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011521 Friday Staff Report „ City Manager's Office 215 E. McKinney St., Denton, TX 76201 • (940) 349-8307 DENTON MEMORANDUM DATE: January 15, 2021 TO: The Honorable Mayor Hudspeth and Council Members FROM: Todd Hileman, City Manager SUBJECT: Staff Report L Council Schedule A. Meetings 1. MLK Holiday—Monday,January 18, 2021 2. No - City Council Meeting on Tuesday, January 19, 2021. 3. Civil Service Commission on Tuesday, January 19, 2021 at 3:30 p.m. via video/teleconference—City Council Work Session Room. 4. Cancelled - Mobility Committee Meeting on Wednesday, January 20, 2021 at 9:00 a.m. in the City Council Work Session Room. 5. Cancelled - Agenda Committee on Wednesday, January 20, 2021 at 2:30 p.m. in the City Manager's Conference Room. 6. Work Session of the Planning and Zoning Commission on Wednesday, January 20, 2021 at 4:30 p.m. followed by a Regular Meeting at 6:30 p.m. via video/teleconference—City Council Work Session Room. 7. Committee on Persons with Disabilities on Thursday, January 21, 2021 at 3:00 p.m. via video/teleconference—City Council Work Session Room. OUR CORE VALUES Integrity • Fiscal Responsibility • Transparency • Outstanding Customer Service IL General Information & Status Update A. Fire Station 8 Promotions and a first for the Denton Fire Department — The Denton Fire Department is excited to announce the following promotions for Fire Station 8 located on Colorado Blvd at Brinker Rd. scheduled to open in February. Promoting to Fire Captain: Jeff Dye, Carey McAdoo, Clint Stephenson Promoting to Fire Driver: Shea Enos, Cole Hudson, Gerald Friend, Kenneth Sherwood, Jason Glaze, Paul Tuttle In the 147-year history of the Denton Fire Department, Captain Carey McAdoo will be the first ever sworn female officer. Congratulations to all those receiving promotions! Staff contact: Kenneth Hedges, Fire NTO dentonfireCOM _ a - . 227 jr�J%04' 246 DFD Captain Promotions FT dentonfire.00m dentonfire.COM U Mremm derA Y tlN� Ytl� tlNlE n dr' Y.s. n DFD Driver Promotions B. COVID-19 Testing in Wastewater—This week, Elected Officials received an e-mail from a citizen regarding COVID-19 testing in wastewater. As previously reported in May 2020, staff collaborated with Baylor University on a limited study for monitoring SARS CoV-2 ribonucleic acid (RNA) in wastewater during the early months of the 2 COVID-19 pandemic. Baylor University is currently working with the Texas Department of State Health Services (TDSHS) to expand the scope in the initial project. The City of Denton has been included as a participant of the 18-month research. No preliminary results of the study have been shared with the City at this time. Staff contact: Deborah Viera, Environmental Services C. Lighthouse Dog Barking — On January 11, Animal Services received information regarding several after-hours calls placed by a resident on Lighthouse Dr. concerning a barking dog. Animal Services On-Call Officers are scheduled to respond to animal emergency related calls such as animal bites, injured animals or vicious animals. Animal Services did reach out to the complainant to gather further information to begin the process of trying to resolve the issue. Staff Contact: Randi Weinberg, Animal Services D. MLK Jr. Day Annual Celebration on January 18 — Denton Parks and Recreation will co-host the annual MLK Jr. Day event in cooperation with Pastor Cedric Chambers, the President of Denton&Vicinity Ministerial Alliance. The community is invited to a march, starting at 3 p.m., that will begin at Fred Moore Park. Participants will assemble in front of the American Legion Hall Senior Center (629 Lakey St.) and conclude at the MLK Jr. Rec Center (1300 Wilson St.). Groups are asked to socially distance themselves and wear masks. When the march concludes at the rec center, City staff will hand out 250 free meals on a first-come, first-serve basis. The catered meals are individually wrapped. Starting at 4:30 p.m., the Ministerial Alliance will host a virtual program from Mt. Calvary Baptist Church. The program will be broadcast live on their Facebook page, https://www.facebook.com/mcbcdenton. Mayor Hudspeth and Councilwoman Birdia Johnson will provide the greeting. Elder Michael McWilliams of Dominion Word COGIC will offer the prayer, and Pastor Henry Thomason of Hamilton Chapel will give the keynote address. Staff contact: Cheylon Brown, Parks and Recreation E. DHA Awarded Additional Vouchers and Opening Wait List — The Denton Housing Authority (DHA) was awarded seventy-five (75) additional Mainstream Program vouchers from the Department of Housing and Urban Development (HUD). This brings their new total to 192 Mainstream Program vouchers. The Mainstream Program provides vouchers for non-elderly disabled persons with disabilities who are transitioning out of institutional or other segregated settings, at serious risk of institutionalization, experiencing homelessness, or at risk of becoming homeless. The person with the disability may be the head of household or a member of the household. Mainstream Program vouchers are different from DHA's primary voucher program, the Housing Choice Voucher program(also referred to as Section 8). DHA currently administers 1,641 Housing Choice Vouchers to low-income households. DHA will open their Waiting List for applicants from January 17 at 12:00 a.m. to January 31 at 11:59 p.m. Applicants who are a resident of the City of Denton, experiencing homelessness, elderly, handicapped or living with a disability, veteran, or victim of domestic violence will receive preference over other applicants. Final eligibility will be determined later. Only online applications will be accepted. Eligible 3 applicants must visit the DHA website (www.dentonhousingauthority.com) and click the "Apply for Housing"button at the top of the page. DHA staff will be available by phone for applicants who cannot access a computer at(940)383-1504 starting January 17. The public notice flyer is attached. Collaborative members of the Denton County Homelessness Leadership Team Housing Workgroup reviewed the current Denton County Housing Priority List to identify people experiencing homelessness who fit the priority categories for the Mainstream Vouchers. Members developed plans to assist people on the list in DHA's application process in the coming weeks. Staff contact: Courtney Cross, Community Services F. Denton Fire Department Assists Denton County Public Health—Members of the Fire Department have been assisting the County Health Department weekly at COVID-19 vaccination shot clinics since December 28, by providing a staffed ambulance with paramedics monitoring for any adverse reactions to the vaccine. This week, along with providing an ambulance, additional personnel assisted in the administration of the vaccine to nearly 3,000 recipients on Thursday. The Fire Department is committed to support and assist Denton County Public Health during future COVID-19 vaccination clinics. Staff contact: Kenneth Hedges 41 G. Denton Police Doartment Mental Health Division News — Positive progress continues for Denton PD's Mental Health Division as the team works toward being fully operational. Recent successes are highlighted in the attached newsletter. The latest edition also introduces new Crisis Intervention Manager Sara Gawor who describes recent Crisis Intervention Response Team (CIRT) activity and provides a look at what lies ahead for the Mental Health Division. Staff contact: Frank Dixon, Police H. Denton County Day—At the January 5 City Council meeting, the Council inquired on the status of the 2021 Denton County Days event,particularly if it would occur during the COVID-19 pandemic. Traditionally, Denton County Days is a multi-day event in Austin, TX where local leaders throughout Denton County can engage with the state legislative process and legislators to advocate for their shared priorities. The 2021 Denton County Day will be a single-day virtual event to be held on Thursday, February 25, primarily during the midday hours. Details are still being finalized, but 4 the event will include a State of the County address and moderated discussion with state representatives. The Denton Chamber of Commerce will send out notices in the coming weeks with more information and registration instructions. The Council will be notified when registration is available. Staff Contact: Ryan Adams, Customer Service and Public Affairs I. State Legislative Session Update—The 87th Session of the Texas Legislature convened on Tuesday, January 12. Both chambers spent the week electing leadership, with Representative Dade Phelan (R-Beaumont) being elected Speaker of the House, and adopting rules for the session. Of the rules being adopted, many pertained to the operation of each chamber during the session. The Texas House of Representatives will not be requiring COVID-19 testing prior to entering the House chamber or a committee meeting, while the Senate will. Additionally, all committee meetings will be livestreamed and, while the House will allow for virtual participation in committee meetings by members, that privilege does not extend to those giving non-invited testimony. All committee testimony, including potential testimony by City of Denton staff and elected officials, must be given in-person for both chambers unless that entity or person's testimony is expressly invited. Committee Changes (Senate): • Removed the Committee on Agriculture; and renamed the Committee on Water and Rural Affairs to Water, Agriculture, and Rural Affairs. • Renamed the Committee on Intergovernmental Relations to Local Government. • Removed the Committee on Property Tax. • Reinstated the Committee on Jurisprudence (this was a standing committee until the 84th Session in 2015). Committee Changes (House): • None, though House committee announcements are expected on or around January 29. Both houses stand adjourned until Tuesday, January 26. Staff contact: Ryan Adams, Customer Service and Public Affairs J. Upcoming Updates to B&C Handbook Set for February— Every year, the City Secretary's Office undertakes the annual review of the Boards & Commissions Handbook to determine if changes are needed. This year, there have been name changes to two City Council Committees and the creation of two new boards. Those proposed changes will be reflected in this year's updates and presented for consideration in late February to early March. Most recently, the Parks, Recreation and Beautification Board adopted the attached memorandum asking City Council to review its attendance policy for boards/commissions. The B&C Handbook lays out a process by which any board member whose absence does not meet the excused absence criteria can submit an appeal to the City Secretary who shall then submit a request for an exception from the City Council. The attached "B&C Member Attendance Report Guidelines" were created and provided to every member whose absence is determined to not meet the excused absence criteria. To date, there were five (5) unexcused absence with every member provided the 5 Guidelines and offered the opportunity to seek an exception from City Council. No member requested any exception. Because the attendance policy is incorporated within the Handbook, Council discussion on the attendance policy and any desired changes can take place when the B&C Handbook item is scheduled for consideration in late February to early March. Staff contact: Rosa Rios, City Secretary's Office K. New Construction Specifications and Standard Details — The Capital Projects/Engineering and Utilities Departments are pleased to announce that after a two-year collaborative effort, the City now has Denton-specific construction specifications and standard details. Construction specifications are the foundation of constructing public infrastructure. These specifications describe in detail the work to be performed, accepted construction methods, how the quality of construction is determined, how the work will be measured, and how the City's contractors will be paid. Clearly defined specifications minimize change orders which, by extension, reduce potential risks incurred by the City with respect to increases in scope, schedule, and budget. Standard details are detailed drawings that visually represent the technical requirements of the construction specifications. The new construction specifications and standard details have an effective date of January 15, 2021 and will be used on all future solicitations for City of Denton construction projects. Staff training is occurring over the next two weeks to ensure staff are familiar with the new requirements. The trainings are also being recorded for staff who are unable to attend. An overview is scheduled with Design Consultants at 1:00 p.m. on Thursday, February 18, members of the private development community will also be invited to that training and the training will be recorded and available upon request. Staff will also discuss the new construction specifications and standard details and solicit feedback at future Developer Town Hall meetings. The new construction specifications and standard details are available on the City of Denton's Land Development Webpage (www.cityofdenton.com/landdevelgpm nnt) under"Helpful Documents." The Land Development Webpage also includes a link to a feedback form where residents, developers, contractors, and other interested parties can submit feedback on the new document. A direct link to the feedback form is available here. The attached flyer includes additional details about the City's construction specifications and standard details. The construction specifications and standard details will be updated on an annual basis. Staff will collect feedback from the public through summer 2021, make revisions in fall 2021, and the next draft will have an effective date in January 2022. Staff contact: Rebecca Diviney, Capital Projects L. New Economic Development Quarterly Report — Throughout 2020, the City and Chamber worked together to craft a new economic development partnership agreement, increasing cooperation and transparency. A requirement of the new agreement was the creation of a new joint quarterly report that included activities of both the City and Chamber. The intent of the joint report was to demonstrate that the efforts of many individuals and groups combine to contribute to the economic development efforts in Denton. Staff worked over the past few months to design a new report to share with the Economic Development Partnership Board, City Council, 6 Economic Development Investors, and Chamber of Commerce. A copy of the FY 2020-21 1st quarter report is attached. The new report includes key stats and activities as well as introduces new economic development-related programs and plans. With this being the first issue of the new report, the economic development team invites feedback and comments to ensure relevant information is presented in a meaningful format. Staff contact: Jessica Rogers, Economic Development M. Post Oak and Blackjack Oak Transplant Experiment—Weather permitting, on January 16, Denton Parks and Recreation Department will host a small group workday to harvest Post Oak trees and Blackjack Oaks trees from the Eagle Creek development located southwest of Denia Park. In addition to this workday with volunteers from Connections Wellness Group's Champions of Radical Change committee, PARD is recruiting volunteers for three additional workdays. Due to COVID-19 restrictions, groups are limited to 10 for these workdays. PARD hopes to harvest 40 to 60 trees depending on the number of volunteers and digging conditions. The trees will be potted and planted in other parks in Denton in the near future. Many of the saplings are in forested areas with a high concentration of rocks, making it challenging to dig by hand. Therefore, PARD will target saplings growing on the fringe of the forested areas in the pasture that do not have high rock concentrations. Staff contact: Haywood Morgan, Parks and Recreation N. Utility Assistance Funding Update - Until December 1, 2020, Interfaith only worked with need-based clients who have not been impacted by COVID-related income loss and had the opportunity to aid 57 households. December showed a steep increase in the number of families seeking assistance. Greater than $25,000 was distributed in assistance and the clients served in December is greater than 50% of the clients served this fiscal year. Recent month and year qualification statistics are provided below: December 2020 FY 2020-2 1 Year to Date 39 33% 101 40% 126 Assisted ' 69 49% Did Not Qualify 59% 10 ON P4 ■ Did Not Complete 840 8% i% Obligations In the December 17, 2020 meeting, City Council approved an additional $125,000 in fiscal year funding for distribution through Interfaith Ministries. With the increase in funding, Interfaith Ministries' available funds and remaining budget account for 82% of their allocated funds for use. Currently, 75% of the fiscal year remains. FY 2020-21 Budget Health 550,122 13% Sd5.61e ?�t 05201.875 73% Any customer who contacts Customer Service indicating need for assistance is submitted to Interfaith Ministries as a referral and is granted an agreement to ensure service continuation while they are working through the application process. Staff contact: Christa Foster, Customer Service and Public Affairs O. Bonnie Brae Bridge Scheduled to Open to Traffic Next Week — Weather permitting, the Capital Projects Department is excited to announce that on Tuesday, Jan. 19,crews will begin switching the northbound traffic lanes of Bonnie Brae Street from Vintage Boulevard to Roselawn Drive onto the new bridge as part of the Bonnie Brae Phase 1 project! The traffic switch is expected to be complete by 5 p.m. the same day. The Bonnie Brae Phase 1 project limits include Bonnie Brae Street from Roselawn Drive to north of Vintage Boulevard. The southbound traffic lanes are scheduled to remain on the existing roadway for another 4 to 5 weeks, weather permitting, until the Bonnie Brae Street at Vintage Boulevard intersection construction is complete. After the intersection construction is completed, the southbound traffic will be placed on the new bridge as well. Until the switch is complete, and over the new few weeks, intermittent lane closures may be in place as crews safely complete the remaining construction activities. The Bonnie Brae Phase 1 project remains on schedule to be open by March 2021. Images of the new bridge are provided below. Staff contact: Seth Garcia, Capital Projects P. Downtown Parking Concern — Economic Development and the Police Department were made aware of a parking concern on the face of the downtown square regarding extended parking of business vehicles over the weekends when parking time limits are not enforced. Staff is in contact with downtown business owners and reached out 8 through the Texas Main Street network to discuss what other communities have done regarding this or similar issues. In addition, staff is working with the Denton Main Street Association to discuss concerns. Once data and input have been gathered, staff will provide updates and options regarding this issue. Staff contact: Jessica Rogers, Economic Development Q. Water Complaints—Staff is aware of several resident complaints that have been posted on social media regarding the current taste of tap water. Staff is not aware of any system malfunctions in the water production system, although the Lake Lewisville plant has been offline for the last several days due to construction of plant improvements. The Ray Roberts plant has been producing all the water needs of the City during that time. Routine water testing has not shown any quality issues and we do not believe these observations pose any risk to citizens. Our water production and water quality professionals believe the taste issue is due to the water in Lake Lewisville and Lake Ray Roberts "turning over". This is a seasonal phenomenon that is described below. Necessary water line flushing last week may have contributed somewhat to these observations, but that maintenance activity was completed this week. Staff will continue to investigate and sample the water distribution system to determine if there any other contributors to these noticed changes and will communicate any finding we have to the public. Staff contact: Terry Naulty, Water Utilities Lake Turnover Illustration.Lake turnover is the process of a Jake's water turning over from top(epitimnion)to bottom(hypoiimnion). ORAOIS SYaJECTS CONISN?a 5-12a lUevllroldrr.Pf)%icof 6.-c-jraphy 1 Image •n•r_.t Lake Turnover Lake Turnover Lake turnover is the seasonal movement of water in a lake. r' f Shallow lakes experience very little lake turnover,while Large,deep lakes experience major changes as waters of different temperatures '• "" TI rIM.IVMI MIX. Vf�w t Turnover .^ R. New City-Related Bills Filed — During the current session of the Texas Legislature, the Texas Municipal League provides its member cities with summaries of all city- related bills that have been filed. The attached bill list represents bill summaries of city-related bills filed in the last week. Staff is actively reviewing these proposed bills 9 to evaluate their potential impact and develop strategies to engage in outreach with the legislature and our local delegation prior to and during the upcoming session. Questions regarding any piece of legislation or to receive the full text of legislation, please contact Ryan Adams or Rachel Balthrop Mendoza. Staff contact: Ryan Adams, Customer Service and Public Affairs S. Georgetown Drive Utility Work — On January 7, Mayor Pro Tern Davis requested information on the timeline for street repairs following recent utility work on Georgetown Drive. The intersection of Georgetown Dr. and Amherst Dr. was recently disturbed as a part of the utility replacement on Amhurst Dr. in preparation for its reconstruction. Amherst Dr., from Georgetown Dr. to Hinkle Dr., is currently scheduled for reconstruction from October 2021 to February 2022. The wastewater line replacement, from Georgetown Dr. to Hinkle Dr., was recently completed on December 23. The water line is scheduled for replacement in March 2021. To address the interim condition, the City's concrete and asphalt contractor has been scheduled to complete a permanent asphalt patch on January 18. Staff contacts: Pritam Deshmukh, Water Utilities and Daniel Kremer, Public Works T. Windsor Drive Future Extension — On January 5, a resident reached out to Capital Projects staff requesting information on when the dead end of Windsor would be fully extended to Loop 288. The portion of Windsor between Dominion St. and Loop 288, shown below, will be constructed when the vacant property adjacent to the Loop develops. This is the normal process by which the City grows its infrastructure. Just as the new subdivision (2016-2017) constructed its portion of Windsor east of Old North, the property between Dominion and Loop 288 will be responsible for constructing the portion of Windsor that traverses or is adjacent to it. However, the connection to Loop 288 will be at TxDOT's discretion, which may elect to not allow the connection until frontage roads are in place. A list of TxDOT's current and planned construction projects can be found here: https://www.txdot.gov/inside- txdot/district/dallas/maps.html. Staff contact: Brian Jahn, Capital Projects -•�; y ter. ,. M .ilfJi.,r 4 288 ate° �0 ° ,�`• 1 10 U. Inclement Weather Overview - On January 11, Council Member Armintor requested information regarding the fact that the inclement weather shelter did not open on Sunday, January 10. City staff is prepared to implement the Inclement Weather Policy approved by Council, which allows for the use of select City Facilities to be utilized by nonprofit agencies as warming stations after regular business hours. The MLK Jr. Recreation Center will open as a warming station when the low temperature is expected to fall below 32 degrees, or the City has declared an emergency for weather conditions. Neither of these conditions were met during the 8 a.m.-5 p.m. operational hours for the recreation center. Staff will continue to monitor the forecast and open the MLK Jr. Recreation Center as needed based on the inclement weather policy. At this time, recreation staff has not received any requests for the facilities after hours but would limit facility usage based on the current open facilities. When nonprofit agencies decide to extend hours, or services because of inclement weather, Community Development staff help to facilitate communication and sends out an email to all stakeholders, including nonprofits, cities, county, public safety agencies, DCTA, library, active volunteers, and others, to inform them of the confirmed inclement weather openings. These emails help spread the word to clients, especially those at City facilities or Our Daily Bread during the day. In addition, the City and nonprofit agencies share the information on social media channels. The Use of City Facilities Agreement and the Inclement Weather Flyer are attached. Staff contact: Caroline Seward, Parks and Recreation III. Upcominiz Community Events and Meetings A. Public Meetings 1. None IV. Attachments A. DHA Public Notice...........................................................................................13 B. Mental Health Division News...........................................................................14 C. Parks Board Memorandum...............................................................................21 D. Denton Construction Standards.........................................................................23 E. Economic Development Quarterly Report.........................................................24 F. TML New Bill Listing—Posted January 15 ......................................................32 G. Use of City Facilities During Inclement Weather Policy...................................41 H. Inclement Weather Flyer ..................................................................................47 11 V. Informal Staff Report A. 2021-004 Gibbons Creek Follow Up.................................................................48 B. 2021-005 S&P Global Rating ...........................................................................50 C. 2021-006 Business Retention and Expansion Program......................................64 D. 2021-007 Economic Development Strategic Plan..............................................78 E. 2021-008 Q1 Sponsorships and Donations...................................................... 161 F. 2021-009 Q4 Quarterly Financial Report........................................................ 163 VI. Council Information A. Council Requests for Information ..................................................................211 B. Council Calendar ...........................................................................................213 C. Draft Agenda for January 26...........................................................................216 D. Future Work Session Items ............................................................................222 E. Street Construction Report .............................................................................223 12 PUBLIC NOTICE: DENTON HOUSING AUTHORITY DENTON, TEXAS OPENING WAITING LIST & NEW FUNDING DHA will be opening the Waiting List for applicants on January 17rh, 2021 at 12:00 am -January 31", 2021 at 11:59 pm. Applicants who may be a resident of the City of Denton, homeless, elderly, handicapped, or disabled, veteran, or victim of domestic violence will receive preference over any other applicants. Final eligibility will be determined later. DHA has also received additional funding from the Department of Housing and Urban Development for the Special Purpose - Mainstream Program,which provides vouchers for non-elderly disabled persons with disabilities who are transitioning out of institutional or other segregated settings, at serious risk of institutionalization, homeless, or at risk of becoming homeless. The disabled person may be the head of household or a member of the household. There are limited vouchers available for this program. Pre-Applications will be accepted ELECTRONICALLY(ON-LINE ONLY) at www.dentonhousingauthority.com Eligible applicants must visit the DHA website and click the "Apply for Housing" button at the top of the page. NO PAPER APPLICATIONS WILL BE ACCEPTED! Applicants are encouraged to use their own computers or handheld devises or a computer of other public sources. Due to COVID-19 restrictions,we will only be available by phone for applicants who cannot access a computer by any other means at 940-383-1504, beginningJ anuary 17th, 2021. Special assistance will be provided for the elderly, handicapped, and disabled as needed upon request. Applicants with any other special need or reasonable accommodation may also contact us at our office for assistance. Pre-Applications WILL NOT be mailed, faxed, or accepted in person. Pre-Applications will be placed on the Waiting List in accordance with the DHA Administrative Plan. Applicants may log onto the DHA website under the Applicant Portal to check their status or update their application. DHA will issue vouchers as your name moves to the top of the list and funding is available. DHA complies with all applicable Fair Housing Laws. 1(2t EQUAL HOUSING OPPORTUNTY Mainstream-DHA-0 1-04-2 1-SM 13 MENTAL HEALTH December DIVISION NEWS 2020 DIFFICULT ROADS LEAD TO BE A UTIFUL DESTIN A TIONS ve 1CO"Le Sara Gawor First and foremost, 1 want to thank everyone for being so ' welcoming! 1 am truly excited to work with you all and grow personally and professionally. I have so much to learn from you all and much to share. 1 am honored to have this position and look forward to partnering with the police, local resources, and establishing a working relationship that allows us to better serve our community. Denton is a unique city with many mental health needs, and I hope this division can not only ease officers' burdens to a degree, but also make strides to improve the lives of its' citizens. 1 am a licensed clinical social worker (LCSW) with a diverse background, as 1 have had experience in healthcare administration at a local psychiatric facility, working with adolescents at a residential treatment center, medical social work, and working with victims at a domestic violence shelter, all of which have helped me prepare for populations we serve. In the upcoming year, the hope is to have developed collaborative relationships, establish a teamwork mentality and show the worth of clinicians and CIRT in the field based on several factors, as well as `real life' examples. I, Crisis Intervention Response Team � i Pictured (Left to N! i _ U ! Right): — Latrice • Pettaway, Lisa Ross, i' Ed Castillo. Keith Foy not pictured. Our CIRT Officers moved back to the MHD in November. They have received training in Mental Health First Aid, trauma, resiliency, and leadership. All CIRT members and adjuncts will attend the TCOLE Mental Health Peace Officer course the first week of January. Following the course, we will meet with,Judge,Jahn and the Mental Health Court for instruction on the court 9s processes and proper EDO format. CIRT Officers have also been conducting follow-ups on mental health information reports stemming from calls that patrol responded to. We are lucky to have these enthusiastic and driven officers on the team. The MHD is looking forward to the amazing things they will accomplish. iL 1 �R-ad, L I ll 11 II While CIRT is barely off the ground (hiring clinicians is in the works) and has not yet been responding to many mental health calls due to program development and training implementation, we want to share the positive impact we are already leaving on the community.This team is about compassion and handling situations a bit differently than what would be considered traditional. One of our early calls involved an older woman who is the care provider to her adult grandson whom she raised. She was well-aware and well versed in his extensive mental health history and diagnosis. She called 911 due to his aggressive behavior, delusions, and her fear of him after she had been up all-night barricading herself in her bathroom. She was concerned he would not seek help voluntarily and knew he needed it. Upon CIRT's arrival, she was on the phone with a local psychiatric facility of the young man's choosing in hopes of finding him a bed there. CIRT (clinician and officer dressed in plain clothing) and 2 other patrol officers responded to her call. She was standing outside of her home making this phone call with fear of entering the home and approaching her grandson without police assistance.We made our brief introductions and upon doing so,tears of relief rolled down her cheeks as we explained this new approach and new team! She was so elated to have someone respond to her emergency with knowledge, compassion and an in-depth understanding of her very personal experience and close ties to someone mentally ill. CIRT took the lead on this one and went into the home to approach her grandson. Fortunately,the clinician made headway with him and he agreed to go voluntarily to the facility. His grandmother was comforted in her moments of feeling alone and afraid and felt supported to make the trip. Additionally, his grandmother was able to reach out to said clinician at a later time for valuable ideas, input, and how to best provide needed care to her grandson.These are the type of touching moments that instill hope in this program and hope in the community we serve. �! r� / I x I I HOT has been hard at work this holiday season. Officer Webb and Officer Butler have been working with DPS to fast track ID appointments for clients working with outreach organizations. The identification requirement for services can be a barrier for many individuals experiencing homelessness. HOT identified this barrier and established a relationship with DPS to address it. HOT has also identified other barriers to assistance that has kept some individuals on the street longterm. In one particular case, a single mother with an infant needed rehabilitation and housing assistance. HOT worked with the courts and local LE agencies to have the mother's misdemeanor warrants dropped upon the successful completion of her rehabilitation program. She has made excellent progress and will be moved to permanent supportive housing or rapid rehousing come February. HOT connected her to life coach/sponsor through Solutions of North Texas who has mentored her through the process. Diversion from the criminal justice system is a core part of the MHD mission. OFFICER KRIS JONNSON HAS THE HONOR OF BEING THE FIRST OFFICER TO COMPLETE AN EMERGENCY DETENTION ORDER FOR OUR AGENCY. ON DECEMBEA 1TH, HE HELPED ENSURE THAT A CITIZEN IN CRISIS RECEIVED IMMEDIATE HELP AND PAVED THE WAY FOP THE MHO. THE CITIZEN WAS INTERRUPTED WHILE TRYING TO KILL HIMSELF AND OFFICER JONNSON TOOK HIM TO A LOCAL HOSPITAL. THANK YOU OFFICER IOHNSON FOR YOUR DEDICATION TO OUR COMMUNITY. 9 iommsof 2opWhat Ahead Though 2020 has been a difficult and trying year, it is not without good. Good people, good moments, and hope persist on. This next year will see the sprouts of the planted seeds of good things. As the MHD continues on this journey, we will see the addition of new faces and new training. CIRT will become operational and we will begin fine-tuning our response to those in the community in need of mental health services. We look forward to serving our OP community with compas and steadfastness. Exhibit 3 o-40" City Manager's Office DENTON 601 E. Hickory St., Suite A, Denton, TX 76205 • (940) 349-8307 MEMORANDUM DATE: November 9, 2020 TO: Mayor and City Council Members FROM: Frances Punch, Chair, Parks and Recreation Board SUBJECT: Request to amend Ordinance 19-2866 First, and foremost, I would like to thank the Mayor and Council members for allowing me to serve as the Chair of the Parks,Recreation and Beautification Board over the course of the last two years. During the last eight months,the pandemic has caused great challenges for the community. The BOARD and I, appreciate your diligence in leading the community through these uncertain times. Background: On January 28, 2020, City Council adopted Ordinance 19-2866 updating absence provisions for boards, commissions, and committees and establishing how an absence will be determined to be excused or unexcused. Excused Absence: An excused absence shall include the following: •personal or family illness, • death of a family member, •jury duty, • service in the armed forces, • testifying before the legislature, • attending a seminar involving municipal matters of importance to the member's duties, and • absence necessary for the member's business or employment. On March 2, 2020, the Parks and Recreation Department (PARD) presented the updated policy amendments to the Parks, Recreation and Beautification Board (BOARD) to review Ordinance 19-2866 and clarify any questions regarding the absenteeism process. There was no direction provided as the discussion was for informational purposes. On August 10, 2020, I received a request for an excused absence for the August 17, 2020 BOARD meeting from a Board member. Notification was received in a timely manner with detailed information regarding the need for the absence. "I have to pick up my minor child from the airport. It has to be the parent". The request for the excused absence was denied stating the purpose of the absence does not meet the excused absence criteria. Additionally, in light of COVID 19, the BOARD has experienced more absenteeism, especially since the meetings have been moved from the traditional 6:00 PM to during the work day. OUR CORE VALUES Integrity • Fiscal Responsibility • Transparency • Outstanding Customer Service 21 At the September 14,2020 BOARD meeting,I requested a future agenda item regarding Ordinance 19-2866. The discussion was intended to help clarify excused and unexcused absences as well as provide the opportunity to identify and recommend to the City Council possible recommended changes to Ordinance 19-2866 should the BOARD decide such is necessary. I believe the additions of"Family Responsibilities" and"Pandemic/World Events/Emergency Situations"to the excused absence criteria will broaden the available options and facilitate Board members time management. Recommendation: Chair,representing the BOARD, recommends consideration for adding"Family Responsibilities" and "Pandemic/World Events/Emergency Situations" to the Boards, Commissions, and Committees excused absence criteria of Ordinance 19-2866. 2 22 DENTON CONSTRUCTION STANDARDS # -1i The City of Denton is pleased to announce that the new Denton-specific construction specifications and standard details go into effect on Friday, January 15, 2021! ML WHY THIS IS GREAT NEWS ! These specifications describe key details for how work should be performed for City infrastructure and are intended to clarify roles and responsibilities of City staff and contractors as projects are being designed and constructed. Our new standards include detailed drawings that visually represent the technical requirements of the construction specifications.This means you can plan more efficiently from the start to the end of your construction project! STANDARDS 1 PROVIDE The new construction specificationsand standard details can be found on •Denton website, here: https://bit.ly/3bBeJOt. Once you •. • • love to get youree••. •. • TRAININGgrow and evolve, so we value all input as we work to keep our standards at the cutting edge. Fill out the feedback survey here: https://bit.ly/2XEoxik. DATES raining or i y esign consultants and members of the development and •� construction community is currently scheduled for February 18,2021. Emails will be sent to the City's existing listservs for contractors and design I�M� firms with additional details on how to register for this training. For those unable to attend,a recording of the traincrig will be available upon request. U� T GN - ► _ ' FY 2020--2021 jE 0 N 0-, 1 st. Quarter Rep A;;: _ . . DE NTON, TE XALNEVE -LOPMENT Oct-. Nov - Dec RTi4LKc' P,ARTNERSHI o — Ar _- r EconStat — Demographics Sales Tax Collections Unemployment Rate Population: 141,522 $4,500,000 16.00°rD � $4,000,000 14.00% p � Median Age: 29.5 $3,500,000$3 000 000 12.00°i° i $2,500,000 10.00% _ 'Iil 'I1III�� I III�IIII Median Household Income: 66 644 dl I IIIII $2,000,000 8.00% � Bachelor's Degree or Higher: 42.7% $1,500,000 6.00% I) $1,000,000 Source:Data.census.Gov $500,000 4.00% $0 2.00% - • • • 5 Industries >d�J eptJ � 0.00% P > PJ Oe�o �e� oe' Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov • Jobs Q hoQ �o Qe 19 '20 '20 '20 '20 '20 '20 '20 '20 '20 '20 '20 We're • 1. Government 2019 2020 Denton Texas USA All Businesses'. 