City Manager’s Office 215 E. McKinney St., Denton, TX 76201  (940) 349-8307

MEMORANDUM

DATE: March 8, 2019 TO: The Honorable Mayor Watts and Council Members FROM: Todd Hileman, City Manager SUBJECT: Friday Staff Report

I. Council Schedule

A. Meetings

1. Public Utilities Board Meeting on Monday, March 11, 2019 at 9:00 a.m. in the City Council Work Session Room.

2. No City Council Meeting on Tuesday, March 12, 2019.

3. No Agenda Committee Meeting Wednesday, March 13, 2019.

4. Development Code Review Committee Meeting on Friday, March 15, 2019 at 11:00 a.m. in the City Council Work Session Room.

B. Upcoming Events

1. NLC Congressional City Conference, March 10-13, 2019, Washington, D.C.

2. Denton Chamber of Commerce Annual Banquet and Awards Dinner, March 21, 2019 at 6:15 p.m. at UNT Gateway Center.

3. Farewell Celebration for Bryan Langley on Friday, March 22 from 2:00- 4:00 p.m. at City Council Work Session Room.

II. General Information & Status Update

A. Leadership Transitions – On Monday, March 4, the City of Burleson City Council appointed Denton’s Deputy City Manager, Bryan Langley as their new City Manager. Bryan has been a valued member of the Denton team for more than 10 years and will leave a lasting, positive legacy in our organization. Join us in congratulating Bryan on his new role. Bryan’s last day with the City of Denton

OUR CORE VALUES Integrity  Fiscal Responsibility  Transparency  Outstanding Customer Service will be March 26. The City Manager’s Office will host a farewell celebration for Bryan on Friday, March 22 from 2:00 p.m. to 4:00 p.m. in the City Council Work Session Room. All are invited and encouraged to attend.

Effective March 18, Tony Puente will be promoted to the role of Interim Assistant City Manager. Tony’s wealth of experience will help ensure a seamless management transition as the organization prepares for Bryan’s departure. Attached is a revised organizational chart, which will be effective until a permanent Assistant City Manager is selected.

The Human Resources Department has engaged Ralph Andersen & Associates, a national executive recruiting firm, to assist with the selection of a new, permanent Assistant City Manager. The position is currently posted through Ralph Anderson & Associates’ website at: https://www.ralphandersen.com/jobs/acm-denton/. The job posting is set to close on March 25. Additional details related to the Assistant City Manager recruitment process can be found in the attached recruitment brochure. The City Manager’s Office will provide updates via the Friday Report as the selection process progresses. Staff contact: Todd Hileman, City Manager

B. Congestion at the I-35W Bonnie Brae Exit – At the March 5, 2019 Council meeting, Council Member Hudspeth expressed concerns regarding traffic backups on I-35W at the Bonnie Brae exit and how this backup coincides with the shift change at the nearby Peterbilt manufacturing facility. There was also an additional question on the feasibility of Police providing traffic direction and management in that area or and adjustment to the signal timing. The cost associated with having officers work traffic during their shift change impact the Police budget since overtime would be required to ensure proper patrol coverage within the City. One option would be for the City to negotiate an agreement with Peterbilt whereby they would reimburse the City for those services. Because Police must provide service continuity and given that calls for service increase during this time of day, utilizing on-duty resources would not be sustainable in the long-term without funding to utilize additional officers. Additionally, due to the presence of several areas of regular traffic backups within the City, Police must remain strategic and selective when deploying officers to ease congestion. Staff is currently evaluating the feasibility of a signal timing adjustment and will update council when additional information is available. Staff contact: Chief Frank Dixon, Police

C. 2018 Achievement of Excellence in Libraries Award – The Denton Public Library was recently awarded the 2018 Achievement of Excellence in Libraries Award from the Texas Municipal Library Director’s Association (TMLDA.) TMLDA is an affiliate of the Texas Municipal League. Each year TMLDA confers awards for outstanding contributions to public libraries. To successfully receive the Achievement of Library Excellence Award, the applicant must exhibit excellence in providing services to underserved and special populations, in enhancing services, in marketing their programs and services in innovative ways, in promoting cultural, topical, and educational programming, in providing literacy support, in providing summer reading clubs, in pursuing collaborative efforts, in supporting workforce development, in providing for digital inclusion, and in comprehensively training staff. According to the Texas State Library and Archives Commission, 548 public library systems exist in Texas. Of those libraries, only 51 received the award. With this honor, the Denton Public Library is in the top 10% of all public libraries in the State. Staff contact: Jennifer Bekker, Director of Libraries

D. Hickory Phase V – On March 1, 2019, Council Member Meltzer requested information relating to the timing of the Hickory Street Project between N. Welch Street and Carroll Blvd. Hickory Street Phase V is the final portion of a street and utility reconstruction project designed to provide new infrastructure along with pedestrian and traffic enhancements. This phase has an estimated construction schedule of January 2020 to May 2020. Staff will update Council in the event this schedule changes. Staff contact: Haley Salazar, Capital Projects

E. Utility Poles near Golden Triangle Mall – During the March 5 City Council meeting, staff was asked to provide information on the temporary “stub poles” near Golden Triangle Mall and I-35E (see image below). The stub poles in question were temporarily installed by a TxDOT contractor from the west entrance of the Golden Triangle Mall and continuing southward (on the east side of the interstate) to just past the future Brinker Road underpass. The temporary poles carry communications fiber for TxDOT that controls their cameras south to Dallas, the Texas Motor Speedway, and north to the county line. Once the local interstate bridges are completed, TxDOT will be able to remove these temporary poles. Staff contact: George Morrow, DME

F. Degree Requirements for City Job Postings - At the Feb. 26 City Council Meeting, staff was asked to review degree requirements for entry-level City job postings. Following that request, the Human Resources Department reviewed the City’s currently posted positions. All exempt positions, which are positions that are not eligible for overtime, have a degree listed as a minimum qualification, regardless of the position’s pay grade or level in the organization. Despite listing a degree requirement, almost all exempt job postings include additional information that states, “or any combination of related education, experience, certifications and licenses that will result in a candidate successfully performing the essential functions of the job.” With a few limited exceptions for highly specialized positions, the hiring manager can consider years of experience, licenses, and certifications in lieu of education. Most of the non-exempt positions, which are positions that are eligible for overtime, have a high school diploma listed as a requirement, and many of them include the same equivalency language describe above for non-exempt positions.

Staff is currently transitioning to a new Human Resources Information Management System, and as a part of the transition to the new system, staff will work to identify ways to make it clearer for potential applicants that years of experience and other credentials can serve in lieu of a degree. Staff contact: Carla Romine, Human Resources

G. Clara’s Kitchen Catering – The City Secretary’s Office has contacted the owners of Clara’s Kitchen and is finalizing plans to add them as a caterer for future City Council meeting meals. Staff is working with the Clara’s Kitchen team to select menu items and determine future dates when the restaurant will provide City Council meeting meals. Staff will provide the planned Clara’s Kitchen catering dates in the March 15 Friday Report. Staff contact: Rachel Wood, City Manager’s Office

H. Temporary Lane Closures: I-35 and US-377 – Weather permitting, this Saturday, March 9 until Monday, March 11, from 9:00 a.m. until 3:30 p.m., the I-35 Frontage right turn lane to US 377 southbound will be closed for curb demolition. Additionally, weather permitting, Tuesday, March 12 until Saturday, March 16, from 9 a.m. until 3:30 p.m., intermittent daily traffic shifts will begin to allow crews to safely complete construction of a box culvert across US-377 at Massey Street. Staff contact: Stephanie Yates, Public Affairs

I. Hickory Street Public Meeting – The City held a public information meeting for the ongoing Hickory Street capital improvement project on Thursday, March 7. Staff shared information on the progress of the project, updates on the construction schedule, and solicited feedback through comment cards for the proposed options for traffic realignments to support one-way traffic and bike lanes. All submitted feedback regarding the proposed changes on Mulberry Street and Avenue A from the meeting will be shared with staff. The handouts and materials presented at the meeting will be available on the Hickory Street project page online here. Staff contact: Stephanie Yates, Public Affairs

J. Downtown Design Standards – At the March 5 City Council Work Session on the proposed Denton Square District and Denton Square Design Standards and Guidelines, Council directed the Development Services Department to hold a public forum on the proposal to gather more input from the community. The Development Services Department has scheduled a public meeting for Monday, March 25, from 6:00 p.m. to 8:00 p.m. at the Development Services Building, located at 215 E. Hickory Street. Development Services is partnering with Public Communications to invite stakeholders and publicize this opportunity for the Denton community as a whole to provide input and feedback. Staff contact: Sean Jacobson, Development Services

K. Council Member Briggs Appointed to NLC Council - City Council Member Keely Briggs has been appointed to the National League of Cities (NLC) 2019 Council on Youth, Education, and Families. This council guides and oversees the work of the Institute for Youth, Education, and Families. Additionally, the council fosters peer-learning and networking opportunities for elected municipal leaders; stimulates effective leadership on behalf of children, youth and families; and elevates the voices of city and youth leaders in broader discussions of the needs of youth, children and families. A press release was issued on March 8, 2019 and has been included as an attachment in this report. Staff contact: Jessica Rogers, Public Affairs

L. Pipeline Age in Agenda Information Sheet – On February 26, 2019 Council Member Briggs requested information on including gas pipeline age in the agenda information sheet for development items. While the Texas Railroad Commission does make pipeline information available on the Public GIS Viewer, information on the age of gas pipelines are not included. Staff is not aware of a source for this information so would be unable to include gas pipeline age in the Agenda Information Sheet. Staff contact: Charlie Rosendahl, Development Services.

M. Cleanup of Encampment at North Lakes Park – City staff have recently established plans to clean up an inactive homeless encampment within North Lakes Park. Staff, including the Street Outreach team, recently observed and performed an assessment of the site and concluded the excessive trash and debris constituted a public health and safety concern. The attached memo outlines the conditions at the encampment location, the steps staff can take to address the public health and safety issues, and the local partners assisting in the effort to rehabilitate the site. Staff contact: Gary Packan, Parks and Recreation

III. Upcoming Community Events and Meetings

A. Events

1. No events to report.

B. Community Meetings

1. Water Conservation and Drought Contingency Plan – Thursday, March 14, 2019 at 6:00 p.m. at Denton Civic Center (321 E. McKinney St.); Staff contact: Tyler Dawson, Water

2. Neighborhood Meeting (Service Center) – Monday, March 18, 2019 at 5:30 p.m. at Facilities Management (869 Woodrow St.); Staff contact: Charlie Rosendahl

3. Denton Development Code Public Meeting – Monday, March 18, 2019 at 6:00 p.m. at Denton Civic Center (321 E. McKinney St.); Staff contact: Scott McDonald, Development Services

4. McKinney Street Widening Project – Wednesday, March 20, 2019 at 6:00 p.m. at Denton Civic Center (321 E. McKinney St.); Staff contact: Noreen Housewright, Capital Projects

5. Denton Development Code Public Meeting – Thursday, March 21, 2019 at 6:00 p.m. Denton Civic Center (321 E. McKinney St.); Staff contact: Scott McDonald, Development Services

6. Denton Square Design Standards and Guidelines Public Meeting – Monday, March 25, from 6:00 p.m. to 8:00 pm. at Development Services Building (215 E. Hickory St.); Staff contact: Sean Jacobson, Development Services

7. TxDOT Loop 288 Public Meeting – Thursday, March 28, 2019 at 6:00 p.m. at McMath Middle School (1900 Jason Dr.); Staff contact: Mario Canizares, City Manager’s Office

IV. Attachments

A. City of Denton Organizational Chart (updated March 7, 2019) B. Assistant City Manager Recruitment Brochure C. Council Member Briggs Appointment Press Release D. North Lakes Park Site Clean Up Memo

V. Informal Staff Reports

A. 2019-037 First Quarter Financial Report B. 2019-038 FY 2018-19 Annual Program of Services C. 2019-039 Debt Summary Report as of September 30, 2018 D. 2019-040 Water Conservation and Drought Contingency Plan Update E. 2019-041 DEC January 2019 Dashboard F. 2019-042 Mayhill Asphalt Millings G. 2019-043 Impact Fee Revenue Use H. 2019-044 Part I Crimes Comparison I. 2019-045 Oak Street and Fry Street Intersection Call Analysis J. 2019-046 Service Center Neighborhood Concerns K. 2019-047 Development Certificates and Licenses Information L. 2019-048 Citizen Participation in the Draft Denton Development Code

VI. Council Information

A. Council Meeting Requests for Information B. Other Council Requests for Information C. Draft Agenda for March 19 D. Council Calendar E. Future Work Session Items F. Street Construction Report Organization Chart Citizens March 2019

City Council

Boards, Commissions, & Committees City Attorney

Municipal Judge Internal Auditor

City Manager

Interim Assistant City Manager Assistant City Manager Fire

Chief Financial Officer Capital Projects Community Improvement Services

Police

Accounting/ Budget/ Treasury Streets Development Services

Airport Traffic Operations

Fleet Services Drainage Planning

Customer Service Engineering Services Building Inspections

Utilities Engineering Development Review

Municipal Court Human Resources

Animal Services Water Operations

Library Wastewater Operations Risk Management/ Health Ins.

Parks & Recreation Environmental Services Electric Operations

Economic Development Solid Waste Operations Public Affairs

Procurement/ Compliance Gas Well Review

Community Development Facilities Management

Materials Management Technology Services Chief of Staff

City Manager's Office

City Secretary

Reprographics

Strategic Planning THE COMPENSATION The anticipated starting salary is +/- $185,000, depending on qualifications. A superior benefits package is also offered, including Texas Municipal Retirement System at the 7% employee contribution level with a 2-to-1 match by the City upon retirement. Other benefits include medical, dental, vision, life, and disability insurance as well as vacation, sick leave, holiday pay, an optional ICMA/RC’s 457 deferred compensation plan, and other highly competitive benefits. The City will provide assistance with moving and relocation, if appropriate. Further details on compensation may be obtained through Ralph Andersen & Associates. THE RECRUITMENT PROCESS Interested candidates should apply by March 25, 2019. Electronic submittals are strongly preferred to apply@ ralphandersen.com and should include a compelling cover • Good political acumen will serve the position well, as the letter and a comprehensive resume. Assistant City Managers in Denton frequently interact with Recruitment Timeline the City Council and other officials. • Recruitment Closes: March 25, 2019 • Confidence and strong communication skills are critical attributes for success in this role. The Assistant City Manager • City Review of Candidate Submittals: Week of April 8, 2019 must leverage these skills to cast the vision, direction, and • Panel Interviews: Week of April 15, 2019 values of the City across its various departments. • Finalist Interviews (if needed): Week of April 22, 2019 • While the assigned departments for the Assistant City Top candidates may be asked to complete a written Manager may be adjusted based on the City’s needs and supplemental questionnaire to elaborate on areas of the areas of experience of the Assistant City Managers, expertise and demonstrate their ability to communicate strong finance and budget skills are universally important effectively. and valued. This recruitment incorporates existing rules and regulations EXPERIENCE AND EDUCATION that govern public sector recruitments in the State of Texas. Any combination of related education, experience, In accordance with public disclosure/open record laws, certifications, and licenses that will result in a candidate information submitted for consideration may be made successfully performing the essential functions of the job available to the public upon request by interested parties. is qualifying. A typical way to obtain these qualifications is: Interested candidates are encouraged to contact Mr. Greg Education: A bachelor’s degree in public administration or Nelson at (916) 630-4900 with confidential inquiries and related field and; questions regarding the recruitment process. Experience: Seven years of progressively responsible public sector administrative and managerial experience. Experience as an Assistant/Deputy City Manager or City Manager is preferred. City of Denton Assistant City Manager The City of Denton is an Equal Opportunity Employer.

Recruitment services provided by Ralph Andersen & Associates CITY OF DENTON GOVERNMENT CHALLENGES AND The City of Denton operates under the Council-Manager OPPORTUNITIES form of government. The Mayor and six-member Council The next Assistant City Manager should be prepared to address are elected for two-year terms; four members are elected a number of known challenges and opportunities: by District and the two remaining seats plus the Mayor are • The rapid pace of growth places immense demands on elected at-large. The City Manager is appointed by the Council planning, fiscal, infrastructure and service delivery functions and serves as the Chief Executive Officer for the City, ensuring for the City. Significant developments have been proposed that the policies of the Council are implemented and that the that would add up to 15,000 single family homes in a 6,000- entire community is being served. The City Manager prepares acre area on the west side of Denton. the budget for the Council’s consideration; recruits, hires, and supervises the local government staff; and serves as the • As society evolves in the way that it interacts with its Council’s chief advisor. governments, the City must become more intentional, swift, and comprehensive with its community outreach efforts – The City has a Fiscal Year (FY) 2018-2019 overall operating especially in an engaged community such as Denton. and capital budget of $1.19 billion and has funding for 1,667 FTEs. Operating as a full-service municipality, Denton operates • With increased demands on service delivery and its several major enterprise operations including Airport, Electric, infrastructure, the City must continually refine its budget to Water, Wastewater, Solid Waste, and Drainage, in addition to seek efficiencies. For similar reasons, the need for effective standard municipal governmental services. The City of Denton strategic planning is heightened. prides itself on citizen involvement, innovation, and efficient • The City Council has annual elections, which can result THE OPPORTUNITY Located at the northern tip of a high growth area known use of municipal resources. in more frequent changes in policy and direction. The as “The Golden Triangle” (formed by the cities of Denton, For city management professionals, the City of Denton offers a Municipal services and operations are guided by the City’s City Manager and his Executive Team must be agile and Fort Worth, and Dallas), the City is a dynamic community compelling career opportunity. Relative to its rapidly growing strategic plan, which was created to ensure that the community responsive to these changes. This fluid environment requires whose rapid growth has affected its infrastructure as well population of over 140,000, the scale and complexity of the realizes its vision and mission. In September of 2017, the City executives to sometimes work “outside of their lanes” and as its culture. Denton is approximately 95 square miles in City of Denton is unique. The budget in excess of $1 billion Council approved the City’s FY 2017‐18 Strategic Plan. The be comfortable with others working in theirs. Turfing is not territory and strategically positioned approximately 37 miles and over 1,600 employees tell only part of the story; the City’s Strategic Plan serves as the basis for the development of the tolerated, and teamwork is promoted. northwest of Dallas and 35 miles northeast of Fort Worth. progressive stance and engaged citizenry often put the City Annual Operating Budget. Located on the Interstate 35 corridor at the intersection of THE IDEAL CANDIDATE as the leader in adopting avant-garde policies and programs. I-35E and I-35W, Denton is approximately 25 miles from The Strategic Plan is organized into five Key Focus Areas: The City of Denton is seeking an accomplished city management This environment will provide immeasurable career growth Dallas Fort Worth International Airport and 20 miles north • Organizational Excellence; professional of high ethics and accountability. The ideal and fulfillment for committed city management professionals. of Alliance Airport. • Public Infrastructure; candidate will have a number of traits and experience that ABOUT DENTON, TEXAS will translate to greater success: Since the nineteenth century, Denton has been a major • Economic Development; The City of Denton is a unique community, blending its historic higher education center. The City is home to two state • A verifiable track record of experience in leading projects past with a dynamic and high growth environment, coupled universities – the University of North Texas and Texas • Safe, Livable, and Family-Friendly Community; and and people to successful outcomes, across a diverse array with a diversity to give it economic viability and strength. Woman’s University, with a combined enrollment in excess • Sustainable and Environmental Stewardship. of municipal services. Ideal candidates are “doers”, that Founded in 1857, Denton has grown from a small frontier of 50,000 students. The City is also served by the North To learn more about the City of Denton, visit the City’s website are motivated by accomplishment. Decisions should be town to a burgeoning suburbanized area with an estimated Central Texas College, the oldest two-year public college in at www.cityofdenton.com. supported by data and sound business practices. population of over 140,00. Denton is the county seat of and a Texas. Higher education is supported by the award-winning THE POSITION • Past experience as an Assistant/Deputy City Manager or as major city in Denton County. The City’s historic downtown is Denton Independent School District serving more than a City Manager of a smaller community are desired. Strong the heart of Denton; the square and surrounding streets are 27,000 students in a 180 square-mile district. Reporting directly to the City Manager, the Assistant City candidates will be well rounded in their career experiences. vibrant and busy both day and night as a gathering place for While the amenities of the major metropolitan settings in Manager provides executive leadership over a number of city commerce, civic events, and entertainment. Dallas and Fort Worth are only minutes away, a variety of departments and, generally, as part of the City Manager’s performing arts, cultural, and entertainment opportunities Executive Team. The City expects an active leader who is highly are also found within the community. The City and its communicative, engaging, and accessible to the members of surrounding area offer theater, symphony orchestras, the organization as well as the community. museums, intercollegiate athletics, and other cultural and In the last three years, the City of Denton has been undergoing recreational amenities. Denton also has 30 parks and over a rapid and dramatic transformation, making the organization 300 acres of open space, plus eight recreational facilities. much more responsive, accountable, transparent, and Golf courses and nearby lakes offer superior outdoor businesslike. As such, the Assistant City Manager plays a recreation. pivotal role in the continuing change effort. The full job description for the position and organizational chart for the City can be found at www.ralphandersen.com/ jobs/acm-denton.

WWW.CITYOFDENTON.COM CITY OF DENTON GOVERNMENT CHALLENGES AND The City of Denton operates under the Council-Manager OPPORTUNITIES form of government. The Mayor and six-member Council The next Assistant City Manager should be prepared to address are elected for two-year terms; four members are elected a number of known challenges and opportunities: by District and the two remaining seats plus the Mayor are • The rapid pace of growth places immense demands on elected at-large. The City Manager is appointed by the Council planning, fiscal, infrastructure and service delivery functions and serves as the Chief Executive Officer for the City, ensuring for the City. Significant developments have been proposed that the policies of the Council are implemented and that the that would add up to 15,000 single family homes in a 6,000- entire community is being served. The City Manager prepares acre area on the west side of Denton. the budget for the Council’s consideration; recruits, hires, and supervises the local government staff; and serves as the • As society evolves in the way that it interacts with its Council’s chief advisor. governments, the City must become more intentional, swift, and comprehensive with its community outreach efforts – The City has a Fiscal Year (FY) 2018-2019 overall operating especially in an engaged community such as Denton. and capital budget of $1.19 billion and has funding for 1,667 FTEs. Operating as a full-service municipality, Denton operates • With increased demands on service delivery and its several major enterprise operations including Airport, Electric, infrastructure, the City must continually refine its budget to Water, Wastewater, Solid Waste, and Drainage, in addition to seek efficiencies. For similar reasons, the need for effective standard municipal governmental services. The City of Denton strategic planning is heightened. prides itself on citizen involvement, innovation, and efficient • The City Council has annual elections, which can result THE OPPORTUNITY Located at the northern tip of a high growth area known use of municipal resources. in more frequent changes in policy and direction. The as “The Golden Triangle” (formed by the cities of Denton, For city management professionals, the City of Denton offers a Municipal services and operations are guided by the City’s City Manager and his Executive Team must be agile and Fort Worth, and Dallas), the City is a dynamic community compelling career opportunity. Relative to its rapidly growing strategic plan, which was created to ensure that the community responsive to these changes. This fluid environment requires whose rapid growth has affected its infrastructure as well population of over 140,000, the scale and complexity of the realizes its vision and mission. In September of 2017, the City executives to sometimes work “outside of their lanes” and as its culture. Denton is approximately 95 square miles in City of Denton is unique. The budget in excess of $1 billion Council approved the City’s FY 2017‐18 Strategic Plan. The be comfortable with others working in theirs. Turfing is not territory and strategically positioned approximately 37 miles and over 1,600 employees tell only part of the story; the City’s Strategic Plan serves as the basis for the development of the tolerated, and teamwork is promoted. northwest of Dallas and 35 miles northeast of Fort Worth. progressive stance and engaged citizenry often put the City Annual Operating Budget. Located on the Interstate 35 corridor at the intersection of THE IDEAL CANDIDATE as the leader in adopting avant-garde policies and programs. I-35E and I-35W, Denton is approximately 25 miles from The Strategic Plan is organized into five Key Focus Areas: The City of Denton is seeking an accomplished city management This environment will provide immeasurable career growth Dallas Fort Worth International Airport and 20 miles north • Organizational Excellence; professional of high ethics and accountability. The ideal and fulfillment for committed city management professionals. of Alliance Airport. • Public Infrastructure; candidate will have a number of traits and experience that ABOUT DENTON, TEXAS will translate to greater success: Since the nineteenth century, Denton has been a major • Economic Development; The City of Denton is a unique community, blending its historic higher education center. The City is home to two state • A verifiable track record of experience in leading projects past with a dynamic and high growth environment, coupled universities – the University of North Texas and Texas • Safe, Livable, and Family-Friendly Community; and and people to successful outcomes, across a diverse array with a diversity to give it economic viability and strength. Woman’s University, with a combined enrollment in excess • Sustainable and Environmental Stewardship. of municipal services. Ideal candidates are “doers”, that Founded in 1857, Denton has grown from a small frontier of 50,000 students. The City is also served by the North To learn more about the City of Denton, visit the City’s website are motivated by accomplishment. Decisions should be town to a burgeoning suburbanized area with an estimated Central Texas College, the oldest two-year public college in at www.cityofdenton.com. supported by data and sound business practices. population of over 140,00. Denton is the county seat of and a Texas. Higher education is supported by the award-winning THE POSITION • Past experience as an Assistant/Deputy City Manager or as major city in Denton County. The City’s historic downtown is Denton Independent School District serving more than a City Manager of a smaller community are desired. Strong the heart of Denton; the square and surrounding streets are 27,000 students in a 180 square-mile district. Reporting directly to the City Manager, the Assistant City candidates will be well rounded in their career experiences. vibrant and busy both day and night as a gathering place for While the amenities of the major metropolitan settings in Manager provides executive leadership over a number of city commerce, civic events, and entertainment. Dallas and Fort Worth are only minutes away, a variety of departments and, generally, as part of the City Manager’s performing arts, cultural, and entertainment opportunities Executive Team. The City expects an active leader who is highly are also found within the community. The City and its communicative, engaging, and accessible to the members of surrounding area offer theater, symphony orchestras, the organization as well as the community. museums, intercollegiate athletics, and other cultural and In the last three years, the City of Denton has been undergoing recreational amenities. Denton also has 30 parks and over a rapid and dramatic transformation, making the organization 300 acres of open space, plus eight recreational facilities. much more responsive, accountable, transparent, and Golf courses and nearby lakes offer superior outdoor businesslike. As such, the Assistant City Manager plays a recreation. pivotal role in the continuing change effort. The full job description for the position and organizational chart for the City can be found at www.ralphandersen.com/ jobs/acm-denton.

WWW.CITYOFDENTON.COM THE COMPENSATION The anticipated starting salary is +/- $185,000, depending on qualifications. A superior benefits package is also offered, including Texas Municipal Retirement System at the 7% employee contribution level with a 2-to-1 match by the City upon retirement. Other benefits include medical, dental, vision, life, and disability insurance as well as vacation, sick leave, holiday pay, an optional ICMA/RC’s 457 deferred compensation plan, and other highly competitive benefits. The City will provide assistance with moving and relocation, if appropriate. Further details on compensation may be obtained through Ralph Andersen & Associates. THE RECRUITMENT PROCESS Interested candidates should apply by March 25, 2019. Electronic submittals are strongly preferred to apply@ ralphandersen.com and should include a compelling cover • Good political acumen will serve the position well, as the letter and a comprehensive resume. Assistant City Managers in Denton frequently interact with Recruitment Timeline the City Council and other officials. • Recruitment Closes: March 25, 2019 • Confidence and strong communication skills are critical attributes for success in this role. The Assistant City Manager • City Review of Candidate Submittals: Week of April 8, 2019 must leverage these skills to cast the vision, direction, and • Panel Interviews: Week of April 15, 2019 values of the City across its various departments. • Finalist Interviews (if needed): Week of April 22, 2019 • While the assigned departments for the Assistant City Top candidates may be asked to complete a written Manager may be adjusted based on the City’s needs and supplemental questionnaire to elaborate on areas of the areas of experience of the Assistant City Managers, expertise and demonstrate their ability to communicate strong finance and budget skills are universally important effectively. and valued. This recruitment incorporates existing rules and regulations EXPERIENCE AND EDUCATION that govern public sector recruitments in the State of Texas. Any combination of related education, experience, In accordance with public disclosure/open record laws, certifications, and licenses that will result in a candidate information submitted for consideration may be made successfully performing the essential functions of the job available to the public upon request by interested parties. is qualifying. A typical way to obtain these qualifications is: Interested candidates are encouraged to contact Mr. Greg Education: A bachelor’s degree in public administration or Nelson at (916) 630-4900 with confidential inquiries and related field and; questions regarding the recruitment process. Experience: Seven years of progressively responsible public sector administrative and managerial experience. Experience as an Assistant/Deputy City Manager or City Manager is preferred. City of Denton Assistant City Manager The City of Denton is an Equal Opportunity Employer.

Recruitment services provided by Ralph Andersen & Associates

FOR IMMEDIATE RELEASE Jessica Rogers  (940) 349-7531  [email protected]

Council Member Briggs Appointed to Serve on National League of Cities’ Council on Youth, Education, and Families

DENTON, TX, March 8, 2019 – Denton City Council Member Keely G. Briggs has been appointed to the National League of Cities (NLC) 2019 Council on Youth, Education, and Families.

This council guides and oversees the work of the Institute for Youth, Education, and Families. Additionally, the council fosters peer-learning and networking opportunities for elected municipal leaders; stimulates effective leadership on behalf of children, youth and families; and elevates the voices of city and youth leaders in broader discussions of the needs of youth, children and families. The appointment was announced by NLC President Karen Freeman- Wilson, mayor, Gary, Indiana.

“Working to move our community toward continuously improving outcomes for children and families has been at the foundation of my service as a council member and volunteer,” said Council Member Briggs. “I am honored to be asked to join the National League of Cities Council for Youth, Education, and Families. Affordable housing, health and wellness, education, economic opportunity, and engaging our youth are some of the biggest challenges facing our society. As a member of this council, I will work side by side with other leading public officials and experts to shape policy and practice guidelines to help communities tackle these issues on behalf of their children and families.”

“Our Council on Youth, Education and Families helps ensure local leaders around the country are making their cities better for children and families. The city of Gary has received invaluable assistance and guidance from our engagement with YEF and I am sure other communities will continue to benefit,” said Karen Freeman-Wilson. “I am proud to have Keely Briggs join NLC's YEF Council on behalf of her residents. Together with a team of local leaders from around the country, we will work to solve the most pressing challenges facing youth and children in our communities.”

The leadership of this year’s council consists of Co-Chair Tameika Isaac Devine, Councilmember, Columbia, South Carolina; Co-Chair Victoria Woodards, Mayor, Tacoma, Washington; and Vice Chair LaToya Cantrell, Mayor, New Orelans.

For more information on NLC’s member councils, visit: https://www.nlc.org/serve-on-a- member-council.

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Visit www.cityofdenton.com for more news and to stay updated.

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215 E. McKinney St., Denton, TX 76201  (940) 349-8307

MEMORANDUM

DATE: March 8, 2019 TO: Todd Hileman, City Manager Bryan Langley, Deputy City Manager Antonio Puente, Chief Financial Officer FROM: Gary Packan, Director of Parks and Recreation Sarah Kuechler, Director of Public Affairs/IGR SUBJECT: Site Clean Up at North Lakes Park

Staff is recommending clean-up of a site in North Lakes Park due to excessive trash and debris, health and safety concerns, complaints from residents and neighbors, and an assessment by the Street Outreach Team that the site is not currently an active encampment. The following memo outlines the history of the site and actions taken, explains the recommendation from an interdepartmental team, and provides next steps.

HISTORY Based on the accumulation of debris, the Street Outreach Team first identified this site as a possible encampment of people experiencing homelessness approximately six (6) months ago. Please see below a map showing the location of the site and a few photos (additional photos are attached).

**Area outlined in orange will be cleared of litter.

OUR CORE VALUES Integrity  Fiscal Responsibility  Transparency  Outstanding Customer Service

ADA/EOE/ADEA www.cityofdenton.com TDD (800) 735-2989

The Street Outreach Team is a cross-sector collaborative team with representatives led by Giving Hope, Inc. and the Denton Police Department that includes Denton County MHMR, Vision Ministries, and a Denton Fire Paramedic conducting outreach to individuals living unsheltered two (2) to four (4) times a month. Their goal is to meet homeless individuals in their environment, provide them with information on housing, employment, and benefit resources they may qualify to receive, and connect them to resources.

Street Outreach has visited the site eight (8) times in the last six (6) months in an attempt to provide social service outreach and referrals. During their visits, the team has only encountered one at the site. During all other visits, including their most recent visit on March 1, no one was present at the encampment.

In addition, Parks and Recreation staff have visited the site since the department was made aware of the accumulation of trash and debris. No persons were encountered during the department’s two recent site visits. During both visits, large areas of trash and debris were identified. Attached are several photos taken from Parks and Recreation’s recent site visits.

On March 8, 2019, Parks and Recreation staff visited the area again and did not encounter anyone during their visit. The area of focus during this visit was the area outlined in orange in the map above. This will be the area that will be pursued for initial clean-up.

While this site was first identified in late 2018, staff did not realize the magnitude of increasing trash and debris until recently.

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DECISION TO CLEAN-UP The site has been evaluated by an interdepartmental team of Parks and Recreation, Community Development, Police, Fire, Legal and Public Affairs. This team collaborates to address the impacts of homelessness on City property and services and improve connections to available resources. This team, in consultation with the Street Outreach Team, is recommending that the site be cleaned up based upon the following reasons:

 The focus area is not an active encampment: Based upon all visits, by the Street Outreach Team, Denton Police Department, and Parks and Recreation, over a period of six (6) months, no individuals have been identified staying at the site.  Repeated street outreach visits: The Street Outreach Team has made multiple visits in an attempt to locate and connect any individuals staying or passing through the site to available resources.  Health and safety concerns: There is an approximately 10,000 sq. foot area of trash and debris that poses a serious public health and safety concern. Discarded drug paraphernalia and discarded prescription medications have been found on-site. The large volume of waste, with flammable materials, poses a significant fire and safety risk to individuals and families visiting the park. Clean up is also necessary for the environmental preservation of the wooded area and nearby properties. On Feb. 15, 2019 at 2:04 p.m., the Denton Fire Department responded to a rubbish fire on the southside of the dam. There is additional concern for the animals that can be attracted to the large amounts of trash to the site and the neighborhood. Furthermore, the contamination of the trash and debris may be running off into a nearby creek (see picture below).

 Resident Complaints: o In Feb. 2019, four service requests were submitted by residents through the Engage Denton app expressing concerns about trash and debris and homeless activity in North Lakes Park. o On Feb. 22, 2019, Parks and Recreation staff received an email from a concerned resident. The resident expressed concerns for park user safety as well as the concern for the large amount of trash that has accumulated including found drug paraphernalia, suitcases, discarded prescription medicines, toys, bits of tents and sleeping bags, cooking utensils, bags of trash, and rotting food. o On Feb. 28, 2019, Parks and Recreation staff received a phone call from a neighbor to the park concerned about the people living in his backyard and the amount of trash in the area. The resident noted that shopping carts have been left on or near his property and people have walked in/out the woods regularly. He also requested assistance helping to clean up the park. The same resident contacted the Police Department expressing his concerns.

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CLEAN-UP PROCESS Staff plans to proceed with the following steps to clean-up the site, but beforehand, give advance notification to individuals who may be impacted by the clean-up of the site, and hopefully, provide a connection to resources to individuals who may benefit from such resources.  Post Signs: On Wed., March 13, Parks and Recreation staff plans to post signs in various visible locations around the impacted area to notify anyone who may have an ownership interest in items located, on or around the impacted area which is City property that said City property will be cleaned up on a specified date and time, which will be 72 hours later from the date the sign is posted; that such items will be removed from the impacted area on the specified date/time and may be subject to disposal provided the owner of the item cannot be reasonably identified and/or fails to remove the items by the specified date and time on the posted sign; and lastly, that any item that is debris, unusable, hazardous or pose a health or safety risk, or is unsanitary or in soiled condition will be discarded. The signs shall include a City contact person and phone number where an individual can contact the City with any questions they may have pertaining to the notice on the sign. The signs will also include identification of a contact person(s) to connect any individuals experiencing homelessness to social services and available resources.  Street Outreach Visit: The Street Outreach Team will visit the site prior to cleanup to provide referrals and a final reminder that any personal property must be removed before the scheduled cleanup. Community Development will work with Our Daily Bread, Monsignor King Outreach Center, and Salvation Army to have an announcement of the cleanup location made at shelters and during meal services.  Contractor Clean-up: Parks and Recreation will have a contractor begin cleanup of the area on or about Mon., March 18. It is unknown how many days this process may take to complete. Inclement weather could cause delays in the cleanup of the property. The estimated cost of contractor clean-up is $3,000.

The Street Outreach Team will continue to monitor the site for future activity. Street Outreach is a valuable tool in the Housing Crisis Response System to ensure that people living on the street have access to assistance and be included on the community’s Housing Priority List (HPL) for housing placement.

ATTACHMENT(S): Photographs

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ATTACHMENT 1 - PHOTOGRAPHS FROM SITE VISITS

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Date: March 8, 2019 Report No. 2019-037

INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL

SUBJECT:

Quarterly Financial Report for the period ending December 31, 2018.

BACKGROUND:

Attached for your review is the Quarterly Financial Report for the period ending December 31, 2018. If you have any questions or need additional information, please let me know.

STAFF CONTACT:

Antonio Puente, Jr., Chief Financial Officer (940) 349-7283 [email protected]

1 About This Quarterly Financial Report

This report has been prepared by the City of Denton’s Finance Department. The Quarterly Financial Report is intended to provide our users (internal and external) with information regarding the City’s financial position and economic activity. This report includes information for the quarter ending December 31, 2018.

This report is presented in four sections.

1. The Executive Dashboard section contains a high level summary of the major operating funds using graphic illustrations and key economic indicators. Narrative disclosures are also included to highlight any significant changes or fluctuations.

2. The Financial Summary section reports the performance of the major operating funds of the City. In addition, the report provides an end of year projection and a comparison to the budget for major revenue sources and expenditure items.

3. The Revenue & Economic Analysis section provides additional analysis regarding key revenue sources and economic indicators.

4. The Quarterly Investment Report section provides a summary of the City’s investment portfolio, interest earnings and a brief market outlook.

2 The Quarterly Financial Report is intended to provide our users with timely and relevant information. Please provide us with any comments or suggestions you may have. If you would like additional information, feel free to contact me.

Antonio Puente, Jr. Chief Financial Officer 215 East McKinney Street Denton, TX 76201 940-349-8260

3 Section 1

City of Denton Quarterly Financial Report December 2018

Executive Dashboards

4 City of Denton, Texas General Fund Executive Dashboard FY 2018-19 FY 2018-19 ANNUAL ANNUAL FY 2018-19 Revenue & Expenses (in Millions) DESCRIPTION BUDGET 1 PROJECTION VARIANCE YTD Revenue YTD Expenses Beginning Fund Balance $45 as of 09/30/18 $ 31.09 $ 30.32 $40 RESOURCES: Ad Valorem Taxes 46.26 46.26 0% $35 Sales Tax 41.43 41.43 0% Franchise Fees 4.36 4.36 0% $30 Other Taxes 0.51 0.51 0% $25 Service Fees 8.23 8.23 0% Fines and Fees 3.72 3.72 0% $20 Licenses and Permits 3.86 3.86 0% Miscellaneous Revenue 2.17 2.17 0% $15 Transfers In 17.16 17.16 0% $10 Total Revenues 127.70 127.70 0% $5 Total Resources 158.79 158.02 EXP ENDITURES : $‐ Personal Service 87.17 87.17 0% Material and Su pplies 2.92 2.92 0% Maintenance and Re pairs 3.27 3.27 0% Insurance 1.44 1.44 0% Miscellaneous 1.15 1.15 0% Sales Tax Monthly Average by Quarter O perations 18.30 18.30 0% $3.5 Transfers Out 14.36 14.36 0% Fixed Assets 0.57 0.57 0% $3.0 Total Expenditures 129.18 129.18 0% Net Income (Loss) (1.48) (1.48) $2.5

Ending Fund Balance $ 29.61 $ 28.84 $2.0

$1.5

Key Trends $1.0

At this point in the fiscal year, revenues and expenditures are projected to meet budgeted levels. $0.5

1 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was $‐ estimated in the FY 2018‐19 budget process.

