Loading...
02/04/2019-CC-Agenda Packet-RegularBANGER AGENDA CITY COUNCIL REGULAR MEETING MONDAY, FEBRUARY 4, 2019 7:00 PM 502 ELM STREET SANGER, TEXAS 1. Call Meeting to Order, Invocation, Pledge of Allegiance. 2. CITIZEN INPUT: (Citizens are allowed 3 minutes to speak. The City Council is unable to respond or to discuss any issues brought up during this section). 3. CONSENT AGENDA: a) Approval of Minutes 1) City Council Regular Meeting Minutes, January 22, 2019 4. Consider Any Items Removed from Consent Agenda. REGULAR AGENDA 5. Consider Acknowledgement and Acceptance of the Annual Financial Report and Related Audit by Brooks Watson & Co. for the Fiscal Year Ending September 30, 2018. 6. Conduct a Public Hearing Regarding a Requested Variance to Allow 30 Feet of Right - of -Way (ROW) Dedication Instead of 60 Feet of ROW Dedication Required as Public Access to Proposed Lot 1R From FM 455 for A Proposed Replat of Lot 1R & Lot 2R, Block 1, of LL&T Addition, Being a Replat of Lot 1, Block 1, LL&T Addition; Being 7.026 Acres and Generally Located North of FM 455 and Approximately 1200 Feet South-West of the Intersection of FM 1190 and FM 455. 7. Consider, Discuss and Act on a Requested Variance to Allow 30 Feet of Right -of -Way (ROW) Dedication Instead of 60 Feet of ROW Dedication Required as Public Access to Proposed Lot 1R From FM 455 for A Proposed Replat of Lot 1R & Lot 2R, Block 1, of LL&T Addition, Being a Replat of Lot 1, Block 1, LL&T Addition; Being 7.026 Acres and Generally Located North of FM 455 and Approximately 1200 Feet South-West of the Intersection of FM 1190 and FM 455. 8. Conduct a Public Hearing Regarding a Replat of Lot 1R and Lot 2R, Being a Replat of Lot 1, Block A of Ashley Waters Addition and Adding Tract 5A and Tract 6 in McKinney & Williams Survey Abstract No. 940 and Tract 4A of M.R. Burleson Survey Abstract No. 71, Being Approximately 18.44 Acres and Generally Located Approximately 450 Feet South of the Intersection of Cowling Road and South 5t" Street East of Cowling Road. 9. Consider, Discuss and Act on a Replat of Lot 1R and Lot 2R, Being a Replat of Lot 1, Block A of Ashley Waters Addition and Adding Tract 5A and Tract 6 in McKinney & Williams Survey Abstract No. 940 and Tract 4A of M.R. Burleson Survey Abstract No. 71, Being Approximately 18.44 Acres and Generally Located Approximately 450 Feet South of the Intersection of Cowling Road and South 51" Street East of Cowling Road. 10. Conduct a Public Hearing Regarding a Specific Use Permit (SUP) for a Smelter, Refinery or Chemical Plant Use on the Property Zoned I-2 (Heavy Industrial District), and Generally Located South -East of the Intersection of East Bolivar Street and North 11t Street. 11. Consider, Discuss and Possibly Act Ordinance #02-02-19 Regarding A Specific Use Permit (SUP) For a Smelter, Refinery or Chemical Plant Use on the Property Zoned As I-2 (Heavy Industrial District), and Generally Located South -East of the Intersection of East Bolivar Street and North 111 Street. 12. Consider, Discuss and Act on the Preliminary Plat of Lots 1-9, Block A, Phase 1; Lots 10-14, Block A, Phase 2; Lots 1-2, Block B, Phase 2; and Lot 1-33, Block C, Phase 3 of CR 200 Estates Addition, Being 14.77 Acres in the Ed Bradley Survey, Abstract No. 34, and 47.98 Acres in the B.B.B. and C.R.R Company Survey Abstract Number 199, in the Extraterritorial Jurisdiction (ETJ) of the City of Sanger, and Generally Located South- West of the Intersection of County Road 200 and Metz Road. 13. Consider, Discuss and Possibly Act on Ordinance 902-01-19 - Ordering and Providing Notice of General Election for the Purpose of Electing Three (3) Council Members: Council Member Place 1; Council Member Place 3; and, Council Member Place 5; and, Approve A Joint Election Agreement and Contract with Denton County Election Services; Authorizing the Mayor to Sign the Agreement; Notice and Order; and, Providing for an Effective Date. 14. INFORMATION ITEMS: No Items. 15. FUTURE AGENDA ITEMS: (The purpose of this item is to allow the Mayor and members of Council to bring forward items they ivish to discuss at a facture meeting, A Council Member may inquire about a subject for which notice has not been given. A statement of specific factual information or the recitation of existing policy may be given. Any deliberation shall be limited to a proposal to place the subject on an agenda for a subsequent meeting. Items may be placed on a facture meeting agenda with a consensus of the Council or at the call of the Mayor). 1. Confirm Calendars - City Council Strategic Planning Retreat — Thursday, February 28, 2019 —12:00 Noon to 5:00 PM 16. ADJOURN. I, the undersigned authority, do hereby certify that this Notice of Meeting was posted on the City Website, and on the bulletin board, at the City Hall of the City of Sanger, Texas, a place convenient and readily accessil le to the general public at all times. Said notice was posted on the following date and time / at. M., and remained posted continuously for at least 72 ho s prior to the scheduled time of said meeting and shall remain posted until meeting is adjourned P g Journe,,;� OF e �1 Cheryi E.rJ e Cfity Secretary s � City of §anger, Texas NO This facility is wheelchair accessible ancf 46F —sA •tang spaces are available. Requests for accommodations or inteapretive services mus '8�` is de 481t. urs prior to this meeting. Please contact the City Secretary's office at (940) 458-7930 for further information. CITY OF SANGER, TEXAS MINUTES: REGULAR CITY COUNCIL MEETING Tuesday, January 22 2019, 7:00 p.m. 502 Elm Street, Sanger, Texas COUNCIL MEMBERS PRESENT: Mayor Thomas Muir, Mayor Pro Tern Gary Bilyeu, Councilman David Clark, Councilman Lee Allison, Councilman Bill Boutwell COUNCIL MEMBERS ABSENT: Councilman Allen Chick The Mayor and Four (4) Council Members were present constituting a quorum. STAFF MEMBERS PRESENT: City Manager Alina Ciocan; City Secretary Cheryl Price; Finance Director Clayton Gray; Interim Director of Public Works Jim Berman 1. Call Meeting to Order, Invocation, Pledge of Allegiance. Mayor Muir called the Regular City Council Meeting to order on Tuesday, January 22nd, 2019 at 7:02 p.m. Councilman Boutwell gave the Invocation and Mayor Pro Tern Bilyeu led the Pledge of Allegiance. 2. Citizens Input: (Citizens are allowed 3 minutes to speak. The City Council is unable to respond or to discuss any issues brought up during this section). There were no citizens who approached the podium wishing to speak on items not on the agenda. 3. CONSENT AGENDA: a) Approval of Minutes 1) Work Session Meeting Minutes, January 7, 2019 2) City Council Regular Meeting Minutes, January 7, 2019 A motion was made by Councilman Clark to approve the Consent Agenda as presented. The motion was seconded by Councilman Boutwell. The motion carried unanimously with a 4-0 vote (Councilman Chick absent). 4. Consider Any Items Removed from Consent Agenda. No items were removed from the consent agenda. REGULAR AGENDA 5. Consider, Discuss and Possibly Approve Issuing a Request for Proposal (RFP) on Bank Depository Services. Clayton Gray Finance Director was recognized to summarize. He advised that it is time for the City to issue an RFP for banking services. The Local Government Code allows for cities to enter into contracts with banks for a period of not longer than five years. It is common for an RFP to go out and state that it will be a two to three-year contract with one- year renewals up to the five years. In the past the City has had two years with three one- year renewals. We are looking at this contract for three years with two separate one-year renewals at the end. This allows us to keep a good banking relationship with the bank that is selected at the beginning. He noted that it would be issued (as it has been in the past), to the four banks operating within the City limits. We are required to advertise and notice will go in the Denton Record Chronicle. We have been with our current bank since 2006 and have not had any problems. We are required to go through this process. The RFP is ready to go and can be issued as soon as the Council gives approval to do so, and the submissions would be due back on February 20th, 2019. He summarized the timeline. There were some questions from Council and it was noted that the criteria for the RFP was basically for rates and services and financial stability and that they have a location within the City limits. We are currently in a no fee situation right now and he summarized current services. It was noted that if the bank changes, that this RFP is basically for banking and savings. CD's are considered investments and we can keep them at the current bank. There was miscellaneous regulatory discussion. It was noted that bank collateralizes everything we have; and, pledges collateral so we don't have to worry about going over the FDIC limits. This is a requirement in the RFP. The five-year contract with the single year renewals versus a straight five-year contract was discussed, if there were any advantages. It was noted that it would be easier to change banks if we were not in a five-year contract, along with the possibility of any changes in interest rates which could be a reason to change banks. The City Charter does have a minimum requirement of a two (2) year contract. A motion was made by Mayor Pro Tern Bilyeu to approve issuing a Request for Proposal (RFP) on Bank Depository Services. The motion was seconded by Councilman Clark. The motion carried unanimously with a 4-0 vote (Councilman Chick absent). 6. Consider, Discuss and Possibly Act on Resolution No. R-01-01-19 — Master Interlocal Cooperative Purchasing Agreement with the City of Grand Prairie, Texas; And, Authorize the City Manager to Execute Said Agreement. Interim Public Works Director Jim Berman was recognized to summarize. He noted this agreement is being brought forward because in using interlocal agreements with other cities (particularly ones that are larger), allows us to buy at the same buying power that they have. This also allows us to get certain services that they already have under contract and we would not have to go out to bid for those services. The City of Grand Prairie has an asphalt contractor that does a very good job and has been their contractor for years. The contractor is located in Lewisville. He used this same contract when he was employed with another city. It is a mutual consent and is also on the City of Grand Prairie's agenda tonight. This does take a resolution by the Council to put this into motion. There was minor discussion regarding the contract and the services and benefits it would offer. It was noted that there was no commitment that the contractors would have to service the City. A motion was made by Councilman Boutwell to approve Resolution No. R-01-01-19 — Master Interlocal Cooperative Purchasing Agreement with the City of Grand Prairie, Texas; and, authorize the City Manager to execute said agreement. Councilman Clark asked why this agreement has to be approved since it is just a purchasing agreement. City Manager Alina Ciocan noted that all interlocal agreements have to be approved by City Council and it was noted that this type of item is usually on the Consent Agenda. She also noted that this has item was reviewed by Legal Counsel. Councilman Clark noted that he was all for it, but was just curious as to why they had to approve it. The motion was seconded by Mayor Pro Tem Bilyeu. The motion carried unanimously with a 4-0 vote (Councilman Chick absent). 7. Discussion on Potential Street Reconstruction Projects for FY 2019. Interim Public Works Director Jim Berman was recognized to summarize potential street reconstruction projects for FY 2019. It is proposed that we move forward with street reconstruction of llth Street from Elm to Hughes, 12th Street from Elm to Bolivar, 131h Street from Bolivar to Hughes, and Hughes from 1 Oth Street to the service road (below). He noted it is in our budget to do these projects and the roads that are proposed are in horrible condition and have hardly any asphalt on them. There is no drainage in the area. This part of the community is flat and we are not proposing to put in drainage ditches. He did note that on 1lth Street there is a small drainage ditch on one side. Mr. Berman proposed we go in and mill them up and put two inches of asphalt on them and move onto the next project. Mr. Berman noted that Hughes Street would not be a complete reconstruction. He is proposing doing repairs and overlay on only a portion of Hughes because it has a thick base and is not falling apart. We do not want to go in and tear it up if we don't need to. There was miscellaneous discussion regarding the drainage. These roads will not last forever, but should last seven to eight years with proper maintenance, crack sealing, etc. Mayor Muir noted that he and the City Manager Alina Ciocan have discussed the roads. There are some roads that will have to have the infrastructure under the road (water and sewer) replaced and there are some roads such as the ones on this list that need something on them. It is important to weigh the utilities and where they are at, but we can not always let them hold us up on doing some kind of improvements to the roads if they need it. Mr. Berman noted that what he proposes for the future is to come back during the budget process with a pavement management system. This would be after he has had the opportunity to go and do tracking accounts and check out the conditions of all of the asphalt/concrete or gravel streets and put them in categories. There are streets that are not bad streets at this point but if no maintenance is done on them, they will turn into bad streets. Mr. Berman proposed that for the next budget year City Council will be able to look at the lists and have the costs to maintain and/or replace the streets and make the choices as to which ones to do and when. He noted that when he was in Seagoville and Midlothian, he got a lot of mileage by putting the list online. Mayor Muir noted that this is the plan that has been discussed in the past, so that the residents can know where they are on the list. City Manager Alina Ciocan noted that when the plan is being considered for next budget year the City Council will know exactly what will be fixed with the amount of money being requested. Mayor Pro Tem Bilyeu noted there are many issues in the community but one that covers the spectrum is the streets and if we have this plan, then the people can see progress. Councilman Boutwell brought up discussion regarding Plum being an alternate route for FM 455 TxDOT construction traffic. City Manager Alina Ciocan noted that Plum was something that Mike Brice had thought about in the Budget and that it would be a full reconstruction with water lines, sewer lines, and pavement. The approximate estimate was close to three million dollars. The project would most likely have to be bonded. We were also exploring the idea of using Peach. From 2nd street to 5th street it is already in good shape, so we would only have to improve it from 51h to I01h This may move Peach ahead of Plum. Staff is looking at this and weighing these options with our Financial Advisor as to what can be bonded, how much and will come before City Council with the findings. There was additional discussion regarding what projects would be included in the bond. The outflow pipeline, and the Railroad lift station, moving the utilities on FM 455 and reconstructing Plum, or Peach are all projects that are coming up timing wise in the next few years. To do the whole reconstruction of the streets requires some serious funding. Mayor Pro Tem noted that this is another 12 to 15 million and asked where we are in the bonding capacity. Mayor Muir noted that in the meeting with the Financial Advisor that some of the debt falls off in 2021. As we get larger bonds the cost of units is cheaper and we could accelerate some things and structure some things with interest etc., so that things could happen. Mayor Muir also noted that, as they are looking at the planning, he would love at some point to have, in the Old Town quadrant from the area on the board to 5th Street north to FM 455, that portion of the City, curb and gutter with asphalt instead of concrete in between. He noted with the curb and gutter it would help the drainage and create a street appeal and the homeowners would have more pride in their property. Interim Public Works Director Jim Berman noted that he was going to take videos of the whole area before any improvements are made. There was discussion regarding the construction of the street with Mr. Berman and Councilman Allison. Councilman Allison suggested that three inches of asphalt would work better than two inches. Mayor Muir asked what was left in the budget to do maintenance. It was noted there was still other monies in the street budget for maintenance. Councilman Clark asked when the project would start. Mr. Berman noted that he does not have that answer at this time. He would have to schedule it with the asphalt company, contact everyone including the school, and take videos of the area. Councilman Boutwell asked if staff could be sure that these improvements are posted on social media. He noted that any way we could get the word out would be great. Staff noted that they would be putting the information out to the public. There was no further discussion. 8. INFORMATION ITEMS: a) December 2018 Disbursements. b) All American Dogs Report. No discussion on information items. 9. FUTURE AGENDA ITEMS: (The purpose of this item is to allow the Mayor and members of Council to bring forward items they wish to discuss at a future meeting, A Council Member may inquire about a subject for which notice has not been given. A statement of specific factual information or the recitation of existing policy may be given. Any deliberation shall be limited to a proposal to place the subject on an agenda for a subsequent meeting. Items may be placed on a future meeting agenda with a consensus of the Council or at the call of the Mayor). a. Confirm Calendars - City Council Strategic Planning Retreat — Thursday, February 28, 2019 —12:00 Noon to 5:00 PM Councilman Bilyeu was not at the meeting when the date changed and noted that he could make the meeting and has it on his calendar. He noted that he would be at the first meeting in March (March 41h) but would not be at the second meeting in March (March 18th). There was brief discussion regarding the City's first GIS Interactive Map online for public use. City Manager Alina Ciocan pulled the map up and gave a brief summary. It was noted that the map would have more layers as we build our data. 10. ADJOURN. There being no further discussion, Mayor Muir adjourned the meeting at 7:58 PM. BANGER COUNCIL AGENDA ITLM AGENDA TYPE ® Regular ❑ Special ❑ Consent Reviewed by Finance ® Yes ❑ Not Applicable ® Workshop ❑ Executive ❑ Public Hearing Reviewed by Legal ❑ Yes ® Not Applicable COUNCIL MEETING DATE: SUBMITTED BY: February 4, 2019 Finance Director, Clayton Gray City Manager Reviewed/Approval Initials Date 3 f ACTION REQUESTED: ❑ORDINANCE ❑ RESOLUTION ® APPROVAL ❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS ❑ REAPPOINTMENTS ❑ OTHER EXPLAIN: AGENDA CAPTION Consider Acknowledgement and Acceptance of the Annual Financial Report and Related Audit by Brooks Watson & Co. for the Fiscal Year Ending September 30, 2018. FINANCIAL SUMMARY ®N/A ❑GRANT FUNDS ❑OPERATING EXPENSE []REVENUE ❑CIP []BUDGETED ❑ NON -BUDGETED PRIOR CURRENT FUTURE FISCAL YEAR: YEAR YEAR YEARS TOTALS Proposed Expenditure Amount Encumbered Amount BALANCE FUND(S) TO BE USED: General ❑$ Utility ®$ Special ❑ $ BACKGROUND/SUMMARY OF ITEM The City is required under the Texas Local Government Code and City Charter to have an audit of its financial statements each year. This audit must be conducted by an independent Certified Public Accountant. The audit was performed by Brooks Watson & Company. The annual audit was conducted in accordance with governmental accounting standards and fulfills the requirements set in state law. The audit resulted in an unmodified ("clean") opinion indicating that the financial statements are presented fairly, in all material aspects, in accordance with generally accepted financial principles. STAFF OPTIONS & RECOMMENDATION Staff recommends that City Council accept the annual audit for the Fiscal Year ended September 30, 2019. List of Supporting Documents/Exhibits Attached: Prior Action/Review by Council, Boards, Commissions or • Annual Financial Report Other Agencies: ANNUAL FINANCIAL REPORT of the City of Sanger, Texas For the Year Ended September 30, 2018 (This page intentionally left blank.) City of Sanger, Texas TABLE OF CONTENTS September 30, 2018 FINANCIAL SECTION Independent Auditor's Report 1 Management's Discussion and Analysis 7 Basic Financial Statements Government -Wide Financial Statements Statement of Net Position 18 Statement of Activities 22 Fund Financial Statements Governmental Funds: Balance Sheet 24 Reconciliation of the Balance Sheet to the Statement of Net Position - Governmental Funds 27 Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds 28 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 31 Proprietary Funds: Statement of Net Position 32 Statement of Revenues, Expenses, and Changes in Fund Net Position 34 Statement of Cash Flows 35 Notes to Financial Statements REQUIRED SUPPLEMENTARY INFORMATION 37 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund 78 Schedule of Changes in Net Pension Liability and Related Ratios 80 Schedule of Employer Contributions to Pension Plan 82 Schedule of Changes in OPEB Liability and Related Ratios 83 COMBINING AND INDIVIDUAL FUND FINANCIAL SCHEDULES Combining Schedule of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds — by Department 86 (This page intentionally left blank.) BROOKSWATSON & CO. CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Sanger, Texas: Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Sanger, Texas (the "City") as of and for the year ended September 30, 2018, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements The City's management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. i 3 14950 Heathrow Forest Pkwy I Suite 530 1 Houston, TX 77032 1 Tel: 281.907.8788 1 Fax: 888.875.0587 1 www.BrooksWatsonCo.com 1 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City as of September 30, 2018, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note V.G. to the financial statements, due to the implementation of GASB No. 75, the City restated its beginning net position within governmental activities and business -type activities to properly reflect the total OPEB liability and related deferred outflows and inflows of resources, as prescribed by this accounting standard. Our opinion is not modified with respect to this matter.SA Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, schedule of changes in net pension liability and related ratios, schedule of employer contributions to pension plan, schedule of changes in other postemployment benefits liability and related ratios, and general fund budgetary comparison information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. PA Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise City of Sanger, Texas's basic financial statements. The combining schedule by department for the proprietary fund is presented for purposes of additional analysis and is not a required part of the basic financial statements. The combining schedule by department for the proprietary fund is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. BrooksWatson & Co. Certified Public Accountants Houston, Texas January 18, 2019 W (This page intentionally left blank.) MANAGEMENT'S DISCUSSION AND ANALYSIS (This page intentionally left blank.) City of Sanger, Texas MANAGEMENT'S DISCUSSIONAND ANALYSIS (MD&A) September 30, 2018 As management of the City of Sanger, Texas (the "City"), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2018. Financial Highlights • The City's total combined net position is $40,225,842 at September 30, 2018. Of this, $19,212,573 (unrestricted net position) may be used to meet the City's ongoing obligations to its citizens and creditors. • At the close of the current fiscal year, the City's governmental funds reported combined fund balances of $6,251,457, an increase of $2,174,302. • As of the end of the year, the unassigned fund balance of the general fund was $4,420,906 or 76% of total general fund expenditures. • The City had an overall increase in net position of $7,507,345, which is due to revenues exceeding expenses for both governmental and business -type activities. Overview of the Financial Statements The discussion and analysis provided here are intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements consist of three components: 1) government - wide financial statements, 2) fund financial statements, and 3) the notes to financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves. Government -Wide Statements The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private -sector business. The statement of net position presents information on all of the City's assets, liabilities, and deferred inflows/outflows with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. Other non -financial factors, such as the City's property tax base and the condition of the City's infrastructure, need to be considered in order to assess the overall health of the City. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses City of Sanger, Texas MANAGEMENT'S DISCUSSIONAND ANALYSIS, Continued September 30, 2018 are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business - type activities). The governmental activities of the City include general government, public safety, public works, and culture and recreation. The business -type activities of the City include water, sewer and electric operations. The government -wide financial statements include not only the City itself (known as the primary government), but also the legally separate Sanger Industrial Development Corporation ("4A") and the Sanger Texas Development Corporation ("0"), for which the City is financially accountable. Financial information for these component units is reported separately from the financial information presented for the primary government itself. FUND FINANCIAL STATEMENTS Funds may be considered as operating companies of the parent corporation, which is the City of Sanger. They are usually segregated for specific activities or objectives. The City of Sanger uses fund ti accounng to ensure and demonstrate compliance with finance -related legal reporting requirements. The two categories of City funds are governmental and proprietary. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the year. Such information may be useful in evaluating the City's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Sanger maintains three individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of H., City of Sanger, Texas MANAGEMENT'S DISCUSSIONAND ANALYSIS, Continued September 30, 2018 revenues, expenditures, and changes in fund balances for the general, debt service, and capital projects funds. The general and capital projects funds are considered to be major funds. The City of Sanger adopts an annual appropriated budget for all funds. A budgetary comparison schedule has been provided to demonstrate compliance with the general fund budget. Proprietary Funds The City maintains two different types of proprietary funds. Proprietary funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses a proprietary fund to account for its public utilities. All activities associated with providing such services are accounted for in these funds, including administration, operation, maintenance, debt service, capital improvements, meter maintenance, billing and collection. The City's intent is that costs of providing the services to the general public on a continuing basis is financed through user charges in a manner similar to a private enterprise. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses an internal service fund to account for administrative support services to other funds of the City. Component Units The City maintains the accounting and financial statements for two component units. The 4A and the 4B are both discretely presented component units displayed on the government -wide financial statements. Notes to Financial Statements The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes are the last section of the basic financial statements. Other Information In addition to the basic financial statements, MD&A, and accompanying notes, this report also presents certain Required Supplementary Information (RSI). The RSI that GASB Statement No. 34 requires is a budgetary comparison schedule for the general fund and schedules for the City's Defined Pension Plan. RSI can be found after the basic financial statements. GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted previously, net position may serve over time as a useful indicator of the City's financial position. For the City of Sanger, assets exceeded liabilities by $40,225,842 as of September 30, 2018, in the primary government. 601 City ®f Sanger, Texas MANAGEMENT'S DISCUSSIONAND ANALYSIS, Continued September 30, 2018 The largest portion of the City's net position, $19,494,509, reflects its investments in capital assets (e.g., land, city hall, police station, streets, and drainage systems, as well as the public works facilities), less any debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the assets themselves cannot be used to liquidate these liabilities. An additional portion of the City's net position, $1,518,760, represents resources that are subject to external restrictions on how they may be used. The remaining balance of $19,212,573 is unrestricted and may be used to meet the government's ongoing obligations to its citizens and creditors. Current assets of governmental activities as of September 30, 2018 and September 30, 2017 were $7,224,081 and $5,153,316, respectively. The increase of $2,070,765 was primarily due to an increase in cash on hand as a result of revenues exceeding expenses in the current year. Current assets of business -type activities as of September 30, 2018 and September 30, 2017 were $16,436,888 and $23,313,512, respectively. The decrease of $6,876,624 was primarily attributable to bond proceeds being spent in the current year. Capital assets of governmental activities as of September 30, 2018 and September 30, 2017 were $19,178,754 and $16,264,468, respectively. The increase of $2,914,286 was a primarily a result of new investments in infrastructure. Capital assets of business -type activities as of September 30, 2018 and September 30, 2017 were $27,575,268 and $18,881,652, respectively. The increase of $8,693,616 was a primarily a result of the sewer plant expansion. 