2. Health Care & Social Assistance The Denton Economic 3. Manufacturing New Residential Permits & Value New Commercial Permits & Value Development Partnership can 4. Accommodation & Food Service 200 120,000,000 7 120,000,000 assist your business with: 5. Retail Trade 100,000,000 6 100,000,000 5 Source:Emsi Site search & selection 150relocation 80,000,000 80,000,000 en on • - st Growing 4 Workforce and training programs 100 60,000,000 3 60,000,000 Labor market analyses • - 40,000,000 2 40,000,000 Demographic research 50 1. Transportation & Warehousing 20,000,000 1 20,000,000 Incentive applications 0 0 0 - 0 2. Arts,Entertainment & Recreation Oct Nov Dec Oct Nov Dec City processes or operations 3. Government Total Permits Value Total Permits Value Investment opportunities 4. Management of Companies & Enterprises Denton ' `C DIVE,� :o� '{ City of Denton Econ. Dev. 5. Information Source:Emsi W = 20-21: Q 1 Ma m_ym _ 'RTNEaSH Bus 'i' ness Attracti* on G=Governor's Office,D=Dallas Regional Chamber, F=Fort Worth Chamber,DI=Direct,O=Other Site Visits Hosted Project Industry ImLastment MAKWIMStatus Source Hydrogen Chemical Manufacturing $500+ million 100 to 200 RFI In Progress G Auf Wiedersen L Advanced Manufacturing $750 million 3,500 Submitted G I Make Mydata Data Center N/A 100 Submitted 6 RFIs Submitte I Vidar � Biomaterials $25 million 159 Submitted D Jupiter Manufacturing $25 million 300 Submitted F I Requests I Elsa Storm Food Processing N/A 190 Submitted G Incentive ReviewI UHT-BM Manufacturing $50 million 40 Submitted G,D Ranchland Foods Food Processing/HQ $5 million 140 Incentive Negotiation DI iildd�iilit�........................ .. Urban 35 Spec. Building N/A N/A Prospect Due Diligence DI --tn the New • : Blue Nose Manufacturing $5 million 100 Submitted G,D • Free Flow Medical Manufacturing $12 million 355 Short List; Site Visit; Not Selected G,D Home jmprovement giant Lowe s Mockingbird Flight Manufacturing $2 million 100 Submitted G,D Riots shiRRing hub in Denton Loonie Bin Manufacturing $3.8 million 200 Submitted G (Dallas Morning News) Potential Manufacturing/HQ $11.5 million 75 Submitted D JL„ ....,. Andes Aviation $45 million 120 DNMQ G Home improvement giant Lowe's plots shipping hub in Denton Food Manufacturing/HQ N/A N/A Submitted D meendouttocee, "..i ,.91 . 11-h5 , ' KBC Spec. Building N/A N/A Prospect Due Diligence DI ' Pathway Injection Molding $2.5 million 21 Submitted F . • Brie Merry Food Manufacturing $5 million 51 Submitted D • Cold Storage WH Cold Storage N/A N/A Prospect Due Diligence • !� CTDI Spec. Building N/A N/A Submitted DI Rodeo Manufacturing N/A 100 Submitted ................... .. ..: 2U-2�. �� Mana Med 26 N/A N/A N/A Submitted A'ge 3 • • usinessRetent *ion x ansion NEW YEAR Retention Visits Q1 YTD Visits - Gone Digital NEW PLANrtu 2020 brought lots of changes, �— • includingthe development of a new - p � � employees)' - I Due to the ongoing COVID-19 pandemic, � 0 BRE Plan. employees) future BRE visits will be virtual visits held via I 0 The team spent Q1 drafting, employees) Zoom or Microsoft Teams. We'll provide the 10 Large Biz (50+ employees) reviewing, and planning. Learn i62; I Visit - link. You provide the best background! I about the BRE program below and ........................Additional visits to focus on sectors — — — — _ Goals . . • (- track our progress here in 2021 We're implementing a new CRM system. THE BRE PRUCE4. This will allow us to provide businesses a digital pre-survey, where they can give us Business Introductory Digital Visit & Data Follow Up & Evaluation I valuable information to make sure we get i Selection Contact Pre-Survey m Collection Resolution PeriodfAro the right people in the room.We send each •The team reviews We reach out to We get to know We work to resolve We review all the business an online • • key economic businesses,introduce more about each any immediate data we've I ourselves educate survey. This allows us und 75 business are selected for visits criteria and selects to prepare for each visit and ensure business, ask key issues and thank the collected and factors;each year based on various f businesses in each them on our questions,seek to business for their consider any y � I targeted area or programs and other stakeholders understand issues, time and strategic or tactical however, any business can request a BRE business category. services,then and record data for commitment to changes to our vI51t schedule a visit. are engaged as °ESE future analysis. Denton. programs. - •eve . • -needed. • • - V Z 20-21: 01 'RTN¢a5H • • Workforce, Euca •ion & Trainin 11111-MUM=g=PWIUM FY 2020-2021 Goals The Denton Business Allies are a group Identify negative impacts and challenges to local small/large businesses,employees, and job seekers due to COVID-1 9. _ • - • • - of stakeholders, representing business Connect employees and employers with local, state, and federal resources. support organizations, that are Work with local partners to promote training and education opportunities. SMALL BUSINESS RESOURCES working to assist businesses, Use digital resources to assist job seekers and employers connect. - --_ STARTING s-a - -` -- BUSINESS entrepreneurs and our local workforce aga_ A • WNATN NNOU BEFORE develop, grow, and thrive in Denton. • - • BUSINESS RESOURCES OPENIGARSINESS —,k The DBA can offer resources trainin� wk °o-e-1°a°z•aaaa; lO STEPSTSINESS YOUR ry,I BUSINESS � �/, D- - •• • • • • - -•• • -- - •- • • • • • • • • •- Di9itY Ma.ketirg Tirtor a. V support, and technical assistance to difficult. The Denton . . Development Team actively . 5•Ar URBUs"ESGR S OW employers and employees. gaps,c•• • • - • • promote • • programs,c• - •• seekers to I Ioa Nenro king° :aa " NOR-CENTRALTE%AE SMALL opportunities, • • communicates with • • supports educational instituti• • • GROW,STRENGTHEN,AND PROTECT CLEGE DEEVELOPME TCESTERS _ _ _ • • - •- - ••- • - • • • • - • • - --• • - ' -.. -___ rt ato3 'Yarbusiness.s[renglMn '-"'-""' -" CITYOFDENTONPERMITS TWU Center • Women Entrepreneurs • - • • creationof • new 11 We • - •-• kick-off our efforts. Stra_ -_ v GROWING YOUR Denton - • . RESOURCES FOR DISADVANTAGED,MINORITY, BUSINESS WOMAN,AND VETERAN-OWNED BUSINESSES Denton Chamber of CommerceF,eae_rce.hc�wtl en rtatn9..n"win3.•ntl.uppertirg black tlwdnrxsged.la6no. NOWTOGROWYOUR ..cmen,end.ren�owned bu.innw. BUSINESS IN TE%AS-SBA Denton County: Skills In-Demand RESOURCE GUIDE Denton Black . Commerce RecaRarna� 9fi rce fw �e TIPS FOR SOCIAL MEDIA SBDC ro C59,C M1dC SUCCESS Customer Satisfaction csec United Way of Denton CountyLOCAL RESOURCES PARTNERS Agile Methodology � � o,aa°. ,, __ (FUNDINGI Workforce • • • • - • - • Customer Experience ! o° Nursing � postings help us * w°-=- Stoke Denton Vew,n .. Accounting tract( what --''-IALSUCCES' Warehousing employers need so Need su ort for busines Auditing • pp y Restaurant Operation We can align seeking careerour training? Selling Techniques training and • • • • • • • • Merchandising education • • • • • • • • Contact the DBA at (940) 349-7771 0 20000 � ra0,C DEYE(O,�i opportunities. - • • ■National Average ■Denton County Source:Emsi 20-21: 01 � 'RTNERSH Key ----------------------------------- Downtown Cit or Dentonw•OC121•2minreac labor data I he Downtown TI RZ study • , City of Denton Approves First- small business funding Resolved Requests new construction recommendations ill '- presented Ever Entrepreneurship Economic 250 Council . - Feb. • -- 200 available real estategti�rg Development Grants 5�di sing a bu su less Two Local Companies on Path to Growth 150 major employer data vgn grants • • . Update 100 zoning check Dl3NrON,TX,Oct 21,2020-The Denton City Council approved twojob-based economic 50 The Strategic Plan substantially complete. development grants focused on stimulating local technology startup companies at the Oct 20 Staff -• - • City Councilpresentation I City Council meeting.The Council awarded a grant of$106,500 to TeamOfDefenders and a 0 ■ • early 2021 to complete the StrategicPlan. grant of$243,500 to From the Future,both local early stage tech ventures.The performance- Q2 Q3 Q4 Q 1 based grants will provide assistance to each company as they rapidly expand.Together,the Staff • - built •ut the implementation companies are projected to add more than 150 high-wage or knowledge-based jobs In - management syst- for • • : reporting. Denton over the next 10 years. Committees DENTDN OCT 23 Boards \ Denton Businesses Adapt, Expand During Pandemic YTD Items Presented 'oft r..,MM RAS RAR It is no secret the ecunomic duwnturn caused by the COVID-19 pandemic has forced hundreds of North Texas businesses to City Council 6 O � struggle or close. But amid the uncertainty,many are also EDPB 13 • finding reasons to not just hope-but expand. DEDC 0 - Denton Economic Development f 9 s Team is relocating to the TIRZ No. 1 4 Development Services Center. TIRZ No. 2 0 401 N. Elm Denton, ity PMedia Trainings .Event - . - . Off` fE�p 20-21: Ql OEMR V M= Page 6 I Sy rN ER$" Accelerate Recovery Foster Growth Strengthen Community Inclusion ■ Created internal dashboard and recovery indicators • Developed new BRE plan with renewed focus on increasin ■ Convened Denton Business Allies and developed work report for tracking key recovery metrics. touchpoints, business visitation and dat groups to focus on key areas, including workforce. ■ Drafted 2021 BRE program to include focus on evaluation. ■ Held regular meetings with Denton Black Chamber of sectors/businesses significantly impacted by COVID-1 9. • Implemented new CRM system to: Commerce. ■ Expanded business data collection efforts to include ■ Improve tracking and evaluation of attraction, ■ Initiated development of a minority and women owned- COVID-1 9 impact data points. retention, and expansion functions. business support plan, including working with key ■ Prepared for 2021 virtual business visits. ■ Build a robust database of businesses, developers, and stakeholders. ■ Conducted regular outreach with regional organizations to key stakeholders. ■ Participated in City's affordable housing study and learn about and promote recovery efforts and ■ Improved quality of RFIs and tracking performance. engaged in discussion regarding connection between opportunities. ■ Celebrated successes of key wins and highlighting Denton housing and workforce. ■ Served as concierge to assist businesses in connecting with as attractive to key industries. ■ Connected with Denton ISD and NCTC regarding training and participating in federal and state programs. ■ Reviewed future development areas. programs to focus on growing local talent and meeting ■ Participated in DCWSLT with United Way. • Connected with UNT regarding how to better promote and needs of employers. ■ Updated training resource inventory. use logistics/supply chain program. ■ Coordinated with representatives from underserved and ' Connected with regional broker developer communities minority communities to encourage inclusive recovery. and engaged in conversations about Denton's future. Looking Ahead The goals over the next quarter include: Implementation Tracking ■ Completing implementation management tracker. ■ Presenting Strategic Plan for City Council approval. The Economic Development Team has developed a robust implementation ■ Presenting Strategic Plan at EDP Investors Reception. and tracking matrix, with tasks broken down by strategic growth area. ■ Starting implementation of BRE plan. Each task has been assigned a project manager. The project managers ■ Continuing to track COVID-19 recovery efforts. are working through each task to identify stakeholders, develop work ■ Starting regular implementation meetings with plans, and create timelines and checkpoints. stakeholders. I � DENTOiv.TE XAS � " Team Denton Additional Contacts Cory Lacy Erica Sullivan VP of Economic Development I Denton EDP Economic Development Analyst I City of Denton Christine Gossett Office:(940)382-7151 Office:(940)349-7776 ExecutiveDirector I Denton ' Email:Cory(@dentonedp.com Email:Erica.SullivanCa�cityofdenton.com I or ' ' ' Heather Gregory Executive Director I Stoke Denton ' I 68 or i • i i i i Jessica Rogers Dan Rosenfield Denton , . Commerce qDirector of Economic Development City of Denton Economic Development Analyst I City of Denton , I382-9693 Office:(940)349-7531 Office:(940)349-7732 Email:Jessica.Rogers cityofdenton.com Email:Daniel.Rosenfield(a cityofdenton.com Denton Chamber Commerce North1 Kay Brown-Patrick 4 Christina Davis (940)498-6470 Business Development Administrator I City of Denton Economic Development Specialist I City of Denton Office:(940)349-7771 'r<z�J Office:(940)349-7730 Workforce Solutions of Email:Kay.Patrick(@cityofdenton.com J Email:Christina.Davis(CDcityofdenton.com North Central Texas I 4 D�`C DEVE�D< of 1 20-21: 01 �t 1RTNERS� CITY-RELATED BILLS FILED (Editor's Note: You will find all of this session's city-related bill summaries online at https://www.tml.org/319/Legislative-Information.) PROPERTY TAX H.B. 299 (Vasut) —Appraisal Cap: would reduce the property tax appraisal cap on homesteads from ten to 3.5 percent, and apply the new appraisal cap to all real property. (See H.J.R. 64, below.) H.B. 984 (White) — Property Tax Appraisal: would: (1) for real property omitted from the tax roll in any one of the five preceding tax years, provide that the chief appraiser may, or shall if otherwise required by law, appraise the property as of January 1 of each tax year that it was omitted and enter the property and its appraised value in the appraisal records; and (2) provide that if the chief appraiser enters the property in the appraisal records under (1), above, the entry must show that the appraisal is for the property that was omitted from an appraisal roll in a prior year and must indicate the year and the appraised value for each year. (Companion bill is H.B. 494 by White.) H.B. 986 (Shine) —Appraisal Review Boards: would, among other things: (1) authorize the board of directors of an appraisal district established in a county with a population of less than 120,000 to elect to allow the local administrative district judge to appoint the members of the appraisal review board under certain circumstances; and (2) authorize the board of directors of an appraisal district established in a county with a population of 120,000 or more to appoint appraisal review board members if: (a) each member of the appraisal district board other than the county assessor-collector serves as a member of the governing body of a taxing unit that participates in the appraisal district on the date the members of the board are appointed; and (b) the appraisal district board by resolution elects to appoint the members of the board. H.B. 987 (Shine) — Property Tax Exemption: would provide that: (1) a person is entitled to a property tax exemption for tangible personal property the person owns that is held or used for the production of income if the property is listed in a single account maintained by the appraisal district and the total table value of all property listed in the account is less than $5,000; (2) a person is entitled to a property tax exemption of a portion of the value of the tangible personal property the person owns that is held or used for the production of income if the property is listed in a single account maintained by the appraisal district and the total value of all property in the account is $5,000 or more and less than $500,000; (3) the amount of the exemption in (2), above, is equal to 20 percent of the total taxable value of all property listed in the account; and (4) a person may receive more than one exemption under (1) and (2), above. (See H.J.R. 53, below.) H.B. 988 (Shine) — Property Tax Appraisal: would, among other things, authorize a property owner to bring suit to compel an appraisal district, chief appraiser, or appraisal review board to comply with a procedural requirement applicable to a property tax protest. H.B. 989 (Shine) — Property Tax Appraisal: would authorize a property owner to file a motion with the appraisal review board to change the appraisal roll to correct an error regarding the unequal appraisal or excessive market value of a property at any time prior to the date the taxes become delinquent. 32 H.B. 990 (Shine) — Delinquent Property Taxes: would repeal the penalty on delinquent property taxes for a residence homestead. H.B. 991 (Shine) — Property Tax Discounts: would, among other things: (1) provide that a person is entitled to a discount for the early payment of property taxes on the amount of tax due on real property that is the person's residence homestead as follows: (a) if a taxing unit mails its property tax bills on or before September 30, the following discounts apply: (i) three percent if the tax is paid in October or earlier; (ii) two percent if the tax is paid in November; and (iii) one percent if the tax is paid in December; and (b) if a taxing unit mails its tax bills after September 30, the following discounts apply: (i) three percent if the tax is paid before or during the next full calendar month following the date on which the tax bills were mailed; (ii) two percent if the tax is paid during the second full calendar month following the date on which the tax bills were mailed; and (iii) one percent if the tax is paid during the third full calendar month following the date on which the tax bills were mailed; (2) authorize the governing body of a taxing unit to adopt discounts for the early payment of property taxes on properties other than residence homesteads; and (3) require a mortgage servicer who pays property tax on behalf of a borrower to, on the written request of the borrower, pay the property tax on a property occupied by the borrower as the borrower's residence homestead early enough for the borrower to qualify for the three percent discount provided in (1), above, as applicable. H.B. 992 (Shine) — Property Tax Installment Payments: would authorize an individual to pay a taxing unit's property taxes imposed on the individual's residence homestead in four equal installments. H.B. 993 (Shine) — Property Tax Freeze: would establish a mandatory property tax freeze for city, county, and junior college district property taxes on the residence homesteads of individuals who are disabled or over 65 and their surviving spouses. (See H.J.R. 54, below.) H.B. 994 (Shine) — Property Tax Exemption: would: (1) provide that an individual is entitled to an exemption from property taxation by a taxing unit other than a school district of a portion of the appraised value of the individual's residence homestead in an amount equal to five percent, or a greater percentage not to exceed 25 percent specified by the governing body of the taxing unit before July 1, of the average appraised value in the current tax year of all residence homesteads that are located in the same county as the individual's homestead and that qualify for an exemption; and (2) require the chief appraiser to determine the average appraised value of the residence homesteads referenced in (1), above, according to the appraisal records as of August 1. (See H.J.R. 55, below.) H.B. 1022 (Murphy) — Property Tax Exemption: would exempt from property taxation the portion of real property owned by a person that is leased to an open-enrollment charter school if: (1) the portion of the real property that is leased to the school is: (a) used exclusively by the school for the operation or administration of the school or the performance of other educational functions; and (b) reasonably necessary for the operation of the school; and (2) the owner of the portion of real property that is leased to the school certifies by affidavit to the school that: (a) if the lease agreement requires the school to pay the taxes imposed on the real property as a portion of the total consideration paid to the property owner under the agreement, the owner will reduce the consideration required to be paid by the school under the lease agreement by an amount equal to the amount by which the taxes on the real property are reduced as a result of the exemption by providing a monthly or annual credit against the total consideration due under 33 the agreement; or (b) if the lease agreement requires the school to pay the taxes imposed on the real property directly to the collector for the applicable taxing unit or to the owner or the property manager separately from the payment of rent to the property owner under the agreement, the school is no longer required to pay the taxes to the collector, owner, or property manager, as applicable, and the rent charged to the school under the agreement is not affected unless a term of the agreement specifically provides for a change in the amount of the rent (See H.J.R. 57, below.) H.B. 1053 (C. Bell) —Appraisal Cap: would reduce the property tax appraisal cap on homesteads from ten to five percent, and apply the new appraisal cap to all real property. (See H.J.R. 61, below.) H.B. 1061 (Bucy) — Property Tax Freeze: would expand the existing law authorizing cities to adopt a property tax freeze on the residence homestead of individuals who are elderly or disabled and their surviving spouses to all taxing units other than school districts. (See H.J.R. 62, below.) H.J.R. 53 (Shine) — Property Tax Exemption: would amend the Texas Constitution to authorize the legislature to exempt from property taxes 20 percent of the taxable value of a person's tangible personal property that is held or used for the production of income if the property is listed in a single account maintained by the appraisal district and the total taxable value of all property listed in the account is $5,000 or more and less than $500,000. (See H.B. 987, above). H.J.R. 54 (Shine) — Property Tax Freeze: would amend the Texas Constitution to establish a mandatory property tax freeze for city, county, and junior college district property taxes on the residence homesteads of individuals who are disabled or over 65 and their surviving spouses. (See H.B. 993, above.) H.J.R. 55 (Shine) — Property Tax Exemption: would amend the Texas constitution to authorize the legislature to provide that an individual is entitled to an exemption from property taxation by a taxing unit other than a school district of a portion of the appraised value of the individual's residence homestead in an amount equal to five percent, or a greater percentage not to exceed 25 percent specified by the governing body of the taxing unit before July 1, of the average appraised value in the current tax year of all residence homesteads that are located in the same county as the individual's homestead and that qualify for an exemption. (See H.B. 994, below.) H.J.R. 57 (Murphy) — Property Tax Exemption: would amend the Texas Constitution to authorize the legislature to exempt from property taxation any real property that is leased for use as an open-enrollment charter school. (See H.B. 1022, above.) H.J.R. 61 (C. Bell) —Appraisal Cap: would amend the Texas Constitution to reduce the property tax appraisal cap on homesteads from ten to five percent and apply the new appraisal cap to all real property. (See H.B. 1053, above.) H.J.R. 62 (Bucy) — Property Tax Freeze: would amend the Texas Constitution to authorize a political subdivision other than a school district to adopt a property tax freeze on the residence homestead of individuals who are elderly or disabled and their surviving spouses. (Note: Cities 34 already have this authority. H.J.R. 62 would expand the authority to additional political subdivisions that levy property taxes.) (See H.B. 1061, above.) H.J.R. 64 (Vasut) —Appraisal Cap: would amend the Texas Constitution to reduce the property tax appraisal cap on homesteads from ten to 3.5 percent and apply the new appraisal cap to all real property. (See H.B. 299, above.) S.B. 300 (Hinojosa) — Property Tax Exemption: would: (1) for purposes of the property tax exemption on the residence homestead of the surviving spouse of a first responder, expand the definition of"first responder" to include: (a) a special agent of United States Immigration and Customs Enforcement; (b) a customs and border protection officer or border patrol agents of United States Customs and Border Protection; and (c) an immigration enforcement agent or deportation officer of the United States Department of Homeland Security; and (2) in the case of the surviving spouse of a first responder described by (1), above, provide that the surviving spouse is entitled to an exemption if the surviving spouse has not remarried since the death of the first responder and was a resident of this state at the time of the first responder's death. S.B. 329 (Paxton) — Property Tax Credit: would: (1) provide that a person who owns property that is reasonably necessary for and used by the person to operate a qualifying small business is entitled to a property tax credit from each taxing unit that taxes the property for the number of days the qualifying small business on the property was closed due to a qualifying official order during a disaster; (2) for purposes of the credit in (1), above, a "qualifying official order" is an order, proclamation, or other instrument issued by the governor, another official of the state, or the governing body or an official of a political subdivision of the state in response to a disaster; and (3) for purposes of the tax credit in (1), above, a "qualifying small business" means a business that: (a) has fewer than 100 employees: (b) is required to close by a qualifying official order; and (c) if not for the qualifying official order, would be capable of engaging in normal business activity during the period the business is required to be closed. (See S.J.R. 23, below.) S.J.R. 23 (Paxton) — Property Tax Exemption: would amend the Texas Constitution to authorize the legislature to provide a credit against the property taxes imposed on property necessary for and used to operate a business that is required to close by an order, proclamation, or other instrument issued by the governor, another official of the state, or the governing body or an official of a political subdivision of the state in response to a disaster. (See S.B. 329, above.) PUBLIC SAFETY H.B. 983 (Holland) —Alcohol To-Go: would allow for the pickup and delivery of alcoholic beverages for off-premises consumption under certain circumstances. H.B. 1024 (Geren) —Alcohol To-Go: would allow for the pickup and delivery of alcoholic beverages for off-premises consumption under certain circumstances. (Companion Bill is S.B. 298 by Hancock.) H.B. 1035 (Dutton) — Use of Force: would amend current law to provide that the standard for: (1) the justified use of force against a person by a peace officer, a person acting in a peace officer's presence and at the officer's direction or a person other than a peace officer is an 35 objectively reasonable standard; (2) the justified use of deadly force against a person by a peace officer or a person acting in a peace officer's presence and at the officer's direction is an objectively reasonable standard; and (3) the justified use of any force, including deadly force, by a guard employed by a correctional facility or a peace officer to prevent the escape of a person from a correctional facility is an objectively reasonable standard. H.B. 1039 (Goodwin) — Handgun License: would provide that: (1) a peace officer may seize a license holder's suspended, revoked, or expired license and return it to the Department of Public Safety; and (2) if a handgun license holder is convicted of or charged with an offense or becomes the subject of a protective order and that conviction, charge, or order disqualifies the person from possessing a firearm or continuing to hold a license, an officer of the court shall accept voluntary surrender of the license or otherwise seize the license. H.B. 1050 (Romero) — Mental Health Response Study: would, among other things: (1) require that the Health and Human Services Commission conduct a study to evaluate the availability, outcomes, and efficacy of using mental health response teams and mental health professionals to assist in reducing the number of incarcerations of individuals with mental illnesses, substance abuse disorders, or intellectual or developmental disabilities; (2) provide that in conducting such study, the commission shall: (a) include an assessment of whether the information suggests that municipalities would benefit from mental health response teams assisting traditional law enforcement officers in efforts to: (i) reduce the incarceration rates of persons with mental illness, substance abuse disorder, and intellectual or developmental disorders; (ii) increase the number of referrals to community resources and treatment for persons described in (2)(a)(i), above; (iii) reduce the use of force when responding to emergency calls that involve persons described in (2)(a)(i), above; and (iv) gain an understanding about persons described by (2)(a)(i), above; (b) evaluate the fiscal and staffing implications to a law enforcement agency for agency use of a mental health response team to respond remotely to emergency calls; and (c) evaluate the impact of certain funding sources on establishing mental health response teams across the state, especially the impact to the establishment, staffing, and maintenance of those teams; and (3) require the commission to gather information from the study from each city with a population greater than 100,000. H.B. 1051 (Geren) — Court Program: would expand the definition of a public safety employee, for the purpose of participating in a public safety employee treatment court program, to include an emergency service dispatcher. H.B. 1069 (Harris) — First Responders Carrying Handguns: would: (1) require the public safety director of the Department of Public Safety to establish a handgun training course for first responders who hold a license to carry a handgun; (2) prohibit a governmental entity from adopting a rule or regulation that prohibits a first responder who holds a license to carry a handgun and has completed the course described in (1) from: (a) carrying a concealed or holstered handgun while on duty; or (b) storing a handgun on the premises of or in a vehicle owned or operated by the governmental entity if the gun is properly secured; (3) provide that a first responder may discharge a handgun while on duty only in self-defense; (4) provide that a governmental entity that employs or supervises a first responder is not liable in civil action arising from the discharge of a handgun by a first responder who is licensed to carry a handgun; (5) provide that the discharge of a handgun by a first responder who is licensed to carry a handgun is outside the course and scope of the first responder's duties; and (6) provide that the new law authorizing the discharge of a firearm by a first responder may not be construed to 36 waive, under any law, immunity from suit or liability of a governmental entity that employs or supervises first responders. S.B. 298 (Hancock) —Alcohol To-Go: would allow for the pickup and delivery of alcoholic beverages for off-premises consumption under certain circumstances. (Companion Bill is H.B. 1024 by Geren.) S.B. 301 (Hinojosa) — Covert Law Enforcement Activity: would provide that a defendant may not be convicted for an offense under the Texas Controlled Substances Act on the testimony of a person who is acting covertly on behalf of a law enforcement agency, regardless of whether that person is a licensed peace officer or special investigator, unless the testimony is corroborated by other evidence. (Companion bill is H.B. 834 by Thompson). S.B. 311 (Eckhardt) — Public Demonstrations: would provide that: (1) a person commits the offense of disorderly conduct if the person intentionally or knowingly displays a firearm while attending or within 500 feet of a public demonstration; and (2) it is a defense to prosecution for an offense described in (1) if the person displays the firearm in discharging the person's official duties as a peace officer, a member of the armed forces, or a security officer. (Companion bill is H.B. 791 by Goodwin.) SALES TAX S.B. 313 (Huffman) — Sales Tax Exemption: would exempt firearm safety equipment from sales taxes. (Companion bill is H.B. 524 by Rosenthal.) COMMUNITY AND ECONOMIC DEVELOPMENT H.B. 1048 (Anchia) — City Parks Funding: would authorize local hotel occupancy taxes and short-term motor vehicle rental tax associated with a venue project to be used to finance a venue project expenditure relating to a city parks and recreation system. S.B. 291 (Schwertner) — Commercial Construction: would require a developer, as soon as practicable after beginning construction of a commercial building project, to visibly post the following information at the entrance to the construction site: (1) the name and contact information of the developer; and (2) a brief description of the project. ELECTIONS H.B. 1056 (Fierro) —Temporary Branch Polling Places: would provide that early voting by personal appearance at certain temporary branch polling places may be conducted on any one or more days and during any hours of the period for early voting by personal appearance, as determined by the authority establishing the branch. S.B. 303 (Eckhardt) — Early Voting by Mail: would, among many other things, authorize early voting by mail for any qualified voter and provide for implementing procedures. EMERGENCY MANAGEMENT S.B. 328 (Lucio) - Disaster Identification System: would, among other things, provide that: (1) the Texas Division of Emergency Management may include in its state emergency plan 37 provisions for the use of a disaster identification system; (2) in an area subject to a state of disaster declaration, a person may elect to participate in a disaster identification system activated for that area; (3) such system shall authorize the use of a device that is capable of displaying a flashing light and continuous light in either the color white or the colors blue, green, red, and yellow (an "illuminated display") to communicate with disaster relief personnel; and (4) an executive order or proclamation declaring a state of disaster activates for the area subject to the declaration the disaster identification system described above. (Companion bill is H.B. 671 by Martinez.) MUNICIPAL COURTS H.B. 1071 (Harris) —Animals in Court: would allow a qualified facility dog or qualified therapy animal in certain court proceedings. OPEN GOVERNMENT No Open Government bills were filed this week. OTHER FINANCE AND ADMINISTRATION H.B. 173 (Rosenthal) — False Report Liability: would provide that: (1) a person who submits a false report to a law enforcement agency or emergency service provider, with the intent that the law enforcement agency or emergency service provider take action against a falsely accused person, is liable to the falsely accused person for an amount not to exceed $250 if the report was submitted due to bias or prejudice against the falsely accused person's race, color, disability, religion, national origin or ancestry, age, gender, sexual orientation or gender identity; and (2) a falsely accused person who prevails in an action described in (1), above, may recover attorney's fees and costs incurred in bringing the action. H.B. 997 (Fierro) — Motor Vehicle Inspection: would increase the identification number inspection fee for a motor vehicle from $40 to $65. H.B. 1004 (Gates) — Municipal Management Districts: would provide for the election of directors of a municipal management district created by the Texas Commission on Environmental Quality. H.B. 1030 (Shaheen) — Newspaper Notice: would: (1) allow a political subdivision to satisfy any law that requires notice to be published in a newspaper by publishing the notice in the following locations: (a) social media, free newspapers, school newspapers, a homeowners' association newsletter or magazine, utility bills, direct mailings, or any other form of media authorized by the comptroller; and (b) the internet websites maintained by the political subdivision and the comptroller; (2) provide that before providing notice under (1), a political subdivision must hold a public meeting about the alternative notice under (1)(a) and demonstrate that the circulation will be greater than the circulation of the newspaper with the greatest circulation in the political subdivision; (3) authorize the comptroller to grant a city's request for a waiver from (1)(b) if the city provides sufficient proof that Internet access is limited in the city, and if the comptroller grants the waiver, the city must provide additional notice on a public agenda board within the city; (4) require a city using alternative media described in (1)(a) to submit notice to the comptroller describing the alternative notice method in (1)(a) and certain other information; (5) authorize the comptroller to require a political subdivision to provide notice in a newspaper if the comptroller determines that the means under (1)(a) do not have greater 38 circulation than a newspaper with the greatest circulation in the political subdivision; and (6) require the comptroller to prepare a report identifying and comparing the effectiveness of different methods of notice publication used by political subdivisions and provide the report to the governor, lieutenant governor, and the speaker of the house. H.B. 1034 (Goodwin) — County Fire Code and Building Permits: would: (1) authorize any county to adopt a fire code and/or a wildland-urban interface code, and allow a county and a city in the county to contract with one another for the administration and enforcement of the codes; and (2) provide that a code adopted in (1) applies only to an unincorporated area of the county. S.B. 315 (Huffman) — Sexually Oriented Businesses: would, among other things: (1) provide that an individual younger than 18 years of age may not be on the premises covered by permit or license issued by the Texas Alcoholic Beverage Commission if a sexually oriented business operates on the premise; (2) provide that the holder of a license or permit covering a premises described in (1), above, may not knowingly or recklessly allow an individual younger than 18 years to be on the premises; (3) provide that if a permit or license holder is found to violate (1), above, the commission shall suspend the permit or license for the first and second violation, and cancel the permit or license for the third violation; (4) prohibit a sexually oriented business from allowing an individual younger than 18 years of age to enter the premises of the business; (5) provide that a sexually oriented business commits an offense if it violates (4), above; (6) amend current law to provide that it is a common nuisance to: (i) employ or enter into a contract for the performance of work or the provision of services with an individual younger than 21 years of age for work or services performed at a sexually oriented business; or (ii) permit an individual younger than 18 years of age to enter the premises of a sexually oriented business; (7) amend current law to provide that a sexually oriented business may not hire or enter into a contract with an individual younger than 21 years of age for the performance of work or the provision of services other than a contract to perform repairs, maintenance or construction services at the business; and (8) amend current law to provide that a child is a person younger than 21 years of age for purposes of the criminal offense of employing, authorizing, or inducing a child to work in a sexually oriented commercial activity or in any place of business permitting, requesting or requiring a child to work nude or topless. S.J.R. 22 (Huffman) - Local Retirement Systems: would amend the Texas Constitution to provide that the state is not liable and may not appropriate money to pay for any debts or other obligations of a local retirement system. PERSONNEL No Personnel bills were filed this week. PURCHASING No Purchasing bills were filed this week. TRANSPORTATION H.B. 1054 (Bell) —High Speed Rail: would, before a private entity begins operation of high- speed rail, require the entity to file with the Texas Department of Transportation a bond to be sufficient to restore real property used for the service to its original condition if the service ceases operation. 