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HomeMy WebLinkAbout2016-03-08 Work Session & Regular Meeting Packet1. 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. 1 CITY OF ANNA AGENDA NOTICE – CITY COUNCIL- WORK SESSION March 8, 2016 6:30 p.m. – Anna City Hall The City Council of the City of Anna will meet in Work Session at 6:30 p.m., on March 8, 2016 at Anna City Hall, located at 111 N. Powell Parkway (Hwy 5), regarding the following items: 1. Call to Order, Roll Call and Establishment of Quorum. 2. Briefing/Discussion regarding hotel occupancy tax (Clayton Fulton) 3. Briefing/Discussion regarding Fiscal Year 2016-2017 budget calendar (Clayton Fulton) 4. Briefing/Discussion regarding the progress of the reconstruction of FM 455 (Joseph Johnson) 5. Briefing/Discussion regarding Annexation of land west of Lakeview Estates (Maurice Schwanke) 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. 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 closed 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. 2 7. Consider/Discuss/Action on any items listed on the posted agenda or any closed session occurring during this meeting, as necessary. 8. 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. March 4, 2016. ___________________________________________ Carrie L. Smith, City Secretary City Secretary-WS 1 - Call to Order - Staff Report Item No. WS 1 City Secretary’s use only City Council Agenda Staff Report ______________________________ AGENDA SUBJECT: Call to Order, Roll Call and Establishment of Quorum. SUMMARY: STAFF RECOMMENDATION: Meeting Date: March 8, 2016 Staff Contact: City Administrator Exhibits: No City Secretary-WS 2 - HOT Tax Workshop Discussion Item No. WS 2 City Secretary’s use only City Council Agenda Staff Report ______________________________ AGENDA SUBJECT: Briefing/Discussion regarding hotel occupancy tax SUMMARY: Periodically city staff will receive inquiries regarding the development of a hotel in Anna. While there is no specific project proposed at the time, staff believes there will be interest in the future from the private market for the development of a hotel in Anna. The discussion here is to brief the council on the local hotel occupancy tax (HOT tax) and receive any council direction on the matter. Texas Tax Code 351.002 allows all incorporated Texas municipalities to enact a hotel occupancy tax (HOT tax) within the city limits and the option for cities with a population of less than 35,000 to adopt the tax in its extra-territorial jurisdiction. There are some variations in the code allowing for certain cities to adopt different tax rates based upon certain criteria related to population and geographic location; however, the City of Anna does not fall into any of these various categories and may enact a HOT tax of up to 7%. Staff have conducted a review of surrounding municipalities’ respective HOT tax rates and found the cities of Frisco, Allen, McKinney, Plano, Little Elm, Fairview, Sherman, and Denison have all adopted a rate of 7%. The state HOT tax is 6% making the total HOT tax paid in these cities 13%. The use of HOT tax revenue is highly regulated by the Texas tax code with certain restrictions on allocation of revenue based upon various criteria. Generally speaking, all HOT tax expenditures must meet the following two-part test: •Criteria 1 - Every expenditure must directly enhance and promote tourism and the convention and hotel industry •Criteria 2 – Every expenditure must clearly fit into one of the nine statutory categories listed below Meeting Date: March 8, 2016 Staff Contact: Clayton Fulton Exhibits: Yes City Secretary-WS 2 - HOT Tax Workshop Discussion 1 Funding the establishment, improvement, or maintenance of a convention center or visitor information center 2 Paying the administrative costs for facilitating convention registration 3 Paying for advertising, solicitations, and promotions that attract tourists and convention delegates to the city or its vicinity 4 Expenditures that promote the arts 5 Funding historical restoration or preservation programs 6 Funding certain expenses, including promotion expenses, directly related to a sporting event within counties with a population under 1 million 7 Funding the enhancement or upgrading of existing sports facilities or sports fields for certain municipalities 8 Funding transportation systems for tourists 9 Signage directing tourists to sights and attractions that are visited frequently by hotel guests in the municipality Based upon the statute, the city could not make any expenditures in number 7. The use of HOT tax revenue is highly regulated; however, in all cases, the revenue cannot support general fund operations. All HOT tax funds would be reserved in a special HOT tax fund to track all revenues and expenditures and ensure all expenditures are made according to the tax code. There is no statutory formula for determining the level of impact an event must have to satisfy the requirement to directly promote tourism and hotel and convention activity. Communities with successful tourism promotion programs generally award the amount of the hotel occupancy tax by the proportionate impact on tourism and hotel activity incident to the funding request. Entities applying for hotel occupancy tax revenue funding should indicate how they will market the event to attract tourists and hotel guests. If an entity does not adequately market its events to tourists and hotel guests, it is difficult to produce an event or facility that will effectively promote tourism and hotel activity. Subject to the direction of the City Council, staff will prepare a HOT tax ordinance for consideration at a future council meeting. STAFF RECOMMENDATION: This is a discussion item only, however, staff is recommending that the Council consider adoption of a HOT tax on a future agenda. Item No. WS 3 City Secretary’s use only City Council Agenda Staff Report ______________________________ AGENDA SUBJECT: Briefing/Discussion regarding the FY 2016-2017 Budget Calendar. SUMMARY: The Local Government Code and our City Charter provide guidelines for the process of adopting the annual budget. In order to fund our annual budget, the City must also adopt a property tax rate. The process for adopting the tax rate is stipulated in the Tax Code. Adopting the budget and tax rate goes hand in hand; therefore the budget calendar presented below incorporates the requirements of Texas Code and our City Charter for adopting the annual budget and tax rate. The calendar has highlighted the important dates and deadlines that must be met in order to pass the FY 17 budget and tax rate in the early part of September 2016. Dates in blue highlight various requirements that staff will complete; dates in gray highlight public meetings with the City Council; dates in green are publication dates; and dates in red are holidays. Every effort has been made to keep to our regularly scheduled council meetings with the only exception being special meeting scheduled for September 6 to conduct the second hearing on the tax rate. This ensures that adequate time and attention are devoted to the budget process prior to its adoption. The proposed schedule provides for the budget and tax rate adoption in early September. The early time table allows council and staff the ability modify the schedule as needed while maintaining our ability to adopt and establish the budget in a timely manner. The schedule provides for 6 budget oriented workshops prior to submittal of the draft budget on July 26. Meeting Date: March 8, 2016 Staff Contact: Finance Director Exhibits: Yes Item No. WS 4 City Secretary’s use only City Council Agenda Staff Report ______________________________ AGENDA SUBJECT: Briefing/Discussion regarding the progress of the reconstruction of FM 455 (Joseph Johnson) SUMMARY: The Texas Department of Transportation (TxDOT) is projecting substantial completion for FM 455 to occur by September 23, 2016. 90% of the storm pipe has been installed on the project. TxDOT’s contractor (Lone Star) is planning to have a concrete batch plant set up on the week of March 13th with plans to start concrete work the first week of April. This means that we should see rebar installed on top of the asphalt over the next couple of weeks. By May 27th TxDOT is projecting that traffic will be switched over to the new concrete lanes on the north side. The contractor will then make the permanent intersecting road connections and also begin grading followed by liming operations on the south side. The bridge beams are scheduled to start on March 28th. As with any major infrastructure project, these are projected dates that are subject to change pending weather and material availability. STAFF RECOMMENDATION: Briefing only. Meeting Date: March 8, 2016 Staff Contact: Joseph Johnson Exhibits: None. Item No. WS5 City Secretary’s use only City Council Agenda Staff Report ______________________________ AGENDA SUBJECT: Discussion of possible annexation of land between existing subdivisions. SUMMARY: The property in question is surrounded by existing subdivisions on the west and north (Oak Hollow) and the new Lakeview subdivision on the east. On the south the property is bounded by Taylor Blvd. A new section of Ferguson Parkway has been recently built to the east. Since this land is in our ETJ no land use control exists and virtually anything can develop in this area. Some uses that could be established would adversely affect the neighborhoods. The area contains 5 separate ownerships. Three of the parcels have an Agricultural exemption on them. Therefore a non-annexation agreement would need to be offered on those properties. The staff believes that it would be in the best interest of the surrounding neighborhoods and the City if this area was annexed or had an agreement attached to them. STAFF RECOMMENDATION: Instruct the staff to bring forth a resolution establishing time and dates for Public Hearing to consider annexation. Date: 03/08/15 Staff Contact: Maurice Schwanke Exhibits: Yes. Item No. WS 6 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: March 8, 2016 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 closed session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. STAFF RECOMMENDATION: Item No. WS 7 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: March 8, 2016 Staff Contact: City Manager Exhibits: N/A AGENDA SUBJECT: Consider/Discuss/Action on any items listed on posted agenda or any closed session occurring during this Meeting, as necessary. SUMMARY: STAFF RECOMMENDATION: Item No. WS 8 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: March 8, 2016 Staff Contact: City Manager Exhibits: None AGENDA SUBJECT: Adjourn SUMMARY: Item to adjourn the meeting. STAFF RECOMMENDATION: Staff recommends a motion to adjourn. 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. 1 Version 3/4/2016 3:22 PM CITY OF ANNA AGENDA NOTICE – CITY COUNCIL – REGULAR SESSION March 8, 2016 7:30 p.m. – Anna City Hall The City Council of the City of Anna will meet in Regular Session at 7:30 p.m., on March 8, 2016, at the Anna City Hall, 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, Roll Call and Establishment of Quorum. 2. Invocation and Pledge of Allegiance. 3. Citizen comments. Citizens are allowed three minutes to speak to Council. 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. 2 Version 3/4/2016 3:22 PM 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 for February 23, 2016. (Carrie Smith) 6. 12Consider/Discuss/Action regarding a Resolution accepting the 2015 Annual Audit (Clayton Fulton) a. Presentation b. Resolution accepting the Annual Audit 7. Consider/Discuss/Action regarding an Ordinance amending the FY 2015-2016 Budget for the purchase of the Anna Grain property. (Clayton Fulton) 8. Consider/Discuss/Action regarding a Resolution approving an Interlocal Agreement with Collin County for the US 75 Utility Relocation Project. (Joseph Johnson) 9. Consider/Discuss/Action regarding a Resolution approving an engineering task order from Birkhoff, Hendricks and Carter for the US 75 Utility Relocation Project. (Joseph Johnson) 10. Consider/Discuss/Action regarding a Resolution amending the Subdivision Improvement Agreement for Anna Crossing, Phase 1A, and approving a Subdivision Improvement Agreement for Anna Crossing, Phase 1C. (Maurice Schwanke) 11. Briefing/Discussion regarding Collin McKinney Day Proclamation. (Mayor Crist) 12. 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 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. 3 Version 3/4/2016 3:22 PM 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 closed session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. 13. Consider/Discuss/Action on any items listed on the posted agenda or any closed session occurring during this meeting, as necessary. 14. 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. March 4, 2016. _____________________________________ Carrie L. Smith, City Secretary Item No. 1 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: March 8, 2016 Staff Contact: City Manager Exhibits: None AGENDA SUBJECT: Call to Order, Roll Call and Establishment of Quorum. SUMMARY: Mayor establishes a quorum STAFF RECOMMENDATION: Item No. 2 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: March 8, 2016 Staff Contact: City Manager Exhibits: N/A AGENDA SUBJECT: Invocation and Pledge of Allegiance. SUMMARY: STAFF RECOMMENDATION: Item No. 3 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: March 8, 2016 Staff Contact: City Manager Exhibits: N/A AGENDA SUBJECT: Citizen comments. SUMMARY: 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: Item No. 4 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: March 8, 2016 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: Item No. 5 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: March 8, 2016 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 for February 23, 2016. (Carrie Smith) STAFF RECOMMENDATION: Staff recommends approval of the consent items. Item No. 6 City Secretary’s use only City Council Agenda Staff Report ______________________________ AGENDA SUBJECT: Consider/Discuss/Take Action regarding a Resolution accepting the Annual Audit SUMMARY: LaFollett & Abbott PLLC preformed an audit of the City’s FY 15 finances. Rod Abbott of the firm will present the FY 15 Audit and will be available to answer questions. The auditors have presented an Unmodified Audit Opinion (Clean Opinion) of the City’s financial statements. This means the financial statements fairly present, in all material aspects, the financial position of the governmental activities, business type activities, each major fund, and the aggregate remaining fund information of the City of Anna as of September 30, 2015. As part of the audit’s testing and review process the auditor’s also review staff performance in managing the City’s finances. The FY 13 audit included some recommendations and a material weakness that was carried over into FY 14 with a recurring recommendation. The FY 15 audit does not include any recurring recommendations regarding previous audit recommendations. The FY 15 budget included funding for a full time accountant in the finance department. The additional staff resources provided by the accountant assisted with clearing out previous audit recommendations. While staff have improved in our understanding of year end closing procedures in preparation for the annual audit, we still rely upon an accounting consultant which we anticipate will diminish in future years. In spite of the clean audit opinion and increased staff proficiency and resources the auditor has identified one material weakness related to year-end closing procedures. The finding is the result of not recording the accounting entry to capitalize expenditures related to new long-term assets and not recording one of the 2014 refunding bonds. Meeting Date: March 8, 2016 Staff Contact: Finance Director Exhibits: Yes FY 15 included significant capital project activity both directly by the City and indirectly by developers. This increased activity related to an increase in accounting entries to capitalize these assets at year end. The oversight related to recording the assets can be easily corrected in future years. All internal work papers included the assets on the capital outlay and depreciation schedules but did not include the final adjusting entry to capitalize the expenditures. Staff will conduct an additional check reconciling internal work papers to the general ledger trial balance once all adjusting entries have been entered into the accounting system. Once the auditors identified the weakness, staff completed the work and presented the proposed entry to the auditors which was subsequently accepted. Additionally, FY 15 included debt issues to refund existing debt into more favorable terms. Accounting entries related to debt are complex and involve several general ledger accounts; refunded debt increases the complexity of the entry. Staff have typically relied upon our accounting consultant to support in preparing required accounting entries related to debt at the close of each fiscal year. Due to an oversight in preparing the entry for utility fund debt, the 2014 A refunding was not recorded. Once the auditors identified the weakness, staff discussed the oversight with the consultant who promptly performed the work and presented the proposed entry to the auditors which was subsequently accepted. This weakness can easily be remedied by more effective coordination with the consultant on debt issues. Staff will no longer wait until the end of the fiscal year to coordinate any entries related to debt issues when all adjusting entries related to existing debt an entered into the general ledger. As a matter of practice and policy, staff will coordinate with the consultant immediately following the issue of all future debt rather than waiting until the end of the fiscal year. As represented by previous audits, finance staff are committed to ensuring the finding is not repeated and believe the necessary controls are in place to ensure this finding is not repeated in future years. While particular attention has been made to the material weakness identified by the auditors, there are a number of positive results from the audit including the clean opinion and an increase in overall fund balance in the general fund. Our auditor will share a brief presentation illustrating some highlights from the audit at the meeting STAFF RECOMMENDATION: Approve the resolution accepting the audit. Item No. 7 City Secretary’s use only City Council Agenda Staff Report ______________________________ AGENDA SUBJECT: Consider/Discuss/Action regarding an Ordinance amending the FY 2015-2016 Budget. SUMMARY: The City Council recently authorized the City Manager to execute a land purchase agreement with Chris and Jacque Cashdollar for a 4.16 acre tract of land immediately adjacent to the City’s fire station. The attached ordinance amends the Capital Projects Fund budget authorizing the land purchase. As discussed with Council, unreserved fund balance from the General Fund will provide the cash resources to the Capital Projects Fund for the purchase. Use of unreserved fund balance will not drop the City below its policy of maintaining 25% (90 days) of appropriations in unreserved fund balance. The FY 15 audit shows an increase in unreserved balance; if approved, unreserved fund balance would be at 38.58% (140 days). It is expected that closing on this purchase will occur on March 15, 2016. In order to fund the purchase staff presented using unreserved fund balance with the possibility of issuing a short term note to reimburse the General Fund for the purchase. After the council meeting on February 23rd staff began working up various scenarios with our financial advisors to determine the optimal use of cash reserves given existing debt, projected new debt service, and the effect on fund balance. These scenarios are still being reviewed. Staff recommends the funds be accounted for as a “loan” to the capital projects fund rather than a “transfer” of funds. This strategy will preserve overall fund balance in the General Fund (though still dropping unreserved fund balance). Additionally, accounting for the funds as a loan rather than a transfer denotes a reasonable expectation that the funds will be repaid to the General Fund restoring unreserved fund balance. Based upon the reimbursement resolution approved by the council last year, the General Fund has the option to be reimbursed from future bonds issued for the construction of city hall. Should the Date: March 8, 2016 Staff Contact: Clayton Fulton Exhibits: Yes. council direct staff not to have future bond funds reimburse the General Fund, the loan would then be treated as a true transfer of funds from the General Fund to the Capital Projects Fund. STAFF RECOMMENDATION: Staff recommends approval of the ordinance amending the FY 16 budget. Item No. 8 City Secretary’s use only City Council Agenda Staff Report ______________________________ AGENDA SUBJECT: Consider/Discuss/Action regarding a Resolution approving an Interlocal Agreement with Collin County for the US 75 Utility Relocation Project. SUMMARY: The Texas Department of Transportation (TxDOT) is planning to reconstruct and widen US 75 from the Outer Loop Road north through the FM 455 interchange. TxDOT is requiring the relocation of certain city owned water lines that will be in conflict with the project. Our consulting engineer is recommending that the water lines subject to relocation be replaced with 12 inch water lines consistent with our water master plan. It is estimated that the total cost of this project will be just over $1.8 million. We anticipate that approximately 60% of the project costs ($1.1 million) will be reimbursed back to the City from TxDOT after the project is complete. Since the City has limited financial resources, and given the regional importance of the US 75 expansion program, Collin County has indicated that they are willing to assist the City with this project. Subject to the terms of the attached Interlocal Agreement, Collin County will provide funds to the City for the design and construction of the utility relocation project. Any reimbursements that the City receives from the TxDOT would be remitted to Collin County. It is anticipated that the TxDOT reimbursements will account for about 60% of the total project cost. If the TxDOT reimbursement is less than 50% of the County’s financial contribution, the City agrees to provide an additional reimbursement payment to Collin County so that the County’s net contribution (after receipt of all reimbursements) is not greater than 50% of the total financial assistance provided by the County. In addition, the City agrees that the 2007 County Bond Project for Mantua Road (CR 371) will be reduced by an amount equal to the County’s financial contribution less the actual TxDOT reimbursement amount, or by an amount equal to one-half the County’s financial contribution, whichever is less. Meeting Date: March 8, 2016 Staff Contact: Joseph Johnson Exhibits: Yes STAFF RECOMMENDATION: Staff recommends approval of the attached Resolution and Interlocal Agreement. Item No. 9 City Secretary’s use only City Council Agenda Staff Report ______________________________ AGENDA SUBJECT: Consider/Discuss/Action regarding a Resolution authorizing the City Manager to execute an engineering task order with Birkhoff, Hendricks, and Carter, LLP for the US 75 Utility Relocation Project. SUMMARY: The Texas Department of Transportation (TxDOT) will be reconstructing US 75 between Melissa Road and FM 455. TxDOT is currently acquiring right-of-way (ROW) and coordinating with the various utility companies related to utility relocation. The City of Anna has approximately 11,957 linear feet (2.26 miles) of water lines that will have to be relocated due to either a conflict with proposed TxDOT infrastructure or with proposed ROW acquisitions. The engineering services task order with Birkhoff, Hendricks, and Carter, LLP provides for design, bidding, and contract administration services for the project. The engineering consulting fee covering Basics Services (Part I) for the project is for the lump sum amount of $147,650.00 and the additional services (Part II) for the project is for the amount of $80,000.00, for a total not to exceed amount of $227,650.00. The total estimated cost for the project including engineering and professional services is $1,812,000. Funds are available for this project through an Inter-local agreement (ILA) with Collin County. STAFF RECOMMENDATION: Staff recommends approval of the attached Resolution which authorizes the City Manager to execute a task order with Birkhoff, Hendricks, and Carter, LLP for the US 75 Utility Relocation Project. Meeting Date: March 8, 2016 Staff Contact: Joseph Johnson Exhibits: Attached Item No. 10 City Secretary’s use only City Council Agenda Staff Report ______________________________ AGENDA SUBJECT: Resolution amending the Subdivision Improvement Agreement for Anna Crossing, Phase 1A, and approving a Subdivision Improvement Agreement for Anna Crossing, Phase 1C. (Maurice Schwanke) SUMMARY: In February of 2015, the City Council approved an Agreement that provided for the future dedication of a 3.5 acre tract of land to be developed as a neighborhood park within the Anna Town Square (Anna Crossing) development. The attached agreements would amend the original arrangement as follows: 1.The developer will donate a 3.14 acre tract to the City to be developed as a public neighborhood park open to all residents of Anna. The developer would receive park land donation fee credits proportional to the size of the donation (as required by City ordinance). An adjacent 0.69 acre tract would be retained by the developer as a private amenity center for the Anna Town Square neighborhood. 2.The developer will construct various park improvements on the public park property at an estimated cost of $375,000. The developer would receive park development fee credits equal to the cost of the park improvements as required by City ordinance. 3.The Anna Town Square HOA will be responsible for all park maintenance (under the supervision of the City) until Certificates of Occupancy for 400 single family homes have been issued within the Anna Town Square development. 4.The developer will construct the section of Leonard Blvd. located adjacent to the park property. The developer would receive Road Capital Improvement Fee rebates equal to the cost of the roadway improvements. Parks come in all sizes and function. The neighborhood park is the smallest unit and ranges from 2 to 10 acres in size. These parks generally have a playground, Date: March 8, 2016 Staff Contact: Maurice Schwanke Exhibits: Yes. open play area, picnicking and are adjacent to school facilities in many cases. Other types of park include Playfields (10 to 15 acres) and community parks (40 to 100 acres) which are typically the largest type within urbanized areas. STAFF RECOMMENDATION: This neighborhood park will provide some relief to the Slayter Creek Park pavilion which is reserved for several occasions each weekend during favorable weather conditions (birthday parties, reunions etc.) Staff also believes this facility will help with the overall distribution of recreational facilities in the City. The Parks Advisory Board has reviewed and recommended approval of this new park facility. Staff also recommends approval of the attached Agreements and Resolution. Item No. 11 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: March 8, 2016 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 closed session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. STAFF RECOMMENDATION: Item No. 12 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: March 8, 2016 Staff Contact: City Manager Exhibits: N/A AGENDA SUBJECT: Consider/Discuss/Action on any items listed on the posted agenda or any closed session occurring during this meeting, as necessary. SUMMAR Y: STAFF RECOMMENDATION: Item No. 13 City Secretary’s use only City Council Agenda Staff Report ______________________________ Date: March 8, 2016 Staff Contact: City Manager Exhibits: None AGENDA SUBJECT: Adjourn SUMMARY: Item to adjourn the meeting. STAFF RECOMMENDATION: Staff recommends a motion to adjourn. YOUR} HOMETOWN CITY OF ANNA AGENDA NOTICE — CITY COUNCIL- WORK SESSION March 8, 2016 6:30 p.m. — Anna City Hall The City Council of the City of Anna will meet in Work Session at 6:30 p.m., on March 8, 2016 at Anna City Hall, located at 111 N. Powell Parkway (Hwy 5), regarding the following items: 1. Call to Order, Roll Call and Establishment of Quorum. 2. Briefing/Discussion regarding hotel occupancy tax (Clayton Fulton) 3. Briefing/Discussion regarding Fiscal Year 2016-2017 budget calendar (Clayton Fulton) 4. Briefing/Discussion regarding the progress of the reconstruction of FM 455 (Joseph Johnson) 5. Briefing/Discussion regarding Annexation of land west of Lakeview Estates (Maurice Schwanke) 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. 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 closed 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. 7. Consider/Discuss/Action on any items listed on the posted agenda or any closed session occurring during this meeting, as necessary. 8. 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. March 4, 2016. 