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HomeMy WebLinkAboutCCpkt2014-09-09Y{OUii} AOMETOW N CITY OF ANNA AGENDA NOTICE -CITY COUNCIL WORKSHOP September 9, 2014 6:30 p.m. —Anna City Hall Administration Building The City Council of the City of Anna will meet in Workshop Session at 6:30 p.m., September 9, 2014 at the Anna City Hall Administration Building, located at 111 N. Powell Parkway (Hwy 5), regarding the following items: 1. Call to Order. 2. Roll Call and Establishment of Quorum. 3. Brieflng/Discussion regarding possible annexation of land. (Maurice Schwanlce) 4. CLOSED SESSION (EXCEPTIONS): Under Tex. Gov't Code Chapter 551, the City Council may enter into closed session to discuss any items listed or referenced on this agenda under the following exceptions: a. consult with legal counsel regarding pending or contemplated litigation and/or on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Government Code (Tex. Gov't Code �551.0711; b. discuss or deliberate the purchase, exchange, lease, or value of real prope>•ty (Tex. Gov't Code §551.072); acquisition of right -of --way, easements, and land for municipal facilities; c. discuss or deliberate Economic Development Negotiations: (1) To discuss or deliberate regarding commercial or financial information that the City has received from a business prospect that the City seeks to have locate, stay, or expand in or near the territory of the City of Anna and with which the City is conducting economic development negotiations; or (2) To deliberate the offer of a financial or other incentive to a business prospect described by subdivision (1). Tex. 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 hvo working days prior to the meeting so that appropriate arrangements can be made. 09-09-14 CC Workshop Meeting Agenda.doc Posted 09-OS-14 r5s � Gov't Code 2551.087 ); proposed residential and retail developments; d. discuss or deliberate personnel matters: City Secretary Annual Review and update; City Manager Annual Review; Boards and Commissions. (Tex. Gov't Code . 551.074). The council further reserves the right to enter into executive session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. 5. Consider/Discuss/Action on any items listed on posted agenda for September 9 2014 City of Anna City Council Regular Meeting or any Closed Session occurring during this Workshop, as necessary. 6. Adjourn. This is to certify that I, Natha Wilkison, City Secretary, posted this agenda at a place readily accessible to the public at the Anna City Hall and on the City Hall bulletin board at or before 5:00 p.m., September 5, 2014. Natha Wilkison, City Secretary 1. The Council may vote and/or act upon each of the items listed in this agenda. 2. The Cotmcil reserves the right to retire into executive session concerning any of the items listed on this agenda, whenever it is considered necessary and legally justified under the Open Meeting Act. 3. Persons with a disability who want to attend this meeting who may need assistance should contact the City Secretary at 972 924- 3325 two working days prior to the meeting so that appropriate arrangements can be made. 09.09-14 CC Workshop Meeting Agenda.doc 2 Posted 09-05-14 Item No. 3 WS City Secretary's use only �IlYY ®]I Aryl R2 Staff Re poirt Council Meeting: September 9, 2014 Staff Contact: Maurice Schwanke Account Code #: N/A Date Prepared: 08/03/14_ Budgeted Amount: N/A Exhibits: ■Yes ❑ No AGENDA SUBJECT: Briefing/Discussion regarding possible annexation of land. SUMMARY: The Anna incorporated limits currently surrounds a significant parcel of land that is being used for agricultural purposes. The attached exhibits show the location which is north of the Falls and Creekside Addition and traversed by County Road 370. QJR Partners are the owners of the approximately 226.6 acres of land of which 162.1 acres exist south of County Road 370 and 64.5 acres exist north of County Road 370. Currently, no land use regulations exist on the property since it is in the County. Utilities are going to be placed across the parcel and uses could develop that may not be in the best interest of the City. Therefore, the staff is asking for direction from the Council concerning potential annexation proceedings on this property. RECOMMENDED ACTION: Direction from Council. KI 1 Via JI oill, II ot ry f a i, 4= ©y LID' wl'I lir U�Iff} .G d p f T n r S ll1 -- — w`` o11 IdL437I I k••n2ier-usys^„� '_>'.�atat+�sr rr © M MIS . 4. VIA wz '3 E Y ✓: f_ ..�. w,..., tilt r ',.s� `i I* Val LlIJJJ L I fill if ila p It.j( ` r I VIA t 1( 1. 1Of 11,4yr. f f- r{.i b {,,.. • ✓ 4 i /Iy 1t_�k r ryyy i �{ii - 1 e to ir e1 tisvf t +�.y� SIF t lAyI {: -F �Y is .t y i •Z, ` did'. •_ 1fF. I'a.L. .If Ill 0 All .._.. • S� i�'. - ' I - '. .., CITY OF ANNA AGENDA NOTICE —CITY COUNCIL REGULAR MEETING September 9, 2014 7:30 p.m. —Anna City Hall Administration Building The City Council of the City of Anna will meet in Regular Session at 7:30 p.m., September 9, 2014, at the Anna City Hall Administration Building, located at 111 North Powell Parkway (Hwy 5), to consider the following items. Welcome to the City Council Meeting. Please sign the Sign -In -Sheet as a �^ecord of attendance. If you wish to speak on an open -session agenda item please fill out the Opinion/Speaker Registl^anon Form and tug^n it in to the City Secs^etary before the meeting star^ts. 1. Call to Order. 2. 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 a�•e not on the agenda, other than to make statements of specifrc 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 ai^isen 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 hvo working days prior to the meeting so that appropriate arrangements can be made. 09-09-14 CC Regular Meeting Agenda.doc Posted 09-OS-14 5. Consent Items. These items consist of non -controversial or "housekeeping" items required by lal47. Items may be considered individually by any Council member making such request prior to a inotion and vote on the Consent Items. a. Approve August 26, 2014 City Council Regular Minutes. b. Review P & Z Minutes of July 14, 2014. c. Approve "Balsamo Addition" Development Plat. (Maurice Schwanke) d. Approve a Transparency application and pledge. (Clayton Fulton) 6. Consider/Discuss/Action regarding adopting an Ordinance approving and and adopting the proposed City of Ann Fiscal Year 2014-2015 Budget for the City of Anna, Texas. (Clayton Fulton) 7. Consider/Discuss/Action regarding adopting and Ordinance setting the ad valorem tax rate per $100 valuation for 2014 tax year at $0.649 for the City of Anna, Texas. (Clayton Fulton) 8. Consider/Discuss/Action regarding a Resolution to ratify the property tax revenue increase reflected in the City of Anna FY 2015 Budget and acknowledge that the 2014 tax year ad valorem tax rate will raise more revenue from property taxes that the previous year. (Clayton Fulton) 9. Public Hearing: City Council will hear public comment on proposed Impact Fees. (Maurice Schwanke) 10. Consider/Discuss/Action regarding a Resolution approving an Amended Subdivision Improvement Agreement with the Owners of an approximate 6.54 acretract of land located in the Grandison Stark Survey, Abstract No. 798. (City Manager) 11. CLOSED SESSION (EXCEPTIONS): Under Tex. Gov't Code Chapter 551, the City Council may enter into closed session to discuss any items listed or referenced on this agenda under the following exceptions: a. consult with legal counsel regarding pending or contemplated litigation and/or on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Government Code (Tex. Gov't Code.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; l .The Council may vote and/or act upon each of the items listed in this agenda. 2. The Council reserves the right to retire into executive session concerning any of the items listed on this agenda, whenever it is considered necessary and legally justified under the Open Meeting Act. 3. Persons with a disability who want to attend this meeting who may need assistance should contact the City Secretary at 972 924 3325 two working days prior to the meeting so that appropriate arrangements can be made. 09-09-14 CC Regular Meeting Agenda.doc 2 Posted 09-05-14 c. discuss or deliberate Economic Development Negotiations: (1) To discuss or deliberate regarding commercial or financial information that the City has received from a business prospect that the City seeks to have locate, stay, or expand in or near the territory of the City of Anna and with which the City is conducting economic development negotiations; or (2) To deliberate the offer of a financial or other incentive to a business prospect described by subdivision (1). Tex. Gov't Code ,551.087); proposed residential and retail developments; d. discuss or deliberate personnel matters: City Secretary Annual Review and Update; City Manager Annual Reviews Boards and Commissions.(Tex. Gov't Code . 551.074). The council further reserves the right to enter into executive session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. 12. Consider/Discuss/Action on any items listed on posted agenda for September 9, 2014 Workshop Session or any closed session occurring during this Regular Meeting, as necessary. 13. Adjourn. This is to certify that I, Natha Wilkison, City Secretary, posted this agenda at a place readily accessible to the public at the Anna City Hall and on the City Hall bulletin board at or before 5:00 p.m. September 5, 2014. Natha Wilkison, 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 legallyjustified under the Open Meeting Act. 3. Persons with a disability who want to attend this meeting who may need assistance should contact the City Secretary at 972 924- 3325 two working days prior to the meeting so that appropriate arrangements can be made. 09-09-14 CC Regular Meeting Agenda.doc 3 Posted 09-O5-14 CITY COUNCIL MEETING SIGN IN SHEET DATE: Please sign4n as a record of attendance. All persons desiring to address the council are requested to sign below and fill out an Opinion/Speaker Registration Form. Please hand the Opinion/Speaker Registration Form to the City Secretary prior to the start of the City Council Meeting. NAME ADDRESS Y(OIIRi HOMETOWN Council Meeting: September 9, 2014 Account Code #: N/A Budgeted AGENDA SUBJECT: SUMMARY: RECOMMENDATION: N/A Call to order. Item No. 1 City Secretary's use only CR y ®]h T11 n2 Cny CC®urr m Agenda Staff Repoirt Staff Contact: Philip Sanders Date Prepared: 9-4-14 Exhibits: ❑Yes ❑ No Council Meeting: September 9.2014 Account Code #: N/A Item No. 2 City Secretary's use only �It y ®1hiT1Ilna (i (u► I I i lWill I Staff Contact: Philip Sanders Date Prepared: 9-4-14 Budgeted Amount: N/A Exhibits: ❑Yes AGENDA SUBJECT: Invocation and Pledge of Allegiance. SUMMARY: RECOMMENDATION: ❑ No Council Meeting: September 9, 2014 Account Code #: N/A Budgeted Amount: AGENDA SUBJECT G1 Item No. 3 City Secretary's use only CChy ®ic Anna �ll�y ®N1Tfll�Il� pxxg IIQ��Ii Staff Repoirt Staff Contact: Philip Sanders Date Prepared: 9-4-14 Exhibits: ❑Yes ❑ No Citizen Comments. Citizens are allowed 3 minutes to speak. The Council is unable to respond to 0 during this section that are not on the agenda, factual information in response to a citizen' response to the inquiry. SUMMARY: RECOMMENDATION: r discuss any issues that are brought in other than to make statements of specific S inquiry or to recite existing policy in i Council Meeting: September 9, 2014 Account Code #: N/A Budgeted Amount: N/A Item No. 4 City Secretary's use only fifty C®urnd Agenda Staff Contact: Philip Sanders Date Prepared: 9-4-14 Exhibits: ❑Yes ❑ No AGENDA SUBJECT: 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. YOUR; HOMETOR*N Council Meeting: September 9, 2014 Account Code #: N/A Budgeted Amount: N/A Item No. 5 La - d City Secretary's use only by o ll Am r(11 a any CCOunm ySgenUa Staff IR eporrt Staff Contact: Philip Sanders Date Prepared: 9-4-14 Exhibits: Q Yes ❑ No AGENDA SUBJECT: 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 08-26-14 City Council Regular Minutes. b. Review P & Z Minutes of July 14, 2014. c. Approve "Balsamo Addition" Development Plat. (Maurice Schwanke) d. Approve a Transparency application and pledge. (Clayton Fulton) RECOMMENDATION: Staff recommends approval of the consent items. August 26, 2014 RAN 6:30 p.m. —Anna City Hall Administration Building The City Council of the City of Anna met in Workshop Session at 6:30 p.m., August 26, 2014 at the Anna City Hall Administration Building, located at I I I N. Powell Parkway (Hwy 5), regarding the following items: 1. Call to Order. Mayor Milce Crist called the meeting to order at 6:30 pm. 2. Roll Call and Establishment of Quorum. Mayor Mike Crist and Council Members James T. Coolc, John Beazley, Chad Barnes, Nathan Bryan and Dick Dowd were present. Council Member Lauren Lovato was absent. 3. Presentation of the American Legion Firefighter and Paramedic of the Year Award. (Council Member Dowd) Council Member Dowd presented Firefighter Johnny Smith with certificate for Firefighter of the Year and Captain Chuy Eaton with certificate for Paramedic of the Year. 4. Introduction and Presentation by Anna ISD Superintendent. Pete Slaughter, Anna ISD Superintendent spoke to council regarding the Ann ISD and the City working together and answered questions. Council Member Barnes made the motion to enter closed session at 6:52 pm. Council Member Dowd seconded the motion. Motion passes. AYE 6 ABSTAIN 0 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); 08-26-14 CC Workshop Meeting Minutes.doc t OS-26-14 b. discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); acquisition of right-of- way, easements, and land for municipal facilities; c. discuss or deliberate Economic Development Negotiations: (1) To discuss or deliberate regarding commercial or financial information that the City has received from a business prospect that the City seeks to have locate, stay, or expand in or near the territory of the City of Anna and with which the City is conducting economic development negotiations; or (2) To deliberate the offer of a financial or other incentive to a business prospect described by subdivision (1). (Tex. Gov't Code, 551.087 ); proposed residential and retail developments; d. discuss or deliberate personnel matters: City Secretary Annual Review and update Update; City Manager Annual Review; Boards and Commissions. (Tex. Gov't Code 551.074). The council further reserves the right to enter into executive session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. Mayor Crist made the motion to return to open session at 7:30 pm. Council Member Barnes seconded the motion. Motion passes. AYE 6 NAY 0 ABSTAIN 0 6. ConsiderNiscuss/Action on any items listed on posted agenda for August 26 2014 City of Anna City Council Regular Meeting or any Closed Session occurring during this Workshop, as necessary. Council Member Bryan made the motion to take no action. Council Member Beazley seconded the motion. Motion passes. AYE 6 NAY 0 ABSTAIN 0 7. Adjourn. Council Member Cook made the motion to adjourn at 7:32 pm. Council Member Barnes seconded the motion. Motion passes. AYE 6 NAY 0 ABSTAIN 0 08-26-14 CC Workshop Meeting Minutes.doc 2 OS-26-14 ATTEST: Natha Willcioul" City Secretary APPROVED: Mike Crist, Mayor 08-26-14 CC Workshop Meeting Minutes.doc 3 08-26-14 MINUTES OF CITY OF ANNA AGENDA NOTICE —CITY COUNCIL REGULAR MEETING August 26, 2014 7:30 p.m. — Anna City Hall Administration Building The City Council of the City of Anna met in Regular Session at 7:30 p.m., August 26, 2014, at the Anna City Hall Administration Building, located at 111 North Powell Parkway (Hwy 5), to consider the following items. Welcome to the City Council Meeting. Please sign the Sign -In -Sheet as a record of attendance. If you wish to speak on an open -session agenda item please fill out the Opinion/Speaker Registration Form and turn it in to the City Secretary before the meeting starts. 1. Call to Order. Mayor Mike Crist called the meeting to order at 7:32 pm. 2. Invocation and Pledge of Allegiance. Mayor Mike Crist gave the invocation. 3. Citizen comments. Citizens are allowed 3 minutes to spealr. 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. None 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 nurnicipality; 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. Anna's first football game is Friday, August 29, 2014. 5. Consent Items. These items consist of norr-controversial or "houseJreepirrg" items required by law. Items may be considered individually by any Council 08-26-14 CC Regular Meeting Minutes.doc 1 08-26-14 member making such request prior to a motion and vote on the Consent Items. a. Approve July 22, 2014 City Council Regular Minutes. b. Approve July 29, 2014 City Council Special Minutes. c. Approve August 12, 2014 City Council Regular Minutes. d. Review EDC Minutes of May 1, 2014 ad June 5, 2014. e. Review CDC Minutes of May 1, 2014 and June 5, 2014. f. Approve a budget amendment to the EDC's current fiscal year budget. (Jessica Perkins) g. Approve a budget amendment to the CDC's current fiscal year budget. (Jessica Perkins) h. Review Quarterly Investment Report. (Clayton Fulton) i. Approve Mayor's memo to EDC and CDC Boards. j. Approve a resolution authorizing execution of an amended performance agreement with Empowered Training Centre, LLC and approving a line of credit utilizing the funds in the Revolving Loan Fund program for Empowered Training Centre, LLC. (Jessica Perkins) Mayor Crist asked to break out items f and g for discussion. Council Member Bryan made the motion to approve items 5 a — e and 5 h — j. Council Member Dowd seconded the motion. Motion passes. AYE 6 NAY 0 ABSTAIN 0 Mayor Crist and Council Members discussed items 5 f & g. Jessica Perkins, Assistant to the City Manager answered questions from council members. Mayor Crist made the motion to approve items 5 f & g. Council Member Barnes seconded the motion. Motion passes. AYE 6 NAY 0 ABSTAIN 0 6. Public Hearing: For City Council to hear public comment on the proposed 2014 Tax Rate. (Clayton Fulton) Clayton Fulton, Director of Finance presented the item to council. Mayor Crist opened the public hearing at 7:45 pm. There was no public comment. Mayor Crist closed the public hearing at 7045 pm. 7. Consider/Discuss/Action regarding a Ordinance amending the 2013-2014 Fiscal Year Budget. (Clayton Fulton) Clayton Fulton, Director of Finance presented the item to council and answered questions. Council Member Bryan made the motion to approve. Council Member Barnes seconded the motion. Motion passes. AYE 6 NAY 0 ABSTAIN 0 08-26-14 CC Regular Meeting Minutes.doc 2 08-26-14 8. Consider/Discuss/Action regarding a Resolution changing certain street names in North Pointe Crossing. (Maurice Schwanke) Maurice Schwanke, Director of Planning and Zoning presented the item to council and answered questions. Residents on Belford Circle presented a petition to not change their street name. Emily Franklin spoke in favor of changing the street name on Carlyle Circle. Kelly Patterson Herndon spoke regarding not changing the street names for Belford Circle. Molly Kennemen spoke regarding the naming of the streets. Council and Staff discuss changing the street names. Council Member Bryan made the motion to change street names to Carlyle Street, Stafford St. and Vernon Street. Mayor Crist seconded the motion. Motion passes. AYE 6 NAY 0 ABSTAIN 0 Council Member Bryan made the motion to name Belford Circle renamed to Belford St. North and Belford St. South and Belford St. Council Member Cook seconded the motion. Motion passes. AYE 6 NAY 0 ABSTAIN 0 9. (a) Public Hearing: To consider public comments on a request by owners of the property to change zoning from SF4 (Single Family Residential) and Planned Development to Planned Development for Downtown Re- development. The property is generally located north of Second Street and west of North Powell Pkwy. (Maurice Schwanke) Maurice Schwanke, Director of Planning and Development presented the item to council and answered questions. Mayor Crist opened the public hearing at 8:25 pm. There was no public comment. Mayor Crist closed the public hearing at U5 pm. (b) Consider/Discuss/Action regarding an ordinance to change zoning from SF-1 (Single Family Residential) and Planned Development to Planned Development for Downtown Re -development. The property is generally located north of Second Street and west of North Powell Pkwy. (Maurice Schwanke) Council Member Bryan made the motion to approve. Mayor Crist seconded the motion. Motion passes. AYE 6 NAY 0 ABSTAIN 0 Public Hearing: To consider public comments on a request by Durrie L Caldwell and Leland R Caldwell, owners of property, to change the existing Planned Development Single Family Residential zoning by (Ordinance No. 80-2003) to potential Residential with town homes, garden homes and/or apartments; and 10 acres to (C1) Restricted Commercial. The subject property is located on west White Street, west 08-26-14 CC Regular Meeting Minutes.doc 3 08-26-14 of the Oak Hollow subdivision and south of West White Street. The tract is approximately 51 acres of land.(Maurice Schwanke) Maurice Schwanke, Director of Planning and Development presented the item to council. Mayor Crist opened the public hearing at 8:30 pm. Developer Don Collins made a presentation to council. Mayor Crist closed the public hearing at 8*46 pm. (b) Consider/Discuss/Action regarding an ordinance to change the existing Planned Development zoning (Ordinance No. 80-2003) to potential Residential with town homes, garden homes and/or apartments; and 10 acres to (C1) Restricted Commercial. The subject property is located on west White Street, west of the Oak Hollow subdivision and south of West White Street. The tract is approximately 51 acres of land. (Maurice Schwanlce) Council Member Coolc made the motion to approve. Mayor Crist seconded the motion. Motion passes. AYE 6 NAY 0 ABSTAIN 0 11. Consider/Discuss/Action regarding an Ordinance abandoning a portion of Sixth Street. (Maurice Schwanke) Maurice Schwanlce presented the item to council and answered questions. Council Member Bryan made the motion to approve. Council Member Barnes seconded the motion. Motion passes. AYE 5 NAY 0 ABSTAIN 1 (CM Beazley) 12. Consider/Discuss/Action regarding a Resolution approving the Jonic Addition. (Maurice Schwanlce) Maurice Schwanlce, Director of Planning and Development presented the item to council and answered questions. Council Member Barnes made the motion to approve. Council Member Bryan seconded the motion. Motion passes. AYE 5 NAY 0 ABSTAIN 1 (CM Beazley) 13. Consider/Discuss/Action regarding a Resolution casting votes in the Texas Municipal League Intergovernmental Rislc Pool Board of Trustees Election. (City Manager) Philip Sanders, City Manager presented the item to council and answered questions. Mayor Crist made the motion to vote for Robert Herrera for Place 1; John Fullen for Place 2; George Shackelford for Place 3 and Rona Stringfellow for Place 4. Council Member Bryan seconded the motion. Motion passes. AYE 5 NAY 0 ABSTAIN 1(CM Dowd) 08-26-14 CC Reguhr Meeting Minutes.doc 4 08-26-14 Council did not enter closed session at this time. 14. CLOSED SESSION (EXCEPTIONS): Under Tex. Gov't Code Chapter 551, the City Council may enter into closed session to discuss any items listed or referenced on this agenda under the following exceptions: a. consult with legal counsel regarding pending or contemplated litigation and/or on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Government Code (Tex. Gov't Code 551.071); b. discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); acquisition of right-o& ways easements; and land for municipal facilities; c. discuss or deliberate Economic Development Negotiations: (1) To discuss or deliberate regarding commercial or financial information that the City has received from a business prospect that the City seeks to have locate, stay, or expand in or near the territory of the City of Anna and with which the City is conducting economic development negotiations; or• (2) To deliberate the offer• of a financial or other incentive to a business prospect described by subdivision (1). (Tex. Gov't Code rz551.087); proposed residential and retail developments; d. discuss or deliberate personnel matters: City Secretary Annual Review and Update; City Manager Annual Review; Boards and Commissions.(Tex. Gov't Code . 551.074). The council further reserves the right to enter into executive session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. 15. Consider/Discuss/Action on any items listed on posted agenda for August 26, 2014 Workshop Session or• any closed session occurring during this Regular Meeting, as necessary. Council Member Bryan made the motion to take no action. Council Member Barnes seconded the motion. Motion passes. AYE 6 NAY 0 ABSTAIN 0 08-26-14 CC Regular MeetingMinutes.doc 5 08-26-14 10. Adjourn, Council Member Bryan made the motion to adjourn at 9:00 pm. Council Member Beazley seconded the motion. Motion passes. AYE 6 NAY 0 ABSTAIN 0 ATTEST: APPROVED: Natha Willcison, City Secretary Mike Crist, Mayor 08-26-14 CC Regular Meeting Minutes.doc 6 08-26-14 MINUTES PLANNING AND ZONING COMMISSION REGULAR MEETING July 14, 2014 The Planning and Zoning Commission of the City of Anna met at a special meeting on July 14, 2014, at 7:00 p.m., at the Community Room of the Anna City Hall Administration Building located at 111 North Powell Parkway (Hwy 5), to consider the following items. 1. Call to order and establishment of quorum. The meeting was called to order at 7:01 p.m. by Chairman Burr. Members present were Justin Burr, Sandy Setliff, Tiffany Burleson, Elaine Gothard, John Johnson and Darrin Colombo. Lee Miller was absent. Staff present was Maurice Schwanke and Tana Ross. 2. Invocation and Pledge of Allegiance. Mr. Schwanke gave the invocation and led the Pledge of Allegiance. 3. Consider/Discuss/Act on recommendation regarding "Jonic Addition" final plat. Mr. Schwanlce gave a presentation regarding the final plat and answered questions fiom the Commission. Mr. Schwanke noted that the Jonic Addition final Plat combines 5 lots of Block 3 of the Original Town Plat with 10 foot of an abandoned alley with a portion of 6t' Street. Prior to filing this plat with the county the abandonment will need to take place with the abandonment information included. The abandonment is in the process and will be accomplished simultaneously with the approval of the plat at City Council. He also noted that the plat is in an area currently under study with potential new guidelines for setbacks. As such none are shown on the plat. The setbacks required at the time of development will be enforced. The staff is recommending approval of this plat subject to the following comments: l . Rename the Final Plat as Replat of the Anna Original Donation. List all lots being combined. 2. Provide surveyor firm number on the plat. 3. List the date of the field survey. 4. Insert the ordinance number on the plat that is abandoning the ROW along 6th Street. Following a brief discussion, a motion was made by Ms. Setliff to recommend approval of the final plat with the conditions that the above comments are met before Council approval. Mr. Colombo seconded the motion. The vote was 5 Ayes 1 Nay (E. Gothard) 4. Consider/Discuss/Act on recommendation regarding "Anna Crossing PH 3A & 3B" pY•eliminary plat. P&Z Special Minutes 07-14-14.doc Page 1 of 3 07-14-14 Ivlr. Schwanke gave a presentation regarding the preliminary plat and answered questions fiom the Commission. He noted that the preliminary plat has been resubmitted since the comments below were developed. Most of the comments have been complied with, however several still are applicable. The staff is recommending approval subject to the comments. Preliminary Plat Comments 1. Rename Preliminary Plat from Phase 2A & 20 to 3A & 3B. 2. Include the TBPLS Firm # on the plat. 3. Add notes to the Preliminary Plat stating the basis of bearings, monuments found, Floodplain location, and date of the survey. 4. Clarify the right-of-way (ROW) dedication along Leonard Drive. 5. Include VAM's at each intersection. 6. Label and identify each corner monument set/found as well as property lines. 7. On the paving typical section, maximum slope shall be 4:1 and City utilities shall have a minimum of 4-feet cover. 8. Clearly show the north line of the 129.92 acres tract. Preliminary Water and Sewer Plan Comments 9. Water and sewer line alignment do not match the typical section. 10. Provide the lift station and force main design. Included in the design shall be a basin analysis and any proposed phasing. 11. Install a 12-0 nch water line along Leonard Drive with fire hydrants at 300-foot infiervals. 12. Dead end water lines are not allowed. 13. Place a fire hydrant at each end of Street G. 14. Provide a sanitary sewer stub out to the west across Leonard Drive at the intersection with Sharp Street. Preliminary Drainage Plan Comments 15. Provide an overall drainage design. Including proposed conveyance routes, adequate easements, on and off -site drainage area maps, storm drainage calculations, pipe/channel sizing, HGL, etc. Storm water shall be detained to existing conditions. 16. Lot to lot drainage is not allowed. P&� Special Minutes 07-14-14.doc Page 2 of 3 07-14-14 A motion was made by Mr. Johnson to approve the preliminary plat subject to the above comments are met before Council approval. Ms. Setliff seconded the motion. The vote was unanimous. 5. Consider action to approve Minutes of the June 2, 2014 meeting. A motion was made by Chairman Burr, seconded by Ms. Gothard to approve the above Minutes as submitted. The vote was unanimous. 6. Adjourn There being no further business, a motion was made by Ms. Gothard, seconded by Ms. Burleson to adjourn meeting. The meeting adjourned at 7:31 p.m. lviaurice acnwanxe Director of Planning and Development ATTEST: P&Z Special Minutes 07-14-14.doc Page 3 of 3 07-14-14 Council Meeting: September 9, 2014 Account Code #: N/A Item No. 5 c City Secretary's use only � R y d Y1 Tfll Tlil a (i (u► �� i l e� 10 MR-� 11\1�v�m®II Staff Contact: Maurice Schwanlce Date Prepared: 08/03/14 Budgeted Amount: N/A Exhibits: ■Yes ❑ No AGENDA SUBJECT: Approve a Resolution `Balsamo Addition" Development Plat. SUMMARY: The development plat submitted for your review is located within the extraterritorial jurisdiction of the City. The tract is in the Henry Hahn Survey and contains approximately 49 acres of land. The property is located west of the East Fork Trinity River and north of County Road 1005. The owner is proposing to build a house on the tract. The plat meets the City of Anna development plat requirements. The Staff recommends approval of the development plat. PLANNING AND ZONING ACTION: This agenda item is schedule for the Planning and Zoning Commission on Monday, September 8, 2014. RECOMMENDED ACTION: Approval of the development plat CITY OF ANNA, TEXAS I MLOMwi ELEA a M w 0 W LWR A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING THE "BALSAMO ADDITION" DEVELOPMENT PLAT" GENERALLY LOCATED IN ANNA'S EXTRATERRITORIAL JURISDICTION LOCATED WEST OF EAST FORK TRINITY RIVER AND NORTH OF COUNTY ROAD 1005 AND IS SUBJECT TO THE SUBDIVISION RULES AND REGULATIONS AS SET FORTH IN THIS RESOLUTION. WHEREAS, In order to provide for the orderly development of land within the Anna city limits and extraterritorial jurisdiction, the City Council of the City of Anna, Texas (the "City Council") has adopted Part III -A of the Anna City Code of Ordinances ("Subdivision Regulations"); and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. Recitals Incorporated. The recitals above are incorporated herein as if set forth in full for all purposes. Section 2. Approval of Development Plat The City Council hereby approves the Balsamo Addition development plat PASSED AND APPROVED by the City Council of the City of Anna, Texas, on this 9t" day of September, 2014. ATTEST: Natha Wilkison, City Secretary 1 Mayor, Mike Crist alit w w a �gySF�SSWww33wwww3w 3, w w w w 3 3 w s° re o"4' bn14 bbb 5 P \ 3 t I X 5 6 rc - �. se• stag 9 n �m X� X �� ap no Rn ism X e 3 t I X 5 6 rc - �. se• stag 9 n �m X� X �� ap no Rn ism X e o \ 0 0 0 0 "7111 A 21 I Council Meeting: September 9, 2014 Account Code #: N/A Budgeted Amount: N/A Item No. 5 (d) City Secretary's use only CCHy o- -A nrna y Comm A-gend� Staff Report Staff Contact: Clayton Fulton Date Prepared: 09/04/2014 Exhibits: Q Yes ONo AGENDA SUBJECT: Consider/Discuss/Action regarding a pledge to maintain the City's financial transparency regarding future debt issues. SUMMARY: The Comptroller's Office for the State of Texas manages a government transparency program and recognizes various governmental agencies with a degree of transparency awards. The City of Anna has maintained the highest standard (gold level) awarded by the Comptroller's Office for 3 years. For this year, the Comptroller has introduced a new platinum level award. To achieve this distinction, the City must accomplish all the gold level criteria (which we now do) and post additional information regarding the City's debt and pledge to post information regarding any future debt issues. The attached information includes the pledge required by the Comptroller's Office as seen in the application, the pledge written on the City's letterhead, and the City's score on the platinum level award. RECOMMENDED ACTION: Staff recommends the Mayor sign the pledge on behalf of the City. 'texas Connpumller Leadership Circle In an effort to introduce more transparency into local spending and debt obligations, (name of entity) pledges to post details about the entity's bond and debt infot•tnation on the entity's website no later than one business day after the public notice of the bond election. 'Ibis information will include details about the bond package(s) up for vote and current outstanding debt obligations including bonds, certificates of obligation and other debt, and the date of the election. The entity further pledges to notify the Compuoller's office via email to Tiansparencywcpastate.tx.us when rite bond election information has been posted to the entity's website. The email will include a link to the bond election information. Signature of chief executive (e.g„ nrnyor, co�urty jrrdge, superintendent or execrrtrue dh•ector) pore. f3. 201 d Scoring Lendetship Circle DEBT TRANSPARENCY PLEDGE In an effort to introduce more transparency into local spending and debt obligations, the City of Anna pledges to post details about the entity's bond and debt information on the entity's website no later than one business day after the public notice the bond election. This information will include details about the bond packages(s) up for vote and current debt obligations including bonds, certificates of obligation, and other debt, and the date of the election. The entity further pledges to notify the Comptrollers' office via email to 'rans��arance�(�i;c�iaz.statcIN.u.t when the bond election information has been posted to the entity's website. The email will include a link to the bond election information. Mayor Mike Crist CITY OF ANNA, TEXAS POWELL PKWY, P.O. BOX 776 ANNA, TEXAS 75409-0776 PHONE 972-924.3325 FAX 972-924.2620 www.annatexas.gov 'texas Comptroller Leadership Circle City of Anna Name of local government Please place a check mark next to each criterion your website meets and tally the points below Major Criteria (Maxspoi„ts) «Adopted budget (2 points) (J� Annual financial report (2 points) ✓, Check register (2 paints) Financial transparency webpage or menu (2 points) Minor Criteria (Max IOpoints) Local government contact information (I point) C� Public information request (I point) U Budgets for three fiscal years (I point) L✓) Annual financial reports for three fiscal years (].point) Check registers for three fiscal years (1 point) Searchable check registers (1 point) t� Descriptive check registers (I point) Visual representation of financial data (I point) Current tax rates (I point) Raw format budget (1 point) Debt Criteria (4points) ✓U Debt information C� Link to Comptroller's website (✓� Bond election pledge 21 Total Points Received (Max 22 points) 'l(l I� Scoring Lcada'�hlp Clitilc • page 7 n Council Meeting: September, 9 2014 Account Code #: N/A Item No. 6 City Secretary's use only City CC®und*� Agenda Staff Report Staff Contact: Clayton Fulton Date Prepared 09/04/2014 Budgeted Amount: N/A Exhibits: Q Yes ❑ No AGENDA SUBJECT: Consider/Discuss/Action regarding adopting an Ordinance approving and adopting the proposed City of Anna Fiscal Year 2014 - 2015 Budget for the City of Anna, Texas, SUMMARY: The Annual Budget and Plan of Municipal Services is the most important document that is adopted by the City Council each year. In developing this document, as always, a significant amount of time is devoted by City Council Members and City Staff. An Annual Budget is developed through an extensive process of reviewing requests received from various City departments then prioritizing those requests in a manner that utilizes resources effectively, within fiscal constraints, while working to achieve goals set forth by the City Council. Beginning in 2009 the taxable value of existing properties in Anna declined an average of 3% per year through 2012. During this span nearly $60 mon in new value was added to the tax rolls; however, losses in value to existing properties exceeded the value of new construction. Property value eventually stabilized in 2013 and eclipsed the peals from 2008. Based upon the 2014 certified values from the Collin Central Appraisal District, existing properties have not only retained their value since 2013, they have also seen some market appreciation. We remain guardedly optimistic this recent trend toward market appreciation will hold steady in the coming years. The growth in taxable value corresponds to a significant increase in population over the past 12 months. According to the most recent population estimates published by the North Central Texas Council of Governments, the City of Anna population as of January 1, 2043 was 10,350. In 2013, the City issued 305 single family building permits which equates to just under 1,000 new city residents. A similar growth pattern has occurred during 2014. With the growth in population comes a proportional increase in demand for municipal services that are primarily funded by property taxes. As Anna continues to grow, the city remains committed to the Hometown ideal outlined in its Strategic Vision. Additionally, the Council's strategic goals and objectives have Item No. 6 City Secretary's use only helped to guide the development of the FY 15 budget through a serious of workshops with the Council to review proposed budgets and supplemental requests from each department. The FY 14 budget can be funded by adopting a tax rate of $0.649 cents per $100 valuation, which is lower than the tax rate adopted last year. Other than minor grammatical and eng, the budget included in the packet tonight is identical to the final draft budget the council has already received. RECOMMENDED ACTION: Staff recommends approval of the attached Budget Ordinance and FY 15 Budget. CITY OF ANIMA, TEXAS Ordinance Adopting the Budget for the 2014 - 2015 Fiscal Year AN ORDINANCE MAKING APPROPRIATIONS FOR THE SUPPORT OF THE CITY OF ANNA FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2014, AND ENDING SEPTEMBER 30, 2015; APPROPRIATING MONEY TO AN INTEREST AND SINKING FUND TO PAY INTEREST AND PRINCIPAL ON THE CITY'S INDEBTEDNESS; AND ADOPTING THE ANNUAL BUDGET OF THE CITY OF ANNA FOR THE 2014 — 2015 FISCAL YEAR. WHEREAS, the budget, appended here as Exhibit A, for the fiscal year beginning October 1, 2014 and ending September 30, 2015, was duly presented to the City Council by the City Manager and a public hearing was ordered by the City Council and a public notice of said hearing was caused to be given by the City Council and said notice was published in the Anna -Melissa Tribune and said public hearing was held according to said notice; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANIMA THAT: SECTION 1. The appropriations for the fiscal year beginning October 1, 2014, and ending September 30, 2015 for the support of the general government of the City of Anna, Texas, be fixed and determined for said terms in accordance with the expenditures shown in the City's fiscal year 2013 - 2014 budget, a copy of which is appended hereto as Exhibit A; SECTION 2. The budget, as shown in words and figures in Exhibit A, is hereby approved in all respects and adopted as the City's budget for the fiscal year beginning October 1, 2014, and ending September 30, 2015. SECTION 3. That there is hereby appropriated the amount shown in said budget necessary to provide for an interest and sinking fund for the payment of principal and interest and the retirement of the bonded debt requirements of fiscal year 2014 - 2015 of the City of Anna. SECTION 4. In addition to Exhibit A, and in accordance with Section 7.08 of the Anna City Charter, the budget also includes a contingency appropriation of $135,286. All expenditures from this contingency appropriation shall be in accordance with Section 7.08 of the Anna City Charter. PASSED AND APPROVED this, the 9th day of September, 2014. Ayes Nays ORD. - PAGE 1 of 2 Abstained ATTESTED: APPROVED: City Secretary, Natha Wilkison Mayor, Mike Crist ORD. - PAGE 2 of 2 CITY OF ANNA., TEXAS This budget will raise more revenue from property taxes than last year's budget by an amount of $520,417, which is an 18.62% increase from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is $242,510. Citv Council Record Vote Scheduled for September 9.2014 The members of the governing body voted on the adoption of the budget as follows: FOR: AGAINST: PRESENT and not voting. ABSENT: Tax Rate FY 2014-15 FY 2013-14 Property Tax Rate $0.649000 100 $0,650332/100 Effective Rate $0.587582 100 $0.646813 100 Effective M&0 Tax Rate $0.505395 100 $0.556187 100 Rollback Tax Rate $0,649000 100 $0.691646 100 Debt Rate $0,103174/100 $04090965 100 The total amount of municipal debt obligation for the City of Anna is $30,615,250. • $3,969,000 is directly secured by property taxes through the I&S rate • $12,440,000 has a tax pledge and is supported by water and sewer revenues • $14,206,250 in revenue and contractual debt obligations to the Greater Texoma Utility Authority is also supported by water and sewer revenues I Y{our} Hometown FY15 Proposed Annual Budget INTRODUCTION Budget Letter 4 City Organization 10 Commitment and Vision 12 Statistics 18 Budget Process 19 Fund Structure 23 GENERAL FUND SUMMARY Revenue 28 Expenditures 32 Departmental Summaries 34 Restricted Revenue Trusts 58 DEBT SERVICE FUND SUMMARY Revenue 63 Debt Service Obligations 64 Debt Schedule 65 UTILITY FUND SUMMARY Revenue 67 Expense 69 Departmental Summaries 70 Utility Fund Debt 77 CAPITAL IMPROVEMENTS Project Summaries 80 Five Year Summary 85 COMPONENT UNITS Summary of Units 87 Community Development Corporation 88 Economic Development Corporation 90 SUPPLEMENTAL INFORMATION Capital Improvements Plan 93 Debt Management Plan 138 Bond Ratings 157 Financial and Investment Polices 166 Budget Information from City Charter 192 Budget Ordinance (included after adoption in September) September 9, 2014 Honorable Mayor and Council Members: In accordance with the City Charter and the laws of the state of Texas governing home rule cities, please accept this letter as my budget transmittal and executive summary of the draft fiscal year 2014-15 budget. The Annu- al Budget is the most important document that is adopted by the City Council each year. In developing this document, as always, a significant amount of time is devoted by City Council Members and City Staff. An Annu- al Budget is developed through an extensive process of reviewing requests received from various City depart- ments then prioritizing those requests in a manner that utilizes resources effectively, within fiscal constraints, while working to achieve the City's strategic goals. STRATEGIC GOALS AND OBJECTIVES The City Council has identified seven (7) strategic goals that help frame the City's financial and operational work plans. The strategic plan is a working document that provides guidance to City Staff when making budg- etary and operational