10 City of Sanger, Texas MANAGEMENT'S DISCUSSIONAND ANALYSIS, Continued September 30, 2018 Statement of Net Position: The following table reflects the condensed Statement of Net Position: 2018 2017 Governmental Business -Type Governmental Business -Type Activities Activities Total Activities Activities Total Current and other assets $ 7,224,081 $ 16,436,888 $ 23,660,969 $ 5,153,316 $ 23,313,512 $ 28,466,828 Capital assets, net 19,178,754 27,575,268 46,754,022 16,264,468 18,881,652 35,146,120 Total Assets 26,402,835 44,012,156 70,414,991 21,417,784 42,195,164 63,612,948 Deferred Outflows of Resources 228,061 96,605 324,666 465,880 178,853 644,733 Other liabilities 1,664,933 3,801,444 5,466,377 1,716,929 2,788,037 4,504,966 Long-term liabilities 4,022,808 20,726,451 24,749,259 5,119,582 21,787,140 26,906,722 Total Liabilities 5,687,741 24,527,895 30,215,636 6,836,511 24,575,177 31,411,688 Deferred Inflows of Resources 229,125 69,054 298,179 97,970 29,526 127,496 Net Position: Net investment in capital assets 14,712,198 4,782,311 19,494,509 10,968,978 4,262,005 15,230,983 Restricted 1,518,760 - 1,518,760 855,795 - 855,795 Unrestricted 4,483,072 14,729,501 19,212,573 3,124,410 13,507,309 16,631,719 Total Net Position $ 20,714,030 $ 19,511,812 $ 40,225,842 $ 14,949,183 $ 17,769,314 $ 32,718,497 11 City ®f Sanger, `texas MANAGEMENT'S DISCUSSIONAND ANALYSIS, Continued September 30, 2018 Statement of Activities: The following table provides a summary of the City's changes in net position: For the Year Ended September 30, 2018 For the Year Ended September 30, 2017 Total Total Governmental Business -Type Primary Governmental Business -Type Primary Activities Activities Government Activities Activities Government Revenues Program revenues: Charges for services $ 1,946,040 $ 12,722,292 $ 14,668,332 $ 1,810,697 $ 12,180,291 $ 13,990,988 Grants and contributions 3,846,351 475,000 4,321,351 1,718,787 725,000 2,443,787 General revenues: Property taxes 3,953,836 - 3,953,836 3,584,390 - 3,584,390 Sales taxes 872,250 - 872,250 883,562 883,562 Franchise and local taxes 261,611 - 261,611 236,082 - 236,082 Investment income 5,012 25,558 30,570 4,372 21,875 26,247 Other revenues 396,025 - 396,025 210,949 - 210,949 Total Revenues 11,281,125 13,222,850 24,503,975 8,448,839 12,927,166 21,376,005 Expenses ITeneral government 1,808,163 - 1,808,163 1,800,480 - 1,800,480 Public safety 2,517,223 - 2,517,223 2,400,720 - 2,400,720 Public works 1,061,776 - 1,061,776 1,084,065 - 1,084,065 Culture and recreation 737,343 - 737,343 797,033 - 797,033 Interest and fiscal charges 173,032 718,056 891,088 186,772 741,243 928,015 Water, sewer, & electric - 9,981,037 9,981,037 - 9,780,833 9,780,833 Total Expenses 6,297,537 10,699,093 16,996,630 6,269,070 10,522,076 16,791,146 Change in Net Position Before Transfers 4,983,588 2,523,757 7,507,345 2,179,769 2,405,090 4,584,859 Transfers 781,259 (781,259) - 865,224 (865,224) - Total 781,259 (781,259) - 865,224 (865,224) - Change in Net Position 5,764,847 1,742,498 7,507,345 3,044,993 1,539,866 4,584,859 Beginning Net Position 14,949,183 17,769,314 32,718,497 11,904,190 16,229,448 28,133,638 Ending Net Position $ 20,714,030 $ 19,511,812 $ 40,225,842 $ 14,949,183 $ 17,769,314 $ 32,718,497 12 City of Sanger, Texas MANAGEMENT'S DISCUSSIONAND ANALYSIS, Continued September 30, 2018 Graphic presentations of selected data from the summary tables are displayed below to assist in the analysis of the City's activities. Governmental Activities - Revenues Property taxes 35% Sales taxes Grants and o 8% contributions*Mor 34% Francluse andlocal taxes Otherrevenues 2% Charges for services 4% 17% For the year ended September 30, 2018, revenues from governmental activities totaled $11,281,125. Property tax, charges for services, and grants and contributions are the City's largest revenue sources. Property tax increased by $369,446 or 10% due to higher property values. Sales taxes decreased $11,312 or 1% due to a slowdown in the local economy. Charges for services increased $135,343 or 7% primarily due to increases in EMS services and sanitation service revenue. Grants and contributions increased by $2,127,564 due to funds received from an interlocal agreement with Denton County for street construction. Other revenues increased by $185,076 or 88% mainly as a result of the recognition of roadway impact fee revenue in the current year. All other revenues remained relatively stable when compared to the previous year. This graph shows the governmental function expenses of the City: Governmental Activities - Expenses Public safety Public works 40% 17% Culture and recreation 11% General Interest and fiscal government charges 29% 3% For the year ended September 30, 2018, expenses for governmental activities totaled $6,297,537. This represents an increase of $28,467 from the prior year. The City's largest functional expense is public 13 OExpenses ■Charges for Services City of Sanger, Texas MANAGEMENT'S DISCUSSIONAND ANALYSIS, Continued September 30, 2018 safety of $2,517,223, which primarily includes costs for the police department, animal control, fire department, and EMS services. Culture and recreation expenses decreased by $59,690 or 7% primarily due to a reduction in contract services and professional fees. All other expenditures remained relatively consistent with the previous year. Business -type activities are shown comparing operating costs to revenues generated by related services. For the year ended September 30, 2018, charges for services by business -type activities totaled $12,722,292. This is an increase of $542,001, or 4%, from the previous year. The increase was due to the increase in utility consumption in the current year. Business -Type Activities - Revenues and Expenses 14,000,000 12,000,000 10,000,000 8,000,000 6,000.000 4,000,000 2.000,000 a5 Total expenses increased $177,017 or 2% compared to the prior year, which is considered minimal. FINANCIAL ANALYSIS OF THE CITY'S FUNDS As noted earlier, fund accounting is used to demonstrate and ensure compliance with finance -related legal requirements. Governmental Funds - The focus of the City's governmental funds is to provide information of near - term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of the City's net resources available for spending at the end of the year. As of the end of the year the general fund reflected a total fund balance of $4,928,737. Of this, $8,853 is restricted for municipal court, $36,899 is restricted for tourism, $102,024 is restricted for library improvements, $40,202 for public safety, $8,062 is restricted for parks, and $281,279 is restricted for 14 City of Sanger, Texas MANAGEMENT'S DISCUSSIONAND ANALYSIS, Continued September 30, 2018 roadway impact fees. In addition, $30,512 is committed for employee benefits. Unassigned fund balance totaled $4,420,906 as of yearend. The general fund increased by $1,551,813 mainly as a result of revenues exceeding expenditures and other financing uses. The capital projects fund reflected an ending balance of $866,785, an increase of $625,849. This increase is attributed to greater intergovernmental revenues and transfers in compared to capital outlay expenditures in the current year. There was an increase in governmental fund balance of $2,174,302 over the prior year. The increase was primarily due to revenues and other financing sources exceeding current year expenditures. Proprietary Funds - The City's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. GENERAL FUND BUDGETARY HIGHLIGHTS There was a total positive budget variance of $1,499,410 in the general fund. This is a combination of a positive revenue variance of $732,927 a positive expenditure variance of $739,260, and a positive variance of $27,223 in other financing sources and uses. The most significant revenue variances were for property taxes, licenses and permits, intergovernmental revenue, and other revenues. CAPITAL ASSETS As of the end of the year, the City's governmental activities funds had invested $19,178,754 in a variety of capital assets and infrastructure, net of accumulated depreciation. Depreciation is included with the governmental capital assets as required by GASB Statement No. 34. The City's business -type activities funds had invested $27,575,268 in a variety of capital assets and infrastructure, net of accumulated depreciation. Expenditures exceeded appropriations in the public works department. In addition, debt service principal and interest and capital outlay expenditures exceeded the appropriated amount. Major capital asset events during the current year include the following: • Investment in the McReynolds road construction in the amount of $3,299,713. • Investments in street department infrastructure totaling $100,122. • Investments in infrastructure for electric department totaling $140,788. • Sewer plant expansion for $7,645,875. • Purchase of public safety vehicles for $91,286. • Acquisition of building improvements and machinery and equipment for parks department for $307,948. 15 . City of Sanger, ,texas MANAGEMENT'S DISCUSSIONAND ANALYSIS, Continued September 30, 2018 More detailed information about the City's capital assets is presented in note IV. D to the financial statements. LONG-TERM DEBT At the end of the current year, the City had total bonds outstanding of $23,725,000 and capital leases of $406,305. During the year, the City had principal payments on bonds and capital leases of $1,557,133. More detailed information about the City's long-term liabilities is presented in note IV. E to the financial statements. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The Mayor and City Council are committed to maintaining and improving the overall wellbeing of the City of Sanger and improving services provided to their public citizens. The City is budgeting for growth in the upcoming year. CONTACTING THE CITY'S FINANCIAL MANAGEMENT This financial report is designed to provide a general overview of the City of Sanger's finances for all those with an interest in the City's finances. Questions concerning this report or requests for additional financial information should be directed to the City Manager at the City of Sanger City Hall at 502 Elm Street, Sanger, Texas 76266: T'1 (This page intentionally left blank.) 17 City of Sanger, Texas STATEMENT OF NET POSITION (Page 1 of 2) September 30, 2018 Primary Government Governmental Business -Type Activities Activities Total Assets Current assets: Cash and cash equivalents $ 5,896,344 $ Restricted cash - Investments 535,538 Restricted investments - Receivables, net 890,289 Inventory - Internal balances (98,090) Total Current Assets 7,224,081 Capital assets: 5,383,382 $ 11,279,726 8,255,967 8,255,967 419,553 955,091 300,000 300,000 1,541,732 2,432,021 438,164 438,164 16,436,888 23,660,969 Non -depreciable 7,678,570 12,042,358 19,720,928 Net depreciable capital assets 11,500,184 15,532,910 27,033,094 19,178,754 27,575,268 46,754,022 Total Assets 26,402,835 44,012,156 70,414,991 Deferred Outflows of Resources Deferred charge on refunding 19,287 Pension contributions 168,737 OPEB contributions 217 OPEB gains (losses) 6,197 Pension assumption changes 33,623 Total Deferred Outflows of Resources 228,061 See Notes to Financial Statements. 33,702 52,989 50,854 219,591 65 282 1,851 8,048 10,133 43,756 96,605 324,666 18 Component Units Sanger Industrial Sanger Texas Dev. Corp. (4A) Dev. Corp. (413) $ 980,949 $ 726,120 94,806 279,693 68,595 68,595 1,144,350 1,074,408 774,584 - 774,584 - 1,918,934 1,074,408 M City of Sanger, Texas STATEMENT OF NET POSITION (Page 2 of 2) September 30, 2018 Liabilities Current liabilities: Accounts payable and accrued liabilities Accrued interest payable Customer deposits Long term debt due within one year Total Current Liabilities Noncurrent liabilities: Debt due in more than one year OPEB liability Net pension liability Total Liabilities Deferred Inflows of Resources Pension (gains) losses Pension investment earnings Total Deferred Inflows of Resources Net Position Net investment in capital assets Restricted for: Primary Government Governmental Business -Type Activities Activities Total $ 684,544 $ 2,131,567 $ 2,816,111 39,782 246,910 286,692 - 437,865 437,865 940,607 985,102 1,925,709 1,664,933 3,801,444 5,466,377 3,421,704 20,545,511 23,967,215 82,518 24,648 107,166 518,586 156,292 674,878 4,022,808 20,726,451 24,749,259 5,687,741 24,527,895 30,215,636 52,854 15,929 68,783 176,271 53,125 229,396 229,125 69,054 298,179 14,712,198 4,782,311 19,494,509 Debt service 455,935 - 455,935 Capital projects 866,785 - 866,785 Parks 8,062 - 8,062 Economic development - - - Other purposes 187,978 - 187,978 Unrestricted 4,483,072 14,729,501 19,212,573 Total Net Position $ 20,714,030 $ 19,511,812 $ 40,225,842 See Notes to Financial Statements. C Component Units Sanger Industrial Sanger Texas Dev. Corp. (4A) Dev. Corp. (413) $ 3,865 $ 45,459 48,176 - 52,041 45,459 260,319 - 260,319 - 312,360 45,459 466,089 - 1,140,485 1,028,949 $ 1,606,574 $ 1,028,949 21 Functions/Programs City of Sanger, Texas STATEMENT OF ACTIVITIES For the Year Ended September 30, 2018 Expenses Program Revenues Operating Capital Charges for Grants and Grants and Services Contributions Contributions Primary Government Governmental Activities General government $ 1,808,163 $ 1,221,002 $ 6,795 $ 9,023 Public safety 2,517,223 725,038 134,424 18,047 Public works 1,061,776 - - 3,465,562 Culture and recreation 737,343 - - - Interest and fiscal charges 173,032 - 212,500 - Total Governmental Activities 6,297,537 1,946,040 353,719 3,492,632 Business -Type Activities Water 1,573,190 2,258,067 - 475,000 Sewer 1,057,399 2,163,664 - - Electric 7,335,966 8,226,907 - - Fleet services 219 - - - Utility administration 732,319 73,654 - - Total Business -Type Activities 10,699,093 12,722,292 - 475,000 Total Primary Government $ 16,996,630 $ 14,668,332 $ 353,719 3,967,632 Component Units 4A 631,390 - - - 4B 479,760 - - - $ 1,111,150 $ - $ - $ - See Notes to Financial Statements. General Revenues: Taxes Property taxes Sales taxes Franchise and local taxes Investment income Other revenues Insurance recoveries Transfers Total General Revenues and Transfers Change in Net Position Beginning Net Position Ending Net Position 22 I Net (Expense) Revenue and Changes in Net Position Primary Government Component Units Governmental Business -Type Sanger Industrial Sanger Texas Activities Activities Total Dev. Corp. (4A) Dev. Corp. (4B) $ (571,343) $ - $ (571,343) $ - $ - (1,639,714) - (1,639,714) - - 2,403,786 - 2,403,786 - - (737,343) - (737,343) - - 39,468 - 39,468 - - (505,146) - (505,146) - - - 1,159,877 1,159,877 - - - 1,106,265 1,106,265 - - - 890,941 890,941 - - - (219) (219) - - - (658,665) (658,665) - - - 2,498,199 2,498,199 - - � � (505,146) 2,498,199 1,993,053 - - (631,390) - - (479,760) (631,390) (479,760) 3,953,836 - 3,953,836 - - 872,250 - 872,250 433,193 433,193 261,611 - 261,611 - - 5,012 25,558 30,570 - 1,709 385,431 - 385,431 28,135 - 10,594 - 10,594 - - 781,259 (781,259) - - - 6,269,993 (755,701) 5,514,292 461,328 434,902 5,764,847 1,742,498 7,507,345 (170,062) (44,858) 14,949,183 17,769,314 32,718,497 1,776,636 1,073,807 $ 20,714,030 $ I I 19,511,812 $ 40,225,842 $ 1,606,574 $ 1,028,949 23 Assets Cash and cash equivalents Investments Receivables, net Due from other funds Liabilities Accounts payable and accrued liabilities Due to other funds Deferred Inflows of Resources Unavailable revenue Property taxes EMS revenue City of Sanger, Texas BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2018 Capital General Projects Fund $ 4,454,701 $ 791,390 $ 535,538 - 467,498 408,720 8,520 - _ Total Assets $ 5,466,257 $ 1,200,110 $ $ 287,276 $ 333,325 $ 106,610 - _ Total Liabilities 393,886 333,325 49,826 - 93,808 - Total Deferred Inflows of Resources 143,634 - Nonmaj or Debt Service 454,999 14,071 469,070 13,135 13,135 Fund Balances Restricted for: Municipal court 8,853 - - Tourism 36,899 - - Library 102,024 - - Public safety 40,202 - Debt service - - 455,935 Capital projects - 866,785 - Parks 8,062 - - Roadway impact fees 281,279 - - Committed for: Employee benefits 30,512 - - Unassigned reported in: General fund 4,420,906 - - Total Fund Balances 4,928,737 866,785 455,935 Total Liabilities, Deferred Inflows, and Fund Balances $ 5,466,257 $ 1,200,110 $ 469,070 See Notes to Financial Statements. 24 Total Governmental Funds $ 5,701,090 535,538 890,289 8,520 $ 7,135,437 $ 620,601 106,610 727,211 62,961 93,808 156,769 8,853 36,899 102,024 40,202 455,935 866,785 8,062 281,279 30,512 4,420,906 6,251,457 $ 7,135,437 25 (Page intentionally left blank.) Fes: City of Sanger, Texas RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION GOVERNMENTAL FUNDS September 30, 2018 Fund Balances - Total Governmental Funds $ 6,251,457 Adjustments for the Statement of Net Position: Capital assets used in governmental activities are not current financial resources and, therefore, not reported in the governmental funds. Capital assets - non -depreciable 7,678,570 Capital assets - net depreciable 11,459,507 Other long-term assets are not available to pay for current -period expenditures and, therefore, are deferred in the governmental funds. Property tax receivable 62,961 EMS receivable 93,808 Deferred outflows of resources, represent a consumption of net position that applies to a future period(s) and is not recognized as an outflow of resources (expense/ expenditure) until then. Deferred charge on refunding 19,287 Pension contributions 125,858 OPEB contributions 161 Pension investment earnings (131,478) Pension gains (losses) (39,423) Pension assumption changes 25,079 OPEB gains (losses) 4,587 Internal service funds are used by management to charge the cost of internal services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. Net position - governmental activities (30,704) Some liabilities, including bonds payable and deferred charges, are not reported as liabilities in the governmental funds. Accrued interest (39,782) Compensated absences (164,899) Bond premium (94,410) Net pension liability (386,805) OPEB liability (61,085) Non -current liabilities due in one year (752,289) Non -current liabilities due in more than one year (3,306,370) Net Position of Governmental Activities $ 20,714,030 See Notes to Financial Statements. 27 City of Sanger, Texas STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For the Year Ended September 30, 2018 Revenues Property tax Sales tax Franchise and local taxes License and permits Charges for services Fire and rescue Contributions and donations Intergovernmental Fines and forfeitures Investment income Other revenue Total Revenues Expenditures Current: General government Police department Municipal court Fire and EMS Parks and recreation Public works Debt service: Principal Interest Capital outlay Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers (out) Proceeds from sale of capital assets Insurance recoveries Total Other Financing Sources (Uses) Nonmaj or Capital Debt General Projects Fund Service $ 3,275,548 $ - $ 675,212 872,250 - - 261,611 - - 322,230 - - 898,772 - - 629,461 - - 6,795 - - 134,424 3,465,562 212,500 95,577 - - 4,898 - 114 385,431 - - 6,886,997 3,465,562 887,826 1,527,438 - 1,500 1,443,548 - - 170,058 - - 968,738 - - 566,197 - - 802,759 - - 114,356 - 606,900 14,995 - 174,787 194,017 3,299,713 - 5,802,106 3,299,713 783,187 1,084,891 165,849 104,639 889,258 460,000 - (460,000) - (107,999) 27,070 - - 10,594 - - 466,922 460,000 (107,999) Net Change in Fund Balances 1,551,813 Beginning fund balances 3,376,924 Ending Fund Balances $ 4,928,737 $ See Notes to Financial Statements. VLJ,OY7 IJ,J V V 240,936 459,295 866,785 $ 455,935 0 Total Governmental Funds $ 3,950,760 872,250 261,611 322,230 898,772 629,461 6,795 3,812,486 95,577 5,012 385,431 11,240,385 1,528,938 1,443,548 170,058 968,738 566,197 802,759 721,256 189,782 3,493,730 9,885,006 1,355,379 1,349,258 (567,999) 27,070 10,594 818,923 2,174,302 4,077,155 $ 6,251,457 WE (This page intentionally left blank.) 30 City of Sanger, Texas RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended September 30, 2018 Amounts reported for governmental activities in the statement of activities are different because: Net changes in fund balances - total governmental funds Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay Depreciation expense Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. EMS receivable Property tax receivable Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences Accrued interest Pension expense OPEB expense The issuance of long-term debt (e.g., bonds, leases, certificates of obligation) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when they are first issued; whereas, these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Deferred charges on refunding Premium on debt Principal payments Internal service funds are used by management to charge the cost of internal services to individual funds. The City reports the net gain (loss) of internal service funds within governmental activities. Change in Net Position of Governmental Activities See Notes to Financial Statements. $ 2,174,302 3,847,784 (934,439) 3,281 (205) (20,547) (2,349) (10,747) (6,797) (7,250) 26,349 721,256 (25,791) $ 5,764,847 31 City of Sanger, Texas STATEMENT OF NET POSITION (Page 1 of 2) PROPRIETARY FUND September 30, 2018 Governmental Activities Water, Sewer Internal & Electric Service Assets Current Assets Cash and cash equivalents $ 5,383,382 $ 195,254 Restricted cash 8,255,967 - Investments 419,553 - Restricted 'investments 300,000 - Receivables, net 1,541,732 - Inventory 438,164 - Due from other funds 106,610 - Total Current Assets 16,445,408 195,254 Noncurrent Assets Capital assets: Non -depreciable 12,042,358 - Net depreciable capital assets 15,532,910 40,677 Total Noncurrent Assets 27,575,268 40,677 Total Assets 44,020,676 235,931 Deferred Outflows of Resources Pension contributions OPEB contributions Pension assumption changes OPEB (gains) losses Deferred charge on refunding Total Deferred Outflows of Resources 50,854 42,879 65 56 10,133 8,544 1,851 1,610 33,702 - 96,605 53,089 32 City of Sanger, Texas STATEMENT OF NET POSITION (Page 2 of 2) PROPRIETARY FUND September 30, 2018 Governmental Activities Water, Sewer Internal Liabilities Current Liabilities Accounts payable and accrued liabilities 2,131,567 63,943 Accrued interest 246,910 - Customer deposits 437,865 - Due to other funds 8,520 - Compensated absences - current 124,156 39,909 Bonds and capital leases payable -current 860,946 - Total Current Liabilities 3,809,964 103,852 Noncurrent Liabilities Compensated absences 13,795 4,434 Net pension liability 156,292 131,781 OPEB liability 24,648 21,433 Bonds and capital leases payable 20,531,716 - Total Liabilities 24,536,415 261,500 Deferred Inflows of Resources Pension (gains) losses 15,929 13,431 Pension investment earnings 53,125 44,793 Total Deferred Inflow of Resources 69,054 58,224 Net Position Net investment in capital assets 4,782,311 40,677 Unrestricted 14,729,501 (71,381) See Notes to Financial Statements. Total Net Position $ 19,511,812 $ (30,704) 33 City ®f Sanger, Texas STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUND For the Year Ended September 30, 2018 Governmental Activities Water, Sewer Internal & Electric Service Operating Revenues Charges for services $ 12,135,488 $ 1,176,603 Connection fees 59,000 - Tap fees 454,150 - Other revenue 73,654 3,548 Total Operating Revenues 12,722,292 1,180,151 Operating Expenses Salaries and wages 1,929,946 1,043,489 Contracted services 364,923 364,958 Utilities 326,977 101,449 Materials and supplies 117,506 70,999 Water and electric purchases 5,613,500 - Repairs and maintenance 733,663 107,788 Depreciation 894,522 4,134 Total Operating Expenses 9,981,037 1,692,817 Operating Income (Loss) 2,741,255 (512,666) Nonoperating Revenues (Expenses) Investment income 25,558 - Intergovernmental 475,000 - Interest expense (718,056) - Total Nonoperating Revenues (Expenses) (217,498) - Income (Loss) Before Transfers 2,523,757 (512,666) Transfers in - 504,258 Transfers (out) (781,259) - Change in Net Position 1,742,498 (8,408) Beginning net position 17,769,314 (22,296) Ending Net Position $ 19,511,812 $ (30,704) See Notes to Financial Statements. 34 City of Sanger, Texas STATEMENT OF CASH FLOWS PROPRIETARY FUND (Page 1 of 2) For the Year Ended September 30, 2018 Governmental Activities Water, Sewer Internal & Electric Service Cash Flows from Operating Activities Receipts from customers $ 12,802,296 $ 1,180,151 Payments to suppliers (6,262,169) (626,192) Payments to employees (1,889,776) (1,031,812) Payments/receipts for other 5,485 Net Cash Provided by (Used) by Operating Activities 4,655,836 (477,853) Cash Flows from Noncapital Financing Activities Operating transfers in - 504,258 Operating transfers (out) (781,259) - Net Cash Provided by (Used) by Noncapital Financing Activities (781,259) 504,258 Cash Flows from Capital and Related Financing Activities Capital purchases (9,588,138) (5,075) Capital contributions 475,000 - Principal paid on debt (835,877) - Interest paid on debt (793,327) Net Cash (Used) by Capital and Related Financing Activities (10,742,342) (5,075) Cash Flows from Investing Activities Purchases of investments, net (2,352) - Interest on investments 25,558 Net Cash Provided by Investing Activities 23,206 - Net Increase (Decrease) in Cash and Cash Equivalents (6,844,559) 21,330 Beginning cash and cash equivalents 20,483,908 173,924 Ending Cash and Cash Equivalents $ 13,639,349 $ 195,254 See Notes to Financial Statements. 35 City of Sanger, `Texas STATEMENT OF CASH FLOWS PROPRIETARY FUND (Page 2 of 2) For the Year Ended September 30, 2018 Governmental Activities Water, Sewer Internal & Electric Service Reconciliation of Operating Income to Net Cash Provided by perating Activities Operating Income $ 2,741,255 $ (512,666) Adjustments to reconcile operating income to net cash provided: Depreciation 894,522 4,134 Changes in Operating Assets and Liabilities: (Increase) Decrease in: Accounts receivable 80,565 - Inventory (51,633) - Due from/to other funds (3,035) - Deferred outflows of resources - pension contributions (2,589) (2,183) Deferred outflows of resources - OPEB contributions (2) (2) Deferred inflows of resources - pension investment earnings 123,653 104,261 Deferred inflows of resources - pension (gains) losses (13,597) (11,465) Deferred inflows of resources - OPEB (gains) losses (1,851) (1,610) Deferred outflows of resources - pension assumption changes 3,436 2,897 Increase (Decrease) in: Accounts payable and accrued liabilities 946,033 19,002 Due to other funds 8,520 - Compensated absences 33,085 5,633 Customer deposits (561) - Net pension liability (106,560) (89,850) OPEB liability 4,595 3,996 Net Cash Provided (Used) by Operating Activities $ 4,655,836 $ (477,853) See Notes to Financial Statements. M1 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS September 30, 2018 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Description of Government -Wide Financial Statements The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the pri nary govermnent and its component units. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business -type activities, which rely to a significant extent on fees and charges to external customers for support. Likewise, the primanj government is reported separately from certain legally separate component units for which the primary government is financially accountable. B. Reporting Entity The City of Sanger, Texas (the "City") was incorporated in 1886 and operates under a Council -Manager form of government. The City provides: general government, public safety, public works, culture and recreation, water, sewer, and electricity operations. The City is an independent political subdivision of the State of Texas governed by an elected council and a mayor and is considered a primary government. As required by generally accepted accounting principles, these basic financial statements have been prepared based on considerations regarding the potential for inclusion of other entities, organizations, or functions as part of the City's financial reporting entity. The Sanger Industrial Development Corporation ("4A fund") and the Sanger Texas Development Corporation ("4B fund"), although legally separate, are considered part of the reporting entity. No other entities have been included in the City's reporting entity. Additionally, as the City is considered a primary government for financial reporting purposes, its activities are not considered a part of any other governmental or other type of reporting entity. Considerations regarding the potential for inclusion of other entities, organizations or functions in the City's financial reporting entity are based on criteria prescribed by generally accepted accounting principles. These same criteria are evaluated in considering whether the City is a part of any other governmental or other type of reporting entity. The overriding elements associated with prescribed criteria considered in determining that the City's financial reporting entity status is that of a primary government are that it has a separately elected governing body; it is legally separate; and is fiscally independent of other state and local governments. 37 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued y September 30, 2018 Additionally, prescribed criteria under generally accepted accounting principles include considerations pertaining to organizations for which the primary government is financially accountable, and considerations pertaining to organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Discretely Presented Component Units Sanger Industrial Development Corporation (4A) The Sanger Texas Industrial Development Corporation ("4A") is governed by a board of five directors, all of whom are appointed by the City Council of the City of Sanger and any of whom can be removed from office by the City Council at its will. The 4A fund was incorporated in the state of Texas as a non-profit industrial development corporation under Section 4A of the Development Corporation Act of 1979. The purpose of the 4A fund is to promote economic development within the City of Sanger. Discrete presentation is appropriate because the District's Board is not substantially the same as the City. Sanger Texas Development Corporation (4B) The Sanger Texas Development Corporation ("0") is governed by a board of seven directors, all of whom are appointed by the City Council at its will. The 4B fund was incorporated in the state of Texas as a nonprofit industrial development corporation under Section 4B of the Development Corporation Act of 1979. The purpose of the 4B fund is to promote economic and community development within the City of Sanger. Discrete presentation is appropriate because the District's Board is not substantially the same as the City. C. Basis of Presentation Government -Wide and Fund Financial Statements While separate government -wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from govermnental funds while business -type activities incorporate data from the government's enterprise funds. Separate financial statements are provided for governmental funds and the proprietary funds. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are payments in lieu of taxes where the amounts are reasonably equivalent in value to the 9:3 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 interfund services provided and other charges between the government's water and transit functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. The fund financial statements provide information about the government's funds. Separate statements for each fund category —governmental and proprietary are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Major individual govermnental and enterprise funds are reported as separate columns in the fiend financial statements. The government reports the following major governmental funds: Governmental Funds Governmental funds are those funds through which most governmental functions are typically financed. General Fund The general fund is used to account for all financial transactions not properly includable in other funds. The principal sources of revenues include local property taxes, sales and franchise taxes, licenses and permits, fines and forfeitures, and charges for services. Expenditures include general government, public safety, parks and recreation and public works. Capital Projects Fund The capital projects fund is used to account for capital asset activities for governmental fund types. The government reports the following nonmajor governmental fund: Debt Service Fund The debt service fund is used to account for debt service activities for governmental fund types. 39 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 Proprietary Fund Types Proprietary funds are used to account for activities that are similar to those often found in the private sector. All assets, liabilities, equities, revenues, expenses, and transfers relating to the government's business activities are accounted for through proprietary funds. The measurement focus is on determination of net income, financial position, and cash flows. Proprietary funds distinguish operating revenues and expenses from non -operating items. Operating revenues include charges for services. Operating expenses include costs of materials, contracts, personnel, and depreciation. All revenues and expenses not meeting this definition are reported as non -operating revenues and expenses. Proprietary fund types follow GAAP prescribed by the Governmental Accounting Standards Board (GASB) and all financial Accounting Standards Boards standards issued prior to November 30, 1989. Subsequent to this date, the City accounts for its enterprise funds as presented by GASB. The proprietary fund types used by the City include enterprise funds. The government reports the following major enterprise fund: Water, Sewer, & Electric Fund This fund is used to account for the provision of water, sewer and electric services to the residents of the City. Activities of the fund include administration, operations and maintenance of the water production and distribution system, water collection and treatment systems, and electric services. The fund also accounts for the accumulation of resources for and the payment of long-term debt. All costs are financed through charges to utility customers. Additionally, the government reports the following fund type: Internal Service Fund Revenues and expenses related to services provided to organizations inside the City on a cost reimbursement basis are accounted for in an internal service fund. The City's internal service fund was set up to provide administrative support services to other funds of the City. During the course of operations the government has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other fonds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the 40 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 preparation of the government -wide financial statements. Balances between the funds included in governmental activities (i.e., the governmental and internal service funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between the fiends included in business -type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business -type activities column. Further, certain activity occurs during the year involving transfers of resources between funds. In fiend financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fiend financial statements, certain eliminations are made in the preparation of the government -wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Si nilarly, balances between the fiends included in business -type activities are eliminated so that only the net amount is included as transfers in the business -type activities column. D. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service 41 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long- term debt and acquisitions under capital leases are reported as other financing sources. Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). Expenditure -driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). All other revenue items are considered to be measurable and available only when cash is received by the government. E. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/Fund Balance 1. Deposits and Investments The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short term investments with original maturities of three months or less from the date of acquisition. For the purpose of the statement of cash flows, the proprietary fund types consider temporary investments with maturity of three months or less when purchased to be cash equivalents. In accordance with GASB Statement No. 31, Accounting and Reporting for Certain Investments and External Investment Pools, the City reports all investments at fair value, except for "money market investments" and "2a74ike pools." Money market investments, which are short-term highly liquid debt instruments that may include U.S. Treasury and agency obligations, are reported at amortized costs. Investment positions in external investment pools that are operated in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940, such as TexPool, are reported using the pools' share price. 42 City ®f Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 The City has adopted a written investment policy regarding the investment of its funds as defined in the Public Funds Investment Act, Chapter 2256, of the Texas Governmental Code. In summary, the City is authorized to invest in the following: Direct obligations of the U.S. Government Fully collateralized certificates of deposit and money market accounts Statewide investment pools 2. Fair Value The City has applied Governmental Accounting Standards Board ("GASB") Statement No. 72, Fair Value Measurement and Application. GASB Statement No. 72 provides guidance for determining a fair value measurement for reporting purposes and applying fair value to certain investments and disclosures related to all fair value measurements. 3. Receivables and Interfund Transactions Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the year are referred to as either "interfund receivables/payables" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non -current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds" in the fund financial statements. If the transactions are between the primary government and its component unit, these receivables and payables are classified as "due to/from component unit/primary government." Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances." Advances between funds are offset by a fund balance reserve account in the applicable governmental fund to indicate they are not available for appropriation and are not expendable available financial resources. All trade receivables are shown net of any allowance for uncollectible amounts. 4. Property Taxes Property taxes are levied by October 1 on the assessed value listed as of the prior January 1 for all real and business personal property in conformity with Subtitle E, Texas Property Tax Code. Taxes are due on receipt of the tax bill and are delinquent if not paid before February 1 of the year following the year in which imposed. 43 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 Penalties are calculated after February 1 up to the date collected by the government at the rate of 6% for the first month and increased 1% per month up to a total of 12%. Interest is calculated after February 1 at the rate of 1% per month up to the date collected by the government. Under state law, property taxes levied on real property constitute a lien on the real property which cannot be forgiven without specific approval of the State Legislature. The lien expires at the end of twenty years. Taxes levied on personal property can be deemed uncollectible by the City. S. Inventories and Prepaid Items The costs of governmental fund type inventories are recorded as expenditures when the related liability is incurred, (i.e., the purchase method). The inventories are valued at the lower of cost or market using the average cost method. Certain payments to vendors reflect costs applicable to future accounting periods (prepaid expenditures) are recognized as expenditures when utilized. 6. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the government, as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest costs incurred in connection with construction of enterprise fund capital assets are capitalized when the effects of capitalization materially impact the financial statements. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. 44 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful years. Asset Description Estimated Useful Life Vehicles 5-10 years Furniture and equipment 5 to 10 years Infrastructure 10-30 years Water and sewer system 10-30 years Buildings and improvements 5-40 years 7. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. An example is a deferred charge on refunding reported in the government -wide statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has only one type of item, which arises only under a modified accrual basis of accounting, which qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes and EMS revenues. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 8. Net Position Flow Assumption Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted — net position and unrestricted — net position in the govermnent-wide and proprietary fund financial statements, a 45 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 flow assumption must be made about the order in which the resources are considered to be applied. 9. Fund Balance Flow Assumptions Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. 10. Fund Balance Policies Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The i government itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance). The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the government's highest level of decision -making authority. The governing council is the highest level of decision -making authority for the government that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation. Amounts in the assigned fund balance classification are intended to be used by the government for specific purposes but do not meet the criteria to be classified as committed. The governing body (council) has by resolution authorized the City Manager to assign fund balance. The Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment. 46 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 11. Compensated Absences The liability for compensated absences reported in the government -wide and proprietary fund statements consist of unpaid, accumulated vacation balances. The liability has been calculated using the vesting method, in which leave amounts for both employees who currently are eligible to receive termination payments and other employees who are expected to become eligible in the future to receive such payments upon termination are included. Vested or accumulated vacation leave and compensated leave of government -wide and proprietary funds are recognized as an expense and liability of those funds as the benefits accrue to employees. It is the City's policy to liquidate compensated absences with future revenues rather than with currently available expendable resources. Accordingly, the City's governmental funds recognize accrued compensated absences when it is paid. 12. Long -Term Obligations In the government -wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities statement of net position. The long-term debt consists primarily of bonds payable and accrued compensated absences. Long-term debt for governmental funds is not reported as liabilities in the fund financial statements until due. The debt proceeds are reported as other financing sources, net of the applicable premium or discount and payments of principal and interest reported as expenditures. In the governmental fund types, issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures. However, claims and judgments paid from governmental funds are reported as a liability in the fund financial statements only for the portion expected to be financed from expendable available financial resources. Long-term debt and other obligations, financed by proprietary funds, are reported as liabilities in the appropriate funds. For proprietary fund types, bond premiums, and discounts are deferred and amortized over the life of the bonds using the effective interest method, if material. Bonds payable are reported net of the applicable bond premium or discount. Issuance costs are expensed as incurred in accordance with GASB statement no. 65. Assets acquired under the terms of capital leases are recorded as liabilities and capitalized in the government -wide financial statements at the present value of net minimum lease payments at inception of the lease. In the year of acquisition, capital 47 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued l September 30, 2018 lease transactions are recorded as other financing sources and as capital outlay expenditures in the general fund. Lease payments representing both principal and interest are recorded as expenditures in the general fund upon payment with an appropriate reduction of principal recorded in the government -wide financial statements. 13. Estimates The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. 14. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the Fiduciary Net Position of the Texas Municipal Retirement System (TMRS) and additions to/deductions from TMRS's Fiduciary Net Position have been determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 15. Other Postemployment Benefits (OPEB") The City has implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. This statement applies to the individual employers (TMRS cities) in the TMRS Supplemental Death Benefits (SDB) plan, with retiree coverage. The TMRS SDBF covers both active and retiree benefits with no segregation of assets, and therefore doesn't meet the definition of a trust under GASB No. 75 (i.e., no assets are accumulated for OPEB) and as such the SDBF is considered to be an unfunded OPEB plan. For purposes of reporting under GASB 75, the retiree portion of the SDBF is not considered a cost sharing plan and is instead considered a single employer, defined benefit OPEB plan. The death benefit for active employees provides a lump -sum payment approximately equal to the employee's annual salary, calculated based on the employee's actual earnings on which TMRS deposits are made, for the 12-month EU City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 period preceding the month of death. The death benefit amount for retirees is $7,500. GASB No. 75 requires the liability of employers and nonemployer contributing entities to employees for defined benefit OPEB (net OPEB liability) to be measured as the portion of the present value of projected benefit payments to be provided to current active and inactive employees that is attributed to those employees' past periods of service (total OPEB liability), less the amount of the OPEB plan's fiduciary net position. II. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of certain differences between the governmental fund balance sheet and the government -wide statement of net position. The governmental fund balance sheet includes reconciliation between fund balance - total governmental funds and net position -governmental activities as reported in the government -wide statement of net position. One element of that reconciliation explains that long-term liabilities, including bonds, are not due and payable in the current period and, therefore, are not reported in the funds. B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balances and the government -wide statement of activities. The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances — total governmental funds and changes in net position of governmental states that, "the issuance of long-term debt (e.g., bonds) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities." III. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental and enterprise fiends. The appropriated budget is prepared by fund, function, and department. The legal level of control is the fund level. No funds can be transferred or added to a 49 City Of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 budgeted item without Council approval. Appropriations lapse at the end of the year. Budget amendments were only re -classes at the function level and below and there was no increase in budgeted revenues or expenses by function from amendments. IV. DETAILED NOTES ON ALL FUNDS A. Deposits and Investments As of September 30, 2018, the primary government had the following investments: Investment Type Certificates of deposit Total fair value Portfolio weighted average maturity Average Maturity Fair Value (Years) $ 1,255,091 0.51 $ 1,255,091 0.51 As of September 30, 2018, the 4A Component Unit had the following investments: Investment Type Certificates of deposit Total fair value Portfolio weighted average maturity Average Maturity Fair Value (Years) $ 94,806 0.01 $ 94,806 0.01 As of September 30, 2018, the 4B Component Unit had the following investments: Average Maturity Investment Type Fair Value (Years) Certificates of deposit $ 279,693 0.42 Total fair value $ 279,693 Portfolio weighted average maturity 0.42 Interest rate risk — In accordance with its investment policy, the City manages its exposure to declines in fair values by limiting the weighted average of maturity not to exceed five years; structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations; monitoring credit ratings of portfolio position to assure compliance with rating requirements imposed by the Public Funds Investment Act; and invest operating funds primarily in short-term securities or similar government investment pools. 50 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 Credit risk — The City's investment policy limits investments to obligations of the United States, State of Texas, or their agencies and instrumentalities with an investment quality rating of not less than "A" or its equivalent, by a nationally recognized investment rating firm. Other obligations must be unconditionally guaranteed (either express or implied) by the full faith and credit of the United States Government or the issuing U.S. agency and investment pools with an investment quality not less than AAA or AAA-m, or equivalent, by at least one nationally recognized rating service. Custodial credit risk — deposits In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be returned to it. State statutes require that all deposits in financial institutions be insured or fully collateralized by U.S. government obligations or its agencies and instrumentalities or direct obligations of Texas or its agencies and instrumentalities that have a market value of not less than the principal amount of the deposits. As of September 30, 2018, the market values of pledged securities and FDIC exceeded bank balances. Custodial credit risk — investments For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City's investment policy requires that it will seek to safekeeping securities at financial institutions, avoiding physical possession. Further, all trades, where applicable, are executed by delivery versus payment to ensure that securities are deposited in the City's safekeeping account prior to the release of funds. B. Receivables The following comprise receivable balances of the primary government at year end: General Property taxes $ 86,107 Sales tax 137,190 Franchise & local taxes 38,982 Intergovernmental - EMS 321,491 Accounts 112,842 Other 6,283 Allowance (235,397) $ 467,498 Debt Capital Water, Sewer Service Projects &Electric Total $ 25,216 $ - $ - $ 111,323 - - - 137,190 - - - 38,982 - 408,720 - 408,720 - - - 321,491 - - 1,702,307 1,815,149 - - 352 6,635 (11,145) - (160,927) (407,469) $ 14,071 $ 408,720 $ 1,541,732 $ 2,432,021 51 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 The following comprise receivable balances of the component units at year end: 4A 4B Total Sales tax $ 68,595 $ 68,595 $ 137,190 $ 68,595 $ 68,595 $ 137,190 C. Inventory The following comprise the inventory balances of the primary government at year end: Inventory type Electric Department Water Department Total Cost $ 379,553 58.611 460,104 52 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 D. Capital Assets A summary of changes in governmental activities capital assets for the year end was as follows: Beginning Disposals / Ending Balances Increases Reclassifications Balances Capital assets, not being depreciated: Land $ 1,044,933 $ - $ - $ 1,044,933 Construction in progress 3,333,924 3,299,713 - 6,633,637 Total capital assets not being depreciated 4,378,857 3,299,713 - 7,678,570 Capital assets, being depreciated: Infrastructure 11,987,688 100,122 - 12,087,810 Buildings and improvements 6,568,909 229,131 - 6,798,040 Machinery and equipment 3,840,335 223,893 (53,710) 4,010,518 Total capital assets being depreciated 22,396,932 553,146 (53,710) 22,896,368 Less accumulated depreciation Infrastructure 6,137,617 323,043 - 6,460,660 Buildings and improvements 1,978,729 296,472 - 2,275,201 Machinery and equipment 2,394,975 319,058 (53,710) 2,660,323 Total accumulated depreciation 10,511,321 938,573 (53,710) 11,396,184 Net capital assets being depreciated 11,885,611 (385,427) - 11,500,184 Total Capital Assets $ 16,264,468 $ 2,914,286 $ - $ 19,178,754 Depreciation was charged to governmental functions as follows: General government $ 72,767 Public safety 117,797 Public works 362,387 Culture and recreation 281,721 Fire and rescue 99,767 Internal service 4,134 Total Governmental Activities Depreciation Expense $ 938,573 53 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued j September 30, 2018 A summary of changes in business -type activities capital assets for the year end was as follows: Beginning Disposals / Ending Balances Increases Reclassifications Balances Capital assets, not being depreciated: Land $ 496,857 $ - $ - $ 496,857 Construction in progress 7,894,804 9,348,068 (5,697,371) 11,545,501 Total capital assets not being depreciated 8,391,661 9,348,068 (5,697,371) 12,042,358 Capital assets, being depreciated: Infrastructure 23,655,730 208,470 5,697,371 29,561,571 Buildings and improvements 865,245 - - 865,245 Machinery and equipment 2,176,615 31,600 (38,769) 2,169,446 Total capital assets being depreciated 26,697,590 240,070 5,658,602 32,596,262 Less accumulated depreciation Infrastructure 14,251,284 738,250 - 14,989,534 Buildings and improvements 471,423 51,737 - 523,160 Machinery and equipment 1,484,892 104,535 (38,769) 1,550,658 Total accumulated depreciation i 16,207,599 894,522 (38,769) 17,063,352 Net capital assets being depreciated 10,489,991 (654,452) 5,697,371 15,532,910 Total Capital Assets $ 18,881,652 $ 8,693,616 $ - $ 27,575,268 Depreciation was charged to business -type activities as follows: Water $ 371,775 Sewer 309,642 Electric 198,623 Other 14,482 Total Business -type Activities Depreciation Expense $ 894,522 54 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 A summary of changes in component unit (4A Component Unit) capital assets for the year end was as follows: Beginning Retirements/ Ending Balances Additions Reclassifications Balances Capital assets, being depreciated: Buildings and improvements $ 1,080,797 $ - $ - $ 1,080,797 Furniture and fixtures 40,950 - - 40,950 Total capital assets being depreciated 1,121,747 - - 1,121,747 Less accumulated depreciation Buildings and improvements 291,505 38,360 - 329,865 Furniture and fixtures 12,935 4,363 - 17,298 Total accumulated depreciation 304,440 42,723 - 347,163 Net capital assets being depreciated 817,307 (42,723) - 774,584 Total Capital Assets $ 817,307 $ (42,723) $ - $ 774,584 The 4A Component Unit recognized depreciation expense of $42,723 during the year ended September 30, 2018. 55 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 E. Long-term Debt The following is a summary of changes in the City's total governmental long-term liabilities for the year ended. The City uses the debt service fund to liquidate governmental activities debts. Beginning Amortization/ Ending Due within Balance Additions Payments Balance One Year Governmental Activities: Bonds, notes and other payables: General Obligation Bonds $ 1,574,300 $ - $ (377,000) $ 1,197,300 $ 392,800 Certificates of Obligation 2,740,300 - (229,900) 2,510,400 241,600 Less deferred amounts: For issuance premiums 120,759 - (26,349) 94,410 - 4,435,359 - (633,249) 3,802,110 634,400 Other liabilities: Capital leases payable 465,315 - (114,356) 350,959 117,889 Compensated absences 183,062 209,242 (183,062) 209,242 188,318 Total Governmental Activities $ 5,083,736 $ 209,242 $ (930,667) $ 4,362,311 $ 940,607 Long-term liabilities due in more than one year $ 3,421,704 Business -Type Activities: General Obligation Bonds $ 1,910,700 $ - $ (458,000) $ 1,452,700 $ 477,200 Certificates of Obligation 18,889,700 - (325,100) 18,564,600 328,400 Less deferred amounts: For issuance premiums 1,421,602 - (101,586) 1,320,016 - 22,222,002 - (884,686) 21,337,316 805,600 Other liabilities: Capital leases payable 108,123 - (52,777) 55,346 55,346 Compensated absences 104,866 104,866 (71,781) 137,951 124,156 Total Business -Type Activities $ 22,434,991 $ 104,866 $ (1,009,244) $ 21,530,613 $ 985,102 Long-term liabilities due in more than one year $ 20,545,511 Component Units (4A Fund) Notes payable $ 352,814 $ - $ (44,319) $ 308,495 $ 48,176 Compensated absences 5,206 (5,206) - - $ 358,020 $ - $ (49,525) $ 308,495 $ 48,176 Long-term liabilities due in more than one year $ 260,319 56 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 Long-term debt at year end was comprised of the following debt issues: Governmental Activities General Obligation Bonds: $3,495,000 General Obligation Refunding Bond, Series 2012, due in installments through 2021, interest at 2% to 3% $ 477,400 $ $2,535,000 General Obligation Refunding Bond, Series 2016, due in installments through 2021, interest at 2% to 4% 719,900 _ Total General Obligation Bonds $ 1,197,300 $ Certificates of Obligation: $1,750,000 Certificates of Obligation, Series 2007, Business - Component Type unit Activities 4A Fund Total 607,600 $ - $ 1,085,000 845,100 - 1,565,000 1,452,700 $ - $ 2,650,000 due in annual installments through 2027, interest at 4.4% $ 333,200 $ 646,800 $ $3,200,000 Certificates of Obligation, Series 2009, due in annual installments through 2026, interest at 3% to 4.75% 1,765,000 - $4,260,000 Certificates of Obligation, Series 2013, due in annual installments through 2033, interest at 2% to 3.7% 412,200 3,022,800 $5,870,000 Certificates of Obligation, Series 2015, due in annual installments through 2035, interest at 3.4% to 5.5% - 5,655,000 $9,240,000 Certificates of Obligation, Series 2017, due in annual installments through 2035, interest at 3% to 4% - 9,240,000 Less deferred amounts: Issuance premium Total Certificates of Obligation $ 2,510,400 $ 18,564,600 $ Total Deferred Amounts $ Notes Payable: $660,000 Notes payable to a financial institution, due in monthly installments of $5,106 through June 2024, including interest at 4.6% $ Total Notes Payable $ Capital Leases Payable: $435,000 Capital lease payable to financial institution, due in annual installments of $51,535 through 2024, interest at 3.346% $ $500,000 Capital lease payable to financial institution, due in annual installments of $134,279 through 2019, interest at 2.947% _ Total Capital Leases Payable $ Compensated Absences $ 980,000 1,765,000 - 3,435,000 5,655,000 9,240,000 $ 21,075,000 94,410 $ 1,320,016 $ - $ 1,414,426 94,410 $ 1,320,016 $ - $ 1,414,426 275,370 $ - $ 75,589 55,346 350,959 $ 55,346 $ 209,242 137,951 308,495 $ 308,495 - $ 275,370 130,935 $ 406,305 347,193 Total Long-term Liabilities $ 4,362,311 $ 21,530,613 $ 308,495 $ 26,201,419 57 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly, are not reported as fund liabilities in the governmental funds. Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. The annual requirements to amortize governmental and business -type activities debt issues outstanding at year ending were as follows: General Obligation Bonds Year ending September 30, 2019 2020 2021 Governmental Activities Principal Interest $ 392,800 $ 41,908 410,900 27,824 393,600 13,929 $ 1,197,300 $ 83,661 Business -Type Activities Principal Interest $ 477,200 $ 50,492 499,100 33,476 476,400 16,746 $ 1,452,700 $ 100,714 58 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 Combination Tax and Revenue Certificates of Obligations Year ending September 30, 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Governmental Activities Principal Interest 241,600 248,900 261,200 273,500 286,400 297,000 309,300 323,900 71,800 28,800 30,600 31,800 33,600 35,400 36,600 110,391 100,919 91,050 79,919 68,258 55,768 42,686 28,194 13,024 9,768 8,400 6,870 5,280 3,600 1,830 $ 2,510,400 $ 625,958 Business -Type Activities Principal Interest $ 328,400 $ 715,779 331,100 706,516 408,800 694,655 616,500 679,742 633,600 660,427 658,000 640,327 675,700 618,519 701,100 593,113 998,200 566,321 1,086,200 526,357 1,124,400 482,800 1,173,200 436,574 1,221,400 387,920 1,269,600 337,338 1,323,400 284,626 1,420,000 229,713 1,475,000 173,656 1,535,000 115,344 1,585,000 63,400 $ 18,564,600 $ 8,913,125 General obligation bonds are direct obligations of the City for which its full faith and credit are pledged. Repayment of general obligation bonds are from taxes levied on all taxable property located within the City. The City is not obligated in any manner for special assessment debt. 59 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 Capital Leases Year ending Governmental Activities Business -Type Activities September 30, Principal Interest Principal Interest 2019 $ 117,889 $ 11,463 $ 55,346 $ 1,616 2020 43,716 7,819 - - 2021 45,179 6,357 - - 2022 46,690 4,845 - - 2023 48,252 3,283 - - 2024 49,233 1,668 - - $ 350,959 $ 35,435 $ 55,346 $ 1,616 The City has entered into capital lease agreements. The leased property under capital leases is classified as machinery and equipment with a total carrying value as of yearend for governmental activities and business type activities of $443,230 and $441,014, respectively. Note Payable for Component Unit - 4A Year ending Component Unit - 4A Fund September 30, Principal Interest 2019 $ 48,176 $ 13,091 2020 50,439 10,828 2021 52,809 8,458 2022 55,290 5,977 2023 57,887 3,380 2024 43,894 3,063 $ 308,495 $ 44,797 F. Conduit Debt Before the current year, the City issued notes payable totaling $230,461,407 for the purpose of assisting with financing needed by not -for -profit organizations to promote their cause. The final maturities on notes payable range from March 2019 through December 2041. The notes are secured by various assets of the borrower. The City has no liability for the notes payable in the event of default by the borrowers. Accordingly, the bonds are not reported as liabilities in the City's financial statements. City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 G. Deferred Charge on Refunding Deferred charges resulting from the issuance of the 2012 and 2016 general obligation refunding bonds have been recorded as a deferred outflow of resources and are being amortized to interest expense over the terms of the respective refunded debts. Current year balances for governmental and business -type activities totaled $19,287 and $33,702, respectively. Current year amortization expense for governmental and business -type activities totaled $7,250 and $12,726, respectively. H. Interfund Transactions Amounts transferred between funds relate to amounts collected, various capital expenditures, annual funding, and debt payments. Transfer out: General Debt Service Enterprise Transfer In Capital Internal General Projects Service Fund $ - $ 460,000 $ 504,258 107,999 781,259 - 1,176,603 $ 889,258 $ 460,000 $ 1,680,861 Total $ 964,258 107,999 1,957,862 $ 3,030,119 The internal service fund provides administrative services to the general and water, sewer, & electric funds. Below is a summary of the amounts paid from these funds to the internal service fund for the year ended September 30, 2018: Paid by: General Enterprise Received by: Internal Service $ 504,258 1,176,603 $ 1,680,861 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 The compositions of interfund due to/from balances as of the year ended September 30, 2018were as follows: Receivable fund: Payable fund: Enterprise _ General $ 106,610 $ Enterprise - General 8,520 $ 106,610 $ 8,520 Interfund balances resulted from the timing difference between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. All balances are expected to be paid in the subsequent year. I. Fund Equity The City records fund balance restrictions on the fund level to indicate that a portion of the fund balance is legally restricted for a specific future use or to indicate that a portion of the fund balance is not available for expenditures. The following is a list of fund balances restricted/committed by the City: Restricted Committed Municipal court $ 8,853 $ - Tourism 36,899 - Library 102,024 - Public safety 40,202 - Debt service 455,935 - Capital projects 866,785 - Parks 8,062 - Streets 281,279 - Employee benefits - 30,512 $ 1,800,039 $ 30,512 M, City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 V. OTHER INFORMATION A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets, errors and omissions; and natural disasters for which the City participates along with 2,800 other entities in the Texas Municipal League's Intergovernmental Risk Pools. The Pool purchases commercial insurance at group rates for participants in the Pool. The City has no additional risk or responsibility to the Pool outside of the payment of insurance premiums. The City has not significantly reduced insurance coverage or had settlements which exceeded coverage amounts for the past three years. B. Contingent Liabilities Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amounts of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends, including frequency and amount of payouts, and other economic and social factors. 63 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 C. Construction commitments The government has active construction projects as of September 30, 2018. The projects include street construction and improvements, sewer plant and the construction of additional water lines and repairs. At year end the government's commitments with contractors are as follows: Project McReynolds Road Reconstruction McReynolds Road Reconstruction McReynolds Road Reconstruction McReynolds Road Reconstruction Server Consolidation Railroad Lift Station E35 WWL to Lois E35 WWL to Lois New Sewer Plant New Sewer Plant D. Arbitrage Remaining Vendor Commitment Pacheco Koch, LLC $ 4,735 HRM Land Acquisition 397 Pavecon 205,686 D&S Engineering 4,110 Project Total 214,928 Austin Lane Technology 20,166 Perkins Engineering 19,332 Pacheco Koch LLC 25,790 D&S Engineering 4,630 Project Total 30,420 Alan Plummer Associates 32,791 Felix Construction 2,807,957 Anixter, Inc. 285 Project Total 2,841,033 Total $ 3,125,879 The Tax Reform Act of 1986 instituted certain arbitrage consisting of complex regulations with respect to issuance of tax-exempt bonds after August 31, 1986. Arbitrage regulations deal with the investment of tax-exempt bond proceeds at an interest yield greater than the interest yield paid to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if applicable rebates are not reported and paid to the Internal Revenue Service at least every five years for applicable bond issues. Accordingly, there is the risk that if such calculations are not performed correctly, a substantial liability to the City could result. The City does anticipate that it will have an arbitrage liability and performs 64 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued j September 30, 2018 annual calculations to estimate this potential liability. The City will also engage an arbitrage consultant to perform the calculations in accordance with Internal Revenue Service's rules and regulations if indicated. E. Defined Benefit Pension Plans 1. Plan Description The City of Sanger, Texas participates as one of 883 plans in the nontraditional, joint contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple -employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the System with a six -member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS's defined benefit pension plan is a tax -qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS issues a publicly available comprehensive annual financial report (CAFR) that can be obtained at www.tmrs.com. All eligible employees of the city are required to participate in TMRS. 2. Benefits Provided TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the city, within the options available in the state statutes governing TMRS. At retirement, the benefit is calculated as if the sum of the employee's contributions, with interest, and the city -financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement benefit in one of seven payments options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the member's deposits and interest. The plan provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. Plan provisions for the City were as follows: 65 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued G September 30, 2018 Employee deposit rate Matching ratio (city to employee) Years required for vesting Service retirement eligibility (expressed as age / years of service) Updated service credit Annuity increase (to retirees) Plan Year 2017 6.0% 2to1 R 60/5, 0/20 100% Repeating Transfers 0% of CPI Employees covered by benefit terms Plan Year 2016 6.0% 2to1 5 60/5, 0/20 100% Repeating Transfers 0% of CPI At the December 31, 2017 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 18 Inactive employees entitled to but not yet receiving benefits 27 Active employees 65 Total 110 3. Contributions The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the city matching percentages are either 100%, 150%, or 2001/o, both as adopted by the governing body of the City. Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees for the City of Sanger were required to contribute 6% of their annual gross earnings during the fiscal year. The contribution rates for the City of Sanger were 7.63% and 7.79% in calendar years 2017 and 2018, respectively. The City's contributions to TMRS for the year ended September 30, 2018, were $287,348, and were equal to the required contributions. City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 4. Net Pension Liability The City's Net Pension Liability (NPL) was measured as of December 31, 2017, and the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. Actuarial assumptions: The Total Pension Liability in the December 31, 2017 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.5% per year Overall payroll growth 3.0% per year Investment Rate of Return 6.75%, net of pension plan investment expense, including inflation Salary increases were based on a service -related table. Mortality rates for active members, retirees, and beneficiaries were based on the gender -distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment, with male rates multiplied by 109% and female rates multiplied by 103%.The rates are projected on a fully generational basis by scale BB to account for future mortality improvements. For disabled annuitants, the gender -distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment are used with males rates multiplied by 109% and female rates multiplied by 103% with a 3-year set -forward for both males and females. In addition, a 3% minimum mortality rate is applied to reflect the impairment for younger members who become disabled. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements subject to the 3% floor. The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over the four year period from December 31, 2010 to December 31, 2014. They were adopted in 2015 and first used in the December 31, 2015 actuarial valuation. The post -retirement mortality assumption for healthy annuitants and Annuity Purchase Rate (APRs) are based on the Mortality Experience Investigation Study covering 2009 through 2011 dated December 31, 2013. In conjunction with these changes first used in the December 31, 2013 valuation, the System adopted the Entry Age Normal actuarial cost method and a one-time change to the amortization policy. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the 67 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued y September 30, 2018 production of income, in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In determining their best estimate of a recommended investment return assumption under the various alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). The target allocation and best estimates of real rates of return for each major asset class in fiscal year 2018 are summarized in the following table: Asset Class Target Allocation Long -Term Expected Real Rate of Return (Arithmetic) Domestic Equity 17.5% 4.55% International Equity 17.5% 6.35% Core Fixed Income 10.0% 1.00% Non -Core Fixed Income 20.0% 3.90% Real Return 10.0% 3.80% Real Estate 10.0% 4.50% Absolute Return 10.0% 3.75% Private Equity 5.0% 7.50% Total 100.0% Discount Rate: The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rates specified in statute. Based on that assumption, the pension plan's Fiduciary Net Position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. M. City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 Changes in the Net Pension Liability: Balance at 12/31/16 Changes for the year: Service Cost Interest (on the Total Pension Liab.) Difference between expected and actual experience Contributions — employer Contributions — employee Net investment income Benefit payments, including refunds of emp. contributions Administrative expense Other changes Net changes Balance at 12/31/17 Total Pension Liability (a) $ 8,635,174 $ 438,324 590,632 38,794 Plan Fiduciary Net Net Pension Position (b) Liability (a) — (b) 7,500,161 $ 1,135,013 276,169 217,171 1,040,205 (208,451) (208,451) - (5,387) - (273) 859,299 1,319,434 $ 9,494,473 $ 8,819,595 438,324 590,632 38,794 (276,169) (217,171) (1,040,205) 5,387 273 (460,135) $ 674,878 Sensitivity of the net pension liability to changes in the discount rate The following presents the net pension liability of the City, calculated using the discount rate of 6.751/o, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.75%) or 1- percentage-point higher (7.75%) than the current rate: 1% Decrease 5.75% Current Single Rate Assumption 6.75% 1% Increase 7.75% $ 2,206,315 $ 674,878 $ (572,864) Pension Plan Fiduciary Net Position: Detailed information about the pension plan's Fiduciary Net Position is available in a separately -issued TNM financial report. That report may be obtained on the internet at www.tmrs.com. .• City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 S. Pension Expense and Deferred Outflows of Resources Related to Pensions For the year ended September 30, 2018, the City recognized pension expense of $306,098. At September 30, 2018, the City reported deferred outflows and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred of Resources (Inflows) of Resources Difference between projected and investment earnings $ - $ (229,396) Changes in actuarial assumptions 43,756 - Differences between expected and actual economic experience - (68,783) Contributions subsequent to the measurement date 219,591 - Total $ 263,347 $ (298,179) The City reported $219,591 as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability for the year ending September 30, 2019. Other amounts reported as deferred outflows of resources related to pensions will be recognized in pension expense as follows: Year ended December 31: 2018 $ (5,085) 2019 (20,734) 2020 (114,767) 2021 (114,102) 2022 265 Thereafter - $ (254,423) F. Postemployment Benefits Other Than Pensions The City also participates in the cost sharing multiple -employer defined benefit group -term life insurance plan operated by the Texas Municipal Retirement System (TMRS) known as the Supplemental Death Benefits Fund (SDBF). The City elected, 70 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 by ordinance, to provide group -term life insurance coverage to both current and retired employees. The City may terminate coverage under and discontinue participation in the SDBF by adopting an ordinance before November 1 of any year to be effective the following January 1. The death benefit for active employees provides a lump -sum payment approximately equal to the employee's annual salary (calculated based on the employee's actual earnings, for the 12-month period preceding the month of death); retired employees are insured for $7,500; this coverage is an "other postemployment benefit," or OPEB. The City contributes to the SDBF at a contractually required rate as determined by an annual actuarial valuation. The rate is equal to the cost of providing one-year term life insurance. The funding policy for the SDBF program is to assure that adequate resources are available to meet all death benefit payments for the upcoming year; the intent is not to pre -fund retiree term life insurance during employees' entire careers. Employees covered by benefit terms At the December 31, 2017 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 11 Inactive employees entitled to but not yet receiving benefits 7 Active employees 65 Total 83 The City's retiree contribution rates to the TMRS SDBF for the years ended 2018, 2017 and 2016 are as follows: Annual Actual Required Contribution Plan/ Contribution Made Calendar Year (Rate) (Rate) 2015 0.01% 0.01% 2016 0.01% 0.01% 2017 0.01% 0.01% Percentage of ARC Contributed 100.0% 100.0% 100.0% 71 City ®f Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued y September 30, 2018 The City's contributions to the TMRS SDBF for the years ended 2018, 2017, and 2016 were $371, $355 and $322, respectively, which equaled the required contributions each year. Total OPEB Liability The City's Postemployment Benefits Other Than Pensions Liability (OPEB) was measured as of December 31, 2017, and the Total OPEB Liability was determined by an actuarial valuation as of that date. Actuarial assumptions: The Total OPEB Liability in the December 31, 2017 actuarial valuation was determined using the following actuarial assumptions: Inflation Overall payroll growth Discount rate Retirees' share of benefit -related costs Administrative expenses 2.5% per year 3.5% to 10.5%, including inflation per year 3.31 % $0 All administrative expenses are paid through the Pension Trust and accounted for under reporting requirements under GASB Statement No. 68 Salary increases were based on a service -related table. Mortality rates for active members, retirees, and beneficiaries were based on the gender -distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment, with male rates multiplied by 109% and female rates multiplied by 103%. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements. For disabled annuitants, the gender -distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment are used with males rates multiplied by 109% and female rates multiplied by 103% with a 3-year set -forward for both males and females. In addition, a 3% minimum mortality rate is applied to reflect the impairment for younger members who become disabled. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements subject to the 3% floor. 72 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 Discount Rate: The discount rate used to measure the Total OPEB Liability was 3.31%. The discount rate was based on the Fidelity Index's "20-Year Municipal GO AA Index' rate as of December 31, 2017. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, calculated using the discount rate of 3.31%, as well as what the City's total OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (2.31%) or 1-percentage-point higher (4.31%) than the current rate: 1% Decrease (2.31%) $ 130,438 Current Single Rate 1% Increase Assumption 3.31% (4.31%) $ 107,166 $ 88,684 Changes in the Total OPEB Liability: Total OPEB Liability Balance at 12/31/16 $ 87,186 Changes for the year: Service Cost 7,601 Interest 3,432 Changes of assumptions 9,310 Benefit payments (363) Net changes 19,980 Balance at 12/31/17 $ 107,166 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended September 30, 2018, the City recognized OPEB expense of $12,295. 73 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2018 At September 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to the OPEB liability from the following sources: Deferred Outflows of Resources Differences between expected and $ 8,048 actual economic experience Contributions subsequent to measurement date 282 Total $ 8,330 The City reported $282 as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability for the year ending September 30, 2019. Other amounts reported as deferred outflows of resources related to pensions will be recognized in pension expense as follows: Year ended December 31: 2018 2019 2020 2021 2022 Thereafter G. Restatement $ 1,262 1,262 1,262 1,262 1,262 1,738 $ 8,048 Due to the implementation of GASB No. 75, the City restated its beginning net position within governmental activities and business -type activities to properly reflect the total OPEB liability and related deferred outflows and inflows of resources, as prescribed by this accounting standard. This adjustment was recorded at the fund level for proprietary funds only, and recorded at the government -wide level for both governmental and business -type activities. 74 City of Sanger, Texas NOTES TO FINANCIAL STATEMENTS, Continued y September 30, 2018 The City has restated net position as follows: Proprietary Fund Water, Sewer & Electric Prior year ending net position, as reported $ 17,789,304 Impact of implementation of GASB 75 (19,990) Restated beginning net position $ 17,769,314 Governmental Activities Governmental Internal Service Activities Fund Prior year ending net position, as reported $ 14,998,723 $ (4,913) Impact of implementation of GASB 75 (49,540) (17,383) Restated beginning net position $ 14,949,183 $ (22,296) H. Subsequent Events There were no material subsequent events through January 18, 2019, the date the financial statements were available to be issued. 75 (This page intentionally left blank.) Wei REQUIRED SUPPLEMENTARY INFORMATION 77 City of Sanger, Texas SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL- GENERAL FUND (Page 1 of 2) For the Year Ended September 30, 2018 Revenues Property tax Sales tax Franchise and local taxes License and permits Charges for services Fire and rescue Contributions and donations Intergovernmental Fines and forfeitures Investment income Other revenue Total Revenues Expenditures Current: General government Police department Municipal court Fire and EMS Parks and recreation Public works Debt service: Principal Interest Capital outlay Original Budget Final Budget Actual Variance with Final Budget $ 3,181,000 $ 3,181,000 $ 3,275,548 $ 94,548 905,000 905,000 872,250 (32,750) 221,100 221,100 261,611 40,511 206,070 206,070 322,230 116,160 843,600 843,600 898,772 55,172 585,000 585,000 629,461 44,461 - - 6,795 6,795 - - 134,424 134,424 112,000 112,000 95,577 (16,423) 4,000 4,000 4,898 898 96,300 96,300 385,431 289,131 6,154,070 6,154,070 6,886,997 732,927 1,672,736 1,604,944 1,527,438 77,506 1,601,752 1,624,442 1,443,548 180,894 223,715 227,155 170,058 57,097 1,143, 961 1,152, 701 968,738 183,963 609,977 588,008 566,197 21,811 838,590 876,003 802,759 73,244 94,208 94,208 114,356 (20,148) 13,790 13,790 14,995 (1,205) 345,304 360,115 194,017 166,098 Total Expenditures 6,544,033 Revenues Over (Under) Expenditures (389,963) $ 6,541,366 5,802,106 739,260 (387,296) $ 1,084,891 $ 1,472,187 0 City of Sanger, Texas SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL- GENERAL FUND (Page 2 of 2) For the Year Ended September 30, 2018 Original Variance with Budget Final Budget Actual Final Budget Other Financing Sources (Uses) Transfers in 899,699 $ 899,699 $ 889,258 $ (10,441) Transfers (out) (460,000) (460,000) (460,000) - Sale of capital assets - - 27,070 27,070 Insurance recoveries - - 10,594 10,594 Total Other Financing Sources (Uses) 439,699 439,699 466,922 27,223 Net Change in Fund Balance 49,736 $ 52,403 1,551,813 $ 1,499,410 Beginning fund balance 3,376,924 Ending Fund Balance $ 4,928,737 Notes to Required Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). W J City of Sanger, Texas SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS Years ended December 31, Total pension liability Service cost Interest (on the Total Pension Liability) Changes in benefit terms Differences between expected and actual experience Changes of assumptions Benefit payments, including refunds of participant contributions Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position Contributions - employer Contributions - members Net investment income Benefit payments, including refunds of participant contributions Administrative expenses Other Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) Fund's net pension liability - ending (a) - (b) Plan fiduciary net position as a percentage of the 2017 2016 2015 $ 438,324 $ 408,943 $ 369,950 590,632 545,333 521,853 38,794 (78,516) (89,808) - - 47,847 (208,451) (230,245) (260,514) 859,299 645,515 589,328 8,635,174 7,989,659 7,400,331 $ 9,494,473 $ 8,635,174 $ 7,989,659 $ 276,169 $ 240,177 $ 231,097 217,171 202,113 195,568 1,040,205 461,955 9,831 (208,451) (230,245) (260,514) (5,387) (5,214) (5,988) (273) (281) (296) 1,319,434 668,505 169,698 7,500,161 6,831,656 6,661,957 $ 8,819,595 $ 7,500,161 $ 6,831,655 $ 674,878 $ 1,135,013 $ 1,158,004 total pension liability 92.89% 86.86% 85.51% Covered employee payroll $ 3,619,524 $ 3,368,554 $ 3,259,471 Fund's net position as a percentage of covered employee payroll 18.65% 33.69% 35.53% Notes to schedule: 1) This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, only available information is shown. :1 2014 $ 340,004 476,571 47,610 (204,026) 660,159 6,740,172 $ 7,400,331 $ 211,283 187,821 350,203 (204,026) (3,656) (301) 541,324 6,120,633 $ 6,661,957 $ 738,374 90.02% $ 3,130,346 23.59% RIM City of Sanger, Texas SCHEDULE OF EMPLOYER CONTRIBUTIONS TO PENSIONPLAN Years Ended: 9/30/2018 9/30/2017 9/30/2016 9/30/2015 1 Actuarially determined employer contributions $ 287,348 $ 266,753 $ 247,432 $ 225,111 Contributions in relation to the actuarially determined contribution $ 287,348 $ 266,753 $ 247,432 $ 225,111 Contribution deficiency (excess) $ - $ - $ - $ - Annual covered employee payroll $ 3,706,912 $ 3,549,724 $ 3,475,512 $ 3,130,346 Employer contributions as a percentage of 7.75% 7.51% 7.12% 7.19% covered employee payroll 1) This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, only available information is shown. NOTES TO SCHEDULE OF EMPLOYER CONTRIBUTIONS TO PENSION PLAN Valuation Date: Notes Actuarially determined contribution rates are calculated as of December 31 and become effective in January 13 months later. Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll, Closed Remaining Amortization Period 26 years Asset Valuation Method 10 Year smoothed market;15% soft corridor Inflation 2.5% Salary Increases 3.0% to 10.5% including inflation Investment Rate of Return 6.75% Retirement Age Experience -based table of rates that are specific to the City's plan of benefits. Last updated for the 2015 valuation pursuant to an experience study of the period 2010 - 2014 Mortality RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates multiplied by 109% and female rates multiplied by 103% and projected on a fully generational basis with scale BB Other Information: Notes There were no benefit changes during the year. City of Sanger, Texas SCHEDULE OF CHANGES IN POSTEMPLOYMENT BENEFITS OTHER THAN PENSION (OPEB) LIABILITY AND RELATED RATIOS TEXAS MUNICIPAL RETIREMENT SYSTEM Years ended December 31, 2017 Total OPEB liability Service cost $ 7,601 Interest (on the Total Pension Liability) 3,432 Changes in benefit terms - Differences between expected and actual experience - Changes of assumptions 9,310 1 Benefit payments, including refunds of participant contributions (363) Net changes 19,980 Total OPEB liability - beginning 87,186 Total OPEB liability - ending (a) $ 107,166 2 Covered employee payroll $ 3,619,524 Total OPEB Liability as a percentage of covered employee payroll 2.96% Notes to schedule: 1 This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, only available information is shown. 2 No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB statement No. 75 to pay related benefits. 