Note: All figures presented are in millions of dollars. 5 City of Denton, Texas Electric Fund Executive Dashboard FY 2018-19 FY 2018-19 ANNUAL ANNUAL FY 2018-19 DESCRIPTION BUDGET1 P RO J EC TIO NS VARIANCE Revenue & Expenses (in Millions) Beginning Working Capital $60 and Reserves as of 9/30/18 $ 62.95 $ 73.94 $50 RESOURCES: Rate Revenues 135.52 135.52 0% $40 Transmission Revenue 40.06 40.06 0% Other Revenues 3.75 3.75 0% $30 DEC Revenues 36.30 36.30 0% Total Revenues 215.63 215.63 0% $20 Total Resources 278.58 289.57 $10 EXPENDITURES: Purchased Power 67.19 67.19 0% $0 DEC Fuel 14.97 14.97 0% Oct‐18 Nov‐18 Dec‐18 Transmission of Power 12.50 12.50 0% Personnel Service 22.06 22.06 0% YTD Revenue YTD Expense Operation and Maintenance 27.32 27.32 0% Debt Service 69.30 40.68 -41% 2013 – 2018 Historical Quarterly GWH Sales Transfers Out 14.33 14.33 0% 600 Capital Outlay 16.02 16.02 0% Total Expenditures 243.69 215.07 -12% 500 Net Income (Loss) (28.06) 0.56 Ending Working Capital 400 and Reserves $ 34.89 $ 74.50 300 Key Trends 200 At this point in the fiscal year, revenues are projected to meet budgeted levels. Expenditures have been reduced by $28.6 Million to reflect no debt defeasance of the TMPA Scrubber debt in FY 2018‐19. 100

0 1Q 13 3Q 13 1Q 14 3Q 14 1Q 15 3Q 15 1Q16 3Q16 1Q17 3Q17 1Q18 3Q18 1Q19

Note: All figures presented are in millions of dollars. 1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2018‐19 budget process. 6 City of Denton, Texas Water Fund Executive Dashboard FY 2018-19 FY 2018-19 Revenue & Expenses (in Millions) ANNUAL ANNUAL FY 2018-19 $16 1 DESCRIPTION BUDGET PROJECTION VARIANCE $14 Beginning Working Capital and Reserves as of 09/30/18 2 $ 23.98 $ 25.95 $12 RESOURCES: $10 Water Sales 37.50 37.50 0% $8

Other Water Revenues 1.02 1.02 0% $6 Transfers In 1.49 1.49 0% Impact Fee Revenue 5.70 5.70 0% $4 To t a l R e ve n u e s 4 5 . 7 1 45.71 0% $2 Total Resources 69.69 71.66 $‐ Oct‐18 Nov‐18 Dec‐18 EXPENDITURES: YTD Revenue YTD Expenses Personal Service 8.86 8.86 0% Operations, Services 10.00 10.00 0% 2014‐2019 Historical Quarterly Gallons Sold (in Millions) Capital Outlay 15.28 15.28 0% Debt Service 12.66 12.66 0% 2,500 Transfers Out 3.39 3.39 0% Total Expenditures 50.19 50.19 0% 2,000 Net Income (Loss) (4.48) (4.48) Ending Working Capital 1,500 and Reserves $ 19.50 $ 21.47 Key Trends 1,000

At this point in the fiscal year, expenditures and revenues are projected to meet budgeted 500 levels.

0 1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 14 14 15 15 16 16 17 17 18 18 19 FY 2018‐19 budget process. 2The Beginning Working Capital balance excludes $10.88M of Impact Fee Reserves and $0.75 million for Development Plan Line Reserves. Note: All figures presented are in millions of dollars. 7 City of Denton, Texas Wastewater Fund Executive Dashboard FY 2018-19 FY 2018-19 ANNUAL ANNUAL FY 2018-19 DESCRIPTION BUDGET 1 PROJECTION VARIANCE Beginning Working Capital Revenue & Expenses (in Millions) $16 and Reserves as of 09/30/18 2 $ 19.19 $ 18.67 RESOURCES: $14 Wastewater Fees 23.64 23.64 0% $12 Other Wastewater Revenue 1.83 1.83 0% $10 Drainage Fees 4.73 4.73 0% $8 Transfer In 0.55 0.55 0% $6 Impact Fee Revenue 2.00 2.00 0% $4 Total Revenues 32.75 32.75 0% $2 Total Resources 51.94 51.42 $‐ EXPENDITURES: Oct‐18 Nov‐18 Dec‐18 Personal Service 8.61 8.61 0% YTD Revenue YTD Expenses Operations, Services 8.58 8.58 0% Capital Outlay 10.18 10.18 0% 2014‐2018 Historical Quarterly Gallons Billed (in Millions) Debt Service 6.81 6.81 0% 1,400 Transfer Out 3.29 3.29 0% Total Expenditures 37.47 37.47 0% 1,200 Net Income (Loss) (4.72) (4.72) 1,000 Ending Working Capital 800 and Reserves $ 14.47 $ 13.95 600

400

Key Trends 200

At this point in the fiscal year, expenditures and revenues are projected to meet 0 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q budgeted levels. 14 14 15 15 16 16 17 17 18 18 19

1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2018‐19 budget process. 2The Beginning Working Capital balance excludes $4.19 million of Impact Fee Reserves, $1.0 million for Drainage Reserves, and $0.54 million for Development Plan Line Reserves. Note: All figures presented are in millions of dollars.

8 City of Denton, Texas Drainage Operations Executive Dashboard FY 2018-19 FY 2018-19 ANNUAL ANNUAL FY 2018-19 DESCRIPTION BUDGET PROJECTION VARIANCE Revenue & Expenses (in Millions) REVENUES: Residential Drainage Fees $ 1.82 $ 1.82 0% $1.8 Nonresidential Drainage Fees 2.91 2.91 0% $1.6 Wastewater Resources 0.04 0.04 0% General Fund Transfer 0.32 0.32 0% $1.4

Total Revenues 5.09 5.09 0% $1.2

EXPENDITURES: $1.0 Personal Service 1.97 1.97 0% $0.8 Operations, Services 0.80 0.80 0% Capital Outlay 1.40 1.40 0% $0.6 Debt Service 0.48 0.48 0% $0.4 Transfer Out 0.44 0.44 0% To t a l Ex pe n di t u r e s 5 . 0 9 5.09 0% $0.2

Net Income (Loss) $ - $ - $‐ Oct‐18 Nov‐18 Dec‐18

YTD Revenue YTD Expenses

Key Trends At this point in the fiscal year, expenditures and revenues are projected to meet budgeted levels.

Note: All figures presented are in millions of dollars.

9 City of Denton, Texas Solid Waste Fund Executive Dashboard FY 2018-19 FY 2018-19 Residential Curbside Collection Tonnage ANNUAL ANNUAL FY2018-19 DESCRIPTION BUDGET 1 PROJECTIONS VARIANCE 7,000 Beginning Working Capital 6,000 and Reserves as of 09/30/182 $ 8.64 $ 10.92 5,000 RESOURCES: 4,000 Collection & Disposal 26.29 26.29 0% 3,000 Recycling 6.84 6.84 0% 2,000 Other Revenue 1.39 1.39 0% Total Revenues 34.52 34.52 0% 1,000 0 Total Resources 43.16 45.44 2017 2017 2017 2018 2018 2018 2018 2019 EXPENDITURES: Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Personal Service 11.21 11.21 0% Operations, Services 10.14 10.14 0% Refuse Tonnage Recycling Tonnages Capital Outlay 1.33 1.33 0% Debt Service 9.00 9.00 0% Commercial Refuse & Recycling (Front & Side Load) Transfer Out 3.19 3.19 0% Cubic Yards Serviced per Week Total Expenditures 34.87 34.87 0% 30,000 Net Income (Loss) (0.35) (0.35) 25,000 Ending Working Capital 20,000 and Reserves $ 8.29 $ 10.57 15,000 Key Trends 10,000 5,000 At this point in the fiscal year, all revenues and expenses are expected to meet budget projections. 0 2017 2017 2017 2018 2018 2018 2018 2019 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1

1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was Commercial Refuse Commercial Recycling estimated in the FY 2018‐19 budget process. 2The Beginning Working Capital and Reserves excludes $9.90 million of Landfill Closure/Post Closure reserves.

Note: All figures presented are in millions of dollars.

10 City of Denton, Texas Airport Fund Executive Dashboard FY 2018-19 FY 2018-19 ANNUAL ANNUAL FY 2018-19 DESCRIPTION BUDGET 1 PROJECTION VARIANCE Beginning Working Capital GAS WELL REVENUE and Reserves as of 09/30/18 $ 2.67 $ 2.93 (in millions of dollars by fiscal year) RESOURCES: $5.0 Airport Ground Leases 0.77 0.77 0% FBO Commissions 0.21 0.21 0% Miscellaneous 0.11 0.11 0% $4.0 Total Operating Revenues 1.09 1.09 0% EXPENDITURES: $3.0 Personal Service 0.55 0.55 0% Operations, Services 0.42 0.42 0% $2.0 Transfer Out 0.52 0.52 0% Total Operating Expenditures 1.49 1.49 0% $1.0 Net Operating Income (Loss) (0.40) (0.40) NON-OPERATING REVENUES: $0.0 Investment Income 0.02 0.02 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Gas Well Royalties 0.43 0.43 0% Total Non-Operating Revenues 0.45 0.45 0% NON-OPERATING EXPENDITURES: AIRPORT OPERATIONS BY QUARTER Transfer Out - Capital 0.25 0.25 0% (takeoff or landing by fiscal year) Total Non-Operating Expenditures 0.25 0.25 0% 60,000 Net Non-Operating Income (Loss) 0.20 0.20

Net Income (Loss) (0.20) (0.20) 50,000 Ending Working Capital and Reserves $ 2.47 $ 2.73

Key Trends 40,000 At this point in the fiscal year all revenues and expenses are expected to be at budgeted levels. 30,000

20,000

1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount Note: All financial amounts presented are in millions of dollars. which was estimated in the FY 2018‐19 budget process.

11 City of Denton, Texas Street Improvement Fund Executive Dashboard $3.0 FY 2018-19 FY 2018-19 Revenue & Expenses (in Millions) ANNUAL PRELIMINARY FY 2 018-19 DESCRIPTION BUDGET 1 ACTUALS VARIANCE $2.5 Beginning Working Capital and Reserves as of 09/30/2018$ 1.16 $ 1.62 $2.0 RESOURCES: Fr an ch i s e Fe e s 13.52 13.52 0%

Street Cuts 0.36 0.36 0% $1.5 In vestment Income 0.01 0.01 0% Transfers In 1.20 1.20 0% Total Revenues 15.09 15.09 0% $1.0 Total Resources 16.25 16.71

$0.5 EXPENDITURES: Oct-18 Nov-18 Dec-18 Personal Service 3.64 3.64 0% YTD Revenue YTD Expenses

Materials & Supplies 0.09 0.09 0% Tons of Asphalt Laid (in Thousands) Maintenance & Repairs 9.20 9.20 0% 5 Operations, Services 0.78 0.78 0% 4

Transfer Out 1.36 1.36 0% 3 To t a l Ex pe n di t u r e s 1 5 . 0 7 15.07 0% 2 Net Income (Loss) 0.02 0.02 1 Ending Fund Balance $ 1.18 $ 1.64 0 Qtr1

FY17-18 FY18-19 Lane Miles Surface Treatment Key Trends 60

Revenues and expenditures are projected to meet budgeted levels. 40 No surface treatments were completed in the 1st quarter of the prior year due to cold weather. 20 0 Qtr 1

FY 17-18 FY 18-19 1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2018-19 budget process. Note: All figures presented are in millions of dollars. 12 City of Denton, Texas Grants Dashboard

FY 2018-19 FY 2018-19 FY 2018‐19 Awards & Expenses (in Millions) GRANT ANNUAL FY 2018-19 $80.0 DESCRIPTION AMO UNT PROJECTIO N VARIANCE $60.0 2018-19 Budget Comm Development1 $ 3.64 $ 1.25 -66% $40.0 Public Safety 1.02 1.02 0% Transportation1 72.92 31.56 -57% $20.0 Other 0.28 0.28 0% Total Budget 77.86 34.11 -56% $‐ DEV OTHER COMM PUBLIC TRANS New Awards SAFETY Public Safety 0.04 0.04 0% Total New Awards 0.04 0.04 0% Awards Expenses

FY 2018‐19 Grants Awarded

Totals $ 77.90 $ 34.15 -56% OTHER COMM DEV PUBLIC 0.37% 4.67% SAFETY 1.36%

Key Trends

The following grants have been received in FY 2018-19: Federal Equitable Sharing: $1,000 Chapter 59 Asset Forfeitures: $9,929 Sexual Assault Examiners Reimbursement:$8,035 2017 UASI: $20,657

TRANS 93.60% 1 This grant amount will be spent over several years and the fiscal year 2018-19 projections are estimated expenditures for one year. Remaining grant amounts will be spent in future fiscal year.

Note: All figures presented are in millions of dollars.

13 Section 2

City of Denton Quarterly Financial Report December 2018

This report is designed for internal use and does not include all the funds and accounts included in the City of Denton’s operations. The information provided is unaudited; for a complete audited report, please refer to the City of Denton Comprehensive Annual Financial Report, available through the City’s Finance Department, City Secretary’s Office, or Denton Public Libraries.

FINANCIAL SUMMARY

14 City of Denton General Fund Schedule of Revenues - Budget vs Projection (Unaudited) For the Period Ended Decmeber 31, 2018

PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS REVENUE DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION

Current Year - Ad Valorem $ 21,575,628 $ 20,502,485 $ 20,244,896 $ 45,674,373 $ 45,674,373 0% Delinquent - Ad Valorem 41,034 62,345 50,118 296,882 296,882 0% Miscellaneous Penalties & Fees 50,553 47,413 33,249 288,727 288,727 0% Ad Valorem Taxes 21,667,215 20,612,243 20,328,263 46,259,982 46,259,982 0%

Sales Tax 9,700,411 10,364,681 9,902,458 41,425,582 41,425,582 0%

Franchise - Gas Utilities 11,298 - 11,593 298,753 298,753 0% Franchise - Private Electric Utilities - - - 105,949 105,949 0% Franchise - Cable - - - 410,188 410,188 0% Franchise - Telecom - - - 201,058 201,058 0% Franchise - Denton Municipal Utilities 845,451 616,472 816,782 3,346,901 3,346,901 0% Franchise Fees 856,749 616,472 828,375 4,362,849 4,362,849 0%

Other Taxes - - - 505,936 505,936 0%

Ambulance Service Fees 624,307 432,160 658,136 3,700,000 3,700,000 0% Fire Department Fees 48,989 54,503 49,520 218,000 218,000 0% Building Inspections Fees 126,084 133,798 125,414 589,172 589,172 0% Park Department Fees 102,485 209,821 99,906 2,003,991 2,003,991 0% Planning Department Fees 262,243 265,957 344,820 1,063,557 1,063,557 0% Reprographics Fees 74,747 92,613 62,653 370,160 370,160 0% Miscellaneous Service Fees 15,775 45,434 26,982 181,671 181,671 0% Service Fees 1,254,630 1,234,286 1,367,431 8,229,879 8,229,879 0%

Denton Municipal Fines 329,521 370,504 321,799 1,482,000 1,482,000 0% Parking Fines 65,170 65,000 73,935 260,000 260,000 0% Miscellaneous Fines and Fees 199,753 190,342 189,754 901,000 901,000 0% Court Administrative and Service Fees 231,570 240,000 217,620 1,080,000 1,080,000 0% Fines and Fees 826,014 865,846 803,108 3,723,000 3,723,000 0%

Demolition Permits 2,090 1,625 1,045 6,500 6,500 0% Building Permits 638,082 831,232 800,588 3,738,024 3,738,024 0% Certificate of Occupancy 13,015 20,000 17,290 80,000 80,000 0% Miscellaneous Licenses and Permits 3,210 9,752 3,012 39,000 39,000 0% Licenses and Permits 656,397 862,609 821,935 3,863,524 3,863,524 0%

Investment Income 92,272 115,000 143,787 460,000 460,000 0% Miscellaneous Revenues 73,753 149,612 163,553 1,710,198 1,710,198 0% Miscellaneous Resources 166,025 264,612 307,340 2,170,198 2,170,198 0%

ROI - Denton Municipal Utilities 1,781,588 2,010,017 1,830,748 8,427,209 8,427,209 0% Transfers 2,008,981 2,185,036 2,179,628 8,733,146 8,733,146 0% Transfers 3,790,569 4,195,053 4,010,376 17,160,355 17,160,355 0%

Total General Fund Revenues $ 38,918,010 $ 39,015,802 $ 38,369,286 $ 127,701,305 $ 127,701,305 0%

15 City of Denton General Fund Schedule of Expenditures - Budget vs Projection (Unaudited) For the Period Ended December 31, 2018

PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION

NEIGHBORHOOD SERVICES Building Inspections $ 677,286 $ 763,831 $ 724,582 $ 3,052,886 $ 3,052,886 0% Community Improvement Services 316,381 390,743 321,128 1,561,728 1,561,728 0% Libraries 1,609,959 1,492,099 1,635,787 5,963,678 5,963,678 0% Parks and Recreation 2,810,636 2,677,706 2,011,378 10,702,253 10,702,253 0% Planning 687,820 891,601 717,490 3,563,561 3,563,561 0% Gas Well Review 61,025 103,990 42,997 415,606 415,606 0% Social Services 123,488 168,367 115,046 672,928 672,928 0% 6,286,595 6,488,337 5,568,408 25,932,640 25,932,640 0%

PUBLIC SAFETY Animal Services 393,984 411,779 410,391 1,633,265 1,633,265 0% Fire 7,412,533 7,588,710 8,008,837 30,330,574 30,330,574 0% Municipal Court 327,449 318,642 300,420 1,273,547 1,273,547 0% Municipal Judge 100,114 112,125 117,983 448,161 448,161 0% Police 7,899,347 8,931,526 8,641,884 35,697,544 35,697,544 0% 16,133,427 17,362,782 17,479,515 69,383,091 69,383,091 0%

TRANSPORTATION Traffic Operations 325,273 523,554 439,501 2,092,526 2,092,526 0% Transportation Operations 101,030 99,649 75,251 398,291 398,291 0% Street Lighting 192,254 194,406 211,828 777,000 777,000 0% 618,557 817,609 726,580 3,267,817 3,267,817 0%

ADMINISTRATIVE & COMMUNITY SERVICES Cable Television 76,138 84,709 82,487 338,597 338,597 0% City Manager's Office 683,528 531,973 511,349 2,126,205 2,126,205 0% Economic Development 333,147 1,488,990 317,638 5,951,194 5,951,194 0% Facilities Management 889,407 1,347,823 1,107,109 5,386,980 5,386,980 0% Finance 745,870 905,844 839,162 3,620,494 3,620,494 0% Human Resources 475,940 457,235 493,037 1,827,469 1,827,469 0% Internal Audit 54,810 137,335 74,970 548,905 548,905 0% Legal Administration 504,011 676,426 534,041 2,703,529 2,703,529 0% Public Communications Office 117,778 339,321 281,460 1,356,209 1,356,209 0% Reprographics 88,114 91,439 48,102 365,458 365,458 0% Non-Departmental 1,363,843 1,592,098 2,443,471 6,375,848 6,375,848 0% 5,332,586 7,653,193 6,732,826 30,600,888 30,600,888 0% TOTAL EXPENDITURES $ 28,371,165 $ 32,321,921 $ 30,507,329 $ 129,184,436 $ 129,184,436 0%

16 City of Denton Electric Fund Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited) For the Period Ended December 31, 2018

PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION Beginning Working Capital and Reserves as of 9/30/18 $ 62,950,654 $ 73,942,033 REVENUES: Rate Revenues $ 33,285,116 $ 31,097,272 $ 34,473,793 135,522,850 135,522,850 0% Transmission Revenues 3,140,937 4,976,526 6,444,844 40,055,256 40,055,256 0% Other Revenues 2,167,681 941,296 1,331,232 3,750,515 3,750,515 0% DEC Revenues - 7,828,449 4,061,861 36,304,634 36,304,634 0% Total Revenues 38,593,733 44,843,543 46,311,730 215,633,255 215,633,255 0%

EXPENDITURES: Purchased Power 17,701,759 18,847,914 16,334,143 67,185,014 67,185,014 0% DEC Fuel - 4,241,051 1,678,366 14,967,553 14,967,553 0% Transmission of Power 728,374 1,317,886 1,267,236 12,500,000 12,500,000 0% Personnel Services 4,290,392 5,519,476 4,558,341 22,058,231 22,058,231 0% Materials and Supplies 114,027 151,303 83,178 1,010,795 1,010,795 0% Maintenance and Repair 148,561 315,167 94,057 1,771,604 1,771,604 0% Insurance 64,983 461,817 68,015 705,178 705,178 0% Return on Investment Return 1,233,960 on Investment 1,372,613 1,334,912 6,204,970 6,204,970 0% Franchise Fee Franchise 1,760,373 Fee 1,959,254 1,909,380 8,864,243 8,864,243 0% Miscellaneous 237,356 399,526 122,289 814,132 814,132 0% Operations 917,808 1,841,169 1,063,588 7,967,345 7,967,345 0% Debt Service 15,690,179 17,129,878 17,129,878 69,303,309 40,683,309 -41% Interfund Transfers 3,089,449 3,581,497 3,579,625 14,325,987 14,325,987 0% Capital Outlay - - - 16,016,335 16,016,335 0% Total Expenditures 45,977,221 57,138,551 49,223,048 243,694,696 215,074,696 -12%

Net Income (Loss) $ (7,383,488) $ (12,295,008) $ (2,911,318) (28,061,441) 558,559

Ending Working Capital and Reserves $ 34,889,213 $ 74,500,592

17 City of Denton Water Fund Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited) For the Period Ended December 31, 2018

PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS 2 DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION Beginning Working Capital 1 and Reserves as of 09/30/18 $ 23,982,828 $ 25,947,230 REVENUES: Water Sales Residential $ 4,503,572 $ 4,621,410 $ 3,675,360 19,496,211 19,496,211 0% Water Sales Commercial 4,401,205 4,537,021 3,884,314 16,841,145 16,841,145 0% Water for Resale 1,222,766 328,757 121,861 1,168,296 1,168,296 0% Other Water 317,734 184,087 288,899 767,349 767,349 0% Transfers In 1,486,820 371,941 372,513 1,487,762 1,487,762 0% Investment Income 63,153 62,750 104,535 251,000 251,000 0% Impact Fee Revenue 939,603 1,425,000 1,426,140 5,700,000 5,700,000 0% Total Use ofRevenues Reserves 12,934,853 - 11,530,966 - 9,873,622 - 45,711,763 - 45,711,763 0%

EXPENDITURES: Personal Service 2,558,827 1,920,310 2,055,010 8,855,034 8,855,034 0% Purchased Power 309,963 393,641 262,589 1,431,895 1,431,895 0% Materials and Supplies 292,667 319,552 234,804 1,408,230 1,408,230 0% Maintenance and Repairs 256,357 259,340 271,825 1,594,203 1,594,203 0% Insurance 55,620 55,858 55,858 223,433 223,433 0% Miscellaneous 80,676 111,852 103,803 411,219 411,219 0% Operations, Services 420,502 448,809 521,382 1,693,620 1,693,620 0% Capital Outlay 2,197,981 2,460,001 1,720,155 15,279,508 15,279,508 0% Return on Investment 325,216 356,020 276,939 1,339,555 1,339,555 0% Franchise Fee 464,594 504,703 395,628 1,898,986 1,898,986 0% Debt Service 6,497,330 6,662,950 6,662,950 12,662,613 12,662,613 0% Transfers Out 870,659 847,686 880,649 3,390,738 3,390,738 0% Total Expenditures 14,330,782 14,340,722 13,442,062 50,192,034 50,192,034 0%

Net Income (Loss) $ (1,395,929) $ (2,809,756) $ (3,568,440) (4,480,271) (4,480,271)

Ending Working Capital and Reserves $ 19,502,557 $ 21,466,959

1 The Beginning Working Capital balance excludes $10,884,298 of Impact Fee Reserves and $750,000 for Development Plan Line Reserves.

2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2018-19 budget process.

18 City of Denton Wastewater Fund Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited) For the Period Ended December 31, 2018

PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET2 PROJECTION PROJECTION Beginning Working Capital 1 and Reserves as of 09/30/18 $ 19,188,011 $ 18,669,754 REVENUES: Residential Fees $ 2,902,097 $ 2,661,062 $ 2,974,289 10,657,173 10,657,173 0% Commercial Fees 3,150,476 3,143,819 2,967,486 12,218,689 12,218,689 0% Effluent Irrigation Fees 27,709 14,781 18,582 68,576 68,576 0% Wholesale Fees 138,085 162,559 193,766 694,234 694,234 0% Other Wastewater Fees 277,695 379,104 241,891 1,624,678 1,624,678 0% Drainage Fees 1,160,122 1,184,202 1,196,332 4,727,006 4,727,006 0% Transfer In 164,757 137,949 137,949 551,795 551,795 0% Investment Income 51,740 52,000 76,199 208,000 208,000 0% Impact Fee Reserves 500,400 500,000 500,400 2,000,000 2,000,000 0% Total Revenues 8,373,081 8,235,476 8,306,894 32,750,151 32,750,151 0%

EXPENDITURES: Personal Service 1,941,627 1,792,391 2,049,466 8,607,813 8,607,813 0% Purchased Power 252,338 290,831 275,767 1,221,000 1,221,000 0% Materials and Supplies 196,588 164,876 211,970 1,254,075 1,254,075 0% Maintenance and Repairs 265,509 274,305 265,008 1,433,519 1,433,519 0% Insurance 45,123 58,005 58,005 232,020 232,020 0% Miscellaneous 35,671 48,371 58,196 80,218 80,218 0% Operations, Services 420,115 656,990 572,774 2,212,776 2,212,776 0% Capital Outlay 1,417,699 4,118,827 4,842,598 10,184,524 10,184,524 0% Return on Investment 222,411 221,247 218,897 882,684 882,684 0% Franchise Fee 317,730 316,068 312,709 1,260,978 1,260,978 0% Debt Service 3,768,607 3,649,709 3,649,709 6,808,831 6,808,831 0% Transfers Out 824,855 823,204 888,869 3,292,816 3,292,816 0% Total Expenditures 9,708,273 12,414,824 13,403,968 37,471,254 37,471,254 0% Net Income (Loss) $ (1,335,192) $ (4,179,348) $ (5,097,074) (4,721,103) (4,721,103)

Ending Working Capital and Reserves $ 14,466,908 $ 13,948,651

1 The Beginning Working Capital balance excludes $4,189,562 of Impact Fee Reserves, $1,000,000 for Drainage Reserves, and $535,000 for Development Plan Line Reserves. 2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2018-19 budget process.

19 City of Denton Drainage Operations Schedule of Revenues and Expenditures - Budget vs Projections (Unaudited) For the Period Ended December 31, 2018

PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION REVENUES: Residential Drainage Fees $ 438,139 $ 449,825 $ 455,010 $ 1,820,000 $ 1,820,000 0% Nonresidential Drainage Fees 721,983 734,285 741,323 2,907,006 2,907,006 0% Wastewater Resources 10,950 10,950 - 43,800 43,800 0% General Fund Transfer 106,007 79,199 79,199 316,795 316,795 0% Total Revenues 1,277,079 1,274,259 1,275,532 5,087,601 5,087,601 0% EXPENDITURES: Personal Service 401,425 407,257 439,499 1,968,225 1,968,225 0% Materials and Supplies 9,466 17,497 8,176 76,075 76,075 0% Maintenance and Repairs 21,947 30,172 50,500 123,300 123,300 0% Insurance 6,365 8,942 8,942 35,767 35,767 0% Miscellaneous 5,887 6,639 1,720 17,200 17,200 0% Operations, Services 109,987 92,786 111,558 546,870 546,870 0% Capital Outlay 200,919 342,248 278,489 1,403,688 1,403,688 0% Debt Service 370,485 258,957 258,957 477,433 477,433 0% Transfer Out 150,598 109,761 117,691 439,043 439,043 0% Total Expenditures 1,277,079 1,274,259 1,275,532 5,087,601 5,087,601 0% Net Income (Loss) $ - $ - $ - $ - $ -

20 City of Denton Solid Waste Fund Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited) For the Period Ended December 31, 2018

PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET2 PROJECTION PROJECTION Beginning Working Capital 1 and Reserves as of 09/30/18 $ 8,639,290 $ 10,918,907 REVENUES: Refuse Fees - Residential $ 1,563,232 $ 1,401,979 $ 1,395,608 5,788,754 5,788,754 0% Refuse Fees - Commercial 3,507,897 3,450,965 3,604,996 14,533,461 14,533,461 0% Residential Recycling 1,424,248 1,332,496 1,286,053 5,337,119 5,337,119 0% Commercial Recycling 322,645 376,599 345,919 1,505,187 1,505,187 0% Landfill Gate and Material Sales 1,423,234 1,471,139 1,520,362 5,967,459 5,967,459 0% Recycled Material Sales 16,194 15,159 16,834 60,590 60,590 0% Asset Sales and Interest Income 51,979 114,897 42,549 459,217 459,217 0% Other Revenue 67,276 217,989 194,176 871,268 871,268 0% Total Revenues 8,376,705 8,381,223 8,406,497 34,523,055 34,523,055 0%

EXPENDITURES: Personal Service 2,715,698 2,804,211 2,692,434 11,207,879 11,207,879 0% Materials and Supplies 61,685 107,530 57,827 429,792 429,792 0% Maintenance and Repairs 66,705 137,486 37,986 549,506 549,506 0% Insurance 58,408 68,292 67,376 272,954 272,954 0% Miscellaneous 33,047 29,379 61,217 117,419 117,419 0% Operations, Services 1,184,777 1,478,592 1,452,907 5,909,622 5,909,622 0% Capital Outlay - 332,942 21,600 1,330,709 1,330,709 0% Debt Service 5,108,893 4,870,776 4,870,389 8,996,579 8,996,579 0% Franchise Fee 418,743 423,912 412,376 1,694,293 1,694,293 0% Transfers for Landfill Closure 94,689 292,572 292,338 1,169,349 1,169,349 0% Admin Transfers Out 736,497 799,033 924,076 3,193,559 3,193,559 0% Total Expenditures 10,479,142 11,344,725 10,890,526 34,871,661 34,871,661 0%

Net Income (Loss) $ (2,102,437) $ (2,963,502) $ (2,484,029) (348,606) (348,606)

Ending Working Capital and Reserves $ 8,290,684 $ 10,570,301

1 The Beginning Working Capital Reserve excludes $9,896,590 Landfill Closure/Post Closure Reserves.

2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2018-19 budget process.

21 City of Denton Airport Fund Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited) For the Period Ended December 31, 2018

PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET1 PROJECTION PROJECTION Beginning Working Capital and Reserves as of 09/30/18 $ 2,668,447 $ 2,930,368

OPERATING REVENUES: Airport Ground Leases $ 167,014 $ 189,516 $ 182,477 767,526 767,526 0% FBO Commissions 25,170 52,317 20,351 209,100 209,100 0% Miscellaneous 11,197 30,882 10,999 113,364 113,364 0% Total Operating Revenues 203,381 272,715 213,827 1,089,990 1,089,990 0%

OPERATING EXPENDITURES: Personal Service 121,413 136,416 129,205 545,217 545,217 0% Materials and Supplies 3,243 9,415 1,638 37,640 37,640 0% Maintenance and Repairs 4,913 25,896 1,077 103,500 103,500 0% Insurance 5,456 10,957 7,823 43,792 43,792 0% Miscellaneous 156 24 - 100 100 0% Operations 22,818 59,856 36,421 239,235 239,235 0% Transfers Out - Operating 129,960 130,036 130,386 519,730 519,730 0% Total Operating Expenses 287,959 372,600 306,550 1,489,214 1,489,214 0%

Operating (Loss) (84,578) (99,885) (92,723) (399,224) (399,224)

NON-OPERATING REVENUES: Investment Income 13,747 5,571 22,957 22,263 22,263 0% Gas Well Royalties 38,651 107,950 24,362 431,456 431,456 0% Total Non-Operating Revenues 52,398 113,521 47,319 453,719 453,719 0%

NON-OPERATING EXPENDITURES: Transfers Out - Capital - 62,550 - 250,000 250,000 0% Total Non-Operating Expenses - 62,550 - 250,000 250,000 0%

Non-Operating Income (Loss) 52,398 50,971 47,319 203,719 203,719

Net Income (Loss) $ (32,180) $ (48,914) $ (45,404) (195,505) (195,505)

Ending Working Capital $ 2,472,942 $ 2,734,863

1 Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2018-19 budget process.

22 City of Denton Street Improvement Fund Schedule of Expenditures - Budget vs Projection (Unaudited) For the Period Ended December 31, 2018

PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS 1 DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION Beginning Fund Balance as of 9/30/2018 $ 1,158,668 $ 1,623,427 RESOURCES: Franchise Fees $ 2,144,267 $ 3,382,682 $ 2,257,138 13,519,911 13,519,911 0% Street Cuts 75,252 91,107 50,496 364,140 364,140 0% Investment Income - 2,502 3,859 10,000 10,000 0% Transfers In 258,645 299,340 258,645 1,196,404 1,196,404 0% Total Resources 2,478,164 3,775,631 2,570,138 15,090,455 15,090,455 0% EXPENDITURES: Personal Service 860,521 911,038 817,062 3,641,249 3,641,249 0% Materials and Supplies 24,210 21,805 11,267 87,150 87,150 0% Maintenance and Repairs 1,427,229 2,381,269 1,132,404 9,195,194 9,195,194 0% Insurance 12,923 18,198 18,182 72,727 72,727 0% Miscellaneous 4,292 1,251 3,632 5,000 5,000 0% Operations, Services 133,274 175,213 157,283 700,302 700,302 0% Transfer Out 753,758 261,239 402,513 1,366,383 1,366,383 0% Total Expenditures 3,216,207 3,770,013 2,542,343 15,068,005 15,068,005 0% Net Income (Loss) $ (738,043) $ 5,618 $ 27,795 22,450 22,450

Ending Fund Balance $ 1,181,118 $ 1,645,877

1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2018-19 budget process.

23 City of Denton Grants Schedule of Expenditures - Budget vs Projection (Unaudited) For the Period Ended December 31, 2018

EXPENDITURES CURRENT ANNUAL ANNUAL BUDGET VS GRANT DESCRIPTION AS OF 9/30/20182 Y-T-D BUDGET PROJECTION PROJECTION FY 2017-18 Budget US Dept of HUD - Community Development Block Grant(CDBG) $ 3,511,216 $ 223,814 $ 2,146,395 $ 700,000 -67% US Dept of HUD - HOME Investment Partnership Program 3,320,362 58,886 1,279,659 500,000 -61%

Emergency Solutions Grant (ESG) 506,879 43,581 210,994 46,000 -78% 1 Community Development 7,338,457 326,281 3,637,048 1,246,000 -66%

TxDot STEP Comprehensive Grant - 14,401 88,537 88,537 0% Domestic and Sexual Violence Initiative IACP Grant 204,202 37,927 225,000 225,000 0% 2018 UASI - - 125,956 125,956 0% Emergency Management Performance Grant - - 43,956 43,956 0% Staffing for Adequate Fire & Emergency Response (SAFER) Grant 225,381 124,434 419,971 419,971 0% 2018 SHSP SWAT Equipment Enhancement - - 24,000 24,000 0% BG-Rifle-Resistant Body Armor Grant Program (BAGP) - - 91,692 91,692 0% Public Safety 429,583 176,762 1,019,112 1,019,112 0%

Airport Maintenance (RAMP) Grant - - 50,000 50,000 0% TxDot-RTR-Mayhill Rd-IH35 E to US 380 28,569,138 2,485,798 21,115,515 13,500,000 -36% TxDot-RTR-Bonnie Brae Rd-IH35 E to US 377 13,770,118 730,878 26,938,818 8,300,000 -69% TxDot-IH35E at Loop 288/Lillian Miller Pkwy - - 53,865 53,865 0% TxDot-RTR-McKinney (Formerly FM426) 1,336,448 29,267 17,598,079 7,300,000 -59% TxDot-RTR-Hickory Creek FM2181-FM2499 79,163 47,327 2,396,190 600,000 -75% TxDot-RTR-North Texas Boulevard Roundabout 15,393 8,298 1,986,592 380,000 -81% TxDot-RTR-ITS COMM Trunk Line 438,382 155,885 1,277,294 1,176,170 -8% Bicycle & Pedestrian Projects Grant - - 1,500,000 195,000 -87% 1 Transportation 44,208,642 3,457,453 72,916,353 31,555,035 -57%

Interlibrary Loan Program (ILL) - - 25,000 25,000 0% TIFMAS Training Tuition Grant - - 10,500 10,500 0% Miscellaneous New Grants - - 250,000 250,000 0% Other - - 285,500 285,500 0%

Total FY 2018-19 Budget 51,976,682 3,960,496 77,858,013 34,105,647 -56%

New Awards

Federal Equitable Sharing - 1,000 1,000 1,000 0% Chapter 59 Asset Forfeitures - 9,929 9,929 9,929 0% Sexual Assault Nurse Examiners (SANE) Reimbursement - 8,035 8,035 8,035 0% 2017 UASI - 20,657 20,657 20,657 0% Public Safety - 39,621 39,621 39,621 0%

Total New Awards - 39,621 39,621 39,621 0%

TOTALS $ 51,976,682 $ 4,000,117 $ 77,897,634 $ 34,145,268 -56%

1 This grant amount will be spent over several years and the fiscal year 2018-19 projections are just estimated expenditure in the one year. Remaining grant amounts will be spent in future fiscal year. 2 A portion of the grants presented cover multiple years.

24

Section 3

City of Denton Quarterly Financial Report December 2018

REVENUE & ECONOMIC

ANALYSIS

25 National Economic Trends Period Ending December 31, 2018

Gross Domestic Product (GDP) The record 35 day government shutdown meant a number of key economic data releases were postponed; fourth quarter GDP falls into that category. In fact, since many of the components the Commerce Department uses in its GDP calculation come from government sources, it may be a while before a reliable number is released. For now, it appears the U.S. economy has continued to slow. Early estimates show annualized GDP well below +3.0% for the final quarter of 2018. This follows tax cut-fueled second quarter growth of +4.2%, and revised third quarter growth of +3.4%. First quarter 2019 growth (although just a guess at this point) is generally expected to fall below -2.0% due to the ongoing trade war and the government shutdown.

Nonfarm Payrolls December nonfarm payrolls increased by +312k, topping the +184k median Bloomberg forecast, while prior month revisions boosted November job gains up from +155k to +176k. The unemployment rate climbed from a 49- year low of 3.7% (where it had stood for three months) to 3.9% as +419k reenergized Americans reentered the workforce. It isn’t unusual for unemployment to rise in a healthy job market. The tight labor market managed to generate a bit of wage pressure in December as average hourly earnings rose +3.2% year-over-year, the fastest pace since 2009. If hourly earnings (as the White House economic advisors have predicted) reach 4% in 2019, rate hikes could be back on the table. While many segments of the economy are showing signs of stress, the labor market, so far is not.

26 Inflation Falling energy prices drove overall inflation sharply lower in the final two months of the year. The consumer price index (CPI) declined -0.1% in December, dragging the year-over-year pace down from +2.2% to +1.9% (it was +2.5% in October and as high as +2.9% in July). December core CPI, which excludes food and energy prices, rose +0.2%, holding the annual pace steady at +2.2%, a rate that has persisted for 4 of the last 5 months. The Fed’s preferred inflation measure, core PCE, remained below the Fed’s +2.0% target in November with a +1.877% reading. The most recent Bloomberg economist survey indicated CPI should continue to decline in Q1, which should effectively sideline the Fed.

Retail Sales The retail sales report for December was also postponed due to the shutdown, and as of this writing has not be released. It does appear that holiday spending was brisk. Lower gasoline prices apparently provided a boost to shoppers. MasterCard reported a +5.1% year-over-year increase in holiday sales while UPS experienced a +5% rise in package shipments. Analysts have already concluded that it was the best holiday reason for retailers in six years, but the outlook is less promising. The Conference Board's Consumer Confidence Index dropped to a five month-low of 128.1 in December. The 8.3-point drop was the largest single-month decline since July 2015 and was primarily caused by crumbling confidence about the future.

27 Texas Home Sales Texas home sales fell -17.1% in the fourth quarter, and -2.8% on a year- over-year basis as even the hottest of housing markets cooled in response to rising prices and higher mortgage rates. The average Texas home price in December was $286.8k, a +2.4% increase over the previous year, but below the record high of $298.2 set three months earlier.

In Denton County, unit home sales fell by -20.6% during in the fourth quarter, and -11.8% over the same period a year ago. The average home price in December was $347.4k, a surprising decline of -2.5% year-over- year, and well below the record high of $367.6 set in July. County home listings in December totaled 3,195, approximately +26% higher than a year ago. The available inventory (in months) was 2.6 months at quarter end. Although this was higher than last year, it’s still quite lean from a historical perspective.

The paper was prepared by Hilltop Securities Asset Management, is intended for educational and informational purposes only and does not constitute legal or investment advice, nor is it an offer or a solicitation of an offer to buy or sell any investment or other specific product. Information provided in this paper was obtained from sources that are believed to be reliable; however, it is not guaranteed to be correct, complete, or current, and is not intended to imply or establish standards of care applicable to any attorney or advisor in any particular circumstances. The statements within constitute the views of Hilltop Securities Asset Management as of the date of the report and may differ from the views of other divisions/departments of Hilltop Securities. In addition, the views are subject to change without notice. This paper represents historical information only and is not an indication of future performance.

28 Fuel Prices Outlook Cautious

Description: Quarterly fuel trends for the United States and Texas.

Analysis: Fuel prices are a major commodity source in the economy. Studies have shown a positive effect on disposable income levels when fuel prices decrease. It is estimated that for every penny decrease in the price of fuel, $1.3 billion is available to the consumer for disposable income. Therefore, the price of fuel is likely to be a key predictor of sales tax collections. Fuel prices showed an 8.0% decrease from the prior quarter at the national level and a 10.2% decrease at the state level. Staff has rated this outlook as Cautious.

Fuel Prices

Sales Tax Texas Fuel Prices US Fuel Prices

$3.50 $12

$3.00 $10

$2.50 $8

$2.00

$6 Dollars Millions $1.50

$4 $1.00

$2 $0.50

$0.00 $0 1Q '15 3Q '15 1Q '16 3Q '16 1Q '17 3Q '17 1Q '18 3Q '18 1Q '19

Source: U.S. Department of Energy

29 Municipal Cost Index Outlook Negative

Description: The Municipal Cost Index was developed to show the rate of inflation for the cost of goods purchased frequently by local governments. The MCI draws on the monthly statistical data collected by the U.S. Departments of Commerce and Labor as well as independently compiled data to project a composite cost picture for the municipal budget officer or operating department manager. Costs of labor, materials and contract services are all factored into the composite MCI. Major indicators of these items used for the MCI include the Consumer Price Index, the Wholesale Price Index for Industrial Commodities (now known as the Producer Price Index) and the construction cost indexes published by the U.S. Department of Commerce, respectively.

Analysis: The Municipal Cost Index (MCI) pulls a variety of prices for frequently purchased commodities for local governments. The cost for labor, materials and contract services are factored for the MCI. An increase in MCI means the overall price mix for these types of commodities will cost local governments more to do routine business. The 1st Quarter of 2018-19 shows an increase of 0.2% over the prior quarter and an increase of 6.8% over the 1st Quarter of 2017-18. Staff has rated this indicator as Negative.

