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HomeMy WebLinkAbout2018-02-03 Special Meeting PacketTHE CITY OF Anna AGENDA City full Special Meeting Saturday, February 3, 2018 @ 90®®AM Randall Scott Architects, 2140 Lake Park Blvd, Ste. 300, Richardson, Texas 75080 The City Council of the City of Anna will meet in Special Session at 9:00 AM, on February 3, 2018, at Randall Scott Architects, 2140 Lake Park Blvd., Ste, 300, Richardson, Texas 75080, to consider the following items. 1. Call to Order, Roll Call and Establishment of Quorum 2. Presentation/Consider/Discuss/Action on the City Strategic Plan. (City Manager/City Council) 3. Presentation/Consider/Discuss/Action on proposed City facilities. (Randall Scott) 4. Presentation/Consider/Discuss/Action on financing options for City projects. (Dana Thornhill/Jim Sabonis) 5. Consider/Discuss/Action on Charter Amendments. (Mayor) 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 January 31, 2018. , 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. City of Anna Strategic Plan zo17-2022 {% n��P IL Our Vision ANNA IS A COMMUNITY OF FRIENDS AND FAMILY WORKING TOGETHER TO BUILD A SAFE AND SUSTAINABLE FUTURE. _ r ' Fiscal Responsibility We believe that fiscal responsibility and the prudent stewardship of public funds is essential for confidence in city operations. Accountability We are responsible, committed, and accountable to the public who trust us to carry out our duties with integrity. Customer Focus We are a team, dedicated to serving our citizens and residents. Our currency is the goodwill of the public. Goodwill is earned or lost with every contact and conversation. Transparency We are open and fair in sharing information with the public about our policies, procedures, programs, and practices. Innovation We provide unique approaches and creative solutions to the problems and opportunities before us. Aspireto Serve I N 5 p I re Confidence and Trust Nnovate Consistently AchieveExcelience Anna City Council and Staff Strategic Planning Summit February 2017 #1 ECONOMIC DEVELOPMENT #2 COMMUNITY VIBRANCY #3 FACILITIES AND INFRASTRUCTURE Theme #s: ECONOMIC DEVELOPMENT Goal: Pursue Targeted Economic Development Develop and implement strategies that support targeted economic development to attract and retain businesses, increase tax revenue, and create primary and professional jobs. ❖ Attract professional jobs ■ Develop a professional business park in Anna and fill it up with tenants. ■ Focus on attracting jobs in the medical industry (medical plaza, minor emergency care). ■ Explore opportunities to build the professional workforce in Anna through partnerships with businesses and educational Institutions. •'• Promote downtown development ■ Adopt development regulations for the downtown district consistent with the updated master plan. ■ Explore potential public private partnerships (P3) opportunities ■ Promote a "park and play" atmosphere in the downtown district. ■ Improve the SH 5 and 4tn streetscapes in the downtown district. Theme #2: COMMUNITY VIBRANCY Goal: Improve Curb/Aesthetic Appeal of Community Develop policies and create programs that result in a consistent, aesthetic, look and feel of the thoroughfares, parks, open spaces, and signage of the City of Anna. •'• Focus on aesthetic improvements to major transportation corridors ■ Implement a way -finding community signage program. ■ Design and construct landscape and monument enhancements at inter- changes along US 75 as they are built or reconstructed. ■ Design & construct landscape enhancements within the FM 455 median between US 75 & SH 5. ■ Develop design standards for future local median divided roadways. ❖ Improve and expand city's parks and open spaces ■ Continue focus on maintenance and operation of existing parks and facilities in order to create an excellent "customer experience". ■ Focus on improvements to Natural Springs Park (ponds, restrooms, parking areas, office space). ■ Evaluate feasibility of city recreation programs (youth and adult). ■ Update the City's Parks Master Plan. Goal: Diversify Housing & Neighborhood Options Study options to expand