83 (This page intentionally left blank.) Dul OTHER SUPPLEMENTARY INFORMATION City of Sanger, Texas COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS - BY DEPARTMENT For the Year Ended September 30, 2018 Water Sewer Electric Fleet Services Operating Revenues Charges for services $ 2,059,917 $ 1,907,664 $ 8,167,907 $ - Connection fees - - 59,000 - Tap fees 198,150 256,000 - Other revenue - - - Total Operating Revenues 2,258,067 2,163,664 8,226,907 - Operatine Expenses Salaries and wages 598,666 282,088 Contracted services 41,151 42,991 Utilities 177,536 147,011 Materials and supplies 24,517 33,723 Water and electric purchases 84,752 - Repairs and maintenance 274,793 241,944 Depreciation 371,775 309,642 Total Operating Expenses 1,573,190 1,057,399 Operating Income (loss) 684,877 1,106,265 Nonoperating Revenues (Expenses) Investment income - - Intergovermnental 475,000 - Interest expense - - Nonoperating Revenues (Expenses) 475,000 - Income Before Transfers 1,159,877 1,106,265 1,049,192 - 280,781 - 2,430 - 59,266 - 5,528,748 - 216,926 - 198,623 219 7,335,966 219 890,941 Transfers (out) - - (92,000) Change in Net Position $ 1,159,877 $ 1,106,265 $ 798,941 $ Administration Total $ - $ 12,135,488 - 59,000 - 454,150 73,654 73,654 73,654 12,722,292 - 1,929,946 - 364,923 - 326,977 - 117,506 - 5,613,500 - 733,663 14,263 894,522 14,263 9,981,037 59,391 2,741,255 25,558 25,558 - 475,000 (718,056) (718,056) (692,498) (217,498) (633,107) 2,523,757 (689,259) (781,259) $ (1,322,366) $ 1,742,498 87 (This page intentionally left blank.) BANGER *TEXAS COUNCIL AGENDA ITEM AGENDA TYPE ® Regular ❑ Special ❑ Consent Reviewed by Finance ❑ Yes ® Not Applicable ❑ Workshop ❑ Executive ® Public Hearing Reviewed by Legal Lj Yes N Not Applicable Council Meeting Date: Submitted By: February 4, 2019 Muzaib Riaz, Planner, Development Services City Manager Reviewed/Approval Initials A-C- Date !I -))I I ACTION REQUESTED: ❑ ORDINANCE ❑ RESOLUTION # ❑ APPROVAL ❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS ®OTHER Public Hearin AGENDA CAPTION Conduct a Public Hearing Regarding a Requested Variance to Allow 30 Feet of Right -of -Way (ROW) Dedication Instead of 60 Feet of ROW Dedication Required as Public Access to proposed lot 1R from FM 455, for a proposed Replat of Lot I & Lot 2R, Block 1, of LL&T Addition; Being a Replat of Lot 1, Block 1, LL&T Addition; Being 7.026 Acres and Generally Located North of FM 455 and Approximately 1200 Feet South-West of the Intersection of FM 1190 and FM 455. FINANCIAL SUMMARY ®N/A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑REVENUE ❑CIP ❑BUDGETED ❑NON -BUDGETED BACKGROUND/SUMMARY OF ITEM The applicant is requesting a variance from the ROW width requirement in Section 5.01 — General Plat Requirements, Exhibit A — Subdivision Ordinance, Chapter 10 — Subdivision Regulation, of the City of Sanger Code of Ordinances. The proposed Replat is for a commercial lot according to Section 5.01.J — "Street widths proposed for industrial subdivisions or commercial development shall not be less than that required for a Collector." The minimum ROW width for a Collector is 60 feet. STAFF OPTIONS & RECOMMENDATION See Staff Report. List of Supporting Documents/Exhibits Attached: Prior Action/Review by Council, Boards, Commissions or Other Agencies: BANGER * T E XA S COUNCIL AGENDA ITEM AGENDA TYPE ® Regular ❑ Special ❑ Consent Reviewed by Finance ❑ Yes ® Not Applicable ❑ Workshop ❑ Executive ❑ Public Hearing Reviewed by Legal Lj Yes 0 Not Applicable Council Meeting Date: Submitted By: February 4, 2019 Muzaib Riaz, Planner, Development Services City Manager Reviewed/Approval Initials h& Date ACTION REQUESTED: ❑ ORDINANCE ❑ RESOLUTION # ® APPROVAL ❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS [_]OTHER AGENDA CAPTION Consider, Discuss and Act on the Requested Variance to Allow 30 Feet of Right -of -Way (ROW) Dedication Instead of 60 Feet of ROW Dedication Required as Public Access to proposed lot 1R from FM 455, for a proposed Replat of Lot 1R & Lot 2R, Block 1, of LL&T Addition; Being a Replat of Lot 1, Block 1, LL&T Addition; Being 7.026 Acres and Generally Located North of FM 455 and Approximately 1200 Feet South-West of the Intersection of FM 1190 and FM 455. FINANCIAL SUMMARY MN/A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑REVENUE ❑CIP []BUDGETED ❑NON -BUDGETED BACKGROUND/SUMMARY OF ITEM The applicant is requesting a variance from the ROW width requirement in Section 5.01 — General Plat Requirements, Exhibit A — Subdivision Ordinance, Chapter 10 — Subdivision Regulation, of the City of Sanger Code of Ordinances. The proposed Replat is for a commercial lot according to Section 5.01.J — "Street widths proposed for industrial subdivisions or commercial development shall not be less than that required for a Collector." The minimum ROW width for a Collector is 60 feet. STAFF OPTIONS & RECOMMENDATION See Staff Report List of Supporting Documents/Exhibits Attached: • Staff Report Prior Action/Review by Council, Boards, Commissions or Other Agencies: • Location Map • Plat Exhibit • Application • Letter of Intent • Denton County Planning's comments • Section 5 — General Plat Requirements • Section 10 — Other Requirements SANGER CITY COUNCIL STAFF REPORT *TEXAS Meeting Date: February 4, 2019 Case #: 18SANZON-0073 Case Coordinator: Muzaib Riaz, Planner, Development Services Request: Conduct a Public Hearing and Consider, Discuss and Act on the Requested Variance to Allow 30 Feet of Right -of -Way (ROW) Dedication Instead of 60 Feet of ROW Dedication Required as Public Access to proposed lot I from FM 455, for a proposed Replat of Lot I & Lot 2R, Block 1, of LL&T Addition; Being a Replat of Lot 1, Block 1, LL&T Addition; Being 7.026 Acres and Generally Located North of FM 455 and Approximately 1200 Feet South-West of the Intersection of FM 1190 and FM 455. Applicant: Barry Harkins Case Overview The applicant is requesting a variance from the ROW width requirement in Section 5.01— General Plat Requirements, Exhibit A — Subdivision Ordinance, Chapter 10 — Subdivision Regulation, of the City of Sanger Code of Ordinances. The proposed Replat is for a commercial lot according to Section 5.01.J — "Street widths proposed for industrial subdivisions or commercial development shall not be less than that required for a Collector." The minimum ROW width for a Collector is 60 feet. The applicant is requesting a variance due to a hardship that there are buildings on the said lot only approximately 50 feet away from the east lot boundary, and a ROW dedication of a 100 feet would encroach on the said buildings. Additionally, there is a 60 foot mutual access easement towards the east lot boundary, divided halfway (30') between the subject lot and the lot on the east. The access easement provides 60 foot of access to parcels at the back of the property. Staff received Denton County Planning's comments for the proposed plat. Denton County Planning office is satisfied with the current lot configuration as shown in the plat exhibit attached. Notification Response Form Staff mailed eight (8) public hearing notices to the owners of properties within 200 feet of the subject property. No responses were received at the time of this report. Staff Recommendation Staff recommends APPROVAL of the proposed variance. Actions for City Council The City Council should approve the requested variance from subdivision regulations if it finds it to be in conformance with Section 10 (Other Requirements) of the City of Sanger Code of Ordinances, Chapter 10 — Subdivision Regulation, Exhibit A — Subdivision Ordinance of the City of Sanger Texas. Attachments • Location Map Plat Exhibit Application • Letter of Intent • Denton County Planning's comments • Section 5 — General Plat Requirements • Section 10 — Other Requirements N W E S SANGER *TEXAS Location Exhibit: L.L. & TAddn J::„CityLimits ® Exhibits Dl-C IIAER: T , map was gererated by GIS data pmM d by the Salyer GIS DpaN LThe Ciy of Saryerdo,s nd g—a- the ca .— ar unary of any feat,,, on Ub map. These map pmd— are br I ustrag,n q,poaea oNy and rot auiabl, fs r s ieepecis de ddon n Wg. G9 data Is subl ed to mndart dtanges, aM Trey nd b, complete, axurab a c�,rert. Date: II19W194:3 MPM �c Name: Locati.aW,i_LLTPddn2 �`'✓ _ ,m..,s.dm_,. mow.: °, r�,�aa�®,.�, ,�.. �., �. mb >.®�. ,�r ✓.., a�,✓ m �, � .� , ✓war., .,,.a .., //OOP'°' e �';�a.m,�a:l.�..na...a.mr.�✓..><aanm..mr✓a. �.r �..r✓a»wlm,.,✓�.,.✓.mm.✓.H.W We..rM es,,br rmr✓ �i r'b'w arc+•v �nn..�evw ryencrA an .�. smnup... ..N an rm a r.r ✓ w ra.ue �✓W ws.ai bMmr .���er YOY n,.rr.,un,✓Iee SuY of wmur it � a+iL.�H [u< r b/s.n ✓Halt MF cr���u r'a m �uY [mvr_�sr� �i,W:u✓[m/e.✓rY,.mf c.. w,,4yW M! .�l�er �rtiM M.N n ��E� -ram �,�•[ s[�r•�' _ �,.�.�,.,a... ®a'm, �m,�.,r�,. .�,m�..l.m..e.,,. 1 ? Ib I �.g� � I aeamaw 89 1 i � R IS I p I 4.m. -, r.,, ✓ v..v. r.�..,. —.> ✓ �� � a .v ernks•1 scot I I a.. �..r.-.r .a ✓..... ab—W✓ n,e 1 senvns•c snot I It al 1 zl,ii.,.= I6 I � a.✓,..m =JD,.'o ' tl 5' / LOTS i R & 2R, BLOCK 1, L.L. & T. ADDITION i BEING A REPLAT OF LOT 1, BLOCK 1, L.L. & T. ADDITION CABINET E, PAGE 174 PLAT RECORDS OF DENTON COUNTY REUBEN BEBEE SURVEY A - 29 BEING 7.026 ACRES IN DENTON COUNTY, TEXAS ® .urammsocarm: mmn, wr tou rss°w'z a4� ��as"'�w BANGER *TE%AS VARIANCE APPLICATION Applicant Name: 0 A t-- 2 qL ,L ►Z 1 G C A M )e Company: 1-30AT S TO iZ Atv' f= Address: / �_i rt4 14-3,S- Wf5zIT_ City, State, Zip _L R A S 6G6& Phone: Fax: .— Email: — oe Site Plan Letter of Intent $200.00 Application Fee (Check Payable to City of Sanger) Describe the subject property (address, location, size, etc.): fat►A1tz15L: OilA'7" S7-c.>'cllct; y IFA r OF U!vloN 141A.,L 1'vau, 0" I',M- �yl�-y bv. Describe the proposed variance (how much, where on the property, for what purpose): A 9 0 " V49I AN(- 6 L0C.hTCh D1.-'T1-1IS. j'A$'rt:'AA1 45pG•l=0r Pgo(I pTy 1e12om /!w y q-j,'f,W 6/01S EH 'ro 451'10 b F (VIZOPORTY, 1WHICH W0411-19 eROUlOI L/_GAi_ f,%et l s.S 'ro PrU k1L-A'T`/ I/✓'7'1af_ r,.aAK 1 �K'i toN, (,U(-E PAV6/A _ II&_ 1-1 n1Gta'r Or'---4 G,o i 13 A 0_A1,L e.LN .lam ` w-6-A5KUA-12) AWr_Ire) yC,41z.5 6 t) A V 0 Pi. At✓Nl1VG --ro )fzPr- S'ot3eU /3Y57'01_L-1N6 ttatJ DJ_'_ �'_13r_z-1=S- L�' �.►.e�li - �1?�-5I.AJ._t11�-l->;e�vT..�.✓!f!C1�, �NCy✓i�l�s- Gu 2 /e15 l�Et✓ Wx�lrl.i�ccsG�'- --- ��— re✓�� Date r f % 461 P� Office Use Fee Date city of Songer 201 Bolivar/P.O Sox 1729 Sanger, TX 76266 940-458-2059 (office) 9110-458-4072 (fox) wivw.songertexas.org Effective date: 9/4/2018 i V r _ lr.4Sg� MrxJT- j�0It W G O AV/L / O w 30 % wk A 5 K ti-V0Liab C'9QLJI r- L-156A - A>Ifr---_`��`----- T/-tA T Wr- owA%• --- ,q roc �Ro ER'r y oL4 .5 �s 9 A 5 [QEte /+ A [ZAP )U o fZ R A t N t� -- Denton County ..•o��?. Department of Public Works Foy Planning Division 1505 East McKinney Street, Suite 175 — Denton, Texas 76209 940.349.2990 phone — 940.349.2991 fax •:;,zsae ;�•'' www.dentoncounty.com To: Muzaib Riaz — Planner (City of Sanger) From: Gary W. Cook, CFM Re: L.L.& T. Addition — Replat Date: December 12, 2018 The Denton County Planning Division has the reviewed plat prepared by City of Sanger, for the L.L. & T. Addition — Replat. The following comments should be addressed and the plat resubmitted for review: ➢ Add 2" x 3" recording block in the lower right corner of the page. ➢ Add Reason for the Replat. ➢ Add x, y coordinates and NAD83 at POB. ➢ List utility companies names, addresses and phone number with signatures. ➢ Add Block designation. Use a letter instead of number and place on map. ➢ Must dedicate ROW per TxDOT. This may drop Lot 1C size to under minimum 1-acre requirement per the Denton County Subdivision Rules and Regulations. ➢ Each lot must have 1 00'width at the road, angled back to 30' minimum at the property line between Lot 1 R and Lot 2R. ➢ Add: "Certification and Dedication by owner — all right of ways, parks, easements (showing all existing and proposed including the filing information for each), streets or any publicly owned areas shall be dedicated to the County by the plat." ➢ Add Certification by Registered Professional Land Surveyor (Lot markers and boundary markers). ➢ Add Certification and approval by city or list whose ETJ subdivision is in. ➢ Correct the Lake Ray Roberts Planning and Zoning statement: o "This property is located within the Lake Ray Roberts Land Use Ordinance Jurisdiction and is therefore subject to the ordinance. This property is zoned R/C . o All setback lines must be shown on the plat and check minimum lot width for designated zone. (Front 30'; Side 25'; Minimum lot size is one acre per the Lake Ray Roberts Land Use Ordinance.) ➢ Add city ETJ Jurisdiction Affidavit: City of Sanger ➢ Add the following statements: o "Sanitary sewer to be handled by facilities approved by the Denton County Health Department." o "The maintenance of paving, grading and drainage improvements and/or easements shown on this plat are the responsibility of the individual property owners and does not constitute acceptance of same for maintenance purposes by Denton County." o "All surface drainage easements shall be kept clear of fences, buildings, foundations, plantings and other obstructions to the operation and maintenance of the drainage facility." o "Blocking the flow of water or constructing improvements in surface drainage easements, and filling or obstructing the floodway is prohibited." o "Denton County will not be responsible for any damage, personal injury or loss of life or property occasioned by flooding or flooding conditions. o "The existing creeks or drainage channels traversing along or across the addition will remain as open channels and will be maintained by the individual property owners of the lot or lots that are traversed by or adjacent to the drainage courses along or across the lots." o "Construction not completed within two years of the Commissioners' Court approval shall be subject to current County Subdivision Rules and Regulations." o "A driveway culvert permit must be obtained from the Road and Bridge Departments by the owner of each lot prior to the construction, installation or placement of any driveway access improvements within the dedicated right-of-way." o "No construction, without written approval from Denton County shall be allowed within an identified "FIRM" floodplain area, and then only after a detailed floodplain development permit including engineering plans and studies show that no rise in the Base Flood Elevation (BFE) will result, that no flooding will result, that no obstruction to the natural flow of water will result; and subject to all owners of the property affected by such construction becoming a party to the request. Where construction is permitted, all finish floor elevations shall be a minimum of two foot above the 100-year flood elevation." Contact me if you have any questions. Regards, Gary W. Cook, CFM Development Coordinator Denton County Public Works SECTION 5: GENERAL PLAT REQUIREMENTS All requirements pertaining to lot size, yard size, dwelling size, lot coverage, height, parking, loading and screening contained in the current zoning ordinance of the city shall be adhered to for development under this ordinance. (Ordinance 10-33-08 adopted 10/6/08) 5.01 - Streets A. The arrangement, character, extent, width, grade and location of all proposed streets shall conform to the general plan of the community, and their relationship shall be considered to that of the existing and planned streets, to topographical conditions, to public convenience and safety, and in their appropriate relation to the proposed uses of the land to be served by such streets. B. The reservation in private ownership of strips of land, at the end of offered or existing streets intended solely or primarily for the purpose of controlling access to property not included in the subdivision shall be prohibited. C. Where such is not shown in the general plan for the community, the arrangement of streets in a subdivision shall: (1) Provide for the continuation or appropriate projection of existing principal streets in surrounding areas; (2) Conform to a plan for the neighborhood approved or adopted by the city to meet a particular situation where topographical or other conditions make continuation of or conformance to an existing street impracticable; and (3) Be planned so that they shall intersect, as nearly as possible, at right angles. D. Residential streets shall be aligned so that their use by through traffic is discouraged. E. In phased developments, streets which are continuous through more than a single phase shall be provided with temporary turnarounds (at the point of temporary termination) until the street is fully constructed per the original approved plan. F. Developers shall be required to coordinate all planning and engineering work with all adjacent property owners/developers. G. Street jogs with centerline offsets of less than one hundred twenty-five feet (125') shall be avoided. (Ordinance 01-04-08 adopted 1/24/08) H. The street minimum right-of-way widths and centerline radius shall be in accordance with the city's thoroughfare plan and shall conform to the following: Code Type of Street Minimum Right- Minimum Intersection of -Way Width Centerline Radii FW Freeway 200 feet Varies varies NU Principal Arterial Four Lane 100 feet 150' 1,000 feet Undivided P3U Principal Arterial Three Lane 75 feet 85' 1,000 feet Undivided M4U Minor Arterial Four Lane 80 feet 90, 1,000 feet Undivided C2U Collector Two Lane Undivided 60 feet 75' 500 feet R2U Residential/Local Two Lane 50 feet 70' 250 feet Undivided REU Residential/Estate Two Lane 60 feet 75' 250 feet Undivided I. Streets shall be classified according to the following: 1. Arterial (Principal, Minor): The main function of arterial is to carry traffic from one urban area to another. The thoroughfare system serves the major activity centers of urbanized areas. An arterial is used for longer urban trips and carries a high portion of the total traffic with a minimum of mileage. 2. Collector: Carries traffic from local streets to Arterial. Also may serve local facilities such as schools, churches [sic]. Uses served would include medium and high density residential, limited commercial facilities, elementary schools, some small offices and as direct access within industrial parks. Collector streets also carry heavy traffic to major commercial and industrial facilities from thoroughfare. Uses would include office parks, industrial parks, and community level commercial facilities. 3. Residential/Local: Carries traffic from residential and commercial areas to collector streets and interconnects individual sites. Local streets carry light traffic volumes and trips are of a short duration. 4. Residential/Estate: Carries traffic from rural residential areas to collector streets and interconnects individual sites. Local streets carry light traffic volumes and trips are of a short duration. This type of street section can only be utilized in residential subdivisions of lots at least 1-1/2 acres in size. (Ordinance 10-33-08 adopted 10/6/08) J. Street widths proposed for industrial subdivisions or commercial developments shall be not less than that required for a Collector. K. Half streets shall be prohibited, except where there is no alternative for reasonable development of the subdivision in conformance with the other requirements of these regulations and where the city finds it will be practicable to require the dedication of the other half when the adjoining property is subdivided. Wherever a half street has already been provided adjacent to an area to be subdivided, the other remaining portion of the street shall be platted within such subdivision. Where part of a residential or collector street is being dedicated along a common property line, the first dedication shall be one-half (1/2) of the proposed street right-of-way plus five feet (6) unless a construction easement on the adjoining parcel has been obtained, and the developer shall construct the half street or place in escrow cash for the estimated half -paving cost as determined by the city council. L. Cul-de-sacs in residential additions shall not be longer than six hundred feet (600') from the nearest intersection, except under unusual conditions with the approval of the city council, and there shall be provided at the closed -end a turnaround having a minimum outside roadway diameter of eighty- one feet (81'). In industrial areas, cul-de-sacs shall not exceed one thousand feet (1,000') from the nearest intersecting street, and there shall be provided at the closed -end a turnaround having a minimum outside roadway diameter of one hundred feet (100') and a minimum street property line diameter of one hundred feet (100'). Alternate turnaround designs in residential tract developments which provide adequate turnaround area may be considered or approved by the city. M. All streets shall be paved, and paving shall conform to the requirements of Section 6, Improvements, of these regulations. N. Street grades shall be established regarding topography, proposed land -use and the facilities in the area surrounding the land to be subdivided. Minimum grades shall be five -tenths percent (0.50%) on concrete streets and five -tenths percent (0.50%) on all other types of street paving. Cross (transverse) slopes between pavement and the right-of-way shall not be less than 100:1 or steeper than 3:1. Where necessary, additional right-of-way or slope easement shall be provided to meet this requirement. O. Street name markers shall be installed in accordance with the prescribed type currently in use by the city or an approved equal, as approved by the city manager. Street markers and erections will be at the expense of the subdivider. P. The materials for all traffic -control and regulatory signs shall be furnished by the subdivider and installed by the city for all intersections within or abutting the subdivision. Such signs shall be in strict compliance with the regulations of the Federal Highway Administration and according to the requirements of the Manual on Uniform Traffic Control Devices, latest edition. No signs will be placed in undeveloped portions of the subdivision. Q. The subdivider shall comply with the guidelines and criteria for driveways, including the design requirements, grades, spacing, and access standards as provided by the city's thoroughfare plan. R. If a proposed development is projected to generate a lesser traffic volume than would normally require roadways as specified in the master thoroughfare plan, the developer may install a "minimum acceptable alternative" approved by the City. The full right-of-way and pavement thickness is unchanged. Only the outside two (2) lanes would be paved in this situation. The city must approve the use of this option. 5.02 - Alleys A. Alleys are not required, except where the City has determined that one is necessary for adequate service access, such as off-street loading, unloading and parking consistent with and adequate for the uses proposed. B. All Alleys shall be paved with reinforced concrete, and the paving shall conform to Section 6, Improvements, of these regulations. C. All Alleys must be privately maintained by the Home Owner's Association or other entity. D. The minimum width of any alley shall be twenty feet (20') in industrial and commercial areas and fifteen feet (15') in residential areas. E. Alley intersections, sudden changes in alignment, and dead-end alleys shall be avoided. F. Residential driveway and alley pavement cuts must be approved by the City Engineer onto loop and major thoroughfares. Alleys on frontage roads shall be provided along side and rear lot lines which front on loop and major thoroughfares for rear entrance. 5.03 - Gated Community/Private Streets A. Private streets in Gated Communities shall conform to the same standards regulating the design and construction of public streets. A Gated Community will only be permitted in a Planned Development (PD) Zoning District. B. Any gate installation must conform to the following provisions: a. All gate installations must be approved by the City prior to installation. The installation must be completed and tested prior to the City's acceptance of the subdivision. b. Gate design may incorporate one or two gate sections to meet the required minimum gate width of twenty-four feet (24'). If the entrance will incorporate a median, guard shack or similar structure that necessitates a divided gate arrangement, the gate widths may be reduced if approved by the City, but in no case shall any single gate or street pavement have a clear opening of less than twenty (20) feet. c. Approach and departure areas on both sides of a gated entrance must provide adequate setbacks and proper alignment to allow free and unimpeded passage of emergency vehicles through the entrance area. All entry gates must be setback a minimum of 100 ft from any adjacent public street right-of-way to allow for vehicle stacking out of the public travel lanes. Any exception must be approved by the City. d. Automatic gate installations must conform to the design and performance guidelines established by the Fire Chief and Directors of Transportation and Public Works. e. All components of the gate system must be maintained in an approved operating condition, with all components serviced and maintained on a regular basis as needed to insure proper gate operation. A proper power supply shall be maintained to all electrical and electronic components at all times. f. Each security gate regulated under this section will be subject to a performance test as determined by either the Fire Chief or Public Works or a designated City Official. Upon failure of a performance test, the security gate system shall be disabled and maintained in the open position until repaired, and shall not be placed back in service until tested and authorized by the City. g. All streets, gates and other fire protection features, signage, and equipment are subject to periodic inspection by the City and must be repaired immediately if found to be in condition of disrepair. The City shall have the right to enter the subdivision and disable, open, or remove any gate, device, or other feature that impedes or controls vehicle access at the sole expense of the Homeowner's Association. Emergency repairs shall be assessed against the Homeowner's Association. h. The person or corporation in control of the property is responsible for, and liable for any violations of this section. This includes, but is not limited to, the developer, property owner, the Homeowner's Association and its officers, if applicable, or other who may own or exercise control over the property. C. Property Associations Required - Subdivisions developed with private streets or alleys must have a mandatory property owners association which includes all property served by private streets or alleys. The association shall own and be responsible for the maintenance of private streets, parks and other Homeowner Association appurtenances. The association documents shall be reviewed by the City Attorney and subject to approval by the City to ensure that they conform to this and other applicable City ordinances and concerns. The documents shall be filed of record prior to the approval of the final plat. Lot deeds may not be dissolved without the prior written consent of the City. No portion of the association documents pertaining to the maintenance of the private streets and alleys and assessments therefore [therefor] may be amended without the written consent of the City. D. Private Street Lot - Private streets and alleys must be constructed within a separate lot owned by the property owners association. This lot must conform to the City's standards for Public Street and alley right-of-way. An easement covering the street lot shall be granted to the City providing unrestricted use of the property for utilities and storm drainage systems and the maintenance of same. This right shall extend to all utility providers including telecable companies, operating within the City. The easement shall also provide the City or it's contractors with the right of access for any purpose related to the exercise of a governmental service or function, including but not limited to fire and police protection, inspection and code enforcement, trash collection or utility maintenance. The easement shall permit the City to remove any vehicle or obstacle within the street lot that impairs emergency access. E. Construction and Maintenance Cost - The City shall not pay for any portion of the cost of construction or maintaining a private street. The Homeowners Association shall maintain an escrow account as approved by the City for all road maintenance. [F. Reserved] G. City Utilities - Water, sewer and drainage facilities placed within the private street and alley lot shall be installed to City standards and dedicated to the City as part of the approval of the final plat. All City regulations relating to infrastructure, financing, developer cost participation and capital cost recovery shall apply to developments with private streets with the exception of those applying to internal street construction. a. Street lights and signs shall be installed and maintained by the homeowners association subject to approval by the City. b. The property association documents shall give the City the right, after giving written notice to perform maintenance upon streets and alleys to protect health, safety and welfare of the residents and to place a lien upon the lots within the association to recover the cost of such maintenance. H. Plans and Inspections - Developments proposed with private streets must submit to the City the same plans and engineering information required to construct public streets and utilities. Requirements pertaining to inspection and approval of improvements prior to issuance of building permits shall apply. Inspection Fees charged for these services shall also apply. The City may periodically inspect private streets and require repairs necessary to ensure emergency access. I. Waiver of Services - The subdivision final plat, property deeds and property owners association documents shall note that certain City services shall not be provided on private streets. Among the services which will not be provided are: routine police patrols, street lighting, enforcement of traffic and parking ordinances and preparation of accident reports. All private traffic regulatory signs shall conform to the Texas Manual of Uniform Traffic Control Devices. Depending on the characteristics of the proposed development other services may not be provided. Petition to Convert to Public Streets - The property association documents shall allow the association to request [that] the City accept private streets and alleys and the associated property as public streets and right-of-way upon written notice to all association members and the favorable vote of 75% of the membership. However, in no event shall the City be obligated to accept said streets and alleys as public. Should the City elect to accept the streets and alleys as public, the City may inspect the private streets and assess the lot owners for the expense of needed repairs concurrent with the City's acceptance of the street and alleys. The City will be the sole judge of whether repairs are needed. The City may also require, at the association's expense, the removal of guard houses, access control devices, landscaping or other aesthetic amenities located within the street lot. The association document shall provide for the City's right to such assessment. Those portions of the association documents pertaining to the subject matter contained in this paragraph shall not be amended without the written consent of the City. K. Hold Harmless - On the subdivision final plat shall be language whereby the property owners association, as owner of the private streets and appurtenances, agrees to release, indemnify, defend and hold harmless the City, any governmental entity and public utility for damages to the private street occasioned by the reasonable use of the private street by the City, governmental entity or public utility, for damages and injury (including death) arising from the condition of said private street; for damages and injury (including death) arising out of the use by the City, governmental entity or public utility of any restricted access gate or entrance; and for damages and injury (including death) arising out of any use of the subdivision by the City, governmental entity or public entity. Further, such language shall provide that all the owners of all lots shall release the City, governmental entities and public utilities for such damages and injuries. The indemnifications contained in this paragraph apply regardless of whether or not such damages and injury (including death) are caused by the negligent act or omission of the City, governmental entity or public utility, or their representative officers, employees or agents. L. Sidewalks and Bikeways a. Sidewalks - Sidewalks shall be constructed in accordance with City standards for all lots adjoining dedicated streets, along major thoroughfares where lots do not adjoin the street or in other areas as required by the City. Sidewalk construction may be delayed until development of lots, but in locations not adjacent to lots and across bridges and culverts, the sidewalk shall be constructed with the other improvements to the subdivision or addition. Exceptions to this section must be approved by the City. b. Pedestrian Accesses - The City may require, in order to facilitate Pedestrian access from the streets to schools, parks, playgrounds, or other nearby streets, perpetual unobstructed easements at least fifteen (15) feet in width. Easements will be indicated on the plat. c. Bikeways - Hike and bike sidewalks, designed and located according to City standards, shall be constructed along streets designated for hike and bike trails. Such sidewalks shall be built by the owner at the time of site development. M. Drainage and Storm Sewers a. General Requirements - All plats shall conform to the City's standards for drainage facilities. b. Design of Facilities - Design of storm sewer systems shall be in accordance with City standards. Materials and construction shall conform to the Standard Specifications. N. Secondary Access All gated subdivisions shall provide a secondary access point accessible by means approved by the City and the Fire Marshal for emergency services unless specifically exempted by the City. O. Federal requirements The Post Office requires 7-day access for mail delivery. If a security gate or fencing is used, a key keeper box with retractable key reel that will accommodate a post office arrow lock and/or the device (mechanical/electronic) needed to gain access into complex, must be installed next to the door or gate that the carrier uses to enter the complex. (Systems that use a key board to punch in codes, in most cases, will accept a post office arrow lock in the control panel). Note: Carriers must not carry keys, written codes, electronic openers or badges for entrance into buildings or complex. 