39 UTILITIES AND ENVIRONMENT H.B. 1021 (Murphy) — Electric Utility Rates: would: (1) define "employee compensation and benefits" to include base salaries, wages, incentive compensation, and benefits, but not pension, other postemployment benefits, or incentive compensation; and (2) provide that, when establishing an electric utility's rates, the regulatory authority (including a city) shall presume that employee compensation and benefits expenses are reasonable and necessary, if the expenses are consistent with recent market compensation studies not earlier than three years before the initiation of the proceedings to establish the rates. H.B. 1043 (Anchia) — Safety and Pollution Penalty: would amend current law to increase the administrative penalty that may be assessed by the Railroad Commission to an amount that does not exceed $25,000 a day for each non-pipeline safety violation of a provision of: (1) state law that pertains to the safety or the prevention or control of pollution; or (b) a rule, order, license, permit, or certificate that pertains to safety or prevention or control of pollution issued by the commission. S.B. 304 (Eckhardt) —Zero-Carbon Electric Generation: would: (1) define "zero-carbon energy technology" as a technology that relies exclusively on an energy source that does not emit a greenhouse gas in the production of electricity; (2) provide that it is the intent of the legislature that the amount of electric power generated in Texas from zero-carbon energy technology for delivery by a retail electric provider, municipally owned utility, or electric cooperative each year will increase to meet the following percentages on or before the specified dates: (a) by January 1, 2025, not less than 65 percent of the annual total; (b) by January 1, 2030, not less than 85 percent of the annual total; and (c) by January 1, 2035, 100 percent of the annual total; (3) require the Public Utility Commission (PUC) to promulgate rules that: (a) establish the minimum annual zero-carbon energy technology generation requirement for each retail electric provider, municipally owned utility, and electric cooperative operating in this state in a manner designed to produce, on a statewide basis, compliance with the requirement prescribed by (2), above; and (b) specify reasonable standards that zero-carbon energy generation must meet to count toward compliance with the requirement in (2), above; (c) establish a zero-carbon energy generation credits trading program; (d) establish a means for a retail electric provider, municipally owned utility, or electric cooperative to satisfy the requirements of (2), above, by generating electricity using biomass fuel instead of directly owning or purchasing energy generated using zero-carbon energy technologies; and (e) establish a carbon offset alternative payment program; and (4) provide that the PUC may cap the price of zero-carbon energy credits and may suspend the goal established by (2), above, as necessary to protect the reliability and operation of the grid. S.B. 307 (Eckhardt) —Transmission of Water for Wholesale Service: would provide that a person may transmit potable water by pipeline of more than 24 inches in diameter across two or more county lines for the purpose of providing wholesale water service only if the person is a local government corporation created to aid and act on behalf of the counties through which the pipeline travels. 40 Page I of 6 CITY OF DENTON POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE SECTION: GENERAL POLICIES/PROCEDURES/DIRECTIVES REFERENCE NUMBER: 500.07 SUBJECT: USE OF CITY FACILITIES FOR INCLEMENT INITIAL EFFECTIVE DATE: WEATHER TITLE: USE OF CITY FACILITIES FOR INCLEMENT LAST REVISION DATE: WEATHER POLICY STATEMENT Certain City of Denton(City) facilities are made available for public use when measures of extreme temperatures are reached or when other severe weather conditions take place. The purpose of this policy is to outline the circumstances under which certain City facilities will be made available and general guidelines. Furthermore,it is the intent of this policy to outline restrictions and priorities at each of the facilities listed herein based on the individual facility's purpose. DEFINITIONS Inclement Weather—Inclement Weather can generally be defined as abnormal weather conditions with extreme temperatures or extreme weather conditions. For the purposes of this policy,Inclement Weather will be defined as any day when one or more of the following conditions is met: 1)the temperature low is expected to fall below 32 degrees, 2)when the temperature high is expected to exceed 100 degrees,or 3)the City has declared an emergency for weather conditions such as snow/ice,hail, severe flooding,etc. Inclement Weather Stations-Various City facilities are designated as inclement weather stations and are heated and/or air-conditioned with public access to restrooms,water fountains, and sitting area. The City facilities designated for inclement weather stations are guided by the conditions set forth in the sections of this policy and include: • American Legion Hall(629 Lakey St.) • Denton Civic Center(321 E. McKinney St.) • Denton Senior Center(509 N. Bell Ave.) • Denia Recreation Center(1001 Parvin St.) • MLK Jr. Recreation Center(1300 Wilson St.) • North Lakes Recreation Center(2001 W.Windsor Dr.) • Emily Fowler Central Library(502 Oakland St.) • North Branch Library(3020 N. Locust St.) • South Branch Library(3228 Teasley Ln.) • Central Fire Station(332 E.Hickory St.) • Fire Station#2 (110 Mockingbird Ln.) • Fire Station#4(2110 E. Sherman Dr.) 12/5/2019 41 Page 2 of 6 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE(Continued) TITLE: USE OF CITY FA CILITIES AND MEETING ROOMS REFERENCE NUMBER: 500.07 • Fire Station#5 (2230 W.Windsor Dr.) • Fire Station#6(3232 Teasley Ln.) • Fire Station#7 (4201 Vintage Pkwy.) Non-profit—An organization with a 501(c)(3)tax status specifically formed for purposes other than operating a profit-seeking business. GUIDELINES 1. General Guidelines for Inclement Weather Stations: 1.1. Designation of Inclement Weather 1. When weather conditions fall within the Inclement Weather definition, designated City facilities can be opened as warming/cooling stations. The designated City facilities are heated and/or air-conditioned with public access to restrooms,water fountains, and sitting areas during normal operations. 1.2. Public Outreach and Notification 1. When the conditions for Inclement Weather are met, City staff will communicate to residents,public, and social service agencies that the designated facilities are available as Inclement Weather Stations through its various communications channels such as website, social media,or media alerts. 2. City staff will create posters and flyers to help inform the community of services available during inclement weather. 3. City staff will help to communicate other non-City facilities and services available for those in need during inclement weather, such as emergency overnight shelter available from non-profit agencies,transportation, or other non-City facilities that are open for public use during inclement weather. 4. City staff will help to communicate ways in which interested community members can volunteer or donate to non-profits that provide facilities and services during inclement weather. 1.3. General Rules of Conduct 1. All persons utilizing City facilities during inclement weather must follow specific facility/program posted policies and procedures. 2. In addition to specific facility/program posted policies and procedures, any person in a City facility should adhere to the following rules or the person may be asked to leave the premises: a. Commits or attempts to commit any activity that would constitute a violation of any federal, state, or local criminal statute or ordinance. b. Is under the influence of any controlled substance or intoxicating liquor. c. Possesses, sells, distributes or consumes any alcoholic beverage, except as allowed at an approved event where the person is legally authorized to sell, distribute,or consume alcoholic beverages. 07/16/19 42 Page 3 of 6 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE(Continued) TITLE: USE OF CITY FA CILITIES AND MEETING ROOMS REFERENCE NUMBER: 500.07 d. Engages in conduct that disrupts or interferes with the normal operation of the facility/program or that disturbs City staff or individuals. Such conduct includes, but is not limited to,disregard of staff directives, abusive or threatening language or gestures,unreasonably loud or boisterous physical behavior or noise. e. Intentionally destroys, damages, or defaces any City or other individual's property. f. Brings in articles that create a hazard for other individuals by their size, condition or substance. g. Interferes with the free passage of City staff or other individuals into or out of any part of the facility. h. Brings animals inside of the facility other than those assisting persons with disabilities. i. Fails to wear shoes or shirts at all times inside of the facility. 2. Parks Facilities 2.1. Overview: Park and Recreational buildings and facilities are designated locations for emergency sheltering and inclement weather stations. The activation and use of park buildings and facilities for this purpose will follow the implemented policies and guidelines established for each. 2.2. Priorities and Conflicts: Park staff is responsible for providing a safe,clean, and comfortable environment for all park users. To that end, staff will evaluate activities and programs in progress for conflicts with the activation of an emergency shelter and inclement weather use. 1. Conflicts can include,but are not limited to,incompatible use with special events or separation between minors in recreational care with adult users. It may be necessary to designate a staging area for emergency shelter and inclement weather users that does not interfere with or pose a safety issue to ongoing programs or activities. Temporary relocation of shelter and inclement weather activities will also be considered until conflicts are resolved and a safe environment can be established for all users. 2. Additionally, staff will review any scheduled programs, events, or activities that may conflict with the activation of a shelter or inclement weather use. Program and event organizers and/or renters will be notified as soon as possible of any potential conflicts in use. Similar actions will be evaluated such as establishing designated areas or temporary relocation to resolve any potential issues. 2.3. Rules of Conduct: All park users are subject to the Rules of Conduct for park buildings, facilities, and open spaces. 2.4. Inclement Weather Station Locations and Hours: The following Parks Facilities are designated as warming and cooling stations and will be made available to the public during regular operating hours during Inclement Weather: • Denton Civic Center(321 E. McKinney St.) • Denia Recreation Center(1001 Parvin St.) • MLK Jr. Recreation Center(1300 Wilson St.) 07/16/19 43 Page 4 of 6 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE(Continued) TITLE: USE OF CITY FA CILITIES AND MEETING ROOMS REFERENCE NUMBER: 500.07 • North Lakes Recreation Center(2001 W. Windsor Dr.) The following Parks Facilities are designated as warming and cooling stations and will be made available to individuals age 50 and above in accordance with the facility's use and membership requirement. • American Legion Hall(629 Lakey St.) • Denton Senior Center(509 N. Bell) 2.5. Emergency Shelter and Mass Care Under the City's Emergency Management Plan: Emergencies are unforeseen circumstances that call for immediate action to save lives and to protect property and public health and safety. Emergency shelters will be set-up and operated in accordance with Annex C Shelter and Mass Care of the City's Emergency Management Plan. 2.6. Other Requests: Inclement weather may also result in a need for the use of indoor facilities after operational hours. The use of Parks and Recreation Department(PARD) facilities for overnight sheltering is only permitted under conditions set by Annex C Shelter and Mass Care of the City's Emergency Management Plan. Other requests for use of PARD facilities related to inclement weather are subject to the following: 1. Per this policy, all after-hour use of PARD facilities are subject to rental fees and requirements. 2. Requester must a local certified non-profit organization offering or delivering a service that is a recognized need or adopted program by the City. 3. A minimum of 48-hour notice is required to request the use of a PARD facility after hours due to inclement weather. In most cases,weather forecasting will provide advanced warning of impending weather conditions.Unforeseen weather conditions will be reviewed on a case-by-case basis. 4. hi cases of unforeseen weather conditions,the City Manager or his/her designee can authorize the use of a PARD facility. 5. Availability for inclement weather-related use will be considered under the following conditions: a. Temperatures,actual or wind chill, fall below 32 degrees. b. Daytime heat index expected to meet or exceed 105 degrees or daytime air temperature exceeds 103 degrees(National Weather Service Heat Advisory) c. Storm conditions that include hail d. Any amount of freezing rain, or when 2 to 4 inches of snow(alone or in combination with sleet and freezing rain) is present(National Weather Service Winter Weather Advisory) 6. A review of programs, activities,and special events will be performed by PARD staff to identify and evaluate potential conflicts of the requested use with on-going and/or scheduled events. Staff will provide direction and recommendations with the primary goal of ensuring a safe environment for all users. 7. City Policy 500.06 Use of City Facilities and Meeting Rooms Section 6.2 Priority will be used as a guide in recommending and providing accommodations. a. Parks Department programs and staff; 07/16/19 44 Page 5 of 6 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE(Continued) TITLE: USE OF CITY FA CILITIES AND MEETING ROOMS REFERENCE NUMBER: 500.07 b. Community building rentals; c. City sponsored or co-sponsored activities; d. City Boards and Commission meetings; e. Meetings of City staff, f. Uses requested by agencies or officials of local, county, state, or federal governments; g. Not-for-profit and civic organizations; and h. Other users with valid reservations. 8. Security and minimum staffing will be required. The level of security and staffing will be determined by the nature of the event and/or activity. 9. All proposed activities are subject to applicable policies and legal requirements such as but not limited to insurance and permits. 10. Request for fee reimbursement related to the use of PARD facilities under this policy will be reviewed and approved by City Council. Approval will be based on an approved budget and administrative guidelines. PARD staff will initiate the refund process within 7 business days of approval. 11. City Council will receive notification of all uses under this policy. Staff will provide Council with a quarterly report on the requests and budget status related to usage under this policy. 3. Library Facilities 3.1. Overview: Denton Public Library facilities are designated locations for inclement weather stations. 3.2. Priorities and Conflicts: Library staff is responsible for providing a safe,clean, and comfortable environment for all library users. To that end, staff will evaluate activities and programs in progress for conflicts with the activation of inclement weather use. 1. Conflicts can include,but are not limited to, incompatible use with special events or separation between minors in library programs with adult users. It may be necessary to designate a staging area for inclement weather users that does not interfere with or pose a safety issue to ongoing programs or activities. Temporary relocation of inclement weather activities will also be considered until conflicts are resolved and a safe environment can be established for all users. 2. Additionally, staff will review any scheduled programs, events, or activities that may conflict with the activation of inclement weather use. Program and event organizers will be notified as soon as possible of any potential conflicts in use. Similar actions will be evaluated such as establishing designated areas or temporary relocation to resolve any potential issues. 3.3. Rules of Conduct: All library users are subject to the Rules of Conduct for library facilities. 3.4. Inclement Weather Station Locations and Hours: The following Library facilities are designated inclement weather stations and will be made available to the public during normal operating hours. • Emily Fowler Central Library(502 Oakland St.),normal operating hours 07/16/19 45 Page 6 of 6 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE(Continued) TITLE: USE OF CITY FA CILITIES AND MEETING ROOMS REFERENCE NUMBER: 500.07 • North Branch Library(3020 N. Locust St.),normal operating hours • South Branch Library(3228 Teasley Ln.),normal operating hours 4. Fire Stations 4.1. Overview: The public access areas of Fire Station facilities are designated locations for inclement weather stations. 4.2. Priorities and Conflicts: The Fire Department is responsible for providing a safe,clean environment for Fire personnel at each station. In the event that the activation of a Fire Department facility for inclement weather use conflicts with the normal operation of the Fire Department,it may be necessary to relocate the inclement weather activities until conflicts are resolved and a safe environment can be established for all. For example, some Fire stations have limited public access space available and if necessary, individuals may need to be relocated if the space is full, if there are conflicts, or violations of rules of conduct. 4.3. Rules of Conduct: All visitors are subject to the Rules of Conduct for Fire Station visitors. 4.4. Inclement Weather Station Locations and Hours: The following Fire Station facilities are designated inclement weather stations and will be made available to the public in the designated days and times set forth below in only the public access area of each facility. • Central Fire Station(332 E. Hickory St.),Monday-Friday, 8 a.m. to 5 p.m. • Fire Station#2(110 Mockingbird Ln.),Monday-Sunday, 8 a.m.to 9 p.m. • Fire Station#4(2110 E. Sherman Dr.),Monday-Sunday, 8 a.m. to 9 p.m. • Fire Station#5 (2230 W. Windsor Dr.),Monday-Sunday, 8 a.m. to 9 p.m. • Fire Station#6(3232 Teasley Ln.),Monday-Sunday, 8 a.m. to 9 p.m. • Fire Station#7(4201 Vintage Pkwy.),Monday-Sunday, 8 a.m. to 9 p.m. 07/16/19 46 Temporary Inclement Weather Plan DENTON www.cityofdenton.com V. 3 1 Dec. 3 Extreme Weather Centers Inclement weather is when the temperature is expected to fall below 32 degrees or above 100 degrees fahrenheit, or when the City declares an emergency for weather conditions such as ice, severe flooding, etc. This list will continue to be updated based on facility openings. City Parks and Rec Facilities MLK Jr. Rec Center will open with extended hours during inclement weather with access to a sitting area, water, and restrooms. Masks are required for everyone who enters the building. Disposable masks and hand sanitizer are available at the door. The Civic Center, 321 E. McKinney St., will open for overflow seating as needed. MLK Jr. Rec Center 1 1300 Wilson St. 1 (940) 349-8575 Monday-Friday, 8 a.m.-7 p.m. I Saturday-Sunday, 8 a.m.-5 p.m. City Fire Stations Fire stations will allow the public to access restrooms, sinks, handwashing stations, and water. There are no sitting areas. Masks are required. Station 2 110 Mockingbird Ln. Monday-Sunday, 8 a.m.-9 p.m. Station 4 2110 E. Sherman Dr. Monday-Sunday, 8 a.m.-9 p.m. Station 5 2230 W. Windsor Dr. Monday-Sunday, 8 a.m.-9 p.m. Station 6 3232 Teasley Ln. I Monday-Sunday, 8 a.m.-9 p.m. Station 7 4201 Vintage Pkwy. I Monday-Sunday, 8 a.m.-9 p.m. Thejunction of Denton Community Our Daily Bread 11 W. Oak St. Ste. 100 941 .. 1: Monday-Friday 1 • 1 • Pr oviders •. • • DentonBad Weather, Monday-Saturday 18 a.m.-4 p.m. The junction of .unty- Salvation Army Denton MonsignorOutreach Center 1508 941 •• .11 Monday-Friday • 1 • • 941 •i ••i Dinner served at • 1 • :.• Weather, Monday-Sunday1 • • a.m. Overnightfrom • Date: January 15, 2021 Report No. 2021-004 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Gibbons Creek Steam Generation Station—Asset Purchase Agreement. Follow up to City Council Work Session BACKGROUND: On January 26, 2021, City Council will consider a Concurrent Ordinance to approve the proposed Asset Purchase Agreement(APA) authorizing the sale of the Gibbons Creek Steam Generating Station(Gibbons Creek) by the Texas Municipal Power Agency (TMPA) to the Gibbons Creek Environmental Redevelopment Group (GCERG), a Texas LLC that is a wholly owned subsidiary of Charah Solutions, Inc. (https:Hcharah.com/). A work session conducted by the City Council on on January 5, 2021 was held to provide background and details on the proposed transaction and to answer questions from the City Council. During the work session Council members requested specific information regarding anticipated land use by the Buyer. DISCUSSION: New Information — On January 11, 2021 the City Councils of Garland, Bryan and Greenville approved the Concurrent Ordinance that will be consider on January 26, 2021. Execution of the APA now awaits action by the Denton City Council. Question 1: Will the Buyer provide any details on planned land use of the redeveloped property? Response: TMPA staff contact the Buyer and requested the information. Charah's response is shown below: Gibbons Creek Environmental Redevelopment Group (GCERG)plans on redeveloping the approximately 6,200 acres in an environmentally conscious manner that will expand economic activity and benefit the surrounding communities through job creation,promotion of industry, support of the tax base including the Grimes Country Schools, as well as restoring the property to a state that will enable it to be put to its best potential use. GCERG has been working with TMPA for many months on this purchase and has investigated many possibilities for the property's future to maximize the value of the assets and improve the environment as well as contribute to the surrounding communities and the local economy. While these possibilities are still in negotiations and cannot be discussed in detail, we can assure you that the outcome to the communities will be very positive. The existing power plant will be demolished, and potential redevelopment uses for the property include; solar, battery, and energy storage options which utilize the existing transmission system, maximization of the reservoir's potential, reuse of the vast rail system, and other industrial uses. It is planned that the Gibbons Creek Reservoir R VPark and campground will continue to operate. GCERG will also work with TCEQ to complete all environmental remediation required for the property and then will redevelop the remediated property within all zoning restrictions. By matching the right potential buyers to the right 48 Date: January 15, 2021 Report No. 2021-004 assets, GCERG plans to achieve the greatest possible outcome for the property and the surrounding communities. The redevelopment of the property is expected to be completed within 36 months. Question 2: What land use restrictions are in place for the site in Grimes County? Answer: While some counties have been delegated zoning authority by the legislature, Grimes County is not one of them. Grimes County, together with all other counties, has authority to regulate land use around certain lakes constructed after a certain date, but Gibbons Creek Reservoir was constructed prior to such date. Grimes County does have, as authorized by law, a standard subdivision regulation. If, in the future, Charah decides to subdivide the plant site into tracts of 5 acres in area or smaller for residential development, Charah will have to comply with the subdivision regulations, but they are not land use regulations in the same sense as a zoning regulations. In sum, it appears that Charah may put the plant site to any lawful land use. Whether land is put to residential, commercial, or industrial use is beyond the scope of Grimes County regulations. STAFF CONTACT: Terry Naulty Asst. General Manager DME and Interim Director of Water/Wastewater Terry.naulty@cityofdenton.com (940) 349-7565 49 Date: January 15,2021 Report No. 2021-005 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: S&P Global Ratings for Utility System Revenue Extendable Commercial Paper Notes. BACKGROUND: The purpose of this report is to inform the City Council of S&P's rating for the newly adopted utility system revenue extendable commercial paper program. On December 18, 2020, staff participated in a rating conference call with S&P regarding the City's extendable commercial paper program. DISCUSSION: On January 12, 2021, the City received the rating of A-1+ from S&P on our utility system revenue extendable commercial paper(UECP) rating. The rating of A-1+ is the highest rating offered by this agency on short-term issuer credit ratings. The UECP rating is based on the long-term creditworthiness of the city's combined utility system, based on S&P's "Methodology For Linking Long-Term Ratings" (April 2017). S&P also affirmed the long-term `AA-` rating on the system's revenue secured debt. The outlook on the long-term rating is stable. The rating also reflects S&P's opinion of the combined utilities very strong enterprise risk profile, including its: • Very strong operational management assessment, as evidence by the electric system's recent transition to more renewable power supply and annual updates to its multiyear capital planning and financial forecasts; • Adequate market position. The electric system's average rate revenue remains greater than the state average, although we positively view the presence of an energy cost adjustment(ECA)that management reviews quarterly; and • Very strong economic fundamentals, reflected by the combined utility's residential customer base, lack of customer concentration, and Denton's participation in the broad and deep Dallas- Fort Worth metropolitan statistical area. The rating also reflects the combined utility's very strong financial risk profile including: • Fixed-cost coverage (FCC) that averaged a very strong 1.5x annually over fiscal years 2017- 2019; and • Extremely strong liquidity and reserves. For your review, staff has attached the Credit Opinion report from S&P. Only one rating was needed for the extendable commercial paper program, therefore, no other short-term ratings reports are expected. ATTACHMENT: S&P Credit Opinion Report S&P Ratings Chart 50 Date: January 15, 2021 Report No. 2021-005 STAFF CONTACT: Cassey Ogden, Director of Finance (940)-349-7195 Cassandra.Ogdenkcityofdenton.com 51 11511 Luna Road S&P Global Farme00 Farmers Branch,TX 75234 Ratings r no.:tel(214) 1 4 reference no.: 67179 January 12,2021 City of Denton 215 E.McKinney Denton,TX 76201 Attention:Mr.David Gaines,Assistant City Manager/CFO Re: US$100,000,000 Denton, Texas, Utility System Revenue Extendable Commercial Paper Notes Program, Series A, dated:Date of delivery, due:January 12,2031 Dear Mr. Gaines: Pursuant to your request for an S&P Global Ratings rating on the above-referenced obligations, S&P Global Ratings has assigned a rating of"A-1+" . S&P Global Ratings views the outlook for this rating as not meaningful.A copy of the rationale supporting the rating is enclosed. 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No person is intended as a third party beneficiary of any credit rating engagement or of a credit rating when issued. PF Ratings U.S. (4/28/16) Page 1 4 55 S&P Global Ratings RatingsDirect CRJ Summary: Denton, Texas; CP; Combined Utility Primary Credit Analyst: Theodore A Chapman,Farmers Branch+ 1 (214)871 1401;theodore.chapman@spglobal.com Secondary Contact: Timothy P Meernik,Centennial+ 1 (303)721 4786;timothy.meernik@spglobal.com Table Of Contents ............................................................................................................. Rating Action Stable Outlook Credit Opinion Related Research WWW.STANDARDANDPOORS.COM/BATING5S6DIRECT JANUARY 12, 2021 1 Summary: Denton, Texas; CP; Combined Utility CreditProfile US$100.0 mil util sys rev extendable cml pap nts grog ser A due 01/12/2031 Short Term Rating A-1+ New Denton comb util Long Term Rating AA-/Stable Affirmed Rating Action S&P Global Ratings assigned its 'A-1+'rating to the city of Denton,Texas'series A utility system revenue extendable commercial paper(ECP)program.The authorizing resolution permits the city to issue both tax-exempt and taxable notes, so long as the total amount outstanding does not exceed the authorized size of the program, currently$100 million. The ECP rating is based on the long-term general creditworthiness of the city's combined utility,based on our "Methodology For Linking Long-Term And Short-Term Ratings" (April 7, 2017). S&P Global Ratings also affirmed its long-term'AA-'rating on the system's revenue-secured debt. The outlook on the long-term rating is stable. The CP notes are secured by a subordinate-lien pledge on the net revenues of the city's combined electric,water, and wastewater system. In the event that the city needs to extend CP note maturities to 270 day from 90 days--for which the city already has codified policies that speak to timing and who among staff is responsible for each particular task--the notes would revert to the maximum interest rate of 10%if they are tax-exempt, or 12%for taxable notes. Because the series A program is not supported by a revolving credit agreement or even a letter of credit,we do not expect nor are we assuming for rating purposes that the city maintains sufficient cash on hand to retire outstanding notes in the event they cannot be rolled over. Instead,we understand that the city council will adopt a parameters resolution each year that delegates the staff the authority to issue revenue bonds to convert outstanding notes to long-term debt.With the six-month window afforded by the ability to extend note maturities plus the authorization to issue revenue bonds to retire the notes,it is our view that any risks outlined in our"Contingent Liquidity Risk" criteria (March 5, 2012)are sufficiently remote. A first-lien pledge of net revenues of Denton's combined electric,water, and wastewater systems secures the approximately$680 million in long-term debt outstanding as of fiscal year-end 2020. Most of the allocable debt--more than$450 million--are general obligation bonds and other tax-secured debt that was issued on behalf of the utility and is self-supported by surplus net revenues. In fiscal 2019,the electric system alone accounted for just over half of net revenues available for debt service,making it the focus of our analysis. Credit overview Denton's combined utility provides electric (about 54,500 accounts),water(37,000), and wastewater(35,000)service WWW.STANDARDANDPOORS.COM/RATINGSDIRECT 57 JANUARY 12, 2021 2 Summary: Denton, Texas; CP; Combined Utility to a primarily residential customer base 35 miles north of Dallas in Denton County.The electric system derives its power primarily from renewable purchased power agreements,which accounted for more than 60%of energy in fiscal 2019. The renewable portfolio is backed by market purchases and 12 city-owned quick-start combustion gas engines that provide 225 megawatts (MW)in peaking capacity. Our analysis incorporates the financial contribution of each utility system to the combined utility's capacity to meet its financial obligations.We applied our retail electric and gas utilities criteria in performing the analysis because the electric system's net revenue represents a preponderance of net revenue available to service the debt. In fiscal 2019, the electric system provided about 55%of net revenue,the water system 28%, and the wastewater system 17%. The rating reflects our opinion of the combined utility's very strong enterprise risk profile,including its: renewable power supply and annual updates to its multiyear capital planning and financial forecasts; although we positively view the presence of an energy cost adjustment(ECA)that management reviews quarterly; and concentration, and Denton's participation in the broad and deep Dallas-Fort Worth metropolitan statistical area. The rating also reflects our view of the combined utility's very strong financial risk profile,including its: The stable outlook reflects our view of the combined utility's mainly residential customer base, as well as the electric system's diverse power supply both as to supplier and fuel mix.The combined utility's unrestricted reserves provide financial flexibility to meet near-term challenges,including the economic effects of the pandemic on utility sales.A large,growth-driven capital plan that includes additional borrowing,however, could pressure the long-term financial profile. Environmental, social, and governance factors The combined utility has taken steps in recent years to reduce its carbon footprint and meet potential greenhouse gas emission regulations, given that its power supply centers on renewables and natural gas-fired peaking generation and has shifted away from coal. In February 2018,the city council adopted the Denton Renewable Resource Plan,which set a goal to generate 100%of the city's annual electricity from renewables by 2020.While the electric system still uses natural gas-fired generation and market purchases(which are generally gas-fired)to meet demand during peak periods, renewable sources provided more than 60%of energy requirements in fiscal 2019.The electric system executed PPAs for additional solar power in fiscal 2020. Through the early months of the pandemic,the city suspended shutoffs and disconnections of customers for health WWW.STANDARDANDPOORS.COM/RATINGSDIRECT 58 JANUARY 12, 2021 3 Summary: Denton, Texas; CP; Combined Utility and safety purposes.Although shutoffs resumed in August 2020,management will not assess penalty fees at least through March 2021, and the city continues to work with third-party non-profits for customer bill-pay assistance.The city used federal relief money plus some of its own reserves to further bolster the programs. We view governance-related characteristics as in line with those of comparable municipal utility systems. The city council is the final approver for base-rate adjustments,the annual budget, and the issuance of debt.The city has a long history of timely audits and continuing disclosure that we view as typical for the public finance universe. Stable Outlook Downside scenario If the impacts of the additional debt were to outstrip the currently ample financial capacity and weaken FCC over time to a level that is consistently below 1.4x,we could lower the rating. Upside scenario If, as S&P Global Economics projects, credit conditions for all governments and their related utilities face headwinds such as elevated unemployment for the next several years because of a potentially uneven and prolonged recovery, this could increase the likelihood of unfavorable variances to budget.Attainment of a higher rating would therefore be predicated mainly on the utility system's financial results far outstripping the forecast and at a level we would view as sustainable. Credit Opinion Enterprise risk profile The electric system's power supply has transitioned away from coal and now centers on contracted PPAs of renewable energy,natural gas-fired peaking capacity, and market purchases when doing so is economic.The electric system's Denton Energy Center, consisting of 12 quick-start combustion turbines with a capacity of 225 MW,began operations in July 2018. In fiscal 2019,the electric system derived 63%of its power supply from several PPAs(largely wind and solar), 22%from spot or day-ahead market purchases(which in Texas'market are usually gas-fired),and 15%from owned generation(natural gas).We view positively the number of projects from which the electric system gets power, reducing supply risk. The electric system is compliant with all environmental regulations. The combined utility's management annually updates its multiyear capital planning and financial forecasts.We view the planning and forecasts as credit positive because they can provide direction, identify problems, and require a forward-looking view. The electric system's weighted-average revenue per kilowatt-hour as a percentage of the state average was 117%, according to 2019 data from the U.S. Energy Information Administration.We believe that the electric system's rate-raising flexibility is limited given the rates are above the state average. The city did not implement a base-rate adjustment for any system in fiscal 2021 nor has it had to do so over the past five years, and in fact reduced water rates by 2%in 2020. Nor is the city planning to adjust base rates in the upcoming five years.The electric system has an ECA to recover changes in power costs. In our view,the ECA is a credit positive because it allows the electric system WWW.STANDARDANDPOORS.COM/RATINGSDIRECT 59 JANUARY 12, 2021 4 Summary: Denton, Texas; CP; Combined Utility to adjust rates when costs for purchasing power(or fuel)change. For the water and wastewater systems,the combined bill for a residential customer consuming 6,000 gallons per month is$74.70, or about 1.9%of median household effective buying income. In our view,the water and wastewater rates are affordable. In fiscal 2019 for the electric system,residential customers made up about 88%of customer accounts, 39%of kilowatt-hour sales, and 44%of revenue.We believe that residential customers provide stability, as residential sales are less volatile than commercial and industrial sales. Customer concentration is limited for the combined utility. In fiscal 2019,the top customer accounted for about 4%of the combined utility's revenue,while the top 10 customers accounted for 14%. The city's median household effective buying income is 9 1%of the national rate,skewed somewhat by the large number of college students living in Denton, chiefly the University of North Texas and Texas Woman's University, both of which had a mix of in-person and virtual enrollment in fall 2020. In November 2020,the unemployment rate in Denton was 6.4%,half of what it was in April 2020 and in line with the region's and nation's levels. Financial risk profile The combined utility's FCC was 1.43x in fiscal 2019, 1.8x in fiscal 2018, and 1.27x in fiscal 2017, all generally strong,in our view. FCC is S&P Global Ratings'adjusted debt service coverage metric that incorporates all use of utility operating revenues regardless of lien or accounting treatment, and also treats certain mandatory minimum costs as if they were debt service payments of the city even if they are in actuality operating expenses.We make these adjustments to inform our view of true financial capacity as well as to improve comparability between peer utilities. The city has represented that despite the macroeconomic conditions, COVID-19 has not had a material impact on cash flow. Still,management also implemented a number of cost-saving measures in fiscal 2020 to avoid any unfavorable variance to budget. Furthermore,management is projecting declining purchased power expenses over the next five years,while also assuming that revenue from the Denton Energy Center declines as renewable generation increases throughout the Electric Reliability Council of Texas market. The combined utility's unrestricted reserves totaled$181 million, equivalent to about nine months of operating expenses, at the end of fiscal 2019. In its long-term financial forecast for each of the three utility divisions, management considers beginning-of-the-year reserves to be available for appropriation, although the forecast also indicates operating reserves will be well above the respective targets of: We believe that this amount of liquidity provides sufficient cushion to any lingering effects of the pandemic on the economy and customer accounts receivable.The extremely strong available reserves also provide the city the discretion if it chooses to strategically deploy cash toward the capital plan,which is substantial. The plan contains $501 million in capital commitments through fiscal 2025, about$385 million of which will be financed with additional debt. Currently,the only cash slated to be used to fund capital projects will be impact fees. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT 60 JANUARY 12, 2021 5 Summary:Denton, Texas; CP; Combined Utility Related Research Certain terms used in this report,particularly certain adjectives used to express our view on rating relevant factors,have specific meanings ascribed to them in our criteria,and should therefore be read in conjunction with such criteria.Please see Ratings Criteria at www.standardandpoors.com for further information.Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com.All ratings affected by this rating action can be found on S&P Global Ratings'public website at www.standardandpoors.com.Use the Ratings search box located in the left column. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT 61 JANUARY 12,2021 6 Copyright©2021 by Standard&Poor's Financial Services LLC.All rights reserved. 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WWW.STANDARDANDPOORS.COM/RATINGSDIRECT 62 JANUARY 12,2021 7 S&P Short-Term Issue Credit Ratings Short-Term Issue Credit Ratings Category Definition A short-term obligation rated 'A-V is rated in the highest category by S&P Global Ratings.The obligor's capacity to meet its financial commitments on the obligation is strong.Within this category, certain obligations are A-1 designated with a plus sign (+).This indicates that the obligor's capacity to meet its financial commitments on these obligations is extremely strong. A short-term obligation rated 'A-2' is somewhat more susceptible to the adverse effects of changes in A-2 circumstances and economic conditions than obligations in higher rating categories. However,the obligor's capacity to meet its financial commitments on the obligation is satisfactory. A short-term obligation rated 'A-3'exhibits adequate protection parameters. However, adverse economic A-3 conditions or changing circumstances are more likely to weaken an obligor's capacity to meet its financial commitments on the obligation. A short-term obligation rated 'B' is regarded as vulnerable and has significant speculative characteristics.The B obligor currently has the capacity to meet its financial commitments; however, it faces major ongoing uncertainties that could lead to the obligor's inadequate capacity to meet its financial commitments. A short-term obligation rated 'C' is currently vulnerable to nonpayment and is dependent upon favorable C business, financial, and economic conditions for the obligor to meet its financial commitments on the obligation. A short-term obligation rated 'D'is in default or in breach of an imputed promise. For non-hybrid capital instruments, the 'D' rating category is used when payments on an obligation are not made on the date due, unless S&P Global Ratings believes that such payments will be made within any stated grace period. However, D any stated grace period longer than five business days will be treated as five business days.The 'D' rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action and where default on an obligation is a virtual certainty, for example due to automatic stay provisions.A rating on an obligation is lowered to'D' if it is subject to a distressed debt restructuring. 63 Date: January 15,2021 Report No. 2021-006 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Provide a report on the updated Business Retention and Expansion plan. EXECUTIVE SUMMARY: The Denton Business Retention and Expansion(BRE) Program is a community-based program used to open lines of communication and build relationships among the City and local businesses in order to maintain a healthy local economy and a positive business climate. The Denton BRE Program promotes job growth and business expansion by helping identify concerns and barriers to the survival and growth of local businesses. Staff initiated the development of a new BRE Program during 2020, with implementation beginning in 2021. BACKGROUND: The recent comprehensive economic development strategic plan identified a need to focus on fostering growth within the business community. Among the recommendations was a need to update and expand business retention and expansion efforts. With this in mind, staff worked to draft a new BRE Program to roll out in 2021. Staff worked through the Economic Development Partnership Board(EDPB) to develop the new BRE Program Plan. Staff presented the draft BRE Program outline and key program elements to the EDPB on Oct. 14, 2020 for the Board's review and feedback. Based on the feedback provided, staff drafted a final BRE plan that was approved by the EDPB on Nov.11, 2020. The BRE program is the primary tool to assist staff in assessing the needs and barriers of existing businesses in the community. The program includes many ongoing local economic development programs that focus on retaining and growing the existing businesses in Denton, and also includes an increased emphasis on outreach, data collection and analysis, and seeking resolutions for businesses. The 2021 BRE Program Plan includes the following goals and objectives: • Establish and build relationship with local employers to accurately assess their business needs, challenges, or opportunities for expansion and growth. • Provide assistance to business that will help them overcome their challenges and assist them with expansions that add new jobs. • Provide better information and understanding for all local leaders of the strengths and weaknesses of the business climate. • Foster more employment opportunities. • Build cooperation and consensus among local government, economic development organizations and businesses and support collective action focused on improving the local and regional business climate 64 Date: January 15,2021 Report No. 2021-006 • Provide support for Minority Business Enterprises and Historically Underutilized Businesses (MBE/HUB). A key factor in the BRE Program is business visits. These visits help build relationships between business leaders and the Economic Development team. The visit process includes an introductory email, a pre-survey, the visit survey, and a follow-up. Staff will include a cross- section of businesses in Denton in the visitation cycle which will occur from January to August 2020. The goal is to visit 10-15 business in each category of large, medium, small, and start-up business. A new feature this year is allowing businesses to request a visit. Staff are working on a request portal that will allow businesses to request a contact from the BRE team and arrange for a visit. In in interim,businesses requesting a visit can contact the City's Economic Development department directly. While the COVID-19 pandemic is ongoing, all visits will be conducted under strict COVID-19 safety protocols, with digital visits being held whenever possible or requested. In addition to business visits, other components of BRE best practices have been incorporated into the Program. These additional efforts will strengthen engagement within the business community and connect businesses to the resources they need. These efforts include: • Small business workshops • Industry/sector roundtables • Welcome letters to new businesses • Business newsletter and online information • Annual business survey • Networking opportunities • Workforce development • MBE/HUB support • Create cohort of local organizations for business support/resources (Denton Business Allies) • Business Recognition Awards • Access to local business resources • Access to funding sources • Establishing a MWBE Vendor Policy within the City • Disaster recovery assistance Staff is working with several local and regional business support organizations and other City departments to either promote existing efforts or to develop programs around new efforts. In preparation to launch the revamped BRE Program, staff has completed developed of the pre- survey and business survey, finalized the BRE business visit list, and engaged with several community stakeholders to discuss program implementation. The BRE Program Plan is designed to be a living document, guided by the information collected and the feedback from engaged stakeholders. Much like the BRE Program is cyclical, the Plan 65 Date: January 15,2021 Report No. 2021-006 and its elements will be reviewed, evaluated, and improve on a continuous basis to ensure that Denton businesses have access to the information and resources to be successful. ATTACHMENT(S): Exhibit 1 —BRE Program Plan STAFF CONTACT: Kay Brown-Patrick Business Development Administrator (940) 349-7771 Kay.Patrick&cityofdenton.corn REQUESTOR: Staff initiated PARTICIPTAING DEPARTMENTS: Economic Development STAFF TIME TO COMPLETE REPORT: 1 hour 66 BUSINESS RETENTION & EXPANSION ( BRE ) PROGRAM cl Y DENTON Itomm BUSINESS RETENTION & EXPANSION (BRE) PROGRAM PROGRAMDENTON 'BUSINESS RETENTION & EXPANSION The Denton Business Retention and Expansion (BRE) Program is a community-based program used to open lines of communication and build relationships among the City and local businesses in order to maintain a healthy local economy and an improved business climate.The Denton BRE Program promotes job growth and business expansion by helping identify concerns and barriers to the survival and growth of local businesses. Program Goals • Establish and build relationships with local employers to accurately assess their business needs, challenges, or opportunities for expansion and growth. • Provide better information and understanding for all local leaders of the strengths and weaknesses of the business climate. • Foster more employment opportunities. • Build cooperation and consensus among local government, economic development organizations, and businesses and support collective action focused on improving the local and regional business climate. • Provide support for Minority Business Enterprises (MBE) and Historically Underutilized Businesses (HUB). Short-term objectives • Provide community support for local business • Help businesses improve profitability • Identify and address immediate concerns of individual business • Let local businesses know how much they are valued in the community • Establish an implementation plan to improve the business climate • Compile an inventory of existing businesses with contact information Long-term objectives • Increase the competitiveness of local businesses • Promote business development and job creation • Establish an implementation plan of action for business growth Ultimately, BRE programs serve to answer the following two questions: 1) Who can we help to grow in order to expand employment and the tax base? and, 2) Who is at risk of closing or moving that we can help to stay open or remain in the community? Page I 1 68 41%,10MM DENTON BUSINESS RETENTION & EXPANSION (BRE) PROGRAM Additionally, the BRE Program will assist the City, the Economic Development Department, partners, and community leaders gather business intelligence on local businesses. BRE surveys, company visits, and other formal or informal data gathering techniques can provide a snapshot of the community's business climate. SELECTIONBUSINESS The City of Denton greatly values its existing Denton businesses and is poised to assist in their growth and expansion. A key factor in the BRE Program is business visits. These are visits made to as many area businesses as possible and help build relationships between business leaders and the Economic Development team. These visits create a connection between staff and businesses so as problems or obstacles arise, businesses know who to contact for assistance. The information gathered during such visits typically provides insights on local business needs, plans for relocation, expansion, or closure, and perceptions or attitudes of the business community. How does it work? Economic Development Program staff will arrange a site visit with a designated company. Before the visit, staff will collect information from a pre-survey. During the visit, staff will connect with the visit and fill out the associated business survey document. Following the visit, staff will work to resolve any issues or questions that arise during the meeting, follow-up as needed, or make connections to other partners or resources. After the visit, the business is encouraged to contact staff as appropriate when assistance is needed. These efforts are meant to assist existing companies to ensure their retention and expansion within the community. How many visits are scheduled and how do they occur? • Visits: 10-15 targeted per size/focus area • Visits may be conducted face-to-face or virtually Who comes on the visit? • City of Denton Economic Development staff • Other business industry partners as appropriate What are the benefits? • Provides companies with an economic development contact within the City to address issues or needs. • Provides the City with greater insight and understanding of companies and their key decision makers. Page 2 69 41%,10MM DENTON BUSINESS RETENTION & EXPANSION (BRE) PROGRAM Increases communication and cooperation between the City and local companies. The following section outlines the general steps in the BRE business visit process. Introductory Contact Initial contact with the businesses will be made by a staff member via the preferred contact method (typically phone or email) to schedule a visit. This allows staff to make introductions or get a preliminary idea of what information or resources will be helpful to have prepared for the visit. Pre-Survey Once a visit is scheduled, the business will receive an electronic copy of an optional pre-survey to complete in advance of the visit. The pre-survey will assist in determining what partners should join on the visit and better prepare the team in researching for resources to address any concerns and having them prepared for the visit. Business Survey Form A generic survey (Attachment A— Business Survey) will be used during site visits to guide data collection and discussion. By using a consistent survey, staff are able to track businesses that have been contacted, categorize and better address concerns, and identify trends both within specific industries or other meaning categories. Follow-Up A "thank you" card will be sent to each person interviewed after the meeting expressing the City's appreciation for the business. Staff will utilize a Client Relationship Management (CRM) system for tracking and follow up. Staff will maintain a contact list by company and input all information gathered into the system. Staff can then re-evaluate any business needs at the end of the year. If concerns are brought up during the initial interview, they will be addressed afterward with the appropriate persons, and actions taken will be relayed to the business. When needed, an additional visit will be made with appropriate representatives from the BRE team to address the issues. Business Selection Process Staff will include a cross-section of businesses in Denton in the visitation cycle. The City of Denton Economic Development Department will devise a process for selecting which businesses receive a visit based on various goals and targets. This process will allow for diversity and inclusion of particular subgroups of interest within the business community. Part of this process involves using the two-digit North American Industry Classification System (NAICS) business sector coding to ensure adequate representation of businesses chosen from each Page 13 70 41%,10MM DENTON BUSINESS RETENTION & EXPANSION (BRE) PROGRAM sector of the local economy. Businesses will be prioritized using selection criteria including number of employees, building size, land and building space available for potential expansion, and other business factors. Although this method is not statistically representative of the greater business population, it will provide the team with information from businesses in the following sub-categories: large, medium, small, and start-up. Businesses may be chosen at random or may be selected based on key factors or economic criteria. These businesses can include, but are not limited to: • Long-standing businesses in the community; • Creative, model businesses; • Large employers; • New businesses with growth potential; • Minority-owned businesses; • Businesses that serve an ethnic market; • Businesses that serve existing businesses; and • Unusual businesses that add character. Successful BRE programs are cyclical and continuous. Knowing what the issues are for businesses is an ongoing process for business and economic support organizations. Throughout the BRE cycle, there are months devoted to collecting and assessing data, providing reports to stakeholders, evaluating the effectiveness of the program, and making any needed adjustments. The cycle concludes with an evaluation period that includes follow-up on immediate 'red flag' issues in addition to short and long terms action plans. The follow-up phase is ongoing and includes action throughout the year to address concerns or needs. BRE visit cycle January—August Evaluation period September— December PARTNERS/LOCAL • It takes a team of community and regional stakeholders to make a BRE program effective. A critical component of the Denton BRE Program will be to build a team of economic, community and workforce development organizations that provide programs, resources, and services to the business community. With a team of service and resource providers in place, we will more effectively build a cohesive, responsive approach to address the needs of businesses in Denton. The following groups/organizations will be utilized to assist in successfully supporting the business community: Page 14 71 It"' amm BUSINESS RETENTION & EXPANSION (BRE) PROGRAM TON • EDP • TWU Women Entrepreneur Center • Denton County • NCTC • Denton Chamber of Commerce • Stoke • Denton Black Chamber of • Local business associations Commerce • United Way • SBDC • Denton ISD • Texas Workforce Solutions • Individual business leaders in the • UNT Murphy Center for community Entrepreneurship & Innovation • Utility companies ACTIVITIES & INITIATIVES Fostering relationships with businesses and business leaders requires intentional engagement and support. It is integral to go beyond the basic business surveys and visitation model to a more comprehensive, value-added model that can address various aspects of business operations, including marketing, finances, workforce training and development, and strategic planning. Therefore, in addition to the business visits, there are other factors to the BRE plan that will be added to strengthen engagement within the business community. These include: • Small business workshops • Welcome letters to new businesses • Business newsletter and online information • Annual Business Survey • Networking opportunities/Peer roundtables • Workforce development • MBE/HUB support • Denton Business Allies • Business Recognition Awards • Access to local business resources • Access to funding sources • Establishing a MWBE Vendor Utilization Policy within the City • Disaster recovery assistance DATA • • The information gathered from visits and surveys can provide valuable intelligence on the successes and obstacles facing businesses in Denton. This information then helps the Economic Development team identify the key issues that need to be addressed. It also helps to tailor the programs and support services that provide the most value to local businesses. Page 15 72 4"It"Immm DENTON BUSINESS RETENTION & EXPANSION (BRE) PROGRAM The goal of the program is to capture both quantitative and qualitative data regarding business operations, expansions, challenges, and the overall business climate. The following are representations of the type of data sets that will be collected. Quantitative Measures • Number jobs created/retained • Number of retained businesses • Cost per job created/retained • Number of businesses visited • Number of businesses surveyed • Number of businesses assisted • Percent of jobs held by local residents/LMI • Average salary of jobs created Qualitative Measures • Business perceptions of local government • Business perceptions of the community • Relationship between business retention programs and City services available to businesses (e.g. workforce development initiatives) • Involvement of assisted businesses in other community activities ASSESSING RESULTS During the evaluation period (September-December), the information gathered during the visit cycle will be evaluated for general needs the businesses may have as well as to assess the success of our approach to supporting the business community. For example, tracking how many businesses have remained open and how many have expanded their activities can indicate whether or not the BRE program efforts are producing results. An annual assessment of the program will provide information on which aspects of the program worked well and which did not. Questions to be considered in evaluating the BRE Program • To what extent was the BRE initiative effective in retaining and/or expanding business in our community? • What changes occurred in the community as a result of BRE? Why? • What statistics or stories (e.g. a business did not relocate because of the program) can we report back to the community? • What objectives were not achieved? Why not? • What challenges or opportunities did we experience in terms of implementing the project? Page 16 73 Itomm BUSINESS RETENTION & EXPANSION (BRE) PROGRAM DENTON Report Results The Economic Development Department will communicate BRE results through periodic reports that summarizes the BRE activities. BRE visit and survey data, along with other reports, will be compiled into discernible trends to inform City Council, EDPB, stakeholders, investors, and the public. These periodic reports will be used to help track progress and identify things that require attention, as well as acknowledge achievements. Relevant information in these reports may include number of BRE visits, expansion plans, perception of the area's business climate, utilization of economic development programs, and more. Page 1 7 74 It"' amm BUSINESS RETENTION & EXPANSION (BRE) PROGRAM TON Attachment A- Business Survey Business Retention & Expansion Survey Date of visit: Met with: Company Name: Company Address: Company Website: Primary Contact: Business Phone: Mobile: Email: Is your company locally owned? ❑ Yes ❑ No Where are your corporate headquarters located? Do you have multiple locations? ❑ Yes ❑ No If yes, where? Primary industry type: NAICS Code: Brief description of the services or products provided: How many total employees locally? FT? PT? Temporary/Contract? Does the current condition of your facility meet your needs for the next year? ❑ Yes ❑ No Is your facility owned or leased? Plans to expand in the next three years? ❑ Yes ❑ No Is there room for expansion at your current site? ❑ Yes ❑ No Are you currently experiencing recruitment problems? ❑ Yes ❑ No If yes, Page 18 75 It"' amm BUSINESS RETENTION & EXPANSION (BRE) PROGRAM TON Explain. What is the desired level of education for the majority of your potential employees? What is the average hourly wage range paid to employees? Are there any areas of training that would be beneficial to your employees? For example, soft skills, accounting, welding, or coding. Explain Who are your top three suppliers? Please include business name and location. Who are your top three customers? Among the companies you do business with, suppliers or customers, are there any you think would benefit by moving to the DFW Region? ❑ Yes ❑ No Explain Name top 3 challenges your business is currently facing: Page 19 76 4"It"Immm DENTON BUSINESS RETENTION & EXPANSION (BRE) PROGRAM Additional notes: FOR STAFF USE: Team Members Present: City Chamber Other VIA ❑ Phone ❑ In-Person Interview Follow-Up: Recommendations: Action: Follow-up Date: Comments: Note any additional contact made with business 77 Date: January 15,2021 Report No. 2021-007 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Provide an update on the Economic Development Strategic Plan. EXECUTIVE SUMMARY: In 2019, the City engaged economic development consulting firm TIP Strategies to lead Denton's comprehensive economic development strategic planning process. Since November 2019, staff and the TIP team have worked together to develop a plan that outlines Denton's specific vision and the strategies and tactics to bring the concept to fruition. Community members and various internal and external stakeholders were engaged throughout the process, with the Economic Development Partnership Board serving as the primary steering committee. After months of community and stakeholder engagement, the Economic Development Strategic Plan was presented to City Council for consideration. On Oct. 27, 2020, the City Council provided direction to move forward with the plan. A formal resolution to adopt the plan will be brought forward for Council consideration in February. BACKGROUND: In 2019, the City engaged economic development consulting firm TIP Strategies to review the City's partnership agreement with the Denton Chamber and lead Denton's economic development strategic planning process. Since that time, staff and the TIP team have worked together to engage stakeholders, collect and analyze relevant data, and develop a strategic plan for economic development that outlines Denton's vision and the strategies and tactics to bring the vision to fruition. The project goals for the development of the strategic plan were as follows: 1. Assess the community and compare it to similar communities, including a full SWOT analysis and analysis of the existing tax base. 2. Develop a vision and goals for economic development in Denton, incorporating feedback from relevant stakeholders. 3. Identify target industries and subsectors, make recommendations regarding how to attract and target specific industries, including demonstrating how targeted industries support the vision and goals, and identify the best methods for recruitment. 4. Review incentives and economic development tools,provide best practices and guidelines for strategic use, and provide recommendations on traditional and nontraditional incentives. 5. Analyze and make recommendations regarding areas for development and redevelopment. 6. Create an actionable work plan that guides the next three to five years of departmental work plans, staffing, assignment of duties, and include clear metrics to measure performance and execution of strategies. 78 Date: January 15,2021 Report No. 2021-007 Overview of Process The work to develop the strategic plan was broken down into three phases (discovery, opportunity, and implementation), with specific tasks assigned to each phase. PROCESS AND TASKS DISCOVERY OPPORTUNITY IMPLEMENTATION i i Project Launch 2-1 Strategic Direction 3 1 Strategic Plan i Planning Context 22 Strategic Growth Areas 3 2 Implementation Matrix —Policy Framework 2.3 Best Practices 3.3 Final Report&Presentation —Competitiveness 2 4 Opportunities Analysis 1 3 Stakeholder Feedback &Workshop 1 4 Competitive Position 1 5 SWOT Analysis The discovery phase focused on stakeholder engagement. Community members and various internal and external stakeholders were engaged through roundtable discussions. The roundtable focus areas included: tech/entrepreneurship, industry, education and workforce, development and infrastructure, young professionals, developers, and higher education. Also, the team had discussions with representatives from the Denton Chamber of Commerce, Denton County Judge Andy Eads and Denton County Economic Development staff, Texas Woman's University, the University of North Texas,North Central Texas College, Denton ISD, the Downtown Economic Development Committee, Stoke Denton, relevant City departments (Airport, Capital Projects, City Manager's Office, Development Services, DME, Economic Development, and Utilities). The City Council Members also participated in individual conversations and work sessions with TIP Strategies. The Economic Development Partnership Board(EDPB) served as the primary steering committee and held many discussions with TIP Strategies and staff during the process, including at their January and February 2020 meetings. Once stakeholders had been engaged, a draft plan was developed,with the draft plan being representative of the input received through the engagement process. At this point in the plan development process, the COVID-19 pandemic forced changes to the development schedules and to the plan itself. Due to the cancellation of planned community meetings as a result of the COVID-19 pandemic, staff initiated a digital/online engagement process that included posting the plan on a dedicated webpage and allowed for an online public comment period(July 1 to July 31, 2020)to engage the community-at-large in the planning process. Public comments were incorporated into the plan wherever possible and shared with the EDPB and City Council during work sessions. To guide completion of the plan, the EDPB reviewed and discussed the draft plan at the June 24, July 8, and Aug. 12, 2020 EDPB meetings. At the July 8 meeting, the Board requested additional details be brought back regarding implementation, including an outline of the tasks associated with implementing the plan, the targeted implementation timeline, the responsible entity, the cost associated with tasks and programs, and the amount of funding needed for the proposed catalyst fund. Staff and TIP Strategies worked together to complete a draft Implementation Matrix and 79 Date: January 15,2021 Report No. 2021-007 quantify estimated costs and an annual investment that correlates with the proposed implementation matrix. This information was presented to EDPB at their Aug. 12 meeting, with the EDPB voting 8-0 to recommend City Council adopt the Economic Development Strategic Plan. The City Council reviewed the plan at work sessions on Aug. 18 and Oct. 27, 2020,providing direction on Oct. 27 to move forward with adopting the plan. Staff worked with TIP Strategies to complete the formal preparation of the plan and implementation matrix. Staff intends to bring forward a resolution adopting the plan in early 2021. Overview of Strate ig c Plan This section includes a summary of the core sections of the Economic Development Strategic Plan. A copy of the full plan is attached as Exhibit 1. The Economic Development Strategic Plan includes guiding principles, developed from stakeholders' input, which help define economic development in Denton, goals, and strategic growth areas,which allow the City to organize its economic development efforts. The plan also includes an implementation matrix,which outlines specific tasks, a proposed timeline, estimated costs, and identifies what entity will be responsible for implementation. The guiding principles of the plan reflect the values of the community. In the context of an economic development strategy, they are a set of statements expressing how a community defines economic development. These principles were crafted through input from Denton stakeholders throughout the planning process. The guiding principles are: • Core Resiliency: Protect the City's core economic base and major employers by retaining business and providing them with the support necessary to continue doing business in Denton. • Future Focused: Position Denton for future growth by understanding trends and adopting a proactive approach to economic development. • Inclusive Growth: Enhance economic development opportunity for all residents by utilizing different strategies that recognize the diverse needs and assets of different communities, especially those in south and east Denton. • Entrepreneurial Spirit: Cultivate the City's entrepreneurial ecosystem by investing in quality of place and catalyzing innovation that will continue to attract creative professionals to Denton. • Cultural Vitality: Strengthen Denton's cultural vitality by continuing to promote arts and music while also marketing the City as DFW's cultural hub. The plan was built around three major goals, which provide the three primary areas under which the City should organize its economic development program over the next several years. The goals are: • Accelerate Recovery: Coordinate short-economic recovery efforts from the COVID-19 pandemic by aggregating information, collaborating with regional partners, and allocating resources to top priorities. 80 Date: January 15,2021 Report No. 2021-007 • Foster Growth: Attract long-term economic growth aligned with community priorities by focusing on the four strategic growth areas of connectivity, creativity, sustainability, and competitiveness. • Strengthen Community Inclusion: Align economic,workforce, and community development efforts to meet critical community needs and to strengthen community inclusion. Under each goal, the plan includes strategies and actions that are incorporated into current and future economic development programs. Under the "Foster Growth" goal, the plan also includes details regarding the creation and fostering of economic ecosystems. These ecosystems are the networks of resources, key players, and activities to help achieve the goals. This includes anchor institutions, competitions and events, local capital, emerging participants,building blocks, and public awareness activities that enhance and create a thriving ecosystem. Each goal also includes a detailed list of actions to be incorporated into economic development work plans. Each action includes the responsible entity, cost, and the timeline for implementation. The efforts are summarized in the Implementation Matrix, attached as Exhibit 2. The Implementation Matrix provides a mechanism through which staff can review and evaluate performance and track economic development activities. The Matrix is designed to be regularly reviewed and evaluated overtime by both staff and leadership. The Matrix is, and should remain, dynamic as priorities shift over time, resources come available, new programs get created, and opportunities are presented. Capacity and Resources In addition to the Economic Development Strategic Plan's main sections, the plan also includes a section devoted to recommendations related to capacity building and the dedication of resources. This includes recommendations related to the role and administration of the EDPB regarding strategic decisions and the creation of a workgroup to focus on tasks and activities. Staff has already initiated the creation of the Economic Development Work Group, which was also detailed in the City's partnership agreement with the Denton Chamber of Commerce. The Plan also includes a section related to funding and the creation of the Denton Catalyst Fund. Staff worked with TIP Strategies to conduct an analysis of recommended strategies, looked at comparative funding used by cities using the economic development sales tax, and other factors to develop recommendations related to the creation and funding of the Catalyst Fund. Staff presented options to the City Council at the Aug. 18 and Oct. 27, 2020, City Council meetings. The staff recommendation is to create a fund that uses available fund balances and a small percentage of ROI from the City's utility funds that will be built up over time. Because a final recommendation regarding the specific funding process was not reached, staff are working to schedule future discussions with the City Council regarding the creation of the Catalyst Fund and the programming required by the strategic actions laid out in the Plan. ATTACHMENT(S): Exhibit 1 —Draft Economic Development Strategic Plan Exhibit 2—Draft Implementation Matrix 81 Date: January 15,2021 Report No. 2021-007 STAFF CONTACT: Jessica Rogers Director of Economic Development (940) 349-7531 Jessica.Rogers@cityofdenton.com REQUESTOR: Staff initiated PARTICIPTAING DEPARTMENTS: Economic Development STAFF TIME TO COMPLETE REPORT: 2 hours 82 DECEMBER 2020 MCI STRATEGIES ECONOMI DEVELOPMENT STRATEGIC PLAN f P • N r CITY OF DENTON) TEXAS ACKNOWLEDGMENTS TIP Strategies would like to thank the following individuals for their participation in this planning process, along with the hundreds of business leaders,community leaders,young professionals, and other major stakeholders from Denton who participated in this project. Marty Rivers Steve Edgar Erica Sullivan Denton Chamber of Commerce Medical City Denton City of Denton John Baines Todd Hileman Jason Tomlinson Denton Black Chamber of Commerce City of Denton Texas Woman's University Keely Briggs Jill Jester Jamie Wilson Denton City Council, District 2 Denton Chamber of Commerce Denton Independent School District Jesse Davis Mark McLellan Denton City Council, District 3 University of North Texas Tony Clark Independent Bank Group Jimmy Mejia Denton Hispanic Chamber of Commerce Chris Davis Pamela Padilla Peterbilt University of North Texas Charlie Dromgoole Erica Pangburn Denton Chamber of Commerce Denton Chamber of Commerce Bob Eames Jessica Rogers Aviation City of Denton CONSULTING TEAM CONTACT STRATEGIES TIP Strategies 2905 San Gabriel Street,Suite 309,Austin,TX 78705 PH: 512-343-9113 TIP STRATEGIES, INC.,is a privately held economic www.tipstrategies.com development consulting firm with offices in Austin and CONSULTING TEAM Seattle.TIP is committed to providing quality solutions Tom Stellman,CEO/Founder for public sector and private sector clients. Established in Jaclyn Le,Consultant 1995,the firm's primary focus is economic development Brent McElreath,SVP,Research&Development strategic planning. Evan Johnston,Analyst Phoebe Polakovic,Analyst All images in this report were provided by the city of Denton or purchased Meredith Eberle, Designer from Adobe Stock by TIP Strategies,unless otherwise noted 84 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I Project Background and Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Plan Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Guiding Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Economic Development Goals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Strategic Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Goal I Accelerate Recovery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 —Up Goal 2 Foster Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Goal 3 Strengthen Community Inclusion . . . . . . . . . . . . . . . . . . . . . 