decisions. Fiscal Year 2015 Strategic Goals Goal 1 Attract Professional Jobs Goal 2 Improve the Curb/Aesthetic Appeal of our Community Goal 3 Promote Downtown Development Goal 4 Promote Retail Development Goal 5 Develop a Brand Identity for the City of Anna Goal 6 Diversify Housing and Neighborhood Options Goal 7 Upgrade City Facilities and Infrastructure The FY2015Strategic Plan Implementation Strategy included in this budget outlines the City's plan of action for implementing the strategic goals during the 2015 fiscal year. VALUE OF TAXABLE PROPERTY AND GROWTH Beginning in 2009 the taxable value of existing properties declined an average of over 3% per year through 2012. During this span nearly $60 million in new value was added to the tax rolls; however losses in value to existing properties exceeded the value of new construction. Property values eventually stabilized in 2013 and eclipsed the peals value from 2008. Based on the 2014 certified taxable value, existing properties have not on- ly retained their value since 2013 they have also seen some market appreciation. We remain guardedly opti- mistic this recent trend toward market appreciation will hold steady in the coming years. This growth in taxable value corresponds to a significant increase in population over the past 12 months. Ac- cording to the most recent population estimates published by the North Central Texas Council of Governments, the City of Anna population as of January 1, 2014 was 10,350. In 2013, the City issued 305 single family build- ing permits which equates to just under 1,000 new city residents. So far in 2014, the City has received 229 building permit applications for single family homes. Much of the growth is attributable to a large inventory of available single family lots. As that inventory dimin- ishes we expect to see a slight drop in building activity until more developments are platted and approved. TAX RATE The proposed budget would reduce the property tax rate from $0.650332 cents per $100 of taxable assessed valuation to $0.649 cents. The total tax rate is divided between General Fund maintenance and operations and the Debt Service Fund. Of the total tax rate, $0.545826 cents is dedicated to General Fund maintenance and operations, and $0.103174 cents is dedicated to general obligation debt service. The portion of the tax rate dedicated to debt service is about 16% of the overall City tax rate. The average taxable value of asingle-family home for the 2014 tax year is approximately $128,600, an increase of $12,000 from the previous year. At the proposed tax rate of $0.649 the municipal tax paid on the average single family home will be $834.61 EMPLOYEE PAY AND BENEFITS It has been six years since the city updated its pay classification plan. Since that time, we are aware of employ- ees and employee groups whose salary schedules have fallen behind the market for this region. In an effort to hire and retain qualified and trained employees, the fiscal year 201344 budget included funding to review and update our pay classification plan based on a comparison of similar positions in this market area. The salary and classification plan survey revealed that 58% of the Ciry's employees fall below the average sur- vey minimum for their respective positions. The study provided recommendations for revising the City 'spay classification plan, and for implementing market adjustments based on the new pay plan and the tenure of each employee in his or her position. The new pay classification plan moves the Police department from an automatic Step pay plan to traditional pay plan where scheduled salary adjustments are determined as part of the budget process and are based on individual merit or cost of living. The cost of implementing the recommended market adjustments for all affected employees is about $150,000. In lieu of a single year implementation, Staff has recommended that the market adjustments be phased in over two fiscal years. Based on this strategy, the cost of funding market adjustments in fiscal year 2014-15 is just under $70,000 and the estimated cost in fiscal year 2015=16 will be just over $80,000. If warranted, employ- ee's not receiving market adjustments may be considered for discretionary merit based pay adjustments. The City currently pays for health insurance for all City employees through a plan provided by the Texas Mu- nicipal League Intergovernmental Employee Benefit Pool (TMLIEBP). The City is currently undertaking a com- prehensive review of the health plans and benefits offered to full-time employees. To assist with this review process, the City has hired Wellspring Insurance Agency to review our current health benefits and issue a Re- quest for Proposal (RFP) to determine if more cost effective plans are available to the City. The purpose of the UP process is to solicit competitive bids for the insurance programs for the City, and to obtain quality benefits for City employees at the best pricing available in the marketplace. This does not rule out continuing to use TML under the same benefits plan or moving to an alternate plan offered by TML. The fiscal year 2014-15 budget includes an estimated 5% increase in the cost of health benefits provided to full-time employees. PROGRAMS AND STAFFING LEVELS The City currently supports a staff of 50 full-time equivalent (FTE) employees allocated among the various op- erating departments. The proposed budget recommends an increase of 4 full-time positons. One position would be added to the Finance department, one to the Police department, one to the Fire department, and one 5 to the Water department. Staffing levels have been increased to maintain quality service delivery as our popu- lation and demand for services continues to grow. GENERAL FUND The General Fund is the City's main operating fund, which is used to account for all financial resources except those required to be reported in another fund. The General Fund receives revenues from property taxes, per- mits, franchise taxes, sales tax, fines, fees for services, interest income, and several other miscellaneous general revenue sources. This fund finances the operations of the Administration, City Council, City Manager, City Sec- retary, City Attorney, Finance, Development, EMS, Fire, Animal Control, Police, Municipal Court, Parks, and Street departments. For the 2014-15 fiscal year, General Fund revenues are expected to total $4,517,341 which is an increase of 10% over the previous year's budget. Property tax revenue to the General Fund is anticipated at $2,786,834 (an increase of 15.7%), and sales tax revenue is projected at $630,000 (an increase of 12.5%). The growth of this fund is largely the result of continuing commercial development and population growth in Anna. General Fund operating expenditures for the 2014-15 fiscal year total $4,509,564 reflecting a 90A increase over the previous year's budget. In order to maintain quality service delivery as our population continues to grow, the General Fund budget proposes the addition of the following new positions: • One new Accountant will be added in the Finance department to assist with improving internal controls, provide more timely and accurate financial reporting, and allow existing staff more time to focus on hu- man resources, purchasing, and budget analysis. • One new day time Fire Fighter will be added to the Fire department to provide more coverage during the daytime when volunteer fire fighters are typically at work and unable to respond to calls for service. • One new supervising Sergeant will be added to the Police department. The existing supervising ser- geant works during the day and is not always available during the evening and night shifts when call volumes increase. The addition of the new Sergeant position will enhance officer accountability. DEBT SERVICE FUND The Debt Service Fund is a special fund established to account for the accumulation and expenditure of re- sources for payment of principal and interest on tax supported bond debt. Bonded debt includes general obli- gation bonds, certificates of obligations, and combination tax and revenue certificates of obligation. The prin- cipal sources of revenue are assessed property taxes, as established by ordinance, and transfers from other funds. The City of Anna currently holds just over $3.9 million in outstanding tax supported debt. An additional $12.4 million in outstanding debt has a tax pledge but is supported by water and sewer revenues. The $12.4 million in debt was issued for water and sewer infrastructure projects and is payable from water and sewer revenues; however, to obtain more favorable financing terms, the debt has a tax pledge. Total revenue in the Debt Service Fund is budgeted at $527,104. Expenditures in the Debt Service Fund total $442,302; however, $84,802 of the revenue generated from the debt service tax rate will be transferred to the Water & Sewer Fund. The Water & Sewer Fund accounts for some debt that was financed with an underlying tax pledge and can be supported by debt service fund revenues. The Water & Sewer Fund has a planned debt refunding planned that will result in excess revenues of $84,000. This excess revenue will be transferred to a Building Capital Fund and reserved for future facility projects. In order to keep the Debt Service tax rate stable, the City of Anna and First Southwest, our financial advisor, developed a series of planned refundings of existing debt to maintain the current Debt Service tax rate through 2026. This plan is based upon very conservative assumptions in growth of the property tax base and interest rates. Additionally, the planned refundings are scheduled to coincide with interest rate resets and, where pos- sible, refunding bonds that are callable and advance refundable. In this way the plan will minimize the present value cost to the city. Refunding and restructuring of debt is scheduled to occur in 2014, 2016 and 2017. WATER AND SEWER FUND The Water and Sewer Fund in an enterprise fund that accounts for the water, sewer and solid waste services that are provided to city residents and a few customers located outside the city limits. All activities to maintain these services are accounted for in this fund, including operations, maintenance, billing and collections, admin- istration, financing, and related debt service. The Water & Sewer Fund includes the Water, Sewer, Solid Waste, and Utility Billing departments. The Water &Sewer Fund's principle source of revenues are charges to customers for water consumption, wastewater collection, refuse collection, and fees related to providing consumers with new water and wastewater services. Total fund revenues for the 201445 fiscal year are estimated at $5,516,491 (an increase of 9%) and total expenditures are budgeted at $5,483,367 (an increase of 9%). The Water and Sewer Fund budget proposes the addition of one new Construction Inspector position in order to allow the City greater oversight over the construction of new public infrastructure projects (water, sewer, streets drainage) before the City accepts ownership of the infrastructure improvements. Construction inspec- tions are currently contracted to a third party and funding for the new position would come from funds used to pay for third party inspections. Currently the Utility Fund holds just over $26.6 million in outstanding debt. The City has worked closely with our financial advisors, First Southwest, to develop a sound debt management plan for the Utility Fund. Look- ing to the future, the City anticipates a spike in debt service in 2015 and again 2019. In order to appropriately manage Utility Fund debt, the City and First Southwest developed a plan to take ad- vantage of call dates and pursue advance refundings of the City's outstanding Utility Fund debt. Every effort has been made to minimize the present value costs to the City. The current plan makes very conservative as- sumptions regarding interest rates and was reviewed and analyzed in conjunction with a utility rate study to evaluate the current water and sewer rates. The City anticipates refunding debt in the fall of 2014 to take ad- vantage of the current market conditions. This will ease some pressure on future water rates. This plan also includes additional refundings to occur in 2017. Depending on market conditions and the City's growth, the two refunding are slated for mid -summer and late fall of 2017. These refundings will also free up cash and re- duce pressure on utility rates. In order to ensure that our utility rates will continue to support our operating costs and debt service obliga- tions, Staff hires a rate consultant to evaluate our utility system operation costs and debt payments, and rec- ommend any rate adjustments that would be necessary to fully fund the cost of operating our system while maintaining an adequate financial reserve. The 2014-15 budget does not include any increase in water and sewer rates. However, due to the continuing drought and required water conservation program, the average amount of water sold on a per customer basis has declined. It is expected that water and sewer rates will need to be adjusted within one or two years in order to fund an increase in utility debt service obligations that begin in 2019 and continue through 2022. This budget does not include utility system depreciation costs which ideally we would fund on an annual basis to pay for system replacement. The city 's auditor will make adjustments for depreciation expense in the city's annual audit. 7 CAPTIAL IMPROVEMENT FUND The Capital Improvement Fund accounts for financial resources to be used for the acquisition or construction of major capital facilities. The budget for these projects are independent of the operating budget and are typi- cally funded with bonds, grants, fund balance, special restricted revenue or other sources of capital from devel- opers or other private investment. Project FY 2015 Budget Funding Source Preliminary Architectural Services for new City Hall TBD General Fund -Fund Balance Surface Water Blending Phase III $1,592,679 2012 & 2014 Certificates of Obligation Wastewater Treatment Plant Upgrades $715,000 2012 Certificates of Obligation Hackberry Elevated Storage Tank $1,170,950 2014 Certificates of Obligation Water Line Improvements $788,369 2014 Certificates of Obligation Water Disinfection System Improvements $330,000 2014 Certificates of Obligation Ferguson Parkway Expansion Project $1,062,824 Yz Collin Co. Road Bonds, and Y2 Developer Participation Lakeview Park $162,200 Developer Participation RESTRICTED REVENUE TRUST FUNDS The City has established a number of Trust Funds the uses of which are restricted to certain pre -determined expense categories. The following is a summary of the revenue and expenditures that will be budgeted in the various Trust Funds. Revenue DEPARTMENT FY 2015 PROJECTED REVENUE WEST CROSSING WATER TRUST $100,000 WEST CROSSING SEWER TRUST $100,000 WATER & SEWER IMPACT FEE TRUST $140,000 NORTHPOINTE WATER TRUST $20,000 NORTHPOINTE SEWER TRUST $20,000 NORTHPOINTE PARK TRUST $7,500 PARK TRUST $67,750 STREET CAPITAL IMPROVEMENT TRUST $57,500 FIRE DEPARTMENT TRUST $2,500 COURT BUILDING SECURITY FUND $1,700 COURT TECHNOLOGY FUND $2,250 CHILD SAFETY FUND $10,000 Expenditures FY 2015 DEPARTMENT DESCRIPTION EXPENDITURES COURT BUILDING SECURITY FUND $3,000 Police overtime for court security COURT TECHNOLOGY FUND $2,050 Brazos ticket writer software licensing and support Dues for the Child Advocacy Center ($7,500); school CHILD SAFETY FUND $17,000 zone safety signs ($9,500) Mobile restroom rental for Slayter Creek Park ($9,000); Restroom for Natural Springs Park PARK TRUST $125,900 ($48,400); Trash enclosure for Natural Springs Park ($8,000); Gazebo at Natural Springs Park ($60,500) CLOSING While budgets are always a challenge, we have worked diligently to propose a budget that is both balanced and sufficient to meet the needs of the coining fiscal year. The staff of the Finance department has put tremendous effort into the development of this document, and I would like to thank them and each department director for their hard work during this process. We express our appreciation to the City Council for your diligent efforts throughout the year in providing guidance, direction and support for our efforts to serve the citizens of Anna. As Anna continues to grow, the city remains committed to the Hometown ideal outlined in its Strategic Vision, The FY 2015 budget is designed to preserve and enhance the quality of existing services and respond appro- priately to our city's continuing growth and development. Respectfully Submitted, Philip Sanders City Manager 5 James T. Cook Place 1, Deputy Mayor Pro-Tem Lauren Lovato Place 2 John Beazley Place 3 Kenneth Jenks Chief of Police/Deputy City Manager Clayton Fulton Director of Finance Natha Will<ison City Secretary Michael Crist Mayor Philip Sanders City Manager Chad Barnes Place 4, Mayor Pro Tem Nathan Bryan Place S Dick Dowd Place 6 Maurice Schwanke Director of Planning and Development Robert Woods Director of Public Works Tim Gothard Fire Chief 10 Mayor and City Council Cit Munici al Cit Cit Boards and Y p Y Y Attorney Judge Manager Secretary Commissions Assistant to the City Manager Police a Finance ■Public Worlcs ■Planning and ■ Fire Development Crime � Payroll and ' Water I ' Fire Treatment & Planning Prevention Accounting Prevention Distribution Human Wastewater Development Fire Patrol Resources Collection & Review Suppression I ' Treatment I ' Criminal � Utility � Street � Building � Fire Safety Investigations ' Billing � Maintenance � Inspections � Education Comg unity .; Municipal ■; Park � Environmental � Code Pro rams Court Maintenance Health Enforcement Animal � Information � Recreation Control Technology � Programs Custodial Services Construction Inspections OUR COMMITMENT In order to enhance the quality of our community, the City of Anna is committed to principles of open and fair government and progressive planning that honor the public trust, protect our common resources, and pro= mote a safe, sustainable, and connected community. WHO ARE WE? The City of Anna is a municipal organization that includes the City Council, Staff, Boards and Commis- sions, and any other entities who act on their behalf. WHY DO WE SERVE? We exist to act on behalf of the citizens in a way that enhances the quality of our community. WHOM DO WE SERVE? We serve ALL members of the community including current and future citizens, businesses, property owners, and any other individuals or organizations who comprise "the community of Anna". WHAT IS OUR COMMITMENT? Our decisions and actions will be consistent with principles of open and fair government and progres- sive planning. HOW DO WE HONOR OUR COMMITMENT? We will honor the public trust and will be open, fair, consistent, and professional in all our dealings. We will protect the resources that have been entrusted to us, and will be prudent in the expenditure of public funds and the exercise of regulatory powers. We will promote a safe, sustainable, and connected community consistent with the model to which we aspire. 12 OUR STRATEGIC VISION ANNA IS OUR HOMETOWN. In order to protect and pro- mote our community vision, we will implement policies that. * Promote the development of a full service community * Encourage small business development �k Foster an environment that encourages multi -generational living * Exercise responsible stewardship over natural resources, and promote sus- tainable development * Promote a strong sense of community pride �k Facilitate access to state-of-the-art technology * Support the growth of a high quality education system * Enhance the safety and security of our citizens 13 STRATEGIC GOALS AND OBJECTIVES * Attract Professional Jobs * Improve Curb/Aesthetic Appeal �'r Promote Downtown Development � Encourage Retail Development � Create a Brand Identity for the City of Anna Diversify the City's Housing Stocl< � Upgrade City Offices and Facilities 14 YIOUeU NDMEI'OWN � � • �• � � � • � � • � • • • �•• • • •• v. ... v • • � �. • v. �. v T FY 2015 Strategic Plan Implementation Strategy Attract Professional Jobs 1. Develop and implement strategies for providing access to broadband fiber that will support the needs of residents and technology based businesses • Identify and facilitate opportumities to extend fiber to serve commercial areas and new resi- dential development 2. Develop and implement strategies for attracting jobs in the medical industry (medical plaza, minor emergency care) • Cultivate relationships with medical groups and hospitals that could potentially locate in An- na as we grow 3. Identify skill sets/degrees/ experience that are needed to build the professional workforce in Anna • Survey existing Anna businesses, and other businesses in the medical and IT industries to iden- tify the skill sets/degrees/ experience they need in their workforce 4. Develop a high tech business parkin Anna • Make site visits to successful tech business parks in the area and create list of standard crite- ria for the development and location of a successful tech business park Improve Curb/Aesthetic Appeal of our Community 1. Facilitate reconstruction of the FM 455/US 75 Interchange • Worlt with TxDOT to complete constructions plans for the FM 455/US 75 Interchange Project • Work with governmental partners to secure funding sources) • Work with governmental and private partners to assist with ROW acquisition 2. Develop plans for improving the SH 5 and 4th Street streetscapes in the Downtown District • Worlc with governmental partners to identify potential funding sources for improvement to the State Highway 5 corridor • Develop schematic design for 4th Street streetscape improvements 3. Improve and expand the City's parks and opens spaces • Finalize acquisition of land for Slayter Creelr Trail, Phases 3 a�ld 4 • Finalize agreement for the construction of Lakeview Park • Develop concept plan for a community dog park • Construct alternate restroom at Slayter Creek Park 4. Promote community functions that foster civic pride • Continue to partner with the GACC to support and sponsor community events 15 Promote Downtown Development 1. Develop an incentive program for development/redevelopment in the Downtown District • Initiate downtown development/redevelopment incentives program study 2. Promote a "park and play" atmosphere in the Downtown District • Develop a vehicle and pedestrian mobility plan for the Downtown District • Work with property owners to develop and support strategies for a local farmers market Promote Retail Development 1. Develop and adopt development regulations for "small area plans" for the major retail districts (US 75 and FM 455) • Develop small area plan for US 75 corridor • Work with governmental partners to promote reconstruction of the US 75 corridor 2. Develop standards and guidelines for retail incentive programs • Create an Economic and Fiscal Impact Analysis application specific to retail businesses 3. Develop and implement strategies for recruiting retail development • Continue collaboration with developers and land owners to identify and promote retail devel- opment opportunities within the City of Anna Develop a Brand Identity for the City of Anna 1. Create comprehensive brand and brand implementation plan for the City Diversify Housing and Neighborhood Options 1. Promote the development of residential neighborhoods that include a range of housing types and options • Develop a list of criteria or a model for sustainable neighborhood design and development, consistent with the City'sgoals • Work with governmental and private partners to extend the FM 4S5 expansion/ reconstruction west of US 75 2. Promote the construction of mid -range priced or "move -up" residential homes • Lookfor opportunities to renegotiate or revise existing residential entitlements in order to promote construction of higher value residential neighborhoods Upgrade City Facilities and Infrastructure 1. Develop options for the construction of a new City Hall and remodel/expansion of the existing Fire Station (focus on options within the Downtown District); and acquire land for new facilities • Solicit architectural services to develop a concept plan and detailed cost estimates for new City Hall and Fire Station Facilities 16 • Develop fi��a►lcing plan and schedule to fund City Hall and Fire Station projects 2, Make improvements to City infrastructure that are necessary to accommodate the growth of our community • Commence Construction on Phase 3 of the Surface Water Blending Project • Construct Water Disinfection System Upgrade • Commence construction or1 the Hacicberry Elevated Tower Project • Construct Wastewater Treatment Plant Upgrade Project • Commence Construction on the FM 455 Reconstruction Project (TxDOT) • Develop plans for US 75 Utility Relocation Project • Construct Ferguson Parkway Expansion Project (Lakeview Estates) • Develop construction plans for the FM 455 West Reconstruction Project (TxDOT) 17 Date of Incorporation 1913 Date of Home Rule Charter Adoption May 7, 2005 Form of Government Council/Manager Estimated Population as of January 1, 2014 10,350 Area in Square Miles 15 Planning Area in Square Miles (including ETJ) 62 Fire Protection Number of Full Time Equivalents 5 Number of Volunteers 30 Calls for Service (entire Fire District 2013 Calendar Year) 1160 Fire Inspections (2013 Calendar Year) 172 Police Protection Sworn Police Officers 12 Civilian Employees 1 Calls for Service (2013 Calendar Year) 91200 Adult Arrests (2013 Calendar Year) 287 Water and Sewer Utility Active Residential Accounts 4,008 Active Non -Residential Accounts 158 Average Daily Water Consumption (2013) 772,487 Ground Storage Capacity (gallons) 2,500,000 Elevated Storage Capacity (gallons) 500,000 Production Capacity (gallons per day) 21390,400 Pump Capacity (gallons per minute) 1,660 Waste Water Treatment Capacity (gallons per day) 7501000 Building Permits Residential Building Permits (2013 Calendar Year) 305 Residential Market Value $418,100,766 Non-residential Building Permits 8 Non-residential Market Value (2014 Certified Tax Roll) $250,500,723 Parkland Acreage Acres of Developed Parkland 64 Acres of Undeveloped Parkland 88 �3 Introduction: The annual budget is the single most important financial responsibility of a local government. Citizens are able to see how city officials and staff plan to spend taxpayer dollars. Once the budget is adopted, funds may only be spent in a manner consistent with the stated plans, objectives, and policies outlined in the budget unless amended in accordance with the City Charter and by approval of the City Council. The budget begins with a transmittal letter written by the City Manager to the City Council. This letter is to officially present the budget to the City Council and provide a general overview of budget conditions and trends for the City of Anna. The budget is divided into four specific sections: introduction, financial/operational summaries by fund, com- ponent units, and supplemental information. The introduction contains the transmittal letter, policy state- ments to guide City officials and staff, and an overview of budget practices and administration within the City of Anna. The financial/operational section of the budget will contain specific information on each fund and subsequent departments the City operates. Activities, services, goals, and objectives will be outlined for each department. Comparisons of revenue and expenditures will be presented for the actual amounts from the previous fiscal year (FY), the current FY budget, the current FY estimate, and the proposed budget for the up- coming FY. General Budget process, practice, and administration: The budget follows a FY beginning on October 1 and ending on September 30. Each year the budget is adopted by the Council, which sets the legal spending limits for the government during the upcoming FY. In order to prepare for and adopt the budget on time, the city must follow a schedule allowing for sufficient time to ade- quately evaluate current and past budgets, current economic conditions, and project revenues and expendi- tures for the upcoming budget. The budget is developed at the department level and adopted at the fund level. Many individuals are involved in the budget process. City officials, department staff, and the public are all in- volved; however, the primary responsibility to assemble and create the document falls upon the City Manager and Finance Director. The City follows a schedule to ensure the budget progresses in a timely manner. Follow- ing you will see a budget calendar the City follows(ed) for the preparation and adoption of this document. Throughout the year the finance department provides periodic and regular reports to department directors. These reports are used to analyze current and projected revenues and expenditures. In this way, department heads are able to control their expenditures, maintain their budgets, and project future expenditures through- out the year. This is crucial to the budget process as conditions and situations may change throughout the year. Once the budget is adopted, it can only be amended under certain provisions established through the City's charter. If amendments are required it is imperative that budget amendments be accurate and only oc- curs when absolutely necessary. In this way, the budget process occurs continually throughout the year; first to ensure that budgets are maintained, second to prepare for any amendments that may be necessary due to unforeseen circumstances, and third to evaluate trends in preparation for the upcoming budget. While the budget is ongoing, the bulk of the work occurs begins at the end of the 2nd quarter of each fiscal year. Beginning in April, department directors update their five year capital improvements plan including up- 19 dating the estimated cost for all projects currently in the capital plan and developing plans for any newly pro- posed projects. By the end of April all projected revenues and expenditures for the subsequent fiscal year are due. Throughout the first 2 weeks of May, the City Manager and Finance Director will meet jointly with each department head to review the department's budget proposal, including the line item details. In connection with staff meetings on departmental budgets, the City Council will begin to meet for workshop sessions throughout April, May, June, and July to discuss departmental budgets, review supplemental requests, and re- view priorities. The meetings with the Council are public meeting where citizens can come to participate and hear each a review on each department's current accomplishments and discuss priorities and goals for the subsequent year's budget. During the time workshops are scheduled, staff will continue to refine the budget as more information be- comes available. Budget requests and priorities are carefully weighed to ensure that city functions and ser- vices will be maintained while allowing for increased services where necessary. Upon conclusion of all depart- ment budget workshops and in consideration of priorities established in the City's Strategic Implementation Plan, staff will present a preliminary draft of a balanced budget to the City Council. Once the Council has re- viewed the preliminary draft, a final workshop will be held in late July before the proposed budget is produced and made available for public review. Once the budget is made available, a public hearing will be held on the budget where citizens can express their views on particular budget items. As will be discussed later, property taxes are a major driver of the City's Budget. The Collin Central Appraisal District (CAD) provides the tax roll with information on the taxable value of properties within the City of Anna. Staff receives periodic reports from the CAD to evaluate trends in the taxable value in order to estimate prop- erty tax revenue. Once certified tax rolls are available from Collin County, the City will finalize the proposed budget including a recommended property tax rate that will allow the city to meet its financial obligations. The certified tax rolls are typically available no later than July 25th, the proposed budget present in late July will include the proposed tax rate to fund the budget. Budget and tax rate hearings occur throughout the month of August with formal adoption of the budget sched- uled for early September. The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distin- guished Budget Presentation Award to the City of Anna for its annual budget for the fiscal year beginning Octo- ber 1, 2013. In order to receive this award the governmental unit must publish a budget document that meets the program criteria as a policy document, an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to pro- gram requirements, and we are submitting it to GFOA to determine its eligibility for another award. For more information on the budget process and administration of the budget, please refer to Article 7 of the City of Anna Charter included in the supplemental section of the budget. 20 z1 n, 0 x 0 M=j M 'co u T LL V N F. -O C_ C � c ro @ � ro in @ T cu C @ O � � U Q co N Ln N 0)N N q nl 00 cq i O N N n r a) N L w o U m a Q o a rn a ro a r o > LO U s m 3 m o LL c m E .T E Q U) � C) * V CO N M co N M f� N LL N 0) (D N OM 0 N N n r N co b a� 0 N Q N M w o U m a Q o a rn a ro a r o > LO U s m 3 m o LL c m E .T E Q U) � C) * V CO N M co N M f� N LL N 0) (D N OM 0 N N n r N co b a� 0 N Q N M N � @ o m 2 Q N @ m :E CL N U @ � D) N N a O O a Y o CE m o � N r © c•1 i`i N N N TI m ^z N J © W N © N N co O b N N 00 m O @ O x c � b CZ N V f`! y co to r N WFM O MIT .�- N VJ N W (0 N O M N N r� ft - 4J C•1 N r N N © <D M O N Q N N N © r co N N d' X V X 0 1= c o - a� c U 5 (0 � N N N N Description of Fund Structure The budget is organized by funds with departments and line items all rolling up to the fund level. A fund is generally defined as a fiscal/accounting entity with its own set of self -balancing accounts. Each fund can be presented independent of the other funds to illustrate that funds' purpose for specific activities. The City of Anna deploys Governmental and Proprietary Funds. Governmental funds are used for the bulk of the activities carried out by the City. The focus of Governmental funds is the flow of current financial re- sources. The Governmental funds account for services like Police and Fire in the General Fund, as well as debt in the Debt Service Fund, capital projects in the Capital Improvements Fund, and restricted/special revenues. Propriety or Enterprise funds focus is that of a business which charges a fee to cover the cost of providing goods or services. The Utility Fund, which accounts for water, sewer, and trash services provided to the citi- zens of Anna, is an Enterprise Fund, Governmental Fund Types General Fund - This is the primary operating fund for the City. The General Fund revenue is from taxes, fees, fines, licenses, etc. General Fund expenditures are for typical municipal services such as Police, Fire, Ambu- lance, Parks, Streets, and Administration. Debt Service Fund - This fund accounts for all the long term debt supported by taxes and issued to support governmental fund type activities. A portion of the property tax levy (Interest and Sinking Rate) is dedicated to support this fund. Principal and interest payments on long term debt are found in the Debt Service Fund. Capital Improvements Fund -This fund accounts for major capital projects and improvements such as streets, sidewalks, park projects, etc. Revenues for this fund are restricted for the project. Revenue sources include bond proceeds, fund transfers, grants, and intergovernmental revenue from other governmental entities such as TxDOT and Collin County. Restricted Revenue Trusts Funds- With the exception of capital projects, this accounts for revenue sources that are legally restricted to expenditures for a specific purpose and in accordance with the enabling legisla- tion. Currently these trusts are accounted for in the general fund and reported in the audited as restricted fund balance. Proprietary/Enterprise Fund Types Utility Fund -This fund accounts for the operation and maintenance of the City's water and waste water utility system and the contract for solid waste collection services. This fund is financially supported solely by user charges for utility and trash service. The typical measure of financial health for each fund is the fund balance at year end. The fiscal policies which are presented in the supplemental information section of the budget will discuss those measures in more de- tail. A consolidates schedule of revenues and expenditures by fund as well as a schedule of estimated and pro- jected fund balance is below. 23 FY 15 Consolidated Financial Schedule As discussed above, City resources are accounted for by fimd. The following sections will review each fund and subsequent department in detail. The following table illustrates sources and uses of funds by the entire City. With the exception of the Utility Fund, all fund units have sufficient revenue to cover expenditures. The Utility Fund includes capital projects related to our water and sewer infrastructure. In late 2012 and early 2014, the City issued bonds for water and sewer infrastructure projects. These bond funds are held in reserve to complete the proposed projects. The Utility Fund will not run a deficit in FY 15; bond proceeds held in re- serve will fund the proposed infrastructure projects in the Utility Fund, Debt Capital Component Combined General Restricted Utility Service Improvements Units Totals Revenues Property Tax $2,788,561 $527,104 $3,315,665 Other Taxes (Sales and other) $995,000 $630,000 $11625,000 Development $379,300 $379,300 Fines $100,000 $3,950 $103,950 Intergovernmental $108,925 $10,000 $531,412 $650,337 Water Sales and Fees $2,961,699 $2,9611699 Sewer Sales and Fees $1,691,490 $1,691,490 Trash sales and Fees $710,000 $710,000 Transferin $84,000 $153,302 $237,302 Fund Balance Allocation $10,800 $100,000 $110,800 Bond Proceeds $0 Grant Revenue $0 Impact/Developer Fees $135,250 $380,000 $515,250 Contributed Capital $693,612 $693,612 Other $145,555 $84,500 $230,055 Total Revenues $4,517,341 $527,104 $160,000 $1,409,024 $5,896,491 $714,500 $13,2241460 Expenditure/Expense Payroll $2,880,470 $1,052,014 $3,932,484 Supplies $238,852 $110,550 $5,600 $355,002 Maintenance $126,800 $349,100 $475,900 Services $1,105,810 $12,550 $100,000 $2,075,442 $459,330 $3,753,132 Capital Expenditures $157,632 $135,400 $1,225,024 $4,602,348 $165,000 $6,285,404 Other Uses of Funds $0 Transfer Out $84,802 $84,000 $168,802 Debt Service $442,302 $1,806,911 $2,24%213 Total Expenditure/Expense $4,509,564 $527,104 $147,950 $1,325,024 $10,080,365 $62%930 $17,21%937 24 �r M O M r1 tD O� �D 1� N rl N rl N I� pl M Q 1� r1 N O LL O N ul ol�` M LOf 0 rl M 61 Q M rl rl � N� Q rl N N O M M Q IA rl 0 C y � N ri N ri Q Alt M M t} N' C LL to rQj N E V 1� N Of h M f� Np O 'D O 01 W ' Ol �p O N O 0Q0 O1 ' O rl pp0 O M lD W 1'j N rl N N rl R W M N Q rl rl LL ,'Qy 'O p O I I k d 00 r M t LL O Q 1 p 1. r 1 1 f r m^ o pQ a} LL m E O V _ N r p F I I j O M N n i ml 0 O V1 O ul ur' Ni Q 'pt p I I • I I d o o pop ti G T 1� rl M v1 M O t 0 W 'y p, LL p N n` I r k 7 } N rl lff rj r4I/1 LL to N r nt t� N ' I I' I n n 00 N N .ti Ol M 00 00 LL N Vf •-1 '-1 r N Q i k r I� � M E a d a d o r r r 00 r pp ro c,Qi Y N M 00 E LL v e M to 00 LL N V 1� N ti Q Q ti N H d 9 °LL o p LL m' W y N N M N Q N H N N VJ a rl p O a ti LL O a` d u_ n m ,a v � m � Q M N Q V N u Q 00 RqJ rt rl p LL O o` •d.. O V1 M O O ' ' ' ' ' r ' ' ' O Ql O M O M V1 N m tD rl •-I e� lD Q C r1 Q O1 n �1 LL Q N e-1 FT to m o NO r 0000 M m m e� o 00 vt n LL N MI N r--I N Q Y N 5 0 a o K d a _v�d�N�W zct IL Schedule of Fund Balance 2013 Audited Fund Balance 2014 Projected Fund Balance 2015 Proposed Fund Balance CHANGE FY13toFY14 General Fund $2,620,744 $2,321,015 $2,440,473 5% Restricted $232,160 $355,038 $359,943 1% Committed $558,127 $135,520 $142,296 5% Assigned $0 $0 $100,000 N/A Unassigned $1,830,457 $1,830,457 $1,838,234 0°° Capital Improvements Fund ($87,302) $0 $84,000 N/A Restricted $0 $0 $0 N/A Committed $0 $0 $84,000 N/A Assigned $0 $0 $0 N/A Unassigned ($871302) $0 $0 N/A Utility Fund $6,890,185 $11,339,064 $5,ti49,840 -50% Working Capital $5361645 $634,381 $667,505 5% Restricted Cash for System Im- provements $6,353,540 $10,704,683 $4,9821335 -53% The Governmental Accounting Standards Board (GASB) has issued a statement regarding the classification of fund balance. Fund balance in the Governmental Funds is classified as nonspendable, restricted, committed, assigned, and unassigned. The City currently has no fund balance classified as nonspendable. Restricted funds include those restricted to a specific purpose such as park trust fees. Committed funds are those committed by council action as contingency appropriation performed by ordinance. Assigned funds are those intended for specific projects and are not restricted or committed. While the Capital Improvements Fund showed a negative fund balance in FY 13, it will be corrected in FY 14. This the result of accounting for ongoing capital projects in the Capital Improvements Fund that should have been accounted for in the Utility Fund. These corrections have been made in FY 14. The proposed committed fund balance of $84,000 is the result of a transfer from the Utility Fund to support future capital and other fa- cility needs in the City of Anna. The Utility Fund does not report fund balance; the focus in the Utility Fund is working capital, or the short term assets available after covering short term liabilities. For the purposes of this schedule, restricted cash for system improvements includes impact/developer fees and bond proceeds from the 2012 and 2014 bond issue to fund water and sewer system improvements. 26 General Fund FY 11 FY 12 FY 13 FY 14 FY 15 City Manager 1 1 1 1 1 EDC/CDC Director 0.5 0.5 0.5 0.5 0.5 Assistant to the City Manager 0.5 0.5 0.5 0.5 0.5 The schedule on the right in- Receptionist 0.5 0.5 0.5 0.5 0.5 cludes the staffing levels for the City Secretary 1 1 1 1 1 Finance Director 1 1 1 1 1 entire City since FY 11. Each nUm- Accountantll 0 0 0 0 1 ber represents a Full Time Equiva- Finance/audgetAnalyst 0 0 0 0 1 lent (FTE) rather than an actual HRAdministrator 0 0 0 0 1 Finance/HR Supervisor 1 1 1 1 0 individual or person. For example, Payroll/Accounting Assistant 1 1 0 0 0 the seasonal laborer position is HRCoordinator/Finance Assistant 0 0 1 1 0 actually 2 people employed for Director of Planning 1 1 1 1 1 only a portion of the year. The Planner 11 0 0 0 1 1Planner1 1 1 1 1 1 two individuals would equate to Code Enforcement Officer 1 1 0 0 0 one full time equivalent. Administrative Assistance 0 0 1 1 1 Fire Chief 1 1 1 1 1 Fire Marshal 1 1 1 1 1 Fire Captain 0 0 3 3 3 The General Fund is adding an Fire Fighter 2 2 1 1 2 Accountant, a Police Officer, and a Police Chief 1 1 1 1 1 Crime Scene Technician 1 1 0 0 0 Fire Fighter, There IS also reClaS- Records Administrator 1 1 1 1 1 sifications proposed within Police, Police Lieutenant 0 0 0 0 1 Finance, and Municipal Court. This Police Sergeant 1 1 1 1 2 is a net gain of 3 FTE's in the Gen- Police Officer 9 9 10 10 10 Court Administrator 0 0 0 0 1 eral Fund. Municipal Court Clerk 1 1 1 1 0 Park Superintendent 1 1 1 1 0 Crew Leader - Parks 0 0 0 0 1 Maintenance Laborer 0 0 0 1 1 The Utility Fund is adding aCon- Seasonal Laborer 0 0 0 1 0 struction Inspector and reclassify- Total General Fund 28.5 28.5 30.5 33.5 36.5 ing a vacant position to create a Utility Fund Water/Waste Water Superinten- Director of Public Works 1 1 1 1 1 Administrative Assistant 1 1 1 1 1 dent. The net gain in the Utility Water/Waste Water Super. 