Municipal Cost Index 255.00

250.00

245.00

240.00

235.00

230.00

225.00 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 1Q '19

Source: American City and County Magazine

Note: The Municipal Cost Index is designed to show the effects of inflation on the cost of providing municipal services. State and local government officials rely on American City & County's Municipal Cost Index to stay on top of price trends, help control price increases for commodities, make informed government contract decisions and intelligent budget planning. Since 1978, readers have loyally referred to the Municipal Cost Index to determine the cost of inflation and, hence, the rising cost of doing business as a local government.

30 Hotel Occupancy Tax Analysis Outlook Positive

Description: Tax imposed on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays for the use of a room that is in a hotel. A hotel includes: any building in which the public may obtain sleeping accomodations; motels; a tourist home, house or court; lodginghouse; inn; roominghouse; or bed and breakfast. The tax rate levied by the City is 7% of the price paid for a room. The State also levies a tax equal to 6%.

Analysis: While the use of this revenue source is restricted by state law, it is an essential revenue source for various tourist related activities within the community and an important indicator of local economic activity. Hotel Occupancy tax revenue through the 1st Quarter of FY 2019 was 2.04% less than budget but 15.51% more than prior year's actual. Staff has rated the outlook for this economic indicator as Positive.

1st Quarter FY 2018-19 Actual Y-T-D

Occupancy Tax Revenue: $ 688,176 $ 688,176

FY 2018-19 Budget $ 702,383 $ 702,383

Over (Under) Budget $ (14,207) $ (14,207)

FISCAL YEAR FORECAST Hotel Occupancy Tax Budget: $ 3,207,406 End of Year Projection: $ 3,207,406 Variance: $ -

Hotel Occupancy Tax Collections

$900,000

$800,000

$700,000

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19

31 Sales and Use Tax Analysis Outlook Cautious

Description: Tax imposed on all retail sales, leases, and rentals of most goods, as well as taxable services. The total tax rate levied within the City is 8.25% (State, 6.25%; City, 1.5%; DCTA, 0.5%). Analysis: As the second largest revenue source to the City's General Fund, sales and use taxes are essential to the delivery of services to the community. Sales tax revenues through the 1st quarter of FY 2019 compared to revenues from the prior year 1st quarter shows a 2.08% increase, and compared to the budget it is 8.35% below. Staff has rated this indicator as Cautious. 1st Quarter FY 2018‐19 Actual Y‐T‐D Revenue: Gross Sales Tax Municipal Operations $ 426,030 $ 426,030 General Retail & Others 9,859,712 9,859,712 Comptroller Fees (193,578) (193,578) Amount Retained (189,706) (189,706) Total Revenue $ 9,902,458 $9,902,458 Expenses: Economic Incentives Denton Crossing1 $ 149,253 $ 149,253 Unicorn Lake2 20,687 20,687 Rayzor Ranch3 518,662 518,662 Golden Triangle4 30,438 30,438 O'Reilly's5 402,264 402,264 Total Expenses $ 1,121,304 $ 1,121,304 Net Total 8,781,154 8,781,154 FY 2018‐19 Budget 9,571,379 9,571,379 Over(Under) Budget $ (790,225) $ (790,225) Sales Tax Budget: $ 41,425,582 Year End Projection: 41,425,582 Variance to Original Budget: $ ‐ Economic Development Expenditure Budget: $ 3,854,014 Year End Projection: 3,854,014 Variance to Original Budget: $ ‐

Gross Sales Tax Collections (Millions) $12.0

$10.0

$8.0

$6.0

$4.0

$2.0

$0.0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr FY 2014‐15 Actual FY 2015‐16 Actual FY 2016‐17 Actual FY 2017‐18 Actual FY 2018‐19 Actual

* Economic Incentive actuals are through November 2018 with budget amount for December. 1. Incentive is 33% of sales taxes. For the 1st quarter sales tax equaled $452,282. 2. Incentive is 33% of sales taxes. For the 1st quarter sales tax equaled $62,688. 3. Incentive is 50% of sales taxes. For the 1st quarter sales tax equaled $1,037,324 4. Incentive is 50% of sales taxes. For the 1st quarter sales tax equaled $60,876. 5. Incentive is 100% of sales taxes. For the 1st quarter sales tax equaled $402,264.

32 Certificates of Occupancy Outlook Cautious

Description: Certificates of Occupancy (CO) are permits issued in compliance with the 2009 International Building Code (IBC) and applicable City ordinances. The IBC states, "that no building shall be used or occupied, and no change in the existing occupancy classification of a building or structure or portion thereof shall be made, until the building official has issued a certificate of occupancy." Certificates of Occupancy ensure that applicable building, fire and consumer health codes are met.

Analysis: Certificates of Occupancy are an economic indicator that provides a framework for the overall condition of the local economy. Certificates of Occupancy increased 1.71% from the prior quarter and decreased 9.1% from the 1st Quarter of 2018. Staff has rated the outlook for this revenue indicator as Cautious.

Certificates of Occupancy

80.0

70.0

60.0

50.0

40.0

30.0

20.0

10.0

0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q '14 '14 '14 '14 '15 '15 '15 '15 '16 '16 '16 '16 '17 '17 '17 '17 '18 '18 '18 '18 '19

Source: City of Denton's Development Services Department.

33 Residential Permits Outlook Cautious

Description: Residential Permits are issued in compliance with the 2009 International Residential Code (IRC) and applicable City ordinances. The data presented in this analysis only include new permits issued and not remodels/alterations.

Analysis: Residential Permits are an economic indicator that provides a framework for the overall condition of the local economy. In particular, residential permits have a direct correlation with building inspection fees and appraised values. Residential permits decreased 34.9% from the prior quarter and decreased 4.0% from the 1st Quarter of 2018. Staff has rated the outlook for this revenue indicator as Cautious

Residential Permits 350.0

300.0

250.0

200.0

150.0

100.0

50.0

0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q '14 '14 '14 '14 '15 '15 '15 '15 '16 '16 '16 '16 '17 '17 '17 '17 '18 '18 '18 '18 '19

Source: City of Denton's Development Services Department.

34 Texas Leading Indicators Index Outlook Negative

Description: The Texas Leading Indicators Index is a single weighted summary statistic that sheds light on the future of the state's economy. The index is designed to signal movements and changes in the state's rate of growth. The index includes the following leading indicators: Texas Value of the Dollar, U.S. Leading Index, Real Oil Prices, Well Permits, Initial Claims for Unemployment Insurance, Texas Stock Index, Help-Wanted Advertising, and Average Weekly Hours Worked in Manufacturing.

Analysis: Texas Leading Indicators provide a framework for the overall condition of the local economy. Data for this quarter shows an increase in the state's rate of growth. The index decreased 1.12% from the prior quarter and decreased 0.31% from the 1st Quarter of 2017-18. Staff has rated this indicator as Negative

Texas Leading Indicators Index 140.0

135.0

130.0

125.0

120.0

115.0

110.0

105.0

100.0 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q '08 '09 '09 '10 '10 '11 '11 '12 '12 '13 '13 '14 '14 '15 '15 '16 '16 '17 '17 '18 '18

Source: Federal Reserve Bank of Dallas

35 Unemployment Rate Index Outlook Positive

Description: Unemployment is defined as the number or proportion of people looking for work at the prevailing wage who are unable to find employment.

Analysis: Unemployment is an economic indicator that provides a framework for the overall condition of the national, state and local economies. The unemployment rate for the City of Denton is at 2.83% for the 1st Quarter. The unemployment rates for most of the other reported sectors were either down slightly or flat from the prior quarter. As a result of the downward trend since the high of the 2nd Quarter of 2012, staff has rated the outlook for this revenue indicator as Positive.

Unemployment Rate Index 18.0

16.0

14.0

12.0

10.0

8.0

6.0

4.0

2.0 1Q '13 3Q '13 1Q '14 3Q '14 1Q '15 3Q '15 1Q '16 3Q '16 1Q '17 3Q '17 1Q '18 3Q '18 1Q '19

Dallas-Plano-Irving MD Denton Texas U6 Unemployment United States

Source: Federal Reserve Bank of Dallas, U.S. Bureau of Labor Statistics, and Texas Workforce Commission

Note: U6 unemployment includes marginally attached workers who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past. Discouraged workers, a subset of the marginally attached, have given a job-market related reason for not looking currently for a job. Persons employed part-time for economic reasons are those who want and are available for full-time work but have had to settle for a part-time schedule.

36

Section 4

City of Denton Quarterly Financial Report December 2018

INVESTMENT REPORT

37 CITY OF DENTON : QUARTERLY INVESTMENT REPORT

1st Fiscal Quarter 2019- December 31, 2018 Page 1

INVESTMENT POOL Policy Par Market Book Unrealized Max. Benchmark Portfolio: Value Value Value Gain/(Loss)1 WAM WAM YTM Yield* Investment Pool $ 627,577,468 $ 624,491,587 $ 626,046,406 $ (1,554,819) 223 550 2.01% 2.33% *Twelve month moving average of a one year U.S. T-bill yield % of Total Par Market Book Unrealized Portfolio Policy Securities By Investment Type: Value Value Value Gain/(Loss)1 WAM YTM (Book Value) Max. U.S. Treasuries 67,500,000 67,136,495 66,927,741 208,754 486 2.55% 10.69% 100.00% U.S. Federal Agencies 272,956,000 270,938,188 272,619,818 (1,681,630) 311 1.67% 43.55% 100.00% Municipal Bonds 5,000,000 4,948,950 5,000,000 (51,050) 245 1.18% 0.80% 15.00% Certificates of Deposit 82,000,000 82,000,000 82,000,000 - 160 1.70% 13.10% 35.00% Commercial Paper 66,000,000 65,346,486 65,377,379 (30,893) 120 2.76% 10.44% 15.00% Local Government Investment Pools 132,202,864 132,202,864 132,202,864 - 1 2.30% 21.12% 50.00% Demand Deposits 1,918,604 1,918,604 1,918,604 - 1 1.00% 0.30% - Total Portfolio $ 627,577,468 $ 624,491,587 $ 626,046,406 $ (1,554,819) 223 2.01% 100.00% -

1Unrealized gain/(loss) is the difference between the market and book value and does not represent an actual gain or loss. Gains and losses are realized only when a security is sold prior to maturity. Since it is the City's practice to hold investments until they mature, the temporary gains and losses are unlikely to be realized.

Current 3 Months Ago 3 Month 1 Year Ago 1 Year Ago Investment Pool Comparisons: 12/31/2018 9/30/2018 Difference 12/31/2017 Difference Par Value $ 627,577,468 $ 610,092,457 $ 17,485,011 $ 664,555,916 $ (36,978,448) Market Value $ 624,491,587 $ 606,716,884 $ 17,774,703 $ 661,960,386 $ (37,468,799) Book Value $ 626,046,406 $ 609,567,636 $ 16,478,770 $ 664,403,888 $ (38,357,482) Unrealized Gain(Loss) $ (1,554,819) $ (2,850,752) $ 1,295,933 $ (2,443,502) $ 888,683 Weighted Average Maturity 223 206 17 329 (106) Yield to Maturity 2.01% 1.73% 0.28% 1.29% 0.71%

Portfolio Composition: U.S. Treasuries 10.69% 4.42% 6.27% 8.13% 2.57% U.S. Federal Agencies 43.55% 42.26% 1.29% 50.99% -7.46% Municipal Bonds 0.80% 1.80% -1.01% 3.43% -2.64% Certificates of Deposit 13.10% 13.45% -0.35% 20.47% -7.37% Commercial Paper 10.44% 5.86% 4.58% 6.90% 3.54% Local Government Investment Pools 21.12% 31.94% -10.83% 5.93% 15.18% Insured Cash Sweep Savings Deposits 0.00% 0.00% 0.00% 3.76% -3.76% Demand Deposits 0.30% 0.27% 0.03% 0.39% -0.09%

Bank Collateral Review**: Institution Collateral Type Market Value Collected Balance Pledge Required Collateral Ratio Wells Fargo Demand Deposits BNY Mellon U.S. Agency MBS $ 36,427,029 $ 1,918,604 > 102% 1898.62% LegacyTexas Bank Certificates of Deposit*** Fed Home Loan Bank Standby LOC $ 26,390,000 $ 25,641,141 > 102% 102.92% Independent Bank Certificates of Deposit Fed Home Loan Bank Standby LOC $ 19,679,101 $ 15,327,253 > 100% 128.39% **Does not include FDIC insurance ***Formerly, ViewPoint Bank

Depository Ledger Balance Review: Institution Account Type Beginning Bal. Deposits Withdrawals Ending Bal. Wells Fargo Bank Checking $ 1,802,926 $ 96,949,526 $ 96,833,847 $ 1,918,604

Compliance Statement & Review: The Quarterly Investment Report is in full compliance with the objectives, restrictions, and strategies as set forth in the City of Denton's Investment Policy and the Public Funds Investment Act (Texas Government Code, Chapter 2256.023).

ANTONIO PUENTE, JR., CGFO KEVIN ANN MULLEN, CPA Reviewer: Antonio Puente, Jr., CGFO Preparer: Kevin Ann Mullen, CPA Chief Financial Officer Treasury Manager

38 CITY OF DENTON : QUARTERLY INVESTMENT REPORT

1st Fiscal Quarter 2019- December 31, 2018 Page 2

INVESTMENT POOL

Current 3 Months Ago 3 Month 1 Year Ago 1 Year 12/31/2018 9/30/2018 Difference 12/31/2017 Difference Par Value - U.S. Treasuries $ 67,500,000 $ 27,000,000 $ 40,500,000 $ 54,000,000 $ 13,500,000 Par Value - U.S. Federal Agencies 272,956,000 257,756,000 15,200,000 338,756,000 (65,800,000) Par Value - Municipal Bonds 5,000,000 11,000,000 (6,000,000) 22,800,000 (17,800,000) Certificates of Deposit 82,000,000 82,000,000 - 136,000,000 (54,000,000) Par Value - Commercial Paper 66,000,000 36,000,000 30,000,000 46,000,000 20,000,000 Local Government Investment Pools 132,202,864 194,701,747 (62,498,883) 39,424,172 92,778,692 Insured Cash Sweep Savings Deposits - - - 25,000,000 (25,000,000) Demand Deposits 1,918,604 1,634,710 283,894 2,575,744 (657,140) Total Par Value $ 627,577,468 $ 610,092,457 $ 17,485,011 $ 664,555,916 $ (36,978,448)

Market Value - U.S. Treasuries $ 67,136,495 $ 26,893,742 $ 40,242,753 $ 53,875,122 $ 13,261,373 Market Value - U.S. Federal Agencies 270,938,188 254,844,355 16,093,833 336,610,728 (65,672,540) Market Value - Municipal Bonds 4,948,950 10,930,770 (5,981,820) 22,686,733 (17,737,783) Certificates of Deposit 82,000,000 82,000,000 - 136,000,000 (54,000,000) Market Value - Commercial Paper 65,346,486 35,711,560 29,634,926 45,787,887 19,558,599 Local Government Investment Pools 132,202,864 194,701,747 (62,498,883) 39,424,172 92,778,692 Insured Cash Sweep Savings Deposits - - - 25,000,000 (25,000,000) Demand Deposits 1,918,604 1,634,710 283,894 2,575,744 (657,140) Total Market Value $ 624,491,587 $ 606,716,884 $ 17,774,703 $ 661,960,386 $ (37,468,799)

Book Value - U.S. Treasuries $ 66,927,741 $ 26,947,477 $ 39,980,264 $ 53,988,660 $ 12,939,081 Book Value - U.S. Federal Agencies 272,619,818 257,563,816 15,056,002 338,795,485 (66,175,667) Book Value - Municipal Bonds 5,000,000 11,000,000 (6,000,000) 22,813,784 (17,813,784) Certificates of Deposit 82,000,000 82,000,000 - 136,000,000 (54,000,000) Book Value - Commercial Paper 65,377,379 35,719,886 29,657,493 45,806,043 19,571,336 Local Government Investment Pools 132,202,864 194,701,747 (62,498,883) 39,424,172 92,778,692 Insured Cash Sweep Savings Deposits - - - 25,000,000 (25,000,000) Demand Deposits 1,918,604 1,634,710 283,894 2,575,744 (657,140) Total Book Value $ 626,046,406 $ 609,567,636 $ 16,478,771 $ 664,403,888 $ (38,357,482)

Accrued Interest $ 3,374,014 $ 2,671,966 $ 702,048 $ 3,724,093 $ (350,078)

Cash Value - $ 627,865,601 $ 609,388,850 $ 18,476,751 $ 665,684,479 $ (37,818,877) (Total Market Value + Accrued Interest)

Unrealized Gain/(Loss) $ (1,554,819) $ (2,850,752) $ 1,295,933 $ (2,443,502) $ 888,683

Change in Fair Value since 9/30/18 - $ (1,516,332) $ (1,356,603) $ (159,729) $ (1,385,383) $ (130,949) (GASB 31)

Strategy Statement: The investment pool is an aggregation of the majority of City funds which may include tax receipts, enterprise fund revenues, fine and fee income, as well as some, but not necessarily all bond proceeds, grants, gifts and endowments. This portfolio is maintained to meet anticipated daily cash needs for the City's operations, capital projects and debt service. In order to meet these obligations and to minimize potential liquidation losses, the dollar-weighted stated average maturity of the investment pool shall not exceed 1.5 years or 550 days. The objectives of this portfolio are to: (1) ensure safety of principal by investing in only high quality securities for which a strong secondary market exists; (2) ensure that anticipated cash flow needs are matched with adequate investment liquidity; (3) limit market and credit risk through diversification; and (4) attain the best feasible yield, commensurate with the objectives and restrictions set forth in the Investment Policy, by actively managing the portfolio to meet or exceed the twelve month moving average yield of a one year U.S. Treasury bill as derived from the Federal Reserve Statistical Release H.15 for constant maturities.

39 CITY OF DENTON : QUARTERLY INVESTMENT REPORT

1st Fiscal Quarter 2019- December 31, 2018 Page 3

INVESTMENT POOL

Current 3 Months Ago 1 Year Ago Summary By Security Type: 12/31/2018 9/30/2018 12/31/2017 U.S. Treasuries - Coupon $ 66,927,741 $ 26,947,477 $ 53,988,660 U.S. Federal Agencies - Amort 6,107,691 - - U.S. Federal Agencies - Coupon 245,756,279 236,808,052 308,038,429 U.S. Federal Agencies - Callable 20,755,849 20,755,765 30,757,056 Municipal Bonds - Coupon 5,000,000 11,000,000 22,813,784 Certificates of Deposit - CDARS 42,000,000 42,000,000 54,000,000 Certificates of Deposit - SLOC 40,000,000 40,000,000 82,000,000 Commercial Paper - Discount 65,377,379 35,719,886 45,806,043 Local Government Investment Pools 132,202,864 194,701,747 39,424,172 Insured Cash Sweep Savings Deposits - - 25,000,000 Demand Deposits 1,918,604 1,634,710 2,575,744 Total Book Value $ 626,046,406 $ 609,567,636 $ 664,403,888

Current 12/31/2018

U.S. Federal Agencies - Coupon 39.26% U.S. Federal Agencies - Callable 3.32%

Municipal Bonds - Coupon 0.80%

CD - SLOC 6.39% U.S. Treasuries - Coupon 10.69% CD - CDARS 6.71%

U.S. Federal Agencies - Commercial Paper - Amort Discount 0.97% 10.44%

Demand Deposits 0.30% Local Government Investment Pools 21.12%

Objective: The portfolio is restricted to U.S. Treasuries and agency securities (maturing in less than five years); state and locally issued Texas municipal bonds rated AA or better (maturing in less than three years); insured, collateralized, or standby letter of credit backed certificates of deposit (maturing in less than three years); collateralized repurchase agreements (maturing in less than thirty days); commercial paper rated A-1/P-1 or better (maturing in less than 270 days); and local government pools & SEC registered government money market mutual funds (weighted average maturity of less than 60 days).

Current 3 Months Ago 1 Year Ago Summary By Security Type: 12/31/2018 9/30/2018 12/31/2017 U.S. Treasuries - Coupon 10.69% 4.42% 8.13% U.S. Federal Agencies - Amort 0.97% 0.00% 0.00% U.S. Federal Agencies - Coupon 39.26% 38.85% 46.36% U.S. Federal Agencies - Callable 3.32% 3.41% 4.63% Municipal Bonds - Coupon 0.80% 1.80% 3.43% Certificates of Deposit - CDARS 6.71% 6.89% 8.13% Certificates of Deposit - SLOC 6.39% 6.56% 12.34% Commercial Paper - Discount 10.44% 5.86% 6.90% Local Government Investment Pools 21.12% 31.94% 5.93% Insured Cash Sweep Savings Deposits - - 3.76% Demand Deposits 0.30% 0.27% 0.39% Total 100.00% 100.00% 100.00%

40 CITY OF DENTON : QUARTERLY INVESTMENT REPORT

1st Fiscal Quarter 2019- December 31, 2018 Page 4

INVESTMENT POOL Current 3 Months Ago 1 Year Ago Summary By Issuer: 12/31/2018 9/30/2018 12/31/2017 CDARS CDs $ 42,000,000 $ 42,000,000 $ 54,000,000 LEGACYTEXAS BANK CDs* 25,000,000 25,000,000 62,000,000 INDEPENDENT BANK CDs 15,000,000 15,000,000 20,000,000 U.S. TREASURY 49,382,057 26,947,477 53,988,660 FFCB 67,645,911 57,996,001 79,025,848 FHLB 113,959,085 105,978,215 130,105,703 FHLMC 30,870,083 25,932,308 47,914,577 FNMA 77,690,423 67,657,291 81,749,357 DALLAS, TX WTR & SWR REV BDS 4,000,000 10,000,000 10,000,000 TEXAS A&M UNIV REV BDS 1,000,000 1,000,000 4,500,000 LUBBOCK, TX GO REFUNDING BDS - - 3,300,517 UNIVERSITY OF HOUSTON, TX REV BDS - - 5,013,267 JP MORGAN SECURITIES LLC 15,830,273 10,923,670 25,911,014 TOYOTA MOTOR CREDIT CORP 29,853,322 19,820,178 14,919,698 ING (U.S.) FUNDING LLC - - 4,975,331 NATIXIS NY BRANCH 14,746,283 4,976,038 - RBC 4,947,500 - - TEXSTAR 107,100,000 194,701,747 39,424,172 TEXPOOL 25,102,864 - - INSURED CASH SWEEP - - 25,000,000 WELLS FARGO DEMAND DEPOSITS 1,918,604 1,634,710 2,575,744 Total Book Value $ 626,046,406 $ 609,567,636 $ 664,403,888

Current 12/31/2018 TEXPOOL, 4.01% WF DEMAND DEPOSITS, 0.31% CDARS CDs, 6.71% LEGACYTEXAS BANK CDs, 3.99%

TEXSTAR, 17.11% INDEPENDENT BANK CDs, 2.40%

U.S. TREASURY, 7.89%

RBC , 0.79%

NATIXIS NY BRANCH, 2.36%

TOYOTA MOTOR CREDIT , 4.77% FFCB, 10.81%

JP MORGAN SECURITIES LLC, 2.53% DALLAS, TX WTR & SWR REV BDS, 0.64% TEXAS A&M UNIV REV BDS, 0.16%

FNMA, 12.41% FHLB, 18.20%

FHLMC, 4.93%

Objective: It is the policy of the City to diversify its investment portfolio by restricting investments in a single issuer/institution to no more than 35 percent of the portfolio's total book value and to those offering repurchase agreements, collateralized CDs (including standby letters of credit), and local or state of Texas municipal securities to no greater than 15 percent. The purpose of this requirement is to limit market and credit risk. Commercial paper issuers are further restricted by a 5 percent total portfolio limitation. There are no issuer limitations on U.S. Treasuries or FDIC insured products except as they pertain to the overall 35% certificates of deposit and 15% savings deposit restrictions. Some investment types may be further limited.

Current 3 Months Ago 1 Year Ago Summary By Issuer: 12/31/2018 9/30/2018 12/31/2017 CDARS CDs 6.71% 6.89% 8.13% LEGACYTEXAS BANK CDs* 3.99% 4.10% 9.33% INDEPENDENT BANK CDs 2.40% 2.46% 3.01% U.S. TREASURY 7.89% 4.42% 8.13% FFCB 10.80% 9.51% 11.89% FHLB 18.20% 17.39% 19.58% FHLMC 4.93% 4.25% 7.21% FNMA 12.41% 11.10% 12.30% DALLAS, TX WTR & SWR REV BDS 0.64% 1.64% 1.51% TEXAS A&M UNIV REV BDS 0.16% 0.16% 0.68% LUBBOCK, TX GO REFUNDING BDS - - 0.50% UNIVERSITY OF HOUSTON, TX REV BDS - - 0.75% JP MORGAN SECURITIES LLC 2.53% 1.79% 3.90% TOYOTA MOTOR CREDIT CORP 4.77% 3.25% 2.25% ING (U.S.) FUNDING LLC - - 0.75% NATIXIS NY BRANCH 2.36% 0.82% - RBC 0.79% - - INSURED CASH SWEEP - - 3.76% TEXSTAR 17.11% 31.94% 5.93% TEXPOOL 4.01% - - WELLS FARGO DEMAND DEPOSITS 0.30% 0.27% 0.39% Total 100.00% 100.00% 100.00% *Formerly, ViewPoint Bank

41 CITY OF DENTON : QUARTERLY INVESTMENT REPORT

1st Fiscal Quarter 2019- December 31, 2018 Page 5

INVESTMENT POOL

Current 3 Months Ago 1 Year Ago Maturity Time Frame: 12/31/2018 9/30/2018 12/31/2017 00-03 Months $ 250,121,468 $ 235,336,457 $ 182,299,916 03-06 Months 76,000,000 116,000,000 100,500,000 06-12 Months 109,200,000 96,000,000 87,000,000 12-24 Months 184,756,000 162,756,000 200,000,000 24 Months & Over 7,500,000 - 94,756,000 Total Par Value $ 627,577,468 $ 610,092,457 $ 664,555,916

$700,000,000 $650,000,000 $600,000,000 $550,000,000 $500,000,000 $450,000,000 $400,000,000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 Current 3 Months Ago 1 Year Ago

00-06 Months 06-12 Months 12-24 Months 24 Months & Over

Objective: The risk of market price volatility is minimized through maturity diversification. Investment maturities are staggered to provide cash flows based on the anticipated needs of the City. Liquidity is achieved by matching investment maturities with forecasted cash disbursements and by investing in securities with active secondary markets. Short-term local government investment pools and government money market mutual funds help to provide daily liquidity and may be utilized as a competitive alternative to other fixed income investments.

Current 3 Months Ago 1 Year Ago Maturity Time Frame: 12/31/2018 9/30/2018 12/31/2017 00-03 Months 39.85% 38.57% 27.43% 03-06 Months 12.11% 19.01% 15.12% 06-12 Months 17.40% 15.74% 13.09% 12-24 Months 29.44% 26.68% 30.10% 24 Months & Over 1.20% 0.00% 14.26% Total 100.00% 100.00% 100.00%

42 CITY OF DENTON : QUARTERLY INVESTMENT REPORT

1st Fiscal Quarter 2019- December 31, 2018 Page 6

ECONOMIC SUMMARY Interest Rate History Source: U.S. Federal Reserve Statistical Release (H.15) Fiscal Year 2013-2014 Fiscal Year 2014-2015 Fiscal Year 2015-2016 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Market Sector: Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Fed Funds (effective) 0.09% 0.08% 0.10% 0.09% 0.12% 0.11% 0.13% 0.14% 0.24% 0.36% 0.38% 0.40% 3-Month U.S. T-Bill 0.07% 0.05% 0.04% 0.02% 0.03% 0.03% 0.02% 0.02% 0.23% 0.30% 0.27% 0.29% 2-Year U.S. T-Note 0.34% 0.40% 0.45% 0.57% 0.64% 0.64% 0.69% 0.71% 0.98% 0.88% 0.73% 0.77%

Portfolio Benchmark* 0.13% 0.13% 0.12% 0.12% 0.12% 0.15% 0.18% 0.24% 0.32% 0.41% 0.49% 0.54% Portfolio Yield 0.50% 0.49% 0.49% 0.51% 0.55% 0.57% 0.57% 0.65% 0.72% 0.79% 0.81% 0.90%

Fiscal Year 2016-2017 Fiscal Year 2017-2018 Fiscal Year 2018-2019 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Market Sector: Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Fed Funds (effective) 0.54% 0.79% 1.04% 1.15% 1.30% 1.67% 1.90% 2.15% 2.40% 3-Month U.S. T-Bill 0.51% 0.75% 1.00% 1.05% 1.32% 1.71% 1.92% 2.20% 2.36% 2-Year U.S. T-Note 1.20% 1.31% 1.34% 1.38% 1.84% 2.27% 2.53% 2.57% 2.49%

Portfolio Benchmark* 0.61% 0.69% 0.83% 1.00% 1.20% 1.46% 1.75% 2.05% 2.33% Portfolio Yield 0.95% 1.07% 1.16% 1.25% 1.29% 1.42% 1.58% 1.73% 2.01%

*Twelve month moving average of a one year U.S. T-bill yield

FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 3.00%

2.00%

1.00%

0.00% Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 18 18 19 19 19

Fed Funds 3-Month T-Bill 2-Year T-Note Portfolio Yield Portfolio Benchmark*

Fiscal Year to Date Earnings 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Fiscal Year: 3 Months 6 Months 9 Months 12 Months 2018-2019 $ 2,952,850 $ - $ - $ - 2017-2018 $ 2,138,420 $ 4,317,890 $ 6,515,166 $ 8,955,045 2016-2017 $ 1,175,753 $ 2,763,135 $ 4,734,315 $ 6,999,226 2015-2016 $ 849,369 $ 1,771,206 $ 2,743,857 $ 3,961,973 2014-2015 $ 613,877 $ 1,228,059 $ 1,874,846 $ 2,695,211

QUARTERLY COMMENTARY December 31, 2018 The portfolio is in compliance with the City's Investment Policy. The weighted average yield on new purchases was 2.86%, well Source: First Southwest Asset Management above the 2.46% on the maturing position and the 2.29% average LGIP rate. The portfolio’s weighted average yield continues to Economic Summary trend higher, rising another 5 basis points, from 1.96% to 2.01%. The increase in the portfolio’s yield lagged the 8 basis point increase in the benchmark 12-month Treasury-bill index, widening the portfolio’s deficit to the benchmark from 29 to 32 basis points. The benchmark yield should begin to slow, allowing the gap between the benchmark and the portfolio to narrow in the months ahead. The Fed raised the rate 25 basis points during December, bringing the total increase of 2018 to 100 basis points. A global economic slowdown, the trade war with China, and the government shutdown are all contributing to the negative shift in sentiment.

Staff will continue to monitor the investment portfolio and ensure compliance with the City's Investment Policy and the Public Funds Investment Act.

43 City of Denton

Portfolio Management Page 1 Portfolio Details - Investments December 31, 2018

Average Purchase Stated YTM Days to Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate 365 Maturity Date Treasury Securities - Coupon 3133EJT74 4006 FFCB 12/12/2018 7,500,000.00 7,598,460.00 7,543,009.69 3.050 2.840 1,049 11/15/2021 3135G0U84 4001 FNMA 11/30/2018 10,000,000.00 10,054,860.00 10,002,674.20 2.875 2.859 668 10/30/2020 912828P53 3948 U.S. TREASURY 06/07/2017 10,000,000.00 9,980,600.00 9,993,827.75 0.750 1.258 45 02/15/2019 912828P95 3978 U.S. TREASURY 04/23/2018 5,000,000.00 4,985,975.00 4,987,841.50 1.000 2.233 73 03/15/2019 912828X21 3990 U.S. TREASURY 10/18/2018 5,000,000.00 4,933,400.00 4,917,803.90 1.500 2.814 470 04/15/2020 912828VJ6 3991 U.S. TREASURY 10/18/2018 5,000,000.00 4,950,390.00 4,929,077.98 1.875 2.852 546 06/30/2020 912828XU9 3994 U.S. TREASURY 10/31/2018 5,000,000.00 4,927,340.00 4,906,782.58 1.500 2.821 531 06/15/2020 9128282J8 3995 U.S. TREASURY 10/31/2018 10,000,000.00 9,843,360.00 9,800,909.16 1.500 2.836 561 07/15/2020 912828W22 3999 U.S. TREASURY 11/16/2018 10,000,000.00 9,862,110.00 9,845,814.49 1.375 2.782 410 02/15/2020

Subtotal and Average 64,228,750.90 67,500,000.00 67,136,495.00 66,927,741.25 2.550 486 Federal Agency Disc. - Amortizing 313312KB5 3988 FFCB 10/11/2018 6,200,000.00 6,107,000.00 6,107,690.61 2.470 2.579 217 08/06/2019

Subtotal and Average 6,101,309.78 6,200,000.00 6,107,000.00 6,107,690.61 2.579 217 Federal Agency Issues - Coupon 3133EG6Z3 3931 FFCB 02/13/2017 25,000,000.00 24,969,200.00 24,999,022.92 1.200 1.234 43 02/13/2019 3133EG2D6 3932 FFCB 02/16/2017 8,000,000.00 7,936,496.00 8,001,157.85 1.550 1.530 269 09/27/2019 3133EDPK2 3937 FFCB 02/22/2017 5,000,000.00 4,984,275.00 5,008,069.32 1.750 1.352 149 05/30/2019 3133EHEZ2 3959 FFCB 07/25/2017 6,000,000.00 5,928,492.00 6,004,554.69 1.600 1.538 461 04/06/2020 3133EJCA5 3976 FFCB 03/23/2018 5,000,000.00 4,974,600.00 4,982,557.12 2.150 2.416 493 05/08/2020 3130AA3R7 3933 FHLB 02/16/2017 7,000,000.00 6,924,218.00 6,990,221.23 1.375 1.539 318 11/15/2019 3130A0JR2 3934 FHLB 02/16/2017 5,000,000.00 4,987,375.00 5,036,284.96 2.375 1.590 346 12/13/2019 3130AAXU7 3939 FHLB 03/08/2017 20,000,000.00 19,792,280.00 19,999,155.28 1.650 1.654 413 02/18/2020 3130ABAA4 3945 FHLB 04/26/2017 15,000,000.00 14,802,825.00 14,995,173.91 1.400 1.429 413 02/18/2020 3130ABM29 3951 FHLB 06/29/2017 15,000,000.00 14,818,980.00 15,000,000.00 1.500 1.500 413 02/18/2020 313378J77 3958 FHLB 07/25/2017 8,000,000.00 7,931,568.00 8,032,518.48 1.875 1.528 437 03/13/2020 3130AC2Q6 3973 FHLB 01/25/2018 5,000,000.00 4,949,760.00 4,974,074.49 1.450 2.072 311 11/08/2019 3133782M2 3975 FHLB 03/23/2018 5,000,000.00 4,991,215.00 4,993,950.58 1.500 2.160 66 03/08/2019 3130ADN32 3979 FHLB 04/23/2018 10,000,000.00 9,953,160.00 9,959,419.75 2.125 2.500 406 02/11/2020 3130AEDY3 3984 FHLB 05/30/2018 4,000,000.00 3,991,272.00 3,999,529.98 2.375 2.387 346 12/13/2019 3130AECJ7 3985 FHLB 05/30/2018 5,000,000.00 5,007,215.00 5,009,073.75 2.625 2.492 513 05/28/2020 3130A12B3 3989 FHLB 10/18/2018 5,000,000.00 4,975,065.00 4,959,580.20 2.125 2.816 437 03/13/2020 313370US5 4004 FHLB 12/07/2018 10,000,000.00 10,052,900.00 10,010,102.52 2.875 2.812 619 09/11/2020 3137EADZ9 3935 FHLMC 02/22/2017 5,000,000.00 4,981,360.00 4,997,403.36 1.125 1.308 104 04/15/2019 3134GA6H2 3938 FHLMC 02/28/2017 5,000,000.00 4,992,225.00 5,000,000.00 1.375 1.375 58 02/28/2019

Portfolio CITY AP Run Date: 02/20/2019 - 15:40 PM (PRF_PM2) 7.3.0 44 Report Ver. 7.3.6.1 City of Denton

Portfolio Management Page 2 Portfolio Details - Investments December 31, 2018

Average Purchase Stated YTM Days to Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate 365 Maturity Date Federal Agency Issues - Coupon 3137EADR7 3960 FHLMC 07/25/2017 5,000,000.00 4,922,785.00 4,989,180.72 1.375 1.541 486 05/01/2020 3137EAEE5 3987 FHLMC 10/11/2018 5,000,000.00 4,943,915.00 4,933,499.12 1.500 2.804 381 01/17/2020 3136G3XJ9 3903 FNMA 07/26/2016 5,000,000.00 4,954,780.00 5,000,000.00 1.000 1.000 206 07/26/2019 3135G0J53 3904 FNMA 07/07/2016 10,000,000.00 9,977,720.00 10,003,714.96 1.000 0.754 56 02/26/2019 3136FTS67 3909 FNMA 08/30/2016 3,000,000.00 2,996,400.00 3,003,242.01 1.700 0.995 57 02/27/2019 3135G0J53 3910 FNMA 08/30/2016 10,000,000.00 9,977,720.00 10,000,374.44 1.000 0.975 56 02/26/2019 3135G0N33 3930 FNMA 02/08/2017 10,000,000.00 9,899,010.00 9,972,763.53 0.875 1.349 213 08/02/2019 3136G4MA8 3936 FNMA 02/28/2017 5,000,000.00 4,952,510.00 5,000,000.00 1.700 1.700 423 02/28/2020 3135G0T29 3942 FNMA 03/29/2017 5,000,000.00 4,943,090.00 4,994,693.09 1.500 1.594 423 02/28/2020 3135G0P49 3950 FNMA 06/14/2017 5,000,000.00 4,946,720.00 4,985,971.03 1.000 1.434 239 08/28/2019 3135G0R39 3971 FNMA 01/08/2018 10,000,000.00 9,867,450.00 9,920,989.78 1.000 1.993 296 10/24/2019

Subtotal and Average 243,808,180.25 246,000,000.00 244,326,581.00 245,756,279.07 1.654 299 Federal Agency Issues - Callable 3133EGEF8 3895 FFCB 06/22/2016 5,000,000.00 4,969,695.00 4,999,848.74 1.180 1.187 163 06/13/2019 3134GBVD1 3953 FHLMC 06/29/2017 6,000,000.00 5,917,932.00 6,000,000.00 1.625 1.625 545 06/29/2020 3134GBD82 3965 FHLMC 08/29/2017 4,950,000.00 4,873,443.30 4,950,000.00 1.625 1.625 605 08/28/2020 3136G4NZ2 3964 FNMA 08/29/2017 4,806,000.00 4,743,536.42 4,806,000.00 1.700 1.682 587 08/10/2020

Subtotal and Average 20,755,835.64 20,756,000.00 20,504,606.72 20,755,848.74 1.533 477 Municipal Bonds - Coupon 23542JBE4 3899 DALLAS, TX WTR & SWR REV BDS 07/07/2016 4,000,000.00 3,955,680.00 4,000,000.00 1.217 1.217 273 10/01/2019 88213AFU4 3902 TX A & M UNIV REV BD 07/20/2016 1,000,000.00 993,270.00 1,000,000.00 1.009 1.009 134 05/15/2019

Subtotal and Average 5,000,000.00 5,000,000.00 4,948,950.00 5,000,000.00 1.176 245 CDs - CDARS SYS3929 3929 CD - CDARS 02/09/2017 7,000,000.00 7,000,000.00 7,000,000.00 1.677 1.677 37 02/07/2019 SYS3940 3940 CD - CDARS 03/16/2017 10,000,000.00 10,000,000.00 10,000,000.00 1.626 1.626 72 03/14/2019 SYS3955 3955 CD - CDARS 07/20/2017 10,000,000.00 10,000,000.00 10,000,000.00 1.698 1.698 198 07/18/2019 SYS3961 3961 CD - CDARS 08/10/2017 10,000,000.00 10,000,000.00 10,000,000.00 1.698 1.698 219 08/08/2019 SYS3966 3966 CD - CDARS 09/14/2017 5,000,000.00 5,000,000.00 5,000,000.00 1.523 1.523 254 09/12/2019

Subtotal and Average 42,000,000.00 42,000,000.00 42,000,000.00 42,000,000.00 1.657 153 CDs - SLOC SYS3944 3944 CD - INDEPENDENT BANK 04/13/2017 10,000,000.00 10,000,000.00 10,000,000.00 1.623 1.623 100 04/11/2019

Portfolio CITY AP Run Date: 02/20/2019 - 15:40 PM (PRF_PM2) 7.3.0 45 City of Denton

Portfolio Management Page 3 Portfolio Details - Investments December 31, 2018

Average Purchase Stated YTM Days to Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate 365 Maturity Date CDs - SLOC SYS3974 3974 CD - INDEPENDENT BANK 02/08/2018 5,000,000.00 5,000,000.00 5,000,000.00 2.295 2.295 401 02/06/2020 SYS3946 3946 CD - LEGACYTEXAS BANK 05/11/2017 10,000,000.00 10,000,000.00 10,000,000.00 1.677 1.677 128 05/09/2019 SYS3949 3949 CD - LEGACYTEXAS BANK 06/15/2017 15,000,000.00 15,000,000.00 15,000,000.00 1.676 1.676 163 06/13/2019

Subtotal and Average 40,000,000.00 40,000,000.00 40,000,000.00 40,000,000.00 1.740 168 Commercial Paper Disc. - Amortizing 46640QPN5 3983 JP MORGAN SECURITIES LLC 05/30/2018 6,000,000.00 5,976,528.00 5,978,506.67 2.480 2.597 52 02/22/2019 46640QUS8 3997 JP MORGAN SECURITIES LLC 10/31/2018 5,000,000.00 4,901,725.00 4,914,166.66 3.000 3.134 206 07/26/2019 46640QT68 4005 JP MORGAN SECURITIES LLC 12/10/2018 5,000,000.00 4,936,785.00 4,937,600.00 2.880 2.962 156 06/06/2019 63873KVP9 4002 NATIXIS NY BRANCH 11/30/2018 10,000,000.00 9,802,860.00 9,808,250.00 2.950 3.086 234 08/23/2019 63873KT64 4003 NATIXIS NY BRANCH 12/07/2018 5,000,000.00 4,938,033.34 4,938,033.34 2.860 2.942 156 06/06/2019 78009BSG8 4000 RBC 11/16/2018 5,000,000.00 4,945,995.00 4,947,500.00 2.800 2.879 135 05/16/2019 89233HPE8 3986 TOYOTA MOTOR CREDIT 09/11/2018 20,000,000.00 19,937,120.00 19,941,822.22 2.380 2.438 44 02/14/2019 89233HRV8 3998 TOYOTA MOTOR CREDIT 11/01/2018 10,000,000.00 9,907,440.00 9,911,500.00 2.775 118 04/29/2019

Subtotal and Average 64,532,063.97 66,000,000.00 65,346,486.34 65,377,378.89 2.764 120 Local Govt Investment Pools SYS3996 3996 LOCAL GOVT INV POOL - TEXPOOL 10/26/2018 25,054,193.98 25,054,193.98 25,054,193.98 2.530 2.530 1 SYS3641 3641 LOCAL GOVT INV POOL - TEXSTAR 107,100,000.00 107,100,000.00 107,100,000.00 2.308 2.308 1

Subtotal and Average 124,783,226.24 132,154,193.98 132,154,193.98 132,154,193.98 2.350 1 Demand Deposits SYS3706 3706 DEMAND DEPOSITS - WELLS FARGO 1,918,604.05 1,918,604.05 1,918,604.05 1.000 1.000 1

Subtotal and Average 2,536,607.13 1,918,604.05 1,918,604.05 1,918,604.05 1.000 1

Total and Average 613,745,973.90 627,528,798.03 624,442,917.09 625,997,736.59 2.017 223

Portfolio CITY AP Run Date: 02/20/2019 - 15:40 PM (PRF_PM2) 7.3.0 46 City of Denton

Portfolio Management Page 4 Portfolio Details - Cash December 31, 2018

Average Purchase Stated YTM Days to CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate 365 Maturity

Average Balance 0.00 0

Total Cash and Investments 613,745,973.90 627,528,798.03 624,442,917.09 625,997,736.59 2.017 223

Portfolio CITY AP Run Date: 02/20/2019 - 15:40 PM (PRF_PM2) 7.3.0 47 Date: March 8, 2019 Report No. 2019-038

INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL

SUBJECT: FY 2018-2019 Annual Program of Services

BACKGROUND: The publication of the FY 2018-2019 Annual Program of Services (budget document) is complete. A printed copy will be included in each elected official’s March 8 packet.