42 Capacity and Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Economic Development Partnership . . . . . . . . . . . . . . . . . . . . . . . . 46 Funding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Programs and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Internal Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Strategic Performance Metrics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Appendix A. Data Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Appendix B. SWOT Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Pt Appendix C. Municipal Utility Comparison. . . . . . . . . . . . . . . . . . . . 65 Appendix D. Ecosystem Directory. . . . . . . . . . . . . . . . . . . . . . . . . . . 66 ELI 85 INTRODUCTION Denton has changed. Once considered a quiet college town on the outskirts of EXECUTIVE the Dallas-Fort Worth (DFW) Metroplex, Denton has grown significantly since the City's last comprehensive economic development plan.The City leaders must be commended for the investments made in downtown Denton and the SUMMARY Westpark Industrial Park over the past decade.These intentional efforts have put Denton squarely in the path of growth. Today, Denton is well within the orbit of its surrounding DFW communities. The DFW Metroplex is one of the fastest-growing metropolitan regions in the country.As DFW grows,so will Denton. It is not only more connected to Dallas and Fort Worth but also the global markets and supply chains that are represented by a diverse array of industries across the region.All evidence points toward an upward trajectory for Denton. But Denton is at an inflection point—one not about attracting growth, but instead about how to respond to and embrace it. Denton must determine how it will welcome the opportunities associated with growth while also preserving the culture that makes this community so unique.The community must open its arms to new residents without letting existing residents fall behind. This is no easy feat, but Denton has already demonstrated that it has the leadership and assets necessary to successfully navigate through and thrive with change. What Denton needs now is a modern approach to economic development that is appropriate for a community of its size and is capable of leveraging public and private resources to capitalize on the opportunities that lie ahead. During this planning process,the coronavirus disease of 2019 (COVID-19) pandemic not only disrupted the writing of this plan but also upended almost every aspect of life for people around the world.The extent of the health crisis and economic damage cannot be understated.There is still immense uncertainty about the breadth and depth of the recession caused by this pandemic.The road to economic recovery will likely be bumpy,especially for a community like Denton that depends heavily on sales tax revenue to fund City - - operations and services. Denton's immediate focus should be on accelerating economic recovery with a special focus on serving vulnerable populations that have been disproportionately impacted by this crisis. 'H MEL I SSA RATLEY S BANS ANNUAL CRA Still,there are a lot of reasons to be optimistic about Denton's future.All the F SALTY LADY JAY B AND THE ZYD things that make Denton so attractive—its major industries, universities,arts and culture,downtown square,authentic people,and unique charm—will also be STERY LIGHTS S MAPLE 9PM SU T the things that help Denton to recover. 86 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS This plan is meant to help focus economic development efforts to be more strategic and effective in responding to forthcoming changes in Denton.The PHASE 1 DISCOVERY plan's framework, including guiding principles and goals are detailed in the next section. Strategic recommendations and actions are organized around three Conducted roundtable discussions and interviews with Denton goals:accelerate recovery,foster growth,and strengthen community inclusion. stakeholders. Important constituencies were engaged during this process, Finally,the plan addresses the issue of organizational capacity and resources including the following. needed to modernize Denton's economic development approach. The Economic Development Partnership Board ► Denton City Council members GUIECONOMIC STRATEGIC ► Denton Chamber of Commerce I I 1 ' GROWTH PRINCIPLES ► Business and industry representatives 1 � ► City and county staff ► Core Resiliency Accelerate Connectivity Entrepreneurs ► Future Focused Recovery Creativity Higher education leaders ► Inclusive Growth Foster Growth Sustainability Real estate developers ► Entrepreneurial Strengthen Competitiveness Workforce development organizations Spirit Community Young professionals ► Cultural Vitality Inclusion PHASE 2 OPPORTUNITY PROJECT BACKGROUND AND SCOPE Identified major priorities for the strategic plan.A strengths,weaknesses, opportunities,and threats (SWOT)analysis,guiding principles,and In late 2019,TIP Strategies (TIP)was engaged by the City of Denton Economic strategies were developed based on input from discovery. Development Department to develop an economic development strategic plan for the City.A strategic plan helps to focus and maximize economic IMPLEMENTATIONPHASE 3 development and workforce development efforts,especially during times of crisis.The economic development landscape is undergoing significant changes,and the economic fallout from the COVID-19 pandemic will be Developed action items and tactical recommendations. immense. Over the course of nine months,the TIP Strategies consulting team worked closely with the City of Denton (hereafter the City)to identify promising opportunities to capitalize on Denton's growth.The planning process was conducted in three phases:discovery,opportunity,and implementation. The City should not view this strategic plan as a static document, but as one that invites revisions and amendments as conditions change. Now, more than ever, stakeholders should take a dynamic approach to implementation—one that revisits this plan on a regular basis to measure progress and to reprioritize strategies and actions as needed. 61 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 2 With rapid changes reshaping the global economy,the need for strategic focus and organization is greater now.The purpose of this plan is to enable Denton's Economic Development Department to better anticipate, respond,and evolve PLAN with changes affecting the economic success of residents and businesses. The framework,strategies,and actions detailed in this plan are informed by RA extensive data analysis and thorough stakeholder input, including interviews FMEWORK and roundtables with City,community,and business leaders. GUIDING PRINCIPLES Guiding principles reflect the values of a community. In the context of an economic strategy,they are a set of statements expressing how a community defines economic development.These principles were crafted through input from Denton stakeholders throughout the planning process. CORE RESILIENCY AProtect the City's core economic base and major employers n by retaining businesses and providing them with the support necessary to continue doing business in Denton. FUTUREFOCUSED �0� Position Denton for future growth by understanding trends and 66 adopting a proactive approach to economic development. • INCLUSIVE GROWTH II W W Enhance economic opportunity for all residents by utilizing different 0 1 strategies that recognize the diverse needs and assets of different communities,especially those in south and east Denton. ENTREPRENEURIAL SPIRIT Cultivate the City's entrepreneurial ecosystem by investing in quality of place and catalyzing innovation that will continue to attract creative professionals to Denton. CULTURAL VITALITY Strengthen Denton's cultural vitality by continuing to promote arts l and music while also marketing the City as DFW's cultural hub. ss ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS ECONOMIC DEVELOPMENT GOALS This plan is built around three major goals:accelerate recovery,foster growth,and strengthen community inclusion. Developed based on input from f n stakeholder engagement and economic assessments,the set of strategies and actions identified under each goal are meant to provide the City with a roadmap to organize its programs and bolster Denton's vitality over the next several years. 4DACCELERATE RECOVERY Coordinate short-term economic recovery efforts from the COVID-19 pandemic by aggregating information,collaborating with regional partners,and allocating resources to top priorities. 4DFOSTER GROWTH Attract long-term economic growth aligned with community priorities lllp by focusing on four strategic growth areas:connectivity,creativity, sustainability,and competitiveness. STRENGTHEN COMMUNITY INCLUSION Align economic,workforce,and community development efforts to meet critical community needs and to strengthen community inclusion. t 89 ECONOMIC DEVELOPMENT STRATEGIC PLAN CITY OF DENTON,TEXAS '�. f ►� i R P � bra j 14 , s / 9 i t �It, Al �J J go When the City of Denton and TIP Strategies began the planning process for this strategic plan,the original intent was to create a long-term vision for the City's GOAL 1 economic development efforts.The context for the planning process was one of optimism.The US was experiencing one of the longest uninterrupted periods of economic growth in history.Texas had one of the lowest unemployment rates in the country,and the DFW Metroplex was one of the fastest-growing metropolitan ACCEL &RATE regions in the US. Much of that growth and opportunity was headed in Denton's way. But now that context has shifted for everyone,everywhere. Early signs indicate that the current economic crisis might be one of the worst in US history. It is difficult to predict how things will evolve over the new few weeks and months. The lasting health and economic effects of the COVID-19 pandemic are still unfolding. Because strategic plans are meant to be forward looking,this plan RECOVERY would be incomplete, maybe even irrelevant, if it did not address the challenges that Denton will face as a result of this crisis. While the bulk of this strategic plan is still focused on Denton's long-term future, this section provides recommendations for how the City can work to accelerate economic recovery once the health risks subside and sheltering mandates are lifted. Many of these strategies will likely need to be implemented virtually,as social distancing measures might be in place for an extended time.The City's Economic Development Department team has already initiated positive efforts to support Denton's businesses and residents during the early phase of crisis relief. Those efforts should be leveraged and expanded as the community moves into a recovery phase. Recognizing that resources in Denton will be impacted by the crisis,many of the recommendations are centered around the City in a convening and coordinating role with other community and economic development partners. STRATEGIES AND ACTIONS ECONOMIC RECOVERY NERVE CENTER. The City's Economic Development Department should function as Denton's economic recovery nerve center with a primary focus on a cross-functional coordination of resources and responses related to the economic fallout from the COVID-19 pandemic. 1.1.1. Pull together a small group of top-level leadership from the City, Coordinate • economic r- • - the Economic Development Partnership Board (EDPB),and the Denton Chamber of Commerce to form the economic recovery efforts • pandemic by nerve center. aggregating • • collaborating with The purpose of the nerve center is to set the overall tone of regional partners, and allocating resources economic recovery work, aggregate all information and actions across cross-functional teams,and allocate resources to to top priorities. integrate the responses of smaller teams. 91 6 GOAL 1 STRATEGIES 1.1.2. Shift the focus of the existing economic development structure Where possible, indicators should be disaggregated by race from relief and policy enforcement to cross-functional elements and income levels to track how recovery efforts are reaching of economic recovery,such as business retention,workforce vulnerable communities. development,and community services. TAKING THE PULSE OF THE BUSINESS COMMUNITY.As the health BUSINESS RETENTION. Continue to focus on establishing 1'2' issues and economic fallout from COVID-19 evolve,the City should a relationship with leaders in Denton's main businesses, continue to implement strategies and tools to take the pulse of Denton's understanding short-term and long-term needs of those businesses on a regular basis. businesses,and communicating information with a unified voice. 1.2.1. Continue to coordinate with the Denton Chamber of Commerce and Denton Main Street Association to assess short-term needs ► WORKFORCE DEVELOPMENT. Continue to work closely and long-term projections for Denton's businesses. with Workforce Solutions, human resource leaders from businesses,and City departments to support businesses in Ideally,the City and the chamber should distribute a joint protecting their employees while also maintaining business survey to Denton businesses. Consistency in questions is productivity as sheltering mandates begin to ease. integral to tracking data and information overtime. ► COMMUNITY SERVICES. Provide vital wraparound services As an alternative to surveys,the City could implement monthly to Denton residents. Representatives of major nonprofits, virtual office hours or roundtables with businesses to gather foundations,and City departments should work together on information about their needs and challenges. creating a centralized inventory of resources, understanding 1 resident needs,and identifying gaps in available services. .2.2. Stay connected to DFW organizations coordinating economic recovery and community service efforts across the DFW Metroplex. INTEGRATED NERVE CENTER RESPONSE Organizations,such as the Dallas Regional Chamber, have "In an unfamiliar crisis,such as the COVID-19 outbreak,the nerve created small business resources and a displaced workers job center concentrates crucial leadership skills and organizational campaign that can be shared in Denton. capabilities and gives leaders the best chance of getting ahead of events rather than reacting to them" 1 3 VIRTUAL BUSINESS RETENTION.The top economic development priority for the City is to continue supporting and retaining existing —McKinsey&Company,"Responding to Coronavirus:The Minimum businesses through the recovery period. In-person visits might not be Viable Nerve Center." possible even after sheltering mandates are lifted,therefore,the City should create virtual business retention and expansion (BRE) options. 1.3.1. Continue to develop and maintain a database of Denton-based 1.1.3. Develop an internal data dashboard to guide economic recovery businesses. efforts using a limited number of indicators that can be tracked over time and shared with partner organizations. 1.3.2. Shift the City's business visitation efforts to a virtual setting and establish a cadence of meetings with businesses as soon as Potential indicators include rate of full-time vs. part-time appropriate. employment,retail sales,growth in construction permits,missed rent payments,access to broadband,and other qualitative 1.3.3. Expand existing goals for business touchpoints on a monthly, information from business surveys(see Strategy 1.2). quarterly,and annual basis. 92 7 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS GOAL 1 STRATEGIES 1.3.4. Reevaluate and adjust standard questions and protocols utilized The City can bring the perspectives of businesses to DCWSLT in the City's BRE program to be more responsive to the COVID-19 by aggregating and sharing information obtained through crisis and recovery. business retention activities and business engagement with the Denton Chamber of Commerce and the Denton Main 1.3.5. Prioritize business retention efforts based on strategic growth Street Association. areas (see Goal 2),employer size,employer growth (number of employees, revenue growth,etc.),and lease terminations. 1.4.2. Catalog which industries have been severely impacted by COVID-19 and determine if targeted resources can be deployed to ► This data can be obtained through a database of existing support workers in those industries. businesses (see the"Internal Systems"section)as well as information from pulse surveys and other interactions with For example, displaced retail workers might require special businesses. support in accessing training programs in order to switch 1.3.6. Structure BRIE efforts to serve several purposes. occupations and/or sectors. 1.4.3. Use insights and data from business retention efforts and Educate businesses about resources and services offered by surveys of the business community as a baseline for employer the City to aid in recovery. demand. Couple this information with other data about Collect answers to a short list of questions to quantify unemployment rates and the needs ofjobseekers. challenges the company is facing. 1.4.4. Develop an inventory of training resources across providers,such Identify short-term and long-term issues the companies are as North Central Texas College(NCTC),Workforce Solutions for North Central Texas,and United Way. Include capacity levels and grappling with across a variety of topics, including workforce flexibility to streamline, redesign,or create new programs to meet and infrastructure needs. employer needs. 1.3.7. Act as a concierge to priority businesses to help navigate 1.4.5. Engage in demand planning to understand which businesses processes within other municipal departments(e.g., partner expect to hire and when. with a project facilitator from the City's Development Services Department). If specific occupations will be in demand,develop projections WORKFORCE COLLABORATIVE. Focus on the workforce development as well as competency requirements from employers. 1 .4 function listed in Action 1.1.2 to develop broader strategies supporting Communicate this information to training providers. Denton's talent pipeline through recovery. Create a skills inventory using existing sources of data,such 1.4.1. Prioritize engagement with the Denton County Workforce as Economic Modeling Specialists International (Emsi). Success Leadership Team (DCWSLT)to connect City efforts to 1.4.6. Identify barriers to accessing training and other workforce the broader regional context. resources. Continue to coordinate with partner organizations to ► While DCWSLT might be solely focused on the Asset Limited, help remove these barriers for those seeking jobs. Income Constrained, Employed (ALICE) population,the City 1 5 INCLUSIVE ECONOMIC RECOVERY.The COVID-19 pandemic has had should also focus on developing supports for unemployed ' a disproportionate impact on low-income residents (of all races) and residents, including those who have been displaced from jobs people of color(across socioeconomic status). Compared to other DFW and might require upskilling or retraining in order to access cities, Denton has a larger proportion of its community(primarily in the new employment opportunities. southern and eastern parts of the City)that is more vulnerable to both 93 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 8 GOAL 1 STRATEGIES the health and economic fallout from COVID-19.Therefore,equitable 1 6 REGIONAL COLLABORATION.The economic fallout from COVID-19 and inclusive economic recovery strategies should be central in Denton's ' will impact US metropolitan regions in different ways. Denton's economic efforts to stabilize its economy and recover from the pandemic. recovery is tied, in part,to recovery efforts in Denton County and in the broader DFW Metroplex.While Denton has unique assets and challenges 1.5.1. Extend existing collaboration efforts with the City's Community as a college town, it can benefit from and contribute to regional Development Department to coordinate resources and efforts to resources and recovery efforts. support residents through economic recovery. 1.6.1. Continue the City's existing support for the United Way of 1.5.2. Coordinate with the Denton Black Chamber of Commerce and Denton County Information &Referral services to assist small other multicultural organizations to provide targeted information businesses. for businesses owned by women and people of color. ► If possible,add extra support for entrepreneurs and Research indicates that these small business owners face businesses owned by people of color by soliciting volunteers structural exclusion from traditional sources of capital and with expertise in these areas. aid packages, including the US Small Business Administration (SBA) Paycheck Protection Program. Support DFW organizations,such as Capital Factory and Venture Dallas,to provide targeted support to Denton Partner with community development financial institutions entrepreneurs and startups. in the DFW area to expand resources and programming into Denton to aid in economic recovery efforts. 1.6.2. Strengthen the Denton County chamber and economic development workgroup and continue to build this network 1.5.3. Continue to collaborate with local and regional nonprofits in throughout the economic stabilization and recovery periods. gathering information about what challenges residents are facing due to the economic impact of the COVID-19 pandemic. In addition to information sharing,create task forces within the network to focus on critical issues and challenges that Use this information to work closely with other City partner organizations are facing. departments, business leaders,and philanthropic entities to develop solutions that directly address resident needs. 1.6.3. Leverage the Denton Innovation Group to develop targeted supports and resources to assist entrepreneurs through Having more accurate information about challenges and economic recovery. needs can be helpful in attracting funding from public and philanthropic sources. It can also help the City take actions or Continue to partner with organizations such as Stoke, design policies that directly benefit vulnerable communities. the University of North Texas(UNT) Murphy Center for Entrepreneurship and Innovation,the Center for Women 1.5.4. Disaggregate social and economic indicators by race and Entrepreneurs at Texas Woman's University(TWU),TechMill, income levels to show how vulnerable populations are faring in Denton Angel Investment Group,and the Dallas Entrepreneur comparison to other segments of the population. Center. 1.5.5. Highlight businesses owned by women and people of color in 1.6.4. Connect with regional DFW organizations,such as the Dallas marketing materials and through digital marketing channels to Regional Chamber,to expand the information-sharing network increase awareness and promote their success. beyond Denton County. 94 9 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS THE TRADITIONAL APPROACH GOAL 2 Target industries have been a cornerstone of economic development programs. The six sectors in Figure 1 were identified as targeted sectors many years ago and have guided the work of Denton's Economic Development Partnership (EDP). While these targets made sense at the time,they now cover much of FOSTER Denton's existing economy and do not capture the full extent of the City's assets. Traditionally,target industries FIGURE 1. DENTON'S EXISTING TARGETS are defined by quantitative ROWT analysis to identify a SUPPLY CHAIN LOGISTICS Nib concentration of industries that exist in a city or a region. ADVANCED MANUFACTURING Figure 2 illustrates the process by which traditional targets are identified.Analysis of data from RENEWABLE ENERGY the North American Industry Classification System (NAICS) INFORMATION MO R R I S O K'S is used to highlight where a —. community already has a larger- RESEARCH ; DEVELOPMENT CORN-KITS than-average concentration of employers and jobs. For f --i -- example,a community with FIGURE 2.TRADITIONAL TARGET INDUSTRIES clusters of advertising, legal Quantitative services, and tax preparation analysis is used 1 TRADED CLUSTER services might identify to identify a corporate and professional concentration of LOCAL CLUSTER services as a target sector. industries that exist in a city... This approach has several LOCAL CLUSTER limitations. First,targets are identified using existing data TRADED CLUSTER that often fail to capture a community's full assets and advantages. Emerging industries with growing Attract • •-term economic growth momentum might not be Which are then ,^.. aligned with community priorities by 1, captured in the NAICS grouped to form a taxonomy. Second,traditional target sector... focusing on •ur strategic growth areas: targets say nothing about theconnectivity, creativity, sustainability, '}(' • • institutions and organizations that contribute to building a competitiveness. concentration of industries. TARGET SECTOR EL Third,traditional targets 95 10 are a static measure that can quickly become outdated. Or, in the case of Ecosystem building has several advantages. First,ecosystems factor in both Denton,a list of targets can keep growing until it covers most of the economy. quantifiable and intangible assets that a community possesses. Second, Finally,from an organizational standpoint,traditional targets can, by default, ecosystem building is a team sport that requires different contributions from tempt economic development offices to focus their time and measure their different organizations so that economic growth is not the sole responsibility performance in inefficient ways. of one entity. Finally,ecosystems are more dynamic and more adaptable as The challenge that Denton faces today is how to focus efforts and resources in elements change over time. a more Strategic manner. DENTON'S STRATEGIC GROWTH AREAS THE PATH FORWARD The question remains,how will Denton respond to incoming growth?There is a way for Denton to welcome and attract growth that leverages the community's assets As the DFW Metroplex grows,much of that growth will spread into Denton County. and preserves its unique culture.Together the four growth areas below define a Planned developments,most notably Cole and Hunter Ranch,will continue to holistic approach to growth that applies to various aspects of Denton's economy. connect Denton to the broader DFW ecosystem.While the COVID-19 crisis will affect the timing of these developments,there is reason to be optimistic that By adopting growth areas,the City can ensure that Denton grows in a way Denton will continue to experience growth after a period of economic recovery. aligned with both economic priorities and community needs. Furthermore,each of these growth areas can be used to organize economic development efforts. A modernized economic development approach is focused on cultivating The following pages include more details about each growth area, including strategic growth areas that fully leverage the community's major employers, anchor institutions, principal and emerging participants,competitions and institutions,and intangible elements. Quantitative data, like NAICS codes,are events, building blocks, local capital,and public awareness,that will drive growth one of many factors that informs a community's strategic growth areas. in these areas.Appendix D includes more detailed information about trade associations, relevant conferences/events,and trade publications associated Instead of targeting sectors,the main role for economic development with each strategic growth area. organizations is to build ecosystems around their strategic growth areas.An ecosystem is comprised of many elements, including anchor institutions, principal and emerging participants,competitions and events, building blocks, CONNECTIVITY local capital,and public awareness.The ecosystem overview on the next page provides a description of each element. majoremployers, • interstate access,and planned The process of ecosystem building is illustrated in the case studies presented in - ' ' -' i ' s in this section. .. '_ _ arts/culture ' ch and ► Connecting companies to top talent and innovations through the University logistics hub for the DFW contributes to Denton's unique vibe. of Arkansas Center of Excellence in Logistics and Distribution (CELDi) is one Metroplex. example of this concept in practice(page 19). ► An innovative business model mixing philanthropy with revenues earned from consulting services was part of building an entrepreneurial community in the COMPETITIVENESS Fargo, North Dakota, Emerging Prairie initiative(page 27). SUSTAINABILITY Denton'seconomic ► The focus of San Antonio,Texas,efforts to build a sustainable energy hub around plannedThe City's investment in 100 competitiveness will continue ' _ _ its public utility was facilitating access to capital,expertise,and mentors through its nt ' • • 've with housing Energy Partnerships Innovation center(EPlcenter)nonprofit(page 34). positions Denton to be a global developments,downtown leader . • digital ► Chattanooga,Tennessee,efforts to upgrade its electrical grid with fiber optic green technology. - cables laid the groundwork for the growth of a high-tech ecosystem and gave the city's its Gig City moniker(page 41). 11 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS STRATEGIC GROWTH AREAS ECOSYSTEM ANCHOR INSTITUTIONS EMERGING PARTICIPANTS Anchor institutions—universities, Every community has emerging players, hospitals,and schools—are interwoven including scrappy startups and innovative in a community's economic,social,and entrepreneurs,that have the potential to cultural fabric. Partnering with anchors in change the trajectory of the community. economic development efforts can drive The buzz, innovation,and energy that innovation and enrich economic vitality. emerging players bring is vital to renewing and reinventing a community's economy. COMPETITIONS & EVENTS BUILDING BLOCKS Events can drive growth by cultivating No ecosystem can thrive without a sector-based networks,attracting tourists, p o group of ecosystem builders that focus on collaboration across organizations, and building a community's brand. GROWTH o inclusion of diverse voices,and Competitions and events not only raise p sustainability of economic development the profile of a community with outsiders, efforts.These builders can be coworking but also connect a community to a larger network of aligned stakeholders. spaces,catalytic programs,or even visionary individuals. PUBLIC AWARENESS LOCAL CAPITAL Branding and marketing are vital to growth. Access to capital can facilitate new ideas, A community's success stories should deepen partnerships,and result in bigger be shared widely through traditional impact for companies and community- media,social media,and industry- based organizations. Ranging from venture specific channels. Bringing attention capital to philanthropic grants,local capital to the businesses and people that are is central to growth and success. the heartbeat of a community can drive investment and foster growth. 91 ECONOMIC DEVELOPMENT STRATEGIC PLAN CITY OF DENTON,TEXAS 12 THE VALUE In the past, Denton was viewed as a community on the outskirts of the DFW Metroplex, both geographically and economically.That has changed.The • combination of highway improvements and significant growth into areas north of Dallas and Fort Worth has brought Denton into the DFW community in a more t intensive way. Recent growth in Denton's transportation and logistics-oriented \• businesses as well as improvements to the City's infrastructure position Denton as a hub for business connectivity. THE ANCHORS r•" �� Since the 1980s, Peterbilt has been one of Denton's largest employers and a cornerstone of the City's economy. Its success played a vital role in attracting other transportation and logistics companies to the west side of Denton. Both private sector businesses and publicly owned assets,such as Denton Enterprise _ Airport,contribute to Denton's impressive transportation infrastructure.The airport's recent addition of a second runway as well as the US Aviation Academy -� position the airport for increased business activity and usage. THE ECOSYSTEM Denton's location at the intersection of I-35E and 1-35W, as well as its proximity r to three Class-1 railroad lines, makes it an ideal hub for transportation and logistics-focused businesses. Examples include companies that manufacture vehicles and transportation equipment,as well as warehousing and distribution activities.The expansion of e-commerce nationally,which has been accelerated by the COVID-19 pandemic,fuels demand for logistics firms. New entrants,such as United States Cold Storage and WinCo Foods, recognize Denton's strategic advantages.As the industry undergoes major technological change, Denton is poised to be a leader in connectivity. Leveraging existing businesses and higher ' education institutions will make the City a nexus for supply chain innovation, research, and development. 98 ECONOMIC DEVELOPMENT STRATEGIC PLAN CITY OF DENTON,TEXAS CONNECTED DENTON ECOSYSTEM ANCHOR INSTITUTIONS ► Peterbilt EMERGING PARTICIPANTS ► Denton Enterprise Airport United States Cold Storage ► US Aviation Academy Tetra Pak ► LINT Center for Logistics&Supply Chain WinCo Foods Management ► Tyson Foods ► North Central Texas College BUILDING BLOCKS COMPETITIONS & EVENTS DFW Roundtable,Council of Supply ► International Conference on Information, l , DENTON'S o o Chain Management Professionals Logistics and Supply Chain GROWTH0 0 0 ► North Texas Commission, Logistics ► Accelerate!Conference&Expo ECOSYSTEMo Development and Marketing Committee ► Heavy Duty Aftermarket Week Institute for Supply Management Dallas ► Texas Association of Manufacturers PUBLIC AWARENESS LOCAL CAPITAL ► Item Journal of Commerce ► Westpark Industrial Park TIRZ Advanced Manufacturing Insight ► EDP Investment Fund Logistics Management ► International Journal of Shipping and Transport Logistics 99 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 14 CONNECTED DENTON ST RELATED INDUSTRIES AND SECTORS STRATEGIES AND ACTIONS Sectors and industries that keep Denton connected include all aspects of 2A 1 BUSINESS RETENTION AND EXPANSION (BRE).A strong BRE transportation, distribution, logistics,and communication systems,as well as ' program is the foundation of any economic development program. In manufacturing of vehicles and parts related to these systems. Representative addition to developing a virtual business retention program(see Strategy Economic Development Administration (EDA)clusters include the following. 1.3), Denton also needs to enhance its existing BRE program in order to support existing businesses in a more intensive and robust manner. DISTRIBUTION AND E-COMMERCE Number of jobs in the DFW metropolitan area:423,873 EFFECTIVE BRE TRANSPORTATION AND LOGISTICS Businesses already in the community are well-positioned to create jobs and contribute to the tax base.Yet,often their achievements are overshadowed LOCAL LOGISTICS SERVICES CONNECTIVITY by the headlines of a new business moving to town. However,the effort and expense it can take to recruit a new business to town AUTOMOTIVE(INCL.TRUCK MANUFACTURING) Percent of jobs in the DFW can be multiples of what it takes to support existing businesses,while the metropolitan area:10.7% outcomes and impact of the two can be similar. COMMUNICATIONS E UIPMENT AND SERVICES An effective BRE program focuses on building relationships with existing 1P businesses,establishing lines of communications such that any needs or Sources:US Bureau of Labor Statistics;Emsi 2020.1—QCEW Employees,Non-Quarterly Census of Employment challenges are voiced,and responding to those needs or challenges. and Wages(QCEW)Employees,and Self-Employed;US Economic Development Administration;Institute for Strategy and Competitiveness at Harvard Business School(HBS);TIP Strategies. One of the best means for doing this is to provide concierge services. Note:The cluster methodology developed at HBS has been adjusted by TIP Strategies to align with the Business concierges are often staff within an economic development six-digit NAILS classifications used by Emsi. organization who provide guidance to businesses in navigating planning, zoning,development,permitting,and construction processes.The concierge makes it easier for businesses to access services from different city departments so that any challenges are resolved efficiently. 2A.1.1. Refine and enlarge the City's database of existing employers. The database should be expanded to include companies in the area that serve external markets or are suppliers to existing employers. 2A.1.2. Revise and ramp up the business visitation program to track trends among Denton employers and identify business needs. ► Virtual visits should be made until the COVID-19 health crisis recedes. ► Establish a visitation protocol,a list of information to be collected during each visit, and a goal for the number of businesses visited each year. 100 15 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS CONNECTED DENTON ST I- Organize joint business visits with area workforce issues, build stronger networks,and leverage resources. development partners, including higher education and Attend conferences and trade shows held in the DFW training providers. Metroplex by national industry organizations aligned with 2A.1.3. Communicate success stories that result from BRE visits.These Denton's growth areas. might not translate directly to newjob creation or increased capital investment,but they can still be valuable to businesses. 2A.2.4. Maintain and enhance the site location factors that are essential for connectivity industries:labor availability,highway access, Examples include assistance with permitting,workforce affordable land and facilities,and favorable tax incentives. training,or infrastructure challenges. Denton's triple freeport tax exemption is an example of 2A.1.4. Provide incentives and/or grants to existing companies to a policy that is critical to business recruitment efforts in assist with business expansion and help retain these valuable these sectors. assets in Denton. 2A.3. WESTPARK INDUSTRIAL PARK.The industrial park is vital to ZA 2 ATTRACT NEW INVESTMENT. Recruiting new businesses should Denton's economic growth. Success in attracting new businesses, remain a top priority for the City's Economic Development Department such as WinCo Foods and Tyson Foods, as well as retaining major team.The City has a track record of success with business attraction, employers like Peterbilt, is crucial for the City's economic vitality.To and efforts can be strengthened by focusing on external marketing build on this success, undeveloped land can be better marketed,and and cultivating relationships in critical sectors. improvements can be made to core infrastructure. 2A.2.1. Cultivate relationships with real estate brokers and site selectors. 2A.3.1. Prioritize infrastructure investments, particularly with respect Build a database of national and regional developers, to roads and utilities. brokers,and site consultants to identify targets, raise Dedicate a set percentage of the City's capital awareness of sites, development,and investment improvements budget to projects in the area to ensure opportunities in Denton. that improvements are made in a timely manner. Connect with site consultants in the DFW Metroplex and targeted regions on a regular basis. Expand Jim Christal Road to improve the connection between the industrial park and 1-35. Stakeholders Host events that showcase specific assets,such believe that the existing road cannot accommodate as available sites, buildings,or new projects. Some a growing number of businesses.This will require communities host site tours or reverse pitch events additional investment from the City beyond the Westpark where developers and brokers pitch their vision for a tax increment reinvestment zone(TIRZ). specific site or project. 