062918 Friday Staff Report F` City Manager's Office
DENTON 215 E. McKinney St., Denton, TX 76201 • (940) 349-8307
MEMORANDUM
DATE: June 29, 2018
TO: The Honorable Mayor Watts and Council Members
FROM: Todd Hileman, City Manager
SUBJECT: Friday Staff Report
I. Council Schedule
A. Meetings
1. No City Council Luncheon on Monday, July 2, 2018.
2. Canceled- Committee on the Environment Meeting Monday, July 2, 2018.
3. Traffic Safety Commission Meeting on, Monday,July 2,2018 at 5:30 p.m. in the
City Council Work Session Room.
4. No City Council Meeting Tuesday, July 3, 2018.
5. No Agenda Committee Meeting on Wednesday, July 4, 2018.
6. Development Code Review Committee Meeting on Friday, July 6, 2018 at 11:00
a.m. in the City Council Work Session Room.
II. General Information & Status Update
A. July 4 Holiday Closure — City of Denton facilities will be closed on Wednesday,
July 4 in observance of the Independence Day federal holiday. Additional details
regarding operating hours for Libraries, Parks and Recreation, Solid Waste and
Recycling,Utilities, Public Safety, and Airport are provided in the attached press
release. DCTA will also be closed in observance of the holiday, no bus or rail
service will be provided on July 4. Additional information about DCTA closures
can be found in the attached DCTA press release. Staff contact: Jessica Rogers
B. Fourth of Jules—Please see below info on the festivities to celebrate the 4thi
• Liberty Run - The 20th annual Liberty 5K Run 11M Walk will take place
on Wed., July 4 beginning at 7:30 a.m. from the Denton Civic Center.
Interested participants can register for$25 by July 1 through the following
link https://bit.ly/2tfHB7J. Packet pick up is July 3 at the Civic Center.
OUR CORE VALUES
Integrity • Fiscal Responsibility • Transparency • Outstanding Customer Service
• Yankee Doodle Parade — The parade will begin at 9 a.m. in downtown
Denton. Staging begins at 8 a.m. and judging begins at 8:30 a.m. on South
Locust Street, between Walnut Street and Sycamore Street.
• Free Fourth of July Jubilee —Families are invited for free family fun at
the Civic Center and Quakertown Park from 9-11 a.m. Enjoy an adult
horseshoe tournament, free kid's carnival games, hot dog eating
competition and much more!
Staff contact: Laura Behrens, Parks &Recreation
C. Firework Safety—The Denton Fire Department would like to remind residents that
it is illegal to use or possess fireworks in the city limits or to use fireworks within
5,000 feet of the city limits. Please see that attached press release for additional
safety tips to help keep you and your family safe this Independence Day. Staff
Contact: Brad Lahart, Assistant Fire Chief/Fire Marshal
D. Denton Housing Authority (DHA)Board Meeting—Staff attended the DHA Board
meeting on Tuesday, June 26. At this meeting, the DHA Board approved an
agreement with a developer,Integrated Housing Solutions LLC(IHS),for a multi-
family residential rental development to be located on a 12.3 acre parcel on the
east side of Brinker Road(south of Wal-Mart), called The Enclave at Brinker. The
project is labeled as a workforce development and proposed to include 270 units
of which 51% will be restricted to occupancy by tenants whose income does not
exceed 80% of the Area Median Income (AMI) and 49% will be market rate.
Because the development is owned by a public facility corporation of the Denton
Housing Authority, the development will be tax-exempt for a period of up to 10
years. This equates to removing approximately $950,000 per year from the
combined tax revenue of the Denton Independent School District,Denton County,
and the City of Denton, assuming the development is appraised at the total cost of
$37.5M. A copy of the developer agreement was not available for the public as
part of the agenda item.A copy of the agreement has been requested by staff. Staff
contact: Sarah Kuechler, Public Affairs
E. Accepting Applications for CDBG Funding—As mentioned in the Friday June 15
report, the City of Denton has $217,923 in 2018-19 Community Development
Block Grant (CDBG) funds available. The application period is currently open
with a deadline for application submission of Friday, July 20 at 4 p.m. The funds
can be used to support public facilities projects in low to moderate-income
neighborhoods, and certain types of affordable housing projects or improvements
made to non-profit facilities that provide direct services to low and moderate-
income residents. Application training is required — a training session was held
today and another training session is scheduled for Tuesday, July 10 from 5:30 to
6:30 p.m. in the Community Development Division located at 601 E. Hickory St.,
Suite B. Interested organizations may contact Barbara Ross with any questions at
(940) 349-7235 or Barbara.Rosskcityofdenton.com. Staff contact: Barbara Ross,
Community Development
F. Discovery Kits Now Available at the Denton Public Library— Learn new things
with Discovery Kits at the Denton Public Library. Discovery Kits are clear
backpacks filled with hands on activities and learning tools to help children and
teens learn through discovery. Each backpack features a book or DVD and all the
resources needed for interactive learning. The kits were designed to take learning
to the next level by providing the equipment, instruments, or machinery needed to
apply a new skill.Discovery Kits offer children and teens the opportunity to unlock
their inner inventor, musician, tech geek, paleontologist, entomologist, poet,
reader, crafter, film maker, and more. Up to two Discovery Kits can be checked
out at a time. Discovery Kits have a 21 day checkout period. Visit
www.librM.cityofdenton.com and search for"discovery kit" to see our growing
list of Discovery Kits and their contents.
These are just a few examples of the Discovery Kits available at the Denton Public
Library:
• The Music Mania kit for preschoolers includes 2 books, 1 tone block, 1
wooden mallet, 1 triangle, 1 striking bar, 2 maracas, 1 cluster bell, 1 tom
tom,and an instruction sheet. It is perfect for the budding musician in your
family.
• The Force and Motion with Thomas Edison kit for youth includes 3 books,
1 bag with 70 building pieces, 6 bases, and 6 instruction sheets.
Elementary aged children learn about friction,light,force,engineering and
motion by building a working kinetoscope (motion-picture viewer).
• The Coding kit for teens includes 2 books, and 1 Ozobot. Teens can learn
to code and program the Ozobot to follow a path, overcome obstacles and
perform assigned tasks.
Staff contact: Jennifer Bekker, Director of Libraries
--
G. Contact Information for Boards and Commissions —At the June 19 City Council
Meeting, Mayor Watts requested additional information be added to the Boards
and Commissions webpage informing residents of how to contact
board/commission members. Currently, board/commission members are not
assigned a City email address. In order to facilitate the flow of information to
board/commission members, the staff liaison is considered the primary point of
contact and is responsible for distributing information to the board/commission
members. Each staff liaison's contact information is posted on the
board/commission page and residents are encouraged to contact the liaison if they
have information to share with a board/commission or have questions about a
board/commission meeting. The staff liaison then provides the information to the
board/commission members as requested. Information directing residents to
contact staff liaisons has been added to the board/commission webpage, and staff
is working to set up generic board/commission email addresses for the larger
boards/commissions (for example, staff is working to set up a
PUB@cityofdenton.com email address) to create a designated inbox. The generic
accounts would be managed by the staff liaison and messages distributed to the
board/commission. Staff contact: Jessica Rogers, Public Affairs
H. Information for Public Engagement at Council Meetings — At the June 19 City
Council Meeting, Council Member Hudspeth requested information be placed on
the website informing citizens of the ways they can engage with the City Council
during Council meetings. Staff have created a page on the City's website dedicated
to showing the many ways citizens can participate and engage with City Council.
The information is linked in other areas, such as the Public Meetings page, to
ensure that residents who are looking for that information have access to it in
multiple related locations. Council Members can view the information through this
link,which can also be shared with residents. Staff contact: Jessica Rogers, Public
Affairs
I. I-35 Express Phase I B Update —Northbound Frontage Road South of Teasley —
In the June 15 Friday Report, staff noted that TxDOT was reviewing the feasibility
of a request to re-align/re-stripe the northbound frontage road lanes near the
Brookshire's shopping center prior to Teasley Lane. The lane realignment will
increase capacity from a single lane to two lanes, alleviating some of the
construction congestion associated with the overall I-35 Express project,
specifically the closure of the northbound I-35 E on-ramp near the mall necessary
for construction of the new Loop 288 bridge structure. TxDOT's Area Engineer
has indicated that she will proceed with the frontage road lane realignment near
Teasley using local TxDOT maintenance crews and anticipates completion by the
end of July. Staff contact: Mark Nelson, Director of Transportation
J. Commercial Refuse Truck Scales —At the June 27 City Council Meeting, Mayor
Pro Tern Ryan requested additional information regarding the use of on-board
truck scales to help manage vehicle weight in the Solid Waste fleet. Solid Waste
and Fleet Services have collaborated for several years trying to perfect the use of
two different scale systems, fork scales and chassis mounted scales, with limited
success.
• Fork scales are designed to weigh each container as it is lifted and dumped
into the truck. These scales have calibration issues and cost $10,400 per
truck, excluding installation fees.
• Chassis mounted scales are designed to give the operator the total weight
of the truck. As the name implies, these scales are mounted directly to the
chassis and have a high failure rate due to the harsh landfill environment
which can cause extensive damage to components and wiring. Chassis
mounted scales cost $3,000 per truck.
The Solid Waste Department has developed an alternative solution to the
overweight load issue. Staff knows the average weight of waste and/or recycling
per container for the various collection routes.Using this data,the department will
instruct drivers to leave their routes and empty their loads after a certain number
of containers have been emptied. Each truck in the Solid Waste fleet is weighed
upon landfill entry. Department supervisors will monitor these weights and
address overweight load with the drivers as they occur. Staff contact: Ethan Cox,
Solid Waste/Terry Kader, Fleet Services
K. Improvements at I-35 and University—The parcel of land located along the
southwest corner of the I-35/University Drive interchange was acquired by
TxDOT as a part of the I-35 widening project (phase 1 and phase 2). While a
portion of this land may be needed for future expansion of I-35 (phase 2 widening),
the majority will not be used by TxDOT. Based on a recent discussion with
TxDOT staff, TxDOT is willing to work with the City to enhance the parcel with
landscaping. Under this arrangement, City staff is responsible for developing
landscaping plans and TxDOT will implement the plans using Green Ribbon
landscape funding. Staff will provide updates as plans to enhance this parcel
progress. Staff contact: Pritam Deshmukh, Traffic Engineering
L. Representatives from Guam Tour DME Facilities - On Friday, June 22, DME
hosted representatives from the island of Guam's electric utility, Guam Power
Authority (GPA). The tour was led by George Morrow, DME General Manager;
Jason Brown, DEC Plant Manager; and Chris Lutrick, DME Electrical Engineer.
Guam, a territory of the United States, faces challenges in providing electric
service to their 162,000 residents. This has led to making a commitment to
renewable energy while reducing dependence on fossil fuels. The current electric
infrastructure on Guam consists of 29 substations and 663 miles of transmission
and distribution lines. Guam's peak demand can reach 281.5 MW. Denton's peak
demand is 350 MW. Below are photos of Guam representatives on their tour of
the Denton Energy Center. Staff contact: George Morrow, DME
1
M. Roots and Shoots Training and Master Naturalist Volunteer Appreciation
Reception - Sustainability hosted a Roots and Shoots education training followed
by a volunteer appreciation reception for the Elm Fork Chapter Master Naturalists
at Clear Creek on Thursday, June 28. Master Naturalists have provided an
increased level of support for Denton ISD field trips, which has been a major help
to teachers and Clear Creek staff. Using a nationally recognized volunteer value
calculation provided by the Independent Sector, staff estimates the monetary value
of the 926 volunteer hours provided by Master Naturalists for spring field trips to
be $22,353.64. Below are photos from spring field trips and the volunteer
appreciation reception. Staff contact: Katherine Barnett, Sustainability
TRAM YOU
Y �
N. DTV YouTube Subscribers - DTV posts videos on the City's YouTube channel,
youtube.com/cityofdenton. This week, the total number of channel subscribers
reached 900. Subscribers are people who have chosen to follow the City's channel
and receive email notifications each time DTV uploads a new video. They are
critical to expanding the City's reach, as we share educational programming about
City departments and initiatives through the YouTube channel. On average, DTV
produces 4 new videos a week including: DTV Newsbreak, Preservation Denton,
Denton Developments, as well as other informational videos and public service
announcements. This includes all videos produced by DTV other than public
meetings. In the last 8 months, these videos have been viewed more than forty-
eight thousand times with more than ninety-two thousand minutes watched. Staff
contact: Billy Matthews, DTV
III. Community Events
IV. Attachments
A. Independence Day Operating Hours and Closings Press Release
B. DCTA Independence Day Closure Press Release
C. Firework Safety Press Release
V. Informal Staff Reports
A. 2018-079 Q2 Financial Report
B. 2018-080 Illegal Land Uses
C. 2018-081 Parallel Runway Project
VI. Council Information
A. Council Requests for Information
B. Draft Agenda(No draft agenda)
C. Council Calendar
D. Future Council Items
E. Street Construction Report
-40
o FOR IMMEDIATE RELEASE
DENTON Jessica Rogers • (940) 349-7531 • Jessica.Rogers@cityofdenton.com
Independence Day Operating Hours and Closings
City Facilities Closed Wednesday, July 4
DENTON, TX, June 27—City of Denton facilities will be closed on Wednesday, July 4 in
observance of the Independence Day federal holiday.
Libraries
All libraries will be close at 6 p.m. on Tuesday, July 3 and will remain closed on Wednesday,
July 4. All libraries will resume regular hours on Thursday, July 5.
Parks and Recreation
Denia Rec Center, MLK Jr. Rec Center,North Lakes Rec Center, Denton Civic Center, Denton
Senior Center, American Legion Hall, and Goldfield Tennis Center will be closed on
Wednesday, July 4.
Denton Senior Center will be closed to the public on Wednesday, July 4, but will be open from
10 a.m. to 1 p.m. for an event. Denton Civic Center will be open from 6 a.m. to noon for July 4
festivities.
Civic Center Pool, Denton Natatorium, and Water Works Park will be open with regular
operating hours on Wednesday, July 4. Admission to the Civic Center Pool will be $1 until 6
p.m.
Solid Waste and Recycling
There will be no curbside trash, recycling, or yard waste collection on Wednesday, July 4.
Collections normally scheduled for Wednesday, July 4 will occur on Thursday, July 5, and
collections for Thursday, July 5 will occur on Friday, July 6.
The City of Denton Landfill at ECO-W.E.R.C.S will be open 7 a.m. to noon on July 4. Check
www.dentonrecycles.com or your Residential Solid Waste &Recycling Service Calendar for
current schedule information.
Utilities
Customer Service will be closed July 4. To report a utility service emergency, call utilities
dispatch at(940) 349-7000.
OUR CORE VALUES
Integrity•Fiscal Responsibility•Transparency• Outstanding Customer Service
ADA/EOE/ADEA www.cityofdenton.com TDD(800)735-2989
Public Safety
Public safety personnel will be on duty during the holiday. The Denton Police Department can be
reached at their non-emergency number which is (940) 349-8181, and in case of an emergency
dial 911.
Airport
Airport administrative offices will be closed July 4. The air traffic control tower will be open
from 6 a.m. to 10 p.m. and the airfield will remain open 24 hours per day. Flight services will be
available from 6 a.m. to 10 p.m. throughout the Holiday.
On behalf of the City of Denton employees, have a safe and happy holiday.
Visit www.cityofdenton.com for more news and to stay updated.
2
DENTON COUNTY
DCTA TRANSPORTATION
AUTHORITY---qv 9�c --
No DCTA Service on Independence Day
In observation of the Independence Day holiday, we will not operate any bus or rail
service on Wednesday, July 4. Our customer service and administrative offices will also
be closed Regular operational hours will resume Thursday, July 5. Riders are encouraged
to plan accordingly.
Have a safe holidavi
• -D 940-243.0077
0000 (a
Your Future is Riding on
-40
o FOR IMMEDIATE RELEASE
DENTON Jason Eddington • (940) 349-8848 • Jason.Eddington@cityofdenton.com
Firework Safety
Denton Fire Department Reminds Residents Fireworks are Illegal
DENTON, TX, June 28,2018—The Denton Fire Department would like to remind residents
that it is illegal to use or possess fireworks in the city limits or to use fireworks within 5,000 feet
of the city limits. Offenders will be fined up to $2,000 and fireworks will be confiscated.
If you live where fireworks are permissible, here are some tips to keep you safe when buying,
using, or enjoying fireworks:
• Always buy from an established retail outlet.
• Never make your own fireworks, and be on the lookout for anyone experimenting with
homemade fireworks.
• Always read and follow the directions on the label.
• Light fireworks away from homes.
• Keep a bucket of water nearby.
• The person discharging the fireworks should wear eye protection-and never have any part
of their body over a firework.
• Be sure other people are out of range before lighting fireworks.
• Light only one firework at a time-and never re-light a "dud" firework.
• Never discharge fireworks in metal or glass containers-and do not carry them in your
pocket.
• Be sure to have a responsible adult in charge.
• Never allow children to play with fireworks.
To find out if fireworks are permissible in your area,visit www.dentonfire.com and click on
"Fire Prevention" for a fireworks boundary map.
Visit www.cityofdenton.com for more news and to stay updated.
OUR CORE VALUES
Integrity•Fiscal Responsibility•Transparency• Outstanding Customer Service
ADA/EOE/ADEA www.cityofdenton.com TDD(800)735-2989
Date: June 29,2018 Report No. 2018-079
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Quarterly Financial Report for the period ending March 31, 2018.
BACKGROUND:
Attached for your review is the Quarterly Financial Report for the period ending March 31,
2018. If you have any questions or need additional information,please let me know.
STAFF CONTACT:
Antonio Puente, Jr., Director of Finance
(940) 349-7283
Antonio.Puente@cityofdenton.com
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About This Quarterly Financial
Report
This report has been prepared by the City of Denton's Finance
Department. The Quarterly Financial Report is intended to provide
our users (internal and external) with information regarding the City's
financial position and economic activity. This report includes
information for the quarter ending March 31 , 2018.
This report is presented in six sections.
1 . The Executive Dashboard section contains a high level
summary of the major operating funds using graphic
illustrations and key economic indicators. Narrative disclosures
are also included to highlight any significant changes or
fluctuations.
2. The Financial Summary section reports the performance of the
major operating funds of the City. In addition, the report
provides an end of year projection and a comparison to the
budget for major revenue sources and expenditure items.
3. The Revenue & Economic Analysis section provides additional
analysis regarding key revenue sources and economic
indicators.
4. The Quarterly Investment Report provides a summary of the
City's investment portfolio, interest earnings and a brief market
outlook.
5. The Performance Report provides Key Performance Indicators
(KPIs) for each of the goals identified in the City's strategic
plan. In addition, the progress on Key Action Steps are
highlighted.
The Quarterly Financial Report is intended to provide our users with
timely and relevant information. Please provide us with any
comments or suggestions you may have. If you would like additional
information, feel free to contact me.
04-�
Antonio Puente, Jr
Director of Finance
215 East McKinney Street
Denton, TX 76201
940-349-8260
Section 1
City of Denton
Quarterly Financial Report
March 2018
Executive Dashboards
4
City of Denton, Texas
Y General Fund Executive Dashboard ���`0F �
DENTON FY 2017-18 FY 2017-18
ANNUAL ANNUAL FY 2017-18 Revenue & Expenses (in Millions)
DESCRIPTION BUDGET' PROJECTION VARIANCE ■YTD Revenue ■YTD Expenses
Beginning Fund Balance $90
as of 09/30/17 $ 28.17 $ 31.77 $80
RESOURCES:
Ad Valorem Taxes 45.07 44.81 -1% $70
Sales Tax 36.18 39.20 8%
Franchise Fees 4.98 4.98 0% $6o
Other Taxes 0.49 0.49 0% $50
Service Fees 8.34 7.95 -5%
Fines and Fees 3.96 3.71 -6% $40
Licenses and Permits 2.73 3.75 37%
Miscellaneous Revenue 1.92 2.04 6% $30
Transfers In 16.05 16.04 0%
Total Revenues 119.72 122.97 3% $20
Total Resources 147.89 154.74 $10
EXPENDITURES: $_ r41
Personal Service 84.51 84.04 -1% tip Jy� `� �' �� �ticb
Material and Supplies 3.07 3.07 0%
Maintenance and Repairs 2.94 2.94 0%
Insurance 1.21 1.21 0%
Miscellaneous 1.19 1.19 0% Sales Tax Monthly Average by Quarter
Operations 15.87 14.93 -6% $3.5
Transfers Out 13.00 13.00 0%
Fixed Assets 0.59 0.59 0% $3.0
Total Expenditures 122.38 120.97 -1%
Net Income (Loss) (2.66) 2.00 $2.5
Ending Fund Balance $ 25.51 $ 33.77 $2.0
Key $1.5
Trends
➢Sales Tax revenues are projected$3.02M higher than budget due to stronger collections in retail activities. $1.0
➢Licenses and Permits revenues are projected$1.02M higher than budget due to Building Permits.
