03/18/2013-CC-Agenda Packet-Work SessionAGENDA
CITY COUNCIL
WORKSESSION
MONDAY, MARCH 18, 2013
6:00 PM
502 ELM STREET
1. Call Meeting to Order.
2. Overview of Audit for Fiscal Year End 2011/2012 by Weaver and Tidwell, L.L.P.
3. Update and Discussion on Proposed Amendments to Sanger's Architectural Standards
for the Historical Core, Allowing Additional Exterior Materials and Requiring
Architectural Character.
4. Overview of Items on Regular Agenda.
5. Adjourn.
I, the undersigned authority, do hereby certify that this Notice of Meeting was posted on the
bulletin board, at the City Hall of the City of Sanger, Texas, a place convenient and readily
accessible to the general public at all times, and said notice was posted on the following date
and time: -A /�/ a at 3%00 -P.m. and shall remain
posted until meeting is adjourned.
OF
Tami Taber, City Secretary - I
City of Sanger, Texas
This facility is wheelchair accessible and accessible parldng spaces are available. Requests for
accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact
the City Secretary's office at (940) 458-7930 for further information.
February 21, 2013
To the City Council and Management
City of Sanger, Texas
We have audited the financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of City of Sanger for
the year ended September 30, 2012. Professional standards require that we provide you with
information about our responsibilities under generally accepted auditing standards, as well as
certain information related to the planned scope and timing of our audit. We have communicated
such information in our letter to you dated October 3, 2012. Professional standards also require
that we cormiumicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The
significant accounting policies used by the City are described in Note 1 to the financial
statements. No new accounting policies were adopted and the application of existing policies was
not changed during fiscal year 2012. We noted no transactions entered into by the governmental
unit during the year for which there is a lack of authoritative guidance or consensus. All
significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management
and are based on management's knowledge and experience about past and current events and
assumptions about future events. Certain accounting estimates are particularly sensitive because
of their significance to the financial statements and because of the possibility that firture events
affecting them may differ significantly from those expected. The most sensitive estimate
affecting the City's financial statements was management's estimate of the allowance for
doubtful accounts, which is based on historical loss levels, the aging of the accounts, and an
analysis of collectability of individual accounts. We evaluated the key factors and assumptions
used to develop the allowance in determining that it is reasonable in relation to the financial
statements taken as a whole.
The financial statement disclosures are neutral, consistent and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and
completing our audit.
ANINDEPENDENT WEAVER AND TIDWELL LLP FORT WORTH
MEMBER OF BAKER TILLY CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 2821 W SEVENTH STREET, SUITE 700, FORT WORTH, TX 76107
INTERNATIONAL WWW.WEAVERLLP.COM P:(817)3327905 F:(817)4295936
To the City Council and Management
City of Sanger, Texas
February 21, 2013
Page 2
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified
during the audit, other than those that are clearly trivial, and communicate them to the
appropriate level of management. The attached schedule sununarizes uncorrected misstatements
of the financial statements. Management has determined that their effects are immaterial, both
individually and in the aggregate, to the financial statements taken as a whole. The following
material misstatements detected as a result of the audit procedures were corrected by
management:
• To record the current year amortization on capitalized bond issue costs, capitalized
premiums/discounts, and deferred gain/loss on the refunding bond totaling $22,908 on
the government -wide statements and $10,798 in the enterprise find.
• To correct amounts recorded as outstanding checks to an accrual totaling $39,397 related
to accrued wages in the general find and $17,636 related to accrued interest in the debt
service fund.
• To write-off a lease that was fully paid in the current year and record a new lease for a
net effect on government -wide liabilities of $316,357, and general fund capital outlay and
other financing sources of $340,119.
• To adjust inventory to actual based, on the "list price" totaling $21,179 in the enterprise
fund.
• To record retainage payable related to capital projects totaling $47,239 in the capital
projects find.
• To record rental income from the 4A warehouse on a straight-line basis for the
government -wide financial statements including an additional asset for tenant
improvements totaling a net $65,333 which includes $4,667 of depreciation expense, a
deferred rent of $40,008, and additional rental income in the current fiscal year of
$29,992.
• To record a transfer from the general fund to the capital projects find that wasn't
completed before year-end totaling $89,091.
• To move to the enterprise find construction in process totaling $291,414 including
retainage payable of $27,603 that was incorrectly recorded in the capital projects fund.
To the City Council and Management
City of Sanger, Texas
February 21, 2013
Page 3
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting,
or auditing matter, whether or not resolved to our satisfaction, that could be significant to the
financial statements or the auditor's report. We are pleased to report that no such disagreements
arose during the course of our audit.
iLlanagement Representations
We have requested certain representations from management that are included in the
management representation letter dated February 21, 2013.