0 0 0 0 1 Fund is 1 FTE. Construction Inspector 0 0 0 0 1 Field Supervisor -Public Works 1 1 1 1 1 Crew Leader - Public Works 1 1 1 1 1 Equipment Operator 1 1 0 0 0 Maintenance Laborer 4 4 5 8 7 Seasonal Laborer 1 1 1 0 0 Senior Wastewater Operator 0 0 0 1 1 Wastewater Operator 2 2 2 1 1 Customer Service Supervisor 1 1 1 1 1 Senior Customer Service Rep. 1 1 1 1 1 Customer Service Rep. 1 1 0 0 0 Receptionist 0.5 0.5 0.5 0.5 0.5 Total Utility Fund 15.5 15.5 14.5 16.5 17.5 Total City Operations 44 44 45 50 54 27 The City of Anna finances its general fund activities from three types of revenue; taxes, fines & fees, and user charges. These include property and sales taxes, licenses & permits, and fines. Beneficiaries of General Fund Services are not generally required to pay a fee commensurate with the value FY 15 Proposed General Fund Revenue of the services received. The top three Intergovernmental 2e�other Fire revenue sources are (1) property taxes, court r2 %29/c (2) sales tax, and (3) development fees. Franchise Tax 2% The 3 sources comprise over 80% of FY 8% r 15 revenue. Propert, The Ad Valorem Property Tax revenue (62%) is a function of the tax rate the City formally adopts each year. The Collin Central Appraisal District (CCAD) establishes the value of each property with the City of Anna and the City ap- plies the maintenance and operations portion of the rate to the certified value Development 8% Property Tax 62% , provided by CCAD. The certified taxable assessed value is $510,888,32. This represents an increase of 18.6% and is due, in part, to the addition of over $37 million in new value and an increase of approximately 10% in the taxable assessed value of existing properties. Beginning in 2009 the taxable value of existing properties declined an average of over 3% per year through 2012. During this span nearly $60 million in new value was added; however, existing properties were losing value faster than new value could make it up. From 2009 to 2012, the average value of a residential home- stead dropped 11%. Property values eventually stabilized in 2013 and eclipsed the peak value from 2008 with residential homesteads seeing Taxable Value Over Time modest appreciation. 600,000,000 The 2014 certified taxable as- 500,000,000 sessed value illustrates that exist- ing properties have not only re- t00,000,000 tained their value since 2013 they 300,000,000 have also seen market apprecia- tion. We are guardedly optimistic 200,000,000 this recent trend toward market appreciation will hold steady in the 100,000,000 coming years. We have also seen an increase in the number of single 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 family building permits issued m since the beginning of the year; however, this increase in growth drives increased demand for municipal ser- vices primarily funded by property taxes. The FY 15 budget includes costs for increased personnel to meet the growth driven demand for services. The following table details the change in taxable assessed value, tax rate (s), and property tax revenue over time. Tax Year Assessed Value Total Tax Rate M&O Rate Debt Service Rate Total Property Tax Revenue 2000 $29,991,809 0.5299 0.2563 0.2735 $150,809 2001 $35,320,292 0.5799 0.1511 0.4288 $182,838 2002 $52,462,163 0.4997 0.4997 0 $288,103 2003 $79,351,888 0.4997 0.4997 0 $407,430 2004 $136,234,607 0.4997 0.4997 0 $693,504 2005 $211,5081957 0.525 0.525 0 $1,148,140 2006 $288,590,455 0.525 0.4386 0.0863 $1,541,817 2007 $3561238,071 0.575 0.4667 0.1082 $2,015,950 2008 $383,961,925 0.575 0.4794 0.0955 $2,2071626 2009 $378,153,710 05622733 0.529939 0.0928 $2,354,888 2010 $365,119,804 05650332 0.554225 0.096107 $2,374,491 2011 $362,969,678 0.650332 0.559367 0.090965 $2,360,508 2012 $376,578,308 09650332 09559367 0.090965 $2,449,009 2013 $430,704,884 0.650332 0.559367 $21801,012 _0.090965 Below is a summary of the FY 14 adopted tax rates of our comparison cities: 0.800000 0.700000 0.600000 0.520000 0.500000 0.400000 0.360000 0.300000 0e200000 00100000 0 V 000000 Fairview Prosper City Tax Rate (Tax Year 2013) 0.645000 0.649000 0.664971 0.594869 0.610000 0.698000 0.738999 Van Melissa Celina Anna Little Elm Royse City Princeton Alstyne 29 Sales Tax: Sales tax revenue accounts for 14% of General Fund Revenue. The City currently levies a 2% sales tax that is in addition to the 6.25% the state levies. Of the 2% City levy, 1% is allocated to the general fund while the re- maining 1% funds the Economic and Community Development Corporations. As the City has $700,000 grown, so has the sales tax base. $600,000 Since 2008 the City has seen av- erage annual sales tax growth of $500,000 12%. In spite of the growth in $400,000 commercial development, the forecast for FY 2015 is con- $300,000 servative based upon the uncer- $200,000 tainty in the national economy $100,000 and a slowing trend in sales tax growth based upon the most $- recent years. FY 2011 sales tax revenue was Sales Tax Revenue 2009 2010 2011 2011 2012 2013 2014 2015 Adj. Est. Prop. adjusted down to account for an economic development incentive between the City of Anna and a local home bWider. The incentive expired in late 2011 and the numbers are adjusted to account for actual sales tax reve- nue in the General Fund. The City continues to partner with its Economic Development Corporation to recruit business to Anna that will be successful and contribute to our sense of community. General Fund Sales Tax Revenue Fiscal Year Sales Tax Revenue % Change 2000 $37,586 4106% 2001 $43,827 16.60% 2002 $61,160 39.55% 2003 $79,132 29.38% 2004 $115, 843 46.39 % 2005 $155,399 34.15% 2006 $225,886 45.36% 2007 $293,934 30.12% 2008 $336,730 14.56% 2009 $384,642 14.23 % 2010 $433,375 12.67 % 2011 $515,381 18.92% 2011 Adjusted $466,420 7.62% 2012 $516,025 10.64% 2013 $574,679 11.37% 2014 Estimate $620,000 7.89% 2015 Proposed $630,000 1.61% Development: Development revenue is driven by building activity in the City. Development revenue is a combination of building permits, zoning fees, plat fees, contractor registration fees, and all other fees related to the permitting and approval of construction activity in the City. The City experienced a sharp decline in building permits from 2006 600 through 2010 that coincided with the recession. However, as the economy has improved nationally and locally, we are seeing an increase in building activi- ty. Much of the increase is attributable to a large inventory of available single family lots. As that inventory diminish- es we expect to see a slight drop in building activity until more develop- ments are platted and approved. We are guardedly optimistic development will continue. The City has been in dis- cussions with developers who have 500 300 100 ilding BuPermits by Year I I I I I I _ M 1 �pti O45o�yti Otiti ti ti ti ti ti ti ti ti ti ti ti ti Otis ti proposed significant new developments and are adding new phases to existing developments. Illustrated below is a brief history of revenue sources for the City of Anna. Proposed revenue for FY 15 is up 10% over the budgeted amount for FY 14. The estimate for FY 14 is based upon performance over the first 3 quarters of the fiscal year including historical and seasonal trends. Property and Sales Tax revenues are both up over 10%. This increase is driven by growth in the housing market and associated growth in commercial development. The biggest decline in revenue is in the Municipal Court and Fire Department. This two departments do not contribute a significant source of revenue to the General Fund. The FY 15 proposed budget amounts more ac- curately reflect current revenue operations of the Court and Fire Department. General Fund Revenue Summary TYPE ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd Property Tax $2,146,922 $2,409,947 $2,409,947 $2,788,561 15.7% Sales Tax $574,649 $560,000 $620,000 $630,000 12.5% Development $539,326 $373,100 $547,850 $379,300 13% Franchise Tax $335,497 $365,000 $360,000 $365,000 0.0% Court $101,775 $130,350 $80,000 $100,000 -23.3% Fire $50,935 $78,000 $57,406 $69,406 -11.0% Intergovernmental $88,738 $120,310 $106,345 $108,925 -9.5% Other $109,037 1 $82,459 $91,337 $76,149 -7.7% Total $3,946,879 $4,119,166 $4,2721885 $4,517,341 10% 31 YIOUAIAOMSi'OWN � � • • r • v. . . v. . . v. ri �'.r v • • v. • v v. • v r v. . . . . . • v. � The General Fund Accounts for the expenditures associated with operating the general government services one typically expects from their municipal government and are funded in part or in whole with property taxes. These services include public safety, parks, streets, planning, and the general administrative support for these services and the City Council. The chart on the right illustrates the percentage of the budget attributed to each department. For FY 15 public safety will account for 52% of the budget. This includes police, fire, ambulance ser- vices, and animal control. The table below illustrates a brief history for each department from FY 13 through FY 15. The table includes actual costs from FY 13, budgeted and estimated costs for FY 14, proposed budget for FY 15, and the percent change from the FY 14 budget. The proposed FY 15 budget has an increase of 9% over the FY 14 budget. The departmental Municipal Court 3% FY 15 Proposed General Fund Budget Administration Ambulance Services 3% City Manager City Secretary �3% 'City Attorney 2% Animal Control Services 1% summaries provide details on the increase. Generally, the 8% increase can be attributed to (1) new positions funded in the budget, (2) market adjustments for wages, and (3) increases in employee benefit costs . These changes are detailed in the departmental summaries that follow. General Fund Expenditure Summary DEPARTMENT ACTUAL 2012-2013 BUDGET 2013=2014 ESTIMATE 2013=2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd ADMINISTRATION $108,406 $170,609 $154,636 $134,328 -21% CITY COUNCIL $38,389 $25,210 $20,210 $28,095 11% CITY MANAGER $254,553 $262,397 $266,045 $279,947 7% CITY SECRETARY $116,173 $111,080 $113,788 $114,906 3% CITY ATTORNEY $83,534 $95,000 $95,000 $95,500 1% FINANCE $234,735 $260,735 $258,120 $359,353 38% DEVELOPMENT $501,750 $485,102 $496,109 $500,926 3% ANIMAL CONTROL $57,663 $57,263 $57,263 $57,263 0% FIRE $559,565 $624,016 $613,639 $735,107 18% AMBULANCE $110,446 $123,683 $123,683 $123,683 0% POLICE $1,274,992 $1,317,560 $1,245,670 $1,441,775 9% MUNICIPAL COURT $102,404 $109,044 $108,710 $116,470 7% PARK $151,773 $213,494 $187,056 $229,990 8% STREET $306,685 $286,631 $278,731 $292,221 2% Total $30901,068 $4,141,824 $4,01%660 $4,5091564 9% 32 Each departmental summary includes its purpose, FY 14 accomplishments, and FY 15 goals. A summary of expenditures are included as well as new programs or noteworthy changes from the FY 14 budget. Expendi- tures are summarized into the following categories: Pa• Payroll expenditures include all the costs asso- ciated with the employees in that department. The payroll category includes salaries and wag- es, overtime, payroll taxes, health insurance, retirement, unemployment, workers compen- sation, and other related payroll costs. CAPITAL EXPEN L Supplies: Supply expenditures include office supplies, MAINTENAN( vehicle supplies, fuel, postage, medical sup- 3% plies, clothing supplies, chemical supplies, pro- tective gear and other consumable items. 5% General Fund Expenditures Maintenance: Maintenance expenditures include maintenance and repair costs for all city assets, equipment, and other city owned property, such as buildings, streets, parks, water and sewer system (in the Utility Fund), vehicles, equipment, etc. Services: Service expenditures include services which the City pays for. Items such as utility costs, telephones, liability & property insurance, employee travel & education, advertising for public notices, etc. This category also in- cludes professional services such as engineering or auditing, and contracted services such as IT services, dis- patch services, legal, animal control, etc. Capital Expenditures: Capital expenditures include items such as machinery, equipment, motor vehicles, building renovations, etc. The table below illustrates how departments will be summarized. General Fund Expenditure Summary by Category ACTUAL BUDGET ESTIMATE PROPOSED % CHANGE 2012-2013 2013-2014 2013-2014 2014=2015 Bdgt/Prpsd PAYROLL $2,303,127 $2,590,115 $2,4021357 $2,880,470 11% SUPPLIES $185,071 $213,454 $216,745 $238,852 12% MAINTENANCE $108,261 $139,912 $137,145 $126,800 -9% SERVICES $1,085,638 $1,063,064 $1,124,779 $1,105,810 4% CAPITAL EXPENDITURES $218,971 $135,279 $137,634 $157,632 17% TOTAL GENERAL FUND $3,901,068 $41141,824 $4,0181660 $4,5091564 9% 33 noun>aoxsrowrr — � � � • �• • •• •• • ••• •• • ••• Purpose/Description The administration department providesgeneral administrative support to all the functions, programs, activities, and projects in the General Fund. These activities have costs not readily assignable to any specific department. Administration covers a number of shared expenses at City Hall (utilities, supplies, etc.) as well as other General Fund expenses (IT services). FY 15 Proposed Admin Budget CAPITAL New and Noteworthy for FY 15 Health Benefits Consultant 'PLIES 7% _MAINTENANCE 4% • This service will allow for a consultant to complete the bid and possible change of health benefits providers. This service will continue through the Fiscal Year to support employees through any changes in health bene- fits. Increased IT services • This will allow for IT to take a greater role in managing aspects of the City's IT infrastructure including greater software and programming support and other enhanced services. Expenditure Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd SUPPLIES $8,625 $9,550 $9,300 $9,250 -3% MAINTENANCE $1,538 $8,300 $8,300 $5,800 -30% SERVICES $97,663 $139,759 $124,036 $118,278 =15% CAPITAL EXPENDITURES $580 $13,000 $13,000 $1,000 =92% TOTAL 10-400E $108,406 $170,609 $154,636 $134,328 -21% 34 Purpose/Description The City Council is the legislative body of the city functioning under a Home Rule Charter adopted May 7, 2005. This department is designed to provide funding related to administration of legislative matters including, profes- sional development of Council members. FY 15 Proposed City Council Budget CAPITAL EXPENDITURES SUPPLIES 5% New and Noteworthy for FY 15 Elimination of membership in in Tex 21 • It was determined that Tex 21 was not providing tangible benefit to the City Funding for a Strategic Retreat is included in the services category Expenditure Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd SUPPLIES $1,441 $1,500 $1500 $1,500 0% SERVICES $36,503 $22,710 $17,710 $25,595 13% CAPITAL EXPENDITURES $445 $1,000 $1,000 $1,000 0% TOTAL 10-403E $38,389 $25,210 1 $20,210 1 $28,095 1 11% 35 Purpose/Description The City Manager oversees the implementation of City Council policies and directives, manages the day-to-day operations of the City, administers the annual operating budget, and promotes the overall interests of the commu- nity, The City Manager advises the City Council on policy decisions and provides leadership to the departments as they implement City policies. The Assistant to the City Manager serves as the Chief Administrative Officer of the City Economic and Community Development Corporations and as the City's public relations manager. FY 14 Accomplishments • Managed the implementation of programs and projects approved in the City's FY 2014 Budget and the FY 2014 Strategic Plan Implementation Strategy • Initiated formal application for City of Anna membership in the North Texas Municipal Water District Upper East Fork Regional Interceptor System • Worked with governmental partners to secure funding for right-of-way acquisition for the US/75 FM 455 Interchange Project • Worked with governmental partners to secure a funding pledge for the reconstruction of US 75 from Throckmorton Creels to FM 455 • Worked with TxDOT to develop schematic de- sign for State Highway 5 corridor improvements • Completed an update of the City's Personnel Pol- icy Manual • Initiated renewed employee focus on customer service • Negotiated acquisition of land for Slayter Creek Trail • Negotiated Developer Agreement for the Anna Crossing master planned community • Completed construction of interim office space for Planning and Finance personnel FY 15 Objectives • Oversee implementation of the FY 2015 Strate- • gic Plan Implementation Strategy • Work with the City Council to update the five year Strategic Plan • Work with governmental partners to obtain membership in the North Texas Municipal Water District Upper East Fork Regional Interceptor System • Work with TxDOT to commence construction on the FM 455 Reconstruction Project • Work with TxDOT to complete design and con- struction plans for the US 75 Reconstruction and the FM 455/US 75 Interchange Project • Work with governmental partners to secure con- struction funding for the US 75 Reconstruction and the FM 455/US 75 Interchange Project • Work with TxDOT on the design of entry feature monuments along the US 75 corridor • Work with governmental and private partners to extend the FM 455 expansion/reconstruction west of US 75 Worlc with governmental partners to identify potential funding sources for improvement to the State Highway 5 corridor Finalize acquisition of land for Slayter Creek Trail, Phases 3 and 4 Finalize development agreement for the con- struction of Lakeview Park • Finalize development agreement for the Fergu- son Parkway Expansion Project • Look for opportunities to renegotiate or revise existing residential entitlements in order to pro- mote construction of higher value residential neighborhoods • Close and/or obtain releases on inactive Facili- ties Agreements • Solicit architectural services to develop a con- cept plan and detailed cost estimates for new City Hall and Fire Station Facilities • Continue to promote fiscally responsible practic- es in the management of city operations Expenditure Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd PAYROLL $246,392 $252,877 $257,635 269,922 7% SERVICES $8,161 $8,520 $7,410 $8,725 2% CAPITAL EXPENDITURES $0 $1,000 $1,000 $1,300 30% TOTAL 10406E $254,553 $262,397 $266,045 $279,947 7% 37 YIomU eoxerowx — � � � � • � J ••• •••• � ••• Proposed Budget Breakdown FY 15 Proposed City Manager Budget SERVICES CAPITAL 3/ EXPENDITURES 1% New and Noteworthy for FY 15 Increased payroll costs • The City's costs for insurance and retirement benefits are expected to increase • Market adjustments to wages have been proposed City Manager FTE Schedule Position FY 11 City Manager EDC/CDC Director Assistant to the City Manager Receptionist Tota I FY 12 FY 13 FY 14 FY 15 1 1 1 1 1 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 2.5 2.5 2.5 2.5 2.5 38 0.5 0.5 0.5 0.5 0.5 2.5 2.5 2.5 2.5 2.5 38 Purpose/Description The City Secretary provides administrative support to the City Council and City Manager; attends all the City Council meetings and keeps minutes of the proceedings; works with the City Manager to prepare agendas and support materials for City Council meetings; responds to requests for public information; coordinates City elec- tions; oversees the Records Management Program for the City; and serves as custodian of all official City records. FY 14 Accomplishments • Coordinated the May 10, 2014 General Election • Worked on Records Management Program by scanning, indexing, and making City documents such as ordinances, resolutions, etc. available to staff • Worked with staff and City Attorney's Office on Public Information Requests • Provided support to the City Council by attending all public meetings and hearings, and keeping minutes of the proceedings of all public meetings and hearings • Provided support to City Staff by malting sure official City documents are available to staff • Worked on the Administration Document Management Program • Worked on continuing education requirements for Code Enforcement and Records Management FY 15 Objectives • Coordinate the May 9, 2015 General Election • Work on Records Management Program to scan, index and make old City documents such as ordinances, resolutions, etc. available to staff; and to scan and index new City documents as produced • Work with staff and City Attorney's Office on Public Information Requests • Keep up with continuing education requirements for Code Enforcement and Records Management • Provide support to the City Council by attending all public meetings and hearings, and keeping minutes of the proceedings of all public meetings and hearings • Provide support to City Staff by making sure official City documents are available to staff • Continue to work on Administration Document Management Program, and initiate the Planning and De- velopment Document Management program using SharePoint with RICOH Expenditure Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd PAYROLL $92,486 $94,165 $96,093 $98,616 5% SERVICES $23,687 $16,915 $17,040 $16,290 -4% CAPITAL EXPENDITURES $0 $0 $655 $0 0% TOTAL 10-409E $116,173 $111,080 $113,788 $114,906 3% 39 Proposed Budget Breakdown FY 15 Proposed City Secretary Budget SERVICES 14% New and Noteworthy for FY 15 Increased payroll costs • The City's costs for insurance and retirement benefits are expected to increase • Market adjustments to wages have been proposed to ensure the City can attract and retain a talented work- force City Secretary FTE Schedule Position FY 11 FY 12 FY 13 FY 14 FY 15 City Secretary 1 1 1 1 1 Tota 1 1 1 1 1 1 Purpose/Description The City Attorney provides professional legal assistance and advice Co the City Council, City Manager, and each department. The City Attorney serves as the legal advisor to the City Council and City Manager; represents the City in litigation and proceedings as directed by the City Council and City Manager; reviews and provides legal opinions as requested; serves as the prosecutor in municipal court. The City Attorney is appointed by the City Council and is a contracted service. The City Attorney does not include any personnel costs. No changes expected from FY 14 FY 15 Proposed City Attorney Budget New and Noteworthy for FY 15 Expenditure Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd SERVICES $83,534 $95,000 $95,000 $95,500 1% TOTAL 10411E $83,534 $95,000 $95,000 $95,500 1% 41 Purpose/Description The Finance Department maintains the financial integrity of the city and provides comprehensive and integrated financial management of the day-to-day operations of the city. The Finance Department keeps and maintains fi- nancial records; provides accurate financial reporting; invests public funds in compliance with applicable laws, ordinances, and policies; oversees purchasing, accounts payable, and general human resource administration; and manages the City's information technology support operations. FY 14 Accomplishments • Maintained Anna's Gold Leadership Circle award Identified eligible investments at higher yield r. i for financial transparency Maintained the City's A and A-1 bond ratings Managed the issuance of the 2014 Certificates of than depository contract • Updated the City's pay and classification plan Obligation to fund the Hacicberry Elevated Stor- age Tank and construction of associated water • lines Managed the timely development of the fiscal 2014 audit report and the FY 201S budget Received the GFOA Distinguished Budget Presentation Award Bid out employee health benefits to find poten- tial cost savings Completed space needs assessment for City Hall and other future city facilities Completed job description revisions • Initiated capital asset inventory • Installed Free Public Wi-Fi Service at Slayter Creek Park FY 15 Objectives Maintain Anna's Gold Leadership Circle award Develop a financial procedures manual for financial transparency Receive the GFOA Distinguished Budget PI'esell- tation Award Hire and train a new accountant Improve internal controls Improve efficiency in financial reporting • Strengthen Human Resource operations • Complete the capital asset inventory • Develop financing plan and schedule to fund City Hall and Fire Station projects • Oversee refunding of existing debt as outlined in the City debt management strategy Expenditure Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd PAYROLL $212,391 $228,477 $222,959 $321,945 41% SERVICES $20,874 $31,408 $34,111 $34,508 10% CAPITAL EXPENDITURES $1,470 $850 $1,050 $2,900 241% TOTAL 10-414E $234,735 $260,735 t $25%120 $359,353 38% 42 Proposed Budget Breakdown FY 15 Proposed Finance Budget SERVICES CAPITAL 1 FXPFNnITIIRFS New and Noteworthy for FY 15 Increased payroll costs • The City's costs for insurance and retirement benefits are expected to increase • Market adjustments to wages have been proposed to ensure the City can attract and retain a talented work- force • Reclassify Finance/HR Supervisor and HR Coordinator/Finance Assistant • Proposed Accountant position is funded for entire fiscal year Total budget increase • Accountant position will increase each category in the Finance budget Finance FTE Schedule Description FY 10 FY 11 FY 12 FY 13 FY 14 Finance Director 1 1 1 1 1 Finance/Budget Analyst 0 0 0 0 1 Accountant II 0 0 0 0 1 HR Administrator 0 0 0 0 1 Finance/HR Supervisor 1 1 1 1 0 HR Coordinator/Finance Assistant 0 0 1 1 0 Payroll/Accounting Assistant 1 1 0 0 0 Mal 3 3 3 3 4 43 Purpose/Description The Development Department promotes sustainable development consistent with the City's Strategic Vision through fair, consistent and ethical enforcement of the City's land development regulations. The Development De- partment ensures that new development occurring within the City and its extra -territorial jurisdiction is con- sistent and in compliance with the City's comprehensive plan, zoning ordinance, subdivision ordinance, building codes, and other development regulations. FY 14 Accomplishments • Oversaw the construction and inspection of an an- ticipated 300+ single family homes • Reviewed the civil and building plans for Phase I of the Anna Town Center commercial development. • Completed an update of the City's Wastewater Cap- ital Improvements Plan • Completed an update of the Water and Sewer Im- pact Fee Capital Improvements Plans • Developed Land Use Assumptions and a Capital Improvement Plan for Roadway Impact Fees • Initiated the development of a Downtown Compre- hensive Plan • Managed the regulatory review of several residen- tial development projects including; West Crossing Phases 4 and 5, Lakeview Estates, Oak Hollow Phases 6 and 6A, Anna Crossing Phase I, and Cam- den Parc • Worked with developers on the concept and zon- ing plans for three master planned communities (Anna Crossing, Oakridge Estates and the Villages of Hurricane Creek) • Anticipate moving offices to remodeled Public Works facility by close of FY 2014 FY 15 Objectives • Adopt development regulations for the downtown district. • Initiate downtown development/redevelopment incentives program study • Develop a vehicle and pedestrian mobility plan for the downtown district • Develop schematic design for 4th Street streetscape improvements • Develop a Downtown Signage Plan • Work with property owners to develop and sup- port strategies for a local farmers market • Develop a small area plan for the U.S. 75 commer- cial corridor • Develop a model for sustainable neighborhood de- sign and development. • Look for opportunities to renegotiate or revise ex- isting residential entitlements in order to promote construction of higher value residential neighbor- hoods • Develop a concept plan for a community dog park • Implement a web based GIS platform Expenditure Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd PAYROLL $220,642 $302,100 $253,002 $307,557 2% SUPPLIES $4,004 $5,450 $5,450 $6,150 13% MAINTENANCE $760 $3,800 $3,800 $3,800 0% SERVICES $272,924 $171,027 $231,357 183,269 7% CAPITAL EXPENDITURES $3,420 $2,725 $2,500 $150 -94% TOTAL 10-420E $501,750 $485,102 $496,109 $500,926 3% MAINTENANCE 1% SUF 17a Increased payroll costs Proposed Budget Breakdown FY 15 Proposed Development Budget CAPITAL FXPFNnITI1RFS New and Noteworthy for FY 15 • The City's costs for insurance and retirement benefits are expected to increase • Market adjustments to wages have been proposed to ensure the City can attract and retain a talented work- force Services increase for increased utility costs and other services previously split with Finance and Admin • The new space is larger and does not have finance staff to defray the costs Planning FTE Schedule Description FY 11 FY 12 FY 13 FY 14 FY 15 Director of Planning 1 1 1 1 1 Planner II 0 0 0 1 1 Planner I 1 1 1 1 1 Code Enforcement Officer 1 1 0 0 0 Administrative Assistance 0 0 1 1 1 Total 3 3 3 0 0 45 Purpose/Description Animal control and animal shelter services are currently provided through a contract with Collin County. Services include responding to citizen complaints regarding animal control issues. The contract also allows animals cap- tured within the City of Anna to be housed at the Collin County animal shelter. Animal Control does not have any personnel related costs as it is a contracted service. The contract does not provide pro -active or routine patrols and enforcement ofanimal control ordinances. No changes expected from FY 14 FY 15 Proposed Animal Control Budget New and Noteworthy for FY 15 Expenditure Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd SERVICES $57,663 $57,263 $57,263 $57,263 0% TOTAL 10-525E $57,663 $57,263 $57,263 $57,263 0% Purpose/Description The Fire Department provides professional fire suppression, rescue, fire prevention, fire education, and emergency medical response services to the community of Anna. FY 14 Accomplishments • Improved the community ISO rating from a 4 to a 2 • Received grants for training and equipment from the Texas Forest Service • Worked with Anna ISD on a Fire Prevention Poster Contest (six students won at District meet and were entered at the State level at the June Convention) • Continued the "Operation Santa" community outreach program • Developed and implemented a training action plan • Recruited and retained new and active volunteer firefighters • Developed emergency management training program and training records for all City departments • Completed the Fire Hydrant Testing and Mapping Project • Coordinated NIMS and ICS training for City staff FY 15 Objectives • Upgrade and increase fire prevention activities and programs • Increase staffing during daytime hours to improve service quality and increase fire fighter safety • Establish a Department Honor Guard Program • Continue to research and apply for available grants and tuition funding through various agencies • Establish a Jr. Firefighter program for Anna High School students interested in the fire service • Continue to provide Emergency Management training to City staff Expenditure Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd PAYROLL $379,558 $436,086 $424,435 $534,840 23% SUPPLIES $83,389 $95,405 $94,875 $96,910 2% MAINTENANCE $32,722 $35,045 $32,045 $31,100 41% SERVICES $48,168 $52,930 $57,734 $71,657 35% CAPITAL EXPENDITURES $15,728 $4,550 $4,550 $600 -87% TOTAL 10-543E $55%565 $624,016 $613,639 $735,107 18% 47 Proposed Budget Breakdown FY 15 Proposed Fire Budget SERVICES MAINTENANU #1 not 4% SUPPLII 13% CAPITAL FXPFNDITURES 0% New and Noteworthy for FY 15 Increased payroll costs • The City's costs for insurance and retirement benefits are expected to increase • Market adjustments to wages have been proposed to ensure the City can attract and retain a talented work- force • Addition of 1 day shift fire fighter Expanded Fire Prevention material for community education New web -based program for call and data tracking per shift, includes fire pre -plans and other response re- sources Description Fire FTE Schedule FY 11 FY 12 FY 13 FY 14 FY 15 Fire Chief 1 1 1 1 1 Fire Marshal 1 1 1 1 1 Fire Captain 0 0 3 3 3 Fire Fighter 2 2 1 1 2 Total 4 4 6 6 7 Purpose/Description Ambulance service is currently provided by AMR through a contract with Collin County. The Ambulance Depart- ment does not have any personnel costs as it is a contracted service. No changes expected from FY 14 FY 15 Proposed Ambulance Budget New and Noteworthy for FY 15 Expenditure Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd SERVICES $110,446 $123,683 $123,683 $123,683 0% TOTAL 10-544E $110,446 $123,683 $123,683 $123,683 0% Purpose/Description The Police Department strives to preserve order, reduce fear, and protect human life, property, and individual rights through the fair and ethical enforcement of laws adopted under the under the framework of the U.S. and Texas Constitutions and the Anna City Charter. FY 14 Accomplishments Responded to over 4,S00 calls for service and thru April 2014 • Hosted annual National Night Out event Hosted annual Child ID Fair Participate in the National Click -it or ticket campaign • Participated in book reading events at both Rattan and Bryant elementary Conducted a seatbelt safety demonstration at the Early Childhood Learning Center • Conducted bully prevention classes at Bryant Elementary Provided logistical support to community events including the Anna Glow Fest, Christmas Parade, and Centennial Celebration • Established a new neighborhood crime watch program in West Crossing FY 15 Objectives • Continue to provide 24/7 police protection for the City Maintain call response time under five minutes Enhance officer accountability with the addition of an additional supervising Sergeant to the depart- ment's patrol division. Participate in the National Click -it or ticket campaign • Continue department support of community festivals and events Continue to host and participate in public safety events • Pursue the "Recognized Law Enforcement Agency" award from the Texas Police Chiefs Association Law Enforcement Recognition Program Expenditure Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/ Prpsd PAYROLL $1,0141777 $1,073,149 $1,009,555 $1,169,760 9% SUPPLIES $70,231 $87,099 $84,970 $94,842 9% MAINTENANCE $12,162 $25,067 $25,000 $14,300 43% SERVICES $97,724 $122,091 $116,066 $122,191 0% CAPITAL EXPENDITURES $80,098 $10,154 $10,079 $40,682 301% TOTAL 10-550E $1,274,992 $1,317,560 $1,245,670 $1,441,775 9% 50 YIOUtU ROMSI'OWN Proposed Budget Breakdown FY 15 Proposed Police Budget MAINTENANCE SERVICES CAPITAL 1% k FXPFNnIT11RFS SUPF 7 Increased payroll costs New and Noteworthy for FY 15 • The City's costs for insurance and retirement benefits are expected to increase • Market adjustments to wages have been proposed to ensure the City can attract and retain a talented work- force • Existing Sergeant reclassified to Lieutenant • Promote 2 Officers to Sergeant • Hire and train a new Officer Increased capital expenditures • Some one time costs to equip the new Sergeant position • Replacement of equipment in the Crime Lab and other IT equipment Police FTE Schedule Description FY 11 FY 12 FY 13 FY 14 FY 15 Police Chief 1 1 1 1 1 Police Lieutenant 0 0 0 0 1 Police Sergeant 1 1 1 1 2 Police Officer 9 9 10 10 10 Crime Scene Technician 1 1 1 1 0 Records Administrator 1 1 1 1 1 Total 13 13 14 14 15 51 �1 FY 2015 Proposed Budget L Y{oUWHoMWMwN 10-552 Municipal Court Purpose/Description The Mcrnicipal Court provides a fair, impartial and unbiased court system for persons charged with criminal of- fenses. The Anna Municipal Court has jurisdiction over all fine -only offenses that have been committed within the Anna city limits including Class C misdemeanors, traffic offenses and violations of City ordinances. FY 14 Accomplishments • Increased cross training with Utility Billing office • Developed plan for level III court cleric certification FY 15 Objectives • Migrate data and operations to a software system that is compatible with the City's Finance and Utility Billing operations • Develop cross training plan for greater redundancy between Court and Utility Billing operations • Review options for fine collection services and determine best options for improving collections Expenditure Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd PAYROLL $56,828 $59,054 $57,643 $63,345 7% SUPPLIES $5,092 $4,750 $4,750 $4,850 2% SERVICES $40,484 1 $45,240 $46,317 $48,275 7% TOTAL 10-552E $102,404 $109,044 $108,710 $116,470 1 7% 52 l I:LLU:+ Proposed Budget Breakdown FY 15 Proposed Court Budget SUNrutS 4% New and Noteworthy for FY 15 Increased payroll costs • The City's costs for insurance and retirement benefits are expected to increase • Market adjustments to wages have been proposed to ensure the City can attract and retain a talented work- force • Title change for employee to more accurately reflect duties and expectations Service costs increase to cover judge and prosecutors time as a contracted service Municipal Court FTE Schedule Description FY 11 FY 12 FY 13 FY 14 FY 15 Municipal Court Clerk 1 1 1 1 0 Court Administrator 0 0 0 0 1 Tota I 1 1 1 1 1 GYC? Ann Purpose/Description FY 2015 Proposed Budget 10-555 Pa rkS The Parks department oversees the development and maintenance of the City's parks and recreation facilities. The department also supports community organizations that provide sports and recreation opportunities for the youth of our community. FY 14 Accomplishments • Completed construction of Phase II of Slayter Creek Park • Completed construction of Phase 11 of Slayter Creek Trail FY 15 Objectives • Develop concept plan for a community dog park • Provide a seasonal restroom facility at Slayter Creek Park • Construct restroom and gazebo at Natural Springs Park • Develop and implement a master turf maintenance program for all city parks and athletic fields • Formalize maintenance agreement with Anna ISD for use of athletic fields at Slayter Creek Park Expenditure Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd PAYROLL $80,053 $144,207 $81,035 $114,485 -21% SUPPLIES $10,652 $8,500 $14,700 $24,150 184% MAINTENANCE $15,370 $21,700 $22,000 $25,000 15% SERVICES $33,859 $37,087 $65,521 $66,355 79% CAPITAL EXPENDITURES $11,839 $2,000 $3,800 $0 -100% TOTAL 10-555E $151,773 $213,494 $187,056 $229,990 8% 54 Proposed Budget Breakdown t=Y 15 Proposed Parks Budget SERVICES 29% MAINTEN 11% FY 2015 Proposed Budget 10-555 Pa rkS CAPITAL EXPENDITURES �.. 0% PAYROLL 50% New and Noteworthy for FY 15 Decreased payroll costs • Seasonal positions are placed through a staffing service rather than hired seasonal employees, this causes all increase in the services category and a decrease in salaries • Reclassification of Park Superintendent to Crew Leader —Parks • Includes amounts for increased health and retirement benefits as well as market adjustments for wages Supplies increase to accurately reflect costs for parks supplies not previously recorded in parks Parks FTE Schedule Description FY 10 FY 11 FY 12 FY 13 FY 14 Park Superintendent 1 1 1 1 0 Crew Leader —Parks 0 0 0 0 1 Maintenance Laborer 0 0 0 1 1 Seasonal Laborers 0 0 0 1 1 Pq Total 1 3 55 FY 2015 Proposed Budget 1M80 Street MUM HOWWMWN Purpose/Description The Street Department is responsible for the maintenance of the City's roadway and storm water drainage sys- tems. Services funded by this department include: cleaning streets, clearing and mowing public rights of way, rou- tine maintenance and repair of street pavement and sidewalks, installation and maintenance of street signs, and maintenance of the storm drainage system. State highways and FM roads are maintained by the Texas Depart- ment of Transportation. FY 14 Accomplishments • Completed the FY 2014 Street Rehabilitation Program including repairs to CR 371, CR 369, Foster Cross- ing, Hackberry Drive, and Wildwood Trail • Initiated neighborhood sidewalk repair program FY 15 Objectives • Complete the FY 2015 Street Rehabilitation Program • Continue neighborhood sidewalk repair program • Initiate Street Sign Replacement/Maintenance Program • Develop schematic design for 4th Street streetscape improvements • Submit application for storm water discharge general permit Expenditure Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd SUPPLIES $1,637 $1,200 $1,200 $1,200 0% MAINTENANCE $45,709 $46,000 $46,000 $46,800 2% SERVICES $153,948 $139,431 $131,531 $134,221 4% CAPITAL EXPENDITURES $105,391 $1001000 $100,000 $1101000 10 0 TOTAL 10-580E $306,685 $286,631 $278,731 $292,221 2% 56 YIOURI RObISiOWN Proposed Budget Breakdown FY 15 Proposed Street Budget SUPPLIES MAINTENANCE 0% 16% CAPITAL EXPENDITURES 38% New and Noteworthy for FY 15 Increased funding for annual street rehab program by 10% Street FTE Schedule Description FY 10 FY 11 FY 12 FY 13 FY 14 N/A Tota 1 0 0 0 0 0 57 Incorporated within the General Fund are sources of special revenue, restricted for a certain purposes. These restricted revenue trusts are a Governmental Fund type. Monies in the restricted revenue trusts are restricted based upon the circumstances of their receipt. Restrictions are placed on the use of these trusts funds for a number of reasons including, but not limited to laws, ordinances, grant contracts, donations, etc. The City manages the following restricted revenue trusts: • Park Trust • Eastside Park Trust Fire Trust Court Technology Fund • Court Building Security Fund • Child Safety Fund • Street Capital Improvements • Cable Public Education Government (PEG) Fees • Police Seizure Funds Each trust will be explained in detail; however, PEG, Police Seizure fees are not routinely budgeted. The City does not rely upon them for regular operating or capital needs. PEG Fees are a portion of fees assessed by a cable franchise provider. These fees are restricted by state code to support a municipality's public access cable channel. There are no time restrictions to spend these funds; therefore, they will be held in reserve until they can support an eligible expenditure. The Police Seizure Funds are revenue generated from property seized in connection with illegal activity. These funds can only be used to support the Police Department. Funds are held in reserve until a sufficient balance can support a specific need in the Police Department and council has approved the expenditure. Details on the other trusts will be explained below. Park Trust The Park Trust is funded by park development fees as stipulated in either developer agreements or the subdi- vision ordinance and are used to fund the Citys master parks plan through development, improvement, or maintenance of the City's parks. Park Trust revenues and expenditures are illustrated below. Estimated and proposed revenues are the result of building activity in the City. In FY 15 the proposed expenditures in the parks trust include improvements to Natural Springs Park to construct a gazebo, restroom and trash enclosure and to Slayter Creek Park for a temporary mobile restroom with climate controls and running water. ACTUAL BUDGET ESTIMATE PROPOSED %CHANGE LINE ITEMS 2012-2013 2013-2014 2013-2014 2014-2015 Bdgt/Prpsd DEVELOPER FEES $179,610 $112,300 $150,000 $75,250 -33% DONATIONS $0 $0 $0 $0 N/A MISCELLANEOUS REVENUE $6,800 $0 $0 $0 N/A INTEREST REVENUE $931 $400 $500 $0 -100% TOTAL REVENUES $187,341 $112,700 $150,500 $75,250 -33% ACTUAL BUDGET ESTIMATE PROPOSED % CHANGE LINE ITEMS 2012=2013 2013=2014 2013=2014 2014-2015 Bdgt/Prpsd LAND & IMPROVEMENTS $268,103 $0 $0 $0 N/A OTHER CAPITAL EXPENDITURES $70,587 $0 $6,315 $125,900 N/A TOTAL EXPENSE $33%690 $0 $6,315 $125,900 N/A m Eastside Park Trust The Eastside Parlc Trust was created from a private donation for improvements to the Eastside Park, other- wise known as Geer Park. The trust has a just over $12,500 in fund balance; no additional resources are dedi- cated to grow the fund balance at this time. The available funds will be held in reserve until a project is select- ed for funding that will improve Geer Park and meet the restrictions of the donation. The trust has had mini- mal interest earnings from the donation; all interest earnings from the donation are held in the same trust for the same purpose. Long term capital plans include preliminary designs on Geer Park in FY 18 Fire Trust The Fire Trust accounts for voluntary fees negotiated with developers for support of the Anna Fire Depart- ment. Additionally, grant projects typically funded through the Texas Forest Service, the Federal Emergency Management Agency, and other grantors are accounted for in the Fire Trust. In FY 14, the Fire Trust support- ed the Fire Department with training and education and machinery and equipment including the purchase of a new command vehicle. Fire Trust revenues and expenditures are illustrated below. You can see that developer fee revenue has dropped drastically since 2013. The Fire Trust Fund has just over $13,500 in available funds; however, some of this will be used to support current grant applications prior to the end of FY 14. The City is working on ne- gotiating future agreements with developers to include Fire Trust payments; however, revenue will continue to be below