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2015-09-08 Workshop & Regular Meeting
YiOUIV ITOM97K WW CITY OF ANNA AGENDA NOTICE — CITY COUNCIL WORKSHOP September 8, 2015 6:30 p.m. — Anna City Hall Administration Building The City Council of the City of Anna will meet in Workshop Session at 6:30 p.m., September 8, 2015 at the Anna City Hall Administration Building, located at 111 N. Powell Parkway (Hwy 5), regarding the following items: 1. Call to Order. 2. Roll Call and Establishment of Quorum. 3. Briefing/Discussion regarding Northpointe Crossing drainage ditch. (Joseph Johnson) 4. 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); Empowered Training Centre economic development agreement b. discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); acquisition of right-of-way, easements, and land for municipal facilities 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. 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. 09-08-15 CC Workshop Meeting Agenda.doc 1 Posted 09-04-15 5. Consider/Discuss/Action on any items listed on posted agenda for September 8, 2015 City of Anna City Council Work Session or any Closed Session occurring during this Workshop, as necessary. 6. Adjourn. This is to certify that I, Carrie L. Smith, 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., September 4, 2015. Carrie L. Smith, 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. 09-08-15 CC Workshop Meeting Agenda.doc 2 Posted 09-04-15 CITY OF ANNA, TEXAS AGENDA SUBJECT: Call to order. SUMMARY: STAFF RECOMMENDATION: Item No. 1 WS City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: City Manager Exhibits: None CITY OF ANNA, TEXAS AGENDA SUBJECT: Roll call and establishment of quorum. SUMMARY: Mayor establishes a quorum STAFF RECOMMENDATION: Item No. 2 W S City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: City Manager Exhibits: None CITY OF ANNA, TEXAS Item No. 3 W S City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: Joseph Johnson Exhibits: Yes AGENDA SUBJECT: Briefing/Discussion item related to Northpointe Crossing drainage. SUMMARY: Earlier this year we received complaints from several Northpointe Crossing residents about stagnant water and flooding concerns related to a major drainage channel that runs through Northpointe Crossing. The maintenance responsibility for the drainage channel rests with the Homeowner's Association (HOA). Our Code Enforcement staff has been working with the property management representative to correct issues related to vegetation removal and the mitigation of standing water. To date the property management company has completed some vegetation removal. We recently met with the property management company to review the channel condition. Per our General Ordinances the channel is required to be maintained in a manner that prevents soil erosion, stagnant water, and does not create a public nuisance. Per our Subdivision Regulations drainage easements are required to be kept clear of obstructions including vegetation or anything that may interfere with the proper operation of the drainage system. The current condition of the channel does not meet that criteria. The property management company has solicited a bid for the repair and maintenance of the channel. Due to the expected cost, we are working with the property management company to see if we can assist them by allowing a phased approach to the repair and maintenance of the channel. Essentially, the standing water issue would be corrected now and a schedule would be submitted for the remaining issues. STAFF RECOMMENDATION: This item is for briefing/discussion purposes only. CITY OF ANNA, TEXAS Item No. 4 W S City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: City Manager Exhibits: None AGENDA SUBJECT: 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: SUMMARY: 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) b. discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); acquisition of right-of-way, easements, and land for municipal facilities; 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. CITY OF ANNA, TEXAS Item No. 5 WS City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: City Manager Exhibits: None AGENDA SUBJECT: Consider/Discuss/Action on any items listed on posted agenda for Workshop Session or any closed session occurring during this Regular Meeting, as necessary. SUMMARY: STAFF RECOMMENDATION: CITY OF ANNA, TEXAS AGENDA SUBJECT: Adjourn SUMMARY: Item to adjourn the meeting. STAFF RECOMMENDATION: Staff recommends a motion to adjourn. Item No. 6 W S City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: City Manager Exhibits: None TIOURl HOMETOWN CITY OF ANNA AGENDA NOTICE — CITY COUNCIL MEETING September 8, 2015 7:30 p.m. — Anna City Hall Administration Building The City Council of the City of Anna will meet in Regular Session at 7:30 p.m., September 8, 2015, at the Anna City Hall Administration Building, located at 111 North Powell Parkway (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 wish to speak on an open -session agenda item, please fill out the Opinion/Speaker Registration Form and turn it in to the City Secretary before the meeting starts. 1. Call to Order. 2. Invocation and Pledge of Allegiance. 3. Citizen comments. Citizens are allowed three minutes to speak. The Council is unable to respond to or discuss any issues that are brought up during this section that are not on the 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. 4. Receive reports from Staff or the City Council about items of community interest. Items of community interest include: expressions of thanks, congratulations, or condolence, information 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 public employment); a reminder about an upcoming event organized or sponsored by the governing body, information regarding a social, ceremonial, or community 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. 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. 09-08-15 CC Regular Meeting Agenda.doc 1 Posted 09-04-15 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 the City Council Minutes Work and Regular Session for August 25, 2015. (Carrie Smith) b. Approve the City Council Minutes Special Session for September 1, 2015. (Carrie Smith) c. Authorize the City Manager to solicit bids for the Texas Community Development Block Grant (TxCDBG) Sewer Line Project. (Joseph Johnson) d. Approve a Resolution renewing a tower license agreement with Tier One Converged Networks (Clayton Fulton) e. Approve a Resolution authorizing the purchase of Police department vehicles. (Clayton Fulton) 6. Consider/Discuss/Action regarding an ordinance adopting the FY 2015-2016 Budget. (Clayton Fulton) 7. Consider/Discuss/Action regarding an ordinance adopting the 2015 Tax Rate. (Clayton Fulton) 8. Consider/Discuss/Action regarding a Resolution to ratify the property tax revenue increase reflected in the City of Anna FY 2015-2016 Budget. (Clayton Fulton) 9. a. Public Hearing for the City Council to hear public comment regarding an ordinance amending Part IV, Article 7, Section 8, of the Anna City Code regarding water and sanitary sewer service rates. (Clayton Fulton) b. Consider/Discuss/Action regarding an ordinance amending Part IV, Article 7, Section 8, of the Anna City Code regarding water and sanitary sewer service rates. (Clayton Fulton) 10. Consider/Discuss/Action regarding a Resolution approving a Development Agreement with Texas New Mexico Power Company. (Maurice Schwanke) 11. a. Public Hearing for the City Council to hear public comment regarding an ordinance amending Part III -A (Subdivision Regulations), Article 2, Section 1.05 of the Anna City Code regarding plat submission timing and materials. (Maurice Schwanke) 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. 09-08-15 CC Regular Meeting Agenda.doc 2 Posted 09-04-15 b. Consider/Discuss/Action regarding an ordinance amending Part III -A (Subdivision Regulations), Article 2, Section 1.05 of the Anna City Code regarding plat submission timing and materials. (Maurice Schwanke) 12. Consider/Discuss/Action regarding a resolution authorizing the dedication easement to Grayson Collin Communications. (Joseph Johnson) 13. Consider/Discuss/Action regarding a resolution authorizing an Agreement with American Municipal Services Corporation for utility and court collections. (Clayton Fulton) 14. 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); Empowered Training Centre economic development agreement. b. discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); acquisition of right-of-way, easements, and land for municipal facilities. 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. 15. Consider/Discuss/Action on any items listed on posted agenda for September 8, 2015 or any closed session occurring during this meeting, as necessary. 16. Adjourn. This is to certify that I, Carrie L. Smith, 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. September 4, 2015. Carrie L. Smith, 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. 09-08-15 CC Regular Meeting Agenda.doc 3 Posted 09-04-15 CITY OF ANNA, TEXAS AGENDA SUBJECT: Roll call and establishment of quorum. SUMMARY: Mayor establishes a quorum STAFF RECOMMENDATION: Item No. 1 City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: City Manager Exhibits: None CITY OF ANNA, TEXAS AGENDA SUBJECT: Invocation and Pledge of Allegiance. SUMMARY: ��e1yylX�Ii ►� ►�_�L�P►>A Item No. 2 City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: City Manager Exhibits: N/A CITY OF ANNA, TEXAS AGENDA SUBJECT: Citizen comments. SUMMARY: Item No. 3 City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: City Manager Exhibits: N/A Citizens are allowed three minutes to speak. The Council is unable to respond to or discuss any issues that are brought up during this section that are not on the 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. STAFF RECOMMENDATION: CITY OF ANNA, TEXAS Item No. 4 City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: City Manager Exhibits: N/A AGENDA SUBJECT: Receive reports from Staff or the City Council about items of community interest. SUMMARY: Items of community interest include expressions of thanks, congratulations, or condolence; information 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 public employment); a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community 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. STAFF RECOMMENDATION: CITY OF ANNA, TEXAS Item No. 5 City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: City Manager Exhibits: Attached AGENDA SUBJECT: These items consists of non -controversial or "housekeeping" items required by law. Items may be considered individually by any Council Member making such request prior to motion and vote on the Consent Items. SUMMARY: a. Approve the City Council Minutes Work and Regular Session for August 25, 2015. (Carrie Smith) b. Approve the City Council Minutes Special Session for September 1, 2015. (Carrie Smith) c. Authorize the City Manager to solicit bids for the Texas Community Development Block Grant (TxCDBG) Sewer Line Project. (Joseph Johnson) d. Approve a Resolution renewing a tower license agreement with Tier One Converged Networks (Clayton Fulton) e. Approve a Resolution authorizing the purchase of Police department vehicles. (Clayton Fulton) STAFF RECOMMENDATION: Staff recommends approval of the consent items. ANNA CITY COUNCIL MINUTES WORKSHOP SESSION AUGUST 25, 2015 The City Council of the City of Anna met in Workshop Session on the above date at the Anna City Hall Administration Building, located at 111 N. Powell Parkway (Hwy 5), regarding the following items: 1. Call to Order. Mayor Mike Crist called the meeting to order at 6:30 pm. 2. Roll Call and Establishment of Quorum. Mayor Mike Crist and Council Members Justin Burr, John Beazley, Chad Barnes and Dick Dowd were present. Council Members Nathan Bryan and Lauren Lovato were absent. 3. Briefing/Discussion regarding Pecan Grove street lights (Joseph Johnson) Director of Public Works Joseph Johnson presented the item to Council and answered questions. Council requested that this item be placed on a future agenda. 4. Briefing/Discussion regarding employee health insurance benefits. (Clayton Fulton) Finance Director Clayton Fulton presented the item to Council and answered questions. 5. 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) b. discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); acquisition of right-of- way, easements, and land for municipal facilities; 08-25-15 CC Workshop Minutes 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); discuss proposed mixed use development; update on economic development negotiations; The Council further reserves the right to enter into Closed Session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. MOTION: Council Member Barnes moved to enter Closed Session at 6:46 pm. Council Member Dowd seconded. Motion carried. AYE 5 NAY 0 ABSTAIN 0 MOTION: Council Member Barnes moved to return to open session at 7:22 pm. Council Member Dowd seconded. Motion carried. AYE 5 NAY 0 ABSTAIN 0 6. Consider/Discuss/Action on any items listed on posted agenda for August 25, 2015 City of Anna City Council Regular Meeting or any Closed Session occurring during this Workshop, as necessary. No action taken. 7. Adjourn. Council Member Barnes moved to adjourn at 7:23 pm. Council Member Burr seconded. Motion carried. AYE 5 NAY 0 ABSTAIN 0 Approved on the day of , 2015. ATTEST: APPROVED: City Secretary Carrie L. Smith Mayor Mike Crist 08-25-15 CC Workshop Minutes 2 ANNA CITY COUNCIL MINUTES REGULAR SESSION AUGUST 25, 2015 The City Council of the City of Anna met in Regular Session on the above date at the Anna City Hall Administration Building, located at 111 North Powell Parkway (Hwy 5), to consider the following items. 1. Call to Order. Mayor Mike Crist called the meeting to order at 7.30 pm. Council Members Burr, Beazly, Barnes and Dowd were present. 2. Invocation and Pledge of Allegiance. Mayor Mike Crist led the Invocation and Pledge of Allegiance. 3. Citizen comments. Citizens are allowed 3 minutes to speak. The Council is unable to respond to or discuss any issues that are brought up during this section that are not on the 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. No comments. 4. Receive reports from Staff or the City Council about items of community interest. Items of community interest include: expressions of thanks, congratulations, or condolence, information 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 public employment); a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community 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. Council will hold a special meeting on September 1, 2015. 5. Consent Items. These items consist of non -controversial or "housekeeping" items required by law. Items may be considered 08-25-15 CC Regular Minutes individually by any Council Member making such request prior to a motion and vote on the Consent Items. a. Approve the City Council Minutes for August 11, 2015. b. Approve a resolution authorizing the renewal of an agreement with Collin County for EMS Services. (Chief Gothard) c. Approve a resolution authorizing a Special Event Permit and an Agreement with the Greater Anna Chamber of Commerce for Glowfest. (Maurice Schwanke) MOTION: Council Member Barnes moved to approve all items by consent. Mayor Crist seconded. Motion carried. AYE 5 NAY 0 ABSTAIN 0 6. Presentation of the Proposed 2015-16 Fiscal Year Budget. (Clayton Fulton) Finance Director Clayton and answered questions. 7. Public Hearing: For the City Council to hear public comment on the proposed 2015-16 fiscal year budget. (Clayton Fulton) Mayor Crist opened the public hearing at 7.41 p.m. No comments. Mayor Crist closed the public hearing at 7.41 p.m. 8. Public Hearing: For City Council to hear public comment on the proposed 2015 Tax Rate. (Clayton Fulton) Mayor Crist opened the public hearing at 7.43 p.m. No comments. Mayor Crist closed the public hearing at 7.43 p.m. 9. Consider/Discuss/Action regarding a resolution approving a funding agreement with the Anna Education Foundation for promotional purposes and CTE job training programs. (Jessica Perkins) City Manager Sanders presented the item. Council tabled the item to a future meeting. 10. Consider/Discuss/Action regarding appointments to the Parks Advisory Board. (City Council) 08-25-15 2 CC Regular Minutes Council talked with the applicant present, Ginny Finan. MOTION: Mayor Crist moved to appoint Ginny Finan to the Parks Advisory Board. Council Member Barnes seconded. Motion carried. AYE 5 NAY 0 ABSTAIN 0 11. 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 U51.071) b. discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); acquisition of right-of- way, easements, and land for municipal facilities; 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); discuss proposed mixed use development; proposed retail development; 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. Council took no action on this item. 12. Consider/Discuss/Action on any items listed on posted agenda for July 28, 2015 Workshop Session or any closed session occurring during this Regular Meeting, as necessary. No action taken. 13.Adjourn. MOTION: Council Member Beazly made the motion to adjourn at 7:52 p.m. Council Member Burr seconded. Motion carried. AYE 5 NAY 0 ABSTAIN 0 08-25-15 CC Regular Minutes Approved on the day of , 2015. ATTEST: APPROVED: City Secretary Carrie L. Smith Mayor Mike Crist 08-25-15 CC Regular Minutes ANNA CITY COUNCIL MINUTES SPECIAL SESSION SEPTEMBER 1, 2015 The City Council of the City of Anna met in a Special Session on the above date at the Anna City Hall Administration Building, located at 111 North Powell Parkway (Hwy 5), to consider the following items. 1. Call to Order. Mayor Crist called the meeting to order at 7.30 pm. Roll Call and Establishment of Quorum. Council Member's Burr, Lovato, Barnes, Bryan and Dowd were present. 2. Invocation and Pledge of Allegiance. Mayor Crist led the Invocation and Pledge of Allegiance. 3. Public Hearing: For City Council to hear public comment on the proposed 2015 Tax Rate. (Clayton Fulton) Mayor Crist opened the public hearing at 6.32 p.m. No comments. Mayor Crist closed the public hearing at 6.32 p.m. 4. Consider/Discuss/Action regarding a resolution approving an interlocal agreement with Collin County for police department dispatch services. (Chief Jenks) MOTION: Council Member Bryan moved to approve. Councilmember Burr seconded. Motioned carried. AYE 6 NAY 0 ABSTAIN 0 5. Consider/Discuss/Action regarding a resolution approving a funding agreement with the Anna Education Foundation for promotional purposes and CTE job training programs. (Jessica Perkins) Economic Development Officer Perkins reviewed the program and answered questions. 09-01-2015 1 CC Special Minutes MOTION: Council Member Barnes moved to approve. Councilmember Bryan seconded. Motioned carried. AYE 6 NAY 0 ABSTAIN 0 6. 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. discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); acquisition of right-of- way, easements, and land for municipal facilities; b. 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); discuss proposed mixed use development; proposed retail development; 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. MOTION: Council Member Bryan moved to adjourn to Closed Session at 6:38 p.m. Council Member Dowd seconded. Motion carried. AYE 6 NAY 0 ABSTAIN 0 Mayor Crist reconvened the regular session at 6:57 p.m. 7. Consider/Discuss/Action on any items listed on posted agenda for September 1, 2015 or any closed session occurring during this meeting, as necessary. MOTION: Council Member Dowd moved to take no action. Councilmember Barnes seconded. Motion carried. 6 NAY 0 ABSTAIN 0 09-01-2015 CC Special Minutes 2 8. Adjourn. MOTION: Council Member Bryan moved to adjourn at 6:58 p.m. Council Member Barnes seconded. Motion carried 6-0. F-101 • 01/_\'ti] Approved on the ATTEST: City Secretary Carrie L. Smith day of ABSTAIN 0 2015. APPROVED: Mayor Mike Crist 09-01-2015 CC Special Minutes 3 CITY OF AN NA. TEXAS Item No. 5c City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: Joseph Johnson Exhibits: Yes AGENDA SUBJECT: Authorize the City Manager to solicit bids for the Texas Community Development Block Grant (TxCDBG) Sewer Line Project. SUMMARY: Staff is requesting Council authorization to solicit competitive bids for the 2014 TxCDBG Sewer Replacement Project. The improvements are consistent with the City's goal of replacing aging infrastructure and reducing inflow and infiltration in the wastewater collection system. The project includes the installation of 2,920 linear feet of 6" sewer line along with manholes, services and appurtenances in and around Riggins Street, Interurban Street, Edward Street, Genoveva Lane, and Cunningham Boulevard. Council has previously authorized design of the project by Birkhoff, Hendricks & Carter, approved an administration services agreement, and approved various grant related documents. This project is funded by grant funds administered by the Texas Department of Agriculture in the amount of $275,000 and matching funds to be allocated from the Utility Fund fund balance in the amount of $149,220. STAFF RECOMMENDATION: Staff recommends approval of this item. 111212015 City of Anna, Texas 2014 Texas Community Development Block Grant Program S. Riggins Street and S. Interurban Street Sanitary Sewer Replacements Project Location Map I:\7015 contdev\anna\2014 tcdbg sanitary sewer replacements\tdra agreement.doc Page 5 of 17 BIRKHOFF, HENDRICKS & CARTER, L.L.P. CONSULTING ENGINEERS Client: City of Anna Project: 2015 Texas CDBG Project Riggins Street and Interuban Street Sanitary Sewer Replacement Project No. Not Assigned Date: 12-Jan-15 By: GCH ENGINEER'S OPINION OF CONSTRUCTION COST Item No. I Description I Quantity I Unit I Price Amount 1 Furnish and Install 6-inch Sanitary Sewer Line 2,820 L.F. $ 45.00 $ 126,900.00 2 Furnish and Install 6-inch Sanitary Sewer w/ Class G Embedment 100 L.F. $ 65.00 $ 6,500.00 3 Furnish and Install 4-inch Sanitary Sewer Service Line 1,590 L.F. $ 26.00 $ 41,340.00 4 Furnish and Install 4-foot diameter manhole 8 EA $ 3,500.00 $ 28,000.00 5 Connect to Existing Service with new Double Cleanout 53 EA $ 500.00 $ 26,500.00 6 Sanitary Sewer Clean -out 6 EA $ 400.00 $ 2,400.00 7 Furnish and Install Trench Safety Plan and System 2,820 L.F. $ 2.50 $ 7,050.00 8 Concrete Street or Driveway Replacement 173 S.Y. $ 45.00 $ 7,800.00 9 Gravel Street or Driveway Replacement 276 S.Y. $ 30.00 $ 8,266.67 10 Remove and Replace Fence 720 L.F. $ 25.00 $ 18,000.00 11 Erosion Control Plan and Implementation 1 LS $ 6,000.00 $ 6,000.00 Subtotal: $ 278,756.67 Contingencies and Miscellaneous Items 10% $ 27,875.67 Construction Subtotal: $ 306,632.34 En ineerin Surve in Geotech 20% $ 61,326.47 Qaulity Control/Material Testing 2.5% $ 7,665.81 Land Rights 1.29 Acre $ 10,890.00 $ 14,100.00 Total Project Budget: $ 389,724.61 USE: $ 39200.00 jlclericahwa \2005147 broadhead road\supplemental design\eng-estimates\broadhead est. 287 to april.sls Page I of 1 CITY OF AN NA. TEXAS Item No. 5d City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: Clayton Fulton Exhibits: Yes AGENDA SUBJECT: Approve a Resolution renewing a tower license agreement with TierOne Converged Networks SUMMARY: The City currently has a tower license agreement with TierOne Converged Networks (TierOne) allowing them to mount telecommunications equipment on our water tower located at 1111 CR 370 E (near the AISD high school). The current contract expires in October of 2015, the attached resolution would authorize the City Manager to renew an agreement with TierOne for a 4 year period with updated rates. In exchange for mounting their equipment, TierOne will pay $800 a month for the first two years and $1,000 a month for the final two years. They currently pay $782.70 per month. Staff is waiting on TierOne for final pictures of the equipment currently installed on our water tower. We have included the exhibit from their original contract showing a proposed installation and a schematic of what is currently on the tower. Staff will work with TierOne to get the final pictures and include those with the schematic in exhibit b prior to executing the contract. STAFF RECOMMENDATION: Approve the resolution. CITY OF ANNA, TEXAS RESOLUTION NO. (TierOne License Agreement) A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING A TOWER SI LICENSE AGREEMENT WITH TIERONE CONVERGED NETWORKS, INC. WHEREAS, the City Council of the City of Anna, Texas (the Council) and TierOne.,, Converged Networks, Inc. (Licensee) desire to enter into a Tower Site License Agreement (the Agreement); and, WHEREAS, The City of Anna (the City) and the Licensee currently have a contract that expires in October 2015; and, WHEREAS, The Council finds that approval of the Agreement is in the best interest of the citizens of Anna, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. Recitals Incorporated. The recitals set forth above are incorporated herein for all purposes as if set forth in full. Section.?- Authorization. The Council hereby approves the Agreement attached hereto as EXHIBIT 1, and authorizes, ratifies, and approves the City Manager's execution of same. The City Manager is hereby authorized to execute all documents and to take all other actions necessary to finalize, act under, and enforce the contract. PASSED AND APPROVED by the City Council of the City of Anna, Texas this the 8th day of September, 2015. ATTESTED: APPROVED: City Secretary Carrie L. Smith Mayor Mike Crist TOWER SITE LICENSE AGREEMENT THIS TOWER SITE LICENSE AGREEMENT (this "License°) is entered into between the City of Anna (the "City"), a Texas municipal corporation, and TierOne Converged Networks ("Licensee"), with its principal business at 4925 Greenville Ave. Ste. 200, Dallas, TX 75206, WHEREAS, Licensee and the City are sometimes collectively referenced in this Agreement as the "Parties', or, each individually, as "Party"; and WHEREAS, the City owns a Tower Structure, as hereinafter defined, suitable for the placement of Antenna Facilities, as hereinafter defined; and, &Aff WHEREAS, Licensee seeks to provide high-speed intemet services to citizens and businesses within and near the City's corporate limits, and h is in the best interests of the City to facilitate the provision of such services upon the terms set forth in this License. NOW THEREFORE IT IS AGREED AS FOLLOWS: (a) The City is the titleholder or otherwise controls that certain real property located at 1111 CR 370 E, Anna, Texas (hereinafter referenced as the "City's Property"), which is described on the attached Exhibit A, incorporated herein by reference for all purposes. The parties agree that the City's Property in Exhibit A is correctly described. (b) The City hereby agrees to license to Licensee the limited use of a certain tower located at 3300 N Powell Parkway, Anna, Texas (said tower hereinafter referenced as the "Tower Structure°), subject to the terms of this License. The License allows the Licensee to place communications devices and equipment (said devices and equipment here referenced as "Communication Equipment") at or within a close distance of the base of the Tower Structure and to mount certain communication facilities (said communication facilities herein referenced as "Antenna Facilities°) onto the Tower Structure. The Communication Equipment must be stored within a closed box (said box hereinafter referenced as "Equipment Enclosure"). The relative location within the City's Property of the Equipment Enclosure and the Antenna Facilities as shall be as depicted in the sketch attached as Exhibit 8, incorporated herein by reference for all purposes. During the Term, as defined hereinafter, the Licensee may run cables and wires under, over and across the City's Property to connect Licensee's Antenna Facilities to Its Communication Equipment and shall have the right to access and maintain same in accordance with this License; provided, however, that the running of such cables and wires shall not unreasonably interfere with the City's use of the City's Property. Licensee is also granted a non-exclusive license for reasonable access to the City's Property when installing, removing, replacing, and/or servicing its Equipment Enclosure, Communication Equipment or Antenna Facilities. Term. The tern of this License shall be four years (the "Term"), commencing on the Commencement Date of this License, subject to earlier termination as provided for under this License. This License shall terminate at the end of the Term unless before then the parties agree in writing to extend this License for an additional period of time. Payments/Compensation. TOWER SITE LICENSE AGREEMENT Page Z of 9 (a) Licensee shall make monthly payments to the City on the same day of the month as the Commencement Date, which shall be ninety (90) days after the Effective Date. Starting on the Commencement Date, said payments shall be made each month, in advance, to the City, or to such other person, firm, or place as the City may, from time to time, designate in writing at least 30 days in advance of any payment date. (b) Said monthly payments shall be in the amount of $800 during the first and second years of the license, and $1,000 during the third and fourth years of the license. (c) As additional compensation for this License, Licensee shall during the Term of this License, and at the City's option, furnish —at no cost to the Citywireless intemet services to up to 3 locations at the City's discretion ( City buildings, facilities and parks) at the widest bandwidth and at the highest speed that Licensee offers or makes available to its commerciaVbusiness customers, along with the highest capacity and highest performing hardwarelequipment (including but not limited to dishestreceivers, signal relay/boost equipment, modems, etc.). (d) In the event of termination of this License for any reason(s) other than Licensee's nonpayment of any amounts due in accordance with paragraphs (a) and (b), above, or Licensee's failure to provide services to the City in accordance with paragraph (c), above, payments due shall be calculated on a prorated basis as of the date the Communication Equipment, Equipment Enclosure, Antenna Facilities, associated cablestwires and any other property of Licensee are fully removed from the City's Property and Licensee restores the City's Property to the condition in which it existed as of the Commencement Date, excepting normal wear and tear and restoration being required only to the extent that Licensee or Licensee's property or use thereof caused any changes to the condition of the City's Property. In the event that payments are calculated on a prorated basis as set forth in the preceding sentence, and the City is in receipt of prepaid amounts that exceed the prorated amount due, such excess amount shall be refunded to Licensee. However, any prorated payment that would otherwise be refunded to Licensee under this or any other provision of this License shall be subject to deductions of all costs incurred by the City if Licensee fails to remove its equipment and restore the City's Property as described above within 60 days of notice of termination. The City shall provide any prorated refund thereafter due within 90 days after notice of termination. 4. Us 29. (a) Unless under a prior written agreement signed by the City and only to the extent permitted thereunder while such agreement shall remain in effect, Licensee has no right to enter, access or use the City's Property until the Commencement Date. On the Commencement Date and thereafter, Licensee agrees that the following priorities of use, in descending order, shall apply in the event of communication interference or other conflict during the Term, and Licensee's use and rights under this License shall be subordinated accordingly. "T'(Q The City. (ii) Public safety agencies, including law enforcement, fire, and ambulance services that are not part of the City. (ill) Goverment -regulated entities providing services to the general public for a fee, in a manner similar to a public utility, such as long distance and cellular telephone service. (b) Licensee's use of the City's Property shall include and be limited to the installation, operation, and maintenance of the Communication Equipment, Equipment Enclosure, Antenna Facilities and associated cabke. Tres necessary for the transmission and reception of radio communication signals and for the operation of related equipment in accordance with the TOWER SITE LICENSE AGREEMENT Page 2 of 9 provisions of this License. Licensee shall at all times act and be in compliance with all federal, state, and local laws and regulations. If for any reason Licensee's use fails to comply with any federal, state or local law or regulation and Licensee fails to bring its use within compliance within 30 days of written notice of such noncompliance, this License shall be terminated as provided herein, unless sooner authorized by such applicable law. The City agrees to reasonably cooperate with Licensee in obtaining, at Licensee's sole expense, all additional licenses and permits required for Licensee's use of the City's Property. 9% 5. Installation of Improvements. Access. Utilities. (a) Licensee's installation of any equipment or personal property and construction of any structures or other improvements shall be done according to plans submitted by Licensee and approved by the City, and no equipment or property shall be subsequently relocated without the City's approval. During the term of this License, Licensee shall have the nonexclusive right to use the City's Property for the purpose of transmitting and receiving radio communication signals. The City specifically reserves the right to allow the City's Property to be used by other parties of the type and for the purposes generally described in this License, and to make additions, deletions or modifications to the Tower Structure on the City's Property. (b) Licensee may request to add, upgrade or replace Communication Equipment, Equipment Enclosure and/or Antenna Facilities from time to time. If so requested, Licensee shall submit to the City a structural study as may be reasonably requested for the City's evaluation of proposed additions or upgrades. All costs for required structural studies will be paid by Licensee within 30 days of receipt of a detailed invoice. The City reserves the right to: (1) require renegotiation as to the amount of the required payments set forth in Paragraph 3(b) if in the City's judgment Licensee's proposed additions and/or upgrades of the Antenna Facilities and/or Communication Equipment justify an increase; and (2) deny such additions and/or upgrades if such renegotiations do not result in a mutually agreeable amendment to this License. (c) (d) Licensee shall have the right, at its sole cost and expense, to install, operate and maintain on the licensed portions of the City's Property the Communication Equipment, Equipment Enclosure, Antenna Facilities, and any other of Licensee's improvements and personal property as described in Exhibit B and approved by the City. All such improvements shall be constructed in accordance with the City's specifications and according to a site plan approved by the City. The Communication Equipment, Equipment Enclosure, Antenna Facilities, and any other of Licensee's improvements and personal property, shall remain the exclusive property of Licensee, subject to Paragraph 8(c) of this License. No equipment shall be stored on the City's Property outside of the Equipment Enclosure, and all appropriate permits must be obtained prior to construction and use of the Equipment Enclosure. Licensee, at all times during this License, shall have access to the licensed portions of the City's Property and the Equipment Enclosure in order to install, operate and maintain its Antenna Facilities. Licensee shall have access to the Tower Structure only with the approval of the City and in the presence of an employee of the City. Licensee shall request access to the Tower Structure at least 24 hours in advance and the City's approval thereof shall not be unreasonably withheld or delayed. If Licensee requests access to the City's Property or Tower Structure outside normal City business hours, Licensee shall be responsible for payment of all costs, including but not limited to salarylovertime costs, incurred by the City as a result of providing the requested access to the Licensee. Full reimbursement shall be provided to the City within thirty business days of receipt of the City's written request for reimbursement. TOWER SITE LICENSE AGREEMENT Page 3 of 9 (e) The City shall allow for access to electricity associated with Licensee's use of the City's Property. All utilities will be buried unless otherwise approved by the City in writing. (f) Licensee shall have sole responsibility for the maintenance, repair, and security of its Communication Equipment, Equipment Enclosure, Antenna Facilities, and any other of Licensee's improvements and personal property, and shall keep the same in good repair and in safe condition at all times. Any unforeseen or additional costs for servicing or maintaining the Tower Structure that are due to the presence of or the installation of the Communication Equipment, Equipment Enclosure, Antenna Facilities, and any other of Licensee's improvements and personal property, will be the responsibility of Licensee. (g) Licensee will adhere to all applicable OSHA safety requirements. (h) Licensee shall place no advertising on the site or on any structure on the site. (i) All of Licensee's equipment and operations will comply with any applicable noise and nuisance ordinances of the City. 6. Reasonable Approval. Both parties shall not unreasonably withhold or delay approvals required under this License. 7. Licensee Defaults. (a) Not by way of limitation, the parties ereto understand and agree that the occurrence of any one or more of the following events shall constitute an "Event of Default" hereunder by Licensee: (i) The failure by Licensee to make any payment of rent or any other payment required to be made by Licensee hereunder, as and when due, where such failure shall continue for a period of 20 days after written notice thereof is received by the Licensee from the City. (ii) he failure by Licensee to observe or perform any of the covenants or provisions of CTontinue is License to be observed or performed by the Licensee, where such failure shall for a period of 20 days after written notice thereof is received by the Licensee from the City. (b) If there occurs an Event of Default by Licensee, in addition to any other remedies available to the City at law or in equity, the City shall have the option to terminate this License and all rights of Licensee hereunder. No waiver of any rights under this License shall occur unless the waiver is set forth in a duly authorized written document properly adopted and signed by the party granting the waiver and delivered to the other party. Any waiver of any right under this License shall not be deemed a waiver of any other rights under this License. Termination and Suspension. (a) This License may be terminated as follows: (i) By either party, upon a default of any covenant or term hereof by the other party, which default is not cured within 30 days of receipt of written notice of default to the other party; TOWER SITE LICENSE AGREEMENT Page 4 of 9 (b) (c) (ii) By Licensee, if it is unable through no fault of its own to obtain or maintain any license, permit, or other governmental approval necessary for the construction and/or operation of the Antenna Facilities or Licensee business, after pursuing such license, permit, or other approval with due diligence; (iii) By the City, if it determines in its sole discretion and for any reason, that the Tower Structure is structurally unsound for its intended use, including but not limited to consideration of age of the structure, damage or destruction of all or part of the Tower Structure or the City's Property from any source, or factors relating to condition of the City's Property; (iv) By the City, 0 it determines that the Antenna Facilities unreasonably interfere with another user with a higher priority as set forth in Paragraph 4(a) if Licensee cannot correct the interference within 30 days; (v) By the City, if Licensee's use of the City's Property is ar heoomes illeea under any federal, state or local law, rule or regulation; or (vi) By Licensee, if within 30 days before the second anniversary of the Commencement Date of this License Agreement, Licensee provides written notice of such termination to the City. This License shall be considered suspended temporarily if: (1) the City determines that maintenance or repairs must be performed to the City's Property or to the Tower Structure; (2) such maintenance or repairs require removal of all or a part of the Communication Equipment, Equipment Enclosure, Antenna Facilities, any other associated cableslwires, or any other property of Licensee (collectively, °Licensee's Property); and (3) such removal results in Licensee's inability, through no fault on its part, to broadcast its transmissions as intended. Whenever practicable, the City shall provide Licensee with written notice specifying the part or parts of the Licensee's Property that must be removed and an estimated duration of time before reinstallation will be permitted. Licensee shall complete such removal promptly, but in no event later than the 30"' day after such written notice. If Licensee does not timely remove the parts of Licensee's Property specified for removal, then the City may facilitate the removal of same by any means and Licensee must in that event reimburse the City for any removal expenses. The City shall have no obligation to replace or reinstall any of Licensee's Property that has been removed. Licensee's removal and any subsequent reinstallation of any of Licensee's Property shall be at Licensee's own expense. Further, the City shall at no time be responsible for any damage to Licensee's Property related, directly or indirectly, to any removal or reinstallation of Licensee's Property or any part thereof. In the event of an emergency concerning public health and safety, the City may facilitate removal of Licensee's Property at any time and by any means the City determines to be necessary to avoid or defend against potential death, injury, or damage to property. This may include without limitation requiring Licensee to remove same without notice or with very short notice, depending on the circumstances. For the time period that Licensee is, through no fault on its part, unable to broadcast its transmissions as intended due to such removal, the License shall be considered to be suspended. (d) As it relates to removal of Licensee's Property during any period of suspension under this License, the City shall as soon as practicable provide to Licensee in writing a reinstallation date upon which the Licensee shalt be allowed to reinstall any of Licensee's Property. Any suspension described in this License shall be considered to be concluded on the tenth day after the designated reinstallation date whether or not the Licensee's Property has been TOWER SITE LICENSE AGREEMENT Page 5 of 9 reinstalled and whether or not the Licensee has resumed transmissions from the Tower Structure. After a suspension period is concluded, the City, upon request by the Licensee, shalt refund a prorated amount of any fees already paid to the City. Such repayment amount shall represent and be in the sum of the fees that Licensee would otherwise have been obligated to pay during the suspension period were it not for the suspension. A suspension of this License shall not toll or otherwise alter the Term of this License. ®. (e) Should it at any time be determined by the City that the Tower Structure must be removed or modified —or that the City's Property must be configured or otherwise used —in a way that precludes Licensee's use thereof, then this License may be terminated by the City by providing 30-days written notice. This termination remedy is in addition to and cumulative of any other termination provision in this License. In the event that the City provides such notice, then Licensee must remove --no later than the 30th day after such written notice —Licensee's Property from the Tower Structure and from the City's Property. If Licensee fails to timely remove any part of Licensee's Property, then the City may facilitate the removal of same by any means and Licensee must in that event reimburse the City for any removal expenses. Further, the City shall at no time be responsible for any damage to Licensee's Property. (f) The City shall not in any manner be liable for any expense or damages whatsoever, including without limitation consequential damages, loss of use, loss of profits, or any other costs, claims or expenses arising out of, related (directly or indirectly) to or in connection with: (1 ) the removal of any of Licensee's Property in accordance with this License; or (2) the City suspension or termination of this License in accordance with the provisions of this License, which shall not be considered a breach of this License. (g) Upon termination of this License for any reason, Licensee shall remove any remaining part of Licensee's Property from the Tower Structure and the City's Property within 60 days after the date of termination, and shall restore the City's Property to the condition it was in on the Commencement Date of the term of this License ordinary wear and tear excepted, all at Licensee's sole cost and expense. Any such property which is not removed by end of said 60-day period shall become the property of the City. 9. Insurance. (a) F4 Licensee shall provide Comprehensive General Liability Insurance coverage, including premises/operations coverage, independent contractor's liability, completed operations coverage, contractual liability coverage, and the City will be held harmless for acts of outside vendors in a combined single limit of not less than $1,000,000 per occurrence, and $4,000,000 aggregate, and name the City as an additional insured on such policy or policies. Licensee may satisfy this requirement by an endorsement to its underlying insurance or umbrella liability policy. (b) Neither party shall be liable to the other (or to the other's successors or assigns) for any loss or damage caused by fire or any of the risks enumerated in a standard "All Risk" insurance policy, and, in the event of such insured loss, neither party's insurance company shall have a subrogated claim against the other. (c) Licensee shall provide to the City, prior to the Commencement Date of this License, evidence of the required insurance in the form of a certificate of insurance issued by an insurance company licensed to do business in the State of Texas, which includes all coverage required TOWER SITE LICENSE AGREEMENT Page 6 of 9 above. Said certificate shall also provide that the coverage may not be cancelled, expired, or materially changed without 30 days prior written notice to the City. 10. Adverse Medical Effect. In the event that it is established that Licensee's operation of the wireless facility is determined to be medically related to a health problem, the City must notify Licensee of the related issues. in the event that Licensee causes, permits or allows such activities determined to be medically related to a health problem to continue, the City shall have the right to immediately terminate this License if Licensee fails to discontinue or remedy the operation within 30 days of written notice of any such relationship. , 11. Damage or destruction of Property. If the City's Property, Tower Structurie, oNAnnn. Facilities are destroyed or damaged so as, in Licensee's judgment to render the site unusable as Antenna Facilities, Licensee may elect to terminate this License upon 60 days written notice to the City. In the event Licensee elects to terminate the License, Licensee shall be entitled to reimbursement of any prepaid rent prorated prior to the date of termination. 12. INDEMNIFICATION. EXCEPT FOR THE NEGLIGENT ACTS OR WILLFUL MISCONDUCT OF THE CITY'S AGENTS OR EMPLOYEES, LICENSEE AGREES TO INDEMNIFY, DEFEND, AND HOLD HARMLESS THE CITY AND ITS ELECTED OFFICIALS, OFFICERS, EMPLOYEES, AGENTS, AND REPRESENTATIVES, FROM AND AGAINST ANY AND ALL CLAIMS, COSTS, LOSSES, EXPENSES, DEMANDS, ACTIONS, OR CAUSES OF ACTION, INCLUDING REASONABLE ATTORNEY FEES AND OTHER RELATED COSTS AND EXPENSES OF LITIGATION, WHICH MAY BE ASSERTED AGAINST OR INCURRED BY THE CITY OR FOR WHICH THE CITY MAY BE HELD LIABLE, WHICH ARISE FROM THE NEGLIGENCE, WILLFUL MISCONDUCT, OR OTHER FAULT OF LICENSEE OR ITS EMPLOYEES, AGENTS, OR SUBCONTRACTORS IN THE PERFORMANCE OF THIS LICENSE OR FROM THE INSTALLATION, OPERATION, USE, MAINTENANCE, REPAIR, REMOVAL, OR PRESENCE OF LICENSEE'S ANTENNA FACILITIES, INCLUDING BUT NOT LIMITED TO ELECTRICAL INTERFERENCE OR HEALTH PROBLEMS CAUSED BY LICENSEE'S TRANSMISSION OPERATIONS, AND SPECIFICALLY INCLUDING THE REPRESENTATIONS AND WARRANTIES OF PARAGRAPH 14(B) OF THIS LICENSE, AND SHALL FURTHER INDEMNIFY, DEFEND, AND HOLD HARMLESS THE CITY FOR ITS COSTS AND EXPENSES, INCLUDING BUT NOT LIMITED TO ATTORNEYS FEES, INCURRED IN ANY ATTEMPT TO ENFORCE THIS INDEMNITY PROVISION. LICENSEE'S OBLIGATIONS TO SO INDEMNIFY, DEFEND AND HOLD HARMLESS SHALL SURVIVE THE TERM OF THIS AGREEMENT. 13. s. All notices, requests, demands, and other communications hereunder shall be in writing :a:ndrcs'haII be deemed given if personally delivered or mailed, postage prepaid, certified mail, receipt requested to the following addresses: W If to the City, to: City Manager City of Anna P.O. Box 776 Anna, TX 75409 If the Licensee, to: TierOne Converged Networks Attn.: Kim Marshall 4925 Greenville Ave., Suite 200 Dallas, TX 75206 TOWER SITE LICENSE AGREEMENT Page 7 of 9 14. Representations and Warran#its. a) The City warrants that (1) it has full right, power, and authority to execute this License; and (2) to the best of its knowledge, it has good and unencumbered title to the City's Property free and clear of any liens or mortgages, except as may be disclosed by review of title, or has a right of control over same for the full duration of the Term. b) Licensee represents and warrants that its storage and use of any substance or material on the City's Property will comply with applicable federal, state or local law or regulation and that it will store and use said substance or material on the City's Property only if necessary for its transmission operations. LICENSEE AGREES TO INDEMNIFY, DEFEND, AND HOLD HARMLESS THE CITY FROM AND AGAINST ANY AND ALL LIABILITY, LOSS, COST, DAMAGE, AND EXPENSE, INCLUDING REASONABLE ATTORNEY FEES RELATING TO, ARISING FROM OR DUE TO THE STORAGE OR DISCOVERY OF ANY OF THE ABOVE REFERENCED MATERIALS THAT ARE PART OF LICENSEE'S COMMUNICATION EQUIPMENT, EQUIPMENT ENCLOSURE, ANTENNA FACILITIES, AND ANY OTHER OF LICENSEE'S IMPROVEMENTS AND PERSONAL PROPERTY, OR ANY COMPONENT PARTS OR BY-PRODUCTS THEREOF IN VIOLATION OF APPLICABLE LAW. LICENSEE'S OBLIGATIONS TO SO INDEMNIFY, DEFEND, AND HOLD HARMLESS SHALL SURVIVE THE TERM OF THIS AGREEMENT. 15. Assignment. This License may not be sold, assig orr tra�rred by Licensee without the written consent of the City, such consent not to be unreasonably withheld. 16. Thins Parties. This License is granted strictly to the Licensee and its provisions are not intended in any manner to benefit any third party. 17. Miscellaneous. (a) This License constitutes the entire agreement and understanding of the parties relating to the subject matter of this License, and supersedes all offers, negotiations, and other agreements of any kind. There are no representations or understandings of any kind not set forth herein. Any modification of or amendment to this License must be in writing and executed by both parties. W) The parties understand and agree that this is a License for use of the City's Property and Tower Structure and is not a contract for goods or services as defined under Texas Local Gov ement Code § 271.151. This License shall be construed in accordance with the laws of the State of Texas. Exclusive jurisdiction over and venue for any cognizable claim related directly or indirectly to this License shall lie in Collin County, Texas. If any term of this License is found to be void or invalid, such invalidity shall not affect the remaining terms of this license, which shall continue in full force and effect. Licensee waives all rights and remedies under law and equity to bring a claim or cause of action against the City that arises out of, relates (directly or indirectly) to, or is in connection with this License, including but not limited to any claim or cause of action TOWER SITE LICENSE AGREEMENT Page S of 9 available under the Uniform Declaratory Judgment Act ("UDJA°) , except that Licensee reserves the right to seek specific performance of the City's duties under this License other than by a claim brought under the UDJA. (0 This License is subject to all zoning approvals and building permits. (g) This License represents the entire and integrated agreement a understandin s between the parties and supersedes and renders void *.all negotiations, representations and/or agreements between the parties, either written or ral. (h) The Effective Date of this Agreement is the date that the last of the Parties' signatures to this Agreement is fully and properly affixed to this Agreement and acknowledged by a public notary. DULY AUTHORIZED SIGNATURES: Philip Sanders City Manager, City of Anna, Texas THE STATE OF TEXAS } COUNTY OF COLLIN } This instrument was acknowledged before me on the day Sanders, City Manager, City of Anna, Texas. , Notary Public, State of Texas Kr Marshall, CTO v of , 2013, by Philip THE STATE OF T S } COUNTY OF } o?b15 This instrument was acknowledged before me on the 4?Ao day of , 2015, Kim Marshall • My lien Duong � , Notary p1Mk. wetifreqb Slate of'r�aa lic, State or as 12-13-2017 TOWER SITE LICENSE AGREEMENT Page 9 of 9 Exhibit A 786 114 997 3-HARLOW 159.8210 A 'get 1.1 75,5 112004 1-ANNA 53 2410 649 559 1-ROLLINS 64,510 296 3- 59.53 312000 4-ANNA 2.46 312000 3�0 L GRAY 288 2-FACUNUo 71 sa-i 410 1.Ha 1nos4 071 F1161 Property Search Collin CAD - Property Search Property ID: 2112108 - Tax Year: 2016 General Information Property ID Property Status Geographic ID Property Type Property Address Total Land Area Total Improvement Main A Abstract/Subdivision Primary State Code Legal Description A Tr Certain Information i for more information Owner Information Owner ID Or Owner Name(s) Exemptions EX-XV (Other Exemptions (Including Public, Religious, Charitable, And Other Proper Not Reported iership 100.00% ress Po Box 776 Anna, TX 75409-0776 91191nA 2016 Value Information New restrictions passed by the 84th Legislature blockthe Value display of certain exemption information information. Click here for for Property more information... ID 2112108 in the 2016 tax year is unavailable. Value http://www.col I i ncad.org/propertysearch?prop_id=2112108&situs_street_suffix=&isd%5B%5D=any&city%5B%5D=any&prop_type%5B%5D= R&prop_type%5. 1/3 9/1 /2015 Collin CAD - Property Search information for prior section below. Entities CAN (Anna City) GCN (Collin County) JCN (Collin College) SAN (Anna ISD) Improvements Improvement #1 State Code Homesite Market Value Total Main Area ears may e available in the Tax Rate 0.649000 (2014 Rate) 0.235000 (2014 Rate) 0.081960 (2014 Rate) 1.540000 (2014 Rate) Col lecte, Collin Co Collin Co Collin Co Collin Co Land Segments I Commercial Land Segment #1 Undeveloped F1 (Govt Owned City) State Code F1 (Govt Owned City) No Homesite No Market Value n/a Ag Use Value n/a Land Size 2.4600 acres 107,158 sq. ft. Year Improvement Land Market Ag Loss HS Cap Loss 2015 $1,420,320 $44,280 $1,464,600 $0 $1,464,600 $0 20' $0 $44,280 $44,280 $0 $44,280 $0 2013 $0 $44,280 $44,280 $0 $44,280 $0 2012 $0 $44,280 $44,280 $0 $44,280 $0 2011 $0 $44,280 $44,280 $0 $44,280 $0 $1,464,600 $44,280 $44,280 $44,280 $44,280 Deed History http://www.col I i ncad.org/propertysearch?prop_id=2112108&situs_street_suffix=&isd%5B%5D=any&city%5B%5D=any&prop_type%5B%5D= R&prop_type%5... 2/3 Deed Date 07/14/2000 Collin CAD - Property Search Seller 3uyer Instr # HENDRICKS JON ANNA CITY OF 20001109001237290 SB 541- Amends Section 25.027 of the Property Tax Code, effective September 1, 2005 RESTRICTION ON POSTING DETAILED IMPROVEMENT INFORMATIONON INTERNET WEBSITE: Volume/Page 4792/2386 61 Information in appraisal records may not be posted on the Internet if the information is a photograph, sketch, or floor plan of an improvement to real property that is designed primarily for use as a human residence. This section does not apply to an aerial photograph that depicts five or more separately owned buildings. 11wr 16 HB 394 - Amends Section 25.027 of the Property Tax Code, effective September 1, 2015 RESTRICTION ON POSTING AGE RELATED INFORMATION ON INTERNET WEBSITE: Information in appraisal records may not be posted on the Internet if the information indicates th propqfWwner, including information indicating that a property owner is 65 years of age or older. http://Www.col I i ncad.org/propertysearch?prop_id=2112108&situs_street_suffix=&isd%5B%5D=any&city%5B%5D=any&prop_type%5B%5D= R&prop_type%5... 3/3 1:F,4:11:111:3 N N 5 Ghz 2 GHz AP d AP W E W E 5 GHz 5 GHz 2 GHz 2 GHz AP AP AP AP S 5 Ghz AP 5 GHz Backhaul 202 degrees To McKinney C Ground Telecom Cabinet S GHz AP Not Used 5 GHz Backhaul 88 Degrees To Westminster Exhibit B Back Haul 4' Dish Top Mounted Omnidirectional Gateway TOP VIEW 1 SIDE VIEW Back Haul 2.5' Dish Sector Antenna (3 @ 120°) 0 1200 Commerce Drive; Sub 12D Plano. Texas 75M (972) 612-1373 ofRee (972)612.1279fax vnvw.latsanusa.00m plarsonQlarsonusa. can `t r� fi- 0 l 4 � . 