For public review, a print publication of the budget document will be provided in each branch of the Library system, in the City Secretary’s Office, and in the Finance Department. An electronic copy of the budget document is available on the City’s website here.

Thank you for your input, guidance, and support during the FY 2018-2019 budget process. Please let me know if you have any questions or concerns regarding the budget document.

ATTACHMENT(S): FY 2018-2019 Annual Program of Services (provided in the Council packet)

STAFF CONTACT: Antonio Puente, Jr. Chief Financial Officer (940) 349-7283 [email protected]

Date: March 8, 2019 Report No. 2019-039

INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL

SUBJECT: Debt Summary Report of City’s outstanding debt

BACKGROUND: Attached is the Debt Summary Report with prin cipal and interest outstanding as of Sept. 30, 2018. This report is prepared on an annual basis to provide citizens and the general public with a comprehensive and easy to understand summ ary of th e City’s debt prof ile. Additionally, this report includes required information in accordance with Texas Local Government Code 140.008 (House Bill 1378).

The report provides a high-level introduction to the t ypes and uses of debt i ssued by the City as well as the m ost recent bond ratings. S taff has differentiated between tax-supported and revenue-supported debt in order to give the public a be tter understanding of which debt is pai d for by property taxes vers us rate revenues. F urthermore, the report details the principal and interest for each major service area of the City and provides two visual represen tations by dollar amount and percentages.

On March 5, 2019 the City’s Audit/ Finance Committee reviewed the Debt Summary Report and recommended that it be submitted to the full City Council for any additional feedback.

CONCLUSION: If no feedback is received, Staff will post the report on the City’s website for the general public on Friday, March 15, 2019. The report is intended to be updated annually in conjunction with the City’s fiscal year end.

ATTACHMENT(S): 1. Debt Summary Report as of Sept. 30, 2018

STAFF CONTACT: Antonio Puente, Jr., Chief Financial Officer (940) 349-7283 [email protected]

City of Denton Debt Summary Report Fiscal Year Ending September 30, 2018

Contact: City of Denton Finance Department Attn: Antonio Puente, Jr. – Chief Financial Officer 215 E. McKinney St. Denton, Texas 76201

Email: [email protected] Phone: 940-349-7283 Fax: 940-349-7206 Website: www.cityofdenton.com Published: March 15, 2019

Disclaimer: Data provided in this report is as of the date of publication, constitutes existing long- term debt obligations only, and has been prepared pursuant to Texas Local Government Code 140.008 (House Bill 1378). This report does not include forward looking statements nor does it include debt that may be incurred in the future. Interested parties should refer to the City’s audited financial statements and other disclosure documents when investing. TABLE OF CONTENTS

Introduction…………………………………………………………………………………………. 3

CITY DEBT SECTION

Schedule – Total Annual Debt Service by Type of Debt…………………………………………....6

Bar & Pie Charts – Total Annual Debt Service by Type of Debt………………………………...... 7

Schedule – Tax Supported Debt Service…………………………………………………………… 8

Bar & Pie Charts – Tax Supported Debt Service…………………………………………………… 9

Schedule – Revenue Supported Debt Service………………………………………………………. 10

Bar & Pie Charts – Revenue Supported Debt Service……………………………………………… 11

Schedule – General Government Debt Service……………………………………………………...12

Bar & Pie Charts – General Government Debt Service………………………………………….…. 13

Schedule – Electric Debt Service…………………………………………………………………… 14

Bar & Pie Charts – Electric Debt Service…………………………………………………………... 15

Schedule – Water Debt Service…………………………………………………………………….. 16

Bar & Pie Charts – Water Debt Service…………………………………………………………….. 17

Schedule – Wastewater Debt Service………………………………………………………………. 18

Bar & Pie Charts – Wastewater Debt Service……………………………………………………….19

Schedule – Solid Waste Debt Service………………………………………………………………. 20

Bar & Pie Charts – Solid Waste Debt Service………………………………………………….…... 21

HOUSE BILL 1378 SECTION

Summary of Debt Obligations……………………………………………………………..……..….23

Individual Debt Obligations………………………………………………………………….…..….24

Glossary of Terms………………………………………………………………………….……..…32

INTRODUCTION

This report is divided into two sections. The first section (City Debt) presents the City’s outstanding debt by the manner in which the City intends to pay for such debt (tax-supported versus revenue- supported). Additionally, this section provides a breakdown of the City’s outstanding debt by purpose (i.e., General Government, Electric, Water, Wastewater, Solid Waste and Airport). The second section (House Bill 1378) is intended to comply with reporting requirements pursuant to Texas Local Government Code 140.008.

The City of Denton utilizes long-term debt to finance non-operating expenses, which may include equipment, facilities, and the acquisition of land. Unlike the Federal Government, the City generally issues debt for the purchase or construction of capital assets and infrastructure improvements, and cannot issue debt to fund operating expenses or deficit spending. All debt issued by the City must be approved by the Texas Attorney General’s Office prior to the final sale of the debt. Additional information on the City’s outstanding debt including statistical comparisons and ratios can be found in the City’s Comprehensive Annual Financial Report, which is located on the City’s website under the Finance Department. (www.cityofdenton.com)

The City issues two types of long-term debt: General Obligation Debt and Revenue Bond Debt. The City also differentiates between tax-supported and revenue-supported debt to provide the public with a clear understanding of which debt will be paid by property taxes versus rate revenues. The following table shows the latest bond ratings for each type of debt for which ratings are given:

Moody’s1 Standard & Poor’s Fitch General Obligation Debt Aa2 AA+ AA+ Revenue Bond Debt2 Not Rated AA- A+ 1Moody’s has not rated a new general obligation debt issue since 2011 or a revenue bond debt issue since 2008, although surveillance ratings remain unchanged. All previously rated revenue bond debt have been refunded or paid off. 2Ratings for the Utility System Revenue Bonds, Series 2017 which were originally rated in December 2016. Fitch rating was affirmed in December 2018.

GENERAL OBLIGATION DEBT: The largest category of debt is General Obligation Debt. It consists of two categories of bonds: General Obligation Bonds (GOs) and Certificates of Obligation (COs).

GOs are generally voter approved and backed by the full faith and credit of the City (property tax pledge) and must be approved at an election. Voter approval may be granted during one of two general election dates each year. GOs which are issued to refund outstanding debt do not require voter approval. Under the City’s debt policy, GOs strive to have a final maturity of twenty (20) years or less.

COs do not require voter approval and generally have a dual pledge of a specific City revenue source as well and the full faith and credit of the City. Some examples of pledged City revenues are electric, water, wastewater, and drainage revenues. Under the City’s debt policy, COs will strive to have a final maturity of thirty (30) years or less. Historically, COs have mostly been issued with twenty (20) year final maturities for general government purposes. In 2010, the City began issuing COs not only for general government purposes which are repaid by property taxes, but also for utility related projects of the City. The CO’s issued for utility purposes are repaid from the specific utility fund for which the debt was issued. CO’s have a lower interest rate than revenue bonds, due to the pledge of full faith and credit of the City. A portion of the interest savings to the City’s utilities

3 through issuing CO’s (instead of revenue bonds) is being paid to the general government and placed in the Street Improvement Fund. REVENUE BOND DEBT: The second category of debt is Revenue Bond Debt. This debt is secured by only a pledge of the operating revenues of the City’s Electric, Water and Wastewater Funds (collectively known as the “Utility System”) and not the full faith and credit of the City. Under the City’s debt policy, revenue bonds will strive to have a final maturity of thirty (30) years or less. Historically, most revenue bonds have been issued with a twenty (20) year final maturity. As of September 30, 2018, the City only has the Utility System Revenue Bonds, Series 2017 outstanding.

OUTSTANDING DEBT: The City’s total outstanding principal and interest as of September 30, 2018 is shown in Table 1 on page 6 of this report.

4

CITY DEBT SECTION

5 Table 1 - Total Outstanding Debt (in millions) as of September 30, 2018

Principal Interest Total GOs $ 239.00 $ 54.98 $ 293.98 COs $ 528.25 $ 236.80 $ 765.05 Revenue Bonds $ 214.89 $ 121.16 $ 336.05 Total $ 982.14 $ 412.94 $ 1,395.08

City of Denton Total Annual Debt Service (Principal & Interest) - All Debt Fiscal Year Ending September 30, 2018

FY End General Obligation Bonds (GOs) Certificates of Obligation (COs) Revenue 9-30 Tax Supported Revenue Supported Tax Supported Revenue Supported Bonds Total 2019 15,043,965 23,665,908 10,284,850 41,201,958 10,685,000 100,881,680 2020 14,263,450 23,707,969 9,850,681 40,574,794 18,075,500 106,472,396 2021 13,930,960 19,961,411 9,057,981 38,738,082 18,076,750 99,765,184 2022 13,012,842 17,280,317 8,286,669 37,525,925 18,073,125 94,178,877 2023 11,721,321 12,031,201 6,816,394 35,477,406 18,073,625 84,119,946 2024 11,185,337 9,625,569 5,981,794 35,147,882 18,077,000 80,017,581 2025 10,297,714 6,830,129 5,794,044 35,102,607 18,077,125 76,101,618 2026 9,655,171 4,896,300 5,624,706 29,493,632 18,073,500 67,743,309 2027 9,084,052 4,438,525 5,461,350 29,291,703 18,075,875 66,351,505 2028 7,604,690 3,152,100 5,018,344 28,933,078 18,077,375 62,785,586 2029 6,420,349 1,929,825 4,389,822 28,879,115 18,075,750 59,694,862 2030 6,429,808 1,933,575 4,394,444 28,980,583 18,074,625 59,813,034 2031 6,112,528 - 4,335,213 24,878,043 18,077,375 53,403,159 2032 5,938,019 - 4,313,075 23,039,744 18,077,375 51,368,213 2033 5,728,422 - 4,293,478 20,474,825 18,073,125 48,569,850 2034 5,444,959 - 3,693,750 17,249,069 18,077,750 44,465,528 2035 5,174,469 - 3,190,797 15,843,531 18,074,375 42,283,172 2036 3,593,472 - 2,966,550 14,939,306 18,076,125 39,575,453 2037 2,515,491 - 2,725,675 13,780,781 18,075,875 37,097,822 2038 1,369,378 - 2,141,838 13,740,956 - 17,252,172 2039 - - - 13,761,881 - 13,761,881 2040 - - - 13,776,881 - 13,776,881 2041 - - - 13,779,188 - 13,779,188 2042 - - - 13,779,269 - 13,779,269 2043 - - - 13,778,544 - 13,778,544 2044 - - - 13,772,788 - 13,772,788 2045 - - - 10,404,397 - 10,404,397 2046 - - - 6,541,894 - 6,541,894 2047 - - - 3,544,500 - 3,544,500 $ 164,526,395 129,452,829 $ 108,621,454 656,432,359 $ 336,047,250 $ 1,395,080,287

6 Total Annual Debt Service ($)

120

100

80

Revenue Bonds CO - Revenue Supported 60 CO - Tax Supported Millions GO - Revenue Supported

40 GO - Tax Supported

20

- 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047

Total Annual Debt Service (%)

12% 22%

13%

GO - Tax Supported GO - Revenue Supported CO - Tax Supported CO - Revenue Supported Revenue Bonds 5%

48%

7 City of Denton Total Annual Debt Service (Principal & Interest) - Tax Supported Debt Fiscal Year Ending September 30, 2018

FY End General Obligation Bonds Certificates of Obligation 9-30 (GOs) (COs) Total 2019 15,043,965 10,284,850 25,328,814 2020 14,263,450 9,850,681 24,114,131 2021 13,930,960 9,057,981 22,988,941 2022 13,012,842 8,286,669 21,299,511 2023 11,721,321 6,816,394 18,537,714 2024 11,185,337 5,981,794 17,167,130 2025 10,297,714 5,794,044 16,091,757 2026 9,655,171 5,624,706 15,279,877 2027 9,084,052 5,461,350 14,545,402 2028 7,604,690 5,018,344 12,623,034 2029 6,420,349 4,389,822 10,810,171 2030 6,429,808 4,394,444 10,824,251 2031 6,112,528 4,335,213 10,447,741 2032 5,938,019 4,313,075 10,251,094 2033 5,728,422 4,293,478 10,021,900 2034 5,444,959 3,693,750 9,138,709 2035 5,174,469 3,190,797 8,365,266 2036 3,593,472 2,966,550 6,560,022 2037 2,515,491 2,725,675 5,241,166 2038 1,369,378 2,141,838 3,511,216 $ 164,526,395 $ 108,621,454 273,147,849

8 Tax Supported Debt ($)

30

25

20

15 GO Millions CO

10

5

- 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

Tax Supported Debt (%)

40%

GO CO

60%

9 City of Denton Total Annual Debt Service (Principal & Interest) - Revenue Supported Debt Fiscal Year Ending September 30, 2018

FY End General Obligation Bonds Certificates of Obligation Revenue 9-30 GOs COs Bonds Total 2019 23,665,908 41,201,958 10,685,000 75,552,866 2020 23,707,969 40,574,794 18,075,500 82,358,264 2021 19,961,411 38,738,082 18,076,750 76,776,243 2022 17,280,317 37,525,925 18,073,125 72,879,366 2023 12,031,201 35,477,406 18,073,625 65,582,232 2024 9,625,569 35,147,882 18,077,000 62,850,451 2025 6,830,129 35,102,607 18,077,125 60,009,861 2026 4,896,300 29,493,632 18,073,500 52,463,432 2027 4,438,525 29,291,703 18,075,875 51,806,103 2028 3,152,100 28,933,078 18,077,375 50,162,553 2029 1,929,825 28,879,115 18,075,750 48,884,690 2030 1,933,575 28,980,583 18,074,625 48,988,783 2031 - 24,878,043 18,077,375 42,955,418 2032 - 23,039,744 18,077,375 41,117,119 2033 - 20,474,825 18,073,125 38,547,950 2034 - 17,249,069 18,077,750 35,326,819 2035 - 15,843,531 18,074,375 33,917,906 2036 - 14,939,306 18,076,125 33,015,431 2037 - 13,780,781 18,075,875 31,856,656 2038 - 13,740,956 - 13,740,956 2039 - 13,761,881 - 13,761,881 2040 - 13,776,881 - 13,776,881 2041 - 13,779,188 - 13,779,188 2042 - 13,779,269 - 13,779,269 2043 - 13,778,544 - 13,778,544 2044 - 13,772,788 - 13,772,788 2045 - 10,404,397 - 10,404,397 2046 - 6,541,894 - 6,541,894 2047 - 3,544,500 - 3,544,500 $ 129,452,829 $ 656,432,359 $ 336,047,250 $ 1,121,932,438

10 Revenue Supported ($)

90

80

70

60

50 Revenue Bonds

Millions CO 40 GO

30

20

10

- 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047

Revenue Supported (%)

12%

30%

GO

CO

Revenue Bonds

58%

11 City of Denton Total Annual Debt Service (Principal & Interest) - General Government Fiscal Year Ending September 30, 2018

FY End 9-30 General Airport Water Park Warehouse Total 2019 24,424,215 792,635 62,625 49,339 25,328,814 2020 23,244,875 759,804 60,700 48,752 24,114,131 2021 22,119,582 762,923 58,500 47,936 22,988,941 2022 20,464,289 724,659 61,200 49,364 21,299,512 2023 17,803,225 686,259 - 48,230 18,537,714 2024 16,476,459 690,672 - - 17,167,130 2025 15,467,920 623,838 - - 16,091,757 2026 14,659,965 619,913 - - 15,279,877 2027 13,964,015 581,388 - - 14,545,402 2028 12,039,159 583,875 - - 12,623,034 2029 10,231,990 578,181 - - 10,810,171 2030 10,241,670 582,581 - - 10,824,251 2031 9,866,378 581,363 - - 10,447,741 2032 9,666,609 584,484 - - 10,251,094 2033 9,430,275 591,625 - - 10,021,900 2034 8,683,559 455,150 - - 9,138,709 2035 8,032,388 332,878 - - 8,365,266 2036 6,227,459 332,563 - - 6,560,022 2037 4,909,453 331,713 - - 5,241,166 2038 3,185,616 325,600 - - 3,511,216 $ 261,139,100 $ 11,522,102 $ 243,025 $ 243,621 $ 273,147,848

12 General Government ($)

30

25

20

Airport 15 Warehouse Millions Water Park General 10

5

- 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

General Government (%) 0.1% 0.1% 4.2%

Warehouse Water Park ; Airport General

95.6%

13 City of Denton Total Annual Debt Service (Principal & Interest) - Electric Fiscal Year Ending September 30, 2018

FY End General Obligation Bonds Certificates of Obligation Revenue 9-30 GOs COs Bonds Total 2019 8,936,950 27,377,620 10,685,000 46,999,570 2020 8,968,588 27,328,364 18,075,500 54,372,452 2021 8,219,550 27,289,126 18,076,750 53,585,426 2022 7,421,175 27,290,706 18,073,125 52,785,006 2023 5,834,175 27,339,188 18,073,625 51,246,988 2024 4,425,900 27,389,714 18,077,000 49,892,614 2025 1,678,250 27,435,989 18,077,125 47,191,364 2026 1,679,500 21,966,126 18,073,500 41,719,126 2027 1,355,250 22,004,106 18,075,875 41,435,231 2028 841,500 22,026,975 18,077,375 40,945,850 2029 - 22,022,988 18,075,750 40,098,738 2030 - 22,092,512 18,074,625 40,167,137 2031 - 19,541,081 18,077,375 37,618,456 2032 - 17,966,419 18,077,375 36,043,794 2033 - 16,381,572 18,073,125 34,454,697 2034 - 13,649,800 18,077,750 31,727,550 2035 - 13,661,981 18,074,375 31,736,356 2036 - 13,687,956 18,076,125 31,764,081 2037 - 13,714,481 18,075,875 31,790,356 2038 - 13,740,956 - 13,740,956 2039 - 13,761,881 - 13,761,881 2040 - 13,776,881 - 13,776,881 2041 - 13,779,188 - 13,779,188 2042 - 13,779,269 - 13,779,269 2043 - 13,778,544 - 13,778,544 2044 - 13,772,788 - 13,772,788 2045 - 10,404,397 - 10,404,397 2046 - 6,541,894 - 6,541,894 2047 - 3,544,500 - 3,544,500 $ 49,360,838 $ 527,046,999 $ 336,047,250 $ 912,455,087

14 Electric ($)

60

50

40

Revenue Bonds 30

Millions CO GO

20

10

- 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047

Electric (%)

5%

37%

GO CO Revenue Bonds

58%

15 City of Denton Total Annual Debt Service (Principal & Interest) - Water Fiscal Year Ending September 30, 2018

FY End General Obligation Bonds Certificates of Obligation Revenue 9-30 GOs COs Bonds Total 2019 9,972,081 2,728,114 - 12,700,195 2020 9,977,800 2,711,006 - 12,688,806 2021 8,167,800 2,702,756 - 10,870,556 2022 6,980,175 2,713,656 - 9,693,831 2023 4,703,800 2,713,631 - 7,417,431 2024 4,779,775 2,719,731 - 7,499,506 2025 4,793,250 2,715,206 - 7,508,456 2026 2,917,375 2,734,281 - 5,651,656 2027 2,917,875 2,741,290 - 5,659,165 2028 2,254,500 2,745,512 - 5,000,012 2029 1,929,825 2,733,300 - 4,663,125 2030 1,933,575 2,750,606 - 4,684,181 2031 - 1,763,506 - 1,763,506 2032 - 1,766,075 - 1,766,075 2033 - 1,327,238 - 1,327,238 2034 - 1,324,113 - 1,324,113 2035 - 700,700 - 700,700 2036 - 492,275 - 492,275 $ 61,327,831 $ 40,082,993 $ - $ 101,410,824

16 Water ($)

14

12

10

8

CO Millions 6 GO

4

2

- 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

Water (%)

40%

GO CO

60%

17 City of Denton Total Annual Debt Service (Principal & Interest) - Wastewater Fiscal Year Ending September 30, 2018

FY End General Obligation Bonds Certificates of Obligation Revenue 9-30 GOs COs Bonds Total 2019 4,044,644 2,813,423 - 6,858,067 2020 4,053,113 2,794,412 - 6,847,525 2021 2,875,925 2,476,137 - 5,352,062 2022 2,250,875 2,375,787 - 4,626,662 2023 1,071,125 2,370,787 - 3,441,912 2024 - 2,367,612 - 2,367,612 2025 - 2,364,912 - 2,364,912 2026 - 2,370,862 - 2,370,862 2027 - 2,370,062 - 2,370,062 2028 - 2,378,012 - 2,378,012 2029 - 2,336,512 - 2,336,512 2030 - 2,346,259 - 2,346,259 2031 - 2,015,312 - 2,015,312 2032 - 2,012,694 - 2,012,694 2033 - 1,509,709 - 1,509,709 2034 - 1,146,825 - 1,146,825 2035 - 694,050 - 694,050 2036 - 223,300 - 223,300 $ 14,295,681 $ 36,966,668 $ - $ 51,262,349

18 Wastewater ($)

7

6

5

4

CO Millions 3 GO

2

1

- 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

Wastewater (%)

28%

GO CO

72%

19 City of Denton Total Annual Debt Service (Principal & Interest) - Solid Waste Fiscal Year Ending September 30, 2018

FY End General Obligation Bonds Certificates of Obligation Revenue 9-30 GOs COs Bonds Total 2019 712,233 8,282,801 - 8,995,034 2020 708,469 7,741,013 - 8,449,482 2021 698,136 6,270,063 - 6,968,199 2022 628,092 5,145,776 - 5,773,867 2023 422,101 3,053,801 - 3,475,902 2024 419,894 2,670,826 - 3,090,719 2025 358,629 2,586,501 - 2,945,129 2026 299,425 2,422,363 - 2,721,788 2027 165,400 2,176,244 - 2,341,644 2028 56,100 1,782,579 - 1,838,679 2029 - 1,786,316 - 1,786,316 2030 - 1,791,207 - 1,791,207 2031 - 1,558,144 - 1,558,144 2032 - 1,294,556 - 1,294,556 2033 - 1,256,306 - 1,256,306 2034 - 1,128,331 - 1,128,331 2035 - 786,800 - 786,800 2036 - 535,775 - 535,775 2037 - 66,300 - 66,300 $ 4,468,479 $ 52,335,700 $ - $ 56,804,179

20 Solid Waste ($)

9

8

7

6

5 CO Millions 4 GO

3

2

1

- 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

Solid Waste (%)

8%

GO CO

92%

21

HOUSE BILL 1378 SECTION

22 City of Denton Summary of Debt Obligations Fiscal Year Ending September 30, 2018

TOTAL TAX-SUPPORTED AND REVENUE DEBT HB 1378 Calculation (1) City Calculation (2)

Total Authorized Debt Obligations $ 1,016,170,000 $ 1,016,170,000

Total Principal Of All Outstanding Debt Obligations $ 982,135,000 $ 982,135,000

Combined Principal And Interest Required To Pay All Outstanding Debt Obligations On Time And In Full $ 1,395,080,287 $ 1,395,080,287

TOTAL DEBT SECURED BY AD VALOREM TAXATION

Total Authorized Debt Obligations Secured By Ad Valorem Taxation $ 1,016,170,000 $ 242,882,936

Total Principal Of All Outstanding Debt Obligations Secured By Ad Valorem Taxation $ 982,135,000 $ 208,847,936

Combined Principal And Interest Required To Pay All Outstanding Debt Obligations Secured By Ad Valorem Taxation On Time And In Full $ 1,395,080,287 $ 273,147,848

PER CAPITA TOTAL DEBT SECURED BY AD VALOREM TAXATION

Total Authorized Debt Obligations Secured By Ad Valorem Taxation Expressed As A Per Capita Amount $ 7,995 $ 1,911

Total Principal Of Outstanding Debt Obligations Secured By Ad Valorem Taxation As A Per Capita Amount $ 7,728 $ 1,643 + Combined Principal And Interest Required To Pay All Outstanding Debt Obligations Secured By Ad Valorem Taxation On Time And In Full As A Per Capita Amount $ 10,977 $ 2,149

Population Total Used To Calculate Per Capita Figures 127,093 127,093

Source And Year of Data Used To Calculate Per Capita Figures City of Denton Planning City of Denton Planning Department, 2018 Department, 2018

(1) For all "Authorized Debt Obligations" amounts and calculations, the City has included all voted but unissued amounts and all amounts of debt that were authorized by the City Council to be issued, but, as of the end of the fiscal year remained unissued, as well as all outstanding debt as of the end of the fiscal year.

(2) City Calculation excludes general obligation debt issued for Enterprise Funds (Electric, Water, Wastewater and Solid Waste) since the City has paid that debt with revenues from each respective fund. General obligation debt is issued with a limited pledge of Utility System revenue for this purpose.

23 City of Denton Individual Debt Obligations Fiscal Year Ending September 30, 2018

Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated Current Credit Rating Obligations Issued Oustanding Principal & Interest Date Ad Valorem Taxes Received Spent Unspent Purpose Moody's S&P Fitch

Certificates of Obligation, $ 14,000,000.00 $ - $ - February 15, 2024 No $ 13,928,018.45 $ 13,928,018.45 $ - Proceeds from the sale of the Certificates will be used to pay the costs of (a) Aa2 AA+ Not Rated Series 2004 road and street improvements, including FM 2181, Spencer Road, State School Road and miscellaneous paving projects; (b) construction and equipping of a public safety training facility on Bonnie Brae Road; (c) improvement and equipping of the Emily Fowler Library; (d) improvement and equipping of the Civic Center; (e) improvements and equipment at the Denton Municipal Airport; (f) expansion and equipping of the Denton City Jail; (g) computer and technology equipment and upgrades for the City's information technology and communication systems; and (h) improvements to the City's solid waste disposal system and acquisition of related equipment; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection with said projects and the Certificates.

Certificates of Obligation, $ 7,145,000.00 $ - $ - February 15, 2025 No $ 7,082,370.20 $ 7,082,370.20 $ - Proceeds from the sale of the Certificates will be used to pay the costs of (a) Aa2 AA+ Not Rated Series 2005 road and street improvements; (b) construction and equipping of a new westside fire station No. 7; (c) purchase of vehicles for use by the City's public safety departments; and (d) improvements to the City's solid waste disposal system and acquisition of related equipment, and for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection with the Certificates.

Certificates of Obligation, $ 12,665,000.00 $ - $ - February 15, 2026 No $ 12,735,096.41 $ 12,735,096.41 $ - Proceeds from the sale of the Certificates will be used for the purchase, Aa2 AA+ Not Rated Series 2006 construction and acquisition of certain real and personal property, to wit: (a) road, street and parking improvements; (b) construction and equipping of fire station No. 7; (c) acquistion and installation of replacement heating venting and air condition equipment for City buildings; (d) improvements to the City's solid waste disposal system and acquisition of related equipment; (e) construction of a crematorium for the City's animal control department; (f) improvements to the municipal airport; (g) acquistion of vehicles and equipment for the City's motor pool; (h) construction of a multi-modal transit station and the acquisition of interests in land in connection with the constuction of such station; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection with the Certificates.

Certificates of Obligation, $ 7,065,000.00 $ - $ - February 15, 2017 Yes $ 7,131,492.75 $ 4,510,152.35 $ 2,621,340.40 Proceeds from the sale of the Certificates will be used for improvements to Aa2 AA+ Not Rated Series 2007A the City's drainage and storm sewer systems and acquisition of related equipment; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection with said Certificates.

24 City of Denton Individual Debt Obligations Fiscal Year Ending September 30, 2018

Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated Current Credit Rating Obligations Issued Oustanding Principal & Interest Date Ad Valorem Taxes Received Spent Unspent Purpose Moody's S&P Fitch Certificates of Obligation, $ 10,685,000.00 $ - $ - February 15, 2018 Yes $ 10,746,326.08 $ 10,712,325.52 $ 34,000.56 Proceeds from the sale of the Certificates will be used for (a) acquisition of Aa2 AA+ Not Rated Series 2008 land for, and design, construction and equipping of, a public safety radio antenna; (b) renovations and improvements to, and equipping of, existing municipal facilities, including City Hall East and City libraries; (c) improvements to the City's solid waste disposal system and acquisition of related equipment; (d) acquisition of land for, and design, construction and equipping of, animal shelter; (e) acquisition of vehicles and equipment for the City's motor pool; and (f) acquisition of land for and improvements to municipal parks; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, inlcluding engineers, architects, attorneys, map makers, auditors and financial advisors, in connection with the preparation of the City's master plan for downtown improvements, and with said Certficates of Obligation.

Certificates of Obligation, $ 44,675,000.00 $ 28,730,000.00 $ 38,098,509.46 February 15, 2032 Yes $ 48,950,741.64 $ 48,950,741.64 $ - Proceeds from the sale of the Certificates will be used for (a) acquisition of Not Rated AA+ AA+ Series 2012 vehicles and equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's solid waste disposal system; (b) renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating, venting and air conditioning equipment and flooring; (c) acquisition of vehicles and equipment for the fire, police, streets and traffic control, facilities management, and parks and recreation departments; (d) constructing and improving streets, including installation of traffic signals; (e) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's waterworks and sewer system; (f) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's electric light and power system; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection the design of an animal shelter and with said projects and said Certificates

25 City of Denton Individual Debt Obligations Fiscal Year Ending September 30, 2018

Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated Current Credit Rating Obligations Issued Oustanding Principal & Interest Date Ad Valorem Taxes Received Spent Unspent Purpose Moody's S&P Fitch Certificates of Obligation, $ 63,520,000.00 $ 46,230,000.00 $ 58,907,025.00 February 15, 2033 Yes $ 67,807,600.00 $ 66,833,605.25 $ 973,994.75 Proceeds from the sale of the Certificates will be used for (a) acquisition of Not Rated AA+ AA+ Series 2013 vehicles and equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's solid waste disposal system, including the acquisition of land for the City landfill; (b) renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating, venting and air conditioning equipment, roofing and flooring; (c) acquisition of vehicles and equipment for the fire, police, building inspections, animal services, streets and traffic control, facilities management, and parks and recreation departments; (d) constructing and improving streets, including installation of traffic signals; (e) acquisition ofland for the municipal airport; (t) acquiring, constructing, installing and equipping a public safety training facility; (g) acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to existing fire stations, (h) acquiring, constructing, installing and equipping two animal shelters; (i) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's waterworks and sewer system; and G) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's electric light and power system; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attomeys, map makers, auditors, and financial advisors, in connection with said projects and said Certificates.

26 City of Denton Individual Debt Obligations Fiscal Year Ending September 30, 2018

Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated Current Credit Rating Obligations Issued Oustanding Principal & Interest Date Ad Valorem Taxes Received Spent Unspent Purpose Moody's S&P Fitch Certificates of Obligation, $ 89,180,000.00 $ 77,395,000.00 $ 117,508,256.25 February 15, 2044 Yes $ 93,781,044.89 $ 85,788,277.09 $ 7,992,767.80 Proceeds of the sale of the Certificates will be used (a) acquisition of vehicles Not Rated AA+ AA+ Series 2014 and equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's solid waste disposal system, including the acquisition of land for the City landfill; (b) renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating, venting and air conditioning equipment, roofing and flooring; (c) acquisition of vehicles and equipment for the fire, police, building inspections, animal services, streets and traffic control, facilities management, and parks and recreation departments; (d) constructing and improving streets, including installation of traffic signals; (e) acquiring, constructing, installing and equipping hangars for the municipal airport; (f) acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to the Civic Center Pool facilities; (g) acquiring, constructing, installing and equipping replacement facility for Fire Station Number 2, including related site preparation; (h) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's waterworks and sewer system; (i) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's electric light and power system; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection with said projects and said Certificates.

27 City of Denton Individual Debt Obligations Fiscal Year Ending September 30, 2018

Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated Current Credit Rating Obligations Issued Oustanding Principal & Interest Date Ad Valorem Taxes Received Spent Unspent Purpose Moody's S&P Fitch Certificates of Obligation, $ 93,015,000.00 $ 82,690,000.00 $ 130,692,442.00 February 15, 2045 Yes $ 97,983,335.00 $ 91,801,511.70 $ 6,181,823.30 Proceeds of the sale of the Certificates will be used (a) acquisition of vehicles Not Rated AA+ AA+ Series 2015 and equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's solid waste disposal system, including the acquisition of land for the City landfill; (b) renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating, venting and air conditioning equipment, oofing and flooring; (c) acquisition of vehicles and equipment for the fire, police, building inspections, animal services, streets and traffic control, facilities management, and parks and recreation departments; (d) acquiring, constructing, installing and equipping parking facilities; (e) acquisition of land and buildings to be used for administration facilities and/or park purposes; (f) acquiring, onstructing, installing and equipping additions, extensions, enovations and improvements to the Civic Center Pool facilities; and (g) acquiring, constructing, installing and equipping replacement facility for Fire Station Number 2, including related site preparation, and acquiring, constructing, installing and equipping a new fire tation, including the acquisition of land therefor; (h) acquisition of vehicles and equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's waterworks and sewer system; and (i) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's electric light and power system, and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection with said projects and said Certificates.

General Obligation $ 37,640,000.00 $ 33,605,000.00 $ 43,235,795.00 February 15, 2035 Yes $ 23,013,424.58 $ 14,703,739.65 $ 8,309,684.93 Proceeds of the Bonds are expected to be used (i) to refund certain Not Rated AA+ AA+ Refunding and outstanding obligations of the City for debt service savings; (ii) for street Improvement Bonds, Series improvements, public safety facilities improvements, stormwater drainage 2015 and flood control improvements, and park system improvements, and (iii) to pay the costs associated with the issuance of the Bonds.

28 City of Denton Individual Debt Obligations Fiscal Year Ending September 30, 2018

Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated Current Credit Rating Obligations Issued Oustanding Principal & Interest Date Ad Valorem Taxes Received Spent Unspent Purpose Moody's S&P Fitch Certificates of Obligation, $ 83,305,000.00 $ 77,345,000.00 $ 118,231,390.89 February 15, 2046 Yes $ 92,340,554.08 $ 77,111,960.48 $ 15,228,593.60 Proceeds from the sale of the Certificates will be used (a) acquisition of Not Rated AA+ AA+ Series 2016 vehicles and equipment for, and acquiring, constructing , installing and equipping additions, extensions, renovations and improvements to, the City's solid waste disposal system, including the acquisition of land for the City landfill; (b) renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating, venting and air conditioning equipment, roofing and flooring; (c) acquisition of vehicles and equipment for the fire, police, building inspections, community improvement services , animal services, streets and traffic control , facilities management, and parks and recreation departments; (d) acquiring , constructing , installing and equipping additions, extensions, renovations and improvements to parking facilities; (e) constructing and improving streets, including landscaping, drainage, utility line relocations and the acquisition of land and rights-of-way therefor; (f) acquiring, constructing, installing and equipping a new fire training facility; and (g) acquisition of land for a new fire station; (h) acquisition of vehicles and equipment for, and acquiring, constructing , installing and equipping additions, extensions, renovations and improvements to, the City's waterworks and sewer system; and (i) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's electric light and power system, and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors , and financial advisors, in connection with said projects and said Certificates.

General Obligation $ 28,930,000.00 $ 27,430,000.00 $ 35,362,975.00 February 15, 2036 Yes $ 16,915,296.52 $ 6,365,664.97 $ 10,549,631.55 Proceeds of the Bonds are expected to be used (i) to refimd certain Not Rated AA+ AA+ Refunding and outstanding obligations of the City for debt service savings; (ii) for street Improvement Bonds, Series improvements, public safety facilities improvements, stormwater drainage 2016 and flood control improvements, and park system improvements , and (iii) to pay the costs associated with the issuance of the Bonds.

Utility System Revenue $ 214,890,000.00 $ 214,890,000.00 $ 336,047,250.00 December 1, 2037 No $ 246,164,298.03 $ 217,810,705.61 $ 28,353,592.42 Proceeds from the sale of the Series 2017 Bonds will be used to (a) acquire Not Rated AA- A+ Bonds, Series 2017 and construct additions and improvements to the City's electric light and power system including new quick start peak power generation facilities; (b) fund capitalized interest on the Series 2017 Bonds; and (c) pay the costs of issuance in connection with the issuance of the Series 2017 Bonds.

29 City of Denton Individual Debt Obligations Fiscal Year Ending September 30, 2018

Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated Current Credit Rating Obligations Issued Oustanding Principal & Interest Date Ad Valorem Taxes Received Spent Unspent Purpose Moody's S&P Fitch Certificates of Obligation, $ 90,800,000.00 $ 86,860,000.00 $ 135,898,850.00 February 15, 2047 Yes $ 98,365,003.11 $ 43,765,106.65 $ 54,599,896.46 Proceeds from the sale of the Certificates will be used for (a) acquisition of Not Rated AA+ AA+ Series 2017 vehicles and equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's solid waste disposal system; (b) renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating, venting and air conditioning equipment, roofing and flooring; (c) acquisition of vehicles and equipment for the fire, police, building inspections, community improvement services, animal services, streets and traffic control, facilities management, and parks and recreation departments; (d) acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to parking facilities; (e) constructing and improving streets, including landscaping, drainage, utility line relocations and the acquisition of land and rights-of-way therefor; (f) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's electric light and power system; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection with said projects and said Certificates.

General Obligation $ 29,105,000.00 $ 24,975,000.00 $ 31,269,884.59 February 15, 2037 Yes $ 17,294,870.71 $ 473,355.65 $ 16,821,515.06 Proceeds of the Bonds are expected to be used (i) to refund certain Not Rated AA+ AA+ Refunding and outstanding obligations of the City described on Schedule I attached hereto Improvement Bonds, Series (the "Refunded Obligations") for debt service savings; (ii) for street 2017 improvements and public safety facilities improvements, and (iii) to pay the costs associated with the issuance of the Bonds.

General Obligation $ 19,235,000.00 $ 19,235,000.00 $ 27,407,747.52 February 15, 2038 Yes $ 19,871,127.54 $ - $ 19,871,127.54 Proceeds of the Bonds are expected to be used (i) street improvements, Not Rated AA+ AA+ Refunding Bonds, Series storm water drainage and flood control 2018 improvements, and park system improvements; and (ii) to pay the costs associated with the issuance of the Bonds.

Certificates of Obligation, $ 9,555,000.00 $ 9,555,000.00 $ 12,351,476.95 February 15, 2038 Yes $ 10,020,369.57 $ 3,588,261.08 $ 6,432,108.49 Proceeds will be used for (a) renovations to, and equipping of, existing Not Rated AA+ AA+ Series 2018 municipal buildings, including the acquisition and installation of replacement heating, venting and air conditioning equipment, roofing and flooring; (b) acquisition of vehicles and equipment for the fire, police, building inspections, community improvement services, animal services, streets and traffic control, facilities management, and parks and recreation departments; (c) acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to runways and taxiways at the municipal airport; and (d) acquiring, constructing, renovating, installing and equipping fire stations, including the acquisition of land therefor: and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection with said projects and the Certificates (see "Plan of Financing").