the 2013 marls in the near term. With the decline in revenue, no expenditures are planned from the Fire Trust for FY 15. Funds will be reserved for grants as they are awarded and for any capital needs that may arise. Should grants or capital needs arise, staff will present those needs to the council in the form of a budget amendment. ACTUAL BUDGET ESTIMATE PROPOSED %CHANGE LINE ITEMS 2012-2013 2013-2014 2013-2014 2014-2015 Bdgt/Prpsd DEVELOPER FEES $16,610 $1,200 $4,500 $2,500 108% SALE OF ASSETS $0 $0 $3,174 $0 N/A GRANT REVENUE $10,890 $15,000 $8,000 $0 400% TRANSFERS IN $0 $15,000 $15,000 $0 -100% INTEREST REVENUE $193 $0 $65 $0 N/A TOTAL REVENUES $27,693 $31,200 $30,739 $2,500 -92% ACTUAL BUDGET ESTIMATE PROPOSED % CHANGE LINE ITEMS 2012-2013 2013-2014 2013-2014 2014=2015 Bdgt/Prpsd PROTECTIVE GEAR $0 $4,900 $4,900 $0 400% EDUCATION & TRAINING $475 $7,000 $1,200 $0 400% MACHINERY & EQUIPMENT $0 $1,200 $11,000 $0 -100% OTHER CAPITAL EXPENDITURES 1 $20,868 1 $48,000 $36,166 $0 -100% TOTAL EXPENSE $21,343 $61,100 $53,266 $0 -100% C�; Municipal Court Technology Fund The Court Technology Fund accounts for a portion of court fines to support the use of technology in the court room. In FY 13 this fund began to support the annual software costs of electronic ticket writers that interface with existing court software. The ticket writers provide an efficient means of transferring citation data be- tween the Court and the Police Department. No other expenditures are planned for the Court Technology Fund. Revenues and expenditures are illustrated below. ACTUAL BUDGET ESTIMATE PROPOSED % CHANGE LINE ITEMS 2012-2013 2013-2014 2013-2014 2014=2015 Bdgt/Prpsd TECHNOLOGY FUND $2,789 $3,000 $2,000 $2,250 -25% INTEREST REVENUE $7 $10 $10 $0 -100% TOTAL REVENUES $2,796 $3,010 $2,010 $2,250 -25 o ACTUAL BUDGET ESTIMATE PROPOSED o CHANGE LINE ITEMS 2012-2013 2013-2014 2013-2014 2014-2015 Bdgt/Prpsd CONTRACT SERVICES $2,710 $2,150 $2,050 $2,050 -5% MACHINERY & EQUIPMENT $0 $0 $0 $0 N/A TOTAL EXPENSE $2,710 $2,150 $2,050 $2,050 Municipal Court Building Security Fund The Building Security Fund is also funded like the Court Technology Fund by accounting for portion of court fines. This revenue is used to maintain security in the court room and is budgeted for overtime pay to officers acting as a bailiff for the court when necessary. The increase in estimated costs for FY 14 is for a proposed bullet proof glass window to be installed in our customer service facility where the Court primarily operates on a day to day basis. Building Security Fund revenues and expenditures are illustrated below. ACTUAL BUDGET ESTIMATE PROPOSED %CHANGE LINE ITEMS 2012-2013 2013-2014 2013-2014 2014-2015 Bdgt/Prpsd BLDG SECURITY FUND $2,091 $2,000 $1,400 $1,700 -15% INTEREST REVENUE $51 $55 $55 $0 -100% TOTAL REVENUES $2,142 $2,055 $1,455 $1,700 47% ACTUAL BUDGET ESTIMATE PROPOSED % CHANGE LINE ITEMS 2012-2013 2013-2014 2013-2014 2014-2015 Bdgt/Prpsd OTHER SERVICES - MISC. $0 $1,800 $11,000 $3,000 67% MACHINERY & EQUIPMENT $0 $0 $0 $0 N/A TOTAL EXPENSE $0 $1,800 $11,000 $3,000 67% Child Safety Fund The Child Safety Fund accounts for a portion of court fees that can be used to fund various programs designed to enhance child safety as outlined in State Code. As the City does not operate a school crossing guard program the funds will be used on other public safety programs in accordance with State Code, In FY 14 the City began malting the annual membership payments to the Children's Advocacy Center of Collin County. This expense will continue as long as Child Safety funds can support it. In FY 15 there is a proposed one-time expenditure for the purchase of additional school zone signs to help keep children safe around local school campuses. ACTUAL BUDGET ESTIMATE PROPOSED %CHANGE LINE ITEMS 2012-2013 2013-2014 2013-2014 2014-2015 Bdgt/Prpsd CHILD SAFETY FUND $9,906 $9,000 $10,000 $10,000 11% INTEREST REVENUE $73 $10 $10 $0 -100% TOTAL REVENUES $9,979 $9,010 $10,010 $10,000 11% ACTUAL BUDGET ESTIMATE PROPOSED % CHANGE LINE ITEMS 2012-2013 2013-2014 2013-2014 2014-2015 Bdgt/Prpsd CONTRACT SERVICES $0 $7,500 $7,500 $7,500 0% MACHINERY & EQUIPMENT $0 $0 $0 $%500 N/A TOTAL EXPENSE $0 $7,500 $7,500 $171000 127% Street Capital Improvement Fund The Street Capital Improvement Fund accounts for fees negotiated with developers for the improvements of streets. No expenditures are planned for FY 15; however, in FY 14 a proposed impact fee study was completed for $20,000. ACTUAL BUDGET ESTIMATE PROPOSED %CHANGE LINE ITEMS 2012-2013 2013-2014 2013-2014 "MI 4-2015 Bdgt/Prpsd ROAD CAPITAL IMPROV. IMPACT FEE $7,208 $29,000 $20,000 $57,500 98% INTEREST REVENUE $31 $15 $50 $0 N/A TOTAL REVENUE $7,208 $29,000 $20,000 $57,500 98% ACTUAL BUDGET ESTIMATE PROPOSED % CHANGE LINE ITEMS 2012-2013 2013-2014 2013-2014 2014-2015 Bdgt/Prpsd CONTRACT SERVICES $0 $20,000 $20,000 $0 100% MACHINERY & EQUIPMENT $0 $0 $0 $0 0% TOTAL EXPENSE $0 $20,000 $20,000 $0 100% 61 Restricted Revenue Trust Fund Baiance As stated above, the use of each restricted revenue trust will be stipulated by a number of restrictions such as laws, ordinances, grants, etc. The table and chart below illustrates the fund balance for each trust at the close of FY 13, the projected fund balance at the close of FY 14, and the fund balance of the close of FY 15 under the proposed budget. As illustrated in the table, no funds will have negative fund balance through the end of FY 15. Staff monitors each trust to maintain compliance with any and all restrictions and also monitors to ensure expenditures do not exceed available resources. Fund Balance at Year End 2013 Audited 2014 Projected 2015 Proposed Court Technology $1,658 $1,208 $1,158 Court Building Security $11,728 $2,128 $828 Child Safety $6,533 $10,437 $3,437 Eastside Park $12,507 $12,601 $12,664 Park $113,901 $265,586 $214,936 Fire $29,203 $6,676 $9,176 Street $22,055 $22,105 $79,605 Public Education Fees $25,214 $28,814 $32,464 Police Seizure $4,988 $5,483 $5,675 Total Restricted $227,787 $355,038 $359,943 FY 15 Ending Fund Balance Public Education Fees `9% / Police Seizure inology security 1% Safety l% de Park ;off 62 The Debt Service Fund is a special revenue fund used to account for a portion of the ad valorem property tax revenue exclusively reserved for principal and interest payments on debt issued for General Fund Purposes. Unlike Enterprise Funds, which are intended to operate like a business enterprise, the General Fund's intent is to focus on the flow of current financial resources. Debt accounted for in the Debt Service Fund in - dudes bonded debt and notes supported by taxes. Bonded debt includes general obligation bonds, cer- tificates of obligations and combination tax and rev- enue certificates of obligation. Revenues generated from the City's Interest and Sinking (I&S) portion of the tax rate are deposited into the Debt Service Fund and are dedicated to pay the principal and interest of outstanding debt se- cured by property taxes. All debt issued for general government purposes is accounted for in the Debt FY 15 Proposed Debt Service Fund Revenue Service Fund. However, from time to time, the City has also issued combination tax and revenue certificates of obligation to support water and sewer infrastruc- ture projects. These bonds are accounted for in the Utility Fund. Under these Bond Covenants, there remains a tax pledge to support the debt if surplus revenues from the water and sewer operations are not sufficient to make the debt payments. There are three certificates of obligation issued in 2009, 2012, and 2014 and a gen- FY 15 Tax Secured Debt Obligations eral obligation bond issued in 1976 that all have a tax pledge even though the debt was issued for water and sewer improvements. Of the outstanding Debt Service Obligations for FY 15, 69% is related to tax secured debt issued for water and sewer projects. The total debt service on tax secured debt for FY 15 is $1,424,042. While the I&S revenue is only $527,104, the remaining $896,938 will be generated from excess wa- ter and sewer revenues and projected savings from planned refundings scheduled for late 2014. Debt Service Revenue Detail ACTUAL BUDGET ESTIMATE PROPOSED %CHANGE TYPE 2012-2013 2013-2014 2013-2014 2014-2015 Bdgt/Prpsd PROPERTY TAX REVENUE $350,469 $391,908 $391,908 $527,104 34% OTHER SOURCES OF FUNDS $105,605 $74,629 $56,552 $0 -100% TOTAL DEBT SERVICE REVENUE $456,074 $466,537 $448,460 $527,104 13% 63 The City of Anna currently holds just over $3.9 million in outstanding I&S/tax supported debt. An additional $12.4 million in outstanding debt has a tax pledge but it supported by water and sewer revenues. The $12.4 million in debt was issued for water and sewer infrastructure projects and is payable from water and sewer revenues; however, to obtain more favorable financing terms, the debt has a tax pledge. The debt service obligations since FY 13 are detailed below; however, FY 15 includes ex- penditures for Utility Fund Debt that has a tax pledge. The transfer to the Utility Fund to support debt service on tax pledged water and sewer debt accounts for the increase in Debt Service Fund expenditures. The transfer to support tax pledge debt will be used solely to support the combination tax and revenue certificates (Bonds) issued for water and sewer infrastructure and account- ed for in the Utility Fund. FY 15 Proposed Debt Service Budget XferforTax Pledged Debt 16% OTHER. SERVICES 0% 1 INTERST 32% Of particular note is an overall decline in interest expense in FY 15. The City realized the final payment on one debt instrument during FY 14 which reduced the interest expense; however, some General Fund debt is struc- ture to allow the city to "grow" into the debt obligations. This is why principal payments are set to increase a modest 1% in spite of the overall debt load decreasing. Details of the debt service obligations are below: Debt Service Expenditure Detail TYPE ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd PRINCIPAL $269,524 $270111S $270,115 $273,000 1% INTEREST $184,722 $193,922 $175,845 $166,552 -14% OTHER SERVICES $1,828 $2,500 $2,500 $2,750 10% TRANSFER FOR TAX PLEDGED DEBT $0 $0 $0 $84,802 N/A TOTAL DEBT SERVICE OBLIGA= $456,074 $466,537 $448,460 $527,104 13% Debt Management Plan The City has worked closely with our financial advisors, First Southwest, to develop a sound debt management plan. Looking to the future, the City anticipates a spike in our debt service in 2018 and 2019. Left un- addressed, this could lead to a spike in I&S tax rates as well. The table below illustrates the total annual debt service supported by the I&S tax rate through FY 2029. The table includes the total debt service obligations before and after the planned refundings. Outstanding Debt Schedule PERIOD ENDING PRINCIPAL INTEREST TOTAL DEBT SERVICE DEBT SERVICE AFTER REFUNDING /CHANGE 9/30/2015 $273,000 $166,552 $439,552 $435,551 -6% 9/30/2016 $289,000 $155,224 $444,224 $435,865 0% 9/30/2017 $249,000 $188,833 $437,833 $433,397 -1% 9/30/2018 $220,000 $253,750 $473,750 $428,832 4% 9/30/2019 $258,000 $269,038 $527,038 $427,275 0% 9/30/2020 $269,000 $248,159 $517,159 $415,813 -3% 9/30/2021 $286,000 $225,343 $511,343 $414,200 0% 9/30/2022 $313,000 $199,683 $512,683 $417,163 1% 9/30/2023 $324,000 $171,898 $495,898 $395,100 -5% 9/30/2024 $361,000 $141,227 $502,227 $402,900 2% 9/30/2025 $378,000 $107,247 $485,247 $385,463 4% 9/30/2026 $414,000 $69,969 $483,969 $383,000 -1% 9/30/2027 $205,000 $34,875 $239,875 $148,788 -61% 9/30/2028 $65,000 $14,325 $79,325 $44,975 -70% 9/30/2029 $65,000 $4,875 $69,875 $38,288 -15% TOTAL $3196%000 $2,250,998 $6,21%998 $5,206,607 In order to keep the I&S rate stable, the City of Anna and First Southwest have developed a series of planned refundings of existing debt to maintain the current I&S rate through 2026. This plan is based upon very con- servative assumptions of growth in the property tax base and interest rates. Additionally, the planned refund- ngs are scheduled to coincide with interest rate resets and, where possible, refunding bonds that are callable and advance refundable. In this way the plan will minimize the present value cost to the city. Refunding and restructuring of debt is scheduled to occur in 2014, 2016 and 2017. The following chart illustrates current and future debt obligations based upon (1) existing debt obligations and (2) projected new debt obligations after the planned refunding/restructuring. You will notice a drop in the FY 15 debt service. The budget presented here includes the planned savings from the refunding to occur in late calendar year 2014. Additionally, taxable value has increased over the original assumption. The City, along with our financial advisors, will evaluate market and budgetary conditions and pursue refunding in 2014, or waiting until 2016 based upon the result that yields the greatest economic bene- fit to the City. No other General Fund Debt is planned to be issued during FY 15. 65 City of Anna, Texas City of Anna, Texas I&5 Tax Debt Management Program As of July 8, 2014 $e00,000 - $o.lzoo $500,000 4/ $001000 $400*000 -- -- -- _. $000800 I d Su i j d $300,000 _. ._. - - _. $0.0600 F C a? I $2000000 $0.0400 1 i � 1 $1000000 _. �._ I_. - $040200 i I , S RMW$• 00 pe iiiiiiiiiiExisting Net GO D/S C:::':_t Net NEW Debt Servcie +Existing Projected Tax Rate—FProjected Tax after Program FirstSouthwest' Member FIN RA 8 91P C 0 2014 10 First Sauthrrest Company *This chart is provided by First Southwest and is for discussion purposes only. Actual results may vary based upon future economic conditions. Debt Limits The City does not currently have any debt limit in terms of a dollar amount. However, municipal debt limits in Texas are established by state code. All taxable property within the City is subject to the assessment, levy and collection by the City of a continuing, direct annual ad valorem tax sufficient to provide for the payment of principal of and interest on all ad valorem tax debt within the limits prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2.50 per $100 Taxable Assessed Valuation for all City purposes. Administratively, the Attorney General of the State of Texas will permit allocation of $1.50 of the $2.50 maximum tax rate for all general obligation debt service, as calcu- lated at the time of issuance. The proposed budget has an ad valorem tax rate of $0.649 per $100 Taxable Assessed Value. Of that amount, $0.103174 is dedicated to I&S, or Debt Service. The Utility Fund is an enterprise fund that accounts for the water, sewer, and solid waste collection services that are provided to the City's residents including some customers outside the City. Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business. The intent is that the costs of providing goods or services are financed primarily through user charges. The Utility Fund accounts for all costs associat- ed with operating the City's Utility Services; this includes operations, maintenance, billing & collections, administration, financing, and related debt service. The Utility Fund's principle source of revenue is charges to customers for water. consump- tion, wastewater collection, solid waste collec- tion, and fees related to providing consumers with utility services. The FY 1S proposed reve- nue includes the use of bond proceeds to pay the construction inspection costs on infra- structure projects funded through bond pro- FY 15 Proposed Utility Fund Revenue OTHER SOURCES SOLID W 13% ceeds. Rather than contract for this service, the proposed budget includes a full time position responsible to inspect and manage the infrastructure projects funded with the 2012 and 2014 CO's. Additionally, the Utility Fund includes a transfer from the Debt Service Fund to support debt service on debts issued with a tax pledge. The City of Anna utility rates include a base charge and a volumetric rate for water consumption beyond 2,000 gallons per month. The base rate provides stability in our revenue as water sales are more volatile than other revenue sources and change based upon the climate and precipitation. As water sales can be volatile, we have been conservative in our approach to estimating water sales so as not to overstate projected revenue. The in- crease in water revenue for FY 15 is based in large part upon growth in our customer base. Growth in our cus- tomer base is also driving our increase in sewer and solid waste revenue, however, this growth is projected to outpace the growth in water revenue. The average household consumption of water is on the decline due to the ongoing drought and water conservation efforts. The average consumption does not affect the total num- ber of ratepayers which has grown by roughly 10% over the past year; sewer and solid waste revenue is more closely correlated to population growth than water revenue. Utility Fund Revenue Summary TYPE ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd WATER $2,833,014 $2,860,007 $2,825,494 $2,961,699 4% SEWER $1,487,243 $1,521,450 $1,620,226 $1,691,490 10% SOLID WASTE $642,015 $650,000 $690,000 $710,000 9% OTHER SOURCES $0 $0 $0 $153,302 N/A TOTAL $4,962,272 $5,031,457 $5,1351720 $5,5161491 9% 67 In addition to regular operating revenue, the Utility Fund collects impact and developer fees. These fees are collected in connection with new development. Impact fees are charges or assessments imposed by the city on new development in order to recoup the costs of capital improvements or infrastructure and facility expan- sions necessitated by the new development. Chapter 395 of the Texas Local Government Code regulates local government application of impact fee standards and requirements. Prior to the City adopting impact fees, certain developer fees were negotiated with land developers to accom- plish the same purpose as impact fees. The following impact and developer fees are expected to be collected throughout FY 15 in connection with de- velopment in various additions. DEPARTMENT FY 2015 PROJECTED REVENUE WEST CROSSING WATER TRUST $100,000 WEST CROSSING SEWER TRUST $100,000 WATER & SEWER IMPROVEMENTS TRUST $140,000 NORTHPOINTE WATER TRUST $20,000 NORTHPOINTE SEWER TRUST $20,000 TOTAL $380,000 The fees collected are restricted based upon developer agreements or the City's Impact Fee Ordinance and are only to be used in accordance to the specified restrictions in the agreement/ordinance. As discussed above, the Utility Fund accounts for all the costs associated with providing and maintaining utility services. These services are provided by the Water, Sewer, Solid Waste, and Utility Billing departments. De- partmental summaries are provided similar to the General Fund with expenditures categorized by type. These types are payroll, supplies, maintenance, and capital expenditures as discussed previ- ously. However, the Utility Fund also in- cludes transfers to the capital project fund to support future facility needs. The chart on the right illustrates the per- centage of costs associated with each of the Utility Fund departments. The table below illustrates a brief history for each depart- ment from FY 13 through FY 15. The table includes actual costs from FY 13, budgeted and estimated costs for FY 14, proposed budget for FY 15, and the percent change from the FY 14 budget. SOLID 12' FY 15 Proposed Utility Fund Expense UTI LITY ILLMin B 4i �\ The departmental summaries will provide greater detail on increased expenditures; however, the bulk of the increase is due to an increase in personnel costs and in debt service obligations. Utility Fund Expenditure Summary by Department DEPARTMENT ACTUAL BUDGET ESTIMATE PROPOSED %CHANGE 2012=2013 2013-2014 2013-2014 2014-2015 Bdgt/Prpsd WATER $2,874,287 $2,645,838 $2,530,228 $2,970,098 12% SEWER $1,707,791 $11575,995 $1,632,495 $1,656,681 5% SOLID WASTE $564,113 $600,000 $600,000 $636,000 6% UTILITY BILLING $193,040 $209,623 $205,761 $220,588 5% TOTAL $5,339,231 $5,031,456 $43968,484 $5,4833367 9% The table below illustrates the total increase of 9% is due to payroll, maintenance, and services. The increases Oil be discussed in the departmental summaries. Utility Fund Expenditure Summary by Type TYPE ACTUAL BUDGET ESTIMATE PROPOSED %CHANGE 2012-2013 2013-2014 2013-2014 2014-2015 Bdgt/Prpsd PAYROLL $796,819 $959,157 $858,416 $1,052,014 10% SUPPLIES $108,028 $118,075 $112,925 $110,550 -6% MAINTENANCE $431,888 $326,350 $357,400 $349,100 7% SERVICES $21801,023 $31557,274 $3,569,143 $3,882,353 9% CAPITAL EXPENDITURES $1,201,473 $70,600 $70,600 $5,350 -92% TRANSFER TO CAPITAL PROJECTS $0 $0 $0 $84,000 N/A EXPENDITURES $5,3391231 $5,031,456 $41968,484 $57483,367 9% m The table below illustrates the total increase of 9% is due to payroll, maintenance, and services. The increases Oil be discussed in the departmental summaries. Utility Fund Expenditure Summary by Type TYPE ACTUAL BUDGET ESTIMATE PROPOSED %CHANGE 2012-2013 2013-2014 2013-2014 2014-2015 Bdgt/Prpsd PAYROLL $796,819 $959,157 $858,416 $1,052,014 10% SUPPLIES $108,028 $118,075 $112,925 $110,550 -6% MAINTENANCE $431,888 $326,350 $357,400 $349,100 7% SERVICES $21801,023 $31557,274 $3,569,143 $3,882,353 9% CAPITAL EXPENDITURES $1,201,473 $70,600 $70,600 $5,350 -92% TRANSFER TO CAPITAL PROJECTS $0 $0 $0 $84,000 N/A EXPENDITURES $5,3391231 $5,031,456 $41968,484 $57483,367 9% m m Purpose/Description The Water Department is responsible for the operation and maintenance of the City's water production and distri- bution system that includes the operation of seven groundwater production wells and connections to treated sur- face water purchased from the Greater Texoma Utility Authority through a contract with the North Texas Munici- pal Water District. FY 14 Accomplishments • Completed 95% of the Radio Read Water Meter Replacement Project • Completed FM 455 Utility Relocation Project • Constructed Phase II of the Surface Water Blending Project • Initiated focus on providing excellent customer service through Productivity, Responsibility, Initiative, Dedication, and Excellence with Accountability FY 15 Objectives • Complete the Radio Read Water Meter Replacement Project • Complete Water System Mapping Project • Commence Construction on Phase III of the Surface Water Blending Project • Construct Water Disinfection System Upgrade • Commence construction on the Hackberry Elevated Tower Project • Develop plans for the US 75 Utility Relocation Project • Continue focus on training department staff to provide excellent customer service Expense Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd PAYROLL $552,879 $705,730 $616,650 $779,310 10% SUPPLIES $83,046 $97,000 $92,000 $86,950 40% MAINTENANCE $384,706 $260,500 $259,750 $283,000 9% SERVICES $1,038,939 $1,512,608 $1,4911828 $1,751,188 16% CAPITAL EXPENDITURES $814,717 $70,000 $70,000 $4,650 -93% TRANSFER TO CAPITAL PROJECTS $0 $0 $0 $65,000 N/A TOTAL 60-701E $2,874,287 $2,645,838 $2,530,228 $2,970,098 12% 70 CAPITAL EXPEND 05 Proposed Budget Breakdown FY 15 Proposed Water Budget Xfar to fanital New and Noteworthy for FY 15 UPPLIES 3% :NANCE I% Increased payroll costs • The City's costs for insurance and retirement benefits are expected to increase Market adjustments to wages have been proposed to ensure the City can attract and retain a talented work- force • Conversion of one Maintenance position to Water/Wastewater Superintendent New Construction Inspector position Increased maintenance costs to purchase water meters to keep pace with new construction Increased services due to increased debt service obligations and NTMWD water rates Includes a transfer to support future capital facilities Water FTE Schedule Description Director of Public Works Administrative Assistant Water/Wastewater Superintendent Construction Inspector Field Supervisor Crew Leader Maintenance Laborer Seasonal Laborer FY 11 FY 12 FY 13 FY 14 FY 15 1 1 1 1 1 1 1 1 1 1 0 0 0 0 1 0 0 0 0 1 4 4 5 8 7 10 10 11 12 13 71 Purpose/Description The Sewer Department is responsible for the operation and maintenance of the City's wastewater collection and treatment system that includes the operation of a 500 mgd wastewater treatment plant and connections to the North Texas Municipal Water District Upper East Fork Regional Interceptor System, . FY 14 Accomplishments • Constructed the Slayter Creels Sewer Interceptor Project FY 15 Objectives • Complete regulatory upgrades the Slayter Creek Wastewater Treatment Plant • Study options for increasing treatment capacity of the Slayter Creels Wastewater Treatment Plant Expense Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd PAYROLL $114,140 $120,444 $117,005 $131,251 9% SUPPLIES $20,309 $16,000 $16,000 $18,500 16% MAINTENANCE $46,816 $65,250 $65,250 $65,500 0% SERVICES $11141,051 $1,374,301 $1,405,740 $1,422,430 4% CAPITAL EXPENDITURES $385,475 $0 $0 $0 N/A TRANSFER TO CAPITAL PROJECTS $0 $0 $0 $19,000 N/A TOTAL 60-705E $1,707,791 $1,575,995 $11603,995 $1,656,681 5% 72 nomoaonosrowN ••• ••• ••• ••• ••• �.• • • ••• Proposed Budget Breakdown FY 15 Proposed Sewer Budget CAPITAL EXPENDITURES o Capital ojects 1% AYROLL 8% SUPPLIES TENANCE 4% New and Noteworthy for FY 15 Increased payroll costs • The City's costs for insurance and retirement benefits are expected to increase • Market adjustments to wages have been proposed to ensure the City can attract and retain a talented work- force Increased services costs • Increased debtservice • Increased costs for wastewater transportation and treatment by the NTMWD Includes a transfer to support future capital facilities Sewer FTE Schedule Description FY 11 FY 12 FY 13 FY 14 FY 15 Senior Wastewater Operator 0 0 0 1 1 Wastewater Operator 2 2 2 1 1 Tota I 2 2 2 2 2 73 Purpose/Description Solid Waste service is currently provided by Bradshaw & Sons on a contract with the City. The Solid Waste De- partment does not have any personnel costs as it is a contracted service. FY 15 Proposed Solid Waste Budget New and Noteworthy for FY 15 New Department for FY 15 to properly show true sewer and solid waste costs Increase in costs driven by increase in solid waste customers Expenditure Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd SERVICES $564,113 $600,000 $600,000 $636,000 6% TOTAL 60-708E $564,113 $600,000 $600,000 $636,000 6% 74 Purpose/Description Utility billing is responsible for the billing of water, sewer, and trash collection services provided to the citizens of Anna and other customers of the City's utility system. FY 14 Accomplishments • Replaced drive -through window with an automated payment kiosk • Increased cross training with the Municipal Court • Improved proficiency and efficiency of billing software FY 15 Objectives • Develop cross training plan for greater redundancy between Court and Utility Billing operations • Enhance on-line presence to improve the customer experience • Review options for the collection of delinquent accounts and determine best option for improving collec- tions Expense Summary ACTUAL 2012-2013 BUDGET 2013-2014 ESTIMATE 2013-2014 PROPOSED 2014-2015 %CHANGE Bdgt/Prpsd PAYROLL $129,800 $132,983 $124,761 $141,453 6% SUPPLIES $4,673 $5,075 $4,925 $5,100 0% MAINTENANCE $366 $600 $3,900 $600 0% SERVICES $56,920 $70,365 $71,575 $72,735 3% CAPITAL EXPENDITURES $1,281 $600 $600 $700 17% TOTAL 60410E $193,040 $209,623 $205,761 $220,588 5% 75 MAINTENAI 0% SUPPLIES 2% Proposed Budget Breakdown FY 15 Proposed Utility Billing Budget New and Noteworthy for FY 15 CAPITAL FXPFNDITURES L% Increased payroll costs • The City's costs for insurance and retirement benefits are expected to increase • Market adjustments to wages have been proposed to ensure the City can attract and retain a talented work- force Increase in services for printing and mailing costs that are expected as the number of water customers contin- ues to grow Utility Billing FTE Schedule Description FY 11 FY 12 FY 13 FY 14 FY 15 Customer Service Supervisor 1 1 1 1 1 Senior Customer Service Rep. 1 1 1 1 1 Customer Service Rep. 1 1 0 0 0 Receptionist 0.5 0.5 0.5 0.5 0.5 Total 3.5 3.5 2.5 2.5 2.5 76 v v • • • v � • V• • • V• V V N r Unlike the General Fund, there is no special fund to account for Utility Fund Debt; all Utility Fund debt is ac- counted for within the Utility Fund. An Enterprise Fund is focused upon the total cost of providing services. With that focus in mind, the Utility Fund includes all costs to provide utility ser- vices to our customers, including the cost of long term debt service. All debt accounted for in the Utility Fund is supported by the revenues generated from the Utility Fund's operations. While some debt instruments have a tax pledge, utility revenues are generally sufficient to support all Utility Fund debt; however the FY 15 budget includes a modest transfer of $84,802 from Debt Service Fund revenues to support tax pledged debt in the Utility Fund. FY 15 Proposed OF Budget Showing Debt SERVICES NET SUPPLIES NTENANCE 6% CAPITAL EXPENDITURES o% r to Capital Projects 2% In FY 15, debt service accounts for 33% of the Utility Fund budget. In the department summaries, debt is grouped split between the water and sewer departments is grouped with "services" for purposes of categoriz- ing expense types. However, Utility Fund debt it is highlighted here to illustrates its share of the budget. Debt Management Plan Not unlike the Debt Service Fund, the Utility Fund also faces challenges with its outstanding debt. Currently the Utility Fund holds just over $26.6 million in outstanding debt. The City has worked closely with our rman- cial advisors, First Southwest, to develop a sound debt management plan for the Utility Fund as well. Looking to the future, the City anticipates a spike in debt service in 2015 and 2019. Left unaddressed, this could lead to increases in utility rates to support the debt payments. In order to appropriately manage Utility Fund debt, the City and First Southwest developed a plan to take ad- vantage of call dates and pursue advance refundings of the City's outstanding Utility Fund debt . All effort has been made to minimize the present value costs to the City. The current plan makes very conservative assump- tions regarding interest rates and was reviewed and analyzed in conjunction with a water rate study to evalu- ate the current water rates. Currently, the City anticipates refunding debt in the fall of 2014 to take advantage of the current market conditions. This will ease some pressure on future water rates. This plan also includes additional refundings to occur in 2017. Depending on market conditions and the City's growth, the two refunding are slated for mid summer and late fall of 2017. These refundings will free up cash flow and reduce pressure on utility rates. The following table outlines the current and future debt payments. The table along with the subsequent chart details the debt payments before and after the planned refundings. The current plan provides for smaller, manageable increases as opposed to an anticipated 27% in debt service for FY 15. The refunding in late fall will provide a more manageable increase of 15% 77 Utility Fund Outstanding Debt Schedule PERIOD ENDING PRINCIPAL INTEREST TOTAL DEBT SERVICE DEBT SERVICE AFTER REFUNDING % CHANGE 9/30/2015 $1,0361250 $1,145,241 $2,1811491 $1,789,811 15% 9/30/2016 $1,140,000 $1,055,970 $21195,970 $1,820,987 2% 9/30/2017 $1,173,750 $1,011,002 $2,184,752 $1,822,502 0% 9/30/2018 $1,222,500 $1,082,050 $2,304,550 $1,831,907 1% 9/30/2019 $1,226,250 $1,229,011 $2,455,261 $1,976,314 8% 9/30/2020 $1,168,750 $1,139,687 $2,30%437 $2,096,663 6% 9/30/2021 $1,191,250 $11066,035 $2,257,285 $2,217,058 6% 9/30/2022 $11228,750 $993,404 $2,222,154 $2,342,510 6% 9/30/2023 $1,281,250 $917,301 $2,198,551 $2,342,755 0% 9/30/2024 $1,360,000 $836,770 $2,1961770 $2,390,403 2% 9/30/2025 $1,452,500 $751,688 $2,204,188 $2,393,180 0% 9/30/2026 $1,790,000 $554,480 $2,344,480 $2,360,460 -1% 9/30/2027 $1,553,750 $463,695 $2,017,445 $2,232,152 -5% 9/30/2028 $1,423,750 $398,991 $1,822,741 $21238,259 0% 9/30/2029 $1,240,000 $342,055 $1,582,055 $2,002,366 41% 9/30/2030 $1,273,750 $293,051 $1,566,801 $1,986,043 -1% 9/30/2031 $1,325,000 $242,044 $1,567,044 $1,984,636 0% 9/30/2032 $1,382,500 $188,713 $1,571,213 $1,991,453 0% 9/30/2033 $1,127,500 $132,842 $1,2601342 $11260,342 -37% 9/30/2034 $661,250 $98,546 $759,796 $759,796 40% 9/30/2035 $248,750 $77,134 $325,884 $325,884 -57% 9/30/2036 $263,750 $62,764 $326,514 $326,514 0% 9/30/2037 $280,000 $47,500 $327,500 $327,500 0% 9/30/2038 $185,000 $34,397 $21%397 $219,397 -33% 9/30/2039 $197,500 $23,612 $221,112 $221,112 1% 9/30/2040 $207,500 $12,097 $219,597 $219,597 -1% TOTAL $27,183,497 $15,217,464 $42,400,961 $43,03%233 m City of Anna, Texas 53,000,aoa Sz,so0.000 Sz,ao0.aoo gi,sDo,aoo Si,aoo,aoo s City of Anna, Texas Water & Sewer System Fund Debt Analysis As of July 8, 1014 ■ Existing W&S Fund D/S ■ Projected W&S Fund D/S Member FIN RA 8 fiIPC 02014 FirstSoukhwesk'� First rrn fiolehtComperry *This chart is provided by First Southwest and is for discussion purposes only. Actual results may vary based upon future economic conditions. 79 Yi001Uft0►TS'MWN � � � � �• r � � � • • • �•• • • v v The Capital Improvements section include improvements that benefit both the General and Utility Funds. However, General Fund Capital Improvements are set aside in a dedicated fund to account for financial re- sources to be used for the acquisition or construction of major capital facilities. Utility Fund Capital Improve- ments are included in the Utility Fund. The separation of capital improvements into separate distinct funds is related to governmental accounting standards. The budgets for capital improvement projects are typically independent of the operating budget and are fund- ed with bonds, grants, fund balance, special restricted revenue or other sources of capital including private investment. Capital Improvements are the result of long term planning that occurs in the Capital Projects Plan. Each year projects are updated and projected across a 5 year time horizon and beyond. These projects are giv- en priority based upon a combination of factors including community needs/interests and available funding. In FY 13, the Capital Improvements Plan included work on a number of projects including water/sewer infra- structure and park improvements. Some of these projects were closed out in FY 14 while others will be com- pleted in FY 15. The following projects have either been completed, or will be completed by the end of FY 14: • Slayter Creek Park Phase II • FM 455 Utility Relocation • Slayter Creek Sewer Interceptor • Remodel to PW and PD/Customer Service buildings • Phase I of Surface Water Blending Project • Phase II of the Surface Water Blending Project In FY 15, the Capital Improvements Fund will either begin or continue to work on the following projects: • Design Services for City Hall • Phase III of the Surface Water Blending Project • Wastewater Treatment Plant —Regulatory Upgrades • Elevated Storage Tank • Water Lines Improvements • Disinfection System Upgrades • Clemmons Creek Sewer Line • Ferguson Parkway • Lakeview Park • Natural Springs Park Improvements • Slayter Creek Park Improvements Additional projects included in the capital projects summary are funded in the regular operating budgets pre- sentedpreviously and are not included here. These projects include the following: • Annual Street Repair Program is funded in the Street Department budget • PD IT replacements are funded in the Police Department budget • Personal Protective Gear (PPE) are funded in the Fire Department budget Each project not funded in the regular operating budget will be discussed below with further details in the Capital Improvements Plan found in the Supplemental Information section of the budget. Design Services for City Hall In FY 14, the City completed a space needs assessment. The results of this assessment detailed the need for all City facilities; however, the study highlighted the need to begin planning for a City Hall in the near future. The City Hall will be planned to support the City's population through 30,000 and will be scalable to add facilities as needed. The budget includes a proposed amount of $100,000 for FY 15 to find a qualified architect and begin prelimi- nary design services. The funds for this project will come from General Fund unrestricted Fund Balance. Once the final funding mechanisms for the City Hall are established, these funds may be reimbursed to the General Fund. The City Hall project is expected to be completed by the end of FY 17. Details on the total project budget can be found in the Capital Improvements Plan in the Supplemental Information section of the budget. Phase III Surface Water Blending The blending project began in FY 13 after the 2012 Bonds were funded. This has been a mul- ti year project scheduled to be complete in FY 15. The project allows the City to access NTMWD ground water resources held under contract with GTUA. The project allows the City to mix treated surface water with our ex- isting ground water resources. The FY 15 budget is $1,592,679 FY 15 Budget Other Prof. Fees, 33,605 Engineering,. 187,990 f, F P �mmqqw Wastewater Treatment Plant Upgrades FY 15 Budget Testing Services, 2,500 Testing Services, 26,884 The WWTP treatment plant upgrades were funded with the 2012 Bonds and will be completed in FY 15. The project allows the City to Upgrade the existing equipment and fixtures to meet TCEQ guidelines and allow for maximum useful life and efficient oper- ations of the existing WWTP. The total budget for FY 15 is $715,000. Y(OIIN AOMETOWN � �• �� � �• ��iiiiiiiiiiiiiiiiiiii MEMO IIIII III IN Elevated Storage Tank In 2014 the City issued bonds to make improvements to the City's water system. The primary focus of the 2014 Bond issue was to fund the construction of a .75 million to 1 million gallon elevated storage tank. The preliminary site for the tank is north of FM 455 along Hackberry Drive. The tank will ex- pand elevated storage capacity of the City's culinary water system and allow for continued residential growth. Currently the City's water system is reaching its maximum capacity. While the surface water blending project pro- vides access to additional water sources, the elevated tank will increase storage capacity of the existing water resources available to the City. Land Contingencies, FY 15 Budget Acquisition, 5,000 50,000 Engineering, - Testing 150,000 Services, 25,000 The project is expected to be complete by the end of FY 2016 with a total project cost is $2,289,000. The FY 15 budget is $1,170,950. Water Line Improvements Part of the 2014 Bond issue included funding to make improvements to the City's water lines. This project will interconnect the new elevated storage tank to our existing system. Additionally, the project will loop the water system by adding a connection near FM 455 and US 75. This connection will allow the system to be "back fed" and create redundancy in the event of a major water line break. The project will be completed in FY 2016 with a total cost of $1,323,000. The FY 15 budget is $788,369. FY 15 Budget Land Contingencies, Acquisition, 69,750 78,750 Design Costs, 1501000 Const. Costs, 465,000 Testing Services, 24,869 E� Disinfection System Upgrades Contingencies, FY 15 BUdUD 9,140 Engineering, 52,600 A40 Testing Services, 5,260 Cosst. Costs, 263,000 The 2014 Bond issue also includes funding for improvements and upgrades to the City's water disinfection system. The pro- ject will install an anhydrous ammonia injection system and chlorine injection system. Furthermore, upgrades to the electrical system and upgrades to the sup- ply/solution piping will be completed. Finally, critical system monitoring and controls will be installed. This project will be completed in FY 15 with a project budg- et of $330,0000 Clemmons Creek Sewer Line The Clemmons Creek Sewer Line is a project that will be primarily funded by private development. The City is aware of proposed development that is slated to occur in the Clemmons Creels drainage basin. If the develop- ment occurs, the City will work with the developers to ensure the necessary infrastructure to support the de- velopment is constructed. It is anticipated this project will be completed in FY 15 is the proposed development occurs. Costs estimates for this project are $1,500,000. If the City participates in this project, funding will come from existing impact and developer fees. Ferguson Parkway The proposed Lakeview Estates Development will occur south of Rattan Elementary on the east side of Fergu- son Parkway. This development will add to the existing traffic on Ferguson and will compound the stacking problem that exists while school is in session at Rattan Elementary. Current plans will expand Ferguson Parkway to a 41ane divided roadway from FM 455 south past the elemen- tary school to the entrance of Oak Hollow. From Oalc Hollow the roadway will be reduced to a two lane im- proved roadway to the Lakeview Estates Development. Funding for the this project will be from Collin County Road Bonds and from the Developer. The total project cost is $1,062,824 and is expected to be completed in FY 15. E1e3 11 Anna Lakeview Park FY 2015 Proposed Budget Capital Improvements The proposed Lakeview Estates Development will include the addition of Lakeview Park and will connect with the City's master park and trail plan. The developer will fund this project 100% for the City, in return the City will waive a portion of park fees equal to the cost of the improvements made by the developer. The park will be along the edge of Anna Lake and includes walkingtails, gazebo, FY 15 Budget Engineering, restrooms, playground, dock, and picnic 27,740 tables. The trails will connect to the south Furn/Fiat/Equip, tip of the trails at Natural Springs Park. 8,370 The project is expected to be completed by the end of FY 17 for a total cost of $475,921. The FY 15 improvements are expected to cost $162,210. Natural Springs Park Improvements The proposed improvements to Natural Springs Park are funded through an allocation of Parlcs Trust re- sources. The Parks Trust is discussed in the Restricted Revenue section of the budget. The proposed improvements for FY 15 include the following: Improvement Cost Gazebo $60,500 Trash Enclosure $8,000 Restroom $48,400 Total $116,900 Slayter Creek Park Improvements The proposed improvements to Slayter Creels Park are funded through an allocation of Parks Trust resources. The Parlcs Trust is discussed in the Restricted Revenue section of the budget. The proposed improvements for FY 15 include a mobile restroom with flush toilets, running water, and cli- mate controls. The proposed cost is $9,000. The restroom will be located near the splash pad to provide an additional restroom facility for park patrons. E�� m The City of Anna is closely involved with the Anna Economic Development Corporation (EDC) and the Anna Community Development Corporation (CDC). The corporations are sometimes referred to as Type A and Type B corporations. These corporations are presented in the annual budget as a component unit of the City of Anna. Each corporation acts under the direction of a seven member board appoint- ed by the City Council and has their own budget separate and distinct from the City of Anna budget. In addition to being managed by their boards, both the EDC and CDC budgets must be approved by the City Council. As discussed previously in this budget, the city sales tax rate is 8.25%. The state takes 6.5% leaving 2% in the city. Of the remaining 2% the City of Anna receives 1%, the EDC and CDC each received .5%. Both corporations rely almost ex- clusively on sales tax for their revenue; however, the EDC has a revenue generating lease agreement on the old post office while the CDC now has a revolving loan fund that is beginning to generate .revenue (the v)lving loan fund is restricted revenue), enue sources for the EDC and CDC. re- ECONOMIC DEVELOPMENT CORPORATION The table below illustrates the rev - Both the EDC and the CDC undertake projects that improve the quality of life in Anna through a variety to eligible projects ranging from the creation of jobs to investments in park facilities. Improvements funded through each corporation have specific eligibility requirements that must be met in order to receive funding. Chapter 501 of the Local Government Code governs the COMMUNITY creation and operation of Type A and Type B corporations. Additionally, D EV E LO P M E N T Chapter so4 specifically governs Type A corporations while Chanter 505 CO R PO RATI O N specifically governs Type B corporations. and the CDC is a type B corporation. EDC REVENUE The EDC is a type A corporation TYPE ACTUAL BUDGET ESTIMATE PROPOSED %CHANGE 2012-2013 2013-2014 2013-2014 2014-2015 Bdgt/Prpsd SALES TAX $287,324 $280,000 $310,000 $315,000 13% INTEREST $291 $225 $225 $250 11% REVOLVING LOAN FUND $0 $54,0001 $54,0001 $54,000 0% TOTAL 89-825E $287,6151 $334,2251 $364,2251 $369,250 10% CDC REVENUE SALES TAX $287,324 $280,000 $310,000 $315,000 13% INTEREST $625 $225 $225 $250 11% LEASE REVENUE $30,000 $30,000 $30,000 $30,000 0% TOTAL 89-826E $317,949 $310,225 $340,225 $345,250 11% m Purpose/Description The Anna Community Development Corporation works to identify and fund community facilities and related pro- jects that enhance and improve the quality of life in Anna. FY 14 Accomplishments • Partnered with the EDC to support the Greater Anna Chamber of Commerce and their 5 annual commu- nity events • Partnered with the EDC to launch a Mobile App for the City to help connect Anna residents to local busi- nesses • Funded the water recirculating system for the Slayter Creek Park Splash Pad • Funded additional part-time employees to help maintain the City parks FY 15 Objectives • Continue to partner with the GACC to support and sponsor community events • Collect and maintain payments from Image Vision for the Revolving Loan Fund program • As funds permit, identify and fund community facilities and related projects that enhance and improve the quality of life in Anna Expense Summary TYPE ACTUAL BUDGET ESTIMATE PROPOSED %CHANGE SUPPLIES $194 $1,000 $1,000 $850 -15% SERVICES $218,279 $229,525 $249,525 $254,160 11% CAPITAL EXPENDITURES $36,550 $20,000 $0 $60,000 200% TOTAL 89-825E $255,023 $250,525 $250,525 $315,010 26% Ann FY 2015 Proposed Budget Community Development Corporation Proposed Budget Breakdown FY 15 Proposed CDC Budget SUPPLIES CAPITAL 0% EXPENDITURES_ . 