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, TEXAS AGENDA SUBJECT: Item No. WS 1 City Secretary's use only City Council Agenda Staff Report Meeting Date: Staff Contact: Exhibits: Call to Order, Roll Call and Establishment of Quorum. SUMMARY: STAFF RECOMMENDATION: March 8, 2016 City Administrator No City Secretary-WS 1 - Call to Order - Staff Report CITY OF ANNA, TEXAS Item No. City Secretary's use only City Council Agenda Staff Report Meeting Date: .Ctaff rnntart- Exhibits: March 8, 2016 Clayton Fulton Yes AGENDA SUBJECT: Briefing/Discussion regarding hotel occupancy tax SUMMARY: Periodically city staff will receive inquiries regarding the development of a hotel in Anna. While there is no specific project proposed at the time, staff believes there will be interest in the future from the private market for the development of a hotel in Anna. The discussion here is to brief the council on the local hotel occupancy tax (HOT tax) and receive any council direction on the matter. Texas Tax Code 351.002 allows all incorporated Texas municipalities to enact a hotel occupancy tax (HOT tax) within the city limits and the option for cities with a population of less than 35,000 to adopt the tax in its extra -territorial jurisdiction. There are some variations in the code allowing for certain cities to adopt different tax rates based upon certain criteria related to population and geographic location; however, the City of Anna does not fall into any of these various categories and may enact a HOT tax of up to 7%. Staff have conducted a review of surrounding municipalities' respective HOT tax rates and found the cities of Frisco, Allen, McKinney, Plano, Little Elm, Fairview, Sherman, and Denison have all adopted a rate of 7%. The state HOT tax is 6% making the total HOT tax paid in these cities 13%. The use of HOT tax revenue is highly regulated by the Texas tax code with certain restrictions on allocation of revenue based upon various criteria. Generally speaking, all HOT tax expenditures must meet the following two-part test: • Criteria 1 - Every expenditure must directly enhance and promote tourism and the convention and hotel industry • Criteria 2 — Every expenditure must clearly fit into one of the nine statutory categories listed below City Secretary-WS 2 - HOT Tax Workshop Discussion 1 Funding the establishment, improvement, or maintenance of a convention center or visitor information center 2 Paying the administrative costs for facilitating convention registration 3 Paying for advertising, solicitations, and promotions that attract tourists and convention delegates to the city or its vicinity 4 Expenditures that promote the arts 5 Funding historical restoration or preservation programs 6 Funding certain expenses, including promotion expenses, directly related to a sporting event within counties with a population under 1 million 7 Funding the enhancement or upgrading of existing sports facilities or sports fields for certain municipalities 8 Funding transportation systems for tourists 9 Signage directing tourists to sights and attractions that are visited frequently by hotel guests in the municipality Based upon the statute, the city could not make any expenditures in number 7. The use of HOT tax revenue is highly regulated; however, in all cases, the revenue cannot support general fund operations. All HOT tax funds would be reserved in a special HOT tax fund to track all revenues and expenditures and ensure all expenditures are made according to the tax code. There is no statutory formula for determining the level of impact an event must have to satisfy the requirement to directly promote tourism and hotel and convention activity. Communities with successful tourism promotion programs generally award the amount of the hotel occupancy tax by the proportionate impact on tourism and hotel activity incident to the funding request. Entities applying for hotel occupancy tax revenue funding should indicate how they will market the event to attract tourists and hotel guests. If an entity does not adequately market its events to tourists and hotel guests, it is difficult to produce an event or facility that will effectively promote tourism and hotel activity. Subject to the direction of the City Council, staff will prepare a HOT tax ordinance for consideration at a future council meeting. STAFF RECOMMENDATION: This is a discussion item only, however, staff is recommending that the Council consider adoption of a HOT tax on a future agenda. City Secretary-WS 2 - HOT Tax Workshop Discussion CITY OF ANNA, TEXAS Item No. WS 2 City Secretary's use only City Council Agenda Staff Report Meeting Date: .Ctaff rnntart- Exhibits: March 8, 2016 Finance Director Yes AGENDA SUBJECT: Briefing/Discussion regarding the FY 2016-2017 Budget Calendar. SUMMARY: The Local Government Code and our City Charter provide guidelines for the process of adopting the annual budget. In order to fund our annual budget, the City must also adopt a property tax rate. The process for adopting the tax rate is stipulated in the Tax Code. Adopting the budget and tax rate goes hand in hand; therefore the budget calendar presented below incorporates the requirements of Texas Code and our City Charter for adopting the annual budget and tax rate. The calendar has highlighted the important dates and deadlines that must be met in order to pass the FY 17 budget and tax rate in the early part of September 2016. Dates in blue highlight various requirements that staff will complete; dates in gray highlight public meetings with the City Council; dates in green are publication dates; and dates in red are holidays. Every effort has been made to keep to our regularly scheduled council meetings with the only exception being special meeting scheduled for September 6 to conduct the second hearing on the tax rate. This ensures that adequate time and attention are devoted to the budget process prior to its adoption. The proposed schedule provides for the budget and tax rate adoption in early September. The early time table allows council and staff the ability modify the schedule as needed while maintaining our ability to adopt and establish the budget in a timely manner. The schedule provides for 6 budget oriented workshops prior to submittal of the draft budget on July 26. FY 17 Budget Calendar APR ©©�© 1 - Activate budgeting program 1 2 1 - Submit 5 year CIP to City Manager 3 4 5 6 7 8 26 - Review FY 16 goals MOD 2 - Read only status in budgeting program 9-20 City Manager and Finance Department to meet with Department Directors to discuss proposals 10 11 12 13 14 15 29 - Complete FY 16 budget projections 15 16 H24 9 20 10 - Review Preliminary Revenue Estimates 17 18 19 20 21 22 22 23 6 27 24 - Review Draft Admin Budgets 24 25 F26 27 28 F291 30 29 30 31 23-27 Update budget proposals JUN JUL ©©M©ME© 14 - Review Draft Public Safety & Court Budgets ©©M©ME© 12 - Review Draft Water, Sewer, & UB Budgets 1 2 3 28 - Review Draft Planning, Streets, & Park Budgets 1 2 25 - Chief Apparisor deadeline to certify 6 7 8 9 10 1-30 Refine budget proposals and produce working 3 4 5 6 7 8 9 appraisal rolls 12 13 F14 15 16 17 draft of the budget 10 11 12 13 14 15 16 26 - Present Draft Budget in workshop 19 20 21 22 23 24 25 17 18 19 20 21 22 23 26 - Schedule date & time for budget hearing 26 27 F28 29 30 24 25 26 27 28 29 30 31 AUG SEP ©©M 4 - Publish Notice of Public Hearing on Budget ©%1214 2 - 72 hr. open meting notice - Tax Rate 1 2 3 4 5 6 5 - Budget available for Public Review 1 2 6 - 2nd Hearing on Tax Rate 7 8 10 11 12 1 9 - Review Proposed BudgeWote on Max Tax Rate 48 9 9 - 72 hr. open meeting notice - Budget/Tax Rate 14 15 16 17 18 19 2� 11 - Publish Notice of Public Hearing on Budget 1115 16 13 - Adopt Budget and Tax Rate and ratify if needed 21 22 F23 1 24 25 26 27 11 - Publish Notice of Proposed Tax Rate 18 19 20 21 22 23 24 14 - Make all necessary website postings 28 29 30 31 19 - 72 hr. open meeting notice-Budget/TaxRate 25 26 27 28 29 30 23 - Public Hearing on Budget/Tax Rate Dates are Subject to Change "* Holidays are in RED, Staff dates are in BLUE, Council dates are in GRAY, Publishing dates are in GREEN CITY OF ANNA, TEXAS AGENDA SUBJECT: Item No. 4 City Secretary's use only City Council Agenda Staff Report Meeting Date: .Ctaff rnntart- Exhibits: March 8, 2016 Joseph Johnson None. Briefing/Discussion regarding the progress of the reconstruction of FM 455 (Joseph Johnson) SUMMARY: The Texas Department of Transportation (TxDOT) is projecting substantial completion for FM 455 to occur by September 23, 2016. 90% of the storm pipe has been installed on the project. TxDOT's contractor (Lone Star) is planning to have a concrete batch plant set up on the week of March 13tn with plans to start concrete work the first week of April. This means that we should see rebar installed on top of the asphalt over the next couple of weeks. By May 27tn TxDOT is projecting that traffic will be switched over to the new concrete lanes on the north side. The contractor will then make the permanent intersecting road connections and also begin grading followed by liming operations on the south side. The bridge beams are scheduled to start on March 28tn As with any major infrastructure project, these are projected dates that are subject to change pending weather and material availability. STAFF RECOMMENDATION: Briefing only. CITY OF ANNA, TEXAS Item No. 5 City Secretary's use only City Council Agenda Staff Report Date: 03/08/15 Staff Contact: Maurice Schwanke Exhibits: Yes. AGENDA SUBJECT: Discussion of possible annexation of land between existing subdivisions. SUMMARY: The property in question is surrounded by existing subdivisions on the west and north (Oak Hollow) and the new Lakeview subdivision on the east. On the south the property is bounded by Taylor Blvd. A new section of Ferguson Parkway has been recently built to the east. Since this land is in our ETJ no land use control exists and virtually anything can develop in this area. Some uses that could be established would adversely affect the neighborhoods. The area contains 5 separate ownerships. Three of the parcels have an Agricultural exemption on them. Therefore a non -annexation agreement would need to be offered on those properties. The staff believes that it would be in the best interest of the surrounding neighborhoods and the City if this area was annexed or had an agreement attached to them. STAFF RECOMMENDATION: Instruct the staff to bring forth a resolution establishing time and dates for Public Hearing to consider annexation. WHITE STREET (F.M CEDAR TRAIL CYPRESS WAY TRAIL I- w J_ w I- Q 2 N x I- N CHESTNUT STREET O F- N HI= O a Z J w LU w x [flu ELM Sl KttI ROCKRI DGE TR. ON 77 wm> ND DR. ODD Mm mm Milli IN CITY OF ANNA, TEXAS AGENDA SUBJECT: Item No. WS 6 City Secretary's use only City Council Agenda Staff Report Date: March 8, 2016 Staff Contact: City Manager Exhibits: N/A 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 closed session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. STAFF RECOMMENDATION: CITY OF ANNA, TEXAS AGENDA SUBJECT: Item No. WS 7 City Secretary's use only City Council Agenda Staff Report Date: Staff Contact: Exhibits: March 8, 2016 City Manager N/A Consider/Discuss/Action on any items listed on posted agenda or any closed session occurring during this 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. WS 8 City Secretary's use only City Council Agenda Date: Staff Contact: Exhihits- Staff Report March 8, 2016 City Manager None Y{OUR} HOMETOWN CITY OF ANNA AGENDA NOTICE — CITY COUNCIL — REGULAR SESSION March 8, 2016 7:30 p.m. — Anna City Hall The City Council of the City of Anna will meet in Regular Session at 7:30 p.m., on March 8, 2016, at the Anna City Hall, 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, Roll Call and Establishment of Quorum. 2. Invocation and Pledge of Allegiance. 3. Citizen comments. Citizens are allowed three minutes to speak to Council. 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. Version 3/4/2016 3:22 PM 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 for February 23, 2016. (Carrie Smith) 6. 12Consider/Discuss/Action regarding a Resolution accepting the 2015 Annual Audit (Clayton Fulton) a. Presentation b. Resolution accepting the Annual Audit 7. Consider/Discuss/Action regarding an Ordinance amending the FY 2015-2016 Budget for the purchase of the Anna Grain property. (Clayton Fulton) 8. Consider/Discuss/Action regarding a Resolution approving an Interlocal Agreement with Collin County for the US 75 Utility Relocation Project. (Joseph Johnson) 9. Consider/Discuss/Action regarding a Resolution approving an engineering task order from Birkhoff, Hendricks and Carter for the US 75 Utility Relocation Project. (Joseph Johnson) 10. Consider/Discuss/Action regarding a Resolution amending the Subdivision Improvement Agreement for Anna Crossing, Phase 1A, and approving a Subdivision Improvement Agreement for Anna Crossing, Phase 1 C. (Maurice Schwanke) 11. Briefing/Discussion regarding Collin McKinney Day Proclamation. (Mayor Crist) 12. 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 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. 2 Version 3/4/2016 3:22 PM 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 closed session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. 13. Consider/Discuss/Action on any items listed on the posted agenda or any closed session occurring during this meeting, as necessary. 14.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. March 4, 2016. 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. 3 Version 3/4/2016 3:22 PM wu CITY OF ANNA, TEXAS AGENDA SUBJECT: Item No. 1 City Secretary's use only City Council Agenda Staff Report Date: Staff Contact: Exhibits: Call to Order, Roll Call and Establishment of Quorum. SUMMARY: Mayor establishes a quorum STAFF RECOMMENDATION: March 8, 2016 City Manager None CITY OF ANNA. TEXAS AGENDA SUBJECT: Invocation and Pledge of Allegiance. SUMMARY: STAFF RECOMMENDATION: Item No. 2 City Secretary's use only City Council Agenda Staff Report Date: Staff Contact: Exhibits: March 8, 2016 City Manager 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: March 8, 2016 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 AGENDA SUBJECT: Item No. 4 City Secretary's use only City Council Agenda Staff Report Date: Staff Contact: Exhibits March 8, 2016 City Manager : N/A 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 AGENDA SUBJECT: Item No. 5 City Secretary's use only City Council Agenda Staff Report Date: March 8, 2016 Staff Contact: City Manager Exhibits: Attached 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 for February 23, 2016. (Carrie Smith) STAFF RECOMMENDATION: Staff recommends approval of the consent items. ANNA CITY COUNCIL MINUTES WORK SESSION February 23, 2016 The City Council of the City of Anna met in Work Session on the above date at Anna City Hall, located at 111 N. Powell Parkway (Hwy 5), regarding the following items: 1. Call to Order. Mayor Pro Tern Beazley called the meeting to order at 6:30 pm. 2. Roll Call and Establishment of Quorum. Council Members Justin Burr, Lauren Lovato, John Beazley, Chad Barnes, Nathan Bryan and Dick Dowd were present. Mayor Mike Crist was absent. 3. Briefing and Discussion regarding City Hall debt. (Clayton Fulton) Staff has been working with Randall Scott Architects to determine preliminary design and site locations for a future city hall and consulting with City financial advisors, First Southwest to evaluate potential debt scenarios as it relates. Council's recent action to authorize the purchase of the land for the new city hall, staff invited the financial advisors to discuss the impact of financing the $600,000 land purchase under a short-term note to be repaid from future bond proceeds issued to construct the City Hall. After the advisors presentation, Council requested they look at other scenarios and return at a future date. 4. Briefing and Discussion regarding Police department grant application. (Chief Jenks) Each fiscal year, the Police Chief scans the various grant funding mechanisms to determine if the City can compete for grants offered through the NCTCOG, via the Governor's office, originating from the Federal Justice Assistance program. For fiscal year 2017, Chief Jenks identified two grants and recommended the City to apply. 1. Radio Upgrade: Mandated by the Federal Government to upgrade from P25 Phase I radios to P25 Phase II radios. The cost to upgrade February 23, 2016 CC Work Session Minutes our current number of radios is estimated to be about $122k and without any grant funding, that amount would greatly impact the General Fund. We intend to apply for a grant that will give us approximately $79k to assist us with this mandate. This grant would fund 13 portable radios with one extra battery each, four mobile radios, and one 6-bank radio charger. If we get this grant, the General Fund will be impacted in the amount of approximately $43k to fund the rest of the radio requirements. 2. Child Abuse/Family Violence Investigator: This JAG grant would fund the salary and benefits of a Police Officer to work criminal cases involving those where the victims were children for 3-years. Further, the Detective would specialize in the investigation of those offenses classified as family violence. If awarded the grant, the City will be responsible for funding the uniforms and equipment necessary for a new police officer position (approximately $9,500) out of the General Fund and for the next two years, the cost would be minimal for items such as replacement uniforms, vehicle fuel, training tuition, etc. At the end of the three-year period, the budget submitted by the Police Department would include the full funding for this full-time, sworn, position. These Grants would help the City provide advanced law enforcement services to our citizens without bearing the full costs. Further, it allows us to recover state and federal tax dollars paid by our citizens and provide them with services that directly benefit them. After a brief discussion, Council directed Police Chief Jenks to pursue both grants. 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. February 23, 2016 CC Work Session Minutes c. discuss or deliberate personnel matters (Tex. Gov't Code 551.074); City Manager annual review. 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 Bryan moved to enter closed session at 6:38 p.m. Council Member Dowd seconded. Motion carried 5-0. Mayor Pro Tern Beazley reconvened the open meeting at 6:48 p.m. 6. Consider/Discuss/Action on any items listed on the posted agenda or any closed session occurring during this meeting, as necessary. MOTION: Council Member Dowd moved to take no action. Council Member Bryan seconded. Motion carried 5-0. 7. Adjourn. Council Member Bryan moved to adjourn at 7:10 pm. Council Member Burr seconded. Motion carried 5-0. Approved on the 8th day of March, 2016. ATTEST: City Secretary Carrie L. Smith Mayor Mike Crist February 23, 2016 CC Work Session Minutes 3 ANNA CITY COUNCIL MINUTES REGULAR SESSION February 23, 2016 The City Council of the City of Anna met in Regular Session on the above date at Anna City Hall, located at 111 North Powell Parkway (Hwy 5), to consider the following items. 1. Call to Order/Roll Call. Mayor Pro Tern Beazley called the meeting to order at 7:30 p.m. Council Members Justin Burr, Lauren Lovato, John Beazley, Chad Barnes Nathan Bryan and Dick Dowd were present. Mayor Mike Crist was absent. 2. Invocation and Pledge of Allegiance. Mayor Pro Tern Beazley 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 public 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. No Comments. 5. Consent Items. These items consist of non -controversial or "housekeeping" items required by law. Items may be considered February 23, 2016 CC Regular Session 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 February 9, 2016. (Carrie Smith) MOTION: Council member Bryan moved to approve the Consent Agenda. Council Member Lovato seconded. Motion carried 5-0. 6. Consider/Discuss/Action approving an ordinance regarding the annexation of a 21.4 acre tract of land located in the Hiram Brinlee Survey, Abstract No. 30 (St. Charles Apts. Inc., owner); a 47.6 acre tract of land located in the John Chambers Survey, Abstract No. 223 and the Samuel Craft Survey, Abstract No. 165 (Bhagat Holdings Ltd., owner); a 15 acre tract of land located in the Jonathan Douthit Survey, Abstract No. 251 (McGuffey Living Trust, owner); an 18.53 acre tract of land located in the William Kitchings Survey, Abstract No. A0505; and a 15.4 acre tract of land located in the W E Throckmorton Survey, Abstract No.A0899 (William & Nora Steward, owners). (Maurice Schwanke) ORDINANCE NO. 713-2016 - AN ORDINANCE ANNEXING INTO THE CITY OF ANNA, TEXAS THE HEREINAFTER DESCRIBED TERRITORY ADJACENT TO AND ADJOINING THE CITY OF ANNA, TEXAS, TO WIT.- BEING A CERTAIN AREA OF LAND SITUATED IN THE HIRAM BRINLEE SURVEY, ABSTRACT NO. 30, THE JOHN CHAMBERS SURVEY, ABSTRACT NO. 223, THE SAMUEL CRAFT SURVEY, ABSTRACT NO. 165, JONATHAN DOUTHIT SURVEY, ABSTRACT NO. 251, THE WILLIAM KITCHINGS SURVEY, ABSTRACT NO. A0505 AND THE W E THROCKMORTON SURVEY, ABSTRACT A0899, COUNTY OF COLLIN, STATE OF TEXAS; AMENDING THE OFFICIAL CITY MAP; PROVIDING FOR A SERVICE PLAN; REQUIRING THE FILING OF THIS ORDINANCE WITH THE COLLIN COUNTY CLERK; PROVIDING A CUMULATIVE REPEALER CLAUSE; PROVIDING FOR SEVERABILITY; PROVIDING FOR ENGROSSMENT AND ENROLLMENT, PROVIDING FOR AN EFFECTIVE DATE. MOTION: Council member Dowd moved to approve. Council Member Burr seconded. Motion carried 5-0. 7. a. Public Hearing: For City Council to hear public comments regarding a request by Donald and Roxanne Terrell, and John and Ashley Vassilakos owners of the property, to re -plat lots 25, 26, and 27, Block A of the Pecan Hollow Subdivision. Mayor Pro Tern Beazley opened the public hearing at 7:36 p.m. February 23, 2016 CC Regular Session Minutes No comments. Development Director Maurice Schwanke stated he received three positive written comments. Mayor Pro Tern Beazley closed the public hearing at 7:37 p.m. b. Consider/Discuss/Action approving a resolution regarding the re -plat of lots 25, 26, and 27, Block A of the Pecan Hollow Subdivision. (Maurice Schwanke) RESOLUTION NO. 2016-02-146 - A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING A RE -PLAT OF LOTS 25, 26, AND 27. BLOCK A OF PECAN HOLLOW SUBDIVISION. MOTION: Council Member Burr moved to approve. Council Member Lovato seconded. Motion carried 5-0. 8. Consider/Discuss/Action regarding adoption of an Ordinance establishing regulations for the construction and/or drilling of water wells. (Joseph Johnson) ORDINANCE NO. 714-2016 - AN ORDINANCE OF THE CITY COUNCIL OF ANNA, TEXAS, AMENDING THE CITY'S CODE OF ORDINANCES, ARTICLE 49, PUBLIC WORKS, SECTION 2.17, WELL DRILLING; ESTABLISHING NEW REGULATIONS FOR THE CONSTRUCTION AND/OR DRILLING OF WATER WELLS, - PROVIDING FOR INCORPORATION OF PREMISES; PROVIDING FINDINGS; PROVIDING FOR AMENDMENT TO THE CODE OF ORDINANCES; PROVIDING FOR A CUMULATIVE REPEALER CLAUSE; PROVIDING FOR SAVINGS; PROVIDING FOR SEVERABILITY; PROVIDING FOR PUBLICATION; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. MOTION: Council Member Bryan moved to approve. Council Member Lovato seconded. Motion carried 4-1. Council Member Beazley Opposed. 9. Consider/Discuss/Take Action regarding a Resolution authorizing approval of a contact with Texas Coalition for Affordable Power (TCAP) (Clayton Fulton) RESOLUTION 2016-2-147 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, AUTHORIZING THE TEXAS COALITION FOR AFFORDABLE POWER, INC. (TCAP) TO NEGOTIATE AN ELECTRIC SUPPLY AGREEMENT FOR FIVE YEARS FOR DELIVERIES OF ELECTRICITY EFFECTIVE JANUARY 1, 2018; AUTHORIZING TCAP TO ACT AS AN AGENT ON BEHALF OF THE CITY TO ENTER INTO A CONTRACT FOR ELECTRICITY; AUTHORIZING MAYOR or MAYOR PRO-TEM or February 23, 2016 CC Regular Session Minutes DEPUTY MAYOR PRO-TEM or CITY MANAGER or DEPUTY CITY MANAGER or FINANCE DIRECTOR TO EXECUTE AN ELECTRIC SUPPLY AGREEMENT FOR DELIVERIES OF ELECTRICITY EFFECTIVE JANUARY 1, 2018 AND COMMITTING TO BUDGET FOR ENERGY PURCHASES IN 2018 THROUGH 2O22 AND TO HONOR THE CITY'S COMMITMENTS TO PURCHASE POWER FOR ITS ELECTRICAL NEEDS IN 2018 THROUGH 2O22 THROUGH TCAP MOTION: Council Member Burr moved to approve. Council Member Beazley seconded. Motion carried 5-0. 10. 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. c. discuss or deliberate personnel matters (Tex. Gov't Code §551.074); City Manager annual review. 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. No executive session. 11. Consider/Discuss/Action on any items listed on the posted agenda or any closed session occurring during this meeting, as necessary. MOTION: Council Member Bryan moved to take no action. Council Member Lovato seconded. Motion carried 5-0. 12.Adjourn. MOTION: Council Member Bryan moved to adjourn at 7:49 p.m. Council Member Lovato seconded. Motion carried 5-0. February 23, 2016 4 CC Regular Session Minutes Approved on the 8th day of March, 2016. ATTEST: City Secretary Carrie L. Smith Mayor Mike Crist February 23, 2016 CC Regular Session Minutes CITY OF ANNA, TEXAS AGENDA SUBJECT: Item No. 6 City Secretary's use only City Council Agenda Staff Report Meeting Date: .staff rnntart• Exhibits March 8, 2016 Finance Director Yes Consider/Discuss/Take Action regarding a Resolution accepting the Annual Audit SUMMARY: LaFollett & Abbott PLLC preformed an audit of the City's FY 15 finances. Rod Abbott of the firm will present the FY 15 Audit and will be available to answer questions. The auditors have presented an Unmodified Audit Opinion (Clean Opinion) of the City's financial statements. This means the financial statements fairly present, in all material aspects, the financial position of the governmental activities, business type activities, each major fund, and the aggregate remaining fund information of the City of Anna as of September 30, 2015. As part of the audit's testing and review process the auditor's also review staff performance in managing the City's finances. The FY 13 audit included some recommendations and a material weakness that was carried over into FY 14 with a recurring recommendation. The FY 15 audit does not include any recurring recommendations regarding previous audit recommendations. The FY 15 budget included funding for a full time accountant in the finance department. The additional staff resources provided by the accountant assisted with clearing out previous audit recommendations. While staff have improved in our understanding of year end closing procedures in preparation for the annual audit, we still rely upon an accounting consultant which we anticipate will diminish in future years. In spite of the clean audit opinion and increased staff proficiency and resources the auditor has identified one material weakness related to year-end closing procedures. The finding is the result of not recording the accounting entry to capitalize expenditures related to new long-term assets and not recording one of the 2014 refunding bonds. FY 15 included significant capital project activity both directly by the City and indirectly by developers. This increased activity related to an increase in accounting entries to capitalize these assets at year end. The oversight related to recording the assets can be easily corrected in future years. All internal work papers included the assets on the capital outlay and depreciation schedules but did not include the final adjusting entry to capitalize the expenditures. Staff will conduct an additional check reconciling internal work papers to the general ledger trial balance once all adjusting entries have been entered into the accounting system. Once the auditors identified the weakness, staff completed the work and presented the proposed entry to the auditors which was subsequently accepted. Additionally, FY 15 included debt issues to refund existing debt into more favorable terms. Accounting entries related to debt are complex and involve several general ledger accounts; refunded debt increases the complexity of the entry. Staff have typically relied upon our accounting consultant to support in preparing required accounting entries related to debt at the close of each fiscal year. Due to an oversight in preparing the entry for utility fund debt, the 2014 A refunding was not recorded. Once the auditors identified the weakness, staff discussed the oversight with the consultant who promptly performed the work and presented the proposed entry to the auditors which was subsequently accepted. This weakness can easily be remedied by more effective coordination with the consultant on debt issues. Staff will no longer wait until the end of the fiscal year to coordinate any entries related to debt issues when all adjusting entries related to existing debt an entered into the general ledger. As a matter of practice and policy, staff will coordinate with the consultant immediately following the issue of all future debt rather than waiting until the end of the fiscal year. As represented by previous audits, finance staff are committed to ensuring the finding is not repeated and believe the necessary controls are in place to ensure this finding is not repeated in future years. While particular attention has been made to the material weakness identified by the auditors, there are a number of positive results from the audit including the clean opinion and an increase in overall fund balance in the general fund. Our auditor will share a brief presentation illustrating some highlights from the audit at the meeting STAFF RECOMMENDATION: Approve the resolution accepting the audit. CITY OF ANNA, TEXAS RESOLUTION NO. (FY 2015 Audit) A RESOLUTION ACCEPTING THE FISCAL YEAR 2015 FINANCIAL CITY OF ANNA. WHEREAS, the City of Anna, Texas ("the City") is commi practices of open and fair government that honor the public trU WHEREAS, Article 7 Section 7.18 of the City's Home -Rule C14 requires an annual independent audit of all account�Oft ity b accountant NOW THEREFORE, BE IT RESOLVED BY THE C ANNA, TEXAS, THAT: Section 1. Recitals Incorporated. The above -referenced recitals are inc purposes. Section 2. Investment Po ' e� The City Council has hereby PASSED by the Ci u 2016. OF THE ter") public THE CITY OF et forth in full for all e FY 15 audit attached hereto as exhibit 1. of Anna, Texas, on this the 8t" day of March, APPROVED: Mike Crist, Mayor CITY OF ANNA, TEXAS RESOLUTION NO. Page 1 of 1 Susan LaFollett, CPA —Partner Rod Abbott, CPA — Partner and Abbott PLC Certified Public Accountants To the City Council of the City of Anna, Texas We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fluid information of the City of Anna (the "City"), for the year ended September 30, 2015. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated October 21, 2013. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note A to the financial statements. The City adopted one new policy during fiscal year 2015, which was GASB No. 68, Accounting and Financial Reporting for Pensions. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure affecting the financial statements was: The disclosure of long-term debt in Note F to the financial statements. This disclosure provides detail of debt terms, future payments, interest rates, and other information for each debt. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. The misstatements detected as a result of audit procedures are presented on Attachment 1. LaFollett and Abbott PLLC PO Box 717 • Tom Sean, TX - 75489 903-546-6975 • www.lafollettcpa.com DRAFT .#2 Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representation We have requested certain representations from management that are included in the management representation letter dated March 8, 2016. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. This information is intended solely for the use of City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Tom Bean, Texas March 8, 2016 DRAFT #2 ATTACHMENT CITY OF ANNA - FY2015 PROPOSED AUDIT ADJUSTING ENTRIES AJE# W/P REF: ACCOUNT # DESCRIPTION DEBIT CREDIT 1 G-4 60-000-28XX NET PENSION LIABILITY 252,433 60-000-3720 UNRESTRICTED NET POSITION 200,539 60-000-18XX DEFERRED OUTFLOW OF RESOURCES 51,894 252,433 252,433 Record the Water Fund's beginning net pension liability as an adjustment to prior periods per GASB SS paragraph 137. 2 G-4 60-000-18XX Deferred Outflow- Excess Investment Returns 7,661 60-701-6125 TMRS Retirement 13,896 60-705-6125 TMRS Retirement 3,585 60-710-6125 TMRS Retirement 3,144 60-000-18XX Deferred Outflow -Contributions after 12/31/20XX 19,946 60-000-28XX Deferred Inflow -Actual Experience vs Assumptions 38,973 60-000-28XX Net Pension Liability (current year change) 31,991 59,598 59,598 Record the Water Fund's FYI change in the TMRS net pension liability and changes in related deferred outflows of resources and pension expense per TMRS actuarial measurement date 1213112014. 3 D-8.1 10-000-1155 Accounts Receivable - Court 75,789 10-000-1199 Allowance for Bad Debt Court 69,764 10-000-2110 Deferred Revenue - Court 8,720 10-552-5110 Court Fines 2,695 78,484 78,484 To update court accounts receivable for CY activity. 4 A-29 10-000-3711 Fund Balance 200 10-400-6799 Other Services - Misc. 200 200 200 TO PROPERLY STATE GENERAL FUND BEGINNING FUND BALANCES. 