141anagement Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a "second opinion" on certain situations. If a
consultation involves application of an accounting principle to the governmental unit's financial
statements or a determination of the type of auditor's opinion that may be expressed on those
statements, our professional standards require the consulting accountant to check with us to
determine that the consultant has all the relevant facts. To our knowledge, there were no such
consultations with other accountants.
Other,4ndit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the governmental unit's
auditors. However, these discussions occurred in the normal course of our professional
relationship and our responses were not a condition to our retention.
This information is intended solely for the use of City Council and management of the City and
is not intended to be, and should not be, used by anyone other than these specified parties.
Yours truly,
CtJ.POR a4
WEAVER AND TIDWELL, L.L.P.
JRF:kel
GENERALFUND
3002) To move one months expense for animal care to PY
Animal Care Expense
Fund Balance - Unrestricted
3003) To record accrual for franchise fees related to the Enterprise
Franchise Fee Receivable
Franchise Fees - EF
3004) To write off difference in Emergicon revenue to PY
Emergicon Revenue - Ambulance
Fund Balance - Unrestricted
3006) To record difference in accrued payroll
Salaries Expense
Accrued Payroll
3009) To move expense that should have been accrued in PY into
Fiord Balance - Unrestricted
Electric Expense
FROM PRIOR YEAR
Total PY differences
TOTAL DIFFERENCES
POST TO EQUITY
TOTAL EFFECT
TOTAL PER AUDIT
AS A PERCENT
Assets Liabilities Fund Balance Revenue Expense
(2,400)'
2,400
15,443
(15,443)
14,255
(14,255)
6,094
(6,094)
2,194
(2,194)''
15,443
(6,094)
(9,661)
21,207
(1,188)
1,500
(21,207)'
-
-
21,207
(21,207)'
15,443
(6,094)
11,546
(20,895)
(1,188)
(19,707)
15,443
(6,094)
(9,349)
(1,188)
(19,707)
1,174,080
(400,683)
(773,397)
(4,873,195)
4,900,021
1.32%
1.52%
1.21%
0.02%
-0.40%
ENTERPRISE FUND
3001) To pass an entry to record UB accrual in PY
AR - Utility Billing
Electric Income
Net Assets - Unrestricted
3003) To record accrual for franchise fees related to the Enterprise
Fund for September billings
Franchise Fee Expense
Franchise Fees - EF
3005) To record FICA and Retirement related to accrued vacation
FICA Expense
Accrued FICA
Rettrement Expense
Accrued Retirement
................ .
3006) To record difference in accrued payroll
Salaries Expense
Accrued Payroll
3007) To record inventory error in PY
System Maintenance
Net Assets - Unrestricted
Assets Liabilities Net Assets Revenue Expense
32,306
417,764
(450,070)
15,443
(15,443)
5,200
(5,200)
4,588
(4,588)
9,230
(9,230)
72,280
(72,280)
ENTERPRISE FUND - Continued
3008) To reverse PY error of double booking water accrual
Water Expense
Fund Balance - Unrestricted
3009) To move expense that should have been accrued in PY into
fimd balance
Fund Balance - Unrestricted
Electric Expense
FROM PRIOR YEAR
Total PY differences
TOTAL DIFFERENCES
POST TO EQUITY
TOTAL EFFECT
TOTAL PER AUDIT
AS A PERCENT
Assets Liabilities Net Assets Revenue Expense
20,784
(20,784)
12,569
(12,569)'
32,306 (34,461) (530,565) 417,764 114,956
59,496 (44,983) - (14,513)
59,496 - (44,983) - (14,513)
91,802 (34,461) (575,548) 417,764 100,443
518,207
91,802 (34,461) (57,341) 417,764 100,443
20,085,449 (6,891,509) (13,193,940)(10,773,056) 9,067,596
0.46% 0.50% 0.43% -3.88%
GOVERNMENT -WIDE
General Fund
3002) To move one months expense for animal care to PY
Animal Care Expense
Fund Balance - Unrestricted
3003) To record accrual for franchise fees related to the Enterprise
Fund for September billing
Franchise Fee Receivable
Franchise Fees - EF
3004) To write off difference in Emeraicon revenue to PY
Emergicon Revenue - Ambulance
Fund Balance - Unrestricted
3006) To record difference in accrued payroll
Salaries Expense
Accrued Payroll
3009) To move expense that should have been accrued in PY into
fund balance
Fund Balance - Unrestricted
Electric Expense
Assets Liabilities Net Assets Revenue Expense
(2,400)'
2,400
15,443
(15,443)
14,255
(14,255)'
6,094
(6,094)
2,194
(2,194)'
GOVERNMENT -WIDE- Continued
Government -Wide Only
4005) To record payroll taxes for vacation and sick accruals
FICA Expense
Accrued FICA
Reitrement Expense
Accrued Retirement
Total current year