5.04 - Lots A. Lot size: The size or area of the lot shall be measured in square feet, and shall conform to the zoning requirements for the area. B. Corner lots: Corner lots with a width of less than seventy-five feet (75') are to be at least five feet (5') wider than the average of interior lots in the block. Corner lots with a width of less than eighty-five feet (85') adjacent to a thoroughfare are to be at least fifteen feet (15') wider than the average of interior lots in the block. C. Lot shave: Lots should be rectangular where practicable. Sharp angles between lot lines should be avoided. The ratio of depth to width should not ordinarily exceed two and one-half to one (2-1/2:1). D. Lot facing: (1) Each lot shall be provided with adequate access to an existing or proposed street by frontage on such street. Residential lots shall front on residential class streets; (2) Double frontage lots are prohibited except where the lot has rear frontage on thoroughfares; and (3) Wherever feasible, each lot should face the front of a similar lot across the street. In general, an arrangement placing facing lots at right angles to each other should be avoided. E. Lot lines: Radial to street frontage, and the following note may be used on the plat in lieu of bearings: "All side lot lines are perpendicular or radial to street frontage unless otherwise noted." F. Lot numbering: All lots are to be numbered consecutively within each block. Lot numbering may be cumulative throughout the subdivision if the numbering continues from block to block in a uniform manner that has been approved on an overall preliminary plat. G. Lot grading: Finished grade for the building site will be not less than six inches (6") above the top of the curb grade or alley pavement or two feet (2') above the adjacent base flood elevation as defined by the Federal Emergency Management Agency, whichever is greater. In any case, the property line grades adjacent to the street should not be below the top of curb grade. H. Exceptions: Plats involving cluster developments or zero -lot lines shall be reviewed by the city on a case -by -case basis. 5.05 - Easements A. Use: Where necessary to provide access for the purposes of maintenance, construction or other service, easements shall be provided for poles, wires, conduits, storm sewers, sanitary sewers, water lines, open drainage, floodplains, gas lines or other utilities. Such easements may be required across parts of lots, including rear and side lot lines, where alleys are not provided. B. Size: Where possible, easements shall be provided fully located upon one (1) lot and shall be not less than fifteen feet (15') in width. Where such is not feasible, easements shall be not less than seven and one-half feet (7-1/2') on each side of the lot line. Where overhead utility service on poles is allowed, an additional easement of five feet (5') on each side shall be provided. The full width of easements shall not be less than twenty-five feet (25'). Where a subdivision is bounded by a watercourse, drainage way, channel or stream, there shall be provided a stormwater easement or drainage right-of-way conforming substantially to the lines of such watercourse, or of such width to provide for any future anticipated construction, plus a minimum to ten feet (10') on each side. C. Where required by the city, emergency access easements shall have: (1) a clear, unobstructed width of twenty-four feet (24'); (2) an all-weather surface constructed and maintained by the owner; (3) a connection at each end to a dedicated public street or have a turnaround of suitable size at the dead- end; and (4) appropriate turning space at inside corners to permit free movement of fire trucks. An emergency access easement may be used as a driveway to gain access to parking or loading spaces, but shall not be used for parking. The limits of the easement shall be marked by the city, and the marking shall be maintained by the city. 5.06 - Blocks A. The lengths, widths and shapes of blocks shall be determined with regard to the following items: (1) Provision of adequate building sites suitable to the special needs of the type of use proposed; (2) Zoning requirements as to lot sizes and dimensions; (3) Needs for convenient access, circulation, control and safety of traffic; and (4) Limitations of topography. B. Where no existing subdivision controls, the blocks shall not exceed one thousand feet (1,000') in length nor be less than five hundred feet (500') in length, except in certain instances where topographical features warrant special consideration. These limits shall be exceeded only upon specific approval by the city. Blocks longer than six hundred feet (600') shall be avoided in business districts. C. Blocks are to be numbered or lettered consecutively within the overall plat and/or section of an overall plat, as recorded. 5.07 - HUD -Code Manufactured Home Park A. Location (1) Mobile homes/Mobile home parks are prohibited within the City limits of the City of Sanger. (2) HUD -Code Manufactured Homes may only be located in the appropriate zoning districts as permitted in Chapter 14 of this code. B. Platting HUD -Code Manufactured Home Parks are governed by the same requirements for all other subdivisions. Both preliminary and final plats will be required and both will be subject to the specifications of Sections 4.03 and 4.04 of this document [ordinance], respectively. C. Streets Each HUD -Code Manufactured Home Park must abut a public street and provide access there from. Each lot/unit may only be accessed from a private interior street. Minimum pavement widths of interior streets shall be twenty feet (20') to allow for emergency vehicle and trash removal access, and shall have a nine foot (9') parking lane on one side of the street, and a marked fire lane. All streets must be maintained by the park owner. D. Screening Each HUD -Code Manufactured Home park must include a landscaping/screening plan to buffer the park from adjoining land uses. (This plan must receive approval from the city engineer.) A landscaped strip of not less than ten feet (10') in width shall be established and maintained within the park's property along the exterior boundaries. Fencing and other materials must also be used as approved by the city engineer. E. Utilities A Master water meter and backflow prevention device shall be installed at the connection to the public water main,[.] The water and sewer lines in each HUD -Code Manufactured Home Park must remain private and will be maintained by the park owner. The park owner is responsible for the entire water and sewer usage fees and individual lots will not be billed by the City. F. Prohibited Use No HUD -Code Manufactured Home for the purpose of residential living shall be located outside an approved HUD -Code Manufactured Home park. HUD -Code Manufactured Homes in approved parks must be used for no other purpose than residential, and will be allowed only as a temporary residence during home construction, as a construction/security office, or as a temporary business site if the permanent building is being rebuilt/rehabilitated. These temporary uses must not exceed one (1) year. Extensions may be granted by the city upon proof of extreme hardship. These regulations shall not apply to manufactured housing. G. Additional Requirements All other sections of this document shall apply as appropriate to HUD -Code Manufactured Home parks. The city council may also impose additional conditions, requirements or limitations concerning the design, development and/or operation of said park as it deems necessary for the protection and general welfare of adjacent properties and the public interest. H. Filing Fees Refer to Section 7, Filing Fees and Charges, of this document [ordinance]. 5.08 - Survey Monuments and Lot Markers A. Permanent Survey Reference Monuments A concrete monument, six inches (6") in diameter and twenty-four inches (24") long, shall be placed on all boundary corners, block corners, curve points and angle points. A copper pin one-fourth inch (1/4") in diameter embedded at least three inches (Y) in the monument shall be placed at the exact intersection point on the monument. The monuments shall be set at such an elevation that will not be disturbed during construction, and the top of the monument shall be not less than twelve inches (12") below the finished grade of the development. B. Lot Markers. Lot markers shall be one-half inch (1/2") reinforcing bar, eighteen inches (18") long, or approved equal, and shall be placed at all lot corners flush with the ground, or below ground, if necessary, in order to avoid being disturbed. C. Schedule for Placement At the developer's option, permanent monuments and lot markers may be placed before or following construction of on -site improvements. If installed prior to construction, the final plat of the subdivision will be filed for record as set forth in Section 4 of these regulations. If installed following construction of improvements, the plat will be held for filing until, and the certificates of occupancy will be issued when the monuments and markers are set (see Section 6.13 Surveyor's Certificate). SECTION 10: OTHER REQUIREMENTS 10.01 - Exceptions These rules and regulations are the standard requirements of the city. A variance or waiver of any of these rules and regulations may be granted by the City Council, upon a showing that there are special circumstances or conditions affecting the property in question and that enforcement of the provisions of this ordinance will deprive the applicant of a substantial property right, and that such variance or waiver, if granted, will not be materially detrimental to the public welfare or injurious to other property rights in the vicinity. 10.02 - Penalty Any person, firm or corporation who shall violate any of the provisions of this ordinance or who shall fail to comply with any provision hereof in the City of Sanger shall be guilty of a Class C misdemeanor and be subject to a fine of not more than two hundred dollars ($200.00). Each day that such violation continues shall constitute a separate offense and shall be punishable, accordingly. 10.03 - City Required to Advertise for Bids If any subdivision improvements are eligible for refunds or potential refunds to the subdivider for off -site paving or oversize, border or approach water or sewer mains, the City is required by law to take competitive bids for the work involved. Competitive bids will be taken by the city, and the contract award will be made by the City Council in accordance with procedures established by state laws and the ordinances of the City. (Ordinance 04-12-08, sec. 2, adopted 5/5/08) BANGER *TEXAS COUNCIL AGENDA ITEM AGENDA TYPE ® Regular ❑ Special ❑ Consent Reviewed by Finance ❑ Yes ® Not Applicable ❑ Workshop ❑ Executive ® Public Hearing Reviewed by Legal Ej Yes Not Applicable Council Meeting Date: Submitted By: February 4, 2019 Muzaib Riaz, Planner, Development Services City Manager Reviewed/Approval Initials Ae, Date ACTION REQUESTED: ❑ ORDINANCE ❑ RESOLUTION # ❑ APPROVAL ❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS ®OTHER Public Hearing AGENDA CAPTION Conduct a Public Hearing Regarding a Replat of Lot 1R and Lot 2R, Being a Replat of Lot 1, Block A of Ashley Waters Addition and Adding Tract 5A and Tract 6 in McKinney & Williams Survey Abstract No. 940, and Tract 4A of M.R. Burleson Survey Abstract No. 71, Being Approximately 18.44 Acres, and Generally Located Approximately 450 Feet South of the Intersection of Cowling Road and South 5th Street East of Cowling Road. FINANCIAL SUMMARY ®N/A ❑GRANT FUNDS [:]OPERATING EXPENSE ❑REVENUE ❑CIP ❑BUDGETED ❑NON -BUDGETED BACKGROUND/SUMMARY OF ITEM The applicant is proposing to replat 7.12 acres of Lot 1, Block A of Ashley Waters Addition to add approximately 11.32 acres of additional tracts into the original plat and create a total of two lots of 18.44 acres. The purpose of the replat is to create 2 industrial lots for expansion of light industrial assembly of manufacturing components business. STAFF OPTIONS & RECOMMENDATION See Staff Report. List of Supporting Documents/Exhibits Attached: Prior Action/Review by Council, Boards, Commissions or Other Agencies: The Planning & Zoning Commission APPROVED (5-0) the replat on January 14, 2019. BANGER *TEXAS COUNCIL AGENDA ITEM AGENDA TYPE M Regular ❑ Special ❑ Consent Reviewed by Finance ❑ Yes ® Not Applicable ❑ Workshop ❑ Executive ❑ Public Hearing Reviewed by Legal Ll Yes M Not Applicable Council Meeting Date: Submitted By: February 4, 2019 Muzaib Riaz, Planner, Development Services City Manager Reviewed/Approval Initials Date 113flig ACTION REQUESTED: ❑ ORDINANCE ❑ RESOLUTION # ® APPROVAL ❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS ❑OTHER AGENDA CAPTION Consider, Discuss and Act on a Replat of Lot I and Lot 2R, Being a Replat of Lot 1, Block A of Ashley Waters Addition and Adding Tract 5A and Tract 6 in McKinney & Williams Survey Abstract No. 940, and Tract 4A of M.R. Burleson Survey Abstract No. 71, Being Approximately 18.44 Acres, and Generally Located Approximately 450 Feet South of the Intersection of Cowling Road and South 5th Street East of Cowling Road. FINANCIAL SUMMARY MN/A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑REVENUE ❑CIP ❑BUDGETED ❑NON -BUDGETED BACKGROUND/SUMMARY OF ITEM The applicant is proposing to replat 7.12 acres of Lot 1, Block A of Ashley Waters Addition to add approximately 11.32 acres of additional tracts into the original plat and create a total of two lots of 18.44 acres. The purpose of the replat is to create 2 industrial lots for expansion of light industrial assembly of manufacturing components business. STAFF OPTIONS & RECOMMENDATION See Staff Report List of Supporting Documents/Exhibits Attached: Prior Action/Review by Council, Boards, Commissions or Other Agencies: • Staff Report • Location Map The Planning & Zoning Commission APPROVED • Application (5-0) the replat on January 14, 2019. • Letter of Intent • Replat SANGER CITY COUNCIL STAFF REPORT �F TEXAS Meeting Date: February 4, 2019 Case #: 18SANZON-0075 Case Coordinator: Muzaib Riaz, Planner, Development Services Request: Conduct a Public Hearing and Consider, Discuss and Act on a Replat of Lot 1R and Lot 2R, Being a Replat of Lot 1, Block A of Ashley Waters Addition and Adding Tract 5A and Tract 6 in McKinney & Williams Survey Abstract No. 940, and Tract 4A of M.R. Burleson Survey Abstract No. 71, Being Approximately 18.44 Acres, and Generally Located Approximately 450 Feet South of the Intersection of Cowling Road and South 5tn Street East of Cowling Road. Applicant: Tim Beaty, Tim Beaty Builders, Inc. Case Overview The applicant is proposing to replat 7.12 acres of Lot 1, Block A of Ashley Waters Addition to add approximately 11.32 acres of additional tracts into the original plat and create a total of two lots of 18.44 acres. The purpose of the replat is to create 2 industrial lots for expansion of light industrial assembly of manufacturing components business. This use listed as "Machine shops and fabrication of metal not more than (10) gauge in thinkness" in the City of Sanger Code of Ordinances. The proposed site is zoned as I-1 (Industrial District) and permits the proposed use. The proposed replat meets City of Sanger Subdivision Regulations and Zoning Regulations. The property is served by all City of Sanger utilities and no public improvements are required. The applicant has submitted Building Plans for the project which are under review at this time. The approval of Building Plans is contingent upon approval of the proposed Replat. Notification Response Form Staff mailed eighty one (81) public hearing notices to the owners of properties within 200 feet of the subject property. No responses were received at the time of this report. Staff Recommendation Staff has found the plat to be in compliance with the City of Sanger Subdivision and Zoning Regulations, and recommends APPROVAL. Planning & Zoning Commission Action The Planning & Zoning Commission APPROVED (5-0) the replat on January 14, 2019. Attachments • Location Map • Application • Letter of Intent • Replat i gig eVAO 0A /I , 1A N Location Exhibit- Ashley Waters ol��IIYEa. Addition This map was g—ted by GIs data P—ded byReSa ger GlSO Da mnL TheC at Sar rdoesnGISu ardee lbec ,Ctess,+- W S BANGER t, CityLimits ® Exhibits a¢u aot any feat es on lhs map.The samap pmduds re for lluaratlon Diaposes.I, antl rots I,a,bjor siecpecl dedson mak'ng. Gs data is su , to mrefard charges,aM may notbecomplete,a¢urateorcunerd. D tc: 1I19W9 441'.P1.1 flame: L—ta UhbIl AV,[, at— `^ ;'� y _ Cl�tl ,1Y5; Y f !i. *TEXAS BANGER SUMMSI®N APPLICATION Preliminary Plat Final Plat/Replat Vacating Plat Minor Plat Amended Plat Conveyance Plat Annlicant Owner (if different from applicant) Name: Name: Tim Beaty Dwayne Waters Company: Tim Beaty Builders, Inc. Company: Marsam Enterprises Address: Address 421 E Hickory St, Suite 200 1002 Cowling Road City, State, Zip: City, State, Zip: Denton, TX 76201 Sanger, TX 76266 Phone 940.387-3275 Phone: 940.458.4190 Fax: 940-382-5461 Fax: 940.458.5690 Email: tbeaty@tbbuilders.com Email: briscoetiredw@hotmail.com Submittal Checklist Pre -Application Conference (Date:_/___J ) Six (6) Copies of Plat (24"x36", folded to 1/4 size) One (1) PDF Copy of Plat Letter of Intent Non -Refundable Application Fee (Check Payable to City of Sanger) Application Form (Signed by Owner) Applicable Plat Checklist (Completed) Supporting Materials (List if provided): R Numb Owner signature Dwayne Waters, Marsam Enter rises Applica Beaty, Tim Beaty Builders, Date December 19, 2018 Date December 19, 2018 Office Use: Reviewed by Director of Development Services Complete (Check It ) Incomplete (Returned to Applicant_/�/ ) r it y of Snnger 201 l rolivur / Ft 0 0ox 1729 Sanger, TX767.66 940-458-2057 (office) 940 458-4072 f w(] wmv.snngertexos.org Effective Date: 8/7/2018 �� J �t n�n ,� TIM BEATY f December 19, 2018 City of Sanger, Texas Development Division 201 Bolivar Sanger, TX 76266 Subdivision: Plat Submittal for Marsam Enterprises Dwayne Waters 1002 Cowling Road Sanger, TX 76266 Preparer: Tim Beaty Tim Beaty Builders, Inc. 421 E Hickory Street, Suite 200 Denton, TX 76201 Phone: 940-387-3275 This plat is to join all current smaller lots into two large lots, forming Lots 1 R and 2R, Block A, Ashley Waters Addition, being 18.44 acres in the M.R. Burleson Survey, Abstract Number 71 and the McKinney & Williams Survey, Abstract Number 940, City of Sanger, Denton County, Texas. These properties will be used in light industrial assembly of manufacturing components. The owner of this property requests consideration of the Planning and Zoning Commission to grant this replat to allow for immediate expansion of facilities to accommodate growth. Respectfully; _ Dwayne Waters, Owner B &aty,Tim e y Builders, In veloper P.O. BOX 68 DEN1'ON,'1'I1XAS 76202 (940) 387-3275 FAX (940) 382-5461 Foss �i01•••.�®� �k � � j2 `K���•,:.. � w.Mdwaw«...r�ws..�. v..a.....eeme.�r...v... _ 8 s".a-...�ama.�.....w...�,.,,tr.a.....s,..a�a....a..,..A.......,w.,.a�..........z„a.am..�<. L_-- ---1..._ ; ,,..,>..,o,...w,.:mer....b....>..,o....,......k.rsme,.d...,.,...m..>...o..... u..�.,a.........,w.,^ vim® v vim® 0�® REPLAT LOTS 1 R & 2R, BLOCK A ASHLEY WATERS ADDITION OEep APEFIATOF LOT I. EIOIXAACHEY WATERS AngilOf L GBEEi A PACE lsa, ani xE W nOs, oorto' 1 CONm, iEYAS. AW EF➢q tE.N AtlVEs w 111E PAAM1ESOH SUhEY, IsSiPACi IAP/DEN ]I A.DTIff SUAFY. ABs1MCi MA6FR 91a lFl @P� Oi iV IGE0. CENf011 CIXHK. TENAS BANGER *TEXAS COUNCIL AGENDA ITEM AGENDA TYPE M Regular ❑ Special ❑ Consent Reviewed by Finance ❑ Yes ® Not Applicable ❑ Workshop ❑ Executive ® Public Hearing Reviewed by Legal Yes X Not Applicable Council Meeting Date: Submitted By: February 4, 2019 Muzaib Riaz, Planner, Development Services City Manager Reviewed/Approval Initials Date 11vf ( I ACTION REQUESTED: ❑ ORDINANCE ❑ RESOLUTION # ❑ APPROVAL ❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS MOTHER Public Hearing AGENDA CAPTION Conduct a Public Hearing Regarding a Specific Use Permit (SUP) for a Smelter, Refinery or Chemical Plant use on the Property Zoned as I-2 (Heavy Industrial District), and Generally Located South -East of the Intersection of East Bolivar Street and North I" Street. FINANCIAL SUMMARY MN/A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑REVENUE ❑CIP ❑BUDGETED ❑NON -BUDGETED BACKGROUND/SUMMARY OF ITEM The subject property is zoned as I-2 (Heavy Industrial) and allows the proposed use of Smelter Refinery or Chemical Plant with an SUP. The project site has been a subject of soil contamination in the past due to fertilizer leaks. The applicant has proposed creating a Municipal Setting Designation recognized by TCEQ through an ordinance which will allow the use of the property to a certain degree without requiring mitigation of soil contamination. STAFF OPTIONS & RECOMMENDATION See Staff Report. List of Supporting Documents/Exhibits Attached: Prior Action/Review by Council, Boards, Commissions or Other Agencies: The Planning & Zoning Commission APPROVED (5-0) the SUP on January 14, 2019 with a condition that SUP will be tied to property being owned by Mr. Walter Dobson and will be re -considered if ownership changes. BANGER *TEXAS COUNCIL AGENDA ITEM AGENDA TYPE ® Regular ❑ Special ❑ Consent Reviewed by Finance ❑ Yes ® Not Applicable ❑ Workshop ❑ Executive ❑ Public Hearing Reviewed by Legal Ll Yes N Not Applicable Council Meeting Date: Submitted By: February 4, 2019 Muzaib Riaz, Planner, Development Services City Manager Reviewed/Approval Initials -�, Date tq ACTION REQUESTED: ® ORDINANCE 02-02-19 ❑ RESOLUTION # ® APPROVAL ❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS ❑OTHER AGENDA CAPTION Consider, Discuss and Act on Ordinance #02-02-19 Regarding a Specific Use Permit (SUP) for a Smelter, Refinery or Chemical Plant use on the Property Zoned as I-2 (Heavy Industrial District), and Generally Located South -East of the Intersection of East Bolivar Street and North I" Street. FINANCIAL SUMMARY ®N/A ❑GRANT FUNDS ❑OPERATING EXPENSE []REVENUE ❑CIP ❑BUDGETED ❑NON -BUDGETED BACKGROUND/SUMMARY OF ITEM The subject property is zoned as I-2 (Heavy Industrial) and allows the proposed use of Smelter Refinery or Chemical Plant with an SUP. The project site has been a subject of soil contamination in the past due to fertilizer leaks. The applicant has proposed creating a Municipal Setting Designation recognized by TCEQ through an ordinance which will allow the use of the property to a certain degree without requiring mitigation of soil contamination. STAFF OPTIONS & RECOMMENDATION See Staff Report List of Supporting Documents/Exhibits Attached: Prior Action/Review by Council, Boards, Commissions or Other Agencies: • Staff Report The Planning & Zoning Commission APPROVED (5-0) • Location Map the SUP on January 14, 2019 with a condition that SUP • Application will be tied to property being owned by Mr. Walter • Letter of Intent Dobson and will be re -considered if ownership changes. • Municipal Setting Designation Brief Exhibit • Draft Ordinance # 02-02-19 • Exhibit A: Site Location Map SANGER CITY COUNCIL STAFF REPORT *TEXAS Meeting Date: February 4, 2019 Case #: 18SANZON-0074 Case Coordinator: Muzaib Riaz, Planner, Development Services Request: Conduct a Public Hearing and Consider, Discuss and Act on Ordinance #02- 02-19 Regarding a Specific Use Permit (SUP) for a Smelter, Refinery or Chemical Plant use on the Property Zoned as I-2 (Heavy Industrial District), and Generally Located South -East of the Intersection of East Bolivar Street and North 1st Street. Applicant: Walter Dobson, American Bio Source Case Overview The subject property is zoned as I-2 (Heavy Industrial) and allows the proposed use of Smelter Refinery or Chemical Plant with an SUP. The project site has been a subject of soil contamination in the past due to fertilizer leaks. The applicant has proposed creating a Municipal Setting Designation recognized by TCEQ through an ordinance which will allow the use of the property to a certain degree without requiring mitigation of soil contamination. Surrounding Land Uses Direction Land Use Zoning North Industrial I-2 Heavy Industrial District East Industrial I-2 Heavy Industrial South Industrial I-2 Heavy Industrial West Industrial and Residential I-1 Industrial District and I-2 Heavy Industrial District Issues for Consideration In recommending that a specific use permit for the premises under consideration be granted, the City Council shall determine that such uses are harmonious and adaptable to building structures and uses of adjacent property and other property in the vicinity of the premises under consideration, and shall make recommendations as to requirements for the paving of streets, alleys and sidewalks, means of access to public streets, provisions for drainage, adequate off-street parking, protective screening and open space, heights of structures and compatibility of buildings. Notification Response Form Staff mailed nine (9) public hearing notices to the owners of properties within 200 feet of the subject property. No responses were received at the time of this report. Planning & Zoning Commission Recommendation The Planning & Zoning Commission APPROVED (5-0) the SUP on January 14, 2019 with a condition that SUP will be tied to property being owned by American Bio Source and/or Denton Biofuels, and will be re -considered if ownership changes. Attachments • Location Map • Application • Letter of Intent • Municipal Setting Designation Brief Exhibit • Draft Ordinance # 02-02-19 • Exhibit A: Site Location Map 158983 .-- - - ---- --- -- - ,� --- 158984 158985 i 1 158986 j 158987 l 158988 158989 CH RR r ` cn - cn 58600 205729 58604 58602 l/ 58605 4 8609 i1 �j ,LOCUST-ST , 59756 269456 f��^/� Cn f f 0 25 50 100 Feet - 269457'. N Location Exhibit: American DISCI IMER m —p-9eaaatedn/pisdatap—dn BANGER Bio source 'UOe Seger GlSNparOnent Th e cly of ...........IPer SargerdoesnotguaraNee the cone Mzss or . W E amumcy otany/ealwes on lh's map. The�map ` pmdutls are br Ilustralian piaposes oNy and a *TE%AS misutabb brstespecific dedson maMmg. r:-1 � G!5 dala is subfeC tom�ard Nargez,aM w _ _ � ,a�lltrey nol becomplete,a«unte orcvrer6. YJ; S CityUrnits ® Exhibits Nate ilf9R0194: 841 PMI ��11� Doc Name:«atienE.rnbn_nR<r�aneosoum vi < SANGER *TEXAS ZONING CHANGE/SUP APPLICATION Zoning Change Specific Use Permit Owner (if different from applicant) tApp cant Name: Walter Dobson Name: Donald Paddack Company: American Bio Source Company: Address: 624 W. University Dr. #359 Address: 2435 Fairbreeze Dr. City, State, Zip Denton, TX 76201 Katy, City, State, Zip Ka , TX 77494-5103 Phone: 512-269-0760 Phone: Fax: Fax: Email: Walter@Amerlcan8ioSource.com Email: Submittal Checklist Site Plan (for Specific Use Permits Only) One (1) PDF Copy of Site Plan Letter of Intent Application Fee (Check Payable to City of Sanger) I certify that I am the legal owner of the above referenced property and that to the best of my knowledge this is a true description of the property upon which I have requested the above checked action. I designate the applicant listed as my representative. Describe the subject property (address, location, size, etc.): 100 N. 1st Street Sanger TX 76266 2.19 Acres of land zoned industrial on the rail line. Also known as the Don Paddack Feed and Fertilizer Facility Describe the proposed zoning change or Specific Use Permit (SUP): Our specific use of the property will be to operate our business that recycles used cooking oils into feedstock and produces biodiesel and other innovative solutions supporting renewable & clean energy to benefit our environment This location will house our corporate HQ. ���� /''�� /lam �--_ _-j ,[/flit. !'At4vac- U'7. 