5 H-2 60-701-6780 Electricity 24,486 60-000-2001 Accounts Payable 24,486 24,486 24,486 TO ACCRUE AN INVOICE NOT INCLUDED IN AP 6 E-2 60--701 6785 Bad Debt Exponce 28,622 60-000-1198 Allowance for Doubtful Accounts 28,622 28,622 28,622 To update the allowance for the current year. 7 F-1 99-000-2753 Bonds Payable Current 2014 GO B REF 52,000 99-000-1710 Amounts to be Provided 52,000 52,000 52,000 TO PROPERLY STATE SERIES 2014E BOND DEBT. 40-611-5840 Bond Proceeds 6,981 40-611-6792 Costs of Debt Issuance 6,981 6,981 6,981 TO PROPERLY STATE SERIES 2014B BOND PROCEEDS AND COSTS. DRAFT #2 8 F-2 60-000-2730 BONDS PAYABLE 1,910,000 60-000-2730 BONDS PAYABLE 2,598,000 60-701-6XXX ISSUE COSTS 61,374 60-000-11XX DEFERRED LOSS ON REFUNDING 201,626 60-000-2731 BONDS PAYABLE -CURRENT 450,000 60-000-2730 BONDS PAYABLE 398,000 60-701-6790 INTEREST EXPENSE 192,085 60-705-6790 INTEREST EXPENSE 192,085 60-701-6799 OTHER SERVICE - MISC 11,170 3,007,170 3,007,170 TO PROPERLY POST SERIES 2014A BOND ISSUANCE ENTRIES AND CORRECT RELATED DEBT ACCOUNTS. 9 G-1 10-550-6101 Salaries 10,537 GF 10-580-6101 Salaries 4,046 10-580-6102 Salaries OT 717 10-000-2029 Wages Payable 15,300 WF 60-400-6101 Salaries 11,210 60-400-6102 Salaries OT 656 60-000-2029 Wages Payable 11,866 27,166 27,166 PBC AJE to correct the wage accrual. 10 G-2 99-000-1710 Amounts to be Provided 25,874 GLTDAG 99-000-2740 Accured Comp. Absences 25,874 WF 60-701-6101 Salaries 4,748 60-000-2550 Accured Comp. Absences 4,748 30,622 30,622 To correct the client's erroneous update entry. 11 F-9 60-000-1145 CASH RESERVES 1,224 60-000-1140 DEPOSITS HELD IN TRUST 69,149 60-000-2731 BONDS PAYABLE - CURRENT 52,000 60-000-2738 CO's Payable - Other than Current 52,000 60-000-2600 INTEREST PAYABLE 5,115 60-701-6790 INTEREST EXPENSE 27,647 60-000-11XX DEFERRED LOSS ON REFUNDING 16,802 60-701-5530 INTEREST REVENUE 12,711 60 701-6799 MISC ADMIN EXPENSE 63,293 149,920 149,920 TO UPDATE GTUA BALANCES AND AMORTIZE DEFERRED REFUNDING LOSSES. 12 C-7 10-580-6933 Capital Improvements - Streets 11,361 10-580-6320 Maint. & Repair - Streets 11,361 10-550-6911 Machinery & Equipment 4,095 10-550-6302 Maint. & Repair - Equipment 4,095 72-752-6941 Other Capital Expenditures 4,059 72-752-6799 Other Services - Misc. 4,059 50-627-6703 Capital Facilities Contract Services 35 50-635-6941 Other Capital Expenditures 35 19,550 19,550 To reclassify non -capital expenses out of capital outlay accounts DRAFT #2 13 C-5 14 D-3 15 1-3 16 D-6 60-000-1640 Sewer treatment system 60-000-1650 Water and Sewer System 60-702-6703 Contract Services 60-702-6756 Engineering 60-702-6951 Water System Improvements 60-706-6703 Contract Services 60-706-6756 Engineering 60-706-6952 Sewer System Improvements To post part the year and AJE previously not posted 89-000-1215 Receivables - Local Business Loans 89-000-2115 Deferred Revenue - Local Business Loans TO PROPERLY STATE CDC NOTE RECEIVABLE RELATED BALANCES. 60-000-1203 Receivables - Due From Trust Funds 60-701-6799 Other Services - Misc. 60-000-1209 Receivables - Due From Capital Projects Fund 40-000-2104 Payable - Due to Capital Projeets Fund 40-611-6799 Other Services - Misc. 50-000-2102 Payable - Due To General Fund 50-625-5499 Miscellaneous Revenue 10-000-1209 Receivables - Due From Capital Projects Fund 10-000-1203 Receivables - Due From Trust Funds TO PROPERLY STATE DUE TO/FROM BALANCES. 89-000-1215 Receivables - Local Business Loans 89-000-2115 Deferred Revenue - Local Business Loans 90-000-1215(new) Receivables - Local Business Loans 90-000-2115(new) Deferred Revenue - Local Business Loans TO UPDATE LOAN BALANCES DUE TO THE EDC AND CDC. 706,685 61,253 4,504 20,163 36,586 23,605 28,625 654,454 767,937 767,937 35,642 35,642 35,642 35,642 1,600 2,100 500 2,100 2,100 1,600 1,600 1,600 1,600 500 500 500 500 35,000 35,000 35,000 35,000 41,310 41,310 41,310 41,310 100,427 100,427 100,427 100,427 DRAFT #2 CITY OF ANNA, TEXAS ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2015 DRAFT #2 CITY OF ANNA, TEXAS ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2015 Table of Contents FINANCIAL SECTION Page Independent Auditor's Report .............................................................. 1-2 Required Supplementary Information: Management's Discussion and Analysis .............................................. 3-8 Basic Financial Statements Government -wide Financial Statements Statement of Net Position.......................................................... 9-10 Statement of Activities............................................................... 11 Fund Financial Statements Balance Sheets — Governmental Type Funds ...................................... 12 Reconciliation of the Governmental Fund Balance Sheet to the Statement of Net Position..................................................................... 13 Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds............,................................................... 14 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities 15 Statement of Net Position — Proprietary Fund ............................... 16 Statement of Revenues, Expenses and Changes in Net Position — ProprietaryFund................................................................... 17 Statement of Cash Flows — Proprietary Fund .............................. 18 Notes to Basic Financial Statements .................................................. 19-40 Required Supplementary Information: Budgetary Comparison Schedule — General Fund .................................. 41 Schedule of Changes in Net Pension Liability and Related Ratios — Last 10 Years............................................................ 42 Schedule of TMRS Contributions..................................................... 43 Combining Statements Non -Major Governmental Type Funds — Balance Sheets — ............................. 44 Non -Major Governmental Type Funds — Combining Statement of Revenues, Expenditures, and Changes in Fund Balances —.......................................... 45 COMPLIANCE AND INTERNAL CONTROLS SECTION Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ............... 46-48 DRAFT #2 FINANCIAL SECTION DRAFT #2 Susan La Follett, CPA— Partner Rod Abbott, CPA — Partner and Abbott PLLC Certified Public Accountants INDEPENDENT AUDITOR'S REPORT To the City Council of the City of Anna, Texas Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activity, each major fund, and the aggregate remaining fund information of the City of Anna, Texas (the City), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business -type activity, each major fund, and the aggregate remaining fund information of the City of Anna, Texas, as of September 30, 2015, and the respective changes in financial position, for the year then ended in accordance with accounting principles generally accepted in the United States of America. LaFollett and Abbott PLLC PO Box 717 • Tom Bean, TX • 75489 903-546-6975 • www.lafollettcpa.com DRAFT #2 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information on pages 3 through 8 and 41 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. The retirement system funding information on pages 42 and 43 are also not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual nonmajor fund financial statements on pages 44-45 are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 8, 2016, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Anna, Texas internal control over financial reporting and compliance. Tom Bean, Texas March 8, 2016 2 DRAFT #2 CITY OF ANNA MANAGEMENT'S DISCUSSION AND ANALYSIS Our discussion and analysis of City of Anna's (the City) financial performance provides an overview of the City's financial activities for the fiscal year ended September 30, 2015. Please read it in conjunction with the City's financial statements, which begin on page 9. FINANCIAL HIGHLIGHTS • The assets and deferred outflows of the City exceeded its liabilities and deferred inflows at the close of FY15 by $36,919,669. This is an increase of $2,231,493 over FY14's restated net position value of $34,688,176. Unrestricted net position at the close of FY15 is $2,668,877 and may be used to meet the City's ongoing obligations to citizens and creditors. This is a decrease of $246,722 from FY14's unrestricted net asset value of $2,915,599. • The City's governmental funds reported on page 12 have an ending fund balance of $4,196,102, which is an increase of $609,620 in comparison with FY14 ending fund balances of $3,586,482. This increase was mostly attributable to favorable results for the City's General Fund. $2,414,801 of the governmental -type fund balance is classified as "unassigned" and available for spending at the City's discretion and in compliance with the City's financial policies. USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The government -wide financial statements include the Statement of Net Position and the Statement of Activities (on pages 9-11). These provide information about the activities of the City as a whole and present a Iong-term view of the City's financial condition. They reflect the flow of total economic resources in a manner similar to the financial reports of a business enterprise. Fund financial statements (starting on page 12) report the City's operations in more detail than the government - wide statements by providing information about the City's most significant funds. Governmental fund statements tell how services were financed in short-term, as well as what resources remain for future spending. They reflect the flow of current financial resources, and supply the basis for funding requests and the appropriations from the State. Proprietary fund financial statements report activity for the City's water, sewer, and sanitation operations. The notes to the financial statements (starting on page 19) provide narrative explanations or additional data needed for full disclosures for the government -wide statements and the fund financial statements. Reportine the City as a Whole — Government -Wide Financial Statements The Statement of Net Position and the Statement of Activities Govermment-wide financial statements, which provide an analysis of the City's overall financial condition and operation, begin on page 9. The primary objective of these statements is to show whether the City's financial condition has improved or deteriorated as a result of the year's activities. The Statement of Net Position includes all the City's assets, deferred outflows, deferred inflows, and liabilities (including long-term items) while the Statement of Activities includes all the revenue and expenses generated by the City's operations during the year. Government -wide statements utilize the accrual basis of accounting, which is the same method used by most private sector companies. DRAFT #2 All of the current year's revenue and expenses are taken into account regardless of when cash is received or paid. The City's revenue is divided into the following categories: 1) charges for services, 2) operating grants and contributions, 3) capital grants and contributions, 4) general revenues not associated with any specific program function. All of the City's assets are reported whether they serve the current or future years. Liabilities are also reported regardless of whether they must be paid in the current or future years. These two statements report the City's net position and changes in them. The City's net position provides one measure of the City's financial health or financial position. Over time, increases or decreases in the City's net position are one indicator of whether its financial health is improving or deteriorating. To fully assess the overall health of the City, you should consider non -financial factors as well, such as changes in the City's request for services from citizens and the condition of the City's facilities. In the Statement of Net Position and the Statement of Activities, the City has two kinds of activities: Governmental Type Activities — City services such as police and fire protection, street maintenance, parks, economic and community development, and city administration are reported here. City property taxes finance most of these activities. Business -Type Activities - The City uses proprietary (business -type) funds to account for its water, sewer, and sanitation operations. The services are supported by monthly charges to citizens. Revortine the City's Most SiLynificant Funds Fund Financial Statements The fund financial statements begin on page 12 and provide detailed information about the most significant funds. The City's two kinds of funds -governmental and proprietary -- use different accounting approaches. Governmental Funds — The City reports most of its basic services in governmental funds. Governmental funds use the modified accrual basis of accounting (a method that measures the receipt and disbursement of cash and other financial assets that can be readily converted to cash) and they report balances that are available for future spending. Governmental fund statements provide a detailed short-term view of the City's general operations and the basic services it provides. We describe the accounting differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds in reconciliation schedules found on pages 13 and 15. Proprietary Funds — The City uses proprietary (business -type) funds to account for its water, sewer, and sanitation operations. The full -accrual basis of accounting is used for all proprietary type funds. GOVERNMENT -WIDE FINANCIAL ANALYSIS Sixty-one percent (61 %) of the City's net position are invested in capital assets; land, streets, parks, buildings, water/sewer infrastructure, vehicles and equipment, less any outstanding debt used to acquire these assets. The City uses capital assets to provide services to the citizens they serve; consequently, these assets are not available for future spending. DRAFT #2 The following tables summarize the Statements of Net Position and Changes in Net Position for the years ended September 30, 2015 and 2014: Current and other assets Capital assets Total assets Deferred outflows of resources Total deferred outflows of resources Long-term liabilities outstanding Other liabilities Total liabilities Deferred inflows of resources Total deferred inflows of resources Net Position: Net investment in capital assets Restricted Unrestricted Total net position Revenues: Program Revenues: Charges for services Operating grants and contributions Capital grants and contributions General Revenues: Property taxes Other taxes and franchise fees Other Expenses: General government Economic/Community Development Police and court Streets Debt service - interest and issuance costs Development and animal control Parks Fire Ambulance wafer/Sewer/Sanitation Excess (deficiency) of revenues over expenditures before transfers Governmental Activities Business -type Activities FY15 FY14 FY15 FY14 Total FY15 FY14 $ 5,618,149 $ 4,114,822 $ 12,701,342 S 14,206,765 $ 18,319,491 $ 18,321,587 19,388,284 18,787,557 35,400,713 33,815,299 54,788,997 52,602,856 25,006,433 22,902,379 48,102,055 48,022,064 73,108,488 70,924,443 204,805 - 264,325 - 469,130 - 204,805 - 264,325 - 469,130 - 6,178,660 6,438,271 26,470,309 26,653,867 32,648,969 33,092,138 1,800,083 461,859 2,080,658 1,931,667 3,880,741 2,393,526 7,978,743 6,900,130 28,550,967 28,585,534 36,529,710 35,485,664 89,266 - 38,973 - 128,239 - 89,266 38,973 - 128,239 - 13,288,789 12,463,939 9,150,846 7,161,432 22,439,635 19,625,371 1,781,301 1,265,399 10,029,856 11,632,410 11, 811,157 12,897,809 2,073,139 2,272,911 595,738 642,688 2,668,877 2,915,599 S 17,143,229 $ 16,002,249 $ 19,776,440 $ 19,436,530 S 36,919,669 $ 35,438,779 Governmental Activities Business -type Activities Total FY15 FY14 - FY15 FY14 FY15 FY14 $ 1,060,450 $ 1,057,939 $ 6,194,327 $ 5,980,176 $ 7,254,777 $ 7,038,115 15,053 11,525 - - 15,053 11,525 1,417,514 783,182 755,508 486,155 2,173,022 1,269,337 3,322,054 2,807,140 - - 3,322,054 2,807,140 1,923,896 1,767,071 - - 1,923,896 1,767,071 379,533 174,851 77,064 73,451 456,597 248,302 8,118,500 6,601,708 7,026,899 6,539,782 15,145,399 13,141,490 1,058,719 963,243 - - 1,058,719 963,243 355,165 400,496 - - 355,165 400,496 1,634,235 1,447,695 - - 1,634,235 1,447,695 1,053,123 954,932 - - 1,053,123 954,932 316,079 258,663 - - 316,079 258,663 558,541 619,465 - 558,541 619,465 573,249 432,133 - - 573,249 432,133 753,541 701,282 - 753,541 701,282 124,155 123,683 - - 124,155 123,683 - - 6,487,099 5,453,831 6,487,099 5,453,831 6,426,807 5,901,592 6,487,099 5,453,831 12,913,906 11,355,423 1,691,693 700,116 539,800 1,085,951 2,231,493 1,786,067 Transfers In (Out) (649) 279,707 649 (279,707) - - Increase in net position 1,691,044 979,823 540,449 806,244 2,231,493 1,786,067 Net position - October I (beginning) 16,002,249 15,109,929 19,436,530 19,058,331 35,438,779 34,168,260 Prior period adjustments (550,064) (87,503) (200,539) (428,045) (750,603) (515,548) Net position - September 30 (ending) $ 17,143,229 $ 16,002,249 $ 19,776,440 $ 19,436,530 $ 36,919,669 $ 35,438,779 5 DRAFT #2 FINANCIAL ANALYSIS OF THE GOVERNMENT -WIDE STATEMENTS Net position of the City's governmental activities increased from $15,452,185 to $17,143,229. Unrestricted net position — the part of net position that can be used to finance day-to-day operations without constraints established by debt covenants, enabling legislation, or other legal requirements is $2,073,139 for governmental activities. FINANCIAL ANALYSIS OF THE CITY'S FUNDS The City's governmental funds (as presented in the balance sheet on page 12) reported a combined fund balance of $4,196,102 compared to $3,5 86,482 in FY 14. This represents an increase of $609,620. The General Fund, Economic Development Corporation, and Community Development Corporation all experienced increases in fund balance for FYI 5. Revenues and other financing sources for the City's General Fund were $5,332,070, while total expenses and other financing uses were $5,084,178. This resulted in an excess of revenues over expenditures of $247,892 (see page 14). Last year's result was an excess of revenues over expenditures of $429,972. The largest increases in FY 15 General Fund revenues came from property taxes and inspection fees. Overall General Fund expenditures increased by $583,745 when compared to FY14. The largest increases in FY15 General Fund expenditures were related to capital outlays and police expenses. General Fund expenditures were $91,851 less than budgeted, while General Fund revenues also experienced a favorable budget variance totaling $218,895. The main reason for the variance in revenues is Inspection fees being under budgeted by $187,925. Revenues for the City's Utility Fund were $6,271,391, while total expenses were $6,487,099. This resulted in a loss before transfers of $215,708 (see page 17). This is worse than 2014's result of income before contributions and transfers of $599,796. One reason for the decrease was a $412,846 increase in other contractual services. North Texas Municipal Water District contract expenses also increased by $218,399. The FYI unrestricted net position is $595,738. Excluding depreciation expense, this unrestricted net position is equal to approximately 1.79 months of the Utility Fund's 2015 operating expenses. CAPITAL ASSET AND DEBT ADMINISTRATION Canital Assets The City's investment in capital assets for all activities as of September 30, 2015 amounts to $55,550,757 compared to $52,602,866 (net of accumulated depreciation) at September 30, 2014. This investment in capital assets includes land, buildings and improvements, street improvements, parks, water and sewer systems, equipment and vehicles. The net increase in the City's investment in capital assets for the current fiscal year was $2,814,264. Some of the major capital asset expenditures during 2015 related to $1.35M of additions to streets and drainage systems. Long-term Debt At year-end, the City had total notes, capital leases, bonds and contractual obligations outstanding of $33,111,122. The City had two new debt issuances totaling $4,060,000 during 2015. The Utility Fund's new Series 2014A Refunding Bonds were issued to partially refund $2,598,000 of bonds from the series 2009 Combination Tax and Revenue Refunding Bonds. The Debt Service Fund's new Series 2014B General Obligation Refunding Bonds were issued to partially refund $990,000 of the Series 2006 Combination Tax and Limited Revenue Certificates of Obligation. The City made all required bond, capital lease, note, and contractual obligation principal payments for 2015. DRAFT #2 At the end of FY15, the City's total long-term commitments for governmental activities were $6,742,529 and total long-term commitments for the Utility Fund are $26,470,309. Total long-term commitments for the City increased by $3,437,562 from 2014 to 2015. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES Since property values stabilized in 2013 following the 2008-2011 housing recession, the City has continued to see healthy increases in the value of existing properties. In 2014 the taxable value of existing property increased just under 10% from the previous year, and over $37,000,000 in new value was added to the tax roll. Again in 2015, the City saw existing property values increase just over 10% and over $43,000,000 in new value was added the tax roll. We remain cautiously optimistic that we will experience modest, but slowing, appreciation in the value of existing properties and that additional value will be added to the tax roll as a result of new construction in the near term. New value added to the tax role will continue to be primarily from residential growth, however, a new Wal-Mart store slated to begin construction in spring of 2016 will mark a substantial contribution to the growth of our commercial tax base. The City continues to see consistent increases in the amount of sales tax revenue collected each year. Over the past five years, the City has seen an average year-to-year increase in sales tax revenue of about 10%. Sales tax revenue in FY 2015 was up 9% over the FY 2014 revenue. We anticipate that the opening of a new Wal-Mart store in 2017 will impact sales tax revenue. However given the difficulty of predicting consumer behavior as the national economy changes, we will continue to forecast very modest growth in sales tax revenue. The growth in sales tax revenue and the taxable value of real property corresponds to a significant increase in residential growth and population over the past 36 months. According to the most recent population estimates published by the North Central Texas Council of Governments, the City of Anna population as of January 1, 2015 was 10,980. In 2015 the City issued 276 single family building permits which equates to approximately 900 new city residents. As the inventory of finished lots has declined, the City expects that the number of new single family homes will decline slightly from the previous year. The City has forecasted the construction of approximately 200 new single family homes as a factor in the in the FY 16 budget. There are currently seven residential developments under construction that will add 627 single family lots to our inventory over the next 12 to 18 months. Of course with the growth in population comes a proportional increase in demand for municipal services that are funded primarily by property taxes. In order to fund the FY 2016 budget, the City adopted a tax rate of $0.639 per $100 valuation which is a decrease from the tax rate adopted in FY 2015. This marks the 2nd year in row that that the City Council has been able to decrease the City property tax rate. When compared with other cities in our area, the City of Anna still has one of lowest per -capita property tax levies. Rapid population growth has also resulted in significant investment over the past 10 to 15 years in the City's water and sewer system. Currently the Water and Sewer Fund holds just 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 Water and Sewer Fund. Looking to the future, the City anticipates a spike in debt service obligations in 2019. In order to appropriately manage this debt, the City and First Southwest developed a plan to take advantage of call dates and pursue advance refundings of the City's outstanding debt. Every effort has been made to minimize the present value costs to the City. The current plan makes very conservative assumptions 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 refunding are slated for mid -summer and late fall of 2017. These refundings will also free up cash and reduce pressure on utility rates. 7 DRAFT #2 In order to ensure that our utility rates will continue to support our operating costs and debt service obligations, the City hires a rate consultant to evaluate our utility system's operation costs and debt payments, and recommend any rate adjustments that would be necessary to fully fund the cost of operating our system while maintaining an adequate financial reserve. While water and sewer rates were unchanged in FY 15, the FY 16 budget included a 9% increase in the water and sewer rates. 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 North Texas Municipal Water District (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 City has direct and indirect contracts with the NTMWD for the purchase of treated surface water and for the transport and treatment of wastewater, As our population increases, we will be purchasing more water from NTMWD and sending more of our wastewater into the NTMWD wastewater system. The unprecedented precipitation experienced in the spring of 2015 resulted in significant increase in our costs for transportation and treatment of wastewater. The increase was driven by storm water inflow and infiltration (I&I) introduced into the City's wastewater system and then transported to the NTMWD regional collection system. This increase in flow was not anticipated and the City has worked with NTMWD to arrange for the payment of costs exceeding our FY 15 budget to be paid throughout FY 16. As a result, the City has doubled the budget for NTMWD wastewater transport and treatment charges. Increased demand coupled with the rising cost of treated surface water, and wastewater treatment charges from NTMWD will have a greater impact on the City's utility rate structure as we grow. The City will continue to review its rate structure to determine what, if any, adjustments to the rate structure might be warranted in the coming fiscal years. This evaluation is necessary to ensure that the City is able to meet its outstanding debt obligations and prepare for future capital improvements that will be necessary to maintain utility service to our community The construction of new municipal buildings and other facilities will require significant new capital investment over the next several years. City buildings are currently occupied at near maximum capacity, and the construction of a new city hall and subsequent public safety facilities will be necessary in the near future. With the growth in property and sales tax revenue, we anticipate that a new city hall can be constructed without raising the ad valorem tax rate. As growth continues, we- also anticipate that the City will increase its investment in the construction of new and expanded roadway facilities. CONTACTING THE CITY'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact City Hall, at 111 North Powell Parkway, P.O. Box 776, Anna, Texas 75409-0776 or (972) 924-3325. 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C b y C .� U ❑ rn CA cS O 00 It N � � 0n 'b U U �" 7 �• C .f.� Cd 'fy CD o v cn r el�a�c76's�wQ��H n3 � a DRAFT #2 City of Anna, Texas Balance Sheet - Governmental Type Funds September 30, 2015 Governmental Fund Types Total Other Governmental Assets General Governmental Funds Current assets: Cash and cash equivalents $ 3,220,340 $ 1,138,255 S 4,358,595 Investments 329,666 - 329,666 Accounts receivable - net 409,291 138,337 547,628 Notes receivable - net - 141,737 141,737 Due from other funds 610,931 40,326 651,257 Total current assets 4,570,228 1,458,655 6,028,883 Liabilities Current liabilities: Accounts payable 142,0I0 - 142,010 Salaries payable 107,632 - 107,632 Other accrued liabilities 139,672 - 139,672 Construction costs payable 816,875 - 816,875 Due to other funds - 410,734 410,734 Total current liabilities 1,206,189 410,734 1,616,923 Deferred Inflows of Resources Unavailable revenues - property taxes 45,974 8,690 54,664 Unavailable revenues - court 19,457 - 19,457 Unavailable revenues - business loans - 141,737 141,737 Total deferred inflows of resources 65,431 150,427 215,858 Fund Balances Restricted Committed - revenue stabilization Unassigned Total fund balances Total liabilities, deferred inflows, and fund balances 523,192 1,100,633 1,623,825 157,476 - 157,476 2,617,940 (203,139) 2,414,801 3,298,608 897,494 4,196,102 $ 4,570,228 $ 1,458,655 $ 6,028,883 The accompanying notes are an integral part of these financial statements. 12 DRAFT #2 City of Anna, Texas Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position For the Year Ended September 30, 2015 Fund balances of governmental funds (page 12) Amounts reported for governmental activities in the Statement of Net Position (pages 9-10) are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Accrued interest payable does not require the use of current financial resources and, therefore, are not reported in the governmental funds. Net pension liability is not a financial resource; therfore, it is not reported in the governmental funds. TMRS contributions are not current financial resources/burden; therefore they are not reported in the governmental funds. The net of these amounts is: Unamortized pension investment gains/losses are not current financial resources/burden; therfore they are not reported in the government funds. The net of these amounts is: Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds. Revenue earned from a CDC long-term receivable is not all due in the current period and, therefore, is deferred in the fund financial statements. Property taxes and court revenue not received at year-end are shown as deferred income on the fund financial statements, but the amount should not be shown as a liability on the Statement of Net Position. Net position of governmental activities (page 10) 4,196,102 19,388,284 (30,025) (655,971) 204,805 (111,107) (6,086,558) 141,737 74,121 $ 17,121,388 The accompanying notes are an integral part of these financial statements. 13 DRAFT #2 City of Anna, Texas Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds For the Year Ended September 30, 2015 Revenues Taxes: Property Sales Franchise Building permits Inspection fees Grants and contributions Court Intergovernmental Other revenue Developer and impact fees Other development fees Fire Parks Rentals Police Investment earnings Total revenues Expenditures Current: Police Administrative and general Fire Development and animal control Community and economic development Parks Streets Court Ambulance Capital outlays Debt service: Principal retirement Interest expense Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses) Sale of capital assets Bond Proceeds Debt issuance costs Debt principal paid to refunding escrow bond Other payments to refunding escrow bond Transfers in Transfers (out) Total other financing sources(uses) Net changes in fund balances Fund balances - beginning Fund balances - ending Governmental Fund Types Other General Governmental $ 2,790,773 736,481 450,799 381,318 187,925 15,053 115,027 114,200 59,958 92,012 86,957 69,826 63,265 25,400 17,371 5,206,365 I,370,091 1,042,050 688,371 559,583 246,808 200,188 132,675 124,155 469,276 4,833,197 373,168 65,000 60,705 (250,981) {125,276) 247,892 3,050,716 $ 3,298,608 $ 526,744 736,616 I20,896 36,435 30,000 6,314 1,457,005 6,954 336,836 286,259 466,776 200,331 1,297,156 159,849 1,462,000 (38,350) (1,334,000) (77,398) 274,429 (84,802) 201,879 361,728 535,766 $ 897,494 Total Governmental $ 3,317,517 1,473,097 450,799 381,318 187,925 135,949 115,027 114,200 96,393 92,012 86,957 69,826 63,265 30,000 25,400 23,685 6,663,370 1,370,091 1,049,004 688,371 559,583 336,836 246,808 200,188 132,675 124,155 755,535 466,776 200,331 6,130,353 533,017 65,000 1,462,000 (38,350) (1,334,000) (77,398) 335,134 (335,783) 76,603 609,620 3,586,482 $ 4,196,102 The accompanying notes are an integral part of these financial statements. 