers,if requested by an
affected political subdivision,to enter into a contract to furnish election services with any
political subdivision who postponed their election to November 3,2020,under the
authority of this proclamation.
The authority ordering the election under Section 3.004 of the Texas Election
Code is the authority authorized to make the decision to postpone its election in
accordance with this proclamation.
Current office holders will hold over to the extent authorized by Article XVI,
Section 17 of the Texas Constitution.
FILED IN THE OFFiCE OF THE
SECRETARY OF STATE
t(OcF.O’CLOCK
MAR 18 2020
Governor Greg Abbott
March 1$,2020
Pro ctal?t atio,t
Page 2
rE
UTH R.HUGHS
Secretary of State
FILED IN THE OFFICE OF THESECRETARYOFSTATE
—J-QIP!!rO’CLocK
MAR 182020
IN TESTIMONY WHEREOF,I
have hereto signed my name and
have officially caused the Seal of
State to be affixed at my office in the
City of Austin,Texas,this the 18th
day of March,2020.
Governor of Texas
ATTESTED BY:
Election Advisory No. 2020-12
To: Election Officials
From: Keith Ingram, Director of Elections
Date: March 18, 2020
RE: Actions for May 2, 2020 Uniform Election Date
The purpose of this advisory is to provide guidance to local political subdivisions regarding
their options for any general or special elections that have been ordered for the May 2, 2020
uniform election date. Pursuant to Section 418.016 of the Texas Government Code, the
Governor has issued a proclamation suspending certain provisions of the Texas Election
Code and the Texas Water Code to allow all local political subdivisions that are utilizing the
May 2, 2020 uniform election date to postpone their election to the November 3, 2020
uniform election date. Pursuant to Texas Election Code 31.003 and 31.004, our office has
issued the following guidelines for entities that choose to exercise this authority and
postpone their election to the November uniform election date.
Effect of Postponement of Election
• Candidate Filings: By postponing their election date, the political subdivision is
preserving all candidate filings and ballot order actions that have already been taken.
The postponement does not have the effect of reopening candidate filings.
o Deadlines related to Candidate Filings, Declarations of Ineligibility,
Withdrawals or Death: The deadlines that apply to the November 3, 2020
election would apply to all candidates who are currently on the ballot for the
May 2, 2020 election.
• Ballot By Mail Requests: All applications for a ballot by mail (ABBMs) that were
filed for the May 2, 2020 election that are marked annual would apply for the
November 3, 2020 election. All single use ABBMs that were submitted for reasons of
age or disability would still be valid for the November 3, 2020 election. If a single use
ABBM was submitted and indicated the reason for voting by mail was due to
absence from the county, this ABBM would not be valid as the applicable election
date has changed. However, we would recommend that the political subdivision
send a letter to these voters along with a new ABBM in case the circumstances
surrounding their absence from the county are still valid or the voter is otherwise
eligible to vote by mail.
• Ballots by Mail: If a political subdivision has already sent out mail ballots, those mail
ballots that are returned would still be valid for the November 3, 2020 postponed
election date.
• Election Records: All records, including candidate filings, applications to vote by
mail, ballot proofs, and printed ballots shall be retained and preserved.
o Printed Ballots: If your ballots have already been printed up, you may be
able to reuse them for November. However, if you must change your ballot to
reflect any corrections or changes that occur between now and November,
you would treat the original ballots as you would in a traditional ballot
correction and those ballots should be destroyed in accordance with Section
52.0064 of the Texas Election Code.
• Requirement to use County Election Precincts in November 2020: Per Section
42.002 of the Texas Election Code, county election precincts are required for all
elections occurring in November 2020. You will need to work with your county
election officer to determine whether you need to make any modifications to your
ballot in light of this requirement.
• Requirement for County Election Officer to contract with Local Political
Subdivisions: All county election officers are required to contract with local political
subdivisions that postponed their May 2, 2020 election and that request a contract
for election services or a joint election agreement with their county election officer
pursuant to the Governor’s suspension of certain Texas Election Code provisions.
• Office Hours: The relevant dates for maintaining office hours for election purposes
will be based on the November uniform election date rather than the May election
date. Under Section 31.122 of the Texas Election Code, those office hours will need
to be maintained for at least three hours each day, during regular office hours, on
regular business days between September 14, 2020 and December 13, 2020.
However, these entities should post contact information for individuals to contact
their office about election-related issues during the timeframe that those offices may
be closed over the coming months.
• Holdovers in Public Office: Under Art. XVI, Sec. 17 of the Texas Constitution, the
individuals who currently hold public offices that are scheduled to be on the ballot on
the May uniform election date will continue to exercise the duties of those offices
until the new officers take their oaths of office, following the November uniform
election date.
