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08/21/2023-CC-Agenda Packet-RegularCITY COUNCIL MEETING AGENDA AUGUST 21, 2023, 6:00 PM CITY COUNCIL REGULAR MEETING HISTORIC CHURCH BUILDING - 403 N 7TH STREET, SANGER, TEXAS CALL THE WORK SESSION TO ORDER AND ESTABLISH A QUORUM DISCUSSION ITEMS 1. Presentation and discussion regarding solid waste and recycling services. 2. Discussion on the repairs to the Sullivan Senior Center. OVERVIEW OF ITEMS ON THE REGULAR AGENDA ADJOURN THE WORK SESSION The Regular Meeting will begin following the Work Session but not earlier than 7:00 p.m. CALL THE REGULAR MEETING TO ORDER AND ESTABLISH A QUORUM INVOCATION AND PLEDGE CITIZENS COMMENTS This is an opportunity for citizens to address the Council on any matter. Comments related to public hearings will be heard when the specific hearing begins. Citizens are allowed 3 minutes to speak. Each speaker must complete the Speaker’s Form and include the topic(s) to be presented. Citizens who wish to address the Council with regard to matters on the agenda will be received at the time the item is considered. The Council is not allowed to converse, deliberate or take action on any matter presented during citizen input. SPECIAL PRESENTATIONS AND ANNOUNCEMENTS Mayoral proclamations, presentations of awards and certificates, and other acknowledgments of significant accomplishments or service to the community. 3. Proclamation for Denton County MHMR Center proclaiming September 2023 as Suicide Prevention Awareness Month. 4. Proclaiming September 2023 as LIVE UNITED Month 1 REPORTS Staff Reports are for discussion only. No action may be taken on items listed under this portion of the agenda. 5. Provide an update on Freedom Fest 2023. CONSENT AGENDA All items on the Consent Agenda will be acted upon by one vote without being discussed separately unless requested by a Councilmember to remove the item(s) for additional discussion. Any items removed from the Consent Agenda will be taken up for individual consideration. 6. Consideration and possible action on the minutes from the August 7, 2023, meeting. 7. Consideration and possible action on property acquisition for betterment of I-35 Water and Sewer Relocation. 8. Consideration and possible action on a Master Agreement and Individual Project Order with Kimley Horn for the design and construction plan for the sound wall to be located on the I-35 corridor through the City of Sanger. 9. Consideration and possible action on authorizing staff to issue an RFP for Conceptual Design for a New Downtown Park. ACTION ITEMS 10. Consideration and possible action on Ordinance 08-18-23, Approving the Property Tax Roll. 11. Consideration and possible action on Ordinance 08-19-23, adopting the budget providing for the appropriation of funds for operating and capital expenditures for the fiscal year beginning October 1, 2023, and ending September 30, 2024, providing for the intra- and inter-department and fund transfers, providing for unexpected revenues such as grants, donations, and insurance proceeds, providing for an effective date, and providing for approval of the investment policy. 12. Consideration and possible action on Ordinance 08-20-23, setting the City's Ad Valorem tax rate at $0.689747/$100 of taxable assessed valuation for the Fiscal Year beginning October 1, 2023, and ending September 30, 2024. 13. Consideration and possible action on Ordinance 08-22-23, ratifying the property tax increase reflected in the fiscal year 2023-2024 budget. 2 14. Consideration and possible action on Ordinance 08-21-23 amending the Fee Schedule, Appendix A, Article 4.00 Utility Related Fees, Section 4.307 Sewer Service Rates; providing for the repeal of all ordinances in conflict; providing for a severability clause; and providing a savings clause; authorizing publication; and establishing an effective date. 15. Consideration and possible action regarding an Agreement between the City of Sanger and Denton 1000 LLC to Perform a Waste Water Study related to Denton County Municipal Utility District #12. FUTURE AGENDA ITEMS The purpose of this item is to allow the Mayor and Councilmembers to bring forward items they wish to discuss at a future meeting, A Councilmember 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. INFORMATIONAL ITEMS Information Items are for informational purposes only. No action may be taken on items listed under this portion of the agenda. 16. Atmos Rider GCR - Rate Filing Docket No. 10170 07-25-2023 EXECUTIVE SESSION Pursuant to the Open Meetings Act, Chapter 551, the City Council Will Meet in a Closed Executive Session in Accordance with the Texas Government Code: Section 551.074. PERSONNEL MATTERS For deliberations regarding the appointment, employment, evaluation, reassignment, duties, discipline or dismissal of a public officer or employee. – City Manager RECONVENE INTO REGULAR SESSION Reconvene into Regular Session and take any action deemed necessary as a result of Executive Session. 3 ADJOURN NOTE: The City Council reserves the right to adjourn into Executive Session as authorized by Texas Government Code, Section 551.001, et seq. (The Texas Open Meetings Act) on any item on its open meeting agenda in accordance with the Texas Open Meetings Act, including, without limitation Sections 551.071-551.087 of the Texas Open Meetings Act. CERTIFICATION I certify that a copy of this meeting notice was posted on the bulletin board at City Hall that is readily accessible to the general public at all times and was posted on the City of Sanger website on August 16, 2023, at 4:15 PM. /s/Kelly Edwards Kelly Edwards, City Secretary The Historical Church is wheelchair accessible. Request for additional accommodations or sign interpretation or other special assistance for disabled attendees must be requested 48 hours prior to the meeting by contacting the City Secretary’s Office at 940.458.7930. 4 REQUEST FOR PROPOSALS SOLID WASTE AND RECYCLING SERVICES For the Period January 1, 2024 – December 31, 2028 RFP #2023-05 Proposal Due Date September 19, 2023, 12:00 PM The City of Sanger, Texas 502 Elm Street P O Box 1729 Sanger TX 76266 5 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 2 of 49 TABLE OF CONTENTS TABLE OF CONTENTS ............................................................................... 2 SECTION 1: NOTICE TO RESPONDENTS ................................................ 3 SECTION 2: SCHEDULE OF EVENTS ....................................................... 4 SECTION 3: INSTRUCTIONS TO PROPOSERS ....................................... 5 SECTION 4: TERMS AND CONDITIONS .................................................. 8 SECTION 5: BACKGROUND AND SCOPE OF SERVICES ................... 10 SECTION 6: PROPOSAL FORMAT AND CONTENT ............................. 27 SECTION 7: INSURANCE REQUIREMENTS ......................................... 31 SECTION 8: CONFLICT OF INTEREST QUESTIONNAIRE ................. 33 SECTION 9: HB 1295 AND FORM W-9 ................................................... 35 SECTION 10: VERIFICATION .................................................................. 36 SECTION 11: STATEMENT OF ORGANIZATION ................................. 37 SECTION 12: REFERENCES ..................................................................... 38 SECTION 13: FINANCIAL PROPOSAL ................................................... 41 EXHIBIT A: PROPOSED AGREEMENT ................................................. 49 6 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 3 of 49 SECTION 1: NOTICE TO RESPONDENTS LEGAL NOTICE TO RESPONDENT The City of Sanger will receive sealed responses until 12:00 P.M., OCTOBER 3, 2023 for Solid Waste and Recycling Services. Sealed responses must be addressed to the City Manager, City of Sanger 502 Elm Street, Sanger, Texas 76266. No electronic responses will be accepted. Sealed responses must be in the office of the City Secretary on or before 12:00 P.M., OCTOBER 3, 2023 in an envelope plainly marked “Response to RFP-2023-05 – Solid Waste and Recycling Services”. Responses will be opened by the City Secretary, at 2:00 P.M., OCTOBER 3, 2023 at City Hall, 502 Elm Street, Sanger, TX 76266. The City of Sanger shall evaluate the responses based on all factors described herein. The City of Sanger reserves the right to refuse and reject any or all responses, waive any or all formalities or technicalities, and accept the response or portions of the response determined to be of the best value to the City of Sanger. Following applicable local, state, and federal procurement regulations, the Contract will be awarded to the Respondent who provides the best value to the City of Sanger. 7 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 4 of 49 SECTION 2: SCHEDULE OF EVENTS September 5, 2023 .................................. City Council meeting to approve RFP September 6, 2023 .................................. Post RFP on the City’s website September 9, 2023 ................................ First Publication of the Request for Proposal in the Denton Record-Chronicle September 16, 2023................................... Second Publication of the Request for Proposal in the Denton Record-Chronicle September 22, 2023, 12:00 PM, CST ..... Deadline for questions, clarifications, or interpretations September 27, 2023, 12:00 PM, CST...... Deadline for City to provide responses to questions, clarifications, or interpretations October 3, 2023, 12:00 PM, CST ........... Proposal deadline October 3, 2023, 2:00 PM, CST ............. Bid Opening October 16, 2023 .................................... City Council to award the bid January 1, 2024 ...................................... Commencement of service 8 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 5 of 49 SECTION 3: INSTRUCTIONS TO PROPOSERS 3.01 DELIVERY OF PROPOSALS Qualified prospective vendors may obtain copies of the RFP on the City website: www.sangertexas.org. Proposals must be prepared on the proposal forms in the RFP. All requested documentation must be submitted with the proposal. Sealed proposals shall include one hard paper copy original proposal and one (1) electronic copy of the proposal in pdf format on a flash drive. Proposals will be received by the City Secretary at Sanger City Hall, until 12:00 PM, CST, July 18, 2023. The outside of the proposal should be marked “Response to RFP-2023-05 – Solid Waste and Recycling Services”. The City will reject late proposals. The City is not responsible for lateness or non-delivery of mail, carrier, etc. Proposer is responsible for ensuring that packets are delivered to the City Hall. USPS Mailing Address: Physical Address for other delivery methods: City Secretary City Secretary City of Sanger City of Sanger P O Box 1729 502 Elm Street Sanger TX 76266 Sanger TX 76266 3.02 LATE DELIVERY The City is not responsible for lateness or non-delivery of mail, carrier, etc. The Proposer is responsible for ensuring that packets are delivered to the Finance Department. 3.03 WITHDRAWAL OF PROPOSALS Proposer may withdraw his proposal at any time before the date and time specified for the proposal deadline. A Proposer may resubmit his proposal at any time before the proposal deadline, pursuant to the procedures requirements stated herein. Once proposals are opened, no Proposer may modify or withdraw his proposal within one hundred eighty (180) days after the proposal deadline. 3.04 EXPLANATIONS, CLARIFICATIONS, AND INTERPRETATIONS Any explanation, clarification, or interpretation desired by a Proposer regarding any part of this RFP must be requested from Finance Director, Clayton Gray, via email at cgray@sangertexas.org, before 12:00 PM, on July 7, 2023. No further inquiries will be accepted after that time. If the City, in its sole discretion, determines that an explanation, clarification, or interpretation is required, such shall be issued in writing by addendum. Explanations, clarifications, or interpretations to the RFP made in any other manner other than writing by addendum are not binding upon the City, and Proposers shall not rely upon such explanations, clarifications, or interpretations. No Proposer shall rely upon any explanations, clarifications, or interpretations given by any other method. 3.05 ADDENDUMS TO THE RFP Any explanations, clarifications, interpretations, corrections, or changes to this RFP will be made by addenda. Sole issuing authority of addenda shall be vested in the City of Sanger Finance Department. Addendums to the RFP will be published on the City website: www.sangertexas.org. It is the responsibility of the Proposer to check for addenda. 3.06 INFORMATION CONTAINED IN THE RFP The information outlined in this RFP and all appendices attached hereto has been presented solely to assist interested Proposers in making their own evaluation of the resources required to provide 9 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 6 of 49 services to the City and is not intended to be all inclusive or to contain all of the information that a prospective Proposer may desire. The City offers no warranties as to the accuracy of the information provided in this RFP. The City has made no independent effort to determine the accuracy or completeness of such information. The Proposer is solely responsible for making all necessary investigations and evaluations of information, which will or could affect their performance including the costs of providing the requested services. The Proposer agrees that it has satisfied itself by the Proposer’s own investigation and evaluations of information which will or could affect its performance and that Proposer’s proposal is based upon such investigation and evaluations of information, and that Proposer shall make no claim against the City because of any information in this RFP which may prove to be erroneous in any respect. 3.07 DISQUALIFICATION OF PROPOSERS Although not intended to be an exhaustive list of causes for disqualification, any one or more of the following causes, among others, may be considered sufficient for the disqualification of a Proposer and the rejection of its proposal: A. Evidence of collusion among proposers. B. Lack of competency as revealed by the proposed approach, experience, financial stability, and/or other factors. C. Lack of responsibility as shown by past work, judged from the standpoint of workmanship. D. Default on a previous city contract for failure to perform. 3.08 EVALUATION CRITERIA The City will conduct a comprehensive, fair, and impartial evaluation of all Proposals received in response to this RFP. The City may appoint a selection committee to perform the evaluation. The selection committee may select all or some or none of the Proposers for interviews. If the City elects to conduct interviews, Proposers may be interviewed and re-scored based upon the same criteria, or other criteria to be determined by the selection committee. The City may request additional information from the Proposers at any time before the final approval of a selected Proposer. Final approval of a selected Proposer is subject to the action of the City Council. The criteria to be evaluated include the following items listed below. An additional explanation regarding each criterion is provided in Section 4. 10 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 7 of 49 Table 3.1: Proposal Evaluation Criteria Factor Maximum Points Experience & ability to perform ● Experience & performance history ● Method of approach ● Key personnel ● Exceptions to the RFP ● References 40 Pricing & additional consideration to the City ● Residential pricing ● Commercial pricing 30 Financial stability 20 Quality of submitted proposal 10 Total points 100 The Proposer selected to provide service may be required to present its final proposal to the Council at a City Council meeting. 3.09 METHOD OF AWARD AND CITY RIGHTS The City Council reserves the right to accept any proposal or reject any or all proposals, to waive technicalities, defects, or irregularities in any proposal, and to proceed otherwise when the best interests of the City will be realized. 3.10 RELEASE OF INFORMATION AND PUBLIC INSPECTION Only the name of the Proposer responding to this proposal shall be released at the proposal opening. Other information submitted by the Proposer shall not be released by the City, except as required by the Texas Public Information Act, and the proposals will not be available for inspection during the proposal evaluation process or before contract award. If the proposal contains trade secrets or confidential information, the Proposer must specifically list that portion as confidential. All other parts of the proposal are open for public viewing upon request following the contract award. At no time will confidential information, as noted by the Proposer, be released, unless ordered by a court or the Attorney General. 3.11 ETHICS Proposers shall not offer or accept gifts or anything of value nor enter into any business arrangement with any employee, official, or agent of the City except in accordance with City Policy. 3.12 COMPLIANCE WITH LAWS Proposer, its officers, agents, employees, contractors, and subcontractors, shall abide by and comply with all laws, federal, state, and local. It is agreed and understood that, if the City calls the attention of Proposer to any such violations on the part of the Proposer, its officers, agents, employees, contractors, or subcontractors, then Proposer shall immediately desist from and correct such violation. 3.13 DISCRIMINATION PROHIBITED Proposer, in the execution, performance, or attempted performance of this service, shall not discriminate against any person or persons because of sex, race, religion, color, or national origin. The Proposer must be an equal-opportunity employer. 11 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 8 of 49 SECTION 4: STANDARD TERMS & CONDITIONS The terms and conditions set forth in this request for proposal shall be incorporated into and be a part of any proposal submitted to the City for the goods and/or services specified. 4.01 ASSIGNMENT The successful Proposer shall not directly or indirectly subcontract, sell, convey, transfer, assign the awarded contract, in whole or in part, or any rights, interests, duties, or obligations of the contract, in whole or in part, without the prior written consent of the City, and any purported subcontract, sale, conveyance, transfer or assignment by the successful Proposer without prior written consent of the City will be null and void and not binding on the City. 4.02 COMMUNICATION The successful Proposer shall direct all contact with the City through the City designated representative in the contract. The successful Proposer will not directly respond to, make inquiries of, survey or solicit information from, or otherwise interact with any departments, divisions, employees, or agents of the City unless specifically approved, or requested by the City. 4.03 REQUIRED FORMS Proposer shall include the following items in their proposal: A. Conflict of Interest Questionnaire (Section 8) B. Notarized ethics statement and a Form W-9 (Section 9) C. Notarized verification with the City of Sanger (Section 10) D. Statement of Organization (Section 11) E. References (Section 12) F. Financial Proposal (Section 13) 4.04 FELONY CRIMINAL CONVICTIONS The successful Proposer represents and warrants that neither the proposer nor the successful Proposer’s employees have been convicted of a felony criminal offense, or are under investigation of such charge, or that, if such a conviction has occurred, the successful Proposer has fully advised the City as to the facts and circumstances surrounding the conviction. 4.05 SALES TAX The City is exempt by law from payment of Texas Sales Tax and Federal Excise Tax. Our taxpayer identification number is 75-6000661. 4.06 SILENCE OF SPECIFICATIONS The apparent silence of specifications as to any detail or the apparent omission from it of a detailed description concerning any point shall be regarded as meaning that only the best commercial practices are to prevail. All interpretations of the specifications shall be made based on this statement. 12 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 9 of 49 4.07 SUBCONTRACTORS The successful Proposer shall be the sole source of contact for the contract. The successful Proposer is responsible for all actions and work performed by its subcontractors. All terms, conditions, and requirements of the contract shall apply without qualification to any services performed or goods provided by any subcontractor. 13 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 10 of 49 SECTION 5: BACKGROUND AND SCOPE OF SERVICES 5.01 OVERVIEW AND BACKGROUND INFORMATION The City of Sanger, Texas is a growing community in northern Denton County along Interstate 35. Sanger is approximately 50 miles north of both downtown Dallas and downtown Ft Worth. The population is currently estimated to be 9,470 by the North Central Texas Council of Governments. The City expects to add several new subdivisions in the next several years and expects the population to continue increasing. The City’s current contract for solid waste and recycling services expires on December 31, 2023. The current contract provides for residential services, commercial services, roll-off services, and City facility services. The current contractor is responsible for the disposal of all solid waste and processing of all recyclable materials collected pursuant to the contract. The City’s current contractor provides residential accounts with a 95-gallon trash cart and a 65-gallon recycling cart. Residential trash collections are made twice a week on a Monday/Thursday or a Tuesday/Friday schedule. The City is considering once-a-week solid waste collection; a final decision regarding once or twice-per-week residential collections shall be made before issuing a new contract. For that reason, the Proposer is required to submit a proposal based on current levels of service and on alternative service levels as described in Section 3.02 and in the required forms in Appendix B. Residential recycling collections are on the second collection day – either Thursday or Friday. The current contract specifies recyclables to include various paper, glass, metal, and plastics, as described in Section 05.02.13. The City is considering adding recycling for commercial accounts in addition to residential accounts. A final decision on commercial recycling shall be made before issuing a new contract. For that reason, the Proposer is required to submit a proposal based on current levels of service and on alternative service levels as described in Section 5.02 and in the required forms in Section 13. 5.01.01 Current Residential Services Solid waste and recycling services are currently provided to approximately 3,160 residential customers as follows: twice-per-week collection of solid waste in 95-gallon carts and once-per-week collection of recyclable materials in 65-gallon carts. The current Service Provider collects Municipal Solid Waste and Yard Waste from Single-Family Residential Units, provided that (i) such Municipal Solid Waste is placed in Roll-Outs provided by the Service Provider, (ii) such Yard Waste is placed in Bags, and (iii) such Bags and Roll-Outs are placed within five (5) feet of the curbside or right of way adjacent to the Single-Family Residential Unit no later than 6:00 a.m. on the scheduled collection day. Bulky waste collection services are currently provided to approximately 3,160 residential customers as follows: once-per-week collection provided that the Bulky Items (A) are placed at the curbside no later than 7:00 a.m. on the scheduled collection day, (B) are reasonably contained, and (C) do not exceed four (4) cubic yards in total volume or have any individual item exceeding one-hundred (100) pounds in weight. The Service Provider is only responsible for collecting, hauling, and recycling or disposing of Bulky Items from Single-Family Residential Units. White Goods containing refrigerants are not collected by the Service Provider unless such White Goods have been certified in writing by a professional technician to have had all such refrigerants removed. The service provided does not include the collection of Bulky Items comprised of Construction and Demolition Waste, White Goods, or any materials resulting from remodeling, general property clean-up, or clearing of property 14 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 11 of 49 for the preparation of construction. However, the Service Provider may negotiate an agreement on an individual basis with the owner or occupant of a Single-Family Residential Unit regarding the collection of such items by utilizing the Service Provider's Roll-Off Services. Table 5.1: Residential Services Tonnage by Material (Bulky waste tonnage is included in solid waste.) Additional residential services include the curbside collection of Christmas trees. Additional information regarding current residential services is located on the City website, www.sangertexas.org. Month Trash Tons Recycling Tons May-22 722.88 31.97 Jun-22 408.69 57.29 Jul-22 521.62 38.18 Aug-22 533 42.26 Sep-22 567.44 65.28 Oct-22 496.81 33.27 Nov-22 470.57 33.9 Dec-22 499.79 42.81 Jan-23 360.55 34.73 Feb-23 298.6 34.93 Mar-23 335.25 53.88 Apr-23 267.3 35.12 Totals 5,482.50 503.62 Monthly Average 456.88 41.97 15 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 12 of 49 5.01.02 Current Commercial Services Solid waste services are currently provided to approximately 210 commercial customers. Commercial accounts include a combination of various sizes of containers and are collected between one (1) and three (3) times per week. Table 5.2: Commercial Containers Serviced Size Pickups/Week # of Containers Commercial Toter 2 51 Commercial extra Toter 2 3 3 yard 1 37 3 yard 2 6 4 yard 1 15 4 yard 2 4 6 yard 1 20 6 yard 2 12 6 yard 3 9 8 yard 1 20 8 yard 2 22 8 yard 3 25 Commercial Lockbar 12 Commercial Enclosure 15 Totals 251 Table 5.3: Commercial Services Tonnage Month Trash Tons May-22 364.34 Jun-22 263.59 Jul-22 227.85 Aug-22 329.88 Sep-22 298.45 Oct-22 331.07 Nov-22 270.18 Dec-22 271.42 Jan-23 237.14 Feb-23 247.55 Mar-23 304.5 Apr-23 238.77 Totals 3,384.74 Monthly Average 282.06 16 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 13 of 49 5.01.03 Current Roll-off Services Roll-off services are currently provided to approximately 4 commercial customers. Table 5.4: Roll-Off Services Tonnage Month Trash Tons May-22 221.84 Jun-22 172.12 Jul-22 181.64 Aug-22 249.47 Sep-22 230.58 Oct-22 211.79 Nov-22 160.71 Dec-22 163.56 Jan-23 170.7 Feb-23 159.41 Mar-23 247.75 Apr-23 216.59 Totals 2386.16 Monthly Average 198.85 5.01.04 Special Collections and Services A. Municipal Locations. The current Provider provides, at no cost to the City, up to an aggregate number of thirteen (13) Containers (each up to eight cubic yards in size) to collect Municipal Solid Waste at certain municipal locations within the City once or twice per week, as needed. B. Special Events. The current Provider provides, at no cost to the City one (1) Roll-Off, with one (1) free haul of such Roll-Off, to collect Municipal Solid Waste at each of the City's two (2) special events held each calendar year; provided, that the City gives the Service Provider reasonable prior written notice of the dates of such special events. C. Annual Trash-Off. The current Provider provides, at no cost to the City, Roll-Offs to collect Municipal Solid Waste at the City's annual "Trash-Off” event. D. Sludge Services. The current Provider provides hauling and disposal services for sludge from the City's wastewater treatment plant; provided that the sludge is tested, accompanied by requisite documentation of the State of Texas, and meets the TCEQ's disposal guidelines. The City agrees to assist the Service Provider and, if necessary, agrees to adjust and regulate load weights to comply with the Texas Department of Transportation's weight guidelines. The current rate is $665.32 per haul of a 20-yard roll-off. 17 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 14 of 49 5.01.05 Current City Facility Services Solid waste services are currently provided at all City Hall facilities at no charge. Table 5.5: Current City Facility Services Description Address Container Collection Sanger Cemetery McReynolds Road 3CY 1 time/week City Offices & Fire Dept 2nd Street @ Bolivar Street 8 CY 1 time/week Sanger Depot & Crisis Center 100 N 5th Street 8 CY 2 times/week Electric Shop 1st Street @ Bolivar Street 6 CY 1 time/week Electric Department 302 Railroad Avenue 6 CY 2 times/week Railroad Park 600 Railroad Avenue 8 CY 2 time/week City Hall 502 Elm Street 3CY 1 time/week Waste Water 212 Railroad Avenue 3CY 1 time/week Senior Center 200 Bolivar Street 3CY 1 time/week Water Department - Sewer Plant 300 Jones Street 3CY 1 time/week Maintenance Yard 100 Cherry Street 8 CY 1 time/week Sports Park 2201 S Stemmons Highway 8 CY 1 time/week Warehouse 103 Bolivar 3CY 1 time/week 5.01.06 Current Service Rates Table 5.6: Current Residential and Commercial Service Rate Charges Current Residential Rates Current Commercial Rates Size Pickups/Week Rate Commercial Toter 2 $31.46 3 yard 1 $80.40 3 yard 2 $137.50 3 yard 3 $187.60 4 yard 1 $100.22 4 yard 2 $171.29 4 yard 3 $250.52 6 yard 1 $137.50 6 yard 2 $275.00 6 yard 3 $386.86 8 yard 1 $171.29 8 yard 2 $312.28 8 yard 3 $484.74 Commercial Lockbar 12 $12.82 Commercial Enclosure 15 $12.82 Size Pickups/Week Rate 95 Gallon Poly Cart 2 $19.13 65 Gallon Recycling Cart 1 Included above 18 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 15 of 49 Table 5.7: Current Roll-Off Rate Charges Current Commercial Roll-Off Rates Size Haul Delivery Daily Rent Disposal Dry Runs 20 Yard $ 401.95 $ 154.68 $ 5.12 $49.25/ton $104.91 30 Yard $ 401.95 $ 154.68 $ 5.12 $49.25/ton $104.91 40 Yard $ 401.95 $ 154.68 $ 5.12 $49.25/ton $104.91 Table 5.8: Current City Charges Current City Roll-Off Rates Size Haul Delivery Daily Rent Disposal 20 Yard $ 216.09 $ 62.56 $ 2.08 $28.64/ton 30 Yard $ 216.09 $ 62.56 $ 2.08 $28.64/ton 40 Yard $ 216.09 $ 62.56 $ 2.08 $28.64/ton Current City Sludge Rates Size Haul Sludge 20 CY Roll-off $ 665.32 5.02 SCOPE OF SERVICES A. Current residential and commercial service levels as described in all of section 5.0 B. Alternate service levels as described in the remaining sections of this RFP 5.02.01 Contract Term The term of service shall be five (5) years beginning January 1, 2024, with up to one (1) renewal term of five (5) years. The successful Proposer may prohibit the City from exercising an optional renewal term by providing written notice to the City of its election to reject a renewal term on or before eleven (11) months preceding the scheduled date of expiration of the initial term or the then current optional renewal term of the contract. If the successful Proposer does not provide such written notice to the City on or before eleven (11) months preceding the scheduled date of expiration of the initial term or the then current optional renewal term of the contract prohibiting the City from exercising the optional renewal term, the City may upon written notice to the successful Proposer not later than ninety (90) calendar days preceding the scheduled date of expiration of the initial term or the then current optional renewal term of the contract exercise such optional renewal term by such notice. This provision in no way limits the City’s right to terminate the contract at any time during the initial term or any optional renewal term thereof pursuant to the provisions in the contract. 5.02.02 Exclusive Services The successful Proposer shall have the exclusive right to provide all solid waste services to residential customers and commercial customers within the City. The exclusive right includes the provision of solid waste services to construction projects within the City. In addition, the successful Proposer shall have the exclusive right to provide all recycling services to residential customers. The successful Proposer shall have the non-exclusive right to provide recycling services to commercial customers and City facilities. The successful Proposer, not the City, shall be solely responsible for defending the rights granted to the successful Proposer herein against third parties. 19 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 16 of 49 5.02.03 Residential Service Alternatives A. Twice per week collection of solid waste materials in 90-96 gallon carts and yard waste in bags B. Once per week collection of solid waste materials in 90-96 gallon carts and yard waste in bags C. Once per week collection of recyclable materials in 90-96 gallon carts D. Once per week collection of bulky waste and/or solid waste up to 4 cubic yards E. Once per week collection of bulky waste in excess of 4 cubic yards a. Billing and collection of fees for item E by successful Proposer F. Additional cart fee a. Solid waste carts b. Recycling carts All services are to be provided on the same day of the week to each residential location. 5.02.04 Commercial Service Alternatives A. Solids Waste 96 Gallon Carts a. Twice per week collection of solid waste materials b. Once per week collection of solid waste materials B. Solid Waste 3CY, 4CY, 6CY, and 8CY dumpsters a. Once per week collection of solid waste materials b. Twice per week collection of solid waste materials c. Three times per week collection of solid waste materials C. Recycling CY, 4CY, 6CY, and 8CY dumpsters a. Once per week collection of recycling materials 5.02.05 Roll-off Service Alternatives A. Collection of solid waste materials by container size (i.e. 20 CY, 30 CY, and 40 CY with and without compactors), upon customer request. 5.02.06 City Facility Service Alternatives A. Once per week collection of solid waste materials at all City facilities B. Twice per week collection of solid waste materials at all City facilities C. Once per week collection of recyclable materials at all City facilities D. Solid waste and recyclable containers for City events, upon request E. Roll off containers by size, upon request 20 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 17 of 49 F. Additional items a. Municipal Locations. The successful Proposer will provide, at no cost to the City, up to an aggregate number of thirteen (13) Containers (each up to eight cubic yards in size) to collect Municipal Solid Waste at certain municipal locations within the City once or twice per week, as needed. b. Special Events. The successful Proposer will provide, at no cost to the City one (1) Roll-Off, with one (1) free haul of such Roll-Off, to collect Municipal Solid Waste at each of the City's two (2) special events held each calendar year; provided, that the City gives the Service Provider reasonable prior written notice of the dates of such special events. c. Annual Trash-Off. The successful Proposer will provide, at no cost to the City, up to twenty (20) Roll-Offs to collect Municipal Solid Waste at the City's two (2) annual "Trash-Off” events, with an aggregate of twenty (20) free hauls of such Roll-Offs each calendar year. d. Sludge Services. The successful Proposer will provide hauling and disposal services for sludge from the City's wastewater treatment plant; provided that the sludge is tested, accompanied by requisite documentation of the State of Texas, and meets the TCEQ's disposal guidelines. The City agrees to assist the Service Provider and, if necessary, agrees to adjust and regulate load weights in order to comply with the Texas Department of Transportation's weight guidelines. The current rate is $665.32 per haul of a 20-yard roll-off. 5.02.07 Disposal and Processing Services The successful Proposer shall have and maintain during the term hereof, adequate disposal and processing capacity for the City’s needs. All solid waste collected under the contract shall be disposed of at a disposal site properly authorized under all applicable federal, state, and local laws. All recyclable materials collected under the contract shall be processed at a processing facility properly authorized under all applicable federal, state, and local laws. The successful Proposer will be responsible for processing all recyclable materials collected from the City. The successful Proposer must process a minimum of ninety-five percent (95%) by weight of program recyclable materials collected per month. 5.02.08 Set-out Limits on Items Placed Curbside for Collection A. The Set-out limit for residential customers is defined as follows: all materials set-out are to be collected and shall be placed within 6 feet of the curbside (see Collection Location section below). B. The successful Proposer shall tag and leave items placed for collection that are in excess of the Set-out limit described in item A above. C. The successful Proposer shall promptly notify the City Finance Department of any address where tagged items are left, on or before 10:00 AM the following business day. 5.02.09 Collection Location A. Residential customers that are unable to place materials within 6 feet of curbside shall contact the City Finance Department to request an alternate collection location. The 21 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 18 of 49 successful Proposer agrees to assist Handicapped Residential Units with house-side collection of their Bags and Containers; provided, that the successful Proposer receives prior written notice from the Handicapped Residential Unit of such special need. The City shall be solely responsible for all other modifications and accommodations required by the Americans with Disabilities Act or any other applicable law or regulation in connection with the services provided hereunder to Single-Family Residential Units. 5.02.10 Collection Days and Schedule Collection shall be provided between 7:00 AM and 7:00 PM on scheduled service days. A. Residential Services 1. Shall be provided Monday through Friday, excluding holidays. 2. If a holiday (per Section 3.02.11) falls on a weekday that is a scheduled service day, collections for the holiday and each day thereafter will be delayed one day during that week, and Friday’s scheduled collection day will be delayed to Saturday that week. 3. The successful Proposer shall not change collection days or schedules to residential customers without written authorization from the City. B. Commercial, Roll-off, and City Facility Services 1. Shall be provided Monday through Saturday. 2. The City shall determine the collection schedule and days for all City facilities services. 3. Commercial services and roll-off services customers and the successful Proposer shall agree upon the collection schedule and days subject to no objection by the City. The successful Proposer shall provide the City route collection maps and container locations for residential and commercial customers. 5.02.11 Holidays The following shall be holidays for purposes of the contract: New Year's Day Martin Luther King, Jr. Day Memorial Day Independence Day Labor Day Thanksgiving Day Christmas Day The successful Proposer may decide to observe any or all of the above-mentioned holidays by suspension or service on the holiday, but the successful Proposer must meet its contractual obligations. 5.02.12 Missed Collections The successful Proposer shall notify the City by 4:00 PM of potentially missed collections when a street, portion of a route, or a complete route may not be completed before 7:00 PM. When the successful Proposer is notified of a missed collection the following procedures are required 22 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 19 of 49 as long as such notification does not conflict with GPS documentation of the successful Proposer’s attempt to provide services to the customer: A. Before 4:00 PM, the successful Proposer shall dispatch a truck and provide the collection before 7:00 PM on the same day. B. After 4:00 PM, the successful Proposer shall provide collection within the next 24 hours and inform all residents impacted by such missed collection of the time the corrective collection will be provided. C. After 4:00 PM preceding a holiday, the successful Proposer shall provide collection within the first three (3) hours of the day after the holiday. 5.02.13 Program Recyclable Materials The following recyclable materials are currently included in the residential recycling services: mixed waste paper (including corrugated cardboard, newspaper, office paper, junk mail, phone books, beverage packaging, cereal boxes, chipboard, envelopes, and magazines, etc.), steel and tin cans, aluminum cans, plastic containers labeled types 1 and 2. 5.02.14 Disaster Debris The City and the successful Proposer will negotiate the services including compensation related to debris resulting from an event or occurrence, such as but not limited to wildfires, storms, floods, fires, tornados, earthquakes, etc., determined by the City to have caused widespread destruction and distress and increased residential services tonnage by 20% or more from the average per residential customer of historical residential services tonnage for the same quarter for the prior three years. Collection and disposal or processing of all other disaster debris shall be provided by the successful Proposer at no additional charge. 5.02.15 Spills, Leaks, and Litter The successful Proposer shall exercise care to prevent spilling, leaks, and littering. The successful Proposer shall ensure all materials hauled are contained, tied, or enclosed to prevent spilling, leaking, and littering. The successful Proposer shall immediately pick up and clean up all spills, leaks, and litter resulting from successful Proposer’s vehicles, or by successful Proposer’s employees or subcontractor while performing services under the contract. Each vehicle shall be equipped with the proper tools to adequately clean up any spillage. 5.02.16 Vehicle Maintenance and Specifications All vehicles shall be kept in a clean and sanitary condition. Collection vehicles shall be painted in the successful Proposer’s color or color schemes. The vehicles shall be uniquely numbered, and the vehicle numbers shall be painted in a contrasting color, at least six inches high, on each side of each vehicle and the rear of the vehicle. No advertising shall be permitted other than the name and address of the successful Proposer. Collection vehicles shall be sufficient to provide the services specified. All vehicles used by management personnel, including route supervisors, shall be equipped with cell phones with voice mail so that they can be contacted by the City. Collection vehicles will be equipped with two-way communication devices so that the successful Proposer’s staff and driver may communicate during the route collection. In addition, collection vehicles will be equipped with backup cameras, spill kits, 23 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 20 of 49 and GPS tracking capability. If Proposer proposes to equip carts with radio frequency identification (RFID) tags, collection vehicles will be equipped with RFID tag readers. 5.02.17 Carts The successful Proposer will be responsible for the purchase, distribution, storage, ongoing repair, replacement, warranty issues, and other requirements related to carts. The Proposer shall purchase carts that meet the requirements set forth in the contract including, but not limited to, the following requirements: A. Carts must be colored to differentiate solid waste services from recycling services. Carts must be uniform in color. Colors must be approved by the City. B. Carts must be of high quality and durability with a ten-year warranty. C. Cart markings must be approved by the City. D. Carts may be equipped with passive RFID tags utilizing an ultra-high frequency (UHF) range. E. Recycling services carts must have full-color in-mold labels (as approved by the City) of recyclable materials included and excluded from the program, with a minimum size area of 100 square inches. F. Carts must comply with ANSI Standards Z245.30 and Z245.60 (shall be both Type B and Type G compliant). G. Carts must be equipped with a metal lift bar (replaceable if damaged). H. Carts must be either injection model with high density polyethylene (HDPE) or rotational molded with linear medium density polyethylene (MDPE). All plastic resin must be UV stabilized. The successful Proposer shall deliver a new solid waste cart and new recycling cart to each customer receiving services via cart before December 31, 2023. Upon request, the successful Proposer shall deliver new carts to new customers. The successful Proposer will be responsible for responding to requests from and delivering carts to customers who need a cart replacement for whatever reason. Carts shall be delivered no later than three (3) business days after notice. Used carts must be cleaned before reentry into the system and delivery to customers. Damaged carts shall be removed at the same time a replacement cart is delivered. Carts shall be provided with instructions for proper use, including any customer actions that would void manufacturer warranties. 5.02.18 Dumpsters, Roll-offs, and Compactors The successful Proposer will be responsible for the purchase, distribution, storage, ongoing repair, replacement, warranty issues, and other requirements related to dumpsters, roll-offs, and compactors owned by the successful Proposer. All dumpsters shall have lids that fully close. Dumpsters and roll- offs must be painted a uniform color, bear the name and telephone number of the successful Proposer, and bear a serial number coded for the dumpster or roll-off size. Dumpsters and roll-offs shall be painted at least once every 2-1/2 years and shall be steam cleaned at least once each year or as directed by the City. 24 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 21 of 49 The successful Proposer is responsible for removing graffiti from its dumpsters, roll-offs, and compactors. Collection drivers shall notify the successful Proposer at the end of each day of any dumpster, roll-off, or compactor containing graffiti. The successful Proposer shall remove any graffiti from its dumpsters, roll-offs, and compactors within five (5) business days of notification. Each dumpster, roll-off, and compactor of the successful Proposer is subject to inspection by the City and approval as to appearance and condition before placement at any City facility. A dumpster, roll-off, or compactor of the successful Proposer shall be reconditioned and repainted if necessary before being supplied to a City facility that had not used it earlier. If the City so requires, a dumpster, roll-off, or compactor shall be cleaned or repainted within seven (7) days. If appropriate to serve the City’s needs and/or locations, the City may require the successful Proposer to install and service a dumpster, roll- off, or compactor. Damage to dumpster, roll-off, or compactor on customers' premises is at the successful Proposer's risk, as between those parties and without affecting the risk or liability of others. The successful Proposer shall be responsible for the repair of all dumpsters, roll-offs, or compactors damaged due to the successful Proposer’s negligence. The successful Proposer shall repair or replace within one business day any dumpster, roll-off, or compactor that the City determines does not comply with applicable law or constitutes a health or safety hazard. 5.02.19 Successful Proposer’s Office The successful Proposer shall maintain an office or other facilities through which they can be contacted. It shall be equipped with sufficient telephones having local phone numbers and shall have a responsible person in charge and adequate competent persons available to answer the phone from 7:00 AM to 7:00 PM on regular collection days. When collection is postponed one day for the holiday schedule the successful Proposer’s customer service personnel must be available to answer phones on all days during which collection service is provided. An informative recording answering frequently asked questions and voicemail shall be available at all other hours. 5.02.20 Customer Service and Complaint Resolution The successful Proposer shall provide a single source contact/resource to receive City Finance Department requests and/or complaints. Such resource shall respond to the City within two (2) hours of initial outreach. The successful Proposer will be primarily responsible for customer service requests, complaints, and complaint resolution. The successful Proposer shall be the first point of contact for customers. The successful Proposer shall give each request and/or complaint prompt and courteous attention within 24 hours, excluding weekends and holidays. If the successful Proposer is unable to resolve a complaint within 24 hours, the successful Proposer will notify City and provide documentation to the City’s satisfaction explaining the reasons the complaint cannot be satisfied within 24 hours. The outcome of an unresolved complaint will be at the discretion of the City Finance Director or her/his designee. The successful Proposer shall maintain a log of complaints and shall provide the City every month, or upon request, copies of all complaints indicating the date and hour of the complaint, nature of the complaint, and the manner and timing of its resolution. 25 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 22 of 49 5.02.21 Education Information The successful Proposer shall be responsible for the publishing and distribution of public education information, in both hard copy and electronic version for use on City’s website, upon the initial award of the contract. The information should contain a list of materials to be collected, a list of materials that cannot be collected or items that will require a special fee-based pick-up, and how to prepare materials for residential solid waste and recycling service. Said information shall be provided to every new customer. The information shall be updated by the successful Proposer and mailed out to all customers after any changes in collection procedures. 5.02.22 Reporting The successful Proposer shall provide the following daily and monthly reports to the City. Reports shall be in a format approved by the City. Complete and accurate daily reports must be submitted to the City by 10:00 AM, CST each business day. Daily reports must contain the following information: A. Daily Call Log. Spreadsheets listing the calls received by date and time, type of call (missed collection, complaint, inquiry), and resolution. B. Unacceptable Set-out Lob. Spreadsheet of unacceptable set-outs by address and description of the reason. Complete and accurate monthly reports must be submitted to the City on or before the tenth (10th) of each month. Monthly reports must contain the following information: A. Amount of Solid Waste and Program Recyclable Materials Collected. Spreadsheet listing amounts (in tons/pounds) of solid waste and program recyclable materials collected by customer type. The spreadsheet must also include year-to-date totals. B. Customer List for Roll-off Services. Identify each by address and level of service, name, and contact information. C. Billing and Revenue Documentation. Documentation justifying the successful Proposer’s billings and revenue derived by the successful Proposer for services within the City. D. Summary of motor vehicle accidents or moving violations involving the successful Proposer’s vehicles. Identify vehicle, employee, and description of the violation. E. Set-out Rate and Participation Rate Information. If Proposer proposes to equip carts with RFID tags, a spreadsheet listing set-out and participation rates by service by route. The spreadsheet must also include year-to-date average rates. 5.02.23 Billing & Customer List A. Residential Services a. The City will be responsible for customer billing and collection, in accordance with the selected service alternatives. 26 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 23 of 49 B. Commercial or Roll-off Services a. The successful Proposer will be responsible for customer billing and collection, in accordance with the selected service alternatives. 5.02.24 Franchise Fee For the right and privilege of using the City’s public rights-of-way to provide exclusive services per the contract, the successful Proposer, on the first day of each month during the term of the contract, will pay the City a franchise fee equal to six percent (6%) of gross receipts resulting from the operation of the services within the City and will email a report to the Finance Director detailing the franchise fee calculation. The City may increase or decrease the franchise fee with ninety (90) calendar days’ written notice. All fees proposed in Form 4 exclude Franchise Fees. 5.02.25 Performance Bond Upon the execution of this contract, the successful Proposer shall make, execute, and deliver to the City a good and sufficient performance bond in a form approved by the City to secure the full, complete, and faithful performance of the terms and conditions of this contract. The Surety shall be a surety company duly authorized to do business in the State of Texas, having an “A” or better rating by A.M. Best or Standard and Poors, included on the list of surety companies approved by the Treasurer of the United States of America, and acceptable to the City. The successful Proposer shall pay all premiums chargeable for the Performance Bond. The performance bond shall be valid and non-cancelable for a period of one year. Thereafter, the successful Proposer must renew or obtain a new performance bond each year of the contract. Each performance bond must be valid and non-cancelable and comply with the requirements of this contract. The successful Proposer shall provide the City with a renewed or new performance bond on the 1st day of November of each contract year. For the initial contract year, the performance bond must be equal to the estimated amount of the initial twelve (12) calendar months of fees to be paid to the successful Proposer by the City and customers as estimated by the City. For subsequent years, the performance bond must be equal to the actual amount of the prior twelve (12) calendar months of fees paid to successful Proposer by the City and customers. 