1 j Y 1 1 4 CITY OF ANNA, TEXAS Item No. 5e City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: Clayton Fulton Exhibits: No AGENDA SUBJECT: Approve a Resolution authorizing the purchase of Police Department vehicles SUMMARY: As part of the budget amendment approved at the August 25th council meeting, funds were budgeted for the purchase of two replacement police cruisers. The total cost for the two vehicles exceeds $50,000 and requires council authorization. The vehicles are being purchased under a cooperative purchasing agreement with the Texas Association of School Board Buy Board Purchasing Cooperative (Buy Board). Buy Board conducts competitive bids to satisfy government purchasing requirements and then locks the prices into a contract. The City of Anna has entered into an ILA with Buy Board and is eligible to purchase under their contracts. The cruisers will be purchased from Caldwell Country Chevrolet under Buy Board contract #430-13. STAFF RECOMMENDATION: Approve the resolution. CITY OF ANNA, TEXAS RESOLUTION NO. (Purchase of Police Vehicles) A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING THE PURCH POLICE VEHICLES 4W WHEREAS, the City Council of the City of Anna, Texas (the "City Count has previously approved funding for the purchase of police vehicles WHEREAS, the City's financial policy requires that all purchases above $50,000 be purchased under formal competitive sealed bidding rules or as otherwise permitted by the Texas Local Government Code under Chapters 252 and 271; and WHEREAS, Chapter 252 Subchapter B of the Texas Local Government Code, Section 252.022 (a,12,D) grants a general exemption from the competitive bidding requirements for a procurement of items sold under an interlocal contract for cooperative purchasing administered by a regional planning commission; and WHEREAS, the Texas Association of School Boards Buy Board (Buy Board) has competitively bid police vehicles and the City is eligible to purchase through Buy Board under an interlocal agreement; and WHEREAS, the proposed purchase of Ace vehic es is $70,070-1 and WHEREAS, Caldwell Country Chevrolet (the Vendor) has contracted with Buy Board for police vehicles and has met the requirements under Buy Board contract 430-13; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS THAT: Secti2+ Recitals Incorporated The recitals set forth above are incorporated herein for all purposes as if set forth in full. Section 2. Approval of Police Vehicle Purchase 4 The City Council hereby authorizes the City Manager to execute on its behalf the I urchase of two (2) police vehicles, and authorizes, ratifies and approves the City Manager's execution of same. The City Manager is hereby authorized to execute all documents and to take all other actions necessary to finalize the purchase. PASSED AND APPROVED by the City Council of the City of Anna, Texas on this 8th day of September, 2015. ATTEST: APPROVED: City Secretary Carrie L. Smith Mayor Mike Crist 4K RESOLUTION NO. (Purchase of Police Vehicles) CITY OF ANNA, TEXAS Item No. 6 City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: Clayton Fulton Exhibits: Yes AGENDA SUBJECT: Consider/Discuss/Action regarding adopting an Ordinance adopting the FY 2015 — 2016 Budget. SUMMARY: The Annual Budget and Plan of Municipal Services is the most important document that is adopted by the City Council each year. In developing this document, as always, a significant amount of time is devoted by City Council Members and City Staff. An Annual Budget is developed through an extensive process of reviewing requests received from various City departments then prioritizing those requests in a manner that utilizes resources effectively, within fiscal constraints, while working to achieve goals set forth by the City Council. Beginning in 2009 the taxable value of existing properties in Anna declined an average of 3% per year through 2012. During this span nearly $60 million in new value was added to the tax rolls; however, losses in value to existing properties exceeded the value of new construction. Property value eventually stabilized in 2013 and eclipsed the peak from 2008. Based upon the 2015 certified values from the Collin Central Appraisal District, existing properties have not only retained their value since 2013, they have also seen some market appreciation. We remain guardedly optimistic this recent trend toward market appreciation will hold steady in the coming years. The growth in taxable value corresponds to a significant increase in population over the past 12 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, 2015 was 10,980. In 2014, the City's population increased 7.1%, placing Anna in the top 12 cities in the DFW region for percent increase in population. In 2014, the City issued 295 single family building permits which equates to just under 1,000 new city residents. A similar growth pattern has occurred during 2015. With the growth in population comes a proportional increase in demand for municipal services that are primarily funded by property taxes. As Anna continues to grow, the city remains committed to the Hometown ideal outlined in its Strategic Vision. Additionally, the Council's strategic goals and objectives have helped to guide the development of the FY 16 budget through a serious of workshops with the Council to review proposed budgets and supplemental requests from each department. The FY 16 budget can be funded by adopting a tax rate of $0.639 cents per $100 valuation, which is lower than the tax rate adopted last year. The budget included in the packet tonight is includes minor funding changes discussed in the previous council meeting. Additionally, staff was notified of a $28,572 FEMA grant award to the Fire Department for an exhaust removal system. The project calls for a 5% match from the city, or $1,428. Matching funds are available in the Fire Trust. The grant revenue and project cost of $30,000 are reflected in the Fire Trust budget. Finally, the document presented tonight also includes all the introductory and supplemental material we typically include in the budget. STAFF RECOMMENDATION: Approval of the attached Ordinance adopting the FY 16 budget. CITY OF ANNA, TEXAS Ordinance No. (FY 2015-2016 Budget) AN ORDINANCE MAKING APPROPRIATIONS FOR THE SUPPORT OF THE CITY OF ANNA FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2015, AND ENDING SEPTEMBER 30, 2016; APPROPRIATING MONEY TO AN INTEREST AND SINKING FUND TO PAY INTEREST AND PRINCIPAL ON THE CITY'S INDEBTEDNESS; AND ADOPTING THE ANNUAL BUDGET OF THE CITY OF ANNA FOR THE 2015 — 2016 FISCAL YEAR. WHEREAS, the budget, appended here as Exhibit A, for the fiscal year beginning October 1, 2015 and ending September 30, 2016, was duly presented to the City Council by the City Manager and a public hearing was ordered by the City Council and a public notice of said hearing was caused to be given by the City Council and said notice was published in the Anna -Melissa Tribune and said public hearing was held according to said notice; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA THAT: SECTION 1. The appropriations for the fiscal year beginning October 1, 2015, and ending September 30, 2016 for the support of the general government of the City of Anna, Texas, be fixed and determined for said terms in accordance with the expenditures shown in the City's fiscal year 2015 — 2016 budget, a copy of which is appended hereto as Exhibit A, SECTION 2. The budget, as shown in words and figures in Exhibit A, is hereby approved in all respects and adopted as the City's budget for the fiscal year beginning October 1, 2015, and ending September 30, 2016. SECTION 3. That there is hereby appropriated the amount shown in said budget necessary to provide for an interest and sinking fund for the payment of principal and interest and the retirement of the bonded debt requirements of fiscal year 2015 - 2016 of the City of Anna. SECTION 4. In addition to Exhibit A, and in accordance with Section 7.08 of the Anna City Charter, the budget also includes a contingency appropriation of $157,476. All expenditures from this contingency appropriation shall be in accordance with Section 7.08 of the Anna City Charter. PASSED AND ADOPTED this, the 8th day of September, 2015. Ayes Nays Abstained ATTEST: APPROVED: City Secretary Carrie L. Smith Mayor Mike Crist ,me Ordinance No. (FY 2015-2016 Budget) City of Anna Fiscal Year 2015-2016 Budget Cover Page This budget will raise more revenue from property taxes than last year's budget by an amount of $561,973, which is a 16.89 percent increase from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is $279,418. The members of the governing body voted on the budget as follows: FOR: AGAINST: PRESENT and not voting: ABSENT: Property Tax Rate Comparison Property Tax Rate: Effective Tax Rate: Effective M &0 Tax Rate: Rollback Tax Rate: Debt Rate: 2015-2016 $0.639000/100 $0.586703/100 $0.492909/100 $0.639000/100 $0.106659/100 2014-2015 $0.649000/100 $0.587582/100 $0.505395/100 $0.649000/100 $0.103174/100 Total amount of municipal debt obligations for the City of Anna is: $30,021,000 • $3,780,000 is directly secured by property taxes through the I&S rate • $12,566,000 has a tax pledge and is supported by water & sewer revenues and the I&S rate • $13,675,000 in revenue and contractual debt obligations to the Greater Texoma Utility Authority is also secured by water & sewer revenues I A FY 2016 Adopted Budget L Ta b I e of Contents INTRODUCTION Budget Letter 4 City Organization 11 Commitment and Vision 13 Statistics 19 Budget Process 20 Fund Structure 24 GENERAL FUND SUMMARY Revenue �" 29 Expenditures 33 Departmental Summaries 34 Restricted Revenue Trusts 59 DEBT SERVICE FUND SUMMARY Revenue 65 Debt Service Obligations 66 Debt Schedule 67 UTILITY FUND SUMMARY Revenue 70 Expense 72 Departmental Summaries 73 Utility Fund Debt 82 CAPITAL IMPROVEMENTS Project Summaries 86 Five Year Summary 88 COMPONENT UNITS Summary of Units 90 Community Development Corporation 91 Economic Development Corporation 93 SUPPLEMENTAL INFORMATION Capital Improvements Plan 96 Debt Management Plan 149 Bond Ratings 155 Financial and Investment Polices 164 Budget Information from City Charter 190 Budget Ordinance (included after adoption in September) 3 MUST i WOKETOWN September 8, 2015 Honorable Mayor and Council Members: FY 2016 Adopted Budget Budget Letter In accordance with the City Charter and the laws of the state of Texas governing home rule cities, please accept this letter as my budget transmittal and executive summary of the fiscal year 2015-16 budget. The Annual Budget is the most important document that is adopted by the City Council each year. In developing this docu- ment, as always, a significant amount of time is devoted by City Council Members and City Staff. An Annual Budget is developed through an extensive process of reviewing requests received from various City depart- ments then prioritizing those requests in a manner that utilizes resources effectively, within fiscal constraints, while working to achieve the City's strategic goals. STRATEGIC GOALS AND OBJECTIVES The City Council has identified seven (7) strategic goals that help frame the City's financial and operational work plans. The strategic plan is a working document that provides guidance to City Staff when making budg- etary and operational decisions. Fiscal Year 2016 Strategic Goals Goal 1 Attract Professional Jobs Goal 2 Improve the Curb/Aesthetic Appeal of our Community Goal 3 Promote Downtown Development Goal 4 Promote Retail Development Goal 5 Develop a Brand Identity for the City of Anna Goal 6 Diversify Housing and Neighborhood Options Goal 7 Upgrade City Facilities and Infrastructure The FY 2016 Strategic Plan Implementation Strategy included in this budget outlines the city's plan of action for im- plementing the strategic goals during the 2015-16 fiscal year. VALUE OF TAXABLE PROPERTY AND GROWTH After four years of declining property values between 2009 and 2012, property values eventually stabilized in 2013 when the total taxable value exceeded for the first time the previous peak for taxable value set in 2008. Strong growth and new construction in 2013 resulted in a substantial increase in total taxable value for the 2014 tax year. Continued strong growth and new construction in 2014 has contributed to a significant in- crease in total taxable value for the 2015 tax year. We remain guardedly optimistic that a trend of market ap- preciation and modest growth will continue in the coming years. The growth in taxable value corresponds to a significant increase in population over the past year. 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, 2015 was 10,980. In 2014 the City's population increased 7.1% placing Anna in the top 12 cities for percent population growth in the Dallas/Ft. Worth region. 4 wi✓ lAnn FY 2016 Adopted Budget Budget Letter So far in 2015, the City has received 176 building permit applications for single family homes. As the invento- ry of existing finished lots has declined, we have also observed modest drop in building activity. We anticipate that new home construction will increase when subdivisions that are under construction or in various stages of the development process are complete and become available in the market TAX RATE For the 2014-15 fiscal year budget, the City Council reduced the tax rate to $0.649 cents per $100 of taxable assessed valuation. The proposed 2015-16 budget further reduces the property tax rate to $0.639 cents per $100 of taxable assessed valuation. The total tax rate is divided between General Fund maintenance and oper- ations and the Debt Service Fund. Of the total tax rate, $0.532341 cents is dedicated to General Fund mainte- nance and operations, and $0.106659 cents is dedicated to general obligation debt service. The portion of the tax rate dedicated to debt service is about 17% of the overall City tax rate. The average taxable single-family home value for the 2015 tax year is $144,750, an increase of $16,150 from the previous year. At the proposed tax rate of $0.639 the municipal tax paid on the average single family home will be $925. EMPLOYEE PAY AND BENEFITS In 2014 the City updated its pay classification plan based on a comparison of similar positions in this market area. The salary and classification plan survey revealed that 58% of the City's employees fell below the average survey minimum for their respective positions. The study provided recommendations for revising the City's pay classification plan, and for implementing market adjustments based on the new pay plan and the tenure of each employee in his or her position. The cost of implementing the recommended market adjustments for all affected employees was approximately $150,000. In lieu of a single year implementation, the City has implemented the market adjustments over two fiscal years beginning in the 2014-15 fiscal year. Funding for the 2nd half of the market adjustments is included in the 2015-16 fiscal year budget. If warranted, employee's not receiving market adjustments may be considered for discretionary merit based pay adjustments. The City currently pays for health insurance for all City employees through a plan provided by the Texas Mu- nicipal League Intergovernmental Employee Benefit Pool (TMLIEBP). As part of the budget process, the City reviewed the health plans and benefits offered to full-time employees, and issued a Request for Proposal (RFP) to determine if more cost effective plans are available. The purpose of the RFP process was to solicit competitive bids for the insurance programs for the City, and to obtain quality benefits for City employees at the best pricing available in the marketplace. Upon receipt and review of the proposals, staff found that TMLIEBP provided the greatest benefit for the least cost, as a result the City will continue with TMLIEBP for health benefits. The fiscal year 2015-16 budget includes a 5% increase in the City's contribution towards the cost of health benefits provided to full-time employees. PROGRAMS AND STAFFING LEVELS The City currently supports a staff of 54 full-time equivalent (FTE) employees allocated among the various op- erating departments. The proposed budget recommends an increase of 2 full-time positons. One position would be added to the Parks department and one to the Police department Staffing levels have been in- creased to maintain quality service delivery as our population and demand for services continues to grow. wi✓ lAnn GENERAL FUND FY 2016 Adopted Budget Budget Letter The General Fund is the City's main operating fund, which is used to account for all financial resources except those required to be reported in another fund. The General Fund receives revenues from property taxes, per- mits, franchise taxes, sales tax, fines, fees for services, interest income, and several other miscellaneous general revenue sources. This fund finances the operations of the Administration, City Council, City Manager, City Sec- retary, City Attorney, Finance, Development, EMS, Fire, Animal Control, Police, Municipal Court, Parks, and Street departments. For the 2015-16 fiscal year, General Fund revenues are expected to total $5,249,228 which is an increase of 16.2% over the previous year's budget. Property tax revenue to the General Fund is anticipated at $3,238,907 (an increase of 16.15%), and sales tax revenue is projected at $700,000 (an increase of 11.1%). The growth of this fund is largely the result of continuing residential and commercial development and population growth in Anna. General Fund operating expenditures for the 2015-16 fiscal year total $5,249,228 reflecting a 16.4% increase over the previous year's budget In order to maintain quality service delivery as our population continues to grow, the General Fund budget proposes the addition of the following new positions: A Parks Superintendent will be added in the Parks department to oversee day-to-day operations and to provide strategic leadership for the department • A School Resource Officer will be added to the Police department. The salary and benefits for this new position will be paid for by the Anna Independent School District In 2015, the Public Works department implemented a specific departmental focus on maintenance of streets and rights -of -way by assigning three existing employees to proactively focus on the maintenance of our streets, regulatory signs, and drainage infrastructure. Those three positions that were previously funded out of the Water and Sewer fund will now be assigned to and funded out of the Street department budget. These are not new positions, but rather existing positons that are now budgeted for in the General Fund. DEBT SERVICE FUND The Debt Service Fund is a special fund established to account for the accumulation and expenditure of re- sources for payment of principal and interest on tax supported bond debt. Bonded debt includes general obli- gation bonds, certificates of obligations and combination tax and revenue certificates of obligation. The princi- pal sources of revenue are assessed property taxes as established by ordinance, and transfers from other funds. jw The City of Anna currently holds just over $16.3 million in outstanding tax supported debt. $12.5 million of that amount was issued for water and sewer infrastructure projects and can be payable from water and sewer revenues; however, to obtain more favorable financing terms, the debt has a tax pledge. The balance of tax supported debt, just under $3.8 million, was issued for general fund purposes. In April of 2015, the City's gen- eral obligation debt rating was reaffirmed at Al by Moody's, citing "strong financial performance with large reserves". Total revenue in the Debt Service Fund is budgeted at $649,228. Expenditures in the Debt Service Fund total $649,228. Approximately $219,228 in I&S revenue will be transferred to the Utility Fund to support debt ser- vice on tax pledged debt issued for water & sewer infrastructure. Excess revenue generated from Water & Sewer Fund operations will be transferred to a Building Capital Fund and reserved for future facility projects. wi✓ lAnn FY 2016 Adopted Budget Budget Letter In order to keep the Debt Service tax rate stable, the City of Anna and First Southwest, our financial advisor, developed a series of planned refundings of existing debt through 2026. This plan is based upon very con- servative assumptions in growth of the property tax base and interest rates. Additionally, the planned refund- ings are scheduled to coincide with interest rate resets and, where possible, refunding bonds that are callable and advance refundable. In this way the plan will minimize the present value cost to the city. The next refund- ing and restructuring of debt is scheduled for 2017. WATER AND SEWER FUND The Water and Sewer Fund in an enterprise fund that accounts for the water, sewer and solid waste services that are provided to city residents and customers located outside the city limits. All activities to maintain these services are accounted for in this fund, including operations, maintenance, billing and collections, admin- istration, financing, and related debt service. The Water & Sewer Fund includes a newly created Administra- tion department as well as the Water, Sewer, Solid Waste, and Utility Billing departments. The Administration department was created to more accurately report the cost of providing water, sewer, solid waste, and utility billing services. Previously all administrative costs were budgeted in the water department The Water & Sewer Fund's principle source of revenues are charges to customers for water consumption, wastewater collection, refuse collection, and fees related to providing consumers with new water and wastewater services. Total fund revenues for the 2015-16 fiscal year are estimated at $6,345,848 (an increase of 15.03%) and total expenditures are budgeted at $6,281,882 (an increase of 14.56 %). Organization and Personnel The 2015-16 budget includes a new Administration department within the Water and Sewer Fund. This new department provides general administrative support to the Water, Sewer, and Street departments and in- cludes personnel and other costs that are not readily assignable to one department within the fund. Personnel in the Administration department includes the Director of Public Works, the Administrative Assistant, the Pub- lic Works Operations Superintendent, and the Construction Inspector. As discussed earlier, three positions that were previously funded out of the Water and Sewer fund will now be assigned to and funded out of the Street department budget in the General Fund. Debt Management Currently the Utility Fund holds just over $26.2 million in outstanding debt The City has worked closely with our financial advisors, First Southwest, to develop a sound debt management plan for the Utility Fund. Look- ing to the future, the City anticipates a spike in debt service obligations in 2019. In order to appropriately manage Utility Fund debt, the City and First Southwest developed a plan to take ad- vantage of call dates and pursue advance refundings of the City's outstanding Utility Fund debt. Every effort has been made to minimize the present value costs to the City. The current plan makes very conservative as- sumptions regarding interest rates and was reviewed and analyzed in conjunction with a utility rate study to evaluate the current water and sewer rates. Depending on market conditions and the City's growth, two re- funding are slated for mid -summer and late fall of 2017. These refundings will also free up cash and reduce pressure on utility rates. Wastewater Inflow and Infiltration The City's existing wastewater treatment plant currently operates at permitted capacity. The Slayter Creek Wastewater Interceptor (SCWI), completed in 2014, allows the City to divert wastewater from the existing wastewater treatment plant into the North Texas Municipal Water District (NTMWD) wastewater system. As the City grows, wastewater flowing through the SCWI into the NTMWD system will increase with our growth. wi✓ lAnn FY 2016 Adopted Budget Budget Letter Since the SCWI became operational last fall, the City has begun to divert flow into the NTMWD system when the amount of wastewater flowing into the plant exceeds the plant's permitted capacity. This typically hap- pens when it rains and rainwater penetrates the sewer system increasing the amount of water flowing to the plant. With the unprecedented amount of rain received this year, we have frequently opened the SCWI to re- lieve the plant. As a result, the amount of wastewater water being diverted into the NTMWD system is signifi- cantly greater than what we previously estimated. The penetration of rainwater into the wastewater system is a phenomenon commonly referred to as "inflow & infiltration" or I&I. The heavy rains this year have revealed a very significant I&I problem in our wastewater collection system. To address our I&I problem, the Public Works department has implemented an aggressive program to identify and repair I&I problems in the system including funding for specific I&I remediation pro- jects in the FY 16 budget. In addition, the City has studied the capacity of our existing wastewater treatment plant. Based on the study, we will be asking the Texas Commission on Environmental Quality (TCEQ) to amend our permit to allow an increase the amount of wastewater we can process through our existing plant The City pays a transport and treatment charge to NTMWD for all the wastewater that we pass into their sys- tem. Since the amount of wastewater water being diverted into the NTMWD system is significantly greater than what we previously estimated, we have had to more than double the budgeted amount for NTMWD wastewater charges. The increase in wastewater charges is one of the significant factors contributing to an increase in utility rates. Utility Rates In order to ensure that our utility rates will continue to support our operating costs and debt service obliga- tions, Staff hires a rate consultant to evaluate our utility system's operation costs and debt payments, and rec- ommend any rate adjustments that would be necessary fully fund the cost of operating our system while main- taining an adequate financial reserve. Last year's 2014-15 budget did not include any increase in water and sewer rates; however, it will be necessary to increase utility rates in the 2015-16 budget. Based on the most recent rate study, we are recommending that water and sewer rates increase by 9% percent on October 1, 2015. The typical residential water customer uses about 5,100 gallons of water in an average month. The proposed rate adjustment would increase the average monthly utility bill (combined water and sewer) by $6.94. The primary factors contributing to this rate increase include: 1) water conservation programs leading to a 23.2% decline over the past few years in the average amount of water sold on a per customer basis; 2) a signif- icant increase in the amount budgeted for NTMWD wastewater transport and treatment charges; and 3) an increase in the amount budgeted to purchase treated surface water from NTMWD through a contract with the Greater Texoma Utility Authority (GTUA). This budget does not include utility system depreciation costs which ideally we would fund on an annual basis to pay for system replacement The city's auditor will make adjustments for depreciation expense in the city's annual audit CAPTIAL IMPROVEMENT FUND The Capital Improvement Fund accounts for financial resources to be used for the acquisition or construction of major capital facilities. The budget for these projects are independent of the operating budget and are typi- cally funded with bonds, grants, fund balance, special restricted revenue or other sources of capital from devel- opers or other private investment 8 FY 2016 Adopted Budget Budget Letter Project FY 2016 Budget Funding Source Foster Crossing Water Line Project $721,504 2012 & 2014 Certificates of Obligation Throckmorton Creek Wastewater Interceptor $1,600,000 Wastewater Impact Fee and Capital Improvement Fee Trust Funds Hackberry Elevated Storage Tank $1,399,093 2012 & 2014 Certificates of Obligation Hackberry Elevated Storage Tank Water Line Im- provements $616,395 2012 & 2014 Certificates of Obligation Water Disinfection System Improvements $445,489 2012 & 2014 Certificates of Obligation Architectural Services for new City Hall construction TBD Future Bond Sales RESTRICTED REVENUE TRUST FUNDS The City has established a number of Trust Funds the uses of which are restricted to certain pre -determined expense categories. The following is a summary of the revenue and expenditures that will be budgeted in the various Trust Funds. Revenue DEPARTMENT FY 2015-16 PROJECTED REVENUE WEST CROSSING WATER TRUST $60,000 WEST CROSSING SEWER TRUST $60,000 WEST CROSSING PARK TRUST $22,500 WATER & SEWER IMPACT FEE TRUST $70,000 NORTHPOINTE WATER TRUST $30,000 NORTHPOINTE SEWER TRUST $30,000 NORTHPOINTE PARK TRUST $11,250 ANNA CROSSING WATER $70,000 ANNA CROSSING SEWER $70,000 ANNA CROSSING ROADWAY FEES $47,250 LAKEVIEW WATER $20,000 LAKEVIEW SEWER $20,000 LAKEVIEW PARK $7,500 AVERY POINT WATER $40,000 AVERY POINT SEWER $40,000 CAMDEN PARC WATER $40,000 CAMDEN PARC SEWER $40,000 PARK TRUST $63,250 STREET DEVELOPER FEES $35,000 ROADWAY IMPACT FEES SERVICE AREA 1 $50,000 ROADWAY IMPACT FEES SERVICE AREA 2 $35,000 FIRE DEPARTMENT TRUST $7,000 COURT BUILDING SECURITY FUND $1,700 COURT TECHNOLOGY FUND $2,250 CHILD SAFETY FUND $10,000 9 FY 2016 Adopted Budget Expenditures FY 2015-16 EX - DEPARTMENT DESCRIPTION PENDITURES COURT BUILDING SECURITY FUND $3,780 Police overtime for court security One new ticket writer and annual software li- COURT TECHNOLOGY FUND $5,500 censing and support CHILD SAFETY FUND $7,500 Dues for the Child Advocacy Center PARK TRUST $150,000 Improvements to Natural Springs Park FIRE TRUST $67,500 Brush Truck 901 Remount PD SEISURE TRUST $15,500 Police Body Cameras RYLAND, W&S IMPRMNT, WESTFIELD, WEST CROSSING, NORTHPOINTE, & Throckmorton Creek Wastewater Interceptor $1,600,000 TARAFARMS SEWER IMPROVEMENT project (see Capital Improvements Fund) TRUSTS CLOSING While budgets are always a challenge, we have worked diligently to propose a budget that is both balanced and sufficient to meet the needs of the coming fiscal year. The staff of the Finance department has put tremendous effort into the development of this document, and I would like to thank them and each department director for their hard work during this process. We express our appreciation to the City Council for your diligent efforts throughout the year in providing guidance, direction and support for our efforts to serve the citizens of Anna. As Anna continues to grow, the city remains committed to the Hometown ideal outlined in its Strategic Vision. The 2015-16 fiscal year budget is designed to preserve and enhance the quality of existing services and re- spond appropriately to our city's continuing growth and development. Respectfully Submitted, C f Philip Sanders City Manager 10 Michael Crist Mayor Justin Burr Place 1 Lauren Lovato Place 2 John Beazley Place 3, Deputy Mayor Pro Tem Philip Sanders ` City Manager Kenneth Jeni Chief of Police/Deputy City Manager Clayton Fulton Director of Finance Carrie Smith City Secretary FY 2016 Adopted Budget City Organization Chad Barnes Place 4, Mayor Pro Tem Nathan Bryan Place 5 Dick Dowd Place 6 Maurice Schwanke Director of Planning and Development Joseph Johnson Director of Public Works Tim Gothard Fire Chief 11 City Attorney Crime Prevention Patrol Criminal Investigations Community Programs Animal Control Dispatch Municipal Judge Finance Budget Payroll ,a n d Accounting Human Resources Utility Billing Municipal Court Information Technology Mayor and City Council City Manager the City Manager ic'ii arks. Water Treatment & Distribution Wastewater Collection & Treatment Street Maintenance Engineering Capital Protects Facilities Maintenance Construction Inspections City Secretary =lanning and Development I � Planning Boards and Commissions Development Review Building Inspections Environmental Health Park Maintenance Staff support for P&Z, BOA, and Parks Board Fire Fire Prevention Fire Suppression Fire Safety Education Code Enforcement �i FY 2016 Adopted Budget np�.�a� noanenlwry Commitment and Vision OUR COMMITMENT In order to enhance the quality of our community, the City of Anna is committed to principles of open and fair government and progressive planning that honor the public trust, protect our common resources, and pro- mote a safe, sustainable, and connected community. WHO ARE WE? The City of Anna is a municipal organization that includes the City Council, Staff, Boards and Commis- sions, and any other entities who act on their behalf. WHY DO WE SERVE? We exist to act on behalf of the citizens in a way that enhances the quality of our community. WHOM DO WE SERVE? A:"� We serve ALL members of the community including current and future citizens, businesses, property owners, and any other individuals or organizations who comprise "the community of Anna". WHAT IS OUR COMMITMENT? Our decisions and actions will be consistent with principles of open and fair government and progres- sive planning. HOW DO WE HONOR OUR COMMITMENT? We will honor the public trust and will be open, fair, consistent, and professional in all our dealings. We will protect the resources that have been entrusted to us, and will be prudent in the expenditure of public funds and the exercise of regulatory powers. We will promote a safe, sustainable, and connected community consistent with the model to which we aspire. 13 (1 FY 2016 Adopted Budget Y,UI�li: ilUi1 F.SUW W Commitment and Vision OUR STRATEGIC VISION ANNA IS OUR HOMETOWN. In order to protect and pro- mote our community vision, we will implement policies that: * Promote the development of a full service community * Encourage small business development ;; * Foster an environment that encourages multi -generational living * Exercise responsible stewardship over natural resources, and promote sus- tainable development r I- * Promote a strong sense of community pride * Facilitate access to state-of-the-art technology * Support the growth of a high quality education system * Enhance the safety and security of our citizens 14 (1 FY 2016 Adopted Budget Commitment and Vision STRATEGIC GOALS AND OBJECTIVES * Attract Professional Jobs * Improve Curb/Aesthetic Appeal of our Community * Promote Downtown Development * Promote Retail Development * Develop a Brand Identity for the City of Anna * Diversify Housing and Neighborhood Options A, * Upgrade City Facilities and Infrastructure v 15 a r, FY 2016 Adopted Budget a_ l; Strategic Implementation Strategy FY 2016 Strategic Plan Implementation Strategy Attract Professional Jobs 1. Develop and implement strategies for providing access to broadband fiber that will support the needs of residents and technology based businesses. • Continue to facilitate opportunities to extend fiber to serve commercial areas and new residen- tial developments 2. Develop and implement strategies for attracting jobs in the medical industry (medical plaza, minor emergency care). • Cultivate relationships with medical groups and hospitals that could potentially locate in Anna as we grow 3. Explore opportunities to build the professional workforce in Anna through partnerships with busi- nesses and educational Institutions. 4. Develop a technology business park in Anna. • Identify land to purchase land for a future technology business park • Develop plan to construct infrastructure that will be required to serve the park Improve Curb/Aesthetic Appeal of our Community 1. Focus on improvements to major transportation corridors emphasizing functionality, aesthetics, efficiency, and impact on adjacent development. • Continue coordination and cooperation with TxDOT on the reconstruction of US 75 from Throck- morton creek to the Collin County Line • Make application for the TxDOT "green ribbon program" for FM 455 • Work with TxDOT to develop community signage program at major interchanges on US 75 2. Improve and expand the City's parks and open spaces. • Substantially improve the maintenance and operation of existing parks and facilities in order to create an excellent "customer experience"for patrons of our existing parks • Work with Bloomfield Homes to construct phase 1 of Lakeview Park • Develop options for parks office and restroom at Natural Springs Park 3. Promote community functions that foster civic pride through partnerships with GACC, Anna ISD, and other community organizations. • Continue to partner with the GACC to support and sponsor community events 16 FY 2016 Adopted Budget �: =V Strategic Implementation Strategy Promote Downtown Development 1. Adopt development regulations for the downtown district consistent with the updated master plan. 2. Develop an incentive program for development/redevelopment in the Downtown District. • Explore potential Public Private Partnership (P3) opportunities 3. Promote a "park and play" atmosphere in the Downtown District. • Develop concept/strategy for a local farmers market • Implement downtown signage program consistent with our community brand 4. Improve the SH 5 and 4t" Street streetscapes in the Downtown District. • Develop schematic design for 4th Street streetscape improvements • Work with governmental partners to identify potential funding sources for improvements to 4th Street Promote Retail Development 1. Develop and adopt development regulations for "small area plans" for the major retail and com- mercial districts. • Develop small area plan for US 75 corridor 2. Review and refine strategies and partnerships for recruiting retail development. Develop a Brand Identity for the City of Anna 1. Create comprehensive brand and brand implementation plan for the City. 2. Develop an organizational mission statement that supports the community brand & vision. Diversify Housing and Neighborhood Options 1. Review community housing plan to identify target density and lot size mix for single family devel- opment; and the optimal unit percentage mix of the various residential housing types (single fami- ly, multifamily, etc.). • Initiate an update to the 2010 Comprehensive Plan 2. Explore opportunities to renegotiate or revise existing residential entitlements in order to pro- mote construction of higher value residential neighborhoods. 17 a r, FY 2016 Adopted Budget a_ l; Strategic Implementation Strategy Upgrade City Facilities and Infrastructure 1. Develop options for the construction of a new City Hall and remodel or expansion of Fire Station facilities . • Develop financing plan and schedule to construct the City Hall project 2. Make improvements to City infrastructure that are necessary to accommodate the growth of our community. • Complete design and construction of the Construct the Foster Crossing Water Line Project, the Throckmorton Creek Wastewater Interceptor Project, the Water Disinfection Upgrade Project, the Hackberry Elevated Storage Tank Project, the Hackberry Waterline Improvement Project, and the TxCDBG Sewer Improvement Project • Development construction plans to rehabilitate the Sherley Pump Station Ground Storage Tanks • Develop plan to activate south pump station and ground storage tank • Develop plans for US 75 Utility Relocation Project • Continue to coordinate with TxDOT on the FM 455 Reconstruction Project • Continue to coordinate with TxDOT on the development of engineering and construction plans for the reconstruction of US 75 from Throckmorton Creek to the Collin County Line • Develop construction plans for reconstruction of Hackberry Drive (SH 5 to Slayter Creek) �I 18 a r, , FY 2016 Adopted Budget Date of Incorporation Date of Home Rule Charter Adoption Form of Government Estimated Population as of January 1, 2015 Area in Square Miles Planning Area in Square Miles (including ETJ) Fire Protection Number of Full Time Equivalents Number of Volunteers Calls for Service (entire Fire District 2014 Calendar Year) Fire Inspections (2014 Calendar Yes Police Protection Sworn Police Officers Civilian Employees Calls for Service (2014 Calendar Yes Adult Arrests (2014 Calendar Year) Water and Sewer Utility Active Residential Accounts Active Non -Residential Accounts Average Daily Water Consumption (2014) Ground Storage Capacity (gallons) Elevated Storage Capacity (gallons) Ground Water Production Capacity (gallons per day) Pump Capacity (gallons per minute) Waste Water Treatment Capacity (gallons per day) Building Permits Residential Building Permits (2014 Calendar Year) Residential Market Value (2015 Certified Tax Roll) Non-residential Building Permits Non-residential Market Value (2015 Certified Tax Roll) Parkland Acreage Acres of Developed Parkland Acres of Undeveloped Parkland Statistics 1913 May 7, 2005 Council/Manager 10,980 15 62 6 23 1134 210 13 1 9,258 290 4,262 161 1,061,013 1,000,000 500,000 2,390,400 3,925 500,000 295 $509,719,967 8 $330,800,047 112 88 19 FY 2016 Adopted Budget Budget Process Introduction: The annual budget is the single most important financial responsibility of a local government Citizens are able to see how city officials and staff plan to spend taxpayer dollars. Once the budget is adopted, funds may only be spent in a manner consistent with the stated plans, objectives, and policies outlined in the budget unless amended in accordance with the City Charter and by approval of the City Council. The budget begins with a transmittal letter written by the City Manager to the City Council. This letter is to officially present the budget to the City Council and provide a general overview of budget conditions and trends for the City of Anna. The budget is divided into four specific sections: introduction, financial/operational summaries by fund, com- ponent units, and supplemental information. The introduction contains the transmittal letter, policy state- ments to guide City officials and staff, and an overview of budget practices and administration within the City of Anna. The financial/operational section of the budget will contain specific information on each fund and subsequent departments the City operates. Activities, services, goals, and objectives will be outlined for each department Comparisons of revenue and expenditures will be presented for the actual amounts from the previous fiscal year (FY), the current FY budget, the current FY estimate, and the proposed budget for the up- coming FY. General Budget process, practice, and administration: The budget follows a FY beginning on October 1 and ending on September 30. Each year the budget is adopted by the Council, which sets the legal spending limits for the government during the upcoming FY. In order to prepare for and adopt the budget on time, the city must follow a schedule allowing for sufficient time to ade- quately evaluate current and past budgets, current economic conditions, and project revenues and expendi- tures for the upcoming budget The budget is developed at the department level and adopted at the fund level. Many individuals are involved in the budget process. City officials, department staff, and the public are all in- volved; however, the primary responsibility to assemble and create the document falls upon the City Manager and Finance Director. The City follows a schedule to ensure the budget progresses in a timely manner. Follow- ing you will see a budget calendar the City follows(ed) for the preparation and adoption of this document Throughout the year the finance department provides periodic and regular reports to department directors. These reports are used to analyze current and projected revenues and expenditures. In this way, department heads are able to control their expenditures, maintain their budgets, and project future expenditures through- out the year. This is crucial to the budget process as conditions and situations may change throughout the year. Once the budget is adopted, it can only be amended under certain provisions established through the City's charter. If amendments are required it is imperative that budget amendments be accurate and only oc- curs when absolutely necessary. In this way, the budget process occurs continually throughout the year; first to ensure that budgets are maintained, second to prepare for any amendments that may be necessary due to unforeseen circumstances, and third to evaluate trends in preparation for the upcoming budget. While the budget is ongoing, the bulk of the work occurs begins at the end of the 2nd quarter of each fiscal year. Beginning in April, department directors update their five year capital improvements plan including up- 20 f1 FY 2016 Adopted Budget Budget Process Y'ill"Ftil(1ti9 F;T6W'N dating the estimated cost for all projects currently in the capital plan and developing plans for any newly pro- posed projects. By the end of April all projected revenues and expenditures for the subsequent fiscal year are due. Throughout the first 2 weeks of May, the City Manager and Finance Director will meet jointly with each department head to review the department's budget proposal, including the line item details. In connection with staff meetings on departmental budgets, the City Council will begin to meet for workshop sessions throughout April, May, June, and July to discuss departmental budgets, review supplemental requests, and re- view priorities. The meetings with the Council are public meeting where citizens can come to participate and hear each a review on each department's current accomplishments and discuss priorities and goals for the subsequent year's budget During the time workshops are scheduled, staff will continue to refine the budget as more information be- comes available. Budget requests and priorities are carefully weighed to ensure that city functions and ser- vices will be maintained while allowing for increased services where necessary. Upon conclusion of all depart- ment budget workshops and in consideration of priorities established in the City's Strategic Implementation Plan, staff will present a preliminary draft of a balanced budget to the City Council. Once the Council has re- viewed the preliminary draft, a final workshop will be held in late July before the proposed budget is produced and made available for public review. Once the budget is made available, a public hearing will be held on the budget where citizens can express their views on particular budget items. As will be discussed later, property taxes are a major driver of the City's Budget The Collin Central Appraisal District (CAD) provides the tax roll with information on the taxable value of properties within the City of Anna. Staff receives periodic reports from the CAD to evaluate trends in the taxable value in order to estimate prop- erty tax revenue. Once certified tax rolls are available from Collin County, the City will finalize the proposed budget including a recommended property tax rate that will allow the city to meet its financial obligations. The certified tax rolls are typically available no later than July 25th, the proposed budget present in late July will include the proposed tax rate to fund the budget Budget and tax rate hearings occur throughout the month of August with formal adoption of the budget sched- uled for early September. The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distin- guished Budget Presentation Award to the City of Anna for its annual budget for the fiscal year beginning Octo- ber 1, 2014. In order to receive this award the governmental unit must publish a budget document that meets the program criteria as a policy document, an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to pro- gram requirements, and we are submitting it to GFOA to determine its eligibility for another award. For more information on the budget process and administration of the budget, please refer to Article 7 of the City of Anna Charter included in the supplemental section of the budget 21 FY 2016 Adopted Budget YgirowFN Budget Process GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award 'RESENTED TO City of Anna Texas For the Fiscal Year Beginning # October I, 2014 Fxecutive Director 22 FY 2016 Adopted Budget Budget Process FY 16 Budget Calendar APR MAY ®® 1 - Activate budgeting program 1 - Read only status in budgeting program 1 2 3 3- Submits yea rCIP to City Manager 1 - 5-22 City Manager and Finance Department to meet 6 7 8 9 10 14 -Review FY 16 goals 4 5 8 7 $ with Department Directors to discuss proposals 13 14 15 16 17 29 - Review Preliminary Revenue Estimates 11 12 13 14 15 26 - Review Draft Admin Budgets 20 21 22 23 24 3fl -Complete F5' i6 budget projections 18 19 20 21 22 26-29 Update budget proposals based upon meetings 27 28 29 30 25 26 27 28 29 and updated information JUN JUL ®MM®N®® 9 - Review Draft Public Safety R Court Budgets MMEEIT 14 - Review Draft Water, Sewer, B VE3 Budgets 1 2 3 4 5 23- Review Draft Planning, Streets, & Park Budgets 1 225- Chief Apparisor deadeline to certify 3710 11 12 1-30 Refine budget proposals and produce working 6 7 8 9 10 appraisal rolls 15 16 17 18 19 draft of the budget 13 14 15 16 17 n 28 - Review Draft Budget in workshop 22 23 24 25 26 20 21 22 23 24 lJ 29 30 27 F281 29 30 31 AUG 5EP 6 - Publish Notice of Public Hearing on Budget ® 1 - 2nd Hearing on Tax Rate 7 - Budget available for Public Review T 2 3 4 1 - Schedulelannounce mtg to adopt tax rate3 4 5 6 7 11 - Review Proposed BudgetlVote on Max Tax Rate 9 10 11 4 - 72 hr. Open meeting notice - Budget/Tax Rate 10 11 12 13 14 13 - Pubilsh Notice of Public Hearing on Budget 14 15 16 17 18 8 - Adopt Budget and Tax Rate 17 16 19 2D 21 13 - Publish Notice of Proposed Tax Rate 21 22 23 24 25 9 - Make all necessary website postings 24 � 26 27 28 -- 21 - 72 hr. open meeting notice -Budget and Tax Rate 28 29 30 31 25 - Public Hearing on Tax Rate 28 - 72 hr. open meeting notice - Tax Rate ' Dates are Subject to Change " Holidays are in RED, Staff dates are in BLUE, Council dates are in Publishing dates are in GREEN 23 FY 2016 Adopted Budget �: =V Fund Structure Description of Fund Structure The budget is organized by funds with departments and line items all rolling up to the fund level. A fund is generally defined as a fiscal/accounting entity with its own set of self -balancing accounts. Each fund can be presented independent of the other funds to illustrate that funds' purpose for specific activities. The City of Anna deploys Governmental and Proprietary Funds. Governmental funds are used for the bulk of the activities carried out by the City. The focus of Governmental funds is the flow of current financial re- sources. The Governmental funds account for services like Police and Fire in the General Fund, as well as debt in the Debt Service Fund, capital projects in the Capital Improvements Fund, and restricted/special revenues. Propriety or Enterprise funds focus is that of a business which charges a fee to cover the cost of providing goods or services. The Utility Fund, which accounts for water, sewer, and trash services provided to the citi- zens of Anna, is an Enterprise Fund. Governmental Fund Types General Fund - This is the primary operating fund for the City. The General Fund revenue is from taxes, fees, fines, licenses, etc. General Fund expenditures are for typical municipal services such as Police, Fire, Ambu- lance, Parks, Streets, and Administration. Debt Service Fund - This fund accounts for all the long term debt supported by taxes and issued to support governmental fund type activities. A portion of the property tax levy (Interest and Sinking Rate) is dedicated to support this fund. Principal and interest payments on long term debt are found in the Debt Service Fund. Capital Improvements Fund - This fund accounts for major capital projects and improvements such as streets, sidewalks, park projects, etc. Revenues for this fund are restricted for the project Revenue sources include bond proceeds, fund transfers, grants, and intergovernmental revenue from other governmental entities such as TxDOT and Collin County. Restricted Revenue Trusts Funds- With the exception of capital projects, this accounts for revenue sources that are legally restricted to expenditures for a specific purpose and in accordance with the enabling legisla- tion. Currently these trusts are accounted for in the general fund and reported in the audited as restricted fund balance. Proprietary/Enterprise Fund Types Utility Fund - This fund accounts for the operation and maintenance of the City's water and waste water utility system and the contract for solid waste collection services. This fund is financially supported solely by user charges for utility and trash service. The typical measure of financial health for each fund is the fund balance at year end. The fiscal policies which are presented in the supplemental information section of the budget will discuss those measures in more de- tail. A consolidates schedule of revenues and expenditures by fund as well as a schedule of estimated and pro- jected fund balance is below: 24 Ann FY 2016 Adopted Budget FY 16 Consolidated Financial Schedule Fund Structure As discussed above, City resources are accounted for by fund. The following sections will review each fund and subsequent department in detail. The following table illustrates sources and uses of funds by the entire City. With the exception of the Utility Fund, all fund units have sufficient revenue to cover expenditures. The Utility Fund includes capital projects related to our water and sewer infrastructure. In late 2012 and early 2014, the City issued bonds for water and sewer infrastructure projects. These bond funds are held in reserve to complete the proposed projects. The Utility Fund will not run a deficit in FY 16; bond proceeds held in re- serve will fund the proposed infrastructure projects in the Utility Fund. Debt Capital Component Combined General Restricted Utility Service Improvements Units Totals Revenues Property Tax $3,240,331 $649,228 $3,889,559 Other Taxes (Sales and other) $1,120,000 $700,000 $1,820,000 Development $424,000 $424,000 Fines $100,000 $4,500 $104, 500 Intergovernmental Water Sales and Fees Sewer Sales and Fees Trash sales and Fees Transferin Fund Balance Allocation Bond Proceeds Grant Revenue Impact/Developer Fees Contributed Capital Other $196,595 $10,000 $3,164,871 $2,037,287 $799,500 $34,190 $219,190 $148,822 $28,572 $278,750 $590,000 $206,595 $3,164,871 $2,037,287 $799,500 $254,804 $28,572 $868,750 $125,000 $35,000 $308,822 Total Revenues $5,229,748 $649,228 $321,822 $34,190 $6,937,272 $735,000 $13,907,260 Expenditure/Expense Payroll $3,338,390 $3,780 $940,136 $4,282,306 Supplies $308,434 $105,080 $3,600 $417,114 Maintenance $144,200 $404,150 $6,500 $554,850 Services $1,250,724 $9,550 $4,696,676 $514,600 $6,471,550 Capital Expenditures $188,000 $247,500 $4,884,131 $160,000 $5,479,631 Other Uses of Funds Transfer Out $219,190 $34,190 $253,380 Debt Service $430,038 $430,038 Total Expenditure/Expense $5,229,748 $649,228 $260,830 $0 $11,064,363 $684,700 $17,888,869 25 FY 2016 Adopted Budget Fund Structure L Three Year (FY 14 - FY 16) Consolidated Financial Schedule The following schedule illustrates the total financial sources and uses for the City of Anna since FY 14. The FY 14 amounts are the actual financial re- sults while the FY 15 amounts represent the budgeted amounts. The FY 16 amounts are those proposed in this budget PRESENTED IN 1.000'S General Debt Service Restriced Revenue Capital Improvements Utility Component Units Combined Totals FY 14 FY 15 FY 16 FY 14 FY 15 FY 16 FY 14 FY 15 FY 16 FY 14 FY 15 FY 16 FY 14 FY 15 FY 16 FY 14 FY 15 FY 16 FY 14 FY 15 FY 16 Actual Budget Adopted Actual Budget Adopted Actual Budget Adopted Actual Budget Adopted Actual Budget Adopted Actual Budget Adopted Actual Budget Adopted Revenues Property Tax 2,412 2,789 3,240 39 . 27 649 2,805 3,316 3,890 Other Taxes (Sales and other) 1,092 995 1,120 675 630 700 1,767 1,625 1,820 Development 629 379 424 - 629 379 424 Fines 74 100 100 3 4 5 - - 77 104 105 Intergovernmental 107 109 197 10 10 10 117 119 207 Water Sales and Fees - - - - - - 2,676 2,962 3,165 2,676 2,962 3,165 Sewer Sales and Fees 1,681 1,692 2,037 1,681 1,692 2,037 Trash sales and Fees 698 710 800 698 710 800 Transfer In 476 34 153 221 476 , 235 255 Fund Balance Allocation Bond Proceeds 160 - - - 160 - Grant Revenue 29 25 - - - 25 - 29 ImpacVDeveloper Fees 203 135 EL 272 924 410 590 1,127 l 545 0 869 - Contributed Capital - - - - - - - - - Other 1 158 146 149 1 - 5 - - 2 - - - 125 71 85 35 237 230 309� Total Revenues 4,471 4,517 5,230 392 527 649 222 149 322 503 242 34 5,980 5,927 6,937 1 747 715 735 1 12,316 12,077 13,907 Expenditure/Expense Payroll 2,408 2,880 3,338 3 4 858 1,052 940 I I - wr 'I - 3,266 3,935 4,282 Supplies 197 234 308 - - 108 111 105 4 6 4 309 350 417 Maintenance 133 131 144 - - 258 349 404 - MOM 7 391 481 555 Services 1,159 1,106 1,251 6 10 10 2,732 3,882 4,697 426 459 515 4,323 5,457 6,472 Capital Expenditures Other Uses of Funds Transfer Out Debt Service 268 158 188 - - - - 85 219 442 442 430 419 150 248 - - - - 261 566 - 159 - 1,266 1,698 4,884 - - - 84 34 - - 181 165 160 - - - 2,134 2,432 5,480 566 - - 159 169 253 442 442 430 Total Expenditure/Expense 1 $4,164 $4,510 $5,230 $442 $527 $649 $424 $163 $261 $725 $261 $0 $5,223 $7,176 $11,064 $611 $630 $6851 $11,590 $13,267 $17,889 26 FY 2016 Adopted Budget �: =V Fund Structure Schedule of Fund Balance 2014 Audited 2015 Projected 2016 Proposed % CHANGE Fund Balance Fund Balance Fund Balance FY 15 to FY 16 Total Governmental Funds $3,586,482 $2,852,438 $2,925,601 3% Non -spendable $35,642 $0 $0 N/A Restricted $1,265,399 $517,480 $565,919 9% Committed —Contingency $135,286 $157,477 $162,201 3% Committed —Other $26,224 $0 $0 N/A Assigned $144,175 $80,000 $100,000 25% Unassigned $1,979,756 $2,097,481 $2,097,481 0% Utility Fund $9,957,707 $7,882,815 $3,764,021 -52% Working Capital $340,813 $368,662 $442,349 20% Restricted Cash for System /m- $9,616,894 $7,514,153 $3,321,672 -56% provements The Governmental Accounting Standards Board (GASB) has issued a statement regarding the classification of fund balance. Fund balance in the Governmental Funds is classified as non -spendable, restricted, committed, assigned, and unassigned. The City currently has no fund balance classified as non -spendable. Amounts classi- fied as non -spendable in FY 14 were for EDC/CDC loans receivable. Restricted funds include those restricted to a specific purpose such as park trust fees. Committed funds are those committed by council action as contingency appropriation performed by ordinance. Assigned funds are those intended for specific projects and are not restricted or committed. The assigned fund balance is for fu- ture capital projects not yet determined. The Utility Fund does not report fund balance; the focus in the Utility Fund is working capital, or the short term assets available after covering short term liabilities. For the purposes of this schedule, restricted cash for system improvements includes impact/developer fees and bond proceeds from the 2012 and 2014 bond issue to fund water and sewer system improvements. 