• Campaign Finance Filings: Please contact the Texas Ethics Commission for
further guidance on how these modified timelines will affect any campaign finance
reporting requirements. Their office can be reached at (512) 463-5800.
• Candidates on the ballot in both May and November: For candidates that may be
running for two offices (one normally occurring in May and one normally occurring in
November), these candidates will not be removed from the ballot as they are
separate elections that are normally not occurring on the same date.
Required Action by Governing Body to Move Election Date
In order to utilize this move, the governing body of the political subdivisions holding the
elections must order the postponement of their election to the November 3, 2020 uniform
election date. The order fo this official action should contain the following items:
1. A reference to the proclamation that authorizes the entity to postpone their
election date, and the fact that the political subdivision is exercising this
authority.
2. Confirmation that the candidate filings for the election will remain valid for the
election held on the November date and that the filing period will not be re-
opened for the November election date.
3. Confirmation that all ABBMs for voters that are voting by mail due to being
over the age of 65 or due to disability will still be valid for the postponed
election, and that ABBMs for voters who submitted ABBMs based on
expected absence from the county would not be valid for the postponed
election.
4. The major relevant dates for the November election, including the voter
registration deadline (October 5, 2020), the deadline to submit an ABBM
(October 23, 2020), and the dates for early voting (October 19, 2020 –
October 30, 2020).
Necessary Revisions to Order of Election
In addition, the entity will need to meet by August 17, 2020 to make any necessary revisions
to the entity’s original order of election. Those revisions may include:
1. The change to the date of the election;
2. Any change in location of the main early voting location;
3. Any changes to early voting dates and hours, including weekend early voting;
4. Any changes to the identity of the early voting clerk and their contact
information; or
5. Any changes to branch early voting locations.
If you are holding a bond election, you may need to make additional revisions to your order
of election for that bond election. If this is the case, we recommend reaching out to your
bond counsel for additional guidance.
Securing Election Records
All election records should be stored and secured during the postponement period. This
may require your entity to use preservation methods that are similar to the methods you
would use during the preservation period after the election has occurred. This includes:
• Storing returned ballots by mail in locked, sealed ballot boxes.
• Securely storing any unused ballots.
• Securely retaining any relevant election records, including candidate
applications and
ABBMs.
Voting System Equipment
If you are leasing voting system equipment from the county or directly from the vendor, then
you may need to contact your vendor or your county regarding any necessary modifications
to those lease agreements or to modify your procedures and timelines for receiving that
equipment.
Open Meeting Requirements
The Governor has suspended and modified certain open meeting requirements pursuant to
his disaster declaration. These changes include allowing the entity to establish procedures
for telephonic or video conferenced meetings of governmental bodies that are accessible to
the public. These procedures must include a process for members of the public to
participate and address the governmental body in those meetings, notice to the public on
the means of participating remotely, and access to the public for recordings of those
meetings. For more information, please review the applicable documentation from the
Governor’s Office or contact the Office of the Attorney General.
Update Official Websites and Notify Media
Any entities that are exercising this authority to postpone their election date must post
notice on the entity’s website and should alert any local media organizations regarding this
change to their election date. The entity must also provide notice to their county election
officer regarding this change, as the county is required to post the entity’s notice of election
on the county’s website no later than the 60th day before the date of the election under
Election Code 4.008. If that election date will be changing due to the entity’s decision to
postpone the election then the entity must provide a revised notice to the county for posting
on the county’s website. If you have any questions regarding this advisory, please contact
the Elections Division at 1-800-252- 2216.
KI:CA:CP
March 19, 2020
Dear Election Officials:
We’ve (Texas Secretary of State) received a number of questions related to the Governor’s proclamation
and Advisory 2020-12 (see email below). We appreciate the questions and would like to provide a few
clarifications.
1. This is NOT a permanent move. The Governor’s proclamation has the effect of postponing an
election, but it is not a permanent move. The result is that your current office holders will be
holdovers until the next election occurs. Your newly elected office holders in November will
have a shorter term. Their next election will return back to the May date.
2. Elections that have been properly cancelled: If your entity cancelled their May 2, 2020 election,
your new officers will still be able to take office after the May 2, 2020 election date. If you
cancelled part of your election, you will still let the candidates that were declared elected be
sworn in and the remainder of your election will occur in November if you choose to postpone
your May election. For those officers that took the oath of office after the May 2, 2020 date,
you would not have to place their names in the “unopposed candidates declared elected” box
on your ballot in November as these candidates will have already taken office.
3. Multi-County Territories: If your entity is in more than one county, you will be required to use
each county’s polling places for the November 2020 election. You will also be required to share
at least one early voting location in accordance with Section 85.010 of the Texas Election Code.