30 City of Denton Individual Debt Obligations Fiscal Year Ending September 30, 2018

Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated Current Credit Rating Obligations Issued Oustanding Principal & Interest Date Ad Valorem Taxes Received Spent Unspent Purpose Moody's S&P Fitch Certificates of Obligation, $ 29,545,000.00 $ 29,545,000.00 $ 42,107,314.27 September 30, 2038 Yes $ 31,802,096.74 $ 1,410,400.07 $ 30,391,696.67 Proceeds from the sale of the Certificates will be used for (a) renovating, Not Rated AA+ AA+ Series 2018A constructing, expanding, improving and equipping existing municipal service center building; (b) constructing and improving streets, including landscaping, drainage, utility line relocations and the acquisition of land and rights-of-way therefor; (c) constructing, reconstructing and improving vehicle roadways at the municipal airport; (d) acquiring, constructing, installing and equipping fire stations, including the acquisition of land therefor; (e) acquiring, constructing, installing and equipping a public safety facility for the police department, including the acquisition of land therefor; (acquiring and installing a radio communications system for the City; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors.

TOTAL $ 884,955,000.00 $ 758,485,000.00 $ 1,127,118,916.93 $ 915,933,066.30 $ 707,571,292.77 $ 208,361,773.53

31 The HB 1378 Section of the Annual Debt Report contains terminology provided by the Texas Comptroller’s Office. To assist the reader of this document in understanding these terms, a glossary of terms has been included in the document as provided by the Texas Comptroller’s Office.

Political Subdivision. Political subdivisions are counties, municipalities, school districts, junior college districts, other special districts, or other subdivisions of state government.

Total Authorized Debt Obligations. Debt obligations are defined in the bill as issued public securities which are instruments, including bonds, certificates, notes, or other types of obligations authorized to be issued by an issuer under a statute, a municipal home-rule charter, or the constitution of this state. Issuance is the process of authorizing, selling and delivering public debt. Public security authorization means a resolution, order or ordinance that is approved or adopted, or any other action taken in a proceeding, by the governing body of an issuer in authorizing the issuance of a public security.

Total Principal of all Outstanding Debt Obligations. Total amount borrowed (par) of all obligations that have yet to be repaid.

Combined Principal and Interest required to pay all Outstanding Debt Obligations on time and in full. Total amount borrowed (par) that has yet to be repaid plus the cost of interest.

Total Authorized Debt Obligations Secured by Ad Valorem Taxation. Total debt obligations secured by a pledge of property taxes.

Total Principal of all Outstanding Debt Obligations secured by Ad Valorem Taxation. Total amount borrowed (par) of obligations secured by a pledge of property taxes that have yet to be repaid.

Combined Principal and Interest required to pay all Outstanding Debt Obligations secured by Ad Valorem Taxation on time and in full. Total amount borrowed (par) of all property tax-secured obligations plus the cost of interest.

Total Authorized Debt Obligations secured by Ad Valorem Taxation expressed as a Per Capita Amount. Total authorized debt obligations secured by a pledge of property taxes divided by the population of the political subdivision.

Total Principal of Outstanding Debt Obligations secured by Ad Valorem Taxation as a Per Capita Amount. Total amount borrowed (par) secured by a pledge of property taxes divided by the population of the political subdivision.

Combined Principal and Interest required to pay all Outstanding Debt Obligations secured by Ad Valorem Taxation on time and in full as a Per Capita Amount. Total debt obligations secured by a pledge of property taxes plus the cost of debt service on these obligations divided by the population of the political subdivision.

Population total used to calculate per capita figures. The denominator used to calculate per capita figures. This is a population total for the political subdivision.

Source and Year of population figure used to calculate Per Capita figures. The source of population data comprising the denominator of per capita figures.

Outstanding Debt Obligation. An issued public security that has yet to be repaid.

Conduit or Component Debt. Debt that is not a legal liability of the political subdivision but is secured by another entity.

32 Principal Issued. Total amount borrowed (par).

Principal Outstanding. Total amount borrowed (par) of obligation that has yet to be repaid.

Combined principal and interest required to pay each Outstanding Debt Obligation on time and in full. The total amount borrowed (par) plus the cost of interest for each individual debt obligation or bond series.

Final Maturity Date. The final payment date of individual debt obligation at which point all principal and interest will be paid off.

Secured in any way by Ad Valorem Taxes. Indicates which individual debt obligations are in part or whole pledged with property taxes.

Total Proceeds Received. Total assets received from the sale of a new issue of public securities.

Proceeds Spent. The portion of total proceeds received that have been spent.

Proceeds Unspent. The portion of total proceeds received that are remaining to be spent.

Official stated purpose for which the debt obligation was authorized. The reason for the debt issuance as defined in ballot language, if applicable, or the Official Statement.

Current Credit Rating. Existing rating given by any nationally recognized credit rating organization to debt obligations.

33 Date: March 8, 2019 Report No. 2019-040

INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL

SUBJECT: Update to the Water Conservation and Drought Contingency Plan.

EXECUTIVE SUMMARY: Due to limited water resources available within the state, the Texas Water Development Board (TWDB) requires the City of Denton to update its Water Conservation and Drought Contingency Plan prior to May 1, 2019. The plan was last updated in 2014 and adopted by way of Ordinance 2014-109. Staff has drafted minor changes to this plan and seeks review and direction from the Public Utility Board.

BACKGROUND: Denton’s first formal Water Conservation Plan was adopted in 2000 following criteria from the Texas Natural Resources Conservation Commission (TNRCC). An update was adopted in 2005 following Texas Commission on Environmental Quality (TCEQ) rules which provided further planning direction. In 2009, TWDB rules required public utilities which provide water service to 3,300 or more connections to adopt such a plan at that time and once every five years thereafter. Subsequent TWDB rules required any entity with surface water rights to do the same, and Denton updated its plan accordingly in 2009, 2011, and 2014. An update to the plan is due on May 1, 2019 in accordance with TWDB rules.

As a part of staff’s update to the Water Conservation Plan, the per capita water demand goals were updated using a five-year rolling average Gallons Per Capita per Day (GPCD) method, calculating total water produced from Denton’s two water production plants. The ideal target discussed by the State is 140 GPCD, which is considered aggressive for our climate and environment. Denton reached this target in its current 5-year average, however wet weather significantly influenced water use during these years. Staff has reviewed Denton’s water demand patterns and recommended goals for future water demand.

Staff reviewed all Best Management Practices (BMPs) set forth by the TWDB. Many BMPs were included in previous iterations of the plan and have been maintained. Staff identified BMPs that Denton could implement to further improve water conservation efforts.

Historically, Denton’s Drought Contingency Plan has maintained consistency with Dallas’s Drought Contingency Plan due to our shared interest in two lakes and Dallas’s influence through their public outreach programs. The 2019 update of Denton’s plan seeks the same consistency.

DISCUSSION: The 2014 Water Conservation Plan set a goal of reaching 152 GPCD by 2024. Staff elected to retain this goal and extend it to 2029, determining that this is the lowest demand that can be reasonably achieved in a normal weather year. Staff notes that the current five-year average exceeds this goal at 140GPCD, however this trend has been significantly influenced by wet

Date: March 8, 2019 Report No. 2019-040

weather patterns during this time period. Staff expects demand to increase to 152GPCD and hold for a ten-year window.

Staff recommends the following BMPs to be included in the Water Conservation Plan:

- Implement a water audit program for industrial and commercial programs. For many years, Denton has offered water audit programs to residential customers on request. A water audit identifies potential areas of water waste at a residence, including service line and toilet leaks, sprinkler configuration, and appliance efficiency, allowing customers to make voluntary changes to save water. A similar approach can be taken for large industrial customers and offers significant potential for demand reduction.

- Implement a golf course conservation initiative to ensure these large water users take reasonable steps toward conserving water. Currently all golf courses in Denton comply with this. The Oakmont Country Club uses water supplied by Denton’s direct reuse system, and Robson Ranch is supplied locally by well water, reducing water demand from Lake Lewisville and Lake Ray Roberts.

- Pursue partnerships with non-profit organizations to aid outreach efforts. The City has working relationships with multiple non-profits in the area, and many are already geared toward a conservation message. Staff will continue to pursue relationships with non- profit organizations that can help us spread information about water conservation.

The Water Conservation Plan includes a Drought Contingency Plan. This is enacted during times of particular need for water conservation. When enacted, the Drought Contingency Plan creates new restrictions on water usage. Most notably, irrigation is limited to two days per week during Stage One, one day per week during Stage Two, and is restricted entirely during Stage Three. To avoid conflicting messages when nearby cities are also under drought restrictions, these restrictions align with Dallas’s Drought Contingency Plan. Additional water use restrictions are enumerated within the plan.

The Drought Contingency Plan is enacted at the Director’s discretion when specific trigger conditions are met. Triggers include reduced lake levels (Type A), inability to deliver peak water demand (Type B), and other extenuating circumstances (Type C). Most commonly, drought contingency plans are enacted under Type A triggers. Since Denton shares water rights with Dallas in both Lake Lewisville and Lake Ray Roberts, Dallas’s connected lake system drives Type A triggers. Type A triggers are consistent with Dallas’s triggers. A public information meeting will be held on March 14th from 6pm to 8pm at the Denton Civic Center to discuss the Drought Contingency Plan.

CONCLUSION: Draft updates to the Water Conservation and Drought Contingency Plan are attached to this report. Staff will receive comments on this draft then request approval of this plan by way of ordinance.

Date: March 8, 2019 Report No. 2019-040

ATTACHMENT(S): 2019 DRAFT Water Conservation and Drought Contingency Plan

STAFF CONTACT: Tyler Dawson Water and Wastewater Field Service Technical Manager 940-379-8944 [email protected]

Date: March 8, 2019 Report No. 2019-040

Water Conservation and Drought Contingency Plan City of Denton

CITY OF DENTON

Water Conservation Plan

April 2019

1. INTRODUCTION AND OBJECTIVES Water supply has always been a key issue in the development of Texas. In recent years, the increasing population and economic development in Region C have led to growing demands for water. Additional supplies to meet higher demands will be expensive and difficult to develop. Therefore, it is important that we make efficient use of existing supplies and make them last as long as possible. This will delay the need for new supplies, minimize the environmental impacts associated with developing new supplies, and delay the high cost of additional water supply development.

Recognizing the need for efficient use of existing water supplies, the Texas Commission on Environmental Quality (TCEQ) has developed guidelines and requirements governing the development of water conservation and drought contingency plans for public water suppliers.1 The TCEQ guidelines and requirements for water suppliers are included in Appendix B. The City of Denton has adopted this water conservation and drought contingency plan pursuant to TCEQ guidelines and requirements.

The objectives of the water conservation plan are:

 To reduce water consumption.  To reduce the loss and waste of water.  To identify the level of water reuse.  To improve efficiency in the use of water.  To extend the life of current water supplies by reducing the rate of growth in demand.

The objectives of the drought contingency plan are:

 To conserve the available water supply in times of drought and emergency.  To maintain supplies for domestic water use, sanitation, and fire protection.  To protect and preserve public health, welfare, and safety.  To minimize the adverse impacts of water supply shortages.  To minimize the adverse impacts of emergency water supply conditions. Water Conservation and Drought Contingency Plan City of Denton

2. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY RULES 2.1 Conservation Plans The TCEQ rules governing development of water conservation plans for public water suppliers are contained in Title 30, Part 1, Chapter 288, Subchapter A, Rule 288.2 of the Texas Administrative Code, which is included in Appendix B. For the purpose of these rules, a water conservation plan is defined as:

“A strategy or combination of strategies for reducing the volume of water withdrawn from a water supply source, for reducing the loss or waste of water, for maintaining or improving the efficiency in the use of water, for increasing the recycling and reuse of water, and for preventing the pollution of water. A water conservation plan may be a separate document identified as such or may be contained within another water management document(s).”1

According to TCEQ rules, water conservation plans for public water suppliers must have a certain minimum content (Section 3), must have additional content for public water suppliers that are projected to supply 5,000 or more people in the next ten years (Section 4), and may have additional optional content (Section 5).

2.2 Drought Contingency Plans The TCEQ rules governing development of drought contingency plans for public water suppliers are contained in Title 30, Part 1, Chapter 288, Subchapter B, Rule 288.20 of the Texas Administrative Code, which is included in Appendix B. The rules for wholesale water suppliers are contained in Rule 288.22, included in Appendix B. For the purpose of these rules, a drought contingency plan is defined as:

“A strategy or combination of strategies for temporary supply and demand management responses to temporary and potentially recurring water supply shortages and other water supply emergencies. A drought contingency plan may be a separate document identified as such or may be contained within another water management document(s).”1

The drought contingency plan for the City of Denton is contained in Section 6 of this water conservation and drought contingency plan. Water Conservation and Drought Contingency Plan City of Denton

3. MINIMUM REQUIRED WATER CONSERVATION PLAN CONTENT The minimum requirements in the Texas Administrative Code for water conservation plans for public drinking water suppliers covered in this report are as follows:

 288.2(a)(1)(A) – Utility Profile – Section 3.1 and Appendix C  288.2(a)(1)(B) – Specification of Goals Before May 1, 2005 – Section 3.2  288.2(a)(1)(C) – Specification of Goals After May 1, 2005 – Section 3.2  288.2(a)(1)(D) – Accurate Metering – Sections 3.3 and 3.4  288.2(a)(1)(E) – Universal Metering – Section 3.4  288.2(a)(1)(F) – Determination and Control of Unaccounted Water – Section 3.5  288.2(a)(1)(G) – Public Education and Information Program – Section 3.6  288.2(a)(1)(H) – Non-Promotional Water Rate Structure – Section 3.7  288.2(a)(1)(I) – Reservoir System Operation Plan – Section 3.8  288.2(a)(1)(J) – Means of Implementation and Enforcement – Section 3.9, Appendix D  288.2(a)(1)(K) – Coordination with Regional Water Planning Group – Section 3.10 and Appendix E

TCEQ places additional requirements on wholesale water suppliers in Title 30, Part 1, Chapter 288, Subchapter B, Rule 288.5 of the Texas Administrative Code. This Rule is included in Appendix B.

TCEQ’s minimum requirements for water conservation plans are addressed in the following subsections of this report:

 288.5(1)(C) – Maximum Acceptable Unaccounted-For Water Goal – Section 3.5

3.1 Utility Profile Appendix C to this water conservation plan is a water utility profile for the City of Denton, based on the format recommended by the TCEQ.2

Water Conservation and Drought Contingency Plan City of Denton

3.2 Specification of Water Conservation Goal Specific elements of the Water Conservation Plan are discussed in the subsequent sections of this document. The development of this plan involved the identification and examination of numerous conservation strategies. The conservation strategies chosen for the plan were derived from numerous sources including state agency recommendations, the Region C planning group, water conservation literature, and the City’s existing Water Conservation Plan.

Prior to 2019, Denton’s water conservation goal was a 15 percent reduction in per capita water use by 2050. This goal was established in Denton’s Water Conservation and Drought Contingency Plan adopted December 7, 1999.

The City’s water conservation goals after May 1, 2005 include the following:

 Achieve 2024 per capita water use of 152 gpcd or less, as shown in Table 3-2 (five-year target). This represents a reduction of 37 gpcd from year 2000 per capita water use.  Achieve 2029 per capita water use of 152 gpcd or less, as shown in Table 3-2 (ten-year target). This represents a reduction of 37 gpcd from year 2000 per capita water use.

The City’s conservation goal was articulated in 2005 as a one percent reduction yearly in per-capita usage for ten years. This goal was based on: 1) per-capita reduction goals recommended by the Texas Water Development Board’s Task Force on Water Conservation; and 2) an indication in recent data that per capita water demand had started to decline. However, weather patterns over the same period of time were such that declining per capita consumption may have been weather related.

Denton’s specific goal was mildly exceeded, with a per-capita savings by 2008 of 10 gpcd. This savings is a reflection of the effects of conservation programs referenced above as well as weather variability during years pasted.

Water Conservation and Drought Contingency Plan City of Denton

Unit Unit 2009 2014 2019 2024 2029 City of Denton 111,814 120,820 133,610 147,516 162,870 Population Gallons PerCapita per gpcd 160 158 140 152 152 Day Residential Gallons Per- gpcd 70 70.3 58.3 69 69 Capita per Day Savings from Low-Flow Fixtures and Federal gpcd 5 5 Clothes Washer Standard Savings from gpcd 2.5 2.5 Conservation Measures Savings from Reuse gpcd .5 .5 Projected Per-Capita gpcd 8 8 Savings Projected Per-Capita percent 5% 5% Reduction Actual Per-Capita gpcd 9 2 18 Savings Actual Per-Capita percent 15.4% 1.25% 11.4% Reduction

Water Conservation and Drought Contingency Plan City of Denton

3.3 Accurate Metering of Raw Water Supplies and Treated Water Deliveries The City of Denton meters all raw water diversions from Lake Lewisville and Lake Ray Roberts to each of the Water Treatment Plants. The City of Denton also meters all treated water deliveries to the distribution system from each water treatment plant. Each meter has an accuracy of plus or minus one percent. The meters are calibrated on a semiannual basis by City of Denton personnel to maintain the required accuracy and are repaired or replaced as needed. Replaced two of 4 in that last few years and two more are coming. Raw meters were replaced in 2018 Raw RR replaced on 5-22 and finished on 12-10. Lewisville plans to replace their soon.

3.4 Metering of Customer and Public Uses and Meter Testing, Repair, and Replacement Water usage for all customers of the City of Denton, including public and governmental use, is metered. As part of the water conservation plan, the City of Denton will continue to implement a meter replacement program. Denton Water Utility (DWU) staff conducted an extensive study in 2004 in which over 2,000 water meters were bench tested for accuracy. Throughout the years since this study was conducted, it has been updated and to date holds validity in results. In addition a cost-benefit analysis was conducted in order to maximize the efficiency of the meters versus the costs of the replacement program. Based on the study, ¾ to 2-inch meters are replaced on a twelve- to fourteen-year cycle. The program focused on replacing the oldest meters in the system first. From 2009 to 2013 DWU has replaced meters to meet the twelve- to fourteen-year cycle. Meters that are 3-inch or larger are tested every year and repaired or replaced as necessary.

In addition, meters registering any unusual or questionable readings are automatically flagged in the billing process and be tested and repaired to restore full functionality.

3.5 Determination and Control of Water Loss The amended 2003, Texas Water Code (Chapter 16.0121) requires that DWU (a retail public utility that provides potable water) to file an annual audit of system water loss. DWU continues to follow annually in compliance with the TWC.

DWU staff performs a yearly water audit, using the International Water Association/ American Water Works Association (IWA/AWWA) method required by the TWDB. DWU staff has been conducting water audits since the early 1990s. Historically, the City of Denton’s non-revenue water, has always been below the AWWA goal. The City of Denton unaccounted-for water is also below the national average and the 2017 Water Conservation and Drought Contingency Plan City of Denton

Texas average. The City of Denton’s system has always met the suggested targets of the newer IWA/AWWA methodology as specified by the TWDB Task Force on water conservation.

The City of Denton will continue to conduct annual water audits using the IWA/AWWA methodologies.

Non-revenue water for the City of Denton has varied from 3.3 percent to 7.5 percent in the last five years, with the highest value still under review regarding accuracy of a source meter. Previous audits led to the discovery and correction of a systematic source metering error at the Ray Roberts Water Treatment Plant. Staff will continue to conduct comprehensive water audits annually and take appropriate measure to minimize system water loss.

3.6 Public Education and Information; Partnerships with Non-profits The City of Denton continues to have an active role in the education of water conservation with several methods of outreach and public information. Along with their Partnerships with Non-Profits, they execute campaigns throughout the year(s) to spread information on conservation. The continuing public education and information campaign and the partnerships with Non-Profit organizations on water conservation includes the following elements:

 Promote the City’s water conservation measures (presented in Sections 3, 4, and 5).  Encourage voluntary twice-a-week watering schedule for landscape.  Include inserts on water conservation with water bills at least twice per year. Inserts will include material developed by City of Denton staff and material obtained from the TWDB, the TCEQ, and other sources that pertain to water conservation, irrigation conservation, and protecting pipes from freezing.  Encourage local media coverage of water conservation issues and the importance of water conservation.  Make the Texas Smartscape materials, water conservation brochures, and other water conservation materials available to the public at the City of Denton Utility Department, other City facilities, and at special events.  Make information pertaining to water conservation and irrigation conservation available online at www.sustainabledenton.com and include links to the Texas Smartscape website and to information relating to water conservation on the TWDB and TCEQ web sites.  Provide a Xeriscape class once a year to promote conservation landscaping and conservation irrigation practices. Water Conservation and Drought Contingency Plan City of Denton

 Encourage attendance at Texas A&M Water University water classes. Offered options include Rain barrel and Drip irrigation classes.  Promote and educate with non-profit conservation partners such as Master Naturalist, Master Gardeners, and Natural Plant Society, organizations that actively hold informational and educational meetings and volunteer opportunities regularly within our community.  Offer presentations to local organizations, schools, and civic groups on the importance of water conservation and ways to save water.

3.7 Non-Promotional Water Rate Structure With the intent of encouraging water conservation and discouraging waste and excessive use of water, the City of Denton adopted an increasing block (inverted-block) rate in 1998. In an inverted-block structure the unit price of water increases with increasing water use.

The City of Denton employs an inverted-block rate from May through October. The structure consists of four blocks (Table 5-2). The first block provides enough water to cover a typical household’s water usage, which includes a moderate amount for irrigation. The second, third, and fourth blocks are designed to curb discretionary and seasonal outdoor water use. The inverted-block structure only applies to residential customers. DWU bills commercial customers on a flat rate, but has implemented seasonal pricing on commercial irrigation meters to curb summer peak demand.

TABLE 2 DWU Residential Block Rate Structure per thousand gallons Less than 15,000 gals $4.15 15,001 – 30,000 gals $5.90 30,000-50,000 gals $8.15 More than 50,000 gals $10.90

TABLE 3 DWU Seasonal Commercial Irrigation Rates Winter (November-April) Summer (May-October) $4.45 per thousand gallons $6.15 per thousand gallons

Water Conservation and Drought Contingency Plan City of Denton

3.8 Reservoir System Operation Plan The City of Denton has the right to divert water from Lake Lewisville and Lake Ray Roberts, which we limit to firm yield calculations as follows:

 19.76 MGD from Lake Ray Roberts  4.34 MGD from Lake Lewisville

The City of Denton is the minority water right holder in both reservoirs. The current agreement with the City of Dallas (majority water right holder) delegates comprehensive coordination of reservoir management to the City of Dallas.

3.9 Implementation and Enforcement of the Water Conservation Plan Appendix D contains a copy of the resolution of the City of Denton City Council adopting this water conservation and drought contingency plan. The resolution designates responsible officials to implement and enforce the water conservation and drought contingency plan.

3.10 Coordination with Regional Water Planning Group The City of Denton will provide a copy of this water conservation and drought contingency plan to the Region C Water Planning Group, which is currently developing the Regional Water Plan. Appendix E includes a copy of a letter sent to the Chair of the Region C Water Planning Group.

Water Conservation and Drought Contingency Plan City of Denton

4. ADDITIONAL REQUIRED WATER CONSERVATION PLAN CONTENT

The Texas Administrative Code also includes additional requirements for water conservation plans for public drinking water suppliers that serve a population of 5,000 people or more and/or a projected population of 5,000 people or more within the next 10 years:

 §288.2(a)(2)(A) – Leak Detection, Repair, and Water Loss Accounting – Sections 3.5, 4.1, and 5.5  §288.2(a)(1)(B) – Record Management System – Section 4.2  §288.2(a)(2)(C) – Requirement for Water Conservation Plans by Wholesale Customers – Section 4.3

4.1 Leak Detection and Repair; Pressure Control Measures to control unaccounted-for water are part of the routine operations of the City of Denton. Meter readers, water and wastewater utility personnel, and the public report leaks in the system. Maintenance crews are on-call 24-hours a day and respond quickly to repair reported leaks. DWU has invested in leak detection and correlator equipment that helps in identifying more leaks and locating leaks more accurately for repair.

The City of Denton also proactively decreases water loss through the waterline replacement program. The City of Denton spends approximately 2 million per year to replace water distribution lines with two construction and maintenance crews. Areas of the water distribution system in which numerous leaks and line breaks occur are targeted for replacement.

DWU will continue analysis on the life cycle of transmission lines. These pipes have an assumed lifespan of 75 years, however the role of these lines within the distribution system makes them critical. The DWU will assess the current condition of existing transmission lines, research pipe maintenance history, and review published research. As a result, DWU will revise the replacement schedule for all existing transmission lines. This is expected to reduce water loss from main breaks by better estimating end of useful live.

To reduce real water losses, the City of Denton will maintain a proactive water loss program. As part of this program, the City will implement the following actions:

 Continue to implement the waterline replacement program.  Conduct an analysis to revise the replacement schedule of transmission lines.  Conduct regular inspections of all water main fittings and connections during periods of maintenance and repair. Water Conservation and Drought Contingency Plan City of Denton

4.2 Record Management System As required by TAC Title 30, Part 1, Chapter 288, Subchapter A, Rule 288.2(a)(1)(B), the record management system for the City of Denton records water pumped, water delivered, and water sold. However, the City of Denton’s record management system does not allow for the separation of water sales and uses into residential, commercial, public/institutional, and industrial categories as required.

The current billing system separates sales and uses into residential, commercial, and wholesale user classes. At such time that the City of Denton procures a new record management system, such system will have the capabilities required in section 288.2(a)(1)(B).

4.3 Requirement for Water Conservation Plans by Wholesale Customers Each contract for the wholesale sale of water by the City of Denton will include a requirement that the wholesale customer develop and implement a water conservation plan meeting the requirements of Title 30, Part 1, Chapter 288, Subchapter A, Rule 288.2(a)(2)(c) of the Texas Administrative Code. If the customer intends to resell the water, then the contract between the initial supplier and customer must provide that the contract for the resale of the water must have water conservation requirements so that each successive customer in the resale of the water will be required to implement water conservation measures in accordance with applicable provisions of Chapter 288.

Water Conservation and Drought Contingency Plan City of Denton

5. OPTIONAL WATER CONSERVATION PLAN CONTENT

TCEQ rules also list optional (not required) conservation strategies, which may be adopted by suppliers to achieve the stated goals of the plan. The following optional strategies are listed in the rules; some are not included in this plan:

 §288.2(a)(3)(A) – Conservation Oriented Water Rates – Section 3.7  §288.2(a)(3)(B) – Ordinances, Plumbing Codes or Rules on Water-Conserving Fixtures – Section 5.1  §288.2(a)(3)(C) – Programs for the Replacement or Retrofit of Water-Conserving Plumbing Fixtures in Existing Structures – (Not included in plan)  §288.2(a)(3)(D) – Reuse and Recycling of Wastewater – Section 5.2  §288.2(a)(3)(E) – Pressure Control and/or Reduction – (Not included in plan)  §288.2(a)(3)(F) – Landscape Water Management Ordinance – Section 5.3  §288.2(a)(3)(G) – Monitoring Method – Section 5.4  §288.2(a)(3)(H) – Other Conservation Methods – Section 5.5 and 5.6

5.1 Ordinances, Plumbing Codes, or Rules on Water-Conserving Fixtures The State of Texas has required 2.5 gpm faucets, 3.0 gpm showerheads, and 1.6 gpf toilets for new construction since 1992. Similar standards are also required under federal law. Denton’s Plumbing Code complies with the State of Texas requirements. The implementation of the federal rules requiring energy- conserving clothes washers in 2007 improved the water-efficiency of residential clothes washers.

5.2 Reuse and Recycling of Wastewater The City of Denton’s current reuse program delivers approximately 0.5 MGD of reclaimed wastewater effluent. The current distribution system has a maximum capacity of 4 MGD.

Water Conservation and Drought Contingency Plan City of Denton

5.3 Landscape Management Ordinance As part of the development of this water conservation plan, the City of Denton has implemented a lawn and landscape irrigation and water waste ordinance. This ordinance is intended to minimize waste in landscape irrigation and other uses. The ordinance was implemented in 2006, during a drought period when public awareness of the drought was high. The ordinance includes the following elements:

 Prohibition of outdoor watering, except by hand and for watering foundations, from 10:00 a.m. to 6:00 p.m. every day from June 1 through September 30.  Requirement that all new irrigation systems include rain and freeze sensors.  Prohibition of designs and installations that spray directly onto impervious surfaces such as sidewalks and roads or onto other non-irrigated areas.  Prohibition of use of poorly maintained sprinkler systems that waste water.  Requirement that any outside faucet or service line leak be repaired.  Enforcement of the ordinance by a system of warnings followed by fines for continued or repeat violations.

5.4 Monitoring Method Until such time as there is an industry wide method for monitoring per-capita the City of Denton will use the five-year rolling average suggested by the Texas Water Development Board.

5.5 Customer Water Audit The City of Denton will continue to conduct water audits for single- and multi-family residential customers. The four main purposes are to: educate customers about conservative water use habits and replacement of inefficient toilets, clothes washers, and dishwashers; educate customers about water-efficient showerheads and faucet aerators; identify leaks; and optimize irrigation water usage. The City’s auditor will review the water use habits of the customer, inspect the system for leaks and excessive use, and recommend any equipment repairs or changes to increase the efficiency of both the domestic and irrigation water systems. Although overall water savings from residential water audits are minimal, residential water audits are crucial to maintaining good customer relations particularly related to high billing complaints.

The City of Denton has and will explore new organizational options that would allow for expansion of the water audit program. In addition to increasing availability of personnel for residential water audits, DWU will begin to expand its focus and implement a program for commercial customers. As Denton’s highest Water Conservation and Drought Contingency Plan City of Denton volume water customers are in the commercial sector, commercial water efficiency is expected to make a significant impact toward overall reductions.

5.6 Park, Athletic Field and Golf Course Conservation The City of Denton will explore the possibility of additional savings by the proper management of park and athletic field irrigation, landscape, and turf practices. The Texas Water Development Board Water Conservation Best Management Practices Guide includes guidelines for water conservation in parks, athletic fields and golf courses.3 DWU will work with other city departments to determine the potential for water and cost savings by proper management practices and implement them when practical.

Water Conservation and Drought Contingency Plan City of Denton

6. DROUGHT CONTINGENCY PLAN 6.1 Introduction

The purpose of this drought contingency plan is as follows:

 To conserve the available water supply in times of drought and emergency.  To maintain supplies for domestic water use, sanitation, and fire protection.  To protect and preserve public health, welfare, and safety.  To minimize the adverse impacts of water supply shortages.  To minimize the adverse impacts of emergency water supply conditions.

6.2 State Requirements for Drought Contingency Plans This drought contingency plan is consistent with Texas Commission on Environmental Quality (TCEQ) guidelines and requirements for the development of drought contingency plans by public drinking water suppliers, contained in Title 30, Part 1, Chapter 288, Subchapter B, Rule 288.20 of the Texas Administrative Code. This rule is included in Appendix B.

TCEQ’s minimum requirements for drought contingency plans are addressed in the following subsections of this report:

 288.20(a)(1)(A) – Provisions to Inform the Public and Provide Opportunity for Public Input – Section 6.3  288.20(a)(1)(B) – Provisions for Continuing Public Education and Information – Section 6.4  288.20(a)(1)(C) – Coordination with the Regional Water Planning Group – Section 6.9  288.20(a)(1)(D) – Criteria for Initiation and Termination of Drought Stages – Section 6.5  288.20(a)(1)(E) – Drought and Emergency Response Stages – Section 6.6  288.20(a)(1)(F) – Specific, Quantified Targets for Water Use Reductions – Section 6.6  288.20(a)(1)(G) – Water Supply and Demand Management Measures for Each Stage – Section 6.6  288.20(a)(1)(H) – Procedures for Initiation and Termination of Drought Stages – Section 6.6  288.20(a)(1)(I) - Procedures for Granting Variances – Section 6.8  288.20(a)(1)(J) - Procedures for Enforcement of Mandatory Restrictions – Section 6.7  288.20(a)(3) – Consultation with Wholesale Supplier – Not applicable  288.20(b) – Notification of Implementation of Mandatory Measures – Section 6.6 Water Conservation and Drought Contingency Plan City of Denton

288.20(c) – Review and Update of Plan – Section 6.10TCEQ places additional requirements on wholesale water suppliers in Title 30, Part 1, Chapter 288, Subchapter B, Rule 288.22 of the Texas Administrative Code. This Rule is included in Appendix B.

TCEQ’s minimum requirements for drought contingency plans are addressed in the following subsections of this report:

 288.22(a)(1) – Provisions to Inform Wholesale – Section 6.3  288.22(a)(7) – Water Supply and Demand Management Measures Conform to Texas Water Code 11.039 – Section 6.6  288.22(a)(8) – Wholesale Contract Supply Provisions Conform to Texas Water Code 11.039 – Section 6.6

6.3 Provisions to Inform the Public and Opportunity for Public Input The City of Denton provided opportunity for public input in the development of this drought contingency plan in [date of Council meeting] by the following means:

 Provided written notice of the proposed plan and the opportunity to comment on the plan by newspaper, posted notice, and notice on City of Denton’s web site, www.cityofdenton.com.  A public hearing was held at the City of Denton Council Meeting on [date of Council meeting].  The public may comment on updates to the plan.  The plan will be available at the City of Denton’s web site www.cityofdenton.com.  The plan will be provided to anyone requesting a copy.  The plan will be provided to Upper Trinity Regional Water District in its capacity as a wholesale customer.

The City of Denton shares water rights with the City of Dallas. Denton is the minority water right holder in both water supply reservoirs. Also, Denton is a wholesale customer of the City of Dallas. Due to these factors, it is by design that Denton’s Drought Contingency Plan closely resembles Dallas’ plan. The need to coordinate Denton’s Plan with the Dallas plan is appropriate due to the following reasons:

 The water supply reservoirs (Lake Ray Roberts and Lake Lewisville) are shared by the two cities and Denton is the minority water rights holder in both reservoirs. Denton is an untreated water supply customer of Dallas and will be affected by restrictions that may be initiated by the Dallas plan. Water Conservation and Drought Contingency Plan City of Denton

 Consistent communication to customers in a television and media market common to many different water utility entities will provide for a more effective implementation of Drought Contingency Plans.

6.4 Provisions for Continuing Public Education and Information The City of Denton will inform and educate the public about its drought contingency plan by the following means:

 Making the plan available to the public through the City of Denton web site at www.cityofdenton.com.  Including information about the drought contingency plan on the City of Denton’s web site, www.cityofdenton.com.  Upon request, make presentations to local organizations, schools, and civic groups on the drought contingency plan (usually in conjunction with presentations on water conservation programs).  Open public meetings with the Public Utilities Board, Environment Committee, and City Council.

Any time the drought contingency plan is activated or the drought stage changes, the City of Denton will notify local media of the issues, the drought response stage, and the specific actions required of the public. The information will also be publicized on the City of Denton web site, www.cityofdenton.com. Billing inserts will be used as appropriate.

6.5 Initiation and Termination of Drought Response Stages 6.5.1 Initiation of Drought Response Stages The Director of Water Utilities or designee may order the implementation of a drought response stage or water emergency when one or more of the trigger conditions for that stage is met. The following actions will be taken when a drought stage is initiated:

 The public will be notified through local media.  Wholesale customers will be notified by telephone with a follow-up letter or fax.  If any mandatory provisions of the drought contingency plan are activated, the City of Denton will notify the Executive Director of the TCEQ within 5 business days.

The Director of Water Utilities or designee may decide not to order the implementation of a drought response stage or water emergency even though one or more of the trigger criteria for the stage are met. Water Conservation and Drought Contingency Plan City of Denton

Factors that could influence such a decision include, but are not limited to, the time of the year, weather conditions, the anticipation of replenished water supplies, or the anticipation that additional facilities will become available to meet needs.

Trigger Condition Types: The three types of water management conditions are discussed below:

For a Type A situation, preservation of the total water supply will be critical and corresponding water management measures should stress overall reductions in water use. This condition is measured by a reduction in lake supply and results from extended drought. The best opportunity to respond to a drought is early in the drought cycle. Drought Contingency measures should stress overall reductions in water demand (i.e., average-day water demand).

For a Type B situation, in which the water demand approaches the delivery capacity of the system, the peak water demand will be critical, and corresponding drought contingency measures should stress water- use reductions or shifts to off-peak hours. In this situation, the ultimate goal of Stages 1 and 2 will be to avoid triggering the next stage. A Stage 3 trigger requires immediate and severe water demand reductions. Equipment or system failures that result from increased stresses to the transmission, treatment, or distribution systems can worsen a Type B situation. This condition is a result of an increase in demand. In the short term, this typically occurs during the summer months when irrigation requires more water. In the long term, it could occur if treatment plant or distribution system expansions do not keep pace with the growth in consumer demand. Drought contingency measures should stress reductions in peak water demand or redistribution of the demand to off-peak hours.

For a Type C situation where deficiencies limit the supply capacity, both water-use reductions and shifts to off-peak hours may be necessary. Although the area involved may be localized, immediate action requiring water demand reduction is necessary. Depending upon the severity of the triggering conditions, it is feasible that the plan could proceed immediately to implementation of stage 3. This condition is a result of a break in a large transmission main, mechanical failure to one or more large pumps, or production plant breakdown. Contamination of water supplies or other unforeseen occurrences may also instigate this condition. They may arise with little warning and require immediate and/or aggressive actions.

Drought contingency measures should stress reductions in peak water demand and/or redistribution of the demand to off-peak hours. Water Conservation and Drought Contingency Plan City of Denton

6.5.2 Termination of Drought Response Stages The Director of Water Utilities or designee may order the termination of a drought response stage or water emergency when the conditions for termination are met or at his/her discretion. The following actions will be taken when a drought stage is terminated:

 The public will be notified through local media.  Wholesale customers will be notified by telephone with a follow-up letter or fax.  When any mandatory provisions of the drought contingency plan that have been activated are terminated, the City of Denton will notify the Executive Director of the TCEQ within 5 business days.

The Director of Water Utilities or designee may decide not to order the termination of a drought response stage or water emergency even though the conditions for termination of the stage are met. Factors that could influence such a decision include, but are not limited to, the time of the year, weather conditions, or the anticipation of conditions that warrant the continuation of the drought stage.

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CITY OF DENTON

Drought Contingency Plan

April 2019

6.6 Drought and Emergency Response Stages 6.6.1 Stage 1, Mild

6.6.1.1 Triggering and Termination Conditions for Stage 1, Mild

6.6.1.1.1 Type A Water Management Condition Total raw water supply in (1) Denton and Dallas connected lakes (east and west); or (2) western connected lakes; or (3) eastern connected lakes drops below 65% of the total conservation storage of the lakes

6.6.1.1.2 Type B Water Management Condition Water demand reaches or exceeds 85% of delivery capacity for 4 consecutive days

6.6.1.1.3 Type C Water Management Condition  Water demand approaches a reduced delivery capacity for all or part of the system, as determined by DWU  A major water line breaks, or a pump or system failure occurs, which cause unprecedented loss of capability to provide treated water service  Natural or man-made contamination of the water supply

Requirements for Termination: Stage 1 may be terminated when Stage 1 conditions no longer exist and would be unlikely to recur upon termination.

6.6.1.2 Goal For Use Reductions And Actions Available Under Stage 1, Mild The goal for water use reduction under Stage 1, Mild, is a 5 percent reduction of the use that would have occurred in the absence of drought contingency measures. The Director of Water Utilities or a designee can order the implementation of any of the actions listed below, or other actions not listed, as deemed necessary:

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All Water Users (a) Require that all landscape watering be limited to the day-of-week schedule between the hours of 6:00 PM to 10:00AM. Irrigation of landscaped areas with hose-end sprinklers, or automatic irrigation systems should be limited to Sundays and Thursdays for customers with a street address ending in an even number (0, 2, 4, 6 or 8) and for locations without addresses and limited to Saturdays and Wednesdays for water customers with a street address ending in an odd number (1, 3, 5, 7 or 9). Apartments, office building complexes or other property containing multiple addresses may be identified by the lowest address number. (b) Encourage reduction in frequency of watering new and first year landscaping. (c) Encourage only initial filling of ornamental fountains. (d) Encourage reduction in frequency of washing or rinsing of vehicles. Use of bucket/container, hand-held hose with positive shut-off valve or commercial car wash is required. (e) Encourage the elimination of draining and refilling of swimming pools. (f) Encourage reduction in frequency of recreational water use including use of faucets, hoses or hydrants. (g) Foundations may be watered on any day of the week between the hours of 10 PM and 6 AM. Foundations may be watered with a soaker hose or a hand-held hose equipped with a positive shutoff nozzle only. (h) Recommend that customers do not hose off paved areas, buildings, windows or other surfaces.

City Government (a) Staff will begin review of the problems initiating Stage 1 actions and will identify possible solutions to address the water shortage. (b) Initiate public education campaign teaching and encouraging reduced water use practices. (c) Intensify normal leak detection and repair activities on water pipes and mains. (d) Restrict water use for the irrigation of parks by 25 percent. Park landscape may be irrigated on any day of the week. (e) Only flush newly constructed mains and mains that are essential for water quality maintenance. (f) Encourage 25 percent reduction in frequency of wet street sweeping and city vehicle washing and rinsing.

Commercial Customers (a) Identify and encourage voluntary reduction measures by high-volume water users through water use audits.

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(b) Restrict water use for the irrigation of parks by 25 percent. Park landscape may be irrigated on any day of the week. (c) Reduce water use for landscape nursery stock by 25 percent. (d) Require reduction of water use through day-of-week landscape watering schedule for golf courses. (e) Encourage area restaurants to serve customers water by request only. (f) Encourage hotel/motels to request multiple day patrons to reuse linens instead of changing every day.

Interruptible Customers (a) Reduce usage for interruptible customers per contract terms.

Wholesale Customer Cities (a) Encourage implementation of like procedures by wholesale customers.

Notifications

City of Denton  Notify major City departments, by telephone and follow-up memo, of Water Awareness Stage #1 and request voluntary water use reduction.  Stress voluntary elimination of non-essential uses.

External Customers  Issue press release, radio and video public service announcement to area media describing Water Awareness Stage #1 and the voluntary restrictions that apply.  Distribute water conservation materials to Denton Independent School District, UNT, TWU and community groups if appropriate.  Post Water Awareness notices at public buildings including city buildings, county buildings and the federal post office.  Encourage reduction of water use through the publication of the voluntary landscape watering schedule and request watering only during off-peak hours.

Wholesale Customers  Advise wholesale customers by telephone and follow-up memo, of Water Awareness Stage #1 and request voluntary water use reduction consistent with actions taken by the City of Denton.