27 The schedule on the right in- cludes the staffing levels for the entire City since FY 12. Each number represents a Full Time Equivalent (FTE) rather than an actual individual or person. For example, the seasonal laborer position is actually 2 people em- ployed for only a portion of the year. The two individuals would equate to one full time equiva- lent This budget would author- ize 2 new positions for the City funded from the General Fund. However, certain positions have been transferred between funds. The General Fund is adding an School Resource Office in the Police Department and a Parks Superintendent. Additionally, 3 FTE's are being transferred from the Utility Fund to the General Fund to focus on street mainte- nance and repair. This is a net gain of 5 FTE's in the General Fund; however, there is only 2 new FTE's. The Utility Fund has a net loss of 3 FTE's as those positions are being transferred to the General Fund to focus on street mainte- nance and repair. FY 2016 Adopted Budget Staffing Schedule by Fund General Fund FY 12 FY 13 FY 14 FY 15 FY 16 City Manager 1 1 1 1 1 EDC/CDC Director 0.5 0.5 0.5 0.5 0.5 Assistant to the City Manager 0.5 0.5 0.5 0.5 0.5 Receptionist 0.5 0.5 0.5 0.5 0.5 City Secretary 1 1 1 1 1 Finance Director 1 1 1 1 1 Accountant 11 0 0 0 1 1 Finance/Budget Analyst 0 0 0 1 1 HR Administrator 0 0 0 1 1 Finance/HR Supervisor 1 1 1 0 0 Payroll/Accounting Assistant 1 0 0 0 0 HR Coordinator/Finance Asst 0 1 1 0 0 Director of Planning 1 1 1 1 1 Planner 11 0 0 1 1 1 Planner 1 1 1 1 1 1 Code Enforcement Officer 1 0 0 0 0 Administrative Assistance 0 1 1 1 1 Fire Chief 1 1 1 1 1 Fire Marshal 1 1 1 1 1 Fire Captain 0 3 3 3 3 Fire Fighter 2 1 1 2 2 Police Chief 1 1 1 1 1 Crime Scene Technician 1 0 0 0 0 Records Administrator 1 1 1 1 1 Police Lieutenant 0 0 0 1 1 Police Sergeant 1 1 1 2 2 Police Officer 9 10 10 9 9 SRO 0 0 0 0 1 Court Administrator 0 0 0 1 1 Municipal Court Clerk 1 1 1 0 0 Park Superintendent 1 1 1 0 1 Crew Leader - Parks 0 0 0 1 1 Maintenance Worker 1 0 0 1 1 3 Seasonal Laborer 0 0 1 0 1 Streets Supervisor 0 0 0 0 1 Total General Fund 28.5 30.5 33.5 36.5 41.5 Utility Fund Director of Public Works 1 1 1 1 1 PW Superintendent 0 0 0 1 1 Administrative Assistant 1 1 1 1 1 Construction Inspector 0 0 0 1 1 Field Supervisor - Public Works 1 1 1 1 1 Crew Leader - Public Works 1 1 1 1 1 Equipment Operator 1 0 0 0 0 Maintenance Worker 1 4 5 8 7 3 Maintenance Worker 11 0 0 0 1 1 Seasonal Laborer 1 1 0 0 0 Senior Wastewater Operator 0 0 1 1 1 Wastewater Operator 2 2 1 1 1 Customer Service Supervisor 1 1 1 1 1 Senior Customer Service Rep. 1 1 1 1 1 Customer Service Rep. 1 0 0 0 0 Receptionist 0.5 0.5 0.5 0.5 0.5 Total Utility Fund 15.5 14.5 16.5 17.5 14.5 Total City Operations 44 45 50 54 56 28 FY 2016 Adopted Budget General Fund Revenue The City of Anna finances its general fund activities from three types of revenue; taxes, fines & fees, and user charges. These include property and sales taxes, licenses & permits, and fines. Beneficiaries of General Fund Services are not generally required to pay a fee commensurate with the value of the services received. The top three revenue sources are (1) property taxes, (2) sales tax, and (3) development fees. The 3 sources comprise over 80% of FY 16 revenue. Property Tax: The Ad Valorem Property Tax reve- nue(62%) is a function of the tax rate Franch the City formally adopts each year. S Developme The Collin Central Appraisal District 8 f, (CCAD) establishes the value of each property within the City of Anna and the City applies the maintenance and operations portion of the rate to the sales Tax certified value provided by CCAD. 13% The certified taxable assessed value is $608,694,594. This represents an increase of 16.7% and is due, in part, to the addition of over $42 million in new value and an increase of approx- imately 10% in the taxable assessed value of existing properties. FY 16 ADOPTED GENERAL FUND REVENUE Other Fire Court ntal 4p Tax After four years of declining property values between 2009 and 2012, property values eventually stabilized in 2013 when the total taxable value exceeded for the first time the previous peak for taxable value set in 2008. Strong growth and new construction in 2013 resulted in a substantial increase in total taxable value for the 2014 tax year. Continued strong Taxable Value Over Time growth and new construction in 700,000,000 2014 has contributed to a signif- icant increase in total taxable 600,000,000 value for the 2015 tax year. We 500,000,000 remain guardedly optimistic 400,000,000 - that a trend of market apprecia- tion and modest growth will 300,000,000 continue in the coming years. 200,000,000 100,000,000 The growth in taxable value cor- responds to a significant in- ,� crease in population over the �� past year. According to the most recent population estimates ti 29 FY 2016 Adopted Budget ��, General Fund Revenue published by the North Central Texas Council of Governments, the City of Anna population as of January 1, 2015 was 10,980. In 2014 the City's population increased 7.1% placing Anna in the top 12 cities for percent population growth in the Dallas/Ft. Worth region. Tax Year Assessed Value Total Tax Rate M&O Rate Debt Service Rate Total Property Tax Revenue 2000 $29,991,809 0.5299 0.2563 0.2735 $150,809 2001 $35,320,292 0.5799 0.1511 0.4288 $182,838 2002 $52,462,163 0.4997 0.4997 0 $288,103 2003 $79,351,888 0.4997 0.4997 0 $407,430 2004 $136,234,607 0.4997 0.4997 0 $693,504 2005 $211,508,957 0.525 0.525 0 $1,148,140 2006 $288,590,455 0.525 0.4386 0.0863 $1,541,817 2007 $356,238,071 0.575 0.4667 0.1082 $2,015,950 2008 $383,961,925 0.575 0.4794 0.0955 $2,207,626 2009 $378,153,710 0.622733 0.529939 0.0928 $2,354,888 2010 $365,119,804 0.650332 0.554225 0.096107 $2,374,491 2011 $362,969,678 0.650332 0.559367 0.090965 $2,360,508 2012 $376,578,308 0.650332 0.559367 0.090965 $2,449,009 2013 $430,704,884 0.650332 0.559367 0.090965 $2,801,012 2014 $510,888,329 0.649 0.545826 0.103174 $3,315,665 2015 $608,694,594 0.639 0.532341 0.106659 $3,889,558 The following table details the change in TAV, tax rate(s), and property tax revenue over time: Below is a summary of the 2015 tax year proposed tax rates of our comparison cities.: 0.700000 0.600000 0.520000 0.500000 0.400000 0.359999 0.300000 0.200000 0.100000 0.610000 0.612639 0.661687 0.677100 0.691886 0.645000 0.639000 � Fairview Prosper Melissa Van Alstyne Anna Celina Little Elm Royse City Princeton 30 FY 2016 Adopted Budget General Fund Revenue L Sales Tax: Sales tax revenue accounts for 13% of General Fund Revenue. The City currently levies a 2% sales tax that is in addition to the 6.25% the state levies. Of the 2% City levy, 1% is allocated to the general fund while the re- maining 1% funds the Economic and Community Development Sales Tax History Corporations. As the City has $800,000 grown, so has the sales tax base. $700,000 Since 2008 the City has seen aver- age annual sales tax growth of $600,000 12%. In spite of the growth in $500,000 commercial development, the $400000 forecast for FY 16 is conservative $300,000 based upon the uncertainty in the national economy and a slowing $200,000 trend in sales tax growth based $100,000 upon the most recent years. $- 2010 2011 Adj. 2012 2013 2014 2015 2016 FY 2011 sales tax revenue was Estimate Proposed adjusted down to account for an economic development incentive between the City of Anna and a local home builder. The incentive expired in late 2011 and the numbers are adjusted to account for actual sales tax revenue in the General Fund. The City continues to partner with its Economic Development Corporation to recruit business to Anna that will be suc- cessful and contribute to our sense of community. General Fund Sales Tax Revenue Fiscal Year Sales Tax Revenue % Change 2000 $37,586 -12.06% 2001 $43,827 16.60% 2002 $61,160 39.55% 2003 $79,132 29.38% 2004 $115,843 46.39% 2005 $155,399 34.15% 2006 $225,886 45.36% 2007 $293,934 30.12% 2008 $336,730 14.56% 2009 $384,642 14.23% 2010 $433,375 12.67% 2011 Adjusted $466,420 7.62% 2012 $516,025 10.64% 2013 $574,679 11.37% 2014 $655,821 14.12% 2015 Estimate $700,000 6.74% 2016 Proposed $700,000 0.00% 31 rio�.�a� nnsss�nrwry FY 2016 Adopted Budget General Fund Revenue Development: Development revenue is driven by building activity in the City. Development revenue is a combination of building permits, zoning fees, plat fees, contractor registration fees, and all other fees related to the permitting and approval of construction activity in the City. The City experienced a sharp Building Permits by Year decline in building permits from 2006 600 through 2010 that coincided with the recession. However, as the economy has 500 improved nationally and locally, we are seeing an increase in building activity. 4€70 Much of the increase is attributable to a 300 large inventory of available single family lots during 2012-2013. As that invento- 200 ry diminished we have we have also ob- served modest drop in building activity. 100 So far in 2015, the City has received 176 p ® 1 building permit applications for single�N family homes. We anticipate that new home construction will increase when subdivisions that are under construction or in various stages of the development process are complete and become available in the market Illustrated below is a brief history of revenue sources for the City of Anna. Proposed revenue for FY 16 is up 16.2% over the budgeted amount for FY 15. The estimate for FY 15 is based upon performance over the first 3 quarters of the fiscal year including historical and seasonal trends. Property and Sales Tax revenues are both up over 10%. This increase is driven by growth in the housing market and associated growth in commercial development The increase in intergovernmental revenue is related to the Anna ISD funding the SRO position. General Fund Revenue Summary ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE PROPERTY TAX $2,412,337 $2,788,561 $2,785,800 $3,238,907 16.15% SALES TAX $675,516 $630,000 $700,000 $700,000 11.11% DEVELOPMENT $629,061 $379,300 $391,300 $424,000 11.78% FRANCHISE TAX $416,175 $365,000 $440,000 $420,000 15.07% COURT $73,824 $100,000 $114,000 $100,000 0.00% FIRE $80,642 $69,406 $157,649 $85,906 23.77% INTERGOVERNMENTAL $106,600 $108,925 $108,925 $205,499 88.66% OTHER $77,060 $76,149 $65,492 $74,916 -1.62% Total $4,471,215 $4,517,341 $4,763,166 $5,249,228 16.20% 32 I FY 2016 Adopted Budget General Fund Expenditure Summary The General Fund accounts for the expenditures associated with operating the general government services one typically expects from their municipal government and are funded in part or in whole with property taxes. These services include public safety, parks, streets, planning, and the general administrative support for these services and the FY 16 ADOPTED GENERAL FUND BUDGET City Council. The chart on the right illustrates the percentage of the budget attributed to each depart- ment For FY 16, public safety will account for 49% of the budget This includes police, fire, ambulance services, and ani- mal control. ADMINISTRATION CITY MANAGER'S STREET 12.4% 5.1°Ja OFFICE 6 0 oX PARK 6.4% MUNICIPALCOURT 2.3%m POLICE 29.5% rrry rnl irkir11 AMBULANCE 2.4% CITY SECRETARY 2.2% FINANCE7.7% DEVELOPMENT 9.7% ANIMAL CONTROL 1.1% FIRE 14.8% The table below illustrates a brief history for each department from FY 14 through FY 16. The table includes actual costs from FY 14, budgeted and estimated costs for FY 15, proposed budget for FY 16, and the percent change from the FY 15 budget. General Fund Expenditure Summary MEEMPW-l'V ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE ADMINISTRATION $162,886 $134,329 $151,981 $268,687 100.02% CITY COUNCIL $13,812 $28,095 $28,270 $18,745 -33.28% CITY MANAGER $262,770 $279,946 $289,988 $315,442 12.68% CITY SECRETARY $111,163 $114,906 $115,542 $117,914 2.62% CITY ATTORNEY $98,610 $95,500 $95,500 $0 -100.00% FINANCE $256,409 $359,353 $337,446 $402,449 11.99% DEVELOPMENT $571,797 $500,925 $483,558 $510,569 1.93% ANIMAL CONTROL $56,163 $57,263 $56,236 $56,799 -0.81% FIRE $649,719 $735,107 $721,099 $775,567 5.50% AMBULANCE $123,683 $123,683 $123,683 $127,594 3.16% POLICE $1,286,236 $1,441,776 $1,364,069 $1,550,850 7.57% MUNICIPAL COURT $115,214 $116,469 $110,085 $120,124 3.14% PARK $233,192 $229,989 $230,889 $335,275 45.78% STREET $222,231 $292,221 $254,812 $649,213 122.17% TOTAL $4,163,884 $4,509,562 $4,363,157 $5,249,228 16.40% 33 FY 2016 Adopted Budget Departmental Summaries Each departmental summary includes its purpose, FY 15 accomplishments, and FY 16 goals. A summary of expenditures are included as well as new programs or noteworthy changes from the FY 15 budget. Expendi- tures are summarized into the following categories: Payroll: Payroll expenditures include all the costs associated with the employees in that department The payroll category includes salaries and wages, overtime, payroll taxes, health insurance, retire- ment, unemployment, workers compen- sation, and other related payroll costs. Supplies: Supply expenditures include office sup- plies, vehicle supplies, fuel, postage, medical supplies, clothing supplies, chemical supplies, protective gear and other consumable items. SERVI 24`. �•-`-INTENANCE 3% SUPPL 6% GENERUL FUND COST CENTERS CAPITAL EXPENDITURES L_.A PAYROLL 63% Maintenance: Maintenance expenditures include maintenance and repair costs for all city assets, equipment, and other city owned property, such as buildings, streets, parks, water and sewer system (in the Utility Fund), vehicles, equipment, etc. Services: Service expenditures include services which the City pays for. Items such as utility costs, telephones, liability & property insurance, employee travel & education, advertising for public notices, etc. This category also in- cludes professional services such as engineering or auditing, and contracted services such as IT services, dis- patch services, legal, animal control, etc. Capital Expenditures: Capital expenditures include items such as machinery, equipment, motor vehicles, building renovations, etc. The table below illustrates how departments will be summarized. General Fund Expenditure Summary by Category ACTUAL PAYROLL $2,407,870 SUPPLIES $196,643 MAINTENANCE $132,725 SERVICES $1,158,634 CAPITAL EXPENDITURES $268,012 TOTAL $4,163,884 BUDGET ESTIMATE $2,880,467 $2,786,159 $234,252 $177,390 $131,400 $129,400 $1,105,811 $1,097,934 $157,632 $172,275 $4,509,562 $4,363,157 34 ADOPTED % CHANGE $3,338,390 15.90% $308,434 31.67% $144,200 9.74% $1, 240, 024 12.14% $218,180 38.41% $5,249,228 16.40% FY 2016 Adopted Budget am 10-400 Administration YIgi31;. 110M F:'P4WN Purpose/Description The administration department providesgeneral administrative support to all the functions, programs, activities, and projects in the General Fund. These activities have costs not readily assignable to any specific department. Administration covers a number of shared expenses at City Hall (utilities, supplies, etc.) as well as other General Fund expenses (IT services). FY 16 ADOPTED ADMIN BUDGET SUPPLIES MAINT 4% 2% L CA RVICES , 94% New and Noteworthy for FY 16 Community Branding Project • Through a strategic partnership with the Community Development and Economic Development Corporations the City has engaged North Star Destination Strategies to complete a community branding project engaging key stakeholders to identify what brand and image for the City ofAnna and the community Website Redesign • The City's website is not optimized for mobile devices and does not provide a consistent experience on tablets or other hand held devices This project will upgrade our web platform to provide a richer experience for our citizens Includes City Attorney's costs in services budget transferred from City Attorney department Expenditure Summary ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE SUPPLIES $7,745 $9,250 $8,750 $10,250 10.81% MAINT $9,808 $5,800 $5,500 $5,500 -5.17% SERVICES $134,788 $118,279 $131,788 $252,937 113.85% CAP EX $10,544 $1,000 $5,943 $0 -100.00% TOTAL $162,886 $134,329 $151,981 $268,687 100.02% 35 Ann f •J �1" . _!'41•a Ali. Purpose/Description FY 2016 Adopted Budget 10-403 City Council The City Council is the legislative body of the city functioning under a Home Rule Charter adopted May 7, 2005. This department is designed to provide funding related to administration of legislative matters including, profes- sional development of Council members FY 16 ADOPTED CITY COUNCIL BUDGET SERVICES 84% ,] New and Noteworthy for FY 16 SUPPLIES 16% Strategic retreat funded in FY 15 not necessary for FY 16 Supplies budgets increases for inclusion of IT supplies Capital budget decreased for transfer of IT supplies to supplies category h SUPPLIES SERVICES CAP EX TOTAL ACTUAL $1,973 $11,839 $0 $13,812 Expenditure Summary In BUDGET $1,500 $25,595 $1,000 $28,095 ESTIMATE $1,920 $25,350 $1,000 $28,270 ADOPTED $2,920 $15,825 $0 $18,745 % CHANGE 94.67% -38.17% -100.00% -33.28% 36 YIp11It!. liptil F•'IOWH FY 2016 Adopted Budget 10-406 City Manager's Office Purpose/Description The City Manager oversees the implementation of City Council policies and directives, manages the day-to-day operations of the City, administers the annual operating budget, and promotes the overall interests of the commu- nity. The City Manager advises the City Council on policy decisions and provides leadership to the departments as they implement City policies The Assistant to the City Manager serves as the Chief Administrative Officer of the City Economic and Community Development Corporations and as the City's public relations manager. FY 15 Accomplishments • Managed the implementation of the FY 2014-15 Budget and Strategic Goals • Worked with the City Council to update the City's Strategic Plan • Initiated Community Branding Project. • Developed a concept plan and cost estimates for new City Hall (project is ongoing) • Worked with governmental partners on request for membership in the North Texas Municipal Water District Upper East Fork Regional Interceptor System (application & request are under review) • Worked with TxDOT to commence construction on the FM 455 Reconstruction Project • Partnered with TxDOT on the development of construction plans for the reconstruction of US 75 from Throckmorton Creek through the FM 455/US 75 interchange • Acquired land for the future expansion of public works operations • Negotiated Development Agreement for the construction of Lakeview Park • Negotiated Development Agreement for the expansion of Ferguson Parkway south of FM 455. • Re -negotiated the Villages of Hurricane Creek land use entitlement and Development Agreement • Negotiated amendments to the Anna Town Square Development Agreement • Negotiated Economic Development Agreement for a major new retail development at the NE corner of FM 455 and US 75 • Negotiated acquisition of land and easements for Hackberry Elevated Tower and Hackberry Water Line Projects 37 YIp11It!. liptil F.TpW N FY 2016 Adopted Budget 10-406 City Manager's Office FY 16 Objectives • Manage the implementation of the FY 2015-16 Budget and Strategic Goals • Complete Community Branding Project • Develop an organizational mission statement that supports the community brand & vision • Develop financing plan and construction schedule for the new City Hall project • Continue partnership with TxDOT on the reconstruction of FM 455 and the development of construction plans for the reconstruction of US 75 from Throckmorton Creek to the Collin County line • Work with governmental partners to identify potential funding sources for improvement to the State Highway 5 corridor • Negotiate acquisition of easements for the Foster Crossing water line project • Negotiate acquisition of easements for the Throckmorton Wastewater Interceptor Project • Continue to promote fiscally responsible practices in the management of city operations PAYROLL SUPPLIES MAINT SERVICES CAP EX TOTAL ACTUAL $ 259,146 $0 $0 $3,325 $300 $262,770 ._are Summary BUDGET ESTIMATE $269,921 $280,383 $0 $0 $0 $0 $8,725 $8,305 $1,300 $1,300 $279,946 $289,988 ADOPTED $303,632 $1,150 $0 $10,660 $0 $315,442 % CHANGE 12.49% #DIV/0! #DIV/0! 22.18% -100.00% 12.68% 38 FY 2016 Adopted Budget 10-406 City Manager's Office L Proposed Budget Breakdown FY 16 ADOPTED CITY MANAGER'S OFFICE BUDGET Si1PPIIFS SERVICES PAYROLL 96% New and Noteworthy for FY 16 Increased payroll costs • The City's costs for insurance benefits increased • Final phase of market based wage adjustments Increased services for public information officer training for Assistant to City Manager City Manager's Office FTE Schedule Position FY 12 FY 13 FY 14 FY 15 FY 16 City Manager 1 1 1 1 1 EDC/CDC Director 0.5 0.5 0.5 0.5 0.5 Assistant to the City Manager 0.5 0.5 0.5 0.5 0.5 Receptionist 0.5 0.5 0.5 0.5 0.5 Total 2.5 2.5 2.5 2.5 2.5 39 �i FY 2016 Adopted Budget am. Y�[ll �ltF1i3}E Y:T[YW'!ti 10-409 City Secretary Purpose/Description The City Secretary provides administrative support to the City Council and City Manager, attends all the City Council meetings and keeps minutes of the proceedings, works with the City Manager to prepare agendas and support materials for City Council meetings, responds to requests for public information; coordinates City elec- tions, oversees the Records Management Program for the City, and serves as custodian of all official City records FY 15 Accomplishments • Coordinated the May 2015 General Election • Worked with staff and City Attorney's Office on Public Information Requests • Provided support to the City Council by attending all public meetings and hearings, and keeping minutes of the proceedings of all public meetings and hearings • Provided support to City Staff by making sure official City documents are available to staff FY 16 Objectives • Coordinate the May 2016 General Election • Work with staff and City Attorney's Office on Public Information Requests • Provide support to the City Council by attending all public meetings and hearings, and keeping minutes of the proceedings of all public meetings and hearings • Provide support to City Staff by making sure official City documents are available to staff • Develop and implement program to scan and digitize municipal records PAYROLL SUPPLIES SERVICES CAP EX TOTAL ACTUAL $96,758 $0 $12, 544 $1, 861 $111,163 Expenditure Summary BUDGET ESTIMATE $98,616 $99,712 $0 $0 $16, 290 $15, 830 $0 $0 $114,906 $115,542 ADOPTED $100,539 $700 $16,675 $0 $117,914 % CHANGE 1.95% #DIV/0! 2.36% #DIV/0! 2.62% 40 41 FY 2016 Adopted Budget 10-409 City Secretary Y:[ll Ali: i1i155 F. lSlIV'N sL Proposed Budget Breakdown FY 16 ADOPTED CITY SECRETARY BUDGET SERVICES 14% PAYROLL 85% New and Noteworthy for FY 16 Increased payroll costs The City's costs for insurance benefits increased City Secretary FTE Schedule Position FY 12 FY 13 FY 14 FY 15 FY 16 City Secretary 1 1 1 1 1 Total 1 1 1 1 1 41 YiQT]I{;�aiOMC'n3WH Purpose/Description FY 2016 Adopted Budget 10-411 City Attorney The City Attorney provides professional legal assistance and advice to the City Council, City Manager, and each department. The City Attorney serves as the legal advisor to the City Council and City Manager, represents the City in litigation and proceedings as directed by the City Council and City Manager, reviews and provides legal opinions as requested, serves as the prosecutor in municipal court. The City Attorney is appointed by the City Council and is a contracted service. The City Attorney does not include any personnel costs. r J New and Noteworthy for FY 16 d This expenditures in this department have been folded into the administration department (10-400) for FY 16 as part of the administrative costs. SERVICES TOTAL Expenditure Summa -Mi Z. ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE $98,610 $95,500 $95,500 $0-100.00% $98,610 $95,500 $95,500 $0-100.00% 42 am. Y�[ll"Fill{]lf ]•. !{114L Purpose/Description FY 2016 Adopted Budget 10-414 Finance The Finance Department maintains the financial integrity of the city and provides comprehensive and integrated financial management of the day-to-day operations of the city. The Finance Department keeps and maintains fi- nancial records, provides accurate financial reporting, invests public funds in compliance with applicable laws, ordinances, and policies, oversees purchasing, accounts payable, and general human resource administration; and manages the City's information technology support operations FY 15 Accomplishments Maintained Anna's Platinum Leadership Circle award for financial transparency Maintained the City's A and A-1 bond ratings Managed the issuance of the 2014 Refunding Bonds to achieve savings on long term debt Managed the timely development of the FY 2014 audit report and the FY 2016 budget Received the GFOA Distinguished Budget Presentation Award • Bid out employee health benefits to find poten- tial cost savings • Recruited and placed Accountant II position • Revised staff assignments to create efficiency in financial and human resources operations • Finance Director selected to participate in new and emerging leaders in municipal finance pro- gram • Installed new battery backup for City Servers FY 16 Objectives Maintain Anna's Platinum Leadership Circle award for financial transparency Receive the GFOA Distinguished Budget Presen- tation Award Improve internal controls Improve efficiency in financial reporting Develop a financial procedures manual Begin work on presentation of Annual CAFR PAYROLL SUPPLIES SERVICES CAP EX TOTAL ACTUAL $224,110 $0 $30,518 $1,781 $256,409 • Strengthen Human Resource operations • Complete the capital asset inventory • Develop financing plan and schedule to fund City Hall and Fire Station projects • Oversee and establish HR management program • Improve purchasing program • Improve online presence Expenditure Summary BUDGET ESTIMATE ADOPTED % CHANGE $321,945 $285,992 $347,850 8.05% $0 $0 $3,650 #DIV/0! $34,508 $48,554 $50,949 47.64% $2,900 $2,900 $0 -100% $359,353 $337,446 $402,449 11.99% 43 FY 2016 Adopted Budget 10-414 Finance Proposed Budget Breakdown FY 16 ADOPTED FINANCE BUDGET SERVICES c4IDDI MC 13% rATKULL 86% New and Noteworthy for FY 16 Increased payroll costs • The City's costs for insurance benefits increased • Final phase of market based wage adjustments HR Management Program • Online HR management program to support performance evaluations and job applications • Job applications will be done online and reduce paperwork • Will create efficiencies in HR admin and create capacity in HR and Finance IT Supplies and postage now included in supplies budget, costs were previously budgeted in other depart- ments or other categories. Finance FTE Schedule Description FY 12 FY 13 FY 14 FY 15 FY 16 Finance Director 1 1 1 1 1 Finance/Budget Analyst 0 0 0 1 1 Accountant II 0 0 0 1 1 HR Administrator 0 0 0 1 1 Finance/HR Supervisor 1 1 1 0 0 HR Coordinator/Finance Assistant 0 0 1 0 0 Payroll/Accounting Assistant 1 1 0 0 0 Total 3 3 3 4 4 44 �i FY 2016 Adopted Budget Y�[71 �R: i1d11F F�Shcd4'.'�i 10-420 Development Purpose/Description The Development Department promotes sustainable development consistent with the City's Strategic Vision through fair, consistent and ethical enforcement of the City's land development regulations The Development De- partment ensures that new development occurring within the City and its extra -territorial jurisdiction is con- sistent and in compliance with the City's comprehensive plan, zoning ordinance, subdivision ordinance, building codes, and other development regulations. FY 15 Accomplishments • Oversaw the construction and inspection of an anticipated 200 single family homes • Updated impact fee ordinance with land use assumptions • Completion and adoption of the Anna Downtown Development Plan • Managed the regulatory review of several residential development projects including; Anna Crossing Phase I, Camden Parc, Lakeview, Oak Hollow 6A and Avery Point • Established roadway impact fees • Provided continuing support for Planning & Zoning, Parks Board, and City Council • Developed concept plan for community dog park Amwl AV FY 16 Objectives • Investigate downtown development/redevelopment incentives program study • Develop a Downtown Signage Plan • Develop a small area plan for the U.S. 75 commercial corridor • Initiate update to the City's Comprehensive Plan • Draft development regulations for the downtown district consistent with the updated master plan • Develop concept/strategy for a local farmers market • Develop schematic design for 4th Street streetscape improvements. • Work with governmental partners to identify potential funding sources for improvements to 4th Street PAYROLL SUPPLIES MAINT SERVICES CAP EX TOTAL LIL Expenditure Summary i ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE $265,624 $307,556 $293,390 $318,091 3.43% $3,214 $6,150 $4,600 $5,800 -5.69% $426 $3,800 $4,900 $2,800 -26.32% $288,398 $183,269 $180,668 $183,878 0.33% $14,134 $150 $0 $0 -100.00% $571,797 $500,925 $483,558 $510,569 1.93% 45 FY 2016 Adopted Budget L 10-420 Development Proposed Budget Breakdown Iva t-17,Ibit] 21aP11P TJa110]]►■iIA01a:111DIe1AI SER' 3 PAYROLL AAINT Nil 62% 1 °�o S 1% New and Noteworthy for FY 16 Increased payroll costs • The City's costs for insurance benefits increased • Final phase of market based wage adjustments Maintenance decreases now that planning functions have been relocated to new facility Planning FTE Schedule Description FY 12 FY 13 FY 14 FY 15 FY 16 Director of Planning 1 1 1 1 1 Planner II 0 0 1 1 1 Planner I 1 1 1 1 1 Code Enforcement Officer 1 1 0 0 0 Administrative Assistance 0 0 1 1 1 Total 3 3 4 4 4 46 �i FY 2016 Adopted Budget 10-525 Animal Control Purpose/Description Animal control and animal shelter services are currently provided through a contract with Collin County. Services include responding to citizen complaints regarding animal control issues. The contract also allows animals cap- tured within the City of Anna to be housed at the Collin County animal shelter. Animal Control does not have any personnel related costs as it is a contracted service. The contract does not provide pro -active or routine patrols and enforcement of animal control ordinances. FY 16 ADOPTED ANIMAL CONTROL BUDGET ,A% No changes expected from FY 16 Expenditure Summary ACTUAL BUDGET ESTIMATE SERVICES $56,163 TOTAL $56,163 $57,263 $56,236 $57,263 $56,236 47 IV ADOPTED $56,799 $56,799 % CHANGE -0.81% -0.81% FY 2016 Adopted Budget 10-543 Fire L Purpose/Description The Fire Department provides professional fire suppression, rescue, fire prevention, fire education, and emergency medical response services to the community ofAnna. FY 15 Accomplishments • Continued the "Operation Santa" community outreach program • Completed the fire hydrant testing , mapping & painting project • Conducted an emergency management table top exercise with City Staff • Coordinated with TEEX to teach ten classes over firefighter safety, firefighting tactics & strategies, etc. at our facility. • Attended the National Fire Academy and completed a class in Strategic Organizational Issues in Fire & E.M. S. • Increase staffing during daytime hours to improve service quality and increase fire fighter safety • Received Assistance for Firefighters Grant for exhaust removal system FY 16 Objectives • Upgrade and increase fire prevention activities and programs • Establish a Department Honor Guard Program • Continue to research and apply for available grants and tuition funding through various agencies • Establish a Jr. Firefighter program for Anna High School students interested in the fire service • Continue to provide Emergency Management training to City staff • Continue to assist Public Works with fire hydrant mapping & testing • Complete grant funded exhaust removal system Expenditure Summary -W W ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE PAYROLL $427,317 $534,840 $512,295 $557,289 4.20% SUPPLIES $85, 276 $92,310 $66,470 $95,470 3.42% MAINT $36,478 $35,700 $26,000 $35,100 -1.68% SERVICES $49,779 $71,657 $55,884 $68,849 -3.92% CAP EX $50,868 $600 $60,450 $18,859 3043.17% TOTAL $649,719 $735,107 $721,099 $775,567 5.50% 48 LFY 2016 Adopted Budget 10-543 Fire Proposed Budget Breakdown FY 16 ADOPTED FIRE BUDGET SERVICES MAINT 9% SUPPLIE 12% 'ROLL 4% New and Noteworthy for FY 16 Increased payroll costs • The City's costs for insurance benefits increased • Final phase of market based wage adjustments Increased supplies to support additional rope and other rescue supplies. Fire FTE Schedule Description FY 12 FY 13 FY 14 FY 15 FY 16 Fire Chief 1 1 1 1 1 Fire Marshal 1 1 1 1 1 Fire Captain 0 3 3 3 3 Fire Fighter 2 1 1 2 2 Total 4 6 6 7 7 49 FY 2016 Adopted Budget L 10-544 Ambulance Purpose/Description Ambulance service is currently provided by AMR through a contract with Collin County. The Ambulance Depart- ment does not have any personnel costs as it is a contracted service. FY 16 ADOPTED AMBULANCE BUDGET No changes expected from FY 16 IMIWF' RVICES TOTAL ACTUAL SERVICES 100% nditure Summ BUDGET $123,683 $123,683 ESTIMATE $123,683 $123,683 ADOPTED $135,967 $135,967 CHANGE 9.9 9.9 50 am. Y�... i., iiii iS ;r4i"t_ Purpose/Description FY 2016 Adopted Budget 10-550 Police The Police Department strives to preserve order, reduce fear, and protect human life, property, and individual rights through the fair and ethical enforcement of laws adopted under the under the framework of the U.S. and Texas Constitutions and the Anna City Charter. FY 15 Accomplishments • Responded to over 6,000 calls for service and thru May 2015 • Hosted annual National Night Out event • Hosted annual Child ID Fair • Participate in the National Click -it or ticket cam- paign • Participated in book reading events at both Rat- tan and Bryant elementary • Conducted a seatbelt safety demonstration at the Early Childhood Learning Center • Conducted bully prevention classes at JKB Ele- mentary & ESR. Established new anti -bullying campaign "I am Anna, Not a Bully". • Provided logistical support to community events including the Anna Glow Fest, Christmas Parade, and Centennial Celebration • Established a new neighborhood crime watch program in Creekside & The Falls. • Enhanced officer accountability with the addi- tion of an additional supervising Sergeant to the department's patrol division.. FY 16 Objectives • Continue to provide 24/7 police protection for the City • Maintain call response time under five minutes • Participate in the National Click -it or ticket cam- paign & Labor Day weekend DWI enforcement campaign. • Continue department support of community fes- tivals and events • Continue to host and participate in public safety events PAYROLL SUPPLIES MAINT SERVICES CAP EX TOTAL • Pursue the "Recognized Law Enforcement Agen- cy" award from the Texas Police Chiefs Associa- tion Law Enforcement Recognition Program • Host annual National Night Out event • Host annual Child ID Fair • Conduct bully prevention classes at local schools • Continue to establish new neighborhood crime watch programs Expenditure Summary F42 ACTUAL BUDGET ESTIMATE $1,000,290 $1,169,761 $1,137,587 $75,344 $94,842 $63,200 $19,400 $14,300 $10,000 $104,531 $122,191 $112,600 $86,671 $40,682 $40,682 $1,286,236 $1,441,776 $1,364,069 51 ADOPTED $1,264,623 $98,984 $11,000 $134,103 $42,140 $1,550,850 % CHANGE 8.11% 4.37% -23.08% 9.75% 3.58% 7.57% Proposed Budget Breakdown FY 16 ADOPTED POLICE BUDGET SERVICES CAP Ex MAINT--�,- 9% 3° 7_. SUPPLIES 6% FY 2016 Adopted Budget 10-550 Police 81% New and Noteworthy for FY 16 Increased payroll costs • The City's costs for insurance benefits increased • Final phase of market based wage adjustments • Funds a School Resource Officer (SRO) through partnership with the Anna ISD Increased capital expenditures • Supports outfitting of new SRO • Includes purchase of replacement video server Police FTE Schedule Description FY 12 FY 13 FY 14 FY 15 FY 16 Police Chief 1 1 1 1 1 Police Lieutenant 0 0 0 1 1 Police Sergeant 1 1 1 2 2 Police Officer 9 10 10 9 9 School Resource Officer 0 0 0 0 1 Crime Scene Technician 1 1 1 0 0 Records Administrator 1 1 1 1 1 Total 13 14 14 14 15 M FY 2016 Adopted Budget 10-552 Municipal Court L Purpose/Description The Municipal Court provides a fair, impartial and unbiased court system for persons charged with criminal of- fenses The Anna Municipal Court has jurisdiction over all fine -only offenses that have been committed within the Anna city limits including Class C misdemeanors, traffic offenses and violations of City ordinances FY 15 Accomplishment • Joined Texas Court Clerks Association • Worked with PD to improve warrant collections • Attended Texas Municipal Courts Education Center • Maintain Level II Court Certification • Installed Court Program on UB Clerks systems • Finalize contract with new collections provider FY 16 Objectives Develop cross training plan for greater redundancy between Court and Utility Billing operations Continue work towards Level III Court Certification Implement and plan to participate in the Texas Warrant Round -up Continue to work with Police Department to collect on warrants PAYROLL SUPPLIES SERVICES TOTAL �J $56, 276 $2,354 $56,584 $115,214 Expenditure Summary BUDGET ESTIMATE ADOPTED % CHANGE $63,344 $61,980 $65,634 3.62% $4,850 $4,100 $5,450 12.37% $48,275 $44,005 $49,040 1.58% $116,469 $110,085 $120,124 3.14% 53 FY 2016 Adopted Budget L 10-552 Municipal Court Proposed Budget Breakdown SERVICE 41% FY 16 ADOPTED COURT BUDGET PAYROLL 55% SUPPLIES 4% New and Noteworthy for FY 16 Increased payroll costs • The City's costs for insurance benefits increased • Final phase of market based wage adjustments Service costs increase to cover judge and prosecutors time as a contracted service Supplies costs increase to account for computer replacement Description Municipal Court FTE Schedule FY 12 FY 13 FY 14 FY 15 FY 16 Municipal Court Clerk Court Administrator 1 0 1 0 1 0 0 1 0 1 Total 1 1 1 1 1 54 rani �a nose t;�mww Purpose/Description FY 2016 Adopted Budget 10-555 Parks The Parks department oversees the development and maintenance of the City's parks and recreation facilities. The department also supports community organizations that provide sports and recreation opportunities for the youth of our community. FY 15 Accomplishments • Constructed new Gazebo at Natural Springs Parks • Repaired automated controls at Slayter Creek Splash Pad • Installed two new scoreboards at Slayter Creek Park • Acquired land for the expansion of Slayter Creek Trail west of Bronco Mfg. and north of the Outer Loop Road owtilk( - FY 16 Objectives • Substantially improve the maintenance and operation of existing parks and facilities in order to create an excellent "customer experience" • Work with Bloomfield Homes to construct phase 1 of Lakeview Park • Develop options for parks office and restroom at Natural Springs Park • Continuing to improving the residents of Anna experiences in regard to Parks and Open Spaces ■PW ACTUAL Expenditure Summary W BUDGET ESTIMATE ADOPTED % CHANGE PAYROLL $78,350 $114,484 $114,820 $218,860 91.17% SUPPLIES $20,062 $24,150 $24,150 $43,150 78.67% MAINT $20,398 $25,000 $29,000 $32,500 30.00% SERVICES $75,153 $66,355 $62,919 $40,765 -38.57% CAP EX $39,230 $0 $0 $0 #DIV/0! TOTAL $233,192 $229,989 $230,889 $335,275 45.78% 55 SUPPLIES 13% Proposed Budget Breakdown FY 16 ADOPTED PARK BUDGET SERVICES 12% ,A^ qt New and Noteworthy for FY 16 FY 2016 Adopted Budget 10-555 Parks PAYROLL 65°a Increased payroll costs • The City's costs for insurance benefits increased • Final phase of market based wage adjustments • Funds Park Superintendent position • Provides for temp labor with costs transfer from services category Includes supplies and equipment for Park Superintendent Increases chemical purchases for treatment of fields and turf through Anna's park system Increased supply cost Parks FTE Schedule Description FY 12 FY 13 FY 14 FY 15 FY 16 Park Superintendent 1 1 1 0 1 Crew Leader 0 0 0 1 1 Maintenance Laborer 0 0 1 1 1 Seasonal Laborer 0 0 1 1 1 Total 1 1 3 3 4 56 L FY 2016 Adopted Budget 10-580 Street Purpose/Description The Street Department is responsible for the maintenance of the City's roadway and storm water drainage sys- tems Services funded by this department include: cleaning streets, clearing and mowing public rights of way, rou- tine maintenance and repair of street pavement and sidewalks, installation and maintenance of street signs, and maintenance of the storm drainage system. State highways and FM roads are maintained by the Texas Depart- ment of Transportation. FY 15 Accomplishments • Implemented a specific departmental focus on maintenance of streets and rights -of -way by assigning three existing employees to proactively focus on the maintenance of streets • Joined the NCTCOG Public Works Emergency Response Team • Completed preliminary street audit • Completed street sign audit for TMUTCD compliance • Established cooperative relationships with key external organizations • Improved vehicle and equipment inventory • Constructed Ferguson Parkway expansion project (still under construction) • Completed Ferguson Parkway alignment study for future expansion between Taylor Blvd. and the Out- er Loop Road FY 16 Objectives • Input street audit data into MicroPaver auditing software. • Purchase asphalt hotbox for street repairs and milling rejuvenation • Increase staff training • Continue street sign replacement for TMUTCD compliance • Develop an Adopt -a -Street program • Implement watershed protection program • Update storm drainage design and erosion control manual • Assign staff to attend Certified Floodplain Manager training • Pave East Fork Circle • Develop engineering and construction plans for improvements to Hackberry Lane between SH 5 and Slay 4f ter Creek Expenditure Summary ACTUAL BUDGET ESTIMATE PAYROLL $0 $0 $0 SUPPLIES $675 $1,200 $4,200 MAINT $46,215 $46,800 $54,000 SERVICES $112,719 $134,221 $136,612 CAP EX $62,622 $110,000 $60,000 TOTAL $222,231 $292,221 $254,812 57 ADOPTED $161,872 $40, 910 $57,300 $231,950 $15 7,181 $649,213 % CHANGE N/A 3,309.17% 22.44% 72.81% 42.89% 122.17% FY 2016 Adopted Budget 10-580 Street Proposed Budget Breakdown FY 16 ADOPTED STREET BUDGET CAP EX PAvRnl i SUPPLIES 6% kINT OF�l New and Noteworthy for FY 16 Increased payroll costs • The City's costs for insurance benefits increased • Final phase of market based wage adjustments • Addition of 3 positions transferred from Utility Fund Increased supplies costs for road maintenance supplies street sign program Increased services for East Hackberry engineering Increased capital expenditures • Purchase of air compressor and asphalt hotbox • Increased annual street rehab by $20,000 Street FTE Schedule FY 12 FY 13 FY 14 FY 15 FY 16 Street Supervisor 0 Maintenance Worker 1 0 0 0 0 0 0 0 1 2 Total 0 0 0 0 3 58 �i FY 2016 Adopted Budget nacnti�ioMrcTvws Restricted Revenue Trusts Incorporated within the General Fund are sources of special revenue, restricted for a certain purposes. These restricted revenue trusts are a Governmental Fund type. Monies in the restricted revenue trusts are restricted based upon the circumstances of their receipt. Restrictions are placed on the use of these trusts funds for a number of reasons including, but not limited to laws, ordinances, grant contracts, donations, etc. The City manages the following restricted revenue trusts: • Park Trust • Eastside Park Trust • Fire Trust • Court Technology Fund • Court Building Security Fund • Court Bonds in Trust Child Safety Fund Street Developer and Impact Fees Cable Public Education Government (PEG) Fees Police Seizure Funds and LEOSE Funds Sweetwater Crossing Funds Water & Sewer Impact Fees Each trust will be explained in detail; however, PEG, Court Bonds in Trust, Police Seizure Funds, and Sweetwa- ter Crossing Funds are not routinely budgeted. The City does not rely upon them for regular operating or capi- tal needs. PEG Fees are a portion of fees assessed by a cable franchise provider. These fees are restricted by state code to support a municipality's public access cable channel. There are no time restrictions to spend these funds and will be held in reserve until they can support an eligible expenditure. Court Bonds in Trust and bond payments by court defendants held until authorized for release or forfeited to the City. The Police Seizure Funds are revenue generated from property seized in connection with illegal activity. These funds can only be used to support the Police Department Funds are held in reserve until a sufficient balance can support a specific need in the Police Department and council has approved the expenditure. Sweetwater Crossing Funds are moneys held in trust until repaid to a developer in accordance with a court settlement Details on the other trusts will be explained below. Park Trust The Park Trust is funded by park development fees as stipulated in either developer agreements or the subdi- vision ordinance and are used to fund the City's master parks plan through development, improvement, or maintenance of the City's parks. Park Trust revenues and expenditures are illustrated below. Estimated and proposed revenues are the result of building activity in the City. In FY 16 the proposed expenditures in the parks trust include improvements to Natural Springs Park that are yet to be determined. ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE DEVELOPER FEES $166,500 $75,250 $47,400 $104,500 38.87% INTEREST REVENUE $1,093 $0 $1,200 $0 #DIV/0! TOTAL REVENUES $167,593 $75,250 $48,600 $104,500 38.87% 111MM lip ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE LAND & IMPROVEMENTS $268,103 $0 $0 $0 #DIV/0! OTHER CAPITAL EXPENDITURES $70,587 $125,900 $72,970 $150,000 19.14% TOTAL EXPENSE $338,690 $125,900 $72,970 $150,000 19.14% 59 �i FY 2016 Adopted Budget roe �ax� nn4ss�nawN Restricted Revenue Trusts Eastside Park Trust The Eastside Park Trust was created from a private donation for improvements to the Eastside Park, other- wise known as Geer Park. The trust has a just over $12,600 in fund balance; no additional resources are dedi- cated to grow the fund balance at this time. The available funds will be held in reserve until a project is select- ed for funding that will improve meet the restrictions of the donation. All interest earnings from the donation are held in the same trust for the same purpose. Fire Trust The Fire Trust accounts for voluntary fees negotiated with developers for support of the Anna Fire Depart- ment Additionally, grant projects typically funded through the Texas Forest Service, the Federal Emergency Management Agency (FEMA), and other grantors are accounted for in the Fire Trust. No funds were budgeted in FY 15 out of the Fire Trust; however, the Fire Department sold Rescue 901 in FY 15 with proceeds being a transferred to the Fire Trust to support a brush truck remount project in FY 16. The brush truck remount pro- ject includes purchasing a new 1 ton cab and chassis to mount with the existing equipment from Brush 901. The remaining cab and chassis will be mounted with a utility bed to serve as a multi purpose support vehicle Fire Trust revenues and expenditures are illustrated below. You can see that developer fee revenue has dropped in FY 15. The City is working on negotiating future agreements with developers to include Fire Trust payments as evidenced by the proposed revenue increase in FY 16. Developer fees will continue to be re- served for grants and other capital needs that may arise. Toward the end of FY 15, the Fire Department was awarded a FEMA Assistance to Firefighters grant The grant will fund an exhaust removal system for $30,000. The City has a matching requirement of 5% or $1,428, resulting in $28,572 in grant revenue for FY 16. The project will begin in the fall of 2015 and will be completed in FY 16. Should other grant applications be awarded, staff will present those grants to the council in the form of a budget amendment Mf, ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE DEVELOPER FEES $6,500 $2,500 $2,450 $7,000 180.00% SALE OF ASSETS $3,174 $0 $0 $0 #DIV/0! GRANT REVENUE $475 $0 $7,805 $28,572 #DIV/0! TRANSFERS IN $0 $0 $60,450 $0 #DIV/0! INTEREST REVENUE $75 $0 $40 $0 #DIV/0! TOTAL REVENUES $10,224 $2,500 $70,745 $35,572 1,322.88% ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE PROTECTIVE GEAR $0 $0 $0 $0 #DIV/0! MACHINERY & EQUIPMENT $0 $0 $0 $0 #DIV/0! OTHER CAPITAL EXPENDITURES $50,587 $0 $0 $97,500 #DIV/0! TOTAL EXPENSE $50,587 $0 $0 $97,500 #DIV/0! 60 FY 2016 Adopted Budget Restricted Revenue Trusts rani ��a a inaa t:nyw h Municipal Court Technology Fund The Court Technology Fund accounts for a portion of court fines to support the use of technology in the court room. In FY 15 this fund began to support the annual software costs of electronic ticket writers that interface with existing court software. The ticket writers provide an efficient means of transferring citation data be- tween the Court and the Police Department The FY 16 budget includes the use of modest reserves to pur- chase a new ticket writer and continue to support the annual software licensing of the ticket writers. ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE TECHNOLOGY FUND $1,941 $2,250 $2,250 $2,500 11.11% INTEREST REVENUE $11 $0 $10 $0 #DIV/0! TOTAL REVENUES $1,952 $2,250 $2,260 $2,500 11.11% ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE CONTRACT SERVICES $0 $2,050 $1,400 $2,050 0.00% MACHINERY & EQUIPMENT $0 $0 $0 $3,500 #DIV/0! TOTAL EXPENSE $0 $2,050 $1,400 $5,550 170.73% Municipal Court Building Security Fund The Building Security Fund is also funded like the Court Technology Fund by accounting for portion of court fines. This revenue is used to maintain security in the court room and is budgeted for overtime pay to officers acting as a bailiff for the court when necessary. ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE BLDG SECURITY FUND $1,461 $1,700 $1,700 $2,000 17.65% INTEREST REVENUE $60 $0 $20 $0 #DIV/0! TOTAL REVENUES $1,521 $1,700 $1,720 $2,000 17.65% ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE OTHER SERVICES - MISC. $0 $3,000 $3,000 $3,780 67.00% MACHINERY & EQUIPMENT $0 $0 $0 $0 N/A TOTAL EXPENSE $0 $3,000 $3,000 $3,780 67.00% 61 am Y�... i" Flil}E F:T614N FY 2016 Adopted Budget Restricted Revenue Trusts Child Safety Fund The Child Safety Fund accounts for a portion of Collin County court fees that can be used to fund various pro- grams designed to enhance child safety as outlined in State Code. As the City does not operate a school cross- ing guard program the funds will be used on other public safety programs in accordance with State Code. In FY 14 the City began making the annual membership payments to the Children's Advocacy Center of Collin County. This expense will continue as long as Child Safety funds can support it. In FY 15 there was a proposed one-time expenditure for the purchase of additional school zone signs to help keep children safe around local school campuses. The FY 16 budget returns to Child Safety Funds being used for CAC membership only. ,i ACTUAL CHILD SAFETY FUND $10,151 INTEREST REVENUE $35 TOTAL REVENUES $10,186 1 A I ,, BUDGET ESTIMATE ADOPTED % CHANGE $10,000 $10,000 $10,000 0.00% $0 $10 $0 #DIV/0! $10,000 $10,010 $10,000 0.00% ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE CONTRACT SERVICES $5,631 $7,500 $7,500 $7,500 0.00% MACHINERY & EQUIPMENT $465 $9,500 $9,500 $0-100.00% TOTAL EXPENSE $6,096 $17,000 $17,000 $7,500-55.88% Street Capital Improvement Fund The Street Capital Improvement Fund accounts for fees negotiated with developers for the improvements of streets and roadway impact fees that will assessed beginning in FY 16. No expenditures are planned for FY 16; however, in FY 15 a Ferguson Parkway alignment study was completed at a cost of $15,000 with additional study costs being born by private development along Ferguson Parkway. ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE ROAD DEVELOPER FEES $30,000 $57,500 $40,000 $35,000-64.29% ROADWAY IMPACT FEES $0 $0 $0 $132,250 100.00% INTEREST REVENUE $120 $0 $150 $0 #DIV/0! TOTAL REVENUE $30,120 $57,500 $40,150 $167,250 65.62% ACTUAL BUDGET ESTIMATE CONTRACT SERVICES $0 $15,000 $15,000 OTHER CAPITAL EXPENDITURES $28,856 $0 $0 MACHINERY & EQUIPMENT $0 $0 $0 TOTAL EXPENSE $28,856 $15,000 $15,000 62 ADOPTED % CHANGE $0 -100.00% $0 #DIV/0! $0 #DIV/0! $0 -100.00% L FY 2016 Adopted Budget Restricted Revenue Trusts LEOSE Training Funds Law Enforcement Officer Standards and Education (LEOSE) funds are administered by the Texas Comptroller of Public Accounts, Services Division. Funds are determined by a formula allocation and can only be used in accordance with all applicable laws and regulations. All funds received by the City of Anna will only be used for acceptable training programs. It is anticipated the City will receive $1,466 in LEOSE training funds. Police Seizure Funds Police Seizure Funds are funds recognized from the sale of assets forfeited after prosecution resulting from drug interdiction activities performed by the Anna Police Department Funds can only be used in accordance with applicable state and federal laws. Typically the City has used these funds only for capital purchases in the Police Department not to supplement operations. In FY 16 there are available funds to support the purchase of body cameras for the Police Department. The cameras are expected to cost $15,500. Water & Sewer Improvement Funds (Impact and Developer fees) The city maintains accounts for water and sewer impact and developer fees to be used in accordance with ap- plicable laws, regulations, and ordinances. Funds are typically held in reserve for the use of one time expendi- tures and not to supplement operations. As part of the City's long term capital plans, there is a need for a significant sewer line in the Throckmorton Creek Sewer Basin. This sewer line will eliminate the need to a lift station south of the Oak Hollow Develop- ment and will open up additional development along the west side of Highway 75. Costs for the sewer line are estimated at $1.6 million. Funds are available from a combination of sewer impact fees and negotiated developer fees for sewer capital improvements. This project will be funded from Ryland, W&S Improvements Fees, Westfield, West Crossing, Northpointe, and the Tara Farms Sewer Improvements Trusts. Additional details on this project will be shown in the capital improvements section of the budget. De- tails on water and sewer impact and developer fees are highlighted in the Utility Fund section of the budget 63 41 FY 2016 Adopted Budget Y'UI Ali: ililil F�lVl4 ti Restricted Restricted Revenue Trust Fund Balance Revenue Trusts As stated above, the use of each restricted revenue trust will be stipulated by a number of restrictions such as laws, ordinances, grants, etc. The table and chart below illustrates the fund balance for each trust at the close of FY 14, the projected fund balance at the close of FY 15, and the fund balance of the close of FY 16 under the proposed budget As illustrated in the table, no funds will have negative fund balance through the end of FY 16. Staff monitors each trust to maintain compliance with any and all restrictions and also monitors to ensure expenditures do not exceed available resources. Fund Balance at Year End 2014 Audited 2015 Projected 2016 ADOPTED Park Trust $275,179 $250,809 $205,309 Eastside Park (Geer) Trust $12,576 $12,645 $12,716 Fire Trust $3,840 $82,785 $20,857 Police Seizure Fund $1,333 $17,300 $1,800 Street Improvements $23,319 $48,469 $215,719 Public Education Govt. Fees $32,593 $39,993 $47,493 Child Safety Programs $10,623 $3,633 $6,133 Court Security $13,250 $11,970 $10,190 Court Bonds held in Trust $6,387 $6,600 $6,500 Court Technology $3,610 $4,470 $1,420 Sweetwater Crossing Funds in Trust $9,916 $500 $500 LEOSE $1,375 $2,664 $212 Total Restricted $394,001 FY 16 PROJECTED ENDING FUND BALANCE Street Improvements 41% _ Police Seizure Furl, 0% Fire Trust 4% Eastside Park (Geer) Trust 3% $481,838 Public Education Child Safety Govt. Fees Programs' 9% 1 n/ Park Trust 39% Court Security 2% _Court Bonds held in Trust 1% Sweetwater Crossing Funds in Trust 0% Court Technology 0% LEOSE 0% $528,849 64 �i FY 2016 Adopted Budget am Y�[l!i!t FIi11F Fir.' N Debt Service Fund Revenue The Debt Service Fund is a special revenue fund used to account for a portion of the ad valorem property tax revenue exclusively reserved for principal and interest payments on debt issued for General Fund Purposes. Unlike Enterprise Funds, which are intended to operate like a business enterprise, the General Fund's intent is to focus on the flow of current financial resources. Debt accounted for in the Debt Service Fund FY 16 ADOPTED DEBT SERVICE REVENUE includes bonded debt and notes supported by taxes. Bonded debt includes general obliga- tion bonds, certificates of obligations and combination tax and revenue certificates of obligation. Revenues generated from the City's Interest and Sinking (I&S) portion of the tax rate are deposited into the Debt Service Fund and are dedicated to pay the principal and interest of outstanding debt secured by property taxes. Pruperty Tax Revenue 100 % All debt issued for general government pur- poses is accounted for in the Debt Service Fund. However, from time to time, the City has also issued combina- tion tax and revenue certificates of obligation to support water and sewer infrastructure projects. These bonds are accounted for in the Utility Fund. Under these Bond Covenants, there remains a tax pledge to sup- port the debt if surplus revenues from the water and sewer operations are not sufficient to make the debt pay- ments. There are three certificates of obligation is- FY 16 OUTSTANDING TAX SECURED DEBT sued in 2009, 2012, and 2014 and a general obliga- General Fund tion bond issued in 1976 that all have a tax pledge Related even though the debt was issued for water and sewer ter and r Relate 77% improvements. Of the outstanding Debt Service Obli- gations for FY 16, 77% is related to tax secured debt issued for water and sewer projects. The total debt service on tax secured debt for FY 16 is $1,017,769. While the I&S revenue is only 649,228, the remaining $367,118 will be generated from water and sewer revenues. Debt Service Revenue Detail qqP '' � ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE Property Tax Revenue $392,482 $527,104 $524,573 $649,228 23.17% Other Sources $315 $0 $7,784 $0 N/A Total $392,798 $527,104 $532,357 $649,228 23.17% 65 � FY 2016 Adopted Budget L MUETWIWKETvws Debt Service Fund Obligations The City of Anna currently holds just over $16.3 million in outstanding tax supported debt. $12.5 million of that amount was issued for water and sewer infrastructure projects and can be payable from water and sewer revenues; however, to obtain more favorable financing terms, the debt has a tax pledge. The balance of tax supported debt, just under $3.8 million, was issued for general fund purposes. In April of 2015, the City's gen- eral obligation debt rating was reaffirmed at Al by Moody's, citing "strong financial performance with large reserves. The debt service obligations since FY 14 are detailed below; however, FY 15 and FY 16 in- cludes expenditures for Utility Fund Debt that has a tax pledge. The transfer to the Utility Fund to support debt service on tax pledged water and sewer debt accounts for the in- crease in Debt Service Fund expenditures. The transfer to support tax pledge debt will be used solely to support debt service on combi- nation tax and revenue certificates (Bonds) issued for water and sewer infrastructure and accounted for in the Utility Fund. FY 16 ADOPTED DEBT SERVICE BUDGET XFER FOR TAX PLEDGED D 34% THER SVC: 1% INTEREST 18% PRINCIPAL 47% Of particular note is an overall decline in interest expense in FY 16. The City realized savings from a strategic refunding that occurred in FY 15, the refundings occurred for cost savings and strategic purposes. The results include savings in interest costs and more modest increases in principal. Details of the debt service obligations are below: 40% ** - '? Debt Service Expenditure Details I ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE Principal $270,125 $273,000 $317,000 $307,000 12.45% Interest $175,773 $166,552 $122,017 $118,788 -28.68% Other Services $1,887 $2,750 $4,238 $4,250 54.55% Xfer for Tax $0 $84,802 $83,849 $219,228 128.47% Pledged Debt Total $447,784 $527,104 $527,104 $649,228 23.17% 66 am rGETWITOKETOws FY 2016 Adopted Budget Debt Service Fund Obligations Debt Management Plan The City has worked closely with our financial advisors, First Southwest, to develop a sound debt management plan. Looking to the future, the City anticipates a spike in our debt service in 2018 and 2019. Left un- addressed, this could lead to a spike in I&S tax rates as well. The table below illustrates the total annual debt service for tax pledged debt supported by the I&S tax rate and water & sewer revenues through FY 2029. In order to keep the Debt Service tax rate stable, the City of Anna and First Southwest, our financial advisor, developed a series of planned refundings of existing debt through 2026. This plan is based upon very con- servative assumptions in growth of the property tax base and interest rates. Additionally, the planned refund- ings are scheduled to coincide with interest rate resets and, where possible, refunding bonds that are callable and advance refundable. In this way the plan will minimize the present value cost to the city. The next refund- ing and restructuring of debt is scheduled for 2017. Outstanding Tax Pledged Debt Schedule YEAR ENDING PRINCIPAL INTEREST TOTAL DEBT SERVICE % CHANGE 9/30/2016 $514,000 $503,769 $1,017,769 0.90% 9/30/2017 $482,000 , $533,989 $1,015,989 -0.17% 9/30/2018 $445,000 $686,539 $1,131,539 11.37% 9/30/2019 $705,000 $787,422 $1,492,422 31.89% 9/30/2020 $1,040,000 $734,215 $1,774,215 18.88% 9/30/2021 $956,000 $664,549 $1,620,549 -8.66% 9/30/2022 $1,001,000 $600,426 $1,601,426 -1.18% 9/30/2023 $1,026,000 $531,371 $1,557,371 -2.75% 9/30/2024 $1,112,000 $456,595 $1,568,595 0.72% 9/30/2025 $1,179,000 $375,426 $1,554,426 -0.90% 9/30/2026 $1,406,000 $285,201 $1,691,201 8.80% 9/30/2027 $940,000 $210,625 $1,150,625 -31.96% 9/30/2028 $830,000 $168,275 $998,275 -13.24% 9/30/2029 $855,000 $135,613 $990,613 -36.39% 9/30/2030 $815,000 $106,801 $921,801 -41.23% 9/30/2031 $840,000 $81,830 $921,830 -40.70% 9/30/2032 $870,000 $55,999 $925,999 -45.25% 9/30/2033 $905,000 $29,183 $934,183 -18.81% 9/30/2034 $425,000 $7,756 $432,756 -56.65% TOTAL $16,346,000 $6,955,584 $23,301,584 67 � FY 2016 Adopted Budget L Debt Service Fund Obligations The following chart illustrates the outstanding general fund related debt through FY 2029. The amounts in- cluded here represent a just the portion of all tax secured debt that was issued for general fund purposes. The amounts reflected do not include any projected savings from planned refundings. Outstanding General Fund Related Debt Schedule YEAR ENDING PRINCIPAL INTEREST TOTAL DEBT SERVICE % CHANGE 9/30/2016 $307,000 $118,788 $425,788 -3.01% 9/30/2017 $267,000 $152,618 $419,618 -1.45% 9/30/2018 $238,000 $217,698 $455,698 8.60% 9/30/2019 $275,000 $233,472 $508,472 11.58% 9/30/2020 $285,000 $213,397 $498,397 -1.98% 9/30/2021 $299,000 $193,573 $492,573 -1.17% 9/30/2022 $321,000 $173,139 $494,139 0.32% 9/30/2023 $327,000 $150,734 $477,734 -3.32% 9/30/2024 $358,000 $125,642 $483,642 1.24% 9/30/2025 $369,000 $97,586 $466,586 -3.53% 9/30/2026 $399,000 $66,688 $465,688 -0.19% 9/30/2027 $205,000 $34,875 $239,875 -48.49% 9/30/2028 $65,000 $14,625 $79,625 -66.81% 9/30/2029 $65,000 $4,875 $69,875 -12.24% TOTAL $3, 780,000 $1, 797,709 $5,577, 709 Debt Limits The City does not currently have any debt limit in terms of a dollar amount However, municipal debt limits in Texas are established by state code. All taxable property within the City is subject to the assessment, levy and collection by the City of a continuing, direct annual ad valorem tax sufficient to provide for the payment of principal of and interest on all ad valorem tax debt within the limits prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2.50 per $100 Taxable Assessed Valuation for all City purposes. Administratively, the Attorney General of the State of Texas will permit allocation of $1.50 of the $2.50 maximum tax rate for all general obligation debt service, as calcu- lated at the time of issuance. The proposed budget has an ad valorem tax rate of $0.639 per $100 Taxable Assessed Value. Of that amount, $0.106659 is dedicated to I&S, or Debt Service. 