5.02.26 Insurance The successful Proposer shall be solely responsible for any insurance required under the terms of the contract, including, but not limited to, payment of premium and deductibles whether or not the City is an insured under the policy, and for any additional insurance it deems necessary. City does not and shall not carry insurance policies covering the successful Proposer. The successful Proposer shall procure and maintain, during the term of the contract and any extensions thereof, the types of insurance and coverages that comply with the insurance requirements shown in the attached Section 7. The successful Proposer must notify City in writing at least thirty (30) days prior to any non-renewal of or material change in the insurance coverage(s) required by this contract. 27 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 24 of 49 The successful Proposer shall ensure that the insurance coverage required under the contract is obtained and maintained by the successful Proposer to cover its work hereunder. The successful Proposer shall be held responsible for any modification, deviation, or omissions in the insurance requirements. City shall retain the right, at any time, to review coverage, form, and amount of insurance coverage. The procuring of the required policy or policies of insurance shall not be construed to limit the successful Proposer’s liability to fulfill the indemnification provisions and the requirements under this contract. Notwithstanding said policy or policies of insurance, the successful Proposer shall be obligated for the full and total amount of any damages, injury, or loss caused by the action or inaction of the successful Proposer in connection with this contract. All insurance certificates shall be received and approved by City before the successful Proposer will be allowed to commence or continue work. Notice of accident (occurrence) and claim shall be given to the insurance company and City as soon as practicable after notice to the insured of any incident (occurrence) or claim. The obligations of the successful Proposer pursuant to this section shall survive the expiration or termination of this contract. Failure to comply with any term of this section is a breach of this contract and may result in the termination of this contract. 5.02.27 Administrative Charges The successful Proposer understands that if it does not timely perform its obligations pursuant to the terms of the contract or violates any provision of the contract, the City will suffer damages that are difficult to determine and adequately specify. The successful Proposer agrees, in addition to any other remedies available to the City, that the City may withhold payment from Contractor in the amounts specified below as administrative charges for failure of the successful proposer to fulfill its obligations. The following acts or omissions shall be considered a breach of the contract and the City may require payment by the successful proposer of the charges set forth for each act: A. Failure to complete all collections between 7:00 a.m. and 7:00 p.m.: $1,000 per route. B. Missed collection: $50 per missed collection in excess of two (2) missed collections per day. A missed collection occurs when a customer reports a missed collection, the address was not reported by the successful proposer as an unacceptable set-out, and the successful proposer cannot provide data demonstrating collection vehicle traveled on the street and collections occurred on the street. C. Missed residential unit block: $500 per incident the successful proposer failing to pick up material on a block containing residential units. A missed residential unit block is where three (3) residential units on one side of a street between cross streets, or an entire cul-de-sac report a missed collection. A missed residential unit block occurs when the addresses reporting missed collections were not reported by the successful proposer as unacceptable set-outs and the successful proposer 28 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 25 of 49 cannot provide data demonstrating collection vehicle traveled on the street and collections occurred on the block. D. Failure to correct a missed collection as specified in the contract: $25 per occurrence per day. E. Failure to clean up spill as specified in the contract: $200 per incident per day. F. Failure to provide collection at the same customer two (2) or more times within a thirty-day (30) period: $50 per occurrence over one (1) occurrence. G. Failure to distribute unacceptable set-out notice in accordance with the contract: $20 per occurrence. H. Failure to submit an accurate report in the specified format, as required by the contract: $200 per report per calendar day. I. Failure to submit an accurate accounting (i.e. invoice, quarterly and annual reports, and/or complaint reports in the specified format): Non-payment until an accurate monthly accounting is submitted. J. Failure to respond to any customer complaint in accordance with the contract: $100 per incident per calendar day. K. Failure to be prepared to perform services on or after the commencement date: $3,000 per calendar day. L. Commingling of materials in violation of the contract: $1,000 per incident. M. Disposal of recyclable materials in a landfill prior to being processed as recyclables: $2,000 for each incident. The city may impose administrative charges when the City’s designated representative determines that performance consistent with the provisions of the contract has not occurred. The City’s designated representative shall notify the successful proposer in writing or electronically of each act or omission under the terms of the contract reported to or discovered by the City or its designee. It shall be the duty of the successful Proposer to take whatever steps or action may be necessary to remedy the cause of the complaint. The city may deduct the full amount of any such charges from any payment due to the successful Proposer. The remedy available to City under this paragraph shall be in addition to all other remedies which the City may have under law, at equity, or pursuant to the terms of the contract. The successful Proposer’s obligations to make payments for such charges under this section occurring prior to the expiration or termination of the contract shall survive termination or expiration of the contract. 5.02.28 Termination of Contract In the event of a failure by the successful Proposer to perform any material provision of the contract, the City shall give written notice of such breach to the successful Proposer along with a thirty (30) day notice (the “cure period”) to correct such breach. The City may terminate the contract after such a cure period if the successful Proposer has not adequately corrected such breach in accordance with the contract and the City so notifies the successful Proposer in writing of such termination action. Upon the effective date of termination as contained in the notice, the successful Proposer shall, unless 29 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 26 of 49 the notice directs otherwise, immediately discontinue all Services in connection with the contract. At such time, the City shall pay the successful Proposer only for charges and fees in which Services performed on or before such termination date. In the event such termination occurs, the City may exercise its rights under the successful Proposer’s performance bond and procure the services of another waste services provider to complete the work covered under the contract for the remainder of the time period covered by the initial term of the contract or extension thereof. If the City determines, and notifies the successful Proposer, that such default poses an immediate threat to the health or safety of any person or to any property interest, and if the successful Proposer has not cured such default within twenty-four (24) hours after receipt of such notice, the City shall have the right to perform or cause to be performed all or part of the work necessary to cure such default. In the event that the City performs such work, or caused it to be performed, the successful Proposer shall compensate the City for the cost thereof. The City shall have the right to deduct any such compensation due to the City from any sums otherwise due and owing to the successful Proposer. The City may withhold all or part of any sums which would otherwise be due to the successful Proposer, but that relate to such default, either until such time as such default is cured or if such default cannot be cured, forever. In the event that the successful Proposer shall fail to perform any of the material provisions of the contract, the City shall promptly notify the successful Proposer of its noncompliance, stating with particularity the facts relating thereto and the period of time the successful Proposer has to comply. Thereafter, if the event or condition is not corrected or otherwise made to comply with the terms of the contract within the period of time specified by the City, the same is a violation of the contract, subject to the non-compliance penalty set forth in the contract. This remedy is hereby expressly made cumulative of other remedies available to the City, at law or in equity, for the breach of the contract. 30 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 27 of 49 SECTION 6: PROPOSAL FORMAT AND CONTENT The Proposal must contain ALL of the required paperwork. ALL forms must be completed in their entirety and ALL questions must be answered directly on the form and/or expanded onto additional pages when necessary. ALL forms requiring signatures must be signed. References to company brochures and flyers will not be accepted as an answer. The Proposal must be organized into tabbed and labeled sections in the required order. A. Cover Sheet and Mandatory Forms B. Proposed Approach C. Experience D. Financial Stability and Exceptions to RFP E. Financial Proposal 6.01 COVER LETTER AND REQUIRED FORMS Proposers shall submit a cover letter containing a statement that the proposal is a firm offer for one hundred eighty (180) days from the due date. The cover letter shall include a signature from a representative authorized to legally bind the proposing company as identified in the Form 2 Statement of Organization Form. In addition, the Proposer shall complete the following items: 1. Conflict of Interest Questionnaire (Section 8) 2. HB 1245 Statement and Form W-9 (Section 9) 3. Verification (Section 10) 4. Statement of Organization (Section 11) 5. References (Section 12) 6.02 PROPOSED APPROACH 6.02.01 Overview of Approach to Collection Services Proposer shall provide an overview of the proposed approach for providing the following collection services: A. Residential Services a. Solid Waste b. Recycling c. Bulky Waste B. Commercial Services C. Roll-off Services D. City Facility Services 31 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 28 of 49 6.02.02 Residential Services Collection Route Schedules and Maps Proposer shall include a proposed route schedule and maps for residential services. 6.02.03 Overview of Approach to Disposal and Processing Services Proposer shall provide an overview of the proposed approach for the disposal of solid waste and bulky waste and the processing of recyclable materials collected via the program. For processing of recyclable materials, Proposer shall identify recyclable materials to be included in residential recycling services and description of residential public education and outreach efforts to be performed by Proposer. Proposer shall list the name, location, and distance from the City for the facilities proposed for use in providing the disposal and processing services specified in the contract. 6.02.04 Equipment Proposer shall describe the following equipment: A. Collection Vehicles. The descriptions shall include: a. Make, model, and age of each proposed collection vehicle. Photos of each type of collection vehicle proposed should be included. b. Number of front line and spare collection vehicles to be used to perform each service. c. Any future collection equipment to be acquired and a timeline for the acquisition of new collection equipment. d. Number of personnel needed for each collection crew to conduct each service. e. Proposed maintenance program for all collection vehicles used to perform services, including a proposed frequency of cleaning collection vehicles. B. Carts. The description shall include, at a minimum, the manufacturer, capacity, and color. Photos of the proposed carts should be included. If requested, Proposer shall provide a sample of the carts to the City. C. Dumpsters and Roll-offs. The descriptions shall include, at a minimum, the manufacturer, color, capacities, and logos on the containers. Photos of the proposed dumpsters and roll-offs should be included. Proposer shall describe maintenance program for all dumpsters and roll-offs used to perform services, including a proposed frequency of cleaning dumpsters and roll-offs. 6.02.05 Customer Service Policies and Procedures Proposers shall include a description of customer service policies and procedures. Proposers shall include the following: A. Description of customer complaint resolution procedures including customer follow-up to ensure the complaint is resolved to the customer’s satisfaction. B. Description of missed collections resolution procedures including ensuring missed collections are resolved in accordance with the RFP. C. Proposed customer call center information including number of customer service personnel, turn-around time on customer service center location, customer service phone policies, a contingency plan in case of a strike, and any other pertinent and applicable information. 32 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 29 of 49 6.02.06 Customer Billing Policies and Procedures Proposer shall describe the policies and procedures to be used for billing services to be performed by the successful Proposer. Provide a detailed description of your customer billing program, including billing cycles, collection policy, and practices. 6.02.07 Disaster Management Plan Disasters resulting in significant volumes of debris may occur in the City. Timely removal of this material is crucial and expected of the successful Proposer. Describe in detail the proposed response to disasters. Include timelines to deploy labor and equipment; staging areas; utilization of subcontractor services; anticipated volumes that could be collected per day; etc. 6.02.08 Transition Plan Proposer shall describe its proposed strategies to ensure a smooth transition from the current provider to the successful Proposer. The proposed transition plan is of critical importance to the City. In the transition plan, Proposer must describe the following: A. Individual or group of individuals that will oversee the execution of the transition plan. B. Proposed approach, including equipment, personnel, and schedule, for delivering equipment (carts, dumpsters, compactors, etc.) to customers. Proposers shall also describe how the delivery of equipment will be conducted in coordination with the removal of the existing equipment used by the customers. C. Detailed schedule for the transition. D. Proposed strategies for customer communication regarding the transition of service providers. 6.03 EXPERIENCE 6.03.01 Key Personnel Experience Provide a list of personnel in key positions (General Manager Hauling, Dispatcher, Route Supervisor, Customer Service Manager, etc.). For each key personnel, Proposer shall provide the following information: A. Description of direct experience in solid waste and recycling services; B. List of industry training and certifications; C. Office location of personnel; and D. Amount of time per week personnel will be dedicated to the City contract. For positions that are currently unfilled, identify minimum qualifications for that position, office location of personnel, and amount of time per week personnel will be dedicated to the City contract. 6.03.02 Company Experience Briefly describe in a narrative format the Proposer’s experience that is relevant to this RFP. Provide references for communities for which the Proposer is currently providing similar services. Proposer shall provide a minimum of three (3) references using the forms in Section 12. 33 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 30 of 49 6.03.03 Contracts Ended Prior to the Expiration Date Identify any contracts in Texas, Arkansas, Oklahoma, Arizona, Louisiana, New Mexico, and state of Proposer headquarters in the past five (5) years that have ended prior to the expiration date due to any of the following reasons: A. Assignment of the contract to another vendor; B. Change of control of the contract to another vendor; C. Termination of the contract; D. Mutual agreement with the customer to discontinue service; and/or E. Other reasons. 6.03.04 Other Performance History Information The Proposer must list any claims against a bid bond or performance bond and the results or any contractual defaults or termination over the last five (5) years in Texas, Arkansas, Oklahoma, Arizona, Louisiana, New Mexico, and the state of the Proposer headquarters. The Proposer shall also provide a list of all enforcement actions taken against it during the last five (5) years by any regulatory agency such as, but not limited to, the United States Environmental Protection Agency, the Texas Commission on Environmental Quality or any local enforcement agency in Texas, Arkansas, Oklahoma, Arizona, Louisiana, New Mexico, and state of Proposer headquarters. The list shall include the name of the regulatory agency and the date of enforcement action. The Proposer shall inform the City if it has had a permit, license, entitlements, or business licenses that have been revoked or suspended in the last five (5) years in Texas, Arkansas, Oklahoma, Arizona, Louisiana, New Mexico, and state of Proposer headquarters. 6.04 FINANCIAL STABILITY AND EXCEPTIONS TO RFP 6.04.01 Financial Stability Proposers shall submit the following information related to financial stability: A. Briefly describe in a narrative format the Proposer’s financial condition, and results of operations for the last two fiscal years including known facts that could affect future performance. If the company is publicly held, it is acceptable to attach the SEC-required Management Discussion. B. Provide audited financial statements for the last two fiscal years. If publicly held, provide financial statements for the local operation that will provide service under the contract. For publicly held companies, also provide SEC 10K filings for the parent organization. C. Disclose whether Proposer or parent company has ever filed for bankruptcy. 6.04.02 Exceptions to RFP Proposer shall identify any and all exception(s) to this RFP. If Proposer identifies an exception (s), Proposer shall clearly identify the exception(s), state the reason for such exception(s), and how Proposer believes City may benefit from same. For each exception noted, Proposer shall provide alternative language for the City’s consideration. Any exceptions to the RFP will be considered and included in the City’s evaluation. If nothing is provided in this section, it will be assumed that the formal proposal is for the services as specifically described in this RFP. 6.05 FINANCIAL PROPOSAL Proposer shall complete Section 13 Financial Proposal. 34 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 31 of 49 SECTION 7: INSURANCE REQUIREMENTS The successful Respondent shall procure and maintain in force during the terms of any contract awarded pursuant to this RFP, at its own cost, the following minimum insurance coverage: A. Workers’ Compensation and Employers’ Liability: i. State of Texas: $1,000,000 Each Accident ii. Employer’s Liability: $100,000 Each Accident $500,000 Disease-Policy Limit $100,000 Disease-Each Employee iii. Waiver of Subrogation B. Commercial General Liability: i. Bodily Injury & Property Damage General Aggregate Limit: $1,000,000 ii. Personal & Advertising Injury Limit $500,000 iii. Each Occurrence Limit $1,000,000 The policy shall be on an Occurrence Form and include the following coverage: Premises Operations; Personal and Advertising Injury; Medical Payments; Liability assumed under an Insured Contract; Independent Contractors; and Broad Form Property Damage. Coverage provided should be at least as broad as found in Insurance Services Office (ISO) form CG0001. C. Commercial Automobile Liability Limits: i. Bodily Injury & Property Damage Combined Single Limit: $1,000,000 ii. Medical Payments: $ 5,000 Per Person iii. Uninsured/Underinsured Motorist $100,000 Prior to the execution of any awarded contract by the City, the successful Proposer shall forward Certificates of Insurance to the City Secretary. The required insurance policies shall be procured and maintained in full force and effect for the duration of the awarded contract. Certificate Holder shall be the City of Sanger at 502 Elm Street, Sanger Tx 76266 All such insurance policies will be primary and written on forms acceptable to the City without the right of contribution from any other insurance coverage maintained by the City. All policies required herein shall be written by insurance carriers with a rating of A.M. Bests of at least “A-” or “Excellent” and a financial size category of at least VII. Prior to the execution of the contract, the Successful Proposer shall furnish the City with an original certificate of insurance and a copy of the amendatory endorsements, including, but not limited to, the additional insured endorsement, evidencing that such coverages are in effect. Such certificate: (i) will also provide for thirty (30) days prior written notice of cancellation to the City; (ii) shall show the City as an additional insured on all policies other than Worker’s Compensation; and, (iii) shall contain waivers of subrogation in favor of the City (excluding Worker’s Compensation policy) except with respect to the sole negligence or willful misconduct of the City. 35 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 32 of 49 In addition, the following requirements apply:  The Commercial General Liability policy must include Contractual Liability coverage specifically covering the Successful Proposer’s Indemnification of the City herein.  Coverage must be provided for Products/Completed Operations.  The policy shall also contain a cross Liability/Severability of Interests provision assuring that the acts of one insured do not affect the applicability of coverage to another insured.  The cancellation clause on the Successful Proposer’s insurance certificate must conform to the endorsement. Any conflict between the endorsement and the certification is a breach of the contract and can result in retraction by the City of the award of the contract to the Successful Proposer or termination of the contract.  The Successful Proposer shall file proof of insurance meeting the requirements as set forth herein with the City. The Successful Proposer shall be solely responsible for assuring that all proofs of insurance filed with the City are current. Failure of the Successful Proposer to fully comply with the requirements set forth herein regarding insurance is a breach of the contract and the City may terminate the contract with the Successful Proposer.  No changes are to be made to these specifications without the City’s prior written approval.  The City’s approval of the insurance shall not relieve or limit the liability of the Successful Proposer for any damages arising from the Successful Proposer’s performance or nonperformance of Services provided herein.  All policies required herein, unless specific approval is given by the City, are to be written on an occurrence basis and the insurers shall agree to waive all right of subrogation against the City.  Each policy shall apply separately to each insured against whom claim is made and suit is brought, except with respect to the limits of the insurer’s liability. 36 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 33 of 49 SECTION 8: CONFLICT OF INTEREST QUESTIONNAIRE 37 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 34 of 49 38 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 35 of 49 SECTION 9: HB 1295 AND FORM W-9 9.01 HB 1295 The Texas Legislature passed House Bill 1295 that went into effect January 1, 2016. It requires contracts that are approved by municipalities to have a notarized ethics statement submitted to the City. Here is the link to the website with the video explaining how to do this. https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm Please submit your completed and notarized form with your response packet. 9.02 FORM W-9 Please submits a copy of a W-9 for your company with your response packet. 39 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 36 of 49 SECTION 10: VERIFICATION I, (Person name), the undersigned representative of (Company or Business name, hereafter referred to as Company) being an adult over the age of eighteen (18) years of age, after being duly sworn by the undersigned notary, do hereby depose and verify under oath that the company named above: 6. Shall not boycott Israel at any time while providing products or services to the City. This requirement does not apply to companies with fewer than ten full-time employees; or contracts that are less than $100,000.00. 7. Shall not boycott energy companies during the term of this contract, as those terms are defined by Chapter 2274, Government Code. This requirement does not apply to companies with fewer than ten full-time employees; or contracts that are less than $100,000.00. 8. Shall not discriminate during the term of this contract against a firearm entity or firearm trade association, as those terms are defined by Chapter 2274, Government Code. This requirement does not apply to companies with fewer than ten full-time employees; or contracts that are less than $100,000.00. 9. A person or business that contracts with or who seeks to contract with the City shall not do business with Iran, Sudan, or a foreign terrorist. Date Signature of Company Representative ON THIS THE day of , 20 , personally appeared , the above-named person, who after by me being duly sworn, did swear and confirm that the above is true and correct. NOTARY SEAL Notary Signature 40 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 37 of 49 SECTION 11: STATEMENT OF ORGANIZATION PROPOSER Full Name of Business: Principal Business Address: Principal Phone Number: Local Business Address: Local Business Contact Person: Local Business Phone: Local Business Fax: Local Business E-Mail: Type of Organization: Tax ID #: License #: Provide names of authorized representative(s) of the Proposer who has legal authority to bind the Proposer in contractual obligations: (a) (b) (c) SUBCONTRACTORS List of all firms participating in this submittal. Name Address Area of Responsibility (a) (b) (c) (d) 41 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 38 of 49 SECTION 12: REFERENCES Reference #1 Proposer Name: Reference Information Entity Name: Address: Contact Name: Telephone: Title: Email: Experience Overview Dates of Service: from to # of Residential Customers: # of Commercial Customers: Experience/Project Description: 42 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 39 of 49 Reference #2 Proposer Name: Reference Information Entity Name: Address: Contact Name: Telephone: Title: Email: Experience Overview Dates of Service: from to # of Residential Customers: # of Commercial Customers: Experience/Project Description: 43 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 40 of 49 Reference #3 Proposer Name: Reference Information Entity Name: Address: Contact Name: Telephone: Title: Email: Experience Overview Dates of Service: from to # of Residential Customers: # of Commercial Customers: Experience/Project Description: 44 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 41 of 49 SECTION 13: FINANCIAL PROPOSAL Franchise fees are not to be included in the collection fees listed in this Section. RESIDENTIAL SERVICES Form 13.1: Solid Waste Services for Residential Units (Prior to awarding the contract, the City will determine if collections shall be once or twice per week) Solid Waste Services Proposed Monthly Fee per Residential Unit Option 1: Twice per week Option 2: Once per week Form 13.2: Other Services for Residential Units Proposed Monthly Fee Recycling Services per Residential Unit Once per week Bulky Waste Services Proposed Monthly Fee per Residential Unit Once per week Additional Carts Proposed Monthly Fee per Residential Unit Additional Solid Waste Cart Additional Recycling Cart Form 13.3: Recyclable Materials 45 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 42 of 49 Please list all items to be accepted as recyclable materials (for all customer classes): 46 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 43 of 49 COMMERCIAL SERVICES Form 13.4: Proposed Monthly Collection Fees for Solid Waste Services for Commercial Units via Cart or Dumpster Weekly Collection Frequency Type & Size 1 2 3 Cart N/A 3 CY Dumpster 4 CY Dumpster 6 CY Dumpster 8 CY Dumpster . Form 13.5: Proposed Collection Fees for Extra Pick Ups for Solid Waste Services via Dumpster Type & Size Fee per Pick Up Cart 3 CY Dumpster 4 CY Dumpster 6 CY Dumpster 8 CY Dumpster Form 13.6: Weekly Commercial Recycling Services Type & Size Fee per Pick Up Cart 3 CY Dumpster 4 CY Dumpster 6 CY Dumpster 8 CY Dumpster 47 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 44 of 49 ROLL-OFF SERVICES Form 13.7: Proposed Fees for Solid Waste Services via Roll-off Roll-off Type and Size Container Rental Fee (Per Month) Initial Delivery Fee (One-Time) Collection Fee (Per Pull) Disposal Fee (Per Ton) Form 13.8: Proposed Other Fees for Dumpsters and Roll-offs Service Proposed Fee Per Item Lockbar Per Month Set of Casters Per Month Opening and Closing of Enclosures Per Month CITY SERVICES Form 13.9: City Sludge Service Description Haul Delivery Daily Rent Disposal Sludge 20 CY Roll-off Form 13.10: City Roll-Off Service (Should the City require roll-off services in addition to those services provided for in Section 3.01.04) Description Haul Delivery Daily Rent Disposal 20 CY Roll-off 30 CY Roll-off 40 CY Roll-off 20 CY Roll-off 30 CY Roll-off 40 CY Roll-off 20 CY Roll-off with Compactor 30 CY Roll-off with Compactor 40 CY Roll-off with Compactor 48 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 45 of 49 EXHIBIT A AGREEMENT FOR SOLID WASTE AND RECYCLING SERVICES This Agreement for Solid Waste and Recycling Services (this "Agreement") is made and entered into by and between the City of Sanger Texas, a home-rule Texas Municipal Corporation ("the City") and ______________________________, a Texas Limited Liability Corporation ("Contractor"), a Texas Limited Liability Corporation located at ___________________________ (collectively, “the Parties”). WITNESSETH: WHEREAS, the City seeks to contract for Solid Waste and Recycling Services for the benefit of the citizens of the City of Sanger; and WHEREAS, the City has received a proposal from ______________________________ to provide Solid Waste and Recycling Services; and WHEREAS, the City has selected the bid from ______________________________ as the best value for the providing Solid Waste and Recycling Services; NOW, THEREFORE, in consideration of the promises and mutual covenants and agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Contractor and the City, agree as follows: 1. Scope of Services. Contractor shall be bound by the terms and conditions described in the Request for Proposal issued by the City attached hereto and incorporated herein by reference as Exhibit A and Contractor’s response (“the Proposal” i.e. ______________________________) attached hereto and incorporated herein by reference as Exhibit B. 2. Commencement of Operations. Contractor shall begin immediately upon receipt of a fully executed copy of this Agreement and the receipt of a Notice to Proceed from the City of Sanger. 3. Compensation. In consideration for the work performed by Contractor, the City to the amounts and manner indicated on the documents attached hereto and incorporated herein as Exhibits A & B. 4. WARRANTY AND DEGREE OF CARE. CONTRACTOR WARRANTS THE MATERIALS USED SHALL BE FREE OF DEFECT OR FAILURE FOR A PERIOD OF AT LEAST ONE YEAR FROM THE DATE OF COMPLETION OF THE SERVICES AND THAT ALL SERVICES PROVIDED BY CONTRACTOR SHALL BE PERFORMED IN A GOOD AND WORKMANLIKE MANNER IN ACCORDANCE WITH THE SPECIFICATIONS OF THIS AGREEMENT AND IN ACCORDANCE WITH THE DEGREE OF CARE AND SKILL ORDINARILY EXERCISED UNDER SIMILAR CIRCUMSTANCES BY COMPETENT CONTRACTORS IN TEXAS APPLICABLE TO THE TYPE OF SERVICES CONTEMPLATED HEREUNDER. IN THE EVENT ANY DEFECT IS DISCOVERED OR DEVELOPS IN MATERIALS PROVIDED BY CONTRACTOR OR WORK PERFORMED BY CONTRACTOR 49 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 46 of 49 WITHIN ONE YEAR AFTER COMPLETION OF THE SERVICES, CONTRACTOR WILL REPAIR OR REPLACE ANY SUCH MATERIALS OR WORK SO THAT IT IS NOT DEFECTIVE AND MEETS THE REQUIREMENTS OF THIS AGREEMENT. 5. Confidentiality and Ownership of Documents. Contractor shall keep confidential information and documents provided by the City confidential and shall not release them without the consent of the City. Upon completion of the Renovations and payment of the Compensation owed, all documents created for the City pursuant to this Agreement shall be the property of the City and shall be provided to the City by Contractor. 6. INDEMNIFICATION. CONTRACTOR SHALL INDEMNIFY, DEFEND, SAVE AND HOLD HARMLESS THE CITY AND ITS OFFICERS, EMPLOYEES AND AGENTS FROM AND AGAINST ALL CAUSES OF ACTION, FINES, JUDGMENTS, LOSSES, CLAIMS, DAMAGES, LIABILITIES, COSTS AND EXPENSES, INCLUDING REASONABLE ATTORNEYS' FEES AND EXPENSES, JOINT OR SEVERAL, WHETHER THEY BE FOR PERSONAL INJURY OR PROPERTY DAMAGE OR ANY OTHER TYPE OF CLAIM, WHICH MAY BE ASSERTED AGAINST ANY OF THEM ARISING OUT OF OR RELATED TO (I) ANY ACTION BY CONTRACTOR OR ITS AGENTS IN THE CARRYING OUT OF THE SERVICES DURING THE TERM OF THIS AGREEMENT; (II) THE NEGLIGENCE OR WILLFUL ORWANTON MISCONDUCT OF CONTRACTOR OR ITS AGENTS; (III) ANY VIOLATION OF ANY REQUIREMENT APPLICABLE TO CONTRACTOR OR ITS AGENTS UNDER ANY FEDERAL, STATE, OR LOCAL LAW OR REGULATION,(IV) THE FAILURE OF CONTRACTOR TO PERFORM SPECIFIED DUTIES UNDER THIS AGREEMENT, OR (V) THE BREACH OF THIS AGREEMENT BY CONTRACTOR, EXCEPT IN EACH CASE TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL OR WANTON MISCONDUCT OF THE CITY. OBLIGATIONS UNDER THIS SECTION SHALL NOT BE LIMITED TO THE LIMITS OF COVERAGE OF INSURANCE MAINTAINED OR REQUIRED TO BE MAINTAINED BY CONTRACTOR UNDER THIS AGREEMENT AND WILL NOT BE LIMITED BY COMPARATIVE NEGLIGENCE STATUTES. THIS SECTION SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT. 7. Termination. Either Party may terminate this Agreement by providing ____ (xx) days written notice to the other Party. 8. Non-Discrimination. Contractor hereby agrees to refrain from any activity in the performance of this Agreement that discriminates against any person or persons based upon race, color, creed, national origin, religion, sex, or communicable disease, in accordance with present federal and state laws. 9. Independent Contractor. Contractor shall be fully responsible for its employees, including meeting all state and federal requirements for minimum wage, income tax withholding, workers' compensation, insurance, and all city, state, and federal requirements governing employer/employee 50 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 47 of 49 relations. Contractor hereby certifies that it shall be and is in compliance with all such regulations, laws and requirements. Contract shall also require its subcontractor to provide the same certification to the City. 10. No Third Party Benefit. Nothing herein expressed or implied is intended, or shall be construed, to confer upon or give to any person or entity, other than the parties, any right or remedy under or by reason of this Agreement. 11. Governing Law and Venue. This Agreement shall be governed by the laws of the State of Texas as to all matters, including but not limited to matters of validity, construction, effect and performance, without regard to conflict of law principles. All actions regarding this Agreement shall be in a court of competent subject matter jurisdiction Denton County, Texas. 12. Severability. If any clause or provision of this Agreement is held invalid, illegal or unenforceable under present or future federal, state or local laws, including but not limited to the City Code of the City, then and in that event it is the intention of the parties hereto that such invalidity, illegality or unenforceability shall not affect any other clause or provision hereof and that the remainder of this Agreement shall be construed as if such invalid, illegal, or unenforceable clause or provision was never contained herein. 13. Notices/Insurance/Bonds. All notices, bonds, consents, demands, insurance, requests and other communications which may or are required to be given hereunder shall be in writing and shall be deemed duly given if personally delivered or sent by United States mail, registered or certified, return receipt requested, postage prepaid, to the addresses set forth hereunder or to such other address as the other party hereto may designate in written notice transmitted in accordance with this provision. In case of the City, to: City of Sanger Attention: City Manager P.O. Box 1729 Sanger, TX 76266 With courtesy email copy to jnoblitt@sangertexas.org In case of Contractor, to: ______________________________ Address ______________________________ City, State Zip ______________________________ With courtesy copy email to: Entire Agreement. This Agreement and its exhibits contain the entire agreement between the parties with 51 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 48 of 49 respect to the subject matter hereof and supersede any and all other discussions, agreements and understandings, either oral or written, between the parties with respect to the subject matter hereof. In the event of a dispute under this agreement, the applicable documents will be referred to for the purpose of clarification or for additional detail in the following order of precedence: (1) this Agreement; (2) the Request for Proposal; (3) the Response to the Request for Proposal from the Contractor. 14. Amendment. No amendment to this Agreement shall be effective unless in writing signed by both parties. 15. Compliance with Laws. Contractor shall comply with all applicable federal, state, and local laws applicable to the renovations to be performed under this Agreement. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in duplicate originals and effective as of the day of , 202_ (“the Effective Date”). CONTRACTOR: ______________________________ LLC By: ______________________________ Name: ______________________________ Title: ______________________________ THE CITY OF SANGER: By: ______________________________ Name: ______________________________ Title: ______________________________ Approved as to Form _________________________ Hugh Coleman City Attorney City of Sanger Attest: _______________________ Kelly Edwards City Secretary City of Sanger 52 Item 1. City of Sanger, Texas Solid Waste & Recycling Services RFP Page 49 of 49 EXHIBIT LIST: EXHIBIT “A” – City of Sanger Request for Proposal for Solid Waste and Recycling Services EXHIBIT “B” – ______________________________ Response to Request for Proposal for Solid Waste and Recycling Services 53 Item 1. CITY COUNCIL COMMUNICATION DATE: August 21, 2023 FROM: Ryan Nolting, Director of Parks, Recreation & Facility Maintenance AGENDA ITEM: Discussion on the repairs to the Sullivan Senior Center. SUMMARY:  Jan. 2023, Seniors called to report a leak in the back room of the building.  Jan. 2023, Built Right Construction was called out and would not make the necessary repair due to the conditions of the roof framing.  Mar. 2023, contracted with Halff Inc. for an assessment of the condition of the Senior Center.  April 6,2023, with the recommendations form Halff Inc., staff closed the back portion of the building.  May 12, 2023, staff received the Structural Report from Halff Inc.  May 18, 2023 requested Halff Inc. for their opinion of probable cost for the repairs to the Center.  May 25, 2023 staff met with Seniors at the Sullivan Senior Center to discuss the structural report. FISCAL INFORMATION: Budgeted: NA Amount: NA GL Account: NA RECOMMENDED MOTION OR ACTION:  NA ATTACHMENTS:  Halff’s Senior Center Structural Report 54 Item 2. May 12, 2023 Ryan Nolting Director, Parks and Recreation City of Sanger, Texas 301 Bolivar St Sanger, TX 76266 Re: Sullivan Senior Center AVO: 37449.004 Dear Mr. Nolting: Per your request, Halff visited the Sullivan Senior Center (SSC) at 200 Bolivar St in Sanger on March 20. The intent of the visit was to observe the condition of the roof framing throughout the building and the floor framing at the rear or south end of the building. According to you, the roofing was due for replacement and the selected contractor had concerns about the condition of the structure that needed to be addressed before attempting the work. In addition, the SSC staff wanted to move equipment into the rear of the building so there was a need to confirm the capacity of the floor in that area. General Observations The building is a single-story structure located at the southwest corner of Bolivar St and N 2nd St in Sanger, TX. (See Photo 1) Photo 1 - Sullivan Senior Center looking southwest 55 Item 2. Ryan Nolting City of Sanger, Texas May 12, 2023 Page 2 The structure’s age is unknown. In plan, the building is roughly 24 feet wide and 88 feet long, measured east to west and north to south, respectively. The perimeter walls of the building are constructed of masonry (mortared stone and brick), with a stucco veneer on the exterior. The interior space is separated into two large rooms by another masonry wall about 54 feet from the front of the building. The front room measures roughly 22 feet wide by 54 feet long, while the rear room is approximately 24 feet wide by 32 feet long. The floors are covered in carpeting; the floor in the front room appears to be a concrete slab while the rear room appears to be supported on timber framing. Acoustic ceiling tiles are suspended from the structure throughout the building. Access to the timber roof and ceiling framing was achieved via ladder while reaching above the acoustic ceiling tiles, making accurate measurements of individual members difficult, especially at the roof level. The acoustic ceiling tiles visible to occupants hide portions of an old ceiling, including tiles, light fixtures, and electrical wiring. Some of the old tiles are in reasonable condition, but many have fallen completely or in part from the ceiling framing. (See Photo 2) Given the obviously advanced age of the building, the old ceiling tiles could contain asbestos. It is highly recommended that these tiles be tested for the presence of asbestos, especially prior to the removal or repair of any of the roof and ceiling framing. Photo 2 - View above acoustic ceiling in front room 56 Item 2. Ryan Nolting City of Sanger, Texas May 12, 2023 Page 3 Floor Observations As mentioned above, the rear of the building has a carpeted floor that is likely supported on timber. A small mechanical closet along the masonry wall that divides the rear of the building from the front provides a limited view of the floor sheathing, but little else. There is no apparent access to the crawlspace that likely exists beneath the floor, so the actual construction of the floor system was not observed and remains unknown. If access is made to this crawlspace later, Halff would be pleased to observe the floor system and report on its capacity and condition. Until then, its capacity remains unknown. Roof and Ceiling Framing Observations The building roof is framed in timber and is connected to additional timber framing that supports the ceiling. The main framing elements are supported by the perimeter masonry walls. Roof joists appear to be 2x8 dimensional lumber spaced 24 inches apart. The joists are supported at mid-span by the ceiling framing resulting in 11-foot spans at the front of the building and 12-foot spans at the rear of the building. The ceiling at the front of the building appears to be supported by 2x14 dimensional lumber at 16 inches on center, while the ceiling at the rear of the building appears to be supported by 2x8 dimensional lumber at 24 inches on center. Posts constructed of single 2x4s transfer load from the roof to the ceiling framing. (See Photo 3) The condition of the framing varies depending on location. At the rear of the building, the joists and decking show significant discoloration and deterioration in places, especially at the southwest corner. It is apparent that water and insects have penetrated the roofing system over time, causing damage to both the roof and ceiling framing. In addition, the ceiling tiles (both levels) show signs of dripping and ponding water. Photo 3 - View between ceiling framing and roof joists in back room 57 Item 2. Ryan Nolting City of Sanger, Texas May 12, 2023 Page 4 Analysis The roof and ceiling framing has been analyzed to determine the capacity of the structure. In our analysis, we considered the self-weight of the structure (i.e., its own weight), wind loads, and roof live loads, which account for the use or repair of the structure. (This would include the temporary storage of repair materials.) When we considered these loads in combinations appropriate to the local building code, the 2018 International Building Code, we determined that the framing at the rear of the building is significantly overstressed and needs to be replaced. In fact, there was such a concern for this framing that we sent you a memo on April 5 outlining our concerns and recommending that the rear of the building be closed until the roof and ceiling framing could be replaced. The portion of the roof and ceiling framing at the front of the building is not such a concern that the building be completely closed, but we do recommend that this framing also be replaced. The reason is that this framing is not adequate for the roof live loads anticipated during the roofing repair. This means that the front portion of the roof should NOT be accessed or used for the storage of any materials, including repair materials. Access to the roof should be tightly controlled and limited until such time as the roof and ceiling framing are replaced. Photo 4 - View of damaged/deteriorated roof framing along south wall of rear room 58 Item 2. Ryan Nolting City of Sanger, Texas May 12, 2023 Page 5 Conclusion The Sullivan Senior Center is an aging structure with roof and ceiling framing that has stood the test of time. However, the framing is showing its age and needs to be replaced. (See Photos 4 and 5) As stated previously, we recommend that the rear of the building remain closed for all purposes (except for limited storage) until the roof and ceiling framing are replaced. In addition, we recommend that the roof at the front of the building be closed to all access until the roof and ceiling framing in this area are replaced. If you have any questions, please feel free to contact me at (214) 346-6284. Sincerely, HALFF Eric S. Christiansen, PE Structural Team Leader Photo 5 - View of damage/deterioration along ceiling framing from water intrusion at southwest corner of rear room 59 Item 2. Proclamation: Suicide Prevention Awareness Month in the City of Sanger 2023 WHEREAS addressing the prevention of suicide needs of children, youth, and adults today is fundamental to the future of the City of Denton; and the citizens of the City of Denton value their overall health and life and that of their families and fellow citizens a nd are proud to support observances such as Suicide Prevention Awareness Month; and WHEREAS there is an average of 130 suicide deaths per day in the US; one suicide death every two hours in our state; and 10% of adults experience suicidal thoughts in the US; and 1 and 5 Texas high school students reported seriously thinking about suicide and 20% making a plan and 12% making an attempt; and WHEREAS the need for comprehensive, coordinated mental health and suicide prevention services for individuals and families places upon our community is a critical responsibility. There is a strong body of research that supports specific tools that all Americans can use, to better handle challenges, and protect their overall health and well - being, and each citizen, local business, school, government agency, healthcare provider, and faith-based organization shares the weight of suicide concerns and has a responsibility to promote mental wellness, recovery, and support prevention efforts; and WHEREAS the Denton County Behavioral Health Leadership Team, Denton County MHMR Center, Denton County Zero Suicide Task Force, Denton County LOSS Team, and Denton Regional Suicide Prevention Coalition are effectively addressing the mental health and suicide prevention needs of children, youth, adults, and families in our community; and it is appropriate that a month should be set apart each year for the direction of our thoughts toward suicide prevention education and the support of treatment and recovery. THEREFORE, BE IT RESOLVED that I, Thomas Muir, Mayor of the City of Sanger, on behalf of the entire City Council, do hereby proclaim: September 2023 as Suicide Prevention Awareness Month, and I call upon our citizens and all agencies and organizations interested in helping to prevent suicide to unite this month in the observance of such exercises as will commit the people of Sanger to increase awareness and understanding of suicide, the steps our citizens can take to help prevent suicide, and the need for appropriate and accessible services for all people experiencing suicidal thoughts. IN WITNESS WHEREOF, I have hereunto set my hand and caused the Official Seal of the City of Sanger to be affixed this 21st day of August, 2023. ____________________________ Thomas E. Muir, Mayor 60 Item 3. PROCLAMATION United Way of Denton County WHEREAS, United Way of Denton County celebrates 70 years of impact across Denton County in 2023; and WHEREAS, by working together with supporters and collaborators across Denton County, United Way of Denton County improves access to education, economic mobility, and health & mental health for over 42,000 residents annually; and WHEREAS, United Way of Denton County leads the effort to close gaps and open opportunities for every person in Denton County and works with a network of nonprofits, governments, businesses, and donors to respond to our neighbor’s immediate needs and seek out better solutions for larger community-wide issues. NOW, THEREFORE, I, Thomas E. Muir, Mayor of the City of Sanger, on behalf of the entire City Council hereby declare the month of September 2023 to: LIVE UNITED and ask you to join United Way of Denton County in calling on all residents of the City of Sanger to LIVE UNITED, to Give, Advocate, and Volunteer as we LIVE UNITED to build a Healthier Denton County for all of us. IN WITNESS WHEREOF, I have hereunto set my hand and caused the Official Seal of the City of Sanger to be affixed this 21st day of August 2023. ____________________________ Thomas E. Muir, Mayor 61 Item 4. CITY COUNCIL COMMUNICATION DATE: August 21, 2023 FROM: Kelly Edwards, City Secretary AGENDA ITEM: Consideration and possible action on the minutes from the August 7, 2023, meeting. SUMMARY: N/A FISCAL INFORMATION: Budgeted: N/A Amount: $0.00 GL Account: N/A RECOMMENDED MOTION OR ACTION: Approve the minutes from the August 7, 2023, meeting. ATTACHMENTS: City Council minutes 62 Item 6. City Council Minutes 08-07-2023 Page 1 of 6 CITY COUNCIL MEETING MINUTES AUGUST 07, 2023, 6:00 PM CITY COUNCIL REGULAR MEETING HISTORIC CHURCH BUILDING - 403 N 7TH STREET, SANGER, TEXAS CALL THE WORK SESSION TO ORDER AND ESTABLISH A QUORUM Mayor Muir called the work session to order at 6:01 p.m. COUNCILMEMBERS PRESENT Mayor Thomas Muir Mayor Pro Tem, Place 2 Gary Bilyeu Councilmember, Place 1 Marissa Barrett Councilmember, Place 3 Dennis Dillon Councilmember, Place 4 Allen Chick Councilmember, Place 5 Victor Gann COUNCILMEMBERS ABSENT None STAFF MEMBERS PRESENT: City Manager John Noblitt, City Secretary Kelly Edwards, City Attorney Hugh Coleman, Finance Director Clayton Gray, Marketing and Civic Engagement Director Donna Green, and Director of Human Resources and Special Projects Jeriana Staton. DISCUSSION ITEMS 1. Presentation of Utility Rate Study. Director Gray introduced Chris Ekrut, NewGen Strategies & Solutions, who provided a presentation and overview of the Utility Rate Study. Discussion ensued regarding phasing in increases for Water and Electric, a one-time increase for Sewer, the 5 year Capital Projects Plan, future power agreement, variable costs of electric power, spreading out the Electic increases, and use of Fund Balance monies. 