14 DRAFT #2 City of Anna, Texas Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds To the Statement of Activities For the Year Ended September 30, 2015 Amounts reported for governmental activities in the Statement of Activities (page 11) are different because: Net change in fund balances - total governmental funds (page 14) Governmental funds report capital outlays as expenditures. However, in the Statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation expense exceeded capital outlay expenditures in the current period. Governmental funds recogonize the full amount received as revenue for sale of disposed assets, but net book value of the assets are factored in for the government -wide financial statements. Governmental funds reports the effects of debt premiums, debt discounts, and deferred losses on refunding when debt is first issued, whereas the amounts are deferred and amortized in the Statement of Activities Non -cash capital contributions and other contributions not received within sixty days after year-end are not reported as income in the governmental funds. Principal payments on long-term debt are an expenditure for the governmental funds, but this expenditure is removed for the government -wide financial statements. The decrease in accrued compensated absences does not use current financial resources and, therefore is not reported in the governmental funds. Various other reclassifications and eliminations are necessary to convert frotr► the modified accrual basis of accounting to accrual basis of accounting. These include recognizing the change in deferred inflows of resources and various other items. The net effect of these reclassifications is to decrease net position. Change in net position of governmental activities (page 11) S 609,620 (670,051) (25,840) (128,000) 1,296,618 466,776 12,937 128,984 $ 1,691,044 The accompanying notes are an integral part of these financial statements. 15 DRAFT #2 City of Anna, Texas Statement of Net Position - Proprietary Fund (Utility Fund) September 30, 2015 Assets Utility Fund Current assets: Cash and cash equivalents $ 2,300,228 Certificates of deposit 123,884 Accounts receivable - net 461,765 Inventory 26,132 Restricted pooled investments 56,532 Restricted cash for capital improvements 7,943,934 Total current assets 10,912,475 Noncurrent assets: Restricted deposits held in trust with GTUA 2,029,390 Capital assets (non -depreciable): Land and easements 708,016 Construction in progress 732,493 Capital assets (net) plants, machinery, and equipment 33,960,204 Total capital assets 35,400,713 Total noncurrent assets 37,430,103 Total assets 48,342,578 Deferred Outflows of Resources Deferred loss on bond refunding 184,824 Deferred unamortized investment losses 7,661 Deferred TMRS Contributions 71,840 Total Deferred Outflows of Resources 264,325 Total Assets and Deferred Outflows of Resources $ 48,606,903 Liabilities Current liabilities: Accounts payable $ 558,537 Salaries payable 32,235 Other liabilities 28,988 Bond interest payable 796,344 Due to General Fund 200,195 Due to Capital Projects Fund 40,326 Customer deposits 648,704 Accrued compensated absences 15,852 Current portion of long-term debt 745,750 Total current liabilities 3,066,931 Noncurrent liabilities: Bonds and notes payable 25,504,117 Net pension liability 220,442 Total noncurrent liabilities 25,724,559 Total liabilities 28,791,490 Deferred Inflows of Resources Deferred inflows of resources - unamortized investment gains 38,973 Total Liabilites and Deferred Inflows of Resources $ 28,830,463 Net Position Net investment in capital assets 9,150,846 Restricted - GTUA deposits 2,029,390 Restricted - water and sewer improvements 8,000,466 Unrestricted 595,738 Total net position $ 19,776,440 The accompanying notes are an integral part of these financial statements. 16 DRAFT #2 City of Anna, Texas Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Fund (Utility Fund) For the Year Ended September 30, 2015 2015 Operating revenues: Water income $ 2,648,953 Sewer income 1,776,107 Sanitation income 754,181 Developer and impact fees 592,000 Inspection fees 113,237 Connect, install, and tap fees 112,740 Water customer late fees 130,174 Groundwater production fees 50,518 Miscellaneous revenue 16,417 Total operating revenues 6,194,327 Operating expenses: Personnel and benefits 905,496 Sanitation contract 658,561 Supplies, repairs, and maintenance 539,542 N. Texas Municipal Water District contract 526,893 Utilities 420,574 Other contractual services 412,846 Reimbursed developer fees 397,325 Other operating expenses 97,396 Bad debt 28,622 Depreciation 1,326,634 Total operating expenses 5,313,889 Operating income 880,438 Non -operating revenues (expenses): Interest expense (1,111,836) Bond issuance costs (61,374) Interest income 77,064 Total non -operating revenues (expenses) (I,096,146) Income before contributions and transfers (215,708) Contributed capital assets 755,508 Transfers in from Debt Service Fund 84,802 Transfers out to the Capital Projects Fund (84,153) Change in net position 540,449 Total net position - beginning (restated) 19,235,991 Total net position - ending $ 19,776,440 The accompanying notes are an integral part of these financial statements. 17 DRAFT #2 City of Anna, Texas Statement of Cash Flows - Proprietary Fund (Utility Fund) For the Year Ended September 30, 2015 Operating Activities: 2015 Receipts from customers and users $ 6,313,463 Payments to suppliers (2,753,688) Payments to employees (903,122) Net cash provided (used) by operating activities 2,656,653 Capital and Related Financing Activities: Proceeds from debt issued 2,598,000 Cash paid to escrow agent for debt refunding principal (2,335,000) Other cost paid to escrow agent (201,626) Cash to GTUA reserve accounts (97,731) Cash paid for bond issuance costs (61,374) Cash from restricted capital improvements accounts 1,672,960 Cash paid for acquisition and construction of capital assets (2,155,658) Interest paid on long-term debt (1,106,721) Principal payments on debt (667,000) Net cash provided (used) by capital and related financing activities (2,354,150) Non -capital and Related Financing Activities Transfers in from other funds 84,802 Transfers (out) to other funds (84,153) Net cash provided (used) by non -capital and related financing activities 649 Investing Activities: Interest received 77,064 Net cash provided (used) by investing activities 77,064 Net increase (decrease) in cash and cash equivalents 380,216 Cash and cash equivalents, October 1 1,920,012 Cash and cash equivalents, September 30 $ 2,300,228 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss) $ 680,438 Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation expense 1,326,634 Sad debt expense 28,622 Decrease (increase) in accounts receivable 80,786 Decrease (increase) in inventory 203,692 Increase (decrease) in due to General Fund (1,600) Increase (decrease) in accounts payable 79,247 Increase (decrease) in other liabilities 18,110 Increase (decrease) in customer deposits 38,350 Increase (decrease) in accrued compensated absences 2,374 Net cash provided by operating activities $ 2,656,653 Non -cash capital activities: Contributions of capital assets $ 755,508 The accompanying notes are an integral part of these financial statements. I8 DRAFT #2 CITY OF ANNA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2015 NOTE A - SUMMARY OF ACCOUNTING POLICIES The City of Aiwa, Texas (the "City") is a Home Rule Charter city that operates under a Council -Manager form of government. The City provides the following services: public safety, ambulance, streets, sanitation, planning and zoning, and general administrative services. Other services include water, sewer, and sanitation operations. The financial statements of the City of Anna are prepared in accordance with Generally Accepted Accounting Principles (GAAP). The City's reporting entity applies all relevant Governmental Accounting Standards Board (GASB) pronouncements. Proprietary funds and similar component units apply Financial Accounting Standards Board (FASB) pronouncements. The following is a summary of the more significant policies: 1. The Reporting Entity The accompanying financial statements present all funds relevant to the operations of the City and its component units as defined by GASB Statement 61: The Financial Reporting Entity: Omnibus an amendment to of GASB Statements 14 and 34. Component units are fiscally dependent upon the City and there is potential for a financial burden or benefit relationship. Based on the criterion stated above, the Anna Community Development Corporation ("CDC") and the Anna Economic Development Corporation ("EDC") are component units of the City. The CDC and EDC are nonprofit organizations established to act on behalf of the City of Anna under the Development Corporation Act of 1979, section 4B and 4A, respectively. Both component units are considered special revenue funds of the City and are presented as blended governmental -type funds. The blended methodology was selected after evaluation of the "substantively the same" and financial burden or benefit relationship criteria. It should be noted that when the blended method is used, transactions of the component unit are presented as if they were executed directly by the primary government. 2. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e. the Statement of Net Position and the Statement of Activities) report information on all the non -fiduciary activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the City is financially accountable. The Statement of Activities demonstrates the degree to which direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes or other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. 19 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Major individual governmental funds are required to be reported in separate columns in the fund financial statements. 3. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recognized when earned and expenses are recognized when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue when all of the eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when they become both measurable and available as net current assets. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal year. Gross receipts and sales taxes are considered measurable when in the hands of intermediary collecting government and are recognized as revenue at that time. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include; (1) accumulated unpaid vacation, sick pay, and other employee amounts which are not accrued; and (2) principal and interest on general long-term debt which are recognized when due. Proprietary funds distinguish operating revenues and expenses from non -operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. All revenues not meeting this definition are reported as non -operating revenues and expenses. All proprietary funds are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned, and their expenses are recognized when they are incurred. Unbilled utility services receivables related to water, wastewater, and sanitation services are recorded at year-end. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted funds first, then unrestricted resources as they are needed. 4. Fund Accounting The accounts of the City are organized on the basis of funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self -balancing accounts, which are comprised of each fund's assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Government resources are allocated to and for individual funds based on the purposes for which they are to be spent and the means by which spending activities are controlled, The City, for financial purposes, includes all of the funds relevant to the operations of the City of Anna. Funds designated as "major" fiends for the City each year are considered particularly important due to the level of activity in these fiends. The General Fund is always considered a major fund for the City. For 2015, the Utility Fund is also a major fund. The various funds are grouped, in the financial statements in this report, into two Rind categories as follows: 20 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) GOVERNMENTAL FUND TYPES General Fund The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Debt Service Fund Accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds. Capital Projects Fund Accounts for the acquisition and construction of governmental -type assets from expenditures of debt proceeds, capital grants, or other sources restricted for governmental type asset acquisition. Special Revenue Funds The Anna CDC is a special revenue fund that accounts for the accumulation of State of Texas 4A sales tax revenues and related community development expenditures. The Anna EDC is a special revenue fund that accounts for the accumulation of State of Texas 4B sales tax revenues and related economic development expenditures. PROPRIETARY FUND TYPES Utility Fund Accounts for operations (a) that are financed and operated in a manner similar to private business enteiprises-where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The Utility Fund accounts for the water, sewer, and sanitation services provided by the City. 5. Cash and Cash Equivalents For purposes of the statement of cash flows, the City considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents. Other deposits with longer maturities are classified as investments. 5. Inventory City inventory is maintained for water meters and other supplies in the Utility Fund. Inventory is recorded at cost with value adjusted on the first in, first out methodology. 7. Capital Assets Property, plant and equipment used in governmental fund type operations are shown on the Statement of Net Position, rather than governmental funds. The City has a $5,000 capitalization threshold for capital assets. 21 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) All property, plant and equipment are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated property, plant and equipment are valued at their estimated fair value on the date donated. Depreciation is provided in the enterprise funds in amounts sufficient to relate the cost of the depreciable assets to operations over their estimated service lives on the straight-line basis. The service lives by type of asset are follows: Depreciable Asset Category Life in Years Buildings 20 Water & Sewer System infrastructure 35 Equipment 3-20 Streets 20 8. Long _Term Liabilities Long-term liabilities expected to be financed from governmental fund types are shown on the Statement of Net Position, rather than governmental funds. Principal payments for this debt are expensed on the fund financial statement, but this expense is removed for the government -wide statement of activities. 9. Due To and From Funds Outstanding balances between funds at the end of the fiscal year are referred to as either "due to/from other funds". Any residual balances between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances". 10. Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave since the City will not pay any unused amounts when employees separate from service with the City. Vacation pay is accrued in the government -wide and proprietary financial statements. 11. Fund Balances The City has adopted Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions (GASB 54). This Statement defines the different types of fund balances that a governmental entity must use for financial reporting purposes in the fund financial statements for governmental type funds. It does not apply for the govermment-wide financial statements or proprietary type funds. GASB 54 requires the fund balance amounts to be properly reported within one of the following fund balance categories: Nonspendable - such as fund balance associated with inventories, prepaids, long-term loans and notes receivable, and property held for resale (unless the proceeds are restricted, committed, or assigned). Restricted - fund balance category includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation, 22 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Committed - fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the City Council (the City's highest level of decision -making authority), Assigned - fund balance classification authorized for City Manager use to be used for specific purposes but do not meet the criteria to be classified as restricted or committed, and Unassigned - fund balance is the residual classification for the government's General Fund and includes all spendable amounts not contained in the other classifications, and other funds that have total negative fund balances. 12. Budget and Budgetary Accounting The official city budget is prepared for adoption for the Governmental Fund Type and the Proprietary Fund Type during the month of September. 13. Revenue Recognition — Property taxes Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on October 1 and are due and payable at that time. All unpaid taxes levied October 1 become delinquent February 1 of the following year. Property tax revenues are recognized when they become available. Available includes those property tax receivables expected to be collected within sixty days after year --end. NOTE B - CASH, CASH EQUIVALENTS, AND POOLED INVESTMENTS As of September 30, 2015, the City maintains banking accounts at Texas Star Bank, Independent Bank, and the state -operated Texpool system. The City's investments are limited to demand deposits and certificates of deposits in financial institutions that are members of the FDIC. At September 30, 2015, City's deposits held in its depository banks totaled $15,546,170 with $997,767 insured by the Federal Deposit Insurance Corporation. Securities have been pledged in the City's name by the depository banks to collateralize 100% of all remaining deposits. Summary of deposits with financial institutions: Primary government cash and cash equivalents $ 4,706,716 Primary government investments 2,181,313 Restricted cash 8,658,141 Deposits with financial institutions 15,546,170 Add: petty cash I,860 Total primary government cash and other deposits $ 15,548,030 The Texas State Comptroller of Public Accounts exercises oversight responsibility over TexPool (pooled investments). Oversight includes the ability to significantly influence operations, designations of management and accountability for fiscal matters. Additionally, the State Comptroller has established an advisory board composed of both participants in TexPool and other persons who do not have a business relationship with TexPool. The Advisory Board members review the investment policy and management fee structure. Standard and Poor's rates TexPool at AAAm. 23 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) To maintain the rating, weekly portfolio information must be submitted to Standard and Poor's and the office of the Comptroller of Public Accounts for review. TexPool operates in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940. TexPool uses amortized cost rather than the market value to report net assets to compute share prices. Accordingly, the fair value of the position in TexPool is the same as the value of TexPool shares. The City's pooled investments at September 30, 2015, are comprised of governmental investment pools in the Texas Local Government Investment Pool (TexPool) as follows: Carrying Amount & Fair Value Public fund investment pools: TexPool General Account $ 205,782 TexPool Sewer Capital Improvement Fund 56,532 Total public funds investment pools: $ 262,314 Custodial credit risk Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City's investment policy requires collateralization of certificates of deposit or demand deposits, to be held by an independent safekeeping agent. The safekeeping bank may not be within the same holding company as the banks from with the securities are pledged. City deposits over and above amounts insured by the Federal Deposit Insurance Corporation (FDIC) are collateralized by securities held by the City's safekeeping agent. Interest rate risk Through its investment policy, the City manages its exposure to fair value losses arising from increasing interest rates by limiting the duration of investments within its investment portfolio to a maturity period no greater than three years for the Debt Service Fund, no greater than the final expenditure date for bond proceeds held in a Capital Projects Funds, and no greater than 270 days for all other funds. Credit risk Credit risk is the risk that an issuer or other counterpariy to an investment will not fulfill its obligations. According to the City's investment policy, to mitigate credit risk, funds shall be invested in the following types of investments: 1) state or local investment pools 2) direct obligations of the U.S. government 3) bonds with maturities less than two years and guaranteed by the U.S. government 4) certificates of deposits with maturities less than two years 5) repurchase agreements collateralized with U.S. treasury securities with terms less than 90 days 6) SEC registered, AM -rated money market mutual funds with a dollar -weighted average portfolio maturity of 90 days or less, and 7) fixed rate or discount notes with a maturity of two years or less pledged or otherwise guaranteed by any of the following federal agencies: Federal National Mortgage Association, Federal Home Loan Bank, Federal Farm Credit Bank, Student Loan Marketing Association, and the Federal Home Loan Mortgage Corporation. 24 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Concentration of credit risk Concentration of credit risk is the risk of loss attributed to the magnitude of investment in a single issuer. The City investment policy requires investment funds to be fully collateralized. NOTE C — PROPERTY TAX REVENUE Property and personal taxes are billed and collected by the Collin County Tax Assessor/Collector. The total property tax levy for the 2014/2015 tax year was $3,291,889. At September 30, 2015, $3,290,905 of the tax has been collected, which is 99.97%. Ad valorem taxes are levied from valuations assessed as of January 1 and recognized as revenue on the date of the levy on October 1. Property tax receivables are recognized when the City has an enforceable claim against the property owner. In the governmental funds, property tax revenue is recognized in the fiscal period for which the taxes are levied, provided that they become available. Available means collected within the current period, or expected to be collected soon enough thereafter, to be used to pay current liabilities. The City's availability period is sixty days. Taxes collected prior to the levy date to which they apply are recorded as deferred inflows of resources and recognized as revenue of the period to which they apply. Current taxes are levied by October 1 and become delinquent if unpaid on February 1. Taxes unpaid as of February 1 are subject to penalty and interest as the City Council provides by ordinance. The penalty is 6% for the first month, and increased 1% per month up to a 12% maximum. Under state law, property taxes levied on real property constitutes a lien on the real property which cannot be forgiven without specific approval of the state legislature. NOTE D - RECEIVABLES Receivables at September 30, 2015, consisted of the following: Primary Government Other Governmental- Proprietary General Fund Type Funds Fund Property tax $ 45,974 $ 8,691 $ - Sales tax 129,645 129,646 - Franchise fees 92,820 - - Court fines 561,460 - - Loans (long-term) - 141,737 - Utility bills - - 598,228 Other 111,411 - - Gross receivables 941,310 280,074 599,228 Less: Allowance for uncollectibles (532,019) - (136,463) Net receivables $ 409,291 $ 280,074 $ 461,765 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) NOTE E — CAPITAL ASSETS GOVERNMENTAL FUND TYPE ACTIVITIES Governmental fund type capital asset activity for the year ended September 30, 2015 was as follows: Nondepreciable assets: Land Construction in progress Depreciable assets: Park improvements Buildings Furniture and fixtures Streets and drainage Machinery and equipment Totals at historical cost Less: Accumulated depreciation Governmental fund type capital assets, net Retirements, Beginning Transfers, and Balance Additions Reclassifications Ending Balance $ 2,039,210 $ 138,666 $ - $ 2,177,876 437,057 69,052 (437,056) 69,053 5,355,204 54,879 437,056 5,847,139 1,483,499 92,810 - 1,576,309 219,196 85,810 - 305,006 16,076,076 1,353,862 - 17,429,938 2,202,455 257,077 (77,205) 2,382,327 27,812,697 2,052,156 (77,205) 29,787,648 (9,025,140) (1,425,588) 51,364 (10,399,364) $ 18,787,557 $ 626,568 $ (25,841) $ 19,388,284 PROPRIETARYFUND TYPEACTIVITIES Proprietary fund type capital asset activity for the year ended September 30, 2015 was as fdlows: Nondepreciable assets: Land and easements Construction in progress Depreciable assets: Furniture Buildings and improvements Equipment Water treatment system GTUA water improvements GTUA sewer improvements Water and sewer system Totals at historical cost Less: Accumulated depreciation Proprietary fund type activities capital assets, net Retirements, Beginning Transfers, and Balance Additions Reclassifications Ending Balance $ 411,068 $ 296,948 $ - $ 708,016 3,423,222 643,110 (3,333,839) 732,493 5,620 - - 5,620 486,244 - - 486,244 1,349,770 42,956 - 1,392,726 5,994,665 1,034,221 825,121 7,854,007 16,979,634 366 (366) 16,979,634 939,796 - - 939,796 13,617,049 894,813 2,508,718 17,020,580 43,207,068 2,912,414 (366) 46,119,116 (9,391,769) (1,326,634) - (10,718,403) $ 33,815,299 $ 1,585,780 $ (366) $ 35,400,713 26 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Depreciation for general fixed assets is included as an expense for governmental activities on the Statement of Activities. Depreciation for proprietary type funds are included in both the fund financial statements and on the Statement of Activities. Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: Streets $ 852,935 Parks 326,879 Police 135,762 General government 24,985 Fire 66,698 Economic development 18,329 Total depreciation expense - governmental activities $ 1,425,588 Business -type activities: Water and sewer $ 1,326,634 Total depreciation expense - business -type activities $ 1,326,634 NOTE F - LONG-TERM DEBT The City has outstanding general obligation bonds, revenue bonds, notes payable, capital leases, and certificates of obligation for the acquisition of capital assets and the construction of major capital facilities. The following is a schedule of future debt service requirements to maturity: Total Governmental Activities Business -Type Activities Fiscal Year Ended Principal Interest Principal Interest Principal Interest 2016 $ 1,207,903 $ 1,212,408 $ 462,153 $ 195,201 $ 745,750 $ 1,017,206 2017 1,199,236 1,163,918 426,736 186,501 772,500 977,417 2018 1,150,724 1,306,997 407,474 214,662 743,250 1,092,335 2019 1,438,462 1,531,601 439,712 273,326 998,750 1,258,275 2020 1,859,799 1,483,952 413,549 283,543 1,446,250 1,200,409 2021-2025 10,268,718 5,787,059 2,231,218 1,044,595 8,037,500 4,742,464 2026-2030 8,952,250 2,355,613 1,334,000 314,350 7,618,250 2,041,263 2031-2035 5,037,500 723,975 270,000 8,906 4,767,500 715,069 2036-2040 1,036,250 171,799 - - 1,036,250 171,799 $ 32,150,842 $ 15,737,322 $ 5,984,842 $ 2,521,084 $ 26,166,000 $ 13,216,238 27 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) The following is a summary of the terms of the City's long-term debt at September 30, 2015: Governmental Activities: Purpose Original Amount Year of Issue Final Maturity Interest Rate Balance September 30, 2015 Due Within One Year 2006 Combination Tax and Limited Surplus Revenue Certificates of $ 2,480,000 2005 2/15/2026 3.5%-5.25% $ 650,000 $ 120,000 Obligation 2007 Certificate of Obligation 1,420,000 2007 2/15/2027 3.95% to 15% 795,000 95,000 2007 Revenue Bond 370,000 2007 2/I5/2027 3.95% to 15% 205,000 25,000 2009 Tax and Revenue Certificate of 900,000 2009 2/15/2026 4.28% (to I5% 720,000 40,000 Obligation on 02/15/2018) Series 2014B General Obligation 1,462,000 2014 2/15/2026 .3%-2.395% 1,410,000 27,000 Refunding Bond EDC - Note payable 335,000 2012 11/14/2021 4.465% 223,876 32,255 EDC - Note payable 380,300 2008 2018 5% 166,966 40,898 CDC - Sales Tax Revenue Refunding 204,000 67,000 Bonds- Series 2012A 396,000 2012 2/15/2018 3.25% CDC - Sales Tax Revenue Bonds- 1,610,000 15,000 Series 2012B $ 1,655,000 2012 2032 3.30% Compensated absences 101,716 101,716 Total Governmental Activities $ 6,086,559 $ 563,869 Business -Type Activities: Balance Original Year of Final September 30, Due Within Purpose Amount Issue Maturity Interest Rate 2015 One Year 1976 General Obligation Water Bonds 2005 GTUA contract Series 2006 GTUA contract revenue bonds (12&15) Series 2007 GTUA contract revenue bonds 2007 GTUA contract 2007 GTUA contract 2007 GTUA contract 2008 GTUA contract CC. MA Pipeline Project Phase I CGMA Pipeline Project Phase II CGMA Pipeline Project Phase III 2009 combination tax and revenue refunding bond 2012 combination tax and revenue certificates of obligation 2014 combination tax and revenue certificates of obligation 100,000 1976 9/30/2016 5% $ 5,000 $ 5,000 2,885,000 2005 5/1/2028 4,42% 1,990,000 95,000 2,125,000 2006 6/l/2026 2.95%-3.75% 1,355,000 100,000 760,000 2007 5/1/2027 3.07%-5.57% 555,000 35,000 1,105,000 2007 5/1/2027 3.07%-5.57% 820,000 50,000 2,325,000 2007 6/i/2028 2.95%-4.1% 1,710,000 105,000 3,365,000 2007 5/I/2032 3.07%-5.62% 3,110,000 50,000 540,000 2008 9/30/2027 2.29%-5.74% 395,000 25,000 700,000 2008 10/1/2028 2.29%-5.74% 488,750 26,250 2,168,750 2009 9/30/2040 5.68%-5.83 2,168,750 - 1,250,000 2008 10/1/2036 2.67%-5.62% 1,007,500 52,500 4.28% (to 15% 4,165,000 2009 2/15/2026 on 02/15/2018) 1,705,000 - 4,210,000 2013 2/15/2033 1.5%-2.5% 4,130,000 80,000 $ 4,180,000 2014 2/15/2034 Series 2014A refunding bonds $ 2,598,000 2014 2/15/2026 Bond premiums various various various Total Business -Type Activities Total general debt (Governmental Type and Business -Type Activities) 28 2.0%-3.65% 4,180,000 70,000 2.11 % 2,546,000 52,000 n/a 83,867 - 26,249,867 745,750 $ 32,336,425 $ 1,309,619 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Governmental activities: 2006 Combination Tax and Limited Surplus Revenue Certificates of Obligation 2007 Certificate of Obligation 2007 Revenue Bond 2011 Public Property Finance Act Certificates of Obligation Series 2014B General Obligation Regunding Bond EDC - FY12 Bank note payable - 4.465% a.p.r. Matures 11/14/2021 - Original issue - $335,000 EDC - FY08 Bank note payable - 5% a.p.r. - Matures 2019 - Original amount was $380,300 2009 Tax and Revenue Certificate of Obligation CDC - Sales Tax Revenue Refunding Bonds- Series 2012A CDC Sales Tax