68 FY 2016 Adopted Budget Y$llif3:f1{]lf Y: !{11YN Debt Service Fund Obligations The following are planned steps to manage the City's I&S Fund tax rate: 1. The City has levied an Interest and Sinking Fund tax rate of $0.106659 in Tax Year 2015. 2. The City's tax base is now at $610,146,057 which means the City is not dependent on future refundings and restructurings to manage its I&S tax rate. 3. Assuming 0% growth, no debt refundings/restructurings and no new debt, the City could cover all of it's I&S tax -supported obligations through maturity in 2029 at current revenue levels. 4. The City still plans to implement the following refundings if there's economic benefit: a. Refunding of Series 2007 Certificates and Bonds on or before February 15, 2017 to avoid interest rate reset to 15%. NO EXTENTION OF ORIGINAL MATURITY. b. Refunding of Series 2009 Certificates on or before February 15, 2018 to avoid interest rate reset to 15%. NO EXTENTION OF ORIGINAL MATURITY. If completed, the refundings referenced in time number would support capacity for future general fund bond issues for needs that arise as the City continues to grow and develop. All refundings will be carefully analyzed by staff, our financial advisors, and the City Council. The City's debt management plan is a joint effort with our financial advisors. The items presented here have been developed with our advisors and are only for planning purposes. Actual results and actions will be dependent upon the economic conditions at the time refundings are considered. qW 69 FY 2016 Adopted Budget Utility Fund Revenue The Utility Fund is an enterprise fund that accounts for the water, sewer, inspection fees, and solid waste col- lection services that are provided to the City's residents including some customers outside the City. Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private busi- ness. The intent is that the costs of providing goods or services are financed primarily through user charges. The Utility Fund accounts for all costs associat- ed with operating the City's Utility Services; this includes operations, maintenance, billing & col- SOLID lections, administration, financing, and related 1 debt service. The Utility Fund's principle source of revenue is charges to customers for water consumption, wastewater collection, solid waste collection, and fees related to providing consumers with FY 16 ADOPTED UTILITY FUND REVENUE WATER 50% utility services. The FY 16 proposed revenue also includes inspection fees for public infra- structure inspections. Rather than contract for this service, the construction inspector hired in FY 15 is responsible to inspect public infrastructure projects funded through public and/or private development Additionally, the Utility Fund includes a transfer from the Debt Service Fund to support debt service on debts issued for water & sewer infrastructure that also includes a tax pledge. The City of Anna utility rates include a base charge and a volumetric rate for water consumption beyond 2,000 gallons per month. The base rate provides stability in our revenue as water sales are more volatile than other revenue sources and change based upon the climate and precipitation. The increase in water revenue for FY 16 is based upon a proposed rate increase of approximately 9%. The primary factors contributing to this rate increase include: 1) water conservation programs leading to a 23.2% decline over the past few years in the average amount of water sold on a per customer basis; 2) a significant increase in the amount budgeted for NTMWD wastewater transport and treatment charges; and 3) an increase in the amount budgeted to purchase treated surface water from NTMWD through a contract with the Greater Texoma Utility Authority (GTUA). The typical residential water customer uses about 5,100 gallons of water in an average month. The proposed rate adjustment would increase the average monthly utility bill (combined water and sewer) by $6.94. Ami ACTUAL WATER $3,033,243 SEWER $2,324,861 SOLID WASTE $0 INSPECTION FEES $0 OTHER SOURCES $0 TOTAL $5,358,104 Utility Fund Revenue Summary BUDGET ESTIMATE $2,961,699 $2,805,027 $1,691,490 $1,784,153 $710,000 $769,000 $0 $0 $153,302 $153,302 $5,516,491 $5,511,482 70 ADOPTED $3,164,871 $2,037,287 $799,500 $125,000 $ 219,190 $6,345,848 % CHANGE 6.86% 20.44% 12.61% #DIV/0! 42.98% 15.03% &M, Y:01411. 11011 F. row N FY 2016 Adopted Budget Utility Fund Revenue In addition to regular operating revenue, the Utility Fund collects impact and developer fees. These fees are collected in connection with new development. Impact fees are charges or assessments imposed by the city on new development in order to recoup the costs of capital improvements or infrastructure and facility expan- sions necessitated by the new development. Chapter 395 of the Texas Local Government Code regulates local government application of impact fee standards and requirements. Prior to the City adopting impact fees, certain developer fees were negotiated with land developers to accom- plish the same purpose as impact fees. The following impact and developer fees are expected to be collected throughout FY 16 in connection with de- velopment in various additions. DEPARTMENT FY 20156PROJECTED REVENUE WEST CROSSING WATER TRUST $60,000 WEST CROSSING SEWER TRUST $60,000 WATER & SEWER IMPACT FEE TRUST $70,000 NORTHPOINTE WATER TRUST $30,000 NORTHPOINTE SEWER TRUST $30,000 ANNA CROSSING WATER $70,000 ANNA CROSSING SEWER $70,000 LAKEVIEW WATER $20,000 LAKEVIEW SEWER $20,000 AVERY POINT WATER $40,000 AVERY POINT SEWER $40,000 CAMDEN PARC WATER $40,000 CAMDEN PARC SEWER $40,000 TOTAL $590,000 The fees collected are restricted based upon developer agreements or the City's Impact Fee Ordinance and are only to be used in accordance with the specified restrictions in the agreement/ordinance. 71 � IF 2016 Adopted Budget L n01,W,TOKE.,OWN Utility Fund Expenditures The Utility Fund accounts for all the costs associated with providing and maintaining utility services. These services are provided by the Admin (new for FY 16), Water, Sewer, Solid Waste, and Utility Billing depart- ments. Departmental summaries are provided with expenditures categorized by type. These types are payroll, supplies, maintenance, capital expendi- FY 16 ADOPTED UTILITY FUND BUDGET tures and transfers to the capital project UTILITY BILLING �ADMINId-' . fund to support future facility needs. SOLID VVA-z.r` _ 4% �. ON The chart on the right illustrates the per- centage of costs associated with each de- partment. The tables below illustrates a brief history from FY 14 through FY 16. The table includes actual costs from FY 14, budgeted and estimated costs for FY >EWI 15, proposed budget for FY 16, and the 40% percent change from the FY 15 budget. WATER 37% The departmental summaries provide greater detail on increased expenditures; however, the bulk of the in- crease is due to an increase in services for NTMWD sewer fees and GTUA water purchases. Utility Fund Expenditure Summary by Department , ACTUAL BUDGET ESTIMATE ADOPTED ADMINISTRATION $0 $0 $0 $523,120 WATER $3,094,167 $2,970,098 $2,649,299 $2,286,445 SEWER $2,277,795 $1,656,681 $1,946,347 $2,527,002 SOLID WASTE $0 $636,000 $662,000 $715,000 UTILITY BILLING $208,677 $220,588 $220,667 $230,315 TOTAL $5,580,639 $5,483,367 $5,478,313 $6,281,882 The table below illustrates cost centers in the Utility Fund. ly 1 2014 ACTUAL PAYROLL $858,486 SUPPLIES $108,052 MAINT $258,086 SERVICES $2,732,238 CAP EX $1,266,082 XFER OUT $0 TOTAL $5,222,943 Utility Fund Expenditure Summary by Type % CHANGE #DIV/0! -23.02% 52.53% 12.42% 4.41% 14.56% BUDGET ESTIMATE ADOPTED % CHANGE $1,052,014 $895,216 $940,136 -10.63% $110,550 $88,950 $105,080 -4.95% $349,100 $300,250 $404,150 15.77% $3,882,353 $4,097,293 $4,696,676 20.97% $5,350 $12,604 $101,650 1,800.00% $84,000 $84,000 $34,190 -59.30% $5,483,367 $5,478,313 $6,281,882 14.56% 72 {1i FY 2016 Adopted Budget &M, Y:[]FFF1, 1I{1}";roWN Purpose/Description 60-400 Ad min The Administrative Department providesgeneral administrative support to all the functions, programs, activities, and projects in Public Works and the Utility Fund. These activities have costs not readily assignable to any specif- ic department. Administration covers a number of shared expenses at Public Works headquarters (utilities, sup- plies, etc.) as well as other Utility Fund expenses (i.e. IT, Legal, and Audit services). FY 15 Accomplishments • Completed department reorganization and filled all vacant positions within the Public Works depart- ment • Initiated in-house construction inspection program • Increased training for maintenance staff • Initiated National Public Works Week observance • Initiated engineering design of the Foster Crossing Water Line Project, the Throckmorton Creek Wastewater Interceptor Project, the Water Disinfection Upgrade Project, and the TxCDBG Sewer Im- provement Project • Completed design of the Hackberry Elevated Storage Tank Project, the Hackberry Waterline Improve- ment Project, and the Wastewater Treatment Plant Influent Lift Station Project • Completed construction of the Slayter Creek Wastewater Interceptor Project, the Wastewater Treat- ment Plant Influent Lift Station Project, and the Well #3 Rehabilitation Project FY 16 Objectives • Complete design and construction of the Construct the Foster Crossing Water Line Project, the Throckmorton Creek Wastewater Interceptor Project, the Water Disinfection Upgrade Project, the Hackberry Elevated Storage Tank Project, the Hackberry Waterline Improvement Project, and the TxCDBG Sewer Improvement Project • Develop plans for the US 75 Utility Relocation Project • Continue to coordinate with TxDOT on the development of engineering and construction plans for the reconstruction of US 75 from Throckmorton Creek to the Collin County Line. • Continue to coordinate with TxDOT on the FM 455 Reconstruction Project • Continue observance of National Public Works Week with community outreach programs Expenditure Summary ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE PAYROLL $0 $0 $0 $320,578 N/A SUPPLIES $0 $0 $0 $20,930 N/A MAINT $0 $0 $0 $2,700 N/A SERVICES $0 $0 $0 $119,722 N/A CAP EX $0 $0 $0 $25,000 N/A XFER OUT $0 $0 $0 $34,190 N/A TOTAL $0 $0 $0 $523,120 N/A 73 FY 2016 Adopted Budget 60-400 Ad min L Proposed Budget Breakdown SERVICI 23% MA1NT 0% S FY 16 ADOPTED ADM IN BUDGET CAP EX 7% CQ!_ New and Noteworthy for FY 16 DAYRO L L 61% Department created to more accurately reflect true costs of water, sewer, and solid waste services provide by the City of Anna. Amounts were previously reflected only in the Water Department, thus overstating water services and understating sewer and solid waste services. Includes the assignment of positions listed below and purchase of new vehicle for construction inspector. %k 000 Fr 11 1% Admin FTE Schedule Description FY 12 FY 13 FY 14 FY 15 FY 16 Director of Public Works 0 0 0 0 1 Administrative Assistant 0 0 0 0 1 PW Superintendent 0 0 0 0 1 Construction Inspector 0 0 0 0 1 Total 0 0 0 0 4 74 �i FY 2016 Adopted Budget am Y�ill ilt F1i11F F;....4'.'�i Purpose/Description 60-701 Water The Water Department is responsible for the operation and maintenance of the City's water production and distri- bution system that includes the operation of seven groundwater production wells and connections to treated sur- face water purchased from the Greater Texoma Utility Authority through a contract with the North Texas Munici- pal Water District. FY 15 Accomplishments Applied for membership in the Texas Water Development Board Water IQ program Department is fully staffed. Increased training for maintenance staff. One newly licensed employee Surface water supply line for West Crossing and Powell Pump Stations now in service Multiple CIP projects started including: Hackberry Elevated Storage Tank, Hackberry Water Line, Fos- ter Crossing Water Line and Disinfection Upgrades West Crossing Pump Station now has a backup power generator installed and operational SCADA upgrades FY 16 Objectives Valve installation program Water loss reduction through meter audit, improved record keeping and field monitoring Increase public outreach related to water conservation (Water IQ) Complete radio read meter installation Increase staff training and certification Expenditure Summary ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE PAYROLL $618,815 $779,310 $620,670 $223,057 -71.38% SUPPLIES $83,432 $86,950 $67,150 $57,665 -33.68% MAINT $167,148 $283,000 $238,200 $318,850 12.67% SERVICES $1,026,844 $1,751,188 $1,646,375 $1,682,223 -3.94% CAP EX $840,232 $4,650 $11,904 $4,650 0.00% XFERS $357,696 $65,000 $65,000 $0 -100.00% TOTAL $3,094,167 $2,970,098 $2,649,299 $2,286,445 -23.02% 75 FY 2016 Adopted Budget 60-701 Water Proposed Budget Breakdown FY 16 ADOPTED WATER BUDGET XFERS_ CAP EX PAYROLL 0% 0% 10% SUPPLIES 2% MA11UT .�� New and Noteworthy for FY 16 Decreased payroll costs Positions moved to OF admin depart7en t • Positions moved to GF streets department Maintenance costs increase to complete water meter change outs to install radio read meters across the City All other cost centers showing decrease are the result of costs moved to other departments if Water FTE Schedule Description FY 12 FY 13 FY 14 FY 15 FY 16 Director of Public Works 1 1 1 1 0 Administrative Assistant 1 1 1 1 0 PW Superintendent 0 0 0 1 0 Construction Inspector 0 0 0 1 0 Field Supervisor 1 1 1 1 0 Crew Leader 1 1 1 1 1 Maintenance Worker 1 4 5 8 7 2 Maintenance Worker 11 0 0 0 1 1 Seasonal Laborer 1 1 0 0 0 Total 10 11 12 13 4 76 FY 2016 Adopted Budget rani �ano4s t;7nwt 60-705 Sewer Purpose/Description The Sewer Department is responsible for the operation and maintenance of the City's wastewater collection and treatment system that includes the operation of a 500 mgd wastewater treatment plant and connections to the North Texas Municipal Water District Upper East Fork Regional Interceptor System. FY 15 Accomplishments • Increased training for maintenance staff • Initiated inflow and infiltration location and repair program • Developed standard operating procedure for sanitary sewer overflow reporting • Implemented proactive wastewater collection system maintenance program • Activated the Slayter Creek Wastewater Interceptor line, and the new Slayter Creek Wastewater Treatment Plant Influent Lift Station FY 16 Objectives • Continue inflow and infiltration location and repair program • Start "Cease the Grease" public education program • Initiate staff training and purchase equipment to facilitate in-house maintenance and repair of lift sta- tions. • Develop CIP program for improvements to the Slayter Creek Wastewater Treatment Plant • Apply for renewal and upgrade of the Slayter Creek Wastewater Treatment Plant discharge permit ,C I Expenditure Summary ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE PAYROLL $115,571 $131,251 $135,271 $248,387 89.25% SUPPLIES $21,337 $18,500 $19,300 $22,135 19.65% MAINT $87,271 $65,500 $61,800 $82,000 25.19% SERVICES $1,628,388 $1,422,430 $1,710,976 $2,102,480 47.81% CAP EX $425,229 $0 $0 $72,000 #DIV/0! XFERS $0 $19,000 $19,000 $0-100.00% TOTAL $2,277,795 $1,656,681 $1,946,347 $2,527,002 52.53% 77 FY 2016 Adopted Budget 60-705 Sewer Proposed Budget Breakdown FY 16 ADOPTED SEWER BUDGET CAP EX WrFt2C nnvn^i I SEkV I C.ES 83% New and Noteworthy for FY 16 Increased payroll costs • The City's costs for insurance benefits increased • Final phase of market based wage adjustments • Position transferred from water department Increased supplies costs previously paid from water department Increased service costs r • Increased debt service • Increased costs for wastewater transportation and treatment by the NTMWD Sewer FTE Schedule Description FY 12 FY 13 FY 14 FY 15 FY 16 Field Supervisor 0 0 0 0 1 Senior Wastewater Operator 0 0 1 1 1 Wastewater Operator 2 2 1 1 1 Maintenance Worker 1 0 0 0 0 1 Total 2 2 2 2 4 78 L FY 2016 Adopted Budget 60-708 Solid Waste Purpose/Description Solid Waste service is currently provided by Bradshaw & Sons on a contract with the City. The Solid Waste De- partment does not have any personnel costs as it is a contracted service. wo1:felbit] 21AON7101410XVITI-T•71911:31]Bic] 141 SERVICES 100% r"q'New and Noteworthy for FY 16 Increase in costs driven by increase in solid waste customers IAW' ma ACTUAL Expenditure Summary BUDGET ESTIMATE ADOPTED SERVICES $0 $636,000 $662,000 $715,000 TOTAL $0 $636,000 $662,000 $715,000 % CHANGE 12.42% 12.42% 79 FY 2016 Adopted Budget L 60-710 Utility Billing Purpose/Description Utility billing is responsible for the billing of water, sewer, and trash collection services provided to the citizens of Anna and other customers of the City's utility system. FY 15 Accomplishments • Worked with Civic Plus to get a separate payment option on our City website • Established electronic bill payments through Vanco Services • Improved online forms • Finalized contract for new collection agency • Installed court program on UB clerk systems FY 16 Objectives • Further cross training with court • Increase collections on delinquent accounts • Support water meter audit • Further increase web presence Expenditure Summary 1 '11 01 ACTUAL BUDGET ESTIMATE ADOPTED % CHANGE PAYROLL $124,100 $141,453 $139,275 $148,115 4.71% SUPPLIES $3,283 $5,100 $2,500 $4,350 -14.71% MAINT $3,667 $600 $250 $600 0.00% SERVICES $77,006 $72,735 $77,942 $77,250 6.21% CAP EX $621 $700 $700 $0 -100.00% TOTAL $208,677 $220,588 $220,667 $230,315 4.41% 80 FY 2016 Adopted Budget L 60-710 Utility Billing MAINT 0% SL Proposed Budget Breakdown IW&1:f=1DIONIaDID] IIIM0III1►101.111DIC1:11 Jar J New and Noteworthy for FY 16 PAYROLL 64% Increased payroll costs • The City's costs for insurance benefits increased • Final phase of market based wage adjustments Increase in services for printing and mailing costs that are expected as the number of water customers contin- ues to grow Utility Billing FTE Schedule Description FY 12 FY 13 FY 14 FY 15 FY 16 Customer Service Supervisor 1 1 1 1 1 Senior Customer Service Rep. 1 1 1 1 1 Customer Service Rep. 1 0 0 0 0 Receptionist 0.5 0.5 0.5 0.5 0.5 Total 3.5 2.5 2.5 2.5 2.5 81 FY 2016 Adopted Budget Utility Fund Debt Unlike the General Fund, there is no special fund to account for Utility Fund Debt, all Utility Fund debt is ac- counted for within the Utility Fund. An Enterprise Fund is focused upon the total cost of providing services. With that focus in mind, the Utility Fund includes all costs to provide utility services to our customers, includ- ing the cost of long term debt service. All debt accounted for in the Utility Fund is supported by the revenues gen- erated from the Utility Fund's opera- tions. While some debt instruments DEBTSE 29° have a tax pledge, utility revenues are generally sufficient to support all Utili- ty Fund debt, however the FY 16 budg- et includes a transfer of $220,614 from Debt Service Fund revenues to support tax pledged debt in the Utility Fund. In FY 16, debt service accounts for 29% of the Utility Fund budget. In the de- partment summaries, debt is split be- tween the water and sewer depart- ments and is grouped with "services" for purposes of categorizing expense types. specific share of the budget. FY 16 UTILITY FUND SHOWING DEBT XFER TO CAPITAL CAP EX -1 -rc ., INT /C T OF However, Utility Fund debt it is highlighted here to illustrates its Debt Management Plan Not unlike the Debt Service Fund, the Utility Fund also faces challenges with its outstanding debt Currently the Utility Fund holds just over $26.2 million in outstanding debt The City has worked closely with our finan- cial advisors, First Southwest, to develop a sound debt management plan for the Utility Fund as well. Looking to the future, the City anticipates a spike in debt service in 2019. Left unaddressed, this could lead to increases in utility rates to support the debt payments. In order to appropriately manage Utility Fund debt, the City and First Southwest developed a plan to take ad- vantage of call dates and pursue advance refundings of the City's outstanding Utility Fund debt. Every effort has been made to minimize the present value costs to the City. The current plan makes very conservative as- sumptions regarding interest rates and was reviewed and analyzed in conjunction with a utility rate study to evaluate the current water and sewer rates. Depending on market conditions and the City's growth, two re- funding are slated for mid -summer and late fall of 2017. These refundings will also free up cash and reduce pressure on utility rates. The following table outlines the current and future debt payments. The table along with the subsequent chart details the debt payments through 2040. 82 FY 2016 Adopted Budget Y Utility Fund Debt The table below summarizes the outstanding debt service obligations for the Utility Fund through 2040 Utility Fund Outstanding Debt Schedule YEAR ENDING PRINCIPAL INTEREST TOTAL DEBT SERVICE DEBT SERVICE AFTER REFUNDING % CHANGE 9/30/2016 $742,000 $1,056,647 $1,798,647 $1,798,647 2% 9/30/2017 $768,750 $1,030,681 $1,799,431 $1,799,431 0% 9/30/2018 $784,500 $1,094,606 $1,879,106 $1,831,907 2% 9/30/2019 $996,250 $1,259,624 $2,255,874 $1,976,314 8% 9/30/2020 $1,443,750 $1,201,869 $2,645,619 $2,096,663 6% 9/30/2021 $1,473,250 $1,121,249 $2,594,499 $2,217,058 6% 9/30/2022 $1,518,750 $1,040,604 $2,559,354 $2,342,510 6% 9/30/2023 $1,580,250 $955,513 $2,535,763 $2,342,755 0% 9/30/2024 $1,669,000 $865,098 $2,534,098 $2,390,403 2% 9/30/2025 $1,772,500 $769,240 $2,541,740 $2,393,180 0% 9/30/2026 $2,122,000 $560,456 $2,682,456 $2,360,460 -1% 9/30/2027 $1,553,750 $463,695 $2,017,445 $2,232,152 -5% 9/30/2028 $1,423,750 $398,991 $1,822,741 $2,238,259 0% 9/30/2029 $1,240,000 $342,055 $1,582,055 $2,002,366 -11% 9/30/2030 $1,273,750 $293,051 $1,566,801 $1,986,043 -1% 9/30/2031 $1,325,000 $242,044 $1,567,044 $1,984,636 0% 9/30/2032 $1,382,500 $188,713 $1,571,213 $1,991,453 0% 9/30/2033 $1,127,500 $132,842 $1,260,342 $1,260,342 -37% 9/30/2034 $661,250 $98,546 $759,796 $759,796 -40% 9/30/2035 $248,750 $77,134 $325,884 $325,884 -57% 9/30/2036 $263,750 $62,764 $326,514 $326,514 0% 9/30/2037 $280,000 $47,500 $327,500 $327,500 0% 9/30/2038 $185,000 $34,397 $219,397 $219,397 -33% 9/30/2039 $197,500 $23,612 $221,112 $221,112 1% 9/30/2040 $207,500 $12,097 $219,597 $219,597 -1% TOTAL $26,241,000 $13,373,025 $39,614,025 $39,644,378 83 � FY 2016 Adopted Budget L nOIRU,WOKE.,OWN Utility Fund Debt The following chart illustrated before and after the planned refundings. Utility Fund Debt Service $ 3, 000,000 $ 2, 500,000 $2,000,000 $1,500,000 $1, 000,000 $ 500, 000 $0 II II �D 1� 00 0) 0 rl N (Y) 't V] l0 r- 00 0) 0 c-1 N Crl ';t LI] W 1l- 00 Ol 0 r-1 '--1 r 1 N N N N N (V N N N N m m m m m m m m m m �r 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N N N N N N N N N N N N N N N N N N TOTAL DEBT SERVICE ■ PRO.I. DEBT SERVICE AFTER REFUNDING *This was developed by the City of Anna using data provide by our financial advisors, First Southwest and assumptions developed jointly. It is for planning and discussion purposes only. Actual results may vary based upon future economic conditions. The following steps have been developed by the City and First Southwest to address the Utility Fund Debt: 1. The City's budgeted rates and charges are sufficient to cover both the contract revenue obligations as well as the general obligations issued for water and sewer system improvements. 2. The City will continue to move the Greater Texoma Utility Authority ("GTUA") contract bonds into the City's balance sheet through the issuance of Combination Tax and Revenue Refunding Bonds. a. The next refunding could occur as early as calendar year 2016 or as late as July/August 2017. i. City expects to take out the Anna Project contract bonds and get access to the debt service re- serve funds currently held by GTUA. 84 lAnn FY 2016 Adopted Budget ii. Refunding of GTUA contract bonds in coordination with the City of Melissa to take out the Anna/Melissa Project contract bonds and get access to 50% of the debt service reserve funds held by GTUA. Refunding of the Series 2009 Combination Tax and Revenue Refunding Bonds on or before February 15, 2018 to avoid interest rate reset to 15%. 4. It is the City's current intent to maintain water and sewer system annual debt service at a maximum level of $1.9 - $2 million per year. Upcoming refundings would have the goal of reducing debt service payments in fiscal years 2019 2027. 85 � FY 2016 Adopted Budget L Capital Improvements The Capital Improvements section include improvements that benefit both the General and Utility Funds. However, General Fund Capital Improvements are set aside in a dedicated fund to account for financial re- sources to be used for the acquisition or construction of major capital facilities. Utility Fund Capital Improve- ments are included in the Utility Fund. The separation of capital improvements into separate distinct funds is related to governmental accounting standards. The budgets for capital improvement projects are typically independent of the operating budget and are fund- ed with bonds, grants, fund balance, special restricted revenue or other sources of capital including private investment. Capital Improvements are the result of long term planning that occurs in the Capital Projects Plan. Each year projects are updated and projected across a 5 year time horizon and beyond. These projects are giv- en priority based upon a combination of factors including community needs/interests and available funding. In FY 16, the Capital Improvements Fund will either begin or continue to work on the following projects: • Foster Crossing Water Line Project • Throckmorton Creek Wastewater Interceptor • Hackberry Elevated Storage Tank • Hackberry Elevated Storage Tank Water Line Improvements • Water Disinfection System Improvements • Improvements to Natural Springs Park 1P • Design Services for City Hall Additional projects included in the capital projects summary are funded in the regular operating budgets pre- sented previously and are not included here. These projects include the following: • Annual Street Repair Program is funded in the Street Department budget • PD IT replacements are funded in the Police Department budget • Personal Protective Gear (PPE) are funded in the Fire Department budget • Vehicle Replacements Equipment Purchases if There are additional public infrastructure projects that will be completed by private developers and is subject to inspection and acceptance by the City of Anna. These projects are often referred to as contributed capital and typically include water, sewer, streets, and parks improvements and infrastructure. The projects are typi- cally managed, carried out, and funded by private developers. These projects are not included in the annual budget as but are listed below as a reference • Ferguson Roadway Expansion south of FM 455 and North of Taylor Blvd. • Clemmons Creek Sewer Line • Lakeview Park • Internal water, sewer, and roadway development related to Avery Point, Lakeview Estates, Camden Parc, and additional phases of West Crossing There are additional projects listed in the CIP summary for FY 16 that do not yet have funding secured. In each case these projects consist of 1 time expenditures for capital equipment and are contingent upon a variety of funding scenarios that include grant applications, inspection fee revenue, or other sources. Should revenue 86 � FY 2016 Adopted Budget L Capital Improvements come in greater than budgeted or grants are approved, staff will present funding scenarios for the proposed projects and receive council approval for the expenditures in the from of a budget amendment The projects are included to serve as a reference of departmental need and assist in evaluating future capital expenditures under various funding scenarios. The table below highlights all FY 16 projects with known funding sources and not already presented in the op- erating budget. The table highlights the project budget and funding source. Project FY 2016 Budget Funding SourcJ�I Foster Crossing Water Line Project Throckmorton Creek Wastewater Inter- ceptor Hackberry Elevated Storage Tank Hackberry Elevated Storage Tank Water Line Improvements Water Disinfection System Improvements Natural Springs Park Improvements Architectural Services for new City Hall construction Total C, $721,504 2012 & 2014 Certificates of Obligation $1,600,000 Wastewater Impact Fee and Capital Im- provement Fee Trust Funds $1,399,093 2012 & 2014 Certificates of Obligation $616,395 2012 & 2014 Certificates of Obligation $445,489 2012 & 2014 Certificates of Obligation $150,000 Park Trust Revenues TBD Future Bond Sales $4,932,481 87 FY 2016 Adopted Budget Y Summary of Capital Proiects CAPITAL IMPROVEMENTS PLAN* Capital Projects FY16 FY17 FY18 FY 19 FY 20 Future Total BUILDINGS - 10,450,000 - 360,000 3,472,000 13,825,173 28,107,173 New City Hall TBD 10,450,000 - - - - 10,450,000 Fire Station #2 - - - 360,000 3,472,000 - 3,832,000 New Police Station - - - - - 7,598,173 7,598,173 Fire Station #1 - - - - - 6,227,000 6,227,000 WATER AND WASTEWATER 4,792,481 823,000 - - - 3,790,000 9,405,481 Foster Crossing Wa- terline 721,504 - - - - - 721,504 Hackberry Elevated Storage Tank 1,399,093 - - - - - 1,399,093 Hackberry Water- lines 616,395 - - - - - 616,395 Disinfection Up- grades 4451489 - - - - - 445,489 Sherley Elevated Storage Tank Rehab 10,000 135,000 - - - - 145,000 Sherley Tank Restor. - 246,000 - - - - 246,000 US 75 Utility Reloca- tion - TBD - - - - - Collin Pump Station Activation - 442,000 - - - - 442,000 Grayson Pump Sta- tion - - - - - 3,075,000 3,075,000 Throckmorton Creek Sewer 1,600,000 - - - - - 1,600,000 WWTP Upgrades - - - - 715,000 7151000 STREETS 217,000 948,735 140,000 145,000 150,000 2,098,320 3,699,055 Annual Rehab Pro- gram 1301000 135,000 140,000 145,000 150,000 155,000 855,000 E. Hackberry Recon- struction 87,000 813,735 - - - - 900,735 Mantua Rd./CR 371 - - - - - 1,943,320 1,943,320 PARKS 150,000 - 146,000 - - - 296,000 NSP Improvements 150,000 - - - - - 150,000 NSP Dog Park - - 146,000 - - - 146,000 *All projects are subject to the availability of funds. Projects listed in the CIP do not guarantee funding. Limitations on revenue projections, grant applications, and other budgeted revenues take precedence over project funding. 88 FY 2016 Adopted Budget Summary of Capital Projects CAPITAL IMPROVEMENTS PLAN Capital Projects FY16 FY17 FY18 FY 19 FY 20 Future Total VEHICLES 213,500 107,500 181,950 117,118 144,000 2,188,000 2,952,068 Police Vehicle Replace- ment 82,500 121,950 92,118 94,000 390,568 FD - Replace E-902 - - - - - 600,000 600,000 FD - Aerial Platform - - - - - 1,500,000 1,500,000 FD - Brush 901 Re- mount 67,500 - - - - - 67,500 Streets Vehicles Re- placement - - - - - 35,000 35,000 Inspections Vehicle Replacement 25,000 - - - - 28,000 53,000 PW Vehicle Replace- ment 76,000 25,000 25,000 25,000 25,000 25,000 201,000 WW Vehicle Replace- ment 45,000 - - - 251000 - 70,000 Parks Pickup Replace- ment - - 35,000 - - - 35,000 Machinery/Equip 326,795 412,478 281,190 406,360 39,170 38,715 1,504,708 PD Computer Updates 5,200 13,300 7,900 6,190 - - 32,590 PD In -Car Video Up- grade 36,105 3,955 6,215 455 455 - 47,185 FD Annual PPE 30,000 30,000 30,000 30,000 30,000 30,000 1801000 FD IT Replacements 5,000 - - - - - 5,000 FD Traffic Light Con- trol System - 22,470 12,075 8,715 8,715 8,715 60,690 FD SCBA's 50,000 50,000 - - - - 100,000 PD & FD Radio Re- placements 75,000 65,000 60,000 - - 200,000 Parks Tractor and Grooming Mower - - - 91,000 - - 911000 Mobile Air Compressor or Equipment 16,181 - - - - - 16,181 Asphalt Hotbox 11,000 - - - - - 11,000 FixedLinx Meter Read- ing System - 135,750 160,000 210,000 - - 505,750 Light Tower 19,306 - - - - - 19,306 Valve Program 82,0031 82,0031 - I - I - I - 1 164,006 Vac Trailer 72,000 72,000 TOTAL 5,699,776 12,741,713 749,140 1,028,478 3,805,170 21,940,2081 45,964,485 89 FY 2016 Adopted Budget L nGE,W,TOKETOWComponent Units The City of Anna is closely involved with the Anna Economic Development Corporation (EDC) and the Anna Community Development Corporation (CDC). The corporations are sometimes referred to as Type A and Type B corporations (respectively). These corporations are presented in the annual budget as a component unit of the City of Anna. Each corporation acts under the direction of a seven member board appoint- ed by the City Council and has their own budget separate and distinct from the City of Anna budget In addition to being managed by their boards, both the EDC and CDC budgets must be approved by the City Council. As discussed previously in this budget, the city sales tax rate is 8.25%. The state takes 6.5% leaving 2% in the city. Of the remaining 2% the City of Anna receives 1%, the EDC and CDC each received .5%. Both corporations rely almost exclusively on sales tax for their revenue; however, the ECONOMIC EDC has a revenue generating lease agree- DEVELOPMENT ment on the old post office while the CDC CORPORATION now has a revolving loan fund that is begin- ning to generate revenue (the revolving loan fund is restricted revenue). The table below illustrates the revenue sources for the EDC and CDC. Both corporations pursue projects that improve the quality of life in Anna through projects ranging from the creation of jobs to investments in park facilities. Improvements funded through each corporation have specific eli- gibility requirements that must be met in order to receive funding. Chapter 501 of the Local Government Code governs these corporations. Additionally, C O M M U N I T � Chapter 504 specifically governs Type A corporations while Chapter 505 spe- d EV E LO P M E Ni cifically governs Type B corporations. CORPORATION EDC Revenue ACTUAL BUDGET ESTIMATE PROPOSED % CHANGE SALES TAX $337,690 $315,000 $350,000 $350,000 11.11% INTEREST $2,599 $250 $2,500 $2,500 900.00% RENTAL REVENUE $30,000 $30,000 $30,000 $30,000 0.00% TOTAL $370,289 $345,250 $382,500 $382,500 10.79% CDC Revenue ACTUAL BUDGET ESTIMATE PROPOSED % CHANGE SALES TAX $337,690 $315,000 $350,000 $350,000 11.11% INTEREST $2,594 $250 $2,500 $2,500 900.00% REVOLVING LOAN FUND $36,061 $54,000 $53,990 $0 -100.00% TOTAL $376,346 $369,250 $406,490 $352,500 -4.54% 90 L FY 2016 Adopted Budget Community Development Corporation Purpose/Description The Anna Community Development Corporation works to identify and fund community facilities and related pro- jects that enhance and improve the quality of life in Anna. FY 15 Accomplishments • Partnered with the CDC to support the Greater Anna Chamber of Commerce and their 5 annual commu- nity events. • Partnered with the CDC to launch a Mobile Ap for the City to help connect Anna residents to local busi- nesses. • Partnered with the Chamber and ISD to create a Resource Marketing Guide • Supported the parks department with equipment and park amenity needs 4 FY 16 Objectives • Promote community functions that foster civic pride through partnerships with GACC, Anna ISD, and oth er community organizations. • Maintain appropriate cash flow and coverage ratios for sound fiscal health and ratings • Support the City with the development of a Brand Identity for the City of Anna • Improve and expand the City's parks and park amenities ! #7 SUPPLIES SERVICES CAP EX TOTAL Expenditure Summa ACTUAL BUDGET ESTIMATE $150 $850 $360 $234,433 $254,160 $283,310 $58,000 $60,000 $60,000 $292,583 $315,010 $343,670 2016 PROPOSED % CHANGE $800 -5.88% $285,600 12.37% $60,000 0.00% $346,400 9.96% 91 FY 2016 Adopted Budget Community Development Corporation Proposed Budget Breakdown FY 16 ADO PTE❑ CDC BUDGET SUPPLIES CAP En 0% 17% T New and Noteworthy for FY 16 Participation with City and EDC for community brand/identity project with North Star Destination Strategies Ll% 92 FY 2016 Adopted Budget L Economic Development Corporation Purpose/Description The Anna Economic Development Corporation works in cooperation with the Anna Community Development Cor- poration to coordinate efforts to expand the city's business tax base with a focus on creating primary jobs within the City ofAnna. FY 15 Accomplishments • Partnered with the CDC to support the Greater Anna Chamber of Commerce and their 5 annual commu- nity events. • Partnered with the CDC to launch a Mobile App for the City to help connect Anna residents to local busi- nesses. • Partnered with the Chamber and ISD to create a Resource Marketing Guide • Sold the EDC's 48 acre land • Executed and Economic Development Agreement for the development of a large retail tract at the NE corner of FM 455 and US 75 FY 16 Objectives • Continue to support the Greater Anna Chamber of Commerce • Maintain appropriate cash flow and coverage ratios for sound fiscal health and ratings • Attend the ICSC local and national conferences to advance the Anna Name and build relationships with retailers and developers. • Identify opportunities to build the professional workforce in Anna through partnerships with businesses and educational Institutions. • Support the City with the development of a Brand Identity for the City of Anna • Continue to facilitate opportunities to extend fiber to serve commercial areas and new residential devel- opments. • Cultivate relationships with medical groups and hospitals that could potentially locate in Anna as we grow. • Identify land to purchase for a future technology business park, and develop a plan to construct infra- structure that will be required to serve the park. Expenditure Summa ACTUAL BUDGET ESTIMATE PROPOSED % CHANGE SUPPLIES $4,122 $4,750 $2,600 $2,800-41.05% MAINTENANCE $0 $0 $6,000 $6,500 #DIV/0! SERVICES $191,706 $205,170 $230,420 $229,000 11.61% CAP EX $122,840 $105,000 $0 $100,000 -4.76% TOTAL $318,669 $314,920 $239,020 $338,300 7.42% 93 FY 2016 Adopted Budget L Economic Development Corporation CAP EIS Z9% Proposed Budget Breakdown FY 16 ADOPTED EDC BUDGET SUPPLIES 1% ---MAIN NTE NAN ( 2% New and Noteworthy for FY 16 SERVICES 68% Participation with City and CDC for community brand/identity project with North Star Destination Strategies 94 �i FY 2016 Adopted Budget Y0T=110NEW Supplemental Information The Supplemental Information section contains the following information: • Capital Improvements Plan • Debt Management Plan • Bond Ratings • Financial and Investment Policies • Budget Information from City Charter • Budget Ordinance (included after adoption in September) NIF 95 IddIFF, CITY OF ANNA FY 2016 CAPITAL IMPROVEMENTS PLAN The addition of a permanent structural improvement or the restoration of some aspect of property that will either enhance the property's overall value or increases its useful life 96 MW 1 BUILDINGS A relatively permanent enclosed construction over a plot of land, having a roof and usually windows and often more than one level, used for any of a wide variety of activities 97 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 17 City Hall Admin Total Project Cost $ 10,450,000 FY 16 Budget $ - Project Description Consistent with the Downtown Revitalization Plan, the City plans to build a new City Hall. While conceptual at this point, the new space will provide a centralized ' location to interact with all City service except for -a public safety and public works Operational Necessity/Justification Regulatory or Legal Mandates ADA requirements, competitive bids With current and future growth projections for the city and the region, we are planning for future needs. We have outgrown our facilities and are in need of updated and permanent accommodations. City Sources of Funding Non -City Sources of Funding Modest amounts of fund balance if available and Bonds approved Avow Proposed Project Budget Land Acquisition - Testing Services 32,000 32,000 Design Costs 542,000 542,000 Const. Costs 8,730,000 8,730,000 Const. Mngmt. - Furn/Fixt/Equip 598,000 598,000 Engineering 98,000 98,000 Other Prof. Fees 140,000 140,000 Contingencies 310,000 310,000 Total - 10,450,000 - - - - 10,450,000 98 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 19 - FY 20 Fire Station #2 Fire Total Project Cost I $ 3,832,000 FY 16 Budget $ - Proiect Description As the city of Anna grows and population densities, sub —divisions and commercial development increases so does the need to provide timely service to those portions of our community that exceed benchmark response times. A second station will facilitate efficient and effective response to areas that may be underserved. J° Regulatory or Legal Mandates Operational Necessity/Justification None To maintain effective response capabilities in new growth areas of the city. City Sources of Funding Non -City Sources of Funding Bonds, and there may be some opportunity for limited grant funding assistance but it is not anticipated that this would provide full funding, if any, for this project. Land will be provided as part of a development agreement. Proposed Project Budget ,.FY 20 Future Total Land Acquisition Testing Services 14,000 14,000 Design Costs f 275,000 275,000 Const. Costs 3,225,000 3,225,000 Const. Mngmt. - Furn/Fixt/Equip 136,000 136,000 Engineering 33,000 33,000 Other Prof. Fees 38,000 38,000 Contingencies 111,000 111,000 Total - - - 360,000 3,472,000 - 3,832,000 99 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Future New Police Department Police Total Project Cost $ 7,598,173 FY 16 Budget $ - Proiect Description As identified in our space need assessment conducted in FY 14, the City will need to build a new Police Station to accommodate the current and expected grout. Regulatory or Legal Mandates Operational Necessity/Justification ADA requirements, competitive bids With current and future growth projections for the city and the region, we are planning for future needs. When the new City Hall is complete it will free up some space; however, a new facility will ultimately be necessary. City Sources of Funding Non -City Sources of Funding Bonds Proposed Project Budget Land Acquisition - TestingServices 23,000 23,000 Design Costs f 529,000 529,000 Cons. Costs 6,221,653 6,221,653 Const. Mngmt. - Furn/Fixt/Equip 427,000 427,000 Engineering 63,000 63,000 Other Prof. Fees 114,000 114,000 Contingencies 220,520 220,520 Total - - - - - 7,598,173 7,598,173 100 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Future Fire Station #1 Fire Total Project Cost $ 6,227,000 FY 16 Budget Ts - Project Description The currentfire station, built in 1967 has had several additions and renovations. It has served the community well. However, it is currently not efficient or effective in serving the community for the long term. Anew facility incorporating drive through apparatus bays, offices, storage, administrative & training areas, crew quarters and amenities is greatly needed. The facility would be designed to meet the needs of Anna for the next 30+years and would provide a much greater level of enhanced customer service then the current facility. Additionally, the design would help anchor to future growth along highway 5. Regulatory or Legal Mandates Operational Necessity/Justification None The current fire station is somewhat limited in its ability to support the growing community for effective and efficient operations of the Fire Department City Sources of Funding Non -City Sources of Funding lkiw' Bonds, and there may be some opportunity for limited grant funding assistance but it is not anticipated that this would provide full funding, if any, for this project. Proposed Project Budget Land Acquisition i - Testing Services 20,000 20,000 Design Cost - 432,000 432,000 Const. Costs 5,073,000 5,073,000 Const. Mngmt. - Furn/Fixt/Equip 408,000 408,000 Engineering 51,000 51,000 Other Prof. Fees 62,000 62,000 Contingencies 181,000 181,000 Total - - - - - 6,227,000 6,227,000 101 r406 ® M WATER AND SEWER 6 A transparent, odorless, tasteless liquid, a compound of hydrogen and oxygen; Liquid and solid waste carried off in sewers or drains 102 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department 11 FY 16 Foster Crossing Water Line Water Total Project Cost $ 721,504 FY 16 Budget $ 721,504 Project Description Installation of 6,750 linear feet of twelve -inch water line generally along Foster Crossing between the existing 18" line along the DART rail and the Pecan Grove Subdivision. Regulatory or Legal Mandates N/A City Sources of Funding The project is fully funded by the 2012 Certificates of Obligation designated for water system improvements. 9 iis1 .. Land Acquisition 10,000 Testing Services 33,882 Design Costs - Const. Costs 677,622 Const. Mngrn . Furn/Fixt/Equip Engineering ... Ml Other Prof. Fees Contingencies Total 721,504 ODerational Necessitv/Justification The Pecan Grove Water Line is necessary in order to provide a critical water line loop, serve future development and enable the City to fully utilize the Collin Pump Station located near the Collin County Outer Loop. Non -City Sources of Funding N/A Proposed Project Budget 10,000 33,882 677,622 - - - - 721,504 103 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 15 - 16 Hackberry EST Water Total Project Cost $ 2,695,263 FY 16 Budget $ 1,399,093 Proiect Description Construction of a .75 MG to 1 MG elevated storage tank north of FM 455 near Hackberry Drive. The tank will be a composite tank and will expand the §- elevated storage capacity of the City's water system and allow for continued residential growth. :mr � Regulatory or Legal Mandates Operational Necessity/Justification Our current system is reaching its maximum capacity. In order to meet TCEQ mandated elevated storage capacity levels , the city will be required to build an The Collin Pump Station project will add some capacity; additional elevated storage tank. however, an elevated storage tank will be required to keep pace with anticipated growth. City Sources of Funding Non -City Sources of Funding '10 2014 CO. Proposed Project Budget Land Acquisition 25,000 25,000 Testing Services 53,262 53,262 Design Costs - Const. Costs 1,183,600 1,183,600 Const. Mngmt. - Furn/Fixt/Equip - Engineering 137,231 137,231 Other Prof. Fees - Contingencies - Total 1,399,093 - - - - - 1,399,093 104 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 15 - 16 Hackberry WL Water Total Project Cost $ 1,392,852 FY 16 Budget $ 616,395 Project Description Install piping ranging from 12" up to 16" in diameter to ;. interconnect wells and tanks. This project will also allow the overall water distribution system to be looped and create a more redundant system. �IIIYef ' 1 Regulatory or Legal Mandates Operational Necessity/Justification The additonal looping will mitigate or diminish service The water main break in 2013 was an example of the outages and allow for additonaI caacity which does help need to provide greater redundancy in our water avoid potential noncompliance with requlatory system. Additionally, the tower to be constructed will agencies. need to be interconnected with the overall water system. City Sources of Funding Non -City Sources of Funding 2014 CO. Proposed Project Budget Land Acquisition - Testing Services 28,062 28,062 Design Costs 27,104 27,104 Const. Costs 561,229 561,229 Const. Mngmt. - Furn/Fixt/Equip - Engineering - Other Prof. Fees - Contingencies - Total 616,395 105 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 Disinfection Upgrades Water Total Project Cost $ 445,489 FY 16 Budget $ 445,489 Proiect Description Install an liquid ammonia (LAS) injection system, Pressure Regulator p ulal ing upgrade chlorine injection system, complete electrical upgrades, install upgrade yard piping for supply and solution, and install necessary SCADA monitoring and kotameter controls. ['donne Glas Source Chlorinated Water Walc+r Iaclul Regulatory or Legal Mandates Operational Necessity/Justification The system is out of date and designed improperly. It Blending water with dissimilar disinfection methods can cause chlorine levels to drop or spike when not controlled must be updated to a more efficient system. properly. Converting the water system to chloramines will Additionally, the system will allow for the treatment of provide a more stable and managemable residula reducing surface water when introduced to our system. the likelihood of non-compliance with TCEQ regulations for system residuals. City Sources of Funding Non -City Sources of Funding 2014 CO. Proposed Project Budget Land Acquisition L - Testing Services - Design Costs - Const. Costs 356,950 356,950 Const. Mngmt. - Furn/Fixt/Equip - Engineering 81,400 81,400 Other Prof. Fees 7,139 7,139 Contingencies - Total 445,489 - - - - - 445,489 106 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 - FY 17 Sherley EST Restoration Water Total Project Cost $ 145,000 FY 16 Budget $ 10,000 Project Description Restoration of the Sherley Elevated Storage Tank including any potential metal work, potential lead mitigation, sandblasting, prime coat and repaint. F f t; ei Regulatory or Legal Mandates Operational Necessity/Justification The tank is a historic landmark, is located in our historic district, stands near a historic church and should be preserved. Tanks of this type were common in the 1920's and this tank is from that era. City Sources of Funding Non -City Sources of Funding To be determined. The cost would be less if lead Possible grant funding from the Texas Historical mitigation was performed prior to the last repaint. Cost Commission. We need to apply to have the tank included to restore the tank with no lead mitigation is estimated in the National Register of Historic Places in order to at between $30,000 and $60,000. qualify for a Certified Local Government Grant. Grant funding is available for developing a preservation plan/ordinance as well. Proposed Project Budget Land Acquisition - Testing Services 5,000 5,000 10,000 Design Costs 5,000 5,000 Const. Costs 130,000 130,000 Const. Mngmt. - Furn/Fixt/Equip - Engineering - Other Prof. Fees - Contingencies - Total 10,000 135,000 - - - - 145, 000 107 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 17 Sherley Tank Rehabilitation Water Total Project Cost $ 246,000 1 FY 16 Budget I $ - Project Description Rehabilitation of two above ground storage tanks at the Sherley Pump Station.One tank is a 300,000 gallon tank and the other is a 100,000 gallon tank. Regulatory or Legal Mandates Operational Necessity/Justification TCEQ requires annual inspections of potable water A recent tank inspection showed multiple issues with tanks. Any tanks not meeting regulatory requirements the tanks including some interim degradation and sand must be scheduled for cleaning/rehabilitation promptly. accumulation. The tanks need to be reahabilitated and cleaned to avoid water quality issues. City Sources of Funding Non -City Sources of Funding Funds are available for the project through a Texas Water Development Board Loan administered through Ithe Greater Texoma Utility Authority. Proposed Project Budget Land Acquisition - Testing Services - Design Costs - Const. Costs hlz246,000 246,000 Const. Mngmt. - Furn/Fixt/Equip - Engineering - Other Prof. Fees - Contingencies - Total - 246,000 - - - - 246,000 108 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 17 - Future US 75 Utility Relocation Water Total Project Cost TBD FY 16 Budget $ - Prolect Description Relocation of water and sewer lines in conflict with improvements to US 75 as proposed by the Texas Department of Transportation. r , ,tl V Operational Necessity/Justification Regulatory or Legal Mandates TxDOT. Water and wastewater lines must be relocated in order for the reconstruction of US 75 to be completed. City Sources of Funding Non -City Sources of Funding The project is still being evaluated in order to determine TBD. costs. One source of funding could be TxDOT reimbursements. kw-w 11 Proposed Project Budget 111011111 Land Acquisition - Testing Services - Design Costs - Const. Costs - Const. Mngmt. - Furn/Fixt/Equip - Engineering - Other Prof. Fees - Contingencies - Total - TBD - - - - TBD 109 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 17 Collin Pump Station Activation Water Total Project Cost $ 442,000 FY 16 Budget $ - Project Description With the well and surface water blending projects complete, the next step is to acitvate the Collin Pump Station. Collin Pump Station is a surface water take point. The Foster Crossing Water Line along with the activation of this pump station will allow surface water -1 41 to be pumped into newer sections of the system --- reducing potential water quality issues that could be casued by introducing unblended surface water in the older section of town. Regulatory or Legal Mandates Operational Necessity/Justification The city is approaching and may exceed the TCEQ This project is necessary in order to accommodate mandated maximum daily capacity our water future growth, activate an existing unused asset, and system. Upgrades are necessary to keep pace with provide for redundancy within the water system. growth. City Sources of Funding Non -City Sources of Funding No 2012 CO, 2014 CO. CA IW I Proposed Project Budget Land Acquisition - Testing Services - Design Costs - Const. Costs 328,131 328,131 Const. Mngmt. - Furn/Fixt/Equip - Engineering 72,090 72,090 Other Prof. Fees 9,011 9,011 Contingencies 321768 32,768 Total 442,000 - - - - 442, 000 110 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Future Grayson Pump Station Water Total Project Cost $ 3,075,000 FY 16 Budget $ - Proiect Description Installation of pump station, pumps, back-up generator,y`'`i and all piping and appurtenences. Construction of a 500,000 gallon ground storage reservoir. �. A Regulatory or Legal Mandates Requirement for pumping and storage capacity City Sources of Funding rTo be determined. Land Acquisition Testing Services Design Costs Const. Costs Const. Mngmt Furn/Fixt/Equip Engineering Other Prof. Fees Contingencies Total Operational Necessity/Justification While the Foster Crossing Water Line and Collin Pump Station activation will provide capacity forthe short term, the Grayson Pump Station will eventually still need to be constructed to meet projected demand. For FY 16 we will complete the design and shelve the plans until needed. Non -City Sources of Funding Proposed Project Budget 000 3,075,000 - - - - - 3,075,000 3,075,000 111 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 Throckmorton Creek Line Sewer Total Project Cost $ 1,600, 000 FY 16 Budget $ 1,600,000 Proiect Descriation Extend Throckmorton Creek Sewer Line as development occurs in the project area. This will eliminate the lift station on Taylor Blvd. and allow for a gravity flow regional line. Regulatory or Legal Mandates Operational Necessity/Justification The existing Throckmorton Lift Station is at capacity per Project is dictated by population growth and TCEQ regulations. development in the project area and drainage basin. City Sources of Funding Non -City Sources of Funding Sewer Impact Fee Revenue. Developer Funded. Proposed Project Budget Land Acquisition 62,500 62,500 Testing Services 31,986 31,986 Design Costs - Const. Costs 1,279,456 1,279,456 Const. Mngmt. - Furn/Fixt/Equip - Engineering 194,072 194,072 Other Prof. Fees 31,986 31,986 Contingencies - Total 1,600,000 - - - - - 1,600,000 112 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Future WWTP Upgrades Sewer Total Project Cost $ 715,000 FY 16 Budget $ - Project Description Upgrade existing equipment and appurtenances to meet TCEQ guidelines and allow for maximum useful life and efficient operations of the existing` WWTP. Kasberg, Patrick and Associates is currently -- completing their evaluation of the plant. From that evaluation we will identify new projects at the WWTP to = -- - improve efficiency and mitigate compliance issues. Project costs will change based on that evaluation. Regulatory or Legal Mandates Operational Necessity/Justification Texas Commission on Environmental Quality (TCEQ) In order to keep pace with growth and avoid costly and requires certain standards be maintained in order to unnecessary TCEQ violations, the plant needs to be operate a WWTP. This project will allow the city to updated to meet TCEQ requirements. make the required upgrades to its WWTP. City Sources of Funding Non -City Sources of Funding No 2012 CO. Identify additional funding. r, Proposed Project Budget Land Acquisition - 70 Testing Services 2,500 2,500 Design Costs M - Const. Costs 650,000 650,000 Const. Mngmt. - Furn/Fixt/Equip - Engineering 62,500 62,500 Other Prof. Fees - Contingencies - Total - - - - 715,000 715,000 113 STREETS public thoroughfare, usually paved, in a village, town, or city 114 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Annually Street Rehab Program Streets Total Project Cost $ 855,000 FY 16 Budget $ 130,000 Protect Description Each year the city will reserve $100,000+ of general fund revenues to repair a street. The particular street project each year will determined based upon the level a of wear found upon city streets.wjki_ Regulatory or Legal Mandates Competitive bids, safety of citizens. City Sources of Funding General Fund revenues. Operational Necessity/Justification City streets have an anticipated life expectancy. As the city grows and the streets experience wear and tear roads will need to be repaired/replaced. Non -City Sources of Funding I Proposed Project Budget -. Land Acquisition - Testing Services - Design Costs - Const. Costs 1 0,000 135,000 140,000 145,000 150,000 155,000 855,000 Const. Mngmt. - Furn/Fixt/Equip - Engineering - Other Prof. Fees - Contingencies Total 130,000 135,000 1 140,0001 145,000 150,000 155,000 855,000 115 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 - FY 17 Hackberry - Slayter Creek Streets Total Project Cost I $ 900,735 FY 16 Budget $ Project Description Reconstruct Hackberry Lane from Highway 5 to Slayter Creek. Hackberry Lane transitions from a four lane divided road to a narrow two lane road. Project will improve the transition, install curb and gutter, and possibly create a turn lane at Highway 5. Regulatory or Legal Mandates City Sources of Funding General Fund Revenue. Land Acquisition Testing Services Design Costsj. Const. Costs _ Const. Mngmt. Furn/Fixt/Equip Engineering Other Prof. Fees Contingencies Total 1� 87,000 813,735 87,000 813,735 Operational Necessitv/Justification With the growth in the West Crossing development, Hackberry lane is experiencing increased traffic. This particular section needs to be improved for safety reasons as well as road capacity. Non -City Sources of Funding Proposed Project Budget k 116 900,735 r 900,735 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Future Matua Rd/CR 371 Streets Total Project Cost I $ 1,943,320 FY 16 Budget $ Project Description Reconstruct Mantua Rd./CR 371 from Highway 5 to U.S. 75 Regulatory or Legal Mandates Operational Necessity/Justification In preparation for and response to growth, this is a future project the city anticipates to meet our transportation needs. City Sources of Funding Non -City Sources of Funding General Fund Revenue. Bonds. 