1 F Owner Signature Applicant Signature Office Use fee Dale 12/17/2018 Date 12/18/2018 Date American Bio Source LLC & Denton Biofuels LLC. Site Plan @ 100 N. 1" Street Sanger TX We are investigating the option to move our renewable energy business to Sanger Texas at 100 N. 15t. Street the old Donald Paddock Fertilizer and feed facility. The property outline is boxed in yellow below in illustration 1. We believe in participating in the success of our community and have dedicated our business to doing good. Our business recycles used fryer oils and waste and converts it into usable products such as Bio Diesel. We are dedicated to being good stewards of our environment and doing what we can to make a difference. Founded in 2011 American Bio Source now services nearly 1500 restaurants across all of Texas. We founded Denton Biofuels in 2014 and developed a complete process to produce BioDiesel from waste fryer oil. We acquired Dieselgreen Fuels in 2016 adding biodiesel distribution to our offering of services. We currently employ 16 staff from Denton County with an average salary of $48k per year. Once the new facility is built that will jump to 25 staff and continue growing to a max of 40. While our core business is recycling waste into energy we are also a research and development company working with innovators on new technology and sources of clean and renewable energy as well as hardware and software solutions to make the restaurant industry safer and cleaner. The land consists of 2.19 acres and is zoned industrial. The existing building does not appear to be salvageable or reusable. We plan on demolishing the old building. The tanks on site are beneficial to our process and we would retain them. Illustration 1: American Bio Source LLC & Denton Biofuels LLC. Site Plan @ 100 N. 1" Street Sanger TX Our current lease expires in December with a hold over option until January. We will need to setup temporary operations while we develop the property. In an initial phase, we hope to relocate all of our equipment temporarily onto the property for storage and establish a small covered working area on the north side and possibly a temporary construction type office trailer. The illustration below depicts the area we might use as the initial covered work area or building. After the property is fully developed we would reutilize this space for possible future retail sales options. The first thing we will do is relocate all of our assets/equipment onto the property for storage, so we can exit our current lease quickly. This will require us to setup at least a temporary fence around part of the property. Then, we plan on building a —45 x 80 building on a concrete containment foundation and begin operating our basic fryer oil recycling operation temporarily. This will enable us continuity of operation and supervision of development efforts. Our operation initially will entail a few small single axle vacuum trucks that will offload the fryer oil they collect from restaurants such as Babe's here in Sanger into a cleaning system that will remove all the food and water. We will then use our 2 semi -trucks to take that cleaned oil to another biodiesel plant to have it made into biodiesel. All processes will occur in a completely contained area so there will never be a risk of spills or soil contamination. We are registered with the EPA, TCEQ and comply with every applicable regulation. Simultaneously we will begin the TCEQ process to address the existing soil contamination at this location caused by the fertilizer leaks. Initial investigation has outlined a path for this that may depend on the City of Sanger willingness to adopt some minor ordinances to produce what is called an "MSD" Municipal Setting Designation. This process will likely take 6-18 months to complete if the City of Sanger can adopt the ordinance timely. Simultaneously, we will be working out the details for the development of the property and as soon as reasonable we would begin development of our new headquarters and operating facility. Outlined in Illustration 3. We very much would like to be a shining star of pride for the City of Sanger. American Bio Source LLC & Denton Biofuels LLC. Site Plan @ 100 N. 1" Street Sanger TX The new facility would have 2 phases. The first phase is the development of the main plant building depicted in illustration 3 below. This building will take over all loading and offloading with 2 drive through bays. The plant will be one building, two stories in the front, and separated into multiple operating sections. Illustration 3 For example, there will be an office area to the front and a vehicle maintenance area also towards the front. Biodiesel production would be on the rail road side of the building. Fryer oil cleaning and water pre-treatment or processing would be adjacent to the biodiesel operation. We would have asphalt drive ways and parking areas. Preferably we would develop covered parking areas for employees on the south side of the property. Truck parking would be on the rail road side of the property north and south. Illustration 3 also depicts the pathways for trucks to drive on and off the property. As well as a basic traffic flow. Traffic in an out of the facility will consist of employees coming to working, leaving and possible lunch but most will likely walk to the downtown area for lunch. 3 single axle vacuum trucks will depart each morning and return in the evening. Also 1 or 2 full size semi -trucks will depart or arrive the facility once per day. Overall, we do not add a great deal of traffic to the community. Please do not confuse us with grease traps. We only recycle used fryer oil from specialized containers above ground and very different. Any noise on the property will be nothing compared to trains passing by. So, we do not believe noise or traffic will be an issue at all. The illustrations 4 & 5 below are basic renderings done with the help of Rhino buildings online tools just to give an outline of what the building might look like. The rendering is very limited and does not allow for simple things like American Bio Source LLC & Denton Biofuels LLC. Site Plan @ 100 N. 1" Street Sanger TX windows. Once the project is approved and funded we will develop highly detailed plans and renderings that will comply with all building codes and specific use permit requirements. In our main buildings office space, we would like to setup an education center to help educate students and the public on the benefits of renewable energy and give tours of our facility. Illustration 4 Illustration 5 In a later 3 d phase of this project, we invasion a retail operation providing access to renewable fuels currently unavailable to consumers. The ideal situation would enable us to develop a retail renewable fuels center for consumers to pick up products such as Biodiesel, CNG and other TBD renewable energy options as well as related items. We would reuse the building and foundation from the initial temporary building at the north of the property. What is a Municipal Setting Designation ? In 2003, the Texas Legislature passed a Municipal Setting Designation (MSD) statute which created a new alternative for persons addressing the groundwater contamination they were responsible for causing, as well as for persons who "volunteer" to address groundwater contamination. An MSD is an official state designation given to property within a municipality or its extraterritorial jurisdiction which certifies that designated groundwater at the property is not used as potable water. Potable water is defined as water that is used for drinking, showering, bathing, cooking, or for irrigating crops intended for human consumption. Because that groundwater is contaminated in excess of the applicable potable -water protective concentration level, this law prohibits its future use as potable water. Through this locally -controlled program, the prohibition against using the designated groundwater must either be in the form of a city ordinance or as a restrictive covenant that is enforceable by the city and filed in the property records. This law also limits investigation and remediation requirements for contaminated groundwater on MSD properties. By offering this alternative to address the problem of contaminated groundwater that will not be used as potable water, persons may be more inclined to develop and redevelop properties in municipal areas that have contaminated groundwater. Figure I illustrates an example MSD. The figure is a three-dimensional cross-section of j I the ground beneath property in a city. In the cross-section, three different groundwater zones are depicted. The box labeled "MSD Property" depicts the lateral and vertical boundaries of the MSD. Figure 1. Three-dimensional cross-section of an MSD property and the designated groundwater zone In this example, only Groundwater Zone 1 is contaminated. An MSD can only be applied to existing contaminated groundwater zones, not to clean or uncontaminated groundwater zones. Therefore, as indicated by the vertical boundary of the box, only Groundwater Zone 1 is included in the MSD. The portion of Groundwater Zone 1 within the MSD boundary is deemed the "designated groundwater" for the MSD and as such is prohibited from current and future use as potable water. Groundwater Zones 2 and 3 are not contaminated, and therefore they are not eligible for inclusion in the MSD. In this example, only Groundwater Zone 1 within the boundary of the MSD is prohibited as a potable water supply. Landowners adjacent to the MSD may still drill potable water wells on their property, but unless there is a potable -water well within one-half mile of that MSD boundary, the groundwater contamination will not be investigated or remediated for potable -water use. The Texas Commission on Environmental Quality's (TCEQ's) Remediation Division evaluates and determines whether groundwater contamination will spread and intercept a sensitive receptor. The MSD statute requires that TCEQ notify all registered water well owners within five miles of the proposed MSD boundary, and some municipalities have additional notification requirements. This notice provides these water well owners with an opportunity to comment on the proposed MSD designation. In 2011, the Texas Legislature amended the MSD statute. The changes primarily affected entities that are within the City of Houston's city limits such that, if certain conditions are met, these entities would not be required to receive support from the local Retail Public Utility. TCEQ has issued over 180 MSD Certificates, with all but a few being in or near the Dallas -Fort Worth or Houston metropolitan areas. For more information about MSDs, see: • TCEQ Municipal Setting Designations webpage, http://www.tceg.texas.gov/remediation/msd.html • TCEQ publication GI-326, "Municipal Setting Designations — A Guide for Cities", https://www.tceg.texas.gov/assets/public/comm exec/pubs/gi/ ig 326.pdf For additional Frequently Asked Questions (FAQs) related to groundwater quantity, groundwater quality, septic systems, water wells, administrative entities, and publications, visit the Texas Groundwater Protection Committee's FAQ webpage at http://tgpc.texas. og v/frequently-asked-questions-fags/. ORDINANCE # 02-02-19 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANGER, DENTON COUNTY, TEXAS, AMENDING THE COMPREHENSIVE ZONING ORDINANCE AND THE OFFICIAL ZONING MAP ESTABLISHED THROUGH CHAPTER 14 "PLANNING AND ZONING" OF THE CODE OF ORDINANCES, EXHIBIT A "ZONING ORDINANCE OF THE CITY OF SANGER, TEXAS", AND SECTION 4 "ZONING DISTRICT MAP", TO GRANT A SPECIFIC USE PERMIT (SUP) TO ALLOW A SMELTER REFINERY OR CHEMICAL PLANT USE AT APPROXIMATELY 2.19 ACRES OF LAND ZONED AS I-2 "HEAVY INDUSTRIAL DISTRICT"; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING FOR A PENALTY OF FINE IN ACCORDANCE WITH SECTION 1.109 OF THE CODE OF ORDINANCE FOR VIOLATIONS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, all Requests for A Specific Use Permit (SUP) were duly filed with the City of Sanger, Texas, concerning the hereinafter described properties; WHEREAS, due notice of hearings were made in the time and manner prescribed by law and the Planning and Zoning Commission of the City of Sanger, Texas, duly covered and conducted public hearing for the purpose of assessing a request for a Specific Use Permit (SUP) on the hereinafter described properties located in the City of Sanger, Texas; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS: SECTION 1. That a Specific Use Permit (SUP) to allow a Smelter, Refinery, or Chemical Plant use is hereby granted with a condition that the SUP is limited to American Bio Source and/or Denton Biofuels owning the property and that the SUP will be re -considered if the property is not acquired or is sold by American Bio Source and/or Denton Biofuels. It is approximately 2.19-acre site, described in the R. Beebe Survey, Abstract # 29, Tract 189A attached as Exhibit A, generally located south-east of the intersection of East Bolivar Street and North I" Street. SECTION 2. All ordinances or parts of ordinances in conflict herewith are, to the extent of such conflict, hereby repealed. SECTION 3. It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses, phrases and words of this Ordinance are severable and, if any word, phrase, clause, sentence, paragraph, or section of this Ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining portions of this Ordinance, since the same would have been enacted by the City Council without the incorporation in this Ordinance of any such unconstitutional word, phrase, clause, sentence, paragraph, or section. SECTION 4. Any person, firm or corporation who shall violate any of the provisions of this article shall be guilty of a misdemeanor and upon conviction shall be fined in accordance with the general penalty provision found in The Code of Ordinances, Section 1.109 General Penalty for Violations of Code. SECTION 5. This ordinance will take effect immediately from and after its passage and the publication of the caption, as the law and Charter in such cases provide. DULY PASSED, APPROVED AND ADOPTED by the City Council of the City of Sanger, Texas, on this day of , APPROVED: Thomas E. Muir, Mayor ATTEST: Cheryl Price, City Secretary EXHIBIT A N Location Exhibit: American DISD AIId ER Tn « p raa g--t.d by WaGIS dap—ldod by"esaDp—.1Bio source (d—-tgadee h--dw 0 ny t, .-1mp. Th-mr pSANGER pI¢daare hr Il 1l11-pv,—.Ny and *TEXAS rut autabk for atespeclfic dedson maM'mg. GIS data Is lllplc to ¢nstaM Narges, aM may not be complete, a¢urate or ctareM. S CityLimits ® Exhibits Date: VlgQ lg 4:M 41 PM Doc (lame: LocaOonEv hb 9_ARerkan6'v5oiare BANGER * T E X A S COUNCIL AGENDA ITEM AGENDA TYPE N Regular ❑ Special ❑ Consent Reviewed by Finance ❑ Yes ® Not Applicable ❑ Workshop ❑ Executive ❑ Public Hearing Reviewed by Legal Lj Yes N Not Applicable COUNCIL MEETING DATE: SUBMITTED BY: February 4, 2019 Muzaib Riaz, Planner, Development Services City Manager Reviewed/Approval Initials Date 1131111 ACTION REQUESTED: ❑ORDINANCE ❑ RESOLUTION ® APPROVAL ❑ CHANGE ORDER ❑ AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS ❑ REAPPOINTMENTS AGENDA CAPTION Consider, Discuss, and Act on the Preliminary Plat of Lots 1-9, Block A, Phase 1; Lots 10-14, Block A, Phase 2; Lots 1-2, Block B, Phase 2; and Lot 1-33, Block C, Phase 3 of CR 200 Estates Addition, Being 14.77 Acres in the Ed Bradley Survey, Abstract No. 34, and 47.98 Acres in the B.B.B. and C.R.R. Company Survey Abstract Number 199, in the Extraterritorial Jurisdiction (ETJ) of the City of Sanger, and Generally Located South-West of the Intersection of County Road 200 and Metz Road. FINANCIAL SUMMARY NN/A ❑GRANT FUNDS ❑OPERATING EXPENSE []REVENUE ❑CI P []BUDGETED ❑NON -BUDGETED PRIOR CURRENT FUTURE FISCAL YEAR: YEAR YEAR YEARS TOTALS Proposed Expenditure Amount Encumbered Amount BALANCE FUND(S) TO BE USED: General ❑$ Utility ❑ $ Special ❑ $ BACKGROUND/SUMMARY OF ITEM The applicant is proposing to create 48 residential and 1 commercial lot in three phases within the City of Sanger ETJ. Approximately 14.77 acres of the property is located in Cooke County and approximately 47.98 acres is located in Denton County. The proposed lots meet City of Sanger Subdivision Regulations. Water service will be provided by Bolivar Water, and electric service will be provided by Cosery Electric. Each lot is at least 1 acre in size to allow for onsite septic systems. The plat has been reviewed by Denton County Planning and Cooke County Environmental Health Department. STAFF OPTIONS & RECOMMENDATION See staff report. List of Supporting Documents/Exhibits Attached: Prior Action/Review by Council, Boards, Commissions or Other • Staff Report Agencies: • Location Map The Planning & Zoning Commission APPROVED (5-0) • Application on the preliminary plat on January 14, 2019. • Letter of Intent 9 Preliminary Plat SANGER CITY COUNCIL STAFF REPORT �kTEXAS Meeting Date: February 4, 2019 Case #: 18SANZON-0076 Case Coordinator: Muzaib Riaz, Planner, Development Services Request: Consider, Discuss, and Act on the Preliminary Plat of Lots 1-9, Block A, Phase 1; Lots 10-14, Block A, Phase 2; Lots 1-2, Block B, Phase 2; and Lot 1-33, Block C, Phase 3 of CR 200 Estates Addition, Being 14.77 Acres in the Ed Bradley Survey, Abstract No. 34, and 47.98 Acres in the B.B.B. and C.R.R. Company Survey Abstract Number 199, in the Extraterritorial Jurisdiction (ETJ) of the City of Sanger, and Generally Located South-West of the Intersection of County Road 200 and Metz Road. Applicant: Daphne Zollinger. Case Overview The applicant is proposing to create 48 residential and 1 commercial lot in three phases within the City of Sanger ETJ. Approximately 14.77 acres of the property is located in Cooke County and approximately 47.98 acres is located in Denton County. The proposed lots meet City of Sanger Subdivision Regulations. Water service will be provided by Bolivar Water, and electric service will be provided by Cosery Electric. Each lot is at least 1 acre in size to allow for onsite septic systems. The plat has been reviewed by Denton County Planning and Cooke County Environmental Health Department. Staff Recommendation Staff has found the plat to be in compliance with all applicable City's Subdivision Regulations and recommends APPROVAL. Planning & Zoning Commission Recommendation The Planning & Zoning Commission APPROVED (5-0) the proposed preliminary plat on January 14, 2019. Attachments • Location Map • Application • Letter of Intent • Preliminary Plat N Location Exhibit: CR 200 Estates CWS IMER TN nep r— generzted by GGS data p—ided BANGER Addition S.w-- r G SOepa trrent The Cry of byf . rdeesnetgi¢rardee the c ,tlne for ....i+r W E am�,,q pfany f-l—on tFis rtvp. These m ap po duds are br ilu�ralion puposes ody and 1 i T E Jl A S-tsu."tor siespec Rc deddon maF'mg. �.• -1 � GGS tlata is subfeG to mretaN Uianges,and '! _ �� CIty U,litS Exhibits maynot be cortplete,aaurate or cureK.=rt S ® Date: vigrzots asen PMJ�11Y,} 1 �11� oop Mama: L«ao-n Kbb_CRMOEMias W" BANGER SUBDIVISION APPLICATION Preliminary Plat Final Plat Replat Vacating Plat Minor Plat 1 Am aed Plat Conveyance Plat Applicant Owner (if different from applicant) Name: Name: -D (k V\ V\.e 70 Vt (VAC Company: LLC- Company: Address: Address City, State, Zip: City, State, Zip: Phone (� 13 Phone: ` a- oC) -3 Fax: cA LA r) q � (� Fax: Email: Email: v Submittal Checklist Pre -Application Conference (Date:_J� ) Six (6) Copies of Plat (24"x36", folded to 1/4 size) One (1) PDF Copy of Plat Letter of Intent Non -Refundable Application Fee (Check Payable to City of Sanger) Application Form (Signed by Owner) pplicable Plat Checklist (Completed) Supporting Materials (List if provided): Lo+ 5 �e2ioe ' in. A d /d h -PH R Numb r(s): Owner SiAhature Applicant N7gnature Date / if /.Iq �I Date Office Use: Reviewed by Director of Development Services U / I •7 / W O I X Complete (Check a — ) Incomplete (Returned toApplicant _�_/ ) Cil y of Sanger 201 Bolivar /1'.0 Box 1779 Sanger, 1X76266 940-458-2059 (office) 940-458-4072 (fox) %vtvw.songertexas.or0 Effective Date: 8/7/2018 Kr v '' Letter of Intent for Platting CR 200 Estates Addition, Phase 1 CR 200 County Road & Metz Road Denton, TX 76266 R978950 12/19/2018 The property (R978950) which is located at CR 200 County Road & Metz Road is currently zoned AG. The proposed Preliminary Plat will create (8) 1 acre lots and (1) 1.68 acre lot for Phase 1. Tony Kimbrough Plat Manager WA Q-...,...�. .:..... e`.�-. vi,va.yoiy 940-382-3446 tonyla kazsurveying.com V A 7 Qiiey1I�AL✓lr11b, TlvuvviNw.0tno d 1720 Westminster Street Denton, TX 76205 Phone:940-382-3446 Fax:9110-382-3447 W..W_ • ��g�H������4 m a Nar �w mar Roa�rn-w snzn n 3 COUIRYROAO �� �N I NETZ ROAD NETZ ROPO \ — )p�'°��� I I� Mal 0� e � � {g{€� :g� _ Sao �F s a FFy € �s g g LL F g°o HIP ` II F �Eilm m'3eF Qi m S �° '�° i �pm to 5 0 0 — Po �' 9'� vE ,,..• w I 60 fia I'I p ;g ��".E_,,. o g P I o wo- -.�do qa ea _ ; gm gm°s 4 b�{ N = yE s" g 5° g >m= HR s3o �y io ; v � I ^� a s � E 3Vo oS pip m a a " o �= ass E e 0 J�p b$ ss° I El s 3 8 H4H g�€o b�— sao I b SS xm/ �01 asId s II �N I is i E $o, lmv A 0 Z �r ��nn a�xm om�<k'� D V1wN�mr � Mmmoy�mDrowoz — swno =122 R�FX j �a"�K N nmDD'o \\ Isaro i yc�Q°D�=v2D \ I oZ \ PR I _� I 1 II II Mg � � N81. zo ° °s=�� HB oDo g F E 0q Aso =o-.1� H a $gmoa:$�sa���� J° ° 'ao 9 a o L,9❑ a o E o o € ;s s e� °6 P 8.0 51 i4 — r s x a s s e e go op o ?S c m o 'a 19 E mNP = sa � a a an 33 a e A m Y °o o � �$ § �gmy'D A omopYyD cn roan- n s § opp§_N—ImW�m3 a mmJmmD o�oq sr o gop�ma�m0�o0a s O co mEQoD�v o m y W C N N > (n R '{ E`°a'�_1 ° :o 3 mmm`z �mNmm O� LL BANGER *TEXAS COUNCIL AGENDA ITEM AGENDA TYPE: ® Regular ❑ Special Reviewed by Finance ❑ Yes ® Not Applicable ❑ Consent ❑ Workshop ❑ Executive Reviewed by Legal ❑ Yes ® Not Applicable ❑ Public Hearin Council Meeting Date: Submitted By: February 4, 2019 Cheryl Price, City Secretary City Manager Reviewed/Approval Initials Date IlUlm ACTION REQUESTED: ®ORDINANCE [:]RESOLUTION ®APPROVAL ❑ CHANGE ORDER ®AGREEMENT ❑ APPROVAL OF BID ❑ AWARD OF CONTRACT ❑ CONSENSUS ❑ REAPPOINTMENTS AGENDA CAPTION Consider, Discuss and Possibly Act on Ordinance #02-01-19 - Ordering and Providing Notice of General Election for the Purpose of Electing Three (3) Council Members: Council Member Place 1; Council Member Place 3; and, Council Member Place 5; and, Approve A Joint Election Agreement and Contract with Denton County Election Services; Authorizing the Mayor to Sign the Agreement; the Notice and Order; and, Providing for an Effective Date. FINANCIAL SUMMARY ®N/A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑REVENUE ❑CIP []BUDGETED ❑ NON -BUDGETED PRIOR CURRENT FUTURE FISCAL YEAR: YEAR YEAR YEARS TOTALS Proposed Expenditure Amount Encumbered Amount BALANCE FUND(S) TO BE USED: General ❑$ Utility ❑ $ Special ❑ $ BACKGROUND/SUMMARY OF ITEM Approval of Ordinance #02-01-19 will formally Call and Order the May 4, 2019 Election. Denton County will again provide a "full -service" joint election and Denton County will be responsible for conducting the May election similar to elections held in the past as specified in their contract. This contract is the same as last year's contract. The total estimated cost obligation for the Election will be provided under the terms of the agreement, within 45 days after the last deadline for ordering the election. STAFF OPTIONS & RECOMMENDATION Staff recommends approval. List of Supporting Documents/Exhibits Prior Action/Review by Council, Boards, Attached: Commissions or Other Agencies: • Ordinance #02-01-19 • Order of Election None • Notice of Election 9 Joint Election Agreement & Contract ORDINANCE #02-01-19 AN ORDINANCE OF THE CITY OF SANGER, TEXAS, ORDERING A GENERAL ELECTION TO BE HELD JOINTLY WITH OTHER DENTON COUNTY POLITICAL SUBDIVISIONS FOR THE PURPOSE OF ELECTING THREE (3) CITY COUNCIL MEMBERS: CITY COUNCIL MEMBER PLACE 1; CITY COUNCIL MEMBER PLACE 3; AND, CITY COUNCIL MEMBER PLACE 5; DESIGNATING LOCATIONS OF POLLING PLACES; PROVIDING FOR DATES; TIMES AND PLACE FOR VOTING AND EARLY VOTING BY PERSONAL APPEARANCE; PROVIDING DEADLINE FOR APPLICATIONS FOR BALLOT BY MAIL; ORDERING NOTICES OF ELECTION TO BE POSTED AND PUBLISHED; AUTHORIZE THE MAYOR TO SIGN THE NOTICE AND ORDER AND PROVIDING FOR AN EFFECTIVE DATE. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS: Section 1. A municipal election is hereby ordered to be held on Saturday, May 4, 2019, as such date being a uniform election date as defined in the Texas Election Code 41.001, as amended (the "Code"), for the purpose of electing the following for a two (2) year term: City Council Member Place 1 City Council Member Place 3 City Council Member Place 5 Should a runoff election be required following the canvass of the May 4, 2019 election, the City Council hereby orders that a runoff election be held on Saturday, June 8, 2019. Section 2. The election day polling place where qualified voters shall cast ballots will be at the following location: Church of Christ 400 Locust Street Sanger, Texas 76266 Election polls shall be open from 7:00 a.m. until 7:00 p.m. on the date of election. Section 3. Early voting by personal appearance will be located at the following location beginning Monday, April 22, 2019 through Tuesday, April 30, 2019: Church of Christ 400 Locust Street Sanger, Texas 76266 Denton County Elections Administrator shall select and arrange for the use of Early Voting and Election Day voting locations. Voting locations will be, whenever possible, the usual voting location for each election precinct. In the event a voting location is not available, or appropriate, the Elections Administrator will arrange for use of an Alternate location. Notice will be provided at the entrance to any previous polling places in the jurisdiction stating that the polling location has changed and stating the polling place names and addresses in effect for the May 4 2019 Election. The Early Voting hours will be: Monday — Friday April 22, 2019 — April 26, 2019 8:00 am to 5:00 pm Saturday April 27, 2019 8:00 am to 5:00 pm Monday April 29, 2019 7:00 am to 7:00 pm Tuesday April 30, 2019 7:00 am to 7:00 pm 5 Denton County will be responsible for Early Voting by mail applications. The applications for Early Voting shall be delivered to Frank Phillips, Election Administrator for Denton County at 701 Kimberly Drive, Suite Al01, Denton, Texas 76208. Section 4. Candidates must file for a specific place and adhere to the filing deadlines accordingly. Candidate packets are available in the City Secretary's office. The candidate filing periods for the General Election for City Council Member, Place 1; City Council Member, Place 3; and, City Council Member, Place 5, are as follows: Beginning: January 16, 2019 at 7:30 am Ending: February 15, 2019 at 5:00 pm Candidates must file with the City Secretary's office located in City Hall, 502 Elm Street, Sanger, Texas. Section 5. An electronic voting system, the Hart InterCivic Verity Voting System shall be used in this election for early voting by personal appearance and election day voting. Section 6. The election precinct and voting places of said election shall be determined by the Denton County Elections Administrator. Section 7. Should any part, section, subsection, paragraph, sentence, clause or phrase contained in this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof other than the part thereof decided to be unconstitutional, illegal or invalid all respects said remaining portion shall be and remain in full force and effect. Section 8. The City Secretary is hereby authorized and directed to publish and/or post, in the time and manner prescribed by law, all notices required to be published and/or posted in connection with the conduct of this election. The Denton County Election contract shall designate the election judges for the election. The election, including providing notice of the election shall be conducted in accordance with the Texas Election Code and other applicable law, and all residents qualified and registered voters of the City shall be eligible to vote at the election. Section 9. The Mayor and City Secretary are hereby authorized and directed to take any and all actions necessary to comply with the provisions of the Texas Election Code and any other state or federal law in carrying out and conducting the election, whether or not expressly authorized herein. This ordinance will take effect immediately from and after its passage, and the publication of the caption, as the law and Charter in such cases provide. PASSED AND APPROVED 4th day of February, 2019 by the City Council of the City of Sanger, Texas. APPROVED: Thomas E. Muir, Mayor ATTEST: Cheryl Price, City Secretary ORDER OF ELECTION ORDEN DE ELECCION CITY OF SANGER, TEXAS CIUDAD DE SANGER, TEXAS An election is hereby ordered to be held on May 4, 2019 for the purpose of: (Por la presente se ordena que se levara a cabo una eleccion el 4 de mayo 2019 con el proposito de: Electing a three (3) Council Members for Place 1, Place 3 and Place 5. (Elegir tres (3) miembros del Consejo para los lugares 1, 3 y 5) Early Voting by personal appearance will be conducted at: (La votacion adelantada en persona se llevara a cabo en:) Church of Christ 400 Locust Street Sanger, Texas Early voting to be conducted on the following days, dates and times: (La votacion anticipada se realizara en los siguientes dias, fechas y horarios:) Monday through Friday April 22, 2019 — April 26, 2019 8:00 a.m. to 5:00 p.m. (Lunes a Viernes 22 de abril de 2019 - 26 de abril de 2019 8:00 a.m. to 5:00 p.m.) Saturday April 27, 2019 8:00 a.m. to 5:00 p.m. (Sabado 27 de abril de 2019 8:00 a.m. to 5:00 p.m.) Monday and Tuesday April 29 and April 30, 2019 7:00 a.m. to 7:00 p.m. (Lunes y martes 29 y 30 de abril de 2019) 7:00 a.m. to 7:00 p.m.) Applications for ballot by mail shall be mailed to: (Las solicitudes para boletas que se votaran en ausencia por correo deberan enviarse a:) Denton County Election Administrator 701 Kimberly, Suite Al01 Denton, Texas 76208 Applications for ballot by mail must be received no later than the close of business on April 23, 2019. (Las solicitudes para boletas de votacion adelantada por correo deberan recibirse para el fin de las horas de negocio el: 23 de abril 2019. Issued this 45t day of February, 2019. (Emitada este 4 de Febrero 2019.). Thomas E. Muir, Mayor CITY OF SANGER, TEXAS NOTICE OF GENERAL ELECTION (CIUDAD DE SANGER, TEXAS AVISO DE ELECCION GENERAL) To the Registered Voters of the City of Sanger, Texas (A los votantes registrados del ciudad Sanger, Texas) Notice is hereby given that the polling place listed below will be open from 7:00 am to 7:00 pm on May 4, 2019, for voting in a General Election to elect three (3) Council Members, Places 1, 3 and 5. (Por la presente se da aviso de que el lugar de votacion que figura a continuaci6n estara abierto de 7:00 am a 7:00 pm el 4 de mayo de 2019, para votar en una Elecci6n General para elegir a tres (3) Miembros del Consejo, Lugares 1, 3 y 5.) LOCATION OF POLLING PLACE (DIRECCION(ES) DE LAS CASILLAS ELECTORIALES) Church of Christ 400 Locust Sanger, Texas Early voting by personal appearance will be conducted at: (La votacion adelantada en persona se lievara a cabo en:) Church of Christ 400 Locust Sanger, Texas Early voting to be conducted on the following days, dates and times: (La votacion anticipada se realizara en los siguientes dias, fechas y horarios:) Monday through Friday April 22, 2019 — April 26, 2019 8:00 a.m. to 5:00 p.m. (Lunes a Viernes 22 de abril de 2019 - 26 de abril de 2019 8:00 a.m. to 5:00 p.m.) Saturday April 27, 2019 8:00 a.m. to 5:00 p.m. (Sabado 26 de abril de 2019 8:00 a.m. to 5:00 p.m.) Monday and Tuesday April 29, and April 30, 2019 7:00 a.m. to 7:00 p.m. (Lunes y martes 29 de abril y 30 de abril de 2019 7:00 a.m. to 7:00 p.m.) Applications for ballot by mail shall be mailed to: (Las solicitudes para boletas que se votaran en ausencia por correo deberan enviarse a:) Denton County Elections Administrator 701 Kimberly, Suite Al01 Denton, Texas 76208 Applications for ballots by mail must be received no later than the close of business on April 23, 2019. (Las solicitudes para boletas que se votaran en ausencia por correo deberan recibirse para el fin de las horas de negocia el 23 de abril 2019.) Issued this 41t day of February 2019. (Emitada este dia 4 de Febrero 2019.) Thomas E. Muir, Mayor THE STATE OF TEXAS COUNTY OF DENTON JOINT ELECTION AGREEMENT AND CONTRACT FOR ELECTION SERVICES This CONTRACT for election services is made by and between the Denton County Elections Administrator and the following political subdivisions, herein referred to as "participating authority or participating authorities" located entirely or partially inside the boundaries of Denton County: Participating Authorities: City of Sanger This contract is made pursuant to Texas Election Code Sections 31.092 and 271.002 and Texas