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6.6.2 Stage 2, Moderate

6.6.2.1 Triggering Conditions For Stage 2, Moderate

6.6.2.1.1 Type A Water Management Condition Total raw water supply in (1) Denton and Dallas connected lakes (east and west); or (2) western connected lakes; or (3) eastern connected lakes drops below 50% of the total conservation storage

6.6.2.1.2 Type B Water Management Condition Water demand reaches or exceeds 90% of delivery capacity for 3 consecutive days

6.6.2.1.3 Type C Water Management Condition  Water demand equals a reduced delivery capacity for all or part of the system, as determined by DWU  A major water line breaks, or a pump or system failure occurs, which cause unprecedented loss of capability to provide treated water service  Natural or man-made contamination of the water supply

Requirements for Termination: Stage 2 may be terminated when Stage 2 conditions no longer exist and would be unlikely to recur upon termination.

6.6.2.2 Goal For Use Reduction And Actions Available Under Stage 2, Moderate The goal for water use reduction under Stage 2, Moderate, is a 15 percent reduction of the use that would have occurred in the absence of drought contingency measures. The Director of Water Utilities or a designee can order the implementation of any of the actions listed below, or other actions not listed, as deemed necessary:

All Water Users (a) Require that all landscape watering be limited to the day-of-week schedule between the hours of 6:00 PM to 10:00AM. Irrigation of landscaped areas with hose-end sprinklers or automatic irrigation systems should be limited to Thursdays for customers with a street address ending in an even number (0, 2, 4, 6 or 8) and for locations without addresses, and Wednesdays for water customers with a street address ending in an odd number (1, 3, 5, 7 or 9). Apartments, office building complexes or other property containing multiple addresses may be identified by the lowest address number. (b) Restrict operation of ornamental fountains or ponds to initial only filling except where necessary to support aquatic life or where such fountains or ponds are equipped with a recirculation system.

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(c) Prohibit recreational water use including use of faucets, hoses or hydrants. (d) Restrict washing of any motor vehicle, motorbike, boat, trailer, airplane or other vehicle to the use of a hand-held bucket or a hand-held hose equipped with a positive shutoff nozzle for quick rinses on the designated watering day. Vehicle washing may be done at any time on the immediate premises of a commercial car wash or commercial service station. Further, such washing may be exempted from these regulations if the health, safety, and welfare of the public is contingent upon frequent vehicle cleansing, such as garbage trucks and vehicles used to transport food and perishables. (e) Restrict water use to replacing losses during normal use and replacing evaporation in order to maintain proper water quality and proper operation of the pool equipment. Request that use of water to fill, refill, or add to any indoor or outdoor swimming, wading, or jacuzzi pools be limited to the day-of-week schedule. (f) Prohibit hosing off paved areas, buildings, windows or other surfaces. (g) Foundations may be watered for a two-hour period only between the hours of 10 PM and 6 AM on the designated watering day with soaker or hand-held hose equipped with a positive shutoff nozzle on the watering schedule.

City Government (a) Staff will begin review of the problems initiating Stage 2 actions and will identify possible solutions to address the water shortage. (b) Accelerate public education campaign teaching and encouraging reduced water use practices. (c) Restrict flushing of new mains not immediately required to provide service. (d) Continue intensified leak detection and repair activities on water pipes and mains. (e) Restrict water use for the irrigation of parks by 50 percent. Park landscape may be irrigated on any day of the week. (f) Increase enforcement efforts. (g) Reduce frequency of wet street sweeping and city vehicle washing by 50 percent. (h) Use of water from fire hydrants limited to fire fighting, essential distribution system. All other water use from fire hydrants will be by special permit only.

Commercial Customers (a) Require day-of-week watering schedule for golf courses. (b) Reduce water use for landscape nursery stock by 50 percent.

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(c) Restrict water use for the irrigation of parks by 50 percent. Park landscape may be irrigated on any day of the week.

Interruptible Customers (a) Reduce usage for interruptible customers per contract terms.

Wholesale Customers (a) Require water demand reductions in accordance with contract obligations for wholesale customers. (b) Wholesale water systems asked to abide by City of Denton policy for both internal operations and all retail customers. Reduction in rate of flow controller settings by 10% -20% are optional.

Notifications

City of Denton  By telephone and attached follow-up memo, notify all major City department water users of Water Watch Stage #2 and the water use restrictions under this stage. Instruct them to implement restrictions on non-essential uses. Use city department contacts in Appendix F.  Coordinate distribution of water emergency plan details, posters, and handouts to customer service representatives, utility dispatch personnel and Denton public access buildings.

Retail Customers  TCEQ notified of Stage 2 restrictions.  Issue press release, radio and video public service announcement to area media describing Water Watch Stage #2 and the water use restrictions under this stage. Keep media updated on the water situation. Use media contacts listed in Appendix F.  By telephone and follow-up letter, notify major area water users of Water Watch Stage #2 and the restrictions that apply. Use plant manager contacts listed in Appendix F.  Accelerate public education campaign to promote and encourage efficient water use.  If applicable, notify the U.S. Corp of Engineers by telephone and follow-up letter of the Water Watch Stage #2 conservation measures.

Wholesale Customers Advise wholesale customers by telephone and attached letter of the actions taken by the City of Denton in response to Water Watch Stage #2 and require the implementation of like procedures among their customers. Wholesale customer cities shall either impose water use restrictions equivalent to those imposed on Denton’s

Water Conservation and Drought Contingency Plan City of Denton ______City of Denton

retail customers OR where applicable, Denton may reduce rate-of-flow controller settings by 10%-20%. Use wholesale customer contacts in Appendix F.

Penalties • Initiate a 10% rate increase for residential customers for water usage greater than 15,000 gallons per account per 30 days. • Impose a 10% surcharge penalty for commercial and industrial customers for monthly water use above 80% of prior billing volumes for a 30-day period. • Initiate code enforcement fines for any violation of the Drought Contingency Plan.

6.6.3 Stage 3, Severe

6.6.3.1 Triggering Conditions For Stage 3, Severe

6.6.3.1.1 Type A Water Management Condition Total raw water supply in (1) Denton and Dallas connected lakes (east and west); or (2) western connected lakes; or (3) eastern connected lakes drops below 35% of the total conservation storage

6.6.3.1.2 Type B Water Management Condition Water demand reaches or exceeds 95% of delivery capacity for 2 consecutive days

6.6.3.1.3 Type C Water Management Condition  Water demand exceeds a reduced delivery capacity for all or part of the system, as determined by DWU  A major water line breaks, or a pump or system failure occurs, which cause unprecedented loss of capability to provide treated water service  Natural or man-made contamination of the water supply

Requirements for Termination: Stage 3 may be terminated when Stage 3 conditions no longer exist and would be unlikely to recur upon termination.

6.6.3.2 Goal For Use Reduction And Actions Available Under Stage 3, Severe The goal for water use reduction under Stage 3, Severe, is a reduction of 20 percent of the use that would have occurred in the absence of drought contingency measures. If the circumstances warrant, the Director of Water Utilities or a designee can set a goal for greater water use reduction. The Director of Water Utilities or a

Water Conservation and Drought Contingency Plan City of Denton ______City of Denton

designee can order the implementation of any of the actions listed below, or other actions not listed, as deemed necessary:

All Water Users (a) Irrigation of landscape is absolutely prohibited unless otherwise indicated within this section. (b) Use of water to wash any motor vehicle, motorbike, boat, trailer, airplane other vehicle not occurring on the premises of a commercial car wash and commercial service stations and not in the immediate interest of public health, safety, and welfare is prohibited. Further, such vehicle washing at commercial car washes and commercial service stations shall occur only between the hours of 6 PM to 10 AM. (c) The filling, refilling, or adding of water to swimming pools, wading pools, and Jacuzzi type pools is prohibited. Existing pools may add water to replace losses during normal use and to replace evaporation in order to maintain proper water quality and proper operation of the pool equipment. (d) Prohibit operation of ornamental fountains or ponds to initial filling except where necessary to support aquatic life or where such fountains or ponds are equipped with a recirculation system. (e) Foundations may be watered for a two-hour period only between the hours of 10 PM and 6 AM on the designated watering day from Stage 2 with soaker or hand-held hose equipped with a positive shutoff nozzle on the watering schedule. (f) No application for new, additional, expanded, or increased-in-size water service connections, meters, service lines, pipeline extensions, mains, or water service facilities of any kind shall be approved, and time limits for approval of such applications are hereby suspended for such time as this drought response stage or a higher-numbered stage shall be in effect. (g) Permitting of new swimming pools, hot tubs, spas, ornamental ponds and fountain construction is prohibited. (h) Request a 25% reduction of indoor water uses.

City Government (a) Wet street sweeping and city vehicle washing or rinsing is prohibited, except when in the immediate interest of public health, safety, and welfare. (b) Restrict water use for the irrigation of parks by 75 percent. Park landscape may be irrigated on any day of the week. (c) Restrict use of water from fire hydrants to fire fighting, essential distribution system maintenance and related activities. All other water use from fire hydrants will be by special permit only.

Water Conservation and Drought Contingency Plan City of Denton ______City of Denton

Commercial Customers (a) Restrict watering of golf course greens and tee boxes restricted to the allowed watering hours and the day-of-week watering schedule from Stage 2; watering of other golf course areas and parks is prohibited unless the golf course utilizes a water source other than that provided by the City of Denton. (b) Reduce water use for landscape nursery stock by 75 percent. (c) Restrict water use for the irrigation of parks by 75 percent. Park landscape may be irrigated on any day of the week.

Interruptible Customers (a) Service to interruptible customers is temporarily suspended.

Wholesale Customers (a) Same external restrictions apply to wholesale suppliers.

Notifications

City of Denton • Coordinate dissemination of water conservation plan details, posters, and handouts to customer service representatives, utility dispatch personnel and public access buildings. • By telephone and attached follow-up memo, notify all major City department users of Water Warning Stage #3 and of the water use restrictions under this stage. Instruct them to eliminate non-essential uses including street and vehicle washing and operation of ornamental fountains, and to implement restrictions on essential uses. Use same contacts as those listed in Appendix F.

Retail Customers • TCEQ notified of Stage 3 restrictions. • Issue press release, radio and video public service announcement to area media describing Water Warning Stage #3 and the water use restrictions under this stage. Keep media updated on the water situation. Use same media contacts as those in Appendix F. • By telephone and follow-up letter, notify major water users of Water Warning #3 and the mandatory water use reduction. Use contacts listed in Appendix F. • Post Water Warning notices at public buildings including city buildings, county buildings, and the federal post office.

Water Conservation and Drought Contingency Plan City of Denton ______City of Denton

• If applicable, notify U.S. Corps of Engineers by telephone and attached letter of the Water Warning Stage #3 conservation measures.

Wholesale Customers • Advise wholesale customers by telephone and attached letter of actions being taken by the City in response to Water Warning Stage #3 and mandatory implementation of similar procedures among their customers. Wholesale customer cities shall impose water use restrictions equivalent to those imposed on Denton’s retail customers or, where applicable, reduce their rate-of-flow controller settings by a percentage determined by the Director of Water Utilities. Appendix F lists wholesale customers that need to be contacted.

Penalties

• Initiate a 20% rate increase for residential customers for water usage greater than 15,000 gallons per account per 30 days. • Impose a 20% surcharge penalty for commercial and industrial customers for monthly water use above 70% of prior billing volumes for a 30-day period. • Initiate code enforcement fines for any violation of the Drought Contingency Plan.

Water Allocation

Retail Customers: During Stages 2 and 3 of the Drought Contingency Plan, DWU may impose a retail water rate increase to discourage water use. All rates for usage in excess of 15,000 gallons per month (per single-family residential account), or any other usage amount above 15,000 gallons per month, as deemed appropriate by the Director, may be increased by an additional 10 percent or any other percentage deemed appropriate by the Director.

Wholesale Customers In the event that the triggering criteria specified in Section 6 of the Plan for Stage 3 have been met, the Director is hereby authorized to initiate allocation of water supplies on a pro rata basis in accordance with the latest revision of Texas Water Code Section 11.039. Texas Water Code Section 1.039, Distribution of Water During Shortage, states:

Water Conservation and Drought Contingency Plan City of Denton ______City of Denton

(a) If a shortage of water in a water supply not covered by a water conservation plan prepared in compliance with Texas Commission on Environmental Quality or Texas Water Development Board rules results from drought, accident, or other cause, the water to be distributed shall be divided among all customers pro rata, according to the amount each may be entitled to, so that preference is given to no one and everyone suffers alike. (b) If a shortage of water in a water supply covered by a water conservation plan prepared in compliance with Texas Commission on Environmental Quality or Texas Water Development Board rules results from drought, accident, or other cause, the person, association of person, or corporation owning or controlling the water shall divide the water to be distributed among all customers pro rata, according to: 1. the amount of water to which each customer may be entitled; or 2. the amount of water to which each customer may be entitled, less the amount of water the customer would have saved if the customer had operated its water system in compliance with water conservation plan. (c) Nothing in Subsection (a) or (b) precludes the person, association of persons or corporation owning or controlling the water from supplying water to a person who has a prior vested right to the water under the laws of this state.

DWU may curtail water deliveries or reduce diversions in accordance with the terms and conditions of its wholesale water supply contracts. If necessary, or if specific contract provisions are not provided for, DWU may curtail water deliveries or reduce diversions in accordance with Texas Water Code Section 11.039. DWU will have authority to restrict flow to its wholesale water customers through the rate-of-flow controllers.

The Director will establish pro rata water allocations, determined as a percentage reduction of the wholesale customer’s water usage, at the time of implementation. The total volume reduction for each wholesale customer will be calculated monthly, based on average water usage for the previous three years. The Director will establish the percentage reduction based on an assessment of the severity of the water shortage condition and the need to curtail water diversions and/or deliveries, and the percentage reduction may be adjusted periodically by the Director. Once pro rata allocation is in effect, water diversions by, or deliveries to, each wholesale customer will be limited to the allocation established for each month.

Water Conservation and Drought Contingency Plan City of Denton ______City of Denton

6.7 Procedures for Enforcement of Mandatory Restrictions

Violations A person commits an offense if he or she knowingly makes, causes, or permits a use of water contrary to the measures implemented in the Drought Contingency Plan. It is presumed that a person has knowingly made, caused, or permitted use of water contrary to the measures implemented if the mandatory measures have been implemented according to the Plan and any one of the following conditions apply:

• The Drought Contingency Plan prohibits the manner of use. • The amount of water used exceeds that allowed by the Drought Contingency Plan. • The manner of use or the amount used violates the terms and conditions of a compliance agreement made following a variance granted by the ACM/Utilities.

Any person in apparent control of the property where a violation occurs or originates shall be presumed to be the violator, and proof that the violation occurred on the person’s property shall constitute a rebuttable presumption that the person in apparent control of the property committed the violation, but any such person shall have the right to show that he/she did not commit the violation. Parents shall be presumed to be responsible for their minor children and proof that a violation, committed by a child, occurred on the property within control of the parents shall constitute a rebuttable presumption that the parent committed the violation. But, any such parent may be excused if he/she proves that he/she had previously directed the child not to use the water as it was used in violation of this Plan and that the parent could not have reasonably known of the violation.

Any Code Enforcement Officer, Police Officer, or other city employee designated by the Assistant City Manager/Utilities, may issue a citation to a person he/she reasonably believes to be in violation of this Ordinance. The citation shall be prepared in duplicate and shall contain the name and address of the alleged violator, if known, the offense charged, and shall direct him/her to appear in municipal court on the date shown on the citation.

Any person who violates this Plan is guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not less than $250 and not more than $2,000. Each day that one or more provisions in this Plan is violated shall constitute a separate offense. Flow restrictors may be placed in lines after two violations have occurred to limit the amount of water passing through the meter in a 24-hour period. The City of Denton Utilities reserves the right to temporarily cancel water service to the customer until the situation can be resolved. Services

Water Conservation and Drought Contingency Plan City of Denton ______City of Denton discontinued under such circumstances shall be restored only upon payment of a re-connection charge, hereby established at an amount not to exceed $135.00 (or as adjusted by City ordinance), and any other costs incurred by the DWU in discontinuing service. In addition, suitable assurance must be given to the Director that the same action will not be repeated while the Plan is in effect. Compliance with this Plan may also be sought through injunctive relief in the district court.

6.8 Procedures for Granting Variances

Granting a Variance The ACM/Utilities may grant variances from the Drought Contingency Plan in special cases to persons demonstrating extreme hardship and need. In order to obtain a variance, the applicant must sign a compliance agreement on forms provided by the ACM/Utilities and approved by the City Attorney. The applicant must agree to use the water only in the amount and manner permitted by the variance. A variance must meet the following conditions:

• Granting of a variance must not cause an immediate significant reduction in the City’s water supply. • The applicant must demonstrate that the extreme hardship or need is related to the health, safety, or welfare of the person requesting it. • The variance will not adversely affect the health, safety, or welfare of other persons. • No variance is retroactive nor can it justify any violation of this Drought Contingency Plan before its issuance. • The variance will remain in effect during the stage in which it was issued and will expire when the Plan is no longer in effect or a new stage is activated.

Revoking a Variance The ACM/Utilities may revoke a variance granted when the Director of Water Utilities determines any one of the following:

• Conditions causing initial issuance of the variance are no longer applicable. • Violation of the terms of the compliance agreement. • The health, safety, or welfare of other persons requires revocation.

Water Conservation and Drought Contingency Plan City of Denton ______City of Denton

Wholesale Customer Variances The ACM/Utilities may grant variances from the Drought Contingency Plan to wholesale water customers in special cases. Wholesale water customers may request reduced variance allocations for the following conditions:

• The designated period does not accurately reflect a wholesale customer's normal water usage. • The customer agrees to transfer part of its allocation to another wholesale customer. • Other objective evidence demonstrates that the designated allocation is inaccurate under present conditions.

In order to grant a variance, the applicant must sign a compliance agreement on forms provided by the ACM/Utilities and approved by the City Attorney. No variance shall be retroactive or otherwise justify any violation of this Drought Contingency Plan occurring before the issuance of the variance.

6.9 Coordination with the Regional Water Planning Group

The City of Denton is located within the Region C water planning area. Appendix E includes a copy of a letter sent to the Chair of the Region C Water Planning Group (RCWPG) along with the water conservation and drought contingency plan.

6.10 Review and Update of Drought Contingency Plan

As required by TCEQ rules, the City of Denton will review this drought contingency plan every five years, beginning in 2009. The plan will be updated as appropriate based on new or updated information. As the plan is reviewed and subsequently updated, a copy of the revised Drought Contingency Plan will be submitted to the TCEQ and the RCWPG for their records.

7.0 Severability

The City of Denton Public Utility Board agrees that sections, paragraphs, sentences, clauses, and phrases of this Drought Contingency Plan are severable. If any phrase, clause, sentence, paragraph, or section of this Drought Contingency Plan is declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs, and sections of this Drought Contingency Plan, since the same would not have been enacted by the

Water Conservation and Drought Contingency Plan City of Denton ______City of Denton

City of Denton Public Utility Board without the incorporation into this Drought Contingency Plan of any such unconstitutional phrase clause, sentence paragraph, or section.

Water Conservation and Drought Contingency Plan City of Denton ______City of Denton

APPENDIX A

List of References 1. Texas Commission on Environmental Quality: “Water Conservation Plans for Municipal Uses by Public Water Suppliers,” Texas Administrative Code Title 30 Part I Subchapter A §288.2, effective October 7, 2004

2. Texas Commission on Environmental Quality: “Utility Profile & Water Conservation Plan Requirements for Municipal Water Use by Public Water Suppliers,” TCEQ publication 10218 Rev 11-04 and “Utility Profile & Water Conservation Plan Requirements for Wholesale Public Water Suppliers,” TCEQ publication 20162 Rev 11-04

3. Texas Water Development Board: “Water Conservation Best Management Practices Guide,” Report 362, Water Conservation Implementation Task Force, published November 2004

Date: February 8, 2019 Report No. 2019-041

INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL

SUBJECT: The FY 2018-19 Denton Energy Center Dashboard for January 2019.

BACKGROUND: Attached is the FY 2018-19 Denton Energy Center Dashboard for January 2019. The dashboard is intended to give a snapshot of relevant Denton Energy Center metrics. The dashboard highlights the following:

 The Emission Chart displays the January engine runtime hours, starts, stops, monthly and annual emissions totals and limits. o Cold Start – Emission system is below 115°. More emissions are produced from cold starts than warmer starts. o Warm Start – Emission system is between 116° and 170°. o Hot Start - Emission system is above 170°. o Stops – Emissions are produced each time the engine is stopped.  DEC MWh Generation and Gross Revenue for FY 2018-19.  A DEC financial summary showing FY 2017-18 Actuals, FY 2018-19 Budget, YTD Revenues & Expenses and FYE Projections by Expense Category.  The Plant Monthly Run Hour Comparison Graph illustrates the monthly plant run times.  The Key Trends section explains the footnotes in the financial section and will be used to explain variances in revenues and expenses.

As we continue to gain historical data of DEC operations we’ll be better able to identify trends in future months.

STAFF CONTACT: David Gaines Assistant Director of Finance (940) 349-8260 [email protected]

City of Denton, Texas FY 2018-19 Denton Energy Center YTD January 2019 Dashboard Emissions January 2019

Engine Runtime Hot Warm Cold

Description (hours) Starts Starts Starts Stops Description NOx CO VCO PM10 PM2.5 SO2 NH3 CO2e DEC Monthly Emissions Total (tons) 1.49 1.48 1.14 0.69 0.69 0.01 0.10 4,692.00 DEC Annual Permit Limit (tons) 30.52 92.95 48.29 69.76 69.76 1.60 60.90 Engines (1-12) 752 170 58 151 379 Monthly Plant Emissions per DEC Permit Limit 4.89% 1.59% 2.36% 0.99% 0.99% 0.87% 0.17% Annual to Date Plant Emissions per DEC Permit Limit 4.90% 1.60% 2.40% 1.00% 1.00% 0.90% 0.20%

Generation & Gross Revenues Month Revenue (In Millions) MWh $/MWh Plant Monthly Run Hour Comparison Oct-18 $ 2.02 23,521 $ 85.77 1,800 1,539 1,633 Nov-18 $ 1.71 17,919 $ 95.16 1,600 1,481 Dec-18 $ 0.34 5,693 $ 59.61 1,433 1,400 Jan-19 $ 0.50 9,665 $ 51.80 1,200 Total FY 18-19 $ 4.56 56,797 $ 80.33 1,033 1,000 752 800 FY 2017-18 FY 2018-19 FY 2018-19 FY 2018-19 Run Hours 600 466 ACTUALS BUDGET YTD PROJECTION 400 DEC REVENUE* $ 11.88 $ 36.30 $ 4.56 $ 36.30 200 EXPENDITURE SUMMARY 0 Energy Expense - Fuel $ 2.17 $ 14.97 $ 1.98 $ 14.97 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Personal Services 0.91 1.87 0.52 1.87 Period Run Hours 1,481 1,539 1,033 1,633 1,433 466 752 Materials & Supplies 0.36 0.14 0.04 0.14 Operating Month Maintenance & Repair 0.03 0.26 - 0.26 Insurance (1) 0.44 0.45 - 0.45 Miscellaneous - - - - Key Trends Operations 0.14 0.82 0.07 0.82 (1) Budgeted DEC Revenue for FY 2018-19 is $36.30, $5.29 Million higher than shown on the December Debt Service - Principal - 4.45 - 4.45 2018 Quarterly Dashboard Debt Service - Interest - - - - (2) In August 2018, $443,454 was paid to COD self insurance fund for insurance on Denton Energy Interfund Transfers - - - - Center - The policy period is 5/25/2018 to 5/25/2019. (3) Includes $157,000 for rolling stock equipment, and $140,000 for the purchase of Transfer to Capital Projects (2) 0.30 0.02 - 0.02 shelving/racks/equipment in FY2017-18. DEC EXPENDITURES $ 4.35 $ 22.97 $ 2.61 $ 22.97 (4) The expenses were overstated by $2.63 Million in the December 2018 Quarterly Dashboard. CAPITAL CHARGE BACK (3) $ (0.92) $ - $ - $ - (5) Capital Charge Back represents capitalized expenses during construction and startup. The charge DEC NET INCOME $ 8.45 $ 13.33 $ 1.95 $ 13.33 back was charged FY 2017-18 during construction and startup. Note: All dollar figures presented are in millions of dollars. *Preliminary, Unaudited Figures Date: March 8, 2019 Report No. 2019-042

INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL

SUBJECT: Acceptance and use of asphalt millings resulting from the realignment and construction of Mayhill Road.

BACKGROUND & DISCUSSION: The City of Denton’s landfill operation is required by permit to maintain its internal roads in a condition which provides suitable access to disposal sites and other public areas in all weather conditions. These temporary roads are generally constructed of asphalt millings, crushed concrete, gravel, or other suitable material. Absent the presence of this material, the City of Denton is required to purchase such material at approximately $10 per ton. Currently, Solid Waste’s stockpile of asphalt millings is close to being depleted, and as a result, the operation has a need for additional millings to maintain the condition of landfill roads.

Zachary Construction recently contacted the Solid Waste Department and offered to deliver clean asphalt millings to the landfill. Several tons of asphalt are being removed from old Mayhill Road over the next two to three months, and the contractor has agreed to mill the material, haul it to the landfill, and either place it directly on a temporary road or stockpile it at the direction of city staff for future use.

This material differs from existing concrete stockpiles in that it is clean material, meets our rubble acceptance criteria (<5% contamination), and does not require processing to be put to immediate use. In addition to the savings realized by Solid Waste, acceptance of the material will prevent hauling and disposal charges from being incurred as part of the Mayhill Road construction project.

Unless directed otherwise, staff intends to accept the asphalt millings for immediate use in internal road construction.

STAFF CONTACT(S): Ethan Cox Director of Solid Waste (940) 349-7421 [email protected]

Date: March 8, 2019 Report No. 2019-043

INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL

SUBJECT: Allowable uses of impact fee revenues.

EXECUTIVE SUMMARY: On January 15, 2019, Council m ember Hudspeth requested information on the im plementation process for using im pact fees to support commun ity-wide improvement projects by district or other key geographies. Im pact fee revenue uses are strictly regulated by chapter 395 of the Texas Local Governm ent Code (LGC) and us e of revenues is specifically tied to a council- adopted capital improvement plan.

BACKGROUND: Impact fees are a state-authorized m echanism, among others, to deliver funding for the public infrastructure components necessitated by new development. These fees are a one-tim e charge meant to recover the in cremental cost of the impact of each new unit of developm ent creating new infrastructure needs.

While common throughout the United S tates, the State of Texas allow s impact fees to be used for (LGC 395.001):

1. Water supply, treatment, and distribution facilities; 2. Wastewater collection and treatment facilities; 3. Storm water, drainage, and flood control facilities; and 4. Roadway facilities.

Cities who enact im pact fees must first conduct an im pact fee study that analyzes land use to project future growth c haracteristics within a City’s service area(s) o ver an ensu ing 10-year period. Using these land use assumptions, a 10-year capital improvements plan is developed and adopted by the city. Am ong other contents, the capital im provement plan describes the infrastructure additions or expansions needed to meet the demands of the projected growth (LGC 395.014) as outlined in the im pact fee study. Using the land use as sumptions and capital improvements plan, a fee per service unit of development is determined and adopted by the City. The land use assum ptions and capital im provements plan must be updated no later than every five years.

The City o f Denton c ollects impact fees for water, wastewater, and street (pavement) infrastructure costs (see attached capital plans). The City Council recently adopted updated land use assumptions, a W ater and W astewater capital plan, and service unit fees on January 15, 2019. The roadway impact fee was previously updated and adopted on June 21, 2016.

State law specifically states that an impact fee is “a charge or assessment imposed by a political subdivision against new development in order to generate revenue for funding or recouping the

Date: March 8, 2019 Report No. 2019-043

costs of capital im provements or facility expansions necessitated by and attributable to the new development.” (LCG 395.001).

State law restricts th e use of impact fee revenues to pay the costs of constructing capita l improvements or facility expansions, including and limited to the:

1. Construction contract price; 2. Surveying and engineering fees; 3. Land acquisition costs, including land purchases, court awards and costs, attorney's fees, and expert witness fees; and 4. Fees actually paid or contracted to be pa id to an independent qualified engineer or financial consultant preparing or updating th e capital improvements plan who is not an employee of the political subdivision (LGC 395.012).

State law states that impact fees may not be adopted or used to pay for:

1. Construction, acquisition, or expan sion of public facilities or assets other than capital improvements or facility expansions identified in the capital improvements plan; 2. Repair, operation, or m aintenance of existing or new capital im provements or fa cility expansions; 3. Upgrading, updating, expanding, or replacing existing capital im provements to serve existing development in order to m eet stricter safety, efficienc y, environmental, or regulatory standards; 4. Upgrading, updating, expanding, or replacing existing capital improvements to provide better service to existing development; and 5. Administrative and operating costs of th e political subd ivision, except the Edwards Underground Water District or a river authority that is authorized elsewhere by state law to charge fees that function as im pact fees may use impact fees to pay its adm inistrative and operating costs; and 6. Principal payments and interest or other fi nance charges on bonds or other indebtedness, except as otherwise allowed in statute (LGC 395.013)

CONCLUSION: Due to the restrictions o f state law, impact fee revenues m ay only be used for projects that fall under the state’s d efinition of capital improvements or faci lity expansions and create infrastructure capacity to service f uture growth (i.e. a project listed with in the 10- year impact fee capital improvement plan) As a result of these req uirements, the City of Denton does not have the authority to redirect impact fee revenues towards projects that are not part of a capital improvements plan. To legally reallocate impact fee revenues from currently planned projects into a separate set of projects, regardless of location, the city m ust develop and adopt an updated cap ital improvement plan(s) to document that the new projects are necessary to serve anticipated growth.

Date: March 8, 2019 Report No. 2019-043

ATTACHMENT(S):

 Water CIP diagram  Wastewater CIP diagram  Roadway (Pavement) CIP diagram

STAFF CONTACT: Ryan Adams Assistant to the City Manager 910-349-8565 [email protected]

Table 2.3. Water Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost

2028 2018 Required 2028 Required 2018-2028 Required Zone 1A Zone 1B Zone 2 Projected Total Project Zone 1A Zone 1B Zone 2 Proj. # Description Capacity Capacity Capacity Recoverable Recoverable Recoverable Recoverable Cost Utilization Utilization Utilization (Percent Utilization) (Percent Utilization) (Percent Utilization) Cost Cost Cost Cost EXISTING 1 Lake Ray Roberts 90.0% 100.0% 10% $ 15,330,617 $ 153,306,163 48% $ 7,358,696 47% $ 7,205,390 5% $ 766,531 2 Lake Ray Roberts Water Treatment Plant 60% 100% 40% $ 22,578,094 $ 56,445,235 48% $ 10,837,485 47% $ 10,611,704 5% $ 1,128,905 3 54" Finished Water Transmission Line 35% 60% 25% $ 2,397,575 $ 9,590,299 48% $ 1,150,836 47% $ 1,126,860 5% $ 119,879 4 Loop 288 Water Main - Sherman to UNT 35% 65% 30% $ 1,308,555 $ 4,361,849 48% $ 628,106 47% $ 615,021 5% $ 65,428

5 40% 65% 25% $ 879,588 $ 3,518,352 48% $ 422,202 47% $ 413,406 5% $ 43,979 Loop 288 Water Main - Sherman to Hwy 380 6 Northwest Elevated Storage Tank 55% 75% 20% $ 467,998 $ 2,339,988 0% $ - 100% $ 467,998 0% $ - 7 Southwest Pump Station 50% 75% 25% $ 1,478,001 $ 5,912,002 0% $ - 90% $ 1,330,201 10% $ 147,800 Southwest PS Oversize Discharge Line (30" to 8 15% 20% 5% $ 14,224 $ 284,477 0% $ - 90% $ 12,802 10% $ 1,422 36" 9 Vintage Oversize Line (12" to 20") 50% 70% 20% $ 50,854 $ 254,269 0% $ - 80% $ 40,683 20% $ 10,171 10 North-South Water Line Phase I 25% 50% 25% $ 1,509,651 $ 6,038,601 48% $ 724,632 47% $ 709,536 5% $ 75,483 11 Roselawn Elevated Storage Tank 60% 85% 25% $ 1,574,860 $ 6,299,440 48% $ 755,933 47% $ 740,184 5% $ 78,743 12 Roselawn Water Line 35% 55% 20% $ 359,473 $ 1,797,363 48% $ 172,547 47% $ 168,952 5% $ 17,974 13 Masch Branch Road Water Line Extension 15% 20% 5% $ 32,290 $ 645,781 0% $ - 100% $ 32,290 0% $ - 14 US 380 Urban Utility Relocation 25% 30% 5% $ 68,105 $ 1,362,086 0% $ - 100% $ 68,105 0% $ - 15 Rayzor Ranch Oversize Line (16" to 20") 20% 25% 5% $ 6,662 $ 133,226 0% $ - 100% $ 6,662 0% $ - 16 Southwest Elevated Storage Tank 55% 65% 10% $ 541,028 $ 5,410,280 0% $ - 90% $ 486,925 10% $ 54,103 17 University Water Line and PRV 25% 55% 30% $ 247,941 $ 826,468 0% $ - 100% $ 247,941 0% $ - PROPOSED 1 North-South Water Line 0% 30% 30% $ 3,261,090 $ 10,870,300 10% $ 326,109 70% $ 2,282,763 20% $ 652,218 2 I-35 Parallel Line Crossing 15% 30% 15% $ 150,600 $ 1,004,000 0% $ - 100% $ 150,600 0% $ - 3 Riney Road Booster Pump Station 15% 25% 10% $ 786,600 $ 7,866,000 0% $ - 100% $ 786,600 0% $ - 4 Elm/Loop 288 Water Lines 0% 35% 35% $ 1,938,055 $ 5,537,300 0% $ - 100% $ 1,938,055 0% $ - 5 Allred Road / John Paine Road Water Lines 0% 30% 30% $ 1,779,000 $ 5,930,000 0% $ - 80% $ 1,423,200 20% $ 355,800 6 Ray Roberts WTP Expansion 0% 4% 4% $ 3,571,200 $ 89,280,000 48% $ 1,714,176 47% $ 1,678,464 5% $ 178,560 7 McKinney Water Line 0% 35% 35% $ 420,210 $ 1,200,600 0% $ - 100% $ 420,210 0% $ -

8 I-35E Frontage Road Water Line Betterment 0% 65% 65% $ 663,332 $ 1,020,510 0% $ - 100% $ 663,332 0% $ -

9 Locust Water Line Upsize 0% 90% 90% $ 1,153,598 $ 1,281,776 100% $ 1,153,598 0% $ - 0% $ - 10 I-35W Water Line 0% 30% 30% $ 1,955,190 $ 6,517,300 0% $ - 80% $ 1,564,152 20% $ 391,038 11 I-35W/Corbin Water Line 0% 30% 30% $ 816,630 $ 2,722,100 0% $ - 80% $ 653,304 20% $ 163,326 12 Hickory Water Line Upsize 0% 90% 90% $ 448,600 $ 498,444 100% $ 448,600 0% $ - 0% $ - 13 Jim Christal Oversize Line (16" to 20") 0% 15% 15% $ 19,164 $ 127,758 0% $ - 100% $ 19,164 0% $ - 14 Jim Christal Water Line / I-35 Crossing 0% 15% 15% $ 195,375 $ 1,302,500 0% $ - 100% $ 195,375 0% $ - 15 Water Impact Fee Report Preparation 0% 100% 100% $ 45,700 $ 45,700 40% $ 18,280 54% $ 24,678 6% $ 2,742 Total $ 66,049,859 $ 393,730,167 $ 25,711,201 $ 36,084,557 $ 4,254,101

2018 Water and Wastewater Impact Fee Study 2.9 September 2018 City of Denton, Texas

Table 3.3. Wastewater Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost

2028 2018 Required 2028 Required 2018-2028 Required Projected Total Project Proj. # Description Capacity Capacity Capacity Recoverable Cost (Percent Utilization) (Percent Utilization) (Percent Utilization) Cost EXISTING South Wet Weather Lift Station & 1 48.4% 62.4% 14.0% $ 217,406 $ 1,552,898 Detention Pond 2 Cooper Creek Interceptor III 47.6% 49.5% 1.9% $ 24,282 $ 1,277,970 3 Cooper Creek Outfall (Loop 288) 64.7% 72.3% 7.6% $ 296,310 $ 3,898,807 4 Eagle Drive Sewer 18.1% 19.4% 1.3% $ 11,731 $ 902,329 5 Krum Sewer Line 10.0% 51.3% 41.3% $ 164,560 $ 398,450 6 Graveyard Branch Interceptor 6.6% 18.1% 11.5% $ 575,570 $ 5,004,952 7 Hickory Creek Outfall 34.4% 38.5% 4.1% $ 45,572 $ 1,111,495 8 Leatherwood Interceptor 32.0% 33.5% 1.5% $ 2,349 $ 156,592 9 Parvin Sewer Line 59.0% 71.9% 12.9% $ 42,116 $ 326,474 10 Pecan Creek Interceptor (Ph 1 & 2) 96.0% 100.0% 4.0% $ 134,528 $ 3,363,189 11 Pecan Creek Interceptor I 53.4% 66.9% 13.5% $ 266,716 $ 1,975,672 12 Pecan Creek Interceptor II 40.6% 46.0% 5.4% $ 100,558 $ 1,862,175 13 Pecan Creek Interceptor III 36.1% 41.0% 4.9% $ 150,879 $ 3,079,149 14 Pecan Creek Interceptor IV 26.9% 32.5% 5.6% $ 54,784 $ 978,285 15 Pecan WRP (15MGD) 85.0% 100.0% 15.0% $ 5,929,227 $ 39,528,174 16 Pecan WRP Expansion (6MGD) 0.0% 70.0% 70.0% $ 21,003,588 $ 30,005,125 17 Roark Branch Interceptor 0.0% 60.6% 60.6% $ 517,994 $ 854,774 18 State School Interceptor I 82.4% 91.6% 9.2% $ 152,800 $ 1,660,869 19 State School Interceptor II 35.3% 46.2% 10.9% $ 362,579 $ 3,326,406 20 US 380 Utility Relocations 26.5% 30.6% 4.1% $ 115,747 $ 2,823,082 21 Woodhaven Interceptor 41.8% 44.5% 2.7% $ 26,075 $ 965,735 PROPOSED 1 Audra Interceptor 75.9% 82.0% 6.1% $ 16,990 $ 278,530 2 Ave G Interceptor 92.2% 99.3% 7.1% $ 30,749 $ 433,078 3 Bonnie Brae Connector 0.0% 79.4% 79.4% $ 152,247 $ 191,746 4 Bonnie Brae Relocation 30.9% 89.3% 58.4% $ 1,101,486 $ 1,886,106 5 Carroll Ave Interceptor 70.4% 73.6% 3.2% $ 14,036 $ 438,623 6 Clear Creek Interceptor 0.0% 16.0% 16.0% $ 2,400,000 $ 15,000,000 7 Cooper Creek Interceptor I 74.2% 83.0% 8.8% $ 231,616 $ 2,632,000 8 Cooper Creek Interceptor II 54.6% 58.3% 3.7% $ 41,736 $ 1,128,000 Dry Fork Hickory Creek Tributary 1 9 80.5% 84.1% 3.6% $ 41,190 $ 1,144,159 Interceptor 10 Elm Street Sewer Replacements 48.7% 52.5% 3.8% $ 25,752 $ 677,674 11 Hickory Creek Interceptor I 50.2% 72.6% 22.4% $ 324,240 $ 1,447,500 12 Hickory Creek Interceptor II 46.7% 87.2% 40.5% $ 3,281,513 $ 8,102,500 13 Hickory Creek Interceptor III 29.1% 70.3% 41.2% $ 1,184,678 $ 2,875,433 14 Hickory Creek Interceptor IV 29.8% 39.1% 9.3% $ 117,892 $ 1,267,658 Hickory Creek Lift Station Detention 15 0.0% 96.3% 96.3% $ 9,533,700 $ 9,900,000 Facility 16 Mulberry Interceptor 44.4% 50.7% 6.3% $ 7,927 $ 125,820 17 Ranch View Interceptor (Oversize) 0.0% 56.5% 56.5% $ 90,219 $ 159,680 West Peak Flow Detention Lift Station 18 0.0% 23.1% 23.1% $ 877,800 $ 3,800,000 and Pond Wastewater Impact Fee Report 19 0.0% 100.0% 100.0% $ 45,700 $ 45,700 Preparation Total $ 49,714,840 $ 156,586,808

2018 Water and Wastewater Impact Fee Study 3.8 September 2018 City of Denton, Texas

Table 2.A. 10-Year Roadway Impact Fee Capital Improvements Plan – Service Area A

% In Length Proj. # IF Class Roadway Limits Service (mi) Area A-1 SA Jim Christal (1) 490' E of C. Wolfe to Thomas J. Egan 0.28 50% A-2, C-21 SA Jim Christal (2) 225' E of Future Loop to Masch Branch 0.75 50% A-3, C-22 PA Jim Christal (3) Masch Branch to Scripture 1.23 50% A-4 PA Jim Christal (4) Scripture to I-35 SBFR 0.60 100% A-5 PA Airport Masch Branch to I-35W SBFR 1.75 100% A-6 SA Amyx C. Wolfe to FM 2499 2.60 100% A-7 SA Shelby Westcourt/Underwood to Corbin 0.61 100% A-8 SA Cole Ranch E-W SA #1 Cole Ranch N-S SA to Future Loop 0.87 100% A-9 SA FM 2499 (1) C. Wolfe to 345' E of Cole Ranch-Hunter Ranch Arterial 1.07 100% A-10 SA FM 2499 (2) 345' E of Cole Ranch-Hunter Ranch Arterial to Underwood 1.27 100% A-11 SA Cole Ranch E-W SA #2 Cole Ranch N-S SA to Cole Ranch-Hunter Ranch Arterial 1.06 100% A-12 SA H. Lively (1) 725' E of Seabron to 1,975' W of C. Wolfe 0.74 100% A-13 SA H. Lively (2) 1,975' W of C. Wolfe to C. Wolfe 0.37 50% A-14 SA H. Lively (3) C. Wolfe to John Paine/Underwood (2) 2.40 100% A-15 SA Hunter Ranch Arterial Hunter Ranch N-S Col #1 to Brush Creek 2.22 100% A-16 PA Brush Creek (1) Hunter Ranch N-S Col #2 to I-35W 2.71 100% A-17 SA Ed Robson FM 2449 to H. Lively 0.62 100% A-18 C C. Wolfe Tom Cole to FM 2449 1.58 50% A-19 SA H. Lively (4) FM 2499 to H. Lively 0.63 50% A-20 SA Cole Ranch N-S SA Tom Cole to H. Lively 2.39 100% A-21 PA Cole Ranch-Hunter Ranch Arterial Amyx to Hunter Ranch Arterial 3.43 100% A-22 PA Future Loop (2) Jim Christal to 4,965' S of Jim Christal 0.94 100% A-23 PA Future Loop (3) 260' N of Tom Cole to FM 2449 1.78 100% A-24 PA Future Loop (4) 1,040' W of Amyx to Underwood 0.57 50% A-25 PA Future Loop (5) Underwood to I-35W SBFR 0.73 100% A-26 C Jim Christal-Tom Cole Collector Jim Christal to Tom Cole 0.76 100% A-27 SA (1/2) Westcourt Airport to Springside 0.79 100% A-28 SA Westcourt/Underwood Springside to 1,700' S of Springside 0.32 100% A-29 SA Underwood (1) 1,700' S of Springside to 2,655' N of FM 2449 0.29 50% A-30 SA Underwood (2) 2,655' N of FM 2449 to FM 2449 0.50 100% A-31 SA John Paine/Underwood (1) FM 2449 to 1,265' N of H. Lively 0.72 50% A-32 SA John Paine/Underwood (2) 1,265' N of H. Lively to 970' N of Brush Creek 0.62 100% A-33 SA John Paine/Underwood (3) 970' N of Brush Creek to Brush Creek 0.18 100% A-34 PA (2/3) Western Jim Christal to Airport 1.23 100% A-35 C Precision (1) Jim Christal to 1,775' N of Airport 0.42 100% A-36 C Precision (2) 1,775' N of Airport to Airport 0.34 100%

Note: The 10-Year Roadway Impact Fee CIP is not in a prioritized order.