18% New and Noteworthy for FY 15 Increased revenue to support a $60,000 commitment to park improvements yet to be determined m Purpose/Description The Anna Economic Development Corporation works in cooperation with the Anna Community Development Cor- poration to coordinate efforts to expand the city's business tax base with a focus on creating primaryjobs within the City of Anna. FY 14 Accomplishments • Partnered with the CDC to support the Greater Anna Chamber of Commerce and their 5 annual commu- nity events • Partnered with the CDC to launch a Mobile App for the City to help connect Anna residents to local busi- nesses • Executed strategies to attract retail businesses • Attended the ICSC local and national conferences to advance the Anna Name and build relationships with retailers and developers • Executed an Economic Development incentive agreement with Empowered Training Centre FY 15 Objectives • Identify and facilitate opportunities to extend fiber to serve commercial areas and new residential devel- opments • Cultivate relationships with medical groups and hospitals that could potentially locate in Anna as we grow • Survey existing Anna businesses and other businesses in the medical and IT industries to identify the skill sets/degrees/experience they need in their work force. • Make site visits to successful tech business parks in the area and create list of standard criteria for the development and location of a successful tech business park • Create an economic and fiscal impact analysis application specific for retail businesses • Continue to support the Greater Anna Chamber of Commerce • Continue collaboration with developers and land owners to identify and promote retail and business de- velopment opportunities within the City of Anna • Market and sell the EDC 48 acres Expense Summary TYPE ACTUAL BUDGET ESTIMATE PROPOSED %CHANGE SUPPLIES $2,021 $5,075 $5,075 $4,750 -6% SERVICES $185,423 $198,123 $192,613 $205,170 4% CAPITAL EXPENDITURES $116,101 $51,500 $51,500 $105,000 104% TOTAL 89-825E $303,545 $254,698 $249,188 $314,920 24% Proposed Budget Breakdown FY 15 Proposed EDC Budget SUPPLIES 2% OFCAPITAL EXPENDITURES 32% New and Noteworthy for FY 15 Increased revenue to support a $105,000 commitment to incentive agreements and other EDC eligible invest- ments in job creation; these investments are yet to be determined 91 The Supplemental Information section contains the following information: • Capital Improvements Plan • Debt Management Plan • Bond Ratings • Financial and Investment Policies • Budget Information from City Charter • Budget Ordinance (included after adoption in September) 92 City of Anna DRAFT FY 2015 Capital Improvements Plan The addition of a permanentstructural improvementor the restoration ofsome aspect of property that will either enhance the property's overall value or increases its useful life *All projects are subject to available funding in any given Fiscal Year; therefore, this document does not represent a funding guarantee for any given project 93 BUILDINGS A relatively permanent enclosed construction over a plot of land, having a roof and usually windows and often more than one level, used for any of a wide variety of activities City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 15 - 17 City Hall Admin Total Project Cost $ 10,550,000 FY 15 Budget $ 100,000 Project Description Consistent with the Downtown Revitalization Plan, the City plans to build a new City Hall. While conceptual at this point, the new space will provide a centralized location to interact with all City service except for public safety and public works Regulatory or Legal Mandates Operational Necessity/Justification ADA requirements, competitive bids With current and future growth projections for the city and the region, we are planning for future needs. We have outgrown our facilities and are in need of updated and permanent accommodations. City Sources of Funding Non -City Sources of Funding Modest amounts of fund balance if available and approved Bonds Proposed Project Budget FY 15 FY 16 FY 17 FY 18 FY 19 Future Total Land Acquisition Testing Services 32,000 32,000 Design Costs 100,000 542,000 642,000 Const, Costs 11500,000 7,230,000 81730,000 Const. Mngmt. _ Furn/Fixt/Equip 598,000 598,000 Engineering 98,000 98,000 Other Prof. Fees 140,000 140,000 Contingencies 310,000 310,000 Total 100,000 21312,000 81138,000 - - 10,550,000 95 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 17 -18 Fire Station #1 Fire Total Project Cost $ 61227,000 FY 15 Budget $ - Project Description The current fire station, built in 1967 has had several additions and renovations. It has served the community well. However, it is currently not efficient or effective in serving the community for the long term. A new facility incorporating drive through apparatus bays, offices, storage, administrative & training areas, crew quarters and amenities is greatly needed. The facility would be designed to meet the needs of Anna for the next 30+ years and would provide a much greater level of enhanced customer service then the current facility. Additionally, the design would help anchor to future growth along highway 5. •''`-" '. Regulatory or Legal Mandates Operational Necessity/Justification None The current fire station is no longer able to support the effective and efficient operations of a growing Fire Department. City Sources of Funding Non -City Sources of Funding Bonds and some opportunity for limited grant funding assistance but it is not anticipated that this would provide full funding, if any, for this project. Proposed Project Budget Land Acquisition - Testing Services 20,000 20,000 Design Costs 432,000 432,000 Const. Costs 5,073,000 51073,000 Const. Mngmt. - Furn/Fixt/Equip 408,000 408,000 Engineering 51,000 51,000 Other Prof. Fees 62,000 62,000 Contingencies 181,000 181,000 Total - 565,000 51662,000 6,227,000 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Future New Police Department Police Total Project Cost $ 71598,173 FY 15 Budget $ - Prolect Description As identified in our space need assessment conducted in FY 14, the City will need to build a new Police Station to accommodate the current and expected growth. y Regulatory or Legal Mandates Operational Necessity/Justification ADA requirements, competitive bids With current and future growth projections for the city and the region, we are planning for future needs. When the new City Hall is complete it will free up some space; however, a new facility will ultimately be necessary. City Sources of Funding Non -City Sources of Funding Bonds Proposed Project Budget Land Acquisition - Testing Services 23,000 23,000 Design Costs 529,000 529,000 Cons. Costs 61221,653 61221,653 Const. Mngmt. Furn/Fixt/Equip 427,000 427,000 Engineering 63,000 63,000 Other Prof. Fees 114,000 114,000 Contingencies 220,520 220,520 Total - - 71598,173 71598,173 97 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Future Fire Station #1 Fire Total Project Cost $ 31832,000 FY 15 Budget $ - Project Description As the city of Anna grows and population densities, sub —divisions and commercial development increases so does the need to �f provide timely service to those portions of our community that #� exceed benchmark response times. A second station will facilitate r efficient and effective response to areas that may be underserved. rim inn WE m I9 I'� i ��10 IMw row Regulatory or Legal Mandates Operational Necessity/Justification None To maintain effective response capabilities in new growth areas of the city. City Sources of Funding Non -City Sources of Funding Bonds, and there may be some opportunity for limited grant funding assistance but it is not anticipated that this would provide full funding, if any, for this project. Proposed Project Budget Land Acquisition - Testing Services 14,000 14,000 Design Costs 275,000 275,000 Const. Costs 31225,000 31225,000 Const. Mngmt. Furn/Fixt/Equip 136,000 136,000 Engineering 33,000 33,000 Other Prof. Fees 38,000 38,000 Contingencies 111,000 1111000 Total - - - - - 31832,000 31832,000 <a.. ..r WAT E R A� D WASTE WAT E R A transparent, odorless, tasteless liquid, a compound of hydrogen and oxygen; Liquid and solid waste carried off in sewers or drains City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 13 - 15 Ph. 3 Water Blending Water Total Project Cost $ 1,5921679 FY 15 Budget $ 1,5921679 Protect Description Due to current system demands and expected growth over the next 10-years, the City must access out treated surface water through our contract with the GTUA. We can immediately access up to I- 0.1625 MGD of treated surface water. To mitigate Y ; problems with mixing ground water with treated surface water this project will blend the water sources at each of our 4 well sites before delivery to the water distribution system. `r Regulatory or Legal Mandates Operational Necessity/Justification The city is approaching and may exceed the TCEQ The city is prepared to accommodate future growth mandated maximum daily capacity our water with our south take point and other potential GTUA system. Upgrades are necessary to keep pace with take points. Without taking water from these other growth supplies we cannot continue to adequately serve out citizens City Sources of Funding Non -City Sources of Funding 2012 CO, 2014 CO Proposed Project Budget FY 15 FY 16 FY 17 FY 18 FY 19 Future Total Land Acquisition - Testing Services 26,884 26,884 Design Costs - Const. Costs 11344,200 11344,200 Const. Mngmt. - Furn/Fixt/Equip - Engineering 187,990 1871990 Other Prof. Fees 33,605 33,605 Contingencies - Total 11592,679 - - 11592,679 100 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 14 - 15 WWTP Upgrades Sewer Total Project Cost $ 715,000 FY 15 Budget $ 715,000 Project Description Upgrade to existing equipment and fixtures to meet TCEQ guidelines and allow for maximum useful life and efficient operations of the existing 1 WWTP 6..J Regulatory or Legal Mandates Operational Necessity/Justification Texas Commission on Environmental Quality (TCEQ) In order to keep pace with growth and avoid costly and requires certain standards be maintained in order to unnecessary TCEQ violations, the plant needs to be updated operate a WWTP. This project will allow to city to make to meet TCEQ requirements the required upgrades to its WWTP City Sources of Funding Non -City Sources of Funding 2012 CO Proposed Project Budget FY 15 FY 16 FY 17 FY 18 FY 19 Future Total Land Acquisition - Testing Services 21500 21500 Design Costs Const. Costs 650,000 650,000 Const. Mngmt. - Furn/Fixt/Equip - Engineering 62,500 62,500 Other Prof. Fees Contingencies Total 715,000 - - - 7151000 101 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 15 - 16 Hackberry Storage Tank Water Total Project Cost $ 21289,000 FY 15 Budget $ 11170,950 Project Description Construction of a .75 million to 1 million gallon elevated - I storage North of FM 455 near Hackberry Drive. The tank will be a composite tank to expand the elevated storage capacity of the City's culinary water system and allow for continued residential growth. .. 4 Regulatory or Legal Mandates Operational Necessity/Justification In order to meet TCEQ mandated storage capacity levels , Our current system is reaching its maximum capacity. The the city will be required to build another elevated storage blended system project will add some capacity; however, tank an elevated storage tank will be required to keep pace with growth City Sources of Funding Non -City Sources of Funding 2014 CO Proposed Project Budget FY 15 FY 16 FY 17 FY 18 FY 19 Future Total Land Acquisition 50,000 50,000 Testing Services 25,000 621400 87,400 Design Costs - Const. Costs 940,950 11000,000 11940,950 Const. Mngmt. - Furn/Fixt/Equip - Engineering 150,000 45,000 195,000 Other Prof. Fees Contingencies 51000 10,650 15,650 Total 11170,950 11118p05O - - - - 21289,000 102 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 15 - 16 Distribution Lines Water Total Project Cost 7s 11323,000 FY 15 Budget 7s 788,369 Project Description - Install a combination of valves and pipes ranging from 12" in up to 16" to interconnect wells and tanks. This project will also allow the overall water distribution system to be looped and created a more redundant system. �} I Regulatory or Legal Mandates Operational Necessity/Justification None The water main break in 2013 was an example of the need to provide greater redundancy in our water system. Additionally, the tower to be constructed will need to be interconnected with the overall water system City Sources of Funding Non -City Sources of Funding: 2014 CO Proposed Project Budget FY 15 FY 16 FY 17 FY 18 FY 19 Future Total Land Acquisition 78,750 78,750 Testing Services 24,869 24,869 49,738 Design Costs 150,000 48,950 198,950 Const. Costs 465,000 400,000 865,000 Const. Mngmt. - Furn/Fixt/Equip - Engineering - Other Prof. Fees - Contingencies 69,750 60,812 130,562 Total 788,369 534,631 - - - - 1,323,000 103 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 15 Disinfection Upgrades Water Total Project Cost 7s 330,000 FY 15 Budget $ 330,000 Project Description Install an anhydrous ammonia injection system, upgrade vvval:Ittll� Vulve--- d� chlorine injection system, complete electrical upgrades, install upgrade yard piping for supply and solution, and �1Ii11111•il•f install necessary SCADA monitoring and controls. ti 111if11• Cull Hllliliell Watt•r Winer _ 1 I ;clot Regulatory or Legal Mandates Operational Necessity/Justification The system is somewhat antiquated and must be updated to a more efficient system. Additionally, the system will allow for the treatment of surface water when introduced to our system. City Sources of Funding Non -City Sources of Funding 2014 CO Proposed Project Budget FY 15 FY 16 FY 17 FY 18 FY 19 Future Total Land Acquisition Testing Services 51260 51260 Design Costs - Const. Costs 263,000 263,000 Const. Mngmt. - Furn/Fixt/Equip - Engineering 52,600 52,600 Other Prof. Fees Contingencies 91140 91140 Total 330,000 - - - 330,000 104 of Anna CapitalCity . Detail••Project-•. Clemmons Creek Line Total Project Cost It see Proiect Description Extend Clemmons Creek Sewer Line as a Future Projectdevelopment project _ u •-r � ML .•, �� i' � RegulatorV or Legal Mandates Operational NecessitV/Justification CitV Sourcesof • •n,,,CitV Sources of • Sewer Impact Fee Revenue Developer Funded Proposed Project Budget FY 15 FY 16 FY 17 FY 18 FY 19 Future Total Land Acquisition Testing Services Design Costs Furn/Fixt/Equip OtherEngineering Contingencies 105 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 Throckmorton Creek Line Sewer Total Project Cost $ 11600,000 FY 15 Budget $ - Pro'ect Description Extend Throckmorton Creek Sewer Line as development occurs in the project area. This will eliminate the lift station on Taylor Blvd. and allow for gravity flow regional line. JIB • . Regulatory or Legal Mandates Operational Necessity/Justification None Project is dictated by population growth in the project area and drainage basin. City Sources of Funding Non -City Sources of Funding Sewer Impact Fee Revenue, Developer Funded Developer Funded Proposed Project Budget Land Acquisition Testing Services Design Costs Const. Costs 11600,000 1,6001000 Const. Mngmt. Furn/Fixt/Equip Engineering - Other Prof. Fees Contingencies - Total 11600,000 - - - - 11600,000 106 A00. \: IF IF - IFIF - IF r; FIF IF Fm IF 9-1 C IF I IF IF IF IF IF IF I IF IF City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Annually Street Rehab Program Streets Total Project Cost $ 750,000 FY 15 Budget $ 110,000 Project Description! Each year the city will reserve $100,000+ of general fund revenues to repair a street. The particular street project �- each year will determined based upon the level of wear •� found upon city streets. rim Regulatory or Legal Mandates Operational Necessity/Justification Competitive bids, safety of citizens. City streets have an anticipated life expectancy. As the city grows and the streets experience wear and tear roads will need to be repaired/replaced. City Sources of Funding Non -City Sources of Funding General Fund revenues. Proposed Project Budget Land Acquisition - Testing Services Design Costs - Const. Costs 110,000 115,000 120,000 125,000 130,000 150,000 7501000 Const. Mngmt. - Furn/Fixt/Equip - Engineering - Other Prof. Fees - Contingencies Total 110,000 115,000 120,000 125,000 130,000 150,000 750,000 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 15 Expand Ferguson Pkwy. Streets Total Project Cost $ 11062,824 FY 15 Budget $ 1,062,824 Project Description From the proposed Lakeview Estates Development to FM 455 a four lane divided roadway will be constructed. i i Regulatory or Legal Mandates Operational Necessity/Justification Eliminate stacking problem at Rattan Elementary, create capacity to carry traffic to proposed and expanded developments. City Sources of Funding Non -City Sources of Funding Limited tax reinvestment agreement with developer to fund Contributed capital from developer and Collin County Road the City's portion. Bonds. Proposed Project Budget FY 15 FY 16 FY 17 FY 18 FY 19 Future Total Land Acquisition Testing Services - Design Costs - Const. Costs 885,687 885,687 Const. Mngmt. - Furn/Fixt/Equip Engineering 1411737 141,737 Other Prof. Fees - Contingencies 35,400 35,400 Total 11062,824 - 11062,824 109 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 Hackberry - Slayter Creek Streets Total Project Cost $ 423,000 FY 15 Budget $ - Project Description ' Reconstruct Hackberry Lane from Highway 5 to Slayter Creek. Hackberry Lane transitions from a four lane divided road to a narrow two lane road. Project will improve the transition, install curb and gutter, and possibly create a turn ' lane at Highway 5. i-.. I Regulatory or Legal Mandates Operational Necessity/Justification With the growth in the West Crossing development, Hackberry lane is experiencing increased traffic. This particular section needs to be improved for safety reasons as well as road capacity. City Sources of Funding Non -City Sources of Funding General Fund Revenue Bonds Proposed Project Budget Land Acquisition - Testing Services Design Costs - Const. Costs Const. Mngmt. 423,000 423,000 Furn/Fixt/Equip - Engineering - Other Prof. Fees Contingencies Total 423,000 - - - 423,000 110 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Future Extend Ferguson Pkwy Streets Total Project Cost $ 91862,200 FY 15 Budget $ - Proiect Description ---- - Obtain right of way and engineering costs to run Ferguson Parkway from Taylor Blvd. to Collin County Outer Loop. =t Y y� Regulatory or Legal Mandates Operational Necessity/Justification In preparation for and response to growth, this is a future project the city anticipates to meet our transportation needs. City Sources of Funding Non -City Sources of Funding General Fund Revenue Bonds Proposed Project Budget Land Acquisition Testing Services Design Costs Const. Costs - Const. Mngmt. Furn/Fixt/Equip Engineering Other Prof. Fees Contingencies Total 91862,200 91862,200 111 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Future FM 455 - East Fork Crk. Streets Total Project Cost $ 18,341,800 FY 15 Budget $ - Proiect Description Engineering costs to expand FM 455 west of Highway 75 to EastFork Creek. AAA AAA ;+ } - Regulatory or Legal Mandates Operational Necessity/Justification In preparation for and response to growth, this is a future project the city anticipates to meet our transportation needs. City Sources of Funding Non-CitV Sources of Funding General Fund Revenue Bonds, contributes capital from developers Proposed Project Budget Land Acquisition - Testing Services - Design Costs - Const. Costs - Const. Mngmt. - Furn/Fixt/Equip - Engineering - Other Prof. Fees - Contingencies Total - - - - 18,341,800 18,341,800 112 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Future Rosamond Pkwy. - US 75 Streets Total Project Cost $ 11,562,600 FY 15 Budget $ - Project Description Engineering costs to run Rosamond Parkway from Highway 5 to U.S. 75, Rosamond Parkway currently terminates at the Anna High School. i Regulatory or Legal Mandates Operational Necessity/Justification In preparation for and response to growth, this is a future project the city anticipates to meet our transportation needs. City Sources of Funding Non -City Sources of Funding General Fund Revenue Bonds Proposed Project Budget Land Acquisition - Testing Services Design Costs - Const. Costs - Const. Mngmt. Furn/Fixt/Equip Engineering - Other Prof. Fees - Contingencies Total - - 111562,600 11,562,600 113 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Future Matua Rd/CR 371 Streets Total Project Cost $ 91679,400 FY 15 Budget $ - Project Description Reconstruct Mantua Rd./CR 371 from Highway 5 to U.S. 75 LL 1 �- ,._ ` aid Regulatory or Legal Mandates Operational Necessity/Justification In preparation for and response to growth, this is a future project the city anticipates to meet our transportation needs. City Sources of Funding Non -City Sources of Funding General Fund Revenue Bonds Proposed Project Budget Land Acquisition - Testing Services - Design Costs - Const. Costs Const. Mngmt. - Furn/Fixt/Equip - Engineering - Other Prof. Fees Contingencies Total - 91679,400 91679,400 114 cam• l:pt or �y`F �.. ` 'f 'It It. City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 15 - 17 Lakeview Park Parks Total Project Cost $ 475,921 FY 15 Budget $ 162,210 Protect Description In connection with the Lakeview Estates addition, a park along Anna Lake will be constructed that includes walking tails, gazebo, restrooms, playground, dock, and picnic tables. The trails will connect to the south tip of the trails at Natural Springs Park. i c i Regulatory or Legal Mandates Operational Necessity/Justification In preparation for and response to growth, this is a future project the city anticipates to meet our transportation needs. City Sources of Funding Non -City Sources of Funding Contributed capital by the developer paid in lieu of developer fees Proposed Project Budget FY 15 FY 16 FY 17 FY 18 FY 19 Future Total Land Acquisition - Testing Services - Design Costs - Const. Costs 126,100 118,620 82,500 327,220 Const. Mngmt. - Furn/Fixt/Equip 81370 28,507 33,600 70,477 Engineering 27,740 30,484 20,000 78,224 Other Prof. Fees - Contingencies - Total 162,210 177,611 136,100 - 4751921 116 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 15 -16 NSP Improvements Parks Total Project Cost $ 224,700 FY 15 Budget $ 116,900 Project Description Make improvements to Natural Springs Park for the benefit t F of park patrons. FY 15 improvements include a restroom, - gazebo replacement and a trash enclosure. Projects considered for the near future are a water well to keep the lake level up and dredging the lake RegulatorV or Legal Mandates Operational NecessitV/Justification None The City of Anna parks master plan is a comprehensive plan for an interconnected top notch park system. Anna is known for its park system and these improvements will enhance Natural Springs Park CitV Sources of Funding Non-CitV Sources of Funding Parks Trust Fund Revenues, General Fund Revenues, CDC Contributions Proposed Project Budget FY 15 FY 16 FY 17 FY 18 FY 182 Future Total Land Acquisition _ Testing Services _ Design Costs _ Const. Costs 116,900 107,800 224,700 Const. Mngmt. _ Furn/Fixt/Equip Engineering _ Other Prof. Fees Contingencies Total 116,900 107,800 - - 224,700 117 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 15 - 16 SCP Improvements Parks Total Project Cost $ 105,800 FY 15 Budget $ 9,000 Project Description Make improvements to Slayter Creek Park for the benefit of r s park patrons. FY 15 improvements include providing a temporary restroom for the benefit of patrons enjoying the splash pad. Future improvements include shade canopies over the existing bleachers at the ball fields. y� 3 1 Regulatory or Legal Mandates Operational Necessity/Justification The distance to the regular restroom at the ball fields has proven to be difficult for some park patrons. This would provide a convenient restroom on a temporary basis as we evaluate a more permanent solution. City Sources of Funding Non -City Sources of Funding Park Trust Funds, CDC Contributions Proposed Project Budget FY 15 FY 16 FY 17 FY 18 FY 19 Future Total Land Acquisition - Testing Services - Design Costs - Const. Costs 91000 48,400 48,400 105,800 Const. Mngmt. - Furn/Fixt/Equip - Engineering - Other Prof. Fees - Contingencies - Total %000 - 48,400 48,400 - - 105,800 118 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 Dog Park Parks Total Project Cost $ 45,000 FY 15 Budget $ - Project Description Part of the City Council's strategic implementation plan includes locating a suitable location for a dog park and identifying funding mechanisms. City staff will evaluate PF locations and costs and propose a plan for Dog Park as part IF of the FY 16 budget. - 1 ' � W r 3 III- I++=}; 1{ IF NFIN-J 01 3 ..1i'a.5'v�r'vvh?SLi 5.:. Regulatory or Legal Mandates Operational Necessity/Justification The City of Anna parks master plan is a comprehensive plan for an interconnected top notch park system. Anna is known for its park system and these improvements will enhance the City's park system. City Sources of Funding Non -City Sources of Funding Parks Trust Fund Revenues, General Fund Revenues, CDC Contributions Proposed Project Budget IFFY 15 FY 16 FY 17 FY 18 FY 19 Future Total Land Acquisition - Testing Services - Design Costs - Const. Costs 45,000 45,000 Const. Mngmt. Furn/Fixt/Equip Engineering - Other Prof. Fees Contingencies Total - 45,000 - - - 45,000 119 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 18 - Future Geer Park Ph. 1 Parks Total Project Cost $ 11650,000 FY 15 Budget $ - Project Description Geer park has been designed as a park geared towards middle school and younger. Fields for soccer, baseball, and other long muscle sports and planned as well as lights, parking, and other amenities. Regulatory or Legal Mandates Operational Necessity/Justification Geer park is part of the City's master park plan. In order to provide the quality of life residents expect, this park is a priority for expansion. City Sources of Funding Non -City Sources of Funding Parks Trust Proposed Project Budget Land Acquisition Testing Services Design Costs 150,000 150,000 Const. Costs 11500,000 1,5001000 Const. Mngmt. _ Furn/Fixt/Equip Engineering _ Other Prof. Fees Contingencies Total - 150,000 11500,000 1,650,000 120 VEHICLES Any means in or by which someone travels or something is carried or conveyed 121 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 - Future PD Vehicle Replacement Police Total Project Cost $ 180,000 FY 15 Budget $ - Proiect Description Vehicle replacement schedule based on mileage and years of service. Police Equipment up -fits included for the appropriate patrol vehicles. Two units in FY 16, 1 in FY 17, and 1 in FY 19. .,.'up ... �� .... ti ILL— o Regulatory or Legal Mandates Operational Necessity/Justification All vehicles have a life expectancy. Patrol vehicles have a rough life and their life span is reduced accordingly. City Sources of Funding Non -City Sources of Funding General Fund Revenues Proposed Project Budget Land Acquisition - Testing Services - Design Costs - Const. Costs - Const. Mngmt. Furn/Fixt/Equip 70,000 36,000 36,000 38,000 180,000 Engineering - Other Prof. Fees - Contingencies - Total - 70,000 36,000 - 36,000 38,000 180,000 122 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 17 - Future PW Vehicle Replacement Water Total Project Cost $ 120,000 FY 15 Budget $ - Proiect Description Vehicle replacement based upon mileage and years of Aiii service. Public Works plans to purchase two pick up trucks - I to replace vehicles in their existing fleet. Regulatory or Legal Mandates Operational Necessity/Justification All vehicles have a life expectancy. PW vehicles have a rough life and their life span is reduced accordingly. City Sources of Funding Non -City Sources of Funding General Fund Revenues Proposed Project Budget Land Acquisition - Testing Services - Design Costs - Const. Costs - Const. Mngmt. - Furn/Fixt/Equip 30,000 30,000 30,000 30,000 120,000 Engineering - Other Prof. Fees Contingencies - Total - - 30,000 30,000 30,000 30,000 120,000 123 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Future Replace E-902 Fire Total Project Cost $ 600,000 FY 15 Budget $ - Proiect Description This project would consist of replacing current Engine 902, The new Rescue / Pumper will be designed to carry all necessary equipment & tools for firefighting and also light ' rescue & EMS duties. E-902 would be placed into reserve o status and kept equipped to serve as a reserve engine if needed. This would assist us in keeping our current ISO rating of a 2. 4 Regulatory or Legal Mandates Operational Necessity/Justification NFPA E-902 is a 2000 year model and is beginning to show wear and tear. E-902 would be placed into reserve status and kept equipped to serve as a reserve engine if needed. City Sources of Funding Non -City Sources of Funding General Fund Revenues Grant funding from various sources will be researched and applied for accordingly. Proposed Project Budget Land Acquisition - Testing Services - Design Costs - Cons. Costs Const. Mngmt. Furn/Fixt/Equip 600,000 600,000 Engineering Other Prof. Fees Contingencies Total - - - 600,000 600,000 124 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Future Aerial Platform Fire Total Project Cost $ 11500,000 FY 15 Budget $ - Project Description The design and purchase of a aerial device will be needed as development and growth continues. The device will allow for an elevated master stream for firefighting needs and also increase rescue capabilities of the Department. The unit should be designed with at least a 1500 gpm pump, 100 ft. ladder with platform, 300 gallon water tank, a complement of ground ladders, hose, tools and various other tools for extrication and EMS duties. Regulatory or Legal Mandates Operational Necessity/Justification The device is required to meet current NFPA standards. ISO An aerial platform is needed to provide adequate & dictates 3+ story structures require an elevated device required fire flow capabilities on large commercial responding on the first alarm. structures and multi family residence complexes. Mutual Aid resources are 20+ minutes away. CitV Sources of Funding Non -City Sources of Funding Bonds; FEMA Grants. This item was applied for in the 2013 grant application period. No awards have been announced as of 4-1-14. Proposed Project Budget Land Acquisition - Testing Services Design Costs - Const. Costs Const. Mngmt. - Furn/Fixt/Equip 11500,000 11500,000 Engineering - Other Prof. Fees - Contingencies - Total - - - 1,500,000 11500,000 125 MACHINERY AND EQUIPMENT An apparatus consisting of interrelated parts with separate fwlctions, used in the performance ofsome kind ofworh; anything kept, furnished, or provided for a specific purpose 126 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 15 - FY 19 PD IT Replacements Police Total Project Cost $ 53,370 FY 15 Budget $ 18,980 Project Description Computer replacement based on the extensive everyday use and costs associated with upgrading exceed the value CC of the units. c1rio, 01 101010i_ ion o �fY i of t� Regulatory or Legal Mandates Operational Necessity/Justification If over $50k, bid proposals will be obtained. If not, three (3) Technology advances are beginning to render certain tech quotes will be obtained currently used obsolete. Much of the technology is in the vehicles and subject to extreme temperatures. City Sources of Funding Non -City Sources of Funding General Fund Revenue Proposed Project Budget FY 15 FY 16 FY 17 FY 18 FY 19 Future Total Land Acquisition - Testing Services - Design Costs - Const. Costs - Const. Mngmt. - Furn/Fixt/Equip 18,980 71300 13,000 71900 61190 53,370 Engineering - Other Prof. Fees - Contingencies - Total 18,980 71300 13,000 71900 61190 - 53,370 127 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department Annual PPE Fire Total Project Cost $ 180,000 FY 15 Budget $ 30,000 Protect Description This project would consist of replacing aging PPE (personal protective equipment). This is a priority in providing our firefighters with state of the art protection. Replacement of PPE that no longer meets safety requirements as well as having available PPE for new members is a necessity. A replacement plan of five sets each year will keep the Department in compliance with State & National standards. et Regulatory or Legal Mandates Operational Necessity/Justification NFPA, OSHA, TCFP Required to provide safety for firefighters. This replacement plan provides PPE for new members and works as a retention tool encouraging members to stay active and participate in Department training and shift rotations City Sources of Funding Non -City Sources of Funding General Fund, Fire Trust Grant funding from various sources will be researched and applied for accordingly Proposed Project Budget Land Acquisition - Testing Services - Design Costs - Const. Costs - Const. Mngmt. - Furn/Fixt/Equip 30,000 30,000 30,000 30,000 30,000 30,000 180,000 Engineering - Other Prof. Fees - Contingencies - Total 30,000 30,000 30,000 30,000 30,000 30,000 180,000 128 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 15 -18 FD IT Replacements Fire Total Project Cost 7s 46,600 FY 15 Budget $ 51500 Project Description This project would assist the FD become up to date with current technology. Firefighter safety would be increased through utilizing different programs to access building info & hazards. We would also be able to communicate with dispatch and view call notes. Systems would be like those PD has in place. FY 15 includes 2 new MDT's for E-901 & C- 901 would be purchased along with the monthly server cost / If ; to host our FD program. j 10 Regulatory or Legal Mandates Operational Necessity/Justification None To reflect industry best practices, increase firefighter safety and operational effectiveness also increase effective operations and reporting utilizing program developed over past year. This program has saved the FD 1,000's of dollars City Sources of Funding Non -City Sources of Funding General Fund, Fire Trust Proposed Project Budget FY 15 FY 16 FY 17 FY 18 FY 19 Future Total Land Acquisition - Testing Services - Design Costs - Const. Costs - Const. Mngmt. - Furn/Fixt/Equip 51500 35,500 31800 11800 46,600 Engineering - Other Prof. Fees - Contingencies - Total 51500 35,500 31800 1,800 If 46,600 129 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 - FY 19 Traffic Light Controls Fire Total Project Cost $ 38,000 FY 15 Budget $ - Project Description This purchase would equip traffic light with a system that would allow for safe entry into and away from a intersection. Emergency vehicles would be equipped with a signaling device that would activate the system located in the traffic signals and turn the intersection to red in all directions. Regulatory or Legal Mandates Operational Necessity/Justification None As Anna continues to grow more traffic controlled intersections will be coming online. This device will enable vehicles equipped with the signaling device to control intersections by turning the signal to red. Devices can also be used at gated communities. City Sources of Funding Non -City Sources of Funding General Fund Grant funding from various sources will be researched and applied for accordingly. Proposed Project Budget Land Acquisition Testing Services Design Costs - Const. Costs - Const. Mngmt. - Furn/Fixt/Equip 13,100 81300 81300 81300 38,000 Engineering - Other Prof. Fees - Contingencies - Total 13,100 81300 81300 81300 38,000 130 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 - 18 FixedLinx Meter Reader Water Total Project Cost 1$ 505,750 FY 15 Budget $ - Proiect DescriptionThe City currently uses technology for our radio read meters \ from Master Meter. Each meter can be read remotely via tea~ radio signal. This is currently done via drive -by in a PW i vehicle. This project will enable all water meters to be read remotely without the need for drive -by or manual reads. This project will be completed in phases based upon site surveys and determination of highest initial return on placement of the equipment. Aa)# td Regulatory or Legal Mandates Operational Necessity/Justification None Improve operational efficiency in the department/fund. Enable the more efficient use of personnel and delays any needs for new personnel. City Sources of Funding Non -City Sources of Funding Utility Fund Revenues Proposed Project Budget Land Acquisition - Testing Services - Design Costs - Const. Costs Const. Mngmt. - Furn/Fixt/Equip 135,750 160,000 210,000 505,750 Engineering - Other Prof. Fees - Contingencies Total 135,750 160,000 210,000 - - 505,750 131 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 16 - 17 SCBA's Fire Total Project Cost $ 94,640 FY 15 Budget $ - Proiect Description The purchase of 12 self contained breathing apparatus (SCBA) will allow for members involved in IDLH atmospheres and operations to be equipped with state of o the art respiratory protection. Keeping our SCBA's up to date with the current NFPA standard is critical. While '~ current units are still passing test, each year more repairs '► are needed to keep them in compliance. The proposed plan would fund replacements over 2 years. Regulatory or Legal Mandates Operational Necessity/Justification None The 12 SCBA's currently in use were purchased in 2002 under the 202 NFPA standards. These standards are now over 12 years old and the new SCBA's would be up to current standards. City Sources of Funding Non -City Sources of Funding General Fund, Fire Trust Proposed Project Budget Land Acquisition - Testing Services Design Costs - Const. Costs Const. Mngmt. - Furn/Fixt/Equip 52,640 42,000 94,640 Engineering - Other Prof. Fees - Contingencies - Total - 52,640 42,000 - - 94,640 132 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 17 - FY 19 Radio Replacements Fire Total Project Cost $ 72,000 FY 15 Budget $ - Prolect Description ( - This project would consist of replacing current hand held radios with digital radios. Portable radios are critical to F. firefighter safety and efficient and effective emergency operations. t ' Regulatory or Legal Mandates Operational Necessity/Justification None Current hand held radios are limited on capability. Current units would be replaced with the newest digital compliant radios available. However, current radios could be utilized for other city departments if needed after being reprogrammed. City Sources of Funding Non -City Sources of Funding General Fund, Fire Trust Grant funding from various sources will be researched and applied for accordingly. Proposed Project Budget Land Acquisition - Testing Services - Design Costs - Const. Costs Const. Mngmt. - Furn/Fixt/Equip 24,000 24,000 24,000 72,000 Engineering Other Prof. Fees - Contingencies Total - - 24,000 24,000 24,000 - 72,000 133 City of Anna - Capital Projects Detail Sheet Budget Year (s) Project Name Department FY 17 - FY 19 Early Warning Sirens Fire Total Project Cost $ 50,000 FY 15 Budget $ - Project Description This project would assist the Department in the ability to provide early outdoor warning to the citizens of Anna. This would allow for the installation of sirens in areas where signal is currently weak or undetectable. ' I i Regulatory or Legal Mandates Operational Necessity/Justification None As the City grows some different parts of the City may be unable to hear or react to the current sirens we have in place. City Sources of Funding Non -City Sources of Funding General Fund, Fire Trust Proposed Project Budget Land Acquisition Testing Services - Design Costs Const. Costs - Const. Mngmt. - Furn/Fixt/Equip 25,000 25,000 50,000 Engineering - Other Prof. Fees - Contingencies Total - 25,000 25,000 - 50,000 134 -- � TOTAL CAPITAL IMPROVEMENTS PLAN Total summary of economic costs of capital expenditures planned for the next5years and beyond 135 m O O M o m rn o 0 0 0 0 o a o Nzr O o 0 0 o T- H o 0 0 0 o 0 0 0 0 r� 0 0 0 N O O O O O O N O N O O O O O N N O O O O O O O O O H O LD O O O O O O O (D O 00 O O W E <} C1' 0) ^ Co 0 0 0 0 0 0 0 N O Ul CD N M N U1 Oi 00 fy 0 0 0 0 0 N N N ti N of .ti h%Zzj� Lr Lr 0 0 C 0 0 0 @ O N Ol l7 Ol H N M O O M Ul l0 M O R lD O^ N O V' Ul O 00N O O ,4, N Ul N U) Co m Ul N N M M U1 W tm t\ O [t W CO Ul W Ln [t N H lD H H W Ln O 00 O l6 n tvj Qj ti N W ti 01 N •-i N ti H N H In H H M M O p 0 O O O O O O O O O O O h O o 0 O O O O O 0 0 0 0 0 0 r•i H O 00 O O N lD O1 t I0 0 0 0 0 0 rn m D^ o 000 00 0 0 0 ar m (n ' 3 a � co Ln H m m Ln o Ln uo ti �o Lr) a+ r•1 M C71 C11 CO <'1 Ol rl H N rl l7 H H LL O O 0 0 i i 0 0 0 I i O O O M ro e-I lD � '-I eM-i >- Ln Ul um O OM 00 w N N Oi U) M H In U) H H H H >- LL z g 00 00 00 0 000 N 0 0 O O I t I I ILn O �- 00 C0 O O Cp l0 �D O z^ M M N N 00 M 4�t %D m m ei H iy LLI H 00 CO 7. 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O 00 ri 00 00 n 00 00 M M Ln 00 00 lD lD n 00 m o ri v r-L n O LD N ON N Im N N � ft LMD O N O Ln n O O O LD 00 lD Ql Ln M ri Ol al al Q1 r-I ri ri ri M N N N N N 0 0 0 0 0 N N N N N lMD S N � 00 a m v oo LD O M O N m M M m m m a v v v v rn Ln a � N n M N M e-1 i-1 ri ri ri ri ri W O1 O ri N N N M M M 0 0 0 0 0 N N N N N � a1 Ln rn n 00 Ln Ln L� n to lD I� N N N N N 00 M M M M M CF L!1 l0 n m m m m m 0 0 0 0 0 N N N N N O-I N N N IN N 0 0 0 N N N r7!'