63 Item 6. City Council Minutes 08-07-2023 Page 2 of 6 OVERVIEW OF ITEMS ON THE REGULAR AGENDA No discussion. ADJOURN THE WORK SESSION There being no further business, Mayor Muir adjourned the work session at 6:51 p.m. CALL THE REGULAR MEETING TO ORDER AND ESTABLISH A QUORUM Mayor Muir called the regular meeting to order at 7:01 p.m. COUNCILMEMBERS PRESENT Mayor Thomas Muir Mayor Pro Tem, Place 2 Gary Bilyeu Councilmember, Place 1 Marissa Barrett Councilmember, Place 3 Dennis Dillon Councilmember, Place 4 Allen Chick Councilmember, Place 5 Victor Gann COUNCILMEMBERS ABSENT None STAFF MEMBERS PRESENT: City Manager John Noblitt, City Secretary Kelly Edwards, City Attorney Hugh Coleman, Finance Director Clayton Gray, Director of Development Services Ramie Hammonds, Marketing and Civic Engagement Director Donna Green, Director of Human Resources and Special Projects Jeriana Staton, and Interim Police Chief Tyson Cheek. INVOCATION AND PLEDGE Councilmember Bilyeu gave the Invocation. The Pledge of Allegiance was led by Councilmember Barrett. 64 Item 6. City Council Minutes 08-07-2023 Page 3 of 6 CITIZENS COMMENTS No one addressed the Council. CONSENT AGENDA 2. Consideration and possible action on the minutes from the July 17, 2023, meeting. 3. Consideration and possible action on the minutes from the July 24, 2023, meeting. Motion to approve made by Councilmember Chick, Seconded by Councilmember Gann. Voting Yea: Councilmember Barrett, Councilmember Bilyeu, and Councilmember Dillon. Motion passed unanimously. ACTION ITEMS 4. Consideration and possible action on a Preliminary Plat of Lot 1, Block A of the Glenn Polk Addition, being 9.936 acres, located in the City of Sanger, and generally located on the west side of I-35 approximately 670 feet south of Belz Road. Director Hammonds provided an overview of the item stating the applicant will build a new center at the location. Motion to approve made by Councilmember Bilyeu, Seconded by Councilmember Barrett. Voting Yea: Councilmember Chick, Councilmember Dillon, and Councilmember Gann. Motion passed unanimously. 5. Consideration and possible action on a Final Plat of Lot 1, Block A of the Glenn Polk Addition, being 9.936 acres, located in the City of Sanger, and generally located on the west side of I-35 approximately 670 feet south of Belz Road. Motion to approve made by Councilmember Bilyeu, Seconded by Councilmember Barrett. Voting Yea: Councilmember Chick, Councilmember Dillon, and Councilmember Gann. Motion passed unanimously. 6. Consideration and possible action on a Preliminary Plat of lots 1-12 Block A, Lots 1-7 Block B, Block C, and Open space lot 5x, 8x, 13x of Lakeside Estates Addition, being 68.028 acres, located in the City of Sanger’s ETJ, and generally located on the north side of McReynolds Road approximately 120 feet north east of the intersection of McReynolds Road and FM 455. Director Hammonds provided an overview of the item stating the homesites will be 2 to 3 acres and that the applicant has not satisfied all the comments. 65 Item 6. City Council Minutes 08-07-2023 Page 4 of 6 Motion to deny made by Councilmember Bilyeu, Seconded by Councilmember Gann. Voting Yea: Councilmember Barrett, Councilmember Chick, and Councilmember Dillon. Motion passed unanimously. 7. Consideration and possible action on a Preliminary Plat of lot 1 Block A, of RF & Sons Addition, being 1.102 acres, located in the City of Sanger, and generally located on the south side of Chapman Drive approximately 45 feet west of the intersection of Chapman Drive and Sable Creek Blvd. Director Hammonds provided an overview of the item stating the applicant has not satisfied all the comments. Motion to deny made by Councilmember Bilyeu, Seconded by Councilmember Dillon. Voting Yea: Councilmember Barrett, Councilmember Chick, and Councilmember Gann. Motion passed unanimously. 8. Consideration and possible action on Ordinance 08-15-23 amending the Fee Schedule, Appendix A, Article 4.00 Utility Related Fees, Section 4.306 Water Service Rates, Section 4.307 Sewer Service Rates, and Division 4400 Electric, Section 4.403 Electric Service Rates and reserving Section 4.404 through Section 4.406; providing for the repeal of all ordinances in conflict; providing for a severability clause; and providing a savings clause; authorizing publication; and establishing an effective date. Director Gray provided an overview of the item with the effective date of October 1, 2023, of the rates as proposed. Discussion ensued regarding prior water and wastewater rates and the 2009 Electric rate increase. Motion to approve made by Councilmember Chick, Seconded by Councilmember Barrett. Voting Yea: Councilmember Bilyeu, Councilmember Dillon, and Councilmember Gann. Motion passed unanimously. 9. Consideration and possible action on Ordinance 08-16-23 amending the Fee Schedule, Appendix A, Article 4.00 Utility Related Fees, Section 4.101 Utility Reconnection Fees, Section 4.102 Tampering Fee, Section 4.103 Utility Service Fees; providing for the repeal of all ordinances in conflict; providing for a severability clause; and providing a savings clause; authorizing publication; and establishing an effective date. Director Gray provided an overview of the revisions to the language in the Code of Ordinances. 66 Item 6. City Council Minutes 08-07-2023 Page 5 of 6 Motion to approve, made by Councilmember Bilyeu, Seconded by Councilmember Gann. Voting Yea: Councilmember Barrett, Councilmember Chick, and Councilmember Dillon. Motion passed unanimously. 10. Consideration and possible action on Ordinance 08-17-23 amending the Code of Ordinances, Chapter 13 Utilities, Article 13.1600 Utility Billing Procedures, Section 13.1602 When Bills Become Delinquent, Section 13.1603 Service to Be Discontinued when Delinquent, and Section 13.1606 Waiver of Late Fees and Penalties; providing for the repeal of all ordinances in conflict; providing for a severability clause; and providing a savings clause; authorizing publication; and establishing an effective date. Director Gray provided an overview of the revisions to the language in the Code of Ordinances. Discussion ensued regarding the one-time waiver of the late fee for customers. Motion to approve made by Councilmember Dillon, Seconded by Councilmember Gann. Voting Yea: Councilmember Barrett, Councilmember Bilyeu, and Councilmember Chick. Motion passed unanimously. 11. Consideration and possible action on Resolution No.2023-13 to take a record vote adopting the proposed tax rate contained in the City’s proposed 2023 budget as the City’s proposed 2023 tax rate to be considered for adoption at a public hearing held for that purpose; establishing the date, time, and place for public hearings on the proposed 2023-24 budget and tax rate; and providing for the publication as provided by the Texas Property Tax Code. Director Gray provided an overview of the item, the dates to conduct the public hearings, and the adoption of the Fiscal Year 2023-2024 budget. Motion to approve the Resolution and to conduct the public hearings for the FY 2023- 2024 budget and tax rate on August 14, 2023, at 6:00 p.m. I further place a proposal to adopt the FY 2023-2024 budget and tax rate of $0.689747 per $100 of valuation on the August 21, 2023, City Council agenda made by Councilmember Bilyeu, Seconded by Councilmember Barrett. Voting Yea: Councilmember Chick, Councilmember Dillon, and Councilmember Gann. Voting Nay: None Motion passed unanimously. FUTURE AGENDA ITEMS Councilmember Barrett requested a breakdown of the roads maintained by TxDOT, the City, or are considered Private streets. 67 Item 6. City Council Minutes 08-07-2023 Page 6 of 6 EXECUTIVE SESSION Pursuant to the Open Meetings Act, Chapter 551, the City Council Will Meet in a Closed Executive Session in Accordance with the Texas Government Code: Section 551.074. PERSONNEL MATTERS For deliberations regarding the appointment, employment, evaluation, reassignment, duties, discipline or dismissal of a public officer or employee. - City Manager Council convened into executive session at 7:45 p.m. RECONVENE INTO REGULAR SESSION Council reconvened into open session at 10:43 p.m. No action taken. ADJOURN There being no further business, Mayor Muir adjourned the meeting at 10:44 p.m. _______________________________ Thomas E. Muir, Mayor ______________________________ Kelly Edwards, City Secretary 68 Item 6. CITY COUNCIL COMMUNICATION DATE: August 21, 2023 FROM: Jim Bolz, Public Works Director AGENDA ITEM: Consideration and possible action on property acquisition for betterment of I-35 Water and Sewer Relocation. SUMMARY:  This betterment will provide availability for water and sewer service on the West side of I-35, to the Northern limit of our water CCN  Cost are estimated, may not be final FISCAL INFORMATION: Budgeted: YES Amount: $42,415.00 GL Account: These funds are not reimbursable RECOMMENDED MOTION OR ACTION: Staff recommends approval ATTACHMENTS:  Easement Acquisition 69 Item 7. Individual Project Order Number 061322300-02 -I-35 Utility Relocations for TxDOT CSJ 0195-02-074 rev 1/22 Page 1 of 3 Describing a specific agreement between Kimley-Horn and Associates, Inc. (the Consultant), and the City of Sanger, Texas (the Client) in accordance with the terms of the Master Agreement for Continuing Professional Services dated __February 9, 2022___________ which is incorporated herein by reference. Identification of Project: 061322300-02 I-35 Utility Relocations for TxDOT CSJ 0195-02-074 Project Understanding: This project consists of providing additional professional engineering services: Specific scope of basic Services:Easement Acquisition Services ____ Task 4 – Easement Acquisition The Consultant will provide the following professional services as specified in the “Project Understanding” section of this project: ENGINEER will coordinate with the Real Estate Agent to aid in property acquisition services for up to five (5) hours per parcel. ENGINEER will perform the following services for this task: 1.ENGINEER’s Real Estate Agent shall provide appraisals for proposed easements on up to three (3) parcels for the proposed lines. Appraisals will be approved by the City prior to beginning negotiations with property owners. The appraisals will be prepared by State Certified Appraisers in accordance with the Uniform Standards of Professional Appraisal Practice Act (USPAP). The appraisals will be suitable for use in condemnation proceedings, if necessary. 2.ENGINEER’s Real Estate Agent shall engage an independent Appraisal Reviewer to submit an Appraisal Review to accompany any appraisal completed for up three (3) parcels. 3.Provide property negotiation services for up to three (3) parcels for the proposed line as follows: a.The offer to purchase the properties will be based on the appraisals as indicated above. The City will establish the value to be used in negotiation and the range of negotiating authority to be given to the right-of-way agent. ENGINEER’s Real Estate Agent will provide the services of qualified right-of-way agents to secure the required right-of-way for the project. The right-of-way agents will provide each property owner a copy of The Texas Landowner Bill of Rights, but will NOT be required to provide negotiation services under the Uniform Relocation and Acquisition Act (Uniform Act). b.ENGINEER’s Real Estate Agent will negotiate on behalf of the City and utilize conveyance documents and other necessary forms as prescribed by the City. ENGINEER’s Real Estate Agent will provide a good faith effort to acquire the rights- of-way through a negotiation process, which will generally consist of three (3) contacts with the property owner, or his authorized representative. A maximum of five (5) total contacts will be provided to reach an agreement with the property owner, or to determine that further negotiations will be non-productive and that eminent domain actions will be necessary to acquire the property. If absentee owners are involved, the negotiations may be conducted via telephone, fax, or by mail. If the schedule for acquisition of the right-of-way or other factors arise, which make it expedient, travel outside the project area to meet with the absentee owners may be desirable. If such 70 Item 7. Individual Project Order Number 061322300-02 -I-35 Utility Relocations for TxDOT CSJ 0195-02-074 rev 1/22 Page 2 of 3 events arise, the travel must be specifically authorized by the City. If such travel is authorized, the expenses involved, including the agent’s services, will be considered additional services. c.The initial offer made to the property owner will be based on the value authorized by the City. All counter-offers by the property owner, along with ENGINEER’s Real Estate Agent recommendations will be presented to the City for consideration. The City must establish and recommend such counter offers before ENGINEER’s Real Estate Agent will be authorized to agree to the requested changes. All monetary offers made to the property owners will be within the limits authorized by the City in the various stages of the negotiation. d.After reaching an agreement with the landowner on the consideration and all other terms of the transaction, ENGINEER’s Real Estate Agent will forward to the City a Memorandum of Agreement (M/A) executed by the property owner to be ratified by the City. This M/A sets forth the compensation and any other terms and conditions agreed upon. The City will be responsible for obtaining the City’s ratification and for returning the ratified M/A to ENGINEER’s Real Estate Agent. ENGINEER’s Real Estate Agent will then inform the Title Company that the parcel is ready for closing. 4.ENGINEER’s Real Estate Agent will coordinate contacts with the CITY to deliver any payments to the Title Company prior to closing. 5.This Scope of Services assumes that costs for Title Commitments, Title Policies and recording fees will be purchased by the City through the assistance of the Real Estate Agent. The amount paid for the Title Policies will not exceed premium amounts set by the Texas Department of Insurance and agreed upon in advance between the City and the Title Company. Any additional Title Company services such as recording fees shall be agreed upon in advance between the City and the Title Company. ENGINEER’s Real Estate Agent will review liens or other exceptions reported in the Title Commitment. ENGINEER will coordinate the location and the effect of any utility easements. ENGINEER will report the results of the Title Commitment to the City, recommending the disposition of the exceptions. The decision whether the reported exceptions are acceptable or must be eliminated will be the responsibility of the City. Any action required to clear title is not included in the Scope of Work for this project, and if required, will be considered Additional Services. 6.ENGINEER’s Real Estate Agent will coordinate and attend all closings at the Title Company. 7.ENGINEER’s Real Estate Agent will confirm that the Title Company records all documents at the Cooke County Courthouse after closing. 8.ENGINEER’s Real Estate Agent will confirm that the Title Company forwards copies of all recorded documents to the City. Additional Services if required: Any services not specifically provided for in the above scope, as well as any changes in the scope requested by the Client, will be considered additional services. Additional Services will be compensated on a reimbursable basis at the then current hourly rates. Consultant will not perform any Additional Services without Client’s prior approval. Services provided by Client: Client shall review and provide comments for various offer packets so Consultant can adhere to the project schedule. 71 Item 7. Individual Project Order Number 061322300-02 -I-35 Utility Relocations for TxDOT CSJ 0195-02-074 rev 1/22 Page 3 of 3 Schedule:Consultant will begin services upon receipt of Notice to Proceed. Deliverables: See items listed above under Scope of Services. Method of compensation: Kimley-Horn will perform the Services on a labor fee plus expense basis. Labor fee will be billed on an hourly basis according to our then-current rates. See below for Task budget breakdowns. Direct reimbursable expenses such as express delivery services, fees, air travel, and other direct expenses will be billed at 1.15 times cost. A percentage of labor fee will be added to each invoice to cover certain other expenses such as telecommunications, in-house reproduction, postage, supplies, project related computer time, and local mileage. Administrative time related to the project will be billed hourly. All permitting, application, and similar project fees will be paid directly by the Client. Based on current information, Kimley-Horn estimates that labor fees will be approximately $42,415. Fee estimates in this Agreement are for general budgeting purposes only. Actual fees may be less or more than the estimates. Service Items Anticipated Units/Parcels Unit/Parcel Rate Fee Amount Title and Closing Services 3 $575.00 $1,725.00 Negotiation Services 3 $5,175.00 $15,525.00 Appraisal Service (Land Only)3 $4,830.00 $14,490.00 Appraisal Review Services 3 $2,185.00 $6,555.00 Engineer Assistance (hours)15 $275.00 $4,120.00 TOTAL SERVICES FEE $42,415.00 All permitting, application, and similar project fees will be paid directly by the Client. Fees and expenses will be invoiced monthly based, as applicable, upon the percentage of services performed or actual services performed and expenses incurred as of the invoice date. Payment will be due within 25 days of your receipt of the invoice. Other special terms of Individual Project Order:None. ACCEPTED: CITY OF SANGER, TEXAS KIMLEY-HORN AND ASSOCIATES, INC. BY:BY: John Noblitt John R. Atkins. P.E. TITLE:City Manager TITLE:Vice President DATE:DATE:07/26/2023 72 Item 7. CITY COUNCIL COMMUNICATION DATE: August 21, 2023 FROM: Ramie Hammonds, Development Service Director AGENDA ITEM: Consideration and possible action on a Master Agreement and Individual Project Order with Kimley Horn for the design and construction plan for the sound wall to be located on the I-35 corridor through the City of Sanger. SUMMARY:  Kimley Horn was selected as the firm to perform the design and construction plan.  The City needs to enter into a contract with Kimley Horn for the work to be performed.  This item will give the City Manager the authority to execute a contract between the City of Sanger and Kimley Horn. FISCAL INFORMATION: Budgeted: No Amount: $30,500 GL Account: 004-30-6534 RECOMMENDED MOTION OR ACTION: Staff recommends APPROVAL. ATTACHMENTS Kimley Horn Professional Services Agreement Exhibit A Scope and Fee Schedule 73 Item 8. 74 Item 8. 75 Item 8. 76 Item 8. 77 Item 8. CITY COUNCIL COMMUNICATION DATE: August 21, 2023 FROM: Ryan Nolting, Parks & Recreation Director AGENDA ITEM: Consideration and possible action on authorizing staff to issue an RFP for Conceptual Design for a New Downtown Park. SUMMARY:  Staff is seeking approval for an RFP for Conceptual Design for a New Downtown Park.  Utilization of design services will allow for a more comprehensive and customized plan for a future downtown park  The Sanger Development Corporation (4B) has allocated funding for the conceptual design services  Approved Recommendation of the Sanger 2040 Comprehensive Plan. FISCAL INFORMATION: Budgeted: Yes Amount: GL Account: 76-6117 RECOMMENDED MOTION OR ACTION: Staff recommends approval to move forward on the RFQ for Conceptual Design for a New Downtown Park. ATTACHMENTS:  City Council Communication  New Downtown Park RFQ  Exhibit A Professional Services Agreement 78 Item 9. CITY OF SANGER, TEXAS REQUEST FOR QUALIFICATIONS (RFQ) RFQ-2023-02 CONCEPTUAL RENDERINGS FOR NEW DOWNTOWN PARK PROPOSAL DUE DATE: 12:00 Noon Central Time Tuesday, Sept. 19, 2023 ISSUED BY: CITY OF SANGER PARKS & RECREATION DEPARTMENT 79 Item 9. 2 SECTION 1. INTRODUCTION: Purpose The City of Sanger invites qualified firms to provide conceptual renderings for currently undeveloped parkland in the Downtown area of Sanger. The park will be a centerpiece and a great addition to the Sanger Downtown area. SECTION 2. COMMUNITY PROFILE: City Overview The City of Sanger, Texas, with a population of approximately 9,000 is located in North Texas within Denton County and located along both sides of I-35 and north and south of FM 455. Sanger is comprised of nearly twelve (12) square miles and is neighbored by Denton to the south, Valley View to the north, Lake Ray Roberts and Pilot Point to the east, and an unincorporated area to the west. Major transportation corridors include I-35 and FM 455. The city is comprised of a mix of residential, commercial, and industrial land uses as well as a vibrant downtown area. SECTION 3. PROJECT BACKGROUND: The City recently adopted a new comprehensive plan called Sanger 2040 Comprehensive Plan. This plan is meant to be a guideline for future development. The existing park network provides Sanger residents with access to a range of active and passive green space. The development of a new downtown park provides what families are looking for in downtown while creating a catalyst for adjacent new commercial development. At the same time, strengthen the opportunity for outdoor activity and education. SECTION 4. SCOPE OF SERVICES AND DELIVERABLES: The City invites qualified firms to submit a proposal for providing the City of Sanger two conceptual renderings for approximately 6 acres of currently undeveloped park land in the downtown area as follows:  Scenario I – A conceptual rendering of the proposed park centered around a “railroad theme”. The location of the new park is in close proximity to an active railroad and the City would like to see a concept embracing railroad -themed elements. The City is also seeking an estimated cost for such proposed park improvements.  Scenario II – The firm should propose one other conceptual rendering (not railroad theme related). The City is also seeking an estimated cost for such proposed park improvements. Other information: The proposed site includes an existing vacant structure (large warehouse). The City is 80 Item 9. 3 planning for the structure to stay and would like to see it repurposed and incorporated into the new park concept; however, it is willing to consider alternatives that do not include preserving the building. Additionally, the City owns a piece of property adjacent to the proposed site that currently includes an old lumber yard and is in the process of determining whether it needs to be made part of the proposed park. The Respondent should incorporate this additional site into the proposed scenarios. SECTION 5. INFORMATION PROVIDED BY THE CITY: Maps and the Sanger 2040 Comprehensive Plan can be found on the City’s website. SECTION 6. TIMELINE: It is expected that a contract will be executed between the City and the selected consulting firm within forty-five (45) days of the due date for proposals. It is anticipated that the project will be completed within six (6) months from the signing of the contract. SECTION 7. SUBMISSION DETAILS: Statement of Qualifications The consultant shall submit a Statement of Qualifications. The statement, at minimum, should address each of the specific topics listed below (additional information may be included). Failure to include any of the following requested information may be cause for the proposal to be considered incomplete and thus rejected. 1. Provide a cover letter on firm letterhead and identify the project manager and key staff involved along with contact information for the project manager. 2. Written presentation of the qualifications of the firm and their understanding of the work to be performed. 3. List of services that will be provided. 4. Availability, credentials, and related experience of the firm and key staff with similar studies, preferably with municipal governments. 5. Provide copies of the resumes of the proposed project manager and key staff. Provide information on specific experiences with successful outcomes in conducting the process and making presentations to public bodies. 6. Include with their proposals a list of at least three (3) current references for whom comparable work has been performed in the past three (3) years, specifically citing work in communities similar to Sanger. This list shall include the municipality’s name, person to contact, address, telephone number, email address, and a brief, but adequately detailed description of the work performed. 7. Provide complete or partial examples of work similar in nature to this project. 81 Item 9. 4 8. List of anticipated sub-contractors and/or partners, if any, and their availability, credentials, and related experience. 9. Explain the methodology you propose to successfully perform the services outlined in the Scope of Work. 10. Include a statement on the anticipated time frame based on the scope of work as listed in this RFQ. Report on prior experience in delivering services within the prescribed time frame. SECTION 8. SUBMISSION INSTRUCTION STATEMENT OF QUALIFICATIONS MUST BE RECEIVED BY 12:00 NOON (CENTRAL TIME) SEPTEMBER 19, 2023 SUBMISSIONS RECEIVED AFTER THE DEADLINE WILL NOT BE CONSIDERED Four (4) printed copies of the Statement of Qualifications in a sealed envelope should be sent to: Ryan Nolting Director of Parks & Recreation City of Sanger 502 Elm Street Sanger, TX 76266 Phone: 940-458-2059 Email: rnolting@sangertexas.org The proposals will be publicly recognized at the same location (City Hall, 502 Elm St, Sanger TX 76266) at 2:00 PM (Central Time) on September 19, 2023. One (1) electronic, PDF copy of the Statement should also be included on a USB/Flash drive. Questions should be directed to Ryan Nolting, Director of Parks & Recreation, at the contact information listed above. SECTION 9. SELECTION PROCESS AND CRITERIA FOR CONSIDERATION OF QUALIFICATIONS: Statements will be reviewed and evaluated by the City staff and on a number of criteria, including, but not limited to the following:  Overall responsiveness and quality of the proposal in clearly stating an understanding of the project. 82 Item 9. 5  Experience and knowledge in developing similar plans by consultant personnel who will be directly involved with the project.  The experience and availability of support staff for the project.  The ability to complete the plan within the given timeframe.  References. After evaluating the proposals, the City may request additional information from any consultant identified as most responsive to this RFQ. At its discretion, the City may require any consultant to make a presentation to provide an opportunity to clarify the submission. The City will schedule any such presentations. The City will evaluate the written proposals and will select the consultant which meets the best interest of the City. The City shall be the sole judge of its own best interests, the proposals, and the resulting negotiated agreement. The City’s decisions will be final. The City reserves the right to negotiate any and all elements of this proposal, including, but not limited to, the fee structure and terms of the contract, with the proposing firm selected. A. DISCLAIMER This RFQ does not commit the City to enter into a contract, nor does it obligate the City to pay for any costs incurred in the preparation and submission of Statements or anticipation of a contract. The City reserves the right at its sole discretion: to make selections, to reject any or all submissions, to issue subsequent RFQ, to remedy technical errors in the RFQ process, and to enter into a contract with one or more consultants for the provisions of any, all or some of the services described herein. B. AGREEMENT FOR PROFESSIONAL SERVICES Attached as Exhibit A is the City of Sanger’s standard agreement for professional services. The agreement also indicates the insurance and indemnification requirements that the City will require of the selected firm. C. ADDITIONAL INFORMATION: 1. A person or business that contracts with Sanger or who seeks to contract with the City must file a “Conflict of Interest Questionnaire” (FORM CIQ) which is available online at www.ethics.state.tx.us and a copy of which is attached to this guideline. The form contains mandatory disclosures regarding “employment or business relationships” with a municipal officer. Officials may be asked to clarify or interpret various portions of the questionnaire. 2. Compliance with HB 89. A person or business that contracts with Sanger or who seeks to contract with the City shall not boycott Israel at any time while providing products or services to the City of Sanger. This requirement does not apply to companies with fewer than ten full-time employees; or contracts that are less than $100,000.00. [ ] Yes, we agree [ ] No, we do not agree [ ] N/A 83 Item 9. 6 3. Respondent verifies that it does not boycott energy companies and will not boycott energy companies during the term of this contract, as those terms are defined by Chapter 2274, Government Code. This requirement does not apply to companies with fewer than ten full-time employees; or contracts that are less than $100,000.00. [ ] Yes, we agree [ ] No, we do not agree [ ] N/A 4. Respondent verifies that it does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association and will not discriminate during the term of this contract against a firearm entity or firearm trade association, as those terms are defined by Chapter 2274, Government Code. This requirement does not apply to companies with fewer than ten full- time employees; or contracts that are less than $100,000.00. [ ] Yes, we agree [ ] No, we do not agree [ ] N/A 5. Compliance with SB 252. A person or business that contracts with Sanger or who seeks to contract with the City shall not do business with Iran, Sudan, or a foreign terrorist organization while providing products or services to the City of Sanger. [ ] Yes, we agree [ ] No, we do not agree The undersigned affirms that he/she has read and understands the specifications, terms, and conditions, all exhibits and attachments contained herein and that they are duly authorized to execute this response to the Request for Qualifications. Signature Company Date 84 Item 9. AGREEMENT TO PROVIDE PROFESSIONAL SERVICES THIS AGREEMENT (“Agreement”) is entered into this day of ,20___ by and between XXXXXX ("PROFESSIONAL") and the CITY OF SANGER, TEXAS, a municipal corporation of the State of Texas ("CITY"). For convenience, the PROFESSIONAL and the CITY may sometimes be referred to herein collectively as “parties” and individually as a “party.” WITNESSETH WHEREAS, CITY desires to engage PROFESSIONAL to provide professional services as more fully described on Exhibit “A” attached hereto and incorporated herein by reference; and WHEREAS, PROFESSIONAL agrees to provide such work and services for CITY in accordance with the terms of this Agreement; NOW, THEREFORE, for the mutual promises set forth herein, and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto mutually agree as follows: 1. Employment of PROFESSIONAL. (a) CITY agrees to engage PROFESSIONAL and PROFESSIONAL hereby agrees to perform the services described in Exhibit “A” attached hereto and incorporated herein by reference. (b) Notwithstanding anything to the contrary contained in this Agreement, CITY and PROFESSIONAL agree and acknowledge that CITY is entering into this Agreement in reliance on PROFESSIONAL’s special and unique abilities. PROFESSIONAL accepts the relationship of trust and confidence established between it and CITY by this Agreement. PROFESSIONAL acknowledges that PROFESSIONAL shall be solely responsible for determining the methods for performing the services described in Exhibit “A” attached hereto. PROFESSIONAL covenants with CITY to use its best efforts, skill, judgment, and abilities to perform the work required by this Agreement and to further the interests of CITY in accordance with CITY’s requirements, in compliance with applicable national, federal, state, municipal, laws, regulations, codes, ordinances, orders and with those of any other body having jurisdiction. PROFESSIONAL warrants, represents, covenants, and agrees that all of the work to be performed by PROFESSIONAL under or pursuant to this Agreement shall be done (i) with the professional skill and care ordinarily provided by competent engineers or architects, as the case may be, practicing under the same or similar circumstances and applicable professional license; and (ii) as expeditiously as is prudent considering the ordinary professional skill and care of a competent engineer or architect, as the case may be. 85 Item 9. (c) PROFESSIONAL will be responsible for supplying all tools and equipment necessary for PROFESSIONAL to provide the services set forth in Exhibit “A” attached hereto. 2. Compensation. CITY agrees to pay PROFESSIONAL the fees set forth in Exhibit “A” attached hereto. Within fifteen (15) days of the end of the month within which services were rendered, PROFESSIONAL shall provide City an invoice specifying the services provided during the previous month and the total amount owed by City. Payment will be made by CITY within thirty (30) days of receipt of an invoice from PROFESSIONAL. 3. Changes. CITY may, from time to time require changes in the scope of services of PROFESSIONAL to be performed hereunder. Such changes, which are mutually agreed upon by and between CITY and PROFESSIONAL, shall be incorporated in written amendment to this Agreement. 4. Services and Materials to be Furnished by CITY. CITY shall furnish PROFESSIONAL with all available information and data PROFESSIONAL requests pertinent to the execution of this Agreement. CITY shall cooperate with PROFESSIONAL in carrying out the work herein and shall provide adequate staff for liaison with PROFESSIONAL. 5. Ownership of Documents. All reports, plans, specifications, computer files and other documents prepared by PROFESSIONAL for which PROFESSIONAL has been compensated pursuant to this Agreement shall be the property of CITY. PROFESSIONAL will deliver to CITY copies of the prepared documents and materials. PROFESSIONAL shall make all documents and related data and material utilized in developing the documents available to CITY for inspection whenever requested. PROFESSIONAL may make copies of any and all such documents and items and retain same for its files. PROFESSIONAL shall have no liability for changes made to or use of the drawings, specifications, and other documents by anyone other than PROFESSIONAL subsequent to delivery of the prepared documents and materials. However, any such change or other use shall be sealed by the individual making the change or use and shall be appropriately marked to reflect what was changed or modified. 6. Term and Termination of Agreement. This agreement will be for a period of beginning on , and expiring on . Either party may terminate this agreement at any time by providing thirty (30) days written notice to the other party. 7. Notices. All notices, consents, demands, requests and other communications which may or are required to be given hereunder shall be in writing and shall be deemed duly given if personally delivered or sent by United States mail, registered or certified, return receipt requested, postage prepaid, to the addresses set forth hereunder or to such other address as the other party hereto may designate in written notice transmitted in accordance with this provision. In case of the City, to: 86 Item 9. City of Sanger Attention: John Noblitt P.O. Box 1729 Sanger, TX 76266 And send a courtesy copy by email to: jnoblitt@sangertexas.org In case of Vendor, to: And send a courtesy copy by email to: Notwithstanding the foregoing, ordinary communications may be sent by electronic mail to the designated representatives of the City and Vendor. 8. Completeness of Contract. This Agreement and the documents incorporated herein by specific reference contain all the terms and conditions agreed upon by the parties hereto, and no other agreements, oral or otherwise, regarding the subject matter of this contract or any part thereof shall have any validity or bind any of the parties hereto. If there is any conflict between the terms of this Agreement and the documents attached hereto, the terms of this Agreement shall control, then Exhibit A CITY’S Request for Qualifications, then Exhibit B PROFESSIONAL’S Response to the Request for Qualifications. This Agreement may not be subsequently modified except by a writing signed by both parties. 9. CITY Not Obligated to Third Parties. CITY shall not be obligated or liable hereunder to any party other than PROFESSIONAL. 10. Final Decisions. Serving as a PROFESSIONAL to CITY, PROFESSIONAL shall advise all parties that final decisions shall be made by the City Council and/or City Manager. 11. Indemnification. PROFESSIONAL DOES HEREBY COVENANT AND CONTRACT TO WAIVE ANY AND ALL CLAIMS, RELEASE, INDEMNIFY, AND HOLD HARMLESS CITY, ITS CITY COUNCIL, OFFICERS, EMPLOYEES, AND AGENTS, FROM AND AGAINST ALL LIABILITY, CAUSES OF ACTION, CLAIMS, COSTS, DAMAGES, DEMANDS, EXPENSES, FINES, JUDGMENTS, LOSSES, PENALTIES OR SUITS, WHICH MAY ARISE BY REASON OF DEATH OR INJURY TO PERSONS OR PROPERTY, CAUSED BY OR RESULTING FROM THE 87 Item 9. NEGLIGENCE, INTENTIONAL TORT, INTELLECTUAL PROPERTY INFRINGEMENT, OR FAILURE TO PAY A SUBPROFESSIONAL OR SUPPLIER COMMITTED BY PROFESSIONAL, ITS AGENTS, OR CONSULTANTS UNDER CONTRACT, OR ANY OTHER ENTITY OVER WHICH PROFESSIONAL EXERCISES CONTROL, SUBJECT TO THE LIMITATIONS IN TEXAS LOCAL GOVERNMENT CODE § 271.904 AND TEXAS CIVIL PRACTICE AND REMEDIES CODE, § 130.002 (b) AND PROFESSIONAL WILL, AT ITS OWN COST AND EXPENSE, DEFEND AND PROTECT CITY AGAINST ANY AND ALL SUCH CLAIMS AND DEMANDS. THE INDEMNIFICATION UNDER THIS SECTION SHALL INCLUDE REASONABLE ATTORNEYS’ FEES AND COSTS, COURT COSTS, AND SETTLEMENT COSTS IN PROPORTION TO PROFESSIONAL’S LIABILITY. PROFESSIONAL’S OBLIGATIONS UNDER THIS SECTION SHALL NOT BE LIMITED TO THE LIMITS OF COVERAGE OF INSURANCE MAINTAINED OR REQUIRED TO BE MAINTAINED BY PROFESSIONAL UNDER THIS AGREEMENT. THIS SECTION (INDEMNIFICATION) SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT. 12. Insurance. PROFESSIONAL shall, at its own expense, purchase, maintain and keep in force throughout the duration of this Agreement and for a period of four (4) years thereafter the following minimum insurance: A. Commercial general liability insurance, including personal injury liability, blanket contractual liability, and broad form property damage liability in an amount of not less than $1,000,000. B. Automobile bodily injury and property damage liability insurance with a limit of not less than $1,000,000. C. Statutory workers’ compensation and employers’ liability insurance as required by state law. D. Professional liability insurance (Errors and Omissions) with a limit of $1,000,000 per claim/annual aggregate. PROFESSSIONAL shall provide CITY with proof of insurance required hereunder prior to commencing work for CITY and CITY shall be named as an additional insured on the policy. PROFFESSIONAL shall provide CITY with written notice of any coverage limit change on the insurance. Such policies shall name CITY, its officers, and employees as an additional insured and shall provide for a waiver of subrogation against CITY. PROFESSIONAL shall insure that all subcontractors comply with the same insurance requirements. 13. Client Objection to Personnel. If at any time after entering into this Agreement, CITY has any reasonable objection to any of PROFESSIONAL’s personnel, or any personnel, professionals and/or consultants retained by PROFESSIONAL, PROFESSIONAL shall promptly propose substitutes to whom CITY has no reasonable objection, and PROFESSIONAL’s compensation shall be equitably adjusted to reflect any difference in 88 Item 9. PROFESSIONAL’s costs occasioned by such substitution. 14. Timeliness of Performance. PROFESSSIONAL shall perform its professional services with due and reasonable diligence consistent with sound professional practices. 15. Personnel. All of the services required hereunder will be performed by PROFESSIONAL or under PROFESSIONAL's supervision, and all personnel engaged in the work shall be qualified to perform such services. 16. Independent Contractor. In performing the services under this Agreement, PROFESSIONAL is acting as an independent contractor. No term or provision hereof be construed as making PROFESSIONAL the agent, servant, or employee of CITY or as creating a partnership or joint venture relationship between PROFESSIONAL and CITY. 17. Assignability. The parties hereby agree that PROFESSIONAL may not assign, convey or transfer its interest, rights and duties in this Agreement without the prior written consent of CITY. 18. Successors and Assigns. Subject to the provisions regarding assignment, this Agreement shall be binding on and inure to the benefit of the Parties to it and their respective heirs, executors, administrators, legal representatives, successors and assigns. 19. Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. Venue for any action brought to interpret or enforce the terms of this Agreement shall lie in Denton County, Texas. 20. No Third-Party Beneficiary. For purposes of this Agreement, including its intended operation and effect, the parties specifically agree and contract that: (1) this Agreement only affects matters/disputes between the parties to this Agreement, and is in no way intended by the parties to benefit or otherwise affect any third person or entity, notwithsta nding the fact that such third person or entities may be in a contractual relationship with CITY and PROFESSIONAL, or both; and (2) the terms of this Agreement are not intended to release, either by contract or operation of law, any third person or entity from obligations they owe to either CITY or PROFESSIONAL. 21. Exhibits. The exhibits attached hereto are incorporated herein and made a part hereof for all purposes. 22. Conflicts of Interest. By signature of this Agreement, PROFESSIONAL warrants to CITY that it has made full disclosure in writing of any existing conflicts of interest or potential conflicts of interest, including business or personal financial interests, direct or indirect, in property abutting the proposed project and business relations with abutting property owners, or with elected officials or employees of CITY. PROFESSIONAL further warrants that it will make disclosure in writing of any conflicts of interest that develop subsequent to the signing of this Agreement and prior to final payment under the Agreement. PROFESSIONAL warrants that it has submitted to CITY a completed Conflicts of Interest Questionnaire as 89 Item 9. required by Chapter 176 of the Texas Local Government Code. 23. Authority to Sign. The parties hereby warrant and represent that the undersigned persons have full authority and are duly authorized to sign on behalf of their respective principals and that such principals have duly authorized the transaction contemplated by this Agreement. 24. Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. Each counterpart may consist of any number of copies hereof each signed by less than all, but together signed by all of the parties hereto. 90 Item 9. IN WITNESS WHEREOF, CITY and the PROFESSIONAL have executed this Agreement as of the date first written above. CITY OF , TEXAS By: Print Name: Title: Approved as to Form ________________________ Hugh Coleman City Attorney City of Sanger [PROFESSIONAL’S NAME] By: Print Name: Title: EXHIBIT A: CITY REQEST FOR QUALIFICATIONS EXHIBIT B: RESPONSE TO REQUEST FOR QUALIFICATIONS 91 Item 9. CITY COUNCIL COMMUNICATION DATE: August 21, 2023 FROM: Clayton Gray, Finance Director AGENDA ITEM: Consideration and possible action on Ordinance 08-18-23, Approving the Property Tax Roll. SUMMARY:  The Texas Property Tax Code, Section 26.09 (e) requires that the City Council approve the tax roll as submitted by the Assessor.  The Denton County Appraisal District provided the Certified Estimates on Tuesday, July 25, 2023. FISCAL INFORMATION: N/A RECOMMENDED MOTION OR ACTION: Staff recommends approval of Ordinance 08-21-23. ATTACHMENTS:  Ordinance 08-21-23 Approving the Property Tax Roll  2023 Certified Totals for Sanger 92 Item 10. Ordinance 08-18-23 Approving Property Tax Roll Page 1 of 2 CITY OF SANGER, TEXAS ORDINANCE No. 08-18-23 AN ORDINANCE OF THE CITY OF SANGER, DENTON COUNTY, TEXAS, APPROVING THE 2023 TAX ROLL FOR THE CITY OF SANGER, TEXAS; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Sanger (the “City”) is a home rule municipality regulated by state law and Charter; and WHEREAS, the Denton Central Appraisal District certifies the tax roll for each entity in Denton County on an annual basis; and WHEREAS, the Denton Central Appraisal District has provided a Certified Tax Roll for the Tax year 2023 to be used in the development of the Fiscal Year 2023-2024 Budget for the purpose of providing municipal services to the citizens of Sanger; and WHEREAS, the City Council of the City of Sanger desires to formally adopt the Certified Tax Roll pursuant to Section 26.09(e) of the Texas Property Tax Code; and WHEREAS, the City Council finds that passage of this Ordinance is in the best interest of the citizens of Sanger. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS: SECTION 1. The City Council hereby accepts and approves the tax roll presented by Denton Central Appraisal District. SECTION 2. That all matters stated in the preamble are found to be true and correct and are incorporated herein as if copied in their entirety. 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. 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. 