the choices residents and future residents will have for high -quality residential neighborhoods. ❖ Explore opportunities to renegotiate or revise existing residential entitlements in order to promote construction of higher value residential neighborhoods ❖ Update comprehensive plan ■ Review community housing plan to identify target density and lot size mix for single family development; and the optimal unit percentage mix of the various residential housing types (single family, multifamily, etc.). Goal: Promote our Community Brand ton FeRs Anna na Benton*Nk:Kinn 9 5 a Tyler x Li Anna, T Aggressively and effectively promote our community brand to increase community pride, diversity our tax base, and establish a nationally recognized brand. ❖ Be recognized in regional and national publications for our community brand Goal: Encourage Inter -Local Cooperation Actively pursue community partnerships and inter -local cooperation with organizations that have similar missions as the City of Anna. e # %ION br ` - I .'� 10 ❖ Form stronger relationships with the Greater Anna Chamber of Commerce, Anna ISD, Collin County Commissioner Court, North Central Texas Council of Governments, and other similar community organizations and partners ■ As time permits, attend and become involved in meetings of our various community partners. ■ As appropriate, serve on boards, advisory commission, study groups, etc. ❖ Promote community functions that foster civic pride ❖ Support and promote community volunteer programs Theme #3: FACILITIES AND INFRASTRUCTURE Goal: Upgrade City Facilities and Infrastructure Upgrade City facilities and infrastructure in order to plan for and accommodate growth, provide for efficient delivery of services, inspire public confidence, and promote investment in the City of Anna. ❖ Construct anew Anna City Hall that consolidates city offices and provides sufficient space for staff, accommodates future growth, improves operational efficiency, and serves as an anchor to our downtown ❖ Develop financing plan for the future construction of: Fire Station #2; remodel of the Central Fire Station #1; remodel and expansion of Police Department facilities ❖ Make improvements to city infrastructure that are necessary to accommodate the growth of our community ■ Complete capacity, management, operations, and maintenance (CMOM) program for wastewater system. ■ Focus on I&I detection and repair. ■ Complete storm water/drainage study & develop master plan. ■ Construct the Foster Crossing water line project and the Collin pump station activation project. ■ Construct the US 75 utility relocation project. ■ Design and construct the SH 5 utility relocation project. ■ Continue transition to a complete automated metering infrastructure system. Goal: Build Transportation Infrastructure Design and build transportation projects that relieve traffic congestion, increase mobility, enhance curb appeal, and stimulate residential and business growth. ❖ Continue coordination and cooperation with TxDOT on the reconstruction of US 75 from Throckmorton Creek to the Collin County Line ❖ Continue coordination and cooperation with TxDOT on the reconstruction of SH 5 from SH 121 to the Collin County Line ❖ Construct the Hackberry Lane Reconstruction Project (SH 5 to Slayter Creek) ❖ Secure funding to complete design and right-of-way acquisition for the Ferguson Parkway project (Taylor to Outer Loop) so that it is shovel -ready pending additional funding opportunities ❖ Complete street audit/condition assessment/prioritization for existing streets ❖ Complete design and proceed with right-of-way acquisition for extension of Rosamond Parkway to US 75 ❖ Identify and apply for viable grant funding opportunities thought NCTCOG and TxDOT for major transportation projects ❖ Adopt 50% of the NCTCOG metropolitan transportation plan policy bundle voluntary measures to obtain transportation development credits that can be leveraged as cash match for transportation projects ❖ Prioritize and attend key transportation meetings with Collin County, TxDOT, and NCTCOG and pursue cooperative opportunities Come along, and we'll