2A.3.2. Continue to track vacant properties and parcels, partnering 2A.2.2. Create a centralized lead tracking system for Denton (see the with brokers and developers on new developments or "Capacity and Resources"section). redevelopments to increase the usefulness and value of 2A.2.3. Engage with regional economic development organizations, these properties. industry groups,and professional networks in the DFW Metroplex. 2A.3.3. Partner with UNT on relocating the sports recreation fields Join regional industry associations and networks focused located at Precision Drive and Airport Road to an area outside the on Denton's growth areas to remain current on critical industrial park to improve safety and make better use of the land. 101 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 16 CONNECTED DENTON ST 2A.3.4. Provide public infrastructure incentives(such as credits or space,coupled with other assets,should be the basis for reimbursements)for projects aligned to Denton's growth areas. creating a COE. It is essential for the partners interested The City already utilizes most economic development in creating a COE to speak with a unified voice about the tools available to incentivize development. Continue strategic advantages that Denton offers,which can be using the Westpark TIRZ to support the industrial park. leveraged for even greater recognition and innovation. CENTER OF EXCELLENCE. Denton has all the necessary assets to 2A.4.2. Explore the feasibility of a partnership between the 2AA create a center of excellence(COE)focused on logistics and supply businesses located in the Westpark Industrial Park, NCTC, LINT Center for Logistics &Supply Chain Management,and the City. WHAT IS A CENTER OF EXCELLENCE? Form a committee comprised of representatives from Centers of excellence are a collaboration between higher education these organizations and other potential partners to meet regularly to move the concept forward. institutions and businesses,leveraging the unique assets found within a region to support the advancement of research and training within a specific Compile an inventory of local and regional assets industry.They often serve as a magnet for industry expertise and are that would support the COE, including education and dedicated to the success of companies within a region. training programs, relevant university research, industry conferences and events,and companies. Expected outcomes include the following. ► Research other COEs focused on logistics and Generating statewide and national recognition. distribution to understand potential organizational Supporting Denton's economic growth. models,funding strategies, and areas of focus. Leveraging the unique assets of Denton's higher education institutions. ► Host a summit on topics affecting the logistics and distribution industry. chain management.The presence of several logistics-oriented Identify strategies for drawing researchers and faculty companies—Denton Enterprise Airport, NCTC,and UNT Center for to the region,such as creating an endowed chair Logistics&Supply Chain Management—provide Denton with a distinct or designing opportunities for collaboration across advantage in the connectivity space. institutions. 2A.4.1. Leverage over$2.8 billion in planned projects from Texas 2A.4.3. Include workforce partners to create career pathways for Department of Transportation (TxDOT) in Denton to Denton students and residents into in-demand occupations increase connectivity between Denton and surrounding DFW for Denton's transportation and logistics businesses. communities (Figure 3). 2A.4.4. Promote opportunities in the transportation, logistics,and A significant number of planned infrastructure supply chain fields to students in Denton and in economic improvements will continu e to make Denton a development marketing materials. competitive community for logistics and transportation- oriented firms. Denton's continued competitiveness in the connectivity 102 17 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS CONNECTED DENTON ST FIGURE 3. PLANNED TXDOT PROJECTS IN DENTON Construction underway or begins soon — Construction begins within 4 years Construction begins in 5 to 10 years Corridor studies,construction in 10 years+ PHASE PROJECTS EST.COST Construction underway or begins soon 24 $99,035,892 Construction begins within 4 years 8 $421,055,003 W : Construction begins in 5 to 10 years 8 $756,529,022 Corridor Studies,construction in 10+years 5 $1,394,440,290 TOTALS 45 $2,671,060,207 Source:Texas Department of Transportation,Project Tracker. 103 8 ECONOMIC DEVELOPMENT STRATEGIC PLAN CITY OF DENTON,TEXAS 18 CELDi I UNIVERSITY OF ARKANSAS) DEPARTMENT OF INDUSTRIAL ENGINEERING 46r www.celdi.org 'r BACKGROUND Headquartered at the University of Arkansas in Fayetteville, CELDi (Center for " Excellence in Logistics and Distribution) is a multidisciplinary industry and university research center established in 2001.The cooperative is comprised of six university partners from across the nation and 31 companies, ranging from r` global corporations to municipalities like San Pedro, Mexico. For universities,admission to CELDi is predicated on the expertise of each institution,while industry partners provide ongoing financial support for logistics research through tiered membership options. Companies benefit from increased efficiency in their supply chain as a direct result of the innovation created with university partners as well as having direct access to top students. — i=5IRE CELDi hosts biannual joint meetings in which researchers and the Industrial Advisory Board (comprised of representatives from member companies) IM coordinate new projects and offer continuing education courses. CELDi's mission is to produce the next generation of engineers in logistics and distribution centers while advancing the industry through innovations in products and systems.. PROGRAMTAKEAWAYS FOR DENTON received over . • •-• research Establish a COE in Logistics at UNT with industry leaders in the area, like sponsorship. Peterbilt,to facilitate collaboration between the public and private sectors. industry- CELDi - •- •- Walmart Stores, Join CELDi to access an established network of universities, national Supply . •ns,Air Liquide,The Boeing Company, Lockheed companies,and funding. Martin Aircraft&Logistics Center,and Medical Center Hospital in _ssa Creating a COE not only provides benefits to existing companies but also acts as a talent development strategy for Denton and its major employers. 104 19 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS THE VALUE Denton's reputation for arts and culture makes it a standout destination within the DFW Metroplex. Its cultural assets not only foster quality of place but also create an economic advantage. Over the past decade, a budding creative economy has attracted entrepreneurs to Denton, making the City a hub for big ideas and innovation. Denton has a vibe unlike any other community in the region. By continuing to nourish this creative ecosystem,the City can flourish and become a vibrant destination for talent and investment. THE ANCHORS From higher education to coworking spaces, Denton's creative economy is anchored by diverse and thriving institutions.TWU and UNT are catalysts for innovation and drivers of the City's talent pipeline. Stoke is the heartbeat of Denton's startup scene, providing a hub for entrepreneurs near downtown amenities. Embracing and strengthening these anchor institutions will not only attract growth but also ensure that the creative elements at the heart of Denton's culture will continue to thrive. THE ECOSYSTEM In recent years,a strong cluster of education technology companies has emerged in Denton.The presence of two universities along with strong support for entrepreneurs has made Denton an ideal location for edtech startups. Events such as the Denton Black Film Festival have also drawn tourists to Denton and a strengthened community ties. However, Denton's creative economy requires additional support, including stronger connections to the DFW tech scene and venture capital.The City can nurture Creative Denton by cultivating relationships with DFW capital sources and raising public awareness of Denton artists and entrepreneurs. 105 - . . . 20 CREATIVE DENTON ECOSYSTEM ANCHOR INSTITUTIONS EMERGING PARTICIPANTS ► LINT Murphy Center for Ready Rosie Entrepreneurship and Innovation Kubos ► Center for Women Entrepreneurs at TWU Wildcards ► North Central Texas College iTeach ► Denton ISO W COMPETITIONS & EVENTS BUILDING BLOCKS ► FlintConf t , A o p ► Stoke ► TechMill ► Denton Black Film Festival DENTON o 0 0 Capital Factory, Dallas ► Bootstrap Denton ECOSYSTEM ► TIACON ► Open Denton �A ► Dallas Entrepreneur Center LOCAL CAPITAL PUBLIC AWARENESS ► Denton Angels Denton Record-Chronicle ► Tech Wildcatters Discover Denton ► North Texas Angel Network North Texas Daily ► Voice of Denton ► Dallas Innovates 106 21 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS CREATIVE DENTON STRATEG I ES RELATED INDUSTRIES AND SECTORS STRATEGIES AND ACTIONS Sectors and industries that make Denton creative include computer technology, 2B1 . CHAMPION AND CONVENE.The City can strengthen . research, design,and the arts. Representative EDA clusters include the entrepreneurship in Denton by advocating for local startups and following. serving as a connector between entrepreneurs and the talent,capital, and networks they need. COMPUTER SERVICES SOFTWARE PUBLISHERS "There are a lot of pearls in Denton,but they're not on a string yet." —Denton entrepreneur RESEARCH ORGANIZATIONS ARCHITECTURAL SERVICES Number of jobs in the DFW 213.1.1. Support the expansion of networking channels and metropolitan area:179,361 opportunities for relationship building among the region's entrepreneurs,startups,and students. PRINTING SERVICES CREATIVITY ► While the City might not directly oversee these programs, DESIGN SERVICES L it can support the efforts of partner organizations,such as Stoke and universities. Percent of jobs in the DFW ADVERTISING-RELATED SERVICES metropolitan area:4.5% 213.1.2. Establish connections with DFW entrepreneurship organizations such as Dallas 1 Million Cups, 1 Million Cups PUBLISHING Frisco, Dallas Innovates, Capital Factory,and the Dallas Entrepreneur Center. OTHER MARKETING-RELATED SERVICES ► Connecting with regional efforts not only helps make local PERFORMING ARTISTS entrepreneurs aware of available resources but also helps raise awareness in DFW about the Denton's assets and the Sources:US Bureau of Labor Statistics;Emsi 2020.1—QCEW Employees,Non-QCEW Employees,and Self- Clty's commitment to creating an entrepreneurial ecosystem. Employed;US Economic Development Administration;Institute for Strategy and Competitiveness at Harvard Business School(HBS);TIP Strategies. ► Networking with regional organizations and becoming Note:The cluster methodology developed at HBS has been adjusted by TIP Strategies to align with the more visible in these initiatives can also help attract six-digit NAICS classifications used by Emsi. entrepreneurs to Denton. 2113.1.3. Assemble a knowledge resource network to support entrepreneurs and companies with access to financial,legal,policy,and research information needed to grow their businesses. ► Communities take different approaches to creating '"entrepreneur support mechanisms;'a phrase coined by the Ewing Marion Kauffman Foundation,to connect 107 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 22 CREATIVE DENTON STRATEG I ES entrepreneurs with the information they need. For 26 2 ACCESS TO CAPITAL. Increase access to capital for Denton example, KCSourceLink, an intermediary in the Kansas ' entrepreneurs by aggregating information about diverse sources of City region, created a Resource Navigator with over 240 funding and developing relationships with potential funders. businesses that can connect entrepreneurs to different types of knowledge and resources. More examples 2113.2.1. Cultivate relationships with the DFW venture capital (VC) can be found through Kauffman's ESHIP Communities community so that local companies are not forced to relocate initiative. after they grow beyond their initial rounds of capital. ► Fargo's Emerging Prairie initiative provides an ecosystem Gather information about trends in the DFW market,what that brings together entrepreneurs, large corporations, local VCs are investing in,and projections for growth. educational institutions, nonprofits,and students through Connect Denton's high-potential startups to local and networking events,coworking space,skills training,and regional funders. more(see case study on page 27). 213.1.4. Partner with local and regional partners to design reverse-pitch Create a database of capital resources, including local competitions to engage major corporations and organizations banks,angel investors,and high-net-worth individuals,to in the DFW Metroplex with needs for innovation. drive the City's internal work plan (e.g.,guide networking strategies and establish priorities) and share with partner ► In a reverse-pitch competition,established businesses organizations (i.e., Denton Innovation Group). pitch a challenge to entrepreneurs and solicit solutions. 2B,2.2. Partner with the Denton Angels to expand access to capital for Businesses have their challenges addressed while Denton startups. Work with other angel networks in the DFW entrepreneurs benefit from establishing connections and Metroplex,and across Texas,to improve deal flow for Denton increased awareness about their startups. companies and investors. ► Denton can customize a reverse-pitch competition for The role of the City should be focused on facilitating its entrepreneurship community by connecting local connections between investors and startups in Denton entrepreneurs with school districts in the region to tackle and making connections to regional organizations. edtech challenges. ► Helping the City solve issues,such as sustainability, 2113.2.3. Network with regional entrepreneurship programs so that they housing,and other community challenges through social become familiar with Denton and the resources available for entrepreneurship, is another area where this approach businesses looking to grow within the DFW Metroplex. could be beneficial. 2113.2.4. Revise the funding requirements for the EDP Investment Fund 2113.1.5. Ensure that targeted resources are available for businesses to be more inclusive of innovative startups that might not meet owned by women and people of color,who have historically current thresholds for employment and capital investment. faced barriers to accessing traditional economic development Over the long term,creating a separate fund dedicated tools (e.g.,create a dedicated fund to assist historically to entrepreneurship in Denton is preferable, however,a underutilized businesses). short-term solution is to create an exception for startups seeking support from the EDP Investment Fund. 108 23 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS CREATIVE DENTON STRATEG I ES ► A potential model for a startup fund is the McKinney 2B.3.1. Support the Denton Innovation Group to define a vision Innovation Fund (announced in January 2020) provided for entrepreneurship in Denton,establish goals, measure by the McKinney Economic Development Corporation. progress,and connect with DFW organizations. Eligibility and incentives are differentiated for startups at different phases of their life cycles. For example,growth The City's role in this effort is envisioned as a supporting startups have lower thresholds for minimum annual partner rather than a lead. revenue and employees compared to established startups Support could include donating financial resources, such seeking to relocate to McKinney,Texas. as helping to engage a consultant or facilitator to build ► A more rigorous analysis and exploration of the needs of out a detailed work plan,or the commitment of time and startups in Denton is required to develop a new fund that participation in this effort. effectively addresses barriers specific to this community. 2B.3.2. Launch an accelerator to support growth of existing companies. The City can convene a small task force of entrepreneurs and those connected to the DFW entrepreneurial Accelerators are programs that help startups scale-up by ecosystem to provide input that can guide specific offering mentorship,facilitating connections to investors elements of a startup fund. and other businesses,and building capacity for the startup ► Some elements that the City should consider for building a to grow.Typically,accelerators support a small cohort startup fund include differentiated support for startups at of high-potential,early-stage startups that have already different phases of growth,target industries and sectors,hiring experienced some level of success or market validation. of targeted residents(such as women and Black,indigenous, A major challenge in Denton is the lack of resources for and people of color[BIPOC]),number of jobs,and wages. companies that seek to scale up.Startups tend to"outgrow' ECOSYSTEM BUILDERS.Thriving entrepreneurial ecosystems rely Denton and move to more well-resourced communities. 2B.3. on ecosystem builders to coordinate disparate organizations and Examples of successful accelerators include Techstars initiatives. Denton has a handful of strong builders, including Stoke and Y Combinator.The Innovation Depot in Birmingham, and TechMill.Their efforts to foster collaboration should be supported Alabama, is another potential model to follow. through financial resources and capacity building. State and federal resources are available to support accelerators. For example,the US SBA Growth Accelerator WHAT IS ECOSYSTEM BUILDING? Fund provides over$4 million in prizes to accelerators across the country on an annual basis. "Ecosystem building is emerging as a new profession at the intersection of economic and community development. Successful ecosystem builders 26.3.3. Host a Citywide pitch competition to identify and develop must connect traditional, top-down economic development approaches with innovative entrepreneurs in Denton.This not only builds the grassroots,bottom-up,community-driven environments in which most Denton's creative brand but also provides the City with a way entrepreneurs thrive." of identifying top talent in the community. —Ewing Marion Kauffman Foundation,"Entrepreneurial Ecosystem 2B.3.4. Support the development of office space where companies can Building Playbook 3.0" expand.Continuing to prioritize redevelopment in the downtown area and using flexible zoning will facilitate these efforts. 109 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 24 CREATIVE DENTON STRATEG I ES 2BA EDTECH CLUSTER.Strong higher education presence and innovation 2B.5. RECRUIT GROWING STARTUPS.Target and recruit growing early- in Denton independent school district(ISD) make Denton a competitive stage firms in the DFW Metroplex and other target markets in the spot for education technology(edtech) companies.A growing cluster US, including larger urban areas on the coasts. Companies growing of edtech companies in Denton is applying advanced technologies in out of the startup phase might be looking for ways to expand their K-12, higher education,and adult learning environments. businesses. 2113.4.1. Capitalize on Denton's status as an emerging hub for edtech 2113.5.1. Engage with DFW entrepreneurship organizations,talent companies to drive additional growth and investment in this networks,and industry associations to identify new sector and to attract more creative professionals to Denton. companies. ► Promote Denton's edtech companies and link them with 2113.5.2. Target successful startups in business incubators/accelerators potential business expansion/relocation prospects in that are on the cusp of outgrowing their existing spaces and are other markets. positioned for expansion/relocation to Denton. 2113.4.2. Create an edtech alliance with entrepreneurial companies,Denton Denton can target startups in several ways, including ISD,UNT Murphy Center for Entrepreneurship and Innovation, alignment with the four strategic growth areas of this and the Center for Women Entrepreneurs at TWU to identify plan and size of the startup (i.e., by revenue or number opportunities to strengthen and diversify edtech in Denton. of employees).The City is poised to best support small ► Research other edtech alliances across the US to to medium-sized firms that have outgrown initial rounds understand how they are structured. of funding or support from incubators. Firms that are interested in expansion but not large enough to need ► Hold an introductory meeting to identify the range of extensive office space in Denton are a good fit. The possible partners and to explore common opportunities related industries and sectors listed for each growth area and/or needs the alliance could address. also offer a starting point for identifying aligned startups. ► Consider possible activities the alliance could take on, Many universities in the DFW Metroplex operate such as hosting networking events and conferences, incubators and/or accelerators for businesses started by publishing materials,and advocating for policies students or faculty.The City could target entrepreneurs supportive of edtech. located at these institutions who are ready to expand ► Establish channels for students to engage with edtech beyond the university. For example, Denton could partner with the UNT Murphy Center for Entrepreneurship and companies and leaders through internships and case Innovation to identify the next level of funding and support competitions. that its entrepreneurs need to expand or stay in Denton. 2113.4.3. Support the expansion of Denton ISD's annual Technology in Some chambers of commerce and economic Action Conference(TIACON) about education technology and development organizations in the region maintain lists of curriculum. major incubators and accelerators that the City can use ► Utilize the event to highlight existing edtech businesses to begin outreach and relationship-building efforts. One that have been founded in Denton, including ReadyRosie, example is the incubator list from Say Yes to Dallas. Wildcards,ALL In Learning, From the Future,and Kinful. 110 25 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS CREATIVE DENTON STRATEG I ES 2B.5.3. Track VC firms in DFW,Silicon Valley,Austin,and other markets that have recently funded high-growth,innovative businesses. ► Use this list to follow VC trends and identify high-growth businesses that might be targets for expansion or relocation. This will also help the City build relationships in the VC community and facilitate connections to Denton startups. 2B.5.4. Use resources like the Inc. 5000 (a list of the fastest-growing private firms in the US based on year-over-year revenue growth)to identify firms that would be a good fit for Denton. Additional resources include the following. ► Crunchbase(for identifying recipients of venture funding) ► Fast Company(magazine about the world's most innovative companies) ► MIT Technology Review(magazine about the smartest companies) 2B.6. PROMOTING DENTON'S CREATIVE BRAND.A foundational component of building an entrepreneurial ecosystem is making residents aware of how entrepreneurship can help to drive the economy.The City should collaborate in raising awareness of success stories,both locally and regionally. More information about the need for a revamp of Denton's marketing efforts is in the Capacity and Resources section. 2B.6.1. Revise marketing materials to include specific information about the economic impact of startups to Denton's economy and the incentives/resources provided specifically to startups. 2B.6.2. Aggressively utilize the City's social media channels to publicize successes. 2B.6.3. Pitch stories about successful Denton companies to media outlets, such as the Denton Record-Chronicle,Dallas Morning News,Fort Worth Star-Telegram,Dallas Innovates,and D Magazine. 2B.6.4. Develop a Citywide entrepreneurial recognition program to harness the strengths of local efforts that already exist in Denton. ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 26 1 1 1 EMERGING PRAIRIE FARGO, ND www.emergingprairie.com - - BACKGROUND _ Emerging Prairie opened in 2013 with the mission of growing the entrepreneurial Y 9 community in North Dakota and furthering economic growth for the state. Originally a for-profit organization, EP became a non-profit in 2016 in order to '• remain a financially stable independent organization. - Their revenue model is a mix of philanthropy and earned income,which is INN N — rs. generated through consulting services, membership to the coworking space(the Prairie Den),and paid partnerships. - t - EP has three divisions: 1)the Ecosystem which includes the Prairie Den,events, conferences,and programming,2 the Emerging Digital Academy, a full-time, •!, _ = i 20-week coding school that launched in 2020,and 3)the Grand Farm Initiative, oil oil --- --r - _ which will create an AI-based working farm prototype by the year 2025 while cultivating a support system for the future of farming. Ali■Ki i�■1�9�tN'� '' TAKEAWAYS FOR DENTON -� At a critical point in its history, EP changed its business model in order to diversify its funding sources and become more financially stable. While the coworking space is an important part of EP, its ecosystem consists p s.. s m.- . !, n o ' of broader components aligned to clear economic goals and targets for growth. PROGRAM OUTCOMES (2019) Equity and inclusion are viewed as a business imperative,and intentional - Microsoft invested $1.5 million in the Grand Farm Initiative efforts are made to diversify the entrepreneur pipeline. • 135 events with more111 community rnattendance •- in •ver-vear membershiiD 112 27 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS THE VALUE Cities and regions are starting to embrace the growing importance of r• sustainability to economic vitality. Due to its 100 percent renewable energy goal, Denton is on track to becoming one of the most sustainable communities in the country.A select group of US cities have committed to this ambitious goal, and only a handful have achieved it.Aligning the City's economic development r _ efforts with its sustainability goals can bring environmentally conscious growth to Denton that both enhances the City's environmental ethos and attracts business investment. THE ANCHORS Denton Municipal Electric(DME) is one of Denton's greatest assets not only because of affordable rates but also because of its role in fostering sustainable development and growth. Denton's ability to meet 100 percent of its electric needs from renewable sources and have a local gas plant allows the City to maintain competitive rates,while also reducing its environmental impact. Building a sustainability-focused growth strategy with DME as a centerpiece will provide Denton with a strategic advantage in attracting green businesses and investment. _�_�_�,�i��■�i�=i o THE ECOSYSTEM Now Denton has a significant opportunity to lead the sustainability ecosystem in �_-_►----- North Texas as well as the entire state. Its commitment to renewable energy and �---/--/---sw rr ,---�-----�r= =�� environmentalism is forward looking and progressive.Working closely with DME, �--------- = = the City's Economic Development Department can continue to build resources //-------- A and incentives for greater energy efficiency among Denton's businesses.The �� = =�= City can leverage its reputation for sustainability to attract environmentally 10WOMW -- ======� conscious businesses and be a thought leader in DFW's renewable energy 1VAdWA � = RFA W , sector. Strategies include identifying environmentally conscious businesses, �------ ---- preparing targeted marketing materials, helping developers and companies owl ----- =�_��_� access federal energy incentives,and staying current on relevant trends. 113 28 SUSTAINABLE DENTON ECOSYSTFM EMERGING PARTICIPANTS ANCHOR INSTITUTIONS ► Embassy Suites ► Denton Municipal Electric North Central Texas Council of ► LINT Department of Geography and the Governments Public Works Council Environment — North Texas Green Council ► LINT College of Engineering North Texas Renewable Energy Group Sierra Club Lone Star Chapter COMPETITIONS & EVENTS BUILDING BLOCKS North Texas Association of NTAEP TCEQ Trade Fair Dows ENT--I o Environmental Professionals ► CleanTX GridNEXT Conference 1 0 o CleanTX Society of Texas Environmental ECOSYSTEM A ° Texas Municipal Utilities Association Professionals Annual DFW Meeting Advancing Data Center and IT(Information Technology)Infrastructure Professionals LOCAL CAPITAL ► Energy Efficiency Incentive PUBLIC AWARENESS ► Solar Installation Incentive Green Source DFW ► Engineering Audit Renewable Energy ► Standard Offer Incentive Journal of Renewable and Sustainable Energy ► Green Business Program ► The Solar Reflector 114 29 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS SUSTAINABLE DENTON STRATEGIES RELATED INDUSTRIES AND SECTORS STRATEGIES AND ACTIONS Sectors and industries where Denton can have a sustainable impact include 2C 1 SIMPLY SUSTAINABLE STRATEGIC PLAN. Denton's Simply construction, utilities, and engineering. Representative EDA clusters include the Sustainable strategic plan from 2012 was ahead of its time and offered following. a blueprint for improving the City's sustainability. Integrating economic development efforts with those goals can strengthen Denton's ENGINEERING SERVICES environmentally conscious identity and attract investments aligned with environmental priorities.This plan is not meant to replace other GENERAL CONTRACTORS sustainability efforts from the City but is intended to draw attention to areas where the Economic Development Department can support and SPECIALTY CONTRACTORS build on the City's existing sustainability strategies. DEVELOPERS Number of jobs in the DFW 2C.1.1. Prioritize the energy efficiency and conservation goal from the metropolitan area:265,586 Simply Sustainable plan by focusing on building standards and incentives for greener residential and business development. ALTERNATIVE ELECTRIC POWER SUSTAINABILITY Explore options for putting this priority into practice,such ELECTRIC POWER DISTRIBUTION L as creating a green incentive fund, dedicating part of an existing fund,or establishing a point system for the Percent of jobs in the DFW award of incentives. WATER AND SEWER LINE DISTRIBUTION metropolitan area:6.7% 2C.1.2. Work with DME and the City's Development Services WATER,SEWAGE,AND OTHER SYSTEMS Department to better understand green building standards, including what is currently required of developers. WATER PROCESSING ► Continue to incorporate leadership in energy and SANITARY SERVICES environmental design (LEED) certification and environmentally beneficial activities into incentive Sources:US Bureau of Labor Statistics;Emsi 2020.1—QCEW Employees,Non-QCEW Employees,and Self- policies and development standards. Employed;US Economic Development Administration;Institute for Strategy and Competitiveness at Harvard Develop tiers of building standards that will promote Business School(HBS);TIP Strategies. sustainability and can be opted into by developers who Note:The cluster methodology developed at HBS has been adjusted by TIP Strategies to align with the six-digit want to build more environmentally friendly buildings. NAICS classifications used by Emsi. 2C.1.3. Build a more robust set of incentives to encourage developers to adopt green building standards. More incentives should be offered for developments that meet higher tiers of standards. Strengthen the commercial incentives currently offered by DIME by offering stronger incentives differentiated by different levels of energy efficiency. ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 30 SUSTAINABLE DENTON STRATEG I ES I- Collaborate with the City's Development Services Department According to a CBRE US Data Center Trends report, in adding structural incentives for green buildings,such as the DFW Metroplex was the second fastest-growing expedited review/permitting processes and density bonuses. market for data centers in 2019. Low utility costs, ease of transportation access, incentives, and safe climate Reduce or reimburse fees for developments that follow conditions make DFW an ideal location for data green building standards. Examples of fees include centers. review/permitting fees and impact fees.This might require setting aside funds for fee reduction/reimbursement. 2C.2.2. Provide technical assistance to developers and businesses that want to leverage federal incentives, such as the Business ZC.Z. TARGET ENVIRONMENTALLY CONSCIOUS BUSINESSES. Denton Energy Investment Tax Credit,or obtain LEED certification. has an opportunity to target environmentally conscious businesses that are attracted to the community's sustainability and conservation 2C.2.3. Network with regional and statewide organizations focused on efforts.The community's commitment to and actions toward clean energy,municipal utilities,and data centers to understand sustainability will make Denton a national,and even global, leader in trends and develop relationships with industry leaders. sustainable growth and green development. 2C.2.4. Connect with real estate developers and site selectors who have experience supporting environmentally conscious firms ENERGY EFFICIENT DATA CENTERS or industries that would benefit from renewable energy. "More and more IT companies are boasting of their commitment to For example,there are data center operators and achieving 100 percent reliance on renewable energy.To fulfil such pledges, developers who specialize in data center development. some of the biggest are building their own energy campuses... More often, Example firms include Edgecore Networks,Aligned the data titans sign contracts to receive dedicated supply from existing wind Energy,and CBRE's Data Center Solutions group.The City and solar farms. In the U.S.,those can still be hard to come by." should develop relationships with these firms and pitch —Fred Pearce,"Energy Hogs:Can World's Huge Data Centers Be Made Denton's value proposition for data centers, including MoreEfficient?"Yale Environment 360. low utility rates, 100 percent renewable energy,and other incentives offered to businesses seeking to expand or relocate to Denton. 2C.2.1. Identify businesses that are high electricity users,such as Denton should also build stronger relationships with data centers. DME's competitive rates and the ability to site selectors, both general and those specializing in power businesses using 100 percent renewables is a good specific industries. The list of related industries and marketing opportunity for both the company and for Denton. sectors provided earlier in this section provides a While data centers do not bring many jobs to a starting point. It is worth noting that priority relocation community,they consume vast amounts of electricity, and attraction factors still include land availability, low which will provide Denton with additional revenue. Global utility rates, access to skilled labor, and easy logistics. innovation is focused on making data centers more Denton's renewable energy is a value-add but should energy efficient,and Denton can be on the cutting edge not be relied on alone to drive site selection and of this movement because of its renewable resources. relocation decisions. 116 31 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS SUSTAINABLE DENTON STRATEG I ES 2C 3 THINK GLOBAL,ACT LOCAL. In 2015,the United Nations Member ZC 4 GREEN MARKETING. Denton should be commended for the States adopted 17 Sustainable Development Goals (SDGs).The ' ambitious sustainability goals and significant progress toward those SDGs create a vision for economic prosperity, sustainability,and goals.These sustainability efforts should not be distinct from the City's equity that is shared by many cities around the world, including economic development activities.With better marketing of Denton's Denton. The City's leaders have an opportunity to think global and sustainability as a business advantage,the City can achieve both its act local by adopting several SDGs focused on sustainability and environmental and economic ambitions. See the"Marketing"section economic growth. for more details. 2C.3.1. Adopt the SDGs as part of the City's work plan and formally 2C.4.1. Incorporate Denton's Green Business Program in economic make them a priority for the City of Denton through development digital marketing.The program can benefit from Council approval.The four SDGs most related to Denton's more targeted promotion to the business community. sustainability and economic development efforts are highlighted here. Add an annual award or appreciation period for Denton's most sustainable and energy efficient businesses. SDG 7:AFFORDABLE AND CLEAN ENERGY. Ensure access to affordable, reliable,sustainable,and modern Promote the Green Business Program during BRE visits energy for all. and include information on participation in the City's database of existing businesses. SDG 8: DECENT WORK AND ECONOMIC GROWTH. Promote sustained, inclusive,and sustainable economic 2C.4.2. Revise digital marketing materials to include a greater focus growth,full and productive employment,and decent work on Denton's sustainability goals and 100 percent renewable for all. energy resources. ► SDG 9: INDUSTRY, INNOVATION,AND According to the Sierra Club,over 150 US cities have INFRASTRUCTURE. Build resilient infrastructure, committed to 100 percent renewable electricity for their promote inclusive and sustainable industrialization,and entire communities. Fewer than 10 cities have already foster innovation. achieved this milestone,and soon Denton will be in that elite group.This should be promoted widely and used as SDG 11: SUSTAINABLE CITIES AND COMMUNITIES. a focal point in economic development materials. Make cities and human settlements inclusive,safe, resilient,and sustainable. Create more specific resources to target companies in the clean energy sector and include information on 2C.3.2. Align performance metrics with the targets and indicators incentives for those companies to relocate or expand to associated with each SDG. Not all targets will be directly Denton. applicable,so Denton can also set its own targets aligned to the SDGs. See the"Strategic Performance Metrics"section 2C.4.3. Cultivate relationships with regional and statewide clean energy for more details. networks.Treat these networks as a channel for promoting Sustainable Denton as well as furthering business attraction efforts. ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 32 SUSTAINABLE DENTON STRATEG I ES FIGURE 4. UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS 01 S U STA I N A B L E •��. ��. DEVELOPMENT G , LS AFFORDABLE AND DECENT WORK AND , � �, CLEAN ENERGY 8 ECONOMIC GROWTH AND INFRASTRUCTURE ANDCOMMUNMES .. 3 CLIMATE PEACE,JUSTICE PARTNERSHIPS" ACTION 16 ANDSTRONG 17 FORTHEGOAL& INSTITUTIONS SUSTAINABLE DEVELOPMENT jON G-elfO.".1141ALS Source:United Nations,Sustainable Development Goals Knowledge Platform. 