➢Personal Service expenditures are projected$0.47M less than budget due to position savings. $0.5
➢Operations expenditures are projected$0.94M less than budget mainly due to Chapter 380 agreements.
➢Budget amended on January 9,2018 for$2.695M to fund one-time capital projects as a result of better than $_
anticipated results for FY 2016-17. 3 3 b b h h 0 b
➢Does not include budget amendment approved May 8,2018 for$2.19M to fund the Vela Soccer Complex project. Oti Oy Oy Oy Oy pti pti pti pti pti pti
'Annual adopted budget as amended or modified.Beginning Fund Balance represents the amount which was Note: All figures resented are in millions of dollars.
estimated in the FY 2017-18 budget process. g p
5
- City of Denton, Texas
JOF Electric Fund Executive Dashboard
DENT V N FY 2017-18 FY 2017-18
ANNUAL ANNUAL FY 2017-18
DESCRIPTION BUDGET' PROJECTIONS VARIANCE $100 Revenue&Expenses(in Millions)
Beginning Working Capital $90
and Reserves as of 9/30/17 $ 72.51 $ 76.94 $80
RES O URC ES: $70
Operating Revenues 173.23 182.60 5% $60
Non-operating Revenues 0.45 0.57 26% $50
$40
Total Revenues 173.68 183.17 5% $30
Total Resources 246.19 260.11 $20
$10 €
EXPENDITURES: $0 '
Pu rch as e d Powe r 84.55 82.14 -3% Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18
Operation and Maintenance 47.24 66.32 40%
Non-Operating Expenditures 49.11 48.48 -1% ■YTD Revenue ■YTD Expense
Total Expenditures 180.90 196.94 9%
2013-2018 Historical Quarterly GWH Sales
Net Income (Loss) (7.22) (13.77) 500
Ending Working Capital 450
and Reserves $ 65.29 $ 63.17 400
350
TrendsKey 300
➢Operating Revenues are projected to be 5%higher than budgeted due to TCOS Revenue which is 250
expected to be$14.7 million more as a result of the latest DME Transmission filing. 200
➢Operations and Maintenance expenditures are estimated to be 40%or$19.0 Million higher than 150
budgeted due to a$24 million budget amendment to cash fund capital expenditures in FY 2017-18.
➢As of 9/30/17,working capital was$14.91 million,and the rate stabilization reserve was$62.03 million. 100
Additionally, Electric had an over collected Energy Cost Adjustment(ECA)of$7.4 million. 50
0
IQ 13 3Q 13 1Q 14 3Q 14 IQ 16 3Q 16 1Q16 3Q16 1Q17 3Q17 1Q18
'Annual adopted budget as amended or modified.Beginning Fund Balance represents the amount which was Note: All figures presented are in millions of dollars.
estimated in the FY 2017-18 budget process.
6
-- _ - City of Denton, Texas
CI I'
( Water Fund Executive Dashboard -
DENTON FY2017-18 FY2017-18
ANNUAL ANNUAL FY2017-18 Revenue & Expenses (in Millions)
$30
DESCRIPTION BUDGET 1 PROJECTION VARIANCE
Beginning Working Capital $zs
and Reserves as of09/30/172 $ 20.85 $ 23.34 $20
RESOURCES:
Water Sales 37.12 36.88 -1% $15
Other Water Revenues 0.98 0.97 -1%
Transfers In 5.95 5.81 -2% $10
Impact Fee Revenue 3.76 3.76 0% $5
Total Revenues 47.81 47.42 -1%
Total Resources 68.66 70.76 $
Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18
EXPENDITURES
❑YTD Revenue ❑YTD Expenses
Personal Service 11.41 10.96 -4%
Operations,Services 11.18 10.77 -4% 2013-2018 Historical Quarterly Gallons Sold(in Millions)
Capital Outlay 9.11 9.17 1%
Debt Service 12.64 12.64 0% 2,500
Transfers Out 3.47 3.49 1%
Total Expenditures 47.81 47.03 -2% 2,000
Net Income(Loss) - 0.39
En(ling Working Capital 1,500 A A A
and Reserves $ 20.85 $ 23.73
TrendsV I V V
Key 1,000
➢Personal Service expenses are projected to be below budget due to position vacancies. Soo
➢Operations,Services are projected to be below budget due to reduced materials&
supplies and outside services expenses.
0
'Annual adopted budget as amended or modified.Beginning Fund Balance represents the amount which was estimated in the 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
FY 2017-18 budget process. 16 17 17 18
2The Beginning Working Capital balance excludes$6.71VI of Impact Fee Reserves and$0.25 million for Development Plan Line
Reserves. Note: All figures presented are in millions of dollars.
City of Denton, Texas
<OF Wastewater Fund Executive Dashboard �
DENTONFY2017-18 FY2017-18 -
ANNUAL ANNUAL FY2017-18
DESCRIPTION BUDGET 1 PROJECTION VARIANCE
Beginning Working Capital Revenue & Expenses(in Millions)
and Reserves as of09/30/172 $18$ 15.93 $ 17.86 $
RESOURCES: $16
Wastewater Fees 24.14 24.23 0% $14
Other Wastewater Revenue 1.76 1.78 1% $12
Drainage Fees 4.67 4.65 0% $10
Transfer In 0.66 0.66 0% $8
Impact Fee Revenue 2.00 2.00 0% $6
$4
Total Revenues 33.23 33.32 0% $2
Total Resources 49.16 51.18 $-
Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18
EXPENDITURES:
Personal Service 8.10 7.62 -6% ■YTD Revenue ■YTD Expenses
Operations,Services 8.59 8.24 -4%
Capital Outlay 6.87 7.10 3% 2013-2018 Historical Quarterly Gallons Billed(in Millions)
Debt Service 7.17 7.17 0% 1,400
Transfer Out 3.29 3.30 0% 1,200
Total Expenditures 34.02 33.43 -2%
1,000
Net Income(Loss) (0.79) (0.11)
800
Ending Working Capital
and Reserves $ 15.14 $ 17.75 600
400
0 Key Trends 200
➢Personal Service expenses are projected to be below budget due to position vacancies. o
➢Operations, Services are projected to be below budget due to reduced materials& 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q
16 17 17 18
supplies, outside services, and purchased power expenses.
'Annual adopted budget as amended or modified.Beginning Fund Balance represents the amount which was estimated in
the FY 2017-18 budget process.
2The Beginning Working Capital balance excludes$2.2 million of Impact Fee Reserves,$1.0 million for Drainage Reserves,
and$0.33 million for Development Plan Line Reserves. Note: All figures presented are In millions of dollars.
8
City of Denton, Texas s
OFF ADrainage Operations Executive Dashboard
DENTON
FY2017-18 F'Y2017-18
ANNUAL ANNUAL FY2017-18
DESCRIPTION BUDGET PROJECTION VARIANCE Revenue & Expenses (in Millions)
REVENUES:
Residential Drainage Fees $ 1.78 $ 1.79 1% $3.0
Nonresidential Drainage Fees 2.90 2.86 -1%
Wastewater Resources 0.04 0.10 150% $2.5
General Fund Transfer 0.42 0.42 0%
Total Revenues 5.14 5.17 1% $2.0
EXPENDITURES:
Personal Service 1.78 1.54 -13% $1.5 -
Operations,Services 0.80 0.77 4%
Capital Outlay 1.28 1.56 22% $1.0
Debt Service 0.68 0.68 0%
Transfer Out 0.60 0.62 3% $0.5
Total Expenditures 5.14 5.17 1% I
Net Income(Loss) $ - $ _ $-
Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18
❑YTD Revenue ■YTD Expenses
TrendsKey
➢Personal Services are projected to be lower than budget due to position
vacancies.
➢Capital Outlay is projected to be higher than budget due to an increase in
projects activity.
Note: All figures presented are in millions of dollars.
9
lUI) City of Denton, Texas
FY i
� Solid Waste Fund Executive Dashboard - -
DENTONFY 2017-18 FY 2017-18
ANNUAL ANNUAL FY 2017-18 7 Residential Curbside Collection Tonnage
,000
DESCRIPTION BUDGET' PROJECTION VARIANCE
6,000
Beginning Working Capital
and Reserves as of 09/30/171 $ 8.15 $ 9.47 5,000 411 10 39
4,000 �
RESOURCES: 33 10 d
Collection &Disposal 35.86 32.16 -10% 3,000 °
Recycling 0.87 0.78 -10% 2,000
Other Revenue 1.29 0.70 -46%
Total Revenues 38.02 33.64 -12% 1,000
Total Resources 46.17 43.11 0
EXPENDITURES: Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2
Personal Service 11.68 10.94 -6%
Operations, Services 11.51 10.42 -9% ■Refuse Tonnage Recycling Tonnages
Capital Outlay 2.67 0.35 -87%
Debt Service 9.70 9.54 -2% Commercial Refuse& Recycling(Front&Side Load)
Transfer Out 2.97 2.97 0% Cubic Yards Serviced per Week
Total Expenditures 38.53 34.22 -11% 30,000 -
Net Income (Loss) (0.51) (0.58) 25,000
Ending Working Capital 20,000
and Reserves $ 7.64 $ 8.89 15,000
TrendsKey
10,000 y�o yyd, yy�o 1411
5,000
➢Collection and Disposal revenue,as well as Personnel and Operations Services expense will be less 0
than budget due to discontinued mining operations.
➢Landfill Closure costs will be greater than budget due to a recent study which projected increased
Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2
future expense.
➢Capital Outlay is expected to be less than budget due to reduced transfers to Capital projects. ■Commercial Refuse ■Commercial Recycling
➢Transfers out are expected to increase due to land transfers to DME.
'Annual adopted budget as amended or modified.Beginning Fund Balance represents the amount which was estimated in the
FY 2017-18 budget process.
2The Beginning Working Capital and Reserves excludes$8.65 million of Landfill Closure/Post Closure reserves. Note: All figures presented are In millions Of dollars.
10
City of Denton, Texas
CITY
OF I Airport Fund Executive Dashboard •
DENTON Y 2017-18
ANNUAL ANNUAL FY 2017-18
DESCRIPTION BUDGET' PROJECTION VARIANCE
Beginning Working Capital GAS WELL REVENUE
and Reserves as of 09/30/17 $ 2.47 $ 2.75
(in millions of dollars by fiscal year)
RESOURCES:
Airport Ground Leases 0.71 0.68 -4% $5.0
FBO Commissions 0.20 0.26 30%
N Hscellaneous 0.09 0.10 11% $4.0
Total Operating Revenues 1.00 1.04 4%
EXPENDITURES: $3.0
Personal Service 0.53 0.45 -15%
Operations, Services 0.41 0.40 -2%
Transfer Out 0.55 0.55 0% $2.0
Total Operating Expenditures 1.49 1.40 -6%
Net Operating Income (Loss) (0.49) (0.36) $1.0
NO N-O PERATING REVENUES:
Investment Income 0.03 0.06 100% $0.0
Gas Well Royalties 0.47 0.44 -6% 2016 2017 2018
Total Non-Operating Revenues 0.50 0.50 0%
NO N-O PERATING EXPENDITURES
Transfer Out- Capital 0.22 0.22 00/„ AIRPORT OPERATIONS BY QUARTER
Total Non-Operating Expenditures 0.22 0.22 0% (takeoff or landing)
Net Non-Operating Income (Loss) 0.28 0.28 60,000
Net Income (Loss) (0.21) (0.08)
Ending Working Capital and Reserves $ 2.26 $ 2.67 50,000
TrendsKey 40,000
➢FBO Commissions include a one-time collection of$55,000 not originally included in budget.
➢Personnel Service Expense is projected to be less than budget due to vacant positions. 30,000
➢Gas Well Royalty revenue is expected to exceed budget due to recently reworked gas wells.
20,000
�°� tiQ as tia as tia as tia as tia as tia
'Annual adopted budget as amended or modified.Beginning Working Capital and Reserves represents the amount Note:All financial amounts presented are in millions of dollars.
which was estimated in the FY 2017-18 budget process.
11
CITY City of Denton, Texas
OF alfo�
rovement Fund Executive Dashboard
DENTONStreet Imp
FY 2017-18 FY 2017-18
ANNUAL ANNUAL FY 2017-18 Revenue&Expenses(in Millions)
DESCRIPTION BUDGET' PROJECTION VARIANCE $80
Beginning Working Capital
and Reserves as of 09/30/2017 $ 1.25 $ 1.16 $60
RESOURCES:
Franchise Fees 12.47 12.47 0%
Street Cuts 0.36 0.36 0% $4.0 -
Investment Income 0.01 0.01 0%
Transfers In 1.12 1.12 0%
Total Revenues 13.96 13.96 0% $z.o
Total Resources 15.21 15.12
EXPENDITURES: Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18
Personal Service 3.44 3.44 0% .YTDRevenue .YTDFxpenses
Materials & Supplies 0.09 0.09 0% Tons ofAshaltUid(in Thousands)
Maintenance &Repairs 7.79 7.79 0% 12 p
Operations, Services 0.89 0.89 0%
Transfer Out 1.75 1.75 0% 9
Total Expenditures 13.96 13.96 0%
6
Net Income (Loss) - -
3
Ending Fund Balance $ 1.25 $ 1.16
0
Qtrl Qtr2
■FY16-17 ■FY17-18
Key Trends Lane Miles Surface Treatment
24
➢At this point in the fiscal year, revenues and expenditures are projected to 18
meet budgeted levels. 12
➢Surface treatments for the year are scheduled to begin in the 3rd quarter. 6
0
Qtr 1 Qtr 2
■FY 16-17 ■FY 17-18
'Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process. Note: All figures presented are in millions of dollars.
12
City of Denton, Texas a
t lI1
Grants Dashboard
DENTON
FY 2017-18 FY 2017-18 FY 2017-18 Awards & Expenses (in Millions)
GRANT ANNUAL FY 2017-18 $120.0
DFS C RIPTIO N AMOUNT PROJECTION VARIANCE $100.0
2017-18 Budget $80.0
Comm Development' $ 2.94 $ 1.05 -64% $60.0
Public Safety 0.80 0.80 0%
Transportation' 95.14 26.98 -72% $40.0
Other 0.03 0.03 0% $20.0
Total Budget 98.91 28.86 -71%
S2 N
> m w z w
w
0v d �
New Awards
d
Comm Development 0.60 0.50 -17%
Public Safety 0.24 0.24 0% ■Awards ■Expenses
Transportation' 3.39 1.48 -56% FY 2017-18 Grants Awarded
Parks & Recreation 0.21 0.21 0%
Total New Awards 4.44 2.43 -45% PARKS&REC COMM DEV PUBLIC
OTHER 0.21% 3.43% SAFETY
0.03% 1.00%
Totals $ 103.35 $ 31.29 -70%
Key Trends
The following grants have been received in FY 2017-18:
➢Federal Equitable Sharing:$13,067
➢Chapter 59 Asset Forfeitures:$18,560 ➢2017 SHSP Night Vision:$14,200
➢U.S.Marshals Violent Offenders Task Force:$10,136 ➢2017 UASI Command Data: $30,000
➢PD-Law Enforcement Officer Standard& ➢Body Armor Grant Program:$91,692
Education:$11,618 ➢2018 SHSP SWAT Equipment Enhancement:$24,000
➢Sexual Assault Examiners Reimbursement: ➢Transportation Projects: $3,387,898 TRANS
$22,139 95.34%
➢2017 SHSP Ballistic Blankets: $3,000 ➢NW Trail Extension Grant:$212,273
This grant amount will be spent over several years and the fiscal year 2017-18 projections are estimated
expenditures for one year. Remaining grant amounts will be spent in future fiscal year. Note: All figures presented are in millions of dollars.
13
Section 2
City of Denton
Quarterly Financial Report
March 2018
This report is designed for internal use and does not include all the
funds and accounts included in the City of Denton's operations. The
information provided is unaudited; for a complete audited report,
please refer to the City of Denton Comprehensive Annual Financial
Report, available through the City's Finance Department, City
Secretary's Office, or Denton Public Libraries.
FINANCIAL SUMMARY
14
City of Denton
General Fund
Schedule of Revenues-Budget vs Projection(Unaudited)
For the Period Ended March 31,2018
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
REVENUE DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION
Current Year-Ad Valorem $ 42,702,467 $ 43,306,066 $ 43,883,129 $ 44,460,191 $ 44,460,191 0%
Delinquent-Ad Valorem 158,806 144,495 47,605 288,991 42,960 -85%
Miscellaneous Penalties&Fees 207,609 176,806 186,370 315,384 3059866 -3%
Ad Valorem Taxes 43,068,882 43,627,367 449117,104 45,064,566 44,809,017 -1%
Sales Tax 17,884,054 18,097,927 18,918,854 369181,384 39,202,935 8%
Franchise-Gas Utilities 85,724 101,093 102,198 342,738 342,738 0%
Franchise-Private Electric Utilities 30,713 15,517 26,734 122,751 122,751 0%
Franchise-Cable 126,858 118,930 104,825 480,873 480,873 0%
Franchise-Telecom 133,940 57,863 77,690 233,956 233,956 0%
Franchise-Denton Municipal Utilities 1,833,939 1,683,651 1,695,185 39804,531 3,804,531 0%
Franchise Fees 2,2119174 11977,054 2,006,632 4,984,849 4,984,849 0%
Other Taxes 157,410 122,850 31192 491,400 491,400 0%
Ambulance Service Fees 1,451,644 1,322,151 1,255,064 3,726,629 3,380,800 -9%
Fire Department Fees 66,982 97,513 109,471 195,027 196,000 0%
Building Inspections Fees 227,348 258,199 302,028 560,145 528,067 -6%
Park Department Fees 319,508 405,225 322,876 2,406,263 2,295,651 -5%
Planning Department Fees 378,450 443,251 474,833 886,355 991,887 12%
Reprographics Fees 176,691 185,153 168,386 370,160 370,160 0%
Miscellaneous Service Fees 47,296 99,035 67,584 198,043 183,015 -8%
Service Fees 2,667,919 2,810,527 2,700,242 8,342,622 7,945,580 -5%
Denton Municipal Fines 794,879 824,520 709,033 1,649,042 1,482,000 -10%
Parking Fines 146,455 123,600 118,850 247,200 260,000 5%
Miscellaneous Fines and Fees 461,934 513,973 424,687 1,077,838 889,000 -18%
Court Administrative and Service Fees 462,719 461,500 511,633 988,000 1,080,000 9%
Fines and Fees 1,865,987 1,923,593 1,764,203 3,962,080 3,711,000 -6%
Demolition Permits 3,990 5,041 2,850 10,082 7,670 -24%
Building Permits 1,034,677 1,160,578 1,739,727 2,571,085 3,637,834 41%
Certificate of Occupancy 40,185 47,244 34,810 94,488 72,829 -23%
Miscellaneous Licenses and Permits 16,695 27,915 4,077 55,822 32,278 -42%
Licenses and Permits 1,095,547 1,240,778 1,781,464 2,731,477 3,750,611 37%
Investment Income 177,039 265,000 271,984 530,000 460,600 -13%
Miscellaneous Revenues 314,453 466,815 314,706 1,383,388 1,576,147 14%
Miscellaneous Resources 491,492 731,815 586,690 1,913,388 2,036,747 6%
ROI-Denton Municipal Utilities 3,370,592 3,778,153 3,566,620 7,997,918 7,987,758 0%
Transfers 4,034,480 4,025,789 4,018,449 8,050,688 8,050,688 0%
Transfers 7,405,072 7,803,942 7,585,069 16,048,606 16,038,446 0%
Total General Fund Revenues $ 76,847,537 $ 78,335,853 $ 79,463,450 $ 119,720,372 $ 122,970,585 3%
15
City of Denton
General Fund
Schedule of Expenditures-Budget vs Projection(Unaudited)
For the Period Ended March 31,2018
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION
NEIGHBORHOOD SERVICES
Building Inspections $ 1,376,128 $ 1,538,559 $ 1,309,243 $ 3,071,315 $ 3,071,315 0%
Community Improvement Services 784,609 782,463 628,680 1,564,294 1,564,294 0%
Libraries 2,884,505 3,033,267 29877,388 6,0649112 6,064,112 0%
Parks and Recreation 5,424,492 7,275,990 5,889,161 13,971,655 139971,655 0%
Planning 1,455,488 19706,148 19300,199 3,4159509 3,415,509 0%
Gas Well Review 95,515 196,593 207,828 393,026 393,026 0%
Social Services 276,566 314,995 291,238 6299738 629,738 0%
12,2979303 14,848,015 12,503,737 29,109,649 299109,649 0%
PUBLIC SAFETY
Animal Services 606,320 779,907 740,526 1,5599205 1,559,205 0%
Fire 13,0019403 14,361,528 13,964,776 28,711,580 289876,353 1%
Municipal Court 644,106 691,128 611,621 1,3819702 1,381,702 0%
Municipal Judge 183,318 218,145 192,409 436,124 436,124 0%
Police 14,147,097 169155,348 14,933,047 32,2979806 32,297,806 0%
28,582,244 32,206,056 30,442,379 64,386,417 649551,190 0%
TRANSPORTATION
Traffic Operations 812,302 39056,385 29891,446 3,9929028 3,992,028 0%
Transportation Operations 226,822 423,495 409,302 846,658 846,658 0%
Street Lighting 390,199 377,651 384,763 755,000 755,000 0%
1,429,323 3,8579531 3,685,511 5,593,686 59593,686 0%
ADMINISTRATIVE&COMMUNITY SERVICES
Cable Television 142,810 161,691 149,064 323,271 323,271 0%
City Manager's Office 1,276,685 1,4159207 1,4909688 2,829,303 29829,303 0%
Economic Development 1,253,704 2,229,929 1,200,879 4,458,071 39353,387 -25%
Facilities Management 1,797,291 2,1639181 1,9199078 4,324,642 49324,642 0%
Finance 1,376,725 1,538,716 1,431,745 3,074,420 39074,420 0%
Human Resources 8049766 8789285 823,401 1,755,865 19755,865 0%
Internal Audit 31,226 131,744 204,754 263,381 263,381 0%
Legal Administration 1,053,692 1,227,383 959,718 2,453,772 29453,772 0%
Public Communications Office 208,501 247,605 198,211 495,021 495,021 0%
Reprographics 203,476 216,908 198,890 433,646 433,646 0%
Non-Departmental 2,030,391 1,440,599 2,296,092 2,881,847 2,407,704 -16%
10,1799267 11,651,248 10,872,520 23,293,239 219714,412 -7%
TOTAL EXPENDITURES $ 52,4889137 $ 62,562,850 $ 57,504,147 $ 122,382,991 $ 1209968,937 -1'y
16
City of Denton
Electric Fund
Schedule of Revenues and Expenditures-Budget vs Projections(Unaudited)
For the Period Ended March 31,2018
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION
Beginning Working Capital
and Reserves as of 9/30/17 $ 72,510,304 $ 76,942,756
REVENUES:
Operating Revenues $ 76,139,210 $ 77,336,545 $ 81,400,580 173,229,784 182,602,516 5%
Non-operating Revenues 311,910 189,147 501,035 450,000 565,000 26%
Total Revenues 76,451,120 77,525,692 81,901,615 173,679,784 183,167,516 5%
EXPENDITURES:
Purchased Power 43,143,626 43,115,114 40,015,513 84,547,684 82,140,290 -3%
Operation and Maintenance 16,841,783 23,461,141 17,137,370 47,238,356 66,319,292 40%
Return on Investment 2,391,566 2,602,627 2,554,860 5,767,985 5,767,985 0%
Franchise Fee 3,410,896 3,713,843 3,645,018 8,239,978 8,239,978 0%
Non-Operating Expenditures 23,036,843 27,873,738 27,531,534 35,109,750 34,465,369 -2%
Total Expenditures 88,824,714 100,766,463 90,884,295 180,903,753 196,932,914 9%
Net Income(Loss) $ (12,373,594) $ (23,240,771) $ (8,982,680) (7,223,969) (13,765,398)
Ending Working Capital and Reserves $ 65,286,335 $ 63,177,358
Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process.