93 Item 10. Ordinance 08-18-23 Approving Property Tax Roll Page 2 of 2 PASSED AND APPROVED by the City Council of the City of Sanger, Texas on this 21st day of August 2023. APPROVED: ________________________________ ATTEST: Thomas E. Muir, Mayor APPROVED TO FORM: ________________________________ Kelly Edwards, City Secretary ________________________________ Hugh Coleman, City Attorney 94 Item 10. DENTON County As of Certification2023 CERTIFIED TOTALS C16 - SANGER CITY OF ARB Approved TotalsProperty Count: 4,710 10:12:03AM7/22/2023 Land Value Homesite:201,092,872 Non Homesite:193,838,878 Ag Market:94,189,266 Timber Market:489,121,016Total Land (+)0 Improvement Value Homesite:687,729,009 Non Homesite:209,229,390 Total Improvements (+)896,958,399 Non Real ValueCount Personal Property:363 189,059,894 Mineral Property:0 0 Autos:0 0 Total Non Real (+)189,059,894 Market Value =1,575,139,309 ExemptAg Non Exempt 94,106,443 82,823 Total Productivity Market: Ag Use:331,564 165 93,774,879 (-)Productivity Loss Timber Use:0 0 =Appraised Value 1,481,364,430 Productivity Loss:82,65893,774,879 81,399,909(-)Homestead Cap =Assessed Value 1,399,964,521 (-)Total Exemptions Amount (Breakdown on Next Page) 130,862,476 =Net Taxable 1,269,102,045 APPROXIMATE TOTAL LEVY = NET TAXABLE * (TAX RATE / 100) 7,481,318.48 = 1,269,102,045 * (0.589497 / 100) 1,575,139,309Certified Estimate of Market Value: 1,269,102,045Certified Estimate of Taxable Value: Tax Increment Finance Value:0 Tax Increment Finance Levy:0.00 Page 197 of 2775C16/652971 95 Item 10. DENTON County As of Certification2023 CERTIFIED TOTALS C16 - SANGER CITY OF Exemption Breakdown StateLocalExemption Count Total 7/22/2023 10:14:34AMProperty Count: 4,710 ARB Approved Totals DP 27 487,491 0 487,491 DPS 2 0 0 0 DV1 11 0 97,000 97,000 DV2 10 0 93,000 93,000 DV3 16 0 126,000 126,000 DV3S 1 0 10,000 10,000 DV4 45 0 320,280 320,280 DV4S 6 0 24,000 24,000 DVHS 25 0 7,352,450 7,352,450 DVHSS 5 0 1,389,391 1,389,391 EX 1 0 8,240 8,240 EX-XG 1 0 93,557 93,557 EX-XL 6 0 8,742,929 8,742,929 EX-XV 275 0 80,806,351 80,806,351 EX366 53 0 33,842 33,842 FR 3 15,535,941 0 15,535,941 OV65 519 14,992,004 0 14,992,004 OV65S 28 750,000 0 750,000 Totals 31,765,436 99,097,040 130,862,476 Page 198 of 2775C16/652971 96 Item 10. DENTON County As of Certification2023 CERTIFIED TOTALS C16 - SANGER CITY OF Under ARB Review TotalsProperty Count: 93 10:12:03AM7/22/2023 Land Value Homesite:4,676,478 Non Homesite:3,310,344 Ag Market:48,793,010 Timber Market:56,779,832Total Land (+)0 Improvement Value Homesite:14,094,182 Non Homesite:3,129,917 Total Improvements (+)17,224,099 Non Real ValueCount Personal Property:0 0 Mineral Property:0 0 Autos:0 0 Total Non Real (+)0 Market Value =74,003,931 ExemptAg Non Exempt 48,793,010 0 Total Productivity Market: Ag Use:101,066 0 48,691,944 (-)Productivity Loss Timber Use:0 0 =Appraised Value 25,311,987 Productivity Loss:048,691,944 1,948,783(-)Homestead Cap =Assessed Value 23,363,204 (-)Total Exemptions Amount (Breakdown on Next Page) 97,000 =Net Taxable 23,266,204 APPROXIMATE TOTAL LEVY = NET TAXABLE * (TAX RATE / 100) 137,153.57 = 23,266,204 * (0.589497 / 100) 39,846,611Certified Estimate of Market Value: 16,778,596Certified Estimate of Taxable Value: Tax Increment Finance Value:0 Tax Increment Finance Levy:0.00 Page 199 of 2775C16/652971 97 Item 10. DENTON County As of Certification2023 CERTIFIED TOTALS C16 - SANGER CITY OF Exemption Breakdown StateLocalExemption Count Total 7/22/2023 10:14:34AMProperty Count: 93 Under ARB Review Totals DV3 1 0 10,000 10,000 DV4 1 0 12,000 12,000 OV65 2 45,000 0 45,000 OV65S 1 30,000 0 30,000 Totals 75,000 22,000 97,000 Page 200 of 2775C16/652971 98 Item 10. DENTON County As of Certification2023 CERTIFIED TOTALS C16 - SANGER CITY OF Grand TotalsProperty Count: 4,803 10:12:03AM7/22/2023 Land Value Homesite:205,769,350 Non Homesite:197,149,222 Ag Market:142,982,276 Timber Market:545,900,848Total Land (+)0 Improvement Value Homesite:701,823,191 Non Homesite:212,359,307 Total Improvements (+)914,182,498 Non Real ValueCount Personal Property:363 189,059,894 Mineral Property:0 0 Autos:0 0 Total Non Real (+)189,059,894 Market Value =1,649,143,240 ExemptAg Non Exempt 142,899,453 82,823 Total Productivity Market: Ag Use:432,630 165 142,466,823 (-)Productivity Loss Timber Use:0 0 =Appraised Value 1,506,676,417 Productivity Loss:82,658142,466,823 83,348,692(-)Homestead Cap =Assessed Value 1,423,327,725 (-)Total Exemptions Amount (Breakdown on Next Page) 130,959,476 =Net Taxable 1,292,368,249 APPROXIMATE TOTAL LEVY = NET TAXABLE * (TAX RATE / 100) 7,618,472.06 = 1,292,368,249 * (0.589497 / 100) 1,614,985,920Certified Estimate of Market Value: 1,285,880,641Certified Estimate of Taxable Value: Tax Increment Finance Value:0 Tax Increment Finance Levy:0.00 Page 201 of 2775C16/652971 99 Item 10. DENTON County As of Certification2023 CERTIFIED TOTALS C16 - SANGER CITY OF Exemption Breakdown StateLocalExemption Count Total 7/22/2023 10:14:34AMProperty Count: 4,803 Grand Totals DP 27 487,491 0 487,491 DPS 2 0 0 0 DV1 11 0 97,000 97,000 DV2 10 0 93,000 93,000 DV3 17 0 136,000 136,000 DV3S 1 0 10,000 10,000 DV4 46 0 332,280 332,280 DV4S 6 0 24,000 24,000 DVHS 25 0 7,352,450 7,352,450 DVHSS 5 0 1,389,391 1,389,391 EX 1 0 8,240 8,240 EX-XG 1 0 93,557 93,557 EX-XL 6 0 8,742,929 8,742,929 EX-XV 275 0 80,806,351 80,806,351 EX366 53 0 33,842 33,842 FR 3 15,535,941 0 15,535,941 OV65 521 15,037,004 0 15,037,004 OV65S 29 780,000 0 780,000 Totals 31,840,436 99,119,040 130,959,476 Page 202 of 2775C16/652971 100 Item 10. DENTON County As of Certification2023 CERTIFIED TOTALS C16 - SANGER CITY OF ARB Approved TotalsProperty Count: 4,710 7/22/2023 10:14:34AM State Category Breakdown State Code Description Count Market ValueAcres New Value Taxable Value 47 $0 $0 $0 A SINGLE FAMILY RESIDENCE 3,052 $19,213,302 $868,234,152 $762,515,839756.6601 B MULTIFAMILY RESIDENCE 78 $217,121 $56,876,041 $56,699,13231.4748 C1 VACANT LOTS AND LAND TRACTS 289 $0 $23,544,424 $23,532,424151.8457 D1 QUALIFIED AG LAND 79 $0 $94,106,443 $331,2952,993.4244 D2 NON-QUALIFIED LAND 15 $0 $312,737 $312,737 E FARM OR RANCH IMPROVEMENT 55 $738,290 $36,963,548 $35,948,928613.9270 F1 COMMERCIAL REAL PROPERTY 174 $16,102,733 $204,974,040 $204,974,040600.9704 F2 INDUSTRIAL REAL PROPERTY 1 $0 $675,000 $675,0004.4880 J1 WATER SYSTEMS 1 $0 $97,600 $97,600 J2 GAS DISTRIBUTION SYSTEM 1 $0 $5,056,880 $5,056,880 J3 ELECTRIC COMPANY (INCLUDING C 4 $0 $2,529,051 $2,529,0510.5450 J4 TELEPHONE COMPANY (INCLUDI 12 $0 $3,140,112 $3,140,1120.2007 J5 RAILROAD 3 $0 $1,275,560 $1,275,5609.4265 J7 CABLE TELEVISION COMPANY 5 $0 $2,660,650 $2,660,650 L1 COMMERCIAL PERSONAL PROPE 269 $27,298,915 $165,522,526 $149,978,305 L2 INDUSTRIAL PERSONAL PROPERT 6 $0 $1,298,152 $1,298,152 M1 TANGIBLE OTHER PERSONAL, MOB 202 $428,044 $2,891,796 $2,780,662 O RESIDENTIAL INVENTORY 172 $224,222 $7,816,680 $7,816,68033.1850 S SPECIAL INVENTORY TAX 8 $0 $7,478,998 $7,478,998 X TOTALLY EXEMPT PROPERTY 336 $30,492,958 $89,684,919 $0539.5180 Totals 5,735.6656 $94,715,585 $1,575,139,309 $1,269,102,045 Page 203 of 2775C16/652971 101 Item 10. DENTON County As of Certification2023 CERTIFIED TOTALS C16 - SANGER CITY OF Under ARB Review TotalsProperty Count: 93 7/22/2023 10:14:34AM State Category Breakdown State Code Description Count Market ValueAcres New Value Taxable Value 1 $0 $0 $0 A SINGLE FAMILY RESIDENCE 52 $265,289 $16,578,687 $14,636,11812.4603 C1 VACANT LOTS AND LAND TRACTS 21 $0 $2,128,048 $2,128,04821.8478 D1 QUALIFIED AG LAND 18 $0 $48,793,010 $101,066748.8275 D2 NON-QUALIFIED LAND 4 $0 $639,790 $639,790 E FARM OR RANCH IMPROVEMENT 5 $0 $2,281,640 $2,178,42614.8310 F1 COMMERCIAL REAL PROPERTY 2 $0 $3,527,418 $3,527,4184.3700 M1 TANGIBLE OTHER PERSONAL, MOB 1 $0 $55,338 $55,338 Totals 802.3366 $265,289 $74,003,931 $23,266,204 Page 204 of 2775C16/652971 102 Item 10. DENTON County As of Certification2023 CERTIFIED TOTALS C16 - SANGER CITY OF Grand TotalsProperty Count: 4,803 7/22/2023 10:14:34AM State Category Breakdown State Code Description Count Market ValueAcres New Value Taxable Value 48 $0 $0 $0 A SINGLE FAMILY RESIDENCE 3,104 $19,478,591 $884,812,839 $777,151,957769.1204 B MULTIFAMILY RESIDENCE 78 $217,121 $56,876,041 $56,699,13231.4748 C1 VACANT LOTS AND LAND TRACTS 310 $0 $25,672,472 $25,660,472173.6935 D1 QUALIFIED AG LAND 97 $0 $142,899,453 $432,3613,742.2519 D2 NON-QUALIFIED LAND 19 $0 $952,527 $952,527 E FARM OR RANCH IMPROVEMENT 60 $738,290 $39,245,188 $38,127,354628.7580 F1 COMMERCIAL REAL PROPERTY 176 $16,102,733 $208,501,458 $208,501,458605.3404 F2 INDUSTRIAL REAL PROPERTY 1 $0 $675,000 $675,0004.4880 J1 WATER SYSTEMS 1 $0 $97,600 $97,600 J2 GAS DISTRIBUTION SYSTEM 1 $0 $5,056,880 $5,056,880 J3 ELECTRIC COMPANY (INCLUDING C 4 $0 $2,529,051 $2,529,0510.5450 J4 TELEPHONE COMPANY (INCLUDI 12 $0 $3,140,112 $3,140,1120.2007 J5 RAILROAD 3 $0 $1,275,560 $1,275,5609.4265 J7 CABLE TELEVISION COMPANY 5 $0 $2,660,650 $2,660,650 L1 COMMERCIAL PERSONAL PROPE 269 $27,298,915 $165,522,526 $149,978,305 L2 INDUSTRIAL PERSONAL PROPERT 6 $0 $1,298,152 $1,298,152 M1 TANGIBLE OTHER PERSONAL, MOB 203 $428,044 $2,947,134 $2,836,000 O RESIDENTIAL INVENTORY 172 $224,222 $7,816,680 $7,816,68033.1850 S SPECIAL INVENTORY TAX 8 $0 $7,478,998 $7,478,998 X TOTALLY EXEMPT PROPERTY 336 $30,492,958 $89,684,919 $0539.5180 Totals 6,538.0022 $94,980,874 $1,649,143,240 $1,292,368,249 Page 205 of 2775C16/652971 103 Item 10. DENTON County As of Certification2023 CERTIFIED TOTALS C16 - SANGER CITY OF ARB Approved Totals 10:14:34AM7/22/2023Property Count: 4,710 CAD State Category Breakdown State Code Description Count Acres New Value Market Value Taxable Value A1 REAL, RESIDENTIAL, SINGLE-FAMIL 3,049 $19,213,302 $867,513,497 $761,983,190745.7981 A2 REAL, RESIDENTIAL, MOBILE HOME 4 $0 $720,655 $532,64910.8620 B1 REAL, RESIDENTIAL, APARTMENTS 21 $0 $34,822,474 $34,822,47420.1883 B2 REAL, RESIDENTIAL, DUPLEXES 57 $217,121 $22,053,567 $21,876,65811.2865 C1 REAL, VACANT PLATTED RESIDENTI 196 $0 $11,276,407 $11,276,40759.6783 C2 COMMERCIAL VACANT LOT 89 $0 $11,883,185 $11,871,18584.8176 C3 REAL VACANT LOT OUTSIDE CITY 4 $0 $384,832 $384,8327.3498 D1 QUALIFIED AG LAND 79 $0 $94,106,443 $331,2952,993.4244 D2 FARM AND RANCH IMPSS ON QUALI 15 $0 $312,737 $312,737 E1 LAND AND IMPROVMENTS (NON AG Q 20 $738,290 $5,207,187 $4,192,56726.9140 E4 VACANT NON QUALIFIED NON HOME 35 $0 $31,756,361 $31,756,361587.0130 F1 REAL COMMERCIAL 169 $16,102,733 $198,960,320 $198,960,320544.2404 F2 REAL, INDUSTRIAL 1 $0 $675,000 $675,0004.4880 F3 REAL - COMMERCIAL MH PARKS 5 $0 $6,013,720 $6,013,72056.7300 J1 REAL & TANGIBLE PERSONAL, UTIL 1 $0 $97,600 $97,600 J2 REAL & TANGIBLE PERSONAL, UTIL 1 $0 $5,056,880 $5,056,880 J3 REAL & TANGIBLE PERSONAL, UTIL 4 $0 $2,529,051 $2,529,0510.5450 J4 REAL & TANGIBLE PERSONAL, UTIL 12 $0 $3,140,112 $3,140,1120.2007 J5 REAL & TANGIBLE PERSONAL, UTIL 3 $0 $1,275,560 $1,275,5609.4265 J7 REAL & TANGIBLE PERSONAL, UTIL 5 $0 $2,660,650 $2,660,650 L1 BPP TANGIBLE COMERCIAL PROPER 177 $25,787,746 $142,181,835 $126,637,614 L2 BPP TANGIBLE INDUSTRIAL PROPER 6 $0 $1,298,152 $1,298,152 L3 BPP TANGIBLE COMMERCIAL LEASE 92 $1,511,169 $23,340,691 $23,340,691 M1 MOBILE HOMES - PERSONAL PROPE 202 $428,044 $2,891,796 $2,780,662 OA1 INVENTORY, RESIDENTIAL SINGLE F 1 $224,222 $272,676 $272,6760.2010 OC1 INVENTORY, VACANT PLATTED LOTS 171 $0 $7,544,004 $7,544,00432.9840 PLAN 47 $0 $0 $0 S SPECIAL INVENTORY 8 $0 $7,478,998 $7,478,998 X 336 $30,492,958 $89,684,919 $0539.5180 Totals 5,735.6656 $94,715,585 $1,575,139,309 $1,269,102,045 Page 206 of 2775C16/652971 104 Item 10. DENTON County As of Certification2023 CERTIFIED TOTALS C16 - SANGER CITY OF Under ARB Review Totals 10:14:34AM7/22/2023Property Count: 93 CAD State Category Breakdown State Code Description Count Acres New Value Market Value Taxable Value A1 REAL, RESIDENTIAL, SINGLE-FAMIL 52 $265,289 $16,578,687 $14,636,11812.4603 C1 REAL, VACANT PLATTED RESIDENTI 18 $0 $1,909,454 $1,909,45418.6018 C2 COMMERCIAL VACANT LOT 3 $0 $218,594 $218,5943.2460 D1 QUALIFIED AG LAND 18 $0 $48,793,010 $101,066748.8275 D2 FARM AND RANCH IMPSS ON QUALI 4 $0 $639,790 $639,790 E1 LAND AND IMPROVMENTS (NON AG Q 5 $0 $2,281,640 $2,178,42614.8310 F1 REAL COMMERCIAL 2 $0 $3,527,418 $3,527,4184.3700 M1 MOBILE HOMES - PERSONAL PROPE 1 $0 $55,338 $55,338 PLAN 1 $0 $0 $0 Totals 802.3366 $265,289 $74,003,931 $23,266,204 Page 207 of 2775C16/652971 105 Item 10. DENTON County As of Certification2023 CERTIFIED TOTALS C16 - SANGER CITY OF Grand Totals 10:14:34AM7/22/2023Property Count: 4,803 CAD State Category Breakdown State Code Description Count Acres New Value Market Value Taxable Value A1 REAL, RESIDENTIAL, SINGLE-FAMIL 3,101 $19,478,591 $884,092,184 $776,619,308758.2584 A2 REAL, RESIDENTIAL, MOBILE HOME 4 $0 $720,655 $532,64910.8620 B1 REAL, RESIDENTIAL, APARTMENTS 21 $0 $34,822,474 $34,822,47420.1883 B2 REAL, RESIDENTIAL, DUPLEXES 57 $217,121 $22,053,567 $21,876,65811.2865 C1 REAL, VACANT PLATTED RESIDENTI 214 $0 $13,185,861 $13,185,86178.2801 C2 COMMERCIAL VACANT LOT 92 $0 $12,101,779 $12,089,77988.0636 C3 REAL VACANT LOT OUTSIDE CITY 4 $0 $384,832 $384,8327.3498 D1 QUALIFIED AG LAND 97 $0 $142,899,453 $432,3613,742.2519 D2 FARM AND RANCH IMPSS ON QUALI 19 $0 $952,527 $952,527 E1 LAND AND IMPROVMENTS (NON AG Q 25 $738,290 $7,488,827 $6,370,99341.7450 E4 VACANT NON QUALIFIED NON HOME 35 $0 $31,756,361 $31,756,361587.0130 F1 REAL COMMERCIAL 171 $16,102,733 $202,487,738 $202,487,738548.6104 F2 REAL, INDUSTRIAL 1 $0 $675,000 $675,0004.4880 F3 REAL - COMMERCIAL MH PARKS 5 $0 $6,013,720 $6,013,72056.7300 J1 REAL & TANGIBLE PERSONAL, UTIL 1 $0 $97,600 $97,600 J2 REAL & TANGIBLE PERSONAL, UTIL 1 $0 $5,056,880 $5,056,880 J3 REAL & TANGIBLE PERSONAL, UTIL 4 $0 $2,529,051 $2,529,0510.5450 J4 REAL & TANGIBLE PERSONAL, UTIL 12 $0 $3,140,112 $3,140,1120.2007 J5 REAL & TANGIBLE PERSONAL, UTIL 3 $0 $1,275,560 $1,275,5609.4265 J7 REAL & TANGIBLE PERSONAL, UTIL 5 $0 $2,660,650 $2,660,650 L1 BPP TANGIBLE COMERCIAL PROPER 177 $25,787,746 $142,181,835 $126,637,614 L2 BPP TANGIBLE INDUSTRIAL PROPER 6 $0 $1,298,152 $1,298,152 L3 BPP TANGIBLE COMMERCIAL LEASE 92 $1,511,169 $23,340,691 $23,340,691 M1 MOBILE HOMES - PERSONAL PROPE 203 $428,044 $2,947,134 $2,836,000 OA1 INVENTORY, RESIDENTIAL SINGLE F 1 $224,222 $272,676 $272,6760.2010 OC1 INVENTORY, VACANT PLATTED LOTS 171 $0 $7,544,004 $7,544,00432.9840 PLAN 48 $0 $0 $0 S SPECIAL INVENTORY 8 $0 $7,478,998 $7,478,998 X 336 $30,492,958 $89,684,919 $0539.5180 Totals 6,538.0022 $94,980,874 $1,649,143,240 $1,292,368,249 Page 208 of 2775C16/652971 106 Item 10. DENTON County As of Certification2023 CERTIFIED TOTALS C16 - SANGER CITY OF Property Count: 4,803 7/22/2023 10:14:34AM Effective Rate Assumption New Value TOTAL NEW VALUE MARKET:$94,980,874 TOTAL NEW VALUE TAXABLE:$64,296,491 New Exemptions Exemption Description Count EX-XV Other Exemptions (including public property, r 19 2022 Market Value $148,500 EX366 HB366 Exempt 8 2022 Market Value $16,780 ABSOLUTE EXEMPTIONS VALUE LOSS $165,280 Exemption Description Count Exemption Amount $20,0001DisabilityDP $15,0002Disabled Veterans 30% - 49%DV2 $20,0002Disabled Veterans 50% - 69%DV3 $72,0007Disabled Veterans 70% - 100%DV4 $01Disabled Veterans Surviving Spouse 70% - 100DV4S $571,9522Disabled Veteran HomesteadDVHS $210,0007Over 65OV65 22PARTIAL EXEMPTIONS VALUE LOSS $908,952 NEW EXEMPTIONS VALUE LOSS $1,074,232 Increased Exemptions Increased Exemption_AmountCountDescriptionExemption INCREASED EXEMPTIONS VALUE LOSS TOTAL EXEMPTIONS VALUE LOSS $1,074,232 New Ag / Timber Exemptions New Annexations Count Market Value Taxable Value 2 $1,103,483 $275,461 New Deannexations Average Homestead Value Category A and E Count of HS Residences Average TaxableAverage HS ExemptionAverage Market 1,758 $256,579$47,324$303,903 Category A Only Count of HS Residences Average TaxableAverage HS ExemptionAverage Market 1,746 $256,949$47,148$304,097 Page 209 of 2775C16/652971 107 Item 10. DENTON County As of Certification2023 CERTIFIED TOTALS C16 - SANGER CITY OF Lower Value Used Count of Protested Properties Total Market Value Total Value Used 93 $74,003,931.00 $16,778,596 Page 210 of 2775C16/652971 108 Item 10. CITY COUNCIL COMMUNICATION DATE: August 21, 2023 FROM: Clayton Gray, Finance Director AGENDA ITEM: Consideration and possible action on Ordinance 08-19-23, adopting the budget providing for the appropriation of funds for operating and capital expenditures for the fiscal year beginning October 1, 2023, and ending September 30, 2024, providing for the intra- and inter-department and fund transfers, providing for unexpected revenues such as grants, donations, and insurance proceeds, providing for an effective date, and providing for approval of the investment policy. SUMMARY:  This Ordinance adopts the 2023-2024 Official Budget of the City.  The following changes have been made to the original proposed budget: Fund Item Original Final Change General Property Tax $6,859,552 $7,040,392 $180,840 General Contract Services (Dev. Svc.) 110,300 260,300 150,000 General Transfers to Capital Projects Fund 136,670 167,510 30,840 Capital Projects Transfers from General Fund 136,670 167,510 30,840  Budget workshops open to the public were held during City Council meetings on July 3, 2023, and July 17, 2023.  The 2023-2024 proposed budget was filed with the City Secretary and made available on the City’s website for public inspection.  In accordance with both the City Charger and the Texas Local Government Code Sec. 102.006, the City published required notices in The Denton Record-Chronicle and held public hearings regarding the annual budget.  This Ordinance also approves the City's Investment Policy for the coming year. No changes have been made to the Investment Policy. FISCAL INFORMATION: Adopting the 2022-2023 budget will provide funding for City operations for the fiscal year beginning October 1, 2023, and ending September 30, 2024. RECOMMENDED MOTION OR ACTION:  Staff recommends approval of Ordinance 08-19-23  A vote on the ordinance must be a record vote of the City Council. ATTACHMENTS:  Ordinance 08-19-23  2023-2024 Final Proposed Budget 109 Item 11. O F F I C I A L B U D G E T FISCAL YEAR 2023-24 P R O P O S E D 110 Item 11. Local Government Code Sec. 102.007 requires that the following informaon be included as a cover page for the City’s annual budget: This budget will raise more total property taxes than last year’s budget by $2,347,558 (36%), and of that amount, $443,483 is tax revenue to be raised from new property added to the tax roll this year. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 2 111 Item 11. CITY OF SANGER, TEXAS ANNUAL BUDGET OCTOBER 1, 2023 – SEPTEMBER 30, 2024 SUBMITTED TO THE MAYOR AND CITY COUNCIL AUGUST 21, 2023 THOMAS MUIR Mayor MARISSA BARRETT Council Member, Place 1 GARY BILYEU Council Member, Place 2 DENNIS DILLON Council Member, Place 3 ALLEN CHICK Council Member, Place 4 VICTOR GANN Council Member, Place 5 JOHN NOBLITT City Manager CLAYTON GRAY Finance Director P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 3 112 Item 11. DISTINGUISHED BUDGET PRESENTATION AWARD The Government Finance Officers Association of the United States and Canada (GFOA) presented the Distinguished Budget Presentation Award to the City of Sanger, Texas, for its Annual Budget for the fiscal year beginning October 1, 2022. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 4 113 Item 11. TABLE OF CONTENTS INTRODUCTION Budget Message .............................................................................................................. 10 Strategic Planning for Results .......................................................................................... 20 Sanger 2040 Comprehensive Plan ................................................................................... 21 Organization Chart ........................................................................................................... 22 Authorized Personnel ....................................................................................................... 23 Budget Calendar .............................................................................................................. 24 The Budget Process ......................................................................................................... 25 List of Funds ..................................................................................................................... 27 Fund Relationship with Functional Areas ......................................................................... 28 About Sanger ................................................................................................................... 29 BUDGET SUMMARY 2022-2023 Budget at a Glance ......................................................................................... 36 2022-2023 Budget by Fund .............................................................................................. 38 Combined Funds Budget Summary (Detailed) ................................................................. 40 Combined Funds Budget Summary.................................................................................. 42 FUNDS IN DETAIL GENERAL FUND Overview .......................................................................................................................... 44 Budget Summary .............................................................................................................. 45 Revenues ......................................................................................................................... 47 Departmental Budgets Police .................................................................................................................... 52 Animal Control ..................................................................................................... 54 Fire ........................................................................................................................ 56 Municipal Court ..................................................................................................... 58 Development Services .......................................................................................... 60 Streets .................................................................................................................. 62 Parks ..................................................................................................................... 64 Library ................................................................................................................... 66 Solid Waste ........................................................................................................... 68 Transfers to Other Funds ...................................................................................... 70 DEBT SERVICE FUND Overview .......................................................................................................................... 72 Budget Summary .............................................................................................................. 73 Expenditures .................................................................................................................... 75 Debt Service Requirements .............................................................................................. 76 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 5 114 Item 11. TABLE OF CONTENTS (continued) ENTERPRISE FUND Overview .......................................................................................................................... 78 Budget Summary .............................................................................................................. 79 Revenues ......................................................................................................................... 81 Departmental Budgets Water .................................................................................................................... 82 Waste Water ......................................................................................................... 84 Electric .................................................................................................................. 86 Customer Service ................................................................................................. 88 Transfers to Other Funds ...................................................................................... 90 ENTERPRISE DEBT SERVICE FUND Overview .......................................................................................................................... 92 Budget Summary .............................................................................................................. 93 Expenditures .................................................................................................................... 95 Debt Service Requirements .............................................................................................. 96 INTERNAL SERVICE FUND Overview .......................................................................................................................... 98 Budget Summary .............................................................................................................. 99 Departmental Budgets City Council ......................................................................................................... 102 Administration ..................................................................................................... 104 City Secretary ..................................................................................................... 106 Legal ................................................................................................................... 108 Public Works Administration ............................................................................... 110 Finance ............................................................................................................... 112 Human Resources .............................................................................................. 114 Engineering ......................................................................................................... 116 Marketing ............................................................................................................ 118 Fleet Services ..................................................................................................... 120 Facilities .............................................................................................................. 121 Non-Departmental ............................................................................................... 124 4A CORPORATION FUND Overview ........................................................................................................................ 126 Budget Summary ............................................................................................................ 127 Revenues ....................................................................................................................... 129 Departmental Budget Economic Development ...................................................................................... 130 4B CORPORATION FUND Overview ........................................................................................................................ 132 Budget Summary ............................................................................................................ 133 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 6 115 Item 11. TABLE OF CONTENTS (continued) 4B CORPORATION FUND Revenues ....................................................................................................................... 135 Departmental Budget Economic Development Expenditures ................................................................ 136 SPECIAL REVENUE FUNDS Overview ........................................................................................................................ 138 Budget Summary ............................................................................................................ 139 Combined Schedule of Special Revenue Funds ............................................................ 140 Hotel Occupancy Tax Fund ............................................................................................ 141 General Storm Recovery Fund ....................................................................................... 141 Electric Storm Recovery Fund ........................................................................................ 142 Beautification Fund ......................................................................................................... 142 Library Restricted Fund .................................................................................................. 143 Parkland Dedication Fund .............................................................................................. 143 Roadway Impact Fee Fund ............................................................................................ 144 Court Security Fund........................................................................................................ 144 Court Technology Fund .................................................................................................. 145 Child Safety Fund ........................................................................................................... 145 Police Donations Fund ................................................................................................... 146 Fire Donations Fund ....................................................................................................... 146 Park Donations Fund ...................................................................................................... 147 Library Donations Fund .................................................................................................. 147 CAPITAL PROJECTS AND CAPITAL IMPROVEMENT PLAN Overview ........................................................................................................................ 150 Budget Summary ............................................................................................................ 151 Capital Projects Fund ..................................................................................................... 152 Enterprise Capital Projects Fund .................................................................................... 153 Capital Improvement Plan .............................................................................................. 154 Capital Projects Fund Five Year Summary ..................................................................... 158 Enterprise Capital Projects Five Year Summary ............................................................ 160 APPENDIX Approved Departmental Capital Equipment Requests ................................................... 164 Financial Management Policy ......................................................................................... 181 Investment Policy ........................................................................................................... 188 Debt Service Schedules ................................................................................................. 193 S&P Global Rating Report .............................................................................................. 199 2023 Tax Rate Calculation Worksheet ........................................................................... 205 Glossary of Terms .......................................................................................................... 216 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 7 116 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 8 117 Item 11. IN T R O D UC T I O N P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 9 118 Item 11. BUDGET MESSAGE August 21, 2023 Introduction We are pleased to present the FY 2023-2024 Budget for the City of Sanger. The city’s budget is the most important working policy and planning tool used by the City Council and staff to provide quality services to the residents of Sanger as established by City Council. Municipal budgets are always challenging. Resources are limited and it makes it difficult to address every problem and every concern. The strength of the economy is reflected in our General Fund revenues. However, budget planning should always be prudent to take into account current market conditions and future challenges during the process. The City of Sanger is still experiencing a period of accelerated growth. Permit numbers for new residential and commercial projects continue to increase at a consistent pace. Additionally, the City has experienced a record number of requests for large residential subdivisions and mixed-use projects. The City will continue to balance this growth with the quality and levels of service our residents expect; while ensuring the sustainability of our community and addressing future needs. The staff has prioritized that all of this be achieved within the framework of fiscal responsibility. The intent of this budget message is to explain both the structure of the budget and the atmosphere in which it was created. Following the same format as previous years, the budget message outlines the highlights of this year’s budget. It also discusses the city’s Strengths, Weaknesses, Opportunities, and Threats (SWOT analysis) for the upcoming year. Finally, it discusses the structure of the budget, where revenues come from, and where the money goes. The budget message should provide the reader insight into municipal government finances and make the raw numbers more understandable. Current Conditions During the past 12 months, the city has had to adapt and adjust to changes in management, inflation rates, and supply chain shortages. Inflation rates continue to rise to historic levels and are projected to remain high at least through the first quarter of 2024. This tends to not only impact the City’s purchasing power but also affect lending rates. Supply chain issues will continue to impact project timelines and costs through 2024. The housing market is still strong, and demand continues to be high due to the area’s housing shortage. Additional residents add to several revenue streams but also increase the need for services, which is often times offsetting, negating any revenue gains. Sales tax in FY 2022-2023 should end the year above projections. For FY 2023-2024 we are projecting General Fund Sales Tax Revenues of $1,750,000. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 10 119 Item 11. $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Fund Sales Tax Ten Year History New residential and commercial construction and increased valuations are reflected in an anticipated increase in the property tax base. As always, we take a conservative approach to budgeting revenues. We continue to work on the Capital projects scheduled for this year, and some of these will carry over into next year. In FY 2018-19 we started the engineering work as it relates to relocating utilities due to the widening of FM 455 (TxDOT project) and this project still continues in FY 2023-2024. The IH-35 Expansion project has entered the engineering phase and the relocation of utilities will continue in FY 2023-2024. The City is installing a new advanced metering system for water and electric meters. Installation should start in October 2023 and be completed by the end of the fiscal year. FY 2023- 2024 Budget Highlights Capital Equipment To request departmental capital expenditures, city department directors will complete a request form for each requested expenditure. During individual and group budget meetings, these requests are reviewed along with supporting documentation and options to the request. All capital requests are reviewed to determine if they are in sync with City Council goals and the city’s strategic plan. The departmental capital request forms for these items are included in the Appendix of this document. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 11 120 Item 11. The proposed budget includes the following Capital Equipment. Department Category Description Amount Police Vehicles Replacement CID Vehicle 55,666$ Police Police Equipment Level III Ballistic Shields 44,844$ Police Police Equipment Covert Surveillance Pole Camera 14,500$ Police Vehicles New Tahoe (for new position) 6,175$ Police Vehicles New Tahoe 75,098$ Police Vehicles New Tahoe 75,098$ Fire Buildings Vista Building for a Temporary Firehouse 481,345$ Fire Vehicles C672 Command Vehicle 89,800$ Streets Capital Improvements Traffic Striping: Indian Ln, McReynolds Rd, Lois Ln 169,332$ Parks Vehicles Pickup Truck (replacement) 58,340$ Parks Capital Improvements New Railroad Park Infields 114,820$ Parks Equipment Infield Groomer/Maintainer 37,594$ Waste Water Equipment Push Camera System 12,928$ Waste Water Vehicles Sewer Jetter Truck 177,228$ Electric Equipment Underground Wire Puller 204,849$ Electric Vehicles Service Truck (replacement) 245,668$ Facilities Equipment Audio Visual System for the Historic Church 15,780$ Internal Service Fund Some departments have responsibilities in both the General Fund and Enterprise Fund. To both increase transparency and assist operational efficiency, we have placed those departments in an Internal Service Fund (ISF). This allows us to present a single budget for each department better reflecting that department’s true budget. It also streamlines the purchasing process. For accounting purposes, these departments are allocated to the funds on a monthly basis so that each fund’s true cost can be reflected in the audit. Personnel The 2022-2023 budget saw a substantial change in our compensation package. This included adjusting the pay bands for all staff based on market research of wages in comparable communities, moving from the 6% deposit rate on retirement (TMRS) to 7%, and a 6% allocation for employee merit increases this year. The personnel review system uses a weighted measure in which this percentage will be awarded at 2%. 4%, and 6% levels depending upon performance. In the current economic climate, it is imperative that we stay competitive on wages and benefits to keep from continually losing good employees to other cities. This fiscal year we are proposing to add several new positions that are important to our operations as the city continues to grow: one (1) Police Officer and one (1) Sergeant in the Police Department; one (1) Administrative Assistant in the Fire Department; one (1) Maintenance Worker in the Street Department; one (1) Controller in the Finance Department; and one (1) part-time Human Resource Generalist in the Human Resources Department. In addition, the Fire Chief position is transitioning from a part-time to a full-time position. Operating Expenses We do not directly control many of our operating expenses like health care costs and the price of fuel. Absorbing these costs can leave very little extra money left for the expansion of services. Any proposed increases in operating costs P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 12 121 Item 11. must be accompanied by written justification from the department head. All of the department heads have done a good job in their proposed budgets of keeping operating expenses in check. Capital Projects This year capital projects continuing include work related to the relocation of utilities along FM 455, work related to the relocation of utilities along I-35, the rehabilitation of several streets in the city as well as the installation of a new automated water and electric meter reading system. New projects slated to begin during the year include work on aesthetics along the I-35 corridor, preliminary designs of a new public safety facility, replacement of a waste water line on Keaton Road, and improvements to the water, wastewater, and electrical distribution systems. five-year Capital Projects Summary is included in this document. Reserve In 2014 the City reached its goal of increasing emergency reserves to $2,000,000. In addition to these reserves, the city has two funds that account for reserves earmarked specifically for recovery from storm damage. The Electric Storm Recovery Fund has approximately $1.25M in reserves set aside to repair electric system damage from storms. The General Storm Recovery was established in the 2020-2021 year to set aside designated monies for storm recovery expenses of the General Fund, such as repairing damages to streets or parks. By the end of the 2022-2023 year,this Fund will have a balance of $1M $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 $1,200,000 $1,300,000 2019 2020 2021 2022 2023 Contingency Reserve Funds Five Year History General Fund Enterprise Fund Electric Storm Recovery General Storm Recovery SWOT Analysis A SWOT analysis is a look at the city’s Strengths, Weaknesses, Opportunities and Threats (SWOT). It is intended to give the reader a strategic perspective of current and future issues. These issues have an effect on both revenues and expenditures. Strengths The local economy remains strong as indicated by the steady increase in construction. The unemployment rate has adjusted in Denton County and remains lower than the state average. The area continues to see a large influx of new residents each year and this trend is expected to continue for the foreseeable future. Sanger’s location is one of its greatest strengths and something we continue to aggressively market. Rail and Interstate access and developable industrial land also top the list of Sanger’s strengths. Commercial interest in industrial property has picked up in the last year. We continue to proactively recruit retailers and other businesses. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 13 122 Item 11. Another asset is the quality of life enjoyed by the citizens of Sanger. Sanger residents have access to all of the amenities of the metroplex while enjoying life in a quiet, small-town atmosphere. Access to Lake Ray Roberts is also a quality- of-life asset and an economic boost for Sanger. The sports park has been a tremendous quality of life improvement for our citizens as well. It is well-used and has been well-received by the citizens. It has also been a tremendous advertising tool for Sanger. In 2014, we added a splash park to replace our obsolete swimming pool, another quality- of-life improvement for our citizens to enjoy. In 2018 the 4B board funding allowed the installation of shade structures to cover the bleachers at Porter Park. In 2019 the Board provided grant funding for a community project that involved building an event pavilion at Porter Park. Sanger Electric is another strength enjoyed by the City of Sanger. This revenue not only supports the Enterprise Fund but the Storm Recovery Fund as well. Sanger also enjoys having both a 4A and 4B economic development board. Each of these boards generates over $900,000 annually in revenue. These monies have allowed Sanger to compete economically and make the quality-of- life improvements as mentioned above. 4B funds are currently being used to pay for the debt service on the Porter Sports Complex and other projects. Emergency reserve funds are also a strength. Eventually, every city faces some type of disaster. Be it a tornado, flood, ice storm or another disaster, two things are certain: the city will need money for the recovery efforts, and traditional revenue sources will be negatively impacted at the same time. Having these funds on hand will help us recover as quickly as possible without destroying us financially. Weaknesses To a large extent, cities in Texas are dependent on property taxes to fund their general revenue operations. In Sanger, approximately 50% of general fund operating revenues come from property tax. The weakness here is that over half of the market value of property in Sanger comes from residential improvements. Demand for service is much higher from residential properties than from commercial properties. This means that, when averaged out, residences rarely pay the full amount in property tax for the services they receive from the city. Commercial properties, however, typically generate more property tax than they require in services. Growing our commercial property tax base is essential to providing quality service to our customers while limiting the property tax burden on our residents. Recruiting more industrial and commercial development continues to be a priority. Another weakness is median home prices in Sanger. High demand for homes and a short supply of available properties continue raising average home prices across the state. The most recent report supplied by the Denton County Appraisal District reveals that the average home value in Denton County is $551,484. The same report values the average home in Sanger at $303,903. The lower values result in a much lower tax income per property than in other areas. We need to diversify our housing mix to include houses in higher price ranges that generate higher property taxes. This will also help alleviate the tax burden on families with lower incomes and those with fixed incomes. The Council has established benchmarks that are helping to alleviate this weakness. As a result, we are seeing our average valuation increase. We will continue to proactively encourage this trend at the staff and Council levels to eliminate this weakness. Another weakness that stifles growth is the fact that as the city limit has expanded, we added areas that are not in our water supply CCN. Because the water supply corporation that serves these areas does not provide fire protection, development is severely limited. In recent years, legislation has alleviated this to some extent by providing a P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 14 123 Item 11. mechanism to transfer the CCN. However, the issue still remains a hindrance to growth due to the costs associated with the transfer. The increase in requests for special districts, such as Municipal Utility Districts (MUDs), continues to flood our region. The ease at which these districts can be created has reduced the City’s leverage for mutually beneficial development agreements that would bring many of these districts into the City’s taxing jurisdiction. Instead, these districts tend to fall outside our municipal boundaries but require high expenditure services, primarily fire and emergency medical services, subsidized by Sanger’s General Fund. Opportunities Industrial Development Sanger is uniquely located to service both North Texas and Southern Oklahoma and has hundreds of acres of developable land with both interstate highway and rail access. Sanger must capitalize on these industrial prospects and aggressively market its strengths. To do this will require additional investment in infrastructure to ensure that industrial sites are “shovel ready” when companies are ready to move. To that end, the city has extended water and wastewater lines to potential industrial sites along I-35 to entice industrial development. Residential Development The city has issued 30 single-family residential permits so far this year. Several new phases of existing developments are underway or have residential lots that have just been released for construction. Staff and Council continue to encourage a greater mix in housing and we are still seeing those efforts pay off. Homes in higher price ranges generate higher property taxes but typically require the same amount of services as homes of lesser appraised value. This allows the city to provide services at a lower tax rate, saving everyone on their property taxes. The average home value in Sanger is approximately $303,903. At that value, a home will generate approximately $2,000 in city property tax each year. In comparison, a $450,000 home generates approximately $3,100 at the same tax rate. Simply put, higher-priced homes translate into lower property taxes and increased services for everyone. Commercial Development Commercial development continues to progress at a steady pace. Sanger is experiencing some commercial growth and should see more as the IH-35 and 455 expansion projects begin and work towards final completion. The good news is that Sanger has plenty of developable commercial property. We have invested heavily in bringing utilities to these sites so that they are ready for development. The city must continue to promote commercial development, especially development that generates both property and sales tax. Threats High inflation rates and continued supply chain shortages will be our biggest threat this fiscal year. At this time, it is very difficult to project the long-term impacts on the economy. It is imperative that we monitor it closely and stay ahead of any economic downturn. One threat that bears close watch is the increased cost of health insurance. We typically do not know until late in the budget process if we will face an increase this year or not but an increase is likely. Another significant threat is Senate Bill 2, which makes numerous changes to the process for adopting property tax rates. The bill lowered the city property tax rollback rate from 8.0% to 3.5% with an automatic election required to exceed that percentage. The bill does provide for some concessions such as a $500,000 levy increase threshold for cities under 30,000 population. The provisions of this Bill will continue to impact revenues in the future. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 15 124 Item 11. Understanding the Municipal Budget This section is intended to give the reader an overview of how the budget works. Municipal budgets are governed by Federal and State Statutes and local regulations. The intent here is not to explain every requirement for municipal budgeting but to discuss generally how the budget works. The city operates six major funds. They are the General Fund, Enterprise Fund, 4A Economic Development Fund, 4B Economic Development Fund, Debt Service Funds and Capital Improvement Funds. These funds are explained in detail below. The city’s fiscal year runs from October 1st through September 30th each year. The budget process begins in the spring of each year internally. Budget workshops are held during the summer of each year with the city Council and economic development boards. Public hearings are also held on the budget. The budget must be approved and next year’s property tax rate set before October 1st each year. One important point to make is that revenue numbers in the budget are estimates of what we think will be collected next year. Projected revenues are not sitting in the city’s bank account on October 1st waiting to be used. If revenues do not meet projections, then expenditures must be curtailed to meet those shortfalls. If revenues exceed projections, then excess fund balances at the end of the year can be used to build up reserves, do capital projects or supplant next year’s revenues. General Fund The General Fund is the fund used to finance the operations of the general government. The General Fund includes Public Safety, a portion of Public Works, Community Services, Sanitation, and a portion of Administrative and Support Services. Public Safety includes Police, Municipal Court, Animal Control, Code Enforcement, Fire and Ambulance departments. Sanitation is solid waste, which is contracted out to a third-party operator. Community Services include Development Services and the Library. The Park and Recreation and Street departments are shown on their own to more clearly show the portion of the general fund spent on these departments. Transfer to Other Funds includes transfer to the Internal Service Fund as well as the Capital Improvement Projects Fund. General Fund revenues come from a myriad of sources including property tax, sales tax, court fees, Fire and EMS revenues and franchise fees. By far, the largest revenue stream is property tax. Due to the growth and appreciation of property values, Sanger has enjoyed increasing property taxes over the last twelve years. Property Tax 54% Sales & Mixed Drink Tax 14% Franchise Fees 8% Charges for Services 11% Fees, Fines, Licenses & Permits 10% Miscellaneous 2% Transfers from Other Funds 1% General Fund Revenues by Type 22.0% Police 25.8% Fire 2.1% Municipal Court 6.4% Development Services 6.8… 8.8% Parks 3.1% Library 9.6% Solid Waste 15.5% Transfers to Other Funds General Fund Expenditures by Department P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 16 125 Item 11. Enterprise Fund The Enterprise Fund is made up of utility departments including Water, Wastewater, and Electric. Expenditures include daily operations of the utilities, capital improvements, debt service on bonds for capital improvements as well as transfers to the Internal Service Fund and the Electric Storm Recovery Fund. One increase we have to absorb in the electric utility is the increase in transmission and congestion costs we pay. These costs are regulated by the Electric Reliability Council of Texas (ERCOT) and are used partially to help pay for new transmission lines from West Texas to other parts of the State. The city engaged NewGen Strategies & Solutions, an independent consulting firm, several years ago to make recommendations for rates for the next five years. Council responded to the recommendations by making adjustments to utility billing rates and plans to follow NewGen’s recommendations. In 2023, the City engaged NewGen once again to update the City’s rate study. This year’s budget is based on their recommended utility rates. Water 18% Waste Water 21% Electric 59% Penalties and Fees 1%Miscellaneous 1% Enterprise Fund Revenues by Type 12.2% Water 7.0% Waste Water 50.7% Electric 2.7% Customer Service 27.4% Transfers to Other Funds Enterprise Fund Expenditures by Department Internal Service Fund The Internal Service Fund includes departments with responsibilities in both the General and Enterprise Funds. The Internal Service Fund allows us to show the department's entire budget in one place, making it more transparent and easier to manage. The departments include Non-Departmental costs, Mayor and Council, Administration, Public Works, Engineering, Finance, Facilities Maintenance, and Fleet Services. Instead of each department having a separate budget for each fund, those departments have a single budget in the Internal Service Fund. This makes it easier for the reader to see the true cost of the department without having to look in two different places. It also streamlines cost allocation internally. Economic Development Funds Under Texas Law, certain municipal governments can establish Economic Development Corporations for the purposes of attracting economic development and other limited purposes. These corporations are overseen by boards appointed by the City Council. Sanger is one of the few Cities that has both a 4A and 4B Economic Development Corporation. Both of these corporations receive revenues from a separate ½ cent sales tax. This sales tax generates almost $900,000 each year for each of the corporations. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 17 126 Item 11. Thanks to these two boards the City of Sanger has been able to provide economic development incentives and make park and recreation improvements that it simply could not afford otherwise. While these funds can only be used for limited purposes, having them frees up revenues for other purposes. Debt Service Funds and Capital Projects Funds Long-term, property tax-funded debt is paid from the Debt Service Fund. Likewise, the Enterprise Debt Service Fund accounts for long-term debt supported by utility operations. The Capital Projects Funds are where expenditures on Capital Projects are paid. (There are separate funds for General Capital Projects and Enterprise Capital Projects.) Both debt service and capital projects funds serve as internal service funds used for accounting purposes. Hotel/Motel Tax Fund The expenditure of hotel occupancy tax (HOT) funds is tightly regulated by state law. To ensure that these funds are spent appropriately, they are placed in a separate fund and not commingled with the General Fund. This budget also provides up to $20,000 a year in HOT taxes to the Sanger Chamber of Commerce for marketing. Strategic Planning The City’s Comprehensive Plan contains several strategic goals that guide budgeting through a program of strategic planning for results. Each year, these goals help determine items included in the annual budget. Each Department identified in this budget references the specific comprehensive plan goals that are supported by the operations of that department. A few of these are discussed below for the current year. Street Network - Several years ago, the City developed a multi-year plan to improve aged streets in the City. The 2023- 2024 Phase of this plan is included in the budget, providing $362,401 for street improvements. Country Atmosphere – The budgets of several departments, including Police, Animal Control, Fire, Parks and Administration incorporate the goal of maintaining and improving upon the existing county living atmosphere of Sanger. Looking Toward the Future The Dallas-Fort Worth area continues to add new residents each year. According to the U.S. Census Bureau population estimates, six of the US counties with the largest population growth are located in Texas. We believe this makes Sanger a prime candidate for growth as the DFW area continues to attract new businesses and residents. The northern cities of the DFW area continue to see much growth, and many people are choosing to live in a northern suburb and drive south for work. Easy access via I-35 makes Sanger an excellent choice for people looking to live in a smaller community. Sanger has grown from a railroad stop established in the 1880s into a thriving community that offers residents the best of both worlds: big-city opportunities combined with small-town charm. Sanger’s population has doubled in the past 20 years, growing from 4,534 in 2000 to an estimated 9,470 in 2023. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 18 127 Item 11. 1,204 1,119 1,000 1,170 1,190 1,603 2,574 3,508 4,534 6,916 8,839 9,470 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2023 Population Growth A new Holiday Inn Express opened in 2020 and is seeing business grow as travel in the US picks up after the slump induced by COVID-19. Sanger continues to be an attractive destination for residential and commercial developers alike. The combination of the population growth of the DFW area, Sanger’s ideal position for commuters who want to live in a smaller community, and new business ventures in Sanger point to a bright future for our city. Conclusion The fiscal condition of the City is strong. The commitment to conservative financial policies has positioned Sanger well for the future. This budget again demonstrates a conservative approach to assist us in remaining financially stable. It reflects our commitment to improving the community where we can by utilizing outlays for additions and improvements to amenities and infrastructure, as well as the maintenance of existing assets. Information on the City’s current and past year budgets, as well as other financial information, is available on the City’s website at https://www.sangertexas.org/page/finance_transparency. I would like to thank Clayton Gray for the work he has done in the preparation of this budget, and for providing the historical data on the funds presented. I would like to thank our department heads. They have done a tremendous job of managing their departments through the immense challenges of the past several years by working as a team to provide our community with the highest level of service. I also want to thank the Mayor and Council for their support and leadership. Staff looks forward to working with you all during the implementation of this budget. Respectfully submitted, John Noblitt City Manager P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 19 128 Item 11. STRATEGIC PLANNING FOR RESULTS STRATEGIC GOALS SANGER 2040 COMPREHENSIVE PLAN CAPITAL IMPROVEMENT PLAN ANNUAL BUDGET GOALS & OBJECTIVES ACTIVITY INDICATORS CITIZEN RELATIONSHIPS INFRASTRUCTURE CITY SERVICES MONTHLY REPORTING GUIDING PURPOSE P U R P O S E The guiding purpose of the municipal government of the City of Sanger is to preserve, protect and enhance the quality of life for our citizens. V I S I O N To give vision to the guiding purpose, the Sanger City Council has adopted strategic goals a (page 21) and the Sanger 2040 Comprehensive Plan (page 22) to guide City operations. P L A N To implement this vision for the city, the Annual Budget and Capital Improvement Plan are developed each year as strategic planning documents. The City’s 2022-2023 Annual Budget and Capital Improvement Plan continue with this strategy. R E S U L T S The effectiveness of any plan is measured by results. The City of Sanger’s desired results are to provide quality services to residents, maintain and improve our infrastructure, and develop positive relationships with our citizens. Departments report activity on performance monthly to assure operations are in step with the City’s organizational goals. The City prepares a Monthly Report, which provides a wealth of detailed and useful information from all City departments to the citizens of Sanger. These reports are posted on the City’s website for 24/7 access. The Report for the month of September 2021 is included in this document. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 20 129 Item 11. SANGER 2040 COMPREHENSIVE PLAN The City worked with a third-party consultant to prepare a comprehensive plan tailored to Sanger’s vision and goals over the next 20 to 30 years. View the plan here: https://tx-sanger.civicplus.com/DocumentCenter/View/180/Sanger-Comprehensive-Plan-PDF Land Use & Pattern of Development Community Character Economic Development Housing & Neighborhoods Infrastructure Parks & Environment Transportation /Mobility Downtown City Government Community Health Education Resilience & Flexibility P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 21 130 Item 11. ORGANIZATIONAL CHART P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 22 131 Item 11. AUTHORIZED PERSONNEL 2021-2022 2022-23 2023-24 Police 18.0 20.0 23.0 Animal Control 1.0 1.0 0.0 Fire 35.0 39.0 40.0 Municipal Court 4.0 4.0 4.0 Development Services 6.0 6.0 6.0 Streets 4.0 5.0 5.0 Parks 4.5 6.4 6.4 Recreation 1.0 1.0 0.0 Library 6.0 6.0 6.0 General Fund Totals 79.5 88.4 90.4 Water 7.0 9.0 9.0 Waste Water 3.0 3.0 3.0 Electric 8.0 8.0 8.0 Customer Service 0.0 0.0 3.0 Enterprise Fund Totals 18.0 20.0 23.0 Administration 5.0 2.0 2.0 Public Works Administration 1.0 2.0 2.0 City Secretary 0.0 1.0 1.0 Legal 0.0 1.0 1.0 Finance 6.0 6.0 4.0 Human Resources 0.0 0.0 1.0 Engineering 2.5 0.0 0.0 Marketing 1.0 1.0 1.0 Fleet Services 0.0 0.0 0.0 Facilities 0.0 0.6 0.6 Internal Service Fund Totals 15.5 13.6 12.6 4A Economic Development 0.5 0.5 0.5 4A Fund Totals 0.5 0.5 0.5 4B Economic Development 0.5 0.5 0.5 4B Fund Totals 0.5 0.5 0.5 Total Authorized Personnel 114.0 123.0 127.0 Ge n e r a l En t e r p r i s e F u n d T o t a l s In t e r n a l S e r v i c e Fund & Department The following ten positions are new this year:  Police– One Police Officer & one Sergeant  Fire– One Administrative Assistant and Transition the Fire Chief position from part-time to full-time  Finance – One Controller  Human Resources – One Human Resource Generalist P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 23 132 Item 11. BUDGET CALENDAR Action March 2, 2023 - March 14, 2023 City Manager and Finance Director meet individually with Directors for mid-year budget review Budget Materials Distributed to Departments, which begin working on a requested budget, goals, and long-range plans. City Manager, Finance Director and Directors meet to review individual departmental requested budget, discuss long-range financial plans and goal-setting. April 3, 2023 - June 30, 2023 Preliminary Budget is Prepared. City Manager works with Directors on goal-setting and long-rand planning for departments and the City as a whole. City Council Budget Workshop City Council Budget Workshop Chief Appraiser Certifies Tax Roll Budget Filed with the City Secretary Proposed budget submitted to City Council Submit No-New-Revenue and Voter-Approval Tax Rates to City Council & Council approves a proposed tax rate Public Hearing on Budget Public Hearing on Tax Rate City Council Vote on Approval of Tax Roll City Council Vote on Adoption of Budget City Council Vote on Levying a Tax Rate July 3, 2023 July 17, 2023 July 25, 2023 July 21, 2023 August 21, 2023 August 21, 2023 THE CITY OF SANGER, TEXAS BUDGET CALENDAR FY 2023-2024 Date(s) March 5, 2023 March 28, 2023 August 14, 2023 August 21, 2023 August 7, 2023P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 24 133 Item 11. THE BUDGET PROCESS The fiscal year of the City of Sanger begins on October 1st and ends on September 30th of the following calendar year. This fiscal year establishes both the budget year and the accounting year. The budget is developed at a departmental level. In March, the Finance Director develops worksheets that detail expenditures for the past four years, year to date balances as of March 31st, and projected totals through the end of the current fiscal year. These worksheets are distributed to individual departments for review and completion. Each department prepares an estimate for their projected totals through the end of the fiscal year and estimates for the upcoming year. For any increases or addition of new items to the budget, departments will document the justification for the requested increases. Once the departments have completed the worksheets, they are returned along with any supporting documentation to the Finance Director. The City Manager and the Finance Director meet with each Department Director individually to review the budget worksheets. The City Manager and all City Directors meet an entire day to review each department’s budget requests for the coming year. During both the individual and group meetings, Directors work with the City Manager to identify long-range planning and goal -setting. As the budget process progresses, the City Manager works with departments to focus these goals and plans to ensure they are in line with the City’s overall goals. Revenues are projected based on historical trends, the current economic climate and expected future trends. Personnel expenses are prepared based upon the current year, adjusted as necessary for staffing changes or changes in the cost of benefits. Utility expenses are projected based on the current and prior years, modified where applicable due to utility rate changes or changes to City facilities. It is important during the budget process to consider not only the present but also the past and the future. Current conditions considered for this budget include the number of utility customers the City serves; the staffing level required to provide services to citizens; and how COVID-19 and inflation have affected the City’s operating costs. The past holds valuable information including items such as historical trends of sales tax revenues and the rate of change in property values for property tax projections. Future considerations to be considered include: the number of new houses expected to be built in the next twelve months; the number and size of businesses scheduled to open in the near future; and planned development along the I-35 corridor that runs through Sanger. To help plan for the future, this budget contains a five-year projected budget for the General Fund. The departmental budget worksheets are combined with revenues, personnel and utility expenses to prepare a working budget, which is reviewed by the City Manager. The City Manager and the Finance Director meet with each department to review and discuss the requested budget in detail. These meetings assist the City Manager in determining priorities for the budget. The Denton County Chief Appraiser will certify the tax roll during July, allowing the City to propose a tax rate and estimate property tax revenues. A series of public budget workshops are held with the City Council, allowing for citizen input for the budget process. These workshops allow the City Council to formulate its priorities for the proposed budget. Following these workshops, the proposed budget is formulated. This proposed budget is filed with the City Secretary before the end of August and is published on the City’s website for citizen review. Public hearings on the proposed budget and property tax rate are scheduled to allow for citizen input. Following the public hearings, the budget may be adopted. The budget may be adopted at any regular or special meeting of the City council prior to the beginning of the fiscal year. On final adoption, the budget is in effect for the budget year. During the year, the City Council may amend or P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 25 134 Item 11. change the budget to provide for any additional expense. Section 9.05 of the City’s Charter states “Under conditions which may arise and which could not reasonably have been foreseen in the normal process of planning the budget, the Council may, by a majority vote of the full membership, amend or change the budget to provide for any additional expenses in which the general welfare of the citizenry is involved. These amendments shall be by ordinance, and shall become an attachment to the original budget.” In February and August, the City Manager and the Finance Director meet individually with each Department Director to compare operations year to date with the annual budget. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 26 135 Item 11. LIST OF FUNDS GENERAL FUND: This is the general operating fund for the City, utilized to account for all resources not required to be accounted for in another fund. The basis of accounting for financial reporting and budgeting is the modified accrual basis. DEBT SERVICE FUNDS: This governmental fund type is used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Debt Service Funds of the City include the General Debt Service Fund and the Enterprise Debt Service Fund. The basis of accounting for financial reporting and budgeting is the modified accrual basis. CAPITAL PROJECTS FUNDS: These funds were established to account for resources used for the acquisition and construction of capital facilities by the City. Capital Projects Funds of the City include Capital Projects Fund and Enterprise Capital Projects Fund. The basis of accounting for financial reporting and budgeting is the modified accrual basis. SPECIAL REVENUE FUNDS: These funds are used to account for the revenue derived from specific taxes or other earmarked revenue sources (other than for major capital projects) that are restricted by law or administrative action to expenditures for specified purposes. Special Revenue funds of the City include Hotel/Motel Tax Fund; General Storm Recovery Fund; Enterprise Storm Recovery Fund; Beautification Fund; Library Restricted Fund; Parkland Dedication Fund; Roadway Impact Fee Fund; Court Security Fund; Court Technology Fund; Child Safety Fund; Police Donations Fund; Fire Donations Fund; Park Donations Fund, and Library Donations Fund. The basis of accounting for financial reporting and budgeting is the modified accrual basis. GO V E R N M EN T A L FU N D S ENTERPRISE FUND: This fund accounts for the operations and financing of self-supporting activities of a governmental unit that renders services on a user charge basis to the general public, similar to private business enterprises. The basis of accounting for financial reporting and budgeting is the accrual basis. INTERNAL SERVICE FUND: This fund accounts for the financing of centralized services to different funds and City departments on a cost reimbursement basis. The basis of accounting for financial reporting and budgeting is the modified accrual basis. 4A CORPORATION FUND: This fund accounts for the operations and financing of self- supporting activities of the Sanger Texas Industrial Development Corporation. Funded by a ½ cent sales tax, this fund is used to help new and existing businesses expand in Sanger with a primary goal of bringing jobs to Sanger. The basis of accounting for financial reporting and budgeting is the modified accrual basis. 4B CORPORATION FUND: This fund accounts for the operations and financing of self- supporting activities of the Sanger Texas Economic Development Industrial Corporation. Funded by a ½ cent sales tax, this fund is used to enhance the local economy by improving the quality of life in Sanger. The basis of accounting for financial reporting and budgeting is the modified accrual basis. PRO P R I E T A R Y FU N D S FI DU C I A R Y FU N D S P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 27 136 Item 11. FUND RELATIONSHIPS WITH FUNCTIONAL AREAS Administration Public Safety Community Development Public Works Culture & Recreation General Police, Animal Control, Fire, Municipal Court Development Services Streets, Solid Waste Parks & Recreation, Library Debt Service Debt Service Enterprise Water, Waste Water, Electric Enterprise Debt Service Debt Service Internal Service City Council, Administration, City Secretary, Legal, Finance, Human Resources, Facilities Public Works Administration 4A 4A 4B 4B Capital Projects Administration Public Works Administration Enterprise Capital Projects Administration Public Works Administration Hotel/Motel Administration General Storm Recovery Administration Electric Storm Recovery Administration Beautification Administration Library Restricted Library Parkland Dedication Administration Roadway Impact Fee Administration Court Security Court Court Technology Court Child Safety Police Forfeited Property Police Police Donations Police Fire Donations Fire Park Donatoins Parks Library Donations Library F U N C T I O N A L A R E A F U N D P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 28 137 Item 11. ABOUT SANGER OVERVIEW The City of Sanger, Texas 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 to citizens. LOCATION Sanger is strategically located along in Northern Denton County and occupies 10.9 square miles along Interstate 35. The city’s location, services and amenities make it a wonderful place to live. Uniquely situated 50 miles from both Dallas and Fort Worth, Sanger offers residents the amenities of a major metropolitan area while retaining a small-town quality of life. In addition, the Dallas/Fort Worth International Airport is 38 miles away. Sanger is located minutes from the shores of Lake Ray Roberts, the 6th largest lake in Texas. Sanger is also located in “horse country”, as Denton County has more working horse ranches than any other county in the United States. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 29 138 Item 11. HISTORY During the rapid expansion of railroads following the Civil War, the Gulf, Colorado & Santa Fe Railway grew from South Texas northward, through the area that is today known as Sanger. The railroad selected a spot between Fort Worth and Gainesville for a new stop. The railroad had two reasons for selecting this particular spot. First, the steam locomotives of the day required frequent stops to replenish the engine’s water supply. Second, this spot was close to the Chisholm Trail. Cattle drives were a major economic activity at the time and the Chisholm Trail was the most important route for cattle drives leaving Fort Worth. In a relatively short time, the railroad would replace the Chisholm Trail as the means for moving cattle north out of Texas. In 1886, the railroad purchased land from Mrs. Elizabeth Huling of Lampasas, Texas and built a one-room depot, cattle pens and loading chute on the site. Mrs. Huling hired two surveyors to lay out a town around the railroad stop, and she donated land for a wagon yard, water well, school, town square, cemetery, and a church. Lots were laid out for stores and homes, and lots were given to anyone who would build a house costing at least $500. The city was originally named Huling in her honor. The community’s name was changed to New Bolivar for a short time. The railroad officially named the town Sanger in 1887 in honor of railroad customers Lehman, Isaac, Alex, Sam and Philp Sanger. Pioneers in the dry goods wholesale and resale industry in Texas, the Sanger Brothers built a chain of stores in railroad towns to utilize the trains to move merchandise. Although the city was named in their honor, the Sanger Brothers never lived in the city or operated a store here. Rail service began when the first trains came through in 1887. Cattle began loading the trains as soon as service to Kansas City was established. The first residents of the area were Francis and Melissa Ready and their daughter Molly. In the spring of 1887, the family sought refuge from a snow storm in the depot as they were passing through, and decided to stay. The family built a one-room cabin, and Mrs. Ready cooked meals for the cowboys who drove the cattle to the pens. Mr. Ready later built a hotel near the pens, and operated a post office in the lobby after he was commissioned postmaster. The City of Sanger was incorporated in 1892 and William E. Partlow was elected the first Mayor of Sanger. Business thrived in the following years and led to the growth of the City. Thanks to a large mill and grain elevator, Sanger became a large farming community. At some point, a fire destroyed the depot and the railroad built a new station that included a larger depot building, waiting rooms, a Western Union telegraph office, and a Wells Fargo freight office. The depot operated 24 hours a day, 6 days a week. Around 1900, ranchers began trucking cattle to Fort Worth instead of shipping them to Kansas City. At the time when the trains stopped shipping cattle, resourceful individuals began using the railroad to ship dairy cream to Fort Worth and Ardmore, Oklahoma. Texas State Highway 40 ran through the area and became a portion of US Route 77 in 1929. Interstate 35 was built along the route in the early 1960’s. As the railroad replaced the cattle trail, the highway system replaced the railway as the conduit that brought visitors and business to Sanger. The years following World War II saw the decline of railroads nationwide, and the Sanger depot eventually closed. Interstate 35 serves the heartland of America, running from South Texas to Minnesota. According to the Texas Department of Transportation, more than 50,000 vehicles pass through Sanger on I-35 daily. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 30 139 Item 11. QUICK FACTS LOCATION Sanger is located along Interstate 35 in northern Denton County in north Texas. Sanger is located less than an hour from both Dallas and Fort Worth. AREA 10.9 square miles FORM OF GOVERNMENT Council-Manager INCORPORATION 1892 POPULATION 9,470 (01/01/2022 estimate) TRANSPORTATION Interstate 35 DFW Airport - 39 miles Love Field - 48 miles BNSF Railway CLIMATE Köppen Climate Classification “Cfa” (Humid Subtropical Climate) Average temperature 64º Average Precipitation 14.9” SALES TAX RATE 6.25% State of Texas 1.00% City of Sanger 0.50% 4A Corporation 0.50% 4B Corporation BOND RATING AA+ (Standard & Poor’s) TOP 10 PROPERTY TAXPAYERS Wal-Mart Stores East, L.P. US06068 Wal-Mart Stores East, L.P. Trails of Sanger Apartments LLC Ramar Land Corporation Maccamp LTD Sanger Lodging, LLC Paccar Financial LGI Homes-Texas LLC Williamsburg Construction Services Springer Properties LLC P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 31 140 Item 11. LOCAL EVENTS Sanger takes pride in the small-town charm it offers. Although many events were cancelled as a result of the COVID-19 pandemic, the City began offering more regular events during the past year. Here are some of the events that usually happen each year in Sanger. FEBRUARY Mother-Son Valentine Dance MARCH Spring Clean Up Day APRIL City-wide Easter Egg Hunt JUNE Summer Reading Program JULY Freedom Fest AUGUST Back 2 School Bash SEPTEMBER Songwriter Festival Fishing Derby OCTOBER Sanger Clean-up Day Sanger “Sellabration” Halloween Trick or Treat DECEMBER Christmas on the Square Christmas Parade Santa Around Town ONGOING Baseball & Softball Leagues Concerts in the Park Preschool Story Time P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 32 141 Item 11. STATISTICS 2317 25 35 157 133 132 0% 20% 40% 60% 80% 100% Housing Units 1 1 Unit 2 Units 3 or 4 Units 5 to 9 Units 10+ Units Mobile Home/Other 1, 2 0 4 1, 1 1 9 1, 0 0 0 1, 1 7 0 1, 1 9 0 1, 6 0 3 2, 5 7 4 3, 5 0 8 4, 5 3 4 6, 9 1 6 8, 8 3 9 9, 4 7 0 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 192019301940195019601970198019902000201020202022 Population Growth 1,2 11% Under 5 13% 5 to 14 12% 15 to 24 15% 25 to 34 16% 35 to 44 11% 45 to 54 10% 55 to 64 6% 65 to 74 6% Over 75 Population Age Distribution 1 MAJOR EMPLOYERS 1,000+ Employees: • Wal-Mart Distribution Center 200 – 499 Employees: • R & L Carriers • Sanger Independent School District • Sam’s Distribution Center 50-100 Employees: • City of Sanger • A&W Productions • Eikon Engineering • Babe’s Chicken 20-50 Employees: • Holiday Inn Express • Hollingsworth Manufacturing • McClain’s RV Super Store • Miguelito’s Mexican Restaurant • North Texas Plastics • Sanger Bank SCHOOLS 2 Butterfield Elementary School Chisholm Trail Elementary School Clear Creek Intermediate School Sixth Grade Campus Sanger Middle School Linda Tutt High School Sanger High School University of North Texas (Denton) Texas Women’s University (Denton) North Central Texas College (Gainesville) 1 factfinder.census.gov 2 North Central Texas Council of Governments 3 Sanger Economic Development Corporation P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 33 142 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 34 143 Item 11. BU D G E T S U M M A R Y P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 35 144 Item 11. 2023-2024 BUDGET AT A GLANCE WHERE DOES THE MONEY COME FROM? Charges for Services $15,319,412 43% Property Taxes $8,764,833 25% Fines, Fees, Licenses & Permits $2,484,575 7% Sales & Mixed Drink Taxes $3,518,000 10% Franchise Fees $1,060,095 3% Other $4,466,500 12% TOTAL REVENUES = $35.4 MILLION (EXCLUDES OTHER SOURCES) P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 36 145 Item 11. HOW IS THE MONEY USED? Capital Assets / Infrastructure $22,201,718 43% Public Works/Utilities $12,601,838 24% Public Safety $6,501,460 12% General Government $3,847,630 7% Debt Service $4,213,919 8% Economic & Community Development $1,379,120 3% Culture & Recreation $1,558,035 3% Total Expenditures = $52.1 Million (Excludes Inter-Fund Transfers) P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 37 146 Item 11. 2023-2024 BUDGET BY FUND REVENUES BY FUND General Fund $12,911,562 36.25% Debt Service Fund $1,689,441 4.74%Enterprise Fund $14,359,412 40.32% Enterprise Debt Service Fund $25,000 0.07% 4A Fund $915,000 2.57% 4B Fund $910,000 2.56% Capital Projects Fund $50,000 0.14% Enterprise Capital Projects Fund $4,400,000 12.35% Special Revenue Funds $353,000 0.99% Total Revenues = $35.4 Million (EXCLUDES OTHER SOURCES) P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 38 147 Item 11. EXPENDITURES BY FUND General Fund $11,037,772 21% Debt Service Fund $1,849,247 4% Enterprise Fund $11,351,838 22% Enterprise Capital Project Fund $15,677,910 30% Internal Service Fund $3,735,630 7% 4A Fund $174,625 0% 4B Fund $362,625 1% Capital Projects Fund $5,637,401 11% Enterprise Debt Service Fund $2,364,672 4% Special Revenue Funds $112,000 0% Total Expenditures = $52.1 Million (Excludes Inter-Fund Transfers) P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 39 148 Item 11. COMBINED FUNDS SUMMARY (DETAILED) COMBINED SUMMARY OF REVENUES, EXPENDITURES AND CHANGES TO FUND BALANCE FOR ALL FUNDS SUBJECT TO APPROPRIATION General Fund Debt Service Fund Enterprise Fund Enterprise Debt Service Fund Internal Service Fund Beginning Fund Balance 15,517,167 389,833 20,239,230 1,191,947 - Revenues Property Tax 7,100,392 1,664,441 - - - Sales & Mixed Drink Tax 1,768,000 - - - - Franchise Fees 1,060,095 - - - - Charges for Services 1,364,000 - 13,955,412 - - Fees 820,260 - 210,000 - - Licenses & Permits 309,500 - - - - Fines 170,315 - - - - Interest Income 200,000 25,000 75,000 25,000 - Miscellaneous 119,000 - 119,000 - - Total Revenues 12,911,562 1,689,441 14,359,412 25,000 - Other Sources Transfers In 146,535 180,000 - 2,339,672 3,735,630 Use of Bond Proceeds - - - - - Use of Fund Balance - - 1,279,913 - - Total Other Sources 146,535 180,000 1,279,913 2,339,672 3,735,630 Total Revenues/Sources 13,058,097 1,869,441 15,639,325 2,364,672 3,735,630 Expenditures Salaries & Benefits 6,424,940 - 2,038,260 - 1,775,120 Supplies & Materials 435,640 - 194,289 - 675,952 Maintenance & Operations 722,443 - 7,685,395 - 92,500 Contract Services 2,011,420 - 483,721 - 1,021,278 Utilities 208,332 - 305,500 - 155,000 Capital Expenses 549,928 - 642,673 - 15,780 Debt Service 51,535 1,849,247 2,000 2,364,672 - Court Costs 62,389 - - - - Grant Expenses 571,145 - - - - Total Expenditures 11,037,772 1,849,247 11,351,838 2,364,672 3,735,630 Other Uses Transfers Out 2,020,325 51,535 4,287,487 - - Total Other Uses 2,020,325 51,535 4,287,487 - - Total Expenses/Uses 13,058,097 1,900,782 15,639,325 2,364,672 3,735,630 Excess of Revenues/Sources - (31,341) - - - over Expenditures/Uses Ending Fund Balance 15,517,167 358,492 20,239,230 1,191,947 - P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 40 149 Item 11. 4A Fund 4B Fund Capital Projects Fund Enterprise Capital Projects Fund Special Revenue Funds Total Beginning Fund Balance 4,133,503 2,747,684 2,931,440 6,590,430 4,444,669 58,185,903 Revenues Property Tax - - - - - 8,764,833 Sales & Mixed Drink Tax 875,000 875,000 - - - 3,518,000 Franchise Fees - - - - - 1,060,095 Charges for Services - - - - - 15,319,412 Fees - - - 750,000 210,000 1,990,260 Licenses & Permits - - - - - 309,500 Fines - - - - 14,500 184,815 Interest Income 40,000 35,000 50,000 150,000 58,000 658,000 Miscellaneous - - - 3,500,000 70,500 3,808,500 Total Revenues 915,000 910,000 50,000 4,400,000 353,000 35,613,415 Other Sources Transfers In - - 167,510 - - 6,569,347 Use of Bond Proceeds - - 3,000,000 8,270,903 - 11,270,903 Use of Fund Balance - - - - - 1,279,913 Total Other Sources - - 3,167,510 8,270,903 - 19,120,163 Total Revenues/Sources 915,000 910,000 3,217,510 12,670,903 353,000 54,733,578 Expenditures Salaries & Benefits 63,475 63,475 - - 2,000 10,367,270 Supplies & Materials 85,250 73,250 - - 43,000 1,507,381 Maintenance & Operations 900 900 - - - 8,502,138 Contract Services 25,000 165,000 - - 67,000 3,773,419 Utilities - - - - - 668,832 Capital Expenses - - 5,637,401 15,677,910 - 22,523,692 Debt Service - - - - - 4,267,454 Court Costs - - - - - 62,389 Grant Expenses - 60,000 - - - 631,145 Total Expenditures 174,625 362,625 5,637,401 15,677,910 112,000 52,303,720 Other Uses Transfers Out 15,000 195,000 - - - 6,569,347 Total Other Uses 15,000 195,000 - - - 6,569,347 Total Expenses/Uses 189,625 557,625 5,637,401 15,677,910 112,000 58,873,067 Excess of Revenues/Sources 725,375 352,375 (2,419,891) (3,007,007) 241,000 (4,139,489) over Expenditures/Uses Ending Fund Balance 4,858,878 3,100,059 511,549 3,583,423 4,685,669 54,046,414 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 41 150 Item 11. COMBINED FUNDS BUDGET SUMMARY COMBINED BUDGET SUMMARY FOR ALL FUNDS SUBJECT TO APPROPRIATION Beginning Fund Balance 43,839,978 48,811,186 48,811,186 58,185,903 Revenues Property Tax 5,680,724 6,242,940 6,269,427 8,764,833 Sales & Mixed Drink Tax 2,654,271 3,111,000 3,068,753 3,518,000 Franchise Fees 1,021,473 1,009,895 1,041,455 1,060,095 Charges for Services 14,113,781 14,004,406 13,546,939 15,319,412 Fees 1,758,504 1,704,431 1,784,394 1,990,260 Licenses & Permits 343,838 373,500 418,863 309,500 Fines 146,983 170,005 147,386 184,815 Interest Income 571,244 454,850 681,869 658,000 Miscellaneous 187,629 2,855,335 3,042,972 3,808,500 Total Revenues 26,478,447 29,926,362 30,002,058 35,613,415 Other Sources Transfers In 6,978,987 6,385,259 5,846,469 6,569,347 Use of Bond Proceeds 6,000,000 15,426,165 23,599,704 11,270,903 Use of Fund Balance - 2,093,953 - 1,279,913 Total Other Sources 12,978,987 23,905,377 29,446,173 19,120,163 Total Revenues/Sources 39,457,434 53,831,739 59,448,231 54,733,578 Expenditures Salaries & Benefits 6,742,748 9,322,300 7,891,244 10,367,270 Supplies & Materials 883,728 1,235,606 951,691 1,507,381 Maintenance & Operations 6,791,546 8,028,181 6,494,929 8,502,138 Contract Services 2,212,236 3,228,084 2,940,441 3,773,419 Utilities 525,323 680,635 632,384 668,832 Capital Expenses 7,575,221 19,822,683 22,163,984 22,523,692 Debt Service 2,274,866 2,522,850 2,613,511 4,267,454 Court Costs 47,889 68,870 54,535 62,389 Grant Expenses 5,000 106,000 45,000 631,145 Total Expenditures 27,058,557 45,015,209 43,787,719 52,303,720 Other Uses Transfers Out 7,427,669 6,285,795 6,285,795 6,569,347 Total Other Uses 7,427,669 6,285,795 6,285,795 6,569,347 Total Expenses/Uses 34,486,226 51,301,004 50,073,514 58,873,067 Excess of Revenues/Sources over Expenditures/Uses Ending Fund Balance 48,811,186 51,341,921 58,185,903 54,046,414 4,971,208 2,530,735 9,374,717 (4,139,489) 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 42 151 Item 11. FU N D S I N D E T A I L P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 43 152 Item 11. GENERAL FUND OVERVIEW The General Fund is the principle operating fund for resources (revenues) and uses of resources (expenditures) for what are generally recognized as governmental functions and services. In general, all activities are recorded in this fund unless there is a managerial or legal reason for it to be recorded in another fund. The General Fund receives revenues from property taxes, sales taxes, franchise fees, fines, fees for service, interest income and other miscellaneous general revenue sources. The General Fund includes these departments: o Police o Fire o Municipal Court o Development Services o Streets o Parks & Recreation o Library o Solid Waste The basis of accounting for the General Fund for both financial reporting and budgeting is the modified accrual basis. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 44 153 Item 11. GENERAL FUND BUDGET SUMMARY Property Tax 54% Sales & Mixed Drink Tax 14% Franchise Fees 8% Charges for Services 11%Fees 6%Licenses & Permits 2%Fines 1% Interest Income 2% Miscellaneous 1% Transfers In 1% Use of Fund Balance 0% GENERAL FUND REVENUES Salaries & Benefits 58% Supplies & Materials 4% Maintenance & Operations 7% Contract Services 18% Utilities 2% Capital Expenses 5% Debt Service 0% Court Costs 1% Grant Expenses 5% GENERAL FUND EXPENDITURES P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 45 154 Item 11. GENERAL FUND BUDGET SUMMARY Beginning Fund Balance 10,922,479 12,055,861 12,055,861 15,517,167 Revenues Taxes 6,718,130 7,599,455 7,627,025 8,868,392 Franchise Fees 1,021,473 1,009,895 1,041,455 1,060,095 Solid Waste 1,050,830 1,262,000 1,088,000 1,364,000 Licenses & Permits 343,838 373,500 418,863 309,500 Fines 132,316 155,755 132,576 170,315 Fire & EMS 839,578 466,890 756,062 780,000 Police & Animal Control 51,993 60,621 3,472 4,500 Parks & Recreation 20,781 14,000 12,660 14,750 Library 20,309 22,920 18,285 21,010 Interest Income 217,029 225,000 234,076 200,000 Miscellaneous 45,231 2,696,335 2,818,757 119,000 Total General Fund Revenues 10,461,508 13,886,371 14,151,231 12,911,562 Other Sources Transfers In 151,535 152,428 152,428 146,535 Use of Fund Balance - 782,761 - - Total Other Sources 151,535 935,189 152,428 146,535 Total Revenues/Sources 10,613,043 14,821,560 14,303,659 13,058,097 Expenditures Salaries & Benefits 3,739,231 5,718,800 4,629,850 6,424,940 Supplies & Materials 350,536 466,421 364,518 435,640 Maintenance & Operations 405,763 549,413 560,060 722,443 Contract Services 1,428,687 1,902,259 1,736,008 2,011,420 Utilities 136,261 228,535 222,155 208,332 Capital Expenses 494,100 1,522,188 1,522,188 549,928 Debt Service 51,535 51,535 51,535 51,535 Court Costs 47,889 68,870 54,535 62,389 Grant Expenses - 56,000 20,000 571,145 Total Expenditures 6,654,002 10,564,021 9,160,849 11,037,772 Other Uses Transfers Out 2,825,659 1,681,504 1,681,504 2,020,325 Total Other Uses 2,825,659 1,681,504 1,681,504 2,020,325 Total Expenses/Uses 9,479,661 12,245,525 10,842,353 13,058,097 Excess of Revenues/Sources over Expenditures/Uses Ending Fund Balance 12,055,861 14,631,896 15,517,167 15,517,167 1,133,382 2,576,035 3,461,306 - 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 46 155 Item 11. GENERAL FUND REVENUES Taxes Property Tax 5,434,597 6,038,455 6,073,138 7,040,392 Delinquent Prop. Tax 47,205 25,000 22,213 30,000 Penalty & Interest Prop. Tax 37,031 25,000 19,591 30,000 Sales Tax 1,185,344 1,500,000 1,500,000 1,750,000 Mixed Drink Tax 13,953 11,000 12,083 18,000 Total Taxes 6,718,130 7,599,455 7,627,025 8,868,392 Franchise Fees ATMOS 63,021 67,000 77,389 75,000 Suddenlink 37,813 26,000 24,024 32,000 Nortex 2,061 3,000 3,318 3,200 COSERV 162,413 144,000 166,829 175,000 City of Sanger Water 119,134 123,383 123,383 123,383 City of Sanger Sewer 140,229 146,612 146,612 146,612 City of Sanger Electric 410,400 410,400 410,400 410,400 Progressive 60,851 62,000 64,000 67,000 Roll-offs 18,318 20,000 20,500 20,000 ROW fees 7,233 7,500 5,000 7,500 Total Franchise Fees 1,021,473 1,009,895 1,041,455 1,060,095 Solid Waste Sanitation Billing 1,038,405 1,250,000 1,075,000 1,350,000 Sanitation Penalties 12,425 12,000 13,000 14,000 Total Solid Waste 1,050,830 1,262,000 1,088,000 1,364,000 Licenses & Permits Building Permits 237,755 300,000 287,000 200,000 Zoning and Plats 47,786 20,000 43,230 35,000 Engineering Inspection Fee 653 1,000 11,685 20,000 Civil Plan Review Fees 9,830 1,000 26,170 10,000 Street Cut Permit 0 1,000 300 1,000 Health Permits 15,338 17,500 16,000 16,000 Fire Alarm/Sprinkler 15,573 15,000 22,478 15,000 Solicitor Permits 5,425 5,000 1,000 1,000 RV Park Annual Permit 1,500 1,500 1,500 1,500 Beer & Wine Permit 2,845 1,500 1,500 2,500 Mowing Fees 7,133 10,000 8,000 7,500 Total Licenses & Permits 343,838 373,500 418,863 309,500 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 47 156 Item 11. GENERAL FUND REVENUES Fines Default/Court 969 750 738 500 Judicial Fee- County-JFCT 80 150 86 150 Judicial Fee-City 9 50 10 50 Local Municipal Jury 53 150 53 150 State Traffic Fee 8,988 17,900 9,294 15,000 Consolidated Court Fee 33,237 39,800 32,735 42,000 State Jury Fee - SJRF 59 100 147 200 Child Safety Court Cost 433 2,000 360 700 Administrative Fee $20 170 300 213 300 Special Expense Fee 15,930 21,100 14,498 22,000 Truancy Prevention Fund 2,657 3,200 2,854 3,600 Fines 55,475 52,500 58,233 70,000 Impound Fees 181 0 0 0 Warrant Fees - FTA 4,300 4,500 3,600 3,000 Arrest Fees 2,313 3,000 2,484 3,500 Traffic Code 545 1,100 564 1,500 Civil Justice Fee 2 5 1 5 Defensive Driving Fee 270 1,000 280 1,000 Time Payment Local 760 700 653 700 Municipal Service Bureau 4,740 6,000 4,602 5,000 Time Payment State 85 200 83 100 Truancy Defensive Fund 30 50 32 60 TLFTA1 480 700 533 300 TLFTA2 330 300 320 300 TLFTA3 220 200 203 200 Total Fines 132,316 155,755 132,576 170,315 Fire & EMS Fire Denton Co. Interlocal 30,800 10,000 30,150 30,000 EMS Denton Co. Interlocal 177,550 161,390 162,500 175,000 Fire Grant Funding 0 0 0 175,000 Emergicon Revenue 387,750 295,500 366,051 400,000 Texas Supplemental Amb 179,590 0 180,430 0 Emergency Relief Reimbursement 63,888 0 16,931 0 Total Fire & EMS 839,578 466,890 756,062 780,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 48 157 Item 11. GENERAL FUND REVENUES Police and Animal Control Animal Control Fees 1,445 1,250 1,080 1,500 Police Fees 2,212 3,000 2,392 3,000 Sanger ISD Resource Officer 48,336 56,371 0 0 State Reimbursements 0 0 0 0 Total Police and Animal Control 51,993 60,621 3,472 4,500 Parks & Recreation Community Center Fees 10,605 7,500 7,895 7,500 Park & Ballfield Revenues 2,510 4,000 3,765 1,750 Special Events 3,046 0 0 3,000 Church Rental Fees 4,620 2,500 1,000 2,500 Total Parks and Recreation 20,781 14,000 12,660 14,750 Library Library Misc. 448 200 524 200 Library Fines 123 60 47 60 Library Copies 1,925 3,000 1,991 3,000 Inter Library loan 43 50 41 0 Library Cards 43 60 75 0 Lost Books 252 350 541 350 Yoga Class Charges 75 1,800 0 0 Denton Co Interlocal Agreement 17,400 17,400 15,066 17,400 Total Library 20,309 22,920 18,285 21,010 Interest Income 217,029 225,000 234,076 200,000 Interest Income 217,029 225,000 234,076 200,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 49 158 Item 11. GENERAL FUND REVENUES Miscellaneous Income Rental Income 20,352 22,500 210,422 22,500 Misc. Income GF 11,692 50,000 1,563 25,000 Tax Certificate 0 2,573,835 2,573,835 0 Event Sponsorships 9,000 0 28,400 17,500 Vendor Fees 200 3,204 4,000 Proceeds from Sale of Assets 6 25,000 0 25,000 Insurance Damage Reimbursement 3,981 25,000 1,333 25,000 Total Miscellaneous 45,231 2,696,335 2,818,757 119,000 Total General Fund Revenues 10,461,508 13,886,371 14,151,231 12,911,562 Other Sources PILOT from EF 95,000 95,000 95,000 95,000 From DSF 51,535 51,535 51,535 51,535 From Police Donations Fund 5,000 0 0 0 Transfer from Forfeited Property Fund 0 5,893 5,893 0 Use of Fund Balance 0 782,761 0 0 Total Transfers 151,535 935,189 152,428 146,535 Total General Fund Revenues/Sources 10,613,043 14,821,560 14,303,659 13,058,097 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 50 159 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 51 160 Item 11. POLICE The City of Sanger Police Department provides law enforcement services for the City. It is tasked with upholding and protecting the safety and security of citizens and visitors to the City of Sanger. Mission Statement To enhance the quality of life in the City through a proactive and professional level of police service; to maintain a strong commitment to excellence; to ensure safety through integrity, trust, and accountability; to treat all persons with respect, dignity, and equality; and to build partnerships with the community to meet current and future challenges. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger. PERFORMANCE INDICATORS Indicator 2019-20 2020-21 2021-22 Response to Calls 7,135 8,877 7,757 Citations Issued 356 688 704 Warnings Issued 320 823 928 BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 Police Chief 1 1 1 Assistant Police Chief 1 1 0 Lieutenant 1 1 2 Sergeant 2 2 4 Detective 2 2 2 Police Officer 10 11 12 Administrative Assistant 1 1 1 Clerk / Property Room Technician 0 1 1 Total Budgeted Positions 18 20 23 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 52 161 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 1,368,483 1,946,400 1,602,549 2,193,720 247,320 12.71% Supplies & Materials 97,891 96,542 88,275 94,010 (2,532) -2.62% Maintenance & Operations 113,251 91,000 96,447 99,500 8,500 9.34% Contract Services 75,389 121,773 137,154 204,220 82,447 67.71% Utilities 7,687 10,200 6,015 12,600 2,400 23.53% Capital Expenses 290,174 202,524 202,524 265,206 62,682 30.95% Total Department Budget 1,952,875 2,468,439 2,132,964 2,869,256 400,817 16.24% EXPENDITURE BY CATEGORY - 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities Capital Expenses EXPENDITURE ALLOCATION 77.2% Salaries & Benefits 3.7% Supplies & Materials 4.5% Maintenance & Operations 7.9% Contract Services 0.3% Utilities 6.4% Capital Expenses P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 53 162 Item 11. ANIMAL CONTROL The City of Sanger Animal Control Department was absorbed into the Police Department budget for the 2023- 2024 year, following a change to outsourcing the function. Departmental information is presented here for previous years. BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 Animal Control Officer 1 1 0 Total Budgeted Positions 1 1 0 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 54 163 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 60,046 71,000 14,672 - (71,000) -100.00% Supplies & Materials 55,762 69,400 104,850 - (69,400) -100.00% Maintenance & Operations 4,434 1,500 1,000 - (1,500) -100.00% Capital Outlay - - - - - - Total 120,242 141,900 120,522 - (141,900) -100.00% EXPENDITURE BY CATEGORY - 20,000 40,000 60,000 80,000 100,000 120,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Capital Outlay P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 55 164 Item 11. FIRE The City of Sanger Fire Department is responsible for all facets of fire suppression and prevention within the City and surrounding area of the county. It is a combination department made up of paid staff and volunteers. The fire station is staffed around the clock for rapid response to emergencies. Other duties include rescue, emergency medical services and public education. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger. PERFORMANCE INDICATORS Indicator 2019-20 2020-21 2021-22 False Alarm Calls 76 74 107 Good Intent Calls 132 132 171 Service Calls 366 483 443 Hazardous Materials Calls 7 25 37 Emergency Medical Incidents 1,041 1,128 1,324 Explosion Calls 0 3 1 Fire Calls 44 108 133 BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 Fire Chief (Full-time) 0 0 1 Fire Chief (Part-time) 1 1 0 Assistant Fire Chief 0 1 1 Fire Marshall/Inspector 1 1 1 Lieutenant 3 3 3 Firefighter/Paramedic 9 12 13 Administrative Assistant 0 0 1 Firefighter/Paramedic (Part-time) 21 21 21 Total Budgeted Positions 35 39 40 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 56 165 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 1,064,498 1,892,100 1,543,868 2,358,210 466,110 24.63% Supplies & Materials 112,433 154,596 82,873 177,350 22,754 14.72% Maintenance & Operations 134,014 106,500 102,939 122,500 16,000 15.02% Contract Services 57,678 81,586 73,289 72,000 (9,586) -11.75% Utilities 3,872 6,000 4,500 7,200 1,200 20.00% Capital Expenses 203,926 1,301,664 1,301,664 56,000 (1,245,664) -95.70% Grant Expenses - 56,000 20,000 571,145 515,145 919.90% Total 1,576,421 3,598,446 3,129,133 3,364,405 (234,041) -6.50% EXPENDITURE BY CATEGORY - 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities Capital Expenses Grant Expenses EXPENDITURE ALLOCATION 70.1% Salaries & Benefits 5.3% Supplies & Materials 3.6% Maintenance & Operations 2.1% Contract Services 0.2% Utilities 1.7% Capital Expenses 17.0% Grant Expenses P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 57 166 Item 11. MUNICIPAL COURT The City of Sanger Municipal Court is responsible for the adjudication of criminal matters arising from events occurring within the City. The Municipal Court tracks and collects fines and warrants, holds court to adjudicate cases and renders fines to the appropriate state agency. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger. PERFORMANCE INDICATORS Indicator 2019-20 2020-21 2021-22 Citations Filed in Court 516 1,032 1,001 Deferred Disposition Requests Processed 41 144 108 Driver Safety Course Requests Processed 17 56 24 Deferred Dispositions Granted 41 150 122 Cases Closed by Driver Safety Courses 17 58 31 Dispositions: Full Payment & Time Served 219 443 428 BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 Court Clerk 1 1 1 Deputy Court Clerk 1 1 1 Municipal Judge (Part-Time) 2 2 2 Total Budgeted Positions 4 4 4 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 58 167 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 146,187 171,000 167,166 179,660 $8,660 5.06% Supplies & Materials 4,015 16,700 9,367 19,500 $2,800 16.77% Maintenance & Operations 770 920 847 1,250 $330 35.87% Contract Services 3,344 5,000 3,246 5,000 $0 0.00% Court Costs 47,889 68,870 54,535 62,389 ($6,481) -9.41% Total 202,205 262,490 235,161 267,799 5,309 2.02% EXPENDITURE BY CATEGORY - 30,000 60,000 90,000 120,000 150,000 180,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Court Costs EXPENDITURE ALLOCATION 67.1%, Salaries & Benefits 7.3%, Supplies & Materials 0.5%, Maintenance & Operations 1.9%, Contract Services 23.3%, Court Costs P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 59 168 Item 11. DEVELOPMENT SERVICES The City of Sanger Development Services Department issues business related permits and provides inspection services for both new and existing construction. Development Services also reviews and approves construction plans and documents and works with builders and property owners on development issues. Development Services is also responsible for planning and zoning and provides support for the planning and zoning commission. Development Services maintains the comprehensive master plan, zoning maps and city limits maps and files the necessary documents with the County. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger.  Encourage the establishment of new businesses and the expansion of existing businesses in Sanger.  Improve the relationship of mixed land uses and provide optimum opportunity to live and work in Sanger. PERFORMANCE INDICATORS Indicator 2019-20 2020-21 2021-22 Residential Permits Issued 235 182 118 Residential Inspections Performed 3,035 3,107 1,297 Commercial Permits Issued 23 23 11 Commercial Inspections Performed 467 536 314 Miscellaneous Permits Issued 389 473 349 Miscellaneous Inspections Performed 782 779 600 BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 Development Service Director 1 1 1 Building Inspector 1 1 1 Code Enforcement Officer 1 1 1 Chief Building Official 0 1 1 Planning Technician 0 1 1 Administrative Assistant I 0 1 1 Planner 1 0 0 Plans Examiner 1 0 0 Permit Technician 1 0 0 Total Budgeted Positions 6 6 6 DEPARTMENTAL EXPENDITURES P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 60 169 Item 11. Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 363,497 498,800 374,482 532,170 $33,370 6.69% Supplies & Materials 35,548 43,500 27,145 43,000 ($500) -1.15% Maintenance & Operations 2,818 5,300 3,023 5,800 $500 9.43% Contract Services 71,347 235,300 203,369 260,300 $25,000 10.62% Utilities 440 600 600 600 $0 0.00% Total 473,650 783,500 608,619 841,870 58,370 7.45% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities EXPENDITURE ALLOCATION 63.2% Salaries & Benefits 5.1% Supplies & Materials 0.7% Maintenance & Operations 30.9% Contract Services 0.1% Utilities P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 61 170 Item 11. STREETS The City of Sanger Street Department is responsible for maintaining the roads, streets, alleys, sidewalks and right of ways in the City of Sanger. They also maintain street signs. The Street Department serves as the liaison with contractors building new streets or rehabilitating old streets. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger.  Improve Sanger’s street network. PERFORMANCE INDICATORS Indicator 2019-20 2020-21 2021-22 Road Hazards Assessed & Corrected 116 76 93 Traffic & Street Signs Installed or Repaired 108 35 42 Miscellaneous Items Completed 31 69 66 BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 Streets Superintendent 1 1 1 Utility Worker 3 4 4 Total Budgeted Positions 4 5 5 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 62 171 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 203,230 352,800 220,903 364,740 11,940 3.38% Supplies & Materials 5,322 15,300 5,000 12,800 (2,500) -16.34% Maintenance & Operations 75,060 233,000 225,167 233,000 - 0.00% Contract Services 47,990 55,000 45,020 55,000 - 0.00% Utilities 102,357 193,135 193,135 169,332 (23,803) -12.32% Debt Service 51,535 51,535 51,535 51,535 - 0.00% Total 485,494 900,770 740,760 886,407 (14,363) -1.59% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities Debt Service EXPENDITURE ALLOCATION 41.1% Salaries & Benefits 1.4% Supplies & Materials 26.3% Maintenance & Operations 6.2% Contract Services 19.1% Utilities 5.8% Debt Service P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 63 172 Item 11. PARKS & RECREATION The City of Sanger Parks Department is responsible for the maintenance operations associated with all City Park and Facilities. The Parks department is also responsible for all building maintenance operations throughout the organization. The Parks Department is responsible for the brush removal program and vector control operations. For several years, the functions of Parks and Recreation were accounted for in two separate departments. These functions have been combined into a single Parks & Recreation Department in the current year, the result of reorganization and shifting of public events to the Marketing Department. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger.  Encourage development and preservation of the Historic Sanger Downtown area.  Develop, expand, and maintain the Sanger Park System with a variety of parks, open spaces and recreational facilities. PERFORMANCE INDICATORS Indicator 2019-20 2020-21 2021-22 Acres Mowed 1,505 2,030 2,030 Brush Orders Completed 1,470 760 760 BUDGETED PERSONNEL SCHEDULE Functions of the Facilities Department are handled by personnel in the Parks Department. Ten percent of salaries and benefits from Parks Department personnel are allocated to the Facilities Department. Position Title 2021-22 2022-23 2023-24 Parks & Recreation Director 0 0.9 0.9 Public Works Director 0.5 0 0 Recreation Coordinator 1 1 1 Crew Leader 1 0.9 0.9 Grounds Maintenance Worker 2 3.6 3.6 Total Budgeted Positions 4.5 6.4 6.4 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 64 173 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 255,407 450,200 399,465 457,060 6,860 1.52% Supplies & Materials 7,860 23,700 23,324 34,700 11,000 46.41% Maintenance & Operations 70,765 105,550 124,393 254,750 149,200 141.35% Contract Services 154,513 247,000 126,338 157,800 (89,200) -36.11% Utilities 21,905 18,600 17,905 18,600 - 0.00% Capital Expenses - 18,000 18,000 228,722 210,722 ####### Total 510,450 863,050 709,425 1,151,632 288,582 33.44% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities Capital Expenses EXPENDITURE ALLOCATION 39.7% Salaries & Benefits 3.0% Supplies & Materials 22.1% Maintenance & Operations 13.7% Contract Services 1.6% Utilities 19.9% Capital Expenses P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 65 174 Item 11. LIBRARY The City of Sanger Library provides written, audio and video materials for loan to the public. The library also provides computer and internet access free of charge. Librarians assist customers with researching a wide range of subjects. The Library also provides a wide range of educational programs to both adults and children. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Develop, expand, and maintain the Sanger Park System with a variety of parks, open spaces and recreational facilities. PERFORMANCE INDICATORS Indicator 2019-20 2020-21 2021-22 Physical Items Checked Out to Patrons 15,356 15,356 19,039 eBooks Checked Out to Patrons 1,244 1,244 3,632 Patron Library Visits 13,893 13,893 20,441 BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 Library Director 1 1 1 Librarian 1 1 1 Children's Library Assistant 1 1 1 Library Aide 1 1 1 Library Aide (Part-Time) 2 2 2 Total Budgeted Positions 6 6 6 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 66 175 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 277,883 336,500 306,745 339,380 2,880 0.86% Supplies & Materials 31,705 46,683 23,684 54,280 7,597 16.27% Maintenance & Operations 4,651 5,643 6,244 5,643 - 0.00% Contract Services 4,242 6,600 5,592 7,100 500 7.58% Total 318,481 395,426 342,265 406,403 10,977 2.78% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services EXPENDITURE ALLOCATION 83.5% Salaries & Benefits 13.4% Supplies & Materials 1.4% Maintenance & Operations 1.7% Contract Services P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 67 176 Item 11. SOLID WASTE The City contracts with Progressive Waste Management for solid waste services in the City of Sanger. Progressive is responsible for providing residential and commercial waste management services to the businesses, schools, and residents of Sanger. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger. No personnel are budgeted in this department. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 68 177 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Contract Services 1,014,184 1,150,000 1,142,000 1,250,000 100,000 8.70% Total Solid Waste 1,014,184 1,150,000 1,142,000 1,250,000 100,000 8.70% EXPENDITURE BY CATEGORY - 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget EXPENDITURE ALLOCATION 100.0% Contract Services P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 69 178 Item 11. TRANSFERS The City transfers between funds in order to properly account for revenues and expenses. No personnel are budgeted in this department. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 70 179 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Transfer to CIP Fund 1,318,511 - - 167,510 167,510 - Transfer to Storm Recovery 300,000 300,000 300,000 - (300,000) -100.00% Transfer to Internal Service 1,207,148 1,381,504 1,381,504 1,852,815 471,311 34.12% Total 2,825,659 1,681,504 1,681,504 2,020,325 338,821 20.15% EXPENDITURE BY CATEGORY - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Transfer to CIP Fund Transfer to Storm Recovery Transfer to Internal Service EXPENDITURE ALLOCATION 8.3% Transfer to CIP Fund 91.7% Transfer to Internal Service P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 71 180 Item 11. DEBT SERVICE FUND OVERVIEW The Debt Service Fund accounts for the receipt of funds from a tax levy and other sources for the accumulation of funds to meet the principal and interest obligations on General Fund Obligations. The City Charter of the City of Sanger, Texas, does not provide a debt limit. Under the provision of State law (Article XI, Section 5, of the State of Texas Constitution), the maximum tax rate is limited to $2.50 per $100 assessed valuation. For 2022-23, the City’s adopted tax rate was $0.575208 per $100 assessed valuation for maintenance and operations plus $0.014289 per $100 assessed valuation for debt service, equaling $0.589497, which is well below the maximum rates allowed by law. For 2023-24, a tax rate of $0.689747 is proposed. The basis of accounting for the Debt Service Fund for both financial reporting and budgeting is the modified accrual basis. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 72 181 Item 11. DEBT SERVICE FUND BUDGET SUMMARY Property Tax 89% Interest 1% Transfers In 10% DEBT SERVICE FUND REVENUES Debt Service 97% Transfers Out 3% DEBT SERVICE FUND EXPENDITURES P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 73 182 Item 11. DEBT SERVICE FUND BUDGET SUMMARY Beginning Fund Balance 459,999 457,598 457,598 389,833 Revenues Property Taxes 161,891 154,485 154,485 1,664,441 Interest Income 8,569 5,000 46,000 25,000 Total General Fund Revenues 170,460 159,485 200,485 1,689,441 Other Sources Transfers In 212,500 212,500 212,500 180,000 Total Other Sources 212,500 212,500 212,500 180,000 Total Revenues/Sources 382,960 371,985 412,985 1,869,441 Expenditures Debt Service 333,826 336,554 429,215 1,849,247 Total Expenditures 333,826 336,554 429,215 1,849,247 Other Uses Transfers Out 51,535 51,535 51,535 51,535 Total Other Uses 51,535 51,535 51,535 51,535 Total Expenses/Uses 385,361 388,089 480,750 1,900,782 Excess of Revenues/Sources over Expenditures/Uses Ending Fund Balance 457,598 441,494 389,833 358,492 (2,401) (16,104) (67,765) (31,341) 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 74 183 Item 11. DEBT SERVICE FUND EXPENDITURES Co 2007 Principal 35,700 37,400 37,400 37,400 Co 2007 Interest 10,398 8,826 8,826 7,180 Co 2013 Principal 22,800 24,000 24,000 - Co 2013 Interest 1,404 720 720 - Refunding 2019 Principal 210,000 220,000 220,000 225,000 Refunding 2019 Interest 40,500 32,100 32,100 23,300 2021 GO Refunding Principal 6,600 6,600 6,600 31,200 2021 GO Refunding Interest 5,174 5,158 5,158 5,135 2023 Tax Note Principal - - - 646,000 2023 Tax Note Interest - - 92,661 175,455 CO 2023C Principal - - - 160,000 CO 2023C Interest - - - 537,327 Bond Administration Fees 1,250 1,750 1,750 1,250 Total Debt Payments 333,826$ 336,554$ 429,215$ 1,849,247$ 74-Transfers Transfer To General Fund 51,535 51,535 51,535 51,535 Total 74-Transfers 51,535 51,535 51,535 51,535 Total Debt Service 385,361 388,089 480,750 1,900,782 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 75 184 Item 11. DEBT SERVICE FUND REQUIREMENTS BY YEAR Fiscal Year Principal Interest Total 2024 1,149,467 750,063 1,899,530 2025 1,129,700 718,301 1,848,001 2026 1,178,700 673,771 1,852,471 2027 968,000 632,369 1,600,369 2028 960,800 594,446 1,555,246 2029 1,000,000 556,915 1,556,915 2030 1,039,000 517,524 1,556,524 2031 239,200 491,977 731,177 2032 254,800 481,049 735,849 2033 264,800 469,319 734,119 2034 240,000 457,078 697,078 2035 255,000 444,237 699,237 2036 265,000 430,595 695,595 2037 280,000 416,418 696,418 2038 295,000 401,438 696,438 2039 310,000 386,655 696,655 2040 330,000 368,756 698,756 2041 345,000 350,775 695,775 2042 356,000 331,973 687,973 2043 385,000 312,080 697,080 2044 405,000 291,098 696,098 2045 430,000 268,620 698,620 2046 455,000 244,755 699,755 2047 480,000 219,503 699,503 2048 505,000 192,862 697,862 2049 530,000 164,835 694,835 2050 560,000 135,420 695,420 2051 595,000 104,340 699,340 2052 625,000 71,318 696,318 2053 669,000 36,630 705,630 Total 16,499,467 11,515,120 28,014,587 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 76 185 Item 11. C.O., Series 2007 181,674 1% G.O. Refunding Bonds, Series 2019 747,500 3% C.O., Series 2021B 359,948 1% Limited Tax Notes, Series 2023A 5,748,595 20% Certificates of Obligation, Series 2023C 20,925,335 75% Spirit of Texas Street Equipment 51,535 0% Total Debt Service Fund Debt by Obligation - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 20 2 4 20 2 6 20 2 8 20 3 0 20 3 2 20 3 4 20 3 6 20 3 8 20 4 0 20 4 2 20 4 4 20 4 6 20 4 8 20 5 0 20 5 2 Debt Service Fund Annual Debt Service Requirements Interest Principal P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 77 186 Item 11. ENTERPRISE FUND OVERVIEW The Enterprise Fund is the financial structure used for the accounting of providing water, sanitary sewer, and electric services to the residents of the City and for the billing and collection of charges to customers for these services. The Enterprise Fund receives revenues from the billing of water, wastewater, and electricity, interest income, and other miscellaneous revenue sources. The Enterprise Fund includes these departments: o Water o Waste Water o Electric o Customer Service The basis of accounting for the Enterprise Fund for both financial reporting and budgeting is the accrual basis. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 78 187 Item 11. ENTERPRISE FUND BUDGET SUMMARY Charges for Services 89% Fees 1%Interest Income 1% Miscellaneous 1% Use of Fund Balance 8% Enterprise Fund Revenues Salaries & Benefits 13% Supplies & Materials 1% Maintenance & Operations 49% Contract Services 3% Utilities 2% Capital Expenses 4% Debt Service 0%Transfers Out 28% Enterprise Fund Expenditures P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 79 188 Item 11. ENTERPRISE FUND BUDGET SUMMARY Beginning Fund Balance 18,799,990 19,844,266 19,844,266 20,239,230 Revenues Water 2,302,333 2,334,878 2,288,351 2,565,619 Waste Water 2,549,932 2,715,028 2,546,573 2,955,440 Electric 8,210,686 7,692,500 7,624,015 8,434,353 Penalties and Fees 192,357 200,000 168,915 210,000 Interest Income 44,079 60,000 71,000 75,000 Miscellaneous 71,361 119,000 90,202 119,000 Total Enterprise Fund Revenues 13,370,748 13,121,406 12,789,056 14,359,412 Other Sources Use of Fund Balance - 1,311,192 - 1,279,913 Total Other Sources - 1,311,192 - 1,279,913 Total Revenues/Sources 13,370,748 14,432,598 12,789,056 15,639,325 Expenditures Salaries & Benefits 1,343,072 1,714,900 1,497,574 2,038,260 Supplies & Materials 99,762 122,170 97,408 194,289 Maintenance & Operations 6,298,734 7,374,468 5,839,246 7,685,395 Contract Services 129,678 415,225 305,664 483,721 Utilities 280,520 309,100 282,717 305,500 Capital Expenses 287,277 249,132 46,227 642,673 Debt Service 3,136 2,000 - 2,000 Total Expenditures 8,442,179 10,186,995 8,068,836 11,351,838 Other Uses Transfers Out 3,884,293 4,325,256 4,325,256 4,287,487 Total Other Uses 3,884,293 4,325,256 4,325,256 4,287,487 Total Expenses/Uses 12,326,472 14,512,251 12,394,092 15,639,325 Excess of Revenues/Sources over Expenditures/Uses Ending Fund Balance 19,844,266 19,764,613 20,239,230 20,239,230 1,044,276 (79,653) 394,964 - 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 80 189 Item 11. ENTERPRISE FUND REVENUES Water Water Billing 2,284,842 2,284,878 2,257,116 2,515,619 Water Meter Revenue 17,491 50,000 31,235 50,000 Total Water 2,302,333 2,334,878 2,288,351 2,565,619 Total Sewer 2,549,932 2,715,028 2,546,573 2,955,440 Electric Electric Income 8,125,658 7,600,000 7,438,388 8,251,853 Security Lights 54,732 55,000 55,401 55,000 Construction Income 6,420 10,000 103,076 100,000 Pole Contact Fee 19,565 20,000 21,000 20,000 Saw Set Pole Fees 3,840 7,500 5,400 7,500 Meter Bases 471 - 750 - Total Electric 8,210,686 7,692,500 7,624,015 8,434,353 Penalties & Fees Penalties 138,847 130,000 117,836 140,000 Service Fees 53,510 70,000 51,079 70,000 Total Penalties and Fees 192,357 200,000 168,915 210,000 Total Interest 44,079 60,000 71,000 75,000 Miscellaneous Income - 25,000 11,021 25,000 Credit Card Fees 70,073 82,500 76,480 82,500 Returned Check Fees 34 1,500 1,164 1,500 Sale of Capital Assets 1,254 10,000 - 10,000 Insurance Damage Reimbursement - - 1,537 - Total Miscellaneous 71,361 119,000 90,202 119,000 Total Revenues 13,370,748 13,121,406 12,789,056 14,359,412 Transfers Transfer from Electric Storm Fund 2,459,294 - - - Use of Fund Balance - 1,311,192 - 1,279,913 Total Transfers 2,459,294 1,311,192 - 1,279,913 Total Enterprise Fund Revenues & Transfers15,830,042 14,432,598 12,789,056 15,639,325 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 81 190 Item 11. WATER The City of Sanger Water Department is responsible for providing safe drinking water to the citizens of Sanger by operating and maintaining the city's potable water system providing service to over 2000 customers. The Department maintains approximately 44 miles of city water mains and 2,750 water meters. The City of Sanger’s public water system received a "Superior" rating from the TCEQ and extensively test the water to assure that the system maintains this rating. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger. PERFORMANCE INDICATORS Indicator 2019-20 2020-21 2021-22 Water Meters Read Manually 12,174 13,818 9,413 Service Orders Completed 1,404 4,621 2,386 BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Water Superintendent 1 1 1 Utility Worker 4 5 7 AMR Technician 1 1 1 Total Budgeted Positions 6 7 9 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 82 191 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 345,196 595,000 410,240 634,700 39,700 6.67% Supplies & Materials 27,261 30,050 29,500 27,150 (2,900) -9.65% Maintenance & Operations 710,884 921,983 920,000 960,083 38,100 4.13% Contract Services 63,488 90,750 65,000 140,226 49,476 54.52% Utilities 135,978 156,400 135,181 152,100 (4,300) -2.75% Capital Expenses 256,078 49,132 46,227 - (49,132) -100.00% Total 1,538,885 1,843,315 1,606,148 1,914,259 70,944 3.85% EXPENDITURE BY CATEGORY - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities Capital Expenses EXPENDITURE ALLOCATION 33.2% Salaries & Benefits 1.4% Supplies & Materials 50.2% Maintenance & Operations 7.3% Contract Services 7.9% Utilities P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 83 192 Item 11. WASTE WATER The City of Sanger Waste Water Department is responsible for collection of all wastewater and its transmission to the wastewater treatment plant. This service includes the operation, maintenance, and repair of all sewer lines, manholes, and lift stations connected to the wastewater collection system. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger. BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 WWTP Superintendent 1 1 1 Plant Operator 2 2 2 Total Budgeted Positions 3 3 3 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 84 193 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 232,672 253,100 251,100 273,340 20,240 8.00% Supplies & Materials 34,331 38,500 33,000 38,500 - 0.00% Maintenance & Operations 315,269 411,612 348,774 406,612 (5,000) -1.21% Contract Services 9,789 18,000 25,664 38,000 20,000 111.11% Utilities 143,103 150,000 144,836 150,000 - 0.00% Capital Expenses 31,199 - - 190,156 190,156 - Total 766,363 871,212 803,374 1,096,608 225,396 25.87% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities EXPENDITURE ALLOCATION 30.2% Salaries & Benefits 4.2% Supplies & Materials 44.9% Maintenance & Operations 4.2% Contract Services 16.5% Utilities P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 85 194 Item 11. ELECTRIC The City of Sanger Electric Department provides service to over 2000 customers and maintains the electrical distribution system with the City's Electric service area. Sanger Electric is dedicated to providing fast, reliable and professional service at the lowest cost possible. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger. BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Director of Electric Utilities 1 1 1 Foreman 1 1 1 Crew Leader 1 1 1 Line Tech 3 3 3 Electric Tech/Groundman 1 1 1 Administrative Assistant 1 1 1 Total Budgeted Positions 8 8 8 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 86 195 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 765,204 866,800 836,234 904,920 38,120 4.40% Supplies & Materials 38,170 53,620 34,908 67,139 13,519 25.21% Maintenance & Operations 5,272,581 6,040,873 4,570,472 6,186,200 145,327 2.41% Contract Services 56,401 306,475 215,000 305,495 (980) -0.32% Utilities 1,439 2,700 2,700 3,400 700 25.93% Capital Expenses - 200,000 - 452,517 252,517 126.26% Debt Service 3,136 2,000 - 2,000 - 0.00% Total 6,136,931 7,472,468 5,659,314 7,921,671 449,203 6.01% EXPENDITURE BY CATEGORY - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities Capital Expenses Debt Service EXPENDITURE ALLOCATION 11.4% Salaries & Benefits 0.8% Supplies & Materials 78.1% Maintenance & Operations 3.9% Contract Services 0.0% Utilities Capital Expenses 6% Debt Service 0% P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 87 196 Item 11. CUSTOMER SERVICE The City of Customer Service Department performs functions of utility billing and customer service to all of the City’s residential and commercial utility customers. These functions were formerly in the Finance Department, and the new Customer Service Department is established for the 2023-2024 budget year. Three positions from Finance are being reassigned to the new department.  Maintain and improve upon the existing country living atmosphere of Sanger. BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 Customer Service Manager 0 0 1 Customer Service Representative 0 0 2 Total Budgeted Positions 0 0 3 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 88 197 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits - - - 225,300 225,300 - Supplies & Materials - - - 61,500 61,500 - Maintenance & Operations - - - 132,500 132,500 - Total - - - 419,300 419,300 - EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations EXPENDITURE ALLOCATION 53.7% Salaries & Benefits 14.7% Supplies & Materials 31.6% Maintenance & Operations P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 89 198 Item 11. TRANSFERS The City transfers between funds in order to properly account for revenues and expenses. No personnel are budgeted in this department. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 90 199 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Transfer to Debt Service 1,900,000 2,158,000 2,158,000 2,339,672 181,672 8.42% Transfer - PILOT 95,000 95,000 95,000 95,000 - 0.00% Transfer to Internal Service 1,810,722 2,072,256 2,072,256 1,852,815 (219,441) -10.59% Transfer to Enterprise CIP 78,571 - - - - - Total 3,884,293 4,325,256 4,325,256 4,287,487 (37,769) -0.87% EXPENDITURE BY CATEGORY - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Transfer to Debt Service Transfer to Enterprise CIP Transfer - PILOT Transfer to Internal Service EXPENDITURE ALLOCATION 54.6% Transfer to Debt Service 2.2% Transfer - PILOT 43.2% Transfer to Internal Service P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 91 200 Item 11. ENTERPRISE DEBT SERVICE FUND OVERVIEW The Enterprise Debt Service Fund accounts for the accumulation of funds to meet the principal and interest obligations on Enterprise Fund Obligations. The Enterprise Debt Service Fund was established for the 2020-2021 year. In prior years, debt service was accounted for in the Enterprise Fund itself. The basis of accounting for the Enterprise Debt Service Fund for both financial reporting and budgeting is the accrual basis. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 92 201 Item 11. ENTERPRISE DEBT SERVICE FUND BUDGET SUMMARY Transfers In 100% ENTERPRISE DEBT SERVICE FUND REVENUES Debt Service 100% ENTERPRISE DEBT SERVICE FUND EXPENDITURES P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 93 202 Item 11. ENTERPRISE DEBT SERVICE FUND BUDGET SUMMARY Beginning Fund Balance 1,114,276 1,145,536 1,145,536 1,191,947 Other Sources Interest 17,451 - 21,172 25,000 Transfers In 1,900,000 2,158,000 2,158,000 2,339,672 Total Other Sources 1,917,451 2,158,000 2,179,172 2,364,672 Expenditures Debt Service 1,886,191 2,132,761 2,132,761 2,364,672 Total Expenditures 1,886,191 2,132,761 2,132,761 2,364,672 Excess of Revenues/Sources over Expenditures/Uses Ending Fund Balance 1,145,536 1,170,775 1,191,947 1,191,947 31,260 25,239 46,411 - 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 94 203 Item 11. ENTERPRISE DEBT SERVICE FUND EXPENDITURES Co 2007 Principal 69,300 72,600 72,600 72,600 Co 2007 Interest 20,182 17,134 17,134 13,940 Co 2013 Principal 167,200 176,000 176,000 - Co 2013 Interest 10,296 5,280 5,280 - 2015 CO Principal 295,000 285,000 285,000 290,000 2015 CO Interest 178,075 169,375 169,375 160,750 2017 CO Principal 85,000 100,000 100,000 115,000 2017 CO Interest 366,600 364,050 364,050 361,050 2021 GO Refunding Principal 48,400 48,400 48,400 228,800 2021 GO Refunding Interest 37,492 37,822 37,822 37,652 2021 CO Principal 55,000 295,000 295,000 320,000 2021 CO Interest 551,896 559,600 559,600 550,750 2023B CO Interest - - - 211,630 Bond Administration Fees 1,750 2,500 2,500 2,500 Total Debt Service 1,886,191 2,132,761 2,132,761 2,364,672 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 95 204 Item 11. ENTERPRISE DEBT SERVICE FUND REQUIREMENTS BY YEAR Fiscal Year Principal Interest Total 2024 1,026,400 1,335,772 2,362,172 2025 1,060,300 1,314,798 2,375,098 2026 1,131,300 1,288,857 2,420,157 2027 1,169,000 1,260,315 2,429,315 2028 1,243,200 1,223,852 2,467,052 2029 1,302,000 1,182,616 2,484,616 2030 1,342,000 1,138,381 2,480,381 2031 1,540,800 1,091,917 2,632,717 2032 1,660,200 1,036,638 2,696,838 2033 1,740,200 974,398 2,714,598 2034 1,860,000 908,869 2,768,869 2035 1,950,000 833,712 2,783,712 2036 2,070,000 754,850 2,824,850 2037 2,150,000 683,556 2,833,556 2038 1,800,000 599,806 2,399,806 2039 1,855,000 542,206 2,397,206 2040 1,910,000 482,756 2,392,756 2041 1,970,000 423,506 2,393,506 2042 2,035,000 362,356 2,397,356 2043 2,095,000 299,156 2,394,156 2044 2,160,000 234,106 2,394,106 2045 2,230,000 167,006 2,397,006 2046 370,000 97,706 467,706 2047 260,000 84,106 344,106 2048 270,000 73,706 343,706 2049 280,000 62,906 342,906 2050 295,000 51,356 346,356 2051 305,000 39,188 344,188 2052 315,000 26,606 341,606 2053 330,000 13,613 343,613 Total 39,725,400 18,588,615 58,314,015 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 96 205 Item 11. - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 20 2 4 20 2 6 20 2 8 20 3 0 20 3 2 20 3 4 20 3 6 20 3 8 20 4 0 20 4 2 20 4 4 20 4 6 20 4 8 20 5 0 20 5 2 Enterprise Debt Service Fund Annual Debt Service Requirements Interest Principal C.O., Series 2007 352,666 1% C.O., Series 2015 5,870,675 10% C.O., Series 2017 12,638,250 22% C.O., Series 2021A 27,381,800 47% C.O., Series 2021B 2,639,631 4% Certificates of Obligation, Series 2023B 9,430,993 16% Total Enterprise Debt Service Fund Debt by Obligation P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 97 206 Item 11. INTERNAL SERVICE FUND OVERVIEW 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. The Internal Service Fund receives revenues from transfers from the General Fund and the Enterprise Fund. The Internal Service Fund includes these departments: o Mayor and Council o Administration o City Secretary o Legal o Public Works Administration o Finance o Human Resources o Marketing o Facilities o Non-Departmental The basis of accounting for the Internal Service Fund for both financial reporting and budgeting is the modified accrual basis. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 98 207 Item 11. INTERNAL SERVICE FUND BUDGET SUMMARY Transfers In 100% Internal Service Fund Revenues Salaries & Benefits 48% Supplies & Materials 18% Maintenance & Operations 3% Contract Services 27% Utilities 4% Internal Service Fund Expenditures P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 99 208 Item 11. INTERNAL SERVICE FUND BUDGET SUMMARY Beginning Fund Balance (107,059) 199,527 199,527 - Revenues Transfers from Enterprise Fund 1,810,722 2,072,256 1,915,841 1,852,815 Transfers from General Fund 1,207,148 1,381,504 1,077,700 1,852,815 Transfers from 4A - 15,000 15,000 15,000 Transfers from 4B - 15,000 15,000 15,000 Total Internal Service Fund Revenues 3,017,870 3,483,760 3,023,541 3,735,630 Expenditures Salaries & Benefits 1,547,456 1,766,600 1,641,231 1,775,120 Supplies & Materials 356,780 550,015 422,346 675,952 Maintenance & Operations 85,841 97,700 94,251 92,500 Contract Services 612,487 845,100 847,463 1,021,278 Utilities 108,542 143,000 127,512 155,000 Capital Expenses - 81,345 90,265 15,780 Debt Service 178 - - - Total Expenditures 2,711,284 3,483,760 3,223,068 3,735,630 Excess of Revenues over Expenditures 306,586 - (199,527) - Ending Fund Balance 199,527 199,527 - - 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 100 209 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 101 210 Item 11. CITY COUNCIL The City of Sanger City Council is elected by the people and is responsible for setting general policy and direction for city government. The Council's budget is split between the General fund and Enterprise fund. The Council's budget includes funds to pay for legal services, audit services and elections. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger.  Encourage the establishment of new commercial business and the expansion of existing businesses in Sanger.  Encourage development and preservation of the Historic Sanger Downtown area.  Improve the relationship of mixed land uses and provide optimum opportunity to live and work in Sanger.  Improve Sanger’s street network.  Encourage job development in Sanger.  Develop, expand, and maintain the Sanger Park System with a variety of parks, open spaces and recreational facilities. PERFORMANCE INDICATORS Indicator 2019-20 2020-21 2021-22 Ordinances Passed by Council 37 26 30 Resolutions Approved by Council 12 11 9 No personnel are budgeted in this department. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 102 211 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Supplies & Materials 11,663 16,800 11,036 15,200 (1,600) -9.52% Contract Services 40,771 44,000 40,665 44,750 750 1.70% Total 52,434 60,800 51,701 59,950 (850) -1.40% EXPENDITURE BY CATEGORY - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Supplies & Materials Contract Services EXPENDITURE ALLOCATION 25.4% Supplies & Materials 74.6% Contract Services P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 103 212 Item 11. ADMINISTRATION The City of Sanger Administration Department is responsible for the daily operations of all aspects of city government. Administration includes the offices of City Manager and Assistant City Manager. Administration is responsible for the day-to-day general governmental administration of the City including directing, coordinating, and reviewing operations in the implementation of policy directive provided by Sanger’s Mayor and City Council. In prior years, City Secretary, Human Resources, and Legal functions were included in the department. For the 2022- 23 year, these functions are being moved to separate departments. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger.  Encourage the establishment of new commercial business and the expansion of existing businesses in Sanger.  Encourage development and preservation of the Historic Sanger Downtown area.  Improve the relationship of mixed land uses and provide optimum opportunity to live and work in Sanger.  Improve Sanger’s street network.  Encourage job development in Sanger.  Develop, expand, and maintain the Sanger Park System with a variety of parks, open spaces and recreational facilities. BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 City Manager 1 1 1 Assistant City Manager 1 1 1 City Secretary 1 0 0 Human Resources/Special Projects Director 1 0 0 City Attorney 1 0 0 Total Budgeted Positions 5 2 2 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 104 213 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 733,505 382,800 380,955 400,090 17,290 4.52% Supplies & Materials 22,077 20,000 10,683 24,000 4,000 20.00% Maintenance & Operations 3,285 10,000 3,500 10,000 - 0.00% Contract Services 1,201 10,000 500 12,000 2,000 20.00% Utilities 471 1,000 500 1,000 - 0.00% Total 760,539 423,800 396,138 447,090 23,290 5.50% EXPENDITURE BY CATEGORY - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities EXPENDITURE ALLOCATION 89.5% Salaries & Benefits 5.4% Supplies & Materials 2.2% Maintenance & Operations 2.7% Contract Services 0.2% Utilities P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 105 214 Item 11. CITY SECRETARY The City of Sanger City Secretary Department is responsible for implementing policies and procedures for the dissemination of information to the Sanger City Council, City staff, voters, and citizens of Sanger. For the 2022- 23 budget year, the functions of the City Secretary are being split off from Administration to a separate stand-alone department. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger. PERFORMANCE INDICATORS Indicator 2019-20 2020-21 2021-22 Open Records Requests Completed 179 213 460 City Council Agendas 51 49 35 BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 City Secretary 0 1 1 Total Budgeted Positions 0 1 1 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 106 215 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits - 119,400 114,965 123,780 4,380 3.67% Supplies & Materials - 42,200 35,084 101,700 59,500 141.00% Contract Services - 10,000 4,000 10,000 - 0.00% Total - 171,600 154,049 235,480 63,880 37.23% EXPENDITURE BY CATEGORY - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Contract Services EXPENDITURE ALLOCATION 52.6% Salaries & Benefits 43.2% Supplies & Materials 4.2% Contract Services P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 107 216 Item 11. LEGAL The City of Sanger Legal Department is responsible for providing legal support for operations of the city on matters including litigation support, contract negotiation, and municipal court. For the 2022-23 budget year, legal functions are being split off from Administration to a separate stand-alone department. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger. BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 City Attorney 0 1 1 Total Budgeted Positions 0 1 1 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 108 217 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 198,300 197,364 207,240 8,940 4.51% Supplies & Materials - 10,955 6,069 11,770 815 7.44% Contract Services - 100,950 112,234 100,000 (950) -0.94% Total - 310,205 315,667 319,010 8,805 2.84% EXPENDITURE BY CATEGORY - 25,000 50,000 75,000 100,000 125,000 150,000 175,000 200,000 225,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Contract Services EXPENDITURE ALLOCATION 49.5% Salaries & Benefits 2.8% Supplies & Materials 23.9% Contract Services 23.9% Contract Services P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 109 218 Item 11. PUBLIC WORKS The City of Sanger Public Works Administration Department oversees the street, park and recreation, fleet maintenance, water and wastewater departments. It is also responsible for engineering services and liaison with outside engineers and contractors. Public Works Administration oversees most capital improvement projects. Engineering also reviews new subdivision plans and serves as the flood plain coordinator. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger.  Improve the relationship of mixed land uses and provide optimum opportunity to live and work in Sanger.  Improve Sanger’s street network. BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 Public Works Director 0.5 1 1 Administrative Assistant 0.5 1 1 Total Budgeted Positions 1 2 2 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 110 219 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 191,645 230,600 158,761 241,770 11,170 4.84% Supplies & Materials 19,883 17,800 11,000 15,300 (2,500) -14.04% Maintenance & Operations 3,560 4,200 2,000 1,500 (2,700) -64.29% Contract Services 2,872 86,250 84,000 88,000 1,750 2.03% Total 217,960 338,850 255,761 346,570 7,720 2.28% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services EXPENDITURE ALLOCATION 69.8% Salaries & Benefits 4.4% Supplies & Materials 0.4% Maintenance & Operations 25.4% Contract Services P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 111 220 Item 11. FINANCE The Finance Department is responsible for all financial, accounting and utility billing operations of the City. The department is charged with managing the City’s resources through budgeting, purchasing, and reporting. Operations of the department include billing and collecting for all utilities, handling all accounts receivable and payable, preparing payroll for all City employees, paying all City obligations, and preparing the City’s annual budget document. Finance assists Administration with budget monitoring and provides reports to the City Manager and City Council on current revenues and expenditures. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger. PERFORMANCE INDICATORS # $ # $ # $ AP Invoices Processed 6,560 20,025,263$ 7,211 17,822,882$ 6,288 24,239,979$ Purchase Orders Issued 197 6,225,121$ 201 3,459,354$ 332 16,963,254$ Employee Payroll Items 2,342 3,221,366$ 2,328 3,378,891$ 2,301 3,794,123$ Utility Bills Generated 45,385 12,948,464$ 46,807 13,232,590$ 47,526 14,464,483$ Utility Payments 42,942 12,858,831$ 45,137 13,054,979$ 46,680 15,202,638$ 2019-20 Indicator 2021-222020-21 BUDGETED PERSONNEL SCHEDULE Finance Director 1 1 1 Controller 0 0 1 Accountant 1 1 1 Accounting Technician 1 1 1 Customer Service Manager 1 1 0 Customer Service Representative 2 2 0 Total Budgeted Positions 6 6 4 *Beginning with the 2023-2024 budget, the Customer Service Manager and Customer Service Representatives are being moved a new Customer Service Department in the Enterprise Fund. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 112 221 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 463,886 525,500 496,541 426,450 (99,050) -18.85% Supplies & Materials 41,714 97,000 81,000 71,500 (25,500) -26.29% Contract Services 94,244 94,500 122,653 - (94,500) -100.00% Debt Service 178 - - - - - Total 600,022 717,000 700,194 497,950 (219,050) -30.55% EXPENDITURE BY CATEGORY - 100,000 200,000 300,000 400,000 500,000 600,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Contract Services #REF! Debt Service EXPENDITURE ALLOCATION 85.6% Salaries & Benefits 14.4% Supplies & Materials P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 113 222 Item 11. HUMAN RESOURCES The City of Sanger Human Resources Department is responsible for providing support to City departments, current employees, and job applicants and providing expertise on salaries, benefits, training, and employee relations. For the 2022-23 budget year, the human resources functions are being split off from Administration to a separate stand-alone department. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 Human Resources Director 0 1 1 Human Resources Generalist (Part Time) 0 0 1 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 114 223 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits - 150,100 144,369 211,330 61,230 40.79% Supplies & Materials - 6,600 4,437 38,182 31,582 478.52% Contract Services - 46,300 43,091 67,228 20,928 45.20% Total - 203,000 191,897 316,740 113,740 56.03% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Contract Services EXPENDITURE ALLOCATION 66.7%, Salaries & Benefits 12.1%, Supplies & Materials 21.2%, Contract Services P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 115 224 Item 11. ENGINEERING ***During the 2021-22 year, the Engineering Department was closed down. Engineering functions have been either outsourced or reassigned to other City departments. Prior year budget information is presented here to maintain a historical perspective. *** BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 Engineer 1 0 0 Inspector 1 0 0 Administrative Assistant 0.5 0 0 Total Budgeted Positions 2.5 0 0 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 116 225 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 58,395 - - - - - Supplies & Materials 1,949 - - - - - Maintenance & Operations 449 - - - - - Contract Services 45,608 - - - - - Total 106,401 - - - - - EXPENDITURE BY CATEGORY - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 117 226 Item 11. MARKETING The City of Sanger Marketing Department is responsible for promoting and marketing the City of Sanger and informing citizens about the City’s services, programs, and special events. The department was created during the 2021-22 budget year to support the needs of our growing city. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage the establishment of new commercial business and the expansion of existing businesses in Sanger.  Encourage development and preservation of the Historic Sanger Downtown area. BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 Marketing Director 1 1 1 Total Budgeted Positions 1 1 1 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 118 227 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 98,569 118,000 117,315 123,850 5,850 4.96% Supplies & Materials 202,108 282,260 207,375 343,900 61,640 21.84% Maintenance & Operations 572 500 630 1,500 1,000 200.00% Contract Services 35,226 35,000 25,456 25,000 (10,000) -28.57% Capital Outlay - - 8,920 - - - Total 336,475 435,760 359,696 494,250 58,490 13.42% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Capital Outlay EXPENDITURE ALLOCATION 25.1%, Salaries & Benefits 69.6%, Supplies & Materials 0.3%, Maintenance & Operations 5.1%, Contract Services P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 119 228 Item 11. FLEET SERVICES ***During the 2021-22 year, the Fleet Services Department was closed down. Functions of the department have been either outsourced or reassigned to other City departments. Prior year budget information is presented here to maintain a historical perspective.*** BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 Mechanic 0 0 0 Total Budgeted Positions 0 0 0 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 120 229 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 1,456 - - Supplies & Materials 177 - - - - - Maintenance & Operations 1,854 - - - - - Contract Services - - - - - - Total 3,487 - - - - - EXPENDITURE BY CATEGORY - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 121 230 Item 11. FACILITIES The City of Sanger Facilities Department provides for the maintenance and operations of City-owned buildings. This includes repairs, janitorial services and utilities. The Facilities Department has been created for the 2016-2017 budget and assumes the cost of facility maintenance that has previously been accounted for in individual departments. BUDGETED PERSONNEL SCHEDULE Functions of the Facilities Department are handled by personnel in the Parks Department. Although there are no employees working solely in Facilities, beginning this year, ten percent of salaries and benefits from Parks Department personnel are being allocated to Facilities. Position Title 2021-22 2022-23 2023-24 Parks & Recreation Director 0 0.1 0.1 Crew Leader 0 0.1 0.1 Grounds Maintenance Worker 0 0.4 0.4 Total Budgeted Positions 0 0.6 0.6 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 122 231 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits - 41,900 30,961 40,610 (1,290) -3.08% Supplies & Materials 13,639 18,400 11,662 16,400 0.00% Maintenance & Operations 68,490 73,500 81,972 70,000 (3,500) -4.76% Contract Services 41,996 56,500 55,864 56,500 - 0.00% Utilities 108,071 142,000 127,012 154,000 12,000 8.45% Capital Outlay - 81,345 81,345 15,780 (65,565) -80.60% Total 232,196 413,645 388,816 353,290 (58,355) -14.11% EXPENDITURE BY CATEGORY - 25,000 50,000 75,000 100,000 125,000 150,000 175,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities Capital Outlay EXPENDITURE ALLOCATION 5.9% Salaries & Benefits 10.1% Maintenance & Operations 8.2% Contract Services 22.3% Utilities 2.3% Capital Outlay P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 123 232 Item 11. NON-DEPARTMENTAL The City of Sanger Non-Departmental Department budget accounts for expenses that cannot easily be attributed to any specific department. This includes postage, property and liability insurance and tax collection fees. No personnel are budgeted in this department. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 124 233 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Supplies & Materials 43,570 38,000 44,000 38,000 - 0.00% Maintenance & Operations 7,631 9,500 6,149 9,500 - 0.00% Contract Services 350,569 361,600 359,000 617,800 256,200 70.85% Total 401,770 409,100 409,149 665,300 256,200 62.63% EXPENDITURE BY CATEGORY - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Supplies & Materials Maintenance & Operations Contract Services EXPENDITURE ALLOCATION 5.7% Supplies & Materials 1.4% Maintenance & Operations 92.9% Contract Services P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 125 234 Item 11. 4A CORPORATION FUND OVERVIEW The Sanger Texas Industrial Development Corporation (4A Fund) is funded by a 1/2 cent sales tax. It is used to help new and existing businesses expand in Sanger with a primary goal of bringing jobs to the Sanger community. Primary jobs include manufacturing and distribution jobs that increase income and enhance the local economy. The mission of the Sanger Economic Development Corporation is to continually expand our property and sales tax base, encourage creation of jobs, promote tourism, improve the quality of life, and facilitate a self-sustaining local economy for the City by attracting, assisting, and retaining businesses, as well as investing in our community needs to foster growth and encourage tourism. The Sanger Texas Industrial Development Corporation is governed by a board of five directors, all of whom are appointed by the City Council of the City of Sanger. 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 basis of accounting for the 4A Corporation Fund for both financial reporting and budgeting is the modified accrual basis. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage the establishment of new commercial business and the expansion of existing businesses in Sanger.  Encourage development and preservation of the Historic Sanger Downtown area.  Improve the relationship of mixed land uses and provide optimum opportunity to live and work in Sanger.  Encourage job development in Sanger. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 126 235 Item 11. 4A CORPORATION FUND BUDGET SUMMARY Taxes 96% Interest Income 4% 4A Fund Revenues Salaries & Benefits 36.35% Supplies & Materials 48.82% Maintenance & Operations 0.52% Contract Services 14.32% 4A Fund Expenditures P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 127 236 Item 11. 4A CORPORATION FUND BUDGET SUMMARY Beginning Fund Balance 2,757,847 3,392,788 3,392,788 4,133,503 Revenues Taxes 727,487 800,000 795,000 875,000 Grant Revenue 5,000 - 15,040 - Interest Income 28,844 22,000 45,000 40,000 Total Revenues 761,331 822,000 855,040 915,000 Expenditures Salaries & Benefits 56,234 60,500 60,398 63,475 Supplies & Materials 20,738 47,750 34,219 85,250 Maintenance & Operations 730 5,800 617 900 Contract Services 18,688 25,000 19,091 25,000 Total Expenditures 96,390 139,050 114,325 174,625 Other Uses Transfers Out 30,000 - - 15,000 Total Other Uses 30,000 - - 15,000 Total Expenses/Uses 126,390 139,050 114,325 189,625 Excess of Revenues/Sources over Expenditures/Uses 634,941 682,950 740,715 725,375 Ending Fund Balance 3,392,788 4,075,738 4,133,503 4,858,878 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 128 237 Item 11. 4A CORPORATION FUND REVENUES Taxes Sales Tax 727,487 800,000 795,000 875,000 Total Taxes 727,487 800,000 795,000 875,000 Miscellaneous Income Grant Revenue 5,000 - 15,040 - Interest Income 28,844 22,000 45,000 40,000 Total Miscellaneous 33,844 22,000 60,040 40,000 Total Revenues 761,331 822,000 855,040 915,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 129 238 Item 11. ECONOMIC DEVELOPMENT The mission of the Economic Development Department is to retain, strengthen and diversity our local economy while capitalizing on our location in north central Texas. BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 Director of Economic Development 0.5 0.5 0.5 Total Budgeted Positions 0.5 0.5 0.5 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 130 239 Item 11. DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 56,234 60,500 60,398 63,475 2,975 4.92% Supplies & Materials 20,738 47,750 34,219 85,250 37,500 78.53% Maintenance & Operations 730 5,800 617 900 (4,900) -84.48% Contract Services 18,688 25,000 19,091 25,000 - 0.00% Transfers - 15,000 15,000 15,000 - 0.00% Total 96,390 154,050 129,325 189,625 35,575 23.09% EXPENDITURE BY CATEGORY - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Transfers EXPENDITURE ALLOCATION 33.5% Salaries & Benefits 45.0% Supplies & Materials 0.5% Maintenance & Operations 13.2% Contract Services 7.9% Transfers P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 131 240 Item 11. 4B CORPORATION FUND OVERVIEW The Sanger Texas Economic Development Corporation (4B Fund) is funded by a 1/2 cent sales tax. It is used to enhance the local economy by improving the quality of life. This includes park improvements, downtown streetscaping and other projects that make living in Sanger enjoyable. The Sanger Texas Economic Development Corporation is governed by a board of seven directors, all of whom are appointed by the City Council of the City of Sanger. 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 basis of accounting for the 4B Corporation Fund for both financial reporting and budgeting is the modified accrual basis. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Develop, expand, and maintain the Sanger Park System with a variety of parks, open spaces and recreational facilities. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 132 241 Item 11. 4B CORPORATION FUND BUDGET SUMMARY Taxes 96% Interest Income 4% 4B Fund Revenues Salaries & Benefits 11.38% Supplies & Materials 13.14% Maintenance & Operations 0.16%Contract Services 29.59% Capital Outlay 0.00% Grant Expenses 10.76% Transfers 34.97% 4B Fund Expenditures 4B CORPORATION FUND BUDGET SUMMARY P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 133 242 Item 11. Beginning Fund Balance 1,920,879 2,348,132 2,348,132 2,747,684 Revenues Taxes 727,487 800,000 761,670 875,000 Interest Income 36,106 30,000 28,950 35,000 Total Revenues 763,593 830,000 790,620 910,000 Expenditures Salaries & Benefits 55,912 60,500 60,398 63,475 Supplies & Materials 55,912 38,750 30,700 73,250 Maintenance & Operations 478 800 755 900 Contract Services 6,538 15,000 16,715 165,000 Grant Expenses 5,000 50,000 25,000 60,000 Capital Outlay - 479,000 30,000 - Total Expenditures 123,840 644,050 163,568 362,625 Other Uses Transfers Out 212,500 227,500 227,500 195,000 Total Other Uses 212,500 227,500 227,500 195,000 Total Expenses/Uses 336,340 871,550 391,068 557,625 Excess of Revenues/Sources over Expenditures/Uses 427,253 (41,550) 399,552 352,375 Ending Fund Balance 2,348,132 2,306,582 2,747,684 3,100,059 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 134 243 Item 11. 4B CORPORATION REVENUES Taxes Sales Tax 727,487 800,000 761,670 875,000 Total Taxes 727,487 800,000 761,670 875,000 Miscellaneous Income Interest Income 36,106 30,000 28,950 35,000 Total Miscellaneous 36,106 30,000 28,950 35,000 Total Revenues 763,593 830,000 790,620 910,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 135 244 Item 11. ECONOMIC DEVELOPMENT The mission of the Economic Development Department is to retain, strengthen and diversity our local economy while capitalizing on our location in north central Texas. BUDGETED PERSONNEL SCHEDULE Position Title 2021-22 2022-23 2023-24 Director of Economic Development 0.5 0.5 0.5 Total Budgeted Positions 0.5 0.5 0.5 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 136 245 Item 11. DEPARTMENTAL EXPENDITURES Category 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Difference Percent Change Salaries & Benefits 55,912 60,500 60,398 63,475 2,975 4.92% Supplies & Materials 13,453 38,750 30,700 73,250 34,500 89.03% Maintenance & Operations 478 800 755 900 100 12.50% Contract Services 6,538 15,000 16,715 165,000 150,000 1000.00% Grant Expenses 5,000 50,000 25,000 60,000 10,000 20.00% Capital Outlay - 479,000 397,589 - (479,000) -100.00% Transfers 212,500 227,500 227,500 195,000 (32,500) -14.29% Total 293,881 871,550 758,657 557,625 (313,925) -36.02% EXPENDITURE BY CATEGORY - 100,000 200,000 300,000 400,000 500,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Grant Expenses Capital Outlay Transfers EXPENDITURE ALLOCATION 11.4% Salaries & Benefits 13.1% Supplies & Materials 0.2% Maintenance & Operations 29.6% Contract Services 10.8% Grant Expenses 0.0% Capital Outlay 35.0% Transfers P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 137 246 Item 11. SPECIAL REVENUE FUNDS OVERVIEW The City utilizes Special Revenue Funds to account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes. The City utilizes the following Special Revenue Funds: o Hotel Occupancy Tax Fund o General Storm Recovery Fund o Electric Storm Recovery Fund o Beautification Fund o Library Restricted Fund o Parkland Dedication Fund o Roadway Impact Fee Fund o Court Security Fund o Court Technology Fund o Child Safety Fee Fund o Police Donations Fund o Fire Donations Fund o Parks Donations Fund o Library Donations Fund The basis of accounting for the Special Revenue Funds for both financial reporting and budgeting is the modified accrual basis. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 138 247 Item 11. SPECIAL REVENUE FUNDS BUDGET SUMMARY Fees 60% Fines 4% Interest Income 16% Miscellaneous 20% Transfers 0% Special Revenue Funds Revenues Salaries & Benefits 2% Supplies & Materials 38% Contract Services 60% Special Revenue Funds Expenditures P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 139 248 Item 11. COMBINED SCHEDULE OF ALL SPECIAL REVENUE FUNDS Beginning Fund Balance 3,156,442 3,805,008 3,805,008 4,444,669 Revenues Taxes 60,641 35,000 99,223 65,000 Fees 263,986 260,000 200,000 210,000 Fines 14,667 14,250 14,810 14,500 Interest Income 20,877 17,850 25,671 58,000 Miscellaneous 5,396 5,000 19,750 5,500 Total Special Revenue Fund Revenues 365,567 332,100 359,454 353,000 Other Sources Transfers 300,000 300,000 300,000 - Total Other Sources 300,000 300,000 300,000 - Total Revenues/Sources 665,567 632,100 659,454 353,000 Expenditures Salaries & Benefits 843 1,000 1,793 2,000 Supplies & Materials - 10,500 2,500 43,000 Contract Services 16,158 25,500 15,500 67,000 Total Special Revenue Fund Expenditures 17,001 37,000 19,793 112,000 Excess of Revenues/Sources over Expenditures/Uses Ending Fund Balance 3,805,008 4,400,108 4,444,669 4,685,669 648,566 595,100 639,661 241,000 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 140 249 Item 11. HOTEL OCCUPANCY TAX FUND The Hotel Occupancy Tax Fund is used to account for revenues from the Hotel Occupancy Tax. Beginning Fund Balance 99,290 145,931 145,931 231,396 Revenues Hotel Occupancy Tax 156,164 35,000 169,018 160,000 Tax Abatements (95,523) - (69,795) (95,000) Interest Income - - 242 - Total Hotel Tax Fund Revenues 60,641 35,000 99,465 65,000 Expenditures Contract Services 14,000 14,000 14,000 20,000 Total Hotel Tax Fund Expenditures 14,000 14,000 14,000 20,000 Excess of Revenues/Sources 46,641 21,000 85,465 45,000 over Expenditures/Uses Ending Fund Balance 145,931 166,931 231,396 276,396 GENERAL STORM RECOVERY FUND The General Storm Recovery Fund is used to account for monies set aside to repair damage of General Fund assets caused by storms and other weather events. This fund is new for the 2020-2021 budget year Beginning Fund Balance 400,000 700,000 700,000 1,001,673 Revenues/Other Sources Interest - - 1,673 15,000 Transfer from General Fund 300,000 300,000 300,000 - Total General Storm Recovery Fund Revenues/Sources300,000 300,000 301,673 15,000 Excess of Revenues/Sources 300,000 300,000 301,673 15,000 over Expenditures/Uses Ending Fund Balance 700,000 1,000,000 1,001,673 1,016,673 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 141 250 Item 11. ELECTRIC STORM RECOVERY FUND The Electric Storm Recovery Fund is utilized to account for funds to repair the City’s electric system following storms and other weather events. Prior to the 2020-2021 budget, these funds were accounted for in the Enterprise Fund. For 2020-2021, a separate fund is established to account for these monies. Beginning Fund Balance 1,213,988 1,234,786 1,234,786 1,255,838 Revenues/Other Sources Interest 20,798 17,500 21,052 20,000 Transfer from Enterprise Fund - - - - Total General Storm Recovery Fund Revenues/Sources20,798 17,500 21,052 20,000 Excess of Revenues/Sources 20,798 17,500 21,052 20,000 over Expenditures/Uses Ending Fund Balance 1,234,786 1,252,286 1,255,838 1,275,838 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget BEAUTIFICATION FUND The Beautification Fund is utilized to account for revenue sources dedicated to beautification of City-owned parks by the Parks Department. Beginning Fund Balance 5,526 5,526 5,526 5,526 Revenues Miscellaneous - 500 - 500 Total Beautification Fund Revenues - 500 - 500 Expenditures Supplies & Materials - 6,000 - 5,500 Total Beautification Fund Expenditures - 6,000 - 5,500 Excess of Revenues/Sources - (5,500) - (5,000) over Expenditures/Uses Ending Fund Balance 5,526 26 5,526 526 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 142 251 Item 11. LIBRARY RESTRICTED FUND The Library Restricted Fund is utilized to account for specific revenues set aside for future Library expenditures. Beginning Fund Balance 98,512 98,591 98,591 98,916 Revenues Interest Income 79 350 325 500 Total Library Restricted Fund Revenues 79 350 325 500 Ending Fund Balance 98,591 98,941 98,916 99,416 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget PARKLAND DEDICATION FUND The Parkland Dedication Fund is utilized to account for the collection and expenditure of Parkland Dedication Fees. City Ordinances requires new residential developments to provide for community parks and open spaces. Beginning Fund Balance 104,428 104,428 104,428 104,622 Revenues Interest - - 194 1,750 Parkland Dedication Fee - 10,000 - 10,000 Total Parkland Dedication Fund Revenues - 10,000 194 11,750 Ending Fund Balance 104,428 114,428 104,622 116,372 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 143 252 Item 11. ROADWAY IMPACT FEE FUND The Roadway Impact Fee Fund is utilized to account for the collection and expenditure of Roadway Impact Fee. City Ordinances requires each development to pay a share of the cost of such capital improvements or roadway expenditures attributable to such new development. Beginning Fund Balance 1,146,079 1,410,065 1,410,065 1,612,002 Revenues Interest - - 1,937 20,000 Roadway Impact Fee 263,986 250,000 200,000 200,000 Total Roadway Impact Fee Fund Revenues 263,986 250,000 201,937 220,000 Ending Fund Balance 1,410,065 1,660,065 1,612,002 1,832,002 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget COURT SECURITY FUND The Court Security Fund is utilized to account for Court Security Fees imposed on convictions by the Sanger Municipal Court. Beginning Fund Balance 13,972 15,755 15,755 16,625 Revenues Interest - - 30 - Fines 2,626 2,750 2,633 2,500 Total Court Security Fund Revenues 2,626 2,750 2,663 2,500 Expenditures Salaries & Benefits 843 1,000 1,793 2,000 Total Court Security Fund Expenditures 843 1,000 1,793 2,000 Excess of Revenues/Sources 1,783 1,750 870 500 over Expenditures/Uses Ending Fund Balance 15,755 17,505 16,625 17,125 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 144 253 Item 11. COURT TECHNOLOGY FUND The Court Technology Fund is utilized to account for Court Technology Fees imposed on convictions by the Sanger Municipal Court. Beginning Fund Balance 93 102 102 778 Revenues Fines 2,167 2,500 2,176 2,000 Total Court Technology Fund Revenues 2,167 2,500 2,176 2,000 Expenditures Contract Services 2,158 2,500 1,500 2,000 Total Court Technology Fund Expenditures 2,158 2,500 1,500 2,000 Excess of Revenues/Sources 9 - 676 - over Expenditures/Uses Ending Fund Balance 102 102 778 778 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget CHILD SAFETY FUND The Child Safety Fund is utilized to account for Child Safety Fees collected by the Sanger Municipal Court. Beginning Fund Balance 54,571 64,445 64,445 74,584 Revenues Interest - - 138 - Fines 9,874 9,000 10,001 10,000 Total Child Safety Fee Fund Revenues 9,874 9,000 10,139 10,000 Expenditures Contract Services - 9,000 - 45,000 Total Child Safety Fee Fund Expenditures - 9,000 - 45,000 Excess of Revenues/Sources 9,874 - 10,139 (35,000) over Expenditures/Uses Ending Fund Balance 64,445 64,445 74,584 39,584 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 145 254 Item 11. POLICE DONATIONS FUND The Police Donations Fund is utilized to account for specific funds donated for the exclusive use of the Sanger Police Department. Beginning Fund Balance 78 5,078 5,078 5,078 Revenues Miscellaneous 5,000 2,500 2,500 2,500 Total Police Donations Fund Revenues 5,000 2,500 2,500 2,500 Expenditures Supplies & Materials - 2,500 2,500 2,500 Total Police Donations Fund Expenditures - 2,500 2,500 2,500 Excess of Revenues/Sources 5,000 - - - over Expenditures/Uses Ending Fund Balance 5,078 5,078 5,078 5,078 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget FIRE DONATIONS FUND The Fire Donations Fund is utilized to account for specific funds donated for the exclusive use of the Sanger Fire Department. Beginning Fund Balance 6,775 7,038 7,038 16,568 Revenues Interest - - 30 250 Miscellaneous 263 1,000 9,500 1,000 Total Fire Donations Fund Revenues 263 1,000 9,530 1,250 Expenditures Supplies & Materials - 1,000 - 15,000 Total Fire Donations Fund Expenditures - 1,000 - 15,000 Excess of Revenues/Sources 263 - 9,530 (13,750) over Expenditures/Uses Ending Fund Balance 7,038 7,038 16,568 2,818 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 146 255 Item 11. PARK DONATIONS FUND The Park Donations Fund is utilized to account for specific funds donated for the exclusive use of the Parks Department. Beginning Fund Balance 6,311 6,311 6,311 13,836 Revenues Interest - - 25 250 Miscellaneous - 500 7,500 1,000 Total Park Donations Fund Revenues - 500 7,525 1,250 Expenditures Supplies & Materials - 500 - 13,000 Total Court Security Fund Expenditures - 500 - 13,000 Excess of Revenues/Sources - - 7,525 (11,750) over Expenditures/Uses Ending Fund Balance 6,311 6,311 13,836 2,086 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget LIBRARY DONATIONS FUND The Library Donations Fund accounts for specific funds donated for the exclusive use of the Sanger Public Library. Beginning Fund Balance 6,819 6,952 6,952 7,227 Revenues Interest - - 25 250 Miscellaneous 133 500 250 500 Total Library Donations Fund Revenues 133 500 275 750 Expenditures Supplies & Materials - 500 - 7,000 Total Library Donations Fund Expenditures - 500 - 7,000 Excess of Revenues/Sources 133 - 275 (6,250) over Expenditures/Uses Ending Fund Balance 6,952 6,952 7,227 977 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 147 256 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 148 257 Item 11. CA P I T A L P R O J E C T S F U N DS P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 149 258 Item 11. CAPITAL PROJECTS FUNDS OVERVIEW The City maintains two separate funds for capital projects. The Capital Projects Fund was established to account for general capital projects and the Enterprise Projects Fund was established to account for those capital projects specifically related to the water, wastewater and electric utility. The basis of accounting for the Capital Projects Funds for both financial reporting and budgeting is the modified accrual basis. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 150 259 Item 11. COMBINED CAPITAL PROJECTS FUNDS BUDGET SUMMARY Fees 5% Use of Bond Proceeds 71% Interest Income 1% Transfers In 1% Intergovernmental Revenue 22% Combined Capital Projects Funds Revenues Capital Projects 100% Combined Capital Projects Funds Expenditures P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 151 260 Item 11. CAPITAL PROJECTS FUND Beginning Fund Balance 2,276,284 3,347,015 3,347,015 2,931,440 Revenues Interest Income 51,631 45,000 35,000 50,000 Total Capital Projects Fund Revenues 51,631 45,000 35,000 50,000 Other Sources Transfers From General Fund 1,318,511 - - 167,510 Bond Proceeds - 2,426,165 12,542,241 3,000,000 Total Other Sources 1,318,511 2,426,165 12,542,241 3,167,510 Total Revenues/Sources 1,370,142 2,471,165 12,577,241 3,217,510 Expenditures Street Rehab Program 119,142 466,788 739,063 362,401 Technology Upgrade Program 180,269 - 73,894 - Building Improvements - 418,763 418,763 - Street Maintenance/Utility Program - 306,237 28,498 425,000 Marion Road - Arterial - 750,000 - 750,000 Downtown Improvements - 1,862,135 1,714,985 - I-335 Aesthetics - - 8,077 2,500,000 Joint Public Safety Facility - - - 800,000 Senior Center Improvements - - - 500,000 Riley Property Purchase - - 10,009,536 300,000 Total Expenditures 299,411 3,803,923 12,992,816 5,637,401 Excess of Revenues over Expenditures 1,070,731 (1,332,758) (415,575) (2,419,891) Ending Fund Balance 3,347,015 2,014,257 2,931,440 511,549 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 152 261 Item 11. ENTERPRISE CAPITAL PROJECTS FUND Beginning Fund Balance 2,538,841 2,215,455 2,215,455 6,590,430 Revenues Water Tap Fees 153,000 300,000 275,000 350,000 Sewer Tap Fees 216,500 380,000 350,000 400,000 Interest Income 146,658 50,000 175,000 150,000 Total Revenues 516,158 730,000 800,000 900,000 Other Sources Transfer from Enterprise Fund 78,571 78,571 - - Intergovernmental Revenue - - - 3,500,000 Use of Bond Funds 6,000,000 13,000,000 11,057,463 8,270,903 Total Other Sources 6,078,571 13,078,571 11,057,463 11,770,903 Total Revenues/Sources 6,594,729 13,808,571 11,857,463 12,670,903 Expenditures Wastewater Treatment Plant 10,571$ - - - Outfall Pipeline/Stream Restoration 115,989 - - - Acker Water Ground Storage Rehab - 2,600,000 - - Relocation of Utilities along FM 455 5,666,566 6,000,000 1,495,436 - Railroad Lift Station - 500,000 - - Relocation of Utilities along I-35 213,750 4,100,000 252,019 9,922,910 WWTP Bar Screen Repair 205,664 - - - WWTP Phase 2 TPDES 11,741 - 9,489 - Water Line Bolivar to Cherry 167,095 167,095 - - Elm Street Sewer Repair 55,676 - - - FM 455 Sewer Extension 25,000 - - - Keaton Road Sewer Line - 320,000 - 320,000 Fifth Street Sewer Rehabilitation - - - 350,000 Metering System 515 - 148,530 3,200,000 Water System Improvements - - 586,600 1,200,000 Wastewater System Improvements 21,866 - - 335,000 Electric System Improvements - - - 350,000 Riley Property Purchase - - 4,990,414 - Total Expenditures 6,494,433 13,687,095 7,482,488 15,677,910 Other Uses Transfers Out 423,682 - - - Total Other Uses 423,682 - - - Total Expenses/Uses 6,918,115 13,687,095 7,482,488 15,677,910 Excess of Revenues over Expenditures (323,386) 121,476 4,374,975 (3,007,007) Ending Fund Balance 2,215,455 2,336,931 6,590,430 3,583,423 2021-22 Actual 2022-23 Budget 2022-23 Estimated 2023-24 Budget P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 153 262 Item 11. CAPITAL IMPROVEMENT PLAN INTRODUCTION This plan addresses capital improvement needs in the City of Sanger over the next five years and funding sources for projects expected in FY 2023--24. As in any city with older infrastructure, maintenance and rehabilitation of existing infrastructure is an ongoing and never- ending process. It is easy to get behind and hard to catch up. Over the past several years more and more resources have been dedicated to infrastructure maintenance and replacement and several projects have been completed. Several years ago, City staff and Council identified streets within the city in need of rehabilitation. The rehabilitation of these streets was divided into separate phases. This trend of rehabilitating our infrastructure is a trend that needs to continue as we try to catch up with our aging and ailing infrastructure. As Sanger continues to experience growth, the City’s focus remains on improving the infrastructure needed to support development. In 2021, Council approved the issuance of $18,615,000 to be used for: the relocation of utilities along both FM-455 and I-35, the WWTP outfall stream restoration, and the purchase of a new automated meter reading system for water and electric meters. In 2023, Council approved the issuance of $15,215,000 for the purchase of approximately 450 acres of real property for future development, including future water, wastewater, and electric system improvements. PROJECTS FM 455 Expansion: The City is currently in the process of relocating the utilities (water, wastewater, electric) along FM 455 in preparation for TXDOT widening the road. The project is on track and it is expected to be completed within the next 24 months. IH-35 Expansion TXDOT is planning to expand IH-35 through Sanger. As a result, the City will have to relocate utilities (water, sewer, electric). The City has already initiated the design engineering work and construction began in FY 2022-23. While designing the project, the City will take into consideration betterment options that would accommodate future growth in the area. Enterprise Capital Projects The City Council recently approved a contract to replace the current water and electric meter system with a new AMI system. The new metering infrastructure will provide greater accuracy, increased efficiency, and will enhance the overall customer service experience. The project has entered a testing phase with a number of meters, and installation of water meters is expected to begin in October 2023. Electric meters will be installed following water, with project completion scheduled in the next 12 months. At the recommendation of Alan Plummer and Associates, Council decided to refurbish the existing wastewater treatment plant rather than build a new one in January 2014. Construction began in May of 2017 and has now been completed. Recently, the City engaged KSA Engineering to assist with site validation for a new wastewater treatment plant in an effort to prepare for future growth. Several other system improvements (water, wastewater, and electric) are scheduled for FY 2023-24 such as replacing several sewer lines and installing additional bays at the electric substation. Streets and Thoroughfares: Many streets in Sanger are in dire need of rehabilitation. In the last few years, we have concentrated our efforts on improving the thoroughfares that carry the most traffic. This does not mean that there are no residential streets that P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 154 263 Item 11. are in as bad or worse condition. In 2019, we outlined a Street Improvement Plan and this year we are proposing to move forward with the next phase as outlined in the Project Status section of this report. However, focusing on thoroughfares as our priority gives us the greatest positive impact for most people. If funding can be secured in the future, Marion Rd., Bolivar from 5th to the Service Road, Belz Road, and Duck Creek will also be candidates for improvement. In addition, the City has also allocated funding toward establishing a Street Utility Maintenance Program (SUMP). In FY 2022-23, the City will engage with an engineering firm to outline the program. Parks and Facilities: The Sanger 2040 Comprehensive Plan has identified a new park to be constructed in Downtown. In FY 2022-23, the City will began the concept design and begin the acquisition of property needed for the development of the park. The City will also begin evaluating Phase II of Porter Park located on the east side of IH-35. Funds are also being allocated towards a new Joint Public Safety facility. The design engineering is scheduled for FY 2023-24. Facility needs that are farther out on the horizon include the expansion of the library and building a new municipal complex as identified in the Sanger 2040 Comprehensive Plan. A remodel of the community center also needs to be considered as it is becoming worn and dated. PROJECT STATUS Projects in progress continuing in FY 2023-24 Anticipated Funding Source  Street Rehabilitation Program Capital Projects Fund  Relocation of Utilities along FM 455 Enterprise Bond Funds/Reimbursed by TxDOT  I-35 Expansion - Relocation of Utilities Enterprise Bond Funds/Reimbursed by TxDOT  Automated Metering System Enterprise Bond Funds New Projects in 2021-22 Anticipated Funding Source  Street Maintenance Utility Program Capital Projects Fund  I-35 Aesthetics Capital Projects Fund  Joint Public Safety Facility (Concept Design) Capital Projects Fund  Senior Center Improvements Capital Projects Fund  Keaton Road Sewer Line Enterprise CIP  Fifth Street Sewer Rehabilitation Enterprise CIP  Water System Improvements Enterprise CIP/Bond Funds  Wastewater System Improvements Enterprise CIP/Bond Funds  Electric System Improvements Enterprise CIP Funds Future Projects Anticipated Funding Source  Rebuild & Expand Marion Road TBD P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 155 264 Item 11.  Railroad Lift Station TBD  Utility Road Ground Storage TBD  Municipal Complex TBD CONCLUSION As you can see, a myriad of projects is planned over the next ten years and they will keep us very busy. Many of these projects will go unseen to most citizens but they all directly impact the quality of life in the community by ensuring reliable utilities, safe streets and sidewalks, and adequate public facilities. It is important to note again that even after all of this work is complete, there will still be other needs arise as our infrastructure continues to age. Like every City, we will continue the struggle of balancing needs and resources to maintain current facilities and infrastructure, prepare for growth, and improve the quality of life in our community. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 156 265 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 157 266 Item 11. CAPITAL PROJECTS FIVE YEAR SUMMARY 2020-2026 General Capital Projects 2021-2022 2022-2023 2023-2024 Actual Estimate Budget Capital Projects Fund Balance 2,276,284 3,347,015 2,931,440 Project Funding Interest Income 51,631 35,000 50,000 Transfers from General Fund 1,318,511 - 167,510 Proceeds from Sale of Real Property - - - Use of Bond Funds - 12,542,241 3,000,000 Total Funding Sources 1,370,142 12,577,241 3,217,510 Expenditures Annual Street Rehab Project 119,142 739,063 362,401 Technology Updates 180,269 73,894 - Building Improvements - 418,763 - Street/Utility Maintenance Program - 28,498 425,000 Downtown Improvements - 1,714,985 - I-35 Aesthetics - 8,077 2,500,000 Riley Property Purchase - 10,009,536 - Marion Road - Arterial (city only) - - 750,000 Joint Public Safety Facility - - 800,000 Porter Park Phase II - - 300,000 Senior Center Improvements - - 500,000 Belz Rd/Jennifer Cir - - - Duck Creek Rd. - - - Municipal Complex - - - Total Expenditures 299,411 12,992,816 5,637,401 Funding Sources less Expenditures 1,070,731 (415,575) (2,419,891) Capital Projects Fund Balance 3,347,015 2,931,440 511,549 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 158 267 Item 11. 2024-2025 2025-2026 2026-2027 2027-2028 Projected Projected Projected Projected 511,549 7,328,108 269,334 81,502 50,000 50,000 50,000 - 300,000 300,000 400,000 400,000 12,000,000 5,000,000 5,000,000 2,000,000 1,250,000 17,350,000 5,350,000 2,450,000 1,650,000 533,441 673,774 537,832 710,671 - - - - - - - - - - - - - - - - 2,500,000 - - - - - - - 3,000,000 3,000,000 - - 4,000,000 4,300,000 - - - - - - - - - - 500,000 4,200,000 - - - 235,000 2,100,000 - - - - 1,000,000 10,533,441 12,408,774 2,637,832 1,710,671 6,816,559 (7,058,774) (187,832) (60,671) 7,328,108 269,334 81,502 20,831 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 159 268 Item 11. CAPITAL PROJECTS FIVE YEAR SUMMARY 2020-2026 Enterprise Capital Projects 2021-2022 2022-2023 2023-2024 Actual Estimate Budget Capital Projects Fund Balance 2,538,841 2,215,455 6,590,430 Project Funding Water Tap Fees 153,000 275,000 350,000 Sewer Tap Fees 216,500 350,000 400,000 Use of Bond Funds 6,000,000 11,057,463 8,270,903 Interest Income 146,658 175,000 150,000 Intergovernmental Income - - 3,500,000 Transfers from Enterprise Fund 78,571 - - Total Funding Sources 6,594,729 11,857,463 12,670,903 Expenditures Wastewater Treatment Plant 10,571 - - Outfall Pipeline/Stream Restoration 115,989 - - Water Line Bolivar to Cherry 167,095 - - Elm Street Sewer Repair 55,676 - - FM 455 Sewer Extension 25,000 - - WWTP Bar Screen Repair 205,664 - - Relocation of Utilities along FM 455 5,666,566 1,495,436 - WWTP Phase 2 TPDES 11,741 9,489 - Relocation of Utilities along I-35 213,750 252,019 9,922,910 Automated Metering System 515 148,530 3,200,000 Riley Property Purchase - 4,990,414 - Keaton Road Sewer Line - - 320,000 Fifth Street Sewer Rehabilitation - - 350,000 Railroad Lift Station - - - Utility Road Ground Storage - - - Water System Improvements - 586,600 1,200,000 Wastewater System Improvements 21,866 - 335,000 Electric System Improvements - - 350,000 Transfers Out 423,682 - - Total Expenditures 6,918,115 7,482,488 15,677,910 Funding Sources less Expenditures (323,386) 4,374,975 (3,007,007) Capital Projects Fund Balance 2,215,455 6,590,430 3,583,423 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 160 269 Item 11. 2024-2025 2025-2026 2026-2027 2027-2028 Projected Projected Projected Projected 3,583,423 7,683,423 2,833,423 183,423 350,000 350,000 350,000 350,000 400,000 400,000 400,000 400,000 - - 2,000,000 - 50,000 50,000 50,000 50,000 3,500,000 - - - 300,000 300,000 300,000 300,000 4,600,000 1,100,000 3,100,000 1,100,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 500,000 1,750,000 1,750,000 - - - 1,000,000 - - - 1,500,000 500,000 - - 1,500,000 - - 4,200,000 - - - - - - 500,000 5,950,000 5,750,000 500,000 4,100,000 (4,850,000) (2,650,000) 600,000 7,683,423 2,833,423 183,423 783,423 P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 161 270 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 162 271 Item 11. AP P E N DI X P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 163 272 Item 11. DEPARTMENTAL CAPITAL REQUESTS To request departmental capital expenditures, City Department Directors complete a request form for each requested expenditure. These requests and supporting documentation are reviewed during individual and group budget planning meetings. A review of the items includes a discussion of any available alternatives to the requested items. All capital requests are reviewed to determine if they are in sync with City Council goals and the City’s strategic plan. The following are the original requests submitted which are included in the current budget that have been approved. Some requests have been approved as submitted, some have been approved with modifications, and some were not approved for the current year. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 164 273 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 165 274 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 166 275 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 167 276 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 168 277 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 169 278 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 170 279 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 171 280 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 172 281 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 173 282 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 174 283 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 175 284 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 176 285 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 177 286 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 178 287 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 179 288 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 180 289 Item 11. FINANCIAL MANAGEMENT POLICY *The Sanger City Council approved the City’s Financial Management Policy on September 19, 2022 Introduction The City of Sanger, Texas financial policies set forth the basic framework for the fiscal management of the City. These policies were developed within the parameters established by applicable provisions of the Texas Local Government Code and the Sanger City Charter. The policies are intended to assist the City Council and city staff in evaluating current activities and proposals for future programs. The policies are to be reviewed on an annual basis and modified to accommodate changing circumstances or conditions. The scope of these policies generally spans accounting, auditing, financial reporting, internal controls, operating and capital budgeting, revenue management, expenditure control and debt management, all to make it possible both: (a) to present fairly and with full disclosure the financial position and results of financial operations of the City in conformity to generally accepted accounting principles (GAAP), and (b) to determine and demonstrate compliance with finance- related legal and contractual provisions. It is the goal of the Statement of Financial Management Policies to enable the City to adhere to the principles of sound municipal finance and to continue its long-term stable and positive financial condition. Annual Budget 1. The fiscal year of the City of Sanger shall begin on October 1 of each calendar year and will end on September 30 of the following calendar year. The fiscal year will also be established as the accounting and budget year. 2. The City Manager, prior to August first of each year, shall prepare and submit to the City Secretary the annual budget covering the next fiscal year. The budget shall provide a complete financial plan of all city funds and activities and, except as required by law or the City Charter, shall be in such form as the Council may require. The budget shall contain the following information: a. The City Manager’s budget message outlining the proposed financial policies for the next fiscal year with an explanation of any changes in expenditures from the previous year, any major changes in policies, and a complete statement regarding the financial condition of the City. (Proposition 1 approved at an election held November 7, 2006 and certified by Resolution 11-19-06 adopted November 20, 2006.) b. An estimate of all revenues from taxes and other sources, including the present tax structure, rates, and property valuations for the ensuing year; c. A carefully itemized list of proposed expenses and revenues by fund, service type, and project for the budget year, as compared to actual expenditures and revenues of the last ended fiscal year and the projected final expenditures and revenues for the current fiscal year; d. A description of all outstanding bond indebtedness, showing amount, date of issue, rate of interest, and maturity date; also, any other indebtedness which the City has incurred and which has not been paid; e. A statement proposing any capital expenditures deemed necessary for undertaking during the next budget year and the recommended provision for financing; and f. Such other information as is required by City Council or deemed desirable by the City Manager. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 181 290 Item 11. 3. The City Manager’s budget should assume, for each fund, operating revenues that are equal to or exceed operating expenditures (i.e., a balanced budget). The City Manager’s budget message shall explain the reasons for any fund that reflects operating expenditures exceeding operating revenues. 4. The City Council shall hold a public hearing on the budget, as submitted, at the time and place so advertised in the official newspaper, which will be no less than seven (7) days or more than fifteen (15) days after the date of notice. All interested persons shall be given the opportunity to be heard, either for or against, any item of the proposed budget. 5. The budget and tax rate may be adopted at any regular or special meeting of the Council prior to the beginning of the budgeted fiscal year by a majority vote of two thirds (2/3) quorum. The Council may amend the proposed budget by increasing, decreasing, or removing any programs or amounts, except for expenditures required by law, for debt service, or for estimated cash deficit. No amendment to the budget shall increase the authorized expenditures to an amount greater than the total of estimated income plus funds available from prior years. 6. If the Council fails to adopt a budget by the beginning of the fiscal year, the budget currently in place for the preceding year shall remain in place on a month-to-month basis until such time as a new budget has been adopted. 7. On final adoption, the budget shall be in effect for the budget year. Final adoption of the budget by the City Council shall constitute the official appropriations for the current year and shall constitute the basis of the official levy of the property tax. Under conditions which may arise, the City Council may amend or change the budget to provide for any additional expense. Capital Program 1. The City Manager shall submit a five-year capital improvement program (CIP) as an attachment to the annual budget. The CIP shall induce the following: a. A clear, general summary of its contents; b. A list of all capital improvements which are proposed for the five (5) fiscal years including the budget year, with appropriate supporting information as to the necessity for such improvements; c. Cost estimates, method of financing and recommended time schedules for each improvement; and d. The estimated annual cost of operating and maintaining the facilities to be constructed or acquired. Basis of Accounting and Budgeting 1. The City’s finances shall be accounted for in accordance with generally accepted accounting principles (GAAP) as established by the Governmental Accounting Standards Board (GASB). a. The accounts of the City are organized and operated on the basis of funds and account groups. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. b. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are “measurable and available”). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Substantially all revenues are considered to be susceptible to accrual. Ad valorem, sales, hotel, franchise and tax P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 182 291 Item 11. revenues recorded in the General Fund and ad valorem tax revenues recorded in the Debt Service Fund are recognized under the susceptible to accrual concept. Licenses and permits, charges for services, fines and forfeitures, and miscellaneous revenues (except earnings on investments) are recorded as revenues when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned since they are measurable and available. Expenditures are recognized when the related fund liability is incurred, if measurable, except for principal and interest on general long-term debt, which are recorded when due, and compensated absences, which are recorded when payable from currently available financial resources. c. The City utilizes encumbrance accounting for its governmental fund types, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation. d. The City’s proprietary fund types are accounted for on a flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned, and expenses are recorded at the time liabilities are incurred. 2. The City’s annual budgets shall be prepared and adopted on a basis consistent with generally accepted accounting principles for all governmental and proprietary funds 3. The issuance of Statement 34 by GASB has influenced the creation and reporting of individual funds. GASB 34 essentially mandates dual accounting systems: one for government-wide (i.e. the government as a single entity) reporting and another for individual fund reporting. Under GASB 34 for individual funds, the City will continue utilizing the accounting and budgeting processes as described in paragraphs (1) and (2) of this section. However, because GASB 34 mandates the flow of economic resources measurement focus and accrual basis of accounting for the government-wide reporting, extensive reconciliation must be performed to present aggregated fund information in the government-wide reporting model. Therefore, individual operating funds will be created with the objective of reducing fund to government-wide reconciliation as much as possible. When appropriate, individual funds will be examined as to whether it will be appropriate to account for them as proprietary fund types. Also, the City will limit the use of internal service funds and incorporate the financial transactions of those funds into other governmental funds. Budget Administration 1. All expenses of the City shall be made in accordance with the adopted annual budget. Budgetary control is maintained at the individual expenditure account level by the review of all requisitions of estimated purchase amounts prior to the release of purchase orders to vendors. 2. The following represents the City’s budget amendment policy delineating responsibility and authority for the amendment process. Transfers between expenditure accounts in one department may occur with the approval of the City Manager and Finance Director Transfers between operating departments may occur with the approval of the City manager and Finance Director provided that a department’s total budget is not changed by more than $50,000. Transfers between funds must be accomplished by budget amendment approved by the City Council. Budget amendments calling for new fund appropriations must also be approved by the City Council. Financial Reporting 1. At the close of each fiscal year, and at such other times as it may be deemed necessary, the Council shall direct that an independent audit be made on all accounts of the City by a certified public accountant. The certified public accountant shall have no personal interest directly or indirectly, in the financial affairs of the City P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 183 292 Item 11. or any of its officers and shall report directly to the Council. Upon completion of the audit, a summary of the results thereof shall be placed on file in the City Secretary's office for public record. A copy of the comprehensive financial annual report shall be available at City Hall. 2. The City Manager shall submit to the Council a monthly report of the financial condition of the City by department for the fiscal year-to-date. The financial records of the City will be maintained on a modified accrual basis to support this type of financial management. The City Manager shall make available to the Council the monthly cash disbursements journal of the City of all funds and accounts. Revenues 1. To protect the City’s financial integrity, the City will maintain a diversified and stable revenue system to shelter it from fluctuations in any one revenue source. Recognizing that sales tax is a volatile, unpredictable source of revenue, the City will attempt to reduce its dependence on sales tax revenue. 2. For every annual budget, the City shall levy two property tax rates: operation/ maintenance and debt service. The debt service levy shall be sufficient for meeting all principal and interest payments associated with the City’s outstanding general obligation debt for that budget year. The debt service levy and related debt service expenditures shall be accounted for in the Debt Service Fund. The operation and maintenance levy shall be accounted for in the General Fund. City Council will consider exceeding the rollback rate only after options have been presented by staff to avoid the rollback by increasing revenue from other sources or reducing expenditures. 3. The City will maintain a policy of levying the lowest tax rate on the broadest tax base. Minimal exemptions may be provided to homeowners, senior citizens, and disabled veterans. The City may consider providing tax abatements or other incentives to encourage development. 4. The City will establish user charges and fees at a level that attempts to recover the full cost of providing the service. a. User fees, particularly utility rates, should identify the relative costs of serving different classes of customers. b. Where possible, utility rates should be designed to reduce peak (hour and day) demands on the utility systems. c. The City will make every reasonable attempt to ensure accurate measurement of variables impacting taxes and fees (e.g., verification of business sales tax payments, verification of appraisal district property values, and accuracy of water meters). 5. The City will attempt to maximize the application of its financial resources by obtaining supplementary funding through agreements with other public and private agencies for the provision of public services or the construction of capital improvements. 6. The City will consider market rates and charges levied by other public and private organizations for similar services in establishing tax rates, fees and charges. 7. When developing the annual budget, the City Manager shall project revenues from every source based on actual collections from the preceding year and estimated collections of the current fiscal year, while taking into account known circumstances which will impact revenues for the new fiscal year. The revenue projections for each fund should be made conservatively so that total actual fund revenues exceed budgeted projections. Operating Expenditures 1. Operating expenditures shall be accounted, reported, and budgeted for in the following major categories: a. Operating, Recurring Expenditures P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 184 293 Item 11. i. Salaries and Benefits ii. Supplies and Materials iii. Maintenance and Operations iv. Contractual Services v. Utilities vi. Capital Replacement vii. Other Expenses b. Operating, Non-Recurring Expenditures i. Capital Equipment 2. The annual budget shall appropriate sufficient funds for operating, recurring expenditures necessary to maintain established (i.e., status quo) quality and scope of city services. 3. The City will constantly examine the methods for providing public services in order to reduce operating, recurring expenditures and/or enhance quality and scope of public services with no increase to cost. 4. Salaries and benefits expenditures will reflect the minimum staffing needed to provide established quality and scope of city services. To attract and retain employees necessary for providing high-quality service, the City shall maintain a compensation and benefit package competitive with the public and, when quantifiable, private service industries. 5. Supplies and materials expenditures shall be sufficient for ensuring the optimal productivity of City employees. 6. Maintenance and operations expenditures shall be sufficient for addressing the deterioration of the City’s capital assets to ensure the optimal productivity of the capital assets. Maintenance should be conducted to ensure a relatively stable level of maintenance expenditures for every budget year. 7. Utility expenditure providers shall, when options are available, be selected on the basis of the provider’s competitive pricing and service. 8. The City will utilize contractual services for the provision of city services whenever private contractors can perform the established level of service at less expense to the City. The City will regularly evaluate its agreements with private contractors to ensure the established levels of service are performed at the least expense to the City. 9. Capital equipment is defined as equipment that exceeds $5,000 and has a useful life of at least one year. Bulk purchases of smaller equipment with a useful life of at least one year will be capitalized if the total amount of the purchase exceeds $25,000. Existing capital equipment shall be replaced when needed to ensure the optimal productivity of City employees. 10. Expenditures for additional capital equipment shall be made only to enhance employee productivity, improve quality of service, or expand scope of service. 11. Expenditures for other expenses not included in the categories above shall be made strictly on the basis of economic and business merit, ensuring the best possible return on each dollar spent. 12. To assist in controlling the growth of operating expenditures, operating departments will submit their annual budgets to the City Manager during the budget preparation process. Departments shall provide justification where projected expenditures exceed prior year budgeted amounts. Fund Balance 1. The annual budget shall be presented to City Council with each fund reflecting an ending fund balance which is no less than 25 percent of that fund’s annual operating expenditures. To satisfy the particular needs of individual funds, ending fund balances may be established which exceed the 25 percent minimum. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 185 294 Item 11. 2. Fund balance that exceeds the minimum level established for each fund may be appropriated for non-recurring capital projects or programs, reserves or as the Council directs. 3. The City will exercise diligence in avoiding the appropriation of fund balance for recurring operating expenditures. In the event fund balance is appropriated for recurring operating expenditures to meet the needs of the Sanger community, the budget document shall include an explanation of the circumstances requiring the appropriation and the methods to be used to arrest the future use of fund balance for operating expenditures. Fund Transfers 1. With the exceptions noted below, there will be no operating transfers between funds. Any costs incurred by one fund to support the operations of another shall be charged directly to the fund. 2. Fund transfers may occur when surplus fund balances are used to support non-recurring capital expenses or when needed to satisfy debt service obligations. 3. Transfers are permitted between funds to support economic development programs. 4. Transfers are permitted from the Enterprise Fund to other funds to cover the cost of operations. Debt Expenditures 1. The City shall have the right and power, except as prohibited by law or the City Charter, to borrow money by whatever method it may deem to be in the public interest. 2. The City shall have the power to borrow money on the credit of the City and to issue general obligation bonds for permanent public improvements or for any other public purpose not prohibited by law and the City Charter and to issue refunding bonds to refinance outstanding bonds previously issued. All such bonds or certificates of obligation shall be issued in conformity with the laws of the State of Texas and shall be used only for purposes for which they were issued. General obligation bonds shall not be issued without an election. In all cases when the City Council shall order an election for the issuance of bonds of the City, it shall, at the same time, state whether or not a tax rate increase is anticipated for the purpose of paying the principal and interest on the bonds and to create a sinking fund for their redemption. 3. The City shall have the power to borrow money for the purpose of constructing, purchasing, improving, extending or repairing public utilities, recreational facilities, or any other self-liquidating municipal function not prohibited by the Constitution and the laws of the State of Texas, and to issue revenue bonds to evidence the obligation created thereby. Such shall be a charge upon and payable from the properties, or interest therein pledged, or the income therefrom, or both. The holders of the revenue bonds shall never have the right to demand payment thereof out of moneys raised or to be raised by taxation. All such bonds shall be issued in conformity with the laws of the State of Texas and shall be used only for the purpose for which they were issued. 4. When needed to minimize annual debt payments, the City will obtain insurance for new debt issues. Capital Project Expenditures 1. The City will develop a multi-year plan for capital projects, which identifies all projects likely to be constructed within a five-year horizon. The multi-year plan will reflect for each project the likely source of funding and attempt to quantify the project’s impact to future operating expenditures. 2. Capital projects will be constructed to: a. Protect or improve the community’s quality of life. b. Protect or enhance the community’s economic vitality. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 186 295 Item 11. c. Support and service new development. 3. To minimize the issuance of debt, the City will attempt to support capital projects with appropriations from operating revenues or excess fund balances (i.e., “pay-as-you-go”). Purchasing 1. All purchases and contracts over $3,000 shall conform to Chapter 252, Subchapter B of the Local Government Code of Texas, as amended. Purchases of goods or services over $50,000 shall be submitted to the City Council for approval. The adoption of the annual budget gives the City Manger the authority to approve all other purchases for goods or services in accordance with each department’s approved budget. 2. Purchases of goods or services at a total cost of $1,000 or more must be made through the City’s purchase order system. Written purchase orders shall also be used for vendors requiring formal City authorization regardless of dollar amount. 3. Purchases of goods or services at a total cost of less than $1,000 may be made via a written Accounts Payable Voucher, signed and submitted by the applicable Department Director to the Finance Department. 4. All invoices approved for payment by the proper City authorities shall be paid by the Finance Department within thirty (30) calendar days of receipt in accordance with provisions of Article 601f, Section 2 of the State of Texas Civil Statutes. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 187 296 Item 11. INVESTMENT POLICY *The Sanger City Council approved the City’s Investment Policy on September 19, 2022 POLICY STATEMENT It is the objective of the City of Sanger, Texas (“City”) that the administration of its funds and the investment of those funds shall be handled in the highest public trust. Investments shall be made in a manner which will provide the maximum security of principle invested through limitations and diversification while meeting the daily cash flow needs of the city and conforming to all applicable federal, state, and local statutes, rules and regulations governing the investment of public funds. The receipt of a market rate return will be secondary to the requirements for safety and liquidity. The earning from investments shall be used in a manner that best serves the public trust and interest of the City. This policy serves to satisfy the statutory requirements of defining and adopting a formal investment policy and shall be reviewed annually for modifications. It is the intent of the City to be in compliance with local law and the provisions of Public Funds Investment Act of the Texas Government Code Chapter 2256. SCOPE This Investment Policy applies to the investment activities, all financial assets and funds held by the City of Sanger, Texas. Funds covered and managed by this Investment Policy include: A. General Fund – Used to account for resources traditionally associated with government, which are not required to be accounted for in another fund. B. Debt Service Fund – Used to account for resources to be used for the payment of principle, interest and related costs on debt. C. Enterprise Fund – Used to account for operations that are financed and operated in a manner similar to private business enterprises. D. Capital Improvement Fund – Used to account for resources to enable the acquisition or construction of major capital facilities which are not financed by enterprise funds, internal service funds, or trust funds. E. Special Revenue Funds – Used to account for proceeds from specific revenue sources which are restricted to expenditures for specific purposes. 1. 4A Fund 2. 4B Fund 3. Employee Benefits Fund INVESTMENT OBJECTIVES AND STRATEGY It is the policy of the City that all funds shall be invested in conformance with state and federal regulations, applicable bond ordinance requirements, and adopted Investment Policy. In accordance with the Public Funds Investment Act, the following prioritized primary objectives, in accordance with the Texas Government Code Section 2256.005(d) apply to the City’s investment strategy. Listed in order of their priority, these objectives encompass: A. Suitability – Understanding the suitability of the investment to the financial requirement of the City is important. Any investment eligible in the Investment Policy is suitable for all City funds. B. Safety – Preservation and safety of principal are the primary objectives of the Investment Policy. Investments of the City shall be undertaken in a manner that seeks to insure the preservation of capital in the overall portfolio. To obtain this goal, diversification is required in the portfolio’s composition. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 188 297 Item 11. The suitability of each investment decision will be made on the basis of these objectives. The City prefers to invest in money market accounts, certificates of deposits, and United States government backed agency discount notes. C. Liquidity – The City’s investment portfolio will remain sufficiently liquid to meet operating requirements that might be reasonably anticipated. The City’s investment portfolio will remain sufficiently liquid and enable it to meet all operating requirements which might be reasonably anticipated. D. Diversification – Investment maturities shall be staggered throughout the budget cycle to provide cash flow based on the anticipated needs of the City. Diversifying the appropriate maturity structure will reduce market cycle risk. Diversification of the portfolio will include diversification by maturity and market sector and will include the use of a number of brokers/dealers for diversification and market coverage. Competitive bidding will be used on each sale and purchase. E. Yield – Attaining a competitive market yield, commensurate with the City’s investment risk constraints and cash flow characteristic of the portfolio, is the desired objective. The City’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City’s risk constraints and the cash flow of the portfolio. “Market rate of return” may be defined as the average yield of the current three-month U.S. Treasury Bill or such other index that most closely matches the average maturity of the portfolio. The City’s objective shall be a reasonably safe yield rate in accordance with payment schedules and other investment goals. Effective cash management is recognized as essential to good fiscal management. Cash management is defined as the process of managing monies in order to ensure maximum cash availability. The City shall maintain a comprehensive cash management program which includes collection of accounts receivable, prudent investment of its available cash, disbursement of payments in accordance with invoice terms and the management of banking services. The City staff will follow the “Prudent Person” statement relating to the standard of care that must be exercised when investing public funds as expressed in the Texas Government Code Section 2256.006(a-b). The Investment Officers shall avoid any transactions that might impair public confidence in the City’s ability to govern effectively. The governing body recognizes that in diversifying the portfolio, occasional measured unrealized losses due to market volatility are inevitable, and must be considered within the context of the overall portfolio’s investment return, provided that adequate diversification has been implemented. The prudence of the investment decision shall be measured in accordance with the tests set forth in the Texas Government Code Section 2256.006(b). It shall be the policy of the City not to invest in speculative instruments such as derivatives. LEGAL LIMITATIONS, RESPONSIBILITIES AND AUTHORITY Direct specific investment parameters for the investment of public funds in Texas are found in the Public Funds Investment Act of the Texas Government Code Section 2256. The Interlocal Cooperation Contracts, Section 791, of the Texas Government Code authorizes local governments to participate in public funds investments in conjunction with other local governments and agencies of the state of Texas. Section 791 along with Section 2256 of the Texas Government Code provides authorization for participation in investment pools to invest public funds jointly with objectives of preservation and safety of principal, liquidity, and yield. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 189 298 Item 11. DELEGATION OF INVESTMENT AUTHORITY The City Manager and the Finance Director acting on behalf of the City Council are designated as the Investment Officers of the City and are responsible for investment management decisions and activities. The Council is responsible for considering the quality and capability of staff, investment advisors, and consultants involved in investment management and procedures. All participants in the investment process shall seek to act responsibly as custodians of the public trust. The Investment Officers shall develop and maintain written administrative procedures for the operation of the investment program which are consistent with the investment policy. Procedures will include reference to safekeeping, wire transfers, certificates of deposit, and fund accounts. Additional procedures will be documented for the performance of wire transfer agreements; banking services contracts, and other investment related activities. The Investment Officers shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and staff. The Investment Officers shall designate a staff person as a liaison/deputy in the event circumstances require timely action and the Investment Officers are not available. No officer or designee may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Investment Officers and approved by the City Council. PRUDENCE – STANDARD OF CARE The standard of prudence to be used in the investment function shall be the “prudent person” standard and shall be applied in the context of managing the overall portfolio. The Texas Government Code Section 2256.006(a) states Investments shall be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person’s own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. Limitation of Personal Liability The Investment Officers and those delegated investment authority under this policy, when acting in accordance with the written procedures and this policy and in accordance with the written procedures and this policy and in accord with the Prudent Person Rule, shall be relieved of personal responsibility and liability in the management of the portfolio provided that deviations from expectations for a specific security’s credit risk or market price change or portfolio shifts are reported in a timely manner and that appropriate action is taken to control adverse market effects. INTERNAL CONTROLS The Investment Officers shall establish a system of written internal controls which will be reviewed annually with the independent auditor of the City. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees or Investment Officers of the City. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 190 299 Item 11. Cash Flow Forecasting Cash flow forecasting is designated to protect and sustain cash flow requirements of the City. Supplemental to the financial and budgetary systems, the Investment Officers will maintain a cash flow forecasting process designed to monitor and forecast cash positions for investment purposes. Cash flow will include the historical researching and monitoring of specific cash flow items, payables, and receivables as well as overall cash position and patters. AUTHORIZED INVESTMENTS Acceptable investments under this policy shall be limited to the instruments listed below. The investments shall be selected in a manner which promotes diversity of the market sector and maturity. The selection of high-grade government investments and high-grade money market instruments is designed to assure the marketability of those investments should the need for liquidity arise. A. Obligations of the United States Government, its agencies and instrumentalities, and government sponsoring enterprises, not to exceed two years to stated maturity; B. Fully insured or collateralized certificates of deposit from a bank doing business in the State of Texas and under the terms of a written depository agreement with that bank, not to exceed three years to the stated maturity; C. Money market funds authorized by the Public Funds Investment Act of the Texas Government Code Chapter 2256. D. Texas Local Government Investment Pools authorized by the Public Funds Investment Act of the Texas Government Code Chapter 2256. Additional types of securities approved for investment of public funds by Texas state statutes are not eligible for investment by the City until this Investment Policy has been amended and the amended version approved by the City Council authorizing investment of these additional types of securities. Competitive Bidding Requirements All securities, excluding certificates of deposit, will be purchased or sold after three (3) offers/bids are taken to verify that the City is receiving fair market value/price for the investment. Delivery versus Payment All security transactions, including collateral for repurchase agreements, entered into by the City, shall be conducted on a delivery versus payment (DVP) basis. SAFEKEEPING AND COLLATERALIZATION The laws of the State and prudent treasury management require that all purchased securities be bought on a delivery versus payment basis and be held in safekeeping by either the City, an independent third-party financial institution, or the City’s designated depository. All safekeeping arrangements shall be designed by the Investment Officers and an agreement of the terms executed in writing. The third-party custodian shall be required to issue safekeeping receipts to the City listing each specific security, rate, description, maturity, cusip number, and other pertinent information. Each safekeeping receipt will be clearly marked that the security is held for the City or pledged to the City. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 191 300 Item 11. All securities pledged to the City for certificates of deposit or demand deposits shall be held by an independent third-party bank domiciled in Texas. The safekeeping bank may be written within the same holding company as the bank, from which the securities are pledged. Collateralization Collateralization shall be required on all public funds of the City over the FDIC insurance coverage limit, and in order to anticipate market changes and provide a level of additional security for all funds, the collateralized level required will be 102% of the market value of the principal accrued interest. PERFORMANCE EVALUATION AND REPORTING The Investment Officers shall submit quarterly and annual reports to the City Council containing a written report of investment transactions and investment positions as of the date of report. The report will be prepared jointly by all involved in the investment activity and be signed by the Investment Officer(s). DEPOSITORIES The City will designate one banking institution through a competitive process as its central banking service provider. This institution will be used for normal banking services including disbursements, deposits, and lockbox. As a matter of ensuring liquidity and security should the funds deposited with the designated bank be temporarily unavailable, the City will maintain an emergency reserve in another qualified bank. INVESTMENT POLICY ADOPTION BY CITY COUNCIL The City’s Investment Policy shall be formally approved and adopted by resolution of the City Council and reviewed annually in accordance with the provisions of the Public Funds Investment Act of the Texas Government Code Chapter 2256. AMENDMENT In the event Texas state law changes and the City cannot invest in the investments described by this policy, this policy shall automatically be conforming to existing law. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 192 301 Item 11. DEBT SERVICE SCHEDULES Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2024 37,400 7,180 44,580 72,600 13,940 86,540 110,000 21,120 131,120 2025 39,100 5,536 44,636 75,900 10,744 86,644 115,000 16,280 131,280 2026 42,500 3,814 46,314 82,500 7,406 89,906 125,000 11,220 136,220 2027 44,200 1,944 46,144 85,800 3,776 89,576 130,000 5,720 135,720 Total 163,200 18,474 181,674 316,800 35,866 352,666 480,000 54,340 534,340 Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2024 - - - 290,000 160,750 450,750 290,000 160,750 450,750 2025 - - - 300,000 151,900 451,900 300,000 151,900 451,900 2026 - - - 310,000 142,750 452,750 310,000 142,750 452,750 2027 - - - 320,000 132,900 452,900 320,000 132,900 452,900 2028 - - - 330,000 121,925 451,925 330,000 121,925 451,925 2029 - - - 340,000 110,200 450,200 340,000 110,200 450,200 2030 - - - 355,000 97,594 452,594 355,000 97,594 452,594 2031 - - - 370,000 84,000 454,000 370,000 84,000 454,000 2032 - - - 380,000 69,937 449,937 380,000 69,937 449,937 2033 - - - 395,000 55,406 450,406 395,000 55,406 450,406 2034 - - - 410,000 40,313 450,313 410,000 40,313 450,313 2035 - - - 425,000 24,656 449,656 425,000 24,656 449,656 2036 - - - 445,000 8,344 453,344 445,000 8,344 453,344 Total - - - 4,670,000 1,200,675 5,870,675 4,670,000 1,200,675 5,870,675 Purpose: to acquire and renovate a building and parking area to be used by the City’s public works department; to purchase phone, alarm and computer equipment and office furniture for such building; and professional services rendered in connection with this project. Purpose: to pay for rehabilitation, reconstruction, addition and expansion of the waste water treatment plant; rehabilitation and construction of wastewater lift stations and wastewater lines; construction of water lines and associated equipment and facilities rehabilitation, reconstruction and construction of streets and drainage; rehabilitation of municipal facilities; and professional services rendered in connection with this project. General Fund 34% Enterprise Fund: 66% Total Certificates of Obligation, Series 2015 Enterprise Fund: 100% Total Certificates of Obligation, Series 2007 General Fund: 0% P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 193 302 Item 11. Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2024 - - - 115,000 361,050 476,050 115,000 361,050 476,050 2025 - - - 115,000 357,600 472,600 115,000 357,600 472,600 2026 - - - 115,000 353,000 468,000 115,000 353,000 468,000 2027 - - - 390,000 348,400 738,400 390,000 348,400 738,400 2028 - - - 545,000 332,800 877,800 545,000 332,800 877,800 2029 - - - 560,000 311,000 871,000 560,000 311,000 871,000 2030 - - - 585,000 288,600 873,600 585,000 288,600 873,600 2031 - - - 605,000 265,200 870,200 605,000 265,200 870,200 2032 - - - 630,000 241,000 871,000 630,000 241,000 871,000 2033 - - - 660,000 215,800 875,800 660,000 215,800 875,800 2034 - - - 1,010,000 189,400 1,199,400 1,010,000 189,400 1,199,400 2035 - - - 1,050,000 149,000 1,199,000 1,050,000 149,000 1,199,000 2036 - - - 1,090,000 107,000 1,197,000 1,090,000 107,000 1,197,000 2037 - - - 1,585,000 63,400 1,648,400 1,585,000 63,400 1,648,400 Total - - - 9,055,000 3,583,250 12,638,250 9,055,000 3,583,250 12,638,250 Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2024 225,000 23,300 248,300 - - - 225,000 23,300 248,300 2025 235,000 14,300 249,300 - - - 235,000 14,300 249,300 2026 245,000 4,900 249,900 - - - 245,000 4,900 249,900 Total 705,000 42,500 747,500 - - - 705,000 42,500 747,500 Purpose: to refund certain obligations (Combination Tax & Revenue Certificates of Obligations, Series 2009) of the City, and professional services related thereto. Purpose: to pay for the restoration, replacement, rehabilitation, and expansion of the wastewater and water systems, including the treatment plant; street and drainable improvements; and professional services related thereto. Certificates of Obligation, Series 2017 General Obligation Refunding Bonds, Series 2019 Enterprise Fund: 100% TotalGeneral Fund: 0% General Fund 100% Enterprise Fund: 0% Total P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 194 303 Item 11. Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2024 - - - 320,000 550,750 870,750 320,000 550,750 870,750 2025 - - - 345,000 541,150 886,150 345,000 541,150 886,150 2026 - - - 395,000 534,250 929,250 395,000 534,250 929,250 2027 - - - 140,000 526,350 666,350 140,000 526,350 666,350 2028 - - - 135,000 523,550 658,550 135,000 523,550 658,550 2029 - - - 160,000 519,500 679,500 160,000 519,500 679,500 2030 - - - 160,000 514,700 674,700 160,000 514,700 674,700 2031 - - - 185,000 509,900 694,900 185,000 509,900 694,900 2032 - - - 260,000 504,350 764,350 260,000 504,350 764,350 2033 - - - 290,000 493,950 783,950 290,000 493,950 783,950 2034 - - - 290,000 482,350 772,350 290,000 482,350 772,350 2035 - - - 320,000 470,750 790,750 320,000 470,750 790,750 2036 - - - 370,000 457,950 827,950 370,000 457,950 827,950 2037 - - - 395,000 446,850 841,850 395,000 446,850 841,850 2038 - - - 1,620,000 435,000 2,055,000 1,620,000 435,000 2,055,000 2039 - - - 1,665,000 386,400 2,051,400 1,665,000 386,400 2,051,400 2040 - - - 1,715,000 336,450 2,051,450 1,715,000 336,450 2,051,450 2041 - - - 1,765,000 285,000 2,050,000 1,765,000 285,000 2,050,000 2042 - - - 1,820,000 232,050 2,052,050 1,820,000 232,050 2,052,050 2043 - - - 1,875,000 177,450 2,052,450 1,875,000 177,450 2,052,450 2044 - - - 1,930,000 121,200 2,051,200 1,930,000 121,200 2,051,200 2045 - - - 1,990,000 63,300 2,053,300 1,990,000 63,300 2,053,300 2046 - - - 120,000 3,600 123,600 120,000 3,600 123,600 Total - - - 18,265,000 9,116,800 27,381,800 18,265,000 9,116,800 27,381,800 Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2024 31,200 5,134 36,334 228,800 37,652 266,452 260,000 42,786 302,786 2025 30,600 4,956 35,556 224,400 36,348 260,748 255,000 41,304 296,304 2026 31,200 4,690 35,890 228,800 34,395 263,195 260,000 39,085 299,085 2027 31,800 4,341 36,141 233,200 31,833 265,033 265,000 36,174 301,174 2028 31,800 3,889 35,689 233,200 28,521 261,721 265,000 32,410 297,410 2029 33,000 3,390 36,390 242,000 24,860 266,860 275,000 28,250 303,250 2030 33,000 2,786 35,786 242,000 20,431 262,431 275,000 23,217 298,217 2031 34,200 2,149 36,349 250,800 15,761 266,561 285,000 17,910 302,910 2032 34,800 1,472 36,272 255,200 10,795 265,995 290,000 12,267 302,267 2033 34,800 741 35,541 255,200 5,436 260,636 290,000 6,177 296,177 Total 326,400 33,548 359,948 2,393,600 246,031 2,639,631 2,720,000 279,579 2,999,579 Purpose: to refund certain obligations (Combination Tax & Revenue Certificates of Obligations, Series 2013) of the City, and professional services related thereto. Purpose: to pay for the expansion and improvements to the City’s waster and sewer system; system renovations and line relocations to the City’s electric utility system; city-wide street repairs and improvements; and professional services related thereto. Certificates of Obligation, Series 2021A General Fund: 0% Enterprise Fund: 100% Total General Fund: 0% Enterprise Fund: 100% Total Certificates of Obligation, Series 2021B P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 195 304 Item 11. Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2024 646,000 175,454 821,454 - - - 646,000 175,454 821,454 2025 670,000 151,108 821,108 - - - 670,000 151,108 821,108 2026 695,000 125,856 820,856 - - - 695,000 125,856 820,856 2027 722,000 99,641 821,641 - - - 722,000 99,641 821,641 2028 749,000 72,428 821,428 - - - 749,000 72,428 821,428 2029 777,000 44,197 821,197 - - - 777,000 44,197 821,197 2030 806,000 14,911 820,911 - - - 806,000 14,911 820,911 Total 5,065,000 683,595 5,748,595 - - - 5,065,000 683,595 5,748,595 Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2024 - - - - 211,630 211,630 - 211,630 211,630 2025 - - - 217,056 217,056 - 217,056 217,056 2026 - - - 217,056 217,056 - 217,056 217,056 2027 - - - 217,056 217,056 - 217,056 217,056 2028 - - - 217,056 217,056 - 217,056 217,056 2029 - - - 217,056 217,056 - 217,056 217,056 2030 - - - 217,056 217,056 - 217,056 217,056 2031 - - - 130,000 217,056 347,056 130,000 217,056 347,056 2032 - - - 135,000 210,556 345,556 135,000 210,556 345,556 2033 - - - 140,000 203,806 343,806 140,000 203,806 343,806 2034 - - - 150,000 196,806 346,806 150,000 196,806 346,806 2035 - - - 155,000 189,306 344,306 155,000 189,306 344,306 2036 - - - 165,000 181,556 346,556 165,000 181,556 346,556 2037 - - - 170,000 173,306 343,306 170,000 173,306 343,306 2038 - - - 180,000 164,806 344,806 180,000 164,806 344,806 2039 - - - 190,000 155,806 345,806 190,000 155,806 345,806 2040 - - - 195,000 146,306 341,306 195,000 146,306 341,306 2041 - - - 205,000 138,506 343,506 205,000 138,506 343,506 2042 - - - 215,000 130,306 345,306 215,000 130,306 345,306 2043 - - - 220,000 121,706 341,706 220,000 121,706 341,706 2044 - - - 230,000 112,906 342,906 230,000 112,906 342,906 2045 - - - 240,000 103,706 343,706 240,000 103,706 343,706 2046 - - - 250,000 94,106 344,106 250,000 94,106 344,106 2047 - - - 260,000 84,106 344,106 260,000 84,106 344,106 2048 - - - 270,000 73,706 343,706 270,000 73,706 343,706 2049 - - - 280,000 62,906 342,906 280,000 62,906 342,906 2050 - - - 295,000 51,356 346,356 295,000 51,356 346,356 2051 - - - 305,000 39,188 344,188 305,000 39,188 344,188 2052 - - - 315,000 26,606 341,606 315,000 26,606 341,606 2053 - - - 330,000 13,613 343,613 330,000 13,613 343,613 Total - - - 5,025,000 4,405,993 9,430,993 5,025,000 4,405,993 9,430,993 Limited Tax Notes, Series 2023A Purpose: to purchase vehicles, equipment, real property for use by the City General Fund: 100% Enterprise Fund: 0% Total Certificates of Obligation, Series 2023B Purpose: purchase of real property for use by water, wastewater, and electric improvements. General Fund: 0% Enterprise Fund: 100% Total P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 196 305 Item 11. Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2024 160,000 537,327 697,327 - - - 160,000 537,327 697,327 2025 155,000 542,401 697,401 - - - 155,000 542,401 697,401 2026 165,000 534,511 699,511 - - - 165,000 534,511 699,511 2027 170,000 526,443 696,443 - - - 170,000 526,443 696,443 2028 180,000 518,129 698,129 - - - 180,000 518,129 698,129 2029 190,000 509,328 699,328 - - - 190,000 509,328 699,328 2030 200,000 499,827 699,827 - - - 200,000 499,827 699,827 2031 205,000 489,828 694,828 - - - 205,000 489,828 694,828 2032 220,000 479,577 699,577 - - - 220,000 479,577 699,577 2033 230,000 468,578 698,578 - - - 230,000 468,578 698,578 2034 240,000 457,078 697,078 - - - 240,000 457,078 697,078 2035 255,000 444,237 699,237 - - - 255,000 444,237 699,237 2036 265,000 430,595 695,595 - - - 265,000 430,595 695,595 2037 280,000 416,418 696,418 - - - 280,000 416,418 696,418 2038 295,000 401,438 696,438 - - - 295,000 401,438 696,438 2039 310,000 386,655 696,655 - - - 310,000 386,655 696,655 2040 330,000 368,756 698,756 - - - 330,000 368,756 698,756 2041 345,000 350,775 695,775 - - - 345,000 350,775 695,775 2042 356,000 331,973 687,973 - - - 356,000 331,973 687,973 2043 385,000 312,080 697,080 - - - 385,000 312,080 697,080 2044 405,000 291,098 696,098 - - - 405,000 291,098 696,098 2045 430,000 268,620 698,620 - - - 430,000 268,620 698,620 2046 455,000 244,755 699,755 - - - 455,000 244,755 699,755 2047 480,000 219,503 699,503 - - - 480,000 219,503 699,503 2048 505,000 192,862 697,862 - - - 505,000 192,862 697,862 2049 530,000 164,835 694,835 - - - 530,000 164,835 694,835 2050 560,000 135,420 695,420 - - - 560,000 135,420 695,420 2051 595,000 104,340 699,340 - - - 595,000 104,340 699,340 2052 625,000 71,318 696,318 - - - 625,000 71,318 696,318 2053 669,000 36,630 705,630 - - - 669,000 36,630 705,630 Total 10,190,000 10,735,335 20,925,335 - - - 10,190,000 10,735,335 20,925,335 Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2024 49,867 1,668 51,535 - - - 49,867 1,668 51,535 Total 49,867 1,668 51,535 - - - 49,867 1,668 51,535 General Fund: 100% Enterprise Fund: 0% Total Spirit of Texas Street Equipment Purpose: to purchase rolling stock and heavy equipment to be used in the City’s street department. Certificates of Obligation, Series 2023C Purpose: purchase of real property for future development by the City. General Fund: 100% Enterprise Fund: 0% Total P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 197 306 Item 11. Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2024 1,149,467 750,063 1,899,530 1,026,400 1,335,772 2,362,172 2,175,867 2,085,835 4,261,702 2025 1,129,700 718,301 1,848,001 1,060,300 1,314,798 2,375,098 2,190,000 2,033,099 4,223,099 2026 1,178,700 673,771 1,852,471 1,131,300 1,288,857 2,420,157 2,310,000 1,962,628 4,272,628 2027 968,000 632,369 1,600,369 1,169,000 1,260,315 2,429,315 2,137,000 1,892,684 4,029,684 2028 960,800 594,446 1,555,246 1,243,200 1,223,852 2,467,052 2,204,000 1,818,298 4,022,298 2029 1,000,000 556,915 1,556,915 1,302,000 1,182,616 2,484,616 2,302,000 1,739,531 4,041,531 2030 1,039,000 517,524 1,556,524 1,342,000 1,138,381 2,480,381 2,381,000 1,655,905 4,036,905 2031 239,200 491,977 731,177 1,540,800 1,091,917 2,632,717 1,780,000 1,583,894 3,363,894 2032 254,800 481,049 735,849 1,660,200 1,036,638 2,696,838 1,915,000 1,517,687 3,432,687 2033 264,800 469,319 734,119 1,740,200 974,398 2,714,598 2,005,000 1,443,717 3,448,717 2034 240,000 457,078 697,078 1,860,000 908,869 2,768,869 2,100,000 1,365,947 3,465,947 2035 255,000 444,237 699,237 1,950,000 833,712 2,783,712 2,205,000 1,277,949 3,482,949 2036 265,000 430,595 695,595 2,070,000 754,850 2,824,850 2,335,000 1,185,445 3,520,445 2037 280,000 416,418 696,418 2,150,000 683,556 2,833,556 2,430,000 1,099,974 3,529,974 2038 295,000 401,438 696,438 1,800,000 599,806 2,399,806 2,095,000 1,001,244 3,096,244 2039 310,000 386,655 696,655 1,855,000 542,206 2,397,206 2,165,000 928,861 3,093,861 2040 330,000 368,756 698,756 1,910,000 482,756 2,392,756 2,240,000 851,512 3,091,512 2041 345,000 350,775 695,775 1,970,000 423,506 2,393,506 2,315,000 774,281 3,089,281 2042 356,000 331,973 687,973 2,035,000 362,356 2,397,356 2,391,000 694,329 3,085,329 2043 385,000 312,080 697,080 2,095,000 299,156 2,394,156 2,480,000 611,236 3,091,236 2044 405,000 291,098 696,098 2,160,000 234,106 2,394,106 2,565,000 525,204 3,090,204 2045 430,000 268,620 698,620 2,230,000 167,006 2,397,006 2,660,000 435,626 3,095,626 2046 455,000 244,755 699,755 370,000 97,706 467,706 825,000 342,461 1,167,461 2047 480,000 219,503 699,503 260,000 84,106 344,106 740,000 303,609 1,043,609 2048 505,000 192,862 697,862 270,000 73,706 343,706 775,000 266,568 1,041,568 2049 530,000 164,835 694,835 280,000 62,906 342,906 810,000 227,741 1,037,741 2050 560,000 135,420 695,420 295,000 51,356 346,356 855,000 186,776 1,041,776 2051 595,000 104,340 699,340 305,000 39,188 344,188 900,000 143,528 1,043,528 2052 625,000 71,318 696,318 315,000 26,606 341,606 940,000 97,924 1,037,924 2053 669,000 36,630 705,630 330,000 13,613 343,613 999,000 50,243 1,049,243 Total 16,499,467 11,515,120 28,014,587 39,725,400 18,588,615 58,314,015 56,224,867 30,103,735 86,328,602 TotalGeneral Fund Enterprise Fund Total Debt P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 198 307 Item 11. STANDARD & POORS RATING REPORT The City of Sanger was assigned a rating of AA+/Stable upon the issuance of the series 2023 bonds. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 199 308 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 200 309 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 201 310 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 202 311 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 203 312 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 204 313 Item 11. 2023 TAX RATE CALCULATION WORKSHEET Texas Tax Code §26.04(c) requires the calculation of the no-new-revenue (NNR) tax rate and voter-approval tax rate for the taxing unit. These tax rates are expressed in dollars per $100 of taxable value calculated. The calculation process starts after the chief appraiser delivers to the taxing unit the certified appraisal roll and the estimated values of properties under protest. Texas Tax Code § 26.04(e-5) requires this calculation form be included in the annual budget document. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 205 314 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 206 315 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 207 316 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 208 317 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 209 318 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 210 319 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 211 320 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 212 321 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 213 322 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 214 323 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 215 324 Item 11. GLOSSARY OF TERMS Accrual Basis of Accounting The basis of accounting whereby revenue projections are developed recognizing revenues expected to be earned in the period, and expenditure estimates are developed for all expenses anticipated to be incurred during the last fiscal year. Ad Valorem Latin for “according to the value of.” Refers to the tax assessed against real (land and building) and personal (equipment and furniture) property. Appropriation A legal authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes. An appropriation is usually limited in the amount and as to the time when it may be expended. Assessed Valuation A valuation set upon real estate and certain personal property by the appraisal district as a basis for levying property taxes. Assets Resources owned or held by a government which has monetary value. Audit The annual formal examination of the City’s financial statement by an independent third-party accounting firm. Balanced Budget A budget that is resources (revenues, fund balance) that equals, or is greater than, uses (expenditures/expenses, capital outlay). Basis of Accounting The timing method used in the recognition of revenues and expenditures for financial reporting purposes. Bond A written promise to pay a specified sum of money at a specified date or dates in the future, called the maturity date(s), together with periodic interest at a specified rate. Budget A plan of financial operation embodying an estimate of proposed expenditures for any given period and the proposed means of financing them. Capital Expenditures/ Outlays An acquisition or an improvement that will have a life of more than one year and cost more than $5,000. Repairs that do not extend the life of an asset do not qualify. Capital Project A specific project in the Capital Projects Fund or in the Enterprise Capital Projects Fund. These major projects (e.g., parks, buildings, streets, water lines) have a long-term nature and are constructed for the public good. Capital Projects Funds Funds that have been created to account for financial resources to be used to acquire or construct major capital projects (see above). Cash Basis of Accounting The method of accounting under which revenues are recorded when received and expenditures are recorded when paid. CIP Acronym for Capital Improvement Plan. CCN A Certificate of Convenience and Necessity (CCN) gives a public utility the exclusive right to provide retail utility service to an identified geographic area, referred to as the certified service area. DATCU Acronym for Denton Area Teachers Credit Union. Debt Service Payment of interest and repayment of principle to holders of a government’s debt instruments. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 216 325 Item 11. Debt Service Fund A fund established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. The Town has no debt; therefore, no debt service fund budget is presented. DFW Acronym for The Dallas - Fort Worth area. EMS Acronym for Emergency Medical Services. Encumbrances Commitments related to unperformed (executory) contracts for goods and services. Enterprise Fund A proprietary fund type used to report activity for which a fee is charged to external users for goods or services. ERCOT Acronym for Electric Reliability Council of Texas. Expenditures Decreases in net financial resources. Expenditures include current operating expenses which require the current or future use of net current assets, debt service, and capital outlays. FM Designation for Farm to Market road. Fiduciary Fund A fund type used to report assets held in a trustee or agency position for other entities. Fund An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives. Fund Balance (Equity) The difference between fund assets and fund liabilities reported in the Town’s governmental funds. For Budget presentation purposes, Fund Balance shall be defined as Unassigned Fund Balance for governmental funds and as Net Working Capital for proprietary funds. FY Acronym for Fiscal Year. GAAP Acronym for Generally Accepted Accounting Principles, which are a collection of rules and procedures that set the basis for the fair presentation of financial statements. The accounting and reporting policies of the Town conform to the GAAP applicable to state and local governments. GASB Acronym for Government Accounting Standards Board, an independent, non-profit agency responsible for the promulgation of accounting and financial reporting procedures for governmental entities. General Fund General Operating Fund of the Town, accounting for the resources and expenditures related to the generally recognized governmental services provided. Governmental Funds Funds generally used to account for tax-supported activities. There are five (5) types of governmental funds; the general fund, special revenue funds, debt services funds, capital projects funds and permanent funds. HOT Acronym for Hotel Occupancy Tax. I&I Acronym for Inflow & Infiltration. Inflow happens when groundwater and stormwater seep into sanitary sewer systems through private and public defects within the collection system. Infiltration is when groundwater enters the sanitary sewer system through faulty pipes or manholes. I&S Acronym for Interest & Sinking. Infrastructure Public domain fixed assets such as roads, bridges, curbs and gutters, streets and sidewalks, drainage P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 217 326 Item 11. systems, lighting systems and similar assets that are immovable and of value only to the government unit. Internal Service Fund A fund used to account for the financing of goods or services provided by one department or agency to other departments or agencies of a government, or to other governments, on a cost-reimbursement basis. The Town’s Equipment Replacement, Technology Replacement and Building Maintenance & Investment Funds are internal service funds. MICU Acronym for Mobile Intensive Care Unit. M&O Acronym for Maintenance & Operations Major Fund A fund whose revenues, expenditures, assets or liabilities are greater than ten percent of corresponding totals and at least five percent of the aggregate amount for all governmental and enterprise funds. Modified Accrual A combination of cash basis and accrual basis. Revenues are recognized when they are (1) measurable and (2) available. Expenditures are fully accrued as they are measurable when they are incurred. No-New-Revenue (NNR) Tax Rate The no-new-revenue tax rate enables the public to evaluate the relationship between taxes for the prior year and for the current year, based on a tax rate that would produce the same amount of taxes if applied to the same properties taxed in both years. Ordinance A formal legislative enactment by the governing body of a municipality. If it is not in conflict with any higher form of law, such as a state statute or constitutional provision, it has the full force and effect of law within the boundaries of the municipality to which it applies. The difference between an ordinance and a resolution is that the latter requires less legal formality and has a lower legal status. Revenue raising measures, such as the imposition of taxes, special assessments and service charges, usually require ordinances. P&Z Acronym for Planning & Zoning. Proprietary Fund A fund type used to account for activities that involve business-like operations. R&M Acronym for Repairs & Maintenance. Revenues Increases in net financial resources. Revenues include the receipt of assets for goods sold or services provided in the current reporting period, intergovernmental grants, and interest income. SCBA Self-contained Breathing Apparatus Special Revenue Fund A fund used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditure for specifies purposes. GAAP only require the use of special revenue funds when legally mandated. These include the Court Technology and Court Security Funds. SWOT Acronym for an analysis of the City’s Strengths, Weaknesses, Opportunities and Threats. Tax Levy The total amount of taxes imposed by the Town of taxable property within in its boundaries. Tax Rate The dollar rate for taxes levied for each $100 of assessed valuation. TBD Acronym for To Be Determined. TXDOT Acronym for Texas Department of Transportation. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 218 327 Item 11. Transfer The movement of monies from one fund, activity, department, or account to another. This includes budgetary and/or movement of assets. Voter-Approval Tax Rate The voter-approval tax rate is a calculated maximum rate allowed by law without voter approval. The calculation splits the voter-approval tax rate into two separate components - a no-new-revenue maintenance and operations (M&O) rate and a debt service rate. WW Acronym for Waste Water. WWTP Abbreviation for Waste Water Treatment Plant. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 219 328 Item 11. P R O P O S E D The City of Sanger, Texas Propsed Budget 2023-2024 Page 220 329 Item 11. CITY COUNCIL COMMUNICATION DATE: August 21, 2023 FROM: Clayton Gray, Finance Director AGENDA ITEM: Consideration and possible action on Ordinance 08-20-23, setting the City's Ad Valorem tax rate at $0.689747/$100 of taxable assessed valuation for the Fiscal Year beginning October 1, 2023, and ending September 30, 2024. SUMMARY:  This Ordinance sets the tax rate for the 2023-2024 fiscal year at $0.689747/$100 valuation, which is an increase from the current rate of $0.589497/$100. Rate 2022-2023 2023-2024 Change M&O Rate $0.575208 $0.560957 ($0.014251) Debt Rate $0.014289 $0.128790 $0.114501 Total Rate $0.589497 $0.689747 $0.100250  The tax rate is as follows: $0.560957 for maintenance and operations and $0.128790 for general obligation debt.  Inc compliance with the Texas Property Tax Code, the City published required notices regarding the proposed tax rate in The Denton Record-Chronicle.  Notice of the proposed tax rate has been available to the public on the City’s website.  A public hearing regarding the proposed tax rate was held on August 14, 2023. FISCAL INFORMATION: N/A RECOMMENDED MOTION OR ACTION:  Staff recommends approval of Ordinance 08-20-23.  Under Section 26.05(b) of the Texas Property Tax Code, the motion to adopt this ordinance must be made in the following form: "I move that the property tax rate be increased by the adoption of a tax rate of $0.689747per $100, which is effectively a 28.82% percent increase in the tax rate.”  The vote on the ordinance must be a record vote of the City Council. ATTACHMENTS:  Ordinance 08-20-23 Levying a Property Tax Rate 330 Item 12. Ordinance 08-20-23 Levying a Property Tax Rate Page 1 of 2 CITY OF SANGER, TEXAS ORDINANCE No. 08-20-23 AN ORDINANCE OF THE CITY OF SANGER, DENTON COUNTY, TEXAS, LEVYING A TAX RATE FOR THE GENERAL GOVERNMENT FOR THE FISCAL YEAR 20 23- 2024 AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Sanger (the “City”) is a home rule municipality regulated by state law and Charter; and WHEREAS, the City Council of the City of Sanger finds that a tax rate of $0.689747 per $100 valuation for the Fiscal Year 2023-2024, hereinafter levied for current expenses of the City and general improvements of the City and its property, must be levied to provide the revenue requirements of the budget for the ensuing year; and WHEREAS, all statutory and constitutional requirements for the levy and assessment of ad valorem taxes have been completed in due and correct time and all requirements of the Sanger Charter have been met; and WHEREAS, the City Council finds that the passage of this Ordinance is in the best interest of the citizens of Sanger. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS: SECTION 1: That the City Council does hereby levy and adopt the tax rate on $100 assessed valuation for the City for maintenance and operation of the City government for the tax year 2032- 2024 as follows: $0.560957/$100 SECTION 2: That the City Council does hereby levy and adopt the tax rate on $100 assessed valuation for the City for debt service for City government for the tax year 2022-2023 as follows: $0.128790/$100 SECTION 3. That, because the total amount of revenue generated from taxes to fund maintenance and operations will be greater than last year and because the tax rate exceeds the effective maintenance and operations rate, the following statements are made as required by Section 26.05 of the Texas Tax Code: THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR’S TAX RATE. THE TAX RATE WILL EFFECTIVELY BE RAISED BY 7.45 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $38.88. 331 Item 12. Ordinance 08-20-23 Levying a Property Tax Rate Page 2 of 2 SECTION 4. 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 5. 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 6. 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. SECTION 7. The City Council of the City of Sanger, Texas met in a public meeting on August 21, 2023, and adopted this ordinance with a majority vote as follows: Council Member Marissa Barrett AYE ___ NAY ___ ABSTAIN ___ ABSENT ___ Council Member Gary Bilyeu AYE ___ NAY ___ ABSTAIN ___ ABSENT ___ Council Member Dennis Dillon AYE ___ NAY ___ ABSTAIN ___ ABSENT ___ Council Member Allen Chick AYE ___ NAY ___ ABSTAIN ___ ABSENT ___ Council Member Victor Gann AYE ___ NAY ___ ABSTAIN ___ ABSENT ___ PASSED AND APPROVED by the City Council of the City of Sanger, Texas on this 21st day of August 2023. APPROVED: ________________________________ ATTEST: Thomas E. Muir, Mayor ________________________________ APPROVED TO FORM: Kelly Edwards, City Secretary ________________________________ Hugh Coleman, City Attorney 332 Item 12. 19 CITY COUNCIL COMMUNICATION DATE: August 21, 2023 FROM: Clayton Gray, Finance Director AGENDA ITEM: Consideration and possible action on Ordinance 08-22-23, ratifying the property tax increase reflected in the fiscal year 2023-2024 budget. SUMMARY:  The proposed tax rate of $0.689747/$100 of taxable assessed valuation is an increase from the current tax rate of $0.589497/$100 of taxable assessed valuation.  The increased tax rate and the increase in property values from last year will result in the City receiving more revenues in property tax.  Section 102.007(c) of the Local Government Code requires a governing body that adopts a budget that raises more revenue from property taxes than in the previous year to ratify, by a separate vote, the property tax increase reflected in the budget. A vote under this subsection is in addition to and separate from the vote to adopt the budget or a vote to set the tax rate required by Chapter 26, Tax Code, or other law. The proposed 2023-2024 budget will raise more revenue from property taxes than in the previous year, and therefore requires a separate vote of the City Council to ratify the property tax increase reflected in the budget. FISCAL INFORMATION: N/A RECOMMENDED MOTION OR ACTION: Staff recommends approval of Ordinance 08-22-23. ATTACHMENTS:  Ordinance 08-22-23 Ratifying a Property Tax Increase 333 Item 13. Ordinance 08-22-23 Ratifying a Property Tax Increase Page 1 of 2 CITY OF SANGER, TEXAS ORDINANCE No. 08-22-23 AN ORDINANCE OF THE CITY OF SANGER, DENTON COUNTY, TEXAS, RATIFYING THE PROPERTY TAX REVENUE INCREASE IN THE 2023-24 BUDGET AS A RESULT OF THE CITY RECEIVING MORE REVENUES FROM PROPERTY TAXES IN THE 2023-2024 BUDGET THAN IN THE PREVIOUS FISCAL YEAR; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Sanger (the “City”) is a home rule municipality regulated by state law and Charter; and WHEREAS, Texas Local Government Code Section 102.007 , requires the City Council to ratify by a separate vote and providing the necessary disclosure language in the ratification, when there is an increase to the property tax revenues in the proposed budget as compared to the previous year; and, WHEREAS, the City's 2023-2024 Budget has an increase in property tax revenues as compared to the previous year; and WHEREAS, as a result of the approval of the 2023-2024 Budget, the City Council finds that it must ratify the increased revenue from property taxes; and WHEREAS, the City Council finds that passage of this Ordinance is in the best interest of the citizens of Sanger. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS: SECTION 1: That the City Council, as the governing body of the City of Sanger, Texas, having adopted the Fiscal Year 2023-2024 annual Budget that will require raising more revenue from property taxes than in the previous year, hereby ratifies the property tax increase reflected in the Fiscal Year 2023-2024 Annual Budget. SECTION 2. That all matters stated in the preamble are found to be true and correct and are incorporated herein as if copied in their entirety. 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. 334 Item 13. Ordinance 08-22-23 Ratifying a Property Tax Increase Page 2 of 2 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. PASSED AND APPROVED by the City Council of the City of Sanger, Texas on this 21st day of August 2023. APPROVED: ________________________________ ATTEST: Thomas E. Muir, Mayor ________________________________ APPROVED TO FORM: Kelly Edwards, City Secretary ________________________________ Hugh Coleman, City Attorney 335 Item 13. CITY COUNCIL COMMUNICATION DATE: August 21, 2023 FROM: Clayton Gray, Finance Director AGENDA ITEM: Consideration and possible action on Ordinance 08-21-23 amending the Fee Schedule, Appendix A, Article 4.00 Utility Related Fees, Section 4.307 Sewer Service Rates; providing for the repeal of all ordinances in conflict; providing for a severability clause; and providing a savings clause; authorizing publication; and establishing an effective date. SUMMARY:  On August 7, 2023, City Council approved Ordinance 08-15-23, amending the Fee Schedule for utility rates.  Section 4.307 (1) (b) identified the “Maximum monthly charge” for residential sewer service as $70.00, which was the previous maximum. This number should have been $97.00.  Ordinance 08-21-23 is to correct this error. FISCAL INFORMATION: Budgeted: NO Amount: N/A GL Account: N/A RECOMMENDED MOTION OR ACTION:  Staff recommends approval of Ordinance 08-21-23 ATTACHMENTS:  Ordinance 08-21-23 336 Item 14. Ordinance 08-21-23 Amending the Fee Schedule Sewer Service Rates Page 1 of 3 CITY OF SANGER, TEXAS ORDINANCE 08-21-23 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANGER, DENTON COUNTY, TEXAS, AMENDING THE FEE SCHEDULE, APPENDIX A, FEE SCHEDULE, SECTION 4.307 SEWER SERVICE RATES; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING A CUMULATIVE CLAUSE; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING A SAVINGS CLAUSE; AUTHORIZING PUBLICATION; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Sanger (the “City”) is a home rule municipality regulated by state law and Charter; and WHEREAS, the City Council approved Ordinance 08-15-23 adopting sewer service rates on August 7, 2023; and WHEREAS, the City of Sanger has determined that the fees proposed are sufficient to cover the City’s expenses; and WHEREAS, the City Council finds that the passage of this Ordinance is in the best interest of the citizens of Sanger. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SANGER, TEXAS AMENDS : SECTION 1. That Section 4.307 be amended as follows: 4.307 Sewer Service Rates. The rates to be charged by the city for sanitary sewer service are hereby established as follows: (1) Residential (a) Residential customers shall include all residential type users including, but not limited to, single-family residences, apartment units, trailer court units, duplexes, or any other service primarily intended for domestic or residential use. (b) All residential customers of municipal wastewater facilities will be charged the following rates: $37.41 minimum per unit served for 0–1,000 gallons $5.31 per thousand gallons 1,001–9,999 gallons $5.89 per thousand gallons 10,000+ gallons 337 Item 14. Ordinance 08-21-23 Amending the Fee Schedule Sewer Service Rates Page 2 of 3 $97.00 Maximum monthly charge (c) Multifamily Dwellings. The amount due for multifamily dwellings shall be the residential rate multiplied by the number of occupied dwelling units as computed for water that month. (d) Manufactured Home Parks. The amount due for manufactured home parks shall be the residential rate multiplied by the number of occupied dwelling units as computed for water that month. (2) Commercial (a) Commercial customers shall include commercial users such as, but not limited to, restaurants, cafes, carwashes, schools, hospitals, nursing homes, offices, hotels, motels, laundries, grocery stores, department stores, and other commercial business operations as may be identified as not a residential type user. (b) All commercial customers of municipal wastewater facilities shall be charged the following rates: 3/4" meter $55.06 minimum per unit served for 0–1,000 gallons 1" meter $60.25 minimum per unit served for 0–1,000 gallons 1-1/2" meter $68.55 minimum per unit served for 0–1,000 gallons 2" meter $83.39 minimum per unit served for 0–1,000 gallons 3" meter $102.83 minimum per unit served for 0–1,000 gallons 4" meter $190.84 minimum per unit served for 0–1,000 gallons 6" meter $253.66 minimum per unit served for 0–1,000 gallons 8" meter $334.78 minimum per unit served for 0–1,000 gallons 1,001–9,999 gallons $5.31 per thousand gallons 338 Item 14. Ordinance 08-21-23 Amending the Fee Schedule Sewer Service Rates Page 3 of 3 10,000+ gallons $5.89 per thousand gallons (3) Multiunit Commercial Structures. Where commercial tenants are served by a single water meter, the total water usage will be divided by the number of tenants, the bill calculated from the per tenant usage derived therefore shall be multiplied by the number of tenants to determine the amount due . The minimum per unit charge will be $55.06. (4) Without Water Service. Customers without city water service will be charged $70.38 per month if consumption is not provided by the entity providing water. SECTION 2. That all matters stated in the preamble are found to be true and correct and are incorporated herein as if copied in their entirety. 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 or any such unconstitutional word, phrase, clause, sentence, paragraph, or section. SECTION 4. That this Ordinance shall be cumulative of all other City Ordinances and all other provisions of other Ordinances adopted by the City which are inconsistent with the terms or provisions of this Ordinance are hereby repealed. SECTION 5. This ordinance and the rates herein adopted shall become effective, charged, and applied to services rendered by the City, and all usage by Customers of the City effective with the first billing issued on or after October 1, 2023. PASSED AND APPROVED by the City Council of the City of Sanger, Texas, on this 21st day of August 2023. APPROVED: ________________________________ ATTEST: Thomas E. Muir, Mayor ________________________________ APPROVED TO FORM: Kelly Edwards, City Secretary ________________________________ Hugh Coleman, City Attorney 339 Item 14. CITY COUNCIL COMMUNICATION DATE: August 21, 2023 FROM: Hugh Coleman, City Attorney AGENDA ITEM: Consideration and possible action regarding an Agreement between the City of Sanger and Denton 1000 LLC to Perform a Waste Water Study related to Denton County Municipal Utility District #12. SUMMARY:  The study is proposed to determine the feasibility of the City to provide waste water and sewer services to the proposed development known as Mud#12 located in the City’s sewer CCN. FISCAL INFORMATION: Budgeted: NO Amount: N/A GL Account: N/A The Developer will fund the proposed study in an amount not to exceed $100,000.00 RECOMMENDED MOTION OR ACTION: Staff recommends approval. ATTACHMENTS: Agreement 340 Item 15. AGREEMENT REGARDING WASTEWATER SERVICE AND WITHDRAWAL OF OBJECTIONS TO CREATION OF DISTRICT This agreement (“Agreement”) shall set forth the terms between the CITY OF SANGER, TEXAS (“Sanger”) and DENTON 1000 LAND, LP (“Denton 1000”) regarding wastewater service and the creation of a municipal utility district for an approximately 1,018.43 acre tract commonly known as the “Denton 1000 Tract”, as more particularly described in Exhibit “A” attached hereto. This Agreement is dated effective as of the date upon which all Parties have fully executed and delivered this Agreement (the “Effective Date”). Sanger and Denton 1000 are each a (“Party”) and collectively (the “Parties”). RECITALS WHEREAS, Denton 1000 filed an application with the Texas Commission on Environmental Quality (“TCEQ”) for the creation of Denton County Municipal Utility District No. 12 (the “District”) on June 24, 2022 and Sanger filed a request for a contested case hearing with TCEQ on December 6, 2022; and WHEREAS, Denton 1000 filed a streamlined expedited release petition with the Public Utility Commission of Texas (“PUC”) on May 31, 2023, to be released from Sanger’s sewer certificate of convenience and necessity (“CCN”) and the petition was assigned Docket No. 55070; and WHEREAS, the Parties wish to memorialize their mutual understanding of the obligations of the Parties pertaining to the creation of the District and the provision of retail wastewater service to the District; and WHEREAS, the Parties wish to withdraw their respective petitions regarding the retail wastewater decertification and the contested case hearing for the creation of the District and avoid further costs incurred by the Parties and in doing so each Party agrees to proceed with the items described in detail below. AGREEMENT 1. Agreements. The Parties hereby agrees as follows: A. Sanger desires to conduct a wastewater study to determine the facilities and capacity requirements in order for Sanger to provide retail wastewater service to the District. Sanger will engage an appropriate consultant and upon the consent of Denton 1000 proceed to procure the wastewater study. Sanger agrees to share the details and scope of the agreement with Denton 1000; and B. Within five (5) days of the Effective Date, Sanger agrees to file any necessary documentation to withdraw its opposition to the creation of the District and request for a contested case hearing, by filing any documents required by the TCEQ and the State Office of Administrative Hearings to evidence such withdrawal. Sanger further agrees to not submit any further opposition to the creation of the District; and 341 Item 15. C. Within five (5) days of the Effective Date, Denton 1000 agrees to file a withdrawal of the streamlined expedited release petition that was filed with the P UC and assigned Docket No. 55070; and D. Within thirty (30) days of the completion of the wastewater study, Sanger will provide an affirmative decision to Denton 1000 on the feasibility of Sanger providing wastewater service to the District. If Sanger determines that service is feasible for the District, Sanger shall provide a response to the wastewater service agreement previously submitted by Denton 1000 within fifteen (15) days after communication of such determination; and E. Denton 1000 will reimburse Sanger for the cost of the wastewater study up to a cap of $100,000 if (i) Sanger communicates during the time frame above that after consideration of the results of the study they deem service to the District is not feasible, or (ii) after negotiating in good faith toward a wastewater service agreement, either Party communicates to the other that they are unwilling to enter into such agreement. The reimbursement for the wastewater study shall be paid within thirty (30) days after communication of either (i) or (ii) above. In either case, Sanger will not oppose Denton 1000 filing a streamlined expedited release decertification if Sanger does not wish to proceed with wastewater service and Sanger agrees that Denton 1000’s costs associated with the wastewater study reimbursement will be considered the adequate compensation to Sanger for the decertification application. Sanger will provide any documentation that is needed in order to demonstrate to the Public Utility Commission of Texas that there is no further compensation owed to Sanger for the decertification. 2. Term. This Agreement shall be effective against all Parties from the Effective Date and until the District is receiving wastewater service. 3. Applicable Law; Venue. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Texas, and all obligations of the Parties are performable in Denton County. Exclusive venue for any action to enforce or construe this Agreement shall be in Denton County. 4. Amendments. Any amendments to this Agreement may be agreed to by all Parties in writing. 5. Events of Default. No Party shall be in default under this Agreement until notice of the alleged failure of such Party to perform has been given in writing (which notice shall set forth in reasonable detail the nature of the alleged failure) and until such Party has been given a reasonable time to cure the alleged failure (such reasonable time to be determined based on the nature of the alleged failure, but in no event more than thirty (30) days after written notice of the alleged failure has been given). Notwithstanding the foregoing, no Party shall be in default under this Agreement if, within the applicable cure period, the Party to whom the notice was given begins performance and thereafter diligently and continuously pursues performance until the alleged failure has been cured and within such 30-day period gives written notice to the non-defaulting Party of the details of why the cure will take longer than thirty (30) days with a stateme nt of how many days are needed to cure. 342 Item 15. 6. Remedies. If a Party is in default, the aggrieved Party may, at its option and without prejudice to any other right or remedy under this Agreement, seek any relief available at law or in equity, including, but not limited to, an action under the Uniform Declaratory Judgment Act, or actions for specific performance, mandamus, or injunctive relief. NOTWITHSTANDING THE FOREGOING, HOWEVER, NO DEFAULT UNDER THIS AGREEMENT SHALL ENTITLE THE AGGRIEVED PARTY TO TERMINATE THIS AGREEMENT OR LIMIT THE TERM OF THIS AGREEMENT. Failure to file the withdrawals required by this Agreement may be used a evidence to request the withdrawal in any state proceedings if a Party remains in default of this Agreement. 7. Successors and Assigns. This Agreement shall be binding upon the Parties hereto and upon any of the Parties’ respective successors and assigns. 8. No Third Party Beneficiaries. This Agreement does not create any third-party benefits to any person or entity other than the named Parties hereto, and is solely for the consideration and purposes herein expressed. 9. Authority; Governmental Immunity. The undersigned representatives covenant that they are fully authorized to sign this Agreement on behalf of their respective Party. This Agreement is executed by the Parties hereto without coercion or duress and for substantial consideration, the sufficiency of which is hereby acknowledged. By its execution of this Agreement, Sanger does not waive or surrender any of its respective governmental powers, immunities, or rights. 10. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable for any reason, then: (a) such unenforceable provision shall be deleted from this Agreement; (b) the unenforceable provision shall, to the extent possible and upon mutual agreement of the Parties, be rewritten to be enforceable and to give effect to the intent of the Parties; and (c) the remainder of this Agreement shall remain in full force and effect and shall be interpreted to give effect to the intent of the Parties. [signatures on following pages] 343 Item 15. Entered into as of the Effective Date. DENTON 1000 LAND, LP, By: Date: CITY OF SANGER, TEXAS By: Date: 344 Item 15. 345 Item 15. 346 Item 15. 347 Item 15. 348 Item 15. energy Chris Felan Vice President Rates &Reauiatorv Affairs July 25,2023 City Official Re:Rider GCR -Rate Filing under Docket No.10170 Enclosed is Atmos Energy Corp.,Mid-Tex Division's Statement of Rider GCR applicable for the August 2023 billing periods.This Statement details the gas cost component of the residential,commercial,and industrial sales rates for customers within your city. This filing is for informative purposes only and no action is required on your city's part. Should you have any questions,please let me know. Sincerely, Chris Felan Vice President,Rates and Regulatory Affairs Atmos Energy,Mid-Tex Division Attachment Atmos Energy Corporation 5420 LBJ Freeway,Suite 1800 Dallas,TX 75240 P 214-206-2568 F 214-206-2126 Christopher.Felan@atmosenergy.com 349 Item 16. ATMOS ENERGY CORPORATION MID-TEX DIVISION STATEMENT OF RIDER GCR August 2023 PREPARED IN ACCORDANCE WITH GAS UTILITIES DOCKET NO.10170 Part (a)-Mid-Tex Commodity Costs M (b)Line $0.29244 49,730,490 Estimated Gas Cost per Unit: Estimated City Gate Deliveries: Estimated Gas Cost: 1 2 $14,543,1843 2.5932%Lost and Unaccounted For Gas % Estimated Lost and Unaccounted for Gas Total Estimated City Gate Gas Cost: 4 $377,1345 $14,920,3186 Estimated Sales Volume:49,734,3807 Estimated Gas Cost Factor -(EGCF)0.300008 Reconciliation Factor -(RF): Taxes (TXS): Adjustment -(ADJ): 0.00000 0.00000 0.00000 9 10 11 Btu Factor 0.1024 Per MMBtu $2.9297GasCostRecoveryFactor-(GCRF)(Taxable)0.30000 per Ccf12 Part (b)-Pipeline Services Costs (e)M (d)Line (a )(b) Rate I -Industrial Service Rate T -Transportation 'Rate R -Residential Rate C -Commercial Fixed Costs 5.1497% 2,536,522 64.3027 % 31,672,759 30.5476% 15,046,441 Fixed Costs Allocation Factors [Set by GUD 10170] a.Current Month Fixed Costs of Pipeline Services b.Plus:Second Prior Month Recovery Adjustment Net Fixed Costs 100.0000% $49,255,722 13 14 $0 $0 $0$015 $15,046,441 $2,536,522$49,255,722 $31,672,75916 Commodity Costs a.Estimated Commodity Cost of Pipeline Services b.Plus:Second Prior Month Recovery Adjustment Net Commodity Cost of Pipeline Services ($824,449)17 (634,486)(259,597)69,634 $0$0 $0 $018 ($259,597)$69,634($824,449 )($634,486)19 $48,431,273 $31,038,273 $14,786,844 $2,606,15620TotalEstimatedPipelineCosts(Line 16 +Line 19) 21 Estimated Billed Volumes 67,128,250 Ccf 46,553,070 Ccf 4,875,760 MMBtu Pipeline Cost Factor (PCF)[Line 20 /Line 21](Taxable)0.31760 Ccf $0.5345 MMBtu220.46240 Ccf 23 Gas Cost Recovery Factor -(GCRF)[Line 12](Taxable)$2.9297 MMBtu0.30000 Ccf 0.30000 Ccf 24 Rider GCR 0.76240 Ccf 0.61760 Ccf Rate I -$3.4642 MMBtu $0.5345 MMBtu25RateT- 1 Industrial Service and Transportation are reported in MMBtu.An MMBtu conversion factor of .1024 is used to convert from Ccf. 350 Item 16.