7 Proposed Project Budget Pr I �'=Wm Land Acquisition Testing Services Design Costs Const. Costs Const. Mngmt Furn/Fixt/Equip Engineering Other Prof. Fees Contingencies Total 1,943,320 1,943,320 1,943,320 1,943,320 117 41, TLI w .� _r City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 NSP Improvements Parks Total Project Cost $ 150,000 FY 16 Budget $ Proiect Description Make improvements to Natural Springs Park for the rA�f benefit of park patrons. Official projects will be M�f determined throughout FY 16 but may include building rehab a parking lot and other park improvements. Regulatory or Legal Mandates None City Sources of Funding Parks Trust Fund Revenues, CDC Contributions I Land Acquisition Testing Services Design Costsj. Const. Costs _ Const. Mngmt. Furn/Fixt/Equip Engineering Other Prof. Fees Contingencies Total 150,000 150,000 150,000 Operational Necessitv/Justification The City of Anna parks master plan is a comprehensive plan for an interconnected top notch park system. Anna is known for its park system and these improvements will enhance Natural Springs Park Non -City Sources of Funding Proposed Project Budget 119 150,000 r 150,000 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 18 Dog Park Pa rks Total Project Cost $ 146,000 1 FY 16 Budget I $ - Proiect Descriotion The Park would include a concrete parking lot and access to White Street and the cross access ($141,000), a steel fence ($84,000), new trail ($25,000), pergola shade structure ($10,000) and equipment ($22,000). Equipment would be benches, Water Fountains, Trash Cans, Obstacle, and Misc.). Regulatory or Legal Mandates None City Sources of Funding Parks Trust Fund Revenues, General Fund Revenues, CDC Contributions Operational Necessitv/Justification The City of Anna parks master plan is a comprehensive plan for an interconnected top notch park system. Anna is known for its park system and these improvements will enhance the City's park system Non -City Sources of Funding Proposed Project Budget 'Land Acquisition - Testing Services - Design Costs - Const. Costs 119,000 119,000 Const. Mngmt. - Furn/Fixt/Equip 22,000 22,000 Engineering 5,000 5,000 Other Prof. Fees - Contingencies Total 1 146,000 - - - 146, 000 120 VEHICLES Any means in or by which someone travels or something is carried or conveyed 121 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 17 - FY 20 PD Vehicle Replacement Police Total Project Cost I $ 390,568 1 FY 16 Budget 1 $ Proiect Description Vehicle replacement schedule based on mileage and years of service. Police Equipment up -fits included for the appropriate patrol vehicles. This project also phases out original lighting equipment purchased in 2005. I Schedule includes 2 vehicles in FY 17, 3 vehicles in FY 18, 2 vehicles in FY 19, and 2 vehicles in FY 20. Regulatory or Legal Mandates All purchases will follow the City's purchasing policy and those guidelines set forth by Chapter 252; Local Government Code. City Sources of Funding General Fund Revenues 1� Operational Necessitv/Justification All vehicles have a service life. Patrol vehicles endure harsh driving conditions and their lifespan is reduced accordingly. Light bars are in need of replacement due to weathering and age. Non -City Sources of Funding I I Proposed Project Budget 11 ____MYMIM Land Acquisition - Testing Services - Design Costs - Const. Costs - Const. Mngmt. - Furn/Fixt/Equip 82,500 121,950 92,118E94,0j00390,568 Engineering - Other Prof. Fees 7 - Contingencies Total - 82,500 121,950 92,118 , 94,000 - 390, 568 122 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Future Replace E-902 Fire Total Project Cost I $ 600,000 FY 16 Budget $ Proiect Description." The design and purchase of a rescue pumper will be needed to replace E-902. E-902 is a 2001 model and still operates well as a reserve engine. However, it will need to be replaced in the next few years. At that time E-901 will be placed into reserve status and the new Engine will serve as the first out unit. The unit should be designed with at least a 1500 gpm pump, 1000 gallon water tank, a compliment of ground ladders, hose, tools and various other tools for extrication and EMS duties. Regulatory or Legal Mandates NFPA City Sources of Funding General Fund Revenues Land Acquisition Testing Services Design Costs Cons. Costs Const. Mngmt. Furn/Fixt/Equip Engineering Other Prof. Fees Contingencies Total 1- Operational Necessity/Justification E-902 is a 2001 year model and is beginning to show wear and tear. E-902 would be placed into reserve status and kept equipped to serve as a reserve engine if needed. Non -City Sources of Funding Grant funding from various sources will be researched and applied for accordingly. Proposed Project Budget 600,000 600,000 600,000 600,000 123 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Future Aerial Platform Fire Total Project Cost $ 1,500,000 FY 16 Budget $ - Proiect Description The design and purchase of a aerial device will be needed as development and growth continues. The device will allow for an elevated master stream for firefighting needs and also increase rescue capabilities of the Department. The unit should be designed with at least a 1500 gpm pump, 100 ft. ladder with platform, 300 gallon water tank, a compliment of ground ladders, hose, tools and various other tools for extrication and EMS duties. Regulatory or Legal Mandates The device is required to meet current NFPA standards ISO dictates that any 3+ story structure requires an elevated device responding on the first alarm. Operational Necessitv/Justification An aerial platform is needed to provide adequate & required fire flow capabilities on large commercial structures and multi family residence complexes. Mutual Aid resources are 20+ minutes away. City Sources of Funding Non -City Sources of Funding Bonds; FEMA Grants. This item was applied for in the ,2014 grant application period. No awards have been announced as of 3-24-15. Proposed Project Budget Land Acquisition h07 - Testing Services - Design Costs - Const. Costs hlz Const. Mngmt. - Furn/Fixt/Equip 1,500,000 1,500,000 Engineering - Other Prof. Fees - Contingencies - Total - - - - - 1,500,000 1,500,000 124 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 Brush 901 Remount Fire Total Project Cost I $ 67,500 FY 16 Budget $ Proiect Description This project would consist of two different areas: (1) - Purchase a new cab & chasis to replace the current chasis & cab on Brush 901. The current chasis is a 2003 year model. The replacement would be a 2015 F-450 super cab 4x4. The second phase (2 ) would be to take the current 2003 cab & chasis and purchase a utility bed to mount on this chasis. This unit would serve as a multi use unit for the Dept. and allow us to sale two other pieces of equipment. Regulatory or Legal Mandates INFPA City Sources of Funding General Fund Revenues; gain in sale of Rehab 901 and Rescue 901. Land Acquisition Testing Services Design Costs Const. Costs Const. Mngmt Furn/Fixt/Equip Engineering Other Prof. Fees Contingencies Total 67,500 67,500 67,500 Operational Necessity/Justification Although Brush 901 is 11 years old the bed, tank & pump are are still serviceable. This project would allow for the sale of Rehab 901 & Rescue 901. Non -City Sources of Funding Grant funding from the TFS is available at a 90/10 match for the new chassis. This amount would be an estimated $40,000 from TFS & $5,000 from general fund. Proposed Project Budget 67,500 125 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Future Vehicle Replacement Streets Total Project Cost $ 35,000 FY 16 Budget $ - Proiect Description JPurchase of a 1 ton truck with a dump bed for Streets Regulatory or Legal Mandates City Sources of Funding General Fund Revenue. Land Acquisition Testing Services Design Costsj. Const. Costs _ Const. Mngmt. Furn/Fixt/Equip Engineering Other Prof. Fees Contingencies Total 1� Operational Necessity/Justification The Street Department wi I I need to repl ace a a 1 ton truck for trailering equipment and a dump bed for small asphalt repairs. Non -City Sources of Funding Proposed Project Budget 126 35,000 35,000 35,000 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 - Future PW Vehicle Replacement Water Total Project Cost I $ 53,000 FY 16 Budget $ 25,000 Project Description Purchase a 1/2 ton 4WD extended cab pick up for the construction inspector. 7- i� yy Regulatory or Legal Mandates Operational Necessity/Justification Inspection vehicles should re be replaced on a five year schedule. The current vehicle is a retired Police Tahoe. The 4WD vehicle would allow greater access to and safety in construction zones. City Sources of Funding Non -City Sources of Funding Inspection fee revenue. Proposed Project Budget 77�-,.. Land Acquisition - - Testing Services - Design Costs - Const. Costs - Const. Mng-nt. - Furn/Fixt/Equip 25,000 28,000 53,000 Engineering - Other Prof. Fees - Contingencies - Total 25,000 - - - - 28,000 53,000 127 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 - Future PW Vehicle Replacement Water Total Project Cost I $ 201,000 FY 16 Budget $ 76,000 Project Description Replace 3 fleet trucks that are more than 5 years old. Vehicles to be purchased would be a crew cab 1/2 ton, single cab 1/2 ton, and a 3/4 ton with dump/flat bed. Regulatory or Legal Mandates Operational Necessity/Justification Public Works vehicles should be on a five-year replacement schedule. The purchase of the vehicles for 2016 would replace vehicles that are more than 5 years old. The vehicles to be replaced are a 2008 Dodge Ram 1500, a 2008 Dodge 2500, and a 2004 F-150 XL. City Sources of Funding Non -City Sources of Funding General Fund Revenue. Proposed Project Budget ,. Land Acquisition - - Testing Services - Design Costs - Const. Costs - Const. Mngmt. - Furn/Fixt/Equip 76,000 25,000 25,000 25,000 25,000 25,000 201,000 Engineering - Other Prof. Fees - Contingencies Dotal 76,000 25,000 25,000 25,000 25,000 25,000 201, 000 128 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 - Future Vehicle Replacement Sewer Total Project Cost $ 70,000 FY 16 Budget $ 45,000 Proiect Description Replace a 2003 1/2 ton truck with a 1 ton truck with a crane. This would allow staff in the Sewer Department to perform lift station repairs rather than contract for �_ 4 ` _ L this service. Replace 2014 1 2 ton truck in future as p / existing truck reaches end of its useful lie. a . = Sim i Regulatory or Legal Mandates Operational Necessity/Justification 5 year replacement schedule. The existing truck is a DOT rules for trailering weight limits. 2003, is experiencing mechanical issues and does not have a utility bed. Additionally, there are no trucks in the Wastewater Department that are large enough to pull the jet trailer or vac trailer legally. City Sources of Funding Non -City Sources of Funding General Fund Revenue. Proposed Project Budget WOES Land Acquisition - Testing Services - Design Costs - Const. Costs �7r. - Const. Mngmt. - Furn/Fixt/Equip 45,000 25,000 70,000 Engineering - Other Prof. Fees - Contingencies Total 45,000 - - - 25,000 - 70, 000 129 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 18 Replacement Pickup Parks Total Project Cost $ 35,000 FY 16 Budget Ts - Project Description Replacement Vehicle for aging existing pickup. Regulatory or Legal Mandates Operational Necessity/Justification Reliable transportation to and from job site and the None pulling of landscape trailer. City Sources of Funding Non -City Sources of Funding General Fund Revenues, CDC Contributions Proposed Project Budget Land Acquisition - Testing Services - Design Costs IL Md - Const. Costs - Const. Mngmt. - Furn/Fixt/Equip 35,000 35,000 Engineering - Other Prof. Fees Contingencies - Total - - 35,000 - - - 35, 000 130 MACHINERY AND EQUIPMENT An apparatus consisting of interrelated parts with separate functions, used in the performance of some kind of work, anything kept, furnished, or provided for a specific purpose 131 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 - FY 19 PD IT Replacement Police Total Project Cost I $ 32,590 FY 16 Budget $ 5,200 Proiect Description Computer replacement based on the extensive everyday use and costs associated with upgrading exceed the = value of the units. FY 16 includes ticket writers and tablets, FY 17 includes computers and a server, FY 18 includes additional computers and tablets, and FY 19 includes peripherals and ticket writers. Regulatory or Legal Mandates Operational Necessity/Justification All purchases will follow the City's purchasing policy Computers in the office are used 24/7 causing quick and those guidelines set forth by Chapter 252; Local wear. Computers are limited to 1 or 2 upgrades before Government Code. the costs outweigh functionality. As the department continues to grow, the PD anticipates adding personnel requiring additional terminals, ticket writers, and peripherals such as printers, keyboards, and monitors. City Sources of Funding Non -City Sources of Funding General Fund Proposed Project Budget a Land Acquisition - Testing Services - Design Costs - Const. Costs - Const. Mngmt. - Furn/Fixt/Equip 5,200 13,300 7,900 6,190 - - 32,590 Engineering - Other Prof. Fees - Contingencies - Total 5,200 13,300 7,900 6,190 - - 32,590 132 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department I FY 16 - FY 20 PD Video Upgrade Police Total Project Cost $ 47,185 FY 15 Budget $ 36,105 Project Description - - This project upgrades the current in -car video system and back office components. In addition, it adds body cameras to the system. of o10101c. of io otoi ioi of oro i0l� tol 10, 0'C':" AV ,0 i Regulatory or Legal Mandates Operational Necessity/Justification All purchases will follow the City's purchasing policy The current systems were upgraded in 2008 and have and those guidelines set forth by Chapter 252; Local reached the end of their service life. As technology Government Code. advances, it becomes difficult to find replacements. We have already experienced this with the current system. Video quality is beginning to diminish and the server, back up PC and DVD publisher is outdated. City Sources of Funding Non -City Sources of Funding General Fund Revenue, PD Seizure Funds Grants are available for this type of technology; however, they are extremely competitive. AF- Proposed Project Budget l y M Land Acquisition - Testing Services - Design Costs IFL- Const. Costs - Const. Mngmt. - Furn/Fixt/Equip 36,105 3,955 6,215 455 455 47,185 Engineering - Other Prof. Fees - Contingencies Total 361105 3,955 6,215 455 455 - 47,185 133 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Annual PPE Fire Total Project Cost $ 180,000 FY 16 Budget $ 30,000 - Proiect Description This project would consist of replacing aging PPE (personal protective equipment). This is a priority in providing our firefighters with state of the art 1� protection. Replacement of PPE that no longer meets safety requirements as well as having available PPE for new members is a necessity. A replacement plan of five sets each yearwill keep the Department in compliance with State & National standards. Regulatory or Legal Mandates Operational Necessity/Justification NFPA, OSHA, TCFP Required to provide safety for firefighters. This replacement plan provides PPE for new members and works as a retention tool encouraging members to stay active and participate in Department training and shift rotations City Sources of Funding Non -City Sources of Funding General Fund, Fire Trust Grant funding from various sources will be researched and applied for accordingly Proposed Project Budget Land Acquisition AL Testing Services - Design Costs Const. Costs - Const. Mngrn Furn/Fixt/Equip 30,000 30,000 30,000 30,000 30,000 30,000 180,000 Engineering Other Prof. Fees - Contingencies Total 30,000 30,000 30,000 30,000 30,000 30,000 180,000 134 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 FD IT Replacements Fire Total Project Cost I $ 5,000 FY 16 Budget $ Proiect Description In FY 15 the project would focus on the purchase of a computer for the Fire Marshal's vehicle and E-902. The Fire Marshal would be able to utilize his system with on - site fire inspections and code compliance inspections. The ability to be able to access crucial dispatch 5,000 information in both vehicles would also increase firefighter and employee safety. FY 16 includes two new tablets for E-902 & C-902 along with two laptops to utilize in the EOC / training room. Monthly internet fees i will be added to line item budget. Regulatory or Legal Mandates Operational Necessity/Justification None To reflect industry best practices, increase firefighter safety and operational effectiveness also increase effective operations and reporting. City Sources of Funding General Fund, Fire Trust I Land Acquisition Testing Services Design Costs*. Const. Costs Const. Mngmt. Furn/Fixt/Equip Engineering Other Prof. Fees Contingencies Total Non -City Sources of Funding Proposed Project Budget 5,000 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 17 - Future Traffic Light Controls Fire Total Project Cost I $ 60,690 FY 16 Budget $ - Proiect Description This purchase would equip traffic control systems with a system that would allow for safe entry into and away from a intersection. Emergency vehicles would be equipped with a signaling device that would activate the system located in the traffic signals and turn the intersection to red in all directions. As traffic counts increase this will be method to allow emergency vehicles safe access through controlled intersections to emergency scenes. Regulatory or Legal Mandates Operational Necessity/Justification None This device allows vehicles equipped with signaling devices to control intersections by turning the signal to red. Devices can also be used at gated communities, increases firefighter safety and decreases the chances of intersection accidents involving fleet vehicles. City Sources of Funding Non -City Sources of Funding General Fund No Grant funding from various sources will be researched and applied for accordingly. Some cost may also be iv diverted to developers through agreements and possible road impact fees. Proposed Project Budget Land Acquisition - Testing Services - Design Costs - r Const. Costs 5,670 3,150 1,890 1,890 1,890 14,490 Const. Mngrn I�M - Furn/Fixt/Equip 16,800 8,925 6,825 6,825 6,825 46,200 Engineering - Other Prof. Fees - Contingencies - Total - 22,470 12,075 8,715 8,715 8,715 60,690 136 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16-17 SCBA's Fire Total Project Cost $ 100,000 1 FY 16 Budget I $ 50,000 Proiect Description The purchase of 12 self contained breathing apparatus (SCBA) will allow for members involved in IDLH atmospheres and operations to be equipped with state of the art respiratory protection. Keeping our SCBA's up to date with the current NFPA standard is critical. While current units are still passing test, each year more repairs are needed to keep them in compliance. The proposed plan would fund replacements over 2 years. Regulatory or Legal Mandates None City Sources of Funding Pending Grant Application, Fire Trust 1� Land Acquisition Testing Services Design Costsj. Const. Costs Const. Mngmt. Furn/Fixt/Equip Engineering Other Prof. Fees Contingencies Total Operational Necessity/Justification The 12 SCBA's currently in use were purchased under the 2002 NFPA standard. These standards outdated and over 12 years old. Current SCBA's are beginning to require expensive repairs to remain in service. These new SCBA's would meet the current NFPA standard. Non -City Sources of Funding Grant opportunities will be sought and applied for when available. An AFG grant was submitted for this (replacement program in November 2014, however no awards have been announced as of March 24, 2015. 100,000 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 17 - 19 Radio Replacements Police & Fire Total Project Cost $ 200,000 FY 16 Budget $ - Proiect Description This project would consist of replacing current radios with digital radios that will meet federal inter operable regulations. Radios and communication devices are�� critical to firefighter safety and efficient and effective emergency operations. Y a Regulatory or Legal Mandates Operational Necessity/Justification The departments have some radios that are no longer Federal interoperable P25 regulations. supported by Motorola with limimted repair options and parts available. These units will be replaced with the newest digital compliant radios. Current radios could be utilized for other city departments if needed. City Sources of Funding Non -City Sources of Funding General Fund, Fire Trust, PD Seizure Grant funding from various sources will be researched and applied for accordingly. Proposed Project Budget Land Acquisition - Testing Services - Design Costs - klz Const. Costs Const. Mngmt. - Furn/Fixt/Equip 75,000 65,000 60,000 200,000 Engineering - Other Prof. Fees i - Contingencies Total - 75, 000 65, 000 60, 000 - - 200, 000 138 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 19 Tra ctor a nd G room Mower Pa rks Total Project Cost I $ 91,000 FY 16 Budget $ Project Description; - The Flex -Wing Grooming Mower piece of Equipment (FM2120R) and a 50-HP Tractor with a 20' wide mowing - surface for grooming new parks. It would be used for ` grooming non irrigated fields and open spaces. y Regulatory or Legal Mandates None City Sources of Funding Parks Trust Fund Revenues, General Fund Revenues, CDC Contributions Operational Necessity/Justification Exisiting tractor is showing signs of age and use, a replacement tractor is expected to be needed in FY 19. IR.7T Non -City Sources of Funding Proposed Project Budget Land Acquisition - Testing Services - Design Costs - Const. Costs hlz Const. Mngmt. - Furn/Fixt/Equip 91,000 91,000 Engineering - Other Prof. Fees - Contingencies Total - - - 91,000 - - 91,0001 139 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 Air Compressor Streets Total Project Cost $ 16,181 FY 16 Budget $ 16,181 Proiect Description Trailer mounted air compressor for running jackhammers and other equipment. pi8s p00SAN Regulatory or Legal Mandates Operational Necessity/Justification Equipment would be used for running a jackhammer for conrete removal. Would speed access for excavation and street removal as well as run other equipment like a torpedo bore for water service replacement. City Sources of Funding Non -City Sources of Funding General Fund Revenue. Proposed Project Budget Land Acquisition - Testing Services - Design CostsWOES - Const. Costs - Const. Mngmt. - Furn/Fixt/Equip 16,181 16,181 Engineering - Other Prof. Fees - Contingencies - Total 16,181 - - - - - 167,18717] 140 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 Asphalt Hotbox Streets Total Project Cost I $ 11,000 FY 16 Budget - Fs -Project Description Asphalt reclaimer and asphalt patch trailer. Keeps hot mix hot and reactivates old asphalt for use. Regulatory or Legal Mandates City Sources of Funding General Fund Revenue. Land Acquisition Testing Services Design Costsj. Const. Costs _ Const. Mngmt. Furn/Fixt/Equip Engineering Other Prof. Fees Contingencies Total 1 11,000 1� Operational Necessitv/Justification 11,000 Because of the long distance to asphalt plants, small quantities of hot mix will cool and harden before it is installed. This machine will keep the mix hot and reactivate cool asphalt resulting in workable asphalt and a quality repair. Non -City Sources of Funding Proposed Project Budget 141 11,000 11,000 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 17 - FY 19 FixedLinx Meter Reader Water Total Project Cost $ 505,750 FY 16 Budget $ Proiect Description The City currently uses technology for our radio read meters from Master Meter. Each meter can be read remote) via radio signal. This is current) done via Y g Y drive -by in a PW vehicle. This project will enable all water meters to be read remotely without the need for drive -by or manual reads. This project will be completed in phases based upon site surveys and determination of highest initial return on placement of the equipment. a! "lJ 'L1 Regulatory or Legal Mandates (None City Sources of Funding Utility Fund Revenues 1� Operational Necessity/Justification Improve operational efficiency in the department/fund. Enable the more efficient use of personnel and delays any needs for new personnel. Non -City Sources of Funding Proposed Project Budget Land Acquisition - Testing Services - Design Costs - Const. Costs - Const. Mngmt. ■ - Furn/Fixt/Equip 135,750 160,000 210,000 505,750 Engineering - Other Prof. Fees - Contingencies Total - 135,750 160,000 210,000 - - 505, 750 142 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 Mobile Light Tower Water Total Project Cost $ 19,306 FY 16 Budget $ Proiect Description Vertical light tower and 20kW generator in one. L20- 60HZ-T41 Portable Light Tower, 20kW output, Isuzu 4LE, 34.3 bhp, 1800 rpm, 57 hr. run time (100% load) Regulatory or Legal Mandates City Sources of Funding General Fund Revenue. 1� i „I OOOSAN f 19,306 Operational Necessity/Justification The light tower would be used for night work and to run power tools. The light tower could also be used for events and emergency operations. Non -City Sources of Funding Proposed Project Budget Land Acquisition - Testing Services U7 I=Mh1w - Design Costs - Const. Costs - Const. Mngmt. - Furn/Fixt/Equip 19,306 19,306 Engineering - Other Prof. Fees - Contingencies Total 19,306 - - - - - 19,306 143 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 - FY 17 Valve Program Water Total Project Cost I $ 164,006 FY 16 Budget $ Project Description Protect would rovide for the installation of ')Avalves 82,003 within the older area of town. The type of valve used will not cause service interruptions. ism, -,I Regulatory or Legal Mandates Operational Necessity/Justification When a water leak cannot be isolated the water system .This project will allow the City to install isolation valves could be drained which would result in compliance without causing service interruptions as is typical of violations. standard valve installations. Additionally, the project will result in the ability to isolate leaks locally without draining the system. City Sources of Funding To be determined. 1� Non -City Sources of Funding Proposed Project Budget Land Acquisition MdM- Testing Services - Design Costs - Const. Costs 82,003 82,003 164,006 Const. Mngmt. - Furn/Fixt/Equip - Engineering - Other Prof. Fees - Contingencies Total 82,003 82,003 - - - - 164,006 144 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 Vac -trailer Sewer Total Project Cost I $ 72,000 FY 16 Budget $ Project Description Purchase of a hydro excavation and vacuum trailer. The equipment would be used to locate missing valves, uncover high risk utilities (gas, electric, and fiber), and clean grease and debris from lift stations and manholes. Jr. 72,000 Regulatory or Legal Mandates Operational Necessity/Justification The equipment could help to avoid noncompliance due The equipment would be used to locate missing water to overflows caused by grease in lift stations and valves, uncover high risk utilities (gas, electric, and fiber), manholes. and clean grease and debris from lift stations and manholes. The equipment would save money by damage avoidance and reducing wear and tear on lift station City Sources of Funding To be determined. Land Acquisition Testing Services Design Costsj. Const. Costs _ Const. Mngmt. Furn/Fixt/Equip Engineering Other Prof. Fees Contingencies Total 72,000 1� Non -City Sources of Funding Proposed Project Budget 72,000 145 �A 4 TOTAL CAPITAL IMPROVEMENT PLAN Total summary of economic costs of capital expenditures planned for the next 5 years and beyond 146 CAPITAL IMPROVEMENTS PLAN* Capital Projects FY16 FY17 FY18 FY 19 FY 20 Future Total BUILDINGS - 10,450,000 - 360,000 3,472,000 13,825,173 28,107,173 New City Hall TBD 10,450,000 - - - - 10,450,000 Fire Station #2 - - - 360,000 3,472,000 - 3,832,000 New Police Station - - - - - 7,598,173 7,598,173 Fire Station #1 - - - - - 6,227,000 6,227,000 WATER AND WASTEWATER 4,792,481 823,000 - - - 3,790,000 9,405,481 Foster Crossing Water- line 7211504 - - - - - 721,504 Hackberry Elevated Storage Tank 1,399,093 - - - - - 1,399,093 Hackberry Waterlines 616,395 - - - - - 616,395 Disinfection Upgrades 445,489 - - - - - 445,489 Sherley Elevated Stor- age Tank Rehab 10,000 135,000 - - - - 145,000 Sherley Tank Restor. - 246,000 - - - - 2461000 US 75 Utility Reloca- tion - TBD - - - - - Collin Pump Station Activation - 442,000 - - - - 442,000 Grayson Pump Station - _AV _ _ - 3,075,000 3,075,000 Throckmorton Creek Sewer 1,600,000 - - - - - 1,600,000 WWTP Upgrades - - - - 715,000 715,000 STREETS 217,000 948,735 140,000 145,000 150,000 2,098,320 3,699,055 Annual Rehab Program 130,000 135,000 140,000 145,000 150,000 155,000 855,000 E. Hackberry Recon- struction 87,000 813,735 - - - - 900,735 Mantua Rd./CR 371 - - - - - 1,943,320 1,943,320 PARKS 150,000 - 146,000 - - - 296,000 NSP Improvements 150,000 - - - - - 150,000 NSP Dog Park - - 146,000 - - - 146,000 *All projects are subject to the availability of funds. Projects listed in the CIP do not guarantee funding. Limitations on revenue projections, grant applications, and other budgeted revenues take precedence over project funding. 147 CAPITAL IMPROVEMENTS PLAN Capital Projects FY16 FY17 FY18 FY 19 FY 20 Future Total VEHICLES 213,500 107,500 181,950 117,118 144,000 2,188,000 2,952,068 Police Vehicle Replace- 82,500 121,950 92,118 94,000 390,568 FD - Replace E-902 - - - - - 600,000 600,000 FD - Aerial Platform - - - - - 1,500,000 1,500,000 FD -Brush 901 Re- 67, 500 - - - - - 67,500 Streets Vehicles Re- - - - - - 35,000 35,000 Inspections Vehicle Replacement 25,000 - - - - 28,000 53,000 PW Vehicle Replace- 76,000 25,000 25,000 25,000 25,000 25,000 201,000 WW Vehicle Replace- 45,000 - - - 25,000 - 70,000 Parks Pickup Replace- - - 35,000 - - - 35,000 Machinery/Equip 326,795 412,478 281,190 406,360 39,170 38,715 1,504,708 PD Computer Updates 5,200 13,300 7,900 6,190 - - 32,590 PD In -Car Video Up- 36,105 3,955 6,215 455 455 - 47,185 FD Annual PPE 30,000 30,000 30,000 30,000 30,000 30,000 180,000 FD IT Replacements 5,000 - - - - - 5,000 FD Traffic Light Con- - 22,470 12,075 8,715 8,715 8,715 60,690 FD SCBA's 50,000 50,000 - - - - 100,000 PD & FD Radio Re- 75, 000 65,000 60,000 - - 200,000 Parks Tractor and - - - 91,000 - - 91,000 Mobile Air Compressor or Equipment 16,181 - - - - - 16,181 Asphalt Hotbox 11,000 - - - - - 11,000 FixedLinx Meter Read- - 135,750 160,000 210,000 - - 505,750 Light Tower 19,306 - - - - - 19,306 Valve Program 82,003 82,003 - - - - 164,006 Vac Trailer 72,000 72,000 TOTAL 5,699,776 12,741,713 749,140 1,028,478 3,805,170 21,940,208 45,964,485 148 CITY OF ANNA DEBT MANAGEMENT PLAN The City of Anna is situated in a high growth area in Collin County along highway 75. During the high growth the City experiences in the early part of 2000, the City issues debt for significant water and sewer infrastructure pro- jects. As the growth in the City has picked up over the past 3-4 years, the City has again found the need to issue additional debt for water and sewer improvements. Staff has worked diligently with our First Southwest to develop and implement a debt management plan that will take advantage of call dates, rate resets, and market conditions in order to maximize the City's economic position as it relates current and future debt issues. The following will detail current debt held by the City of Anna with the anticipated steps to ensure our financial goals are met. City's Outstanding General Obligation Debt as of Fiscal Year Ending September 30, 2015 Series Name Amount Out- Interest Rates Call Date Final Ma- Supported by: standing turity 1976 GO Water Bonds $5,000 5.00% n/a 1/1/16 W&S Revs 2006 Comb Tax &CLtdd Surplus Rev $650,00 4.00% 2/15/16 2/15/20 I&S Taxes 3.95% thru 2007 Comb Tax & Rev C/O $795,000 2/15/2017 2/15/17 2/15/27 I&S Taxes 15% thereafter 3.95% thru 2007 GO Ref Bonds $205,000 2/15/2017 2/15/17 2/15/27 I&S Taxes 15016 thereafter 4.28% thru 2009 Comb Tax & Rev C/O $720,000 2/15/2018 2/15/18 2/15/29 I&S Taxes 15016 thereafter 4.28% thru 2009 Comb Tax & Rev Ref Bonds $1,705,000 2/15/2018 2/15/18 2/15/26 W&S Revs 15016 thereafter 2012 Comb Tax & Rev C/O $4,130,000 1.50% to 2.50% 2/15/19 2/15/33 W&S Revs 2014 Comb Tax & Rev C/O $4,180,000 2.00% to 3.65% 2/15/24 2/15/34 W&S Revs 2014A Comb Tax & Rev Ref Bonds $2,546,000 0.95% to 3.60% n/a 2/15/26 W&S Revs 2014B GO Ref Bonds $1,410,000 0.30% to 2.40% n/a 2/15/26 I&S Taxes TOTAL $16,346,000 149 Breakdown of General Obligation Debt as of Fiscal Year Ending September 30, 2015 I&S Tax Supported General Obligation Debt: Series Name Amount Out- Interest Rates Call Date Final Ma- Supported by: standing turity 2006 Comb Tax &CLtdd Surplus Rev $650,00 4.00% 2/15/16 2/15/20 I&S Taxes 3.95% thru 2007 Comb Tax & Rev C/O $795,000 2/15/2017 2/15/17 2/15/27 I&S Taxes 1501. thereafter 3.95% thru 2007 GO Ref Bonds $205,000 2/15/2017 2/15/17 2/15/27 I&S Taxes 15016 thereafter 4.28% thru 2009 Comb Tax & Rev C/O $720,000 2/15/2018 2/15/18 2/15/29 I&S Taxes 15016 thereafter 2014B GO Ref Bonds $1,410,000 0.30% to 2.40% n/a 2/15/26 I&S Taxes TOTAL $3,780,000 Water & Sewer System Supported General Obligation Debt with Tax Pledge Series Name Amount Out- standing Interest Rates Call Date Final Ma- turity Supported by: 1976 GO Water Bonds $5,000 5.00% n/a 1/1/16 W&S Revs 2009 Comb Tax & Rev Ref Bonds $1,705,000 4.28% thru 2/15/2018 15% thereafter 2/15/18 2/15/26 W&S Revs 2012 Comb Tax & Rev C/O $4,130,000 1.50% to 2.50% 2/15/19 2/15/33 W&S Revs 2014 Comb Tax & Rev C/O $4,180,000 2.00% to 3.65% 2/15/24 2/15/34 W&S Revs 2014A Comb Tax & Rev Ref Bonds $2,546,000 0.95% to 3.60% n/a 2/15/26 W&S Revs TOTAL $12,566,000 (continued on next page) 150 Other Obligations as of Fiscal Year Ending September 30, 2015 Contract Debt (Greater Texoma Utility Authority) Supported by Water & Sewer System Revenue Amount Out- Interest Final Ma - Series Name standing Rates Call Date turity GTUA Contract 2005 Contract Rev Ref Bonds $1,990,000 4.42% n/a 5/1/28 Anna Project 2005 Contract Rev Bonds $513,750 4.79% to 4/1/15 10/1/28 Collin/Grayson Pro- 5.74% ject 2006 Contract Rev Bonds $1,355,000 3.40% to 12/1/16 6/1/26 Anna/Melissa Pro- 3.75% ject 2006 TWDB State Participation $2,168,750 5.68%to n/a 8/1/40 Collin/Grayson Pro - Loan 5.83% ject 2007 Contract Rev Bonds $1,710,000 3.40% to 12/1/17 6/1/28 Anna/Melissa Pro- 4.10% ject 2007-A Contract Rev Bonds $555,000 4.67% to 5/1/17 5/1/27 Anna Project 5.57% 2007-B Contract Rev Bonds $820,000 4.67% to 11/1/17 5/1/27 Anna Project 5.57% 2007-C Contract Rev Bonds $3,110,000 4.67% to 11/1/17 5/1/32 Anna Project 5.62% 2007 Contract Rev Bonds $1,057,500 4.52% to 4/1/17 10/1/36 Collin/Grayson Pro- 5.62% ject 2008 Contract Rev Bonds $395,000 5.14% Any Date at 5/1/27 Anna Project 101% TOTAL $13,675,000 The Contract Debt is included in the operating expenses of the Water and Sewer System, therefore senior to the "Water & Sewer System Supported General Obligation Debt with a Tax Pledge." 1W Interest and Sinking Fund Tax Debt Management 1. The City has levied an Interest and Sinking Fund rate of $0.106659 in Tax Year 2015 2. The City's tax base is now at $610,146,057 which means the is not dependent on future re- fundings and restructuring to manage it's I&S rate 3. Assuming 0% growth, no debt refundings/restructures an no new debt; the City could cover all of it's I&S tax -support obligations through maturity in 2029 at current revenue levels 4. The City still plans to implement the following refundings is there is economic benefit and to create capacity for new debt for future facility needs: a. Refunding of Series 2007 Certificates and Bonds on or before February 25, 2017 to avoid interest rate reset to 15%. NO EXTENSION OF ORIGINAL MATURITY. b. Refunding of Series 2009 Certificate on or before February 15, 2018 to avoid interest rate reset to 15%. NO EXTENSION OF ORIGINAL MATURITY. 151 The table below illustrates the planned debt service obligations specifically related to general fund debt. Existing Less: Fiscal Existing Budgeted Less: Net I&S Net Year General Paying Self- General Fund General Ending Obligation Agent Supporting Obligation Drawdown Obligation 9/30 Debt Service Fees debt Service Debt Service &Transfers Debt Service 2016 $ 1,017,769 $ 2,500 $ 591,982 $ 428,288 $ - $ 428,288 2017 1,015,989 2,500 596,371 422,118 - 422,118 2018 1,131,539 2,500 675,941 458,198 - 458,198 2019 1,492,422 2,500 983950 510,972 - 510,972 2020 1,774,215 2,500 1,275:919 500,897 - 500,897 2021 1,620,549 2,500 1,127, 976 495, 073 - 495,073 2022 1,601,426 2,500 1,107,287 496,639 - 496,639 2023 1,557,371 2,500 1,079,638 480,234 - 480,234 2024 1,568,595 2,500 1,094,953 496,142 - 486,142 2025 .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 1,554,426 2,500 1,087,840 469,086 - 469,086 2026 1,691,201 2,500 1,225,514 468,188 - 468,188 2027 1,150,625 2,500 910,750 242,375 - 242,375 2028 998,275 2,500 918,650 92,125 - 82,125 2029 990,613 2,500 920,738 72,375 - 72,375 2030 921,801 - 921,801 - - - 2031 921,830 - 921,830 - - - 2032 925,999 - 925,999 - - - 2033 934,183 - 934,183 - - - 2034 432,756 - 432,756 - - - $23,301,584 $ 35,000 $17,723,875 $ 5,612,709 - $ 5,612,709 Water and Sewer System Fund Debt Management 1. The City's budgeted rates and charges are sufficient to cover both the contract revenue obli- gations as well as the general obligations issued for water and sewer system improvements. 2. The City will continue to move the Greater Texoma Utility Authority ("GTUA") contract bonds into the City's balance sheet through the issuance of Combination Tax and Revenue Refunding Bonds. a. The next refunding could occur as early as calendar year 2016 or as late as July/ August 2017. 4: i. City expects to takeout the Anna Project contract bonds and get access to the debt service reserve funds currently held by GTUA ii. Refunding of GTUA contract bonds incoordination with the City of Melissa to takeout the Anna/Melissa Project contract bonds and get access to 50% (City of Anna share) of the debt service reserve funds held by GTUA 3. Refunding of the Series 2009 Combination Tax and Revenue Refunding Bonds on or before 'm February 15, 2018 to avoid interest rate reset to 15%. 4. It is the City's current intent to maintain water and sewer system annual debt service at a maximum level of $1.9 - $2 million per year. 5. Upcoming refundings would have the goal of reducing debt service payments in fiscal years 2019 - 2027. 152 The following table illustrates the planned debt service for Utility Fund debt including those debt instru- ments with a tax pledge. GTUA Fiscal GTUA GTUA Collin/ Year Anna Anna/Melissa Grayson Cityof Anna Existing Ending Project Project Project G❑ (W&S) W&S Fund 3G-Sep Debt Service Debt Service Debt Service Debt Service Debt Service 2016 $ 603,443 $ 319,710 $ 283,513 $ 591,982 $ 1,798,647 2017 601,655 317,740 283,666 596,371 1,799,431 _ 201_8 5_99, 272 _320, 4_43 ---. 28_3, 5_51_ _ _ _ 675,841 _.-- _1,979,_. 106 .---.----.-- . 2019606,284 322,633 343,007 983,950 2,255,874 2020 702,149 324,295 343,356 1,275,819 2,645,619 2021 797,442 325,535 343,546 1,127,976 2,594,499 2022 787,282 321,223 343,562 1,107,287 2,559,354 2023 791,063 321,655 343,408 1,079,638 2,535,763 2024 783,203 321,645 344,297 1,084,953 2,534,098 2025 789,054 321,120 343,726 1,087,840 2,541,740 ......................................................................................................................................................................................................................................................................................................................................................................................................... 2026 782,912 330,070 343,961 1,225,514 2,682,456 2027 590,155 173,245 343,295 910,750 2,017,445 2028 389,024 171,765 343,302 918,650 1,822,741 2029 317,382 - 343,935 920,738 1,582,055 2030 318,051 - 326,948 921,801 1,566,801 ..................................................................................................................................................................................................................................................................... 2031 317,877 - 327,337 921,830 1,567,044 2032 316,860 - 328,354 925,999 1,571,213 2033 - - 326,159 934,183 1,260,342 2034 - - 327,040 432,756 759,796 2035 - - 325,884 - 325,984 2036 - - 326,514 - 326,514 2037 - 327,500 - 327,500 2038 - - 219,397 - 219,397 2039 - - 221,112 - 221,112 2040 - - 219,597 - 219,597 $10,093,107 $ 3,891,078 $ 7,905,966 $17,723,875 $ 39,614,025 The last refunding of water and sewer system supported debt executed at the end of calendar year 2014, allowed the City to restructure payments and maintain debt service under $2 million through fiscal year 2018. 1% Debt Management Plan considerations he City is currently rated "Al" by Moody's and "A" by Fitch. It is assumed the City will be ble to maintain it's "A" category ratings to achieve the goals set forth in the debt manage- ient plan. 2. The City may undertake new debt in the future; however, new debt is expected to fall within the guidelines of the City's debt management plan and do not have unplanned and negative budgetary impact on the City's finances, tax rates and utility rates. 153 3. The City's current practice of no growth assumptions (tax base and utility fund revenues) are incorporated into the City's debt management plan and any future borrowings. 4. The City may extend the original maturity of refunded obligations if it is necessary to achieve cash flow goals. At this time, the City does not expect to extend original maturity of I&S tax supported debt, but it could extend original maturity of water and sewer system revenue sup- ported bonds evaluated on a case -by -case basis. 154 3/25/2015 Fitch Ratings I Press Release FitchRatings Tagging Info Fitch Affirms Anna, TX's LTGOs and COs at 'A'; Outlook Stable Ratings Endorsement Policy 23 Mar 2015 5:05 PM (EDT) Fitch Ratings -New York-23 March 2015: Fitch Ratings has affirmed the 'A' rating on the following city of Anna, Texas (the city) obligations: --$650,000 combination tax and limited surplus revenue certificates of obligation (COs), series 2006; --$5,000 limited tax general obligation (LTGO) water bonds, series 1976. The Rating Outlook is Stable. SECURITY The GO bonds and COs are secured by a pledge of ad valorem taxes levied annually within the limits prescribed by law against all taxable property in the city. The COs are further secured and payable from a limited pledge (not to exceed $1,000) of surplus net waterworks and sewer system revenues. KEY RATING DRIVERS SOLID FINANCIAL POSITION: Despite growth pressures and related capital spending, the city has maintained a sound financial position through conservative budgeting practices, as evidenced by regular operating surpluses and healthy fund balance levels. DEVELOPMENT RESUMES: After a recessionary drop, development activity is accelerating. Aggressive population growth has resumed following modest increases during the trough of the recession. Return to the rapid expansion of past years would bolster the local tax base but also present new service and infrastructure challenges. HIGH OVERALL DEBT BURDEN: The city's overall debt burden is high, due primarily to the overlapping debt of the local school district. Fitch believes the current debt load is manageable due to the reasonable prospects for continued population and tax base expansion. RATING SENSITIVITIES STABLE RESERVES: Maintenance of solid financial reserves, given Anna's sales tax exposure, is a key to maintaining credit quality. IMPROVED DEBT PROFILE: A meaningful reduction in debt levels due to continued population and tax base growth could lead to positive rating action in the future. CREDIT PROFILE The city is located 40 miles north of Dallas in relatively affluent Collin County (the county). Easy access to Dallas and affordable land spurred rapid population growth of 21 % per year during the last decade. Despite this growth, the city's 2013 population remained modest at 9,515. GROWTH RESUMES FOLLOWING RECESSION Taxable assessed values (TAV) have grown substantially in recent years following moderate recessionary declines of approximately 10% from peak to trough. TAV increased by 14.5% in fiscal 2014, with further growth of 18.7% reflected in fiscal 2015 certified values. Recent growth has been driven by renewed housing market expansion, which is expected to continue in the near term. https://www.fitchrati ngs.com /creditdesk/press_rel eases/detai i.cfm ?print=1 &pr_i d=981769 1 /3 3/25/2015 Fitch Ratings I Press Release The city's top 10 taxpayers represent a modest 7.3% of total TAV and include a mix of retail and commercial establishments. Property tax rates are above average relative to other cities in the county. The city's current rate of $0.65 per $100 of TAV represents a 12% hike since fiscal 2009. Rapid population growth has resumed, with an increase of 12% in 2013 following several years of more modest increases of approximately 1 % to 2% during the recession. Management expects growth to continue, pointing to increased demand for local housing and the construction of new single-family homes currently underway. Wealth levels are mixed. Fiscal 2015 market value per capita grew considerably to $71,000 from $56,000 the prior year due to a combination of new residential construction and increased market demand. Per capita money income approximates the state average but is 90% of the national average. Favorably, median household income is roughly 130% of the state and national averages. No employment information is available for the city, but the unemployment rate in the county remained below state and national averages throughout the recession and has trended downward after spiking in 2010. The county's December 2014 rate of 3.7% was well below both the Texas (4.1 %) and U.S. averages (5.4%) for the month. STABLE FINANCIAL PROFILE; HIGH RESERVE LEVELS The city has managed to meet the service demands of a growing population while maintaining a sound financial profile. The city continues to maintain very high levels of general fund reserves, well above the council -adopted policy of maintaining 90 days operating reserves. The city's revenue sources are diverse, with property taxes comprising 54% and economically sensitive sales taxes comprising a reasonable 15% of total general fund revenues. Public safety constitutes the largest and fastest growing spending item. The city's 1 % sales tax experienced rapid growth during the period of dramatic population growth, even showing double-digit annual growth throughout most of the recent recession. Sales tax revenues exhibit average annual growth of 11.6% over the last six years. Fiscal 2013 ended with a modest draw on fund balance for capital spending, and fiscal 2014 (based on draft audit) resulted in a $429,000 net operating surplus (after transfers), increasing the general fund balance to an ample $3.1 million or 71 % of general fund spending. The fiscal 2015 adopted budget is balanced with plans for a modest operating surplus, but unbudgeted capital spending and the purchase of land are now projected to cause another modest deficit. Fitch believes management will continue its proactive financial planning practices and budgetary oversight in order to maintain its sound financial position. HIGH OVERALL DEBT LEVELS; LOW PENSION FUNDING While the city's direct debt levels are modest, fiscal 2014 overall debt levels are very high at approximately $7,800 per capita and 13.9% of fiscal 2014 market value (MV). The high debt burden is mainly driven by substantial overlapping borrowing by the Anna Independent School District (not rated by Fitch). The pace of city debt retirement is moderate at 50% in 10 years. Most of the city's outstanding debt consists of obligations issued for its waterworks and sewer system. The city plans to restructure both its tax -supported and water and sewer debt within the next few years in order to smooth out debt service requirements, which are scheduled to rise significantly in 2018. Additional tax -supported debt is expected in the near term to fund the construction of a new city hall and roadway improvements. Though the new borrowing is not expected to significantly increase the city's debt burden, recurring borrowing for growth - related capital needs may pressure the city's liability profile in future years. Anna's employees participate in an agent multiple -employer defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). The city routinely funds 100% of its annual required contributions. However, funding levels are low at 67% assuming a 7% investment rate of return as of Dec. 31, 2012, up moderately from 59% the prior year. Other post -employment benefits (OPEB) are also provided by the city through TMRS but are limited to group -term life insurance benefits, which may be terminated by city council and results in no unfunded liability. Carrying costs related to long-term debt, pension and OPEB liabilities were manageable at 16% of fiscal 2014 governmental fund spending. Contact: Primary Analyst George M. Stimola Analyst +1-212-908-0770 Fitch Ratings, Inc. https://www.fitchrati ngs.com /creditdesk/press_rel eases/detai i.cfm ?print=1 &pr_i d=981769 2/3 3/25/2015 Fitch Ratings I Press Release 33 Whitehall Street New York, NY 10004 Secondary Analyst Rebecca Moses Director +1-512-215-3739 Committee Chairperson Doug Scott Managing Director +1-512-215-3725 Media Relations: Elizabeth Fogerty, New York, Tel: +1 (212) 908 0526, Email: elizabeth.fogerty@fitchratings.com. Additional information is available at'www.fitchratings.com'. In addition to the sources of information identified in Fitch's Tax -Supported Rating Criteria, this action was additionally informed by information from Creditscope, University Financial Associates. Applicable Criteria and Related Research: —'Tax-Supported Rating Criteria' (Aug. 14, 2012); —'U.S. Local Government Tax -Supported Rating Criteria' (Aug. 14, 2012). Applicable Criteria and Related Research: Tax -Supported Rating Criteria U.S. Local Government Tax -Supported Rating Criteria Vol - Additional Disclosure Solicitation Status ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU- REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Copyright © 2015 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. https://www.fitchrati ngs.com /creditdesk/press_rel eases/detai i.cfm ?print=1 &pr_i d=981769 3/3 MOODY'S INVESTORS SERVICE Rating Update: Moody's affirms Anna, TX Al GO rating Global Credit Research - 08 Apr 2015 ANNA (CITY OF) TX Cities (including Towns, Villages and Townships) TX NEW YORK, April 08, 2015 --Moody's Investors Service has affirmed the Al underlying rating on the City of Anna, TX. Rating affects $8.39 million of outstanding Moody's rated bonds and certificates. Bonds and certificates are secured by a continuing and direct annual ad valorem tax levied on all taxable property in the city, within the limits prescribed by law. The certificates are additionally secured by surplus revenues of the city's waterworks and sewer system. SUMMARY RATING RATIONALE The Al rating reflects the moderately sized, but growing tax base with favorable location in Collin County (Aaa/stable). The rating is also indicative of the strong recent financial performance with large reserves. The rating also reflects the elevated debt burden, mostly attributed to Anna Independent School District (Al/negative). OUTLOOK Outlooks are usually not assigned to local government credits with this amount of debt outstanding. WHAT COULD MAKE THE RATING GO UP - Continued tax base expansion - Maintenance of strong financial position WHAT COULD MAKE THE RATING GO DOWN - Significant trend of declining reserves - Large increases in debt burden STRENGTHS - Growing tax base north of the Dallas/Fort Worth Metroplex - Substantial fund balance CHALLENGES - High debt burden with additional capital needs in the future - Limited operating size RECENT DEVELOPMENTS Recent developments are incorporated in the Detailed Rating Rationale. DETAILED RATING RATIONALE ECONOMY AND TAX BASE: RAPIDLY GROWING TAX BASE WITH FAVORABLE LOCATION We anticipate the city's primarily residential tax located in Collin County, approximately 40 miles north of the City of Dallas (Aal/stable). The city's tax base is growing quickly, with a five-year average growth of 6%. The fiscal 2015 full value equals $512 million, an increase of 19% from fiscal 2014. City management further reports residential housing permits through the current year are on track to meet the prior three-year average with expected population growth of 1,000 per year. We anticipate the tax base to continue demonstrating strong growth with continued issuance of residential housing permits. Preliminary conservative projections anticipate a 7% increase in tax base for fiscal 2016. Residential wealth levels are slightly above average at 108% of US median, and 115% of the state median. FINANCIAL OPERATIONS AND RESERVES: STABLE FINANCIAL PERFORMANCE WITH STRONG RESERVES Over the previous five fiscal years, the operating funds experienced only one deficit, as the city utilized existing reserves for a large park purchase. Financial operations are steady, and the fund balance equals a very strong $3.1 million, or 64.7% of fiscal 2014 operations. The city maintains a formal fund balance policy of maintaining 25% expected expenses in unassigned fund balance. The city anticipates utilizing some of the reserves for one-time expenses, but does not anticipate any major draw down on existing fund balance. The majority of operating fund revenues are driven by property taxes (55%), followed by sales tax (13.2%), and building permits (10.6%). The FY 2015 budget was passed assuming conservative property tax growth and flat sales tax. Through March 2015, sales tax collections were 15% higher than the previous year-to-date, and city officials indicate there have been no unanticipated expenses. We anticipate the city's financial performance to remain strong in the near future as the city experiences rapid growth and demand for city services. Liquidity &1 The city's combined General Fund and Debt Service Fund net cash position was a very strong $2.6 million, or 52% of operating fund revenues. DEBT AND PENSIONS: HIGH OVERALL DEBT BURDEN SUPPORTED BY ENTERPRISE REVENUES; MANAGEABLE DEBT SCHEDULE The city's overall debt burden is an elevated 17.6% of fiscal 2015 assessed value, the majority represents debt issued by Anna Independent School District. The majority of city issued debt is supported by the city's wastewater and sewer system, leaving the city's net direct burden a very manageable 1.24% of fiscal 2015 valuation. The fiscal 2014 debt payment equaled 9.4% of all operating expenses. Amortization is below average, with only 52.5% of principal retired in 10 years. Debt Structure All of the City's debt is fixed rate and is structured to be amortized out of annual revenues. Debt -Related Derivatives it The city is not party to any derivative transactions. Pensions and OPEB The city contributes to the Texas Municipal Retirement System (TMRS), a multiple -employer agent pension plan administered by the state. Budgetary pressures due to the city's participation in the plan are expected to remain minimal in the near term. Moody's adjusted net pension liability (ANPL) for the city, under our methodology for adjusting reported pension data, is $2.1 million, or 0.47 times of fiscal 2014 operating revenues including the General and Debt Service Funds. The three year average of the city's ANPL to Operating Revenues is 0.47 times. Moody's ANPL reflects certain adjustments we make to improve comparability of reported pension liabilities. The adjustments are not intended to replace the city's reported contribution information, or the reported liability information of the state-wide cost -sharing plans, but to improve comparability with other rated entities. MANAGEMENT AND GOVERNANCE: CONSERVATIVE BUDGETING ESSENTIAL FOR MODESTLY SIZED OPERATIONS Texas cities have an institutional framework score of "Aa" or strong. Cities rely on moderately stable property taxes (30% - 40%) as well as economically sensitive sales taxes (25% -35%) for their operating revenues; however cities maintain ample flexibility under the state mandated cap to raise property taxes. Expenditures are largely predictable and cities do have great flexibility in reducing expenditures given no union presence. The City of Anna budgets conservatively, using the prior year's actual sales tax collection as the future budget. The city also reserves a portion of developer fees for future park development and maintenance. KEY STATISTICS - FY 2015 Full Value: $512 million - FY 2015 Full Value Per Capita: $57,685 - 2012 ACS Median Family Income as a % of the US: 107.7% - FY 2014 Operating Fund Balance as a % of Operating Revenues: 52.0% - 5 Year Dollar Change in Fund Balance as a % of Operating Revenues: 15.6% - FY 2014 Operating Cash Balance as a % of Operating Revenues: 51.5% - 5 year Dollar Change in Cash Balance as a % of Operating Revenues - Institutional Framework: Aa - Operating History: 5 Year Average of Operating Revenues/Operating Expenditures: - Net Direct Debt/Full Value: 1.24% - Net Direct Debt/Operating Revenues: 1.24x - 3 year Average of Moody's Adjusted Net Pension Liability/Full Value: 0.47% - 3 year Average of Moody's Adjusted Net Pension Liability/Operating Revenues: 0.47x OBLIGOR PROFILE The City of Anna is located in north Collin County, approximately 40 miles north of Dallas, TX. The City's population was 8,249 as of the 2010 US Census, an increase of 573% from the prior census periods. City managements indicate the population is increasing by 1,000 people per year. LEGAL SECURITY IFA The bonds and certificates constitute direct obligations of the city, payable from the proceeds of a continuing, direct annual ad valorem tax, levied within the limits prescribed by law, against all taxable property within the city. The certificates are additionally secured by a pledge of surplus net revenues of the city's waterworks system, not to exceed $11000. USE OF PROCEEDS Not applicable PRINCIPAL METHODOLOGY The principal methodology used in this rating was US Local Government General Obligation Debt published in January 2014. Please see the Credit Policy page on www.moodys.com for a copy of this methodology. REGULATORY DISCLOSURES For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com. Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review. Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating. Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. Analysts Nathan Louder Lead Analyst Public Finance Group Moody's Investors Service James Hobbs Additional Contact Public Finance Group Moody's Investors Service Contacts Journalists: (212) 553-0376 Research Clients: (212) 553-1653 Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 USA \I MOODY'S INVESTORS SERVICE © 2015 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES ("MIS") ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT -LIKE SECURITIES, AND CREDIT RATINGS AND RESEARCH PUBLICATIONS PUBLISHED BY MOODY'S ("MOODY'S PUBLICATIONS") MAY INCLUDE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT -LIKE SECURITIES. 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Moody's SF Japan K.K. (" MSFY) is a wholly -owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively. MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000. MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements. City of Anna, Texas Financial Policies February 10, 2015 February 10, 2015 164 BUDGET POLICY Introduction: The City of Anna, Texas financial policies set forth the basic framework for the fiscal management of the City. These policies are to ensure consistency in the City's financial processes related to revenue, expenditures, purchasing, accounting, investing, fiscal management and integrity, and fund balance. The City's financial policies are intended to assist the City council and City staff in evaluating current activities and proposals for future programs. The policies are to be reviewed on an annual basis and modified to accommodate changing circumstances and conditions. The City of Anna will ensure long-standing policies that provide guidelines for current decision -making processes and future plans. Operating Budget Policies: The fiscal year of the City of Anna shall begin on October 1 of each calendar year and end on September 30 of the following calendar year. The fiscal year will also be established as the accounting and budget year. The operating budget will be balanced with current revenues and a portion of beginning resources or fund balances which will be greater than or equal to current expenditures or expenses. The City Manager's budget shall assume, for each fund, operating revenues that are equal to, or exceed operating expenditures. Annual estimates of revenues in all funds will be based on historical trends, and reasonable expectations and assumptions regarding growth, the state of the economy, and other relevant factors. A conservative approach will be observed in estimating revenues. Expenditures in all funds will be managed so as to ensure the fund's obligations are met when due. Throughout the year the Finance Department will provide regular budgetary comparisons reports to Department Directors and the City Manager. These reports will highlight Adopted Budget, Adjusted Budget, Current, Year to Date, and Previous Year expenditures and revenues. These periodic budgetary comparisons statements of revenue and expenditures will allow department directors to adequately manage their department's budget and anticipate revenues and expenditures. Expenditures within the each Fund will remain within each department's original appropriation unless an intra-fund budget transfer is approved by the City Manager. The City Manager is authorized to approve intra-fund transfers. Only the City Council may approve inter -fund transfers. Budget amendments will occur when total actual expenditures exceed budgeted expenditures in any fund(s). Budget amendments are authorized only by the City Council approved by ordinance. If at any time during a fiscal year the City Manager estimates that current year expenditures in any fund will exceed available revenues, the City Manager will submit a plan to the City Council addressing the estimated deficit including a plan of action to overcome the estimated deficit. February 10, 2015 165 Anna's budget is coordinated to identify major policy issues for the City Council to consider several months prior to the budget approval date. In this way, the Council has adequate time to evaluate decisions and ensure proper decisions are made. The budget review process will include City Council, City staff, and citizen participation through public hearings. Each department head is responsible for ensuring proper budgetary procedures are followed throughout his or her department. Investments made by the City of Anna will be in compliance with policies contained in the City of Anna Investment Policy and the Public Funds Investment Act. All investments will be evaluated upon safety, liquidity, and yield. Interest earned from investment of available funds is based on departmental ownership of the invested dollars and will be booked to the appropriate department's fund when realized. After City council adoption, the budget shall be in effect for the budget year. Final adoption of the budget by the City council shall constitute the official appropriations for the current year and shall constitute the basis of the official levy of the property tax. Following the final adoption of the budget by ordinance, the City Council shall pass an ordinance levying property taxes for the current year. Fund Balance: A key element of the financial stability of the City is to establish guidelines or "safe harbors" for fund balance. Unassigned fund balance is an important measure of economic stability. It is essential that the City maintain adequate levels of unassigned fund balance to mitigate financial risk that can occur from unforeseen revenue fluctuations, unanticipated expenditures, and similar circumstances. The fund balance also provides cash flow liquidity for the City's general operations. r� For governmental funds, it is important to distinguish between fund equity and fund balance. A fund's equity is typically the difference between its assets and liabilities. Fund balance is an accounting distinction made between the portions of fund equity that are spendable and non - spendable. The Governmental Accounting Standards Board has established 5 classifications of fund balance: Nonspendable fund balance — includes amounts that are not in a spendable form or are required to be maintained intact. Examples are inventory or permanent funds (i.e. endowment funds). Restricted fund balance — includes amounts that can be spent only for the specific purposes stipulated by external resource providers either constitutionally or through enabling legislation. Examples include grants and child safety fees. February 10, 2015 166 3. Committed fund balance — includes amounts that can be used only for the specific purposes determined by a formal action of the government's highest level of decision - making authority. Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally. a. The City Council is the City's highest level of decision -making authority and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Council at the City's Council meeting. The resolution must either be approved or rescinded, as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in the subsequent period. 4. Assigned fund balance — comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund (i.e. only funds in the capital projects fund may be used for capital projects). a. The City Council has authorized the City Manager to assign fund balance to a specific purpose as approved by this fund balance policy. S. Unassigned fund balance — is the residual classification of the general fund and includes all amounts not contained in other classifications. Unassigned amounts are technically available for any purpose. Minimum Unassigned Fund Balance The City shall set aside resources during years of growth to fund a reserve for years of decline and/or to fund capital out of current funds for projects that would have otherwise been funded through debt financing. It shall be the goal of the City to maintain an unassigned fund balance in the General Fund of 25% of total appropriations. Minimum Unrestricted Net Assets The City shall set aside resources during years of growth to fund a reserve for years of decline and/or to fund capital out of current funds for projects that would have otherwise been funded through debt financing. It shall be the goal of the City to maintain unrestricted net assets in the Utility Fund (a non -governmental type fund) of 25% of total appropriations. At the close of each fiscal year, the unencumbered balance of each appropriation shall revert to the fund from which it was appropriated. If minimum fund balance falls below the goals stated above, the City Manager will develop a strategy to initially evaluate current government wide spending to determine areas where cost February 10, 2015 167 efficiencies may be realized and implement those efficiencies. Should the analysis prove insufficient to attain the goal, a multi -year strategy will be put in place to meet the goals through a combination of cost cutting, cost recovery, and revenue enhancing strategies. Order of Expenditure of Funds When multiple categories of fund balance are available for expenditure (for example, a construction project is being funded partly by a grant, funds set aside by the City Council, and unassigned fund balance), the City will start with the most restrictive category and spend those funds first before moving down to the next category with available funds. Financial Policies: The accounts of the City are organized and operated on the basis of funds and account groups. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance -related legal and contractual provisions. The City's annual budget shall be prepared and adopted on a basis consistent with generally accepted accounting principles for all governmental and proprietary funds except the capital projects fund, which adopts project -length budgets. Account balances shall be reported on the modified accrual basis of accounting within the General Fund and other governmental funds and the accrual basis of accounting in the Utilities Fund. Quarterly Reports: Revenues actually received will be regularly compared to budgeted revenues and variances will be investigated. This process will be summarized in the quarterly budget reports prepared and submitted by the City Manager's Office. The City Manager shall submit to the City Council each quarterly financial report of the City. The report will compare budget estimates against the previous quarter's realized revenues including year to date realized revenues. The previous fiscal year's performance will also be included. General Obligation Bonds/ Debt: Anna shall have the power to borrow money on the full faith and credit of the City and to issue general obligation bonds for permanent public improvements. The City will also be allowed to borrow money for any other public purpose not prohibited by the Constitution and laws of the State of Texas, and to issue refunding bonds to refund outstanding bonds of the City previously issued. All such bonds shall be voted on and issued in conformity with the laws of the State of Texas. February 10, 2015 168 Any and all bond funds approved by the vote of the Citizens of Anna will be expended only for the purposes stated in the bond issue. The City shall also from time to time borrow money utilizing other available instruments including revenue bonds, certificates of obligation, et al. In all cases, the City shall evaluate the following prior to incurring debt obligations: • Ensure that the purpose of the debt is consistent with type of debt instrument • Where possible, match the useful life of the asset with the maturity of the debt • Review the maintenance & operations property tax rate against the debt service tax rate and ensure that no more than 35% of the total tax rate is used for debt obligations. The City will manage the length and maturity of its long-term debt in order to lower net interest cost and to maintain future flexibility by paying off debt earlier. Revenues: The City of Anna strives to maintain and enhance a diversified and stable revenue system to shelter it from fluctuations in any single revenue source. The City also pursues an aggressive policy of collecting all money due to the City. The City will continue an aggressive policy to reduce the level of delinquent taxes. For every annual budget, the City shall levy two property tax rates: maintenance/operations (M&O) and debt service (I&S). The debt service levy shall be sufficient for meeting all principal and interest obligations associated with the City's outstanding debt, less money transferred into the debt service fund from other funds and any self-sustaining debt such as revenue bonds, for the budget year. The operation and maintenance levy shall be accounted for in the General Fund. 0110 wo The City is primarily a bedroom community with a heavy reliance upon property taxes. In order to supplement property taxes, the City has and will continue to support economic development and community development to create a vibrant community with a growing sales tax base to defray the reliance upon property taxes. The City Manager shall project revenues from every source based on actual collections from the preceding years and estimated collections of the current fiscal year. There are a variety of factors that may impact revenues for an upcoming fiscal year, and the City Manager will take these into account when projecting collections. Sales tax revenue projections should be conservative due to the nature of this more volatile revenue source. Types of City Funds: • General Fund is the government's primary operating fund. February 10, 2015 169 • Debt Service Fund accounts for the resources accumulated and payments made for principal and interest on long-term obligation debt of governmental funds. • Capital Projects Fund accounts for the acquisition of capital assets or construction of major capital projects not being financed by any other fund. • Utility Fund is used to account for the City's water and wastewater operations and certain long-term debt. Fire Trust: As part of the General Fund, the City operates a Fire Trust Account. This account is used to support the following activities in the Fire Department: • Purchase of equipment • Purchase of fire apparatus • Support of Fire Department Grants, including use as matching funds Funds in the Fire Trust and held in a special account and maintained in the City's financial software. Interest earned on Fire Trust deposits are maintained in the Fire Trust. Donations to the Fire Department, including funds voluntarily contributed by developers to support the Fire Department, are deposited into the Fire Trust. Financial Statements: An annual independent audit will be completed and filed with the City Secretary within one hundred eighty (180) days from the completion of each fiscal year, the results of which shall be presented to and approved by the City Council. The financial statements to the City are to be prepared in conformity with generally accepted accounting principles (GAAP) in the United States of America as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard -setting body for establishing governmental accounting and financial reporting principles. The City shall contract with a qualified independent auditing firm on an annual basis, and shall use the same firm no more than five consecutive years. February 10, 2015 170 PURCHASING POLICY Section 1. Purpose The purpose of the Purchasing Policy and Procedures is to provide a means for the acquisition of supplies and services that are required for the operation of the City of Anna. Section 2. Authorization and Procedures The City Manager is authorized to make purchases and enter into contracts on behalf of the City if the amount does not exceed $50,000. The City Manager is also authorized to make Emergency Purchases consistent with this Purchasing Policy. Notwithstanding anything to the contrary in this Purchasing Policy or in any other City ordinance, rule, regulation or policy; except for Emergency Purchases authorized under this Policy, all purchases, transactions and contracts for expenditures regardless of amount must be expressly approved in advance by the City Council during a duly noticed public meeting if —with respect to such purchase, transaction or contract for expenditure —any City Official (as defined in the Anna Code of Ethics) is: (1) required to file a Conflicts Disclosure Statement under Chapter 176 of the Texas Local Gov't Code or the Anna Code of Ethics, as amended; or (2) is a Vendor as that term is described under Section 176.002 of the Texas Local Gov't Code, which includes acting as an agent of a Vendor. Otherwise, the following purchasing procedure is outlined in accordance with the noted dollar thresholds of expenditures. a) Expenditures for Goods or Services $.01 - $999: Department Directors are allowed to make and authorize purchases for goods or services up to $999 without seeking quotes or bids. Expenditures in this category do not require a purchase order. b) Expenditures for Goods or Services $1,000 - $2,999: Expenditures for good or services equal to or greater than $1,000 but not exceeding $2,999 may be approved at the department level by the Department Director. Department Directors should request and review at least three different quotes or bids unless the purchase is listed under the General Exemptions in Texas Local Government Code Chapter 252.022. This is an informal bid process and quotes or bids may be obtained via mail, e-mail, delivery service, telephone, facsimile, catalogues, internet websites, in-store price comparison, verbal quotes, or any other reasonable method of comparing vendor pricing. 1. Upon receipt and evaluation of the quotes or bids, the Department Director shall submit to the Finance Department a purchase order and purchasing memo summarizing the bids received and the recommended or selected vendor. 2. In lieu of requesting three different quotes or bids, and when authorized by the City Manager, Department Directors may purchase goods or services in this category through a local government purchasing cooperative or interlocal purchasing agreement of which the City of Anna is a member or is eligible to participate, and February 10, 2015 171 where the products and services to be purchased have been submitted for competitive procurement as outlined by state statute. c) Expenditures for Goods or Services $3,000 - $49,999: Expenditures for good or services equal to or greater than $3,000 but not exceeding $49,999 are also bid on an informal basis with at least three written bids or quotes required unless the purchase is listed under the General Exemptions in Texas Local Government Code Chapter 252.022. The City will contact Historically Underutilized Business as stipulated in Texas Local Government Code Chapter 252.0215 unless the purchase is listed under the General Exemptions in Texas Local Government Code Chapter 252.022. 1. All purchases in this category must be approved in advance by the City Manager and the Finance Department. Upon receipt and evaluation of the quotes or bids, the Department Direct shall submit to the City Manager a purchase order and purchasing memorandum summarizing the responses and recommending a vendor. The memorandum shall include supporting documentation for all quotes or bids and evidence the department contacted Historically Underutilized Businesses as outlined above. After authorization has been received from the City Manager, the purchase order can be submitted to the Finance Department for final approval and processing. 2. In lieu of providing three different written quotes, goods or services in this category may be purchased through a local government purchasing cooperative or interlocal purchasing agreement of which the City of Anna is a member or is eligible to participate, and where the products and services to be purchased have been submitted for competitive procurement as outlined by state statute. d) Expenditures for Goods or Services $50,000 and over: Except for Emergency Purchases authorized under this Policy, all purchases above $50,000 must be purchased under formal competitive sealed bidding rules or as otherwise permitted by the Local Government Code under Chapters 252 and 271. No bid process shall begin until approved by the City Council and City Manager. The City Council hereby selects as its designated representative the City Manager of the City of Anna, Texas to discharge on its behalf any duty it may have now or in the future with respect to any purchase or contract to determine the method(s) of purchase that will provide the best value to the City. e) Professional Services: Notwithstanding anything to the contrary in this Purchasing Policy or in any other City ordinance, rule, regulation or policy, purchases of professional services regulated by the Professional Services Procurement Act (PSPA) shall be in accordance with the requirements outlined in the PSPA as amended. f) Emergency Purchases: Notwithstanding anything to the contrary in this Purchasing Policy or in any other City ordinance, rule, regulation or policy, the City Manager is February 10, 2015 172 authorized to make or approve any emergency purchase necessary to respond to a public calamity, to preserve or protect the public health or safety of the municipality's residents, or because of unforeseen damage to public machinery, equipment, or other property; in accordance with the General Exemptions authorized in Section 252.022 of the Texas Local Government Code without seeking bids or contacting Historically Underutilized Businesses. The City Manager is authorized to declare or determine an emergency that necessitates an emergency purchase, and shall advise the City Council of any such emergency purchase in excess of $50,000. When an emergency occurs it during regular business hours and the expense exceeds the normal department approval amount, the department director shall contact the City Manager or his designee, to receive authorization for the emergency purchase. g) Responsibilities: 1. The City Manager administers this Purchasing Policy, approves purchases between $3,000 and $49,999, and oversees the competitive bidding process for all purchases in excess of $50,000 requiring approval of the City Council. 2. Department Directors prepare and review solicitations for the purchase of goods and services as outlined in this Purchasing Policy. Directors sign off on and approve all department purchases and ensure that all purchasing requirements are met. Department Directors ensure that reasonable and prudent steps are taken to assure that the best value is obtained for the goods or services to be procured. 3. The Finance Department reviews budgets to determine availability of funds for purchases. 4. Accounts Payable receives, reviews, and processes all purchase orders and payment requests. 5. Each city employee authorized to purchase supplies, equipment, or services shall be familiar with and follow this Purchasing Policy and related purchasing procedures. Section 3. Petty Cash Petty Cash is deemed appropriate when it allows for more efficient procurement of minor goods and services. Petty Cash may only be used for minor purchases of goods or services up to $50.00. An employee requesting the Petty Cash must have approval from their Department Director. Documentation for the use of Petty Cash is required at time of reimbursement, and must include an invoice or receipt for the purchase. The employee requesting reimbursement will be required to sign for receipt of the cash. February 10, 2015 173 Section 4. Purchase Orders Purchase orders are required for all purchases in excess of $999, unless otherwise indicated below. Purchase orders may be submitted for purchases less than $999 but are not required. Purchase orders shall be submitted to Accounts Payable for processing after obtaining the appropriate approval signatures and with all supporting documentation attached. Purchase orders submitted without appropriate approval or required documentation will be returned to the originating department. Subject the limits on the City Manager's authority to make purchases and enter into contracts on behalf of the City as outlined in the Section 2 of this Policy, purchase of the following items do not require the solicitation of bids or a purchase order and can be paid by completing a check request or payment authorization: • Insurance Premium Payments • Retirement System Payments (TMRS) • Debt Service Payments N6!k • Utility Service Payments • Operating Leases/Maintenance Agreements • Contracted Services (if contract was entered in accordance with this policy) • Travel and Lodging • Registration fees • Membership/Professional Association dues and fees • Postage • Subscription Services • Other similar routine purchases authorized by the City Manager February 10, 2015 174 PURCHASING CARD POLICY Purpose: The purpose of the Purchasing Card Program is to provide the City with an efficient and controllable method of making small dollar commodity, service, and travel purchases. The City will issue cards from a company that has received the State of Texas purchasing card contract or under a Co-operative purchasing agreement with another municipality within the State of Texas. The card will be primarily used in place of petty cash, small regular purchase orders, blanket purchase orders (where sales are made over-the-counter), emergency purchase orders, and all other credit cards. This card policy is not intended to replace, but rather supplement existing purchasing, travel and other City policies. Participating in the purchasing card program will be the option of the employer. Employees that are not issued a card may obtain travel advances or reimbursements Use: The card will be used for the following: 1) Any transaction that does not exceed $1,500 or the cardholder's transaction limit, whichever is less. 2) Over-the-counter type retail purchases normally made using a charge account or discontinued credit cards. 3) Travel related purchases in compliance with the City of Anna Travel Policy. 4) Any other business related purchase as long as: a. The vendor accepts credit cards, and the goods/services purchases are not covered under a City supply contract. Accounting Department will periodically update staff via email of any commodities that cannot be purchased with the purchasing card. b. All other purchases are to be made using the standard purchasing process. Transaction/Card Limits: Each individual purchasing card will have transaction and/or spending limits. The Finance Director has the ability also to limit types of purchases, place of purchase and hours of day purchases can be made on individual cards. The total purchase price as printed on the individual credit card receipt is known as the "transaction amount". The purchasing card may be limited by the merchant type, transaction amount, and monthly transaction limit. The Department Director, Finance Director, and City Manager determine limits. February 10, 2015 175 Cardholder Class *Per Transaction *Per Month Management City Manager, Department Directors $ 2,500 $ 5,000 Supervisory Division Heads, Supervisors $ 1,500 $ 3,000 Intermediate Level Users $ 500 $ 2,000 *The City Manager may set different limits for specific individuals as needed. Restrictions: Employees may NOT use the card for the following: 1. Any purchases of items for personal use 2. Cash refunds or advances 3. Any purchases of goods/services at a merchant type not considered prudent or of good judgment 4. Any transaction amount greater than the cardholder's transaction limit 5. Items under contract, unless an emergency exception is granted by the Finance Department 6. Alcohol, liquor, and tobacco products of any kind 7. Separate, sequential and component purchases or any transaction made with intent to circumvent City purchasing policy or state law 8. Any other purchase specifically excluded in the City purchasing policy Receipts: All purchases must be supported by a receipt for the purchaser. Any purchase without a receipt shall be the responsibility of the purchaser unless approved by the City Manager. Audit review: Pb' Purchases using the Anna Purchasing cards shall be reviewed for compliance with this policy by City Auditor during the annual audit process. February 10, 2015 176 ETHICS POLICY This Ethics Policy is cumulative of any provisions governing ethics or conflicts of interest under state law, the City of Anna's Home -Rule Charter, and the Anna Code of Ethics, all as amended, and in the event of any conflict between any such provisions, the most restrictive provision shall govern. This Ethics Policy will promote the objectives of protecting government integrity and facilitating the recruitment and retention of qualified ethical personnel needed by the City of Anna. Such policy is implemented by prescribing essential standards of ethical conduct without creating unnecessary obstacles to entering public service. As a public entity, the City is expected to be able to demonstrate to the public that it has spent their tax dollars wisely. All participants in the City are responsible for insuring that money is spent in accordance with the terms and conditions of all the policies of the City of Anna. Public employees must discharge their duties impartially so as to assure fair competitive access to government procurement by responsible contractors. Public officials and employees must take precautions to avoid even the appearance of impropriety, self -dealing, favoritism, or undue influence. Therefore, all persons with the responsibility of handling City of Anna monies must obtain and/or create as appropriate adequate documentation, including a clear explanation of exactly what each purchase is for. General Ethical Standards: 1. It shall be a breach of ethics to attempt to realize personal gain through public employment with the City of Anna by any conduct inconsistent with the proper discharge of the employee's duties. 2. It shall be a breach of ethics to attempt to influence any public employee of the City of Anna to breach the standards of ethical conduct set forth in this code. 3. It shall be a breach of ethics for any employee of the City of Anna to participate directly or indirectly in a procurement when the employee knows that: a. The employee or any member of the employee's immediate family has a financial interest in the procurement; b. A business or organization in which the employee, or any member of the employee's immediate family, has a financial interest pertaining to the procurement; c. Any other person, business or organization with whom the employee or any member of the employee's immediate family is negotiating or has an arrangement concerning prospective employment is involved in the procurement. 4. It shall be a breach of ethics for any employee of the City of Anna to accept, receive, or arrange for any gratuity or any offer of employment in connection with any decision, approval, denial, recommendation, preparation of any part of a program requirement or purchase request, influencing the content or any specification or procurement standard, February 10, 2015 177 0 0 rendering of advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or other particular matter pertaining to any program requirement of a contract or subcontract, or to any solicitation or proposal thereof, pending before this government. It shall be a breach of ethics for any employee of the City of Anna to approve or allow any purchase, transaction or contract for expenditure regardless of the amount unless said employee has been expressly authorized to do so in advance by the City Council during a duly noticed public meeting if —with respect to such purchase, transaction or contract for expenditure —any City Official (as defined in the Anna Code of Ethics) is: (1) required to file a Conflicts Disclosure Statement under Chapter 176 of the Texas Local Gov't Code or the Anna Code of Ethics, as amended; or (2) is a Vendor as that term is described under Section 176.002 of the Texas Local Gov't Code, which includes acting as an agent of a Vendor. It shall be a breach of ethics for any employee or former employee of the City of Anna knowingly to use confidential information for actual or anticipated personal gain, or for the actual or anticipated gain of any person. r February 10, 2015 178 BANK DEPOSITORY The City Council shall select a bank depository that will meet the needs of the City and comply with all state laws governing such depositories and the management and safeguarding of public funds. The City shall issue a request for proposals/qualifications for bank depository services every five years, or more often if necessary. However, said requirements shall not restrict the number of years, either cumulatively or consecutively, that any single bank depository shall be used. Depositories shall be selected based on a number of criteria, including, but not limited to, ability to comply with state and local statutes, customer service, hours of operation, yield on deposits, geographic proximity to City hall, services offered, etc. February 10, 2015 179 City of Anna, Texas Investment Policy ruary 20, 2015 INVESTMENT POLICY A component part of the overall financial management of the City of Anna, Texas is an effective cash management plan. Many factors determine the amount of funds on hand during any fiscal year, but these funds are an important revenue source for the City budget. It is imperative that these funds be managed in such a way as to be responsive to the public need and consistent with a conservative cash management plan. To provide this framework for effective cash management, an Investment Policy and a Statement of Investment Strategy have been prepared. Purpose: The Investment Policy is authorized by the City Council of the City of Anna in accordance with Chapter 2256, Texas Government Code, also known as the Public Funds Investment Act (PFIA). The Policy addresses the methods, procedures and practices that must be exercised to ensure effective and judicious fiscal management of City funds. All such funds will be managed within the guidelines of this Policy with the exception of pension and other deferred compensation plans that are separately managed. Bond funds, in addition to this Policy, shall be managed in accordance with their issuing documentation and all applicable state and federal law. This Policy provides a separate written investment strategy for each of the City's funds. Each investment strategy describes the investment objectives for each particular fund according to the following priorities: 1) Investment Suitability 2) Preservation and Safety of Principal 3) Liquidity 4) Marketability Prior to Maturity of each Investment 5) Diversification 6) Yield Annual Review: The Investment Policy and the Statement of Investment Strategy will be reviewed on an annual basis by the City Council. Revisions and/or amendments will be approved and documented by the City Council. A written document shall attest to the annual review and amendment adoption. Investment Objectives: The investment of funds will be governed by the following investment objectives, in order of priority: 1. Preservation and Safety of Principal February 10, 2015 181 Preservation of capital is the foremost objective of the City. Each investment transaction shall seek first to ensure that capital losses are avoided, whether they are from issuer defaults, erosion of market value, or other risks. 2. Liquidity The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements that can be reasonably anticipated. Liquidity will be achieved by matching investment maturities with forecasted cash flow requirements. 3. Public Trust All employees involved in the City's investment program shall seek to act responsibly as custodians of the public trust. All employees involved in the investment process shall avoid any transaction which might impair public confidence in the City's ability to govern effectively. 4. Yield The investment portfolio of the City shall be designed to attain a market rate of return throughout budgetary and economic cycles taking into account risk constraints and liquidity needs. Return on investment, while important, is of less importance than safety and liquidity. Authorized Investments: While the PFIA allows a wide range of eligible investments, the City has chosen to allow only the following, which are more restrictive than the PFIA: 1. Obligations of the United States government or its agencies and instrumentalities. 2. Other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, this State or the United States or their respective agencies and instrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States. 3. Direct obligations of this State or its agencies and instrumentalities. 4. Certificates of Deposit, and other forms of deposit, issued in compliance with the PFIA and insured by the FDIC, or when applicable, collateralized in accordance with this Policy and the Public Funds Collateral Act. Repurchase agreements placed and secured in compliance with the PFIA and, collateralized with a minimum market value of 102 percent of the dollar value of the transaction plus accumulated accrued interest. SEC -registered, AAAm, or its equivalent, (as rated by Fitch, Moody's or Standard & Poor's), no-load money market mutual funds. The investment objective of the fund must be to maintain a stable dollar net asset value of $1.00. The City may not invest funds under its control in an amount that exceeds 10% of total assets of any individual money February 10, 2015 182 market mutual fund. A fund prospectus shall be reviewed for compliance with this Policy prior to depositing monies. 7. State or local investment pools organized under the Interlocal Cooperation Act, operating in compliance with the PFIA and authorized by the City Council. The investment pool must be rated AAAm, or its equivalent, (as rated by Fitch, Moody's or Standard & Poor's). The investment objective of the pool must be to maintain a stable dollar net asset value. Prohibited Investments: The City is expressly prohibited from entering into options trading or futures contracts, hedging or purchasing any security that is not authorized by Texas State law, or any direct investment in asset backed or mortgage -backed securities. The City expressly prohibits the acceptance of Interest -only (IO) and Principal -only (PO) Collateralized Mortgage Obligations (CMOs) as collateral for bank deposits or repurchase agreements. No transactions may be entered for speculation. No transaction may be entered using leverage. Protection of Principal: I The City shall seek to control the risk of principal loss due to the failure of an issuer or grantor. Such default risk shall be controlled by investing only in the safest types of issuers as defined in the Policy and by collateralization as required by law. The purchase of individual securities shall be executed by "delivery versus payment" (DVP) method through the City's safekeeping agent. By so doing, City funds are not released until the City has received, through the safekeeping agent, the securities purchased. Diversification by Investment Type: When appropriate and applicable, diversification by investment type shall be maintained by ensuring an active and efficient secondary market in portfolio investments, and by controlling the market and opportunity risks associated with specific investment types. Undue concentrations of assets in a specific maturity sector shall be avoided. Bond proceeds may be invested to comply with Federal arbitrage restrictions or to facilitate arbitrage record -keeping and calculation. Diversification by Investment Maturity: In order to minimize risk of loss due to interest rate fluctuations, investment maturities will not exceed the anticipated cash flow requirements of the funds. Maturity guidelines by fund are as follows: Operating Funds Strategy: Suitability - Any investment eligible in the Investment Policy is suitable for Operating Funds. Safetv of Principal - All investments shall be of high quality with no perceived default risk. Market price fluctuations may occur. However, by managing the weighted average days to maturity for the Operating Fund's portfolio to less than 270 days and restricting the maximum allowable maturity to two years, the price volatility of the overall portfolio will be minimized. February 10, 2015 183 Marketability - Securities with active and efficient secondary markets are necessary in the event of an unanticipated cash flow requirement. Li uidi - The Operating Fund requires the greatest short-term liquidity of any of the Fund types. Cash equivalent investments will provide daily liquidity and may be utilized as a competitive yield alternative to fixed maturity investments. Diversification - Investment maturities should be staggered throughout the budget cycle to provide cash flow based on the anticipated operating needs of the City. Market cycle risk will be reduced by diversifying the appropriate maturity structure out through two years. Yield - Attaining a competitive market yield for comparable investment -types and portfolio restrictions is the desired objective. The yield of an equally weighted, rolling three-month Treasury Bill portfolio will be the minimum yield objective. Construction and Capital Improvement Funds Strategy: Suitability - Any investment eligible in the Investment Policy is suitable for Construction and Capital Improvement Funds. Safety of Principal — All investments will be of high quality with no perceived default risk. Market fluctuations may occur. However, by restricting the maximum maturity to the lesser of the anticipated cash flow requirements or the IRS defined temporary period, the market risk of the portfolio will be minimized. ME Marketability - The balancing of short-term and long-term cash flow needs requires the Construction and Capital Improvement Funds portfolio to have securities with active and efficient secondary markets. Liquidity - Construction and Capital Improvement Funds used as part of a CIP plan or scheduled repair and replacement program are reasonably predictable. However, unanticipated needs or emergencies may arise. Maintaining minimum cash equivalent investment amounts will reduce the liquidity risk of unanticipated expenditures. A singular repurchase agreement may be utilized if disbursements are allowed in the amount necessary to satisfy any required expenditures. This investment structure is commonly referred to as a flexible repurchase agreement. Diversification - Investment maturities should blend the short-term and long-term cash flow needs to provide adequate liquidity, yield enhancement and stability. A "barbell" maturity ladder may be appropriate. Yield - Attaining a competitive market yield for comparable investment -types and portfolio structures is the desired objective. The yield of an equally weighted, rolling six-month Treasury Bill portfolio will be the minimum yield objective. February 10, 2015 184 Debt Service Funds Strategy: Suitability - Any investment eligible in the Investment Policy is suitable for the Debt Service Fund. Safety of Principal - All investments shall be of high quality with no perceived default risk. Market price fluctuations may occur. However, by managing Debt Service Funds to not exceed the debt service payment schedule, the market risk of the overall portfolio will be minimized. Marketability - Securities with active and efficient secondary markets are not necessary as the event of an unanticipated cash flow requirement is not probable. Li uidi - Debt Service Funds have predictable payment schedules. Therefore, investment maturities should not exceed the anticipated cash flow requirements. Cash equivalent investments may provide a competitive yield alternative for short term Fixed maturity investments. A singular repurchase agreement may be utilized if disbursements are allowed in the amount necessary to satisfy any debt service payment. This investment structure is commonly referred to as a flexible repurchase agreement. Diversification - Market conditions influence the attractiveness of fully extending maturity to the next "unfunded" payment date. Generally, if investment rates are anticipated to decrease over time, the City is best served by locking in most investments. If the interest rates are potentially rising, then investing in shorter and larger amounts may provide advantage. At no time shall the debt service schedule be exceeded in an attempt to bolster yield. Yield - Attaining a competitive market yield for comparable investment -types and portfolio restrictions is the desired objective. The yield of an equally weighted, rolling three-month Treasury Bill portfolio shall be the minimum yield objective. Ensuring Liquidity: Liquidity shall be achieved by analyzing and anticipating cash flow requirements, by investing in securities with active secondary markets and by maintaining minimum cash equivalent investment balances. An investment may be liquidated or redeemed prior to maturity for the following reasons: 1. To meet unanticipated cash requirements 2. To re -deploy cash into other investments expected to outperform current holdings 3. To otherwise to adjust the portfolio. Depository Agreements: The City will select and designate a qualified primary bank depository in compliance with State law and the City's purchasing policy. All depository balances shall be insured or collateralized in compliance with applicable State law. The City reserves the right, in its sole discretion, to accept or reject any form of insurance or collateralization pledged towards depository deposits. Depositories will be required to sign a Depository Agreement with the City. The Agreement shall address any concerns in relation to acceptable collateral, levels of collateral, substitution and addition of collateral, and reporting February 10, 2015 185 and monitoring of collateral. The collateralized deposit portion of the Agreement shall define the City's rights to the collateral in case of default, bankruptcy, or closing and shall establish a perfected security interest in compliance with Federal and State regulations, including: • The Agreement must be in writing; • The Agreement has to be executed by the Depository and the City contemporaneously with the acquisition of the asset; • The Agreement must be approved by the Board of Directors or Designated Committee of the Depository and a copy of the meeting minutes must be delivered to the City; and • The Agreement must be part of the Depository's "official record" continuously since its execution. Safekeeping and Custody: The City shall contract with a bank or banks for the safekeeping of securities either owned by the City as part of its investment portfolio or held as collateral to secure financial institution deposits and repurchase agreements. Securities owned by the City shall be held in the City's account as evidenced by safekeeping receipts of the institution holding the securities. Safekeeping institutions shall be independent from the parties involved in the investment transaction_ Collateral will be held by a third party custodian designated by the City and pledged to the City as evidenced by safekeeping receipts of the institution with which the collateral is deposited. Original safekeeping receipts shall be obtained. Collateral may be held by a Federal Reserve Bank or branch of a Federal Reserve Bank, a Federal Home Loan Bank, or a third party bank approved by the City and eligible under State law. Competitive Environment: It is the policy of the City to provide a competitive environment for all individual investment purchases and sales, and financial institution, money market mutual fund, and local government investment pool selections_ Authority to Invest: The City Manager and Finance Director shall be the Investment Officers. The Investment Officers shall oversee and approve any deposit, withdrawal, investment, transfer, documentation, and otherwise manage City funds according to this Policy. No person may engage in an investment transaction or the management of funds except as provided under the terms of the Investment Policy, the Statement of Investment Strategy, and other operational procedures established by the City Manager. In order ensure qualified and capable investment management, within twelve (12) months after taking office or assuming duties, each Investment Officer shall attend a training session relating to his/her investment responsibilities and receive not less than ten (10) hours of instruction. On an ongoing basis, all Investment Officers shall receive not less than ten (10) hours of instruction February 10, 2015 186 in each subsequent two-year period that begins on the first day of the City's fiscal year and consists of the two consecutive fiscal years after that date. Training will be conducted by an independent source approved by the Investment Committee and must include education in investment controls, security risks, strategy risks, market risks and compliance with the Public Funds Investment Act. Prudent Investment Management: Each Investment Officer shall perform his/her duties in accordance with the adopted Investment Policy and internal procedures. In determining whether an Investment Officer has exercised prudence with respect to an investment decision, the investment of all funds over which the Investment Officer had responsibility, rather than the prudence of a single investment, shall be�� considered. Investment Officers acting in good faith and in accordance with these policies and procedures shall be relieved of personal liability. Standard of Care: The standard of care used by the City shall be the "prudent person rule" and shall be applied in the context of managing the overall portfolio within the applicable legal constraints. The PFIA states: "Investments shall be made with judgment and care, under circumstances then prevailing, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. " Standard of Ethics: Each Investment Officer shall act as custodian of the public trust avoiding any transaction which might involve a conflict of interest, the appearance of a conflict of interest, or any activity which might otherwise discourage public confidence. An Investment Officer shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair his/her ability to make impartial investment decisions. Additionally, an Investment Officer shall file with the Texas Ethics Commission and the City Council a statement disclosing any personal business relationship with an entity seeking to sell investments to the City or any relationship with the second degree by affinity or third degree of consanguinity to an individual seeking to sell investments to the City. Internal Controls: The City Manager will establish a system of internal controls that shall be designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by City staff. Controls deemed most important would include, but not be limited to: 1. Control of collusion 2. Separation of duties 3. Separating transaction authority from accounting and record -keeping 4. Custodial safekeeping 5. Avoidance of bearer -form securities 6. Clear delegation of authority February 10, 2015 187 7. Written confirmation of telephone transactions 8. Documentation of transactions As part of the annual audit, the Investment Officers shall facilitate an independent review by the City's external auditor to assure compliance with policies and procedures. Monitoring Market Value: Market value of all collateral, mutual funds, pools, and securities will be monitored periodically and obtained from a reputable and independent source. Effect of Loss of Rating: All prudent measures will be taken to liquidate an investment that is downgraded to less than the required minimum rating. At least quarterly, the City shall monitor the rating of all investments, as applicable. Exemption for Existing Investments: The City is not required to liquidate investments authorized at the time of purchase. Performance: The City's investment portfolio shall be designed to obtain a market rate of return on investments consistent with risk constraints and expected cash flow of the City. Weighted average yield to maturity shall be the performance measurement standard. V -1 IV Authorized Broker/Dealers: The Investment Committee shall, at least annually, review, revise, and adopt a list of qualified broker/dealers authorized to engage in securities transactions with the City. Authorized firms include primary dealers or secondary dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule). Investment Policy Certification: All investment providers, including financial institutions, broker/dealers, money market mutual funds, and local government investment pools, must sign a certification acknowledging that the organization has received and reviewed the City's Investment Policy and that reasonable procedures and controls have been implemented to preclude investment transactions that are not authorized by the City's Policy. Investment Committee: An Investment Committee comprised of the City Manager, City Finance Director and the Finance/Budget Analyst will meet on a periodic basis. The Committee shall monitor the investment activities; assist in the development of investment policies, strategies and procedures; and annually review and approve the City's broker/dealers and independent training sources. Reporting: The Investment Officers shall prepare an investment report at least quarterly in compliance with the PFIA. This report will be prepared in a manner that will allow the City to ascertain whether February 10, 2015 188 investment activities during the reporting period have conformed to this Policy. The report will be provided to the City Council. In conjunction with the annual audit, the external auditor will perform a formal review of the quarterly reports with the results reported to the City Council. February 10, 2015 189 CITY OF ANNA, TEXAS HOME -RULE CHARTER Originally adopted by vote of the people of the City of Anna, Texas on May 7, 2005 Amended on November 4, 2008 and May 12, 2012 Codified as: PART I of The Anna City Code of Ordinances 190 ARTICLE 7-FINANCIAL PROCEDURES SECTION 7.01 Fiscal Year The fiscal year of the City begins on the first day of October and ends on the last day of September on the next succeeding year. Such fiscal year also constitutes the budget and accounting year. SECTION 7.02 Submission of Budget and Budget Message On or before the 15th day of August of the fiscal year, the City Manager must submit to the City Council a budget for the ensuing fiscal year and an accompanying budget message. SECTION 7.03 Budget Message The City Manager's message must explain the budget both in fiscal terms and in terms of the work programs. It must outline the proposed financial policies of the City for the ensuing fiscal year, describe the important features of the budget, indicate any major changes from the current year in financial policies, expenditures, and revenues together with the reasons for such changes, summarize the City's debt position and include such other material as the City Manager deems desirable. SECTION 7.04 Budget a Public Record The budget and all supporting schedules must be filed with the person performing the duties of City Secretary when submitted to the City Council and must be open to public inspection by anyone interested. SECTION 7.05 Public Hearing on Budget At the City Council meeting when the budget is submitted, the City Council must name the date and place of a public hearing and have published in the official newspaper of the City, at least twice, the time and place, which will be not less than ten days nor more than 30 days after the date of notice. At this hearing, interested citizens may express their opinions concerning items of expenditures, giving their reasons for wishing to increase or decrease any items of expense. SECTION 7.06 Proceeding on Adoption of Budget After public hearing, the City Council must analyze the budget, making any additions or deletions which they feel appropriate, and must, at least ten days before the beginning of the next fiscal year, adopt the budget by the affirmative vote of a majority of the full membership of the City Council. Should the City Council take no final action on or before such day, the current budget will continue to be in force on a month -to -month basis until a new budget is adopted. SECTION 7.07 Budget, Appropriation and Amount to be Raised by Taxation On final adoption, the budget is in effect for the budget year. Final adoption of the budget by the City Council constitutes the official appropriations as proposed by expenditures for the current year and 191 constitutes the basis of official levy of the property tax as the amount of tax to be assessed and collected for the corresponding tax year. Estimated expenditures will in no case exceed proposed revenue plus cash on hand. Unused appropriations may be transferred to any item required for the same general purpose. SECTION 7.08 Contingent Appropriation Provision may be made in the annual budget and in the appropriation ordinance for a contingent appropriation in an amount not more than three percent of the total general fund expenditures, to be used in case of unforeseen items of expenditures. This contingent appropriation must apply to current operating expenses and must not include any reserve funds of the City. Such contingent appropriation is under the control of the City Manager and may be distributed by him only after prior approval by the City Council. The proceeds of the contingent appropriation may be disbursed only by transfer to other departmental appropriation, the spending of which must be charged to the departments or activities for which the appropriations are made. SECTION 7.09 Amending the Budget Under conditions which may arise and which could not reasonably have been foreseen in the normal process of planning the budget, the City Council may, by the affirmative vote of a majority of the full membership of the City Council, amend or change the budget to provide for any additional expense in which the general welfare of the citizenry is involved. These amendments must be by ordinance, and must become an attachment to the annual budget. SECTION 7.10 Certification; Copies Made Available A copy of the budget, as finally adopted, must be filed with the person performing the duties of City Secretary and such other places required by state law or as the City Council may designate. The final budget must be printed or otherwise reproduced and sufficient copies made available upon request for the use of all offices, agencies, interested persons and civic organizations. SECTION 7.11 Capital Program The City Manager must submit a five-year capital program as an attachment to the annual budget. The program as submitted must include: (1) a clear summary of its contents; (2) a list of all capital improvements which are proposed to be undertaken during the five fiscal 14 years succeeding the budget year, with appropriate supporting information as to the necessity 4C for such improvements; (3) cost estimates, method of financing, and recommended time schedules for each improvement; and (4) the estimated annual cost of operating and maintaining the facilities to be constructed or acquired. The above information may be revised and extended each year with regard to capital improvements still pending or in the process of construction or acquisition. 