17
City of Denton
Water Fund
Schedule of Revenues and Expenditures-Budget vs Projections(Unaudited)
For the Period Ended March 31,2018
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION
Beginning Working Capital
and Reserves as of 09/30/171 $ 20,851,375 $ 23,340,901
REVENUES:
Water Sales Residential $ 7,413,348 $ 8,095,956 $ 7,984,325 19,550,225 18,585,215 -5%
Water Sales Commercial 7,241,567 7,753,017 7,576,402 17,016,173 16,575,408 -3%
Water for Resale 276,169 286,640 1,947,832 553,406 1,719,330 211%
Other Water 626,953 411,837 672,413 811,832 800,099 -1%
Transfers In 3,199,788 2,973,642 2,973,641 5,947,281 5,808,155 -2%
Investment Income 90,114 87,500 124,691 175,000 174,000 -1%
Impact Fee Revenue 2,000,800 1,877,702 1,878,454 3,755,404 3,755,404 0%
Total Revenues 20,848,739 21,486,294 23,157,758 47,809,321 47,417,611 -1%
EXPENDITURES:
Personal Service 4,661,709 5,501,243 4,814,427 11,408,173 10,963,036 -4%
Purchased Power 576,386 782,838 589,780 1,600,000 1,561,851 -2%
Materials and Supplies 597,823 751,049 632,358 1,721,614 1,686,976 -2%
Maintenance and Repairs 608,996 561,679 554,003 1,552,572 1,373,808 -12%
Insurance 119,474 111,241 111,241 222,481 219,101 -2%
Miscellaneous 167,943 183,297 128,570 342,778 338,969 -1%
Operations,Services 1,041,210 1,339,908 953,794 2,514,509 2,413,496 -4%
Capital Outlay 2,357,824 3,161,567 2,661,685 9,111,143 9,167,403 1%
Return on Investment 536,980 606,926 571,601 1,327,607 1,316,982 -1%
Franchise Fee 767,115 867,037 816,573 1,896,582 1,859,180 -2%
Debt Service 9,513,008 6,319,047 11,130,419 12,638,094 12,638,094 0%
Transfers Out 1,805,876 1,736,885 1,741,317 3,473,768 3,486,905 0%
Total Expenditures 22,754,344 21,922,717 24,706,835 47,809,321 47,025,801 -2%
Net Income(Loss) $ (1,905,605) $ (436,423) $ (1,549,077) - 391,810
Ending Working Capital
and Reserves $ 20,851,375 $ 23,732,711
1 The Beginning Working Capital balance excludes$6,650,271 of Impact Fee Reserves and$250,000 for Development Plan Line Reserves.
2 Annual adopted budget as amended or modified.Beginning Fund Balance represents the amount which was estimated in the FY 2017-18
budget process.
18
City of Denton
Wastewater Fund
Schedule of Revenues and Expenditures-Budget vs Projections(Unaudited)
For the Period Ended March 31,2018
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET' PROJECTION PROJECTION
Beginning Worldng Capital
and Reserves as of 09/30/17' $ 15,926,057 $ 17,861,887
REVENUES:
Residential Fees $ 5,863,776 $ 5,594,006 $ 5,982,589 11,103,223 11,030,267 -1%
Commercial Fees 6,018,920 5,975,316 5,958,034 12,306,031 12,450,498 1%
Effluent Irrigation Fees 46,309 23,423 46,407 61,530 67,076 9%
Wholesale Fees 312,902 310,940 288,217 667,670 686,659 3%
Other Wastewater Fees 1,036,595 740,080 624,596 1,642,282 1,659,542 1%
Transfer In 600,409 329,515 447,015 659,030 659,030 0%
Investment Income 64,561 58,750 102,650 117,500 117,500 0%
Impact Fee Reserves 1,760,704 1,000,000 1,000,400 2,000,000 2,000,000 0%
Total Revenues 18,010,876 16,349,135 16,823,856 33,230,472 33,320,334 0%
EXPENDITURES:
Personal Service 3,535,590 3,828,622 3,635,806 8,103,746 7,622,072 -6%
Purchased Power 451,008 645,680 516,459 1,221,000 1,020,000 -16%
Materials and Supplies 482,857 436,942 481,904 1,260,309 1,235,111 -2%
Maintenance and Repairs 562,172 657,415 544,326 1,464,909 1,433,129 -2%
Insurance 93,838 90,246 90,246 180,492 180,492 0%
Miscellaneous 35,326 42,721 38,872 54,631 72,150 32%
Operations,Services 922,167 1,025,142 943,693 2,212,647 2,105,661 -5%
Capital Outlay 5,358,206 3,435,891 1,788,993 6,871,781 7,104,146 3%
Return on Investment 442,046 443,495 440,159 902,326 902,791 0%
Franchise Fee 631,494 633,564 628,799 1,289,037 1,289,702 0%
Debt Service 5,978,759 6,428,552 6,428,552 7,169,780 7,167,280 0%
Transfers Out 1,702,311 1,646,194 1,649,715 3,292,383 3,297,565 0%
Total Expenditures 20,195,774 19,314,464 17,187,524 34,023,041 33,430,099 -2%
Net Income(Loss) $ (2,184,898) $ (2,965,329) $ (363,668) (792,569) (109,765)
Ending Working Capital
and Reserves $ 15,133,488 $ 17,752,122
The Beginning Worldng Capital balance excludes$2,194,686 of Impact Fee Reserves,$1,000,000 for Drainage Reserves,
and$335,000 for Development Plan Line Reserves.
'Annual adopted budget as amended or modified.Beginning Fund Balance represents the amount which was estimated
in the FY 2017-18 budget process.
19
City of Denton
Drainage Operations
Schedule of Revenues and Expenditures-Budget vs Projections(Unaudited)
For the Period Ended March 31,2018
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION
REVENUES:
Residential Drainage Fees $ 876,935 $ 884,205 $ 900,012 $ 1,773,100 $ 1,788,253 1%
Nonresidential Drainage Fees 1,429,765 1,432,855 1,473,936 2,900,106 2,861,509 -1%
Wastewater Resources - 21,900 - 43,800 100,000 128%
General Fund Transfer 250,668 212,015 212,015 424,030 424,030 0%
Total Revenues 2,557,368 2,550,975 2,585,963 5,141,036 5,173,792 1%
EXPENDITURES:
Personal Service 706,934 828,401 767,309 1,773,782 1,537,953 -13%
Materials and Supplies 14,948 38,492 20,780 82,425 82,120 0%
Maintenance and Repairs 37,172 61,173 35,477 131,300 122,200 -7%
Insurance 9,913 12,731 12,730 25,461 25,461 0%
Miscellaneous 2,721 9,408 6,483 16,000 16,000 0%
Operations,Services 144,576 232,452 151,156 549,531 531,509 -3%
Capital Outlay 726,059 439,377 663,475 1,281,581 1,555,786 21%
Debt Service 597,449 627,356 627,356 677,790 677,790 0%
Transfer Out 317,596 301,585 301,197 603,166 624,973 4%
Total Expenditures 2,557,368 2,550,975 2,585,963 5,141,036 5,173,792 1%
Net Income(Loss) $ - $ - $ - $ - $ -
20
City of Denton
Solid Waste Fund
Schedule of Revenues and Expenditures-Budget vs Projection(Unaudited)
For the Period Ended March 31,2018
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION
Beginning Working Capital
and Reserves as of 09/30/171 $ 8,151,875 $ 9,468,891
REVENUES:
Garbage Fees-Residential $ 5,561,630 $ 5,621,822 $ 5,643,831 11,341,462 10,731,480 -5%
Garbage Fees-Commercial 7,262,095 7,872,753 7,588,300 16,127,040 15,383,659 -5%
Landfill Fees 3,030,772 3,259,297 2,709,821 6,836,245 5,912,370 -14%
Materials Processing 58,557 774,860 66,986 1,549,100 133,972 -91%
Recycling and Public Outreach 435,323 437,562 428,064 874,776 778,450 -11%
Site Operations 110,858 415,592 102,543 830,851 206,729 -75%
Other Revenue 273,405 221,863 401,070 443,550 444,749 0%
Investment Income 8,974 7,503 26,164 15,000 53,000 253%
Total Revenues 16,741,614 18,611,252 16,966,779 38,018,024 33,644,409 -12%
EXPENDITURES:
Personal Service 5,036,312 5,840,016 5,018,597 11,683,418 10,936,005 -6%
Materials and Supplies 179,778 261,730 98,909 523,955 403,943 -23%
Maintenance and Repairs 234,428 339,843 129,200 671,275 527,700 -21%
Insurance 112,251 116,858 116,815 233,631 233,631 0%
Miscellaneous 39,366 38,171 44,766 89,900 67,859 -25%
Operations,Services 2,969,944 3,913,812 2,483,297 7,710,268 6,375,950 -17%
Capital Outlay 2,306,692 1,285,310 156,487 2,669,510 350,000 -87%
Debt Service 7,317,867 8,686,037 8,686,037 9,700,467 9,542,116 -2%
Franchise Fee 821,421 950,834 847,501 1,900,902 1,679,143 -12%
Landfill Closure 132,824 189,454 189,378 378,757 1,143,059 202%
Transfer Out 1,475,159 1,483,603 1,590,783 2,966,003 2,966,003 0%
Total Expenditures 20,626,042 23,105,668 19,361,770 38,528,086 34,225,409 -11%
Net Income(Loss) $ (3,884,428) $ (4,494,416) $ (2,394,991) (510,062) (581,000)
Ending Working Capital
and Reserves $ 7,641,813 $ 8,887,891
1 The Beginning Working Capital Reserve excludes$8,654,114 Landfill Closure/Post Closure Reserves.
2 Annual adopted budget as amended or modified.Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process.
21
City of Denton
Airport Fund
Schedule of Revenues and Expenditures-Budget vs Projection(Unaudited)
For the Period Ended March 31,2018
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGETt PROJECTION PROJECTION
Beginning Working Capital
and Reserves as of 09/30/17 $2,471,421 $ 2,748,875
OPERATING REVENUES:
Airport Ground Leases $ 276,911 $ 356,720 $ 398,075 713,154 675,255 -5%
FBO Commissions 76,730 99,944 142,927 199,808 260,000 30%
Miscellaneous 35,230 46,327 39,069 92,619 106,800 15%
Total Operating Revenues 388,871 502,991 580,071 1,005,581 1,042,055 4%
OPERATING EXPENDITURES:
Personal Service 288,800 265,341 224,922 530,482 447,533 -16%
Materials and Supplies 11,310 23,360 5,745 46,700 44,330 -5%
Maintenance and Repairs 34,297 52,616 16,132 105,193 105,193 0%
Insurance 10,802 10,916 10,911 21,823 21,823 0%
Miscellaneous 386 600 349 1,200 800 -33%
Operations 59,977 119,127 57,785 238,160 232,912 -2%
Transfers Out-Operating 235,111 273,643 259,920 547,070 547,070 0%
Total Operating Expenses 640,683 745,603 575,764 1,490,628 1,399,661 -6%
Operating(Loss) (251,812) (242,612) 4,307 (485,047) (357,606)
NON-OPERATING REVENUES:
Investment Income 17,762 12,505 28,689 25,000 57,378 130%
Gas Well Royalties 181,002 237,159 94,671 474,130 444,800 -6%
Total Non-Operating Revenues 198,764 249,664 123,360 499,130 502,178 1%
NON-OPERATING EXPENDITURES:
Transfers Out-Capital - 112,545 225,000 225,000 225,000 0%
Total Non-Operating Expenses - 112,545 225,000 225,000 225,000 0%
Non-Operating Income(Loss) 198,764 137,119 (101,640) 274,130 277,178
Net Income(Loss) $ (53,048) $ (105,493) $ (97,333) (210,917) (80,428)
Ending Working Capital $ 2,260,504 $ 2,668,447
Annual adopted budget as amended or modified.Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2017-18 budget process.
22
City of Denton
Street Improvement Fund
Schedule of Expenditures-Budget vs Projection(Unaudited)
For the Period Ended March 31,2018
PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGETVS
DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET' PROTECTION PROJECTION
Beginning Working Capital
and reserves as of 9/30/2017 $ 1,253,048 $ 1,158,667
REVENUES:
Franchise Fees $ 4,578,021 $ 6,240,525 $ 5,022,192 12,476,060 12,476,060 0%
Street Cuts 122,505 178,572 129,474 357,000 357,000 0%
Investment Income 8,909 5,002 440 10,000 10,000 0%
Transfers In 528,687 559,292 517,291 1,118,135 1,118,135 0%
Miscellaneous 41 - 1,505 - -
Total Revenues 5,238,163 6,983,391 5,670,902 13,961,195 13,961,195 0%
EXPENDITURES:
Personal Service 1,384,064 1,720,676 1,640,472 3,439,984 3,439,984 0%
Materials and Supplies 72,831 43,587 48,022 87,150 87,150 0%
Maintenance and Repairs 2,949,714 3,166,865 3,190,382 7,722,677 7,722,677 0%
Insurance 21,511 25,856 25,847 51,693 51,693 0%
Miscellaneous 3,609 2,501 4,292 5,000 5,000 0%
Operations,Services 390,400 480,288 315,617 830,302 830,302 0%
Transfer Out 624,294 1,543,602 1,545,281 1,824,389 1,824,389 0%
Total Expenditures 5,446,423 6,983,375 6,769,913 13,961,195 13,961,195 0%
Net Income(Loss) $ (208,260) $ 16 $ (1,099,011) - -
Ending Fund Balance $ 1,253,048 $ 1,158,667
Annual adopted budget as amended or modified.Beginning Fund Balance represents the amount which was estimated in the FY 2017-18 budget process.
23
City of Denton
Grants
Schedule of Expenditures-Budget vs Projection(Unaudited)
For the Period Ended March 31,2018
EXPENDITURES CURRENT ANNUAL ANNUAL BUDGET VS
GRANT DESCRIPTION AS OF 9/30/20172 Y-T-D BUDGET PROJECTION PROJECTION
FY 2017-18 Budget
US Dept of HUD-
Community Development Block Grant(CDBG) $ 2,7759354 $ 318,114 $ 1,893,649 $ 600,000 -68%
US Dept of HUD-
HOME Investment Partnership Program 298169384 294,768 1,046,759 450,000 -57%
Community Development 5,591,738 612,882 2,9409408 1,050,000 -64%
TxDot STEP Comprehensive Grant - 33,426 91,464 91,464 0%
2016 UASI 100,071 130,000 130,000 0%
2017 UASI 5,656 98,200 98,200 0%
Emergency Management Performance Grant - 46,825 46,825 0%
2016 Tobacco Enforcement Grant - 7,350 - -100%
Staffing for Adequate Fire&Emergency Response - 419,971 419,971 0%
Public Safety 139,153 793,810 786,460 -1%
Airport Maintenance(RAMP)Grant - 169359 50,000 50,000 0%
TxDot-RTR-Mayhill Rd-IH35 E to US 380 14,203,683 5,799,579 33,197,821 18,000,000 -46%
TxDot-RTR-Bonnie Brae Rd-I1135 E to US 377 9,189,164 391699336 39,579,553 7,000,000 -82%
County-Traffic Signal-US 380-Cindy Lane - - 53,865 - -100%
TxDot-IH35E at Loop 288/Lillian Miller Pkwy - - 37,000 37,000 0%
TxDot-RTR-McKinney(Formerly FM426) 138 462,157 18,267,303 1,300,000 -93%
TxDot-Hickory Creek FM2181-FM2499 2,294 - 2,397,706 400,000 -83%
NCTCOG Regional HHW Drop-Off Facility Project - - 55,898 - -100%
Bicycle&Pedestrian Projects Grant - - 1,500,000 195,000 -87%
Transportation) 23,395,279 994479431 95,139,146 26,982,000 -72%
Interlibrary Loan Program(ILL) - - 25,000 25,000 0%
TIFMAS Training Tuition Grant 4,250 10,000 10,000 0%
Other 4,250 35,000 35,000 0%
Total FY 2017-18 Budget 28,987,017 10,203,716 98,908,364 28,853,460 -71%
New Awards
Emergency Solutions Grant - 125,487 600,000 500,000 -17%
Community Development 125,487 600,000 500,000 -17%
Federal Equitable Sharing 13,067 13,067 13,067 0%
Chapter 59 Asset Forfeitures 18,560 18,560 18,560 0%
U.S.Marshals Violent Offenders Task Force 10,136 10,136 10,136 0%
PD-Law Enforcement Officer Standards&
Education 11,618 11,618 11,618 0%
Sexual Assault Nurse Examiners(SANE)
Reimbursement 22,139 22,139 22,139 0%
2017 SHSP Ballistic Blankets - 3,000 3,000 0%
2017 SHSP Night Vision - 14,200 14,200 0%
2017 UASI Command Data - 30,000 30,000 0%
Body Armor Grant Program - 91,692 91,692 0%
2018 SHSP SWAT Equipment Enhancement - 24,000 24,000 0%
Public Safety - 75,520 238,412 238,412 0%
24
City of Denton
Grants
Schedule of Expenditures-Budget vs Projection(Unaudited)
For the Period Ended March 31,2018
EXPENDITURES CURRENT ANNUAL ANNUAL BUDGET VS
GRANT DESCRIPTION AS OF 9/30/20172 Y-T-D BUDGET PROJECTION PROJECTION
TxDot-N TX Blvd Roundabout 11,805 - 1,988,195 400,000 -80%
TxDot-RTR-ITS COMM Trunk Line 253,372 36,751 1,318,228 1,000,000 -24%
TxDot-US 77 At Nicosia Street - 32,795 38,240 38,240 0%
TxDot-FM 2499 At State School Road 69703 21,597 21,597 0%
TxDot-FM 2499 At Unicorn Lake - 219491 21,638 21,638 0%
Transportation' 265,177 979740 3,387,898 1,481,475 -56%
TxDot NW Trail Extension Grant 1,086,685 2129273 212,273 212,273 0%
Parks and Recreations 1,086,685 2129273 212,273 212,273 0%
Total New Awards 193519862 511,020 4,438,583 2,432,160 -45%
TOTALS $ 3093389879 $ 10,714,736 $ 103,346,947 $ 31,285,620 -70%
'This grant amount will be spent over several years and the fiscal year 2017-18 projections are just estimated expenditure in the one year.