Revenue Bonds- Series 2012B Other liabilities Total Governmental activity long term liabilities Business -type activities: 1976 General Obligation Water Bonds 2005 GTUA contract Beginning Due Within Balance Additions Reductions Ending Balance One Year $ 1,755,000 $ - $ (1,105,000) $ 650,000 $ 120,000 885,000 - (90,000) 795,000 95,000 230,000 - (25,000) 205,000 25,000 344,000 - (344,000) - - - 1,462,000 (52,000) 1,410,000 27,000 254,724 - (30,848) 223,976 32,255 205,894 - (38,928) 166,966 40,898 755,000 - (35,000) 720,000 40,000 269,000 - (65,000) 204,000 67,000 1,625,000 - (15,000) 1,610,000 15,000 114,653 - (12,937) 1012716 101,716 $ 6,438,271 $ 1,462,000 $ (1,813,713) $ 6,086,558 $ 563,869 Beginning Due Within Balance Additions Reductions Ending Balance One Year $ 10,000 $ - $ (5,000) $ 5,000 $ 5,000 2,085,000 - (95,000) 1,990,000 95,000 Series 2006 GTUA contract revenue bonds (12&15) 1,455,000 - (100,000) 1,355,000 100,000 Series 2007 GTUA contract revenue bonds 590,000 - (35,000) 555,000 35,000 2007 GTUA contract 870,000 - (50,000) 820,000 50,000 2007 GTUA contract 1,810,000 - (100,000) 1,710,000 105,000 2007 GTUA contract 3,160,000 - (50,000) 3,110,000 50,000 2008 GTUA contract 420,000 - (25,000) 395,000 25,000 CGMA Pipeline Project Phase I 513,750 - (25,000) 488,750 26,250 CGMA Pipeline Project Phase II 2,168,750 - - 2,168,750 - CGMA Pipeline Project Phase I1I 1,057,500 - (50,000) 1,007,500 52,500 2009 combination tax and revenue refunding bond 4,040,000 - (2,335,000) 1,705,000 - 2012 combination tax and revenue certificates of obligation 4,210,000 - (80,000) 4,130,000 80,000 2014 combination tax and revenue certificates of obligation 4,180,000 - - 4,180,000 70,000 Series 2014A refunding bonds - 2,598,000 (52,000) 2,546,000 52,000 Bond premiums 83,867 - - 83,867 - Total business -type activities longterm liabilities $ 26,653,867 $ 2,598,000 $ (3,002,000) $ 26,249,867 $ 745,750 29 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) CONTRACTUAL OBLIGATIONS WITH GREATER TEXOMA UTILITYAUTHORITY Under the terms of long term water supply and sewer service contracts between the City and Greater Texoma Utility Authority (GTUA), the City recognizes that GTUA has an undivided ownership interest in the City's water system and sewer collection and treatment facility equivalent to the percentage of the total cost of the facility provided by GTUA through the issuance of GTUA bonds. The City has a contractual obligation to make payments specified by the contract to GTUA to pay the principal and interest on the bonds, maintain a Reserve Fund for the security and payment of bonds similarly secured, pay the administrative and overhead expenses of GTUA directly attributable to the bonds, and pay any extraordinary expenses incurred by GTUA in connection with the bonds. Under terms of the contracts the City's obligation to make payments to GTUA, as well as GTUA's ownership interest in the facilities terminates, when all of GTUA's bonds issued in connection with construction of the facilities have been paid in full, are retired, and are no longer outstanding. Collin Grayson Municipal Alliance Transmission Water Pipeline In 2004, the City, along with the City of Van Alstyne, Howe, and Melissa, formed a group called the Collin Grayson Municipal Alliance ("CGMA"). CGMA entered into a long-term contractual obligation with GTUA for the purpose of providing funds for the construction of a transmission water pipeline that will provide water to CGMA cities. The cost of the pipeline is being funded in four phases. Each CMGA city was required to make payments to GTUA in an amount equivalent to 25% of the total obligation to cover their portion of the cost of the obligation until the pipeline project was completed. As water continues to flow to each CGMA city, the City shall be charged it's percentage or fraction share of debt service on the obligation based upon: the amount of water to be paid by the City under its water contract (i.e. the greater of its minimum take -or -pay amount or the actual amount of water taken) divided by the total amount of water to be paid by all CGMA cities. The sum of the four (4) fractional amounts shall always equal 100% of the debt service on the contractual obligation with GTUA. The billing rates for each City will be calculated to provide funds necessary to cover the contractual obligation, interest, repairs, maintenance, and production costs. At the end of the contractual obligation with GTUA, the City will own an undivided interest in the transmission water pipeline based on the percentage of water it utilized and paid for during the contract term. The contract will expire and the transfer of ownership will occur during the fiscal year ended September 30, 2040, as long as no new debt is issued. CDC Series 2012A Sales Tax Revenue Refunding Bonds On August 23, 2012, Series 2012A Sales Tax Revenue Refunding Bonds were obtained by the CDC in the amount of $396,000. $377,983 of the proceeds from the sale of the bonds were used to refund the CDC's outstanding Texas Leverage Fund Loan in order to restructure such indebtedness. The issuance's net present value has the CDC incurring $3,382 of additional costs after paying all issuance and other costs on the Bonds. The refunded loan and interest due thereon, are to be paid from funds deposited with the Escrow Agent. The entire refunded loan principal was redeemed on August 23, 2012. Debt service for the sales tax revenue bonds will be funded from pledged state tax revenue. 30 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) CDC Series 2012B Sales Tax Revenue Bonds On August 23, 2012, Series 2012B Sales Tax Revenue Bonds were obtained by the CDC in the amount of $1,655,000. Proceeds from the sale of the bonds are to be used for City of Anna parks and other open space improvements. Debt service for the sales tax revenue bonds will be funded from the pledge of net revenue to be received from the State of Texas sales taxes received by the CDC. Series 2012, $4, 210, 000 Combination Tax and Revenue Certificates of Obligation Dated December 20, 2012, these proprietary fund certificates of obligation were issued to fund water and sewer system improvements. Proceeds of the debt are recorded in, and expended by the Capital Projects Fund. This twenty- year debt has interest rates of 1.5% to 2.5% that will be paid each February and August 15th. Average yield is 2.24%. Principal is paid every February 15th. The debt is to be repaid with Utility Fund revenues. Final maturity is on February 15, 2033. Series 2014, ` 4,180, 000 Combination Tax and Revenue Certificates of Obligation Dated February 27, 2014, these proprietary fund certificates of obligation were issued to fund water and sewer system improvements. This twenty- year debt has interest rates of 2.0% to 3.65% that will be paid each February and August 15"'. Principal is paid every February 15"'. The debt is to be repaid with Utility Fund revenues. Final maturity is on February 15, 2034, Series 2014A, $2, 598, 000 Combination Tax and Revenue Refunding Bonds Dated October 28, 2014, these Utility Fund certificates of obligation were issued to partially refund $2,598,000 of bonds from the Series 2009 Combination Tax and Revenue Refunding Bonds ("Series 2009"). This ten-year debt has interest rates of 0.3% to 2.395% that will be paid each February and August 15th Principal is paid every February 15"'. The debt is to be repaid with Utility Fund revenue. Final maturity is on February 15, 2016. Series 2014B, $1,462, 000 General Obligation Refunding Bonds Dated October 28, 2014, this governmental -type refunding bonds were issued to partially refund $990,000 of the Series 2006 Combination Tax and Limited Surplus Revenue Certificates of Obligation ("Series 2006 C.O.'s"). This ten-year debt has interest rates of 0.3% to 2.3 95 % that will be paid each February and August 15t11. Principal is paid every February 15th, The debt is to be repaid with governmental revenue. Final maturity is on February 15, 2016. 31 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) NOTE G — PRIOR PERIOD ADJUSTMENTS The City had the following restatements to net position: Government -wide effects Net Position - beginning as previously reported Prior period adjustment - Deferred outflows for TMRS contributions Prior period adjustment - Net pension Iiability per GASB 68 Net Position - beginning as adjusted Proprietary Fund Types Net Position - beginning Prior period adjustment - Deferred outflows for TMRS contributions Prior period adjustment - Net pension liability per GASB 68 Net Position - beginning as adjusted NOTE H — FUND BALANCES AND RESTRICTED NET POSITION Governmental Activities $ 16,002,249 144,779 (694,843) $ 15,452,185 Utility Fund S 19,436,530 51,894 (252,433) $ 19,235,991 Governmental -Type Fund Balances The City authorized the City Administrator to designate certain fund balances as assigned. Excluding unassigned fund balances, the following describes the City's fund balance classifications at September 30, 2015 : Restricted Fund Balances All fund balances in spendable form for the Capital Projects, Debt Service, and Special Revenue funds are restricted for the intended purpose of these funds. Restricted Fund Balances of $523,192 for the General Fund represents assets restricted by law or by agreements with third parties. 32 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) The following describes the various fund balance restrictions for the General Fund: Impact fees for park improvements $ 277,874 Eastside Park improvements 12,645 Fire Department improvements 76,347 State Seizure funds held in trust 17,878 Impact fees for street improvements 66,606 Public Education Government Fees 40,083 Child safety programs 3,917 Municipal court building security 14,962 Court bond funds held in trust 5,677 Municipal court technology 4,411 Sweetwater Crossing funds held in trust 463 Law enforcement officer training fund 2,329 $ 523,192 Committed Fund Balances The City Council has committed $157,476 of General Fund fund balance for 2016 revenue stabilization in the event of budget shortfalls. This contingency amount must be expended in accordance with Section 7.08 of the Anna City Charter. Negative Fund Balances The Capital Projects Fund has a negative $158,974 fund balance and the Debt Service Fund has a $44,165 negative fund balance at September 30, 2015. The City's annual budget is adopted and amended as necessary to ensure any negative fund balances are only temporary in nature. The City expects both fund balances to become positive during fiscal year 2016 with reimbursement made to them by other funds and/or third parties. Proprietary Fund Net Position Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors or laws or regulations of other govermnents. 33 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) At September 30, 2015, the City's proprietary fund net position was restricted for the following purposes: • The Utility Fund has restricted deposits held in trust by GTUA in the amount of $2,029,390 that will be used for water and sewer system capital improvements and repayment of contractual obligations. • The Utility Fund has restricted net position in the form of cash deposits, pooled investments, and due from other fund balances totaling $8,000,466 that will be used for water and sewer system capital improvements and debt service related to such improvements. The balance is comprised of the following Statement of Net Position balances: Restricted pooled investments $ 56,532 Restricted cash for capital improvements 3,317,598 Special purpose operating account 4,626,336 $ 8,000,466 NOTE I — INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS Interfund balances at September 30, 2015 are as follows: Receivable Fund General General General Capital Projects Payable Fund Amount Purpose Utility $ 200,195 For services earned/paid on behalf of other fund. Capital Projects $ 355,884 For services earned/paid on behalf of other fund. Debt Service $ 54,850 For services earned/paid on behalf of other fund. Utility $ 40,328 For services earned/paid on behalf of other fund. The net internal balances between governmental and proprietary type funds presented above is $240,523, Interfund transfers during fiscal year 2015 are as follows: "Transfer In fund 'Transfer Out Fund Amount Purpose Capital Projects General $ 190,277 To transfer cash for capital projects. Utility Debt Service $ 84,153 To support I&S payments. Capital Projects Utility $ 84,153 To support future capital facility needs of the City. Utility Debt Service $ 65,312 To support I&S payments. Capital Projects Utility $ 65,312 To support future capital facility needs of the City. Utility Debt Service $ 19,490 To support I&S payments. Capital Projects Utility $ 19,490 To support future capital facility needs of the City. 34 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) NOTE J — RISK MANAGEMENT The City is exposed to various risks of loss related to litigation, theft, property damage, errors and omissions, injuries, and natural disasters. The City's insurance is by membership in the Texas Municipal League, a public entity risk pool operated by the Texas Municipal League Board for the benefit of governmental units in Texas. Insurance in effect at September 30, 2015 is summarized as follows: Workers compensation, general liability, automobile Iiability, personal property, law enforcement liability, and errors and omissions. There were no settlements in excess of the insurance coverage in any of the three prior fiscal years. NOTE K — PENSION PLAN A. Plan Description The City of Anna participates as one of 860 plans in the nontraditional, joint contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple -employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the System with a six -member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS's defined benefit pension plan is a tax -qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS issues a publicly available comprehensive annual financial report (CAFR) that can be obtained at www.tmrs.com. All eligible employees of the city are required to participate in TMRS. B. Benefits Provided TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the city, within the options available in the state statutes governing TMRS. At retirement, the, benefit is calculated as if the sum of the employee's contributions, with interest, and the city -financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement benefit in one of seven payments options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the member's deposits and interest. 35 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) The plan provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. Plan provisions for the City were as follows: Employee deposit rate Matching ratio (City to employee) Years required for vesting Service retirement eligibility Updated service credits Annuity increase (to retirees) Employees covered by benefit terms 2-1 5 years of service Minimum age 60 with 5 years of service Any age with 20 years of service 0% 0% of CPI At the December 31, 2014 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits Inactive employees entitled to but not yet receiving benefits 15 Active employees 44 Total 62 C. Contributions The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the city matching percentages are either 100%,150%, or 200%, both as adopted by the governing body of the city. Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially detennined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year. The contribution rates for the City were 10.49% and 11.11 % in calendar years 2014 and 2015, respectively. The City's contributions to TMRS for the year ended September 30, 2015, were $322,913, and were equal to the required contributions. D. Net Pension Liability The City's Net Pension Liability (NPL) was measured as of December 31, 2014, and the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. Actuarial assumptions: The Total Pension Liability in the December 31, 2014 actuarial valuation was determined using the following actuarial assumptions: REO DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Inflation 3.0% per year Overall payroll growth 3.0% per year Investment Rate of Return 7.0%, net of pension plan investment expense, including inflation Salary increases were based on a service -related table. Mortality rates for active members, retirees, and beneficiaries were based on the gender -distinct RP2000 Combined Healthy Mortality Table, with male rates multiplied by 109% and female rates multiplied by 103%. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements. For disabled annuitants, the gender -distinct RP2000 Disabled Retiree Mortality Table is used, with slight adjustments. Actuarial assumptions used in the December 31, 2014, valuation were based on the results of actuarial experience studies. The experience study in TMRS was for the period January 1, 2006 through December 31, 2009, first used in the December 31, 2010 valuation. Healthy post - retirement mortality rates and annuity purchase rates were updated based on a Mortality Experience Investigation Study covering 2009 through 2011, and dated December 31, 2013. These assumptions were first used in the December 31, 2013 valuation, along with a change to the Entry Age Normal (EAN) actuarial cost method. Assumptions are reviewed annually. No additional changes were made for the 2014 valuation. The long-term expected rate of return on pension plan investments is 7.0%. The pension plan's policy in regard to the allocation of invested assets is established and may be amended by the TMRS Board of Trustees. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: 37 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Long-term Expected Real Rate Target of return Asset Class Allocation (arithmetic) Domestic Equity 17.50% 4.80% International Equity 17.50% 6.05% Core Fixed Income 30.00% 1.50% Non -Core Fixed Income 10.00% 3.50% Real Return 5.00% 1.75% Real Estate 10.00% 5.25% Absolute Return 5.00% 4.25% Private Equity__ 5.00% 8.50% Total 100.00% Discount Rate The discount rate used to measure the Total Pension Liability was 7.0%. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rates specified in statute. Based on that assumption, the pension plan's Fiduciary Net Position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. Changes in the Net Pension Liability Balance at 12/31/2013 Changes for the year: Service Cost Interest Change of benefit terms Difference between expected and actual experience Changes of assumptions Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other Changes Net Changes Balance at 12/31/2014 38 Increase (Decrease) Total Pension Plan Fidutiary Net Pension Viability Net Position Liability (a) (b) (a)-(b) $ 3,839,212 $ 2,890,936 $ 947,276 429,268 - 429,268 277,884 - 277,884 (173,824) - (173,824) 270,279 (270,279) 170,293 (170,293) 165,488 (165,488) (166,160) (166,160) - (1,727) 1,727 - (142) 142 367,168 438,031 (70,863) $ 4,205,380 $ 3,328,967 $ 876,413 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Sensitivity of the net pension liability to changes in the discount rate The following presents the net pension liability of the City, calculated using the discount rate of 7.0%, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.0%) or 1-percentage-point higher (8.0%) than the current rate: Sensitivity of the Net Pension Liability to Changes in the Discount Rate 1% Decrease 6.00% Current Single Rate assumption 7.00% 1% Increase 8.00% $1,624,806 $876,413 $2785109 Pension Plan Fiduciary Net Position Detailed information about the pension plan's Fiduciary Net Position is available in a separately - issued TMRS financial report. That report may be obtained on the Internet at www.tmrs.coin. E. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended of September 30, 2015 the City recognized pension expense of $319,994. The calculation and amount is provided in the GRS Reporting Package. At September 30, 2015 the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred (Inflows) / Outflows in Future Expense Differences between expected and actual economic experience $ (150,080) Changes in actuarial assumptions $ Difference between projected and actual investment earnings $ 29,502 Contributions subsequent to the measurement date $ 414,574 Total W $ 293,996 DRAFT #2 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) $414,574 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability for the year ending on September 30, 2015. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year 2015 2016 2017 2018 2019 Thereafter Total NOTE L — SUBSEQUENT EVENTS Net deferred outflows (inflows) of resources $ (16,368) (16,368) (16,368) (16,370) (23,744) (31,360) $ (120,578) Subsequent events have been evaluated through the date of issuance, which is the date of the auditor's report, and there are no known items. 40 DRAFT #2 REQUIRED SUPPLEMENTARY INFORMATION DRAFT #2 City of Anna, Texas Budgetary Comparison Schedule Budget and Actual - General Fund For the Year Ended September 30, 2015 Variance with Amended Budget - Original Amended Actual Positive Budget Budget Amounts (Negative) Revenues Taxes: Property $ 2,788,561 $ 2,788,561 $ 2,790,773 $ 2,212 Sales 630,000 700,000 736,481 36,481 Franchise 365,000 440,000 450,799 10,799 Building permits 324,000 324,000 381,318 57,318 Developer and impact fees 135,250 135,250 92,012 (43,238) Intergovernmental 108,925 I08,925 114,200 5,275 Court 113,950 113,950 115,027 1,077 Inspection fees - - 187,925 187,925 Other development fees 55,300 55,300 86,957 31,657 Fire 69,406 69,406 69,926 420 Parks 10,950 20,950 63,265 42,315 Other revenue 39,592 39,592 59,958 20,366 Grants and contributions 132,569 132,569 15,053 (117,516) Investment earnings 12,000 12,000 17,371 5,371 Police 7,607 7,607 25,400 17,793 Total revenues 4,793,110 4,948,110 5,206,365 258,255 Expenditures Current: Police 1,430,264 1,423,900 1,370,091 53,809 Administrative and general 1,012,129 1,034,079 1,042,050 (7,971) Development and animal control 558,188 538,188 559,583 (21,395) Fire 735,107 738,107 688,371 49,736 Parks 229,989 249,999 246,808 3,181 Streets 182,221 182,221 200,188 (17,967) Ambulance 123,683 123,683 124,155 (472) Court 138,519 138,519 132,675 5,844 Capital outlays: 247,412 496,362 469,276 27,086 Total expenditures 4,657,512 4,925,048 4,833,197 91,851 Excess of revenues over (under) expenditures 135,598 23,062 373,168 350,I06 Other financing sources (uses) Proceeds from sold assets 39,000 104,000 65,000 (39,000) Transfers in (out) - - (190,276) (190,276) Total other financing sources(uses) 39,000 104,000 (125,276) (229,276) Net changes in fund balance 174,598 127,062 247,892 120,830 Fund balance - beginning 3,050,716 3,050,716 3,050,716 Fund balances - ending $ 3,225,314 $ 3,177,778 $ 3,298,608 Notes to the budgetary comparison schedule: This schedule ivas prepared on the modified -accrual basis of accounting and thus has no reconciling items ivith General Fund amounts on the Statement of Revenues, Expenditures, and Changes in Fund Balances presented on page 14. 41 DRAFT #2 CITY OF ANNA SCHEDULES OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS Last 10 Years (will ultimately be displayed) Total pension liability Service Cost Interest (on the Total Pension Liability) Changes of benefit terms Difference between expected and actual experience Change of assumptions Benefit payments, including refunds of employee contributions Net Change in Total Pension Liability Total Pension Liability - Beginning Total Pension Liability - Ending (a) PIan Fiduciary Net Position Contributions - Employer Contributions - Employee Net Investment Income Benefit payments, including refunds of employee contributions Administrative Expense Other Net Change in Plan Fiduciary Net Position Plan Fiduciary Net Position - Beginning Plan Fiduciary Net Position - Ending (b) Net Pension Liability - Enging (a) - (b) Plan Fiduciary Net Position as a Percentage of Total Pension Liability Covered Employee Payroll Net Pension Liability as a Percentage 2014 $ 429,268 277,884 (173,824) (166,160) 367,168 3,838,212 $ 4,205,380 $ 270,279 170,293 165,488 (166,160) (1,727) (142) 438,031 2,890,936 $ 3,328,967 $ 876,413 79.16% $ 2,432,756 of Covered Employee Payroll 36.03% Notes to Schedule: GASB 68 requires 10 fiscal years of data to be provided in this schedule. GRS will provide the current year results. The employer will be required to build this sccedule over the next 10 year period. 42 DRAFT #2 CITY OF ANNA SCHEDULE OF T.M.R.S.CONTRIBUTIONS Last 14 Fiscal Years (will ultimately be displayed) 2015 Actuarially Determined Contribution $ 353,170 Contributions in relation to the actuarially determined $ 353,170 Contribution deficiency (excess) $ - Covered employee payroll $ 2,881,090 Contributions as a percentage of covered employee payroll 12.26% NOTES TO SCHEDULE OF CONTRIBUTIONS Valuation Date: Notes Actuarially determined contribution rates are calculated as of December 31 and become effective in January 13 months later. Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll, Closed Remaining Amortization Period 29 years Asset Valuation Method 10 Year smoothed market; 15% soft corridor Inflation 3.0% Salary Increases 3.50% to 12.00% including inflation Investment Rate of Return 7.00% Retirement Age Experience -based table of rates that are specific to the City's plan of benefits. Last updated for the 2010 valuation pursuant to an experience study of the period 2005 - 2009. Mortality RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates multiplied by 109% and female rates multiplied by 103% and projected on a fully generational basis with scale BB. Other Information: Notes Adopted 20 year, any age retirement eligibility. 43 DRAFT #2 COMBINING STATEMENTS - NON -MAJOR GOVERNMENTAL FUNDS DRAFT #2 CITY OF ANNA, TEXAS COMBINING BALANCE SHEET NON -MAJOR GOVERNMENTAL TYPE FUNDS SEPTEMBER 30, 2015 Capital Debt Community Economic Total Other Projects Service Development Development Governmental Fund Fund Corporation Corporation Funds ASSETS Cash and cash equivalents $ 156,584 $ 10,684 $ 493,422 $ 477,565 $ 1,138,255 Accounts receivable - Net Ad valorem taxes - 8,691 - - 8,691 Sales tax - - 64,823 64,823 129,646 Due from other funds 40,326 - - - 40,326 Note Receivable - Local business - - 41,310 100,427 141,737 Total current assets 196,910 19,375 599,555 642,815 1,458,655 LIABILITIES Liabilities: Due to other funds 355,884 54,850 - - 410,734 Total liabilities 355,884 54,850 - - 410,734 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - property taxes - 8,690 - - 8,690 Unavailable revenues - business loans - - 41,310 100,427 141,737 Total deferred inflows of resources - 8,690 41,310 100,427 150,427 FUND BALANCES: Restricted for: Economic development - - - 542,388 542,388 Community development - - 558,245 - 558,245 Unassigned (158,974) (44,165) - - (203,139) Total fund balances (158,974) (44,165) 558,245 542,388 897,494 Total liabilities, deferred inflows, and fund balances $ 196,910 $ 19,375 $ 599,555 $ 642,815 $ 1,458,655 DRAFT #2 CITY OF ANNA, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NON -MAJOR GOVERNMENTAL TYPE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2015 REVENUES Taxes Ad valorem Sales and use Other income Grants and contributions Rentals Interest earned Total revenues EXPENDITURES Operating: General government Promotions Contract services Capital Outlays: Debt Service: Principal retirement Interest expense Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Bond Proceeds Debt Issuance Debt principal paid to refunding escrow bond Other payments to refunding escrow bond Transfers In (Out) - General Fund Transfers In (Out) - Utility Fund Total other financing sources (uses) Net change in fund balances Fund balances beginning, October I Fund balances ending, September 30 Capital Debt Community Economic Total Other Projects Service Development Development Governmental Fund Fund Corporation Corporation Funds $ - $ 526,744 $ - $ - $ 526,744 - - 368,308 368,308 736,616 500 - 35,935 - 36,435 120,896 - - - 120,896 - - - 30,000 30,000 392 964 2,578 2,390 6,314 121,788 527,709 406,821 400,688 1,457,005 2,291 4,664 108,658 11,346 126,959 - - 35,612 37,097 72,709 - - 4,648 139,475 144,123 237,345 - 48,914 - 286,259 - 317,000 80,000 69,776 466,776 - 121,942 58,155 20,234 200,331 239,636 443,606 335,987 277,928 1,297,157 (117,848) 84,102 70,834 122,760 159,848 - 1,462,000 - - 1,462,000 - (38,350) - - (38,350) - (1,334,000) - - (1,334,000) - (77,398) - - (77,398) 190,277 - - - 190,277 84,153 (84,802) - - (649) 274,430 (72,550) - - 201,880 156,592 11,552 70,834 122,760 361,728 (315,556) (55,717) 487,411 419,628 535,766 $ (158,974) $ (44,165) $ 558,245 $ 542,388 $ 897,494 45 DRAFT #2 COMPLIANCE AND INTERNAL CONTROLS SECTION DRAFT #2 Susan LaFollett, CPA —Partner Rod Abbott, CPA —Partner and Abbott PLLC Certified Public Accountants INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT A UDITING STANDARDS To the City Council City of Anna, Texas We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activity, each major fund, and the aggregate remaining fund information of the City of Anna, Texas (the City), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated March 8, 2016. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we identified a certain deficiency in internal control that we consider to be a material weakness, A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. We consider the following deficiency to be a material weakness: Finding 2015-1 — Year-end closing procedures for the Utility Fund did not identify and capitalize $767,937 of new long-term assets and also did not record the new $2,598,000 of Series 2014A Combination Tax and Revenue Refunding Bonds long-term debt. 311 LaFollett and Abbott PLLC PO Box 717 • Tom Bean, TX • 75489 903-546-6975 • www.lafollettcpa.com DRAFT #2 A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. City of Anna, Texas Response to Findings The City's response is as follows: Each year the City of Anna has relied upon the expertise of an accounting consultant to complete year end closing entries and reconciliations. Each year City staff has been diligent to achieve greater responsibility in the year-end processes and diminish the role of the consultant; however, increased development, including capital projects, has led to more complex accounting transactions and entries. In particular, FY 15 included significant capital project activity and debt transactions issued to refund existing debt instruments into more favorable terms. The increased capital project activity and refunded debt are directly related to the material weakness identified. The first issue resulting in not identifying and capitalizing $767,937 in capital projects was an oversight by staff that can be easily corrected in future years. All internal work papers included the assets on the capital outlay and depreciation schedules, but did not include the final adjusting entry to capitalize the expenditures. Staff will conduct an additional check reconciling internal work papers to the general ledger trial balance once all adjusting entries have been entered into the accounting system. Once the weakness was identified, staff completed the work and presented the proposed entry to the auditors which was subsequently accepted. The second issue resulting in not recording the $2,598,000 in new debt issued to refund existing bonds was the result of poor coordination between staff and our accounting consultant and was overlooked in the Utility Fund debt work papers. Staff has discussed the issue with the consultant and once the weakness was identified, the consultant performed the work and presented the proposed entry to the auditors which was subsequently accepted. This weakness can easily be remedied by more effective coordination with the consultant on debt issues. Staff waits until the end of the fiscal year to coordinate any entries related to debt issues when all adjusting entries related to existing debt an entered into the general ledger. Journal transactions for new debt involve several general ledger accounts and can be difficult especially when refunding debt. As a matter of practice and policy, staff will coordinate with the consultant immediately following the issue of all future debt rather than waiting until the end of the fiscal year. 47 DRAFT #2 Finally, the City of Anna finance department added a full time accountant in the middle part of FY 15. Having a full time accountant has reduced reliance upon our accounting consultant for the FY 15 audit and we anticipate this trend to continue in future years. The City's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Tom Bean, Texas March 8, 2016 48 DRAFT #2 CITY OF ANNA, TEXAS AGENDA SUBJECT: Item No. 7 City Secretary's use only City Council Agenda Staff Report Date: staff rnntart• Exhibits: March 8, 2016 Clayton Fulton Yes. Consider/Discuss/Action regarding an Ordinance amending the FY 2015-2016 Budget. SUMMARY: The City Council recently authorized the City Manager to execute a land purchase agreement with Chris and Jacque Cashdollar for a 4.16 acre tract of land immediately adjacent to the City's fire station. The attached ordinance amends the Capital Projects Fund budget authorizing the land purchase. As discussed with Council, unreserved fund balance from the General Fund will provide the cash resources to the Capital Projects Fund for the purchase. Use of unreserved fund balance will not drop the City below its policy of maintaining 25% (90 days) of appropriations in unreserved fund balance. The FY 15 audit shows an increase in unreserved balance; if approved, unreserved fund balance would be at 38.58% (140 days). It is expected that closing on this purchase will occur on March 15, 2016. In order to fund the purchase staff presented using unreserved fund balance with the possibility of issuing a short term note to reimburse the General Fund for the purchase. After the council meeting on February 23rd staff began working up various scenarios with our financial advisors to determine the optimal use of cash reserves given existing debt, projected new debt service, and the effect on fund balance. These scenarios are still being reviewed. Staff recommends the funds be accounted for as a "loan" to the capital projects fund rather than a "transfer" of funds. This strategy will preserve overall fund balance in the General Fund (though still dropping unreserved fund balance). Additionally, accounting for the funds as a loan rather than a transfer denotes a reasonable expectation that the funds will be repaid to the General Fund restoring unreserved fund balance. Based upon the reimbursement resolution approved by the council last year, the General Fund has the option to be reimbursed from future bonds issued for the construction of city hall. Should the council direct staff not to have future bond funds reimburse the General Fund, the loan would then be treated as a true transfer of funds from the General Fund to the Capital Projects Fund. STAFF RECOMMENDATION: Staff recommends approval of the ordinance amending the FY 16 budget. CITY OF ANNA ORDINANCE NO. (FY 15-16 Budget Amendment) AN ORDINANCE AMENDING ORDINANCE NO. 695-2015 ADOPTING TH DGET FOR THE 2015-2016 FISCAL YEAR; PROVIDING FOR SAVINGS, SE ABILITY, AND REPEALING CLAUSES; PROVIDING FOR AN EFFECTIV D AND PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF WHEREAS, on September 8, 2015, the City Council of the Ci Anna as (` Council"), after a duly noticed public hearing as required under s L OGov'tCo e §102.106, and in accordance with applicable provisions of the Anna xas Home -Rule Charter ("Charter"), adopted a budget of ipal pri s and expenditures for the 2015-2016 fiscal year; and AOM WHEREAS, The General Fund's unreserved fund baI11QJPWs' the 1p acity to provide funding to the Capital Projects Fund without the City's pol' to maintain 25% of appropriations in unreserved fund balarthis e ral d WHEREAS, the City is authorized to ma budget endment by majority vote of the City Council under Section 7.09 of theer; THEREFORE, TEXAS THAT: SECTION 1. The recitals con and such recitals a adopted as a pa the ju budget amendm s describe COUNCIL OF THE CITY OF he preamble hereof are hereby found to be true, part of this ordinance for all purposes and are findings of the City Council with respect to the Incil. he City officially finds, determines, and declares that W6al year budget is hereby amended with respect to its 50) as set forth in the original budget adopted under by replacing the information regarding said funds with the funds set forth in the attached Exhibit A, incorporated herein EArION Upon adoption and execution of this ordinance, the City Secretary is fted to atrarch same and its exhibits to the original City of Anna 2015-2016 fiscal ar budget in all places where said budget is filed as of public record or posted for ublic inspection. SWTION 4. If any provision of this ordinance or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this ordinance would have been enacted without such invalid provision. SECTION 5. It is officially found, determined, and declared that the meeting this ordinance is adopted was open to the public and public notice of the t' place, and subject matter of the public business to be considered at such meet' including this ordinance, was given, all as required by Chapter 551, as amen Texas Government Code. PASSED, APPROVED, AND ADOPTED on first and final re co�y March, 2016. Gity Secretary Garde L to d CITY OF ANNA, TEXAS ORDINANCE NO. PAGE 2 OF 2 CITY OF ANNA, TEXAS Item No. 8 City Secretary's use only City Council Agenda Staff Report Meeting Date: .Ctaff rnntart- Exhibits: March 8, 2016 Joseph Johnson Yes AGENDA SUBJECT: Consider/Discuss/Action regarding a Resolution approving an Interlocal Agreement with Collin County for the US 75 Utility Relocation Project. SUMMARY: The Texas Department of Transportation (TxDOT) is planning to reconstruct and widen US 75 from the Outer Loop Road north through the FM 455 interchange. TxDOT is requiring the relocation of certain city owned water lines that will be in conflict with the project. Our consulting engineer is recommending that the water lines subject to relocation be replaced with 12 inch water lines consistent with our water master plan. It is estimated that the total cost of this project will be just over $1.8 million. We anticipate that approximately 60% of the project costs ($1.1 million) will be reimbursed back to the City from TxDOT after the project is complete. Since the City has limited financial resources, and given the regional importance of the US 75 expansion program, Collin County has indicated that they are willing to assist the City with this project. Subject to the terms of the attached Interlocal Agreement, Collin County will provide funds to the City for the design and construction of the utility relocation project. Any reimbursements that the City receives from the TxDOT would be remitted to Collin County. It is anticipated that the TxDOT reimbursements will account for about 60% of the total project cost. If the TxDOT reimbursement is less than 50% of the County's financial contribution, the City agrees to provide an additional reimbursement payment to Collin County so that the County's net contribution (after receipt of all reimbursements) is not greater than 50% of the total financial assistance provided by the County. In addition, the City agrees that the 2007 County Bond Project for Mantua Road (CR 371) will be reduced by an amount equal to the County's financial contribution less the actual TxDOT reimbursement amount, or by an amount equal to one-half the County's financial contribution, whichever is less. STAFF RECOMMENDATION: Staff recommends approval of the attached Resolution and Interlocal Agreement. CITY OF ANNA, TEXAS RESOLUTION NO. (US 75 Utility Relocation Project) A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING AN INTE AGREEMENT WITH COLLIN COUNTY FOR THE US 75 UTILITY REL( PROJECT. WHEREAS, the County of Collin, Texas ("County") and the City of An desire to enter into an agreement concerning the relocation of utilitie the Collin County Outer Loop to FM 455 (the "Project") in Anna, i and WHEREAS, the relocation of utilities is required to facili Transportation's ("TxDOT") widening project of US 75 ir� WHEREAS, the Interlocal Cooperation Act (Texas 1 authorizes any local government to contract with on perform governmental functions and service WHEREAS, the City and County have constructed most economically by implerr NOW THEREFORE, BE IT ANNA, TEXAS, THAT: Section 1. Recitals I The recitals a Section 3. Ap ,TeR ng U FFnt of and e Chapter 791) governments to and the improvements may be lent. UNCIL OF THE CITY OF n as if set forth in full for all purposes. Agreement. City o na, Texas hereby approves the Interlocal Agreement d authorizes, ratifies and approves the City Manager's The City Manager is hereby authorized to execute all documents factions necessary to finalize, act under, and enforce the APPROVED by the City Council of the City of Anna, Texas, on this the i, 2016. Carrie L. Smith, City Secretary CITY OF ANNA, TEXAS RESOLUTION NO. APPROVED: Mike Crist, Mayor PAGE 1 OF 1 INTERLOCAL AGREEMENT BETWEEN COLLIN COUNTY AND THE CITY OF ANNA CONCERNING THE RELOCATION OF UTILITIES ALONG US 75 FROM THE COLLIN COUNTY OUTER LOOP TO FM 455 NEW 2007 BOND PROJECT #07-00-57 WHEREAS, the County of Collin, Texas ("County") and the City of Anna, Texas ("City") desire to into an agreement concerning the relocation of utilities along US 75 from the Collin County Outer FM 455 (the "Project") in Anna, Collin County, Texas; and WHEREAS, the relocation of utilities is required to facilitate the Texas DeparZ7uthorize orta ("TxDOT") widening project of US 75 in the City of Anna, Texas; and WHEREAS, the Interlocal Cooperation Act (Texas Government Code Chapte government to contract with one or more local governments to perform govern nd services under the terms of the Act; and WHEREAS, the City and County have determined that the improve e const mo economically by implementing this agreement. NOW, THEREFORE, this agreement is made and entered into by nd the upon an the mutual consideration stated herein. The City shall arrange to r 75, hereinafter called the "Project". 11,957 linear feet of water lines rur shall be designed to meet or exc accordance with the plans and sp contract to constn City shall comply lines necessa or improvements to US Highway 11 t of re ng and constructing approximately Lrid/619111INSFFS Highway 75. All improvements of Anna design standards and shall be constructed in ed by the City. ICLE II. ons for the improvements, accept bids and award a er the construction contract. In all such activities, the e City estimates that the total cost of the Project will be $1,812,000. The County agrees to fund entir nt, $1,812,000, from County Discretionary funds until such time the 2016 Bond funds are d and ma ailable. The City estimates that it will receive approximately $1,120,000 in eimbursements from the Texas Department of Transportation ("TxDOT") for the Project. The City agrees to remit to the County an amount equal to all reimbursements it receives from TxDOT for Project costs (the "TxDOT Reimbursable Amount") within thirty (30) days of receiving any Project reimbursement. The County shall remit to the City an amount equal to the cost for engineering design, within thirty (30) days Vler the City issues a notice to proceed to the design engineer and the City requests payment. The County shall remit to the City an amount equal to the total construction contract price for the Project within thirty (30) days after the City issues a notice to proceed to the lowest responsible bidder, and the City requests payment. The County shall remit to the City an amount equal to the easement acquisition costs within thirty (30) days after the City acquires the necessary Project easements and the City request payment. The total contribution from the County (the "County Contribution") shall not exceed $2,000,000. The "total cost of the Project" shall include easement acquisition, engineering, construction, inspection, testing, and construction administration costs including contingencies. If the actual TxDOT Reimbursable Amount is less than the one-half of the total County Contribution, the City will provide an additional payment to the County in an amount equal to one-half the County Contribution less the TxDOT Reimbursable Amount._ The City agrees that the 2007 Bond Project #07-009, Mantua Road shall be reduced equal to the County Contribution less the actual TxDOT Reimbursable Amount, or by an one-half the County Contribution, whichever is less. The City shall prepare for the County an itemized statement specifying been incurred to date and submit detailed Project cost and progress repo Project completion. The City and County agree that the party paying services shall make those payments only from current INDEMNIFICATION. TO THE EXTENULLLOWED BY , EACH PARTY AGREES TO RELEASE, DEFEND, INDEMNIFY, A I %E;STOHHER (AND ITS OFFICERS, AGENTS, AND EMPLOYEES) FRO AOR CAUSES OF ACTION FOR INJURIES (INCLUDING DEAT OPER DING LOSS OF USE), AND ANY OTHER LOSSES, DEMANDS, S, JUDG TS AND COSTS, INCLUDING REASONABLE ATTORNEYS' FEES AND EX S, WAY ARISING OUT OF, RELATED TO, OR RESULTING FROM ITS PERFO ER THIS AGREEMENT, OR CAUSED BY ITS NEGLIGENT ACTS O ON THOSE OF ITS RESPECTIVE OFFICERS, AGENTS, EMPLOYEES, OR JJOFIM I I TIES FOR WHOM IT IS LEGALLY RESPONSIBLE) IN CONNECTION WAM PERFO TH REEMENT. ARTICLE IX. of Texas shall govern the interpretation, validity, performance and arties agree that this agreement is performable in Collin County, lie in Collin County, Texas. kBILITY. The provisions of this agreement are severable. If any paragraph, section, =e, clause, or phrase of this agreement is for any reason held by a court of competent contrary to law or contrary to any rule or regulation having the force and effect of the law, lions of the agreement shall be enforced as if the invalid provision had never been ENTIRE AGREEMENT. This agreement embodies the entire agreement between the parties and may only be modified in a writing executed by both parties. W ARTICLE XII. SUCCESSORS AND ASSIGNS. This agreement shall be binding upon the parties hereto, their successors, heirs, personal representatives and assigns. Neither party will assign or transfer an interest in this agreement without the written consent of the other party. ARTICLE XIII. IMMUNITY. It is expressly understood and agreed that, in the execution of this neither party waives, nor shall be deemed hereby to have waived any immunity or defense otherwise be available to it against claims arising in the exercise of governmental pow By entering into this agreement, the parties do not create any obligations, express or those set forth herein, and this agreement shall not create any rights in parties not tot TERM. This agreement shall be effective upon execution effect annually until final acceptance of the Project. This agreemet during this period. By: Name: Title: Date: Name: Philip Sanders Title: City Manager Date: March 8, 2016 Executed on behalf of the City of Anna pursuant to City Council Resolution No. CITY OF ANNA, TEXAS Item No. 9 City Secretary's use only City Council Agenda Staff Report Meeting Date: .Ctaff rnntart- Exhibits: March 8, 2016 Joseph Johnson Attached AGENDA SUBJECT: Consider/Discuss/Action regarding a Resolution authorizing the City Manager to execute an engineering task order with Birkhoff, Hendricks, and Carter, LLP for the US 75 Utility Relocation Project. SUMMARY: The Texas Department of Transportation (TxDOT) will be reconstructing US 75 between Melissa Road and FM 455. TxDOT is currently acquiring right-of-way (ROW) and coordinating with the various utility companies related to utility relocation. The City of Anna has approximately 11,957 linear feet (2.26 miles) of water lines that will have to be relocated due to either a conflict with proposed TxDOT infrastructure or with proposed ROW acquisitions. The engineering services task order with Birkhoff, Hendricks, and Carter, LLP provides for design, bidding, and contract administration services for the project. The engineering consulting fee covering Basics Services (Part 1) for the project is for the lump sum amount of $147,650.00 and the additional services (Part 11) for the project is for the amount of $80,000.00, for a total not to exceed amount of $227,650.00. The total estimated cost for the project including engineering and professional services is $1,812,000. Funds are available for this project through an Inter -local agreement (ILA) with Collin County. STAFF RECOMMENDATION: Staff recommends approval of the attached Resolution which authorizes the City Manager to execute a task order with Birkhoff, Hendricks, and Carter, LLP for the US 75 Utility Relocation Project. CITY OF ANNA, TEXAS RESOLUTION NO. (US 75 Utility Relocation Project) A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING AND AUTHORI CITY MANAGER TO ACT ON THE CITY'S BEHALF IN EXECUTING AN EN SERVICE TASK ORDER WITH BIRKHOFF, HENDRICKS AND CARTER, US 75 UTILITY RELOCATION PROJECT. WHEREAS; The City has negotiated an engineering service Hendricks, and Carter, LLP for the design, bidding, and contract Utility Relocation Project; and, WHEREAS; the water lines must be relocated to avoid i US 75 between Melissa Road and FM 455 by the Texas WHEREAS; the amount of the engineering consulting fq for the project is for the lump sum amount of $147,650.00 for the project is for the amount of $80,000, for NOW THEREFORE, BE ANNA, TEXAS, THAT: Section 1. Recitals Incorporated The recitals above are inco Section 2. Approval an E Ffnsion of on; and, �s Services (Part 1) al services (Part II) nt of $227,650.00. if set forth in full for all purposes. of Engineering Service Task Order. OF The City Councilin y app s tngineering Service Task Order with Birkhoff, Hendricks and CaLLP fort US Utility Relocation Project, attached hereto as Exhibit 1, and autzes, ratifies d approves the City Manager's execution of same, subject to e tioapprova Collin County of the Interlocal Agreement with Collin County f ation Project, attached hereto as Exhibit 2. The City Manag her auth to execute all documents and to take all other actions nece ry to fi ct under, and enforce the service task order agreement. by the City Council of the City of Anna, Texas, on this 8t" day of APPROVED: Carrie L. Smith City Secretary Mayor Mike Crist CITY OF ANNA, TEXAS RESOLUTION NO. PAGE 1OF1 u BIRKHOFF, HENDRICKS & CARTER, L.L.P. PROFESSIONAL ENGINEERS 11910 Greenville Ave., Suite 600 Dallas, Texas 75243 JOHN W. BIRKHOFF, P.E. GARY C. HENDRICKS, P.E. JOE R. CARTER, P.E. MATT HICKEY, P.E. ANDREW MATA, JR., P.E. JOSEPH T. GRAJEWSKI, III, P.E. DEREK B. CHANEY, P.E CRAIG M. KERKHOFF, P.E. Joseph Johnson, CPM Director of Public Works City of Anna 111 North Powell Parkway Anna, Texas 75409 General Engineering Services — Task Order US 75 Utility Relocations (V 02-15-2016) In accordance with your request and pleased to submit this General S plans, specifications, bidding Relocations of Phone (214) 361-7900 www.bhcllp.com services agreement, we are related to the preparation of administration for the: conflict with the widening of US HWY 75 the Collin County Outer Loop north of FM 455. for the required water and wastewater relocations to accommodate the Texas Transportation's U.S. Highway 75 Paving and Drainage Improvements Project. of the U.S. Highway 75 Utlity Relocation Evaluation Report, we have estimated required water and sewer relocations as follows: Relocation of the existing 6-inch water line generally along the east side of US 75 from the Collin County Outer Loop to FM 455 (Relocated with a 12-inch water line). 2. One (1) 12-inch crossing under US 75 TBPE Firm 526 ACEC Wellness Firm =;> Better Decisions -Better Designs TBPLS Firm 100318-00 1:\7015 contdev\anna\2015 us 75 utility relocations\us 75 utility relocations -task authorization format ageement.docx Mr. Joseph Johnson, CPM General Services Task Order: US 75 Utility Relocations February 15, 2016 Page 2 of 9 3. Relocation of a 6-inch water line constructed generally along the west side of US 75 just north of the Collin County Outer Loop to be relplaced with an 8-inch water line 4. Relocation of an existing 12-inch water line generally located along the west just south of F.M. 455. A Project Location Map marked "Exhibit A" is attached hereto and made Based on our understanding of the project requirements, our opinion summarized below: USjH5 Utili ations Opinion of Probable Construe Cost $1,401,332 Quality Control, Material Tes & Inspection Services rs) $70,066 Engineer' nd Ad nal ces $227,650 cqui s $111,960 Project B t $1,811,008 A copy of our itemized 'nion of cost is ached as Appendix A for reference only. aration of Plans, Specifications, Bidding Documents and Construction Tract Administration on the findings in Part A above, preparation of construction plans, specifications, bidding ervices and construction administration phase services for the following: Construction Plan -Profile Sheets prepared at a scale of not less than 1 "= 20'. B. Standard Details. C. Special Details. Texas American Public Works Association 2010 Awardee Environmental Project of the Year $10 - $100 Million 1:\7015 contdev\anna\2015 us 75 utility relocations\us 75 utility relocations -task authorization format ageement.docx Texas Finn F526 Mr. Joseph Johnson, CPM General Services Task Order: US 75 Utility Relocations February 15, 2016 Page 3 of 9 In E. F. G Bidding Phase A. Con Cover Sheet, Location Map and Sheet Index. Submittals to State Regulatory Agencies, as required. Preparation of Texas Department of Transportation permits, as Coordination with other Franchise Utility companies. 2-Design review meetings. Opinion of Probable Construction Estimate. Preparation of Specifications and Contract Documents. Assist in procuring geotechnical engineering in on o requirements dictate. Printing of preliminary plans and specificati o Assist the City staff in adv Contractors" to contractors Notice published in Sell bidding doc is to 1 Provide bidding ejA ect ill include e-mailing "Notice to of construction. City will have 4tial bi cis and their suppliers and other parties. City of Anna, Dodge Reports, and two other parties HWnd provide bidding tally sheets. City and contractors who submitted bids. rmation from the lowest bidder: ical resources to produce the project. Formulate opinion from information received and provide the City a summary of he opinion for their use in selection and award of the construction contract. fter award of contract, furnish ten sets of prints of the final plans, specifications and contract documents to the City for construction use by the City and Contractor. ction Phase A. Attend a pre -construction conference, including preparing an agenda. Texas American Public Works Association 2010 Awardee Environmental Project of the Year $10 - $100 Million 1:\7015 contdev\anna\2015 us 75 utility relocations\us 75 utility relocations -task authorization format ageement.docx Texas Firm F526 Mr. Joseph Johnson, CPM General Services Task Order: US 75 Utility Relocations February 15, 2016 Page 4 of 9 Fe Attend coordination meetings with contractor, quality control personnel, and City representatives to discuss strategy, problem areas, progress, and any coordination. Review shop drawings and other submittal information, which submits. This review is for the benefit of the Owner and& conformance with information given by the Contract I to review and stamp their approval on submittals Engineer. Review by the Engineer does no� responsibilities, safety measures or the workable facility in accordance with the Provide written responses to Prepare and process routine original scope of work. Make periodic sit is Minimum of Review monthly Contractor ittiniz to any and to City or project as they pertain to the the project requirements dictate. from information obtained in the field. r final inspection of the project. of work based on information from the on -site a cord wings. Utilizing on -site representative and Contractor truction record information, consultant will prepare one set of 22"x 34" record drawings on mylar and one set of electronic image files in Adobe Acrobat file format and ACAD.dwg file format. Design, Property and Construction Surveys. Preparation of Plat and Field Note Descriptions for expected water line easements required. Twenty Four (24) easement descriptions are included for the purpose of establishing a budget for this phase of work. Texas American Public Works Association 2010 Awardee Environmental Project of the Year $10 - $100 Million 1:\7015 contdev\anna\2015 us 75 utility relocations\us 75 utility relocations -task authorization format ageement.docx Texas Firm F526 Mr. Joseph Johnson, CPM General Services Task Order: US 75 Utility Relocations February 15, 2016 Page 5 of 9 C. Printing of final plans and specifications for distribution to prospective bidders and the successful contractor. D. Attend Texas Department of Transportation Utility Coordination MeetaOIN Exclusions The intent of this scope of services is to include only the herein and none others. Services specifically excluded I include, but are not necessarily limited to the follCpDand A. Environmental impact statements and assess B. Fees for permits or advertising. C. Certification that work is in accordance with D. Environmental cleanup. E. Landscape architecture. F. Flood plain reclamation>an G. Trench safety desig H. Quality control testiices during construction. I. Services in connec demnation hearings. ons,'Wgrams and responsibility. Iohers not included in proposal. getorders as a result of revisions after completion of original rrect error on plans). report or study. Title searches. ILreparation of Interlocal Agreement with TxDOT for reimbursements Texas American Public Works Association 2010 Awardee Environmental Project of the Year $10 - $100 Million 1:\7015 contdev\anna\2015 us 75 utility relocations\us 75 utility relocations -task authorization format ageement.docx Texas Finn F526 Mr. Joseph Johnson, CPM General Services Task Order: US 75 Utility Relocations February 15, 2016 Page 6 of 9 Part IV: COMPLETION SCHEDULE Notice to Proceed From City ............................... At direction of City Submit Preliminary Plans to City ...................... 8 weeks after Notice to Submit Plats and Field Notes: ............................. 6 weeks after Notic o Complete Final Plans & Bidding Documents .... 2 weeks after C' ni Land Rights Acquisitions :................................... By the City nna Advertise Project for Bids: ................................ At City's Dir Construction Phase: ............................................. 4 er no Part V: FEE NOT TO EXCEED AMOUNT Part I - Basic Services Payment for Part I - Basic Services described Administration, shall be on a Lump Sum Basis i Part II - For thel times envoi Design Phase 50 Bidding Phase $7,400 Construction -Phase $29,500 asic ices Su e $147,650 Construction Contract i Ser itional rvices e ed in Part C we propose to be compensated on a salary cost basis tip ' expenses at actual invoice cost times 1.10. The two man survey crew it a crew rate of $165 per hour. Automobile mileage for special services will be at $0. r mile. suggest you budget approximately $80,000 in the following amounts for Part II Additional kke for this project: Texas American Public Works Association 2010 Awardee Environmental Project of the Year $10 - $100 Million 1:\7015 contdev\anna\2015 us 75 utility relocations\us 75 utility relocations -task authorization format ageement.docx Texas Firm F526 Mr. Joseph Johnson, CPM General Services Task Order: US 75 Utility Relocations February 15, 2016 Page 7 of 9 A. Design and Boundary Surveys $20,500 B. Preparation of Plat and Field $54,000 Note Descriptions (24 each) C. Printing of Plans & $1,500 Specifications D. TxDOT Utility Coordination $4,000 4 Meetings Total Additional Service Not to $g0,00 Exceed Amount Texas Board of Professional Land Surveying Contact Infi Recipients of professional land surveying services regarding such services to the Texas Board of P siona Building A, Suite 156, MC 230, Austin, TX 787fffPhone (5 If this General Engineering Services and return one set to our office aluA with you on this important proj your convenience. ment direct complaints 12100 Park 35 Circle, 63, Fax (512) 239-5253. Order s with your approval, please sign direc roceed. We look forward to working Anna and are available to discuss this task further at Sincerely yours, Gary C. Hendricks, P.E., R.P.L.S. OF ANNA, TEXAS ip Sanders, City Manager Date Joseph Johnson, CPM, Director of Public Works Clark McCoy, Wolfe, Tidwell & McCoy, L.L.P. Texas American Public Works Association 2010 Awardee Environmental Project of the Year $10 - $100 Million 1:\7015 contdev\anna\2015 us 75 utility relocations\us 75 utility relocations -task authorization format ageement.docx Texas Firm F526 Exhibit A - Project Location Map 3 all, _ +iur �0� -: p �• ►� ' wm wa. 555}}}jjjeee • z EXHIBIT A U.B. 75 ;_ f ...- ~�i UTILITY RELOCATION CONCEPTUAL LAYOUT TBPE Firm 526 TBPLS Firm 100318-00 '9WEC Wellness Firm =;:, Better Decisions -Better Designs l:A7015 contdevAanna\2015 us 75 utility relocations\us 75 utility relocations -task authorization format agreement.docx Appendix A - Opinion of Probable Project Cost BIRKHOFF, HENDRICKS & CARTER, L.L.P. Projec contract Dev PROFESSIONAL ENGINEERS Client: City of Anna, Texas 15-Feb-16 Project: U.S. 75 Utility Relocation Pmlect Budget Summary and Responsibility . By: GCH ENGINEER'S OPINION OF CONSTRUCTION C Bent Su. Dcscri tinn Texa' Dept nY'I7xus rnrtation Ree unt.ihility City of Amta Rea 'n City of %nnx tAkich Orerdze Partici tion uantit' I. nib Unit Price l ' Anwunt uanrin ..it Pricc 4'1 aunt uan ' I nits .l'r)l/1' Unii Price Amount 1 Right-0fWay Pre lion In6 Stu S 250A0 S 26.500 AmEpona. 