2015 Roadway Impact Fee Study 10 March 2016 City of Denton, Texas

Table 2.B. 10-Year Roadway Impact Fee Capital Improvements Plan – Service Area B

% In Length Proj. # IF Class Roadway Limits Service (mi) Area B-1 C Parvin Highland Park to McCormick 0.51 100% B-2 SA Hobson Country Club to Teasley 1.14 100% B-3 PA Vintage 490' W of Bonnie Brae to Fort Worth (US 377) 0.96 100% B-4 C El Paseo Country Club to Belmont 0.36 100% B-5 SA Ryan Country Club to Teasley 2.06 100% B-6 SA (1/2) Robinson (1) Teasley to 220' E of Wheeler Ridge 0.52 100% B-7 SA (1/2) Robinson (2) 175' E of Berkley to 315' E of State School Rd 0.13 100% B-8 C (1/3) Creekdale (1) Ryan to 660' S. of Ryan 0.13 100% B-9 C Creekdale (2) 660' S. of Ryan to Thistle Way 0.42 100% B-10 C (1/3) Creekdale (3) Thistle Way to Riverpass 0.12 50% B-11 C Creekdale (4) 210' E of Riverchase Trail to 280' W of Pimlico 0.60 100% B-12 PA Brush Creek (2) I-35W NBFR to John Paine (Future) 0.37 100% B-13 PA Brush Creek (3) John Paine (Future) to 2,010' E of John Paine (Future) 0.38 100% B-14 PA Brush Creek (4) 225' W. of Fort Worth to 500' E. of Fort Worth 0.14 100% B-15 PA Brush Creek (5) 500' E. of Fort Worth to 2,180' East of Fort Worth 0.32 50% B-16 PA Hickory Creek (1) Country Club to 1,955' E. of Country Club 0.37 100% B-17 PA Hickory Creek (2) Riverpass to Montecito 0.43 50% B-18 PA Hickory Creek (3) Montecito to Teasley 0.85 100% B-19 PA (1/3) Hickory Creek (4) Teasley to Nautical 0.25 100% B-20 PA (2/3) Hickory Creek (5) Nautical to Erin 0.13 100% B-21 PA Hickory Creek (6) Erin to State School Road (Future) 0.09 100% B-22 C John Paine-Fort Worth Collector John Paine to Fort Worth (US 377) 0.41 100% B-23 C John Paine (1) Vintage to Brush Creek 1.41 100% B-24 C John Paine (2) Brush Creek to Johnson 0.50 50% B-25 C John Paine (3) Johnson to 135' N of Athens 0.39 100% B-26 SA Bonnie Brae (4) I-35E SBFR to Vintage 2.45 100% B-27 SA Bonnie Brae (5) Vintage to Fort Worth (US 377) 1.07 100% B-28 C Highland Park 130' S of Willowcrest to Roselawn 0.78 100% B-29 PA Fort Worth (US 377) I-35E to S City Limits 5.13 100% B-30 SA FM 1830 Fort Worth (US 377) to Brush Creek 2.14 100% B-31 C Ryan-Creekdale Collector Ryan to Creekdale 0.48 100% B-32 PA Teasley Sundown to S City Limits 3.39 100% Note: The 10-Year Roadway Impact Fee CIP is not in a prioritized order.

2015 Roadway Impact Fee Study 11 March 2016 City of Denton, Texas

Table 2.C. 10-Year Roadway Impact Fee Capital Improvements Plan – Service Area C

% In Length Proj. # IF Class Roadway Limits Service (mi) Area C-1 SA Milam (1) I-35 SBFR to 175' E of I-35 NBFR 0.09 100% C-2 SA Milam (2) 175' E of I-35 NBFR to FM 2164 (Locust) 2.28 50% C-3 C Bobcat 1,105' W of Milam Ridge to HOD N-S Secondary Arterial 0.41 100% C-4 PA Ganzer 230' W. of Rector to Future Cindy 0.63 50% C-5 PA Ganzer/Long (1) 625' W of I-35 SBFR to 350' E of I-35 NBFR 0.22 100% C-6 SA Ganzer/Long (2) Ganzer to FM 2164 (Locust) 2.15 100% C-7 C Barthold-Cindy Collector Barthold to 1,135' W of Cindy (Future) 0.21 100% C-8 C Masch Branch-I-35 Collector 1,295' W of I-35 to I-35 0.25 100% C-9 SA HOD E-W Secondary Arterial (1) HOD N-S Secondary Arterial to 840' E of HOD N-S 0.16 100% C-10 SA HOD E-W Secondary Arterial (2) 840' E of HOD N-S Secondary Arterial to 130' E of Bonnie 0.44 50% C-11 SA HOD E-W Secondary Arterial (3) 130' E of Bonnie Brae (Existing) to FM 2164 (Locust) 2.86 100% C-12 PA HWY 1173 (1) 460' E of Masch Branch (Existing) to 375' E of Barthold 0.52 50% C-13 PA HWY 1173 (2) Cindy to I-35 SBFR 0.60 100% C-14 PA (1/3) Elm (US 377) I-35 NBFR to Elm/Locust Couplet 3.01 100% C-15 C Hercules 115' E of Northpointe to Locust 0.41 100% C-16 SA Westgate (E-W) Westgate (N-S) to Bonnie Brae 0.56 100% C-17 C Riney (1) Bonnie Brae to 990' W of Elm 0.34 100% C-18 C Riney (2) 990' W of Elm to Elm 0.19 100% C-19 SA Masch Branch-I-35 Secondary Arterial Masch Branch to I-35 SBFR 1.34 100% C-20 SA Jim Christal (1) 490' E of C. Wolfe to Thomas J. Egan 0.79 50% A-2, C-21 SA Jim Christal (2) 225' E of Future Loop to Masch Branch 0.75 50% A-3, C-22 PA Jim Christal (3) Masch Branch to Scripture 1.23 50% C-23 SA Nail (1) University to 2,240' S of University 0.42 50% C-24 SA Nail (2) 2,240 S of University to Jim Christal 0.47 100% C-25 C Thomas J Egan (1) 555' N. of University to 550' S of University 0.21 100% C-26 C Thomas J Egan (2) 550' S of University to Jim Christal 0.66 50% C-27 PA Future Loop (1) University to 745' N of Jim Christal 0.56 100% C-28 PA Masch Branch (1) 1,290' S of HWY 1173 to Miller 0.79 50% C-29 PA Masch Branch (2) 895' W of Future Loop to 1,255' N of University 0.59 100% C-30 PA Masch Branch (3) 1,255' N of University to Jim Christal 1.02 100% C-31 SA Lover's Lane (1) HWY 1173 to 325' N of Fruth 0.27 50% C-32 SA Lover's Lane (2) 325' N of Fruth to 340' N of Littlebrook 0.17 100% C-33 SA Lover's Lane (3) 340' N of Littlebrook to Hook 0.10 50% C-34 SA Lover's Lane (4) Hook to Masch Branch-I-35 SA 0.71 100% C-35 SA Barthold Ganzer to City Limits 0.58 50% C-36 SA Cindy (1) Ganzer to 1,280' S of Ganzer 0.24 50% C-37 SA Cindy (2) 1,280' S of Ganzer to Masch Branch-I-35 Collector 0.41 100% C-38 SA Cindy (3) FM 1173 (Future) to 150' S of Future Loop 0.42 100% C-39 SA Cindy (4) 1,050' N of Masch Branch-I-35 PA to Tieszen 0.82 100% C-40 SA Cindy (5) Tieszen to University 0.36 100% C-41 PA (2/3) Western (1) University to Jim Christal 0.80 100% C-42 C Milam-Bobcat Col Milam to Bobcat (Future) 0.57 100% C-43 SA HOD N-S Secondary Arterial (1) Milam to 220' S of Bobcat 0.58 100% C-44 SA HOD N-S Secondary Arterial (2) 2830' N of Elm to Elm 0.54 100% C-45 SA Heritage Trail University to Scripture 0.77 100% C-46 PA Bonnie Brae (1) Milam to Loop 288 EBFR 3.17 100% C-47 SA Bonnie Brae (2) Loop 288 EBFR to 860' N of Riney 0.43 100% C-48,E-14 SA Bonnie Brae (3) University to I-35 1.41 50% C-49 C Fallmeadow 140' S of Meadow Edge to Gardenview 0.19 100% C-50,D-45 PA FM 2164 (Locust) (1) City Limits to Loop 288 WBFR 2.70 50% C-51,D-46 PA FM 2164 (Locust) (2) Loop 288 WBFR to Elm 1.41 50% Notes: The 10-Year Roadway Impact Fee CIP is not in a prioritized order; HOD: Hills of Denton.

2015 Roadway Impact Fee Study 12 March 2016 City of Denton, Texas

Table 2.D. 10-Year Roadway Impact Fee Capital Improvements Plan – Service Area D

% In Length Proj. # IF Class Roadway Limits Service (mi) Area D-1 C FM 2164-Brittany Hill Collector (1) 1,605' E of FM 2164 to 745' W of Mesquite Ridge 0.57 100% D-2 C FM 2164-Brittany Hill Collector (2) 745' W of Mesquite Ridge to Mesquite Ridge 0.14 50% D-3 C FM 2164-Brittany Hill Collector (3) Mesquite Ridge to Brittany Hill 0.49 100% D-4 SA FM 2153 (Realigned) City Limits to 620' S of Somerset 2.03 100% D-5 PA FM 2164-FM 2153 (Realigned) PA FM 2164 (Locust) to Indian Wells (Future) 0.73 100% D-6 PA FM 2164-FM 2153 (Realigned) PA Mesquite Ridge (Future) to FM 2153 (Realigned) 1.79 100% D-7 SA FM 2164-FM 2153 SA (1) FM 2164 (Locust) to Indian Wells (Future) 0.93 100% D-8 SA FM 2164-FM 2153 SA (2) 540' E of Green Valley (Future) to FM 2153 0.90 100% D-9 SA Shepard 1,490' W of FM 2153 to FM 2153 0.28 100% D-10 C Gribble Springs-Chapman Collector 630' N of FM 2164-Brittany Hill Collector to Gribble Springs 1.69 100%

FM 2164-Brittany Hill Collector to D-11 C Mesquite Ridge (1) 0.52 100% 400 N' of FM 2164-FM 2153 (Realigned) PA 400' N of FM 2164-FM 2153 (Realigned) PA to D-12 C Mesquite Ridge (2) 0.16 50% 470' S of FM 2164-FM 2153 (Realigned) PA 470' S of FM 2164-FM 2153 (Realigned) PA to D-13 C Mesquite Ridge (3) 0.10 100% 1,005' S of FM 2164-FM 2153 (Realigned) PA 355' S of Covey to D-14 SA Brittany Hill (1) 0.78 100% 795' S of FM 2164-FM 2153 (Realigned) PA 795' S of FM 2164-FM 2153 (Realigned) PA to D-15 SA Brittany Hill (2) 0.20 50% 770' N of FM 2164-FM 2153 SA D-16 C FM 2153 (1) City Limits to Burger (S) 1.44 100% D-17 C FM 2153 (2) Burger to FM 2153 (Realigned) 0.27 100% D-18 C FM 2153 (Realigned)-FM 2153 Collector FM 2153 (Realigned) to FM 2153 0.79 100% D-19 SA FM 2153 (3) 620' S of Somerset to Sherman 1.14 50% D-20 SA Green Valley (1) Warschun to 860' S of Warschun 0.16 100% D-21 SA Green Valley (2) 860' S of Warschun to Sherman 0.23 100% D-22 SA Milam (3) FM 2164 (Locust) to 605' E of FM 2164 (Locust) 0.11 100% D-23 SA Bobcat (3) FM 2164 (Locust) to 515' E of FM 2164 (Locust) 0.09 100% D-24 SA Cooper Creek (1) 860' W of Hartlee-Cooper Collector #1 to Hartlee Field 2.13 100% D-25 SA Cooper Creek (2) Silver Dome to Fishtrap 0.66 50% D-26 SA Cooper Creek (3) Fishtrap to University 0.50 100% D-27 C Golden Circle Hartlee Field (Future) to Hartlee Field (Existing) 1.78 100% D-28 SA Hartlee Field (1) FM 2164 (Locust) to 500' E of FM 2164 (Locust) 0.09 100% D-29 SA Hartlee Field (2) West City Limits to Woodland Hill 1.10 100% D-30 C Long (1) FM 2164 (Locust) to 525' E of FM 2164 0.10 100% D-31 C Long (2) City Limits to Stuart 0.34 100% D-32 C Hartlee Field (3) Sherman to 515' E. of Sherman 0.43 100% D-33 C Kings-Windsor Collector Kings Row to Windsor 0.09 100% D-34 C Windsor 410' E of Saints to Cooper Creek 1.02 100% D-35 SA Mingo (2) University to 455' E. of Cooper Creek 0.95 100% D-36 PA Post Oak (1) N. City Limits to Cooper Creek (Future) 0.86 100% D-37 PA Post Oak/Cooper Creek Cooper Creek (Future) to Hartlee Field 0.40 100% D-38 PA Post Oak (2) Railroad to Fishtrap 0.33 100% D-39 PA Post Oak (3) Fishtrap to 940' S of Fishtrap 0.18 50% D-40 PA Post Oak (4) 940' S of Fishtrap to University 0.07 100% D-41 C Deerwood 2,855' N of Kings Row to 680' N of Kings Row 0.41 100% D-42 C Hartlee-Cooper Col Hartlee Field to Cooper Creek 0.82 100% D-43 PA Sherman (1) Locust to Loop 288 WBFR 2.30 100% D-44 PA Sherman (2) Loop 288 WBFR to City Limits 4.65 100% C-50,D-45 PA FM 2164 (Locust) (1) City Limits to Loop 288 WBFR 2.70 50% C-51,D-46 PA FM 2164 (Locust) (2) Loop 288 WBFR to Elm 1.41 50% Note: The 10-Year Roadway Impact Fee CIP is not in a prioritized order.

2015 Roadway Impact Fee Study 13 March 2016 City of Denton, Texas

Table 2.E. 10-Year Roadway Impact Fee Capital Improvements Plan – Service Area E

% In Length Proj. # IF Class Roadway Limits Service (mi) Area E-1 SA Mingo (1) 435' NE of Bell to University 2.06 100% E-2 C Lattimore Ruddell to 475' E of Ruddell 0.09 100% E-3 C Audra Bayfield to Loop 288 0.27 100% E-4 C Blagg Mayhill to Lakeview 1.28 100% E-5 SA McKinney (FM 426) Woodrow to East City Limits 3.95 100% E-6 C Duchess (1) Woodrow to 115' W of Trailhead 0.75 100% E-7 C (1/2) Duchess (2) 115' W of Trailhead to 1,000' W of Loop 288 0.38 100% E-8 C Morse (1) Woodrow to Shady Oaks 0.25 100% E-9 SA (1/2) Morse (2) Kimberly to Mayhill 0.51 100% E-10 SA Spencer 485' E of Loop 288 to Mayhill 0.34 100% E-11 C Lakeview (1) Post Oak (Future) to 1025' E of Post Oak (Future) 0.19 100% E-12 C Lakeview (2) 2,745' E of Post Oak (Future) to Bishop Pine 0.36 100% E-13 C Edwards 560' E of Mayhill to Swisher 1.02 100% C-48,E-14 SA Bonnie Brae (3) University to I-35E NBFR 1.41 50% E-15 C Ruddell Mingo to Willis 0.11 100% E-16 C Mockingbird McKinney to 850' S of McKinney 0.16 100% E-17 SA Brinker Shady Oaks to Spencer 0.53 100% E-18 SA Mayhill (1) University to Colorado 3.81 100% E-19 PA (1/3) Mayhill (2) Colorado to I-35E NBFR 0.45 100% E-20 PA Post Oak (5) University to 1,010' N of Blagg 0.33 100% E-21 PA Post Oak (6) 1,010' N of Blagg to 1,650' S of Blagg 0.50 50% E-22 PA Post Oak (7) 1,490' N of Mills to 2,400' N of McKinney 0.79 100% E-23 PA Post Oak (8) 1,230' N of McKinney to Pockrus Page 2.48 100% E-24 PA Post Oak (9) Pockrus Page to Lakeview 0.27 100% E-25 C Lakeview (3) 130' S of Rodeo to 735' S of Mills 0.37 100% E-26 C Trinity-McKinney Connector (1) Trinity to 1290' N of McKinney 1.27 100% E-27 SA Trinity-McKinney Connector (2) 1290' N of McKinney to McKinney 0.24 100% Note: The 10-Year Roadway Impact Fee CIP is not in a prioritized order.

2015 Roadway Impact Fee Study 14 March 2016 City of Denton, Texas (! (! (! (! (! (! (! (! (! (! (! (! (! (! (! (! (! (! (!

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INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL

SUBJECT: Comparison of Part I crimes between Denton and similarly sized cities.

EXECUTIVE SUMMARY: On February 19, Council Mem ber Briggs request ed information relating to how the City of Denton compared with other same-sized cities in regard to violent and non-violent crime. Using the best and most up-to-date comparable data, how the City of Denton com pares to same-sized cities is largely dependent on the type of crime at issue.

BACKGROUND: The 2017 Texas DPS Crime in Texas Report contains th e Part I Crime totals for cities in Texas, which is the most recent official s tatistics available for comparison. Based on the U.S. Census Bureau population estim ates for 2017, the City of Denton is sim ilar in size to Carrollton, McAllen, Mesquite, Midland, and Waco. When co mpared to the other ci ties in the report, Denton is fourth in population size. The figures presented below represent crim e statistics for the year 2017.

2017 PART I CRIMES City County 2017 Population Murder Sexual Assalt RobberyAggravated Assault Burglary Theft Motor Vehicle Theft Total Violent Crime Property Crime Mesquite Dallas 143,949 6 74 244 292 773 3,642 849 5,880 616 5,264 McAllen Hidalgo 142,696 7 27 49 125 185 3,776 46 4,215 208 4,007 Waco McLennan 136,436 5 117 108 460 957 3,741 191 5,579 690 4,889 Denton Denton 136,268 1 120 94 201 422 2,357 294 3,489 416 3,073 Midland Midland 136,089 2 37 59 279 431 2,026 220 3,054 377 2,677 Carrollton Dallas 135,710 2 36 61 67 463 1,690 227 2,546 166 2,380

Figure 1 ‐ Total incidence of Part I Crimes

INDEX CRIME RATE ‐ CRIMES PER 100,000 POPULATION City County 2017 Population Murder Sexual Assalt RobberyAggravated Assault Burglary Theft Motor Vehicle Theft Total Violent Crime Property Crime Mesquite Dallas 143,949 4.17 51.41 169.50 202.85 537.00 2,530.06 589.79 4,084.78 427.93 3,656.85 McAllen Hidalgo 142,696 4.91 18.92 34.34 87.60 129.65 2,646.18 32.24 2,953.83 145.76 2,808.07 Waco McLennan 136,436 3.66 85.75 79.16 337.15 701.43 2,741.94 139.99 4,089.10 505.73 3,583.37 Denton Denton 136,268 0.73 88.06 68.98 147.50 309.68 1,729.68 215.75 2,560.40 305.28 2,255.11 Midland Midland 136,089 1.47 27.19 43.35 205.01 316.70 1,488.73 161.66 2,244.12 277.02 1,967.10 Carrollton Dallas 135,710 1.47 26.53 44.95 49.37 341.17 1,245.30 167.27 1,876.06 122.32 1,753.74

Figure 2 ‐ Part I Crimes adjusted for population

Violent Crime totals are the sum of the crime categories of Murder, Sexual Assault, Robbery and Aggravated Assault. When compared to the other cities for the year 2017, Denton ranks third in violent crime (416), with W aco ranking first (690) and Mesquite second (616). This ranking holds true when crime figures are adjusted for population. Denton ranks last in the num ber of murders (1) in 2017, with McAlle n ranking first (7) and Mesquite second (6). Denton had the highest num ber of sexual assaults (120), with W aco second (117) and Mesquite third (74). It should be noted that both Denton and Waco contain large university populations com pared to the ot her cities of sim ilar size, which m ay be a

Date: March 8. 2019 Report No. 2019-044

contributing factor to the elev ated number of sexual assaults compared with similarly sized cities.

Violent Crime 800

700

600

500

400

300

200

100

0 Mesquite McAllen Waco Denton Midland Carrollton

Murder 8

7

6

5

4

3

2

1

0 Mesquite McAllen Waco Denton Midland Carrollton

Sexual Assalt 140

120

100

80

60

40

20

0 Mesquite McAllen Waco Denton Midland Carrollton

Date: March 8. 2019 Report No. 2019-044

Continuing the comparison of violent crim es, Denton ranks third in number of robberies (94), with Mesquite being first (244) and Waco second (108). Denton also ranks fourth in aggravated assaults (201), with Waco ranking first (460), Mesquite ranking seco nd (292), and Midland ranking third (279).

Robbery 300

250

200

150

100

50

0 Mesquite McAllen Waco Denton Midland Carrollton

Aggravated Assault 500 450 400 350 300 250 200 150 100 50 0 Mesquite McAllen Waco Denton Midland Carrollton

Property Crime totals are the sum of the cr ime categories Burglary, Theft and Motor Vehicle Theft. When compared to the other cities fo r the year 2017, Denton ranks fourth in property crime (3,073), with Mes quite ranking first (5,264), W aco second (4,889) and McAllen third (4,007).

Date: March 8. 2019 Report No. 2019-044

Property Crime 6,000

5,000

4,000

3,000

2,000

1,000

0 Mesquite McAllen Waco Denton Midland Carrollton

When compared to the other cities, Denton ranks fourth in burglary (422), with Waco ranking first (957), Mesquite second (773) and Carrollton third (463). When compared to the other cities, Denton also ranks fourth in theft (422), with McAllen ranking first (3,776), W aco second (3,741) and Mesquite third (3,642). Finally, Denton ranks second in motor vehicle theft (+294), with Mesquite ranking first (+294). Carrollton is ranked third (+227).

Burglary 1,200

1,000

800

600

400

200

0 Mesquite McAllen Waco Denton Midland Carrollton

Theft 4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0 Mesquite McAllen Waco Denton Midland Carrollton

Date: March 8. 2019 Report No. 2019-044

Motor Vehicle Theft 900 800 700 600 500 400 300 200 100 0 Mesquite McAllen Waco Denton Midland Carrollton

CONCLUSION: How well the City of Denton compares to same-sized cities is largely dependent on the type of crime at issue. For non-violent property crim e, the City ranks average to slightly below average compared to these peer cities. Dento n’s statistics for violent crime are less consistent depending on the category.

In recognition of the need to craft unique soluti ons to crim e in the C ity of Denton, DPD has initiated a strategic process to address and make improvements in each Part I Crim e category through effective prevention, enforcem ent, and investigation. This is in addition to aggressive efforts already underway to address those categor ies of crim e, such as sexual assault, where Denton is a crime category leader when compared to same sized cities.

Staff will present more information relating to plans to combat Part I crimes at a future date.

STAFF CONTACT: Bobby Smith Assistant Police Chief 940-349-7971 [email protected]

Date: March 8, 2019 Report No. 2019-045

INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL

SUBJECT: Analysis of calls, crimes, and vehicle collisions near the intersection of W. Oak Street and Fry Street.

EXECUTIVE SUMMARY: On Feb. 7, 2019, Council Member Briggs requested information on public safety incidents and calls in the area near the intersection of W. Oak Street and Fry Street. Calls have varied by year with the most frequent call times coming in the early morning hours on weekends. Current efforts to address crimes and increase the perception of safety include proactive policing and property code enforcement.

BACKGROUND: There were 1,266 calls for service between 3/1/2014 and 2/28/2019 at or near the intersection of W. Oak Street and Fry Street. Call volume varied from year to year over the period studied, with the lowest amount of calls occurring in 2016 and the highest in 2018.

ALL CALLS FOR SERVICE 3/1/2014 TO 2/28/2019 Years Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 2014 24 21 24 20 13 27 28 25 20 20 222 2015 17 22 11 23 13 23 15 19 27 20 19 22 231 2016 12 17 15 11 22 13 6 16 16 19 13 15 175 2017 30 17 15 24 20 17 11 25 30 25 29 15 258 2018 30 43 24 23 29 25 21 32 32 27 31 16 333 2019 30 17 47 Total 119 116 89 102 108 98 66 119 133 116 112 88 1,266

Additional charts illustrating the calls for service by type, time of day, and day of the week is attached to this report.

Overall, the five most frequent call types during this time period were Speak With Officer (233), Disturbance-Other (208), Domestic Disturbance (115), Disturbance Music/Party (113) and Burglar Alarm (58). These five call types combined represent 717 calls, or 56.6% of the calls received in the past 5 years. Most of the calls for service occur on Sunday between the hours of 11:00 pm and 3:00 am, on Thursday between 11:00 pm and 12:00 am, and on both Friday and Saturday between 2:00 am and 3:00 am.

Crime Reports During the past five years, there were 274 Part I and Part II crimes reported in this location. Part I crimes are more serious criminal offenses, and Part II are less serious criminal offenses. Many of these lower level offenses are considered “disorder” offenses.

Date: March 8, 2019 Report No. 2019-045

Of the 274 crimes, 107 were Part I crimes. Of these, there were 23 violent crimes and 84 property crimes. Theft offenses accounted for 64 of the Part I crimes, which were 64.4% of the total Part I offenses.

PART I CRIMES - FRY STREET & W. OAK STREET 2014 2015 2016 2017 2018 2019 Total SEXUAL ASSAULT 1 1 1 3 ROBBERY 1 2 3 AGGRAVATED ASSAULT 2 3 1 3 7 1 17 BURGLARY 1 1 3 1 3 1 10 THEFT 14 15 5 14 18 3 69 MOTOR VEHICLE THEFT 2 3 5 TOTAL 20 20 10 20 32 5 107

Of the 167 Part II Crimes in this location, the top three offense categories were Simple Assaults (54), Criminal Mischief (41), and Drug Offenses (28). These three categories combined for a total of 123, which represented 73.6% of all Part II offenses.

Vehicle Collisions The city has additional data available relating to traffic collisions in this area. There have been 34 vehicle collisions at the intersection of Fry and W. Oak since 2010, with a marked increase in 2018 (10). There was only one traffic crash at this intersection in 2016, and on average there have 5 crashes per year since 2013.

CRASHES AT FRY STREET & W. OAK STREET Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Total 2010 1 1 2011 1 1 2012 1 1 2013 2 1 1 1 5 2014 2 1 1 4 2015 1 2 1 1 5 2016 1 1 2017 1 1 2 2 6 2018 1 2 1 1 2 2 1 10 Total 1 6 5 3 1 2 1 4 4 4 3 34

Proactive Policing Efforts There are several multi-housing units located in the 200 block of Fry Street. Since the beginning of 2018, there have been multiple calls for service regarding drug activity, assaults, fights, and other crimes. Assigned Downtown Unit Officers, in coordination with other DPD units, have taken a proactive approach in this problem area by conducting surveillance and enforcement activity. These efforts have resulted in several known drug users being removed from the location, other criminal arrests, and the seizure of drugs and weapons.

This unit has also been actively working with Community Improvement Services, identifying multiple building code violations and working toward bringing structures into compliance or compelling their removal.

Date: March 8, 2019 Report No. 2019-045

CONCLUSION: DPD will continue to take a collaborative and multifaceted approach to decrease crime in this area and positively impact of neighborhood safety.

ATTACHMENT(S): W. Oak Street/Fry Street Intersection Call Categories W. Oak Street/Fry Street Intersection Call Times and Dates

STAFF CONTACT: Bobby Smith Assistant Police Chief 940-349-7971 [email protected]

CALL TYPE Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total SPEAK WITH OFFICER 25 15 21 17 17 15 10 23 36 19 13 12 223 DISTURBANCE OTHER 29 18 16 14 22 18 9 18 11 18 19 16 208 DOMESTIC DISTURBANCE 9 16 6 9 7 5 9 8 14 9 14 9 115 DISTURBANCE MUSIC/PARTY 11 11 3 14 9 12 4 11 12 10 16 113 BURGLAR ALARM 2 2 3 7 5 9 10 5 4 10 1 58 SUSPICIOUS ACTIVITY 237224365672 49 THEFT REPORT 334783421423 44 PEDESTRIAN STOP 222323497511 41 CRIMINAL MISCHIEF/VANDALISM REPORT 235511135227 37 SUSPICIOUS PERSON 7 1 1 2 3 3 7 2 1 3 2 32 ASSAULT REPORT 11225121454 28 CONTROLLED SUBSTANCE 231322132214 26 SERVICE RELATED 1 3 1 2 3 1 3 2 2 5 23 HARASSMENT 1 4 2 5 4 2 1 1 1 21 ASSAULT - JUST OCCURRED 4 1 2 1 2 4 5 19 CRIMINAL TRESPASS 4 2 1 3 2 2 1 1 1 1 1 19 SUICIDAL PERSON 1 4 3 1 1 2 1 2 2 1 1 19 FIGHT 2 1 4 1 2 3 3 1 1 18 SUSPICIOUS VEHICLE 1 1 1 2 2 1 3 2 2 1 16 BURGLARY OF A VEHICLE REPORT 1 1 2 4 3 1 3 15 911 HANGUP 1 3 1 1 1 1 1 3 1 13 MOTOR VEHICLE THEFT REPORT 1 1 1 1 3 1 2 10 SHOTS HEARD 1 1 1 1 1 2 1 2 10 ASSIST CITIZEN 2 2 1 1 1 1 8 SUSPICIOUS NOISE 2 1 3 1 7 TERRORISTIC THREAT 1 1 1 1 1 1 1 7 BURGLARY OF A BUILDING REPORT 3 3 6 PERSON WITH A KNIFE 1 2 1 1 1 6 PERSON WITH A GUN 1 1 2 1 5 PROTECTIVE ORDER 1 1 2 1 5 CREDIT CARD ABUSE 1 1 1 1 4 NOISE 4 4 OVERDOSE 1 1 2 4 STABBING-JUST OCCURRED 1 1 2 4 BURGLARY IN PROGRESS-HABITATION 1 1 1 3 DEMENTED PERSON 1 1 1 3 FRAUD REPORT 1 2 3 PANHANDLING 1 1 1 3 ATTEMPTED BURGLARY OF A VEHICLE REPORT 1 1 2 BURGLARY OF A BUILDING - JUST OCCURRED 1 1 2 CRIMINAL MISCHIEF/VANDALISM IN PROGRESS 1 1 2 ROBBERY REPORT 1 1 2 SEXUAL ASSAULT REPORT 1 1 2 THEFT-JUST OCCURRED 1 1 2 UNUATHORIZED USE OF A MOTOR VEHICLE 1 1 2 VIOLATION OF PROTECTIVE ORDER 1 1 2 911 OPEN LINE 1 1 AGGRAVATED ASSAULT REPORT 1 1 AGGRAVATED ASSAULT-JUST OCCURRED 1 1 ATTEMPTED BURGLARY OF A HABITATION REPORT 1 1 ATTEMPTED ROBBERY-JUST OCCURRED 1 1 ATTEMPTED SEXUAL ASSAULT REPORT 1 1 ATTEMPTED THEFT REPORT 1 1 DECEASED PERSON 1 1 DISORDERLY CONDUCT REPORT 1 1 GRAFFITI 1 1 GRAFFITI ABATEMENT 1 1 GUNSHOT 1 1 IDENTITY THEFT 1 1 INDECENT EXPOSURE-JUST OCCURRED 1 1 MISSING PERSON-JUST OCCURRED 1 1 MOTOR VEHICLE THEFT-JUST OCCURRED 1 1 PANIC ALARM 1 1 ROBBERY-JUST OCCURRED 1 1 SEXUAL ASSAULT-JUST OCCURRED 1 1 SOLICITATION FOR SEX 1 1 SUSPICIOUS PACKAGE 1 1 Grand Total 119 116 89 102 109 98 66 120 134 116 112 88 1266 Sunday Monday TuesdayWednesdayThursday Friday Saturday Total 00 21 6 7 12 6 10 14 76 01 25 6 10 7 11 10 13 82 02 22 5 5 9 10 22 24 97 03 12 5 6 7 8 11 14 63 04 12 0 4 5 1 5 6 33 05 4 3 1 2 2 4 4 20 06 4 2 2 0 3 1 0 12 07 2 1 2 3 2 4 6 20 08 3 9 5 5 7 5 3 37 09 7 9 5 8 6 5 8 48 10 3 9 7 7 5 3 5 39 11 2 10 11 11 7 1 3 45 12 12 6 7 7 6 10 6 54 13 8 8 13 6 5 11 4 55 14 4 2 6 10 6 10 3 41 15 8 13 9 5 7 4 6 52 16 5 8 11 9 3 10 10 56 17 9 9 7 8 11 10 10 64 18 7 9 7 6 11 7 4 51 19 4 9 8 11 11 10 8 61 20 5 5 5 3 11 9 10 48 21 8 6 6 7 9 13 13 62 22 8 12 12 11 13 9 11 76 23 12 9 11 2 23 8 9 74 Total 207 161 167 161 184 192 194 1,266 Date: March 8, 2019 Report No. 2019-046

INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL

SUBJECT: Proposed solutions to citizen concerns about the impacts of the City of Denton Service Center site on the surrounding neighborhood.

EXECUTIVE SUMMARY: In response to concerns expressed by residents living in the area around the City of Denton Service Center, staff has proposed and is actively pursuing a number of solutions to mitigate the visual and sonic impact of the Service Center site on the surrounding neighborhood. These solutions, as well as additional information about future public improvement projects planned for the Service Center area, will be presented at a neighborhood meeting on Monday, March 18.

BACKGROUND: On February 20, 2019, the Planning & Zoning Commission heard a city-initiated rezoning request for the Service Center site. During the public hearing, citizens living in the neighborhood around the Service Center expressed concerns about a number of issues related to the site, including (1) lack of buffering to limit the noise, lights, and view of the Service Center site; (2) truck/heavy equipment traffic on neighborhood streets; (3) disrepair of neighborhood streets due to the heavy truck traffic; (4) site conditions, with trash and unused equipment littering the property and providing homes for rodents; (5) excessive early morning noise; (6) concern that drainage from the site contributes to flooding neighboring properties.

DISCUSSION: The solutions proposed and being pursued by staff in response to citizen concerns include the following: • The Parks Department is preparing a concept plan for buffering along key sections of the Service Center site which are adjacent to neighborhoods and currently lack effective buffering. This buffering is initially proposed to include both 8’ fencing and landscape screening, which staff believes should address a number of resident concerns about the site, including mitigating the impact of early morning noise. This concept plan will be brought to City Council and the community for their input, cost estimates will be obtained, and final approval will be sought. If approved, the City will then move forward with installing the buffering measures. • Assistant City Manager Mario Canizares has directed the departments which share the Service Center site to begin preparations for a “Spring Cleanup” of the site, to be scheduled within the next two months. This will be a joint effort to remove trash and debris from the site and to address any areas where broken parts and other scrap items may have been allowed to accumulate in view of the neighborhood. • Staff will be exploring how current entrance/exit points for the Service Center may be able to be modified to reduce heavy-duty vehicle traffic through the surrounding neighborhood streets.

Date: March 8, 2019 Report No. 2019-046

In addition, the Development Services Department has an upcoming neighborhood meeting scheduled on Monday, March 18, at the Facilities Management building at 869 S Woodrow Street, to discuss the proposed rezoning of the Service Center site. At this meeting, the proposed solutions will be presented to the neighbors in attendance in order to receive their input and gather any additional concerns they may have to share. Information will be provided to the community about drainage improvement projects and planned repairs and realignments of streets around the Service Center area (see attached exhibit). Representatives of Facilities Management, Fleet Services, and Engineering will all be present to answer questions from the community.

The rezoning of the Service Center site was approved by the Planning and Zoning Commission on February 20, by a vote of 7-0, and is scheduled to come before City Council on April 2.

CONCLUSION: Staff will proceed with planning and implementing the solutions above, as well as considering additional solutions, and will bring them before City Council as appropriate, unless directed otherwise.

ATTACHMENT(S): Schedule & Maps of Planned Street Improvement Projects in Service Center Area

STAFF CONTACT: Mario Canizares Assistant City Manager (940) 349-8535 [email protected]

Date: March 8, 2019 Report No. 2019-046

Future Street Improvement Projects – Service Center Area

Street/Sidewalk Status

Uland Street from Kent to Rose Scheduled for Construction in 2020 (see map below) Rose Street from Uland to Paisley Scheduled for Construction in 2020 (see map below) Wood Street from Paisley to McKinney Scheduled for Construction in 2020 (see map below) Hettie Street from Paisley to McKinney Scheduled for Construction in 2020 (see map below) Ruddell Street from Paisley to Willis Planning for Future Realignment – Construction not yet scheduled (see design below) Frame Street Sidewalk from McKinney to Under Design – Goes to bid in Summer 2019 Paisley (East Side)

Date: March 8, 2019 Report No. 2019-046

2020 Street Construction Project Bundle – Service Center Area

Date: March 8, 2019 Report No. 2019-046

Current Draft Design – Proposed Ruddell Street Realignment

Date: March 8, 2019 Report No. 2019-047

INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL

SUBJECT: On Feb. 26, Mayor Watts requested an informal staff report on the differences between a Certificate of Occupancy, a Certificate of Zoning Compliance, and a Business License.

EXECUTIVE SUMMARY: Development Services currently issues only Certificates of Occupancy. While the Certificate of Occupancy additionally functions as a Business License and Certificate of Zoning Compliance, staff would like to separate the zoning compliance and business license from the certificate of occupancy through the upcoming Denton Development Code (DDC) update. This will provide clarity in regard to permitting land use, buildings, and businesses.

DISCUSSION: Currently a Certificate of Occupancy is required for all new buildings, new businesses, change in use, change in business name, or change in ownership for a single space, tenant, or building alike. Business licensing and zoning compliance are currently reviewed as part of the Certificate of Occupancy application. Staff is working toward the formal separation of the Certificate of Occupancy, Certificate of Zoning Compliance, and Business License functions. The certificate of zoning compliance is included in the draft DDC, and the separation of the business license and certificate of occupancy processes will be addressed with a future building code update.

The following are general descriptions of each type of certificate and license:

Certificate of Occupancy: A certificate issued by the Building Official for the occupancy of a building or structure when it is determined that the building or structure complies with the provisions of all applicable codes of the City of Denton. It allows the City the ability to inspect for general life safety items of the building or structure to be occupied. This includes minimum provisions for light, heat, ventilation, sanitation, and egress.

Business License: A business license is issued by the Building Official for the operation of a business to occupy a building or space that has already obtained a certificate of occupancy and certificate of zoning compliance when it is determined that the specific business use complies with the provisions of all applicable building and zoning codes of the City of Denton. It also allows the City the ability to inspect for general life safety items of the space to be occupied. This includes minimum provisions for ventilation, sanitation, and egress specific to the occupancy classification of the business that is to occupy the space. A new business license would be issued at the change of ownership or use.

Date: March 8, 2019 Report No. 2019-047

Certificate of Zoning Compliance: A certificate of zoning compliance is issued by the Planning Director for the use of the land. The certificate of zoning compliance procedure provides a mechanism for the City to evaluate new and/or changes in use of any land to meet applicable standards of the DDC. This will only apply to non-residential uses and multifamily developments. A certificate of zoning compliance may also be to determine zoning compliance. As we move towards implementing procedures for a certificate of zoning compliance and business license, staff will develop a program that will include a transition from current practice and an educational and marketing program to inform the public of the new requirements.

STAFF CONTACT: Ron Menguita Principal Planner (940) 349-8328 [email protected]

Amber Rodgers Chief Plans Examiner (940) 349-8934 [email protected]

Date: March 8, 2019 Report No. 2019-048

INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL

SUBJECT: Information on Citizen Participation in the draft Denton Development Code.