tell you more about why we're proud to call Anna our hometown — and why you should too! H i I ItopSecu ri ties A Hilltop Holdings Company_ Contact Jim Sabonis Managing Director 1201 Elm Street, Suite 3500 Dallas, Texas 75270 Direct: 214.953.4195 Fax: 214.953.4050 jim.sabonis(c�hilltopsecurities.com Andre Ayala Director 1201 Elm Street, Suite 3500 Dallas, Texas 75270 Direct: 214.953.4184 Fax: 214.953.4050 andre.ayala(@-hiIItopsecurities.com THE CITY OF manna Jorge Delgado Assistant Vice President 1201 Elm Street, Suite 3500 Dallas, Texas 75270 Direct: 214.859.1714 Fax: 214.953.4050 forge.delgado(a�-hilltopsecurities.com Municipal Facilities and Streets Preliminary Financing Analysis February 3, 2018 City of Anna, Texas Table of Contents Page Overview of City of Anna's High Credit Quality Current General Obligation Long -Term Bond Ratings 2 Overview of Fitch's "AA-" Bond Rating 3 Overview of Moody's "Aa3" Bond Rating 4 Information on Current and Historical Municipal Tax Exempt Interest Rates 5 Summary of Municipal Facilities Bond Sizing and Financing Scenarios 6 Anna Streets Financing Analysis 7 Anna Streets Financing — Current Priorities 8 Discussion — Questions and Next Steps 9 Appendix A - Incremental Revenues Available for New Municipal Facilities 10 n 0 T D Z D X D © 2018 Hilltop Securities Inc. All rights reserved AWlltopS,Q.p..ies 1 Member NYSE/FINRA/SIPC A Hilltop Holdings Company Anna's Existing Bond Ratings Long Term Short Term (less than 3 years) Moody's Fitch / S&P Moody's S & P Fitch Aaa AAA MIG 1 SP-1+ F1 (+ or -) rM Aa 1 AA+ MIG 2 SP-1 F2 (+ or -) 0 Aa2 AA MIG 3 SP-2 F3 (+ or -) ------------------ - Aa3 AA- SG SP-3 B (+ or -) L Al A+ A2 A, M A3 A- - - " Ratings below the line are rt speculative grade. Cr L Baa 1 BBB+ s ,LM Baa2 BBB = The City of Anna is currently Baa3 BBB- rated _ _ "AA-'; Stable Outlook by Fitch Ba 1 BB+ and Bat BB "Aa3" by Moody's ., © 2018 Hilltop Securities Inc. All rights reserved AWlltopS,Q.p..ies 2 Member NYSE/FINRA/SIPC A Hilltop Holdings Company City of Anna's Fitch's Bond Rating = "AA-, Stable Outlook" as of April, 2017 "Anna's bond rating was upgraded in April 17, 2017 to "AA-, Stable Outlook" due to Fitch's application of its revised criteria for U.S. state and local governments, released on April 18, 2016. The rating upgrade reflects "Anna's exceptionally strong financial operations, solid expenditure flexibility and strong revenue growth prospects, as well as the city's substantial independent ability to raise revenues:' Fitch's Four Key Rating Drivers 1) Revenue Framework - `aaa' Factor Assessment Revenue growth prospects are strong. Continued residential development and population gains. 2) Operating Performance - `aaa' Factor Assessment Budget flexibility, supplemented by large operating reserves provides exceptional gap -closing capacity through typical economic cycles. 3) Expenditure Framework - `aa' Factor Assessment Expenditures to grow in line with revenues. Ample flexibility over labor costs. Moderate carrying costs do not hinder expenditure flexibility. o D 4) Long -Term Liability Burden -'a' Factor Assessment z D Long-term liabilities, driven primarily by overlapping debt, are elevated but still in the moderate range. The net pension liability is negligible. m x D 1) Primarily Anna ISD's debt © 2018 Hilltop Securities Inc. HilltopSe[urities IM 2) Reflects Texas ISD's issuance of ad valorem debt 3 All rights reserved A Hilltop Holdings Company. 3) Each state's municipal entities have different funding processes Member NYSE/FINRA/SIPC City of Anna's Moody's Bond Rating = "Aa3" as of October 30, 2017 Moody's upgrades City of Anna from "A I" to "Aa3" "The Aa3 rating reflects material assessed valuation growth supported by high residential demand because of the City's favorable location to a strong job market in the Dallas Fort Worth metropolitan area. The rating also reflects ample reserves a benefit of consistently strong operating performance, as well as an affordable debt and pension profile." Credit Strengths ■ Rapidly growing tax base favorably located north of Dallas ■ Consistently positive operating performance drives high reserve levels ■ Affordable debt and pension profile Credit Challenges ■ Income levels are slightly under the Aa3 median ■ Unanticipated challenges related to growth "The City demonstrates good governance by utilizing conservative budgeting evident by actual z Z performance surpassing expectations, and multiyear capital planning. © 2018 Hilltop Securities Inc. HilltopSeAll rights reserved A Hiltlap HoldingsCompanompary es Member NYSE/FINRA/SIPC Information on Current and Historical Municipal Tax Exempt Interest Rates 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 : • • • • Current 3. 