Remaining grant amounts will be spent in future fiscal year.
2 A portion of the grants presented cover multiple years.
25
)� ''��-•'� � `ems,3e•• ,'+ .
Eureka 2 Playground
Section 3
City of Denton
Quarterly Financial Report
March 2018
REVENUE & ECONOMIC
ANALYSIS
27
Revenue & Economic Analysis
Summary
The data included in this section provides information on local, state
and national trends impacting the City's financial position.
The following notes are provided to facilitate this section's readability.
1 . Positive Outlook — Represents favorable conditions for the local
economy. Color code — Green.
2. Cautious Outlook — Represents changing conditions that
require close monitoring. Color code — Yellow.
3. Negative Outlook — Represents unfavorable conditions for the
local economy. Color code — Red.
The data included in this section have been obtained from a variety of
sources. Sales tax and construction related data have been obtained
from internal city departments. Economic data for the State have
been obtained from the Federal Reserve Bank of Dallas and may be
subject to availability. National economic data were compiled with
assistance from the City's investment advisor, First Southwest Asset
Management.
28
FirstSouthwest
AssetManagement
National Economic Trends A Hilltop Holdings Company.
Period Ending March 31, 2018
Gross Domestic Product(GDP)
The U.S. economy grew at an annualized rate
Gross Domestic Product Quarterly Annualized Percentage Change of+2.3% in the first three months of 2018.
Although this was the slowest quarterly pace
6.0 ........................................................_...___................................................................................__...._...........................
in a year,it topped the+2.0%median forecast,
5.0 ---------______-----------------------------------------------------------------------I Historical Avg.3.2% and was the best first quarter reading since
2015. Personal consumption rose by just
3.2 3.1 3.2 2.9 +1.1%, the weakest consumer spending since
Z
3.0 ......... Z......._.......................------------..............2.8............................................. ........... .__...__........2:3 the second quarter of 2013. B usiness
2.2
2.0 .......... .........1.g............,........._._._._._..... ...._.. ........................... .......... .........
investment remained relatively solid,making
o s 1.2 a significant contribution to overall growth.
""""" Residential spending(housing)was flat in the
0.0 - - first quarter after surging at the end of 2017.
Business inventory accumulation was positive
to begin the year adding 4/10'h to the overall
.2.0 ._......................................................................._............._._...._..................................................................................__ b while net expo is added another
number r
m L 2/10'h. The report also indicated inflation
G N G G a, P P v v J m
moved higher during the quarter despite only
Source US Census Bureau!Bloomberg modest economic growth.
Nonfarm Payrolls
Nonfarm payrolls rose b y +103k in March,
thousands r_Change in Non-Farm Payrolls -O-Unemplyment Rate � ercent
significantly below the+185k median forecast,
aoo _.-W W W W W.__._._.Ww_.w."............w.,._..,.... 8.0
while downward revisions to the previous two
326 73 months extracted-50k from the January and
100 ._ . .zs9............................................. _._...,.............................m....................................... ...--_ February count. Incle ment weather played a
239 „I 70 role in the March miss suggesting an April
1n0
a 200 lao 200 175 1.76 . 6.5 C rebound. The monthly average for the first
f g quarter was+202k, a dis appointment given
Z100 71 l03 60 0 loftier expectations,but plent y solid in the
Z ' s.5 T midst of what is now the second longest
'a Z expansion cycle in history. Headline
o 5.0
$
4.7 a T unemployment (includin only those actively
a.a 4.3 a.3 a.3 �4.4 a.5 seeking work)held steady at 4.1%for the sixth
tnn a f a,t a.t A,1 a.l straight month as the more volatile household
4'0 survey indicated a loss of-37k jobs and a-158k
-20° ..............................................................................................................,................................................................... 3.5 drop in the labor force . The br oader U6
Q rd a ; W a R ; a Q unemployment rate(which includes every one
<
a, �4 -4 -4 'J �4 -4 C OD cc who would accept a suitable fulltim e job if it
Source:Bureau of Labor Statistics/Bloomberg were offered)fell from 8.2%to an 11-year low
of 8.0%.
29
Inflation
Inflation Indicators(Year-Over-Year Percent Change) The Producer Price Index continues to show
35 .-..........................._.._...........................____.._....._.._......___-------------.____................._...................____.._.. 3s inflationary pressure in the pipeline.
Headline PPI rose+0.3%in March, lifting the
3.0 -- tziiiiiiinUl-All Items -+-CPI•Core PCE-Core ----• 3A year-over-year (yoy) pace from +2.8% to
+3.0%. Core PPI,which excludes food and
energy prices, also rose+0.3%,boosting the
2.0 ............................................................... ... ... _ .... .......................... _ _. .. .. ... 2.0 yoy pace from +2.5% to+2.7%. The
Consumer Price Index also showed signs of
1s •---•••-----------•••••--------• 1.5 higher inflation in March. Lower energy
1A 1.0 prices drove headline CPI down-0.1%,but
the yoy pace rose from+2.2% to+2.4%,the
0s - • - - 0.5 highest in 12 months. Core CPI rose+0.2%
0.0 0.0 in March,pushing the yoy pace up fro in
+1.8% to a 13-month high of +2.1%. PCE
•as --- --- ------ ••-- - • mm-- •-- - --- •-----•---•••-- - 45 core crept up from +1.5%to 1.6% y-o-y in
o ° Q R g o ` , 9 Q a P February. As long as the inflation trend is
upward, the FOMC should rem ain on its
Source Bureau of Labor Statistics+Bureau of Economic Anaksis Bloormero tightening path.
Retail Sales Overall retail sales,bolstered by higher auto
Retail sales%Change sales, rose +0.6% in March,bettering the
tetzl Retail Sales Month-Over-Month —Retail Sales Year-Over-Year I +0.4%median forecast.
7.00 ...._..............................................................................._........_..................................._............................ The retail sales control group(used to
calculate GDP) rose b y +0.4%, exactly
6.00 W._...._................................................................................................._....._........_.._......................_..............................._.. matching forecast. Both the overall and
5.00 _................................................................I....._ ._.. ................................................ _.... ..............._........_ control group showed a monthly gain for the
first time since November.
3.00 ..._.........._.. ................. ....._....._...........__.....W_._....._._._._..... ......................................_._.............._..... Consumers had hibernated ever since a
buying splurge around the Thanksgiving
2.00 ... .............._............................................_.................................._.................._.... ........_................................ holiday. The solid March data is encouraging
1.00 ._._.._._._....__. ................................ _...._.-- ....._.._._...._......__....._.......... (and long o verdue) but a single month
I001�_ _ i. _ a doesn't make a trend.Up to this point, the
lack of consumer spending after the tax
-LOD ...... ............................................................................................................................._.._............_....._._.._._.__._._.._._ reform was passed i s confounding.
-2.00 ..................--.............................._._....-..........-....................................................._...... ...........-.........._.......... Confidence remains near a 17-y ear high,
;—, A o R g c 3 0 w v 3 g ? c 3
suggesting that consumers are optimistic,but
v V v V v V v V OO
record levels of household credit may act as
Source,US Census Bureau,,ewmberg a deterrent.
30
Texas Home Sales
- Texas home sales fell by -12.9% in the first
Texas(Denton Cty Home Sales(NSA) quarter and -6.8% on a year-over-year basis.
<oo The average Texas home price in March was
375 $282.4k, a +4.6% increase over the previous
350 ue year, but down from the high of$286.7 last
300 May..fie /V•
275
250 i v_ . �--t�- In Denton County,unit home sales fell-15.3%
225 _ -- 1 during the quarter (due to unusually slow
205 - ,'_ 1 3 January and February sales), but rose -1.6%
uo
no over the same period a year ago.The average
125 _ home price in March was $355.2k, a +5.3%
+oo _ year-over-year increase and the highest
75 _.D,,,,,Q,,0"S" average recorded in any single month. Total
$o = ' Denton County listings in December were
2s 2,733, approximately +3%higher than a year
ago. The available inventory at year end was
, e
+ N N N N W W W W L a e L O N LA N a 0 0 0 � � 0 just 2.2 months; very close to the 1.7 month
historical low recorded in December 2016.
The paper was prepared by FirstSouthwest Asset Management,is intended for educational and informational purposes only and does not constitute legal or
investment advice,nor is it an offer or a solicitation of an offer to buy or sell any investment or other specific product.Information provided in this paper was
obtained from sources that are believed to be reliable;however,it is not guaranteed to be correct,complete,or current,and is not intended to imply or establish
standards of care applicable to any attomey or advisor in any particular circumstances.The statements within constitute the views of FirstSouthwest Asset
Management as of the date of the report and may differ from the views of other divisions/departments of Hilltop Securities.In addition,the views are subject
to change without notice.This paper represents historical information only and is not an indication of future performance.
31
Fuel Prices I Outlook I Cautious
Description: Quarterly fuel trends for the United States and Texas.
Analysis: Fuel prices are a major commodity source in the economy. Studies have shown a positive effect on
disposable income levels when fuel prices decrease. It is estimated that for every penny decrease in the price of
fuel, $1.3 billion is available to the consumer for disposable income. Therefore,the price of fuel is likely to be a key
predictor of sales tax collections. Fuel prices showed a 2.0%increase from the prior quarter at the national level and
a 1.9%increase at the state level. Staff has rated this outlook as Cautious.
Fuel Prices
I Sales Tax -Texas Fuel Prices -US Fuel Prices
$4.00 $12
$3.50
$10
$3.00
$8
$2.50
N N
01.
c $2.001140
$6
G
$1.50
$4
$1.00
$2
$0.50
$0.00 $0
2Q'14 4Q'14 2Q'15 4Q'15 2Q'16 4Q'16 2Q'17 4Q'17 2Q'18
Source: U.S. Department of Energy
32
Municipal Cost Index I Outlook
Description: The Municipal Cost Index was developed to show the rate of inflation for the cost of goods purchased
frequently by local governments. The MCI draws on the monthly statistical data collected by the U.S. Departments
of Commerce and Labor as well as independently compiled data to project a composite cost picture for the
municipal budget officer or operating department manager. Costs of labor, materials and contract services are all
factored into the composite MCI. Major indicators of these items used for the MCI include the Consumer Price
Index, the Wholesale Price Index for Industrial Commodities (now known as the Producer Price Index) and the
construction cost indexes published by the U.S. Department of Commerce, respectively.
Analysis: The Municipal Cost Index (MCI) pulls a variety of prices for frequently purchased commodities for local
governments. The cost for labor, materials and contract services are factored for the MCI. An increase in MCI
means the overall price mix for these types of commodities will cost local governments more to do routine business.
The 2nd Quarter of 2017-18 shows an increase of 1.8%over the prior quarter and an increase of 9.1%over the 2nd
Quarter of 2016-17. Staff has rated this indicator as Negative.
Municipal Cost Index
250.00
245.00
240.00
235.00
230.00
225.00
220.00
2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18
Source:American City and County Magazine
Note: The Municipal Cost Index is designed to show the effects of inflation on the cost of providing municipal services. State
and local government officials rely on American City&County's Municipal Cost Index to stay on top of price trends,help control
price increases for commodities, make informed government contract decisions and intelligent budget planning. Since 1978,
readers have loyally referred to the Municipal Cost Index to determine the cost of inflation and, hence,the rising cost of doing
business as a local government.
33
Hotel Occupancy Tax Analysis I Outlook I Positive
Description: Tax imposed on a person who, under a lease, concession, permit, right of access, license, contract, or
agreement, pays for the use of a room that is in a hotel. A hotel includes: any building in which the public may obtain
sleeping accomodations; motels; a tourist home, house or court; lodginghouse; inn; roominghouse; or bed and
breakfast. The tax rate levied by the City is 7%of the price paid for a room. The State also levies a tax equal to 6%.
Analysis: While the use of this revenue source is restricted by state law, it is an essential revenue source for various
tourist related activities within the community and an important indicator of local economic activity. Hotel Occupancy
tax revenue through the 2nd Quarter of FY 2018 was 6.15% less than budget and 20.3% more than the prior year's
actual. Staff has rated the outlook for this economic indicator as Positive.
2nd Quarter FY 2017-18
Actual Y-T-D
Occupancy Tax Revenue: $ 644,988 $ 1,234,059
FY 2016-17 Budget $ 681,973 $ 1,367,666
Over(Under) Budget $ (36,985) $ (133,607)
FISCAL YEAR FORECAST
Hotel Occupancy Tax Budget: $ 3,052,174
End of Year Projection: $ 3,052,174
Variance: $ -
Hotel Occupancy Tax Collections
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
■FY 2014-15 ■FY 2015-16 ■FY 2016-17 ■FY 2017-18
34
Sales and Use Tax Analysis I Outlook I Positive
Description: Tax imposed on all retail sales, leases, and rentals of most goods,as well as taxable services. The total tax
rate levied within the City is 8.25%(State, 6.25%;City, 1.5%; DCTA,0.5%).
Analysis: As the second largest revenue source to the City's General Fund, sales and use taxes are essential to the
delivery of services to the community. Sales tax revenues through the 2nd quarter of FY 2018 compared to revenues
from the prior year 2nd quarter shows a 10.52% increase, and compared to the budget it is 11.30% above. Staff has
rated this indicator as Positive.
Quarter FY 2017-18
Actual Y-T-D
Revenue:Gross Sales Tax
Municipal Operations $ 461,732 $ 899,499
General Retail&Others 9,110,613 18,747,547
Comptroller Fees (178,738) (367,773)
Amount Retained (175,164) (360,419)
Total Revenue $ 9,218,443 $18,918,854
Expenses:Economic Incentives
Denton Crossing' $ 132,548 $ 289,235
Unicorn Lake 19,521 37,043
Rayzor Ranch 3 305,472 653,387
Golden Triangle 35,943 100,078
Total Expenses $ 493,484 $ 1,079,74ilE
Net Total 8,724,959 17,839,111
FY 2017-18 Budget 7,838,988
Over(Under)Budget $ 885,971 $ 1,423,596
Sales Tax Budget: $ 36,181,385
Year End Projection: 39,202,935
Variance to Original Budget: $ 3,021,550
Economic Development Expenditure Budget: $ 2,373,819
Year End Projection: 2,060,599
Variance to Original Budget: $ (313,220)
Gross Sales Tax Collections (Millions)
$10.0 _
$9.0 -
$8.0
$7.0
$6.0 —
$5.0
$4.0
$3.0
$2.0 —
$0.0 - 3
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
O FY 2013-14 Actual V FY 2014-15 Actual IN FY 2015-16 Actual o FY 2016-17 Actual a FY 2017-18 Actual
1.Incentive is 50%of general sales taxes.For the 2nd quarter sales tax equaled$265,096.
2.Incentive is 50%of general sales taxes.For the 2nd quarter sales tax equaled$39,042.
3.Incentive is 75%of general sales taxes.For the 2nd quarter sales tax equaled$407,296.
4.Incentive is 75%of general sales taxes.For the 2nd quarter sales tax equaled$47,924.
35
Certificates of Occupancy I Outlook
Description: Certificates of Occupancy (CO) are permits issued in compliance with the 2009 International Building
Code (IBC) and applicable City ordinances. The IBC states, "that no building shall be used or occupied, and no change
in the existing occupancy classification of a building or structure or portion thereof shall be made, until the building
official has issued a certificate of occupancy." Certificates of Occupancy ensure that applicable building, fire and
consumer health codes are met.
Analysis: Certificates of Occupancy are an economic indicator that provides a framework for the overall condition of
the local economy. Certificates of Occupancy decreased 42.8% from the prior quarter and decreased 30.56%from
the 2nd Quarter of 2017. Staff has rated the outlook for this revenue indicator as Cautious.
Certificates of Occupancy
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
'13 '13 '13 '14 '14 '14 '14 '15 '15 '15 '15 '16 '16 '16 '16 '17 '17 '17 '17 '18 '18
Source:City of Denton's Development Services Department.
36
Residential Permits I Outlook I Positive
Description: Residential Permits are issued in compliance with the 2009 International Residential Code (IRC) and
applicable City ordinances. The data presented in this analysis only include new permits issued and not
remodels/alterations.
Analysis: Residential Permits are an economic indicator that provides a framework for the overall condition of the
local economy. In particular, residential permits have a direct correlation with building inspection fees and
appraised values. Residential permits increased 64.0% from the prior quarter and increased 47.7% from the 2nd
Quarter of 2017. Staff has rated the outlook for this revenue indicator as Positive
Residential Permits
250.0
200.0
150.0
100.0
i
50.0
0.0
2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
'13 '13 '13 '14 '14 '14 '14 '15 IS '15 '1S '16 '16 '16 '16 '17 '17 '17 '17 '18 '18
Source:City of Denton's Development Services Department.
37
Texas Leading Indicators Index I Outlook I Positive
Description: The Texas Leading Indicators Index is a single weighted summary statistic that sheds light on the future
of the state's economy. The index is designed to signal movements and changes in the state's rate of growth. The
index includes the following leading indicators: Texas Value of the Dollar, U.S. Leading Index, Real Oil Prices, Well
Permits, Initial Claims for Unemployment Insurance, Texas Stock Index, Help-Wanted Advertising, and Average
Weekly Hours Worked in Manufacturing.
Analysis: Texas Leading Indicators provide a framework for the overall condition of the local economy. Data for this
quarter shows an increase in the state's rate of growth. The index increased 2.4% from the prior quarter and
increased 6.11%from the 2nd Quarter of 2016-17. Staff has rated this indicator as Positive
Texas Leading Indicators Index
140.0
135.0
130.0
125.0
120.0
115.0
110.0
105.0
100.0
2Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q
'08 '08 '09 '09 '10 '10 '11 '11 '12 '12 '13 '13 '14 '14 '15 '15 '16 '16 '17 '17 '18
Source: Federal Reserve Bank of Dallas
38
Unemployment Rate Index I Outlook I Positive
Description: Unemployment is defined as the number or proportion of people looking for work at the prevailing
wage who are unable to find employment.
Analysis: Unemployment is an economic indicator that provides a framework for the overall condition of the
national, state and local economies. The unemployment rate for the City of Denton is at 3.1% for the 2nd Quarter.
The unemployment rates for most of the other reported sectors were either up slightly or flat from the prior quarter.
As a result of the downward trend since the high of the 2nd Quarter of 2012, staff has rated the outlook for this
revenue indicator as Positive.
Unemployment Rate Index
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
1Q'12 3Q'12 1Q'13 3Q'13 1Q'14 3Q'14 1Q'15 3Q'15 1Q'16 3Q'16 1Q'17 3Q'17 1Q'18
`IDallas-Plano-Irving MD IDenton -Texas -U6 Unemployment -United States
Source: Federal Reserve Bank of Dallas, U.S. Bureau of Labor Statistics,and Texas Workforce Commission
Note: U6 unemployment includes marginally attached workers who currently are neither working nor looking for work but
indicate that they want and are available for a job and have looked for work sometime in the recent past. Discouraged
workers, a subset of the marginally attached, have given a job-market related reason for not looking currently for a job.
Persons employed part-time for economic reasons are those who want and are available for full-time work but have had to
settle for a part-time schedule.
39
Section 4
City of Denton
Quarterly Financial Report
March 2018
INVESTMENT REPORT
40
CITY OF r • QUARTERLY INVESTMENT REPORTcm
rn
nr rr�
INVESTMENTPOOL
Policy
Par Market Book Unrealized Max. Benchmark
j Portfolio: Value Value Value Gain/(Loss) WAM WAM YTM Yield*
j Investment Pool j$ 608,515,986 $ 605,052,760 $ 608,179,960 $ (3,127,200) 309 550 1.42%
`Twelve month moving average of a one year
:US.T-bill yield
%of Total
Par Market Book Unrealized Portfolio Policy
:Securities By Investment Type: Value Value Value Gain/(Loss)' WAM YTM (Book Value) Max.