250.00 '13441111ok0 2 Furnish & Install 8" P.V.C. Water Line AW WA C-900, DR-18 9,459 LF, S 45.00 S 425655 AW L F, $ 4500 $ ,571 L_]'_ $ loon $ 95,710 3 Famish & Install 8" P.V.C. Water Line (AW WA C-900. D13-18) by Open Cut with a "G" Concrete Embedment and All Fittings 291 L.F. 5 70,00 $ 20,370 Ki LX_J111111111 W. 5,950 212 L.F. $ 15.00 $ 3.180 4 Fumish & Install 12" P.V.C. Water Line (AW WA C-900, DR-18) by Other Than Open Cut with l V Steel Encasement (U4") 0 L.F. S 350,00 $ mom$ 450.00 313,200 5 Furnish and Install 12" PVC Water Line by O n Cut 817 L.E S 5500 $ 0 L.F. S 55. C, Fumish & Install 16" Split Encas. Pi on Existing12" Water Line 0 L.F. 5 250.00 5 L.F. $ 16,250 7 Connect to Existing Water Service, Including Service Saddle and All Fittin to Connect to ExistingMeter and Meter Box 17 Es_ S 5 $ S.500 Ea, Pr 50.00 $ 8 Furnish & Install S" Resilient Seated Gate Valve (A W WA C509), IncludingValve Stack, Valve Pad and Valve Extension 15 Ea. 5 2,4 $ 36,768 9 a. 5 2,400.00 $ 20,506 24 Ea. $ 1,100.00 $ 26,250 9 Fumish & Install 12" Resilient Seated Gate Valve (AW WA C509), Ircludin Valve Stack. Valve Pad and Valve Extension 3 Ea. 3,50 10,500 i' Ea. h 3.500.00 $ 10 Furnish & Install Standard Fire Hydrant and Fittings 21 000.0 61,920 F. S 3,000.00 $ 3,264 11 Connect to Existing6" Water Line $ 0.00 $ i' Ea. $ 1,500.00 $ 1,500 12 Connect to Existing12" Water Line Ea. Ea. S .00 $ Ao Ea. S 2,500.00 $ 13 Cut, Plug& Abandon 6" Water Line S I,800 2 Ea. S 600.00 $ 1,200 14 Cut, Plug& Abandon 12" Water Line Ea. ,000.00 $ I,000 0 Ea. $ 1,000.00 $ 15 Fumish Erosion Control Plan S. L. L.S. 1,500.00 150 $ 6,000 1 L.S. S 1,500.00 $ 1,500 16 Famish, Install, Maintain and Remove Erosion Control Devicr, 10,567 $ 15,851 629 L.F. $ 2.00 $ 1,258 17 18 Furnish, Install, Maintain and Remove Traffic Control De Famish Trench SafetyPlan'ui 4 5,000.0u 2,00000 S 20,000 $ 8,1100 1 1 L.S. L.S. S 5,000.00 $ 2,000.00 $ 5,000 $ 2,000 19 Furnish, Install, Maintain and Remove Trench Safe m I [7, F,441& 1,50 $ 15,851 629 L F, $ 1-59 $ 944 20 Remove and Reset Existing Mailbox 1 a. $ 400,00 S 6,800 0 Ea. S 400.00 $ 21 Remove and Replace Concrete Sidewalk 64 S 56,00 S 3,578 0 S.Y. S 56.00 $ 25 22 Remove and Replace Gravel Driveway80 5 25.00 $ 2,000 0 S.Y. S 25.00 $ 23 Remove and R lace Concrete Drt"w 458 $ 60.00 $ 27,480 0 S.Y. $ 60.00 $ 24 Remove and Re lace As halt P .Y. $ 45.00 $ 5,715 0 S.Y. $ 45.00 $ S 760,222 0 0 S $ 398,57(y $ 115.141) Contingencies and Mi us Items Construction Total: t0% S 76,022 $ 936,244 10% 0 0 0 $ $ 3 39,858.00 S 438,434 10% $ 11,514 $ 126,654 Easement Ac ui Engineeriniz, Surve 6 Ction 211,340 S.F. $ 0.50 16.2% $ 105,670 $ 135 49.95 12,580 S.F. $ 0.50 16.2% $ 6,290 $ 71,224.77 1 16.2%1 $ 20,575.3-1 QualitydWonhoU Mate 3rd Pa 2.5% S 20,906 2.5% $ 10,961 2.5% $ 3.166 In 2.5% S 20,906 15%1 $ 10,961 2.5% 1 $ 3,166 Project Total: $ 1,119,576 $ 537,870 1 $ 153,562 USE: S 1,120,000 $ 538,0001 $ 154,000 JECT SUBTOTAL: $1,659,001) $154,000 PROJECT GRAND TOTAL: d Percent Participation culudin oversize cast: $1,812,000 67.55% 32.45'V, 100% ClPercent Participation with oversize cast included: 61.81'/, 33.l9°G. TBPE Firm 526 'WEC Wellness Firm =;:, Better Decisions -Better Designs TBPLS Firm 100318-00 l:A7015 contdevAanna\2015 us 75 utility relocations\us 75 utility relocations -task authorization format agreement.doex CITY OF ANNA, TEXAS Item No. 10 City Secretary's use only City Council Agenda Staff Report Date: March 8, 2016 Staff Contact: Maurice Schwanke Exhibits: Yes. AGENDA SUBJECT: Resolution amending the Subdivision Improvement Agreement for Anna Crossing, Phase 1A, and approving a Subdivision Improvement Agreement for Anna Crossing, Phase 1 C. (Maurice Schwanke) SUMMARY: In February of 2015, the City Council approved an Agreement that provided for the future dedication of a 3.5 acre tract of land to be developed as a neighborhood park within the Anna Town Square (Anna Crossing) development. The attached agreements would amend the original arrangement as follows: 1. The developer will donate a 3.14 acre tract to the City to be developed as a public neighborhood park open to all residents of Anna. The developer would receive park land donation fee credits proportional to the size of the donation (as required by City ordinance). An adjacent 0.69 acre tract would be retained by the developer as a private amenity center for the Anna Town Square neighborhood. 2. The developer will construct various park improvements on the public park property at an estimated cost of $375,000. The developer would receive park development fee credits equal to the cost of the park improvements as required by City ordinance. 3. The Anna Town Square HOA will be responsible for all park maintenance (under the supervision of the City) until Certificates of Occupancy for 400 single family homes have been issued within the Anna Town Square development. 4. The developer will construct the section of Leonard Blvd. located adjacent to the park property. The developer would receive Road Capital Improvement Fee rebates equal to the cost of the roadway improvements. Parks come in all sizes and function. The neighborhood park is the smallest unit and ranges from 2 to 10 acres in size. These parks generally have a playground, open play area, picnicking and are adjacent to school facilities in many cases. Other types of park include Playfields (10 to 15 acres) and community parks (40 to 100 acres) which are typically the largest type within urbanized areas. STAFF RECOMMENDATION: This neighborhood park will provide some relief to the Slayter Creek Park pavilion which is reserved for several occasions each weekend during favorable weather conditions (birthday parties, reunions etc.) Staff also believes this facility will help with the overall distribution of recreational facilities in the City. The Parks Advisory Board has reviewed and recommended approval of this new park facility. Staff also recommends approval of the attached Agreements and Resolution. CITY OF ANNA, TEXAS RESOLUTION NO. (SIA Anna Crossing Phase 1A and 1 C) A RESOLUTION OF THE CITY OF ANNA, TEXAS AMENDING THE SUBD IMPROVEMENT AGREEMENT FOR ANNA CROSSING, PHASE 1A, AND APP SUBDIVISION IMPROVEMENT AGREEMENT FOR ANNA CROSSING, PHAS WHEREAS, on March 24, 2015 the City of Anna Texas ("City") entered Improvement Agreement for Anna Crossing, Phase 1A ("SIA"); and WHEREAS, the City now desires to amend the original SIA to add land; and WHEREAS, the City now desires to enter into an Agree 4/SHRP, Ltd., ("Owner"), and the Anna Town Square Ho concerning the construction and maintenance of certain on a parcel of real property located within the City; and WHEREAS, the City Council of the City of An this Agreement will benefit the City and is in 4 NOW THEREFORE, BE ANNA, TEXAS, THAT: Section 1. Recitals I The recitals above are incorpo Section 2. Approval The City Council hE Agreement for Ann Improvemen rel authorize is here uthor finali act un ION bdivision OCFhter No. ., ("HOA") constructed inds that approval of ,ns of Anna; CITY OF s if set forth in full for all purposes. y approve e Fir7PAgreement Amending Subdivision Improvement -ossing Pha 1A, attached hereto as Exhibit 1; and the Subdivision t for Ann rossing Phase 1 C, attached hereto as Exhibit 2; and 4 ov e City Manager's execution of same. The City Manager all documents and to take all other actions necessary to enforce these Agreements. D by the City Council of the City of Anna, Texas, on this the 8tn Smith, City Secretary APPROVED: Mayor, Mike Grist CITY OF ANNA, TEXAS RESOLUTION NO. PAGE 1 OF 1 FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT ANNA CROSSING, PHASE 1A This First Agreement Amending Subdivision Improvement Agreement for Anna sing, Phase 1A (this "First Amendment") is entered into between and among the City of (the "City") and City of Anna, Texas, a home -rule municipality (the "City") and a Crossi AMC, Ltd., Anna Crossing Phase 1A, Ltd., Anna Town Center No.1/BGRT, and Ann Town Center No. 4/SHRP, Ltd., (collectively, "Owner"). The term "Owner" � clu II owners of the Property, and each of the owners of the Property are jointly and rally b to th obligations of the "Owner" under this Agreement. � WHEREAS, Owner and the City are sometimes collectively re in tlys First Amendment as the "Parties"; and WHEREAS, on March 24, 2015 the Parties previously end into a ubdinprovement Agreement for Anna Crossing, Phase 1A ("SIA"); and WHEREAS, the City and Owner now desire to park land; and WHEREAS, the capitalized terms used in unless expressly set forth to the contrary her WHEREAS, it is the Parties' n subject matter specifically set between the Parties and City R4 Regulations directly conflict with NOW, THEREFORE, agree as follows: A th67A to ad s the dedication of First Ame ent are as defined in the SIA and thA194h6c6LjWmendment shall govern only the Iand supersede any previous agreement ly to the extent that any such agreements or City this First Amendment; and e mutual covenants contained herein, the Parties P6rporated herein as if set forth in full to further describe the Amendment and said recitals constitute representations by ENDMENT TO SECTION 5 is hereby amended to wholly delete its current content. CONFLICTS AND EFFECTIVE DATE t of any conflict between this First Amendment and the SIA, this First Amendment The Effective Date of this First Amendment is the date that the last of the FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT ANNA CROSSING, PHASE 1A Page 11 Parties' signatures to this First Amendment is fully and properly affixed to this First Amendment and acknowledged by a public notary. The City's duties and obligations hereunder shall not arise unless and until the City Council has duly adopted this First Amendment and Owner has duly executed same. [SIGNATURES PAGES FOLLOW, REMAINDER OF THIS PAGE BLANK] FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT ANNA CROSSING, PHASE 1A Page 12 Anna Crossing AMC, Ltd. a Texas Limited Partnership Rv• Anna (-.rnccinn AM(-' C'P C nrnnratinn FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT ANNA CROSSING, PHASE 1A Page 13 Anna Crossing Phase 1A, Ltd. a Texas Limited Partnership Rv• Anna (-.rnccinn Phaca 1 A (-,P C nrnnratinn FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT ANNA CROSSING, PHASE 1A Page 14 Anna Town Center No.1/BGRT, Ltd. A Texas Limited Partnership Rv• Anna Tn\A/n (-:Pntar Nn 1 /R(-,RT (-,P (:nrnnratinn FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT ANNA CROSSING, PHASE 1A Page 15 Anna Town Center No. 4/SHRP, Ltd. A Texas Limited Partnership Rv• Anna Tn\A/n (-Pntar Nn A/.OHRP CAP (-r)rnnratinn FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT ANNA CROSSING, PHASE 1A Page 16 CITY OF ANNA Rv FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT ANNA CROSSING, PHASE 1A Page 17 FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT ANNA CROSSING, PHASE 1A Page 18 SUBDIVISION IMPROVEMENT AGREEMENT ANNA CROSSING, PHASE 1C This Subdivision Improvement Agreement (this "Agreement") is entered into the City of Anna, Texas, a home -rule municipality (the "City"), Anna Town Z 4/SHRP, Ltd., (collectively, "Owner"), and Anna Town Square Association, Inc., (the "HOX). The term "Owner" includes all owners f th and each of the owners of the Property are jointly and severally boun the ob of the "Owner" under this Agreement. WHEREAS, Owner, the City, and the HOA are sometimes col Agreement as the "Parties," or, each individually, as "Party"; ai WHEREAS, it is the Parties' mutual intent that this r emenonly the subject matter specifically set forth herein; and WHEREAS, the Agreement concerns the con improvements to be constructed on a pa County, Texas, which is composed of described in the document attached to t located entirely within the corporate limits? WHEREAS, Owner acknowl Agreement are primarily for to FriaintenAre of certain park r t roperty") in Collin L-IMMOMHU more particularly Exhibit A; said tract of land i; and this WHEREAS, Owner understa knowledges that acceptance of this Agreement is not an exactionii% manded by the City but rather is an undertaking of Owner's voluntaru nsistency, quality, and adequate infrastructure that will benefit Oent e Anna Town Square Development; of the mutual covenants contained herein. the RPORATED ,T'TMRWWbove are incorporated herein as if set forth in full to further Parties' intent under this Agreement and said recitals constitute by Owner and the City. EFINITIONS a Town Square Subdivision Improvement Agreement means the Subdivision rovement Agreement, dated March 20, 2014, and including all amendments to said cement; City Code means the Anna City Code of Ordinances. 1 City Manager means the current or acting City Manager of the City of Anna or a person designated to act on behalf of the City Manager with respect to this Agreement if the designation is in writing and signed by the current or acting City Manager. City Regulations mean City Code provisions, ordinances, design standards, codes, and other policies duly adopted by the City. Development means the new development on the Property that is the s Agreement. I Estimated Construction Cost (Park Facilities), Park Facilities means $375,431. Estimated Construction Cost (Roadway Facilities), the Roadway Facilities means $84,929. Final Construction Cost (Park Facilities), with respecf dollar amount actually paid for the construction of t parking lot shown on Exhibit B) at the time acceptance the Park Facilities. City insp n fee Construction Cost. Final Construction Cost (Road means the dollar amount actual the Roadway Facilities at acceptance the Roadway F4K, Final Construction Cost. IV amount equal whichever is IE of ties' means the (excluding the dedication and cluded in the Final , with res t to the Roadway Facilities, rI%ngine,udg, design, and construction of funqIIIIIIIIEWal completion, dedication and inspection fees shall not be included in the respect to the Park Facilities, means a dollar ction Cost or the Final Construction Cost, ,ilities), with respect to the Roadway Facilities, means imated Construction Cost or the Final Construction means fees charged by the City to the Owner or builder for the Tfunding the construction of park facilities as described Part III -A, 5.03 (d), of the Anna City Code of Ordinances. Facilitieswmean the improvements to be constructed by the Owner in accordance h design/construction plans to be approved by the City as described and/or depicted further detail in Exhibit B. E�W Maintenance means the regular and routine maintenance (as described in further detail in Exhibit C) to be provided by the HOA on the Property. 2 Public Improvements mean, collectively, the following categories of improvements that shall be owned by the City: Park Facilities and Roadway Facilities. Road Capital Improvement Fee means the Road Capital Improvement Fee described in Section 6 of the Anna Town Square Subdivision Improvement Agreement. _ Roadway Facilities mear Owner in accordance wii described and/or depicted the portion of Leonard Parkway to be constr� i design/construction plans to be approved by in further detail, in Exhibit D. Documentation of Actual Amount Paid. Once Owner fully co Improvements, and before the City has accepted suc inspection, Owner shall provide the City Manager acceptable to the City Manager evidencing the Fill Maintenance Bond. For each construction Improvements, Owner or Owner's cont Bond in accordance with applicable CiJ any repairs which may become nece ry performed in connection with the Pub In workmanship or materials used rei date of final acceptance of tl by the City as �e Public a Maintenance if the construction work arising from defective of two (2) years from the nstructed under such Approval of Plats/Plans.X the City, the City's engineer or other City employee or repre tlans,designs or specifications submitted by Owner pursua r pursuant to City Regulations shall not m)1o a r se of the responsibility and liability of Owner, gers or agents for the accuracy and competency of �cFurther, any such approvals shall not be deemed to sonsibility and liability by the City for any defect in the red by Owner's engineer, his officers, agents, !e the intent of the parties that approval by the City's e City's approval on only the general design concept of the constructed. wn urance. Owner or its contractor(s) shall acquire and maintain, during the eriod 01 e when any of the Public Improvements are under construction (and until the full and final completion of the Public Improvements and acceptance thereof by the City: (a) workers compensation insurance in the amount required by law; and (b) commercial general liability insurance including personal injury liability, premises operations liability, and contractual liability, covering, but not limited to, the liability assumed under any indemnification provisions of this Agreement, with limits of liability for bodily injury, death and property damage of not less than $1,000,000.00. Such insurance shall also cover any and all claims which might W arise out of the Public Improvements construction contracts, whether by Owner, a contractor, subcontractor, materialman, or otherwise. Coverage must be on an "per occurrence" basis. All such insurance shall: (i) be issued by a carrier which is rated "A-1" or better by A.M. Best's Key Rating Guide and licensed to do business in the State of Texas; and (ii) name the City as an additional insured and contain of subrogation endorsement in favor of the City. Upon the execution of P Improvements construction contracts, Owner shall provide to the City c i insurance evidencing such insurance coverage together with t/derapolicies, along with the endorsement naming the City as an adinsur such policy shall provide that, at least 30 days prior to the can, n nor modification of the same, the City shall receive written no 'h cancellation, non -renewal or modification. HOA Insurance. HOA or its contractor(s) shall acqui period of time when it is obligated to for the Park Agreement (and until the termination of said oblig this Agreement: (a) workers compensation insuran and (b) commercial general liability ins ura " lud premises operations liability, and contr liability assumed under any indemnifi n provisi of liability for bodily injury, death and perty dama $1,000,000.00. Such insurance shall o cover an, arise out of the Park Mainten nt , wheth subcontractor, mate rialma oth ise. cates of f such kiach of required by law; ury liability, not limited to, the 79TYI�greement, with limits not less than y HOA, a contractor, ust be on an "per occurrence" basis. All s insura shall: (ire issued by a carrier which is rated "A-1" or better by A.M. Ke ting Guide and licensed to do business in the State of Texas; and (ii) na ity as an additional insured and contain a waiver of subrogation t i or of the City. Prior to performing any Park Maintenance ities, sh vide to the City certificates of insurance evidencing s insurance era together with the declaration of such policies, along with th ndorsement ming the City as an additional insured. Each such policy all p e that, at st 30 days prior to the cancellation, non -renewal or mo o'goolftf me City shall receive written notice of such cancellation, r1JVreneMor m n. der n and Hold Harmless. OWNER COVENANTS AND AGREES IROVMW AGAINST ANY AND ALL CLAIMS OR SUITS FOR PROPERTY AMAG R LOSS AND/OR PERSONAL INJURY, INCLUDING, WITHOUT LIMITATION, DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER KIND OR CHARACTER, WHETHER REAL OR ASSERTED (INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEYS FEES AND RELATED EXPENSES, CONSULTANT FEES AND RELATED EXPENSES) ARISING OUT OF OR IN CONNECTION WITH, DIRECTLY OR INDIRECTLY, THE NEGLIGENT OR OTHERWISE WRONGFUL ACTS OR OMISSIONS OF OWNER, ITS AGENTS. Cl SERVANTS, CONTRACTORS, SUBCONTRACTORS, MATERIAL MEN OR EMPLOYEES IN CONNECTION WITH THE DESIGN, CONSTRUCTION OR INSTALLATION OF THE PUBLIC IMPROVEMENTS, INCLUDING BUT NOT LIMITED TO INJURY OR DAMAGE TO CITY PROPERTY. SUCH INDEMNITY SHALL SURVIVE THE TERM OF THIS AGREEMENT. AT NO TIME SHAL CITY HAVE ANY CONTROL OVER OR CHARGE OF THE OWNER'S D N, CONSTRUCTION OR INSTALLATION OF ANY OF THE PUBLIC 41 IMPROVEMENTS PROJECTS THAT ARE THE SUBJECT OF THI AG MENT, NOR THE MEANS, METHODS, TECHNIQUES, SEQUENCES O OC ES UTILIZED FOR SAID DESIGN, CONSTRUCTION OR INSTAL ON. THIS AGREEMENT DOES NOT CREATE A JOINT ENTERPRIS WHE C AND OWNER. OWNER FURTHER COVENANTS AND AG TADEMNIF OR SUITS BY ANY PERSON CLAIMING AN INT THgMOP WHO HAS NOT SIGNED THIS AGREEMENT ANMVHICH C-LAIMMAKRISE REPRESENTATIONS IN THIS AGREEMENT; 2 IN AW MANNER OR ARISE IN CONNECTION WITH THIS AG NT OR IN COJWCTION WITH DEVELOPMENT OF THE PROPERTY• E AY FROM THE CITY'S APPROVAL OF ANY TYPE EVELO N LICATION OR SUBMISSION WITH RESPECT TO PROPER NOTWITHSTANDING THIS PROVISION OR ANY OTHER PROV N OF THI GREEMENT, OWNER SHALL NOT BE OBLIGATE FY, DE D, OR HOLD THE CITY HARMLESS FOR THE CI O E OR GROSS NEGLIGENCE. (g) HOA Indemnification an d H ess. HOA COVENANTS AND AGREES TO INDEMNIFY AND DOES INDEMNIFY HOLD HARMLESS AND DEFEND THE F S AGENTS SERVANTS AND EMPLOYEES FROM AND INST L CLAIMS OR SUITS FOR PROPERTY DAMAGE O OSS AND PE ONAL INJURY. INCLUDING. WITHOUT OR CHARACMR. WHET REAL OR ASSERTED INCLUDING WITHOUT LI ON ATTORNEYS FEES AND RELATED EXPENSES RT THE AND RELATED EXPENSES AND OTHER NSU T FEES AND RELATED EXPENSES ARISING OUT OF OR IN DIRECTLY OR INDIRECTLY THE NEGLIGENT OR O ISE WRONGFUL ACTS OR OMISSIONS OF HOA ITS AGENTS BE TS. CoNTRACTORS. SUBCONTRACTORS. MATERIAL MEN OR SUNDER -MIS AGREEMENT, INCLUDING BUT NOT LIMITED TO INJURY OR DAMAGE TO CITY PROPERTY. SUCH INDEMNITY SHALL SURVIVE THE TERM OF THIS AGREEMENT. AT NO TIME SHALL THE CITY HAVE ANY CONTROL OVER OR CHARGE OF THE HOA's PARK MAINTENANCE bBLIGATIONS THAT ARE THE SUBJECT OF THIS AGREEMENT, NOR THE MEANS, METHODS, TECHNIQUES, SEQUENCES OR PROCEDURES UTILIZED FOR SAID MAINTENANCE OBLIGATIONS. THIS AGREEMENT DOES NOT CREATE A JOINT ENTERPRISE BETWEEN THE CITY AND HOA. HOA 67 FURTHER COVENANTS AND AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND THE CITY AGAINST ANY AND ALL CLAIMS OR SUITS, BY ANY PERSON WHO HAS NOT SIGNED THIS AGREEMENT AND WHICH CLAIMS ARISE IN ANY WAY FROM THE CITY'S RELIANCE UPON HOA'S REPRESENTATIONS IN THIS AGREEMENT. NOTWITHSTANDING THIS PROVISION OR ANY OTHER PROVISION OF THIS AGREEMENT, HO NOT BE OBLIGATED TO INDEMNIFY, DEFEND, OR HOLD THE CITY HARMLESS FOR THE CITY'S OWN NEGLIGENCE OR GROSS NEGL PARKLAND Owner Obligations. Consistent with the Owner's obligations under all actions necessary to prepare, file and re within six (6) months of the Effective Date ofl responsible for the construction of any infrasti City Regulations to serve the Property Owner shall donate the Property use, the form and content of whi to the City of Anna currently development of park and at deliver a copy of said written acceptance e City Section 5 of this Ag ent. (b) City Obligations. dedication re Regulations" within the A ("Anna Town take Older shall be ents required by YCidOTONFIdedication for public his Agreement as Exhibit E, City to be used for the ner shall duly execute and ty within 30 days of formal acilities to be constructed under that such dedication shall satisfy the park land e Anna City Code, Part III -A ("Subdivision a) for the first 156 dwelling units developed evelopment more particularly described in Exhibit F ent"). er is responsible for funding all costs (the "Park Facilities Costs") for, and 1p construction of, the Park Facilities. Owner agrees to complete in a good and workmanlike manner construction of the Park Facilities. If Owner fails to fully complete construction of the Park Facilities in said manner within 6 months of the Effective Date of this Agreement, then the City's obligations under Section 5 and Section 6 of this Agreement shall terminate. (b) City Obligations. City agrees that it shall not be entitled to collect, and shall forgo collection of, the Park Development Fees that would normally be charged to Owner 10 or its successors and assigns in connection with the issuance of building permits for dwelling units to be constructed on property located within the Anna Town Square Development, provided that the amount of Park Development Fees which will not be collected pursuant to this Section 5(b) shall not exceed the Final Credit Amount for the Park Facilities. Notwithstanding any other provision of this Agreement, City's obligations under this Section 5(b) shall expire on December 31 in ear that is ten (10) years following the Effective Date even if the total amou Park Development Fees waived by the City under this Section 5(b) is les�tha Final Credit Amount for the Park Facilities. ROADWAY FACILITIES Owner is responsible for funding all costs (the ' and for the construction of, the Roadway Facil' Owner agrees to complete in a good and the Roadway Facilities within six (6) to fully complete construction of th oac six (6) months of the Effective Da of thi obligations under Section 6 of thi ree City Obligations. After t Road Capital Improvem Subdivision Improveme Fees to Owner on a call Owner under this Facilities. ) for, ann onstruction of =Lte. If Owner fails t id manner within nt, then the City's terminate. %finl4ki I of i ,bligations regarding remitting s escrIMININWe Anna Town Square 0!Cty will remit Road Capital Improvement ybiasis until the total amount remitted to ual to the Final Credit Amount for Roadway >. HOAAFall be responsible for funding all costs (the "Park %gWive%te the performance of all Park Maintenance on the until the City issues certificates of occupancy for omes constructed within the Anna Town Square Development. e option of the City, at any time, and for any reason or no reason, the City iinate the HOA's Obligations under Section 7 of this Agreement by 60tice as prescribed in Section 11 of this Agreement. EFFECTIVE DATE The Effective Date of this Agreement is the date that the last of the Parties' kignatures to this Agreement is fully and properly affixed to this Agreement and acknowledged by a notary public. The City's duties and obligations hereunder shall not arise unless and until the City Council has duly adopted this Agreement and Owner and HOA have duly executed this Agreement and delivered same to the City. rA This Agreement and all obligations of the Parties hereto, shall terminate upon full performance of the terms of this Agreement or as otherwise set forth in this Agreement. _ SECTION 10 SUCCESSORS AND ASSIGNS (a) All obligations and covenants of Owner and HOA under this ree shall I constitute covenants running with the land, and shall in ner an ch successive owner of all of any portion of the Property; provid owev the t of this Agreement shall (i) not be binding on the owner y re nce that purchased by such owner from a homebuilder, and (ii) be su to the of (and shall not be binding on) any mortgagee who fin r re ces r nces constructed on the Property. (b) Without limiting the generality of the foregoing an of ise provided in this paragraph, Owner has the right (from time to upon d ery of 14 days' prior written note to the City) to assig emen in e or in part, and including any obligation, right, title, o erest o n this Agreement, to any person or entity (an "Assignee") at is or will ome an owner of any portion of the Property or that is an entity tha controlled b r under common control with Owner. Further, no assignme O shall rele Owner from any liability that resulted from an act or omi a rred prior to the effective date of the assignment unles City rove ease in writing. Notwithstanding the foregoing, Owner not a n this Agreement, in whole or in part, to an Assignee if the City, a by the City Council (which action shall be considered by th . go ith based upon financial and performance criteria, and which ac ' s a b reasonably withheld, conditioned or delayed), notifies Own within 14 s eceipt of the written notice required by this Section 10 that such ssignee fails to satisfy the City's financial and performance eria. If th ity provides such notice to Owner then the Parties, with' ay such n e, shall mediate the dispute. The mediator shall be Ily eed- the cost of such mediator shall be paid equally by the rties. e mediator's determination shall be binding on the Parties. If a Party use en the decision of the Party willing to mediate shall be binding. a signment shall be in writing executed by Owner and the Assignee and shall bliga e Assignee to be bound by this Agreement to the extent this Agreement pplies elates to the obligations, rights, title, or interests being assigned. From and after such assignment, the City agrees to look solely to the Assignee for the performance of all obligations assigned to the Assignee and agrees that Owner shall be released from subsequently performing the assigned obligations and from any liability that results from the Assignee's failure to perform the assigned obligations; provided, however, Owner shall not be released until the City receives an executed copy of such assignment. Further, no assignment by Owner shall release Owner from any liability that resulted from an act or omission by Owner that E:3 occurred prior to the effective date of the assignment unless the City approves the release in writing. Owner shall maintain written records of all assignments made by Owner to Assignees, including a copy of each executed assignment and the Assignee's Notice information as required by this Agreement, and, upon written request from any Party or Assignee, shall provide a copy of such recor o" requesting person or entity. SECTION 11 MISCELLANEOUS PROVISIONS Authority to execute contract. The undersigned officers and/or hereto are the properly authorized officials and have the execute this Agreement on behalf of the parties hereto, certifies to the other that any necessary resolutions or o1he authority have been duly passed and are now in full fa — E Notice. All notices, demands or other comm hereunder shall be in writing and shall be deeme to occur of actual receipt or three (3) days of the or deposited in the United States ma. return receipt requested, addressed t e partie or at such other addresses as such rties may d other parties in accordance with this .ce provisio If to the City: Fanagu� 6 well Parkway 75409 doDgiv ed'` provided en on the earlier e by hand delivery e ostage prepaid, is set forth below nate by written notice to the TW Center No. 4/SHRP, Ltd. Richard M. Skorburg8214 Westchester Dr atlas, TX 75225 Knna Town Square Homeowners Association Attn: John Arnold 8214 Westchester Dr. Suite 710 Dallas, TX 75225 tomplMLAgreement. This Agreement and the exhibits attached hereto embody the Entire A ment between the Parties and cannot be varied or terminated except as set forth in this Agreement and the exhibits attached hereto, or by written agreement of the City, the Owner, and the HOA expressly amending the terms of this Agreement. Applicable Law and Venue. This Agreement shall be performable and all compensation payable in Collin County, Texas. Venue and exclusive jurisdiction We (e) under this Agreement lies in a court of competent jurisdiction in Collin County, Texas. Severability. If any clause, paragraph, section or portion of this Agreement shall be found to be illegal, unlawful, unconstitutional or void for any reason, the ba the Agreement shall remain in full force and effect and the unlawful pro sha be replaced with a provision as similar in terms and effect to such unla provision as may be valid, legal and enforceable. Representation. Each signatory representing this Agreement party for which this Agreement is executed and that A opportunity to confer with its counsel. or duress and acknowledged. This Agreement is executed by the for substantial consideration, theA Waiver. Waiver by either Party or any bre either Party to enforce any of the provisi in any way affect, limit or waive such y' strict compliance of the Agreement. Parties hereto. The langu whole according to its f- language herein is to b this Agreement are for �th used in construinq}ki&d-oc No Other Be City, Owner benefits on a percion hereby aorthe failure of ny time, shall not enforce and compel SL AgreemJV was drafted equally by the irll%Lhia.ement shall be construed as a an esumption or principle that the lainst any Party shall not apply. Headings in ce of the Parties and are not intended to be lr11Went is for the sole and exclusive benefit of the not intended to and shall not confer any