192 SECTION 7.12 Defect Does Not Invalidate the Tax Levy Errors or defects in the form or preparation of the budget or the failure to perform any procedural requirements do not nullify the tax levy or the tax rate. SECTION 7.13 Lapse of Appropriations Every appropriation, except an appropriation for a capital expenditure, lapses at the close of the fiscal year to the extent that it has not been expended or encumbered. An appropriation for a capital expenditure continues in force until the purpose for which it was made has been accomplished or abandoned. The purpose of any such appropriation is deemed abandoned if three years pass without any disbursement from or encumbrance of the appropriation. Any funds not expended, disbursed or encumbered will be deemed excess funds. SECTION 7.14 Borrowing (a) The City has the right and power, except as prohibited by law or this Charter, to borrow money by whatever method it may deem to be in the public interest. (b) General Obligation Bonds. 1 The City has the power to borrow money on the credit of the City and to issue general obligation bonds for permanent public improvements or any other public purpose not prohibited by law and this Charter, and to issue refunding bonds to refund outstanding bonds previously issued. All such bonds must be issued in conformity with state and federal law and must be used only for purposes for which they were issued. Any bonds issued under the provisions of this Section may not be issued without an election. The City Council must prescribe the procedure for calling and holding such elections, must define the voting precincts and must provide for the return and canvass of the ballots cast at such elections. 3 If at such elections a majority of the vote is in favor of creating such a debt or refunding outstanding valid bonds of the City, it will be lawful for the City Council to issue bonds as proposed in the ordinance submitting same. However, if a majority of the votes are against the creation of such debt or refunding such bonds, the City Council is without authority to issue the bonds. In all cases when the City Council orders an election for the issuance of bonds of the City, it must at the same time submit the question of whether or not a tax may be levied upon the property within the City for the purpose of paying the interest on the bonds and to create a sinking fund for their redemption. (c) Revenue Bonds. 1 The City has the power to borrow money for the purpose of constructing, purchasing, improving, extending or repairing of public utilities, or any other self-liquidating municipal function not prohibited by state or federal law. 193 2 With an affirmative vote of at least two-thirds of the Council Members present and having authority to vote, the City has the power to issue revenue bonds and to evidence the obligation created thereby. 3 Such bonds are a charge upon and payable from all or any part of the properties pledged or from the income gained from the properties, or both. The holders of the revenue bonds are not entitled to demand payment on the bonds out of monies raised or to be raised by taxation. 4 All such bonds must be issued in conformity with state and federal law and must be used only for the purpose for which they were issued. (d) Emergency Funding. In any budget year, the City Council may, by affirmative vote of at least two-thirds of the Council Members present and having authority to vote, authorize the borrowing of money. Notes may be issued which are repayable not later than the end of the current fiscal year. SECTION 7.15 Purchasing (a) The City Council may by ordinance, give the City Manager general authority to contract for expenditure without further approval of the City Council for all budgeted items not exceeding limits set by the City Council within the ordinance. (b) All contracts for expenditures or purchases involving more than the limits must be expressly approved in advance by the City Council. All contracts or purchases involving more than the limits set by the City Council must be awarded by the City Council in accordance with state and federal law. (c) Emergency contracts as authorized by law and this Charter may be negotiated by the City Council or City Manager if given authority by the City Council, without competitive bidding, and in accordance with state and federal law. Such emergency may be declared by the City Manager if approved by the City Council, or may be declared by the City Council. SECTION 7.16 Administration of Budget (a) No payment may be made or obligation incurred against any allotment or appropriation except in accordance with appropriations duly made, unless the City Manager, or the City Manager's designee, first certifies that there is a sufficient unencumbered balance in the budget and that sufficient budget funds are or will be available to cover the claim or meet the obligation when it becomes due and payable. (b) Any authorization of payment or incurring of obligation in violation of Subsection (a) of this Section is void and any payment so made illegal. (c) This prohibition does not prevent the making or authorizing of payments, or making of contracts for capital improvements to be financed wholly or partly by the issuance of bonds, time warrants, certificates of indebtedness, or certificates of obligation, or to prevent the making of 194 any contract or lease providing for payments beyond the end of the fiscal year, providing that such action is made or approved by ordinance. (d) The City Manager must submit to the City Council each month a report covering the revenues and expenditures of the City in such form as requested by the City Council. SECTION 7.17 Depository All monies received by any person, department or agency of the City for or in connection with the affairs of the City must be deposited promptly in the City depository or depositories. The City depositories must be designated by the City Council in accordance with such regulations and subject to the requirements as to security for deposits and interest thereon as may be established by ordinance and law. Procedures for withdrawal of money or the disbursement of funds from the City depositories may be prescribed by ordinance. SECTION 7.18 Independent Audit When deemed necessary by the City Council, it may call —and at the close of each fiscal year —must call for an independent audit of all accounts of the City by a certified public accountant. No more than five consecutive annual audits may be completed by the same firm. The certified public accountant selected may have no personal interest, directly or indirectly, in the financial affairs of the City or any of its officers. The report of audit, with the auditor's recommendations, will be made to the City Council. Upon completion of the audit, the summary must be published immediately in the official newspaper of the City and copies of the audit placed on file in the office of the person performing the duties of City Secretary, as a public record. SECTION 7.19 Power to Tax (a) The City has the power to levy, assess and collect taxes of every character and type for any municipal purpose not prohibited by state or federal law. (b) The City has the power to grant tax exemptions in accordance with the laws of the State of Texas. SECTION 7.20 Office of Tax Collector There must be an office of taxation to collect taxes, the head of which is the City Tax Collector. The City Council may contract for such services. SECTION 7.21 Taxes; When Due and Payable (a) All taxes due in the City are payable at the office of the City Tax Collector, or at such location or locations as may be designated by the City Council, and may be paid at any time after the tax rolls for the year have been completed and approved. Taxes for each year must be paid before February 1 of the next succeeding year, and all such taxes not paid before that date are delinquent, and subject to penalty and interest as the City Council may provide by ordinance. The City Council may provide discounts for the payment of taxes before January 1 in amounts not to exceed those established by state law. 195 (b) Failure to levy and assess taxes through omission in preparing the appraisal rolls does not relieve the person, firm or corporation so omitted from obligation to pay such current or past due taxes as shown to be payable by recheck of the rolls and receipts for the years in question, omitting penalty and interest. SECTION 7.22 Tax Liens, Liabilities and Suits (a) All taxable property located in the City on January 1 of each year is charged from that date with a special lien in favor of the City for the taxes due. All persons purchasing any such property on or after January 1 in any year take the property subject to the liens provided above. In addition to these liens, on January 1 of any year, the owner of property subject to taxation by the City is personally liable for the taxes due for that year. (b) The City has the power to sue for and recover personal judgment for taxes without foreclosure, or to foreclose its lien or liens, or to recover both personal judgment and foreclosure. In any such suit where it appears that the description of any property in the City appraisal rolls is insufficient to identify such property, the City has the right to plead a good description of the property to be assessed, to prove the same, and to have its judgment foreclosing the tax lien or for personal judgment against the owners for such taxes. I= 196 CITY OF ANNA, TEXAS Item No. 7 City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: Clayton Fulton Exhibits: Yes AGENDA SUBJECT: Consider/Discuss/Action regarding adopting an ordinance adopting the 2015 Tax Rate. SUMMARY: The FY 16 budget can be funded by adopting a tax rate of $0.639 cents per $100 valuation, which is lower than the tax rate adopted last year. Of the total tax rate, $0.532341 cents are dedicated to the general fund maintenance and operations (M&O) and $0.106659 cents are dedicated for the payment of general fund debt obligations, or interest and sinking (I&S). State regulations call for specific language to be included in the ordinance and motion adopting the tax rate. The language in the motion is meant to reflect the change in the total tax rate while the language in the section 5 of the ordinance only reflects the change in the M&O portion of the rate. The M&O rate exceeds the effective rate by 8%; however, the proposed rate for 2015 is lower than the adopted rate for 2014 resulting in a $13.49 decrease on a $100,000 home. As the proposed rate exceeds the effective rate of $0.586703 the motion must be made in the following form: "I move that the property tax rate be increased by the adoption of a tax rate of $0.639000, which is effectively an 8.91% percent increase in the tax rate." In addition to statutory requirements for the language of the motion to adopt the tax rate, Senate Bill 1760 was recently passed during the latest legislative session which requires 60% of the council to vote in favor of a tax rate that exceeds the effective rate. This means that 5 members of the council must vote in favor of the motion to pass the $0.639 rate. STAFF RECOMMENDATION: Approval of the attached Ordinance adopting a tax rate of $0.639 cents per $100 in valuation for the 2015 tax year. CITY OF ANNA, TEXAS Ordinance No. (FY 2015 Tax Rate) AN ORDINANCE LEVYING PROPERTY TAXES FOR USE AND SUPPORT OF THE MUNICIPAL GOVERNMENT OF THE CITY OF ANNA FOR THE 2014-2015 FISCAL YEAR; PROVIDING FOR AN INTEREST AND SINKING FUND FOR ALL OUTSTANDING DEBT OF THE CITY OF ANNA; PROVIDING FOR APPORTIONING EACH LEVY FOR THE SPECIFIC PURPOSES; AND, PROVIDING WHEN TAXES SHALL BECOME DUE AND WHEN SAME SHALL BECOME DELINQUENT IF NOT PAID. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS. a 1W SECTION 1. That there is hereby levied and there shall be collected for the use and support of the municipal government of the City of Anna, and to provide an Interest and Sinking fund for the 2015-2016 fiscal year, upon all property, real, personal and mixed, within the corporate limits of said City subject to taxation, a tax of $0.639000 on each $100.00 valuation of property, said tax being so levied and apportioned to the specific purposes here set forth: a. For the maintenance and support of the general government (General Fund), $0.532341 on each $100.00 valuation of property. b. For the purpose of creating an Interest and Sinking fund to pay the interest and principal maturities of all outstanding debt of the City of Anna, not otherwise provided for, a tax of $0.106659 on each $100.00 valuation of property. SECTION 2. That taxes levied under this ordinance shall be due October 1, 2015 and if not paid on or before January 31, 2016 shall immediately become delinquent. SECTION 3. All taxes shall become a lien upon the property against which assessed, and the city assessor and collector of the City of Anna is hereby authorized and empowered to enforce the collection of such taxes according to the Constitution and laws of the State of Texas and ordinances of the City of Anna shall, by virtue of the tax rolls, fix and establish a lien by levying upon such property, whether real or personal, for the payment of said taxes, penalty and interest, and, the interest and penalty collected from such delinquent taxes shall be apportioned to the general funds of the City of Anna. All delinquent taxes shall bear interest from date of delinquency at the rate as prescribed by state law. SECTION 4. THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE. SECTION 5. THE TAX RATE WILL EFFECTIVELY BE RAISED BY 8.00 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMLATELY $-13.49 SECTION 6. That this ordinance shall take effect and be in force from and after its passage. PASSED AND ADOPTED by record roll call vote on September, 2015. Ayes Nays ATTESTED: City Secretary Carrie L. Smith Ordinance No. _ FY 2015 Tax Rate PPRSOVED: Mayor Mik4WCrist i IN --- - CITY OF ANNA, TEXAS Item No. 8 City Secretary's use only City Council Agenda Staff Report Date: 9/2/2015 Staff Contact: Clayton Fulton Exhibits: Yes AGENDA SUBJECT: Consider/Discuss/Action regarding a Resolution to ratify the property tax revenue increase reflected in the City of Anna FY 2015-2016 Budget SUMMARY: A separate vote of the City Council is required to ratify the adoption of the FY 2014 Budget if the Budget will raise more revenue from property taxes than the previous year. By adopting the proposed rate of $0.639, which is lower than the tax rate adopted last year, the total amount of revenue generated from property taxes will increase by $561,973, or 16.89%, over last year. Of that amount, $279,418 is tax revenue to be raised from new property added to the tax roll this year. STAFF RECOMMENDATION: Approve the attached resolution. CITY OF ANNA, TEXAS RESOLUTION NO. (FY 2015-2016 Tax Rate Ratification) A RESOLUTION OF THE CITY OF ANNA, TEXAS ACKNOWLEDGING AND RATIFYING THAT THE ADOPTION OF THE FISCAL YEAR 2015-2016 ANNUAL BUDGET WILL REQUIRE RAISING MORE REVENUE FROM PROPERTY TAXES THAN IN THE PREVIOUS FISCAL YEAR WHEREAS, the City Council (the "Council") of the City of Anna wishes to comply with Section 102.007 of the Local Government Code; and WHEREAS, a Section 102.007 of the Local Government Code requires a separate vote of the Council if the budget will require raising more revenue from property taxes than the previous fiscal year; and, WHEREAS, this resolution satisfies the aforementioned requirement; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. Recitals Incorporated. The facts and recitals above are incorporated herein as if set forth in full for all purposes. Section 2. Acknowledgement and Ratification of The Fiscal Year 2015-2016 annual budget will raise more revenue from property taxes than the previous fiscal year's budget by $561,973 or 16.89%, and of that amount $279,418 is tax revenue to be raised from new property added to the tax roll this year. PASSED AND APPROVED by the City Council of the City of Anna, Texas this the day of , 2015. ATTESTED: APPROVED: City Secretary Carrie L. Smith Mayor Mike Crist RESOLUTION NO. (FY 2015-2016 Tax Rate Ratification) CITY OF ANNA. TEXAS Item No. 9a City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: Clayton Fulton Exhibits: No AGENDA SUBJECT: For the City Council to hear public comment regarding an ordinance amending Part IV, Article 7, Section 8, of the Anna City Code regarding water and sanitary sewer service rates SUMMARY: Click here to enter text. STAFF RECOMMENDATION: Click here to enter text. CITY OF ANNA. TEXAS Item No. 9b City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: Clayton Fulton Exhibits: Yes AGENDA SUBJECT: Consider/Discuss/Action regarding an ordinance amending Part IV, Article 7, Section 8, of the Anna City Code regarding water and sanitary sewer service rates SUMMARY: As discussed during the July 28, 2015 Council Workshop Session, Bob McLain from McLain from McLain Decision Support Systems presented his findings from a utility rate study. Among other things, the report found that current water rates could not sustain the cost of providing water service to our water customers. The report presented a scenario with a 9% across the board increase to our utility rates. This will result in a $6.94 increase to the average utility bill. The primary factors contributing to this rate increase include: 1) water conservation programs leading to a 23.2% decline over the past few years in the average amount of water sold on a per customer basis; 2) a significant increase in the amount budgeted for NTMWD wastewater transport and treatment charges; and 3) an increase in the amount budgeted to purchase treated surface water from NTMWD through a contract with the Greater Texoma Utility Authority (GTUA). STAFF RECOMMENDATION: Approve the attached ordinance. CITY OF ANNA, TEXAS ORDINANCE NO. (Utility Billing Fees Amended) AN ORDINANCE OF THE CITY OF ANNA, TEXAS, AMENDING THE ANNA CITY CODE OF ORDINANCES REGARDING UTILITY BILLING CHARGES AND METER SET FEES BY AMENDING PART IV, ARTICLE 7, SECTION 8; PROVIDING FOR SAVINGS, SEVERABILITY, AND REPEALING CLAUSES; PROVIDING FOR AN EFFECTIVE DATE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF. WHEREAS, the City of Anna, Texas ("the City") has previously adopted ordinances, rules and regulations governing water, sewer and other utility billing rates, payments, and related procedures; and r WHEREAS, the City of Anna, Texas City Council ("the City Council") has investigated and determined that it would be advantageous and beneficial to the City and its citizens to amend Part IV, Schedule of Fees, Article 7, Section 8 of The Anna City Code of Ordinances ("Anna Code") with regard to utility billing charges; NOW, THEREFORE, BE IT ORDAINED 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. Amendments. In accordance with Part II, Article 1, Section 9 of the Anna Code, the City Council hereby amends Part IV, Schedule of Fees, Article 7, Section 8 (Water and Sanitary Sewer Service Rates) of the Anna Code, as follows: Section 8. Water and Sanitary Sewer Service Rates (a) Minimum Charges will be applied to both water and sewer service as follows: Meter Size Minimum Charge Institutional Customers All Other Customers (Ord. No.510-2010, adopted (Ord. No. 510-2010, adopted 91712010; Ord. No. 636-2013 91712010; Ord. No. 636-2013 adopted 911012013) adopted 911012013) 00.625" x 1/4" $�8 24.94 $2� 22 24.94 1" $55-96 55.55 $55-96 55.55 1 1/2" $97 76 106.56 $97 765 106.56 2" $153-92 167.77 $152 92 167.77 3" $2-84-85 310.61 $224-85 310.61 4" $472.16 514.65 $472.16 514.65 6" $940-16 1,024.77 $940.16 1,024.77 8" $1 ,976-a 6 2,045.01 $ 6 2,045.01 101, $4,684-46 5,105.73 $4,684-46 5,105.73 (b) Inside City Water Rates -All Customers. Each Customer shall pay the minimum charge specified in (a) above for the first 2,000 gallons of water usage plus the following additional user charges: 2,000 - 10,000 gallons $5-.47- 5.96 per 1,000 gallons 10,001 - 15,000 gallons $6-54 7.46 per 1,000 gallons 15,001 - 20,000 gallons $9-24 8.95 per 1,000 gallons 20,001 + $10.94 11.92 per 1,000 gallons (c) Outside City Water Rates - Residential Customers. Each Customer shall pay 1 '/4 times the rate charged to Customers inside the City limits. (Ord. No. 433-2009, adopted 212412009) (d) Outside City Water Rates - Commercial Customers. Each Customer shall pay 1 '/4 times the rate charged to Customers inside the City limits. (Ord. No. 433-2009, adopted 212412009) (e) Inside City Sanitary Sewer Rates - Residential Customers. Each Customer shall pay the minimum charge specified in (a) above for the first 2,000 gallons of water usage plus a user charge of $4-.52 4.93 for each additional 1,000 gallons of water used, except that the maximum monthly charge shall not exceed $84 24 91.82 for sanitary sewer service charges. (f) Inside City Sanitary Sewer Rates - Commercial and Industrial Customers. Each Customer shall pay the minimum charge specified in (a) above for the first 2,000 gallons of water usage plus a user charge of $4-.52 4.93 for each additional 1,000 gallons of water used. Outside City Sanitary Sewer Rates - Residential Customers. ORDINANCE NO. 2 (Utility Billing Fees Amended) Each Customer shall pay 1 1/2 times the rate charged to Customers inside the City limits, except that the maximum monthly charge shall not exceed $fig 137.73 for sanitary sewer service charges. (h) Outside City Sanitary Sewer Rates — Commercial and Industrial Customers. Each Customer shall pay 1 1/2 times the rate charged to Customers inside the City limits. (i) North Texas Groundwater Conservation District Water Production Fee. In addition to the Minimum Charges and Rates for water usage that are set forth in this section, each customer shall pay a water production fee equal to $0.15 per 1,000 gallons of water usage. (Ord. No. 563-2011, adopted 1012512011) 0) Customer Monthly Variable Rate Component Charge In addition to the Minimum Charges and Rates for water usage that are set forth in this Section 8 circumstances may arise under which each customer must pay a Customer Monthly Variable Rate Component Charge. The Customer Monthly Variable Rate Component Charge shall be applied when and to the extent required by the Amended and Restated Potable Water Supply Contract between the City of Anna and the Greater Texoma Utility Authority made and entered into November 23, 2004 and shall be calculated as described in City of Anna Ordinance No. 238-2005 adopted on November 22, 2005. (k) Total Monthly Usage Charge OW The Total Monthly Usage Charge stated on the customer's bill for system services shall be paid by the customer in accordance with the terms stated in such bill. (Ord. No. 407-2008, adopted 9/23/2008, Ord. No. 429-2009, adopted 1/27/2009; Ord. No. 476-2009, adopted 11-10-09, Ord. No. 563-2011, adopted 1012512011) Cross Reference: Part ll, Article 49, Section 7 Section 3. 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. 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, sentence, clause, or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, and phrases be declared unconstitutional or invalid ORDINANCE NO. 3 (Utility Billing Fees Amended) Section 4. Publication of the Caption Hereof and Effective Date. This ordinance shall be in full force and effective on October 1, 2015 and upon the posting and/or publication, if required by law, of its caption and the City Secretary is hereby directed to implement such posting and/or publication. PASSED by the City Council of the City of Anna, Texas, this the 8th day of September, 2015. ATTESTED: City Secretary Carrie L. Smith ORDINANCE NO. (Utility Billing Fees Amended) APPROVED: Mayor Mike Crist :V 0 CITY OF ANNA, TEXAS Item No. 10 City Secretary's use only City Council Agenda Staff Report Date: 9/8/2015 Staff Contact: Maurice Schwanke Exhibits: Yes AGENDA SUBJECT: Consider/Discuss/Action regarding a Resolution approving a Development Agreement with Texas New Mexico Power Company. SUMMARY: Texas New Mexico Power Company is purchasing a 0.2726 acre tract out of a 48.43 acre tract of land in the Hiram Brinlee Survey Abstract number 30 located north of the Sam Rayburn Memorial Highway and east of an TXU electrical transmission line. The purchase is for the installation of a tap substation to facilitate connection to an existing overhead power lines located on or immediately adjacent to the property. According to the Anna's Subdivision ordinance a subdivision plat would be required for the property which would entail the provision of adequate sized water lines with appropriate fire protection. This area is in the rural portion of Anna's ETJ where significant water lines do not exist however, the connection to the power facility is necessary to serve the general community. This Development Agreement agrees to exempt this tract regarding the division of the Property from its parent tract from the Subdivision Regulations as outlined in Part III -A of the Anna City Code of Ordinances with various stipulations regarding future development. STAFF RECOMMENDATION: Approval of Resolution Agreement CITY OF ANNA, TEXAS RESOLUTION NO. (Agreement with Texas New Mexico Power Co.) A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A DEVELOPMENT AGREEMENT BETWEEN TEXAS NEW MEXICO POWER COMPANY AND THE CITY OF ANNA, TEXAS WHEREAS, the City Council has determined that the Agreement with Texas New Mexico Power Company to provide a tap substation to facilitate connection to existing overhead power lines located on or immediately adjacent to the Property, consistent with the Site Plan attached hereto as Exhibit B. that will benefit the residents of both the Count and the City of Anna, Texas (the "City"); and WHEREAS, the City Council has determined that it is in the best interest of the City and its citizens to authorize, ratify and approve the City Manager's execution of said Agreement; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. The recitals set forth above are incorporated rein for all purposes as if set forth in full. Section 2. pill% The City of Anna City Council hereby approves the Agreement, attached hereto as EXHIBIT 1, incorporated herein for all purposes and authorizes the City Manager to execute same on its behalf. PASSED AND APPROVED by the City Council of the City of Anna, Texas, on this 8t" day of September, 2015. ATTEST: APPROVED: Mayor Mike Crist STATE OF TEXAS ) COUNTY OF COLLIN ) CHAPTER 212.172 TEXAS LOCAL GOVERNMENT CODE DEVELOPMENT AGREEMENT This Agreement is entered into pursuant to Section 212.172 of the Texas Local Government Code by and between the City of Anna, Texas (the "City") and the undersigned property owner(s) (the "Owner"). The term "Owner" includes all owners of the Property. WHEREAS, the Owner owns a parcel of real property (the "Property") in Collin County, Texas, described as a 0.2726 acre tract of land located in the Hiram Brinlee Survey, Abstract No. 30; and as shown in the attached Exhibit "A"; and WHEREAS, the Owner desires to use the Property for the purpose described herein, and J WHEREAS, this Agreement is entered into pursuant to Sections 212.172 of the Texas Local Government Code, in order to address the desires of the Owner and the procedures of the City; and WHEREAS, the Owner and the City acknowledge that this Agreement is binding upon the City and the Owner and their respective successors and assigns for the term (defined below) of this Agreement; and WHEREAS, this Developmen ment is to be recorded in the Real Property Records of Collin Count NOW, THEREFORE, in consi eration cf the mutual covenants contained herein, the parties hereto agree as follows: Section 1. The City agrees to exempt the division of the Property from its parent tract from the Subdivision Regulations outlined in Part III -A of the Anna City Code of Ordinances. Section 2. Owner covenants and agrees that the Property shall not be used for any use other than for a tap substation to facilitate connection to existing overhead power lines located on or immediately adjacent to the Property, consistent with the Site Plan attached hereto as Exhibit B. Section 3. Other than the proposed Control Building shown on Exhibit B, the Owner covenants and agrees not to construct, or allow to be constructed, any buildings on the Property that would require a building permit if the Property were in the city limits, until the Property has been annexed into, and zoned by, the City. Owner covenants and agrees to comply with all applicable building codes of the City that would apply to the construction of the proposed Control Building if the Property were in the city limits. Page I 1 Section 4. Other than the Site Plan attached hereto as Exhibit B and any building permit required for construction of the Control Building, Owner covenants and agrees that the Owner will not file any type of subdivision plat, building permit, or related development document for the Property with Collin County or the City until the Property has been annexed into, and zoned by, the City. Section 5. The Owner acknowledges and agrees that the City may annex the Wbpert7 at any time it deems appropriate, consistent with applicable State laws. Owner agrees that any such annexation shall be voluntary and the Owner hereby consents to such annexation as though a petition for such annexation had been tendered by the Owner. If annexation proceedings begin pursuant to this Section, the Owner acknowledges that this Agreement serves as an exception to Local Government Code Section 43.052„ requiring a municipality to use certain statutory procedures under an annexation plan. Furthermore, the Owner hereby waives any and all vested rights and claims that they may have under Section 43.002(a)(2) and Chapter 245 of the Texas Local Government Code that would otherwise exist by virtue of any actions Owner has taken in violation this Agreement. The Owner further agrees that the Owner will not in any manner contest any annexation of the Property initiated by the City under this Agreement. Section 6. Property annexed pursuant to this Agreement shall be temporarily classified as SF-E Single Family Residential — Large Lot District until permanent zoning is established by the City Council pursuant to the City's Code of Ordinances, pending determination of the Property's permanent zoning in accordance with the provisions of applicable law and the City's Code Ordinances. Ask., MWF 74 Section 7. Owner acknowledges and agrees thalfTeFCity is authorized to enforce all of the City's regulations and planning authority that do not materially interfere with the use of the Property authorized under this Agreement. The City states and specifically reserves its authority pursuant to Chapter 251 of the Texas Local Government Code to exercise eminent domain over property that is subject to a Chapter 212 development agreement. Section 8. The term of this Agreement (the "Term") is forty-five years from the date that the City Manager's signature to this Agreement is acknowledged by a public notary, or, if longer, the maximum term allowed by law. Section 9. The Owner acknowledges that each and every owner of the Property must sign this Agreement in order for the Agreement to take full effect, and the Owner who signs this Agreement covenants and agrees, jointly and severally, to indemnify, hold harmless, and defend the City against any and all legal claims, by any person claiming an ownership interest in the Property who has not signed the Agreement, arising in any way from the City's reliance on this Agreement. Section 10. Any person who sells or conveys any portion of the Property shall, prior to such sale or conveyance, gives written notice of this Agreement to the prospective purchaser or grantee, and shall give written notice of the sale or conveyance to the City. A copy of any notice required by this section shall be forwarded to the City at the following address: Page 12 City of Anna Attn: City Manager 111 N. Powell Parkway Anna, Texas 75409 Section 11. This Agreement shall run with the Property and be recorded in the property records of Collin County, Texas. Section 12. If a court of competent jurisdiction determines that any covenant of this Agreement is void or unenforceable, including the covenants regarding involuntary annexation, then the remainder of this Agreement shall remain in full force' andnd effect. Section 13. This Agreement may be enforced by any Owner or the "City by any proceeding at law or in equity. Failure to do so shall not be deemed a waiver to force the provisions of this Agreement thereafter. A0001, Section 14. No subsequent change in the law regarding annexation shall affect the enforceability of this Agreement or the City's ability to annex the properties covered herein pursuant to the terms of this Agreement. Section 15. Exclusive jurisdiction and venue dispu ems arising out of or related in any way to this Agreement shall be in Collin County, Texas. = Section 16. This Agreement may be separately executed in individual counterparts and, upon execution, shall constitute one and same instrument. Page 13 Entered into this day of , 2015. Philip Sanders This instrument was acknowledged before me on the _day of 2015, by - - _ A Page 14 02015 Westwood Professional Services, Inc. Exhibit A Proposed Variable Width Transmission Line Easement 119,248 sq. ft. or 2.738 acres W Line State Highway 121 R/W Point of Commencement TXDOT Point of Beginning Wood RIW Post (CM) N Line Tract 6 L5 L1 N89046'45"W 900.00 Existing 100' Easement \ � J TXU Electric Company \ -\- --------------------- Book 256 Page 426 -- ` \ L3 Q \ Proposed Substation Site Existing Easement \ �\\ 11,873 sq.ft. or 0.2726 acres TXU Electric Company \ Book 1393 Poges 887-889 \\ \\ Proposed 30' ----------D.R.C.----\ C. T \ \ \ Access Easement 25, 864 sq. ft. or e�\a SHERLEY PARTNERS LTD 0.594 acres 0p TRACT 1.9 45.3 ACRES VOL. 4466, Pg 153 Pie HIRA D.R.C.C.T. Existing Easement TXU Electric Company Book 5014 Pages 1401-1406 D.R.C. C. T. TXDOT Wood R/W Post (cat) Notes: 1. Bearings based upon TeX Coordinate System, North Central Zone, NAD 83 (201 2. Distance and Coordinates or surface values. 3. Date of Field Survey — February 20' 4. Property Description with some date occomp%hies this Exhibit. 5. Combined Scale Factor used:SWO152710 6. This not a boundary survey. l hereby certify that this survey was prepared by me or under my direct supervision and that l am a dul,yy Licensed Land Surveyor under the /OVW.5 of t} State of Texas. I / I I I /I I I 1 �I - TXDOT god R/W LEGEND Z� Line Table e # Length Direction L1 518.55' N88046'45"W L2 100.00' SO1013'15"W L3 100.00' N88046'45"W L4 106.79' N19019'03"W L5 137.46' S88046'45"E 0 FOUND MONUMENT (CM) CONTROLLING MONUMENT PARCEL BOUNDARY EA SEMEN T CEN TERLINE EASEMENT BOUNDARY - - SECTION LINE ROAD RIGHT OF WAY PROPOSED SUBSTA TION ROAD CENTERLINE R/W RIGHT -OF- WA Y D.R.C.C.T. DEED RECORDS OF COLLIN COUNTY, TEXAS 0. P. R. C. C. T. OFFICIAL PUBLIC RECORD OF COLLIN COUNTY, TEXAS o' sag' loco' FXRNOT TO BE RECORDED FOR ANY REASON. Sheet 1 of 2 London Ryar RPLS Date Date: 2/1$/1Jr Texas No. 6212 TNMP Westwood Westminster Exhibit & Phone (913) 851d492 Over aW.n 130th ,St.K Suite 3 Substation Ta Fax (913) 851A357 Overland Park, KS 66213 p Description westwoodps.mm Lit Westwood Professional Servios, Inc. D Collin County, Texas L0004750ESF01—SS.dwg 02015 Westwood Professional Services, Inc. D WNER Sherley Partners, LTD SUBSTATION TAP DESCRIPTION: Being a 0.2726 acre tract of land situated in the H. Brinlee Survey, Abstract No. 30, Collin County, Texas, and being part of that tract of land described as Tract 1.9 in deed to SHERELY PARTNERS LTD, as recorded in Vol. 4466, Pg. 153 Deed Records of Collin County, Texas, and being more particularly described as follows: Commencing at a point on the northwesterly right—of—way line of State Highway 121 (a variable width right—of—w also being on the north line of said Sherley Partners tract; THENCE North 89 degrees 46 minutes 45 seconds West, along said north line, a dista corner; THENCE North 88 degrees 46 minutes 45 seconds West, continuing along said line, Point of Beginning of herein described tract; THENCE South 01 degree 13 minutes 15 seconds West, departing said nort distc for corner, 578.55 feeivto the THENCE North 88 degrees 46 minutes 45 seconds West, a distance of 00 feet to o point"corner• THENCE North 19 degree 19 minutes 03 seconds West, a distance of 105.79 feet to a p t for corner on the north line of said Sherley Partners tract; THENCE South 88 degrees 46 minutes 45 seconds East, a/c aid north line, a dista of 137.46 feet to the POINT OF BEGINNING AND CONTAINING 11,873 square feet, or 0.2 acres of land more or less. I ebyIcethat survey was prepared by me or my di supervision and that I am a ensed La d Surveyor under the laws .of the State of Texas. FOR REVIEW. NOT TO BE RECORDED FOR ANY REASON. t to a point Sheet 2 of 2 London Ryon, RPLS Date Texas No. 6212 TNMP Date. 2/18/15 Westwood Westminster Exhibit & Phone (913) 851d492 Over aW.n 130th ,St.K Suite 3 Substation Ta Fax (913) 851A357 Overland Park, KS 66213 p Description westwoodps.mm tx Westwood Professional Servios, Inc. °— Collin County, Texas L0004750ESFOI _SS.dwg D 2015 Westwood Professional Services, Inc. GRAPHIC SCALE 1 " = 150' 150' 0' 150' 300' SURVEY LINE — SHERLEY PARTNERS LTD VOL. 3200, PG. 922 D.R.C.C.T. NO TES: 1. Bearings based upon Texas Coordinate System, North Central Zone, NAD 83 (2011). 2. Flood Note_ This prperty falls within Zone X " areas of a 0.02 X, annual chance flood: areas of 1% annual chance flood with the average depths of less than 1 foot or iwth drainage areas less than 1 square mile; and areas protected by levees from 1% annual chance flood as shown on the Flood Insurance Rate Map Pane/ No. 48085CO160J & 48085CO180J, Map revised June 2nd, 2009 N N ors 00 co 0 0 0 2 z JAS SORREL SURVEY A-858 SEE DETAIL "A" SHERLEY PARTNERS LTD VOL. 3200, Pg 922 518" IRON ROD D. R. C. C. T. W/YELLOW PLASTIC CAP S89 °31 '45 "E 272.66'. S 8 °4645 "E 1100 00' STAMPED "WESTWOOD PS" — S89 04645 "E 900.00' -N. Line — —/- Tract 1.9 -------------------------� Existing 700' Easement \ \ \ \ Proposed Variable Width TXU Electric Company �y, \ Transmission Line Easement Book 256 Page 426 \��, \ \ \ 119,248 sq. ft. or 2.7,38 acres r SURVEY LINE r` S49 °08'46 "W 125.01 ' 1 0 0' \ \ \ \ —N. W. L in e \ \ \ \ State Highway 121 R/W --------------------- HIRAM BRINLEE SURVEY / \ \ A— 30 / \ / Existing Easement \ � \ ----Proposed TXU Gravel Road TXU Electric Company \ \ Book 7393 Pages 887-889 D. R. C. C. T. \ \ \ ---Proposed 30' , \ \ \ Access Easement --------------------- \ 25,864 sq. ft. or ko \ 0.594 acres \ \ \ 30' ZZ ohs Ze L1 SHERLEY \ \ \ \ �� PARTNERS LTD TRACT 1.9 v v v \ v Z 48.43 ACRES \ \ A \ y 2,109,802 Sq. Ft. \\\ \\ VOL. 4466, PG. 153 D.R.C.C.T. Existing Easement TXU Electric Company \ \ Book 5074 Pages 7407-7406 \ \ D. R. C. C. T. \ 9 /29$ _W. Line Tract 1.9 S50010'21"W 101.0i G�k /1D�k 5� LIANG HSIUTAO AND LIN YUN-HUA N STRU M EN T # 2000421000533800 D.R.C.C.T. F! 5 P�� I LINE TABLE LINE # LENGTH BEARING L 1 7 4. 69' S50 05S'0 7 "W JAMES A. LUSCOMBE VOL. 2935, PG. 160 D.R.C.C.T. DETAIL 'A" I S NOT TO CALE SURVEYOR'S CERTIFICATE KNOW ALL MEN BY THESE PRESENTS: l hereby certify that this survey was prepared by me or under my direct supervision and that l am a duly Licensed Land Surveyor under the laws of the State of Texas. "PRELIMINARY, THIS DOCUMENT SHALL NOT BE RECORDED FOR ANY PURPOSE. " London Ryon, RPLS Texas No. 6212 w z J w co �n = �� A/ w ✓V � m� �Z O� FM 455 a Paloma Dr. SITE 0CC U FM 421 III CINI T Y MAP NOT TO SCALE LEGAL DESCRIPTION ING a 48.454 acre tract of land situated in the Hiram Brin/ee Survey, Abstract No. 30, Collin ounty, Texas, and being part of that tract of land described as TRACT NO. 1.9 in deed to Sherley Partners, Ltd, as recorded in Volume 4466, Page 153 Deed Records of Collin County, Texas, and being more particularly described as follows: BEGINNING at a point on the northwest right—of—way line of State Highway 121 on the west line of said Sherley Partners tract, from which a found 8—inch x 1.5—foot TxDOT wood post (hereinafter referred to as TxDOT Monument) bears South 50 degrees 58 minutes 01 seconds West, a distance of 14.69 feet; THENCE North 00 degrees 36 minutes 59 seconds West, departing said northwest right—of—way line and along said west line, a distance of 1,870.27 feet to a point for the northwest corner of said D VAN WINKLE SURVEY Sherley Partners tract; A-937 THENCE South 89 degrees 31 mtnutes 45 seconds East, along the north I of said Sherley Partners tract, a distance of 272.66 feet to a point for corner, THENCE continuing along the north line of said Sherley Partners tract the following bearings and distances: South 88 degrees 46 minutes 45 seconds East, a distance of 1,100.00 feet to a 5/8—inch iron rod with plastic yellow cap stamped "WESTWOOD PS" set for corner; South 89 degrees 46 minutes 45 seconds East, a distance of 900.00 feet to a point on the northwest right—of—way line of said State Highway 121; THENCE South 49 degrees 08 minutes 46 seconds West, departing said north line and along the northwesterly line of said State Highway 121, a distance of 125.01 feet to a TxDOT monument found for corner; THENCE continuing along the northwest right—of—way line of said State Highway 121 the following bearings and distances: South 50 degrees 50 minutes 31 seconds West, a distance of 1,499.88 feet to a TxDOT monument found for corner South 55 degrees 29 minutes 56 seconds West, a distance of 298.98 feet to a TxDOT monument found for corner South 50 degrees 10 minutes 21 seconds West, a distance of 101.07 feet to a TxDOT monument found for corner South 47 degrees 54 minutes 54 seconds West, a distance of 500.18 feet to a TxDOT monument found for corner South 50 degrees 58 minutes 01 second West, a distance of 385.55 feet to the POINT OF BEGINNING AND CONTAINING 2,109,802 square feet, or 48.43 acres of land more or less. LEGEND CM CONTROLLING MONUMENT D.R.C.C.T. DEED RECORDS, COLLIN COUNTY, TEXAS R/W RIGH T-OF- WA Y o TXDOT MONUMENT (UNLESS NOTED) 0 POINT FOR CORNER CONCRETE WESTM[NSTER BREAKER TAP SUBSTATION 48.43 ACRES OUT OF THE HIRAM BRINLEE SURVEY, ABSTRACT No. 30 IN THE CITY OF ANNA, COLLIN COUNTY, TEXAS OWNER SHERLEY PARTNERS LTD P.O. Box217 ANNA, TX 75409-0217 ENGINEER/SURVEYOR Westwood Phone (214) 473-4640 2740 North Dallas Parkway, Suite 280 Toll Free (888) 937-5150 Plano, TX 75093 Survey Firm No. 10074301 westwoodps.com Westwood Professional Services, Inc. 48.43 ACRES DATE 08/ 18/ 1 5 JOB NO. 0004750.00 TAP —SITE -DEVELOPMENT PLAT 0004750—Tap—Site—Development Plat.dwg prim CITY OF AN NA, TEXAS Item No. 11 City Secretary's use only City Council Agenda Staff Report Date: 09/8/15 Staff Contact: Maurice Schwanke Exhibits: Yes AGENDA SUBJECT: Consider/Discuss/Action regarding an ordinance amending Part III -A (Subdivision Regulations), Article 2, Section 105 of the Anna City Code regarding plat submission timing and materials. SUMMARY: Under the Local Government Code strict guidelines for plat approval are in place regarding the length of time a City may hold a plat after it has been submitted. The length of time before a City needs to act on a plat is 30 day or the application is automatically approved. To ensure that the City does not get into a bind we are proposing an amendment to the subdivision ordinance to establish a clear submittal window and procedure which will allow for adequate review and comment time. STAFF RECOMMENDATION: Approval of the ordinance. CITY OF ANNA, TEXAS ORDINANCE NO. (Subdivision Regulations Amendment) AN ORDINANCE OF THE CITY OF ANNA, TEXAS, AMENDING THE ANNA CITY CODE OF ORDINANCES BY AMENDING PART III -A (SUBDIVISION REGULATIONS), ARTICLE 2 (PROCEDURES), SECTION 1.05 (SUBMISSION PROCEDURES AND CITY REVIEW PROCESS FOR ALL TYPES OF PLATS); PROVIDING FOR SAVINGS, SEVERABILITY, AND REPEALING CLAUSES; PROVIDING FOR AN EFFECTIVE DATE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF. WHEREAS, the City of Anna, Texas City Council ("City Council") has previously adopted standards, requirements, and procedures for and otherwise governing the subdivision of land that are codified in Part III -A of The Anna City Code of Ordinances (Subdivision Regulations); and WHEREAS, the Texas Local Government Code has established procedures for plat applications; and WHEREAS, the City Council has investigated and determined that it would be beneficial and advantageous to clarify the procedure time frame for application filing with the City; NOW, THEREFORE, BE IT ORDAINED 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. Amendment. if In accordance with Part II, Article 1, Section 9 of the Anna City Code of Ordinances; Part III -A, Article 2, Section 1.05 of the Anna City Code of Ordinances is hereby amended as follows: 1.05 Application Filing Submiicc094 Procedures and City Review Process for All Types of Plats (a) Filin Submissiei4 Timing. In order to provide the City with adequate time to review Plat Applications for compliance with these Subdivision Regulations, an Application for approval of any Plat shall be submitted to the Planning Director and filed with the City during an application submission and filing window that is at least 2G26 calendar days, but no more than 4-030 calendar days prior to the next scheduled regular meeting of the Planning & Zoning Commission. Fegula mooting atyVhinh it is t„ be nnncidered Applications filed with the City outside of the filing window shall be deemed incomplete. The PlaRRORg DiFeGtGF may JAIL (b) Submission Materials. The Application shall include the following materials which shall be submitted to the Planning Director (or such Persons authorized by the Planning Department to accept Applications) for review in order for the Application to be deemed complete: (11) A written statement signed by the Property Owner affirming that the Plat was filed with the City within the filing window described in Section 1.05(b) above. Section 4. 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. 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 5. 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, if required by law, of its caption and the City Secretary E)reby directed to implement such posting and/or publication. ORDINANCE NO. (Subdivision Regulations Amendment) 2 PASSED by the City Council of the City of Anna, Texas, this 8t" day of September, 2015. ORDINANCE NO. 3 (Subdivision Regulations Amendment) CITY OF ANNA, TEXAS Item No. 12 City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: Joseph Johnson Exhibits: Yes AGENDA SUBJECT: Consider/Discuss/Action regarding a resolution authorizing the dedication of an easement to Grayson Collin Communications. SUMMARY: Grayson Collin Communications is currently expanding their network to provide telecommunication fiber service to the new phases of the West Crossing subdivision. They are requesting two easements from the City of Anna to lay underground telecommunications fiber across the southern border of Slayter Creek Park and Slayter Creek Trail to the West Crossing Subdivision. The proposed easements do not interfere with existing utilities or park facilities. Grayson Collin Communications is a privately held company that provides telecommunication services to many residential and business customers in Anna. They are owned and operated by the Grayson Collin Electric Cooperative. STAFF RECOMMENDATION: Approval of the requested easements is consistent with the City's strategic goal of facilitating opportunities to extend fiber service to new residential developments. Staff recommends approval of the attached resolution and easements. CITY OF ANNA, TEXAS RESOLUTION NO. (GCEC Dedication Easement) A RESOLUTION OF THE CITY OF ANNA, TEXAS, AUTHORIZING THE DEDICATION OF EASEMENTS TO GRAYSON COLLIN COMMUNICATIONS. WHEREAS, Grayson Collin Communications (GCC) is a privately held company owned and operated by the Grayson Collin Electric Cooperative that provides telecommunication services to many residential and business customers in Anna, and WHEREAS, GCC is currently expanding their network to provide telecommunication fiber service to the new phases of the West Crossing subdivision; and WHERAS, GCC is requesting two easements from the City of Anna to lay underground telecommunications fiber across the southern border of Slayter Creek Park and Slayter Creek Trail to the West Crossing Subdivision; and WHEREAS, The City Council of the City of Anna, Texas ("City Council") finds that approval of the requested easements is consistent with the City's strategic goal of facilitating opportunities to extend fiber service to new residential developments; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: IN Section 1. Recitals Incorporated. The recitals above are incorwted herein as if set forth in full for all purposes. Section 2. Approval of Easements The City Council hereby approves the Easements attached hereto as Exhibit 1 and Exhibit 2, and authorizes, ratifies and approves the City Manager's execution of same subject to final legal approval as to form of Exhibit 1 and Exhibit 2 by the City Attorney. The City Manager is hereby authorized to execute all documents and to take all other actior}Lecessary to finalize, act under, and enforce the Easements. PASSED by the City Council of the City of Anna, Texas, on this the 22nd day of September, 2015. ATTEST: APPROVED: Carrie L. Smith, City Secretary Mike Crist, Mayor UNDERGROUND TELECOMMUNICATIONS LINE EASEMENT Date: / /2015 Grantor: City of Anna, Texas, a municipal corporation Grantee: Grayson Collin Communications Grantor's Mailing Address: Grantee's Mailing Address: 111 N. Powell Parkway P.O. Box 2119 Anna, Texas 75409 Van Alstyne, Texas 75495 Permanent Telecommunications Line Easement: The Permanent Telecommunications Line Easement ("Easement") j within Grantor's Property. A metes and bounds legal description of the Easement is attached as Exhibit A. Easement Purpose: As more fully described herein, to construct and use underground telecommunications and egress along, upon, over, under, and across Grantor's Property within the bounds of the Easement. Consideration: The sum of ten dollars ($10.00) and other good and valuable consideration, the by Grantor. Grant of Easement: Grantor, for the Consideration described herein, grants, sells, and conveys to G Grantee's h , successors and assigns, the Easement over, under, on and across Grantor's Property for the Easement P e, including the right of cons ction, installation, reconstruction, operation, maintenance, replacement, alteration, expansion, relocation,Leto pair, abandonment, remoand other associated uses of underground telecommunication lines together with all and singular the rightany way belonging, (collectively, the "Easement Rights"), to have and to hold the Easement Rights to Grantee and Grantee's heirs, suassigns forever. Grantee shall have the right to prevent construction of any and all buildings or structures which would endanger'th the efficiency, safety, and/or convenient operation of the aforementioned underground telecommunications lines; and the rightemove trees or shrubbery within, said Easement, to the extent as may be necessary to prevent possible interference with eratio ' said lines, or to e possible hazard thereto. Walking trails and other park facilities owned by the Grantor and currently ed wi Eas e allowed to remain. Grantee must reasonably restore the Easement to its previous physical condition if ged by use o is by this Easement. Such restoration shall include the repair or replacement of any walking trails or other park ties if damaged b e of the rights granted by this Easement Duration of Easement: The duration of the Easement is perpetual, cease and all rights herein granted shall terminate and re Graff Character of Easement: The Easement is a] or described in any conveyance of all or such By Philip Sanders, City Manager trument Ks,acknowledged before me on the day of , 2015, by Philip Sanders who states under oath that he is ae authorized representatiLe of the owner of Grantor's Property described herein and has the authority to execute this document. UNDERGROUND TELECOMMUNICATIONS LINE EASEMENT Date: / /2015 Grantor: City of Anna, Texas, a municipal corporation Grantee: Grayson Collin Communications Grantor's Mailing Address: Grantee's Mailing Address: 111 N. Powell Parkway P.O. Box 2119 Anna, Texas 75409 Van Alstyne, Texas 75495 Permanent Telecommunications Line Easement: The Permanent Telecommunications Line Easement ("Easement") j within Grantor's Property. A metes and bounds legal description of the Easement is attached as Exhibit A. Easement Purpose: As more fully described herein, to construct and use underground telecommunications and egress along, upon, over, under, and across Grantor's Property within the bounds of the Easement. Consideration: The sum of ten dollars ($10.00) and other good and valuable consideration, the by Grantor. Grant of Easement: Grantor, for the Consideration described herein, grants, sells, and conveys to G Grantee's h , successors and assigns, the Easement over, under, on and across Grantor's Property for the Easement P e, including the right of cons ction, installation, reconstruction, operation, maintenance, replacement, alteration, expansion, relocation,Leto pair, abandonment, remoand other associated uses of underground telecommunication lines together with all and singular the rightany way belonging, (collectively, the "Easement Rights"), to have and to hold the Easement Rights to Grantee and Grantee's heirs, suassigns forever. Grantee shall have the right to prevent construction of any and all buildings or structures which would endanger'th the efficiency, safety, and/or convenient operation of the aforementioned underground telecommunications lines; and the rightemove trees or shrubbery within, said Easement, to the extent as may be necessary to prevent possible interference with eratio ' said lines, or to e possible hazard thereto. Walking trails and other park facilities owned by the Grantor and currently ed wi Eas e allowed to remain. Grantee must reasonably restore the Easement to its previous physical condition if ged by use o is by this Easement. Such restoration shall include the repair or replacement of any walking trails or other park ties if damaged b e of the rights granted by this Easement Duration of Easement: The duration of the Easement is perpetual, cease and all rights herein granted shall terminate and re Graff Character of Easement: The Easement is a] or described in any conveyance of all or such By Philip Sanders, City Manager trument Ks,acknowledged before me on the day of , 2015, by Philip Sanders who states under oath that he is ae authorized representatiLe of the owner of Grantor's Property described herein and has the authority to execute this document. CITY OF ANNA, TEXAS Item No. 13 City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: Clayton Fulton Exhibits: Yes AGENDA SUBJECT: Consider/Discuss/Action regarding a resolution authorizing an Agreement with American Municipal Services Corporation for utility and court collections. SUMMARY: The City currently has collections contract with Perdue, Brandon, Fiedler, Collins, & Mott, L.L.P. Attorneys at Law (Perdue Brandon) for collections of delinquent tax and utility accounts and court fines and fees. Currently, Perdue Brandon has not performed well under the contracts for delinquent utility accounts and collection of court fines and fees (delinquent accounts). City staff met with Perdue Brandon approximately two years ago to discuss their performance and establish expectations moving forward. During that meeting staff expressed concerns over regular reporting and overall performance. Perdue Brandon expressed their intent to provide monthly reports and improve performance. Since that time, staff has not experienced the level of service as discussed. Performance has not improved and monthly reporting only lasted 2 months. Additionally, Perdue Brandon does perform actual collections. They send letters instructing delinquent account holders to pay the City of Anna for amounts past due. This is problematic as the city cannot know for certain if payments received are the result of Perdue Brandon's efforts. Finally, Perdue Brandon has not invoiced the City on a regular basis. In the last month, staff has received 5 invoices for work dating as far back as 2008 and as current as May of 2015. Their invoices cover anywhere from 2-4 years. Staff sent a cancellation letter to Perdue Brandon late last week with an email copy of the letter. The contract for collection of delinquent tax accounts will continue; however, staff will schedule a meeting with Perdue Brandon to discuss their efforts on delinquent tax accounts and expectations for those accounts. The attached resolution would authorize the City Manager to execute contracts with American Municipal Services (AMS) for collections of delinquent utility accounts and for court fines and fees. Staff has checked several references (including the cities of Melissa and Prosper). All references have come back with positive reviews. Perdue Brandon is a legal firm that engages in collections efforts while AMS is a collections company. Staff believes this will result in higher resolution rates, higher levels of service, and better results. AMS has assured staff that no amount is too small and no account it too old (also stated on their website). In the process of reviewing other potential companies, staff found that some companies would not collect on accounts older than two years or would charge a higher fee for those accounts. One company in particular would not quote us a rate until we provided them a profile of all our delinquent accounts. AMS has a flat fee of 30% of the collected amount. Additionally, AMS will collect the money for the City and remit the City's amounts monthly. Perdue Brandon was charging 20% on utility accounts and 30% on court fines & fees. AMS will contact delinquent account holders by mail and by phone. Additionally AMS employs bilingual staff that can take payments over the phone. AMS has an average resolution rate of 75% and we expect to see similar results with amounts turned over to them for collections. STAFF RECOMMENDATION: Approve the resolution. CITY OF ANNA, TEXAS RESOLUTION NO. (American Municipal Services Contract) A RESOLUTION OF THE CITY OF ANNA, TEXAS AUTHORIZING THE CITY MANAGER TO ACT ON THE CITY'S BEHALF IN EXECUTING CONTRACTS WITH AMERICAN MUNICIPAL SERVICES CORPORATION FOR UTILITY AND COURT COLLECTIONS WHEREAS, the City Council of the City of Anna, Texas (the Council) desires to secure services for utility and court collections; and, WHEREAS, American Municipal Services Corporation (AMS) desires to provide utility and court collections for the City of Anna (the City); and, WHEREAS, the Council has determined that the services of will benefit the City in providing for an economically feasible and efficient method of utility and court collections, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. Recitals Incorporated. JA The recitals set forth above are incorporated herein for all purposes as if set forth in full. Section 2. Authorization. The Council hereby approves the contracts attached hereto as Exhibit 1 Professional Services Agreement for Billing Collection Services and as Exhibit 2 Professional Services Agreement for Court Collection Services, and authorizes, ratifies, and approves the City Manager's execution of both contracts. The City Manager is hereby authorized to execute all documents and to take all other actions necessary to finalize, act under, and enforce the respective contracts. PASSED AND APPROVED by the City Council of the City of Anna, Texas this the 8th day of September, 2015. ATTESTED: APPROVED: City Secretary Carrie L. Smith Mayor Mike Crist PROFESSIONAL SERVICES AGREEMENT FOR BILLING COLLECTION SERVICES STATE OF TEXAS § COUNTY OF COLLIN § l� THIS AGREEMENT is made and entered into as of the 2 � day of S&r-tEwl P_�EK, 21344- by and between the City of Anna, Texas, a Texas municipal corporation, with it principal office at 111 North Powell Parkway, Anna, Collin County, Texas 75409, hereinaft called "OWNER" and American Municipal Services Corporation, with its corporate office at 3724 Old Denton Road, Carrollton, Texas 75007, hereinafter called "COLLECTOR," acting herein, by and through their duly authorized representatives ("Agreement"). WITNESSETH, that in consideration of the covenants and Agreements herein contained, the parties hereto mutually agree as follows: ARTICLE 1 EMPLOYMENT OF COLLECTOR OWNER hereby contracts with COLLECTOR, as an independent contractor, and COLLECTOR hereby agrees to perform the services herein in connection with the Project as stated in the sections to follow, with diligence and in accordance with the highest professional standards customarily obtained for such services in the State of Texas. The professional services set out herein are in connection with the following described project: The Project shall include, without limitation, the general services traditionally performed by a municipal billing collections agent including without limitation collection of amounts owed to OWNER for utility service, emergency ambulance service, and other services provided by OWNER and, without limitation, the services described under Article 2 of this Agreement. ARTICLE 2 SCOPE OF SERVICES COLLECTOR shall perform the following services in a professional manner: COLLECTOR shall perform all those services as necessary and as described here: Assemble, maintain, review, and update as needed records of customer accounts for WNER services which have been referred to COLLECTOR for collection ("collection accounts"). Review is for internal consistency, mathematical accuracy, conformance to the OWNER`s record -keeping standards and obligations, and good collections practice. The services described in this paragraph do not include a guarantee of the Completeness, accuracy or correctness of the information supplied to COLLECTOR by the OWNER, but does include COLLECTOR'S warranty that the collection account records will be kept current. For purposes of this paragraph, "current" means that all PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 1 of 11 new payments or charges applicable to a collection account will be reflected in the records within 30 days after COLLECTOR is notified of the occurrence modifying the outstanding balance. 