:U.S.Treasuries 17,000,000 16,849,721 16,958,860 (109,139) 313 1.23% 2.79% 100.00%
:U.S.Federal Agencies 323,756,000 320,650,279 323,527,701 (2,877,422) 427 1.34% 53.20% 100.00%
:Municipal Bonds 14,500,000 14,379,250 14,500,000 (120,750) 297 1.11% 2.38% 15.00%
:Certificates of Deposit 126,000,000 126,000,000 126,000,000 - 310 1.57% 20.72% 35.00%
:Commercial Paper 36,000,000 35,913,524 35,933,413 (19,889) 64 1.67% 5.91% 15.00%
:Local Government Investment Pools 58,324,172 58,324,172 58,324,172 - 1 1.49% 9.59% 50.00%
:Insured Cash Sweep Savings Deposits 25,000,000 25,000,000 25,000,000 - 1 1.55% 4.11% 15.00%
:Demand Deposits 7,935,814 7,935,814 7,935,814 1 0.80% 1.30%
:Total Portfolio ;$ 608,515,986 $ 605,052,760 $ 608,179,960 $ (3,127,200) 309 1.42% 100.00%
:'Unrealized gain/(loss)is the difference between the market and book value and does not represent an actual gain or loss. Gains and losses are:
:realized only when a security is sold prior to maturity. Since it is the City's practice to hold investments until they mature,the temporary gains and:
:losses are unlikely to be realized.
Current 3 Months Ago 3 Month 1 Year Ago 1 Year Ago
:Investment Pool Comparisons: 3131I2018 12I31I2017 Difference 3/31/2017 Difference
:Par Value :$ 608,515,986 $ 664,555,916 $ (56,039,930) $ 688,707,818 $ (80,191,832)
:Market Value !$ 605,052,760 $ 661,960,386 $ (56,907,626) $ 688,352,400 $ (83,299,640)
:Book Value !$ 608,179,960 $ 664,403,888 $ (56,223,928) $ 689,137,045 $ (80,957,085)
!Unrealized Gain(Loss) !$ (3,127,200) $ (2,443,502) $ (683,698) $ (784,645) $ (2,342,555)
!Weighted Average Maturity 309 329 (20) 374 (65)
:Yield to Maturity 1.42% 1.29% 0.13% 1.07% 0.35%
:Portfolio Composition:
:U.S.Treasuries 2.79% 8.13% -5.34% 6.43% -3.63%
:U.S.Federal Agencies 53.20% 50.99% 2.20% 45.88% 7.30%
:Municipal Bonds 2.38% 3.43% -1.06% 4.65% -2.27%
:Certificates of Deposit 20.72% 20.47% 0.25% 20.90% -0.18%
:Commercial Paper 5.91% 6.90% -1.00% 8.67% -2.77%
:Local Government Investment Pools 9.59% 5.93% 3.65% 13.07% -3.48%
:Insured Cash Sweep Savings Deposits 4.11% 3.76% 0.35% 0.00% 4.11%
:Demand Deposits 1.30% 0.39% 0.92% 0.40% 0.90%
:Bank Collateral Review**: Institution Collateral Type Market Value Collected Balance Pledge Required Collateral Ratio
:Wells Fargo Demand Deposits :BNY Mellon U.S.Agency MBS $ 35,879,211 $ 1,395,672 >102% 2570.75%
:LegacyTexas Bank Certificates of Deposit*** .Fed Home Loan Bank Standby LOC $ 65,220,000 $ 63,222,104 >100% 103.16%
:Independent Bank Certificates of Deposit ::Fed Home Loan Bank Standby LOC $ 16,950,000 $ 15,173,263 >100% 111.71%
:**Does not include FDIC insurance
***Formerly,ViewPoint Bank
Depository Ledger Balance Review: Institution Account Type Beginning Bal. Deposits Withdrawals Ending Bal.
Wells Fargo Bank Checking $ 1,729,347 $ 82,281,926 $ (76,075,459) $ 7,935,814
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
:Compliance Statement&Review: :The Quarterly Investment Report is in full compliance with the objectives,restrictions,and strategies as set forth in the City of Denton's Investment:
:Policy and the Public Funds Investment Act(Texas Government Code,Chapter 2256.023).
ANTONIO PUENTE,JR. KEVIN ANN MULLEN
Reviewer:Antonio Puente,Jr.,CGFO Preparer:Kevin Ann Mullen,CPA
Director of Finance Treasury Manager
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
41
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
INVESTMENTPOOL
Current 3 Months Ago 3 Month 1 Year Ago 1 Year
3/31/2018 12/31/2017 Difference 3/31/2017 Difference
Par Value-U.S.Treasuries $ 17,000,000 $ 54,000,000 $ (37,000,000) $ 44,000,000 $ (27,000,000)
:Par Value-U.S.Federal Agencies 323,756,000 338,756,000 (15,000,000) 316,000,000 7,756,000
:Par Value-Municipal Bonds 14,500,000 22,800,000 (8,300,000) 31,860,000 (17,360,000)
:Certificates of Deposit 126,000,000 136,000,000 (10,000,000) 144,000,000 (18,000,000)
:Par Value-Commercial Paper 36,000,000 46,000,000 (10,000,000) 60,000,000 (24,000,000)
:Local Government Investment Pools 58,324,172 39,424,172 18,900,000 90,064,298 (31,740,126)
;Insured Cash Sweep Savings Deposits 25,000,000 25,000,000 - - 25,000,000
Demand Deposits 7,935,814 2,575,744 5,360,070 2,783,520 5,152,294
Total Par Value $ 608,515,986 $ 664,555,916 $ (56,039,930) $ 688,707,818 $ (80,191,832)
Market Value-U.S.Treasuries $ 16,849,721 $ 53,875,122 $ (37,025,401) $ 44,297,114 $ (27,447,393)
:Market Value-U.S.Federal Agencies 320,650,279 336,610,728 (15,960,449) 315,554,445 5,095,834
Market Value-Municipal Bonds 14,379,250 22,686,733 (8,307,483) 31,871,960 (17,492,710)
:Certificates of Deposit 126,000,000 136,000,000 (10,000,000) 144,000,000 (18,000,000)
Market Value-Commercial Paper 35,913,524 45,787,887 (9,874,363) 59,781,063 (23,867,539)
:Local Government Investment Pools 58,324,172 39,424,172 18,900,000 90,064,298 (31,740,126)
;Insured Cash Sweep Savings Deposits 25,000,000 25,000,000 - - 25,000,000
:Demand Deposits 7,935,814 2,575,744 5,360,070 2,783,520 5,152,294
:Total Market Value $ 605,052,760 $ 661,960,386 $ (56,907,626) $ 688,352,400 $ (83,299,640)
:Book Value-U.S.Treasuries $ 16,958,860 $ 53,988,660 $ (37,029,800) $ 44,302,001 $ (27,343,141)
:Book Value-U.S.Federal Agencies 323,527,701 338,795,485 (15,267,784) 316,195,085 7,332,616
:Book Value-Municipal Bonds 14,500,000 22,813,784 (8,313,784) 32,009,718 (17,509,718)
:Certificates of Deposit 126,000,000 136,000,000 (10,000,000) 144,000,000 (18,000,000)
:Book Value-Commercial Paper 35,933,413 45,806,043 (9,872,630) 59,782,423 (23,849,010)
Local Government Investment Pools 58,324,172 39,424,172 18,900,000 90,064,298 (31,740,126)
:Insured Cash Sweep Savings Deposits 25,000,000 25,000,000 - - 25,000,000
:Demand Deposits 7,935,814 2,575,744 5,360,070 2,783,520 5,152,294
:Total Book Value $ 608,179,960 $ 664,403,888 $ (56,223,928) $ 689,137,045 $ (80,957,085)
:Accrued Interest $ 3,032,833 $ 3,724,093 $ (691,260) $ 2,779,815 $ 253,018
!Cash Value- $ 608,085,593 $ 665,684,479 $ (57,598,886) $ 691,132,215 $ (83,046,622)
(Total Market Value+Accrued Interest)
:Unrealized Gain/(Loss) $ (3,127,200) $ (2,443,502) $ (683,698) $ (784,645) $ (2,342,555)
Change in Fair Value since 9/30/17- $ (1,919,786) $ (1,385,383) $ (534,403) $ (1,277,267) $ (642,519)
(GASB 31)
: `---------------------------------------------------------------------------------------------------------------------------------------------
:Strategy Statement: :The investment pool is an aggregation of the majority of City funds which may include tax receipts,enterprise fund revenues,fine and fee:
income, as well as some, but not necessarily all bond proceeds, grants, gifts and endowments. This portfolio is maintained to meet:
:anticipated daily cash needs for the City's operations,capital projects and debt service. In order to meet these obligations and to minimize:
:potential liquidation losses,the dollar-weighted stated average maturity of the investment pool shall not exceed 1.5 years or 550 days. The:
:objectives of this portfolio are to: (1)ensure safety of principal by investing in only high quality securities for which a strong secondary market:
:exists;(2)ensure that anticipated cash flow needs are matched with adequate investment liquidity;(3)limit market and credit risk through:
diversification;and(4)attain the best feasible yield,commensurate with the objectives and restrictions set forth in the Investment Policy,by:
:actively managing the portfolio to meet or exceed the twelve month moving average yield of a one year U.S.Treasury bill as derived from the:
:Federal Reserve Statistical Release H.15 for constant maturities.
F----------------------------------------------------------------------------------------------------------------
42
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
INVESTMENT POOL
Current 3 Months Ago 1 Year Ago
;Summary By Security Type: 3/31/2018 12/31/2017 3/31/2017
-------------------------------------
:U.S.Treasuries-Coupon $ 16,958,860 $ 53,988,660 $ 44,302,001
j U.S.Federal Agencies-Coupon 302,771,196 308,038,429 296,195,825
:U.S.Federal Agencies-Callable 20,756,505 30,757,056 19,999,260
Municipal Bonds-Coupon 14,500,000 22,813,784 32,009,718
:Certificates of Deposit-CDARS 49,000,000 54,000,000 49,000,000
:Certificates of Deposit-SLOC 77,000,000 82,000,000 95,000,000
;Commercial Paper-Discount 35,933,413 45,806,043 59,782,423
;Local Government Investment Pools 58,324,172 39,424,172 90,064,298
:Insured Cash Sweep Savings Deposits 25,000,000 25,000,000 -
:Demand Deposits 7,935,814 2,575,744 2,783,520
;Total Book Value $ 608,179,960 $ 664,403,888 $ 689,137,045
Current
3/31/2018
■U.S.Federal Agencies-
Coupon
49.79%
■U.S.Federal Agencies-
Callable
3.41%
■
Municipal Bonds-
Coupon
2.38%
■ U.S.Treasuries- ■
Coupon Certificates of
2 79% Deposit-SLOC
12.66%
■Demand Deposits ■ Certificates of
1.30%
Deposit-CDARS
8.06%
■Insured Cash Sweep ■Commercial Paper-
Savings Deposits • Local Government Discount
4.11% 5.91%
Investment Pools...
;:Objective: ;The portfolio is restricted to U.S.Treasuries and agency securities(maturing in less than five years);state and locally issued Texas municipal;
;bonds rated AA or better(maturing in less than three years);insured,collateralized,or standby letter of credit backed certificates of deposit;
!(maturing in less than three years);collateralized repurchase agreements(maturing in less than thirty days);commercial paper rated A-1/P-1 or:
;better(maturing in less than 270 days);and local government pools&SEC registered government money market mutual funds(weighted average;
!maturity of less than 60 daysl______________________________________________________________________________________________________________________________________________
Current 3 Months Ago 1 Year Ago
;Summary By Security Type: 3/31/2018 12/31/2017 3/31/2017
--------
:U.S.Treasuries-Coupon 2.79% 8.13% 6.43%
:U.S.Federal Agencies-Coupon 49.79% 46.36% 42.98%
:U.S.Federal Agencies-Callable 3.41% 4.63% 2.90%
!Municipal Bonds-Coupon 2.38% 3.43% 4.65%
:Certificates of Deposit-CDARS 8.06% 8.13% 7.11%
:Certificates of Deposit-SLOC 12.66% 12.34% 0.00%
::Commercial Paper-Discount 5.91% 6.90% 13.79%
:Local Government Investment Pools 9.59% 5.93% 8.67%
:Insured Cash Sweep Savings Deposits 4.11% 3.76% 13.07%
:Demand Deposits 1.30% 0.39% 0.40%
;Total 100.00% 100.00% 100.00%
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
43
CITY OF I N:QUARTERLY INVESTMENT REPORT
2.dFi-1 Q..,,ta,2018-M-ch 31,2018 Pog,4
INVESTMENTPOOL
Current 3 IIII-Ift Ago I Year Ago
'Summary By Issuer:
ICDARS CDs $ 3/31/2018........................................120112017.......................................3/31/2017
49,000,000 $ 54,000,000 $ 49,000,000
I LEGACYTEXAS BANK CDs* 62,000,000 62,000,000 62,000,000
!INDEPENDENT BANK CDs
1 15,000,000 20,000,000 33,000,000
!U.S.TREASURY
1 16,958,860 53,988,660 44,302,001
1 FFC13
1 79,995,171 79,025,848 78,030,907
I
I FHLB
1 121,008,039 130,105,703 115,098,377
FHLMC 47,921,604 47,914,577 44,098,875
;FNMA 74,602,888 81,749,357 78,966,926 1
1 DALLAS,TX WTR&SWR REV BIDS 1 10,000,000 10,000,000 10,000,000 1
I I I
;TEXAS A&M UN IV REV BIDS I I
1 4,500,000 4,500,000 9,504,897 1
I
1 I LUBBOCK,TX GO REFUNDING BIDS I I - - 3,303,686 1
I
!UNIVERSITY OF HOUSTON,TX REV BDS 3,300,517 5,094,680
MCKINN EY,TX GENERAL DEG BONDS 5,013,267 1,193,502
!,TEXAS SCHOOL DIST GEN DEG BONDS
- 2,912,953
JP MORGAN SECURITIES LLC 10,984,992 25,911,014 -
!TOYOTA MOTOR CREDIT CORP
1 14,979,723 14,919,698 26,940,183
I!GE CAPITAL TREASURY LLC
- - 17,930,640
NESTLE FINANCE INTL LTD - -
1 14,911,600
!ING(U.S.)FUNDING LLC
1 9,968,697 4,975,331 -
ITEXSTAR 1 58,324,172 39,424,172 90,064,298
I I I
!INSURED CASH SWEEP SAVINGS I
I 1 25,000,000 25,000,000 -
WELLS FARGO DEMAND DEPOSITS 1 7,935,814 2,575,744 2,783,520
I
'!Total Book Value I $ 608,179,960 $ 664,403,888 $ 689,137,045
13/31/2018
■WF DEMAND DEPOSITS,1.30%
•TEXSTAR,9.59% E CDARS CDs,8.06%
• INSURED CASH SWEEP SAVINGS,4.11% 0 LEGACYTEXAS BANK CDs,10.19%
•ING(U.S.)FUNDING LLC,1.64%
■ TOYOTA MOTOR CREDIT CORP,2.46%
0 INDEPENDENT BANK CDs,2.47%
• JP MORGAN SECURITIES LLC,1.81%
0 TEXAS ASIA UNIV REV BDS,0.74%
0 U.S.TREASURY,2.79%
0 DALLAS,TX WTR&SWR REV BIDS,1.64%
N FNMA,12.27%
FFCB,13.15%
0 FHLIMC,7.88%
0 FHU3,19.90%
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Objective: lilt is the policy of the City to diversify its investment portfolio by restricting investments in a single issuer/institution to no more than 35 percer0 of the portfolio's total book value and to those offering;
!repurchase agreements,collateralized CDs(including standby letters of credit),and local or state of Texas municipal securities to no greater than 15 percent.The purpose of this requirement is to limit!
'market and credit risk.Commercial paper issuers are further restricted by a 5 percent total portfolio limitation.Them are no issuer limitations on U.S.Treasuries or FDIC insured products except as they;
pertain to the overall 35%certificates of deposit and 15%savings deposit restrictions.Some investment"maybe further limited.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
I I Current 3 Months Ago I Year Ago
!Summary By Issuer: 3/31/2018 12J3112017 3/31/2017
I ....................................... .......
!CDARS CDs 8.06% 8.13% 7.11%
ILEGACYTEXAS BANK CDs* 10.19% 9.33% 9.00%
!,INDEPENDENT BANK CDs 2.47% 3.01% 4.79%
!U.S.TREASURY 2.79% 8.13% 6.44%
I!FFCB I
1 13.15% 11.89% 11.32% 1
I!FHLB I I
1 19.90% 19.58% 16.70% 1
I I I
!FHLMC I 7SB% 7.21% 6.40% 1
I I I
;FNMA I
1 12.27% 12.30% 11.46% 1
I I
1 DALLAS,TX WTR&SW R REV BIDS 1 1.64% 1.51% 1.45% 1
I I I
!TEXAS A&M UN IV REV BIDS 1 0.74% 0.68% 1.39% 1
I I
I I
!GE CAPITAL TREASURY LLC 1 0.00% 0.00% 2.58% 1
I I I
LUBBOCK,TX GO REFUNDING BIDS 1 0.00% 0.00% 0.48% 1
I I
UNIVERSITY OF HOUSTON,TX REV BDS 1 0.00% 0.50% 0.74% 1
1 MCKINNEY,TX GENERAL DEG BONDS 0.00% 0.75% 0.17%
!TEXAS SCHOOL DIST GEN DEG BONDS 0.00% 0.00% 0.42%
I
UP MORGAN SECURITIES LLC 1.81% 3.90% 0.00%
I
!,TOYOTA MOTOR CREDIT CORP 2.46% 2.25% 3.91%
NESTLE FINANCE INTL LTD 0.00% 0.00% 2.17%
!ING(U.S.)FUNDING LLC 1.64% 0.75% 0.00%
I!TEXSTAR 9.59% 5.93% 13.07% 1
!INSURED CASH SWEEP SAVINGS 4.11% 3.76% 0.00% 1
I I
!WELLS FARGO DEMAND DEPOSITS 1 1.30% 0.39% 0.40% 1
I I
I I
Total 1 100.00% 100.00% 100.00% 1
I I I
ViewPoint Bank I I
I I
I I
I I
I I
I I
------------------------------------------------------------1----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
44
45
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
ECONOMIC SUMMARY
Interest Rate History
:Source: U.S.Federal Reserve Statistical
------------------------------- ------------------------------- -------------------------------
:Release(H.15) Fiscal Year 2012-2013 Fiscal Year 2013-2014 Fiscal Year 2014-2015
: Dec-12 Mar-13 Jun-13 Sep-13 : Dec-13 Mar-14 Jun-14 Sep-14 : Dec-14 Mar-15 Jun-15 Sep-15 :
Market Sector: I---Avg
-------Avg
------_Avg
-------AV9---"---Avg
-------Avg
-------AV9-------AV9---"---AV9-------Avg
-------Avg
-------Avg
---
"
;Fed Funds(effective) 0.16% 0.14% 0.09% 0.08%: 0.09% 0.08% 0.10% 0.09%: 0.12% 0.11% 0.13% 0.14%:
:3-Month U.S.T-Bill 0.07% 0.09% 0.05% 0.02%: 0.07% 0.05% 0.04% 0.02%: 0.03% 0.03% 0.02% 0.02%:
:2-Year U.S.T-Note 0.26% 0.26% 0.33% 0.40%: 0.34% 0.40% 0.45% 0.57%: 0.64% 0.64% 0.69% 0.71%:
Portfolio Benchmark' 0.18% 0.18% 0.16% 0.15: 0.13% 0.13% 0.12% 0.12%: 0.12% 0.15% 0.18% 0.24:
:Portfolio Yield 0.52% 0.50% 0.48% 0.49%: 0.50% 0.49% 0.49% 0.51%: 0.55% 0.57% 0.57% 0.65%:
I-----------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------------------------
Fiscal Year2015-2016 Fiscal Year2016-2017 Fiscal Year2017-2018
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18
;Market Sector: Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg
I-----------------------------------------------
:Fed Funds(effective) 0.24% 0.36% 0.38% 0.40%: 0.54% 0.79% 1.04% 1.15%: 1.30% 1.67%
:3-Month U.S.T-Bill 0.23% 0.30% 0.27% 0.29%: 0.51% 0.75% 1.00% 1.05%: 1.32% 1.71%
:2-Year U.S.T-Note 0.98% 0.88% 0.73% 0.77%: 1.20% 1.31% 1.34% 1.38%: 1.84% 2.27%
:Portfolio Benchmark' 0.32% 0.41% 0.49% 0.54%: 0.61% 0.69% 0.83% 1.00%: 1.20% 1.46%
:Portfolio Yield 0.72% 0.79% 0.81% 0.90%: 0.95% 1.07% 1.16% 1.25%: 1.29% 1.42%
-------------------------------
:'Twelve month moving average of a one year
:U.S.T-bill yield
FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18
3.00%
2.00% ®s
1.00% --
0.00%
Dec-Mar-Jun-Sep-Dec-Mar-Jun-Sep-Dec-Mar-Jun-Sep-Dec-Mar-Jun-Sep-Dec-Mar-Jun-Sep-Dec-Mar-Jun-Sep-
18 18 18
t Fed Funds -�3-Month T-Bill 2-Year T-Note Portfolio Yield Portfolio Benchmark`
I-----------------------------------------------------------------------------------------------------------------------------------------------J
Fiscal Year to Date Earnings
I-----------------------------------------------------------------------------------------------------------------------------------------------J
Oct-Dec Oct-Mar Oct-Jun Oct-Sep
: I-----------"----------------------------------"----------------------------------"-----------------------�----------------- - -- -------
:Fiscal Year: 3 Months 6 Months 9 Months 12 Months
' I----------------------------------'----------------------------------'-----------�-----------------------�----
;2017-2018 $ 2,138,420; :$ 3,771,703; $ - $ -
;2016-2017 $ 1,175,753; $ 2,763,136; $ 4,734,315; $ 6,999,226
:2015-2016 I$ 849,368 I I$ 1,771,205 I I$ 2,743,856 I I$ 3,961,971
:2014-2015 $ 613,879; $ 1,228,059; $ 1,874,847; $ 2,695,211
:2013-2014 ;$ 568,825; ;$ 1,121,491; ;$ 1,680,154; ;$ 2,298,785
:2012-2013 I
: I --$-------------6-1-2--,7-5--0- $ 1,177,337 $ 1,703,496 $ 2,276,341
----------- -----------= -----------= -----
QUARTERLY COMMENTARY
March 31,2018
I-----------------------------------------------------------------------------------------------------------------------------------------------"
Source: First Southwest Asset Management:
----------------------------------------The second quarter of FY18-19 was marked by rising interest rates.Jerome Powell became the new chairman for the Federal:
Economic Summary&TexSTAR Monthly :Reserve.The Federal Reserve raised the Fed Fund rate by 25 basis points on March 21,2018.This brings the fed funds:
Newsletter ;targeted range to 1.50-1.75%. Analysts are debating if there will be 2 or 3 more rate hikes in 2018.At this time the yield curve;
shows 2-year yields at 2.43%,while the 10-year yield is 2.92%.This 49 basis point spread is a big change from six months ago:
:at 79 basis points.Concerns of an inverted yield curve have risen as this has historically been an indicator of a future economic:
:downturn.Another major event occurred when President Trump announced$50 billion in tariffs on Chinese goods on March 22,;
:2018.