rights or signatory hereof. rot �ent shall bind and inure to the benefit of the City and any s ssor owner/developer of the Property, may be recorded in operty records, and runs with the land. City agrees to execute rdable form evidencing completion of one or more Public nts once completed in accordance with this Agreement. This Agreement may be executed in a number c each of which shall be deemed an original for all purposes. identical [SIGNATURES PAGES FOLLOW, REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 10 Anna Town Center No. 4/SHRP, Ltd. a Texas Limited Partnership 11 CITY OF ANNA, TEXAS -39 12 Anna Town Square Homeowners Association Richard M. Skorburq, President 13 EXHIBIT "A" PROPERTY LEGAL DESCRIPTION SITUATED in the State of Texas, County of Collin, and City of Anna, being part of the Grandison Stark Survey, Abstract No. 798, being part of a called 129.92 acre tract (Tract 1) as recorded in Volume 5631, Page 2600 the Collin County Land Records and part of the prescriptive right-of-way for County Road 422 (To be abandone with said premises being more particularly described as follows: COMMENCING at a Glas capped iron rod set in the curving south right-of-way line of Sha tree ' Right -of - marking the northeast corner of a 0.009 acre tract of land as recorded under Document 0141114 8710 e Collin County Land Records, being in the north line of a called 37.005 acre tract as re d in V e 60 586 of the Collin County Land Records, being in the south line of the lot (hereina ferred s the "Ri -of-Way Dedication Lot") as shown on the Final Plat of Anna Crossing Phase IA & 1B Rig Dedicat' (unrecorded addition), and being the beginning of a non -tangent curve to the left; THENCE with the south right-of-way line of Sharp Street and the so line o t-o ay Dedication Lot as follows: Northeasterly along said curve through a central an ce of 294.06 feet and having a radius of 530.00 feet (chord =North 64°42'55" East, 290 f:::) ca ed iron rod found marking the end of said curve; North 48049'13" East, 74.75 feet to a Glas ca ped rthe POINT OF BEGINNING for the herein described premises; THENCE with the south right-of-way 1' f Sharp et, the north line of said premises, the south line of said Right - of -Way Dedication Lot, and partway with south line of a 0.351 acre tract as recorded under Document No. 20141007001096130 of the Collin�tti Lan ords as follows: North 48°49'13" Eas 6.41 feet to a s capW iron rod found marking the southwest comer of said 0.351 acre tract and being the begi ng of a curve to right; Northeasterly along curve throug entral angle of 47°39'58" for an arc distance of 391.01 feet and having a radius of 470.00 rd h 72°39' East, 379.83 feet) to a Glas capped iron rod found at the end of said curve; SoIK3°3 Sou3wo irve to i 128.60 feet to a Glas capped iron rod found; et to a Glas capped iron rod found in the west right-of-way line of Leonard Drive king the most easterly northeast corner of said premises, the southeast corner of said :)r corner of said Right -of -Way Dedication Lot, being in a west line of a 5.048 acre tract as 6No. 20140724000770380 of the Collin County Land Records, and being the beginning of a e left; ;he east line of said premises, a west line of said 5.048 acre tract, partway with the west right-of-way line and partway with a west line of said Right -of -Way Dedication Lot as follows: Southwesterly along said curve through a central angle of 3°24'58" for an arc distance of 98.97 feet and having a radius of 1,660.00 feet (chord = South 03°23'51" West, 98.96 feet) to a Glas capped iron rod found marking the end of said curve; north line of est corner of South 01 °41'22" West, passing a Glas capped iron rod found at 176.93 feet marking the most easterly southwest corner of a 5.048 acre tract, from which a Glas capped iron rod found at the southwest corner of said 129.92 acre tract bears North 88°19'57" West, 3,091.89 feet, and continuing for a total distance of 195.39 feet to a Glas capped iron rod set in the approximate center of County Road 422 marking the southeast corner of said premises and being in the north line of the aforementioned 37.005 acre tract, from which a %2-inch iron rod found at the northeast corner of said 37.005 acre tract bears South 88°25'49" East, 61.16 feet; A910011b, THENCE with the approximate center of County Road 422, the south line of said premises, 37.005 acre tract, North 88°25'49" West, 448.62 feet to a Glas capped iron rod set marking the THENCE with the west line of said premises, North 01°40'03" East, 120.39 feet to 41 ° 10'47" West, 83.73 feet to the point of beginning and containing 3.148 acres of lay orth EXHIBIT "A" (CONTINUED) DEPICTION OF THE "PROPERTY" The Property is labeled as "Lot 2, Block 1" in the boundary exhibit below. EXHIBIT B PAGE - 1 Park Facilities Estimated Description Unit Quantity Est. Unit Price Cost Notes Anna Town Square Neighborhood Park See Exhibit B Page 2-Site Plan Gradework 5,000 CY $3.00 $15,000.00 Includes drain pipe from Playground 8' Concrete Trail 1,350 LF $32.00 $43,200.00 4 inch, 3000 PSI Pavilion with Men and Women Restrooms 1 LS $125,000.00 $125,000.00 See Exhibit B Page 3-9 Based on attached Miracle quote. Playground with Shade 1 LS $85,000.00 $85,000.00 See Exhibit B Page 10-13 phone quote from JNL Roofing Playground Fence 380 LF $35.00 $ 13,300.00 Contractors Other than hard surfaces sod shall be installed over the entire Property. Trees (species to be approved by the City) shall be a minimum of 3" Landscaping (Sod and 70 Trees) 100% LS $45,000.00 $45,000.00 caliper,and 7' ht.) Other than hard surfaces irrigation shall be installed to cover all turf and landscaped areas. Plans to be Irrigation 100% LS $30,000.00 $30,000.00 approved by the City SS 440 Surface Mount Pedestal ADA Drinking Fountain with pet fountain Water Fountain 1 1 $3,625.00 $3,625.00 and jug filler - Green Product specifications to be approved Trash receptacles 1 4 $500.00 $2,000.00 by the City Picnic Tables by Miracle, Model Product specifications to be approved #11229 Hunter Green 1 5 $ 1,184.00 $5,920.00 by the City Product specifications to be approved Grills by Miracle, Model G6-6-3 1 2 $ 170.00 $340.00 by the City Park Benches by Miracle, Model Product specifications to be approved #127219, Hunter Green 1 2 $ 523.00 $1,046.00 by the City Design and installation to be approved Sign 1 1 $ 6,000.00 $6,000.00 by the City. Concrete parking lot (including TBD TBD driveways) consisting of a minimum See conceptual layout on Exhibit B of 28 parking spaces Page 2. Design and installation to be approved by the City. Owner is soley responsible for the construction cost of the parking lot, and the cost of the parking lot shall not be included in the Final Construction Cost or the Final Credit Amount for Park Facilities PARK TOTAL $375,431.00 Construction plans and product specifications for all Park Facilities shall be approved by the City prior to purchase and installation Construction and/or installation of all Park Facilitis shall comply with all applicable City Regulations Water and wastewater services to water fountain, pavilion and restrooms to be provided by Owner Storm sewer access for playground shall be provided by Owner. City Shall approve final staking and alignment of the Hike and Bike trail prior to construction Hike and Bike trail shall comply with City design and construction standards. Subgrade and base shall be compacted to 95% City shall approve location and placement of playground fence, picnic tables, grills, and park benches prior to installation. 4w LL z Q C Ua-o ado 001 DD LL W � o Q C) 00 J§ l� GAIS abbNODI O 0- a ' r a 00 r N � 1 'at � i7m_ nTI1Ti 1 Lu LL LL m LLI 0- Q i c_ m v 6 r W Q V z o M � Q yM a N N J �s �A a =° N ❑ Z Q J d Y LLI cc d d Q U U) E E 0 Z O Q U J ' J Q co 6 U y a co LU 0O U Z cc cc O U QQ O CV 110 l0 Y 10 U-) O 10 T 16 .■ Im „i � PAVILION DESIGN CRITERIA The pavilion shall be a minimum width of 40' and a minimum length of 70'. Within these dimension a restroom facility for both men and women shall be provided that are ADA accessible. All Necessary Water, Sewer, and storm drainage improvements shall be provided. Design Criteria: General: 2009 International Building Code Occupancy Category: II Dead Load: Roof Dead Load: 6 PSF Frame Dead Load: Self Weight Snow Design Data: Ground Snow Load (Pg): 5 PSF Flat Roof Snow Load Pf): 5 PSF Snow Exposure Factor (Ce): 1.0 Snow Load Importance Factor (Is): 1.0 Thermal Factor (Ct): 1.2 Wind Design Data: Basic Wind Speed (V): 90 MPH Gust Effect Factor (G): 0.85 Wind Importance Factor (Iw): 1.0 Internal Pressure Coefficient (GCpi): 1.0 Wind Exposure: C Structural Steel shall be detailed, fabricated, and erected in accordance with the latest edition of the American Institute of Steel Construction (AISC) specification manual. All welding is performed by American Welding Society Certified Welders and conforms to the latest edition of AWS D1.1 or D1.3 as required. For proper field installation of the building it is recommended that the primary frame installer and the roof installer have a minimum five (5) years documented experience installing this type of product. Page - 9 For proper field installation of the building it is recommended that electric wiring, if required, be run through the structural members before the building is erected. Foundation Design and anchoring schematics must be signed and sealed by a Registered Structural Engineer. vveWa0dftm, inc. Miracle. ! In Texas Customer Information: City of Anna, TX Parks Department Attn: Maurice Schwanke Re: Anna Crossing Playground PO BOX 29 Allen, TX 75013 Phone: 972-727-0653 Fax: 972-396-4994 Date: 2/29/2016 Est. Delivery: Consultant: 3-6 weeks Tom Sawyers ITEM QTY DESCRIPTION EACH TOTAL Anna Crossing Playground DEMO 1 All necessary excavation and site preparation to be provided by "other" CONC 172 Install 18"X8" Concrete border. Depth of recess will be $35.00 $6,020.00 deterimined and defined by The City CONC 1 Concrete access ramp into play area. Access up to the play area $1,250.00 to be provided by"other" 42429497503 I 1 Miracle playground equipment per design 61_42429497503 $38,832.00 dated 2/29/2016 BBDISC -0.15 BuyBoard discount on Miracle equipment -$5,824.80 WBFDISC -0.1 Additional webuildfun, inc. discount on Miracle equipment -$3,883.20 SHIP 1 Freight $1,844.28 INSTALL 1 Installation $9,708.00 DRAIN 1849 Install geotextile fabric over subgrade, 4" perforated ADS $2.00 $3,698.00 w/ sock as needed, connect to existing drainage system (provided by "other"), and install 4" depth of drainage gravel. If no existing drainage is provided, it will be the responsibility of the owner to pay for necessary changes. EWF 1849 Install 12" compacted depth of engineered wood fiber safety $2.00 $3,698.00 surfacing on top of geotextile fabric 40X40X14/18 1 40' X 40' 4-post hypar sail shade w/ 14'/18' entry heights $16,093.75 $16,093.75 90 mph windload, 5#/sq ft snowload, and Shadedure Cloth See pic below for general idea of shade BBDISC -0.05 BuyBoard discount on Shade -$804.69 ENG 1 Engineer -sealed drawings $850.00 SHIP 1 Freight $500.00 PERMIT 1 Permit to be provided by The City INSTALL 1 Installation (if rock is encountered, additional charges may be assessed) $12,875,00 Total*** $84, 856.34 ***Price assumes all site work, border, d drainage away from play area will be provided by "other" unless noted above. Colors and equipment to be ordered exactly as shown unless otherwise noted --please refer to color chart for options: Thank you for the opportunity to provide this quote! If tax exempt, please provide tax exemption certificate In addition to manufacturer's warranty on materials, labor is warranted by webuildfun, inc. for 12 months from job completion if webuildfun, inc. provides the original installation Tom Sawyers Prepared By: Approved by: In the event rock is encountered, charges may be assessed. It is the responsibility of the owner to obtain permits (unless specified above). It is the responsibility of the owner to locate all underground utility lines. Webuildfun will assist with this by requesting a line locate from Dig Tess, at the owner's request. Webuildfun, inc. will make every reasonable effort to respect all marked utility lines, and will repair damage webuildfun, inc. causes to marked utilities. Webuidfun, inc. will not be responsible for damage to unmarked utilities. Prices are guaranteed for 30 days from date listed on quote. N O M M 0 p 0 _0 0000 W W W W Of0:ww - O M V .Lj!E 0 U U w U) cow.. www >>>>>Z H F H H a �aaaao } } } U J aaaaww O w w w o 0 W > > > O O iD J J J w Ir Q w w w O U' �. n 2 Q H� z—Zzoo W >�pwo� wLUv�Z3 IW�2UoLU6 LU WF7< WCOE ZOLU 00 �ZHlzOZ WWUW m 2 ZUW5 0,-5 22_- mLUU) owa�D ¢w2 U_LLC7 rU)W rWOw WW(n gQ�= ZQ� zom WLL} -V Xgao z=� �-aJF- ¢cna W Z C vi Q W M U m N H E W O' W l!1 W m m J pWp w 0 K J eel m V r� H 'D F N 2 J 1 ~ V ^ N z 00 O a W W X W K M d W _ D 0 J cc O m W V N M V V W p O C Z m J N V \ p N a ccv d N Q •-"� H in N J 0 Jol ^ J W ID Q ci m Q O O N J N av J > �--� O J T fLnH V�cN n W O rn X V UJ Nco N m Y m N Y H W 10 J W H V Za� m a m z 'l 000 3 0 m Qua Jun m o^ 3 z2m Qa'oA d M u n'1 V1 H Htu w O n m a vai = Z W m a IIIIIj7IIIII O W N V m N m � a -i Z N O O P O^ CD w z N n ID H n Y X N 3 H p H V) W m m W u d W IA Q m m � V) J = d =rE:ia J rl V 1� N � C N CO rn o17 r-- O N O I� M N N rl� r-� rn rn OO Z Z W Z O W a L a ON Q Q O U) W J a_ 2 O U 0 O 0 O � 0 a x • ^'LIU N's c0 `oo a m y D m ` I •- x a N S v Z F w z N c+> N �Q O 0 a 3 EXHIBIT C PARK MAINTENANCE As deemed necessary or as directed by the City, HOA shall perform all maintenance and repairs to the park property and park facilities that are necessary for the safe and continuous use and enjoyment of the park property and park facilities. HOA responsibilities include but are not necessarily limited to the following: 1) General Maintenance. a) HOA shall keep the park property clear of trash, and shall regularly collect and properly dispose of all trash and debris. Trash receptacles shall be emptied at least once per week or as often as necessary, as directed by the City, to keep the park property clear of trash. HOA shall pay for all solid waste disposal fees. b) All light fixtures within the park property shall be maintained, repaired, and/or replaced as necessary to ensure continuous operation. 2) Turf Management. All turf areas shall be maintained in the following manner as directed by the City: a) During the growing season all grass shall be mowed at least once per week, or as directed by the City. b) Turf shall be fertilized consistent with a program prescribed by the City at least 3 times per year, or as directed by the City. c) Turf shall be irrigated twice per week or as directed by the City. Irrigation shall be consistent with an irrigation program prescribed by the City. Irrigation system shall be inspected regularly and maintained in good working condition as directed by the City. HOA shall make all necessary repairs. d) HOA shall implement a program prescribed by the City to control weeds and maintain all turf areas in a 90 percent weed free condition. HOA shall also implement a program prescribed by the City to control insects and other pests in all turf areas. 3) Trees. HOA shall prune and apply new much to all trees once a year or as directed by the City. Any pests or diseases shall be addressed in accordance with a control program prescribed by the City. Tree's shall be irrigated or watered as necessary in accordance with a program prescribed by the City. 4) Playground Area. New engineered wood fiber shall be added each year to the playground fall zone and shall be maintained to a depth of 12 inches after compaction as directed by the City. Playground equipment shall have all bolts and materials checked twice per year for tightness and safe working condition. Shade structures and fabric shall be maintained in good repair in a safe and operable condition (no unusual sagging or rips). HOA shall make any necessary repairs as directed by the City. 5) Pavilion. Pavilion shall be swept and cleaned as necessary or directed by the City. Bathrooms shall be cleaned and sanitized on a daily basis or as directed by the City. HOA shall keep bathrooms stocked with sanitary supplies (i.e. toilet paper, towels etc.) 6) P cnic Tables and Grills. Picnic Tables shall remain bolted on concrete surface. All Grills shall be maintained and cleaned as necessary or as directed by the City. 7) Trails. Trails shall be kept clear of trash and debris. Any trip hazards shall be promptly repaired. Drainage pipes under the trail shall be cleaned out to maintain the free flow of storm water. EXHIBIT "D" ROADWAY FACILITIES NOTES: 1) The Roadway Facilities shall consist of a 2-lane roadway with a minimum width of 25 feet of concrete pavement, constructed along the entire length of the eastern boundary of the park Property as shown in the shaded area of the exhibit above. 2) Street lights shall be provided at locations as required by the City. Electric service lines for street lights shall be located underground. 3) The design and construction of the Roadway Facilities shall conform to the most current City Regulations. NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. DEDICATION DEED THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF COLLINS § ANNA TOWN CENTER NO. 4/SHRP, LTD., a Texas limited partnership (hereinafter called "Grantor"), as a dedication, donation and gift to the CITY OF ANNA, TEXAS, a Texas municipal corporation (hereinafter called "Grantee"), whose address is 111 N. Powell Parkway, Anna, Collin County, Texas 75049, has DEDICATED and CONVEYED, and by these presents does hereby DEDICATE and CONVEY forever unto Grantee for public use, a certain acre tract of land located in Collin County, Texas which is more particularly described on Exhibit A attached hereto and made a part hereof for all purposes (the "Property"); TO HAVE AND TO HOLD the Property, together with all and singular the rights and appurtenances thereto in anywise belonging, unto Grantee, its successors and assigns FOREVER, Grantor does hereby bind itself and its successors and assigns to WARRANT AND FOREVER DEFEND all and singular the Property unto Grantee, its successors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof by, through or under Grantor, but not otherwise. Executed as of 2016. GRANTOR: ANNA TOWN CENTER NO.4/SHRP, LTD., a Texas limited partnership By: Anna Town Center No. 4/SHRP GP, a Texas corporation, its general partner LI-M THE STATE OF TEXAS COUNTY OF Richard M. Skorburg, its President Before me, the undersigned notary public, on the day of , 2016, personally appeared Richard M. Skorburg, known to me (or proved to me) to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same in his capacity as President of Anna Town Center No.4/SHRP GP, in its capacity as general partner for Anna Town Center No.4/SHRP, Ltd. SEAL Given under my hand and seal of office this day of , 2016. Notary Public in and for the State of Texas EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY EXHIBIT "F" -LEGAL DESCRIPTIONS ANNA TOWN SQUARE (+/- 634 ACRES) » rn H x t., t H U I!J � X 1— ' � ,- a �z� c�it a n m U �� � air x zt�--� ^ ryn n a .�. �1ii IQzy,'izz� 1' IC�1 an'ln8�9sI N cov v a <_f � IY11191'i�� °�U5 !Y\Ilyl�lOi. OFOS Q .-- t- (LlQ O� ;d.� � 3 � � �N � Z M � oN '-' h m � �—a: � tf1 O Mu��,81£l 5 �a � m o m N v cON t- � {U W z d' t/> Vl � 1n r-- � W 4 �>n Oil O.. h -� Y-- �t° � 1O88'(�+.zSG hm ¢ ci � �tt� � MI/P�IF� a(.dS Zlfr� F' 2 r N w� -�-._J W W l.r_f � Cx) � p„ M� � t>7 til Ql <� n 'd' s O N� � t- � r � .°-�� Z 4 t-- w �'f� �� � � °� o_ U � ;n N� �NN � � � ham- N tnr 4�-. 1 h� ��'� �' tS' �� (� �N �rn O W co � � o� W M« .J to w z MIIz7.It�G o�QS � �m � �Ih a fV � r orn N �' � �� O 4 � M r�1 � � AOM o ti In Ot7 �M � Q'(jj,°s �N � �ui�ti'fr DUOS fa-- � W �� ,S�. �� IQl'�£�l U aI c s - W r ui Y N M` 1�, _ ..a z �17 � z p�� 1 "' �' �lfi 4 Q �-1 J o � in it7h U �- d; �' 2 W Z� ������ , �"� l� �� �r Q� �� W W r W � a � i �N�tl'rnrnz Q No � � �'� z � " Z i� f —' n t� o_ F-' Qt�F�.JUW (,(� �� oo �� �„0 W o Qn( z oa' � �'�o z � �' �-1 IOQ'Sslt � t w� °g�N H 'd"' .711��ILQ oUON oh °� � �� � N z � � ��c� � N oa Fr 0 0. 0 LBG.AI, DLSCR.TPTZO�' TRACT 1 BBING, a tract of land. Out of Tab Grandison Star, Abstract Nq, 79$, and beingpart of a 2383d14 acretract, as recorded in Vol, 4942, Pg, 511, a40,001 acre tract, as desczibedInDocumentNo, 200704090004724% a 43,67 acre tract, as desorlbed in. Volume 5717, Rage, 2431, a 23,80 acre tract, as described in DocumentNo, 20070208000183560, a 40,00 ,gore tract, as described in rohime, 5622, page 1863, a 129,92 acre tract) as described In Volume 5631, Page 2600, and a 40,5746 acre tract, as desoribedin Volume 5618, page 2878 In the Deed Records of Collin CMinty, Texas, and being more particularly descubed as follows; BBGINI�I]NG-, at a 5/8 inch iron i'od found at fihe nxost northerly northeast comer of said 4Q,Q01 acre tract, being the west line of Wildwocd Balsms Addition, an addition to the City of Anna, as described in Vol, (4, Pg, 746) in the Plat Records of Collin County, Texas; TFIIaI�TCB, South Ol°1g'33" �N'ast, along the east line of said 40,OU1 acre tract and the west line of said Wildwood Balms .Addition, for a distance of 736,06 feet, to a 5/8 inchlron rod found at the southwest corner of said WRdwood Farms Addition and being an interior ell corner of said 40.001 acre tract$, THLN'CB, South 88°34'06" fast, along the north Brie of sand 4Q,001 acre fact and the south line of said WildwoodBarrm ,Addition, far a. distance of 1234,50 feet, to a 5/8 .inch lz'onxod found at the northeast corner of said 40,001 acre tract,* T�ENCB, South 01°11'46" West, depaxtingthe south line oi'said Wildwoad Barnes ..Addition and alongthe eastllna of said 40,0Q1 acre tract, fox a distance of 1223120 feet, tea 5/8 inchji'on rod found at the southeast corner of said 40,001 acne tract and being the northeast corner of said 43,67 acre tract; 'Tl3EmCB, South 01°38'19" Wass, along the east IInO of said 43,67 acre, traot, for' a distance oft' 668188 feet, to a 2 ineli iron rod found In the north line of La Palozna, an addition to the City of Anna, as describedI.n Vol, C, page 418 In sold Plat Reeoeds,' T,E�TCB, Nardi $9°31'01"West, along the south line, of said 43,67 acre and along the north line, of said La. Palowa, for a distance of 2100.92 feet, to a point for caz'ner at the northwest corner of said La Palorna and being the northeast corner of said 129192 acre tract; 'HENCE, South 01°13'48" West, along the west line of said LaPalama and the east line of said 129,92 acre tract, for a distance of 1527, 89 feet, to a i/z inch iron rod found at the southeast corner of said 1.29,92 acre tract,, T1iEN'CB, North 87003'41" West, departing the west line of said La 1'aloma and along the south Tine of said 129,92 sate -tract, for' a distance of 15,88 feet, to a i/a inch iron rod found; TjTBNCB, Naz'th 89°20' 19"West, along the south line of said 129,92 feet, for a distance of 1$84,06 feet, to a �/z inchh'oiirod tetrad; 'ONCE, North 01°4003" fast, continuing along said south lino, far a distance of 18,35 feot, fo a calculated point for coiner; -MME, North 88019'57" West, continuing along said south line, for a distance of 952,27 feet, to a calculated point for corner; THENCE, Sattth o1p17'22" Wesfi, departing said south line, fox a distazzoe of 1337,42 feef, to a inch iron rod found at tho southeast corner of said 45756 acre tract; THENCE, North 88°14'S5" West, along the south line of said 40,5756 acre tract, for a distance of 669o97 feet, to a calculated point for cornea; '1`.�IENCE, North 88°13"Q9" West, continuing along said south line, fox a distaz�co of 331,49 feet, inch Ironxod found; T.�IENCE, Noxtlt 88°12'Q2" West, oontinui�zg along said south lino, fox a distance oi' 336,73 feet, to a %, Inch iron :rod found at the southwest corner of said. 40,5756 acre tract; '�'HE�'CE, North d0°S4' i.3" bast, along the West 1ix�e of said 40,5756 acxo tract, fox a distance of 1335,10 feet, to a ealculatedpoint for corner ID the south Zino of said 129,92 acretract; O'HENCE, North 8801957" West, along the south Eno of said 129,92 acre tract, for a distanco of 853462 feet, to a calculated point for cornox at the southwest corner of said 129.92 acre traot; THENCE, North 19°48'29"East, slang the west Xzne of said 1.29,92 acre tract, for a distance of 2482,75 feot, to a caloulatetlpoznt far' caxnex at the no t'thwest corner of said 4Q,OQ acre tract same b*gthe, southwest coiner of said 238,614 acre tract, .'HENCE, North 19°49' 04" East, along the wost line of said. 238,614 acre tract, fora di$tauce of 787.79 feet, to a calculatod point for corner at the point of curvature of a curve to the left, having a radius of 2914,83 feet, a central angle of 17°50' 12", and a tangent of 457 A .feet; THENCE, continuing along said west line and with said curve to theleftfor an arc distance of 907,41. feet (Chard 13eaz'ing North XQ°53'S8" EAst -- 9Q37S feet), to a calculated paint fol' corrLer; THENCE, North 01058152" East, continuing along said west line, for a distance of 185.33 Poet, to a calcttlatedpolnt fox eaxnoz' at the northwest cornet.' of saki 238,614 Rory tract; xHENCL, South 88°42' 1S"East, slang the north line of said 238,614 acne tract, for a distance of ' 135979 feet, to a 4"x4" concrete �nonuznont found; ' BENCE) South 88°52' 10" East, continuing along said northlino, for a distance of 661,91 feet, to nd a 4"x4" oonCrete raofllimant fou; t � THBNC.�, South �8°�6'30" �asfi, contanning Yong said.naz'fh Xinc, far a distance o� i��-9,22 feat, to � S/8 inch, ixon xnd found; T,��1'C�, South $8°�.6'��."East, eantintting along sand noith lxn.e, fog.° a distance of �.556,75 'set, to t�� PC1iNT 0� ��Cr1I�NJNG and containing 569,3�7 acxes o�land, I,RGAI, p>_SCRIRT(dN TRACT 2 ►Jeteb and 1luunrla t)uaorilrtdpn 24,27 Aoros fiTC{JA'f1;4 b� fife atu}a at 7'exurr, Cauuty of 0aliinf Gahm part of 1116 prurtdiaan Stunt tliVN , Abstruut h'r�. 7f1f1, lrutht� tics Irc�tt tut a %.0,60 aoro liaot }i oo r000rdod render Cortnly Clerk No, 00�0000lttf of tho Cailh} County Land Rwrds with cold promfoos Wing more Vaitloulorly dPeurlbod n►3 fotlowin, 1:1501NNIP10 of u rotioud nplku found ntulkinV th6 flrferb6utlon of the r►pploximuto middle of Comity I2ocld 02 with the WOO right—ol�way ldno of 8tato 11;glrwoy No. 8, oatd oomor being do sorlthoust aorinor of tho horein dosoribod pmmisoc and (lie nor4h000t r,btnof of r1 40111 biro boot no roeorrlod in Voltlmp I►40, Purro�n 241 of tho 0oliln ComaIl Rconrr�sl , THEN01; reilit tho a ridsoxhtlata trliddl6 of t;'holity Rood 1122, ills abuth line of Califl pralnlm ulru Ilia nurll► llnu of Ovid 0,06 g1to 4raot, WOO, 71,00 foot �o o rulfroad oplko Sot at tho opproxfmrala ooutor 116 Intsrcootion of County Road 22 tvltir• County (toad 42� lrm►khig flrn mlullmvt errrrtm of hold plomill:s, Vih 11011NIt6et oorrtor or told 06 ualo Vauk, and hinny in 1110 boat 11110 of Hops o 12,70 acro trootl /},� MENO� wills 1ha appImIrnato middlo of County ?fond W nlonry lhn Wont 11na of Pala Plemfgoa, flip wont Illto of Pald d010 Ailtrtlot, and tiro oust NO o oovornl small tracts of land, North 00,07,63" DO) nuasing ill 270,72 foot a VHnoh Iron rod found, p0611100 at 446*11 fool v '/r"rook Iron and found, paoolrtp (it 0110,03 loot a �r"11101► frail tod foul►((, potWlly 0 4134JO laot a �inr.h Iron r'od found, pamohtg of A3f7,7601oot tl YHnoh iron rod found, p(ming of 970,04 font a P,K. Poll found marking tho Intormilon of Coun(y ti<+utt }ty;SG {going well}, pacsinq at 1110,GI1 coot v P.l;, nail found, and ooutinuhtg (01 u info) tl(st�11w(r of I i5180 toot to u rvih•Qud ! spiko not Irrorklaq tha norlilwoot 401116t of bald proltillm anti 1ho nn(IthwOO rornor of a 1,21 (in troot no roaordad untior County Clerk hla, 0+1"011140 of itto Coliln Gumty I.r,rtd Itaoorrlu; THl'fICR with 11jo Punk lino of nold promf6m oAd lho with IN of twid 1,21 acro hoot, laorlb iy0'2OW out, IrasslAq ut ? 10,24 toot: a %"Incli (rbn r0+1 found mWelllg lilt southoust Comm of avid 112) uul'a Voot urld Ilia southwoot cornor of u 6104 were traot (bolnq tiro o(IM811), 110111411 of a 6,Pb do16 1100I us tuabttlad fn Volaw HIi6, Pop 65 of ilia ilcllht jaunty Woo Poeordt) fat n total cllslvuaa of 070.75 foot to a poA cupped Iron roil found In tho ermst rlghlraf vrtry Ono of 5lato 1-110 roy No, 5 tnuikhrg the soulhoaol Colim of cilia 8104 (1010 intot aaa lh0 tloilholml cerne:r of Vold promiraa; TH04 #n rvllh ilia uartb►ly ll of P'llrl pto1r116Prr aurl tie V10WHy i19 ui�rvdy line tit Sidle Highway tda, la on fUllbwsr Guut)r b2`6?1 0" lvool, 120.22 foot fo a Room sclppo(I Ya"inoh Iron roil sot mlrrking the h60inninn of a o(rrvh to thr, light; Soulhwootody thong sold ouwo having a oontrol anglb of 141001" talth o rodtus of 11760.72 fool, for an oro dictaneo of 9 8,42 Moot Schord � fiouth 101; '40" SVuud, 030,1)4 fool) to a R001"M t:u slA�d f WI 114011 roil at rnurRing t4v orltl of 140 outdo; �Quth 1h'o0 as" SYop( 11111M foot to Iho pob11 of bpylnning clad oo+ulolnillg 1101�7,338 quaile feat or 24,27 aarm of hard, TRACT 8 04 1,742,15f180, roll,10,004d AMA M Of jail() altustett In IN VaAV4WPP ?N �TAf�)C talaRVf�Y, Af�aTFtACT N�,tiateld dAm3atmty, Toxafi and betnP part of clam( (:shed 17�i,GA sere ttact of Ian(1 ootivt3yod b7 good to Fi "a Wy p n I0% 1007, worded In Voiumo '144, Page 246, Ueod n000l*, Ooliln County, TOM ,f�,�.�.`f,� snot boincd mare artloUtarly dosorlbod as 4a110MI , 1�lNNIN� at ta')/"iron tad found for o nor lrlei h C �otl til lo�l:�t t�(1 belnff lh Shuihw� lattlrr)af lid 'U j (e 100, K,Q,W.j and being in th oont Y 9,0 44 sate trsct of loud; II�N� )d 'It3 dad, Ob min, oa soy, G, Wongthe 0<0ut116118t rlpltl~vfi �rloy find oFU.f�:,R„ a Gitta�as of 1,'1GG,4b feet �o p 1/2" Iron rod f9und fdr oornor Wd bang the oatalhwom omor of 1� 00110 l 1 1211 sate traot of land 00riveyed by {If0ad to Toi i ly 001111rnp 01, reaor(le(i Ill Volumo 4002, p go 8004 DR0,03oi soWh MNC 0� doq, 8 min �o�%, slang the oulh fU�ab I Apun�� ��) haul[ pt arcled lrtSv ituy P. �p{l ,jig' ga 4 , !ilia 0(4110,2111tars lmo(of i�nd oolataypd �y deed fo Go g a disttanaa pf 1,aya,6 3 tootio A q/z" iron rod round for rorhat` anti boron ih4 sauih$ast aortla't of skid p ou)I 01 ottraninghon7 lraot of !e►ui and being In IN [vest limo of a coilud 10 64 aura [root of tnild oonvoyod by [lead io A)latt Frettk, recorded in Gounty Giark's F110 No. 0i -QOB7003, p,fZ,ol r„ i rMrNou 8 co doys 44 min, 5;3 sofi,, t;, al(0ng tlwo4not1lar of 0lotint0 Ro%j 421, grid Liao bbIno thte W111,10444 oott oorner 'sat tU a 1l2'' Iron rod sot far aarnar ancf l�t�inli In !r1 tl y + f o�(d 10,,1�4 core {rnat of l�n(i; . r 0p s0o W, nittrty till aontai` of said 001)ly 1109 �121, a distance of 1,7a4.4b foot to ttta ! H�N�f� N t34 deft. 44 n)in, j��t�IfJT �i; �IrC71NNlhi� �t1d aanlainirtl•J 1,'�42,1KA sq, f1, yr 5�.�444�Gros af)at�tf. ��1a�1 CITY OF ANNA, TEXAS AGENDA SUBJECT: Item No. 12 City Secretary's use only City Council Agenda Staff Report Date: March 8, 2016 Staff Contact: City Manager Exhibits: N/A 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 closed 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. 13 City Secretary's use only City Council Agenda Staff Report Date: Staff Contact: Exhibits March 8, 2016 City Manager N/A AGENDA SUBJECT: Consider/Discuss/Action on any items listed on the posted agenda or any closed session occurring during this 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. 14 City Secretary's use only City Council Agenda Staff Report Date: March 8, 2016 Staff Contact: City Manager Exhibits: None