. a 0 N T C U a a E in o � U Q N R' zL 3 LL � O 9 VNN% N t� � IL r- 4— O LO 1..1� E L cm ^0 W E cm L v! � cB X (Q Q O U C I T Y O F A N N A, T E X A S r SF °r 3 a)Lp 8ror w 'o L `?O� E Q 1 �Or 3 n oa U in error 06 � Q or p v W n r� °r 010 r �br 8r or cro r sr or �or aj °r (8 8 8 8 8 VI VNF Ya ferr N L � p m � � I ti LL Ud O L OLM 0) O L c a) 0 a) O m C fCB C D a) 0 ■ 0 _a U m F- d LL MOODY IS INVESTORS SERVICE New Issue: Moody's assigns Al to City of Anna's (TX) $4.2M Combination Tax and Revenue Certificates of Obligation, Series 2014. Global Credit Research -17 Jan 2014 Ai applies to $8.4 million outstanding debt ANNA (CITY OF) TX Cities (including Towns, Villages and Townships) TX Moody's Rating ISSUE Combination Tax and Revenue Certificates of Obligation, Series 2014 Sale Amount $4,2151000 Expected Sale Date 02/03/14 Rating Description General Obligation Limited Tax Moody's Outlook NOO Opinion NEW YORK, January 17, 2014 --OPINION RATING Al Moody's Investors Service has assigned an Al rating to the City of Anna's (TX) $4.2 million Combination Tax and Revenue Certificates of Obligation, 1 Moody's has affirmed the Al rating on the city's $4.2 million of outstanding GOLT debt. Proceeds from the sale will fund improvements to the city's water and sewer system. SUMMARY RATING RATIONALE The bonds are secured by an ad valorem tax pledge levied within the limits prescribed by law on all taxable property within the city as well as a pledge of surplus revenues (not to exceed $1,000) of the city's waterworks and sewer system. Assignment of the Al rating reflects the city's small -but -growing tax base with a favorable location in Collin County (Aaa, stable), healthy financial position with strong General Fund reserves, average socioeconomic profile, and manageable debt burden. STRENGTHS: -Healthy General Fund balance -Location in Collin County posoned for long-term economic growth CHALLENGES: -Future growth could drive need for significant debt issuance -Elevated overall debt burden including overlapping debt of Anna ISD DETAILED CREDIT DISCUSSION TAX BASE GROWTH ACCELERATES FOLLOWING RECENT SLOWDOWN We expect the city's residential tax base to grow given a favorable location in Collin County about 40 miles north of the City of Dallas (GO Aa1 stable). The city is conveniently located to employment centers in Plano (GO Aaa), Richardson (GO Aaa stable), and Sherman (not -rated) and affordable pricing continues to encourage strong demand for housing. Population increased a staggering 573.4% between 2000 and 2010 to 8,249. After rapid growth through 2009, the tax base registered three consecutive annual declines in fiscals 2010 through 2012 when new construction slowed and existing values fell. Growth has since resumed with a rebound in single family construction and full valuation grew 3.7% in 2013 and 14.5% in 2014 to $431 million. The tax base remains primarily single-family homes (63%) and acreage (15%) with some commercial presence (11 %). Residential development is expected to continue and officials anticipate some commercial development centered around the intersection of 75 and 455, where there is currently a CVS under construction. Resident income levels approximate state and national medians with median family income equal to 103% of the Texas median and 95% of the U.S. median (American Community Survey 2006-10). Collin County's unemployment rate was 5.3% as of October 2013 and below the 6.0% state and 7.0% national unemployment rates for the same period. The city's favorable location is a strength and we note that continued expansion and diversification of the tax base would likely result in positive pressure on the rating. STRONG FINANCIAL POSITION SUPPORTED BY HEALTHY GENERAL FUND BALANCE We believe that the city's financial position will remain strong due to conservative budgeting practices and healthy General Fund balance. The city has a formally adopted policy to maintain General Fund reserves equal to at least 25% of appropriations, but has historically maintained higher reserve levels. Surpluses in each of the last four fiscal years increased the General Fund balance to $2.6 million or 64.7% of revenues in fiscal 2012, an increase of $1.9 million from fiscal 2009. General Fund balance has remained above 64% of revenues for the last five years. General Fund operations are primarily supported by property taxes (50.3%), sales taxes (12.8%), and developmentfees (14.1%). The city has historically budgeted sales tax conservatively. In fiscal 2012, the city budgeted a modest deficit but generated a $312,000 surplus due to development -related revenues outperforming budget. Building permits were $144,000 over budget and developer and impact fees were $205,000 over budget. The fiscal 2013 budget increased appropriations 10.4% to $3.7 million and was balanced assuming a modest one percent increase in sales tax revenue. Officials report unaudited ending General Fund balance of $2.5 million or a still healthy 67.6% of budgeted revenues. The fiscal 2014 budget increased appropriations 10.7% to $4.1 million and includes three new positions. We expect the city's financial position to remain a credit strength given conservative budgeting and healthy General Fund balance. DEBT BURDEN MITIGATED BY WATER AND SEWER SYSTEM SUPPORT; SIGNIFICANT OVERLAPPING DEBT The city's debt burden is expected to remain manageable given that the majority of debt service is supported by water and sewer system revenues. The city's debt burdens are 3.9% on a direct basis and 20.2% overall when including all outstanding debt. When excluding debt supported by the water and sewer system, the direct debt burden is a more manageable 1.0% of fiscal year 2014 full valuation. The overall debt burden remains a high 17.3% given the large amount of overlapping debt from Anna Independent School District (GO Al negative), which has issued significant debt to keep up with enrollment growth. Payout is below average with 45.3% of principal repaid within ten years. While the city has no immediate plans for additional debt, the ten year Capital Improvement Plan is updated frequently to keep pace with population growth. Anna has a modest employee pension burden based on participation in the Texas Municipal Retirement System, an agent multi -employer retirement plan administered by the State of Texas (GO Aaa stable). Reported unfunded pension liabilities consist of $1.2 million as of the December 31, 2010 valuation. Moody's adjusted net pension liability (ANPL) for the city, under our methodology for adjusting reported pension data, was $1.7 million. This was equivalent to 0.37 times fiscal 2011 operating revenues compared to approximately 1.0 times on average for all local governments. For more information on Moody's insights on employee pensions and the related credit impact on companies, governments, and other entities across the globe please visit Moody's on Pensions at www.moodys.com/pensions, WHAT COULD CHANGE THE RATING - UP -Continued tax base growth and diversification -Improvement in the city's socioeconomic profile WHAT COULD CHANGE THE RATING -DOWN -Trend of tax base declines -Significant deterioration of General Fund balance or liquidity KEY STATISTICS FY 2014 Full valuation: $431 million FY 2014 Full value per capita: $46,744 2006-2010 ACS Per Capita Income: $23,475 (94% of state; 86% of U.S.) 2006-2010 ACS Median Family Income: $59,899 (103% of state; 95% of U.S.) FY 2012 General Fund balance: $2.6 million (64.7% of General Fund revenues) FY 2012 Unassigned General Fund balance: $2.2 million (53.3% of General Fund revenues) Net direct debt burden: 1.0% Overall net debt burden: 17.3% Payout (10 years): 45.3% Post -sale parity debt: $16.7 million RATING METHODOLOGY The principal methodology used in this rating was US Local Government General Obligation Debt published in January 2014. Please see the Credit Policy page on www.moodys.com for a copy of this methodology. REGULATORY DISCLOSURES For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. 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MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail clients. It would be dangerous for "retail clients" to make any investment decision based on MOODY'S credit rating. If in doubt you should contact your financial or other professional adviser. Fitch Ratings � Press Release Page 1 of 3 FitchRatings Fitch Affirms Anna, TX's LTGOs and COs at'A'; Outlook Stable Ratings Endorsement Policy 12 Apr 2013 11:24 AM (EDT) Fitch Ratings-Austin-12 April 2013: Fitch Ratings has affirmed the 'A' rating on the following city of Anna, Texas (the city) obligations: --$1.975 million combination tax and limited surplus revenue certificates of obligation (COs), series 2006; --$15,000 general obligation (GO) water bonds, series 1976. The Rating Outlook is Stable. SECURITY The GO bonds and COs are secured by a pledge of ad valorem taxes levied annually within the limits prescribed by law against all taxable property in the city. The COs are further secured and payable from a limited pledge (not to exceed $1,000) of surplus net waterworks and sewer system revenues. KEY RATING DRIVERS SOLID FINANCIAL POSITION: Despite growth pressures, Anna has maintained a sound financial position through conservative budgeting practices, as evidenced by regular operating surpluses and healthy fund balance levels. GROWING BUT LIMITED ECONOMIC FOUNDATION: The local economy is primarily fueled by the housing industry, which has been impacted by the recession but is showing signs of recovery. DEVELOPMENT RESUMES: After a recessionary drop development activity reportedly is accelerating. A return to the rapid growth pace of previous years would boost tax base growth but also present new service and infrastructure challenges. HIGH OVERALL DEBT BURDEN: The city's overall debt burden is high, due primarily to the overlapping debt of the local school district. Fitch believes the debt load currently is manageable due to the reasonable prospects for continued expansion of the tax base. RATING SENSITIVITIES Maintenance of solid financial reserves, given Anna's sales tax exposure, is a key to maintaining credit quality. CREDIT PROFILE The city is located 40 miles north of Dallas in the relatively affluent Collin County (the county). Easy access to Dallas from U.S. Highway 75 and affordable land make this former farm community an attractive location for many first time homebuyers. Officials estimate that approximately 85% of the city's 9,200 residents commute outside the city for work. RAPID GROWTH TEMPERED BY RECESSIONARY PRESSURES The city experienced dramatic growth in its population base during the last decade, increasing at an average annual rate of 21 %between 2000 and 2010 and making it one of the fastest growing cities in the region. Significant commercial and retail development followed. http://www.fitchratings.com/creditdeslc/press_releases/detail.cfm?print=l&pr_id=788467 4/15/2013 Fitch Ratings � Press Release Page 2 of 3 With the onset of the recent recession, the city's expansion slowed down considerably. Single-family residential building permits, which annually exceeded 500 in 2003 and 2004, dropped precipitously to a low of 6 in 2009. Recent permits have improved dramatically, with 100 issued in 2011 and 350 in 2012 and expectations for continued growth in new single- family housing construction over the near to medium term. Taxable assessed values (TAV) softened slightly since the recession, decreasing by an average annual rate of 1.4% since 2009. Positively, TAV registered a 3.7%increase for fiscal 2013, driven by renewed growth in the housing sector. The city's top 10 taxpayers represent a modest 7.4% of total TAV and include a mix of retail and commercial concerns. Property tax rates are above average relative to other cities in the county. The city's current rate of $0.65 per $100 of TAV represents a 12%rate hike since fiscal 2009. Wealth levels are mixed. Market value per capita is average at $51,000. Per capita money income is 90% of the Texas average and 82% of the U.S. average, but median household income is roughly 120% of the state and national averages. The unemployment rate in the county has trended downward after spiking in 2010. The county's January 2013 rate of 6% was well below both the Texas (6.9%) and U.S. averages (8.5%) for the month. STABLE FINANCIAL PROFILE; HIGH RESERVE LEVELS The city has managed to meet the service demands of a growing population while maintaining a sound financial profile. The city continues to maintain very high levels of general fund reserves, well above the council -adopted policy of maintaining 90 days operating reserves. The city's revenue sources are diverse, with property taxes comprising 57%and economically sensitive sales taxes comprising 14% of total general fund revenues. Public safety constitutes the largest and fastest growing spending item. The city's 1 %sales tax experienced rapid growth during the period of dramatic population growth, even showing double- digitannual growth throughout most of the recent recession. Fiscals 2011 and 2012 each ended with a modest surplus, boosting the 2012 general fund balance to $2.6 million, or 71 of spending. The fiscal 2013 adopted budget was balanced, and another modest operating surplus is now anticipated due to better than expected sales tax collections. Given past practices and results, Fitch believes management will continue its proactive financial planning practices and budgetary oversight in order to maintain its sound financial position. HIGH OVERALL DEBT LEVELS; LOW PENSION FUNDING While the city's direct debt levels are modest, overall debt levels are very high at approximately $8,100 per capita and 15.8% of fiscal 2013 TAV. The high debt burden is mainly driven by substantial overlapping borrowing by the Anna Independent School District (not rated by Fitch). The pace of city debt retirement is average at 56% in 10 years. Most of the city's outstanding debt consists of obligations issued for its waterworks and sewer system. The city plans to restructure both its tax -supported and water and sewer debt within the next few years in order to smooth out debt service requirements, which are scheduled to rise significantly in 2018. No additional tax -supported bonds are planned for the foreseeable future. Anna's employees participate in an agent multiple employer defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). The city routinely funds 100% of its annual required contributions; however, funding levels are low at 59% assuming a 7% investment rate of return as of Dec. 31, 2011, up modestly from 53%the prior year. Other post -employment benefits (OPEB) are also provided by the city through TMRS, but limited to group -term life insurance benefits, which may be terminated by city council, resulting in no unfunded liability. Carrying costs related to long-term debt, pension and OPEB liabilities were manageable at 17.5% of fiscal 2012 governmental spending less capital outlays. Contact: Primary Analyst Steve Murray Senior Director +1-512-215-3729 Fitch Ratings, Inc. 111 Congress Ave, Suite 2010 Austin, TX 78801 http://www.fitchratings.com/creditdeslc/press_releases/detail.cfm?print=l&pe_id=788467 4/15/2013 Fitch Ratings � Press Release Page 3 of 3 Secondary Analyst Rebecca Meyer Director +1-512-215-3733 Committee Chairperson Doug Scott Managing Director +1-512-215-3725 Media Relations: Elizabeth Fogerty, New York, Tel: +1 (212) 908 0526, Email: elizabeth.fogerty@fitchratings.com. Additional information is available at'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings. In addition to the sources of information identified in Pitch's Tax -Supported Rating Criteria, this action was additionally informed by information from Creditscope, University Financial Associates, S&P/Case-Shiller Home Price Index, IHS Global Insight, National Association of Realtors, Underwriter, Bond Counsel, Underwriter Counsel, and the Municipal Advisory Council of Texas. Applicable Criteria and Related Research: — 'Tax -Supported Rating Criteria' (Aug. 14, 2012); —'U.S. Local Government Tax -Supported Rating Criteria' (Aug. 14, 2012). Applicable Criteria and Related Research Tax -Supported Rating Criteria U.S. Local Government Tax -Supported Rating Criteria ALL PITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. PITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE'CODE OF CONDUCT' SECTION OF THIS SITE. PITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE PITCH WEBSITE. Copyright ©2013 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. http://www.ftchratings.com/creditdesk/press_releases/detail.cfm?print=l&pr_id=788467 4/15/2013 City of Anna, Texas Financial Policies 166 • Introduction: The City of Anna, Texas financial policies set It, the basic framework for the fiscal management of the City. These policies are to ensure consistency in the City's financial processes related to revenue, expenditures, purchasing, accounting, investing, fiscal management and integrity, and fund balance. The City's financial policies are intended to assist the City council and City staff in evaluating current activities and proposals for future programs. The policies are to be reviewed on an annual basis and modified to accommodate changing circumstances and conditions. The City of Anna will ensure long-standing policies that provide guidelines for current decision -making processes and future plans. Operating Budget Policies: The fiscal year of the City of Anna shall begin on October 1 of each calendar year and end on September 30 of the following calendar year. The fiscal year will also be established as the accounting and budget year. The operating budget will be balanced with current revenues and a portion of beginning resources or fiend balances which will be greater than or equal to current expenditures or expenses. The City Manager's budget shall assume, for each fund, operating revenues that are equal to, or exceed operating expenditures. Annual estimates of revenues in all funds will be based on historical trends, and reasonable expectations and assumptions regarding growth, the state of the economy, and other relevant factors. A conservative approach will be observed in estimating revenues. Expenditures in all funds will be managed so as to ensure the fund's obligations are met when due. Throughout the year the Finance Department will provide regular budgetary comparisons reports to Department Directors and the City Manager. These reports will highlight Adopted Budget, Adjusted Budget, Current, Year to Date, and Previous Year expenditures and revenues. These periodic budgetary comparisons statements of revenue and expenditures will allow department directors to adequately manage their department's budget and anticipate revenues and expenditures. Expenditures within the each Fund will remain within each department's original appropriation unless an intra-fund budget transfer is approved by the City Manager. The City Manager is authorized to approve intra-fund transfers. Only the City Council may approve inter -fund transfers. Budget amendments will occur when total actual expenditures exceed budgeted expenditures in any fund(s). Budget amendments are authorized only by the City Council approved by ordinance. If at any time during a fiscal year the City Manager estimates that current year expenditures in any fund will exceed available revenues, the City Manager will submit a plan to the City Council addressing the estimated deficit including a plan of action to overcome the estimated deficit. Anna's budget is coordinated to identify major policy issues for the City Council to consider several months prior to the budget approval date. In this way, the Council has adequate time to t� evaluate decisions and ensure proper decisions are made. The budget review process will include City Council, City staff, and citizen participation through public hearings. Each department head is responsible for ensuring proper budgetary procedures are followed throughout his or her department. Investments made by the City of Anna will be in compliance with policies contained in the City of Anna Investment Policy and the Public Funds Investment Act. All investments will be evaluated upon safety, liquidity, and yield. Interest earned from investment of available funds is based on departmental ownership of the invested dollars and will be booked to the appropriate department's fund when realized. After City council adoption, the budget shall be in effect for the budget year. Final adoption of the budget by the City council shall constitute the official appropriations for the current year and shall constitute the basis of the official levy of the property tax. Following the final adoption of the budget by ordinance, the City Council shall pass an ordinance levying property taxes for the current year. A key element of the financial stability of the City is to establish guidelines or "safe harbors" for fund balance. Unassigned fund balance is an important measure of economic stability. It is essential that the City maintain adequate levels of unassigned fund balance to mitigate financial risk that can occur from unforeseen revenue fluctuations, unanticipated expenditures, and similar circumstances. The fund balance also provides cash flow liquidity for the City's general operations. For governmental funds, it is important to distinguish between fund equity and fund balance. A fund's equity is typically the difference between its assets and liabilities. Fund balance is an accounting distinction made between the portions of fund equity that are spendable and non - spendable. The Governmental Accounting Standards Board has established 5 classifications of fund balance: 1. Nonspendable fund balance —includes amounts that are not in a spendable form or are required to be maintained intact. Examples are inventory or permanent funds (i.e. endowment funds). 2. Restricted fund balance —includes amounts that can be spent only for the specific purposes stipulated by external resource providers either constitutionally or through enabling legislation. Examples include grants and child safety fees. 3. Committed fund balance —includes amounts that can be used only for the specific purposes determined by a formal action of the government's highest level of making authority. authority. Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally. a. The City Council is the City's highest level of decision -malting authority and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Council at the City's Council meeting. The resolution must either be approved or rescinded, as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in the subsequent period. 4. Assigned fund balance —comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that find (i.e. only funds in the capital projects fund may be used for capital projects). a. The City Council has authorized the City Manager to assign fund balance to a specific purpose as approved by this fund balance policy. 5. Unassigned fund balance — is the residual classification of the general fund and includes all amounts not contained in other classifications. Unassigned amounts are technically available for any purpose. Minimum Unassig�red Fruad Balauce The City shall set aside resources during years of growth to fund a reserve for years of decline and/or to fund capital out of current funds for projects that would have otherwise been funded through debt financing. It shall be the goal of the City to maintain an unassigned fund balance in the General Fund of 25% of total appropriations. Minimum Working Capital The City shall set aside resources during years of growth to fund a reserve for years of decline and/or to fund capital out of current funds for projects that would have otherwise been funded through debt financing. It shall be the goal of the City to maintain working capital in the Utility Fund (a non -governmental type fund) of 25% of total appropriations. Working capital is defined as the short term assets available after covering short term liabilities. At the close of each fiscal year, the unencumbered balance of each appropriation shall revert to the fund from which it was appropriated. If minimum fund balance falls below the goals stated above, the City Manager will develop a strategy to initially evaluate current government wide spending to determine areas where cost efficiencies may be realized and implement those efficiencies. Should the analysis prove insufficient to attain the goal, a multi -year strategy will be put in place to meet the goals through a combination of cost cutting, cost recovery, and revenue enhancing strategies. Order of Expenditure of Funds 169 When multiple categories of fund balance are available for expenditure (for example, a construction project is being funded partly by a grant, funds set aside by the City Council, and unassigned fund balance), the City will start with the most restrictive category and spend those funds first before moving down to the next category with available funds. Financial Policies: The accounts of the City are organized and operated on the basis of funds and account groups. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance -related legal and contractual provisions. The City's annual budget shall be prepared and adopted on a basis consistent with generally accepted accounting principles for all governmental and proprietary funds except the capital projects fund, which adopts project4ength budgets. Account balances shall be reported on the modified accrual basis of accounting within the General Fund and other governmental funds and the accrual basis of accounting in the Utilities Fund. Quarterly Reports: Revenues actually received will be regularly compared to budgeted revenues and variances will be investigated. This process will be summarized in the quarterly budget reports prepared and submitted by the City Managers Office. The City Manager shall submit to the City Council each quarterly financial report of the City. The report will compare budget estimates against the previous quarter's realized revenues including year to date realized revenues. The previous fiscal year's performance will also be included. General Obligation Bonds/ Debt: Anna shall have the power to borrow money on the full faith and credit of the City and to issue general obligation bonds for permanent public improvements. The City will also be allowed to borrow money for any other public purpose not prohibited by the Constitution and laws of the State of Texas, and to issue refunding bonds to refund outstanding bonds of the City previously issued. All such bonds shall be voted on and issued in conformity with the laws of the State of Texas. Any and all bond funds approved by the vote of the Citizens of Anna will be expended only for the purposes stated in the bond issue. The City shall also from time to time borrow money utilizing other available instruments including revenue bonds, certificates of obligation, et al. In all cases, the City shall evaluate the following prior to incurring debt obligations: 170 • Ensure that the purpose of the debt is consistent with type of debt instrument • Where possible, match the useful life of the asset with the maturity of the debt • Review the maintenance & operations property tax rate against the debt service tax rate and ensure that no more than 35% of the total tax rate is used for debt obligations. The City will manage the length and maturity of its long-term debt in order to lower net interest cost and to maintain future flexibility by paying off debt earlier. Revenues: The City of Anna strives to maintain and enhance a diversified and stable revenue system to shelter it from fluctuations in any single revenue source. The City also pursues an aggressive policy of collecting all money due to the City. The City will continue an aggressive policy to reduce the level of delinquent taxes. For every annual budget, the City shall levy two property tax rates: maintenance/operations (M&O) and debt service (I&S). The debt service levy shall be sufficient for meeting all principal and interest obligations associated with the City's outstanding debt, less money transferred into the debt service fund from other funds and any self-sustaining debt such as revenue bonds, for the budget year. The operation and maintenance levy shall be accounted for in the General Fund, The City is primarily a bedroom community with a heavy reliance upon property taxes. In order to supplement property taxes, the City has and will continue to support economic development and community development to create a vibrant community with a growing sales tax base to defray the reliance upon property taxes. The City Manager shall project revenues from every source based on actual collections from the preceding years and estimated collections of the current fiscal year. There are a variety of factors that may impact revenues for an upcoming fiscal year, and the City Manager will take these into account when projecting collections. Sales tax revenue projections should be conservative due to the nature of this more volatile revenue source. Types of City Funds: • General Fund is the government's primary operating fund. • Debt Service Fund accounts for the resources accumulated and payments made for principal and interest on long-term obligation debt of governmental funds. • Capital Projects Fund accounts for the acquisition of capital assets or construction of major capital projects not being financed by any other fund. • Utility Fund is used to account for the City's water and wastewater operations and certain long-term debt. Financial Statements: An annual independent audit will be completed and filed with the City Secretary within one hundred eighty (180) days from the completion of each fiscal year, the results of which shall be presented to and approved by the City Council. The financial statements to the City are to be prepared in conformity with generally accepted accounting principles (GAAP) in the United 171 States of America as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard -setting body for establishing governmental accounting and financial reporting principles. The City shall contract with a qualified independent auditing firm on an annual basis, and shall use the same firm no more than five consecutive years. 172 PURCHASING POLICY Section 1. Purpose The purpose of the Purchasing Policy and Procedures is to provide a means for the acquisition of supplies and services that are required for the operation of the City of Anna. Section 2. Authorization and Procedures The City Manager is authorized to make purchases and enter into contracts on behalf of the City if the amount does not exceed $50,000. The City Manager is also authorized to make Emergency Purchases consistent with this Purchasing Policy. Notwithstanding anything to the contrary in this Purchasing Policy or in any other City ordinance, rule, regulation or policy; except for Emergency Purchases authorized under this Policy, all purchases, transactions and contracts for expenditures regardless of amount must be expressly approved in advance by the City Council during a duly noticed public meeting if —with respect to such purchase, transaction or contract for expenditure —any City Official (as defined in the Anna Code of Ethics) is: (1) required to file a Conflicts Disclosure Statement under Chapter 176 of the Texas Local Gov't Code or the Anna Code of Ethics, as amended; or (2) is a Vendor as that term is described under Section 176.002 of the Texas Local Gov't Code, which includes acting as an agent of a Vendor. Otherwise, the following purchasing procedure is outlined in accordance with the noted dollar thresholds of expenditures. a) Expenditures for Goods or Services $.01 - $999: Department Directors are allowed to make and authorize purchases for goods or services up to $999 without seeking quotes or bids. Expenditures in this category do not require a purchase order. b) Expenditures for Goods or Services $1,000 - $2,999: Expenditures for good or services equal to or greater than $1,000 but not exceeding $2,999 may be approved at the department level by the Department Director, Department Directors should request and review at least three different quotes or bids unless the purchase is listed under the General Exemptions in Texas Local Government Code Chapter 252,022, This is an informal bid process and quotes or bids may be obtained via mail, e-mail, delivery service, telephone, facsimile, catalogues, internet websites, in-store price comparison, verbal quotes, or any other reasonable method of comparing vendor pricing. 1. Upon receipt and evaluation of the quotes or bids, the Department Director shall submit to the Finance Department a purchase order and purchasing memo summarizing the bids received and the recommended or selected vendor. 2. In lieu of requesting three different quotes or bids, and when authorized by the City Manager, Department Directors may purchase goods or services in this category through a local government purchasing cooperative or interlocal purchasing agreement of which the City of Anna is a member or is eligible to participate, and 173 where the products and services to be purchased have been submitted for competitive procurement as outlined by state statute. c) Expenditures for Goods or Services $3,000 - $49,999: Expenditures for good or services equal to or greater than $3,000 but not exceeding $49,999 are also bid on an informal basis with at least three written bids or quotes required unless the purchase is listed under the General Exemptions in Texas Local Government Code Chapter 252.022. The City will contact Historically Underutilized Business as stipulated in Texas Local Government Code Chapter 252,0215 unless the purchase is listed under the General Exemptions in Texas Local Government Code Chapter 252,022, 1. All purchases in this category must be approved in advance by the City Manager and the Finance Department. Upon receipt and evaluation of the quotes or bids, the Department Direct shall submit to the City Manager a purchase order and purchasing memorandum summarizing the responses and recommending a vendor. The memorandum shall include supporting documentation for all quotes or bids and evidence the department contacted Historically Underutilized Businesses as outlined above. After authorization has been received from the City Manager, the purchase order can be submitted to the Finance Department for final approval and processing. 2. In lieu of providing three different written quotes, goods or services in this category may be purchased through a local government purchasing cooperative or interlocal purchasing agreement of which the City of Anna is a member or is eligible to participate, and where the products and services to be purchased have been submitted for competitive procurement as outlined by state statute. d) Expenditures for Goods or Services $50,000 and over: Except for Emergency Purchases authorized under this Policy, all purchases above $50,000 must be purchased under formal competitive sealed bidding rules or as otherwise permitted by the Local Government Code under Chapters 252 and 271. No bid process shall begin until approved by the City Council and City Manager. The City Council hereby selects as its designated representative the City Manager of the City of Anna, Texas to discharge on its behalf any duty it may have now or in the future with respect to any purchase or contract to determine the method(s) of purchase that will provide the best value to the City. e) Professional Services: Notwithstanding anything to the contrary in this Purchasing Policy or in any other City ordinance, rule, regulation or policy, purchases of professional services regulated by the Professional Services Procurement Act (PSPA) shall be in accordance with the requirements outlined in the PSPA as amended. f) Emergency Purchases: Notwithstanding anything to the contrary in this Purchasing Policy or in any other City ordinance, rule, regulation or policy, the City Manager is 174 authorized to make or approve any emergency purchase necessary to respond to a public calamity, to preserve or protect the public health or safety of the municipality's residents, or because of unforeseen damage to public machinery, equipment, or other property; in accordance with the General Exemptions authorized in Section 252,022 of the Texas Local Government Code without seeking bids or contacting Historically Underutilized Businesses. The City Manager is authorized to declare or determine an emergency that necessitates an emergency purchase, and shall advise the City Council of any such emergency purchase in excess of $50,000. When an emergency occurs during regular business hours and the expense exceeds the normal department approval amount, the department director shall contact the City Manager or his designee, to receive authorization for the emergency purchase. g) Responsibilities: 1. The City Manager administers this Purchasing Policy, approves purchases between $3,000 and $49,999, and oversees the competitive bidding process for all purchases in excess of $50,000 requiring approval of the City Council. 2. Department Directors prepare and review solicitations for the purchase of goods and services as outlined in this Purchasing Policy. Directors sign off on and approve all department purchases and ensure that all purchasing requirements are met. Department Directors ensure that reasonable and prudent steps are taken to assure that the best value is obtained for the goods or services to be procured. 3. The Finance Department reviews budgets to determine availability of funds for purchases. 4. Accounts Payable receives, reviews, and processes all purchase orders and payment requests. 5. Each city employee authorized to purchase supplies, equipment, or services shall be familiar with and follow this Purchasing Policy and related purchasing procedures. Section 3. Petty Cash Petty Cash is deemed appropriate when it allows for more efficient procurement of minor goods and services. Petty Cash may only be used for minor purchases of goods or services up to $50.00. An employee requesting the Petty Cash must have approval from their Department Director. Documentation for the use of Petty Cash is required at time of reimbursement, and must include an invoice or receipt for the purchase. The employee requesting reimbursement will be required to sign for receipt of the cash. 175 Section 4. Purchase Orders Purchase orders are required for all purchases in excess of $999, unless otherwise indicated below. Purchase orders may be submitted for purchases less than $999 but are not required. Purchase orders shall be submitted to Accounts Payable for processing after obtaining the appropriate approval signatures and with all supporting documentation attached. Purchase orders submitted without appropriate approval or required documentation will be returned to the originating department. Subject the limits on the City Manager's authority to make purchases and enter into contracts on behalf of the City as outlined in the Section 2 of this Policy, purchase of the following items Jo not require the solicitation of bids or a purchase order and can be paid by completing a check request or payment authorization. • Insurance Premium Payments • Retirement System Payments (TMRS) • Debt Service Payments • Utility Service Payments • Operating Leases/Maintenance Agreements • Contracted Services (if contract was entered in accordance with this policy) • Travel and Lodging • Registration fees • Membership/Professional Association dues and fees • Postage • Subscription Services • Other similar routine purchases authorized by the City Manager 176 PURCHASING CARD POLICY Purpose: The purpose of the Purchasing Card Program is to provide the City with an efficient and controllable method of malting small dollar commodity, service, and travel purchases. The City will issue cards from a company that has received the State of Texas purchasing card contract or under a Co-operative purchasing agreement with another municipality within the State of Texas. The card will be primarily used in place of petty cash, small regular purchase orders, blanket purchase orders (where sales are made over-the-counter), emergency purchase orders, and all other credit cards. This card policy is not intended to replace, but rather supplement existing purchasing, travel and other City policies. Participating in the purchasing card program will be the option of the employer. Employees that are not issued a card may obtain travel advances or reimbursements Use: The card will be used for the following: 1) Any transaction that does not exceed $1,500 or the cardholder's transaction limit, whichever is less. 2) Over-the-counter type retail purchases normally made using a charge account or discontinued credit cards. 3) Travel related purchases in compliance with the City of Anna Travel Policy. 4) Any other business related purchase as long as: a. The vendor accepts credit cards, and the goods/services purchases are not covered under a City supply contract. Accounting Department will periodically update staff via email of any commodities that cannot be purchased with the purchasing card. b. All other purchases are to be made using the standard purchasing process. Transaction/Card Limits: Each individual purchasing card will have transaction and/or spending limits. The Finance Director has the ability. also to limit types of purchases, place of purchase and hours of day purchases can be made on individual cards. The total purchase price as printed on the individual credit card receipt is known as the "transaction amount". The purchasing card may be limited by the merchant type, transaction amount, and monthly transaction limit. The Department Director, Finance Director, and City Manager determine limits. Cardholder Class *Per Transaction *Per Month 2 500 5 000 177 1 500 1 3 000 500 I 2 000 *The City Manager may set different limits for specific individuals as needed. Restrictions: Employees may NOT use the card for the following: 1. Any purchases of items for personal use 2. Cash refunds or advances 3. Any purchases of goods/services at a merchant type not considered prudent or of good judgment 4. Any transaction amount greater than the cardholder's transaction limit 5. Items under contract, unless an emergency exception is granted by the Finance Department 6. Alcohol, liquor, and tobacco products of any kind 7. Separate, sequential and component purchases or any transaction made with intent to circumvent City purchasing policy or state law 8. Any other purchase specifically excluded in the City purchasing policy Receipts: All purchases must be supported by a receipt for the purchaser. Any purchase without a receipt shall be the responsibility of the purchaser unless approved by the City Manager. Audit review: Purchases using the Anna Purchasing cards shall be reviewed for compliance with this policy by City Auditor during the annual audit process. 178 ETHICS POLICY This Ethics Policy is cumulative of any provisions governing ethics or conflicts of interest under state law, the City of Anna's Home -Rule Charter, and the Anna Code of Ethics, all as amended, and in the event of any conflict between any such provisions, the most restrictive provision shall govern. This Ethics Policy will promote the objectives of protecting government integrity and facilitating the recruitment and retention of qualified ethical personnel needed by the City of Anna. Such policy is implemented by prescribing essential standards of ethical conduct without creating unnecessary obstacles to entering public service. As a public entity, the City is expected to be able to demonstrate to the public that it has spent their tax dollars wisely. All participants in the City are responsible for insuring that money is spent in accordance with the terms and conditions of all the policies of the City of Anna. Public employees must discharge their duties impartially so as to assure fair competitive access to government procurement by responsible contractors. Public officials and employees must take precautions to avoid even the appearance of impropriety, self -dealing, favoritism, or undue influence. Therefore, all persons with the responsibility of handling City of Anna monies must obtain and/or create as appropriate adequate documentation, including a clear explanation of exactly what each purchase is for. General Ethical Standards: 1. It shall be a breach of ethics to attempt to realize personal gain through public employment with the City of Anna by any conduct inconsistent with the proper discharge of the employee's duties. 2. It shall be a breach of ethics to attempt to influence any public employee of the City of Anna to breach the standards of ethical conduct set forth in this code. 3. It shall be a breach of ethics for any employee of the City of Anna to participate directly or indirectly in a procurement when the employee knows that. a. The employee or any member of the employee's immediate family has a financial interest in the procurement, b. A business or organization in which the employee, or any member of the employee's immediate family, has a financial interest pertaining to the procurement; c. Any other person, business or organization with whom the employee or any member of the employee's immediate family is negotiating or has an arrangement concerning prospective employment is involved in the procurement. 