46
Monthly Reports
Portfolio Management Page 1
Portfolio Details - Investments
March 31, 2018
Average Purchase Stated YTM Days to Maturity
CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate 365 Maturity Date
Treasury Securities-Coupon
912828M64 3915 U.S.TREASURY 01/27/2017 7,000,000.00 6,966,911.00 7,002,751.86 1.250 1.186 228 11/15/2018
912828P53 3948 U.S.TREASURY 06/07/2017 10,000,000.00 9,882,810.00 9,956,108.42 0.750 1.258 320 02/15/2019
Subtotal and Average 16,956,983.90 17,000,000.00 16,849,721.00 16,958,860.28 1.228 282
Federal Agency Issues-Coupon
3133EGFQ3 3896 FFCB 06/27/2016 4,000,000.00 3,981,696.00 3,999,447.80 0.875 0.906 166 09/14/2018
3133EFX69 3897 FFCB 06/27/2016 4,000,000.00 3,980,836.00 4,001,160.68 0.960 0.902 187 10/05/2018
3133EGQY4 3908 FFCB 08/15/2016 10,000,000.00 9,962,890.00 9,997,022.22 0.800 0.881 136 08/15/2018
3133EG3A1 3922 FFCB 01/31/2017 8,000,000.00 7,999,760.00 8,000,033.13 1.040 0.990 3 04/04/2018
3133EG6Z3 3931 FFCB 02/13/2017 25,000,000.00 24,809,450.00 24,992,741.67 1.200 1.234 318 02/13/2019
3133EG2D6 3932 FFCB 02/16/2017 8,000,000.00 7,916,320.00 8,002,333.11 1.550 1.530 544 09/27/2019
3133EDPK2 3937 FFCB 02/22/2017 5,000,000.00 4,974,180.00 5,022,691.56 1.750 1.352 424 05/30/2019
3133EHEZ2 3959 FFCB 07/25/2017 6,000,000.00 5,911,128.00 6,007,257.47 1.600 1.538 736 04/06/2020
3133EJCA5 3976 FFCB 03/23/2018 5,000,000.00 4,976,280.00 4,972,886.54 2.150 2.416 768 05/08/2020
3130A8TF0 3906 FHLB 07/27/2016 5,000,000.00 4,978,445.00 4,998,592.82 0.800 0.876 136 08/15/2018
313379DT3 3917 FHLB 01/30/2017 24,000,000.00 23,976,336.00 24,007,512.79 1.250 1.080 68 06/08/2018
3130AARE0 3918 FHLB 01/30/2017 7,000,000.00 6,964,930.00 6,999,396.22 1.150 1.165 212 10/30/2018
3130A8PK3 3927 FHLB 02/02/2017 5,000,000.00 4,976,700.00 4,991,537.33 0.625 1.114 128 08/07/2018
3130AA3R7 3933 FHLB 02/16/2017 7,000,000.00 6,900,432.00 6,981,812.74 1.375 1.539 593 11/15/2019
3130AOJR2 3934 FHLB 02/16/2017 5,000,000.00 5,004,170.00 5,064,930.97 2.375 1.590 621 12/13/2019
3130AAXU7 3939 FHLB 03/08/2017 20,000,000.00 19,742,880.00 19,998,594.91 1.650 1.654 688 02/18/2020
3130ABAA4 3945 FHLB 04/26/2017 15,000,000.00 14,738,700.00 14,991,972.33 1.400 1.429 688 02/18/2020
3130ABM29 3951 FHLB 06/29/2017 15,000,000.00 14,766,075.00 15,000,000.00 1.500 1.500 688 02/18/2020
313378,177 3958 FHLB 07/25/2017 8,000,000.00 7,923,712.00 8,052,842.53 1.875 1.528 712 03/13/2020
3130AC2Q6 3973 FHLB 01/25/2018 5,000,000.00 4,940,765.00 4,951,273.56 1.450 2.072 586 11/08/2019
3133782M2 3975 FHLB 03/23/2018 5,000,000.00 4,970,190.00 4,969,572.32 1.500 2.160 341 03/08/2019
3134G9UY1 3894 FHLMC 06/29/2016 5,000,000.00 4,989,595.00 5,000,000.00 1.000 0.985 89 06/29/2018
3134G7TZ4 3925 FHLMC 02/02/2017 8,000,000.00 7,977,200.00 8,004,559.73 1.300 1.175 170 09/18/2018
3134G92H9 3928 FHLMC 02/02/2017 9,000,000.00 8,968,230.00 8,993,287.18 0.850 1.084 117 07/27/2018
3137EADZ9 3935 FHLMC 02/22/2017 5,000,000.00 4,946,745.00 4,990,662.10 1.125 1.308 379 04/15/2019
3134GA61-12 3938 FHLMC 02/28/2017 5,000,000.00 4,964,735.00 5,000,000.00 1.375 1.375 333 02/28/2019
3137EADR7 3960 FHLMC 07/25/2017 5,000,000.00 4,902,555.00 4,983,094.88 1.375 1.541 761 05/01/2020
3136G3XJ9 3903 FNMA 07/26/2016 5,000,000.00 4,920,635.00 5,000,000.00 1.000 1.000 481 07/26/2019
3135GOJ53 3904 FNMA 07/07/2016 10,000,000.00 9,895,200.00 10,021,952.05 1.000 0.754 331 02/26/2019
3136FTS67 3909 FNMA 08/30/2016 3,000,000.00 2,987,115.00 3,018,873.11 1.700 0.995 332 02/27/2019
3135GOJ53 3910 FNMA 08/30/2016 10,000,000.00 9,895,200.00 10,002,212.61 1.000 0.975 331 02/26/2019
3135GOWJ8 3923 FNMA 01/31/2017 5,000,000.00 4,994,190.00 4,998,962.77 0.875 1.026 50 05/21/2018
3135GOYM9 3926 FNMA 02/02/2017 2,000,000.00 1,998,904.00 2,006,640.10 1.875 1.150 170 09/18/2018
Portfolio CITY
Data Updated:SET-MO:05/02/2018 10:10 NLI AP
Run Date:05/02/2018-10:10
PM(PRF_PM2)7.3.0
Report Ver.7.3.5
47
Monthly Reports
Portfolio Management Page
Portfolio Details - Investments
March 31, 2018
Average Purchase Stated YTM Days to Maturity
CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate 365 Maturity Date
Federal Agency Issues-Coupon
3135GON33 3930 FNMA 02/08/2017 10,000,000.00 9,820,160.00 9,937,911.19 0.875 1.349 488 08/02/2019
3136G4MA8 3936 FNMA 02/28/2017 5,000,000.00 4,942,030.00 5,000,000.00 1.700 1.700 698 02/28/2020
3135GOT29 3942 FNMA 03/29/2017 5,000,000.00 4,924,530.00 4,991,256.96 1.500 1.594 698 02/28/2020
3135GOP49 3950 FNMA 06/14/2017 5,000,000.00 4,917,040.00 4,969,988.66 1.000 1.434 514 08/28/2019
3135GOR39 3971 FNMA 01/08/2018 10,000,000.00 9,802,660.00 9,848,181.73 1.000 1.993 571 10/24/2019
Subtotal and Average 305,840,323.48 303,000,000.00 300,242,599.00 302,771,195.77 1.330 405
Federal Agency Issues-Callable
3133EGEF8 3895 FFCB 06/22/2016 5,000,000.00 4,938,995.00 4,999,596.64 1.180 1.187 438 06/13/2019
3134GBVD1 3953 FHLMC 06/29/2017 6,000,000.00 5,897,340.00 6,000,000.00 1.625 1.625 820 06/29/2020
3134GBD82 3965 FHLMC 08/29/2017 4,950,000.00 4,840,535.70 4,950,000.00 1.625 1.625 880 08/28/2020
3136G4NZ2 3964 FNMA 08/29/2017 4,806,000.00 4,730,810.13 4,806,909.05 1.700 1.682 862 08/10/2020
Subtotal and Average 20,756,591.47 20,756,000.00 20,407,680.83 20,756,505.69 1.533 752
Municipal Bonds-Coupon
23542JBE4 3899 DALLAS,TX WTR&SWR REV BIDS 07/07/2016 4,000,000.00 3,929,400.00 4,000,000.00 1.217 1.217 548 10/01/2019
23542JBD6 3900 DALLAS,TX WTR&SWR REV BIDS 07/07/2016 6,000,000.00 5,967,600.00 6,000,000.00 0.985 0.985 183 10/01/2018
88213ADK8 3886 TX A&M UNIV REV BD 04/12/2016 3,500,000.00 3,496,290.00 3,500,000.00 1.222 1.222 44 05/15/2018
88213AFU4 3902 TX &M UNIV REV BD 07/20/2016 1,000,000.00 985,960.00 1,000,000.00 1.009 1.009 409 05/15/2019
Subtotal and Average 14,500,000.00 14,500,000.00 14,379,250.00 14,500,000.00 1.108 266
CDs-CDARS
SYS3890 3890 CD-CDARS 05/12/2016 7,000,000.00 7,000,000.00 7,000,000.00 1.317 1.317 39 05/10/2018
SYS3929 3929 CD-CDARS 02/09/2017 7,000,000.00 7,000,000.00 7,000,000.00 1.677 1.677 312 02/07/2019
SYS3940 3940 CD-CDARS 03/16/2017 10,000,000.00 10,000,000.00 10,000,000.00 1.626 1.626 347 03/14/2019
SYS3955 3955 CD-CDARS 07/20/2017 10,000,000.00 10,000,000.00 10,000,000.00 1.698 1.698 473 07/18/2019
SYS3961 3961 CD-CDARS 08/10/2017 10,000,000.00 10,000,000.00 10,000,000.00 1.698 1.698 494 08/08/2019
SYS3966 3966 CD-CDARS 09/14/2017 5,000,000.00 5,000,000.00 5,000,000.00 1.523 1.523 529 09/12/2019
Subtotal and Average 49,000,000.00 49,000,000.00 49,000,000.00 49,000,000.00 1.608 372
CDs-SLOC
SYS3944 3944 CD-INDEPENDENT BANK 04/13/2017 10,000,000.00 10,000,000.00 10,000,000.00 1.623 1.623 375 04/11/2019
SYS3974 3974 CD-INDEPENDENT BANK 02/08/2018 5,000,000.00 5,000,000.00 5,000,000.00 2.295 2.295 676 02/06/2020
SYS3887 3887 CD-LEGACYTEXAS BANK 04/07/2016 7,000,000.00 7,000,000.00 7,000,000.00 1.300 1.300 4 04/05/2018
SYS3892 3892 CD-LEGACYTEXAS BANK 06/16/2016 10,000,000.00 10,000,000.00 10,000,000.00 1.380 1.380 74 06/14/2018
SYS3905 3905 CD-LEGACYTEXAS BANK 07/21/2016 10,000,000.00 10,000,000.00 10,000,000.00 1.350 1.350 109 07/19/2018
SYS3907 3907 CD-LEGACYTEXAS BANK 08/11/2016 10,000,000.00 10,000,000.00 10,000,000.00 1.320 1.320 130 08/09/2018
SYS3946 3946 CD-LEGACYTEXAS BANK 05/11/2017 10,000,000.00 10,000,000.00 10,000,000.00 1.677 1.677 403 05/09/2019
Portfolio CITY
Data Updated:SET_MO:05/02/2018 10:10 NL!AP
Run Date:05/02/2018-10:10 PM(PRF_PM2)7.3.0
48
Monthly Reports
Portfolio Management Page 3
Portfolio Details - Investments
March 31, 2018
Average Purchase Stated YTM Days to Maturity
CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate 365 Maturity Date
CDs-SLOC
SYS3949 3949 CD-LEGACYTEXAS BANK 06/15/2017 15,000,000.00 15,000,000.00 15,000,000.00 1.676 1.676 438 06/13/2019
Subtotal and Average 77,000,000.00 77,000,000.00 77,000,000.00 77,000,000.00 1.548 271
Commercial Paper Disc.-Amortizing
4497W 1 DJ2 3969 ING(U.S.)FUNDING LLC 12/20/2017 5,000,000.00 4,994,795.00 4,996,080.56 1.660 1.692 17 04/18/2018
4497W1GG5 3972 ING(U.S.)FUNDING LLC 01/18/2018 5,000,000.00 4,965,815.00 4,972,616.66 1.860 1.903 106 07/16/2018
46640QDJ7 3963 JP MORGAN SECURITIES LLC 08/23/2017 5,000,000.00 4,994,795.00 4,996,505.56 1.480 1.542 17 04/18/2018
46640QEF4 3967 JP MORGAN SECURITIES LLC 10/17/2017 6,000,000.00 5,984,088.00 5,988,486.67 1.570 1.625 44 05/15/2018
89233HE75 3968 TOYOTA MOTOR CREDIT 11/15/2017 7,000,000.00 6,985,783.00 6,989,430.00 1.510 1.542 36 05/07/2018
89233HDT8 3970 TOYOTA MOTOR CREDIT 12/28/2017 8,000,000.00 7,988,248.00 7,990,293.33 1.680 1.713 26 04/27/2018
Subtotal and Average 38,166,536.21 36,000,000.00 35,913,524.00 35,933,412.78 1.665 40
Local Govt Investment Pools
SYS3641 3641 LOCAL GOVT INV POOL-TEXSTAR 58,324,171.85 58,324,171.85 58,324,171.85 1.490 1.490 1
Subtotal and Average 62,275,784.75 58,324,171.85 58,324,171.85 58,324,171.85 1.490 1
Insured Cash Sweep Savings Deposits
SYS3962 3962 INSURED CASH SWEEP SAVINGS 25,000,000.00 25,000,000.00 25,000,000.00 1.550 1.550 1
Subtotal and Average 25,000,000.00 25,000,000.00 25,000,000.00 25,000,000.00 1.550 1
Demand Deposits
SYS3706 3706 DEMAND DEPOSITS- WELLS FARGO 7,935,813.73 7,935,813.73 7,935,813.73 0.800 0.800 1
Subtotal and Average 2,679,736.97 7,935,813.73 7,935,813.73 7,935,813.73 0.800 1
Total and Average 612,175,956.78 608,515,985.58 605,052,760.41 608,179,960.10 1.416 309
Portfolio CITY
Data Updated:SET_MO:05/02/2018 10:10 NL!AP
Run Date:05/02/2018-10:10 PM(PRF_PM2)7.3.0
49
Monthly Reports
Portfolio Management Page 4
Portfolio Details - Cash
March 31, 2018
Average Purchase Stated YTM Days to
CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate 365 Maturity
Average Balance 0.00 0
Total Cash and Investments 612,175,956.78 608,515,985.58 605,052,760.41 608,179,960.10 1.416 309
Portfolio CITY
Data Updated:SET MO:05/02/2018 10:10 NL!AP
Run Date:05/02/2018-10:10
PM(PRF_PM2)7.3.0
50
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Street Reconstruction by City of Denton Street Department
51
Section 5
City of Denton
Quarterly Financial Report
March 2018
PERFORMANCE REPORT
52
The City of Denton uses a Strategic Plan as a roadmap to achieve long-term goals and objectives that
capture the City's Vision, Mission, and Value statements. The first Strategic Plan was formally
approved by the City Council in April 2011, and it has been updated periodically since that time.Over
the past year, the City has partnered with the Bloomberg What Works Cities initiative to refine our
strategic outcomes and identify measurable ways to mark our progress. The City Council approved
the FY 2017-18 Strategic Plan and associated performance measures on September 19, 2017.
The Strategic Plan serves as the basis for resource allocation decisions that are used in the
development of the FY 2017-18 Budget. The Strategic Plan is organized into five Key Focus Areas
(KFAs) and major goals associated with each KFA are also identified below.
Goal 1.1 Manage financial resources in a responsible manner.
Goal 1.2 Develop a high-performance work force.
Goal 1.3 Promote effective internal and external communication.
Goal 1.4 Achieve high level of customer satisfaction.
Goal 1.5 Utilize technology to enhance efficiency and productivity.
Goal 1.6 Collaborate with local,regional,state,and federal partners.
Key Focus Area 2:Public Infrastructure
Goal 2.1 Optimize resources to improve quality of City roadways.
Goal 2.2 Seek solutions to mobility demands and enhance connectivity.
Goal 2.3 Promote superior utility services and facilities.
Goal 2.4 Manage drainage infrastructure.
Goal 2.5 Develop Capital Improvement Program(CIP)based on community needs.
1
Goal Developtargeted policies and incentives to achieve desired economic growth.
Goal 3.2 Make Denton a destination for visitors.
Goa13.3 Promote a business-friendly environment.
Goal 3.4 Encourage development,redevelopment,recruitment,and retention.
Goal 4.1 Enhance public safety in the community.
Goal 4.2 Seek clean and healthy neighborhoods in Denton.
Goal 4.3 Provide quality,diverse,and accessible neighborhood services for the community.
Goal 4.4 Provide and support outstanding leisure,cultural,and educational opportunities.
Goal 4.5 Provide support to citizens in need through social service agencies and programs.
Goal 5.1 Manage Denton's water resources.
Goal 5.2 Improve air quality and greenhouse gas management.
Goal 5.3 Improve energy efficiency and conservation.
Goal 5.4 Manage land use and preserve open/natural s aces.
Goal 5.5 Provide alternative modes of transportation.
Goal 5.6 Promote sustainable materials resource management.
Goal 5.7 Encourage local food production.
53
The matrix below organizes the Key Focus Areas (KFAs) by select service areas in the organization.
While every department has some level of responsibility for each KFA,the matrix is intended to only
highlight the primary departments responsible for each KFA.