FROM PRIOR YEAR
Total prior year differences
TOTAL DIFFERENCES
POST TO EQUITY
TOTAL EFFECT
TOTAL PER AUDIT
AS A PERCENT
Assets Liabilities Net Assets Revenue Expense
8,446
(8,446)
7,452
(7,452)
15,443 (21,992) (9,661) (1,188) 17398
(109,397) 143,263 (33,866)'
(109,397), 143,263 (33,866)'
(93,954), (21,992) 133,602 (1,188) (16,469)'
(17,656)
(93,954) (21,992) 115,946 (1,188) (16,468)
18,489,452 (8,175,703) (10,313,749) (6,479,752) 5,508,539
-0.51% 0.27% -1.12% 0.02%-030%
CITY OF SANGER
COUNCIL AGENDA ITEM
AGENDA TYPE ❑ Regular ❑ Special ❑Consent Reviewed by Finance ❑ Yes Not Applicable
® Workshop ❑ Executive ❑ Public Hearing Reviewed bLL!E2__L�-J Yes I Lj Not Applicable
Council Meeting Date: Submitted By:
March 18, 2013 Joseph D. Iliff, AICP
City Manager Reviewed/Approval Initials Date --//_ /�>
ACTION REQUESTED: ❑ORDINANCE ❑ RESOLUTION #
❑ CHANGE ORDER ❑ AGREEMENT ❑APPROVAL OF BID El APPROVAL
❑ CONSENSUS ® OTHER DISCUSSION AND DIRECTION ❑ AWARD OF CONTRACT
AGENDA CAPTION
Discussion of Proposed Amendments to Sanger's Architectural Standards for the Historic Core,
Allowing Additional Exterior Materials, and Requiring Architectural Character
FINANCIAL SUMMARY
®N/A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑RF,VENUE ❑CIP []BUDGETED ❑NON -BUDGETED
BACKGROUND/SUMMARY OF ITEM
The Historic Preservation Commission and Planning & Zoning Commission have recommended that the
City Council consider amending the city's architectural standards to better reflect the existing
architectural character of Sanger's central core. The central core has been roughly defined as the area
between I" Street and 10'h Street, and Austin Street and Plum Street, excluding the downtown B-3
zoning district. Many of the existing houses in this area have non -masonry exteriors and feature
architectural elements that create a ornamented neighborhood character.
The HPC and P&Z found that the combination of requiring a masonry exterior (usually brick) along
with the absence of a requirement for any architectural character elements has resulted in the
construction of "brick boxes". The new homes that have been built in the older parts of the community
are strikingly different than their non -masonry, more ornamented neighbors. They found that
continuing to apply the current standard would cause more visual discontinuity and a loss of neighbor
character as new homes are constructed in the central core. They recommend amending the standards to
create more cohesion, to allow and require new structures to strengthen, rather than weaken, the existing
architectural character of the area.
City Staff also conducted a public hearing with residents and property owners of the central core. Most
of those in attendance expressed support for modifying the standards to allow new houses to continue,
rather than conflict with, the existing character.
STAFF OPTIONS & RECOMMENDATION
Based on the comments of the Historic Preservation Commission, the Planning & Zoning Commission,
and the public, City Staff has prepared the following possible actions for the consideration by the City
Council.
1. Create a Central Core Overlay District. The district would be the area where the modified
architectural standards would apply. The balance of the city limits (all the area not within the
CCOD) would be unaffected and the existing architectural standards would apply. The CCOD
would have no affect on any covenants, codes, or restrictions applied by a homeowners
association or deed restriction.
2. For new single-family houses within the CCOD, permit the use of non -masonry materials for
exterior facades. This can be as simple as having no requirement (beyond the building code) or
by expanding the list of allowed materials.
3. For new single-family homes within the CCOD, require their design to include a minimum
number of architectural elements that create a more ornamented, complex character. This can be
achieved by setting a minimum score that a house design must meet based on an objective
criteria.
4. For new single-family homes within the CLOD, allow designs that do not meet the objective
criteria described in #3 with the approval of the City Council. This allows a property owner to
innovate and be creative in how they contribute to the neighborhood character. City Council
would approve the design if they find it equal to or better than the objective standard.