Education Code Section 11.0581 for a Joint May 4, 2019 Election to be administered by Frank Phillips, Denton County Elections Administrator, hereinafter referred to as "Elections Administrator." RECITALS Each participating authority listed above plans to hold a General or Special Election on [election -date]. Denton County plans to hold county -wide voting for this General Election. The County owns the Hart InterCivic Verity Voting System, which has been duly approved by the Secretary of State pursuant to Texas Election Code Chapter 122 as amended, and is compliant with the accessibility requirements for persons with disabilities set forth by Texas Election Code Section 61.012. The contracting political subdivisions (participating authorities) desire to use the County's voting system and to compensate the County for such use and to share in certain other expenses connected with joint elections, in accordance with the applicable provisions of Chapters 31 and 271 of the Texas Election Code, as amended. NOW THEREFORE, in consideration of the mutual covenants, agreements, and benefits to all parties, IT IS AGREED as follows: I. ADMINISTRATION The participating authorities agree to hold a "Joint Election" with Denton County and each other in accordance with Chapter 271 of the Texas Election Code and this v.1.17.19bg agreement. The Elections Administrator shall coordinate, supervise, and handle all aspects of administering the Joint Election as provided in this agreement. Each participating authority agrees to pay the Elections Administrator for equipment, supplies, services, and administrative costs as provided in this agreement. The Elections Administrator shall serve as the administrator for the Joint Election; however, each participating authority shall remain responsible for the decisions and actions of its officers necessary for the lawful conduct of its election. The Elections Administrator shall provide advisory services in connection with decisions to be made and actions to be taken by the officers of each participating authority as necessary. It is understood that other political subdivisions may wish to participate in the use of the County's Verity voting system and polling places, and it is agreed that the Elections Administrator may enter into other contracts for election services for those purposes, on terms and conditions generally similar to those set forth in this contract. In such cases, costs shall be pro -rated among the participants according to Section XI of this contract. II. LEGAL DOCUMENTS Each participating authority shall be responsible for the preparation, adoption, and publication of all required election orders, resolutions, notices, and any other pertinent documents required by the Texas Election Code and/or the participating authority's governing body, charter, or ordinances, except that the Elections Administrator shall be responsible for the preparation and publication of all voting equipment testing notices that are required by the Texas Election Code. Election orders should include language that would not necessitate amending the order if any of the Early Voting and/or Election Day polling places change. Preparation of the necessary materials for notices and the official ballot shall be the responsibility of each participating authority, including translation to languages other than English. Each participating authority shall provide a copy of their respective election orders and notices to the Elections Administrator. III. VOTING LOCATIONS The Elections Administrator shall select and arrange for the use of and payment for all Early Voting and Election Day voting locations. Voting locations will be, whenever possible, the usual voting location for each election precinct in elections conducted by each participating authority, and shall be compliant with the accessibility requirements established by Election Code Section 43.034 and the Americans with Disabilities Act (ADA). All Early Voting and Election Day voting locations shall be within the boundaries of Denton County. The proposed voting locations are listed in Attachment A of this agreement. In the event a voting location is not available or appropriate, the Elections Administrator will arrange for use of an alternate location. The Elections Administrator shall notify the participating authorities of any changes from the locations listed in Attachment A. v.1.17.19bg If polling places for the May 4, 2019 Joint Election are different from the polling place(s) used by a participating authority in its most recent election, the authority agrees to post a notice no later than May 3, 2019 at the entrance to any previous polling places in the jurisdiction stating that the polling location has changed and stating the political subdivision's polling place names and addresses in effect for the May 4, 2019 election. This notice shall be written in both the English and Spanish languages. IV. ELECTION JUDGES, CLERKS, AND OTHER ELECTION PERSONNEL Denton County shall be responsible for the appointment of the presiding judge and alternate judge for each polling location. The Elections Administrator shall make emergency appointments of election officials if necessary. Upon request by the Elections Administrator, each participating authority agrees to assist in recruiting polling place officials who are bilingual (fluent in both English and Spanish). In compliance with the Federal Voting Rights Act of 1965, as amended, each polling place containing more than 5% Hispanic population as determined by the 2010 Census shall have one or more election officials who are fluent in both the English and Spanish languages. If a presiding judge is not bilingual, and is unable to appoint a bilingual clerk, the Elections Administrator may recommend a bilingual worker for the polling place. If the Elections Administrator is unable to recommend or recruit a bilingual worker, the participating authority or authorities served by that polling place shall be responsible for recruiting a bilingual worker for translation services at that polling place. The Elections Administrator shall notify all election judges of the eligibility requirements of Subchapter C of Chapter 32 of the Texas Election Code, and will take the necessary steps to insure that all election judges appointed for the Joint Election are eligible to serve. The Elections Administrator shall arrange for the training and compensation of all election judges and clerks. The Election judges and clerks who attend voting equipment training and/or procedures training, shall be compensated at the rate of $10 an hour. Election judges and clerks that elect to complete online training shall be compensated at a rate of a flat $30. In the event that an Election judge or clerk completes both in person and online training, they shall be compensated for the training resulting in the highest pay and will not be compensated for both trainings. The Elections Administrator shall arrange for the date, time, and place for presiding election judges to pick up their election supplies. Each presiding election judge will be sent a letter from the Elections Administrator notifying them of their appointment, the dates/times and locations of training and distribution of election supplies, and the number of election clerks that the presiding judge may appoint. Each election judge and clerk will receive compensation at the hourly rate established by Denton County pursuant to Texas Election Code Section 32.091. The election judge, or their designee, will receive an additional sum of $25.00 for picking up the election v.1.17.19bg supplies and equipment prior to Election Day and for returning the supplies and equipment to the central counting station after the polls close. Likewise, the Lead Clerk in Early Voting, or their designee, will receive an additional sum of $25.00 for picking up the election supplies prior to the first day of Early Voting and for returning the supplies and equipment to the Elections Department after Early Voting has ended. The compensation rates established by Denton County are: Early Voting — Lead Clerk ($12 an hour), Clerk ($10 an hour) Election Day — Presiding Judge ($12 an hour), Alternate Judge ($11 an hour), Clerk ($10 an hour) The Elections Administrator may employ other personnel necessary for the proper administration of the election, as well as, pre and post -election administration. In such cases, costs shall be pro -rated among the participants of this contract. Part-time help is included as is necessary to prepare for the election, to ensure the timely delivery of supplies during Early Voting and on Election Day, and for the efficient tabulation of ballots at the central counting station. Part-time personnel working in support of the Early Voting Ballot Board and/or central counting station on election night will be compensated at the hourly rate set by Denton County in accordance with Election Code Sections 87.005, 127.004, and 127.006. If elections staff is required outside of the hours of the office's normal scope of business, the entity(ies) responsible for the hours will be billed for those hours. The Elections Administrator will determine when those hours are necessary, the number of staff and whom are necessary, along with to whom the hours are to be billed. Cost for these hours will be billed at a rate of 1.5 times the staffs hourly rate (See Sections XV #10). The Election Administrator has the right to waive these costs as they see fit. V. PREPARATION OF SUPPLIES AND VOTING EQUIPMENT The Elections Administrator shall arrange for all election supplies and voting equipment including, but not limited to, the County's Verity voting system and equipment, official ballots, sample ballots, voter registration lists, and all forms, signs, maps and other materials used by the election judges at the voting locations. The Elections Administrator shall ensure availability of tables and chairs at each polling place and shall procure rented tables and chairs for those polling places that do not have tables and/or chairs. Any additional required materials (required by the Texas Election Code) must be provided by the Participating Authority, and delivered to the Elections Office thirty-three (33) calendar days (April 1, 2019) prior to Election Day. If this deadline is not met, the material must be delivered by the participating authority, to all Early Voting and Election Day locations affected, prior to voting commencing. The Elections Administrator shall be responsible for conducting all required testing of the voting equipment, as required by Chapters 127 and 129 of the Texas Election Code. At each polling location, joint participants shall share voting equipment and supplies to the extent possible. The participating authorities shall share a mutual ballot in those v.1.17.19bg precincts where jurisdictions overlap. Multiple ballot styles shall be available in those shared polling places where jurisdictions do not overlap. The Elections Administrator shall provide the necessary voter registration information, maps, instructions, and other information needed to enable the election judges in the voting locations that have more than one ballot style to conduct a proper election. Each Participating Authority shall furnish the Elections Administrator a list of candidates and/or propositions showing the order and the exact manner in which the candidate names and/or proposition(s) are to appear on the official ballot (including titles and text in each language in which the authority's ballot is to be printed). Said list must be provided to the Elections Office within three (3) business days following the last day to file for a place on the ballot or after the election is ordered, whichever is later. Said list must be in a Word document, the information must be in an upper and lower case format, be in Arial 12 point font, and contain candidate contact information for the purposes of verifying the pronunciation of each of the candidates' names. Each participating authority shall be responsible for proofreading and approving the ballot insofar as it pertains to that authority's candidates and/or propositions. Each participating authority shall be responsible for proofing and approving the audio recording of the ballot insofar as it pertains to that authority's candidates and/or propositions. The approvals must be finalized with the Elections Office within five (5) calendar days of receipt of the proofs, or the provided proofs shall be considered approved. The Joint Election ballots shall list the County's election first. The Joint Election ballots that contain ballot content for more than one joint participant because of overlapping territory shall be arranged with the appropriate school district ballot content appearing on the ballot following the County's election, followed by the appropriate city ballot content, and followed by the appropriate water district or special district ballot content. Early Voting by Personal Appearance and on Election Day shall be conducted exclusively on Denton County's Verity voting system including provisional ballots. The Elections Administrator shall be responsible for the preparation, testing, and delivery of the voting equipment for the election as required by the Election Code. The Elections Administrator shall conduct criminal background checks on the relevant employees upon hiring as required by Election Code 129.051(g). VI. EARLY VOTING The participating authorities agree to conduct joint early voting and to appoint the Election Administrator as the Early Voting Clerk in accordance with Sections 31.097 and 271.006 of the Texas Election Code. Each participating authority agrees to appoint the Elections Administrator's permanent county employees as deputy early voting clerks. The participating authorities further agree that the Elections Administrator may appoint other deputy early voting clerks to assist in the conduct of early voting as necessary, and that these additional deputy early voting clerks shall be compensated at an hourly v.1.17.19bg rate set by Denton County pursuant to Section 83.052 of the Texas Election Code. Deputy early voting clerks who are permanent employees of the Denton County Elections Administrator or any participating authorities shall serve in that capacity without additional compensation. Early Voting by personal appearance will be held at the locations, dates, and times listed in Attachment B of this document. Any qualified voter of the Joint Election may vote early by personal appearance at any one of the joint early voting locations. All requests for Temporary Early Voting Locations will be considered, and determined based on the availability of sites and if it is within the Election Code parameters. All costs for temporary sites including coverage by Election Administration staff will be borne by the requesting authority. The Elections Administrator will determine when those hours are necessary, the number of staff and whom are necessary along with to whom the hours are to be billed. Cost for these hours will be billed at a rate of 1.5 times the staffs hourly rate (See Sections XV #10). The Election Administrator has the right to waive these costs as they see fit. As Early Voting Clerk, the Elections Administrator shall receive applications for early voting ballots to be voted by mail in accordance with Chapters 31 and 86 of the Texas Election Code. Any requests for early voting ballots to be voted by mail received by the participating authorities shall be forwarded immediately by fax or courier to the Elections Administrator for processing. The address of the Early Voting Clerk is as follows: Frank Phillips, Early Voting Clerk Denton County Elections PO Box 1720 Denton, TX 76202 Email: elections@dentoncounty.com Any requests for early voting ballots to be voted by mail, and the subsequent actual voted ballots that are sent by a contract carrier (ie. UPS, FedEx, etc.) shall be delivered to the Early Voting Clerk at the Denton County Elections Department physical address as follows: Frank Phillips, Early Voting Clerk Denton County Elections 701 Kimberly Drive, Suite A101 Denton, TX 76208 The Elections Administrator shall post on the county website each participating authority's early voting roster on a daily basis and a cumulative final early voting roster following the close of early voting. In accordance with Section 87.121(g) of the Election Code, the daily rosters showing the previous day's early voting activity will be posted to the county website no later than 8:00 a.m. each business day. v.1.17.19bg VII. EARLY VOTING BALLOT BOARD Denton County shall appoint an Early Voting Ballot Board (EVBB) to process early voting results from the Joint Election. The Presiding Judge,•with the assistance of the Elections Administrator, shall appoint two or more additional members to constitute the EVBB. The Elections Administrator shall determine the number of EVBB members required to efficiently process the early voting ballots. VIII. CENTRAL COUNTING STATION AND ELECTION RETURNS The Elections Administrator shall be responsible for establishing and operating the central counting station to receive and tabulate the voted ballots in accordance with the provisions of the Texas Election Code and of this agreement. The participating authorities hereby, in accordance with Section 127.002, 127.003, and 127.005 of the Texas Election Code, appoint the following central counting station officials: Counting Station Manager: Frank Phillips, Denton County Elections Administrator Tabulation Supervisor: Jason Slonaker, Technology Resources Coordinator Presiding Judge: Early Voting Ballot Board Judge Alternate Judge: Early Voting Ballot Board Alternate Judge The counting station manager or their representative shall deliver timely cumulative reports of the election results as precincts report to the central counting station and are tabulated by posting on the Election Administrator's Election Night Results website. The manager shall be responsible for releasing unofficial cumulative totals and precinct returns from the election to the joint participants, candidates, press, and general public by distribution of hard copies at the central counting station (if requested) and by posting to the Elections Administrator's Election Night Results website. To ensure the accuracy of reported election returns, results printed on the tapes produced by Denton County's voting equipment will not be released to the participating authorities at the remote collection sites or by phone from individual polling locations. The Elections Administrator will prepare the unofficial canvass reports after all precincts have been counted, and will deliver a copy of the unofficial canvass to each participating authority as soon as possible after all returns have been tabulated. The Elections Administrator will include the tabulation and precinct -by -precinct results that are required by Texas Election Code Section 67.004 for the participating authorities to conduct their respective canvasses. Each participating authority shall be responsible for the official canvass of its respective election(s), and shall notify the Elections Administrator, or their designee, of the date of the canvass, no later than three days after Election Day. v.1.17.19bg The Elections Administrator will prepare and deliver by email to each participating authority, the electronic precinct -by -precinct results reports for uploading, by the authority, to the Secretary of State as required by Section 67.017 of the Election Code. The Elections Administrator shall be responsible for conducting the post -election manual recount required by Section 127.201 of the Texas Election Code unless a waiver is granted by the Secretary of State. Notification and copies of the recount, if waiver is denied, will be provided to each Participating Authority and the Secretary of State's Office. IX. PARTICIPATING AUTHORITIES WITH TERRITORY OUTSIDE DENTON COUNTY Each participating authority with territory containing population outside of Denton County agrees that they Elections Administrator shall administer only the Denton County portion of those elections. X. RUNOFF ELECTIONS Each participating authority shall have the option of extending the terms of this agreement through its runoff election, if applicable. In the event of such runoff election, the terms of this agreement shall automatically extend unless the participating authority notifies the Elections Administrator in writing within three (3) business days of the original election. Each participating authorities shall reserve the right to reduce the number of early voting locations and/or Election Day voting locations in a runoff election. Each participating authority agrees to order any runoff election(s) at its meeting for canvassing the votes from the May 4, 2019 election and to conduct its drawing for ballot positions at or immediately following such meeting in order to expedite preparations for its runoff election. Each participating authority eligible to hold runoff elections agrees that the date of the runoff election, if necessary, shall be Saturday, June 8, 2019, with early voting being held in accordance with the Election Code. XI. ELECTION EXPENSES AND ALLOCATION OF COSTS The participating authorities agree to share the costs of administering the Joint Election. Allocation of the costs, unless specifically stated otherwise, is mutually agreed to be shared according to a formula which is based on the number of registered voters within the district per Elections Day polling place. Costs for polling places shared by more than one participating authority shall be pro -rated equally among the participants utilizing that polling place. v.1.17.19bg It is agreed that the charges for Election Day judges and clerks and Election Day polling place rental fees shall be directly charged to the appropriate participating authority rather than averaging those costs among all participants. If a participating authority's election is conducted at more than one Election Day polling place, there shall be no charges or fees allocated to the participating authority for the cost of the Election Day polling place in which the authority has fewer than 50% of the total registered voters served by that polling place, except that if the number of registered voters in all of the authority's polling places is less than the 50% threshold, the participating authority shall pay a pro-rata share of the cost associated with the polling place where it has the greatest number of registered voters. Costs for Early Voting by Personal Appearance shall be allocated based upon the actual costs associated with each early voting site. Each participating authority shall be responsible for an equal portion of the actual costs associated with the early voting sites located within their jurisdiction. Participating authorities that do not have a regular (non - temporary) early voting site within their jurisdiction shall pay an equal portion of the nearest regular early voting site. Costs for Early Voting by mail shall be allocated according to the actual number of ballots mailed to each participating authority's voters. Each participating authority agrees to pay the Elections Administrator an administrative fee equal to ten percent (10%) of its total billable costs in accordance with Section 31.100(d) of the Texas Election Code. The Denton County Elections Administrator shall deposit all funds payable under this contract into the appropriate fund(s) within the county treasury in accordance with Election Code Section 31.100. The Denton County Elections Administrator reserves the right to adjust the above formulas in agreement with an individual jurisdiction if the above formula results in a cost allocation that is inequitable. If any participating authority makes a special request for extra Temporary Branch Early Voting by Personal Appearance locations as provided by the Texas Election Code, that entity agrees to pay the entire cost for that request. Participating authorities having the majority of their voters in another county, and fewer than 500 registered voters in Denton County, and that do not have an Election Day polling place or early voting site within their Denton County territory shall pay a flat fee of $400 for election expenses. Election expenses, including but not limited to, overtime charges for Election Office staff, and any unforeseen expenses needed to conduct the election, will be borne by the participating authority or authorities, affected. v.1.17.19bg XII. WITHDRAWAL FROM CONTRACT DUE TO CANCELLATION OF ELECTION Any participating authority may withdraw from this agreement and the Joint Election should it cancel its election in accordance with Sections 2.051 - 2.053 of the Texas Election Code. The withdrawing authority is fully liable for any expenses incurred by the Denton County Elections Administrator on behalf of the authority plus an administrative fee of ten percent (10%) of such expenses. Any monies deposited with the Elections Administrator by the withdrawing authority shall be refunded, minus the aforementioned expenses and administrative fees, if applicable. It is agreed that any of the Joint Election early voting sites that are not within the boundaries of one or more of the remaining participating authorities, with the exception of the early voting site located at the Denton County Elections Building, may be dropped from the joint election unless one or more of the remaining participating authorities agreed to fully fund such site(s). In the event that any early voting site is eliminated under this section, as addendum to the contract shall be provided to the remaining participants within five days after notification of all intents to withdraw have been received by the Elections Administrator. XIII. RECORDS OF THE ELECTION The Elections Administrator is hereby appointed general custodian of the voted ballots and all records of the Joint Election as authorized by Section 271.010 of the Texas Election Code. Access to the election records shall be available to each participating authority as well as to the public in accordance with applicable provisions of the Texas Election Code and the Texas Public Information Act. The election records shall be stored at the offices of the Elections Administrator or at an alternate facility used for storage of county records. The Elections Administrator shall ensure that the records are maintained in an orderly manner so that the records are clearly identifiable and retrievable. Records of the election shall be retained and disposed of in accordance with the provisions of Section 66.058 of the Texas Election Code. If records of the election are involved in any pending election contest, investigation, litigation, or open records request, the Elections Administrator shall maintain the records until final resolution or until final judgment, whichever is applicable. It is the responsibility of each participating authority to bring to the attention of the Elections Administrator any notice of pending election contest, investigation, litigation or open records request which may be filed with the appropriate participating authority. XIV. RECOUNTS A recount may be obtained as provided by Title 13 of the Texas Election Code. By signing this document, the presiding officer of the contracting participating authorities agree that any recount shall take place at the offices of the Elections Administrator, and that the Elections Administrator shall serve as Recount Supervisor, and the participating v.1.17.19bg authority's official or employee who performs the duties of a secretary under the Texas Election Code shall serve as Recount Coordinator. The Elections Administrator agrees to provide advisory services to each participating authority as necessary to conduct a proper recount. XV. MISCELLANEOUS PROVISIONS 1. It is understood that to the extent space is available, other districts and political subdivisions may wish to participate in the use of the County's election equipment and voting places, and it is agreed that the Elections Administrator may contract with such other districts or political subdivisions for such purposes and that in such event there may be an adjustment of the pro-rata share to be paid to the County by the participating authorities. 2. The Elections Administrator shall file copies of this document with the Denton County Treasurer and the Denton County Auditor in accordance with Section 31.099 of the Texas Election Code. 3. Nothing in this contract prevents any party from taking appropriate legal action against any other party and/or other election personnel for a breach of this contract or a violation of the Texas Election Code. 4. This agreement shall be construed under and in accord with the laws of the State of Texas, and all obligations of the parties created hereunder are performable in Denton County, Texas. 5. In the event that one of more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof and this agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 6. All parties shall comply with all applicable laws, ordinances, and codes of the State of Texas, all local governments, and any other entities with local jurisdiction. 7. The waiver by any party of a breach of any provision of this agreement shall not operate as or be construed as a waiver of any subsequent breach. 8. Any amendments of this agreement shall be of no effect unless in writing and signed by all parties hereto. 9. Failure for a participating authority to meet the deadlines as outline in this contract or on the calendar (Attachment C) may result in additional charges, including but not limited to, overtime charges, etc. v.1.17.19bg 10. Elections Staffing Hourly Rate (includes all benefit pay): Absentee Voting Coordinator $29.464 Voter Registration Clerk $22.926 - $24.718 Technology Resources Coordinator $32.400 Elections Technician $21.309 - $24.718 Voter Registration Coordinator $30.442 Training Coordinator $31.158 Election Coordinator $31.962 XVI. COST ESTIMATES AND DEPOSIT OF FUNDS The total estimated obligation for each participating authority under the terms of this agreement is listed below. The exact amount of each participating authority's obligation under the terms of this agreement shall be calculated after the [election -date] election (or runoff election, if applicable). The participating authority's obligation shall be paid to Denton County within 30 days after the receipt of the final invoice from the Denton County Elections Administrator. The total estimated obligation for each participating authority under the terms of this agreement shall be provided within 45 days after the last deadline for ordering an election: [costs] [pagebreak] SIGNATURE PAGE (separate page) v.1.17.19bg