118 33 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS EPICENTER SAN ANTON 0, TX www.epicenterus.org BACKGROUND OCofounded in 2015 by CPS Energy(San Antonio's municipal electric utility company)and three energy technology companies (OCI Solar Power, Itron and Landis+Gyr), EPI (EPlcenter) is a nonprofit innovation hub focused on sustainable energy research with a local, national,and global perspective. '[""'"" - EPI advances the industry through the EEIA(EPI Energy Incubator and Accelerator) program,advisory services,and networking events and e conferences. EEIA's mission is to support early-stage startups with commercially viable technologies and services related to sustainable energy innovation. °^ EEIA matches startups with mentors and subject matter experts to help create LE w� and refine business plans as well as connect to the funding, legal,and capital LE It" sources needed to achieve commercialization and financial sustainability. EEIA -j_•�'* = - also offers tiered membership for businesses and entrepreneurs who are looking for select services or virtual support. TAKEAWAYS FOR DENTON PROGRAM OUTCOMES 1 Municipal utilities can support economic development efforts in a variety of - Since its inception in 2017, supported six to seven ways beyond providing utilities. startups per cohort. DME can play a central role in facilitating green energy innovation in Denton, - EPI has hosted three internationalandconferences especially as the City reaches its 100 percent renewable resource goal. focused on sustainable energy. Antonio-based EEIA member,Terra Solar,won $50,000 in the The combination of Denton's entrepreneurial scene and broader sustainability Department Energy's2020 American-Made _ goals makes Denton a prime location for clean tech and green energy - University of Texas at San Antonio Leaptran won a Smart 50 Award startups. for - •y monitoring . • control system forbuildings in 21 • 119 34 r THE VALUE i Ill Planned developments and improved infrastructure will continue to elevate e Denton as a vibrant economic node in the DFW Metroplex. Denton already has unique assets in its universities, hospital systems,and authentic town square that make it stand apart from other DFW communities.As new housing developments and transportation improvements are made over the next 10 years, Denton will be in a more competitive position for business development and talent attraction. THE ANCHORS Denton's strong hospital systems draw visitors to the City to receive vital medical services.These hospitals provide a fundamental service for the entire county and contribute significant tax revenue for the City of Denton both directly and indirectly. Furthermore,the A-train rail service and bus system operated by the Denton County Transportation Authority(DCTA) provide critical transit r'. infrastructure that many other DFW communities lack. Leveraging these anchors for future development is crucial for Denton's long-term growth. THE ECOSYSTEM Numerous recent and planned developments are raising Denton's profile and will position the community for more business investment and new residents. Most notably,the Cole and Hunter Ranch development off 1-35W will alter Denton's profile for the better and make the City a formidable competitor for DFW businesses and talent. Facilitating the success of these developments, continuing to incentivize downtown growth,and improving vital infrastructure will lay the groundwork for Denton's long-term vitality. .Y: h A 1 �4 Y 120 Photob AnieSprattT4a7vreTAMh- ECONOMIC DEVELOPMENT STRATEGIC PLAN CITY OF DENTON,TEXAS , �'' COMPETITIVE DENTON ECOSYSTEM ANCHOR INSTITUTIONS ► Medical City Denton EMERGING PARTICIPANTS ► Texas Health Presbyterian Hospital Dallas Hillwood Communities ► Denton County Transportation Authority Stratford Land ► University of North Texas Allegiance Hillview ► Texas Woman's University Denton Main Street Association ► North Central Texas College COMPETITIONS & EVENTS BUILDING BLOCKS ► NTCAR Commercial Real Estate Expo D o o ° o Denton Chamber of Commerce ► Dallas Regional Chamber Annual Meeting o O Denton Black Chamber of Commerce ► Fort Worth Chamber of Commerce — Commercial Real Estate Development Annual Meeting L� �� Association LOCAL CAPITAL PUBLIC AWARENESS ► Downtown Denton TIRZ Development Magazine ► EDP Investment Fund Texas Hospitals ► BOMA Magazine 121 ECONOMIC DEVELOPMENT STRATEGIC PLAN CITY OF DENTON,TEXAS 36 COMPETITIVE DENTON STRA RELATED INDUSTRIES AND SECTORS STRATEGIES AND ACTIONS With the Hunter Ranch and Cole Ranch developments, Denton is poised for a 2D 1 COLE AND HUNTER RANCH. Denton City Council's approval of the Cole major expansion of both residents and jobs.To be competitive, Denton must and Hunter Ranch development will bring significant change to Denton. capture an adequate share of DFW's growth in areas such as higher education, The addition of new homes,an employment center,retail amenities,and healthcare,and office campuses. Representative EDA clusters include the greenways stretched across 6,400 acres will transform Denton into a following. major economic hub.The development also opens the potential for more industrial and commercial development,especially south of the airport. CORPORATE HEADQUARTERS 2D.1.1. Dedicate staff resources to supporting Hillwood and Stratford Number of jobs in the DFW FINANCIAL/CREDIT INTERMEDIATION SERVICES metropolitan area:504,819 in making the Cole and Hunter Ranch vision come to fruition. 2D.1.2. Provide concierge services to help the developers navigate INSURANCE CARRIERS processes across City departments and solve challenges that COMPETITIVENESS arise. COLLEGES,UNIVERSITIES,PROFESSIONAL SCHOOLS L 2D.1.3. Continue to work with Hillwood and Stratford to ensure that a Percent of jobs in the DFW mix of housing options,from high-density to low-density,are HOSPITALS metropolitan area:12.8% built to increase the diversity in Denton's housing stock. ► The development will bring higher-end housing options HEALTHCARE PROVIDERS that are necessary to attracting and retaining many high- Sources:US Bureau of Labor Statistics;Ems!2020.1—QCEW Employees,Non-QCEW Employees,and paying jobs and professional talent. Self-Employed;US Economic Development Administration;Institute for Strategy and Competitiveness at ► The City can work with Hillwood and Stratford to ensure that Harvard Business School(HBS);TIP Strategies. a mix of commercial, industrial, and retail opportunities Note:The cluster methodology developed at HBS has been adjusted by TIP Strategies to align with the six-digit NAILS classifications used by Emsi. unfold as planned.The developers already have a master plan for the development;therefore,the City should continue to work with them, maintain flexibility as issues arise,and help resolve challenges in a timely manner to not delay development. DOWNTOWN DEVELOPMENT.Successful downtown development 2D.2. and an authentic town square are among Denton's top economic development achievements.The City should continue to prioritize the downtown area by incentivizing residential and commercial development beyond the square. 2D.2.1. Sustain implementation of the City's Downtown Implementation Plan adopted in 2010. 122 37 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS COMPETITIVE DENTON STRA ► The plan's recommendations to create more mixed The City could utilize a Chapter 380 agreement to incentive use, pedestrian-friendly development extending off the the development of new or refurbished office space in the downtown square are still essential to Denton's success. downtown for small businesses and entrepreneurs. 2D.2.2. Continue utilizing various tools(development incentives,Chapter Alternatively,the City might apply for a grant from the 380 agreements,TIRZ financing,and historic tax exemptions)to US EDA to support the public infrastructure needed for a stimulate new private investment in the downtown. development project. ► Some communities offer incentives to developers in order Ensure that new Class A building office space is developed to build developments aligned with the goals of the cities. as planned in the Cole and Hunter Ranch developments to Incentives for developers often come in the form of fee create a new employment center for Denton. reimbursements,density bonuses,expedited processing, and other rebates. Developer incentives are commonly 2D.3.2. Utilize financial incentives to support the development of new used to stimulate development of affordable housing (or or refurbished office space. mixed-income housing in dense areas)as well as energy- For example,Sugar Land,Texas,created an incentive efficient buildings. focused on Class A building development.The existing 2D.2.3. Prioritize development of additional residential and incentives (e.g.,grants, loans,tax abatements)to real commercial office space in downtown Denton,especially the estate developers who create new Class A building office corridors extending off the square. space according to a range of guidelines. ► It is important to incentivize the location of new 2D.3.3. Strengthen relationships with the regional real estate industrial businesses and the relocation of existing development and brokerage community by hosting quarterly industrial businesses to Westpark Industrial Park so that or annual meetings with DFW real estate professional and downtown Denton can be more pedestrian friendly and trade associations. accommodate nonindustrial companies. 201 .4. INFRASTRUCTURE.As Denton continues to grow,the need for ► Though the downtown square is thriving, more focus its infrastructure to keep up is paramount.The City's Economic on the corridors extending off the square will help Development Department team should work with the City's transform downtown Denton into a thriving residential and Development Services Department in prioritizing improvements commercial district. that will provide the most return on investment and catalyze other transformational projects. 201.3. PROFESSIONAL OFFICE SPACE. Denton's lack of professional office spaces poses a barrier to the growth of existing companies as well as 2D.4.1. Extend basic infrastructure to north Denton around Loop 288 the attraction of larger professional services firm.To boost Denton's to lay the groundwork for future residential and commercial competitiveness for business investment,the City must incentivize the development afterTxDOT completes reconstruction of the loop. development of office spaces. 2D.4.2. Improve the aesthetics and accessibility of main corridors 2D.3.1. Promote the development of Class A buildings for office leading into the downtown square. Dallas Drive and Fort Worth space and creative redevelopment of existing structures to Drive are the main entrances from 1-35 into the City core. attract professional services and tech-oriented companies. 123 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 38 COMPETITIVE DENTON STRA 2D.4.3. Launch a Denton Fiber initiative to expand broadband FIGURE 5. BROADBAND CONNECTIVITY IN DENTON connectivity and access to all businesses and residents. SHARE OF HOUSEHOLDS WITH ACCESS TO BROADBAND INTERNET AT HOME ► Work with all broadband internet providers in Denton to create an initiative under one brand as a tool to attract No home internet access Home internet access technology companies, investors, and talent. 100% 0 ► Develop procedures and requirements for the installation & o of 5G infrastructure in new developments to prepare o o '� Denton for future technology. 90% ► Close the digital divide by targeting resources to expand 80% internet access for Denton residents.As seen in Figure 5,a larger share of Denton's residents lacks broadband internet at home compared to surrounding communities. 70% 0 ► Explore building a municipally owned broadband network N 60°i° and leasing it to internet service providers to incentivize o last-mile services to residents in low-and moderate- w de income neighborhoods. aj 50% ► The City can also apply for an EDA grant to help cover 14 ON CD infrastructure costs associated with an initiative to expand 2 40% co broadband connectivity in Denton. a 4 N DIGITAL MARKETING. One of the most common challenges 30°i° 2D'5' cited by stakeholders is the ability to tell the"Denton story' in a way 0 that fully captures the City's advantages and leverages modern 20% communications platforms. Digital marketing resources are necessary for a modernized economic development program. 10% � 2D.5.1. Refresh the Denton EDP website so that it serves as the City's 0% I primary online portal for economic development prospects, site location consultants,commercial real estate brokers, and other business decision-makers.The new sites should Y r include features and information such as the following. C > L O O N ► The City's specific functions related to economic v o a a development(e.g., incentive programs,economic development initiatives,staff directory). Sources:American Community Survey,2018 5-year sample;TIP Strategies. 124 39 ECONOMIC DEVELOPMENT STRATEGIC PLAN CITY OF DENTON,TEXAS COMPETITIVE DENTON STRA ► Focus on providing relevant details highlighting what makes Denton competitive for investment and talent in its strategic growth areas. ► Present in-depth profiles and descriptions of local and regional workforce strengths. ► Include testimonials from business leaders about why Denton is a great place to do business.This information can be captured during BRIE visits. 2D.5.2. Establish a digital marketing campaign to highlight Denton's economic development advantages and success stories. Develop baseline digital marketing tools and engage in regular digital marketing activities, including the following. ► Infographics created to visually highlight Denton's core assets and advantages. ► Periodic Linkedln Pulse articles that describe Denton's competitive business advantages, using interviews with existing businesses to tell their story. ► Weekly Facebook, Linkedln,and Twitter posts linking to the Pulse article. ► Short YouTube videos created to highlight what makes Denton a great community for businesses and residents. These videos can also be aired on Denton Television. 2D.5.3. Collaborate with the Denton Chamber of Commerce to create digital materials aimed at commercial real estate brokers, describing the attractive environment for business relocation. Use the material to teach local brokers about the top selling points of Denton and why it stands out compared with the rest of the DFW Metroplex. 125 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 40 GIG CITY = . CHATTANOOGA) TN www.chattanoogagig.com ° =`9 BACKGROUND In the last half of the twentieth century, Chattanooga was a city in decline. Many residents did not have access to broadband services,and talent was fleeing in search of better opportunities.TEC (The Enterprise Center),a nonprofit public- _ r '!t; private partnership,was created and tasked with growing ahigh-tech ecosystem in Chattanooga and improving its citizens' lives through technology. To minimize power outages and create a smart grid for the city, EPB pr (Chattanooga's municipal electric utility company) began to update its electrical grid with fiber optic cables. EPB and city officials realized that universal access to qr fiber could also slow the outflow of talent and attract businesses. M- Since then,TEC has prioritized research and development of the smart grid by connecting EPB and the University of Tennessee at Chattanooga with organizations across the nation. In 2019, EPB remains the only provider in the nation to offer residential 10-gigabit internet service. EPB's territory extends over PROGRAM OUTCOMES ' 19) 600 miles and includes more than 100,000 customers for its telecom services. 2009,In received the US Department of TAKEAWAYS FOR DENTON fiberEnergy to build its network. Leverage DME's workforce and capabilities to lay the foundation for advanced Between 2011 and 2016, . 4,000 .. , -, . technology benefitting both residents and businesses. maintained in Hamilton_ _ _ nearly direct Chattanooga_ Create an inclusive and affordable broadband network for residents and r op businesses to enable growth and prosperity. • aving the fastest internet connection in the nation has ► Market Denton as a technologically advanced and inclusive community to ttracted major businesses (e.g.,Volkswagen and Amazon), attract new residents and drive business investment in the city. startups and investors,and led to the creation of an lnnovat�ion 126 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS Many in the economic development field are beginning to recognize the importance of inclusive economic growth to provide opportunity for all GOAL 3 residents, particularly those with lower incomes or levels of educational attainment.An economic development strategic plan that does not address how to deliver broader prosperity to all constituents would be shortsighted. This is especially imperative for Denton,which has a larger share of low- income residents than its peers.The median household income in Denton is $56,500,falling below the overall median household income in Denton STRENGTHEN County of$83,400 (American Community Survey,2018 5-year sample). Efforts to grow Denton's existing industries and attract new business investment will not guarantee that Denton's vulnerable communities will COMMUNIT be able to share in this prosperity. Denton cannot afford to leave existing residents behind. Addressing the challenges and barriers that low-and moderate-income residents face will be crucial to creating a more economically vibrant and resilient community. INC N The City's Economic Development Department and Community Development Department teams already recognize this reality and are collaborating on efforts to expand affordable housing in Denton.This collaboration should be expanded on and integrated with workforce development priorities. Expanding affordable housing options and building career pathways in high-demand industries are two central ways that the Pr City can align its economic,workforce,and community development efforts to benefit Denton's most vulnerable residents. STRATEGIES AND ACTIONS WORKFORCE COLLABORATIVE.Successful communities _ 3.1 . across the US are focused on aligning the needs of businesses and ��!!I creating workforce pathways for residents. Denton should convene businesses,training providers,and nonprofits to work together in creating meaningful career pathways in critical sectors. 3.1.1. Build off the workforce collaborative,detailed in Strategy 1.4,to focus on workforce needs during the period of economic recovery. ► Convening a workforce collaborative should bean ongoing task of the City's Economic Development Department team. ► Connect any efforts of a Denton-specific workforce Aligneconomic, • • and community collaborative to the work of the DCWSLT focused on the development • to meet critical ALICE population. community _ _ • and to strengthen 3.1.2. Continue to convene regular meetings with major employers, Workforce Solutions, NCTC,and other providers to identify community • business needs and connect unemployed residents to jobs. bw )*J 17 - 42 •s" GOAL 3 STRATEG I ES Considering COVID-19,the immediate focus should be on 3.2.1. Continue to collaborate with the City's Community Development supporting unemployed residents in connecting to jobs or Department in supporting the development or redevelopment of reskilling them for new opportunities. affordable housing in south and east Denton. 3.1.3. Over the long term, identify two to three occupations and/or skills 3.2.2. Preserve existing housing by offering financial assistance for repairs that are critical to Denton employers and develop pathways to or retrofitting to maintain naturally occurring affordable housing. support residents in moving into those roles. ► Work with community development organizations to leverage 3.1.4. Organize the collaborative around sharing data,coordinating and scale up existing programs (versus creating new ones). demand and supply,aligning efforts to build talent pipeline,and streamlining BRIE efforts. Coordinate with the organizations and individuals preparing the City's affordable housing strategic plan to identify the best approach. TALENT-DRIVEN ECONOMIC DEVELOPMENT PRIORITIES 3.2.3. Leverage the federal Opportunity Zones incentive and New 1. "Realign state economic development spend to invest in proven training Markets Tax Credit to support the development of valuable solutions,such as customized job training grants and community college projects that will support the needs of existing residents. partnerships. Work with the Community Development Department and 2. Target economic development incentives towards opportunity-rich community organizations to identify projects that need access business practices that help build local talent pipelines. to capital and can add value to under-resourced neighborhoods. 3. Develop and disseminate new skills-based hiring tools that facilitate Identify specific projects that would benefit the community more efficient and equitable hiring practices. and pitch the projects to investors in the DFW area with 4. Test new local talent financing solutions,such as revolving loan funds, Opportunity Funds. that target training toward high-demand jobs. Offer financial and other incentives to facilitate the 5. Experiment with new regional Talent Exchange intermediaries that development of these projects. Utilize community connect middle schools,high schools,community colleges,higher development block grants and other economic development education institutions,and in-demand skills providers with businesses in grants as well as support through City processes. key growth sectors" Seek philanthropic funding to support project finances in order to reduce risk for developers and make affordable housing —Joseph Parilla and Sifan Liu,Talent-Driven Economic Development:A New projects more financially feasible. Vision and Agenda for Regional and State Economies,Brookings Institution,2019. 3.2.4. Identify opportunities for adaptive reuse of existing buildings that can be converted into multiunit housing and preserve existing HOUSING AFFORDABILITY. In addition to needing higher-end housing structures and utility connections. 3.2. options (see Appendix A for more details), Denton also has a housing affordability issue. Compared to surrounding cities, Denton has a larger 3.2.5. Improve the development review process to decrease costs for share of high-need populations. City leaders must address the needs of those committed to building workforce and affordable housing. low-and moderate-income residents to ensure that Denton's growth is Expedited reviews,fee reimbursements,and preapproved plans equitable and inclusive. at low or no cost are best practices used by other communities. 128 43 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS GOAL 3 STRATEG I ES GROW YOUR OWN TALENT INITIATIVE. One of Denton's top assets 3.3. is the young talent and energy that the City possesses,due in part to the presence of multiple universities. Over 58 percent of Denton's population is below the age of 35. By strengthening youth programs and retaining more graduates, Denton can significantly strengthen its talent pipeline and competitiveness for business investment. 3.3.1. Support youth entrepreneurship programs at the local level to foster a culture of innovation and cultivate an entrepreneurial spirit. Support could include promotion of activities, programs,and events;financial sponsorships;or participation in the event and/or planning. Entrepreneurship education is significant for helping low- income youth to develop skills and knowledge that will support their future success and benefit their communities. ► The National Consortium for Entrepreneurship Education provides resources and technical assistance for entrepreneurial education (http://www.entre-ed.org). 3.3.2. Encourage Denton ISD to incorporate entrepreneurship into academic curricula and increase exposure and access to Denton's startups. 3.3.3. Gather data from LINT,TWU,and NCTC about graduates, including how many students stay in Denton and the DFW Metroplex versus relocating to other parts of the state or country. Identify programs or departments that produce graduates in industries and sectors related to Denton's strategic growth areas. Enhance student connections to the Denton community and businesses by creating internship opportunities,showcasing Denton businesses on campus,and targeting digital marketing for some events and programs to students. 129 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 44 1 4y n yr• ��J 1% y ,�,� �.♦ -'mob J —' Denton's ability to successfully modernize its economic development programs FIGURE 6. ECONOMIC DEVELOPMENT PARTNERSHIP STRUCTURE and implement this plan will depend on a revised approach to its governance and funding mechanisms for economic development.Additionally,the City will require more robust customer relationship management(CRM) systems to + track leads and manage information about Denton's businesses. + + 0 0-01 I�D_e This section describes considerations for Denton's capacity and resources to carry out a modernized economic development approach. Recommendations and PARTNERS WORKING GROUP EDP BOARD considerations are provided related to Denton's EDP,funding resources for short- term economic recovery and long-term success,and internal systems for the City. Membership City,Chamber,DME staff, Broad group of 1'; Chair or • •- ECONOMIC DEVELOPMENT PARTNERSHIP Meeting Frequency Monthly Quarterly Purpose •• • economic Make strat-• decisions The Denton EDP was created in 1987 to formalize shared economic development andrelated to Denton's economic development responsibilities and functions between the City and the Denton activities • • development ••" • the p p Y • • •- generation, • resources Chamber of Commerce. One of TIP's primary recommendations in the 2003 attraction, BRE,and marketing. to meeting those g,, economic development strategic plan was to create the EDPB to oversee activities of both the City and the chamber. Since then,the EDPB has grown to To facilitate closer coordination,the EDP needs a smaller working group,including include representatives from the public and private sectors,anchor institutions, primary partners who can manage day-to-day economic development activities. and major constituencies across Denton. ► This working group should be comprised of staff from the City,the chamber, The goals and mission of the EDP remain relevant and appropriate for and the DME. Regular participation from the EDPB chair and/or vice-chair Denton's economic development efforts.As Denton navigates economic should be included to bridge between the working group and full EDPB. recovery from the COVID-19 pandemic,the EDP will play a critical role in Monthly meetings of the partners working group will provide a regular supporting businesses and residents.The economic fallout will be too great for cadence of check-ins about prospects and progress toward implementing individual organizations and entities to manage alone. It is pivotal that the EDP the strategies and actions in this plan. coordinates efforts to accelerate recovery. A more focused and strategic EDPB should be revised to include representatives Once Denton's economy recovers from the COVID-19 effects,the EDP will play from critical sectors and organizations in Denton aligned to the strategies a leading role in fostering growth and capitalizing on planned investments,such outlined in this plan. as the Cole and Hunter Ranch development. It will be more necessary than ever EDPB meetings should be shifted to a quarterly schedule and focused on to have a high-functioning EDP that can be aggressive,targeted,and strategic Denton's broad economic development goals and the resources necessary to in its approach to economic development. Figure 6 provides an overview of the meeting those goals. EDP governance structure. ► The current size of the EDPB should be maintained, but seats on the board Recommendations for the EDP structure include three changes. should be revised to include new representation from the following sectors and functions. 1. Creating a partners working group with staff to coordinate core economic development activities. Denton Municipal Electric 2. Aligning representation on the EDPB with priorities and strategic growth Entrepreneurship and/or technology areas outlined in this plan. Workforce development 3. Changing the EDPB's meeting cadence to a quarterly, rather than monthly, Community development basis. Marketing and/or tourism 131 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 46 ► Additionally,the EDPB should explore using informal, ad hoc task forces provide economically distressed communities and regions with funds to (as needed)to advance work around significant issues like COVID-19 support job creation and retention, innovation,enhanced manufacturing, economic recovery and workforce development. workforce development,and business investment. Some census tracts within Denton meet economic distress criteria.The City's Economic FUNDING Development Department team has already identified potential projects that will benefit important communities and priorities in Denton. Efforts to One of the reasons why Texas is one of the most economically competitive package a possible grant submission to the EDA should be prioritized,as states in the country is a statewide policy allowing local communities this is a prime opportunity to leverage federal funds to accelerate economic to dedicate a portion of their sales tax to fund economic development recovery and to support catalyst projects. corporations (EDCs). Communities across the state utilize Type A(focused on industrial development) or Type B (focused on industrial development, parks, REPURPOSE EXISTING TOOLS.As Denton businesses start to reopen, museums,sports facilities,and affordable housing) EDCs in order to fund it is possible that county-level funds will be enough to meet the needs of economic development projects.As evidenced in Figure 7, many of Denton's the business community. However,as the City continues to develop an surrounding neighbors dedicate resources toward economic development in understanding of how economic recovery is unfolding,there might be gaps this way. in relief and recovery tools that can be filled by temporarily revising existing tools. For example,the EDP Investment Fund,TIRZ funds,and Chapter 380 Denton has elected to dedicate its sales tax resources to the DCTA rather than grants might need to be repurposed to benefit groups that are unable to create an EDC.With a sizeable portion of the City's land off the tax rolls, most access county or federal funds.The City could provide targeted supports by of the City's total revenue comes from sales tax and property taxes from a creating more flexibility within existing tools. smaller group of businesses and households. Denton needs to find creative ways to increase the level of resources dedicated to economic development CREATE PUBLIC-PRIVATE INITIATIVES. Some communities have formed efforts. Successful implementation of this strategic plan will demand increased apublic-private partnership to coordinate resources across organizations, investment. provide technical assistance for businesses applying for federal funds and sharing information about the effects of COVID-19 across their cities. Denton ECONOMIC RECOVERY A N D RELIEF is already doing this to provide rental and residential utility assistance.A more robust example of this is#BhamStrong,a public-private partnership In the short term, Denton's resources should be focused on providing relief to formed in Birmingham,Alabama.The partnership includes local businesses, and accelerating recovery for business and residents.This can be challenging the United Way,the municipal government,and more. Partners have created for many communities,as the level of need far exceeds the resources and a resource directory for businesses and residents seeking relief,financial capacity available. Furthermore, local governments will likely see a decline in assistance,and information. their budgets as revenue from sales and other taxes have decreased during the While existing resources might be limited for the City,creating an economic COVID-19 pandemic. Fortunately, Denton County received a large share of the relief fund in collaboration with the chamber might be helpful in aiding federal 2020 Coronavirus Aid, Relief,and Economic Security(CARES)Act and recovery efforts.Alternatively, repurposing the EDP Investment Fund in the plans to use$24 million for business support. short term to provide relief and recovery aid is another option.The regional Communities across the US have implemented a few best practices in economic development group formed with the chamber, Denton County,and supporting economic recovery that might be models for Denton. In addition to other economic development partners could potentially be expanded to play the strategies highlighted under Goal 1 Accelerate Recovery,the City should a stronger role in aggregating information, providing technical assistance,and apply for federal stimulus funds, repurpose existing tools,and create public- offering other resources during economic recovery. private initiatives. ► APPLY FOR FEDERAL STIMULUS FUNDS.The EDA allocated $1.5 billion from the CARES Act to supplement existing funds dedicated to the Public Works and Economic Adjustment Assistance programs.These programs 132 47 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS FIGURE 7. SALES AND USE TAX ELECTIVES AS OF MARCH 2O20 Delta • Wise • • � • Denton •p1Un • ® • !We • • •• • Hopkins • • % • •hint -• • • • • •• TV Rr • • • • • • �• Rain* • �-`•• • ParKer �� Tarrant �• - • Dallas • • �• • • • • • •�� • • • KWan Van Zandt • Howl • •nspn •• • Ellis • j-� • • / • • �' V r' • / � lam- — — wrson Sources:Texas Comptroller of Public Accounts;TIP Strategies. Note:Larger bubble sizes indicate higher elective rates. 133 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 48 DENTON CATALYST FUND how to build resources to meet those goals will be necessary. What is possible and reasonable for other DFW communities might not be for Denton. It is up Denton's economic FIGURE 8. ECONOMIC DEVELOPMENT to Denton's leaders to determine what level of commitment and investment competitiveness over the long CORPORATION REVENUE FOR SELECT- they should make for economic development. Increasing Denton's level of term will require more significant ED DFW CITIES (2019) investment in economic development will require gradually building resources investment in economic overtime,and the level of resources needed to carry out the City's strategic development. Many strategies TOTAL EDCgoals will likely not be static from year to year. Ultimately,a catalyst fund will outlined in this plan dependSALES TAX REVENUE provide Denton with more options and mechanisms to better support economic on an increased investment in CITY TYPE ($MILLION) development initiatives and projects aligned with the City's strategic priorities. economic development efforts. It Type A $13.5 is paramount that Denton's leaders Allen FIGURE 9. RECOMMENDED STRUCTURE FOR A DENTON CATALYST FUND make a strong commitment to Type B $11.1 DENTON CATALYST FUND increasing resources dedicated Coppell Type B $13.1 to economic development. Figure 8 provides information about Flower Mound Type B $3.2 the level of resources invested Type A $43.0 in economic development by Frisco Type B $29.6 some of Denton's surrounding communities. Grapevine Type B $19.3 11 �, Many communities in Texas Lewisville Type B $9.0 Qn dedicate a portion of their sales Type A $16.7 UTILITIES CITY BUSINESSES tax for economic development. McKinney Percentage contribution Incentive rollbacks or Fundraising campaign These resources are often Type B $14.1 economicfrom utility for earmarked percentage -d by - Denton funneled through local EDCs that increase are categorized by the intended Type $6.3 '- - 'p - - - ' be � Southlake developments private - o use of those funds.Type A EDCs Type B $8.0 support industrial development ypengagement projects, such as business Source.Texas Comptroller of Public Accounts. infrastructure, manufacturing, research and development,job training,and A catalyst fund is often comprised of resources from both the public and private public transportation.Type B EDCs can support not only all projects eligible sectors.Aggregating resources from several sources not only increases the level for Type A funding but also parks, museums,sports facilities, and affordable of resources available but also builds broad community support for economic housing. development.Typically,contributions to a catalyst fund come from major businesses and institutions as well as public investments from local and/or Without sales tax election for economic development, Denton's best course regional governments. In addition to public and private resources,one of Denton's of action is to establish a catalyst fund that can be used not only to provide greatest untapped assets for economic development is DIME. Denton can draw incentives but also fund specific programs to grow Denton's economy. Catalyst on its utility,public resources,and businesses to create a robust catalyst fund funds can also be used to support transformational projects or provide seed appropriate for modernized economic development efforts(Figure 9). funding for innovative initiatives. Several successful communities in Texas are turning to similar funds as either an alternative to Type A or Type B EDCs or to UTILITIES. Communities with municipally owned utilities often leverage supplement the work of their EDCs. their utilities to support economic development efforts. Beyond providing competitive rates and supporting incentive packages,some utilities Developing a catalyst fund will allow Denton to better meet the strategic transfer a percentage of utility revenues into a fund dedicated to economic objectives and goals of this plan; however, maintaining flexibility in determining development.This contribution is made on top of revenue transfer into a 134 49 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS city's general fund. In addition to contributing financial resources,a utility Incentives are also common ways that cities support economic development can also support economic development through education and workforce efforts.They are only one tool used by cities,and there are many types of development programs that build the talent pipeline for a city's primary incentives that can be offered to support economic growth. Figure 10 highlights industries. More information about creative uses of municipal utility funds the portfolio of incentives provided by a select group of DFW communities. can be found in Appendix C. Denton already utilizes most incentives used by other cities;therefore,the City should update its incentive policies to align with the goals of this strategic plan ► CITY RESOURCES. Cities often contribute resources to an economic in order to continue being competitive in the DFW market. development fund that can be used to provide incentives for business attraction or to support economic development programs.There are several Resources from a catalyst fund should support the development of various ways that cities set aside resources for economic development.The most incentive funds that will promote the goals and priorities listed in this common way is to fund economic development through a general fund. strategic plan. Currently the City's primary vehicles for economic development Alternatively,cities can adopt policies to roll back expired incentives into investments are the EDP Investment Fund,the Westpark TIRZ,and the other economic development efforts. Some communities earmark a portion downtown TIRZ.Allocating resources for more targeted incentive funds of anticipated tax revenue from future developments to support economic will allow the City to better support its goals. Figure 11 includes a listing of development. For example,the City could earmark a portion of future tax recommended incentive funds.The City will likely need to adopt a phased revenue from the Cole and Hunter Ranch development for an investment approach to building these funds. in the catalyst fund.This would require consideration by and approval from City Council members. ► BUSINESS INVESTMENT. It is critical that existing businesses continue supporting economic development efforts that will grow Denton's economy. Successful and effective catalyst funds require significant business engagement in both financial support and participation in economic development efforts,such as business attraction and support for education and workforce development. Existing businesses often invest in a catalyst fund to maximize the effectiveness of their investments in their communities and efforts to improve economic conditions.A business-oriented organization,such as a chamber of commerce, is usually responsible for leading a fundraising campaign and ensuring continued business engagement.These organizations can set up and manage funds more easily than public sector partners. INCENTIVES Cities invest in economic development efforts in many ways. Most cities provide financial and/or operational support for programs and initiatives that support residents and businesses. For example,entrepreneurship and business recruitment programs often receive municipal support. In addition, cities make infrastructure improvements that have a significant effect on growth and development. Marketing, site selection support, and data analysis are also common functions provided by municipal economic development departments. 