2.00 20 Yr Avg 4. 20 Yr Max 6. 1.00 120 Yr Min 2. Bond Buyer GO Index 20 Year History Weeklv Actual as of 1/25/2018 —Bond Buyer GO Index January 1, 2000 Julv 7. 2016 Source: The Bond Buyer Current: 3.59% 0.00 L 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 This graph depicts historical interest rates and their respective relationships. Future interest rates are dependent upon many factors such as, but not limited to, interest rate trends, tax rates, the supply and demand of short term securities, changes in laws, rules and regulations, as well as changes in credit quality and rating agency considerations. The effect of changes in such factors individually or in any combination could materially affect the relationships and effective interest rates. These results should be viewed with these potential changes in mind as well as the understanding that there may be interruptions in the short term market or no market may exist at all. ^., 0 T D z a m x D © 2018 Hilltop Securities Inc. HilitopSecurities IM 5 All rights reserved A Hilltop Holdings company. Member NYSE/FINRA/SIPC Summary of Municipal Facilities Bond Sizing and Financing Scenarios Par Amount of Bonds Net Project Funds Assumed Interest Rate Assumed Funding Max. Amortization/Term Max. Assumed Taxable Assessed Valuation Assumed Growth Debt Service Tax Rate Wal-Mart Development Incremental Revenue Allocated to Financing $18,120,000 $17,750,000 $23,905,000 $23,450,000 4.15% - Tax -Exempt Fixed Rate Summer 2018 Up to 30 years — Final Payment in February 2048 $1,000,000,000 (Tax Year 2018) 11.89% for 1 year 0% after Tax Year 2018 $0.1224 (Existing as of Tax Year 2017 — no change in tax Year 2018) $0 $1,000,000,000 (Tax Year 2018) 11.89% for 1 year 0% after Tax Year 2018 $0.1555 (Approx. $0.0331 increase from $0.1224) $331,000 0 T a Z Z D m x a N Projections and estimates for planning and discussion purposes only. Interest rates, Taxable ©2018 Hilltop Securities Inc. HilitopSeeurities P g P P y' 6 All rights reserved q„,II„N Holdings C,„,pa„y. Assessed Valuation growth and other variables are subject to change at any time. Member NVSE/FIWRA/SIPC Anna Streets Financing Analysis ■ The City is exploring the issuance of tax-exempt obligations for street projects. ■ It is currently projected that approximately $300,000 per year will be available for streets financing as a result of the additional 0.25% sales tax re -allocated from the former 4A Corporation to the City's general fund (as of November 2016). ■ Preliminary estimate of tax-exempt financing as City's "Aa3/AA-" rated Certificates of Obligation — $4,220,000 Par Amount of Certificates — $4,085,000 Net Project Funds for Street Projects — Current Non -Bank Qualified "Aa3/AA-" uninsured interest rates as of 1/30/2018 + 0.50% o All -in Interest Cost of approx. 4% — 20 year term for the Certificates (final payment in February 2038) — Funding assumed in the Summer of 2018 ■ The following page shows a list of Street Projects priorities as currently identified by the City Staff. © 2018 Hilltop Securities Inc. All rights reserved AWlltopS,Q.p..ies 7 Member NYSE/FINRA/SIPC A Hilltop Holdings Company Anna Streets Financing — Current Priorities ■ TXDOT 10% match to acquire ROW on Hwy 5 - $1,600,000 ■ Hackberry Road (Slayter Creek to SH 5) - Right-of-way Acquisition - 100 000 (Part I has been completed per existing agreement) ■ Rosamond Parkway (Existing west terminus to US 75) (Design and right-of-way acquisition) - 896 500 — (Construction Cost would be another $6, 