4. Countywide Polling Places (Vote Centers): If your county utilizes countywide polling places for
November 2020, then you will be required to use all polling locations within each county that
contains territory for your entity.
5. Contracting Issues: If a contract hasn’t been executed between the county elections officer and
the local political subdivision, the county does NOT have an obligation to contract in May
2020. If a contract has been executed, then both parties would need to consult with their
attorney regarding options for modifying the terms of the contract. Additionally, when you
contract with your county in November, this allows you to use a joint ballot, shared election
workers, and shared voting system equipment. Political subdivisions will most likely not be
required to obtain their own separate voting system equipment or epollbooks.
Thank you all for the very thoughtful questions. We appreciate your patience in allowing us time to
work through some of your questions. Please let us know if there’s anything else you need from us.
Thank you,
Christina Worrell Adkins
Legal Director – Elections Division
Office of the Texas Secretary of State
1019 Brazos Street | Rudder Building, 2nd Floor | Austin, Texas 78701
1.800.252.VOTE (8683)
elections@sos.texas.gov |
March 19, 2020
From Bruce Sherbet:
All,
In follow-up to my email to everyone yesterday strongly recommending that your entity postpone your
May 2, 2020 election as authorized by the Proclamation issued by Governor Abbott, for entities
declining postponement of your election, I have decided to take a position that I have not exercised in
my 30 years as an elections administrator. I have given much thought to the potential serious impact
caused by the COVID pandemic and the need to follow guidelines outlined under the disaster
declaration and in particular how it relates to conducting a May 2nd election. Under the current
circumstances and unknowns, and as permitted under 41.001(d) of the Texas Election Code, I will not be
offering the usual contract election services as normally provided by the Elections Department for a May
2, 2020 Election. If your entity opts not to postpone your May 2, 2020 election, the county will offer
voting equipment for you to lease including ballot stock and election supplies. In addition, I can provide
our election training videos and PowerPoint training materials for you to use in training election
workers. I will offer my assistance and expertise to assist you but all other aspects of conducting the
election normally provided by the county under the election services contract will be the responsibility
of the entity.
For entities opting to postpone your elections to November 3, 2020, we will prepare a new election
services contract because there are other entities normally scheduled to be conducting elections on that
date. I want to reiterate that there will be no cost increases if your election is postponed to November.
In fact, I anticipate the cost to conduct your election in November will be less for your entity than a May
2020 election because of the additional cost sharing between contracting entities. If your entity has
already submitted a deposit to the county, we can issue you a refund, or apply the deposit to the
November election.
I apologize for any inconvenience that this decision has caused your entity.
Best regards,
Bruce Sherbet
Elections Administrator
Collin County Elections
2010 Redbud Blvd., Ste 102
McKinney, TX 75069
972-547-1900
March 18, 2020
Good afternoon,
While I don’t have the authority to require the contracting entities postpone your elections to
the November 3, 2020 General Election, it is my strong recommendation that your entity
postpone your election as authorized by the attached Proclamation issued by Governor Abbott
today. I share the following reasons with other elections administrators for this
recommendation:
• The COVID-19 pandemic is still a fluid situation with an unknown outcome. The experts
have consistently stated the situation will continue to get worse before improvement is
seen. There are numerous unknowns at this time causing an extremely challenging
situation for conducting a May 2, 2020 Election.
• The public unease is also present in the people that you ask to work your elections. It is
a certainty that we will have some difficulty in finding people who are willing to serve as
poll workers, and remember that a vast majority of poll workers fall into the senior age
and are in the high risk bracket. In fact, Florida had some polling sites that were
unopened because they could not get anyone to work them. We do not want to have
such a scenario in Collin County.
• Collin County, as most other jurisdictions, is currently under a disaster declaration that
has an unknown ending date. Part of that declaration includes “social distancing” which
is extremely difficult in an election scenario. This is also the case with training. Current
CDC guidelines recommend gatherings of no more than 10 people; this would make
training of poll workers very difficult and maintaining CDC’s guideline of 10 people
would be extremely difficult in a polling site.
• The availability of buildings that some of you offered as polling sites have now been shut
to the public. So even now, there is some confusion whether those buildings are still
available for use as a polling location.
There will be no cost increases assessed to your entity for conducting your election in
November verses May. The terms and costs agreed to under the May 2, 2020 Election Services
Contract will be honored if you postpones your election to November.
The state did not provide a deadline for you to make a decision but it is imperative that I hear
back as soon as possible. Please let me know your decision by Friday, March 18, 2020. I
understand that you may not be able to take formal action by that date, but if you can give us
written guidance we can take actions to move in the necessary direction.
Thank you for your understanding concerning this matter.
Sincerely,
Bruce Sherbet
Elections Administrator
Collin County Elections
2010 Redbud Blvd., Ste. 102
McKinney, TX 75069