UTILITIES
Electric ✓
Water ✓ ✓ ✓ ✓
Wastewater ✓ ✓
Solid Waste ✓
INTERNALSERVICES
Technology Services ✓
Materials Management ✓
Fleet ✓ ✓
Risk ✓
111 '
Building Inspection ✓ ✓ ✓
Community Improvement Services ✓
Libraries ✓
Parks and Recreation ✓
Planning ✓ ✓ ✓
Gas Well Operations ✓
CommunipZ Development ✓
PUBLIC SAFETY
Animal Services ✓
Fire ✓
Police ✓
Municipal Court ✓
TRANSPORTATION
Airport ✓
Streets ✓
Traffic Trans 9
ortation ✓ ✓
City Manager's Office ✓
Economic Development ✓
Facilities Management ✓
Finance ✓ ✓
Human Resources ✓
Internal Audit ✓
Legal ✓
Public Communications ✓
OrganizationalKey Focus Area 1:
Key Focus Area 2:Public Infrastructure
l'y Focus Area 3: Economic Development
ey Focus Area 4:Safe,Liveable and Family-Friendly Community
1116LFocus Area 5:Sustainable&Environmental Stewardship
54
STRATEGIC PLAN
PERFORMANCE REPORT 2017 - 18
City of Denton, Texas
A visual representation of performance measures can be found on the City of Denton website:
http://data.cityofdenton.com/showcase/strategic-measures
55
STRATEGIC PLAN PERFORMANCE DASHBOARD 2017-18
KEY FOCUS AREA DEPARTMENT STRATEGIC PLAN PERFORMANCE MEASURES TARGET 2ND QTR
PERCENTAGE OF FIRST CONTACT RESOLUTION FOR CUSTOMERS 85% 97.2%
CUSTOMER SERVICE PERCENTAGE OF BILLING ACURACY 99% 99.9%
PERCENTAGE OF PAYMENTS PROCESSED VIA ONLINE SELF-SERVICE 55% 62.3%
PUBLIC PERCENTAGE OF CITIZENS RATING THE CITY WEBSITE AS A MAJOR SOURCE OF INFORMATION 65% 60%
ORGANIZATIONAL COMMUNICATIONS NUMBER OF FOLLOWERS ACROSS ALL CITY SOCIAL MEDIA SITES 165,000 203,962
EXCELLENCE PERCENTAGE OF ACTUAL GENERAL FUND REVENUE COMPARED TO BUDGETED REVENUE 100% 101.4%
PERCENTAGE OF ACTUAL GENERAL FUND EXPENDITURES AS COMPARED TO BUDGETED
FINANCE EXPENDITURES <100% 91.9°%a
ANNUAL RATE OF INVESTMENT RETURN 1.25% 1.41%
ENGINEERING PERCENTAGE OF BOND FUNDED PROJECTS COMPLETED 85% 10%
LANE MILES OF ASPHALT ROADWAY RECONSTRUCTED 12 5.46
LANE MILES OF ASPHALT ROADWAY OVERLAID 15 6.36
INFRASTRUCTURE STREETS LANE MILES OF ASPHALT ROADWAY MICRO-SEALED 45 0
MILES OF SIDEWALK RECONSTRUCTED 2 2.85
AIRPORT NUMBER OF ACRES OF AIRPORT LAND NEWLY LEASED 7 0
NUMBER OF RFP'S RETURUNED IN TARGET INDUSTRY SECTORS 20 11
NUMBER OF WORKFORCE DEVELOPMENT ACTIVITIES OR GRANTS FACILITATED 12 31
• • ECONOMIC NUMBER OF DOWNTOWN PROPERTIES REDEVELOPED 6 6
DEVELOPMENTDEVELOPMENT NUMBER OF BUSINESS RETENTION VISITS IN THE DOWNTOWN AREA 24 7
NUMBER OF BUSINESS RETENTION VISITS IN AREAS OTHER THAN DOWNTOWN 48 17
POLICE PERCENT OF RESOLVED NEIGHBORHOOD COMPLAINTS 75% 100%
PERCENT OF ACTIVE STRUCTURE FIRES RESPONDED TO IN FIVE MINUTES OR LESS(NFPA 1710
STANDARD IS 90 PERCENT OR LESS THAN FOUR MINUTES) 90% 40.0%
LIVEABLE, FIRE AVERAGE UNIT TURN-OUT TIME(TIME FROM WHEN A 911 DISPATCH IS RECEIVED TO WHEN
AND FAMILY-FRIENDLY UNITS ARE EN ROUTE) 1.20 1.14
COMMUNITYPARKS NUMBER OF SPECIAL EVENTS HOSTED BY THE PARKS&RECREATION DEPARTMENT 8 5
NUMBER OF INDIVIDUALS REACHED BY THE DENTON PUBLIC LIBRARY"DPL2GO"OUTREACH
LIBRARY SERVICE 5,000 7,853
NUMBER OF"DPL2GO"OUTREACH EVENTS 60 77
SOLID WASTE POUNDS OF WASTE DISPOSED PER CAPITA 1,900 864
MILES OF ON-STREET BIKE INFRASTRUCTURE,SUCH AS BIKE LANES AND SHARROWS,ADDED
ENGINEERING DURING FISCAL YEAR 2017-18 7 2.3
AND ••NMENTAL NUMBER OF TRANSPORTATION SAFETY EDUCATIONAL OPPORTUNITIES AND EVENTS 11 3
STEWARDSHIP ENVIRONMENTAL NUMBER OF SUSTAINABILITY RELATED WORKSHOPS HOSTED BY THE CITY 35 18
SERVICES PERCENT OF GREENSENSE REBATE FUNDING EXPENDED 100% 16%
56
STRATEGIC PLAN
WORK PLAN REPORT 2017 - 18
City of Denton, Texas
STRATEGIC PLAN - WORK PLAN DASHBOARD 2017-18
� •
Implement online payment and citizen service request systems Dec 2017 Implementation has begun and the application launch is
expected in mid-June.
The City has continued production of the bimonthly Resident
Launch a bi-monthly newsletter for citizens and stakeholders Dec 2017 Update.Past issues can be found at
https://www.cityofdenton.com/en-us/stay-updated under
Important Documents.
Expand open data initiatives and improve citizen access to information Sep 2018 There are currently 171 total datasets available at
http://data.cityofdenton.com.
Developing an alternative strategy to identify performance
•' • City Manager Office Hold regular performance management meetings with departments and Sep 2018 measures that will provide greater clarity into the City's various
executive team
operations and be a more effective tool for management staff.
A dashboard of the City's performance related to strategic plan
Offer key indicators of the City's performance through an online Dec 2017 measures is located at
dashboard http://data.cityofdenton.com/base/strategic-performance-
measures
Staff has been working to update these policies and procedures.
Evaluate purchasing and contract management policies and procedures Jun 2018 A draft policy is expected to go before council during Quarter 2.
Complete 80%of construction on the new West Parallel Runway Sep 2018 Environmental Assessment approval delayed,approval
Airport I
anticipated in Q3.
Complete the Airport Business Plan Update Sep 2018 Compliance review completed.Development of Airport Guiding
4 Documents to begin in Q3.
Engage a consultant to assist with review of railroad crossings in the city, Plans,estimate,design and agreement have been proposed and
Traffic as well as possible Quite Zones Sep 2018 requested from UPRR for the Downtown segment.The
INFRASTRUCTURE I southern section information will follow this summer.
InComplete 85%of scheduled street improvement projects for Fiscal Year Sep 2018 Completed*31%of the planned projects.*Cumulative Total
2017-18
Second quarter production was lower than anticipate do to
Capital Projects several rain events.The Street Department completed 12 Bond
Complete the 2012 and 2014 bond programs for street improvements Sep 2018 segments during Second Quarter and 10 segments in the first
month of the Third Quarter.
Actively recruit prospects from target industries,as identified by the
Economic Development returned 9 request for proposal
Econ Development Economic Development Partnership Board Sep 2018 responses in Q2,which brings the total to 11,or 55%of the
FY17-18 target.
The Department continues to improve communication
ECONOMIC applicants by building a relationship early and keeping the
DEVELOPMENT Development Implement recommendations to improve the development review and Dec 2017 applicant in the loop throughout the development review
building inspections processes process. Projects continue to be reviewed and comments are
Services g p p sent out within the published timeline. In the event when
comments require clarification,staff responds in a timely
matter and will coordinate a solutions meeting.
58
STRATEGIC PLAN - WORK PLAN DASHBOARD 2017-18
FOCUSKEY • QUARTERTARGET nd
DATE
During this Quarter the Development Services started their
Public Open Houses to receive feedback on the Denton
Complete the Denton Code 2030 Update June 2018 Development Code Update Public Draft and Draft Zoning Map
from property owners,business owners,and other
stakeholders. Staff has also started meeting and presenting the
• 3:ECONOMIC Development Public Draft and Draft Zoning Map to the Development Code
DEVELOPMENT Services Updates to the Water,Wastewater,Storm Drainage and
Transportation Criteria Manuals have been completed and
Complete updates to building standards and design policies under the formally adopted.Updates to the Water,WW,Storm Drainage
City's Site Design Criteria Manual and related documents June 2018 and Transportation sections of the DDC have been drafted and
issued for public review and comment.ETA for adoption is
September 2018.
The plans for the remodel are complete. Purchasing should
Complete remodel of the Public Safety Communications Center Sep 2018 have a RFQ out soon. The construction start date should be in
August 2018.
Public Safety
Purchase and implement a new Computer Aided Dispatch(CAD)system
to upgrade technology and improve public safety response,data and June 2018 Police,Fire and Technology Services are currently meeting to
records score the proposals.
Station Alerting is a multi-year strategy with US Digital Designs.
Implement an Automatic Fire Station Alerting System Sep 2018 Equipment has been recevied for Stations:1,4,5,6,and 8.
Installation is currently in process,and funding for Station 7 will
be a supplemental funding request for the FY 18-19 Budget.
Fire
KFA 4-SAFE LIVEABLE
' • • Add on Fire Medic unit in the Northeast Denton area June 2018 The Medic unit at Station 4 is in service.
• The construction is in the final phase of completion,and will be
March 2018 open in May 2018,additionally a station dedication is planned
Complete construction of Fire Station#4 for June 2018.
Use GIS mapping to determine population distribution in relation to City
Sep 2018 Staff is working with GIS to provide maps.
Parks recreational amenities
Implement recommendations from Denton Parks playground Bids were accepted on 4/17/18.Playground designs are under
replacement plan Sep 2018 final review.Scheduled completion is August 2018.
Mayor and Council member and CD staff contributed in
partnership in Denton County Homeless Leadership Team(HILT)
meetings and planning sessions.City Staff contributed in
Community Continue partnership with the Denton County Homeless Leadership partnership a minimum of 108 hours through HLT Housing and
team to collect and analyze data on housing and service needs Sep 2018 Data Workgroups meetings and activities to collect and analyze
Development Y g data on housing and service needs.The City reimbursed$8,050
for Homeless Management Information System database
supporting 22 licenses for 10 agencies,up three from the
previous quarter.
59
STRATEGIC PLAN - WORK PLAN DASHBOARD 2017-18
FOCUSKEY • QUARTERTARGET nd
DATE
During this Quarter the Development Services started their
Public Open Houses to receive feedback on the Denton
Development Code Update Public Draft and Draft Zoning Map
Sep 2018 from property owners,business owners,and other
. , LIVEABLE Develop a comprehensive public education program to educate stakeholders. The Department continues to refine and finalize
offirmsDevelopment residents on code requirements the comprehensive public education program.
COMMUNITY Services The Department has hosted and attend numerous special
events neighborhood meetings engaging with the community,
Engage homeowner's associations and neighborhod groups to improve Sep 2018 sharing information on neighborhood empowerment programs
neighborhoods through code compliance and providing details and seeking feedback on the Denton
Development Code Update and Draft Zoning Map.
At the end of the second quarter,the Denton Energy Center
(DEC)is approximately 98%complete. The facility has entered
the performance testing phase of the project,which is
scheduled to continue through spring 2018. Approximately
Electric Complete construction of the Denton Engergy Center Sep 2018 79%of allocated project funds have been expended. The target
date for commercial operations remains on or before July 1st
with ERCOT approval. All of the plant systems have been fully
commissioned,and the plant has demonstrated the ability to
generate 225 MW of electricity. Performance and emissions
testing continues through May 2018.
The construction of the new landfill cell is complete.Staff is
Solid Was Complete construction of Cell 3 to expand capacity at the landfill Sep 2018 awaiting approval from TCEQ before initiating waste operations
•LE in the cell.
AND EVIRONMENTAL
Staff has conducted an online survey and held community
STEWARDSHIP meetings to gather input from citizens.Feedback has been
Environmental compiled and will be presented to community for review next
Engage the community and update the City's 2012 Sustainability Plan March 2018 Services quarter. Community and Internal stakeholder feedback will be
presented to the Committee on the Environment this summer
and the new plan will be drafted accordingly.
DME continues moving forward with the City Council's
approval by resolution,of the Denton Renewable Resource Plan
Review the City's renewable energy portfolio and present options to DRRP'.With existing portfolio resources of solar and wind,
Electric Dec 2017 ongoing review of RFP responses with a view to an award and
increase renewable energy future solicitations identified in DRRP,Denton's renewable
portfolio continues advancing towards its accelerated goal of
100%by the 2020 timeframe.
60
K_ �
Date: June 29, 2018 Report No. 201 8-080
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT: Illegal Land Uses
EXECUTIVE SUMMARY:
Zoning Enforcement (ZE) is a program in the Department of Development Services. ZE officers
are responsible for ensuring land uses are in compliance with the City's zoning ordinances. These
officers conduct extensive research to determine the history of a use and the applicable zoning
regulations and work closely with property owners, individual citizens, and businesses on an as-
needed basis to bring illegal uses in compliance.
BACKGROUND:
At a recent meeting, City Council inquired about how illegal land uses are handled and what
enforcement actions the City takes in these cases. Below is a discussion and general overview of
how the City's ZE officers handle cases of illegal land use.
DISCUSSION:
With regard to issues of illegal land use, ZE employs several steps to gain compliance. Voluntary
compliance is the desired result, and ZE officers make every effort to gain compliance through
personal contact and education related to City ordinances. Voluntary compliance can mean one of
four things: 1) Cessation of the illegal use; 2) Application for a Specific Use Permit (SUP) to
continue the use, if this is a permitted option under the applicable zoning district; 3) Application
to rezone the subject property to allow for the use; or 4) Relocation of the use (business) to a
property with a zoning district that allows the use.
In most cases concerning illegal land use, the use is a business-related activity, though there are
occasions where the use is conducted by an individual citizen on private residential property. In
many instances, cases of illegal land use are derived from a citizen complaint.
When ZE receives a complaint, much preliminary research is conducted before an officer makes
face-to-face contact with a citizen/business. ZE officers research the current and historical zoning
of the property, as this affects enforcement options. Certain properties have legal non-conforming
status that in effect"freezes"the use of the property—even if that use does not comply with current
zoning ordinances.
Additionally,the annexation of property into the City can limit the ordinances that can be enforced.
When a property is annexed, the City essentially agrees to take annexed properties "as is," so
existing uses on these parcels are not subject to conforming to current zoning ordinances. ZE
officers have annexation maps that are reviewed before proceeding with any actions; these maps
detail when certain parcels were annexed into the City.
Once the applicable zoning regulations are determined, ZE officers research the Denton
Development Code (DDC)to determine allowable uses for the zoning. Often, a SUP is required in
Date: June 29, 2018 Report No. 201 8-080
order for a citizen/business to continue their use. ZE officers consult appropriate staff in the
Planning Department to ensure that their conclusions regarding the need for a SUP are correct
before making contact with the citizen. In other cases where an SUP is not applicable, a rezoning
may be appropriate to permit the use. At this stage in the preliminary research, officers then
research Development Services records for Certificates of Occupancy(COs)for any businesses on
the parcel, along with any other documentation relating to said businesses.
After preliminary research is complete, ZE officers attempt to make in-person contact with the
citizen/business owner. Officers explain the nature of the complaint and the zoning regulations. If
a SUP is required or a rezoning is appropriate in order for the citizen/business to continue the use,
officers explain this process and provide contact information for all relevant parties. A notice and
order is issued to the citizen/business owner; this order details all of the information that has been
explained verbally and provides a timeline for the citizen/business to gain compliance. The notice
and order is not a citation, but the citizen/business owner is asked to sign the order and are then
given a copy of the order.
After the allotted time provided by the notice and order,ZE officers conduct follow-up inspections.
Officers check the property to determine if the citizen/business has ceased the illegal land use. In
cases where a SUP or rezoning is required in order to continue the use,officers consult appropriate
staff and departmental software to check for SUP or rezoning application. If application has been
made, ZE officers continue to monitor the progress of the application to ensure that the permit
application does not stagnate. If the citizen/business owner has not 1) ceased the illegal land use,
2) applied for a SUP(where applicable), or 3) submitted application to rezone the property,the ZE
officer makes final contact to offer an extension and additional resources to gain compliance.
At this stage, if the citizen/business has not made reasonable attempts to gain compliance, ZE
officers have two additional methods to gain compliance: A court summons and/or issuing the
citizen/business owner a citation. If a friendly rapport exists between the officer and the other
party, a citation can be issued. If the situation is more delicate, a court summons is often the best
solution. To obtain a summons, an officer constructs a probable cause affidavit for summons,
which is reviewed by the municipal court judge. After the judge reviews all the documentation —
and finds merit for the summons—a summons is issued through the municipal court. The defendant
is brought to court to enter their plea and/or pay their fine. If the defendant wishes to pursue a trial,
the ZE officer is responsible for working with the prosecutor to provide him/her with all relevant
information. If the defendant pays the fine, this does not absolve the defendant of the continued
illegal land use. In this circumstance, ZE officers would continue to monitor the property and cite
the citizen/business owner daily for the continued illegal land use, essentially forcing a court
appearance by the defendant to establish a plan to gain compliance.
CONCLUSION:
The City's Zoning Enforcement division is charged with bringing illegal land uses into compliance
with the City's zoning ordinance. There are multiple methods by which an illegal use can become
compliance with the zoning regulations, as outlined above. Every illegal land use case is unique
and requires extensive research and coordination between the ZE officers and the citizen/business
owner. Further information on this topic can be provided to the Council upon request.
Date: June 29, 2018 Report No. 201 8-080
STAFF CONTACT:
Scott A. McDonald, Director of Development Services
Scott.McDonaldLcitvofdenton.com
(940)349-8539
Date: June 29, 2018 Report No. 201 8-081
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Federal Aviation Administration Environmental Approval of Parallel Runway Project
EXECUTIVE SUMMARY:
On June 28, 2018, the Federal Aviation Administration (FAA)provided the approved Finding of
No Significant Impact (FONSI) and Record of Decision (ROD) for the parallel runway project.
TxDOT will begin formal procurement process next week for a construction contractor.
Construction is anticipated to begin in late September or early October and be completed in July
2019.
BACKGROUND:
The Parallel Runway project includes the construction of a 5,000' x 75' runway with a weight
bearing capacity of 30,000 pounds. This project provides for enhancements to the existing and
future airport capacity and to have the ability to accommodate larger midsize corporate aircraft
on this runway. Furthermore, the auxiliary runway can assist in maintaining operational capacity
of the Airport when the primary runway is down for maintenance or during incidents on the
primary runway.
The total estimated cost is $8.5M (Texas Department of Transportation—Aviation Division
(TxDOT) - $5.9M, Denton- $2.6M). The City's amount includes the 85:15 (State:Local split) for
the TxDOT funded portion of the runway and the enhanced scope at 100-percent local cost. A
wire transfer to TxDOT in the amount of$2,300,528 was completed in March 2018. The TxDOT
amount is capped at$5.9M and the City will be responsible for any cost overruns on this project.
If necessary, TxDOT will make formal requests for additional City funding for any approved
change orders.
DISCUSSION:
On June 28, 2018, the Federal Aviation Administration (FAA)provided the approved Finding of
No Significant Impact (FONSI) and Record of Decision(ROD) for the parallel runway project.
As a result, TxDOT will begin the formal procurement process for the selection of a construction
contractor in the next week. TxDOT anticipates the following timeline:
• Project to advertise in early July for 30 days, followed by a contractor selection process
of 45 days.
• Mobilization and start of construction to begin by the end of September or early October.
• The nine month project is anticipated to be completed in July 2019.
CONCLUSION:
Upon completion, the new 5,000' x 75' runway with a weight bearing capacity of 30,000 pounds
will provide for enhancements to the existing and future airport capacity and to have the ability to
Date: June 29, 2018 Report No. 201 8-081
accommodate larger midsize corporate aircraft on this runway. Furthermore,the auxiliary runway
can assist in maintaining operational capacity of the Airport when the primary runway is down for
maintenance or during incidents on the primary runway.
STAFF CONTACT:
Scott Gray
Airport Manager
Scott.Gray@cityofdenton.com
940-349-7744
Revision Date
06/29/2018
Council Requests for Information
Request Request Date Staff Responsible Status
1. Solid Waste cost of service information including 6/5/17 Cox Information will provided in the
curb rate vs. drop-off rate at landfill Solid Waste Cost of Service work
session presentation scheduled for
July 17.
2. TWU master plan and how trees are impacted; Can 5/1/18 McDonald TWU will give a brief presentation
trees be saved and protected; next steps on their Master Plan during the
August 21 work session.
3. ISR on leaf trucks (potential use and budget) 5/8/18 Cox Staff is researching and expect to
have an ISR prepared by July 6.
4. Work session on downtown and homelessness, review 3/20/18 and Kuechler/Shaw A work session is scheduled for July
of options to address shortfall of emergency housing 5/15/18 17.
before winter comes, set numerical goals and timing
targets.
5. Work session on proposed permitting processes for 5/15/18 McDonald Information will be provided during a
businesses under the new DDC. Benchmark against work session in August.
other similar cities such as Carrollton or McKinney.
6. Work session on Council appointed ad hoc 5/22/18 Leal A work session is planned for July
committees and adherence to TOMA 17.
7. Work session focused on downtown development to 6/4/18 Booth/Puente/McDonald A work session is planned for August
include an update on downtown master plan, a 7.
complementary master plan for PEC 4 area, and an
overview of current uses and potential expansion of
the Downtown Reinvestment Grant Fund.