588,167, however, only design and right-of-way acquisition was contemplated in the Strategic Plan. The idea was that the project would be "shovel - ready" positioning it for transportation dollars.) ■ Existing Asphalt Road Rehabilitation - $1,500,000 ■ Hackberry Road (Slayter Creek to SH 5) - Bidding and Construction - $747,000 (Part I has been completed per existing agreement) © 2018 Hilltop Securities Inc. All rights reserved AWlltopS,Q.p..ies $ Member NYSE/FINRA/SIPC A Hilltop Holdings Company Anna Streets Financing — Current Priorities (cont.) ■ Ferguson Road (Hackberry to Rosamond) (Design and right-of-way acquisition) - 695 800 - (Construction Cost would be another $5, 745,199, however, only design and right-of- way acquisition was contemplated in the Strategic Plan. The idea was that the project would be "shovel -ready" positioning it for transportation dollars.) ■ Hackberry West (Ferguson to US 75) - $596,5007 (Construction Cost would be another $4, 691, 996, however, only design and right-of-way acquisition was contemplated in the Strategic Plan. The idea was that the project would be "shovel -ready" positioning it for transportation dollars.) © 2018 Hilltop Securities Inc. All rights reserved AWlitopS,Q.p..ies 9 Member NYSE/FINRA/SIPC A Hilltop Holdings Company Questions, Discussion and Next Steps © 2018 Hilltop Securities Inc. All rights reserved AWlltopSeC..p.. es 1 Q Member NYSE/FINRA/SIPC A Hilltop Holdings Company Appendix A Incremental Revenues Available for New Municipal Facilities D z z D © 2018 Hilltop Securities Inc. All rights reserved AWlltopSeC..p..es 11 Member NYSE/FINRA/SIPC A Hilltop Holdings Company Incremental Revenues Available for New Municipal Facilities (1 of 2) ■ Internal estimates and analysis indicate the Wal-Mart Development will generate incremental property and sales taxes. ■ The additional property tax base is expected to be in the tax rolls in Tax Year 2018 (1/1/2018 valuation) and additional property tax revenues to flow in Fiscal Year 2019 (taxes due 1/31/2019). ■ The projected new property tax base is assumed to be part of the growth in taxable assessed valuation for Tax Year 2018. ■ Additional sales taxes are realized two months after the retail development opens its doors due to flow of funds process (State collects and then remits sales taxes to the City). ■ The incremental sales taxes would represent additional annual sales taxes (1.25%) to the general fund in the amount of $413,750 — 1 % of sales tax for general governmental purposes = $331,000 — 0.25% of sales tax currently dedicated for streets = $82,750 D Z Z D © 2018 Hilltop Securities Inc. All rights reserved AWlltopS,Q.p..ies 12 Member NYSE/FINRA/SIPC A Hilltop Holdings Company Incremental Revenues Available for New Municipal Facilities (2 of 2) ■ The Municipal Facilities financing model assumes the incremental sales taxes for general governmental purposes could be allocated to the bonds — $331,000 incremental sales taxes generated by the Wal-Mart Development — The incremental sales taxes ($82,750) currently allocated for streets (0.25%) would not be considered for this financing model as those would be allocated to streets only ■ $331,000 incremental sales taxes is expected to represent approx. 3.31 cents ($0.0331) as property tax rate equivalent assuming the taxable assessed valuation as of Tax Year 2018 grows to $1,000,000,000. ■ Given the projected incremental sales taxes, the City could transfer 3.31 cents from its Maintenance and Operation Tax Rate to its Debt Service Tax Rate in order to increase financing capacity. ■ Transferring 3.31 cents from Maintenance and Operations to Debt Service is structured as revenue neutral since the general fund would expect to receive at least $331,000 additional sales taxes available for general governmental purposes. ■ The aggregate tax rate is currently structured to remain at the existing rate of $0.6013. — M&O tax rate would change from $0.4789 to $0.4458 — Debt Service tax rate would change from $0.1224 to $0.1555 © 2018 Hilltop Securities Inc. All rights reserved AWlltopSsQ.p..ies 13 Member NYSE/FINRA/SIPC A Hilltop Holdings Company