2. COLLECTOR will use its best efforts to collect monies owed the OWNER corresponding to the collection accounts in absolute compliance with all applicable local, state, and federal debt collection law. COLLECTOR shall use its best efforts to establish and maintain procedures reasonably adapted to avoid errors resulting in violation of debt collection law. In the event COLLECTOR or any of COLLECTOR's employees or agents becomes aware of any actual, potential, or accused violation of laws relating to debt collection in reference to a collection account referred by the OWNER ("debt collection violation"), COLLECTOR shall immediately notify the OWNER of the debt collection violation and fully cooperate with the OWNER's investigation thereof, said cooperation including but not limited to preservation and disclosure of all relevant records and making all involved employees or agents of COLLECTOR immediately available for interview by the OWNER. 3. COLLECTOR is solely responsible for ensuring its collection efforts are in compliance with applicable law as it exists now or as it may be amended. In the event of any conflict between any term of this Agreement and applicable law, CONTRACTOR will abide by the law and immediately notify the OWNER of said conflict. 4. While performing collection services in accordance with this Agreement, the COLLECTOR shall represent to any debtor, whether directly or by implication, that the OWNER itself is conducting collection activities. Instead, COLLECTOR will clearly and directly communicate to debtors that it (American Municipal Services) is attempting to collect a debt. This paragraph does not prohibit COLLECTOR from informing a debtor that the debt arose from the provision of services by the OWNER. 5_ As part of the collection services to be provided by COLLECTOR, it will skip trace those collection accounts when it is determined a good address is not known. COLLECTOR will send each debtor no fewer than four letters in attempting to collect on the collection accounts. COLLECTOR will also contact each debtor by telephone in an effort to have the debtor pay the amount owed to the OWNER for the collection account_ COLLECTOR will limit all telephone calls to the period between the hours of 8:00 A.M. and 7:00 P.M. from Monday through Friday, and between the hours of 8:00 A.M. and 2:00 P.M. on Saturdays. No debtor will be contacted by telephone on Sundays. Only mail and telephone contacts will be used by COLLECTOR; no personal contacts to debtors are authorized by the OWNER. COLLECTOR agrees to honor any debtor's request to contact the debtor during specified hours or by written correspondence or phone calls directed to a specified location, and in doing so may deviate from the time period limitations of this paragraph to the extent permitted by applicable law. 6. COLLECTOR will arrange for all debtors to send their payments directly to COLLECTOR. All payments received relating to collection accounts shall be processed and deposited into a trust account established by OWNER. Within 15 calendar days of PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 2 of 11 the OWNER's final confirmation of payments made for the previous month's collections, COLLECTOR will forward to the OWNER a single check in an amount equal to [the sum of all payments received for the previous month] less [the COLLECTOR's primary payment described below]. 7. COLLECTOR may accept payment by credit card and charge the debtor the scan fee set by COLLECTOR for that service in addition to the amount owed the OWNER o the collection account. Any credit card payment fees, whether paid or unpaid, authorized in this paragraph shall not reduce the payment owed to the OWNER unde. paragraph 5 above. 8. COLLECTOR will provide the OWNER with reports on pa is received o a aily basis (unless otherwise requested by the OWNER) and II pro month yment report showing all payments received by COLLECT pre m within 15 calendar days after the end of the month. 9. COLLECTOR is authorized to arrange payment schedules ith debtors and to authorize partial payments, provided that the entire amount to paid by the debtor equals the total of the monies owed to the OWNER plus any in Brest or late charges and costs established by OWNER. When a payment plan is established, COLLECTOR agrees to provide each debtor with a schedule of their payments, payment coupons, and envelopes addressed to COLLECTOR at the address of COLLECTOR's choosing. COLLECTOR will moni#ore p ent plan and contact each debtor who fails to comply with their payment y t hone and written correspondence. 10. COLLECTOR is aut ed eport to the various National Credit Bureaus, at COLLECTOR's sole expen the unpaid amount owed as a debt due the OWNER in conjunction with nt. COLLECTOR is solely responsible for ensuring that all reporting b any th ccurate and in compliance with applicable law. 11. COLLECTOR will discontWe collection efforts on collection accounts as they reach the end of the time, period est` lisped by the applicable statute of limitations. (COLLECTOR "41continue all collection -related activities immediately after ction account is paid in full. When a collection account corresponding to utility 6ce#s been paid in full, COLLECTOR will notify OWNER that payment has been for that account as soon as is practicable after receipt of the final payment. . COLLECTOR will constantly monitor its employees to ensure all contacts with btors are done in a polite, courteous, and helpful manner. e services described by Section A above shall encompass collection accounts sting to utility accounts (water, sewer, and trash collection). C. COLLECTOR shall perform any additional services as may be set forth in individual task orders referencing this Agreement and signed by authorized representatives of both PROFESSIONAL SERVICES AGREEMENT FOR UTILITY CHILLING COLLECTION SERVICES Page 3 of 11 parties ("task orders"). Said additional services shall be governed by the terms of this Agreement. If there is any conflict between the terms of this Agreement and the exhibits attached to this Agreement or any task orders, the terms and conditions of this Agreement will control over the terms and conditions of the attached exhibits or task orders. ARTICLE 4 PERIOD OF SERVICE This Agreement shall become effective upon execution of this Agreement by OWNER and COLLECTOR and upon issuance of a notice to proceed by OWNER, and shall remain in force for the period which may reasonably be required for the completion of the services described herein, including Additional Services, if any, and any required extensions approved by OWNER. This Agreement may be sooner terminated in accordance with the provisions hereof. Time is of the essence in this Agreement. COLLECTOR shall make all reasonable efforts to complete the services set forth herein as expeditiously as possible and to meet the schedule(s) established by OWNER, acting through its City eager or his designee. ARTIC COMPENSATION A. COMPENSATION TERMS: 1. "Collection Expenses" is defined as expefob incurred by COLLECTOR in the collection process incident to the work required under the Scope of Services, including but not ne I limited to labor, postage, telephone, skip tracing, and insurance. 2. "Trust Account" is es the account established by OWNER for deposit of payments received b COLLECTOR on collection accounts. B. BILLAB PAYMENT: PRIM YMENT: For and in consideration of the collection services to be LECTOR herein, OWNER agrees that COLLECTOR will be paid a gent flee equal to 30% (thirty percent) of revenues collected by COLLECTOR on collection accounts referred to COLLECTOR by OWNER. COLLECTOR shall invoi OWNER for the previous month's collections within 15 calendar days from final OWNER confirmation of payments. Payment by OWNER of this contingent fee from the Trust Account shall constitute the "Primary Payment" to COLLECTOR. Invoices for Primary Payments are due and payable within 30 days of receipt by OWNER. 2. SUPPLEMENTAL PAYMENT: In addition, at the time it makes its Primary Payment, OWNER shall pay COLLECTOR an amount equal to 30% of the amounts paid PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 4 of 11 directly to OWNER during that same month relating to collection accounts previously referred to COLLECTOR, so long as COLLECTOR has made one or more contacts with the debtor prior to the OWNER's receipt of payment. For purposes of this paragraph, it is presumed by both parties that COLLECTOR has not made any contact with a debtor within the first 7 calendar days following referral of account by the OWNER. The OWNER shall report to COLLECTOR all payments received relating to collection accounts and the date such payments were received. In the even COLLECTOR believes it has made contact with some debtor who submitte payment directly to the OWNER and for which it did not receive a corresponding Secondary Payment, it will notify the OWNER of: the identifying information of the account; the date of payment; and the amount believed owed to COLLECTOR. COLLECTOR will also supply the OWNER with evidence sufficient to establish that contact was made with that debtor. Proof of mailing of written correspondence is not sufficient to establish contact with a debtor without proof of actual receipt by the debtor or person submitting payment to the OWNER for satisfaction of a collection account. If appropriate evidence of contact with the debtor has been received by the OWNER at least 72 hours prior to the next supplemental payment becoming due under this provision, then the OWNER shall a the appropriate amount to next supplemental payment made to COLLECTOR; if received at least 72 hours prior to issuance of a month's supplemental payment e OWNER may hold the funds until the following supplemental payrn is due. In the event no payments for collection accounts are directly made to the OWNER during a calendar month, it shall report that to the COLLECTOR. 3. COLLECTOR agrees that in the event any debt underlying a collection account is forgiven, dismissed, or otherwise canceled by OWNER (for any reason or no reason at all), then COLLECTOR will not be paid or owed any amount (Primary Payment or Supplemental Payment) for that collection account. Partial payments to COLLECTOR may be made on the basis of detailed monthly statements rendered to and approved by OWNER through its City Manager or his designee; however, under no circumstances shall any monthly statement for services exceed the value of the work performed at the time a statement is rendered. Nothing contained in this Article shall require OWNER to pay for any work which is unsatisfactory, as reasonably determined by the City Manager or his designee, or which is not submitted in compliance with the terms of this Agreement. OWNER shall not be required to make any payments to COLLECTOR when COLLECTOR is in default under this Agreement. 4. COLLECTOR shall be solely responsible for payment of all Collection Expenses, which shall not be invoiced to OWNER. PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 5 of 11 ARTICLE 6 OBSERVATION AND REVIEW OF THE WORK COLLECTOR will exercise reasonable care and due diligence in discoverin promptly reporting to OWNER any defects or deficiencies in the work of COLL OR subcontractors. ARTICLE 7 OWNERSHIP OF DOCUMENTS All documents required to be prepared by COLLECT/-,((an6AOLLEC' subcontractors) pursuant to this Agreement are instruments of service, and shall become the property of OWNER upon the termination of this Agreement. COLLECTOR is entitled to retain copies of all such documents, but is solely responsible for ensuring that any' ation made confidential by law is not improperly disclosed to any third party. ARTIr..I F J 1101974»ki107:10111 COLLECTOR shall provide services to OWNER as an independent contractor, not as an employee of the OWNER. COLLECTOR shall not have or claim any right arising from employee status, nor shall any of its employees, agents, or assigns. OWNER shall not control the means, methods, sequences, procedures, or techniques utilized by COLLECTOR to perform work or services under this Agreement or any associated task order. COLLECTOR is not authorized to receive requests for public information or records on behalf of OWNER. ARTICLE 9 AUDITS AND INSPECTION OWNER shall have the right to audit and make copies of the books, records and computations pertaining to this Agreement, but its right to audit COLLECTOR's records extends only to those materials dated 4 years prior to the OWNER's request to inspect. COLLECTOR shall retain such books, records, documents and other evidence pertaining to this Agreement during the contract period and five years thereafter (or for the time period required by law, whichever is longer), except if an audit is in progress or audit findings are yet unresolved, all applicable case records shall be kept until all audit tasks are completed and resolved. These books, records, documents and other evidence shall be deliverable to OWNER within 10 business days of written request. Further, COLLECTOR shall also require all Subcontractors, material suppliers, and other payees to retain all books, records, documents and other evidence pertaining to this Agreement, and to allow OWNER similar access to information relating to collection accounts. All books and records will be made available within a 50 mile radius of the City of Anna. Failure to comply with the provisions of this section shall be a material breach of this contract and shall constitute, in OWNER's sole discretion, grounds for termination thereof. PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION Page 6 of 11 Each of the terms "books", "records", "documents" and "other evidence", as used above, shall be construed to include drafts and electronic files, even if such drafts or electronic files are subsequently used to generate or prepare a final printed document. The right to audit provided under this section does not extend to any information held by COLLECTOR or a third party providing goods or services to COLLECTOR if said information does not reference OWNER or a debtor/collection account referred by OWNER, nor does it extent to any records not containing information obtained for the sole purpose of performing the services encompassed by this Agreement. ARTICLE 10 INDEMNITY AGREEMENT COLLECTOR shall indemnify, defend, and save and hold harmless OWNEFand its officers, agents, and employees from and against any and all liability, claims, demands, damages, losses, and expenses, including, but not limited to court costs and reasonable attorney fees incurred by the OWNER, that is caused by or results from an act of negligence, intentional tort, intellectual property infringement, or failure to pay a subcontractor or supplier committed by the COLLECTOR or the COLLECTOR'S agent, another COLLECTOR under contract, or another entity over which the COLLECTOR exercises control. Nothing in this Agreement shall be construed to create a liability to any person who is not a party to this Agreement, and nothing herein shall waive any of the parties' defenses, both at law or equity, to any claim, cause of action, or litigation filed by anyone not a party to this Agreement, including but not limited to the defense of governmental immunity, which defenses are hereby expressly reserved. ►.1-11dr.0=K91 INSURANCE During the performance of the services under this Agreement, COLLECTOR shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with Best Carriers of at least an A- or above: Q "kmprehg&e General Liability Insurance with bodily injury limits of not less than 0 Qfor each occurrence and not less than $500,000 in the aggregate, and with pdamage limits of not less than $100,000 for each occurrence and not less than $100, in the aggregate. COLLECTOR shall furnish insurance certificates or insurance policies at OWNER's request to evidence such coverages. The insurance policies shall name OWNER as an additional insured on all such policies, and shall contain a provision that such insurance hall not be canceled or modified without 30 days' prior written notice to OWNER and OLLECTOR. In such event, COLLECTOR shall, prior to the effective date of the change or cancellation, serve substitute policies furnishing the same coverage. PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 7 of 11 0 I:3 X ARTICLE 12 TERMINATION OF AGREEMENT OWNER may at any time withdraw any collection account from the scope of services authorized to be provided by COLLECTOR_ w Notwithstanding any other provision of this Agreement, either party may giving 30 days' advance written notice to the other party. If the Agreement is terminated, COLLECTOR shall immediately cease all services and shall render a final bill for services to OWNER within 30 days after the date of termination. OWNER shall pay COLLECTOR for all services properly rendered and satisfactorily performed and incurred prior to the date of termination, in accordance with Article 5 "Compensation." Should OWNER subsequently contract with a new COLLECTOR for the continuation of services relating to this Agreement, COLLECTOR shall cooperate in providing information. COLLECTOR shall turn ov a I documents prepared or furnished by COLLECTOR pursuant to this Agreement to OWNER on or before the date of termination, but may maintain copies of such documents for its use. F-3A9[a]R=6KI37:41 AR NOTICES R WA All notices, communications, and reports required or permitted under this Agreement shall be personally delivered or mailed to the respective parties by depositing same in the United States mail to the address shown below, certified mail, return receipt requested, unless otherwise specified herein. Mailed notices shall be deemed communicated as of three days after mailing: TovLLECTOR Gregory L. Pitchford Chief Financial Officer American Municipal Services 3724 Old Denton Rd Carrollton, Texas 75007 To OWNER: City Manager City of Anna 111 North Powell Parkway P.O. Box 776 Anna, Texas 75409 All notices shall be deemed effective upon receipt by the party to whom such notice is given, or within three days after mailing, whichever date occurs first. ARTICLE 15 ENTIRE AGREEMENT PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 8 of 11 This Agreement constitutes the complete and final expression of the Agreement of the parties, and is intended as a complete and exclusive statement of the terms of their Agreements, and supersedes all prior or contemporaneous offers, promises, representations, negotiations, discussions, communications, and Agreements which may have been made in connection with the subject matter hereof. ARTICLE 16 SEVERABILITY E3 If any provision of this Agreement is found or deemed by a court of cMffpeteff jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the parties shall reform this Agreement to replace such strickenq&vision . h a valid and enforceable provision which comes as close as possibl eressi a in on of the stricken provision. ARTICLE 17 COMPLIANCE WITH LA COLLECTOR shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereinafter be amended. ARTICLE 18 DISCRIMINATION PROHIBITED In performing the services required hereunder, the COLLECTOR shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. 0 ARTICLE 19 PERSONNEL COLLECTOR represents that it has or will secure, at its own expense, all ,required to perform all the services required under this Agreement. Such not be employees or officers of, or have any contractual relations with DLLECTOR shall inform OWNER of any conflict of interest or potential rerest that may arise during the term of this Agreement. I services required hereunder will be performed by COLLECTOR of rpervision. All personnel engaged in work shall be qualified, and shall be id permitted under state and local laws to perform such services. ARTICLE 20 ASSIGNABILITY personnel personnel OWNER. conflict of under its authorized PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 9 of 11 COLLECTOR shall not assign any interest in this Agreement, and shall not transfer any interest in this Agreement (whether by assignment, novation, or otherwise) without the prior written consent of OWNER. ARTICLE 21 MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charge therewith, and no evidence of any waiver or modification shall be offered or received evidence in any proceeding arising between the parties hereto out of or affecting fs Agreement, or the rights or obligations of the parties hereunder, and unless such waiver or modification is in writing and duly executed; and the parties further gr t the provisions of this section will not be waived unless as set forth herein. An ARTICLE 22 M � 1W MISCELLANEOUS A. The following exhibits are attached to and made a pfis Agreement: None. B. Venue of any suit or cause of actiovun his Agrient shall lie exclusively in Collin County, Texas. This Agreement shall be construed in accordance with the laws of the State of Texas. C. OWNER shall assist COLLECTOR by placing at COLLECTOR's disposal all available information pertinent to the services rendered pursuant to this Agreement, including previous reports, any other data relative to the collection accounts and arranging for the access thereto. D. COLLECTOR shall at all times maintain OWNER'S confidential or proprietary information, including but not limited to account numbers for debtors, in strictest confidence and shall disclose same to third parties only as specifically instructed by OWNER. Any disclosure of privileged or confidential information by OWNER to COLLECTOR is in furtherance of OWNER's purposes and is not intended to and does not waive any privileges that may exist with regard to such information. E. The captions of this Agreement are for informational purposes only, and shall not in any way affect the substantive terms or conditions of this Agreement. IN WITNESS HEREOF, the City of Anna, Texas has caused this Agreement to be executed by its duly authorized City Manager, and COLLECTOR has executed this Agreement through its duly authorized undersigned officer on this the 2-0 day of SE�76M K CITY OF AN NA, TEXAS PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 10 of 11 ATTEST: CARRIE SMITH, CITY SECRETARY WITN PHILIP SANDERS, CITY MANAGER AMERICAN MUNICIPAL SERVICES CORPORATION ), its President :. �A.Ebkl 19wo )01 PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 11 of 11 PROFESSIONAL SERVICES AGREEMENT FOR BILLING COLLECTION SERVICES STATE OF TEXAS § COUNTY OF COLLIN § l� THIS AGREEMENT is made and entered into as of the 2 � day of S&r-tEwl P_�EK, 21344- by and between the City of Anna, Texas, a Texas municipal corporation, with it principal office at 111 North Powell Parkway, Anna, Collin County, Texas 75409, hereinaft called "OWNER" and American Municipal Services Corporation, with its corporate office at 3724 Old Denton Road, Carrollton, Texas 75007, hereinafter called "COLLECTOR," acting herein, by and through their duly authorized representatives ("Agreement"). WITNESSETH, that in consideration of the covenants and Agreements herein contained, the parties hereto mutually agree as follows: ARTICLE 1 EMPLOYMENT OF COLLECTOR OWNER hereby contracts with COLLECTOR, as an independent contractor, and COLLECTOR hereby agrees to perform the services herein in connection with the Project as stated in the sections to follow, with diligence and in accordance with the highest professional standards customarily obtained for such services in the State of Texas. The professional services set out herein are in connection with the following described project: The Project shall include, without limitation, the general services traditionally performed by a municipal billing collections agent including without limitation collection of amounts owed to OWNER for utility service, emergency ambulance service, and other services provided by OWNER and, without limitation, the services described under Article 2 of this Agreement. ARTICLE 2 SCOPE OF SERVICES COLLECTOR shall perform the following services in a professional manner: COLLECTOR shall perform all those services as necessary and as described here: Assemble, maintain, review, and update as needed records of customer accounts for WNER services which have been referred to COLLECTOR for collection ("collection accounts"). Review is for internal consistency, mathematical accuracy, conformance to the OWNER`s record -keeping standards and obligations, and good collections practice. The services described in this paragraph do not include a guarantee of the Completeness, accuracy or correctness of the information supplied to COLLECTOR by the OWNER, but does include COLLECTOR'S warranty that the collection account records will be kept current. For purposes of this paragraph, "current" means that all PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 1 of 11 new payments or charges applicable to a collection account will be reflected in the records within 30 days after COLLECTOR is notified of the occurrence modifying the outstanding balance. 2. COLLECTOR will use its best efforts to collect monies owed the OWNER corresponding to the collection accounts in absolute compliance with all applicable local, state, and federal debt collection law. COLLECTOR shall use its best efforts to establish and maintain procedures reasonably adapted to avoid errors resulting in violation of debt collection law. In the event COLLECTOR or any of COLLECTOR's employees or agents becomes aware of any actual, potential, or accused violation of laws relating to debt collection in reference to a collection account referred by the OWNER ("debt collection violation"), COLLECTOR shall immediately notify the OWNER of the debt collection violation and fully cooperate with the OWNER's investigation thereof, said cooperation including but not limited to preservation and disclosure of all relevant records and making all involved employees or agents of COLLECTOR immediately available for interview by the OWNER. 3. COLLECTOR is solely responsible for ensuring its collection efforts are in compliance with applicable law as it exists now or as it may be amended. In the event of any conflict between any term of this Agreement and applicable law, CONTRACTOR will abide by the law and immediately notify the OWNER of said conflict. 4. While performing collection services in accordance with this Agreement, the COLLECTOR shall represent to any debtor, whether directly or by implication, that the OWNER itself is conducting collection activities. Instead, COLLECTOR will clearly and directly communicate to debtors that it (American Municipal Services) is attempting to collect a debt. This paragraph does not prohibit COLLECTOR from informing a debtor that the debt arose from the provision of services by the OWNER. 5_ As part of the collection services to be provided by COLLECTOR, it will skip trace those collection accounts when it is determined a good address is not known. COLLECTOR will send each debtor no fewer than four letters in attempting to collect on the collection accounts. COLLECTOR will also contact each debtor by telephone in an effort to have the debtor pay the amount owed to the OWNER for the collection account_ COLLECTOR will limit all telephone calls to the period between the hours of 8:00 A.M. and 7:00 P.M. from Monday through Friday, and between the hours of 8:00 A.M. and 2:00 P.M. on Saturdays. No debtor will be contacted by telephone on Sundays. Only mail and telephone contacts will be used by COLLECTOR; no personal contacts to debtors are authorized by the OWNER. COLLECTOR agrees to honor any debtor's request to contact the debtor during specified hours or by written correspondence or phone calls directed to a specified location, and in doing so may deviate from the time period limitations of this paragraph to the extent permitted by applicable law. 6. COLLECTOR will arrange for all debtors to send their payments directly to COLLECTOR. All payments received relating to collection accounts shall be processed and deposited into a trust account established by OWNER. Within 15 calendar days of PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 2 of 11 the OWNER's final confirmation of payments made for the previous month's collections, COLLECTOR will forward to the OWNER a single check in an amount equal to [the sum of all payments received for the previous month] less [the COLLECTOR's primary payment described below]. 7. COLLECTOR may accept payment by credit card and charge the debtor the scan fee set by COLLECTOR for that service in addition to the amount owed the OWNER o the collection account. Any credit card payment fees, whether paid or unpaid, authorized in this paragraph shall not reduce the payment owed to the OWNER unde. paragraph 5 above. 8. COLLECTOR will provide the OWNER with reports on pa is received o a aily basis (unless otherwise requested by the OWNER) and II pro month yment report showing all payments received by COLLECT pre m within 15 calendar days after the end of the month. 9. COLLECTOR is authorized to arrange payment schedules ith debtors and to authorize partial payments, provided that the entire amount to paid by the debtor equals the total of the monies owed to the OWNER plus any in Brest or late charges and costs established by OWNER. When a payment plan is established, COLLECTOR agrees to provide each debtor with a schedule of their payments, payment coupons, and envelopes addressed to COLLECTOR at the address of COLLECTOR's choosing. COLLECTOR will moni#ore p ent plan and contact each debtor who fails to comply with their payment y t hone and written correspondence. 10. COLLECTOR is aut ed eport to the various National Credit Bureaus, at COLLECTOR's sole expen the unpaid amount owed as a debt due the OWNER in conjunction with nt. COLLECTOR is solely responsible for ensuring that all reporting b any th ccurate and in compliance with applicable law. 11. COLLECTOR will discontWe collection efforts on collection accounts as they reach the end of the time, period est` lisped by the applicable statute of limitations. (COLLECTOR "41continue all collection -related activities immediately after ction account is paid in full. When a collection account corresponding to utility 6ce#s been paid in full, COLLECTOR will notify OWNER that payment has been for that account as soon as is practicable after receipt of the final payment. . COLLECTOR will constantly monitor its employees to ensure all contacts with btors are done in a polite, courteous, and helpful manner. e services described by Section A above shall encompass collection accounts sting to utility accounts (water, sewer, and trash collection). C. COLLECTOR shall perform any additional services as may be set forth in individual task orders referencing this Agreement and signed by authorized representatives of both PROFESSIONAL SERVICES AGREEMENT FOR UTILITY CHILLING COLLECTION SERVICES Page 3 of 11 parties ("task orders"). Said additional services shall be governed by the terms of this Agreement. If there is any conflict between the terms of this Agreement and the exhibits attached to this Agreement or any task orders, the terms and conditions of this Agreement will control over the terms and conditions of the attached exhibits or task orders. ARTICLE 4 PERIOD OF SERVICE This Agreement shall become effective upon execution of this Agreement by OWNER and COLLECTOR and upon issuance of a notice to proceed by OWNER, and shall remain in force for the period which may reasonably be required for the completion of the services described herein, including Additional Services, if any, and any required extensions approved by OWNER. This Agreement may be sooner terminated in accordance with the provisions hereof. Time is of the essence in this Agreement. COLLECTOR shall make all reasonable efforts to complete the services set forth herein as expeditiously as possible and to meet the schedule(s) established by OWNER, acting through its City eager or his designee. ARTIC COMPENSATION A. COMPENSATION TERMS: 1. "Collection Expenses" is defined as expefob incurred by COLLECTOR in the collection process incident to the work required under the Scope of Services, including but not ne I limited to labor, postage, telephone, skip tracing, and insurance. 2. "Trust Account" is es the account established by OWNER for deposit of payments received b COLLECTOR on collection accounts. B. BILLAB PAYMENT: PRIM YMENT: For and in consideration of the collection services to be LECTOR herein, OWNER agrees that COLLECTOR will be paid a gent flee equal to 30% (thirty percent) of revenues collected by COLLECTOR on collection accounts referred to COLLECTOR by OWNER. COLLECTOR shall invoi OWNER for the previous month's collections within 15 calendar days from final OWNER confirmation of payments. Payment by OWNER of this contingent fee from the Trust Account shall constitute the "Primary Payment" to COLLECTOR. Invoices for Primary Payments are due and payable within 30 days of receipt by OWNER. 2. SUPPLEMENTAL PAYMENT: In addition, at the time it makes its Primary Payment, OWNER shall pay COLLECTOR an amount equal to 30% of the amounts paid PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 4 of 11 directly to OWNER during that same month relating to collection accounts previously referred to COLLECTOR, so long as COLLECTOR has made one or more contacts with the debtor prior to the OWNER's receipt of payment. For purposes of this paragraph, it is presumed by both parties that COLLECTOR has not made any contact with a debtor within the first 7 calendar days following referral of account by the OWNER. The OWNER shall report to COLLECTOR all payments received relating to collection accounts and the date such payments were received. In the even COLLECTOR believes it has made contact with some debtor who submitte payment directly to the OWNER and for which it did not receive a corresponding Secondary Payment, it will notify the OWNER of: the identifying information of the account; the date of payment; and the amount believed owed to COLLECTOR. COLLECTOR will also supply the OWNER with evidence sufficient to establish that contact was made with that debtor. Proof of mailing of written correspondence is not sufficient to establish contact with a debtor without proof of actual receipt by the debtor or person submitting payment to the OWNER for satisfaction of a collection account. If appropriate evidence of contact with the debtor has been received by the OWNER at least 72 hours prior to the next supplemental payment becoming due under this provision, then the OWNER shall a the appropriate amount to next supplemental payment made to COLLECTOR; if received at least 72 hours prior to issuance of a month's supplemental payment e OWNER may hold the funds until the following supplemental payrn is due. In the event no payments for collection accounts are directly made to the OWNER during a calendar month, it shall report that to the COLLECTOR. 3. COLLECTOR agrees that in the event any debt underlying a collection account is forgiven, dismissed, or otherwise canceled by OWNER (for any reason or no reason at all), then COLLECTOR will not be paid or owed any amount (Primary Payment or Supplemental Payment) for that collection account. Partial payments to COLLECTOR may be made on the basis of detailed monthly statements rendered to and approved by OWNER through its City Manager or his designee; however, under no circumstances shall any monthly statement for services exceed the value of the work performed at the time a statement is rendered. Nothing contained in this Article shall require OWNER to pay for any work which is unsatisfactory, as reasonably determined by the City Manager or his designee, or which is not submitted in compliance with the terms of this Agreement. OWNER shall not be required to make any payments to COLLECTOR when COLLECTOR is in default under this Agreement. 4. COLLECTOR shall be solely responsible for payment of all Collection Expenses, which shall not be invoiced to OWNER. PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 5 of 11 ARTICLE 6 OBSERVATION AND REVIEW OF THE WORK COLLECTOR will exercise reasonable care and due diligence in discoverin promptly reporting to OWNER any defects or deficiencies in the work of COLL OR subcontractors. ARTICLE 7 OWNERSHIP OF DOCUMENTS All documents required to be prepared by COLLECT/-,((an6AOLLEC' subcontractors) pursuant to this Agreement are instruments of service, and shall become the property of OWNER upon the termination of this Agreement. COLLECTOR is entitled to retain copies of all such documents, but is solely responsible for ensuring that any' ation made confidential by law is not improperly disclosed to any third party. ARTIr..I F J 1101974»ki107:10111 COLLECTOR shall provide services to OWNER as an independent contractor, not as an employee of the OWNER. COLLECTOR shall not have or claim any right arising from employee status, nor shall any of its employees, agents, or assigns. OWNER shall not control the means, methods, sequences, procedures, or techniques utilized by COLLECTOR to perform work or services under this Agreement or any associated task order. COLLECTOR is not authorized to receive requests for public information or records on behalf of OWNER. ARTICLE 9 AUDITS AND INSPECTION OWNER shall have the right to audit and make copies of the books, records and computations pertaining to this Agreement, but its right to audit COLLECTOR's records extends only to those materials dated 4 years prior to the OWNER's request to inspect. COLLECTOR shall retain such books, records, documents and other evidence pertaining to this Agreement during the contract period and five years thereafter (or for the time period required by law, whichever is longer), except if an audit is in progress or audit findings are yet unresolved, all applicable case records shall be kept until all audit tasks are completed and resolved. These books, records, documents and other evidence shall be deliverable to OWNER within 10 business days of written request. Further, COLLECTOR shall also require all Subcontractors, material suppliers, and other payees to retain all books, records, documents and other evidence pertaining to this Agreement, and to allow OWNER similar access to information relating to collection accounts. All books and records will be made available within a 50 mile radius of the City of Anna. Failure to comply with the provisions of this section shall be a material breach of this contract and shall constitute, in OWNER's sole discretion, grounds for termination thereof. PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION Page 6 of 11 Each of the terms "books", "records", "documents" and "other evidence", as used above, shall be construed to include drafts and electronic files, even if such drafts or electronic files are subsequently used to generate or prepare a final printed document. The right to audit provided under this section does not extend to any information held by COLLECTOR or a third party providing goods or services to COLLECTOR if said information does not reference OWNER or a debtor/collection account referred by OWNER, nor does it extent to any records not containing information obtained for the sole purpose of performing the services encompassed by this Agreement. ARTICLE 10 INDEMNITY AGREEMENT COLLECTOR shall indemnify, defend, and save and hold harmless OWNEFand its officers, agents, and employees from and against any and all liability, claims, demands, damages, losses, and expenses, including, but not limited to court costs and reasonable attorney fees incurred by the OWNER, that is caused by or results from an act of negligence, intentional tort, intellectual property infringement, or failure to pay a subcontractor or supplier committed by the COLLECTOR or the COLLECTOR'S agent, another COLLECTOR under contract, or another entity over which the COLLECTOR exercises control. Nothing in this Agreement shall be construed to create a liability to any person who is not a party to this Agreement, and nothing herein shall waive any of the parties' defenses, both at law or equity, to any claim, cause of action, or litigation filed by anyone not a party to this Agreement, including but not limited to the defense of governmental immunity, which defenses are hereby expressly reserved. ►.1-11dr.0=K91 INSURANCE During the performance of the services under this Agreement, COLLECTOR shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with Best Carriers of at least an A- or above: Q "kmprehg&e General Liability Insurance with bodily injury limits of not less than 0 Qfor each occurrence and not less than $500,000 in the aggregate, and with pdamage limits of not less than $100,000 for each occurrence and not less than $100, in the aggregate. COLLECTOR shall furnish insurance certificates or insurance policies at OWNER's request to evidence such coverages. The insurance policies shall name OWNER as an additional insured on all such policies, and shall contain a provision that such insurance hall not be canceled or modified without 30 days' prior written notice to OWNER and OLLECTOR. In such event, COLLECTOR shall, prior to the effective date of the change or cancellation, serve substitute policies furnishing the same coverage. PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 7 of 11 0 I:3 X ARTICLE 12 TERMINATION OF AGREEMENT OWNER may at any time withdraw any collection account from the scope of services authorized to be provided by COLLECTOR_ w Notwithstanding any other provision of this Agreement, either party may giving 30 days' advance written notice to the other party. If the Agreement is terminated, COLLECTOR shall immediately cease all services and shall render a final bill for services to OWNER within 30 days after the date of termination. OWNER shall pay COLLECTOR for all services properly rendered and satisfactorily performed and incurred prior to the date of termination, in accordance with Article 5 "Compensation." Should OWNER subsequently contract with a new COLLECTOR for the continuation of services relating to this Agreement, COLLECTOR shall cooperate in providing information. COLLECTOR shall turn ov a I documents prepared or furnished by COLLECTOR pursuant to this Agreement to OWNER on or before the date of termination, but may maintain copies of such documents for its use. F-3A9[a]R=6KI37:41 AR NOTICES R WA All notices, communications, and reports required or permitted under this Agreement shall be personally delivered or mailed to the respective parties by depositing same in the United States mail to the address shown below, certified mail, return receipt requested, unless otherwise specified herein. Mailed notices shall be deemed communicated as of three days after mailing: TovLLECTOR Gregory L. Pitchford Chief Financial Officer American Municipal Services 3724 Old Denton Rd Carrollton, Texas 75007 To OWNER: City Manager City of Anna 111 North Powell Parkway P.O. Box 776 Anna, Texas 75409 All notices shall be deemed effective upon receipt by the party to whom such notice is given, or within three days after mailing, whichever date occurs first. ARTICLE 15 ENTIRE AGREEMENT PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 8 of 11 This Agreement constitutes the complete and final expression of the Agreement of the parties, and is intended as a complete and exclusive statement of the terms of their Agreements, and supersedes all prior or contemporaneous offers, promises, representations, negotiations, discussions, communications, and Agreements which may have been made in connection with the subject matter hereof. ARTICLE 16 SEVERABILITY E3 If any provision of this Agreement is found or deemed by a court of cMffpeteff jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the parties shall reform this Agreement to replace such strickenq&vision . h a valid and enforceable provision which comes as close as possibl eressi a in on of the stricken provision. ARTICLE 17 COMPLIANCE WITH LA COLLECTOR shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereinafter be amended. ARTICLE 18 DISCRIMINATION PROHIBITED In performing the services required hereunder, the COLLECTOR shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. 0 ARTICLE 19 PERSONNEL COLLECTOR represents that it has or will secure, at its own expense, all ,required to perform all the services required under this Agreement. Such not be employees or officers of, or have any contractual relations with DLLECTOR shall inform OWNER of any conflict of interest or potential rerest that may arise during the term of this Agreement. I services required hereunder will be performed by COLLECTOR of rpervision. All personnel engaged in work shall be qualified, and shall be id permitted under state and local laws to perform such services. ARTICLE 20 ASSIGNABILITY personnel personnel OWNER. conflict of under its authorized PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 9 of 11 COLLECTOR shall not assign any interest in this Agreement, and shall not transfer any interest in this Agreement (whether by assignment, novation, or otherwise) without the prior written consent of OWNER. ARTICLE 21 MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charge therewith, and no evidence of any waiver or modification shall be offered or received evidence in any proceeding arising between the parties hereto out of or affecting fs Agreement, or the rights or obligations of the parties hereunder, and unless such waiver or modification is in writing and duly executed; and the parties further gr t the provisions of this section will not be waived unless as set forth herein. An ARTICLE 22 M � 1W MISCELLANEOUS A. The following exhibits are attached to and made a pfis Agreement: None. B. Venue of any suit or cause of actiovun his Agrient shall lie exclusively in Collin County, Texas. This Agreement shall be construed in accordance with the laws of the State of Texas. C. OWNER shall assist COLLECTOR by placing at COLLECTOR's disposal all available information pertinent to the services rendered pursuant to this Agreement, including previous reports, any other data relative to the collection accounts and arranging for the access thereto. D. COLLECTOR shall at all times maintain OWNER'S confidential or proprietary information, including but not limited to account numbers for debtors, in strictest confidence and shall disclose same to third parties only as specifically instructed by OWNER. Any disclosure of privileged or confidential information by OWNER to COLLECTOR is in furtherance of OWNER's purposes and is not intended to and does not waive any privileges that may exist with regard to such information. E. The captions of this Agreement are for informational purposes only, and shall not in any way affect the substantive terms or conditions of this Agreement. IN WITNESS HEREOF, the City of Anna, Texas has caused this Agreement to be executed by its duly authorized City Manager, and COLLECTOR has executed this Agreement through its duly authorized undersigned officer on this the 2-0 day of SE�76M K CITY OF AN NA, TEXAS PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 10 of 11 ATTEST: CARRIE SMITH, CITY SECRETARY WITN PHILIP SANDERS, CITY MANAGER AMERICAN MUNICIPAL SERVICES CORPORATION ), its President :. �A.Ebkl 19wo )01 PROFESSIONAL SERVICES AGREEMENT FOR UTILITY BILLING COLLECTION SERVICES Page 11 of 11 CITY OF ANNA, TEXAS Item No. 13 City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: Clayton Fulton Exhibits: Yes AGENDA SUBJECT: Consider/Discuss/Action regarding a resolution authorizing an Agreement with American Municipal Services Corporation for utility and court collections. SUMMARY: The City currently has collections contract with Perdue, Brandon, Fiedler, Collins, & Mott, L.L.P. Attorneys at Law (Perdue Brandon) for collections of delinquent tax and utility accounts and court fines and fees. Currently, Perdue Brandon has not performed well under the contracts for delinquent utility accounts and collection of court fines and fees (delinquent accounts). City staff met with Perdue Brandon approximately two years ago to discuss their performance and establish expectations moving forward. During that meeting staff expressed concerns over regular reporting and overall performance. Perdue Brandon expressed their intent to provide monthly reports and improve performance. Since that time, staff has not experienced the level of service as discussed. Performance has not improved and monthly reporting only lasted 2 months. Additionally, Perdue Brandon does perform actual collections. They send letters instructing delinquent account holders to pay the City of Anna for amounts past due. This is problematic as the city cannot know for certain if payments received are the result of Perdue Brandon's efforts. Finally, Perdue Brandon has not invoiced the City on a regular basis. In the last month, staff has received 5 invoices for work dating as far back as 2008 and as current as May of 2015. Their invoices cover anywhere from 2-4 years. Staff sent a cancellation letter to Perdue Brandon late last week with an email copy of the letter. The contract for collection of delinquent tax accounts will continue; however, staff will schedule a meeting with Perdue Brandon to discuss their efforts on delinquent tax accounts and expectations for those accounts. The attached resolution would authorize the City Manager to execute contracts with American Municipal Services (AMS) for collections of delinquent utility accounts and for court fines and fees. Staff has checked several references (including the cities of Melissa and Prosper). All references have come back with positive reviews. Perdue Brandon is a legal firm that engages in collections efforts while AMS is a collections company. Staff believes this will result in higher resolution rates, higher levels of service, and better results. AMS has assured staff that no amount is too small and no account it too old (also stated on their website). In the process of reviewing other potential companies, staff found that some companies would not collect on accounts older than two years or would charge a higher fee for those accounts. One company in particular would not quote us a rate until we provided them a profile of all our delinquent accounts. AMS has a flat fee of 30% of the collected amount. Additionally, AMS will collect the money for the City and remit the City's amounts monthly. Perdue Brandon was charging 20% on utility accounts and 30% on court fines & fees. AMS will contact delinquent account holders by mail and by phone. Additionally AMS employs bilingual staff that can take payments over the phone. AMS has an average resolution rate of 75% and we expect to see similar results with amounts turned over to them for collections. STAFF RECOMMENDATION: Approve the resolution. CITY OF ANNA, TEXAS Item No. 14 City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: City Manager Exhibits: N/A AGENDA SUBJECT: 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: SUMMARY: 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) b. discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); acquisition of right-of-way, easements, and land for municipal facilities; 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. STAFF RECOMMENDATION: CITY OF ANNA, TEXAS Item No. 15 City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: City Manager Exhibits: N/A AGENDA SUBJECT: Consider/Discuss/Action on any items listed on posted agenda Workshop Session or any closed session occurring during this Regular Meeting, as necessary. SUMMARY: STAFF RECOMMENDATION: CITY OF ANNA, TEXAS AGENDA SUBJECT: Adjourn SUMMARY: Item to adjourn the meeting. STAFF RECOMMENDATION: Staff recommends a motion to adjourn. Item No. 16 City Secretary's use only City Council Agenda Staff Report Date: September 8, 2015 Staff Contact: City Manager Exhibits: None