4. It shall be a breach of ethics for any employee of the City of Anna to accept, receive, or arrange for any gratuity or any offer of employment in connection with any decision, approval, denial, recommendation, preparation of any part of a program requirement or purchase request, influencing the content or any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or 179 other particular matter pertaining to any program requirement of a contract or subcontract, or to any solicitation or proposal thereof, pending before this government. 5. It shall be a breach of ethics for any employee of the City of Anna to approve or allow any purchase, transaction or contract for expenditure regardless of the amount unless said employee has been expressly authorized to do so in advance by the City Council during a duly noticed public meeting if —with respect to such purchase, transaction or contract for expenditure —any City Official (as defined in the Anna Code of Ethics) is: (1) required to file a Conflicts Disclosure Statement under Chapter 176 of the Texas Local Gov't Code or the Anna Code of Ethics, as amended, or (2) is a Vendor as that term is described under Section 176.002 of the Texas Local Gov't Code, which includes acting as an agent of a Vendor. 6. It shall be a breach of ethics for any employee or former employee of the City of Anna knowingly to use confidential information for actual or anticipated personal gain, or for the actual or anticipated gain of any person. BANK DEPOSITORY The City Council shall select a bank depository that will meet the needs of the City and comply with all state laws governing such depositories and the management and safeguarding of public funds. The City shall issue a request for proposals/qualifications for bank depository services every five years, or more often if necessary. However, said requirements shall not restrict the number of years, either cumulatively or consecutively, that any single bank depository shall be used. Depositories shall be selected based on a number of criteria, including, but not limited to, ability to comply with state and local statutes, customer service, hours of operation, yield on deposits, geographic proximity to City hall, services offered, etc. 181 City of Anna, Texas Investment Policy 182 INVESTMENT POLICY A component part of the overall financial management of the City of Anna, Texas is an effective cash management plan. Many factors determine the amount of funds on hand during any fiscal year, but these funds are an important revenue source for the City budget. It is imperative that these funds be managed in such a way as to be responsive to the public need and consistent with a conservative cash management plan. To provide this framework for effective cash management, an Investment Policy and a Statement of Investment Strategy have been prepared. Purpose: The Investment Policy is authorized by the City Council of the City of Anna in accordance with Chapter 2256, Texas Government Code, also known as the Public Funds Investment Act (PFIA). The Policy addresses the methods, procedures and practices that must be exercised to ensure effective and judicious fiscal management of City funds. All such funds will be managed within the guidelines of this Policy with the exception of pension and other deferred compensation plans that are separately managed. Bond funds, in addition to this Policy, shall be managed in accordance with their issuing documentation and all applicable state and federal law. This Policy provides a separate written investment strategy for each of the City's funds. Each investment strategy describes the investment objectives for each particular fund according to the following priorities: I) Investment Suitability 2) Preservation and Safety of Principal 3) Liquidity 4) Marketability Prior to Maturity of each Investment 5) Diversification 6) Yield to a vew: The Investment Policy and the Statement of Investment Strategy will be reviewed on an annual basis by the City Council. Revisions and/or amendments will be approved and documented by the City Council. A written document shall attest to the annual review and amendment adoption. Investment Objectives: The investment of funds will be governed by the following investment objectives, in order of priority: 1. Preservation and Safety of Principal Preservation of capital is the foremost objective of the City. transaction shall seek first to ensure that capital losses are avoided, from issuer defaults, erosion of market value, or other risks. 2. Liquidity 183 wh Each investment ether they are The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements that can be reasonably anticipated. Liquidity will be achieved by matching investment maturities with forecasted cash flow requirements. 3. Public Trust All employees involved in the City's investment program shall seek to act responsibly as custodians of the public trust. All employees involved in the investment process shall avoid any transaction which might impair public confidence in the City's ability to govern effectively. 4. Yield The investment portfolio of the City shall be designed to attain a market rate of return throughout budgetary and economic cycles taking into account risk constraints and liquidity needs. Return on investment, while important, is of less importance than safety and liquidity. Authorized Investments: While the PFIA allows a wide range of eligible investments, the City has chosen to allow only the following, which are more restrictive than the PFIA: 1. Obligations of the United States government or its agencies and instrumentalities. 2. Other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, this State or the United States or their respective agencies and instrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States. 3. Direct obligations of this State or its agencies and instrumentalities. 4. Certificates of Deposit, and other forms of deposit, issued in compliance with the PFIA and insured by the FDIC, or when applicable, collateralized in accordance with this Policy and the Public Funds Collateral Act. 5. Repurchase agreements placed and secured in compliance with the PFIA and, collateralized with a minimum market value of 102 percent of the dollar value of the transaction plus accumulated accrued interest. 6. SEC -registered, AAAm, or its equivalent, (as rated by Fitch, Moody's or Standard & Poor's), no-load money market mutual funds. The investment objective of the fund must be to maintain a stable dollar net asset value of $1.00. The City may not invest funds under its control in an amount that exceeds 10% of total assets of any individual money market mutual fund. A fund prospectus shall be reviewed for compliance with this Policy prior to depositing monies. 7. State or local investment pools organized under the Interlocal Cooperation Act, operating in compliance with the PFIA and authorized by the City Council. The investment pool MAII must be rated AAAm, or its equivalent, (as rated by Fitch, Moody's or Standard & PoorIs). The investment objective of the pool must be to maintain a stable dollar net asset value. Prohibited Investments: The City is expressly prohibited from entering into options trading or futures contracts, hedging or purchasing any security that is not authorized by Texas State law, or any direct investment in asset backed or mortgage -backed securities. The City expressly prohibits the acceptance of Interest -only (IO) and Principal -only (PO) Collateralized Mortgage Obligations (CMOs) as collateral for bank deposits or repurchase agreements. No transactions may be entered for speculation. No transaction may be entered using leverage. Protection of Principal: The City shall seek to control the risk of principal loss due to the failure of an issuer or grantor. Such default risk shall be controlled by investing only in the safest types of issuers as defined in the Policy and by collateral ization as required by law. The purchase of individual securities shall be executed by "delivery versus payment" (DVP) method through the City's safekeeping agent. By so doing, City funds are not released until the City has received, through the safekeeping agent, the securities purchased. Diversification by Investment Type: When appropriate and applicable, diversification by investment type shall be maintained by ensuring an active and efficient secondary market in portfolio investments, and by controlling the market and opportunity risks associated with specific investment types. Undue concentrations of assets in a specific maturity sector shall be avoided. Bond proceeds may be invested to comply with Federal arbitrage restrictions or to facilitate arbitrage recor&keeping and calculation. Diversification by Investment Maturity: In order to minimize risk of loss due to interest rate fluctuations, investment maturities will not exceed the anticipated cash flow requirements of the funds. Maturity guidelines by fund are as follows: Operating Funds Strategy: Suitability — Any investment eligible in the Investment Policy is suitable for Operating Funds. Safety of Principal —All investments shall be of high quality with no perceived default risk. Market price fluctuations may occur. However, by managing the weighted average days to maturity for the Operating Fund's portfolio to less than 270 days and restricting the maximum allowable maturity to two years, the price volatility of the overall portfolio will be minimized. Marketability —Securities with active and efficient secondary markets are necessary in the event of an unanticipated cash flow requirement. Li uidi — The Operating Fund requires the greatest short-term liquidity of any of the Fund types. Cash equivalent investments will provide daily liquidity and may be utilized as a competitive yield alternative to fixed maturity investments. Diversification —Investment maturities should be staggered throughout the budget cycle to provide cash flow based on the anticipated operating needs of the City. Market cycle risk will be reduced by diversifying the appropriate maturity structure out through two years. Yield — Attaining a competitive market yield for comparable investment -types and portfolio restrictions is the desired objective. The yield of an equally weighted, rolling three-month Treasury Bill portfolio will be the minimum yield objective. Construction and Capital Improvement Funds Strategy: Suitability — Any investment eligible in the Investment Policy is suitable for Construction and Capital Improvement Funds. Safety of Principal —All investments will be of high quality with no perceived default risk. Market fluctuations may occur. However, by restricting the maximum maturity to the lesser of the anticipated cash flow requirements or the IRS defined temporary period, the market risk of the portfolio will be minimized. Marketability —The balancing of short-term and long-term cash flow needs requires the Construction and Capital Improvement Funds portfolio to have securities with active and efficient secondary markets. Li uidi —Construction and Capital Improvement Funds used as part of a CIP plan or scheduled repair and replacement program are reasonably predictable. However unanticipated needs or emergencies may arise. Maintaining minimum cash equivalent investment amounts will reduce the liquidity risk of unanticipated expenditures. A singular repurchase agreement may be utilized if disbursements are allowed in the amount necessary to satisfy any required expenditures. This investment structure is commonly referred to as a flexible repurchase agreement. Diversification —Investment maturities should blend the short-term and long-term cash flow needs to provide adequate liquidity and yield enhancement and stability. A "barbell" maturity ladder may be appropriate. Yield — Attaining a competitive market yield for comparable investment -types and portfolio structures is the desired objective. The yield of an equally weighted, rolling six-month Treasury Bill portfolio will be the minimum yield objective. Debt Service Funds Strategy: Suitability —Any investment eligible in the Investment Policy is suitable for the Debt Service Fund. Safety of Principal — All investments shall be of high quality with no perceived default risk. Market price fluctuations may occur. However, by managing Debt Service Funds to not exceed the debt service payment schedule the market risk of the overall portfolio will be minimized. Marketability — Securities with active and efficient secondary markets are not necessary as the event of an unanticipated cash flow requirement is not probable. Li uidi —Debt Service Funds have predictable payment schedules. Therefore, investment maturities should not exceed the anticipated cash flow requirements. Cash equivalent investments may provide a competitive yield alternative for short term fixed maturity investments. A singular repurchase agreement may be utilized if disbursements are allowed in the amount necessary to satisfy any debt service payment. This investment structure is commonly referred to as a flexible repurchase agreement. Diversification —Market conditions influence the attractiveness of fully extending maturity to the next "unfunded" payment date. Generally, if investment rates are anticipated to decrease over time, the City is best served by locking in most investments. If the interest rates are potentially rising, then investing in shorter and larger amounts may provide advantage. At no time shall the debt service schedule be exceeded in an attempt to bolster yield. Yield — Attaining a competitive market yield for comparable investment -types and portfolio restrictions is the desired objective. The yield of an equally weighted, rolling three-month Treasury Bill portfolio shall be the minimum yield objective. Ensuring Liquidity: Liquidity shall be achieved by analyzing and anticipating cash flow requirements, by investing in securities with active secondary markets and by maintaining minimum cash equivalent investment balances. An investment may be liquidated or redeemed prior to maturity for the following reasons: 1. To meet unanticipated cash requirements 2. To re -deploy cash into other investments expected to outperform current holdings 3. To otherwise to adjust the portfolio. Depository Agreements: The City will select and designate a qualified primary bank depository in compliance with State law and the City's purchasing policy. All depository balances shall be insured or collateralized in compliance with applicable State law. The City reserves the right, in its sole discretion, to accept or reject any form of insurance or collateralization pledged towards depository deposits. Depositories will be required to sign a Depository Agreement with the City. The Agreement shall address any concerns in relation to acceptable collateral, levels of collateral, substitution and addition of collateral, and reporting and monitoring of collateral. The collateralized deposit portion of the Agreement shall define the City's rights to the collateral in case of default, bankruptcy, or closing and shall establish a perfected security interest in compliance with Federal and State regulations, including: 187 • The Agreement must be in writing; • The Agreement has to be executed by the Depository and the City contemporaneously with the acquisition of the asset; • The Agreement must be approved by the Board of Directors or Designated Committee of the Depository and a copy of the meeting minutes must be delivered to the City; and • The Agreement must be part of the Depository's "official record" continuously since its execution. Safekeeping and Custody: The City shall contract with a bank or banks for the safekeeping of securities either owned by the City as part of its investment portfolio or held as collateral to secure financial institution deposits and repurchase agreements. Securities owned by the City shall be held in the City's account as evidenced by safekeeping receipts of the institution holding the securities. Safekeeping institutions shall be independent from the parties involved in the investment transaction. Collateral will be held by a third party custodian designated by the City and pledged to the City as evidenced by safekeeping receipts of the institution with which the collateral is deposited. Original safekeeping receipts shall be obtained. Collateral may be held by a Federal Reserve Bank or branch of a Federal Reserve Bank, a Federal Home Loan Bank, or a third party bank approved by the City and eligible under State law. Competitive Environment: It is the policy of the City to provide a competitive environment for all individual investment purchases and sales, and financial institution, money market mutual fund, and local government investment pool selections. Authority to Invest: The City Manager and Finance Director shall be the Investment Officers. The Investment Officers shall oversee and approve any deposit, withdrawal, investment, transfer, documentation, and otherwise manage City funds according to this Policy. No person may engage in an investment transaction or the management of funds except as provided under the terms of the Investment Policy, the Statement of Investment Strategy, and other operational procedures established by the City Manager. In order ensure qualified and capable investment management, within twelve (12) months after taking office or assuming duties, each Investment Officer shall attend a training session relating to his/her investment responsibilities and receive not less than ten (10) hours of instruction. On an ongoing basis, all Investment Officers shall receive not less than ten (10) hours of instruction in each subsequent two-year period that begins on the first day of the City's fiscal year and consists of the two consecutive fiscal years after that date. Training will be conducted by an independent source approved by the Investment Committee and must include education in investment controls, security risks, strategy risks, market risks and compliance with the Public Funds Investment Act, Prudent Investment Management: Each Investment Officer shall i perform hs/her duties in accordance with the adopted Investment Policy and internal procedures. In determining whether an Investment Officer has exercised prudence with respect to an investment decision, the investment of all funds over which the Investment Officer had responsibility, rather than the prudence of a single investment, shall be considered. Investment Officers acting in good faith and in accordance with these policies and procedures shall be relieved of personal liability. Standard of Care: The standard of care used by the City shall be the "prudent person rule" and shall be applied in the context of managing the overall portfolio within the applicable legal constraints. The PFIA states: "Investments shall be made with judgment and care, under circumstances then prevailing, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived " Standard of Ethics: Each Investment Officer shall act as custodian of the public trust avoiding any transaction which might involve a conflict of interest, the appearance of a conflict of interest, or any activity which might otherwise discourage public confidence. An Investment Officer shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair his/her ability to make impartial investment decisions. Additionally, an Investment Officer shall file with the Texas Ethics Commission and the City Council a statement disclosing any personal business relationship with an entity seeking to sell investments to the City or any relationship with the second degree by affinity or third degree of consanguinity to an individual seeking to sell investments to the City. Internal Controls: The City Manager will establish a system of internal controls that shall be designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by City staff. Controls deemed most important would include, but not be limited to: 1. Control of collusion 2. Separation of duties 3. Separating transaction authority from accounting and record -keeping 4. Custodial safekeeping 5. Avoidance of bearer -form securities 6. Clear delegation of authority 7. Written confirmation of telephone transactions 8. Documentation of transactions 189 As part of the annual audit, the Investment Officers shall facilitate an independent review by the City's external auditor to assure compliance with policies and procedures. Monitoring Market Value: Market value of all collateral, mutual funds, pools, and securities will be monitored periodically and obtained from a reputable and independent source. Effect of Loss of Rating: All prudent measures will be taken to liquidate an investment that is downgraded to less than the required minimum rating. At least quarterly, the City shall monitor the rating of all investments, as applicable. Exemption for Existing Investments: The City is not required to liquidate investments authorized at the time of purchase. Performance: The City's investment portfolio shall be designed to obtain a market rate of return on investments consistent with risk constraints and expected cash flow of the City. Weighted average yield to maturity shall be the performance measurement standard. Authorized Broker/Dealers The Investment Committee shall, at least annually, review, revise, and adopt a list of qualified broker/dealers authorized to engage in securities transactions with the City. Authorized firms include primary dealers or secondary dealers that qualify under Securities & Exchange Commission Rule 1503 I (Uniform Net Capital Rule). Investment Policy Certification: All investment providers, including financial institutions, broker/dealers, money market mutual funds, and local government investment pools, must sign a certification acknowledging that the organization has received and reviewed the City's Investment Policy and that reasonable procedures and controls have been implemented to preclude investment transactions that are not authorized by the City's Policy. Investment Committee: An Investment Committee comprised of the City Manager, City Finance Director and the Finance/HR Supervisor will meet on a periodic basis. The Committee shall monitor the investment activities; assist in the development of investment policies, strategies and procedures; and annually review and approve the City's broker/dealers and independent training sources. Reporting: The Investment Officers shall prepare an investment report at least quarterly in compliance with the PFIA. This report will be prepared in a manner that will allow the City to ascertain whether investment activities during the reporting period have conformed to this Policy. The report will be provided to the City Council. 190 In conjunction with the annual audit, the external auditor will perform a formal review of the quarterly reports with the results reported to the City Council. 191 CITY OF ANIMA, TEXAS HOME -RULE CHARTER Originally adopted by vote of the people of the City of Anna, Texas on May 7, 2005 Amended on November 4, 2008 and May 12, 2012 Codified as: PART I of The Anna City Code of Ordinances 192 ARTICLE 7-FINANCIAL PROCEDURES SECTION 7.01 Fiscal Year The fiscal year of the City begins on the first day of October and ends on the last day of September on the next succeeding year. Such fiscal year also constitutes the budget and accounting year. SECTION 7.02 Submission of Budget and Budget Message On or before the 15th day of August of the fiscal year, the City Manager must submit to the City Council a budget for the ensuing fiscal year and an accompanying budget message. SECTION 7.03 Budget Message The City Manager's message must explain the budget both in fiscal terms and in terms of the work programs. It must outline the proposed financial policies of the City for the ensuing fiscal year, describe the important features of the budget, indicate any major changes from the current year in financial policies, expenditures, and revenues together with the reasons for such changes, summarize the City's debt position and include such other material as the City Manager deems desirable. SECTION 7.04 Budget a Public Record The budget and all supporting schedules must be filed with the person performing the duties of City Secretary when submitted to the City Council and must be open to public inspection by anyone interested. SECTION 7.05 Public Hearing on Budget At the City Council meeting when the budget is submitted, the City Council must name the date and place of a public hearing and have published in the official newspaper of the City, at least twice, the time and place, which will be not less than ten days nor more than 30 days after the date of notice. At this hearing, interested citizens may express their opinions concerning items of expenditures, giving their reasons for wishing to increase or decrease any items of expense. SECTION 7.06 Proceeding on Adoption of Budget After public hearing, the City Council must analyze the budget, making any additions or deletions which they feel appropriate, and must, at least ten days before the beginning of the next fiscal year, adopt the budget by the affirmative vote of a majority of the full membership of the City Council. Should the City Council take no final action on or before such day, the current budget will continue to be in force on a month4o-month basis until a new budget is adopted. SECTION 7.07 Budget, Appropriation and Amount to be Raised by Taxation On final adoption, the budget is in effect for the budget year. Final adoption of the budget by the City Council constitutes the official appropriations as proposed by expenditures for the current year and 193 constitutes the basis of official levy of the property tax as the amount of tax to be assessed and collected for the corresponding tax year. Estimated expenditures will in no case exceed proposed revenue plus cash on hand. Unused appropriations may be transferred to any item required for the same general purpose. SECTION 7.08 Contingent Appropriation Provision may be made in the annual budget and in the appropriation ordinance for a contingent appropriation in an amount not more than three percent of the total general fund expenditures, to be used in case of unforeseen items of expenditures. This contingent appropriation must apply to current operating expenses and must not include any reserve funds of the City. Such contingent appropriation is under the control of the City Manager and may be distributed by him only after prior approval by the City Council. The proceeds of the contingent appropriation may be disbursed only by transfer to other departmental appropriation, the spending of which must be charged to the departments or activities for which the appropriations are made. SECTION 7.09 Amending the Budget Under conditions which may arise and which could not reasonably have been foreseen in the normal process of planning the budget, the City Council may, by the affirmative vote of a majority of the full membership of the City Council, amend or change the budget to provide for any additional expense in which the general welfare of the citizenry is involved. These amendments must be by ordinance, and must become an attachment to the annual budget. SECTION 7.10 Certification; Copies Made Available A copy of the budget, as finally adopted, must be filed with the person performing the duties of City Secretary and such other places required by state law or as the City Council may designate. The final budget must be printed or otherwise reproduced and sufficient copies made available upon request for the use of all offices, agencies, interested persons and civic organizations. SECTION 7.11 Capital Program The City Manager must submit afive-year capital program as an attachment to the annual budget. The program as submitted must include: (1) a clear summary of its contents; (2) a list of all capital improvements which are proposed to be undertaken during the five fiscal years succeeding the budget year, with appropriate supporting information as to the necessity for such improvements; (3) cost estimates, method of financing, and recommended time schedules for each improvement; and (4) the estimated annual cost of operating and maintaining the facilities to be constructed or acquired. The above information may be revised and extended each year with regard to capital improvements still pending or in the process of construction or acquisition. 194 SECTION 1.12 Defect Does Not Invalidate the Tax Levy Errors or defects in the form or preparation of the budget or the failure to perform any procedural requirements do not nullify the tax levy or the tax rate. SECTION 7.13 Lapse of Appropriations Every appropriation, except an appropriation for a capital expenditure, lapses at the close of the fiscal year to the extent that it has not been expended or encumbered. An appropriation for a capital expenditure continues in force until the purpose for which it was made has been accomplished or abandoned. The purpose of any such appropriation is deemed abandoned if three years pass without any disbursement from or encumbrance of the appropriation. Any funds not expended, disbursed or encumbered will be deemed excess funds. SECTION 7.14 Borrowing (a) The City has the right and power, except as prohibited by law or this Charter, to borrow money by whatever method it may deem to be in the public interest. (b) General Obligation Bonds. 1 The City has the power to borrow money on the credit of the City and to issue general obligation bonds for permanent public improvements or any other public purpose not prohibited by law and this Charter, and to issue refunding bonds to refund outstanding bonds previously issued. All such bonds must be issued in conformity with state and federal law and must be used only for purposes for which they were issued. 2 Any bonds issued under the provisions of this Section may not be issued without an election. The City Council must prescribe the procedure for calling and holding such elections, must define the voting precincts and must provide for the return and canvass of the ballots cast at such elections. 3 If at such elections a majority of the vote is in favor of creating such a debt or refunding outstanding valid bonds of the City, it will be lawful for the City Council to issue bonds as proposed in the ordinance submitting same. However, if a majority of the votes are against the creation of such debt or refunding such bonds, the City Council is without authority to issue the bonds. In all cases when the City Council orders an election for the issuance of bonds of the City, it must at the same time submit the question of whether or not a tax may be levied upon the property within the City for the purpose of paying the interest on the bonds and to create a sinking fund for their redemption. (c) Revenue Bonds. 1 The City has the power to borrow money for the purpose of constructing, purchasing, improving, extending or repairing of public utilities, or any other self-liquidating municipal function not prohibited by state or federal law. 195 2 With an affirmative vote of at least two-thirds of the Council Members present and having authority to vote, the City has the power to issue revenue bonds and to evidence the obligation created thereby. 3 Such bonds are a charge upon and payable from all or any part of the properties pledged or from the income gained from the properties, or both. The holders of the revenue bonds are not entitled to demand payment on the bonds out of monies raised or to be raised by taxation. 4 All such bonds must be issued in conformity with state and federal law and must be used only for the purpose for which they were issued. (d) Emergency Funding. In any budget year, the City Council may, by affirmative vote of at least two-thirds of the Council Members present and having authority to vote, authorize the borrowing of money. Notes may be issued which are repayable not later than the end of the current fiscal year. SECTION 7.15 Purchasing (a) The City Council may by ordinance, give the City Manager general authority to contract for expenditure without further approval of the City Council for all budgeted items not exceeding limits set by the City Council within the ordinance. (b) All contracts for expenditures or purchases involving more than the limits must be expressly approved in advance by the City Council. All contracts or purchases involving more than the limits set by the City Council must be awarded by the City Council in accordance with state and federal law. (c) Emergency contracts as authorized by law and this Charter may be negotiated by the City Council or City Manager if given authority by the City Council, without competitive bidding, and in accordance with state and federal law. Such emergency may be declared by the City Manager if approved by the City Council, or may be declared by the City Council. SECTION 7.16 Administration of Budget (a) No payment may be made or obligation incurred against any allotment or appropriation except in accordance with appropriations duly made, unless the City Manager, or the City Manager's designee, first certifies that there is a sufficient unencumbered balance in the budget and that sufficient budget funds are or will be available to cover the claim or meet the obligation when it becomes due and payable. (b) Any authorization of payment or incurring of obligation in violation of Subsection (a) of this Section is void and any payment so made illegal. (c) This prohibition does not prevent the making or authorizing of payments, or making of contracts for capital improvements to be financed wholly or partly by the issuance of bonds, time warrants, certificates of indebtedness, or certificates of obligation, or to prevent the making of 196 any contract or lease providing for payments beyond the end of the fiscal year, providing that such action is made or approved by ordinance. (d) The City Manager must submit to the City Council each month a report covering the revenues and expenditures of the City in such form as requested by the City Council. SECTION 7.17 Depository All monies received by any person, department or agency of the City for or in connection with the affairs of the City must be deposited promptly in the City depository or depositories. The City depositories must be designated by the City Council in accordance with such regulations and subject to the requirements as to security for deposits and interest thereon as may be established by ordinance and law. Procedures for withdrawal of money or the disbursement of funds from the City depositories may be prescribed by ordinance. SECTION 7.18 Independent Audit When deemed necessary by the City Council, it may call —and at the close of each fiscal year —must call for an independent audit of all accounts of the City by a certified public accountant. No more than five consecutive annual audits may be completed by the same firm. The certified public accountant selected may have no personal interest, directly or indirectly, in the financial affairs of the City or any of its officers. The report of audit, with the auditor's recommendations, will be made to the City Council. Upon completion of the audit, the summary must be published immediately in the official newspaper of the City and copies of the audit placed on file in the office of the person performing the duties of City Secretary, as a public record. SECTION 7.19 Power to Tax (a) The City has the power to levy, assess and collect taxes of every character and type for any municipal purpose not prohibited by state or federal law. (b) The City has the power to grant tax exemptions in accordance with the laws of the State of Texas. SECTION 7.20 Office of Tax Collector There must be an office of taxation to collect taxes, the head of which is the City Tax Collector. The City Council may contract for such services. SECTION 7.21 Taxes; When Due and Payable (a) All taxes due in the City are payable at the office of the City Tax Collector, or at such location or locations as may be designated by the City Council, and may be paid at any time after the tax rolls for the year have been completed and approved. Taxes for each year must be paid before February 1 of the next succeeding year, and all such taxes not paid before that date are delinquent, and subject to penalty and interest as the City Council may provide by ordinance. The City Council may provide discounts for the payment of taxes before January 1 in amounts not to exceed those established by state law. 197 (b) Failure to levy and assess taxes through omission in preparing the appraisal rolls does not relieve the person, firm or corporation so omitted from obligation to pay such current or past due taxes as shown to be payable by recheck of the rolls and receipts for the years in question, omitting penalty and interest. SECTION 7.22 Tax Liens, Liabilities and Suits (a) All taxable property located in the City on January 1 of each year is charged from that date with a special lien in favor of the City for the taxes due. All persons purchasing any such property on or after January 1 in any year take the property subject to the liens provided above. In addition to these liens, on January 1 of any year, the owner of property subject to taxation by the City is personally liable for the taxes due for that year. (b) The City has the power to sue for and recover personal judgment for taxes without foreclosure, or to foreclose its lien or liens, or to recover both personal judgment and foreclosure. in any such suit where it appears that the description of any property in the City appraisal rolls is insufficient to identify such property, the City has the right to plead a good description of the property to be assessed, to prove the same, and to have its judgment foreclosing the tax lien or for personal judgment against the owners for such taxes. �i3 i Council Meeting: 09/09/2014 Account Code #: N/A Budgeted Amount: N/A Item No. 7 City Secretary's use only City of Anna City Council Agenda Staff Report Staff Contact: Clayton Fulton Date Prepared: 09/04/201 Exhibits: ❑ Yes ❑ No AGENDA SUBJECT: Consider/Discuss/Action regarding adopting an Ordinance setting the ad valorem tax rate per $100 valuation for the 2014 tax year at $0.649 for the City of Anna, Texas SUMMARY: The FY 15 budget can be funded by adopting a tax rate of $0.649 cents per $100 valuation, which is lower than the tax rate adopted last year. Of the total tax rate, $0.545826 cents are dedicated to the general fund maintenance and operations (M&O) and $0.103174 cents are dedicated for the payment of general fund debt obligations, or interest and sinking (I&S). State regulations call for specific language to be included in the ordinance and motion adopting the tax rate. The language in the motion is meant to reflect the change in the total tax rate while the language in the section 5 of the ordinance only reflects the change in the M&O portion of the rate. The M&O rate exceeds the effective rate by 8%; however, the proposed rate for 2014 is lower than the adopted rate for 2013 resulting in a $13.54 decrease on a $100,000 home. As the proposed rate exceeds the effective rate of $0.587582 the motion must be made in the following form: "I move that the property tax rate be increased by the adoption of a tax rate of $0.649000, which is effectively a 10.45% percent increase in the tax rate." RECOMMENDED ACTION: Staff recommends approval of the attached Ordinance which adopts a tax rate of $0.649 cents per $100 valuation for the 2014 tax year. CITY OF ANNA, TEXAS Ordinance No. Ordinance Setting the Tax Rate for the Next Fiscal Year AN ORDINANCE LEVYING PROPERTY TAXES FOR USE AND SUPPORT OF THE MUNICIPAL GOVERNMENT OF THE CITY OF ANNA FOR THE 2014=2015 FISCAL YEAR; PROVIDING FOR AN INTEREST AND SINKING FUND FOR ALL OUTSTANDING DEBT OF THE CITY OF ANNA; PROVIDING FOR APPORTIONING EACH LEVY FOR THE SPECIFIC PURPOSES; AND, PROVIDING WHEN TAXES SHALL BECOME DUE AND WHEN SAME SHALL BECOME DELINQUENT IF NOT PAID. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS. SECTION 1. That there is hereby levied and there shall be collected for the use and support of the municipal government of the City of Anna, and to provide an Interest and Sinking fund for the 2014-2015 fiscal year, upon all property, real, personal and mixed, within the corporate limits of said City subject to taxation, a tax of $0.649000 on each $100.00 valuation of property, said tax being so levied and apportioned to the specific purposes here set forth: a. For the maintenance and support of the general government (General Fund), $0.545826 on each $100.00 valuation of property. b. For the purpose of creating an Interest and Sinking fund to pay the interest and principal maturities of all outstanding debt of the City of Anna, not otherwise provided for, a tax of $0.103174 on each $100.00 valuation of property. SECTION 2. That taxes levied under this ordinance shall be due October 1, 2014 and if not paid on or before January 31, 2015 shall immediately become delinquent. SECTION 3. All taxes shall become a lien upon the property against which assessed, and the city assessor and collector of the City of Anna is hereby authorized and empowered to enforce the collection of such taxes according to the Constitution and laws of the State of Texas and ordinances of the City of Anna shall, by virtue of the tax rolls, fix and establish a lien by levying upon such property, whether real or personal, for the payment of said taxes, penalty and interest, and, the interest and penalty collected from such delinquent taxes shall be apportioned to the general funds of the City of Anna. All delinquent taxes shall bear interest from date of delinquency at the rate as prescribed by state law. SECTION 4. THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE. ORD. FY PAGE 1 of 2 SECTION 5. THE TAX RATE WILL EFFECTIVELY BE RAISED BY 8.00 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMLATELY $=13.54 SECTION 6. That this ordinance shall take effect and be in force from and after its passage. PASSED AND APPROVED by record roll call vote on this, the 9th day of September, 2014, Ayes Nays Abstained APPROVED: City Secretary, Natha Wilkison Mayor, Mike Crist ORD. FY PAGE 2 of 2 YtOUR} TIOMETOWN Council Meeting: 09/09/2014 Account Code Budgeted Amount: N/A Item No. 8 City Secretary's use only City of Anna City Council Agenda Staff Report Staff Contact: Clayton Fulton Date Prepared: 09/04/2014 Exhibits: ❑Yes ❑ No AGENDA SUBJECT: Consider/Discuss/Action regarding a Resolution to ratify the property tax revenue increase reflected in the City of Anna FY 2014 Budget and acknowledges that the 2013 tax year ad valorem tax rate will raise more revenue from property taxes than the previous year. SUMMARY: A separate vote of the City Council is required to ratify the adoption of the FY 2014 Budget if the Budget will raise more revenue from property taxes than the previous year. By adopting the proposed rate of $0.649, which is lower than the tax rate adopted last year, the total amount of revenue generated from property taxes will increase by $520,417 over last year. Of that amount, $242,510 is tax revenue to be raised from new property added to the tax roll this year. RECOMMENDED ACTION: Staff recommends approval of the attached resolution. CITY OF ANNA, TEXAS RESOLUTION NO. A RESOLUTION OF THE CITY OF ANNA, TEXAS ACKNOWLEDGING AND RATIFYING THAT THE ADOPTION OF THE FISCAL YEAR 2014=2015 ANNUAL BUDGET WILL REQUIRE RAISING MORE REVENUE FROM PROPERTY TAXES THAN IN THE PREVIOUS FISCAL YEAR WHEREAS, the Legislature of the State of Texas has amended Section 102.007 of the Local Government Code; and WHEREAS, a separate vote of the City Council of the City of Anna, Texas is required to ratify that the adoption of the Fiscal Year 2014-2015 Budget will require raising more revenue from property taxes than the previous fiscal year; and, WHEREAS, this resolution satisfies the aforementioned requirement; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT. Section 1. Recitals Incorporated. The facts and recitals above are incorporated herein as if set forth in full for all purposes. Section 2. Acknowledgement and Ratification of The Fiscal Year 2014-2015 annual budget will raise more revenue from property taxes than the previous fiscal year's budget by $520,417 or 18.62%, and of that amount $242,510 is tax revenue to be raised from new property added to the tax roll this year. PASSED AND APPROVED by the City Council of the City of Anna, Texas this the 9th day of September, 2014. City Secretary, Natha Wilkison APPROVED: Mayor, Mike Crist Res. Page 1 of 1 Y(OURi HOMETOWN Council Meeting: September 9, 2014 Account Code #: N/A Budgeted Amount: N/A Item No. 9 City Secretary's use only City of Anna City Council Agenda Staff Report Staff Contact: Maurice Schwanlce Date Prepared: 08/03/14 Exhibits: ■Yes ❑ No AGENDA SUBJECT: Public Hearing: City Council will hear public comment on proposed Impact Fees, SUMMARY: In accordance with Chapter 395of the Texas Local Government Code allows for the financing of capital improvements by municipalities through the implementation of impact fees. The development of these impact fees is undertaken using the following three steps: 1. Development of land use assumptions to identify types and intensities of land use within the City. 2. Development of a Capital Improvement Plan to include improvements planned for the next 10-year period to accommodate growth in the City. 3. Development of the maximum calculated impact fee. In accordance with Subchapter C, Section 395.044 of the Texas Local Government Code, a public hearing to consider all Use Assumptions and a Capital Improvement Plan under which a Roadway Impact Fee may be imposed is required. The staff has prepared the Land Use Assumptions while the City's Consulting Engineer prepared the Capital Improvement Plan. The assumptions and Plans for Roadways only include the area within the City Limits. These documents are attached for your review IMPACT FEE ADVISORY COMITTEE: A letter from the Chairman of the Impact Fee Advisory Committee (Justin Burr) is attached. The letter indicates that the Land Use Assumptions, Capital Improvement Plan, and the Maximum rate are in conformance with the requirements of the Texas Local Government Code Chapter 395 and offers no objections to the findings. RECOMMENDED ACTION: Hold Public Hearing. INSTRUCTIONS TO NEWSPAPER: Please publish this Public Hearing notice at the next available date. Please bill the City of Anna. PUBLIC HEARING CITY OF ANNA NOTICE OF PUBLIC HEARING ON PROPOSE ADOPTION OF ROADWAY IMPACT FEES The City of Anna City Council will conduct a public hearing on Tuesday, September 9, 2014 at 7:30 p.m. at the Anna City Hall Administration Building, located at 111 North Powell Pkwy (Hwy 5). The purpose of the hearing is to consider Adoption of Roadway Impact Fees. Maximum amount of Propose Impact Fee per Service Unit: Service Area A: $702.00 vehicle mile Service Area B: $616.40 vehicle mile Any member of the public has the right to appear at the hearing and present evidence for or against the Proposed Adoption of Roadway Impact Fees. 