5. For all other construction (multi -family, commercial, etc.), the CCOD would encourage the
property owner seek Council's approval to use architectural alternatives, as already provided for
in the existing standards.
Staff is requesting direction and feedback on the following questions:
1. Are the proposed boundaries of the CCOD appropriate?
2. How does Council want to expand the allowable materials?
3. Based on the attached scoring criteria, what would be the minimum score required for approval?
List of Supporting Documents/Bxhibils Attached: Prior ActiontReview by Council, Boards, Commissions or Other
® Sanger Architectural Standards Agencies:
® Proposed Objective Scoring Criteria The Historic Preservation Commission and the Planning
s House Photos & Zoning Commission have recommended amending the
City of Sanger Architectural Standards
Commercial Buildings
ARTICLE 3.1700 EXTERIOR CONSTRUCTION OF BUILDINGS
Article 3.1701 Types of Exterior Construction Restricted
(a) This article establishes restrictions on the exterior construction elements of both new
construction and additions to buildings in zoning districts B-1, B-2, B-3 and within all zoning districts
where any portion of a proposed biding is within 250 feet of the IH-35 Right-of-way and all specific uses
which specify that the requirements of this article be met.
(b) The exterior facade of any new building meeting the criteria above shall be constructed of
materials from the following list: stone, cast stone, stucco, brick, limestone, granite, or native stone with
the exception of windows and doors.
(c) A maximum of ten (10) percent of the building facade may be comprised of "split face"
concrete block.
(d) The City Council may approve an alternative to use a different material or design if they find
that the material or design meets or exceeds the intent of this article after conducting a public hearing.
Notice of the hearing must be published in a local newspaper at least fifteen (15) days prior, and notices
mailed to all property owners within two hundred (200) feet at least ten (10) days prior, to the public
hearing.
(e) For buildings within two hundred and fifty (250) feet of the IH-35 Right-of-way that are
50,000 square feet or larger, and are on tracts ten (10) acres or larger, and zoned 11 or 12, exterior walls
may be constructed of smooth face concrete or block provided that one or more of the materials listed in
(b) above is used as an accent on a minimum of 25% of any wall facing a street, thoroughfare or highway
except for a dead end street only providing access to industrially zoned property.
(Originally adopted 2001, amended in 2009)
Residential Buildings
ARTICLE 3.2100 EXTERIOR CONSTRUCTION OF RESIDENTIAL DWELLINGS
(a) This article establishes the exterior facade requirements for single-family residences, duplexes
and multi -family units in the City of Sanger.
(b) All exterior facades for the first story of a new single-family residence or duplex in any
zoning district, except where specifically exempted, shall be constricted of a minimum of one hundred
percent (100) percent masonry construction, including and limited to; brick, stone, granite, marble, cast
stone or stucco. All other floors shall be constructed of a minimum of fifty (50) percent masonry.
(c) All exterior facades for the first story of a new apartment building or multi -family dwelling in
any zoning district shall be constructed of a minimum of one hundred (100) percent masonry construction
including brick, stone, cast stone, granite, marble or stucco. All floors shall be constructed of a minimum
of fifty (50) percent masonry.
(d) Additions to, or reconstruction of, existing structures must have, at a minimum, the same ratio
of masonry to other materials as does the existing structure.
(e) Detached garages, shops and storage buildings over two hundred (200) square feet must have,
at a minimum, the same percentage of masonry facade as the first floor of the main structure. Buildings
other than the primary residence on A -Agricultural zoned property are exempt from this requirement.
(f) The City Council may approve an alternative to use a different material or design if they find
that the material or design meets or exceeds the intent of this article after conducting a public hearing.
Notice of the hearing must be published in the local newspaper at least fifteen (15) days prior, and notices
mailed to all property owners within two hundred (200) feet at least ten (10) days prior, to the public
hearing.
(Originally adopted 2002, amended in 2009)
Proposed Objective Scoring Criteria
Major Offset (10 feet or greater) (See Photo #3)
3 Points
Hidden Garage (not visible from front) (See Photo #3)
3 Points
Steep Roof Pitch (7% or greater) (See Photo # 19)
3 Points
Gabled Accent (See Photo #16)
3 Points
Small Porch (25% to 49% of front fapade) (See Photo
#11)
3 Points
Cross Gabled (See Photo #2, #3)
3 Points
Multi -Angled Roof (See Photos #1, #3 #4)
3 Points
Roof Accent (See Photo #2)
3 Points
Window Grids (permanent) (See Photo #12)
3 Points
Bay Window or Oriel Window (each) 2 Points
Portico (See Photo #2) 2 Points
Pent Roof Returns (See Photo #2) 2 Points