EXECUTIVE SUMMARY: Following a work session regarding citizen participation on Feb. 26, 2019, staff wanted to clarify topics of discussion at that meeting. This informal staff report addresses the process, how meetings are handled, notifications, staffing impacts and responsibilities. This information will be brought back to City Council on March 19, 2019 for further discussion.

BACKGROUND: The City of Denton has been working on the Denton Development Code (DDC) update since summer 2017 and has held several meetings with various stakeholders including Planning and Zoning Commission, and City Council throughout the process. Include in the draft DDC, are regulations on the citizen participation process. City Council held a work session on citizen participation on November 6, 2018. Following that work session, City Council requested that the future development projects be encouraged to follow the future procedures and include these regulations in the draft DDC. The citizen participation was discussed again during a DDC work sessions on February 26, 2019.

DISCUSSION: During the February 26, 2019 work session, there were several questions raised and staff has provided the information below on the questions raised and solutions to be included in Section 2.4.3b of the draft DDC and department policies.

Citizen Participation Process Citizen participation is anticipated to be recommended for specific use permits, replats, watershed permits, comprehensive plan amendments, zoning changes, annexations, planned developments, and alternative environmentally sensitive area plans. The process for citizen participation is listed below:

Pre-Application Citizen Participation Director Review 1st Neighborhood Meeting Report Project Review 2nd Neighborhood Public Hearings Plan Meeting Submitted Meeting, if needed

The DDC will outline generally the citizen participation process, but departmental policies will provide the operational details and protocols for implementation. For example, the DDC will require that citizen participation reports include certain items while departmental policies will discuss the details of how to submit, format, etc. Staff will be drafting these policies to accompany updates to the Development Administration Manual.

Date: March 8, 2019 Report No. 2019-048

In the draft DDC, the citizen participation procedures are strongly recommended but not required. City Council initially discussed requiring neighborhood meetings during the November 2018 work session but was changed at the suggestion of the DDC legal consultant, who was concerned with the legality of requiring this meeting, to strongly recommend applicants to participate in the citizen participation process.

Citizens Comments Staff wants to emphasize that the citizen participant will provide greater transparency for the neighborhoods and an opportunity to provide input that could help guide the future development in a way that may address neighborhood concerns but may give the neighborhood a false sense of ability to prevent developments or the applicant make changes. The major change with this process will be increase transparency and awareness, provide the ability for input, and a consolidation of comments to be included in agenda materials.

Number of Meetings While the draft DDC does recommend applicants to hold two public meetings during the development process, there may be instances where this does not occur. The draft DDC does have the flexibility to allow some discretion in this area. Staff will determine whether a second meeting is needed to address concerns raised through the process. For projects that previously received City Council approval but have not held a public meeting within 12 months, the departmental policy will recommend developers hold an additional public meeting prior to construction.

Location Staff will include a requirement that neighborhood meetings be held within the city limits of Denton at a location open to the general public. This change will be included in the next draft of the DDC.

Notifications to Neighborhood Leaders An area of discussion during the recent work session was how and who would be notifying neighborhood leaders. Included in the draft DDC is an affected parties section which describes that staff will provide applicants the names and mailing addresses of property owners within 200 feet of the subject property and residents within 500 feet of the subject. Additionally, staff will provide to the applicant homeowners association contact or other known neighborhood contacts.

Staffing Impacts Below is a summary of the Fiscal Year 2017-18 project counts for the projects that would be required to hold neighborhood meetings. Based on this information staff expect an additional 480 total hours of meetings annually or 7.9 hours per week. This would be in addition to City Council, P&Z and special projects like the DDC update, small area plans and others.

Date: March 8, 2019 Report No. 2019-048

Project Type FY17-18 Count Total Staff Hours1

ALTERNATIVE ESAs 2 12 ANNEXATIONS 3 18 COMP PLAN AMENDMENTS 1 6 PLANNED DEVELOPMENTS 10 60 REPLATS 20 120 SPECIFIC USE PERMITS 11 66 ZONING CHANGES 33 198 Grand Total 80 480

1. Staff hours based on future procedures and 3 hours per occurrence.

While most of the time the assigned planner attends their projects neighborhood meetings, there are instances where another staff member has needed to attend, or, on rare occasions, no staff attended.

Following direction by City Council to pilot the citizen participation process, the City has seen an increase in the number of neighborhood meetings and expect a significant increase following adoption of the DDC. Currently, it is not an uncommon requirement that planners work after hours three nights a week for City Council, P&Z, and other meetings. For example, Development Services staff has five P&Z and City Council meetings plus an additional 9 public meetings in the last four weeks. This is an estimated 150 staff hours for after-hours business.

Meeting Report Responsibility Staff recommends that the citizen participation report be written by the developer on a form provided by the City. Some considerations with requiring that City staff write a citizen participation report are: • A staff drafted report could have the perception of bias either for or against a development. There will be a discussion of the comments received from the public in the staff analysis. • As discussed in the prior section, there may be instances where staff are unable to attend a neighborhood meeting and therefore unable to write a report.

The developers would be more appropriate as the party responsible for the drafting of a report because the neighborhood meetings are hosted by the developer, the developer would always be in attendance and more knowledgeable about the planned changes in the project as a result of input from those meetings. Included in the departmental policies would be a standard report template to be used by the developer to clearly indicate the details of the meeting, comments received from citizens and the plans to address those comments. Staff is also working to provide a way for citizen to provide comments directly to the City regarding different development projects.

Staff would be reviewing these documents for accuracy in conjunction with the project plans and the citizen participation report will be included in the City Council and P&Z agenda materials.

Date: March 8, 2019 Report No. 2019-048

ATTACHMENT(S): Draft Citizen Participation Report Template

STAFF CONTACT: Scott McDonald Director of Development Services (940) 349-8539 [email protected]

[Citizen Participation Report Example]

Citizen Participation Report for City of Denton

Case #Z19-0000

Report Date:

Overview: [Provide a brief overview of the project]

Applicant Contact:

Name Address Phone Email

Neighborhood Meetings: Include Dates and locations of all meetings where citizens were invited to discuss the applicant’s proposal [Please comments, sign in lists and other feedback are attached];

Correspondence: [Please include any correspondence that you’ve had with residents including mailings]

Results:

1. Summary of concerns, issues and problems:

2. How concerns issues and problems were addressed:

3. Concerns, issues and problems not addressed and why:

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Exported on March 8, 2019 3:40:20 PM CST Page 2 of 2 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Meeting Agenda City Council

Tuesday, March 19, 2019 12:00 PM Work Session Room & Council Chambers

WORK SESSION BEGINS AT 12:00 P.M. IN THE WORK SESSION ROOM

REGULAR MEETING BEGINS AT 6:30 P.M. IN THE COUNCIL CHAMBERS After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, March 19, 2019 at 12:00 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered:

WORK SESSION

1. Citizen Comments on Consent Agenda Items This section of the agenda allows citizens to speak on Consent Agenda Items only. Each speaker will be given a total of three (3) minutes to address any items he/she wishes that are listed on the Consent Agenda. A Request to Speak Card should be completed and returned to the City Secretary before Council considers this item.

2. Requests for clarification of agenda items listed on the agenda for March 19, 2019.

3. Work Session Reports A. ID 19-520 Receive a report, hold a discussion and give staff direction regarding the FY 2017-18 Comprehensive Annual Financial Report and annual audit. (Audit/Finance Committee approves 2-0) B. ID 19-120 Receive a report, hold a discussion, and give staff direction regarding New Market Tax Credits. C. DCA18-0009 Receive a report, hold a discussion, and provide staff direction on the Denton g Development Code Update and Draft Zoning Map. D. ID 19-569 Receive a report, hold a discussion, and provide staff direction regarding Senate Bill 1156 which was recently introduced in the 86th Texas Legislature and would require the Texas Railroad Commission to hold public hearings on certain gas well permit applications. Following the completion of the Work Session, the City Council will convene in a Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, or as otherwise allowed by law.

1. Closed Meeting: A. ID 19-363 Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under

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Texas Government Code Section 551.086; Consultation with Attorneys - Under Texas Government Code Section 551.071.

Discuss and deliberate on strategies and opportunities for the City to acquire natural gas for the Denton Energy Center (“DEC”); receive a presentation from staff regarding public power competitive and financial matters for the purchase of natural gas; and provide recommendations on the purchase of natural gas under the existing Base Contract for the Purchase and Sale of Natural Gas with Enterprise Products Operating, LLC. Consultation with the City’s attorneys regarding legal issues associated with the agreements described above where discussion of these legal matters in an open meeting would conflict with the duty of the City’s attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. B. ID 19-557 Deliberations Regarding Real Property - Under Texas Government Code, Section 551.072; Consultation with Attorneys - Under Texas Government Code, Section 551.071.

Discuss, deliberate, and receive information from staff and provide staff with direction pertaining to the potential purchase of real property interests located within the City of Denton, Denton, County, Texas. The potential purchases are related to the City’s park and tree preservation initiatives. Consultation with the City’s attorneys regarding legal issues associated with the potential acquisition of the real property interests described above where a public discussion of these legal matters would conflict with the duty of the City’s attorneys to the City of Denton and the Denton City Council under the Texas Rules of Professional Conduct of the State Bar of Texas. Any final action, decision, or vote on a matter deliberated in a Closed Meeting will only be taken in an Open Meeting that is held in compliance with Texas Government Code, Chapter 551, except to the extent such final decision, or vote is taken in the Closed Meeting in accordance with the provisions of Section 551.086 of the Texas Government Code (the ‘Public Power Exception’). The City Council reserves the right to adjourn into a Closed Meeting or Executive Session as authorized by Texas Government Code, Section 551.001, et seq. (The Texas Open Meetings Act) on any item on its open meeting agenda or to reconvene in a continuation of the Closed Meeting on the Closed Meeting items noted above, in accordance with the Texas Open Meetings Act, including, without limitation Sections 551.071-551.086 of the Texas Open Meetings Act. ______

REGULAR MEETING OF THE CITY OF DENTON CITY COUNCIL AT 6:30 P.M. IN THE COUNCIL CHAMBERS AT CITY HALL, 215 E. MCKINNEY STREET, DENTON, TEXAS AT WHICH THE FOLLOWING ITEMS WILL BE CONSIDERED:

1. PLEDGE OF ALLEGIANCE A. U.S. Flag B. Texas Flag “Honor the Texas Flag – I pledge allegiance to thee, Texas, one state under God, one and indivisible.”

2. PROCLAMATIONS/PRESENTATIONS

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A. ID 19-556 National Blood Clot Awareness Month

3. PRESENTATION FROM MEMBERS OF THE PUBLIC A. Review of procedures for addressing the City Council.

B. Receive Scheduled Citizen Reports from Members of the Public. This section of the agenda permits any person who has registered in advance to make a citizen report regarding a public business item he or she wishes to be considered by the City Council. This is limited to no more than four (4) speakers per meeting with each speaker allowed a maximum of four (4) minutes to present their report. At the conclusion of each report, the City Council may pose questions to the speaker or may engage in discussion. If the City Council believes that a speaker's report requires a more detailed review, the City Council will give the City Manager or City Staff direction to place the item on a future work session or regular meeting agenda and advise staff as to the background materials to be desired at such meeting. 1. ID 19-513 Charlotte Robinson regarding climate change.

C. Additional Citizen Reports - This section of the agenda, which is also known as the "open microphone" section, permits any person who is not registered for a citizen report to make comments about public business items not listed on the agenda. This section is limited to two open microphone speakers per meeting with each speaker allowed a maximum of four (4) minutes. Such person(s) must file a "Blue Card" requesting to speak during this period, prior to the calling of this agenda item.

During open microphone reports under this section of the agenda, the Council may listen to citizens speak. However, because notice of the subject of the open microphone report has not been provided to the public in advance, the Texas Open Meetings Act limits any deliberation or decision by the Council to: a proposal to place the item on a future agenda; a statement of factual policy; or a recitation of existing policy. Council Members may not ask the open microphone speakers questions or discuss the items presented during open microphone reports. NOTE: If audio/visual aids during presentations to Council are needed, they must be submitted to the City Secretary 24 hours prior to the meeting.

4. CONSENT AGENDA Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Listed below are bids, purchase orders, contracts, and other items to be approved under the Consent Agenda (Agenda Items A – V). This listing is provided on the Consent Agenda to allow Council Members to discuss or withdraw an item prior to approval of the Consent Agenda. If no items are pulled, Consent Agenda Items A – V below will be approved with one motion. If items are pulled for separate discussion, they may be considered as the first items following approval of the Consent Agenda. A. ID 19-014 Consider adoption of an ordinance approving an abandonment and rearrangement agreement for gas pipeline(s) between the City of Denton and Enlink North Texas Gathering, LP, a Texas Limited Partnership; providing for the payment of six hundred eighteen thousand dollars ($618,000.00) to Enlink Midstream Services, LLC for the

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rearrangement of gas pipelines in conflict with the new alignment of South Bonnie Brae Street, the limits of which being generally bounded between Vintage Boulevard and Roselawn Drive; authorizing the City Manager to execute the agreement; making expenditures thereto; and providing an effective date. B. ID 19-414 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing and approving the City Manager, or his designee, to execute an agreement with STHProject, Inc., a non-profit corporation, providing for authorization of STHProject, Inc., to provide free lunches to children under the age of eighteen and qualifying disabled participants through age 21 at no charge to said recipients during the summer months at designated City of Denton Park and Recreation facility sites; and providing an effective date. C. ID 19-444 Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Filmmaking Access for the purpose of 2019 Oracle in Time sponsorship; providing for the expenditure of funds; and providing an effective date. ($500 Hotel Occupancy Tax and Sponsorship Committee recommends 2-0) D. ID 19-477 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, accepting competitive bids and awarding a contract for the supply of Traffic Signs and Accessories for the City of Denton Distribution Center; providing for the expenditure of funds therefor; and providing an effective date (IFB 6883 - awarded to the lowest responsive bidder for each line item: Centerline Supply, Inc., in a total not-to-exceed amount of $82,000, Dobie Supply, LLC, in a total not-to-exceed amount of $344,000, Vulcan, Inc., in a total not-to-exceed amount of $22,000, in a total four (4) year, not-to-exceed amount of $448,000). E. ID 19-515 Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, TX, and Denton Black Chamber of Commerce, Inc. for the purpose 22nd Annual Banquet sponsorship; providing for the expenditure of funds; and providing for an effective date. ($440 Hotel Occupancy Tax and Sponsorship Committee recommends 2-0) F. ID 19-516 Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, TX, and Habitat for Humanity of Denton County, Inc. for the purpose Dream Builder’s Luncheon sponsorship; providing for the expenditure of funds; and providing for an effective date. ($500 Hotel Occupancy Tax and Sponsorship Committee recommends 2-0) G. ID 19-517 Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, TX, and Denton Assistance Center, Inc., dba Serve Denton for the purpose 2019 Celebration sponsorship; providing for the expenditure of funds; and providing for an effective date. ($1,500 Hotel Occupancy Tax and Sponsorship Committee recommends __-__) H. ID 19-526 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the approval of a first amendment to a Professional Services

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Agreement between the City of Denton and Huitt-Zollars, Inc., for Professional Design Services for the McKinney Street Widening Project; amending the contract approved by City Council on October 23, 2018, in the not-to-exceed amount of $1,641,200; providing for the expenditure of funds therefor; and providing an effective date (RFQ 6590-040 - providing for an additional expenditure amount not-to-exceed $382,600, for a total contract amount not-to-exceed $2,023,800). The Public Utilities Board recommends approval ( - ). I. ID 19-527 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the approval of a first amendment to a Professional Services Agreement between the City of Denton and Teague Nall and Perkins, Inc., for Professional Engineering Services for the West Hickory Street Drainage, Paving and Sidewalks Project; amending the contract approved by City Council on October 17, 2018, in the not-to-exceed amount of $167,500; providing for the expenditure of funds therefor; and providing an effective date (RFQ 6590-043 - providing for an additional expenditure amount not-to-exceed $90,300, for a total contract amount not-to-exceed $257,800). The Public Utilities Board recommends approval ( - ). J. ID 19-528 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a contract with Integrity Municipal Systems, LLC, to refurbish the bulk caustic storage tank for the chlorine scrubber system of the City of Denton’s Lake Ray Roberts Water Treatment Plant; providing for the expenditure of funds therefor; and providing an effective date (IFB 6750 - awarded to Integrity Municipal Systems, LLC, in the not-to-exceed amount of $111,400). The Public Utilities Board recommends approval ( - ). K. ID 19-530 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or his designee, to execute a contract through the TXMAS Cooperative Purchasing Network Contract Number 17-8407 for the acquisition of Footwear for the City of Denton; providing for the expenditure of funds therefor; and providing an effective date (File 6982 - awarded to Red Wing Shoes in the four (4) year not-to-exceed amount of $400,000). The Public Utilities Board recommends approval ( - ). L. ID 19-531 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the approval of a first amendment to a contract between the City of Denton and Classic Landscapes, Inc., for Landscape and Sod Replacement Services for various City departments, amending the contract approved by City Council on June 7, 2016, in the not-to-exceed amount of $500,000; providing for the expenditure of funds therefor; and providing an effective date (File 6098 - providing for an additional expenditure amount not-to-exceed $125,000, for a total contract amount not-to-exceed $625,000). The Public Utilities Board recommends approval ( - ). M. ID 19-541 Consider the approval of an ordinance of the City of Denton, a Texas home rule corporation (“City”), authorizing the City Manager or his designee, to administratively approve and execute temporary Rights-of-Entry to allow public agencies, utilities, and their representatives to conduct environmental studies and field survey work on

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City-owned property when such work is being conducted in preparation for a public project. N. ID 19-542 Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from Joey Hawkins, representing Sweetwater Grill and Tavern, from the Downtown Reinvestment Grant Program not to exceed $5,000; and providing for an effective date (the Economic Development Partnership Board recommends approval 9-0). O. ID 19-543 Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from Charles Nolet, representing the Loophole, from the Downtown Reinvestment Grant Program not to exceed $5,000; and providing for an effective date (the Economic Development Partnership Board recommends approval 9-0). P. ID 19-544 Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application for Joey Hawkins, representing Jupiter House Coffee, from the Downtown Reinvestment Grant Program not to exceed $25,000; and providing for an effective date (the Economic Development Partnership Board recommends approval 8-0). Q. ID 19-548 Consider approval of the minutes of January 15, February 4, February 5, February 12, and February 26, 2019. R. ID 19-558 Consider adoption of an ordinance of the City of Denton, Texas amending the Fiscal Year 2018-19 Budget and Annual Program of Services of the City of Denton to allow for increase to the Animal Donation Fund of $83,000; and an increase to the Westpark TIRZ Fund of $198,991; declaring a municipal purpose; providing a severability clause; providing an open meetings clause; and providing for an effective date. S. ID 19-559 Consider adoption of an ordinance of the City of Denton authorizing a service agreement between the City of Denton and the Denton Black Chamber of Commerce; authorizing the City Manager, or his designee, to execute said agreement; providing for the expenditure of Council Contingency funds; and providing for an effective date. ($300) T. ID 19-570 Consider adoption of an ordinance of the City of Denton, approving a City sponsorship in an amount not to exceed $250 of in-kind services to the Denton Assistance Center, Inc. (DBA “Serve Denton”) for the Celebration Fundraising Event, to be held on Saturday, March 30, 2019, from 5:30 p.m. to 8:30 p.m. at the Embassy Suites by Hilton Denton Convention Center; and providing an effective date. U. ID 19-571 Consider adoption of an ordinance approving a salary increase of three percent (3%) for City Auditor Umesh Dalal under the performance review provision of his employment agreement with the City; authorizing the expenditure of funds; and providing an effective date. V. ID 19-572 Consider approval of an ordinance approving a first amendment to the employment agreement for the Presiding Judge and authorizing the Mayor to execute said amendment to the agreement; setting a 6% contribution of Presiding Judge’s base salary to her

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ICMA-RC’s 457 plan; authorizing expenditures, and providing an effective date.

5. ITEMS FOR INDIVIDUAL CONSIDERATION A. ID 19-365 Consider adoption of an Ordinance of the City of Denton authorizing the City Manager, or designee, to execute a physical gas transaction confirmation for the purchase of natural gas under the terms and conditions of base contract for the purchase and sale of natural gas with Enterprise Products Operating, LLC; providing for the expenditure of funds; and, providing for an effective date. The Public Utilities Board recommends approval (_-_). B. ID 19-390 Consider adoption of an ordinance of the City Council of the City of Denton, a Texas home-rule municipal corporation, providing for, authorizing, and approving the Denton Affordable Housing Fee Grant Program; establishing the guidelines for the program and the provisions for enforcement thereof; establishing an annual budget; and declaring an effective date. C. HL19-0002a Consider approval of an application for a historically significant site tax exemption for the property at 2400 North Bell Avenue, in accordance with Chapter 10, Article VII, Sections 10-131, (4) and 10-134 of the Denton Code of Ordinances. (HL19-0002, Roman McAllen).

6. PUBLIC HEARINGS A. S18-0007a Hold a public hearing and consider adoption of an ordinance for a Specific Use Permit to allow for a vehicle repair use on approximately 0.11 acre. The property is generally located on the south side of E. McKinney Street, approximately 135 feet west of Oakland Street in the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof; providing a severability clause and an effective date. (S18-0007, Dent One - Auto Hail Repair, Hayley Zagurski). B. PDA18-0009a Hold a public hearing and consider adoption of an ordinance regarding a Detail Plan for a 2.96-acre parcel located within the Planned Development 176 (PD-176) Zoning District, generally located on the west side of North FM 2499, approximately 1,450 feet north of Hickory Creek Road in the City of Denton, Denton County, Texas, to allow a storage warehouse (self-storage) use; providing for a penalty in the maximum amount of $2,000.00 for violations thereof; providing for severability; and establishing an effective date. (PDA18-0009a, Proposed Self Storage Facility, Hayley Zagurski). C. DCA18-0008 Hold a public hearing and consider adoption of an ordinance regarding a proposed e revision to the Denton Development Code; specifically to amend Subchapters 13 and 17 related to tree preservation, landscape standards, and environmentally sensitive area standards; providing for a penalty in the maximum amount of $2,000.00 for violations thereof; providing a severability clause and an effective date. (DCA18-0008, Conservation and Landscape Code, Hayley Zagurski). D. S19-0001b Hold a public hearing and consider adoption of an ordinance approving a Specific Use Permit to allow for an Accessory Dwelling Unit behind an existing residence on approximately 0.5374 of an acre. The property is generally located on the south side of Roberts Street, west of Brown Drive, in the City of Denton, Denton County, Texas

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(S19-0001, 606 Roberts Accessory Building, Sean Jacobson). E. Z18-0028b Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, regarding a change in the zoning district and use classification from Neighborhood Residential Mixed Use 12 (NRMU-12) District to a Neighborhood Residential Mixed Use (NRMU) District with overlay restrictions on approximately 8.7 acres of land generally located on the north side of Audra Lane 110 feet east of Bayfield Street in the City of Denton, Denton County, Texas; adopting an amendment to the City’s official zoning map; providing for a penalty in the maximum amount of $2,000.00 for violations thereof; providing for severability and establishing an effective date. The Planning and Zoning Commission voted 7-0 to approve the request with overlay restrictions. (Z18-0028, Audra Heights Phase II, Julie Wyatt) F. ID 19-553 Hold a public hearing and consider adoption of an ordinance of the City of Denton, adopting Standards of Care for recreational care programs administered by Denton’s Parks and Recreation Department as required by Texas Human Resources Code Section 42.041 (b) (14); and providing an effective date.

7. CONCLUDING ITEMS A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to 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; 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; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda.

B. Possible Continuation of Closed Meeting topics, above posted. C E R T I F I C A T E

I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the ______day of ______, 2019 at ______o'clock (a.m.) (p.m.)

______CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM AND COUNCIL CHAMBERS ARE ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY’S OFFICE.

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Page 9 Printed on 3/8/2019 Future Work Session Items 3/8/2019

Currently Slated Work Session Items Meeting Date Notes

New Market Tax Denton Development SB 1156 Policy 19‐Mar Credits Mews Streets Code FY 2017‐2018 CAFR Discussion

Community Market Credit and Supplemental Denton Development 26‐Mar Collections Study Request Code Eagle Substation McKenna Park

1‐Apr Lunch Financial Forecast Infrastructure and Facility Capital Project Plans

Development Service Denton Development 2‐Apr Airport Governance Scooter Share Charity Care Policy Fees Code Integrated Pest Construction Code Special Event Downtown Square Management 9‐Apr Review Ordinance Update Design Standards Program P‐Card Audit

Enhanced Leachate Funding Options for Recirculation Shelter and Business Case Gateway Signage and 16‐Apr Homelessness Analysis Affordable Housing Design Standards Rayzor Ranch PID

Home Chemical Collection and Bulky Work Session Item Business Case 23‐Apr Strategy Session Traffic Signalization Zero Energy Homes Rayzor Ranch Park Analysis

AED Training will Update on Naming Hickory Street take place at the 6‐May Lunch Policy Bicycle Lanes Bicycle Share Pilot AED Training close of the meeting

Recommendations Red Light Camera Right‐of‐Way 7‐May from HSAC and CDAC Pilot and Contract DEC Noise Mitigation Ordinance Follow‐Up

Economic Development Corridor/Small Area 14‐May Reinvestment Grant

Yard Waste Collection Business 21‐May Case Analysis

3‐June Lunch Joint City/EDPB Luncheon

South Lakes Park Purchasing Manual Employee Ethics Parking Lot Update Blue Zones Policy Solid Waste Rate Discussion Mandatory Recycling (Potentially for Commercial and combined with Multifamily Real Estate Policy DEC Noise Mitigation budget) Utility Billing Information for Living Wage for City Traffic and Roadway Public Hearing Date TBD Contractors Sobering Centers Project Technology Notification

Top 5 from 11/27 Work Session

Top priorities from 3/4 Work Session

March 2019 Sun Mon Tue Wed Thu Fri Sat 1 2

3 4 5 6 7 8 9 11:30 am Council 12:00 pm CC Work 5:00pm P&Z Work Session 11:00am Committee on the 11:00 am DCRC Luncheon Session 6:30pm P&Z Regular Session Environment 5:30 pm Traffic Safety 6:30 pm CC Regular Commission Session 4:00pm Public Art Committee HLC- Cancelled 10 11 12 13 14 15 16 9:00am Public Utilities No Council Meeting 11:00am EDP 11:00 am DCRC Board No Agenda Committee

17 18 19 20 21 22 23 12:00 pm CC Work 9:00 am Mobility HOT & Sponsorship 11:00 Session Committee 6:30 pm CC Regular 5:00pm P&Z Work Session 4:00pm HaBSCo Meeting Session 6:30pm P&Z Regular Session 5:00pm Committee on Persons with Disabilities 24 25 26 27 28 29 30 6:00pm Public Utilities 10:00am Council Airport 11:00am TIF Board (TIRZ # 1) Board Comm. 12:00 pm 4th Tuesday 4:00pm ZBA Session

31

April 2019 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 11:30 am Council 2:00 pm CC Work Session 5:00pm P&Z Work Session 4:00pm Public Art Committee Luncheon 6:30 pm CC Regular 6:30pm P&Z Regular Session 1:30pm Committee on the Session Environment

5:30 pm Traffic Safety Commission 7 8 9 10 11 12 13 9:00am Public Utilities 9:00 am Mobility 11:00am EDP Board Committee 2:00 pm 2nd Tuesday 5:30pm HLC Session

14 15 16 17 18 19 20 2:00 pm CC Work Session 5:00pm P&Z Work Session 4:00pm HaBSCo Meeting 6:30 pm CC Regular 6:30pm P&Z Regular Session Session 5:00pm Committee on Persons with Disabilities

21 22 23 24 25 26 27 6:00pm Public Utilities 2:00 pm 4th Tuesday Board Session

28 29 30 4:00pm ZBA No Council Meeting

May 2019 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5:00pm P&Z Work Session 4:00pm Pubic Art Committee 6:30pm P&Z Regular Session

5 6 7 8 9 10 11 9:00am Public Utilities 9:00 am Mobility 11:00am EDP Board Committee 11:30 am Council 2:00 pm CC Work Session Luncheon 6:30 pm CC Regular 1:30pm Committee on the Session Environment 5:30 pm Traffic Safety Commission 12 13 14 15 16 17 18 5:30pm HLC 5:00pm P&Z Work Session 4:00pm HaBSCo Meeting 6:30pm P&Z Regular Session 5:00pm Committee on Persons with Disabilities

19 20 21 22 23 24 25 6:00pm Public Utilities 2:00 pm CC Work Session 11:00am TIF Board (TIRZ # 1) Board 6:30 pm CC Regular Session 4:00pm ZBA

26 27 28 29 30 31 No Council Meeting

Construction Projects Report

Week of March 11 ‐17, 2019

For general inquiries and questions, please contact the Project Management Office at (940) 349‐7227

Proposed Date Proposed Date Other Department Updated Information / Street/Intersection From To of Construction of Completion Brief Description of Construction Department Letters Communication Contact: Notes CURRENT PROJECTS See Yellow Highlighted for Major Closures UNT 2018 Residence Hall Project Coordinate with Ave. A Maple Eagle 3/19/18 3/31/19 Engineering N/A (940) 349‐8910 (Both SB Lanes Closed) UNT UNT Monument Wall Public Works Ave. C Hickory Mulberry 9/24/18 3/8/19 UNT Project (940) 349‐8905 (Road Closure) Inspections

Street Reconstruction Bernard St. Fannin W Chestnut 1/4/19 4/5/19 Streets 12/17/18 (940) 349‐7160 (Street Closure)

Sewer Line Installation Completion extended from Bonnie Brae St. University Linden 3/4/19 3/24/19 Engineering (940) 268‐9842 (West side Southbound Lane Closure) 3/10/19 North of Street Widening Bonnie Brae St. Roselawn 7/1/17 7/1/19 Engineering 6/14/18 (940) 349‐8910 Vintage (Phase 1) Street Reconstruction Bowling Green St. Georgetown Auburn 1/5/19 4/10/19 Streets 12/17/18 (940) 349‐7160 (Street Closure) Street Panel Repair Carroll Blvd. Congress Egan 2/11/19 3/29/19 Streets 2/4/19 (940) 349‐7160 (Northbound Only Street Closure)

Turn Lane Upgrade Completion extended from Dallas Dr. Intersection of Teasley 11/12/18 4/26/19 Streets 11/5/18 (940) 349‐7160 (Temporary Lane Closure) 3/8/19

Drainage and Water Improvements Drainage Eagle Dr. Elm Carroll 1/31/19 5/31/19 (940) 268‐9726 (Street Closure) Water

City of FM 2181 Denton/Corinth Lillian Miller 7/11/17 7/1/20 Street Widening TxDOT TxDOT (940)‐387‐1414 City limits

Page 1 of 6 Proposed Date Proposed Date Other Department Updated Information / Street/Intersection From To of Construction of Completion Brief Description of Construction Department Letters Communication Contact: Notes Wastewater Main Replacement, Street Repairs Wastewater Fulton St. Congress Gregg 2/27/19 4/9/19 Wastewater 2/14/19 (Daily Street Closure will re‐open at (940) 349‐7300 the end of each day) Delayed Street Repairs Atmos Utility Relocations, Atmos Hickory St. Intersection of Welch 12/10/18 3/8/19 Atmos following from 3/8/19 to (Parking Area Only) (940) 205‐9821 6/3/19 Website & Social Safety Improvements Hickory Creek Rd. Riverpass FM 1830 2/4/19 3/15/19 County Media (940) 349‐8910 (Temporary Lane Closure) Notifications Wastewater Main Replacement Hillcrest St. Crescent Emory 3/1/19 4/25/19 (Daily Street Closure will re‐open end Wastewater 2/22/19 Website & Letters (940) 349‐7300 of each day) Water, Wastewater Main Wastewater improvements Nextdoor Replacement and Street Repairs Water to follow 4/10/19‐8/5/19 Kerley St. Duncan Shady Oaks 1/3/19 3/18/19 Water Notification, (Daily Street Closure will re‐open end (940) 349‐7167 Streets Repairs 8/5/19‐ Door Hanger of each day) 1/9/20 Curb and Gutter Replacement Kings Row Yellowstone Sherman 12/26/18 4/26/19 Streets 12/7/18 (940) 349‐7160 (Temporary Lane Closure) Street Reconstruction Laguna Dr. Yellowstone Sherman 12/17/18 4/26/19 Streets 12/7/18 (940) 349‐7160 Updated (Street Closure) Street Widening Mayhill Rd. US 380 Edwards 9/1/17 2/1/20 Engineering 1/3/18, 1/24/18 Door Hangers (940) 208‐4318 (Temporary Lane Closures) Street Construction McKinney St. Mack Bellaire 2/25/19 3/25/19 Engineering 2/14/19 (940) 268‐9726 (Temporary Lane Closure) Storm Drain Installation and E. McKinney St. Grissom S. Fork 3/11/19 7/1/19 Street Widening Engineering (940) 349‐8910 New Project (Temporary Lane Closure) Drainage Improvements, Water Main Drainage Extended completion from Mistywood Ln. Rockwood Jamestown 1/3/19 3/29/19 Replacement, Street Repairs Drainage 12/17/18 (940) 349‐8488 3/5/19 (Intermittent Street Closure) Concrete Street Panel and Sidewalk Mustang Dr. Sundown Palomino 3/4/19 4/5/19 Repair Streets (940) 349‐7160 (Temporary Lane Closure) Eagle Drainage Improvements Myrtle St. Eagle Maple 9/4/18 5/31/19 Engineering 8/21/18 Contacted DCTA (940) 349‐8910 (Street Closure)

Page 2 of 6 Proposed Date Proposed Date Other Department Updated Information / Street/Intersection From To of Construction of Completion Brief Description of Construction Department Letters Communication Contact: Notes Sidewalk Repair Paisley St. Ruddell Audra 1/22/19 3/29/19 Streets 1/16/19 (940) 349‐7160 (No Street Parking) FM 2181 Road Widening Nextdoor Ranchman Blvd. Intersection of FM 2181 1/4/19 TBD (Road Closure on Ranchman to the TxDOT Notification, (940) 349‐8910 east and west of FM 2181) Electronic Signs Drainage Improvements, Drainage Extended completion from Rockwood Ln. Royal Mistywood 11/26/18 3/29/19 Street Repairs Drainage 11/23/18 Door Hangers (940) 349‐8488 3/5/19 (Intermittent Street Closure) US 377 Street Improvement Nextdoor Extended completion from Roselawn Dr. US 377 Bernard 1/7/19 3/16/19 TxDOT (940) 387‐1414 (Road Closure) Notification 3/2/19 Drainage Improvements, Drainage (940) Extended completion from Royal Ln. Royal Rockwood 11/26/18 3/29/19 Street Repairs Drainage 11/23/18 349‐8488 3/5/19 (Intermittent Street Closure) Atmos Utility Relocations Nextdoor Street Repairs to follow Scripture St. Ector Gober 2/4/19 3/15/19 (Westbound Lane Closure; Intersection Atmos (940) 205‐9821 Notification 3/25/19‐TBD at Hillcrest Closed) Concrete Street Panel and Sidewalk Winding Silent Star Ln. Montecito 2/25/19 3/29/19 Repair Streets 2/14/19 (940) 349‐7160 Stream (Temporary Lane Closure) Street Construction Nextdoor Springtree St. Pecan Grove McKinney 2/25/19 3/25/19 Engineering (940) 268‐9726 (Street Closure) Notification Street Reconstruction CM Nextdoor Stuart Rd. Long Keystone 1/30/19 4/30/19 (940) 231‐9963 (Street Closure) Construction Notification Street Widening 0.26 mi south of Public Meeting US 377 (Ft. Worth Dr.) IH 35E 12/3/18 12/12/20 (Temporary Lane Closures during non‐ TxDOT 9/25/18 (940) 387‐1414 FM 1830 10/8 peak traffic) Street Reconstruction Yellowstone Pl. Kings Row Monterey 1/28/19 5/20/19 Streets 1/23/19 (940) 349‐7160 (Temproary Block Closures)

Page 3 of 6 Proposed Date Proposed Date Other Department Updated Information / Street/Intersection From To of Construction of Completion Brief Description of Construction Department Letters Communication Contact: Notes COMPLETED PROJECTS

Wastewater Main Replacement Wastewater Atlas Dr. Redstone Hercules 1/8/19 3/1/19 Wastewater 12/17/18 (Temporary Lane Closures) (940) 349‐7300

Southern dead Street Reconstruction Castle Ln. Wilsonwood 1/3/19 2/22/19 Streets 12/17/18 (940) 349‐7160 end (Street Closure) Street Panel Repair Forrestridge Dr. Timbergreen Rolling Hills 2/11/19 3/1/19 Streets 2/4/19 (940) 349‐7160 (Southbound Road Closure) Water Taps with Pavement Repairs Nextdoor Jannie St. McKinney Noble 2/25/19 3/1/19 Engineering (940) 268‐9726 (Temporary Lane Closure) Notification Nextdoor Concrete Improvements Developer Junipero St. Del Rey Dolores 1/21/19 2/22/19 Notification, Door (940) 268‐9726 (Temporary Lane Closures) (Gilco) Hangers Wastewater Improvements Nextdoor Kendoph Ln. I‐35 Willowwood 11/26/18 3/1/19 (Daily Street Closure will re‐open end Wastewater N/A Notification, (940) 349‐7300 of each day) Door Hanger Street Panel Repair Lipizzan Dr. Wheeler Ridge Thoroughbred 1/22/19 3/1/19 Streets 1/11/19 (940) 349‐7160 (Temporary Lane Closure) Utility Improvements McKinney St. Woodrow Jannie 12/10/18 3/1/19 Engineering N/A (940) 349‐8910 (Temporary Outside Lane Closure) Curb and Gutter Replacement Sierra Dr. Yellowstone Sherman 11/26/18 3/29/19 Streets 11/14/18 (940) 349‐7160 (Temporary Lane Closure) Contacted Mayhill Road Widening Spencer Rd. Mayhill Bridges 4/2/18 3/4/19 Engineering 3/16/2018, 9/14 departments (940) 208‐4318 New Completion (Road Closure) affected

Page 4 of 6 Proposed Date Proposed Date Other Department Updated Information / Street/Intersection From To of Construction of Completion Brief Description of Construction Department Letters Communication Contact: Notes UPCOMING PROJECTS

Water Main Replacement Street Repairs to follow ‐ Atlas Dr. Redstone Hercules 3/19/19 5/15/19 Water 12/17/18 Website & Letters (940) 349‐7167 (Temporary Lane Closures) Dates TBD Intersection Improvemetns Updated Start Date from Bell Ave. Intersection of McKinney 4/8/19 5/4/19 (Northbound right turn lane, Engineering 2/22/19 Website & Letters (940) 349‐8910 3/11/19 temporary lane closure) North South Water Main Phase 2 Bonnie Brae St. Roselawn I35E TBD TBD Engineering 11/26/18 (940) 349‐8910 (Temporary Lane Closures) Street Panel Repair Carroll Blvd. Panhandle Crescent 3/25/19 4/26/19 Streets (940) 349‐7160 (Northbound Only Street Closure) Water Main Replacement Hercules Ln. Sherman Stuart 3/19/19 7/8/19 Water (940) 349‐7167 (Temporary Lane Closure) Street Widening Hickory Creek Rd. Teasley Riverpass TBD TBD Engineering 11/26/18 (940) 349‐8910 (Temporary Lane Closures) Water and Sewer Improvements Hinkle Dr. Mimosa Greenbriar 3/18/19 3/30/19 Engineering (940) 268‐9842 New Project (Closed to Thru Traffic) Phase I‐ Storm Water Improvements Start Date Updated from Hinkle Dr. University Windsor 4/1/19 6/1/20 (Magnolia Drainage Ph II Engineering 11/13/18 (940) 349‐8910 3/1/19 Temporary Lane Closures) Water Main Replacement Johnson St. E. Collins E. Daugherty 5/16/19 6/27/19 Water (940) 349‐7167 (Temporary Lane Closure) Street Repairs Kendoph Ln. I‐35 Willowwood 4/22/19 7/4/19 Streets (940) 349‐7167 (Street Closure)

Wastewater Main Replacement Streets Repairs to follow Kerley St. Duncan Shady Oaks 4/10/19 8/5/19 Wastewater (940) 349‐7300 (Temporary Lane Closure) 8/5/19‐1/9/20

Sidewalk and ADA Improvements Updated Start Date from McKinney St. Austin Oakland 4/8/19 4/22/19 Engineering (940) 349‐8910 (Temporary Eastbound Lane Closure) 3/11/19

Street Resurfacing, Curb and Gutter Panhandle St. Carroll Bolivar TBD TBD Streets 4/9/18 Door Hangers (940) 349‐7160 (Temporary Lane Closures)

Page 5 of 6 Proposed Date Proposed Date Other Department Updated Information / Street/Intersection From To of Construction of Completion Brief Description of Construction Department Letters Communication Contact: Notes

PEC 4 ‐ Engineering In Design Installing Underground Box Culvert Engineering 11/13/18 (940) 349‐8910

Drainage and Roadway Construction Kansas City Roselawn Dr. Bonnie Brae TBD TBD (Bonnie Brae Phase 1 Engineering N/A (940) 349‐8910 Southern RR One Lane traffic control) Delayed from Current Base Repairs Meet with business Shady Oaks Dr. Teasley Woodrow 3/18/19 3/24/19 Streets Electronic Signs (940) 349‐7160 Projects to help alleviate (Temporary Lane Closure) owners traffic. Street Reconstruction Sheraton Pl. Sheraton Buckingham 3/18/19 4/26/19 Streets (940) 349‐7160 (Street Closure)

Concrete Curb and Gutter Repair Stuart Rd. Windsor Kings Row TBD TBD Streets (940) 349‐7160 (Temporary Lane Closures)

Thomas St. Panhandle Oak TBD TBD Streets Construction Streets (940) 349‐7160

Street Widening Vintage Blvd. US 377 I35W 10/1/2019 10/1/2021 Engineering (940) 349‐8910 (Bonnie Brae Phase 2)

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