8. Information on what electric rates would be if we did 6/4/18 Morrow/Puente Staff will provide this information in
not have the DEC and how the DEC impacts rates the Jul 6 Friday Report.
9. Work session on the status of Quiet Zone 6/12/18 Deshmukh/Nelson ISR was included in the June 15
establishment. Friday report. A work session is
scheduled for August 14.
10. ISR on sales tax including allowable uses of our 1%, 6/12/18 Puente Staff is researching and will have an
options for the transportation%, and property tax ISR prepared by July 6.
relief.
11. Work Session about the Employ to Empower program 6/19/18 Kuechler/Shaw A work session is planned for August
including an overview of programs from other 7.
communities.
Request Request Date Staff Responsible Status
12. Provide an update on the reverse angle parking pilot 6/19/18 Deshmukh/Howell Information will be provided in the
on Hickory including enforcement measures for July 6 Friday report.
vehicles that park incorrectly. Revisit safety measures
that were initially considered to ensure they are being
enforced.
13. Information on options to address and beautify the 6/19/18 Deshmukh Information is provided the June 29
abandoned right turn lane on the southwest corner of Friday report.
I-35 and University Drive near Ra zor Ranch.
14. Create a citizen engagement page on the City's 6/19/18 Rogers Information is provided in the June
website that provides information on how residents 29 Friday report.
can become involved in local government and contact
elected officials.
15. Present information from recent media coverage 6/19/18 Banks/Leal/ A work session is scheduled for
concerning health risks associated with proximity to McDonald/Cannone August 6 luncheon.
gas wells in the in the August Gas Well Inspection
Annual Report.
16. Identify a central location on the website for residents 6/19/18 Rogers Information is provided in the June
to find contact information for members of Boards & 29 Friday report.
Commissions.
17. Information on installation costs to add onboard 6/26/18 Cox/Kader Information is provided in the June
scales to Solid Waste vehicles to keep them from 29 Friday report.
running overweight.
18. Work session on the San Antonio legal services 6/26/18 Leal Staff is currently researching.
model, including the feasibility of partnering with Information will be provided during
non-profit agencies to provide information on renter an August or September work
rights, immigration services, and veteran services. session.
19. Work session on ways to improve the City's 6/26/18 Kuechler Information will be provided during
Municipal Equality Index score, including an update the August 14 work session.
to the City's antidiscrimination policy.
20. Work session on implementing a similar program to 6/26/18 McDonald/Birdseye/Leal Staff is currently researching.
Southlake's SPIN program in Denton. Information will be provided during
an August or September work
session.
21. Schedule group TOMA training for the full City 6/26/18 Leal Staff is researching facilitators with a
Council using an outside facilitator, consider using goal of scheduling the training for
the Freedom of Information Foundation. September.
Request Request Date Staff Responsible Status
22. Information on red light camera ticket enforcement. 6/26/18 Howell Information will be provided in the
July 6 Friday report.
23. Coordinate with Embassy Suites on a Day of the Dead 6/26/18 Booth Information will be provided in the
partnership. July 6 Friday report.
24. Work session on permitting options to incentivize 6/26/18 McDonald/Wood Information will be provided during a
affordable housing including a survey of practices work session in August.
from other municipalities.
25. Information on alternatives to the current code names 6/26/18 Leal Information will be provided during a
used during closed sessions including the implications work session in August.
of each option.
26. Work session providing an overview of the City's 6/26/18 Rosendahl/Kuechler Information will be provided during a
Smoking Ordinance. work session in August.
27. Overview of the emissions permitting process, 6/26/18 Morrow/Banks Information will be provided in the
including the number of hours the DEC can operate July 6 Friday Report.
and the methodology used to determine those limits.
28. Information on factors impacting air quality in Denton 6/26/18 Morrow/Banks Information will be provided in the
including a comparison of DEC emissions to other July 6 Friday Report.
sources such as DFW Airport.
Sunday Monday Tuesday Wednesday Mursday Friday Saturday
1 2 3 4 5 6 7
No Council Luncheon No Council Meeting 41h of July - 4 p.m. Public Art 11.00 Development
1:30pm Committee on the City Holiday Committee Code Review
Environment-Cancelled
5:3 0p m Traffic Sa fe ty
Commission
Park Board 6pm
8 9 10 11 12 13 14
9:00am Public Utilities No Council Meeting 11:00am EDP Board 11:00 Development
Board Code Review
5:00pm P&Z Work
5:30pm HLC Session
6:30pm P&ZRegular
Se ssio n
15 16 17 18 19 20 21
2:00 pm CC Work 11:30am Mobility HaBSCo Meeting 11:00 Development
Session Committee Code Review
6:30 pm CC Regular
Session
22 23 24 25 26 27 28
6:00pm Public Utilities 10:00am Council 12:00 Downtown TF 11:00 Development
Board Airp o rt C o mm itte e Code Review
5:00pm P&ZWork
2:00 pm 4th Tuesday Session
Session 6:30pm P&ZRegular
Se ssio n
29 30 31
No Council Meeting
4:00pm7BA
6/28/2018 4:14 PM
August •
Sunday Monday Tuesday Wednesday 'hursday Friday Saturday
1 2 3 4
8:30 am Council
Budget Workshop
4 p.m. Public Art
Committee
5 611:30 am Council 7 8 9 10 11
Luncheon 2:00 pm CC Work 11:00am EDP Board
1:30pm Committee on Session
the Fnvironment 6:30 pm CC Regular 5:00pm P&ZWork
5:30pm Traffic Safety Session Session
Commission 6:30pm P&ZRegular
ParkBoard 6 p m Session
12 13 14 15 16 17 18
9:00am Public Utilities 2:00 pm 2nd Tuesday 11:30am Mobility
Board Session Committee
Ha BSC o Meeting
5:30pm HLC
19 20 21 22 23 24 25
2:00 pm CC Work 5:00pm P&Z Work 8:00am City
Session Se ssio n Council Re tre a t
6:30 pm CC Regular 6:30pm P&ZRegular Iocation'IBD
Se ssio n Se ssio n
26 27 28 29 30 31
6:00pm Pub he Utilities 10:00am Council
Board Airport Committee
4:00 pm ZBA 2:00 pm 4th Tuesday
Session
6/28/2018 4:14 PM
6/26/18
FUTURE CITY COUNCIL ITEMS
Note: This is a working draft of pending Council items and is subject to Chan a without notice.
Meeting Date Deadlines Item
Jul 2—No Luncheon
Jul 3 —No MeetingJul 4t holida observed—City Offices closed
July 10—No Meeting
July 17—Work/Regular Session Captions—July 2 WS—2nd Preliminary Budget Discussion
Backup—July 13 WS—Department Budget Presentations
WS— Solid Waste Cost of Service
WS—Discussion on homelessness
WS/IC—DRC Engineering contract
WS—Park Foundation agreement
IC—EDP Board nominating committee
IC—Approval of Board of Ethics nominations
July 24—4th Tuesday Session Captions—July 9 WS—Department Budget Presentations
Backup—July 20 WS—Plan Concept for North Lakes Tennis Center
CA—Utility Management Stud
July 31 —No Meeting
August 2—Budget Workshop Captions—July 16
Backup—July 27
August 6—Luncheon Captions—July 23 WS—Department Budget Presentations
Backup—August 2 WS—Gas Well Inspection Annual Report
August 7—Work/Regular Session Captions—July 23 WS—Department Budget Presentations
Backup—August 3 WS—Budget Workshop
WS—Downtown Reinvestment Grant
WS—Chamber ED contract
WS—Board of Ethics Rules and Procedures
WS—Tree discussion
IC—Radio contract
August 14—2" Tuesday Session Captions—July 30 WS—Budget Workshop
Backup—Au ust 10
August 21 —Work/Regular Session Captions—August 6 WS—Budget Workshop
Backup—August 17 WS—TWU Master Plan discussion
IC—Chamber ED contract
IC—EDP Board nominations
August 25 —Council Retreat
CA-Consent Agenda IC-Individual Consideration WS-Work Session
CM-Closed Meeting PH-Public Hearing
Meeting Date Deadlines Item
August 28 —4t Tuesday Session Captions—August 13 WS—Budget Workshop
Backup—August 24 IC—Approval of Board of Ethics Rules and Procedures
PH— 1 st Public Hearing on the Tax Rate
September 3 —No Luncheon Labor Day holiday
September 4—No Meeting
September I I—Special Called Work/Regular Captions—August 27 WS—Budget Workshop
Session Backup— September 7 PH—2nd Public Hearing on the Tax Rate
PH—Public Hearing on the Budget
September 18 —Work/Regular Session Captions—August 31 WS—Budget Workshop
Backup— September 14 IC—Adoption of Budget
September 25 —4t Tuesday Session Captions— September 10 ICMA—9/22-26, Baltimore
Backup— September 21
October 1 —Luncheon Captions— September 17 Joint DISD luncheon
Backup— September 27
October 2—No Meeting National Night Out
October 9—2" Tuesday Meeting Captions— September 24 TML, Fort Worth, 10/9-10/12
Backup—October 5
October 16—Work/Regular Session Captions—October 1
Backup—October 12
October 23 —4t" Tuesday Session Captions—October 8 WS— Stoke annual report
Backup—October 19
October 30—No Meeting
November 5 —Luncheon Captions—October 22 Airport Update—meeting at Airport
Backup—November 1
November 6—Work/Regular Session Captions—October 22 NLC, Los Angeles, 11/7-11/10
Backup—November 2 IC— Stoke contract renewal
November 13 —2° Tuesday Session Captions—October 29
Backup—November 9
November 20—No Meeting Thanksgiving Holiday observed—City Offices Closed 11/22-23
November 27—4t Tuesday Session Captions—November 12
Backup—November 21 Tentative-Based on Need
December 3 —Luncheon Captions—November 19
Backup—November 29
December 4—Work/Regular Session Captions—November 19
Backup—November 30
December 11 —2n Tuesday Session Captions—November 26
Backup—December 7
CA-Consent Agenda IC-Individual Consideration WS-Work Session
CM-Closed Meeting PH-Public Hearing
Meeting Date Deadlines Item
December 18—Work/Regular Session Captions—December 3
Backup—December 14 Tentative-Based on Need
December 25 —No Meeting Christmas Holiday observed—City Offices Closed 12/24-25
CA-Consent Agenda IC-Individual Consideration WS-Work Session
CM-Closed Meeting PH-Public Hearing
('17
l Construction Projects Report IMPROVING -
OF
DENTON Week of July 02-08, 2018 DENT((CIN
Proposed Date of Proposed Date Other Department
Street/Intersection From To Construction of Completion Brief Description of Construction Department Letters Communication Contact:
CURRENT PROJECTS See Yellow Highlighted for Major Closures
Cobblestone North Dead Street Reconstruction
Ashcroft Ln. 5/14/18 8/9/18 Streets 5/4/18 Door Hangers (940)349-7160
Row End (Temporary Lane Closures)
LINT 2018 Residence Hall Project Coordinate with
Ave.A Maple Eagle 3/19/18 7/13/18 Engineering N/A (940)349-8910
(Temporary Lane Closures) UNT
Bonnie Brae St. Roselawn West Engineering Vintage 7 1 17 8 30 18 Street Widening En A Electronic Si 940 349-8910
(Phase 1)
of UPPRR Line g / / / / g g N/ Signs ( )
Canterbury Ct. Hollyhill 1-35 4/9/18 7/6/18 Drainage Improvements Drainage 3/26/18 Door Hangers 940-349-8488
(Temporary Lane Closures)
Capetown Dr. Desert Willow Bishop Pine 6/25/18 8/3/18 Concrete Street Panel Repair Streets 6/5/18 Door Hangers (940)349-7160
(Temporary Lane Closures Possible)
Cobblestone Row N. Locust Evers Pkwy 6/11/18 8/9/18 Street Reconstruction Streets 6/5/18 Door Hangers (940)349-7160
(Temporary Lane Closures)
Edwards Rd. Camino Real Swisher Rd. 6/4/18 9/10/18 Street Reconstruction Streets 5/17/18 HOA Contacted (940)349-7160
TH. (Temporary Lane Closures)
Emery St. Alice Coit 6/25/18 8/3/18 Street Resurfacing Streets 6/11/18 Door Hangers (940)349-7160
(Temporary Lane Closures)
Fulton St. Oak University 6/11/18 11/16/18 Water Main Construction Water 6/5/18 (940)349-7181
(Street Closure)
Fulton St. TBD TBD Wastewater Wastewater (940)349-7300
Proposed Date of Proposed Date Other Department
Street/Intersection From To Construction of Completion Brief Description of Construction Department Letters Communication Contact:
Fulton St. TBD TBD Streets Streets (940)349-7160
Hickory St. North Texas Ave C 5/21/18 8/3/18 Street Reconstruction Streets 5/15/18 Electronic Signs (940)349-7160
Blvd. (Temporary Road Closures)
Hickory St. Ave C 550 ft West 7/5/18 7/20/18 Wastewater Main Reconstruction Wastewater (940)349-7300
(Road Closure)
Highland St. Carroll IOOF 6/11/18 7/2/18 Street Resurfacing,Curb and Gutter Streets N/A (940)349-7160
(Temporary Lane Closures)
Holiday Park Phase 2 Manhattan Kings Row 11/10/17 12/1/18 Wastewater Main Construction Wastewater 11/16/18 Door Hangers (940)349-7300
(Temporary Lane Closures Possible)
Hollow Ridge Dr Paint Dr. Big Horn Trail 5/14/18 7/9/18 Concrete Street Panel Repair Streets 5/3/18 Door Hangers (940)349-7160
(Temporary Lane Closures Possible)
Hollyhill Ln. Longridge Pennsylvania 7/9/18 8/24/18 Street Reconstruction Streets 6/20/18 (940)349-7160
(Temporary Street Closures)
Huisache St. Yucca Retama 5/21/18 7/20/18 Streets Construction Streets 5/15/18 Door Hangers (940)349-7160
(Temporary Lane Closures Possible)
Lakeview Blvd. Black Walnut Burr Oak 6/18/18 7/13/18 Concrete Street Panel Repair Streets 6/5/18 HOA Contacted (940)349-7160
(Temporary Lane Closures Possible)
Cobblestone North Dead Street Reconstruction
Linda Ln. Row End 4/23/18 8/9/18 (Temporary Lane Closures) Streets 4/9/18 Door Hangers (940)349-7160
Lindsay St. McCormick 1-35 Service 6/8/18 7/31/18 Wastewater Main Reconstruction Wastewater 6/5/18 Door Hangers (940)349-7300
(Temporary Lane Closures Possible)
Malone St. Crescent Westchester 6/11/18 7/13/18 Water Main Construction Water 6/28/18 (940)349-7181
(Street Closure)
p y / / Street Reconstruction / / g ( )
Malone St. Scripture W. University 7/9/18 8 24 18 Streets 6 28 18 Electronic Signs 940 349-7160
(Temporary Lane Closures)
McKinney St. Loop 288 Ryan H.S 5/29/18 TBD Sidewalk Construction Engineering N/A Electronic Signs (940)349-8910
(Temporary Lane Closures)
Proposed Date of Proposed Date Other Department
Street/Intersection From To Construction of Completion Brief Description of Construction Department Letters Communication Contact:
Mayhill Rd. US 380 Edwards 9/1/17 2/1/20 Street Reconstruction Engineering 1/3/18, Door Hangers (940)349-8910
(Temporary Road Closures) 1/24/18
Water and Wastewater Construction
Mills Rd. Mayhill Denton ISD 5/29/18 7/30/18 and Road Widening Engineering N/A Electronic Signs (940)349-8910
driveway
(Street Closure)
Mingo Rd. Sirius Mockingbird 6/25/18 7/13/18 Wastewater Main Construction Engineering N/A (940)349-8910
(Road Closure)
Montecito Dr. EI Paseo Seville 6/25/18 7/23/18 Street Resurfacing Streets 6/11/18 (940)349-7160
(Temporary Lane Closures)
Paint Dr. Arabian Hollow Ridge 6/11/18 7/20/18 Concrete Street Panel Repair Streets 5/25/18 Door Hangers (940)349-7160
(Temporary Lane Closures)
Prominence Pkwy. Mayhill Atlanta 1/31/18 8/31/18 Water and Wastewater Crossing Engineering 1/24/18 Door Hangers (940)349-8910
(Road Closure)
Retama St. Sagebrush Huisache TBT TBD Streets Construction Streets 5/15/18 Door Hangers (940)349-7160
(Temporary Lane Closures Possible)
Riney Rd. N Elm Solana 9/29/17 9/30/18 Road Removal and Replacement Engineering Yes Electronic Signs (940)349-8910
(Road Closure)
Roselawn Dr. Bonnie Brae Kansas City 3/26/18 TBD Drainage and Roadway Construction Engineering N/A (940)349-8910
Southern RR (One Lane traffic control)
Sagebrush Dr. Kings Row Retama 5/21/18 7/20/18 Streets Construction Streets 5/15/18 (940)349-7160
(Temporary Lane Closures Possible)
Sena St. Malone Ector 4/23/18 7/20/18 Street Reconstruction Streets 4/17/18 (940)349-7160
(Temporary Lane Closures)
Spencer Rd. Mayhill Lowe's 4/2/18 9/29/18 Water Line Replacement Water 3/16/18 Contacted (940)349-8910
Driveway (Road Closure) departments affected
Spencer Rd. Mayhill Lowe's 4/2/18 9/29/18 Drainage Rebuild Drainage 3/16/18 Contacted (940)349-8910
Driveway (Road Closure) departments affected
Proposed Date of Proposed Date Other Department
Street/Intersection From To Construction of Completion Brief Description of Construction Department Letters Communication Contact:
p May hill / / / / Road Reconstruction g g / / Contacted )
Spencer Rd. Ma hill 4 2 18 9 29 18 Engineering 3 16 18 departments affected (940 349-8910
Driveway (Road Closure)
Sycamore St. Sycamore Wainwright 6/29/18 7/31/18 Wastewater Main ReconstructionWastewater N/A Door Hangers (940)349-7300
Temporary Lane Closures
Dead End Street Resurfacing,Curb and Gutter
Sun Valley Dr. Stuart West 5/14/18 8/6/18 (Temporary Lane Closures) Streets 5/1/18 Door Hangers (940)349-7160
Valley View Rd. Kings Row Sun Valley 5/14/18 8/6/18 Street Resurfacing,Curb and Gutter Streets 5/1/18 Door Hangers (940)349-7160
(Temporary Lane Closures)
UNT 2018 CVAD Project
Welch St. Mulberry Chestnut 4/11/18 7/6/18 Drive approach/Sidewalk Engineering 3/19/18 3/30/2018 (940)349-8910
(Temporary Lane Closures)
COMPLETED PROJECTS
Mild Creek Ln. Rambling Rock Cul d Concrete Panel/Sidewalk Repairse Sac 4/30/18 6/21/18 Streets 4/26/18 Door Hangers (940)349-7160
No Detours
Montecito Dr. EI Paseo Seville 5/29/18 6/22/18 Curb and Gutter Repairs Streets N/A (940)349-7160
(Temporary Lane Closures)
UPCOMING PROJECTS
Bonnie Brae St. US 377 135W 2018 2020 Street Widening Engineering (940)349-8910
(Phase 2)
Bonnie Brae St. US 377 135E 2019 2021 Street Widening Engineering (940)349-8910
(Phase 1)
Bonnie Brae St. TBD TBD TBD TBD Street Widening Engineering (940)349-8910
(Phase 1)
Hettie St. TBD TBD Water,Wastewater, and Streets Multiple
Hinkle Dr. TBD TBD Water,Wastewater,Drainage,Streets Multiple
Proposed Date of Proposed Date Other Department
Street/Intersection From To Construction of Completion Brief Description of Construction Department Letters Communication Contact:
Londonderry Ln. Teasley Westminster 9/1/18 TBD Street Improvements Streets (940)349-7160
(Temporary Lane Closures)
Panhandle St. Carroll Bolivar TBT TBT Street Resurfacing,Curb and Gutter Streets 4/9/18 Door Hangers (940)349-7160
(Temporary Lane Closures)
PEC 4- Engineering In Design Installing Underground Box Culvert Engineering (940)349-8910
Smith-Johnson Summer 2018 Water,Wastewater,Drainage,Streets Engineering (940)349-8910
Stuart Rd. Windsor Kings Row TBD TBD Concrete Curb and Gutter Repair Streets (940)349-7160
(Temporary Lane Closures)
Thomas St. TBD TBD Water,Wastewater, and Streets Multiple
W.Walnut St. S. Elm Cedar TBT TBT Utility Construction Engineering N/A (940)349-8910
(Temporary Road Closures)
Wayne St. TBD TBD Water,Wastewater, and Streets Multiple
Windsor Dr. TBD TBD Water,Wastewater,Drainage,Streets Engineering (940)349-8910