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. Persons unable to attend the hearing may submit their comments in writing to the City Secretary, P.O. Box 776, Anna, TX, 75409 or through personal deliver at the Anna City Hall, 111 N. Powell Parkway, (Hwy 5) Anna, TX, 75409 two worki Hng days prior to the meeting. DEVELOPMENT OF ROADWAY IMPACT FEE 2014 = 2024 P�•epar•ed For• CITY O F AN NA. TEXAS BIRKHOFF, HENDRICKS &CARTER, L.L.P. PROFESSIONAL ENGINEERS - TBPE Firm No. 526 DALLAS,TEXAS Lr Association With 11Gi17��3i17G TBPE Firm No. 450 Azrgust 2014 DEVELOPMENT OF ROADWAY IMPACT FEE 2014 - 2024 Prepared For CITY O F AN NA, TEXAS BIRKHOFF, HENDRICKS &CARTER, L.L.P. PROFESSIONAL ENGINEERS - TBPE Firm No. 526 DALLAS,TEXAS Itt A.ssociution Witlt I1Gi11��3i17G TBPE Firm No. 450 s PtE Q.F TF�°gs �� ...:......................:.... KELLY D. PARMA 88603 ............................... oW71A August 2019 CITY OF ANNA THOROUGHFARE CAPITAL IMPROVEMENT PLAN ROADWAY IMPACT FEES INTRODUCTION Chapter 395 of the Texas Local Government Code allows for the financing of capital improvements by municipalities through the implementation of impact fees. The development of these impact fees is undertaken using the following three steps: 1. Development of land use assumptions to identify types and intensities of land use within the City. 2. Development of a Capital Improvement Plan to include improvements planned for the next 10-year period to accommodate growth in the City. 3. Development of the maximum calcz�lated impact fee. rw�.rt Ill)f.`ll l>�I[.Y.Yllu 1 y Y [�)►`f.`l One of the initial steps in developing roadway impact fees includes the identification of data 1•elated to the planned land uses for land within the City of Anna city limits. The land use data provided by the City of Anna included projected growth by land use type and the locations they are expected to occur over the next 10 years (2014-2024) and at build -out. A summary of the land use data provided for the land within the city limits of Anna is provided in Table 1. Table 1 -Summary of Land Use Data City of Anna 2014 Roadway Impact Fee Study Land Use Residential Industrial Retail Office Unit Dwelling Unuits Acres Acres Acres 2014 31479 38 45 19 2024 61844 101 243 41 Ultimate 17,307 672 985 651 CAPITAL IMPROVEMENT PLAN After the land use assumptions within the City have been identified, and with the help of the City's Thoroughfare Plan, a 10-year Capital Improvement Plan (CIP) is developed. This capital improvement plan includes projects intended for construction by the City of Anna in the next 10 City of Anna — 2014 Roadway Impact Fee Page 1 years to serve both existing and future development. In order to be funded by roadway impact fees, a roadway project must be included in the 10-year CIP. Existing Facilities The City of Anna major roadway and collector street system is partially developed la time. Several roadways in developed areas are partially built to current thoroughfare plan standards. Many existing streets are two-lane (20' - 40' width) asphalt roadways with open surface drainage. Many of the proposed roadway segments on the thoroughfare plan do not currently exist. The existing major roadways within the City include US Highway 75 (US 75), State Highway 5 (SH 5)/Powell Street, FM 455/White Street, and SH 121. Existing major collectors include segments of Rosamond Parkway and Ferguson Parkway. The major roadways identified above (US 75, SH 5, FM 455, and SH 121) are under the operation and maintenance jurisdiction of the Texas Department of Transportation (TxDOT). Pioposecl Facilities The City of Anna adopted a Comprehensive Plan in 2010, including a thoroughfare plan that is the basis for development of the future street system. The thoroughfare system is a conventional network conforming to a hierarchical, functional classification system developed to support the forecast traffic demands of future land use. The highest classification of roadway is the Major Roadway type facility. These roadways are generally multiple lanes (4 or 6) with medians that serve the function of controlling access, separating opposing traffic movements and providing an area for the storage of left turning vehicles. The lower classifications are the collector facilities that are developed to serve the adjoining developments. The character of the developments served should determine the sizes and alignments of collector roadways. Ca�tal Imz��ovement Plan foT' Roadway, Impact Fees The thoroughfare facilities determined for inclusion in the Capital Improvement Plan of this study are tabulated in Table 2 and graphically illustrated in Figure 1. Each listed project includes a description of the planned improvements, the approximate project length, and an engineer's opinion of probable cost to the City. In addition, under• existing State Statute, a municipalities' cost associated with TxDOT facilities can be financed with impact fees. All roadways included in the 2014 CIP are identified in the City of Anna Thoroughfare Plan. City of Anna — 2014 Roadway Impact Fee Page 2 3 ow G) Lim U m cQ G m f0 R Vol 0 N m C C Q O CJ ell MINN INA Mg >71 UPI MAN PON WON MIN RUM lei ON ERR IBM RPM NON gm� MORO 60 NO mill NO IRA IN OWN ON vvv Fill Ell IBM Mel 1-1 IR5 ■moo I � j z �f N i LO \\ \ r L 1 1 1 f� O law 11 a 1 u I _ vORMIN 1 y .00o am LM am I N �_ . ■ :Q ■ 77/4Z4 W� Ob ^, ■IleIt ■ a _ �'�Id Ilenaod/9 HS �■ ■ CID)� 0 E m t'LL ` ■A ■ (a J ■ ,. ■ O ■ 62 IO ■ OOOOLM �O M CL MEN IrIII 101111111 TOM ��• - - L ��� ■ 99Z/B9E"W�� sn N ..1........ 1 . \ � � •,ems — 1 `.......Nomm .,; N Sam N /G^i OI \\\\ 1 LL VI \ \ L M � _----- I i G/ •� N ...... .N a i - w m ■MEN I N O N C LL I ai w d E �i l0 a U- - ,KN UN N u� ?K U o`' U NW w C O` m N N O c 'O N 0. c o 0 Co a., a` •� I U I i I H I I 101 `(DO The engineer's opinions of probable construction cost were prepared without the benefit of a detailed preliminary engineering study for each project. The costs were developed with the assistance of Birkhoff, Hendricks & Carter and are based on data provided by the City of Anna and on roadway project construction bids. Costs of these projects included only those costs that will be paid for by the City of Anna. Financing costs for the projects in the CIP were also included in the total estimated cost and the interest rate of 5%was provided by the City of Anna. IMPACT FEE CALCLATION After the land use assumptions and CIP have been finalized, this information is used to determination the maximum fee per service unit (impact fee) that can be charged by the City for new developments. The fee is calculated by dividing the costs of the capital improvements identified as necessary to serve growth forecast to occur during the 10-year planning period (CIP) by the number of service units of growth forecast to occur (using the land use assumptions). The specific steps, as described in following paragraphs of this section include: 1. Determination of a standard service unit; 2. Identification of service areas for the City; 3. Analysis of the total capacity, level of cuI•rent usage, and commitment for usage of capacity of existing improvements; 4. Identification of that portion of the total capital improvements necessary to serve the projected growth over the next 10-year period, 5. Determination of the "standard service unit" and equivalency tables establishing the ratio of a service unit to the types of land use forecast for growth, 6. Calculating the resulting eligible costs per service unit (impact fee) for new developments in each service area. Se�wice Unit To determine the impact fee rate applied to thoroughfare facilities the standard service unit selected was "PM Peals Hour Vehicle -Miles." This service unit can be obtained by multiplying the number of trips generated by a specific land use type during the PM peals hour (vehicles) by the average trip length (miles) for that land use. The PM peak hour was chosen because it is usually considered the critical time for roadway analyses. The trip generation data were directly obtained or derived for each defined land use type from "Trip Generation Manual, 9th Edition" of the Institute of Transportation Engineers, which is the standard data reference to determine vehicle trip City of Anna — 2014 Roadway Impact Fee Page 5 generation characteristics of particular land use types and densities. Trip length information for each land use specified was based on data developed for the Dallas -Fort Worth area by the North Central Texas Council of Governments (NCTCOG). The trip length was set at a maximum of three (3) miles for any land use, as this trip length was assumed to be the maximum average distance a trip would travel on roadways wn each service area in the City of Anna. Table 3 shows the typical service units for each land use type used in developing the roadway impact fees. Table 3 -Service Unit Calculation by Land Use Type City of Anna 2014 Roadway Impact Fee Study Variable PM Peak Trips (vehicles) Trip Length2 (miles) PM Peak Hour Vehicle -Miles Residential Dwelling Unit 1.00 3.0 3.00 Office 1,000 ft2 1.49 3.0 4.47 Commercial / Retail 11000 ft2 3.71 1 2.4 1 8.90 Industrial 1,000 ft2 0.97 3.0 2.91 � Based on fTE Trip Generation Manual, 9th Edition z Based on NCTCOG data Service Areas The State Statute governing the imposition of development impact fees require that collection and expenditure of fees imposed for street facilities "...is limited to an area within the corporate boundaries of the political subdivision and shall not exceed six miles." To comply with this State Law, two service areas (Service Area 1 and Service Area 2) were established for the City of Anna to ensure that funds are spent within six miles of where they are collected. The two service areas were shown in Figure 1, with SH 5/Powell Avenue serving as the breakpoint between the two service areas. The service areas include most of the developable land within the existing city limits of Anna. Anal sy is of 10-Yeas° and Ultimate Growth The land use assumption data provided by the City of Anna was converted to the standard service unit (vehicle -miles) by applying the trip generation and trip length data provided in Table 3. These results were used to provide an estimate of the existing service units (vehicle -miles) within each service area, as well as to forecast the growth in service units for both the next 10-year period (2014-2024) and the ultimate development of the City of Anna. Table 4 shows the portion of ultimate build -out service units that will be attributable to growth within the next 10 years. City of Anna — 2014 Roadway Impact Fee Page 6 Table 4 - Summary of Vehicle -Mileage Distribution by Development Period City of Anna 2014 Roadway Impact Fee Study Existing 2014 - 2024 Year 2024 - Ultimate Service Area Vehicle -Miles 2014 Portion of Ultimate Vehicle -Miles Vehicle -Miles Added 2014-2024 Portion of Ultimate Vehicle -Miles Vehicle -Miles Added 2024 - Ultimate Portion of Ultimate Vehicle -Miles Ultimate Vehicle -Miles 1 12,820 0.118 18,716 0.173 76,792 0.709 108,328 21 21790 0.045 9,213 0.148 50,376 0.808 1 62,379 11 Total 15, 610 27,929 127,168 1 170, 707 Capital bnp�^ovements Costs NecessaT;y to Sep^ve 10-Yeas^ G�^owth The total costs for implementing the roadway CIP were identified previously in Table 2. The street facility improvements identified in the CIP will logically serve all existing and future growth by improved safety and drainage characteristics. Therefore, the 10-year eligible costs have been proportioned as the ratio of the 10-year growth to the total number of service units determined for build -out, as provided in Table 4. Table 5 presents a summary of the roadway capital improvement costs for the two service areas. Table 5 -Summary of Capital Improvement Cost by Service Area City of Anna 2014 Roadway Impact Fee Study Service Area Zone Cost of Thoroughfare Portion of Capacity of Thoroughfare Attributed to Growth (2014 - 2024) Cost of Thoroughfare Attributed to Growth (2014 - 2024) 1 $151,9711436,00 0.173 $26,291,058443 2 $7617921156.00 0.148 $11,365,239.09 Totals $228,763,592.00 $3716561297.52 In order to maintain the equity of impact fee assessment, the cost for streets included in the 10-year Capital Improvement Plan will include the total cost of the street facilities, not reduced by any expected participation. Rather, construction by a developer of an arterial facility within or off -site should be treated as a credit to the impact fee assessment. Deter^urination ofStanda�^d Ser^vice Unit Eduivalencx Table 6 presents the derivation of service unit equivalents for each of the four defined land use types. The service unit equivalents are referenced to and based on the residential land use. City of Anna — 2014 Roadway Impact Fee Page 7 Table 6 = Thoroughfare Land Use Equivalency City of Anna 2014 Roadway Impact Fee Study Land Use Development Unit Veh-Miles I Development Unit (1) SU Equivalency (2) Residential Dwelling Unit 3.00 1.00 Office 11000 ft2 4.47 1.49 Commercial / Retail 11000 ft2 8.90 2.97 Industrial 11000 ft2 2.91 0.97 Notes: (1) Based on data from the ffETrip Generation Manual and NCTCOG (2) Ratio of each land use to service unit of Residential Cost Per Service Unit (Impact Fee) Calculation Table 7 presents a summary of the calculations and resulting capital improvement costs attributable to growth per service unit, which represents the maximum calculated impact fee. This fee is calculated by taking the cost of the CIP attributable to growth in the next 10 years (Table 5) and dividing it by the estimated growth, or the number of new service units (Table 4), in the next 10 years. Table 7 -Impact Fee Calculation for Thoroughfare by Service Area City of Anna 2014 Roadway Impact Fee Study Service Area Cost of Thoroughfare Attributed to Growth (2014 = 2024) Number of New Service Units (2014 - 2024) Cost Per Service Unit Cost Per Service Unit (Rounded) 1 $26,291,058.43 18,716 $1,404074 $1,404 2 $1113651239.09 91213 $11233.61 $1,233 Totals $37,656,297.52 27,929 Under current State law, municipalities are required to administer a detailed financial analysis to support the use of an impact fee higher than 50 percent of the eligible costs. As an alternative to performing the financial analysis, the impact fee can be set at or below 50 percent of the total eligible costs, which are shown in Table 7. The City will use either a detailed financial analysis to adjust for tax credits or will use 50 percent of these eligible costs. SUMMARY OF IMPACT FEE CALCULATION METHODOLOGY The methodology for calculating the maximum allowable impact fee for roadway facilities can be summarized in the following three steps and is summarized for both Service Areas 1 and 2 on the following pages. First, the cost of the roadway facilities (existing roadways eligible for recuperation of construction cost and proposed roadways) that can be attributed to new growth over the 10-year period is determined. City of Anna — 2014 Roadway Impact Fee Page 8 Calculation for Service Area 1 Cost of Roadway Facilities (Table 2 - Service Area 1) _ $151,971,436.00 Proportion of Capacity Attributable to New Growth (Table 4 - Service Area 1) = 0.173 Cost of Roadway Facilities Attributable to Growth (2014-2024): $151,971,436.00 x 0.173 = $26,291,058.43 The second step is to determine the maximum calculated impact fee. The maximum calculated impact fee is the ratio of the total cost for roadway facilities attributable to growth in the next ten years (2014-2024) divided by the total growth in equivalent service units (ESU) i Maximum Roadway Impact Fee = Eligible Thoroughfare Cost Attributed to Growth (Table 5) Total Growth in Equivalent Service Units (Table 4) _ $26,291,058.43 18,716 ESU _ $1,404.74 /ESU = $1,404 /ESU (Rounded Service Area 1) This amount represents the maximum calculated impact fee for roadway facilities. For the final step, the current impact fee legislation requires the City to produce a financial analysis to support a fee greater than 50 percent of the eligible costs or to reduce the maximum calculated impact fee by 50 percent. If the City chooses to use a maximum allowable impact fee of 50 percent of the maximum calculated fee the amount would be $1,404 x 50% _ $702.00. Calculation for Service Area 2 Cost of Roadway Facilities (Table 2 -Service Area 2) _ $76,792,156.00 Proportion of Capacity Attributable to New Growth (Table 4 - Service Area 2) = 0.148 Cost of Roadway Facilities Attributable to Growth (2014-2024): $76,792,156.00 x 0.148 = $11,365,239.09 The second step is to determine the maximum calculated impact fee. The maximum calculated impact fee is the ratio of the total cost for roadway facilities attributable to growth in the next ten years (2014-2024) divided by the total growth in equivalent service units (ESU). The maximum calculated impact fee for Service Area 2 is: City of Anna — 2014 Roadway Impact Fee Page 9 Maximum Roadway Impact Fee = Eligible Thoroughfare Cost Attributed to Growth (Table 5) Total Growth in Equivalent Service Units (Table 4) _ $11,365,239.09 %213 ESU _ $1,233.61 /ESU = $1,233 /ESU (Rounded Service Area 2) This amount represents the maximum calculated impact fee for roadway facilities. For the final step, the current impact fee legislation requires the City to produce a financial analysis to support a fee greater than 50 percent of the eligible costs or to reduce the maximum calculated impact fee by 50 percent. If the City chooses to use a maximum allowable impact fee of 50 percent of the maximum calculated fee the amount would be $1,233 x 50% _ $616.50. IMPACT FEE CALCULATION EXAMPLE A land use equivalency table is provided in Table 8 and represents an expansion of the basic land uses used for calculating the impact fee. This table identifies the total service units generated by specific uses within each land use category and includes land uses which may develop over the next 10-year period. To obtain the impact fee to be charged for a particular land use, the impact fee per service unit adopted by the City and the service units per development unit generated for that particular land use from Table 8 are used. Examples for calculating the impact fee for both a single family dwelling unit and a 50,000 ft2 shopping center (commercial / retail facility) assuming maximum allowable impact fees of $702.00 per service unit (Service Area 1) and $616.50 per service unit (Service Area 2) are shown on page 12. City of Anna — 2014 Roadway Impact Fee Page 10 Table 8 - Land Use Equivalency City of Anna 2014 Roadway Impact Fee Study CATEGORY LAND USE DEVELOPMENT ITE TRIP TRIP PASS -BY SERVICE UNITS' RATE2 LENGTH TRAFFIC4 UNITS*' RESIDENTIAL Single -Family Detached Dwelling Unit 1.00 3.0 0 3.00 Apartment Dwelling Unit 0.62 3.0 0 1.86 OFFICE Office Building 1,000 ft2 GFA 1.49 3.0 0 4.47 COMMERCIAL Convenience Stores/Gas Pumps 1,000 ft2 GFA 50.92 0A 0.66 6.93 Drive -In Bank 11000 ft2 GFA 24.30 1.7 0.47 21.89 Home Improvement Store 1,000 ft2 GFA 2.33 3.0 0.48 3.63 Hotel Rooms 0.60 3.0 0 1.80 Restaurant 1,000 ft2 GFA 9.85 2.4 0.43 13.47 Shopping Center 11000 ft2 GFA 3.71 3.0 0.34 7.35 INDUSTRIAL Industrial 1,000 ft2 GFA 0.97 3.0 0 2091 INSTITUTIONAL School Students 0.15 2.1 0 0.32 Day Care Center Students 0.81 2.7 0.9 0.22 House of Worship 1,000 ft2 GFA 0.55 2.1 0 1.16 ' GFA =Gross Floor Area z (Vehicles); Based on ITE Trip Generation, 9th Edition a (Niles); Based on NCTCOG Data ° Percentage of traffic already passing by site - land use is an intermediate destination e (Vehicle -Niles) The land uses and trip generation characteristics listed in this chart are intended as examples. The complete table of land uses and trip generation characteristics is contained in the Institute of Transportation Engineers "Trip Generation, Ninth Edition,"which is incorporated herein by reference. City of Anna - 2014 Roadway Impact Fee Page 11 Service Area 1 — Example Calculations SINGLE-FAMILY DWELLING (Service Area 1) • Vehicle -Miles per Development Unit for Single -Family Dwelling Unit (1 Dwelling Unit) x (3.00 Vehicle -Miles / Dwelling Unit) = 3.00 Vehicle -Miles • Assume 50 percent of the Maximum Calculated Roadway Impact Fee = $702.00 / Service Unit: (3.00 Vehicle -Miles) x ($702.00 / Vehicle -Miles) _ $ 2,106.00 50,000 ft2 SHOPPING CENTER (Service Area D • Vehicle -Miles per Development Unit for Shopping Center (505000 ft2) x (7.35 Vehicle -Miles / 1,000 ft2) — 367.50 Vehicle -Miles • Assume 50 percent of the Maximum Calculated Roadway Impact Fee = $702.00 / Service Unit: (367.50 Vehicle -Miles) x ($702.00 / Vehicle -Miles) _ $257,985.00 Service Area 2 —Example Calculations SINGLE-FAMILY DWELLING (Service Area 2) • Vehicle -Miles per Development Unit for Single -Family Dwelling Unit (1 Dwelling Unit) x (3.00 Vehicle -Miles /Dwelling Unit) = 3.00 Vehicle -Miles • Assume 50 percent of the Maximum Calculated Roadway Impact Fee = $616.50 /Service Unit: (3.00 Vehicle -Miles) x ($616.50 / Vehicle -Miles) _ $1,849.50 50,000 ft2 SHOPPING CENTER (Service Area 2) • Vehicle -Miles per Development Unit for Shopping Center (50,000 ft2) x (7.35 Vehicle -Miles / 1,000 ft) = 367.50 Vehicle -Miles • Assume 50 percent of the Maximum Calculated Roadway Impact Fee = $616.50 / Service Unit: (367.50 Vehicle -Miles) x ($616.50 / Vehicle -Miles) _ $226,563.75 City of Anna — 2014 Roadway Impact Fee Page 12 CITY OF AN NA, TEXAS DEVELOPMENT OF ROADWAY IMPACT FEE 2014 - 2024 BIRKHOFF, HENDRICKS &CARTER, L.L.P. PROFESSIONAL ENGINEERS - TBPE Firm No. 526 11910 Greenville Ave., Suite 600, Dallas, Texas 75243 Phone (214) 361-7900 In Association With TBPE Finn No. 450 3030 LBJ Freeway, Suite 1660, Dallas, Texas 75234 Phone (972) 248-3006 AUGUST 2014 City of Anna, Texas Impact Fee Advisory Committee 111 N. Powell Parkway Anna, Texas 15409 June 2, 2014 Re: Roadway Impact Fee Impact Fee Advisory Committee Recommendation Honorable Mayor Crist and the City of Anna City Council: The City of Amia Impact Fee Advisory Committee, established in accordance with Section 395.058 of the Texas Local Government Code, met on thus date for the purpose of reviewing the proposed 2014 Roadway Impact Fee calculation and report. The Impact Fee Advisory Committee reviewed i11e 2014 Roadway lmpact Fee Land Use Assumptions prepared by the City of Anna Planning and Development Staff; the 2014 Roadway Impact Fee Capital Improvement Plan, and the calculated Maximum Roadway Impact Fees per service area as prepared by Birkhoff, Hendricks & Carter, L.L.P. Professional Engineers and their traffic engineering sub -consultant, Lee Engineering. On behalf of the Advisory Committee, we find the Roadway Impact Fee Land Use Plan to be consistent with the City's current Comprehensive Plan; and the Roadway Impact Fee Capital Improvement Plan to be consistent with the Roadway Impact Fee Land Use Plan. It is the Advisory Committee's opinion that the maximum roadway impact fees per service area presented in the 2014 Roadway Impact Fee Report prepared by Bin off, Hendricks & Carter, LLP in association with Lee Engineering is in general conformance with the requirements of Texas Local Government Code Chapter 395. The Impact Fee Advisory Committee offers no objections. Sincerely Justin Bun• Chairman, Impact Fee Advisory Committee Item No. 10 City Secretary's use only City of Anna City Council Agenda an Report Y{OUR1 HOMETOWN Council Meeting: September 9, 2014 Staff Contact: City Manager Account Code #: Budgeted Amount: Exhibits: X Yes ❑ No AGENDA SUBJECT: Consider/Discuss/Action regarding a Resolution approving an Amended Subdivision Improvement Agreement with the Owners of an approximate 634 acre tract of land located in the Grandison Stark Survey, Abstract No. 798. SUMMARY: On February 11, the City Council approved a Subdivision Improvement Agreement with the owners of a 634 acre tract of land located east of State Highway 5 and primarily north of CR 422. As we have proceeded through the design phase of the project, the owner has elected to develop the northern part of the District B residential tract before the southern part. As a result of this change, the developer will need to build a longer section of the CR 422 roadway and waterline improvements within the first three years. The location of the Phase 1 project lift station and force main has also changed. The additional roadway and water line extensions will still qualify as reimbursable expenses under the same terms as the original agreement. The amended agreement includes changes to the exhibits that show the water, sewer and roadway improvements that the developer will construct during the first three years of the agreement. RECOMMENDED ACTION: Staff recommends approval of the attached Resolution and amended agreement. CITY OF ANNA, TEXAS RESOLUTION NO. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING A FIRST AGREEMENT AMENDING A SUBDIVISION IMPROVEMENT AGREEMENT BETWEEN THE CITY OF ANNA, TEXAS (THE "CITY") AND ANNA TOWN CENTER NO. 1/BRGT, LTD., ANNA TOWN CENTER NO, 2/BRTO, LTD., ANNA TOWN CENTER NO. 3/WARN, LTD., ANNA TOWN CENTER NO, 4/SHRP, LTD., ANNA TOWN CENTER NO. 5/HSLT, LTD., ANNA TOWN CENTER NO. 6/LNRD, LTD., ANNA TOWN CENTER NO, 7/LNRD, LLC, 40 PGE, LTD., O.P. LEONARD, JR. INVESTMENT COMPANY, LTD., AND NANCY ALICE LEONARD INVESTMENT COMPANY, LTD., (COLLECTIVELY, "OWNER") AND ANNA CROSSING AMC, LTD., ("PAYEE"). WHEREAS, on February 11, 2014 the City Council of the City of Anna, Texas (the "City Council") approved a Subdivision Improvement Agreement (SIA) with the Owners of an approximate 634 acre tract of land located in the Grandison Stark Survey, Abstract No. 798, and; WHEREAS, the City, Owner, and Payee now desire to amend the SIA to address the requirement to construct certain Public Improvements; and WHEREAS, the City Council finds that approval of this First Agreement Amending the SIA will benefit the City and is in the best interests of the citizens of Anna; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. Recitals Incorporated. The recitals above are incorporated herein as if set forth in full for all purposes. Section 3. Approval of Agreement Amending Subdivision Improvement Agreement. The City Council hereby approves the First Agreement Amending the Subdivision Improvement Agreement attached hereto as Exhibit 1, and authorizes, ratifies and approves the City Manager's execution of same. The City Manager is hereby authorized to execute all documents and to take all other actions necessary to finalize, act under, and enforce the amended Agreement. PASSED AND APPROVED by the City Council of the City of Anna, Texas, on this the 9tn day %J September, 2014. ATTEST: Natha Wilkison, City Secretary APPROVED: Mayor, Mike Crist CITY OF ANNA, TEXAS RESOLUTION NO. PAGE 1 OF 1 FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT This First Agreement Amending Subdivision Improvement Agreement (this "First Amendment") is entered into between and among the City of Anna, Texas (the "City") and Anna Town Center No. 1/BRGT, Ltd., Anna Town Center No. 2/BRTO, Ltd., Anna Town Center No. 3/WARN, Ltd., Anna Town Center No. 4/SHRP, Ltd., Anna Town Center No. 5/HSLT, Ltd., Anna Town Center No. 6/LNRD, Ltd., Anna Town Center No. 7/LNRD, LLC, 40 PGE, Ltd., O.P. Leonard, Jr. Investment Company, Ltd., and Nancy Alice Leonard Investment Company, Ltd., (collectively, "Owner") and Anna Crossing AMC, Ltd., ("Payee") as follows: WHEREAS, Owner, Payee and the City are sometimes collectively referenced in this First Amendment as the "Parties"; and WHEREAS, the Parties previously entered into a Subdivision Improvement Agreement ("SIA"), attached hereto as Exhibit 1, related to the Development of the Property; and WHEREAS, the City, Owner, and Payee now desire to amend the SIA to address the requirement to construct certain Public Improvements; and WHEREAS, the capitalized terms used in this First Amendment are as defined in the SIA unless expressly set forth to the contrary herein; and WHEREAS, it is the Parties' mutual intent that this First Amendment shall govern only the subject matter specifically set forth herein and shall supersede any previous agreement between the Parties and City Regulations only to the extent that any such agreements or City Regulations directly conflict with the terms of this First Amendment; and NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties agree as follows: SECTION 1 RECITALS INCORPORATED The recitals set forth above are incorporated herein as if set forth in full to further describe the Parties' intent under this First Amendment and said recitals constitute representations by Owner, Payee and the City. SECTION 2 REPLACEMENT OF EXHIBIT B Exhibit B of the SIA is hereby amended and replaced with a new Exhibit B which is attached to this First Amendment as Exhibit 2. SECTION 3 REPLACEMENT OF EXHIBIT D FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT Page � 1 Exhibit D of the SIA is hereby amended and replaced with a new Exhibit D which is attached to this First Amendment as Exhibit 3. SECTION 4 AMENDMENTS TO SECTION 6 Section 6 paragraph (0)(1) of the SIA is hereby amended as follows: (1) Owner is responsible for funding and construction of all roadway improvements required to serve the Property, including but not limited to the Roadway Facilities and at least two lanes of each roadway included in Exhibit F €4 Future Roadway Facilities; provided, however, that Owner —to the extent provided for in this Agreement —shall be entitled to reimbursement of certain road capital improvement fees in a total amount that shall not exceed the Final Reimbursable Amount for the Roadway Facilities and the Future Roadway Facilities. Section 6 paragraph (b)(2)(ii) of the SIA is hereby amended as follows: ii. Except as outlined in paragraph (2)(iii) below, Reimbursable Costs of the Future Roadway Facilities include engineering, design, and construction costs necessary for Future Roadway Facilities in excess of two lanes of each roadway included in Exhibit F €4 that are constructed by the Owner and accepted by the City within ten (10) years of the Effective Date of this Agreement. SECTION 5 REPLACEMENT OF EXHIBIT E Exhibit E of the SIA is hereby amended and replaced with a new Exhibit E which is attached to this First Amendment as Exhibit 4. SECTION 6 REPLACEMENT OF EXHIBIT 1 Exhibit I of the SIA is hereby amended and replaced with a new Exhibit I which is attached to this First Amendment as Exhibit 5. SECTION 7 CONFLICTS AND EFFECTIVE DATE To the extent of any conflict between this First Amendment and the SIA, this First Amendment shall govern. The Effective Date of this First Amendment is the date that the last of the 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 and Payee have duly executed same. FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT Page � 2 [SIGNATURES PAGES FOLLOW, REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT Page � 3 Owner: Anna Town Center No. 1/BRGT, Ltd., a Texas Limited Partnership By: Anna Town Center No. 1/BRGT GP Corporation, a Texas Corporation, its General Partner By: Richard M. Skorburg, its President IN WITNESS WHEREOF: STATE OF TEXAS § COUNTY OF § Before me, the undersigned notary public, on the day of , 2014, 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. 1/BRGT GP Corporation, in its capacity as general partner for Anna Town Center No. 1/BRGT, Ltd. Notary Public, State of Texas FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT Page � 4 Owner: Anna Town Center No. 2/BRTO, Ltd., a Texas Limited Partnership By: Anna Town Center No. 2/BRTO GP Corporation, a Texas Corporation, its General Partner By: Richard M. Skorburg, its President IN WITNESS WHEREOF: STATE OF TEXAS § COUNTY OF § Before me, the undersigned notary public, on the day of , 2014, 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. 2/BRTO GP Corporation, in its capacity as general partner for Anna Town Center No. 2/BRTO, Ltd. Notary Public, State of Texas FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT Page � 5 Owner: Anna Town Center No. 3/WARN, a Texas Limited Partnership By: Anna Town Center No. 3/WARN GP Corporation, a Texas Corporation, its General Partner By: Richard M. Skorburg, its President IN WITNESS WHEREOF: STATE OF TEXAS § COUNTY OF § Before me, the undersigned notary public, on the day of , 2014, 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. 3/WARN GP Corporation, in its capacity as general partner for Anna Town Center No. 3/WARN, Ltd. Notary Public, State of Texas FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT Page � 6 Owner: Anna Town Center No, 4/SHRP, Ltd., a Texas Limited Partnership By: Anna Town Center No. 1/SHRP GP Corporation, a Texas Corporation, its General Partner By: Richard M. Skorburg, its President IN WITNESS WHEREOF: STATE OF TEXAS § COUNTY OF § Before me, the undersigned notary public, on the day of , 2014, 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. 1/SHRP GP Corporation, in its capacity as general partner for Anna Town Center No. 1/SHRP, Ltd. Notary Public, State of Texas FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT Page � 7 Owner: Anna Town Center No. 5/HSLT, Ltd., a Texas Limited Partnership By: Anna Town Center No. 5/HSLT GP Corporation, a Texas Corporation, its General Partner By: Richard M. SI<orburg, its President IN WITNESS WHEREOF: STATE OF TEXAS § COUNTY OF § Before me, the undersigned notary public, on the day of , 2014, 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. 5/HSLT GP Corporation, in its capacity as general partner for Anna Town Center No. 5/HSLT, Ltd. Notary Public, State of Texas FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT Page � 8 Owner: Anna Town Center No. 6/LNRD, Ltd., a Texas Limited Partnership By: Anna Town Center No. 6/LNRD GP Corporation, a Texas Corporation, its General Partner By: Richard M. SI<orburg, its President IN WITNESS WHEREOF: STATE OF TEXAS § COUNTY OF § Before me, the undersigned notary public, on the day of , 2014, 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. 6/LNRD GP Corporation, in its capacity as general partner for Anna Town Center No. 6/LNRD, Ltd. Notary Public, State of Texas FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT Page � 9 Owner: Anna Town Center No. 7/LNRD, LLC, a Texas limited liability company, By: Skorburg ATC No. 7/LNRD1 Ltd., a Texas Limited Partnership By: Skorburg ATC No. 7/LNRD GP Corporation, a Texas corporation, its General Partner By: Richard M. Skorburg, its President IN WITNESS WHEREOF: STATE OF TEXAS COUNTY OF Before me, the undersigned notary public, on the day of , 2014, 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 Skorburg ATC No. 7/LNRD GP Corporation, in its capacity as general partner for Skorburg ATC No. 7/LNRD, Ltd., in its capacity as managing member of Anna Town Center No. 7/LNRD, LLCM Notary Public, State of Texas FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT Page � 10 Owner: 40 PGE, Ltd., a Texas Limited Partnership By: 40 PGE GP Corporation, a Texas Corporation, its General Partner By: Richard M. Skorburg, its President IN WITNESS WHEREOF: STATE OF TEXAS § COUNTY OF § Before me, the undersigned notary public, on the day of , 2014, 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 40 PGE GP Corporation, in its capacity as general partner for 40 PGE, Ltd. Notary Public, State of Texas FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT Page � 11 Owner: O.P. Leonard, Jr. Investment Company, Ltd., a Texas Limited Partnership By: Pecan TEX, LLC, a Texas Limited Liability Company, its General Partner By: Leonard, Jr., its President IN WITNESS WHEREOF: STATE OF TEXAS COUNTY OF Before me, the undersigned notary public, on the day of , 2014, personally appeared 0,13 Leonard, Jr., 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 Pecan TEX, LLC, in its capacity as general partner for O.P. "Paul" Leonard, Jr. Investment Company, Ltd. Notary Public, State of Texas FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT Page � 12 Owner: Nancy Alice Leonard Investment Company, Ltd. a Texas Limited Partnership By: Pecan TEX, LLC, a Texas Limited Liability Company, its General Partner By: O.P. "Paul" Leonard, Jr., President IN WITNESS WHEREOF: STATE OF TEXAS § COUNTY OF § Before me, the undersigned notary public, on the day of , 2014, personally appeared O.P. "Paul" Leonard, Jr., 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 Manager and President of Pecan TEX, LLC, in its capacity as general partner for Nancy Alice Leonard Investment Company, , Ltd. Notary Public, State of Texas FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT Page � 13 Payee: ANNA CROSSING AMC, LTD. By: ANNA CROSSING AMC GP CORPORATION By: Richard M. Skorburg, its President STATE OF TEXAS § COUNTY OF § Before me, the undersigned notary public, on the day of , 2014, 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 Crossing AMC GP Corporation, in its capacity as general partner for Anna Crossing AMC, Ltd. Notary Public, State of Texas FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT Page � 14 CITY OF ANNA By: Philip Sanders, City Manager IN WITNESS WHEREOF: STATE OF TEXAS § COUNTY OF § Before me, the undersigned notary public, on the day of , 2014, personally appeared Philip Sanders, 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 City Manager of the City of Anna, Texas. Notary Public, State of Texas FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT Page � 15 ATTACH IVIL; IV Exhibit 1— Subdivision Improvement Agreement (SIA) Exhibit 2 —Revised SIA Exhibit B Exhibit 3 —Revised SIA Exhibit D Exhibit 4 —Revised SIA Exhibit E Exhibit 5 —Revised SIA Exhibit I FIRST AGREEMENT AMENDING SUBDIVISION IMPROVEMENT AGREEMENT Page � 16 CR 421 DATE: 8/26/2014 I RESIDENTIAL � I IDISTRICT C PHASE 1 I PROJECT \ .STATION 1--- - P,A/5E 1 'PriRPIECT' RCE MAIN/ FV UR / ESIDENTIAL B ON—S END SECT1 4(b)(3)ii;iil The Clemons Creek Sanitary Sewer Interceptor shall consist of a minimum 15 inch sanitary sewer line beginning at the connection tERN to the existing Clemons Creek sanitary sewer interceptor in Melissa w and extending north to CR 422, and shall include a metering v station and SCADA equipment that meets all City and North Texas Municipal Water District requirements. The Project Lift Station and Project Force Main shall be designed to some residential District A and District B as shown on this BOUN)ARY DISTRICT Exhibit B. A) SECTION 4(b)(3)(i) The final location and alignment of the Clemons Creek Sanitary Sewer Interceptor, the Project Force Main, and the Project Lift Station shall be subject to approval by the City. The design and \ construction of the Sanitary Sewer Facilities shall conform to the most current City Regulations CR 421 �33W0 W CaI� U V) W LLI 0 W Ld a U ? AMLIA COWN COUNTY OUTER LOOP � N METERING STATION 800 400 0 800 ANNA ET.J. MELISSA CRY LIMB z SCALE IN FEET M � = 1 " = 800' UJ O to a. EXHIBIT "B° W� ANITARY SEWER ate= FACILITIES ANNA TOWN SQUARE CITY OF ANNA OFF —SITE START (EXISTING ® CO COUNTY, TEXAS MANHOLE IN MELISSA) SECTION 4(b)(3)(i) ®th't'hEcEt!'fI;CONCEPTS 3�Exhibit D -elopers Agreement.dwg U U- W . 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I i An IS zlo- N. ,j 'm08lo 01 am a at i"i MIAOI \ Io F 2 tl� IN III.\ gN " IN A N>N \ to B`sp "tb§4q �� A l 1 ♦ a" at j£N °j B �Sa;,-b;la j n ,� n a t n mFx .- }L 6i} 3,.Z�Z1t4.{ON ZZ4'Yi'd �ii ma YNI f 0 hop: aTq NO q 7 0� ~ up 6 J q 6 � 8 �i ar o gz r i 13 Cif Si bil l'�]'.�1�h Council Meeting: September 9, 2014 Sanders Account Code #: N/A Budgeted Amount: N/A Item No. 11 City Secretary's use only City of Anna City Council Agenda Staff Report Staff Contact: Philip Date Prepared: 9-4-14 Exhibits: ❑Yes ❑ No 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 Economic Development Negotiations: (1) To discuss or deliberate regarding commercial or financial information that the City has received from a business prospect that the City seeks to have locate, stay, or expand in or near the territory of the City of Anna and with which the City is conducting economic development negotiations; or (2) To deliberate the offer of a financial or other incentive to a business prospect described by subdivision (1). (Tex. Gov't Code §551.087); proposed residential and retail developments; d. discuss or deliberate personnel matters: City Secretary Annual Review and Update; City Manager Annual Review; (Tex. Gov't Code §551.074). The council further reserves the right to enter into executive session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. i Council Meeting: September 9, 2014 Account Code #: N/A Budgeted Amount: N/A Item No. 12 City Secretary's use only City of Anna City Council Agenda Staff Report Staff Contact: Philip Sanders Date Prepared: 9-4-14 Exhibits: ❑Yes ❑ No AGENDA SUBJECT: Consider/Discuss/Action on any items listed on posted agenda for September 9, 2014 Workshop Session or any Closed Session occurring during this Regular Meeting, as necessary. SUMMARY: RECOMMENDATION: i Council Meeting: September 9, 2014 Account Code #: N/A Budgeted Amount: N/A AGENDA SUBJECT: Adjourn. SUMMARY: Item No. 13 City Secretary's use only City of Anna City Council Agenda Staff Report Staff Contact: Philip Sanders Date Prepared: 9-4-14 Exhibits: ❑Yes ❑ No RECOMMENDATION: Staff recommends a motion to adjourn.