135 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 50 FIGURE 10. ECONOMIC DEVELOPMENT INCENTIVES OFFERED BY SELECTED DFW CITIES x CJ c z z cc z z UJ m C Z J y Y J J CC W f7 Z 2 Z Z O W W W y Z Q as o co a j 3 v v z LLJ 14 CD Job cash grants Property tax abatements Sales tax rebates/credits Fee waivers(impactor permit) Infrastructure grants Special district financing(TIRZ, TIF,FTZ,PID) _ Expedited Services FIGURE 11. PROPOSED INCENTIVE FUNDS FUND PURPOSE GOAL ALIGNMENT DESCRIPTION Business recruitment Multiple goals Fund for recruiting and attracting new businesses to Denton. Business retention and expansion Goal 2A:Connected Denton Fund for the retention and expansion of existing businesses, particularly in the Westpark Industrial Park area. Infrastructure,utilities,and development assistance Goal 2D:Competitive Denton Fund to support major infrastructure and development needs,including broadband connectivity. Job-based grants Multiple goals Grants to businesses based on number of jobs and wages. Innovation and entrepreneurship Goal 213:Creative Denton Fund to grow and expand Denton's entrepreneurship ecosystem. Access for historically underutilized businesses(HUBS) Goal 213:Creative Denton Fund to provide resources to businesses owned by women and people of color in Denton. Green incentives Goal 2C:Sustainable Denton Fund providing incentives to attract environmentally conscious businesses or support greater energy efficiency. Class A office space development Goal 2D:Competitive Denton Fund to incentivize the development of Class A office space,especially in the downtown area. Affordable housing or housing redevelopment Goal 3:Strengthen Community Inclusion Fund to support the City's affordable housing goals and priorities. *Carrollton only provides sales tax rebates for data centers.Irving provides sales tax rebates for certain retail projects.McKinney provides general permitting and inspection assistance.Denton provides expedited development services for a fee.Acronyms are defined as follows:TIRZ(tax increment reinvestment zone),TIF(tax increment financing),FTZ(foreign trade zone),and PID(public improvement district). Source:TIP Strategies research. 136 51 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS PROGRAMS AND POLICIES IMPLEMENTATION.The City can move into an implementation phase once these additional steps have been completed.Again, not all programs The strategies and actions outlined in this plan will require significant changes or policies will require staff to go through each step.Additional work required to implement new programs and policies will vary based on to the City's current economic development program; however, it is important to numerous factors, including the level of resources required,whether there remember that this is a long-term plan intended to be refined and implemented are existing partnerships,and the level of oversight by the EDPB and/or City over a 5-year horizon.TIP will provide the City with a detailed implementation Council. Implementation is also an iterative process that will require the matrix with recommendations for how to phase all the strategies and actions in City to continually refine and improve its strategies and actions. Flexibility is this plan. Figure 12 summarizes potential new programs and policies that will necessary for the City to adapt to changing economic conditions,address need to be enacted. challenges in a timely manner,and respond to new opportunities that will While this plan has laid the foundation for what the City needs to do,the emerge. process to implement the strategies and actions will likely require several FIGURE 12. RECOMMENDED NEW PROGRAMS AND POLICIES additional steps for the Economic Development Department and its partners.A framework for developing new programs and policies for adoption includes the NEW PROGRAMS NEW , • REVISED POLICIES following steps. ► Center of excellence for logistics and Eligibility requirements and policies for ► RESEARCH AND ANALYSIS. The City's Economic Development supply chain management each incentive fund (Figure 11) Department might need to conduct additional research and analysis to provide details for a new program or policy. For example, the Entrepreneurship knowledge resource Adoption of sustainable development network goals(SDGs) development of an edtech alliance (see Strategy 2B.4.2) will likely require additional research about models of similar alliances from Pitch and reverse-pitch competitions Revision of policies associated with which Denton can adopt. Analysis of existing edtech companies in the EDP Investment Fund,Westpark Denton and trends in the edtech sector should also be conducted to Startup accelerator TIRZ,and downtown TIRZ(as needed) inform a new program. Edtech alliance ► PARTNER CONVENING. Many of the strategies recommended require Broadband connectivity initiative the City to work in partnership with other economic and workforce Expanded workforce collaborative development organizations in Denton and the DFW Metroplex. Where existing partnerships do not yet exist,the City might need to convene Youth talent initiative potential partners to discuss how the entities can collaborate and for what purpose. For example,the Denton Innovation Group and Stoke could be partners with the City in developing an entrepreneurship knowledge MARKETING resource network. ► POLICY DEVELOPMENT. Once specific parameters of a new program How a city is perceived—by the public, by visitors, by the media, by or fund are identified,the City's Economic Development Department corporations, and by site selectors—is crucial to its economic health. This should draft policies for adoption by the EDPB and the City Council. Not all perception can be heavily influenced by marketing programs. The most programs might require formal policy adoption. New incentive funds will effective city marketing efforts build on a community's existing brand and likely require new policies to outline fund eligibility and requirements. Figure tell authentic stories that highlight local assets. A common theme that 12 lists a few policies that might need to be developed or revised in order to emerged from stakeholder input was that Denton needed to do a better job meet the strategic goals of this plan. Staff will be able to craft more detailed of marketing itself and telling the"Denton story"to a variety of audiences, policies after conducting additional research and gathering information including prospective residents, business prospects, and visitors. Effective from partners for the specific focus area. marketing can also foster a greater sense of community and build stronger ties of existing residents to Denton. 137 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 52 While this plan is not meant to serve as a comprehensive marketing different industries and sectors(i.e.,what does Denton offer for entrepreneurs assessment, Denton could benefit from refreshed and rebranded marketing. and companies interested in sustainability). Leading examples of high-quality Given the new priorities and focus areas outlined in this strategic plan,the City economic development marketing include Tampa Bay EDC, Fairfax County should conduct a more extensive review of its current marketing efforts, realign Economic Development Authority,One Columbus,and Thrive in Fort Worth. marketing to the goals of this plan,and create more sophisticated branding that promotes Denton's people, businesses,and assets. INTERNAL SYSTEMS The City should consider undertaking the following steps to refresh its marketing and branding efforts. In addition to a revised governance structure and increased funding,the City can also benefit from modernizing internal systems to track data and ► REGIONAL MARKETING AUDIT.A marketing audit will allow Denton to gain manage information about businesses. Like all business enterprises,the a sense of the image it is projecting. What do people think of when they think ability to quickly access reliable data is an essential feature of successful of Denton?What is Denton's current image to different audiences? Marketing economic development organizations. Creating and maintaining well-organized audits typically include a review of other organizations'websites to assess information systems helps facilitate the best decision-making. how Denton is conveyed and promoted (if at all) by other economic and workforce development organizations. The City's Economic Development Department has already made great strides in improving its internal systems over the past few years.As Denton navigates ► MARKETING PLAN.Based on information gathered through the marketing audit, economic recovery and returns to a path of growth,the need for strong systems the City should create a more comprehensive marketing plan that includes new will be even greater. High-functioning economic development organizations all messaging and branding.A marketing plan will help the City determine the kind of have organized and centralized information systems that are flexible enough to image and messaging it wishes to convey to potential residents and businesses. easily share information with partners. While a stronger marketing plan will be beneficial,TIP has also identified a few strategies in this plan that touch on the need for marketing improvements. The core systems that the City should invest in and continue to improve include the following. ► 2B.6. PROMOTING DENTON'S CREATIVE BRAND. Incorporate entrepreneurship into Denton's marketing.The purpose of this is to both DATABASE OF DENTON BUSINESSES.A database of existing businesses identify specific resources for entrepreneurs and to raise awareness is central to BRE efforts. Information gathered about business needs, about entrepreneurial success stories in Denton. challenges,and successes should be recorded in the database on a regular ► 2C.4. GREEN MARKETING. Include Denton's sustainability goals basis. It is paramount that this database is up to date so the City can and successes in the City's marketing materials. Denton's leadership generate timely reports, identify potential warning signs,and make decisions in renewable energy and sustainability is a way to distinguish this about how to support Denton's businesses and employers. community from others for both placemaking and economic efforts. CENTRALIZED PROSPECT/LEAD GENERATION SYSTEM. Having a ► 2D.5. DIGITAL MARKETING. Lean on more digital channels to centralized system to track prospects and leads is crucial so that information communicate the"Denton story"to different audiences.The City can do (and therefore opportunities) is not lost between partner organizations. more to leverage digital platforms to raise awareness about Denton as a Standardized information gathered about prospects should be entered into desirable place for people and businesses. the system and be used to develop a package for potential businesses. ► DIGITAL MARKETING MATERIALS. Information from a marketing audit RELATIONSHIPS/CONTACTS DATABASE.As the Economic Development and plan will inform what kinds of information should be included in new Department team builds relationships across the City,the DFW Metroplex, digital marketing materials. Modern economic development programs rely and beyond, maintaining an updated contacts database is vital.As on digital marketing materials and social media to communicate to external noted throughout the plan, networking with VC firms,entrepreneurship audiences. Information such as the City's specific economic development organizations,and regional economic development entities is a central functions(e.g., incentives,initiatives,staff contacts)should still be included. function that the City needs to play.A relationships/contacts database is Additionally,the City needs to communicate its specific value proposition for vital to facilitating that relationship building. 138 53 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS ► PROCESS AND POLICY DOCUMENTATION.The City needs a more organized way to document different processes and polices associated with economic development. For example,the process and cadence by which the City conducts BRE visits should be clearly documented for the benefit of current and future staff as well as more consistency in business engagement. Updates to policies should also be documented in a clear and accessible manner for both City staff as well as partners, including the EDPB and the chamber. PERFORMANCE MEASUREMENT.Tracking a short set of meaningful metrics is important for evaluating progress toward desired outcomes.The City should establish a mechanism for tracking reporting metrics to the EDPB and the City Council to establish transparency and accountability for achieving economic development goals. Metrics can rally partners around a common vision and standard for progress. Suggested metrics are provided in the next section. • Y 139 ECONOMIC DEVELOPMENT STRATEGIC PLAN CITY OF DENTON,TEXAS . t s G TRATE PERFOR METRI .40 70 kl- r&R/ t r 5 I .,�F ECONO(vl'1C DEVELOPMENT STRATEGIC PLAN CITY OF DENTON,TEXAS ;I A critical component of a successful strategic plan is the set of metrics by Figure 13 provides a list of performance metrics that are intended to focus the which the plan's implementation is tracked. It is imperative that the EDPB and EDPB and the City Council on high-level strategy and outcomes; however,the the City Council focus on a set of strategic metrics to track progress on critical City's staff will also need to identify programmatic and operational metrics to economic outcomes. Staff should create a performance dashboard that can track progress toward program-specific goals.TIP strongly recommends that be used to communicate performance metrics to City leadership on a regular the City disaggregate metrics by race and ethnicity where possible and that basis.This is vital to tracking progress as well as maintaining accountability disaggregated data is shared in a transparent manner. throughout the implementation of this plan. FIGURE 13. RECOMMENDED STRATEGIC PERFORMANCE METRICS GOAL ALIGNMENT LEGEND: ■ Economic Recovery AConnected Denton A Creative Denton A Sustainable Denton A Competitive Denton •Community Inclusion DESCRIPTION Unemployment rate Unemployment rate,overall and by gentler and race/ethnicity. Texas Workforce Commission ■ Labor force participation Civilian labor force participation rate. US Census Bureau American Community Survey ■ Employment gap Percentage difference in employment rate between white and people of color(ages 16-64). US Census Bureau American Community Survey ■ Retail sales growth Rate of growth or decline in retail sales within Denton. Texas Comptroller ■ Job growth Number of jobs created and retained. Texas Workforce Commission,business surveys,and interviews Vacancy rate Percentage of Westpark Industrial Park area with vacancies. In-house data collection,business surveys,and interviews Startup survival Percentage of startups that are active after 1 year and 5 years. In-house data collection,business surveys,and interviews New business establishments Number of new businesses in Denton and year-to-year growth. In-house data collection,business surveys,and interviews Access to capital Number and dollar value of venture capital,angel investment,or other capital for startups. In-house data collection,business surveys,and interviews Energy competitiveness Electricity cost rate(and comparison to peers). DME Energy efficient businesses Percentage of businesses benefiting from federal energy efficiency tax credits or local In-house data collection,business surveys,and interviews rebates. Downtown retail occupancy Occupancy rate of downtown retail spaces(or vacancy decline). In-house data collection,business surveys,and interviews Downtown housing Increase in downtown housing units overtime. In-house data collection,business surveys,and interviews Office space Amount of new office space(square feet)added as well as vacancy rate. Regional commercial real estate brokerage(e.g.,Jones Lang LaSalle—JLL) Broadband internet access Percentage of population without access to broadband internet access. US Census Bureau American Community Survey Population 25+with associate's degree or higher. US Census Bureau American Community Survey Talent availability Population 25+with bachelor's degree or higher. ` US Census Bureau American Community Survey Cost-burdened households Percentage of households spending more than 30 percent of income on rent or mortgage. US Census Bureau American Community Survey Portion of jobs at a livable wage Percentage of jobs in Denton that pay a living wage(see MIT living wage calculator). Texas Workforce Commission,Massachusetts Institute for Technology 141 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 56 _ • i . � t t .+ � ram;� '- •� • )� � •• • '' i� •• •1 'r 1 t t �r Y x' 'j. Y .Y ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTO*,TEXAS • APPENDIX A. DATA FINDINGS ECONOMIC INDICATORS AND DEMOGRAPHICS HOUSING ► ESTABLISHED AND GROWING INDUSTRIES.The education and MORE MULTIFAMILY HOUSING. Denton has a larger share of multifamily healthcare sectors continue to dominate in Denton,together accounting housing and renters compared to its neighbors, in part because of the for nearly one-third of total employment in 2019.' Manufacturing student population's need for short-term housing options.Almost half(47.8 employment has steadily risen in recent years,focused on automobile percent)of all housing units in Denton were occupied by renters in 2018, and related component manufacturing,and has overtaken retail and compared to about one-third in Plano and McKinney, respectively,and accommodation/food services as the third largest industry sector in the City. less than one-quarter in Frisco, Corinth,and Argyle.2 Moreover, multifamily The transportation and warehousing sector has also become a significant housing accounted for nearly 40 percent of Denton's housing stock as source of jobs in Denton since 2017,employing nearly 4,000 workers in of 2018,compared to one-third of Plano's and less than one-quarter of 2019.' These employment trends support the notion that Denton has been McKinney's, Frisco's,Corinth's, and Argyle's.2 successful in strengthening some of its existing target sectors,such as supply chain logistics and advanced manufacturing. STRADDLING AFFORDABILITY.The median home value and rent in Denton were much lower than the surrounding communities in 2018 ► BUILDING AN INCLUSIVE AND DIVERSE DENTON.Compared to neighboring (more than half of Denton's owner-occupied housing was valued under communities, Denton is racially and ethnically diverse with BIPOC residents $200,000).2 Relatively lower housing costs than neighboring communities accounting for more than 40 percent of the population in 2018.2Among these, make Denton more attractive for those seeking affordable housing in the Hispanic or Latinx population is the largest,representing more than half the the northern DFW Metroplex. However, more than one-quarter of Denton non-white population and nearly one-quarter of all residents. Leaders should homeowner households are cost-burdened (spend more than 30 percent pay close attention to the developing needs of Denton's relatively large,BIPOC of income on housing)—a higher rate than the surrounding communities population in the wake of the COVID-19 crisis in order to promote inclusive with higher housing CostS.2 Because Denton household incomes tend to be economic recovery across racial,ethnic,and socioeconomic groups. lower than those in neighboring communities, many households struggle with housing costs even at relatively reduced rates. For instance,suppose a ► TRAINING AND RETAINING TALENT.Though the presence of two major higher Denton household earning the median income($56,500)who currently rents education institutions can attract economic and research activity and talent, at the median monthly rate($1,046) wants to buy a median-priced home Denton has not been able to retain a workforce as educated as its neighboring ($196,900).2 Depending on the mortgage terms, monthly payments range communities.Denton is educating a substantial number of workers with potential from $800 to$1,200.1 While those able to get more favorable loan terms to enter the labor market.2 However,less than 40 percent of Denton residents 25 might be able to make payments without financial strain,other households and older have a bachelor's degree or higher,compared to well over 50 percent with lower down payments and higher interest rates would likely find the in neighboring Plano and Frisco.2 This suggests that Denton's college graduates mortgage payment unaffordable. are leaving the City to work elsewhere,possibly to seek higher wages.Denton's relatively low household median income is partially attributable to the presence HIGHER-VALUE HOUSING. In addition to its affordable housing challenge, of two large universities,where students tend to have lower incomes,but Denton Denton also has fewer high-value homes that are often needed to attract also lacks a base of moderate-to-high-income households compared to nearby professional service businesses. Denton lacks a substantial stock of high- communities—there are about 41000 households in Denton(<10 percent)with an value housing (less than 18 percent of owner-occupied homes were valued income over$150,000,compared to about 14,000 in McKinney(about 25 percent) over$300,000 in 2018),2 which stakeholders cited as a challenge in recruiting and over 22,000 in Frisco(>40 percent).2 high-paying jobs and professionals to the City. In comparison,over 47 percent of Plano's and over 67 percent of Frisco's owner-occupied homes are 1 US Bureau of Labor Statistics;Emsi 2019.4—QCEW(quarterly census of employment and wages)Employees, valued above$300,000. Non-QCEW Employees,and Self-Employed.The City of Denton is based on the aggregation of 10 ZIP Codes (76201,76202,76203,76204,76205,76206,76207,76208,76209,and 76210). 3 Estimated mortgage payments and associated affordability calculated using a modified version of Texas 2 American Community Survey,2018 5-year sample. A&M University Real Estate Center's Housing Affordability Index. 143 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 58 COMMUTING PATTERNS million).' Denton's startups have not received much of this funding ($3.2 million).' It might benefit the City's developing entrepreneurial ecosystem to ► EXCHANGING LABOR IN DFW. In 2017, more than 43,000 Denton residents network with VC firms and startups in the DFW Metroplex. had jobs outside the City.4 More than half those jobs (22,000)were in nine DFW cities with Dallas and Fort Worth together accounting for over 10,000 jobs.Among those 22,000 jobs, about half earned less than $40,000 annually.4 In contrast,about 39,000 Denton workers who lived outside the City in 2017 had residences spread more evenly across DFW communities (i.e.,30 DFW cities account for about half these workers),and more than two-thirds of these workers(27,000) earned less than $40,000 annually.4 This suggests that the jobs in Denton that attract workers from outside the region tend to be lower-earning positions compared to the jobs many Denton residents seek outside the City. In other words,the commuting story in Denton also reflects the notion that the City might be losing skilled labor to neighboring regions with higher-wage job opportunities. ECONOMIC DEVELOPMENT RESOURCES ► GROWING DIVERSE TAX REVENUE STREAMS. Denton's tax revenue sources have followed the same general trend between 2009 and 2018; property tax accounts for more than one-third of revenues (averaging 38 percent over 10 years),sales and use tax generate an average of 20 percent, franchise fees at 15 percent, and other sources make up the remaining 25 percent.5 Additionally,the City saw substantial revenue growth in 2017 (11 percent increase) and 2018 (19 percent increase) driven mostly by increased property tax revenues and other sources.5 Denton appears to have more diverse tax revenue sources than neighboring communities that depend more heavily on property and sales and use taxes. ► AN OPPORTUNITY FOR MORE ROBUST ENTREPRENEURSHIP.The DFW Metroplex has received more than $6 billion in capital funding for startups since 2009, and about two-thirds of this capital was invested in Dallas, Plano,and Irving startups.'Though investors tend to be based in the capital hubs outside the state(nearly half of investment funds are sourced from California, Massachusetts,and New York),Texas accounts for about one- fifth of the funding,with most dollars coming from Dallas investors (>$500 4 LODES(Longitudinal Employer-Household Dynamics'Origin-Destination Employer Statistics). 5 TIP Strategies analysis of the most recent CAFRs(comprehensive annual financial reports)for Denton and selected DFW communities.Revenue categories are generally consistent across most Texas municipal CAFRs: property taxes,sales and use taxes,and franchise fees.Other revenues is a catchall term for all other taxes and service fees for government and business-type activities.Denton's CAFR specifically notes on page 119 that the electric fund is not shown separately due to confidentiality of information necessary for competitive rates. 6 Investment data from Crunchbase—a crowdsourced data set that is not comprehensive.Analysis of VC funding should be interpreted with this limitation in mind. 144 59 ECONOMIC DEVELOPMENT STRATEGIC PLAN CITY OF DENTON,TEXAS APPENDIX B. SWOT ANALYSIS A thorough SWOT analysis of Denton was developed based on direct input from FIGURE 14. SWOT FRAMEWORK stakeholders through interviews and roundtable discussions.These findings offer insights into areas that can be leveraged or strengthened to support STRENGTHS WEAKNESSES economic growth as well as potential challenges and risks that might impede GLOBAL growth. 6 M-= Areas of the SWOT are defined as follows. ► STRENGTHS:Advantages that can be leveraged and strengthened to bolster NATIONAL economic vitality. follow oFotFoF ► WEAKNESSES: Challenges and risks to economic development that might trends oo STATE stifle growth. 4T ► OPPORTUNITIES: Positive trends and assets that have potential to increase shape prosperity. trends ► THREATS: External factors and risks that might negatively affect the local/ LOCAL & regional economy. REGIONAL Though the City has less influence over national and global trends, it can focus on how Denton should respond to those trends and prioritize local/regional opportunities (see Figure 14).The graphics on the subsequent pages summarize the results of the analysis. OPPORTUNITIES how- ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 60 STRENGTHS Denton's numerous strengths should be leveraged to attract business What is less known about Denton is its strong base of transportation and logistics- investment and to develop talent pipelines for the City's major industries. oriented companies that benefit from the City's proximity to the intersection of 1-35E Certainly, Denton's higher education assets make it stand out among other and I-35W. Denton's location in the DFW Metroplex is one of its biggest strengths, DFW communities. A robust arts and culture scene has also attracted students, especially as the DFW Metroplex continues to grow. Furthermore,the community's tourists, and new residents to Denton over the years. Much of this development commitment to sustainability puts Denton in an elite group of US cities that will and growth has centered around Denton's downtown square. rely on 100 percent renewable resources.A strategic focus on these strengths will continue to make Denton an attractive place to live and work. 6 Po— - PW -Anomm� Venture capital Competitive tax climate Lower cost of living compared to coasts University of Innovation capacity North Texas Texas Woman's University Airport Land availability Water rights Inmigration growth Power generation Diverse economic Interstates NCTC base Sustainability Affordable cost of Workforce living Growing Hiking& biking DFW metro trails Growing tech scene Unique culture Convention Center Manufacturing Music&arts Downtown GLOBAL NATIONAL STATE LOCAL/REGIONAL 146 61 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS WEAKNESSES Stakeholder input highlighted housing as one of Denton's top challenges. Beyond housing, Denton's lack of resources available for economic development Housing—both affordable housing and higher-value homes—is one of the top makes it difficult for the City to compete for business investment and talent. barriers to Denton's growth. Compared to its DFW peers, Denton has a higher The lack of an EDC or fund,along with reduced tax revenue,will require Denton share of low-income and moderate-income residents who cannot afford to live in to find creative ways to invest more significantly in its business attraction, Denton.At the same time,Denton's housing value tends to be lower than that of retention,and expansion efforts. other communities,making it difficult to attract professional service businesses, medical professionals,and more. I Talent shortages Reliance on volatile industries(oil &gas) Workforce for skilled trades Aging population Limited jobs Equity& inclusion Leadership Growing income transitions Lack of affordable inequality Town vs.gown housing Retention of graduates Lack of high-end housing Construction costs No Class A Infrastructure Many non-taxing office stock US national debt entities Corridors into city No tax base for community colleges High share Lack of uniting Limited (ED)economic of vulnerable vision development resources populations LOCAL/REGIONAL STATE NATIONAL GLOBAM49 14( ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 62 OPPORTUNITIES Denton's economic future depends on the community's ability to capitalize on The biggest opportunity will be the Hunter and Cole Ranch development,which investments already made and opportunities that will come with growth. For is set to add thousands of new houses,create a new employment center,and example,the City should continue to prioritize downtown development and improve retail options along I-35W. Cole and Hunter Ranch will also create more placemaking to attract businesses and talent.The City's support of Stoke has possibilities for both industrial and commercial development on the west side of led to increased entrepreneurship and a cluster of edtech startups that should Denton. If the City does nothing else, it should dedicate staff time and resources be fostered. to ensuring that the original vision for the development is implemented successfully and in a timely manner. GLOBAL NATIONAL STATE LOCAL/REGIONAL Denton Catalyst Leverage higher Expand tech, R&D, Fund education assets Opportunity Zones innovation Hunter&Cole Golden Triangle Ranch Mall redevelopment Talent retention Utilizing DME Airport expansion Growing tech sector funds for economic development Historic Edtech Cluster preservation tax Athletic complex Global sustainable credits Logistics hub development goals Telling the "Denton g (SDGs) Story" better Downtown Younger workforce development& Economic placemaking Rise of remote diversification workers Renewable energy Foreign Direct Investments Federal stimulus Migration from funds urban areas on the coasts New Market Tax Credits 148 63 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS THREATS It is necessary to understand threats not in order to control them, but instead On a smaller scale,threats to Denton's vitality include outmigration of talent to develop a proactive response to factors that are often outside the influence because of a lack of professional opportunities,attractive housing,or amenities. of local and regional organizations. Before COVID-19 became a pandemic, it Coupled with aggressive growth in other parts of the DFW Metroplex,the need was a looming threat that had the potential to disrupt every aspect of life.There to develop and retain talent in Denton has never been greater. Many of the are other looming threats that can impact Denton soon or over a long horizon. recommendations offered throughout this plan are meant to support Denton's Climate change is a threat to which the City is already developing a response by leaders in proactively responding to these threats. investing in renewable energy sources. LOCAL/REGIONAL STATE NATIONAL GLOBAL Outmigration of Industries vulnerable Decreased defense talent to disruption spending COVI D-19 Aggressive growth in other DFW communities Boom/bust cycle of Disruption in oil &gas industry healthcare industry Competition with China Higher wages in Retention of Trade policy other DFW cities existing employers uncertainty & industries Workforce for skilled trades Fragile global supply Inequitable chains distribution of jobs &opportunity US political uncertainty Climate change Immigration restrictions Aggressive business (workforce) recruitment across Economic recession US South Cybersecurity threats Aging workforce149 I ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 64 APPENDIX C. MUNICIPAL UTILITY COMPARISON Utility Company AE(AUSTIN ENERGY)2018 CPS (CPS ENERGY)2019 EPB (2019) CU (CITY UTILITIES)2019 City Austin,TX San Antonio,TX Chattanooga,TN Springfield,MO City Population 962,469 1,547,253 182,799 167,882 Economic $47,261,386 $15,354,284 $8,268,037 $481,989 Development Budget ED Budget Per Person $49.10 $9.92 $45.23 $2.87 Electricity Customers —485,000 —820,000 —170,000 —111,000 Total Utility Revenue $945,000,000 $2,744,159,000(includes gas) $741,651,000 $474,126,000 Revenue Transferred $109,000,000 $361,351,000 $7,618,000 $14,559,000 to General Fund (12%of total revenue) (13%of total revenue) (1%of total revenue) (3%of total revenue) ► Energy and education program Three paid internship programs STEP-UP paid summer Workforce development with eight school districts in for high school juniors and a internship program for high program with local high school its service territory to increase Corporate College Internship school students. covering team building,goal Workforce and interest in green energy. Program. setting,conflict resolution,and Education Initiatives EPB Institute of Technology and career exploration. ► Summer internship program for New Energy Economy program Networking to prepare students college-aged students. generated 23M for local for careers in coding and IT. schools and created 600 jobs. ► Climate Protection Plan seeks Solar powers more than 55K EPB-owned fiber optic Since 2006,CU generates to achieve 100%carbon-free homes in the region. communications network electricity from methane gas electricity generation by 2035. provides a smart grid for the produced by the city's landfill. ► Cut nitrogen oxide emissions by entire service area. ► 65%renewable energy by 2027. 75%since 1997. CU Solar Farm(powers 902 Sustainability $3M Chattanooga Clean Energy homes) leased to CU through AE offers commercial and Invested in a smart grid for the for Low Income Communities Purchased Power Agreement Initiatives residential rebates when using city and,in 2017, installed the Accelerator. with purchase option after 25 smart thermostats and other one millionth advanced meter years. technologies. or gas meter-enhancing device, Green and Healthy Homes pilot completing 90%of the project. to reduce childhood asthma Commercial and residential through better air quality. rebates for adoption of smart technology. 150 65 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS APPENDIX D. ECOSYSTEM DIRECTORY CONNECTIVITY TRADE ASSOCIATIONS RELEVANT CONFERENCES / EVENTS TRADE PUBLICATIONS Industrial Supply Association Design-2-Part Show American Shipper www.isapartners.org February 26-27,2020 J Grapevine, TX americanshiRper.com Institute for Supply Management—Dallas www.d2p.com American Trucker www.ismdallas.org/index.cfm International Conference on Information,Logistics and www.trucker.com/american-trucker-magazine Intermodal Association of North America Supply Chain International Journal ofAdv. Manufacturing Technology www.intermodal.org April22-24,20201 Austin, TX www.springer.com/engineering/industrial+management/ 10times.com/ils-austin ournal 170 Logistics&Transportation Association of North America Aviation Conference to Focus on Innovation www.Itna.ora Int'I. Journal of Shipping and Transport Logistics June 11,2020/Virtual www.inderscienceonline.com/loi/ijstl National Industrial Transportation League www.texas-airports.com/p/getinvolved www.nitl.ora Accelerate! Conference&Expo Journal of Commerce Southern Association of Wholesale Distributors September 23-25,20201 Dallas, TX www.ioc.com the-southern.ora www.womenintrucking.org/accelerate-conference Logistics Management Texas Airports Council Heavy Duty Aftermarket Week www.logisticsmgmt.com texasairportscouncil.org January 25-28,2027 J Grapevine, TX Manufacturing Technology Insights Texas Association of Manufacturers www.hdma.org/content/heavy-duty-aftermarket-week- www.man ufacturingtechnologyinsights.com hdaw manufacturetexas.ora Supply Chain HOUSTEX www.supplychaindigital.com/magazine Texas Commercial Airports Association February 23-25,2021 /Houston, TX www.texas-airports.com houstexonline.com Texas Trucking Association www.texastrucking.com Texas Warehouse Association www.texaswarehouseassociation.ora Transportation Club of Dallas/Fort Worth www.tcdfw.org Note:Events were correct at the time this document was created.Due to the COVID-19 pandemic,details are subject to change. 151 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 66 CREATIVITY TRADE ASSOCIATIONS RELEVANT CONFERENCES / EVENTS TRADE PUBLICATIONS Denton County India Cultural Association FlintConf 2020 Arts and Culture Texas www.dcica.ora April29-May 1,20201 Virtual artsandculturetx.com Denton Film Society stokedenton.com/events/2020/4/10/flintconf-2020 Journal of Innovation and Entrepreneurship www.facebook.com/DentonFilmSa ety Business Success Summit innovation-entrepreneurship.springeropen.com 2020� Virtual 4-8, Denton Main Street Association May Stoke Newsletter www.dentonmainstreet.org www.mnbusinesssuccesssummit.com stokedenton.com/join-newsletter Keep Denton Beautiful 1 Million Cups Frisco Techstars Startup Digest kdbora June 2,20201 Virtual www.startupdigest.com www.meetup.com/1-Million-Cups-Frisco/events/ Master Networks, Denton Chapter skvdrrybcjbfb Texas Highways www.meetup.com/Master-Networks-Denton-Chapter CONNECT 2020 texashighways.com North Texas State Fair Association August 6-8,2020 1 Allen, TX Texas Monthly www.ntfair.com www.attend-connect.com/connect-2020 www.texasmonthly.com Stoke Techstars Startup Week Waco stokedenton.com October 19-22,20201 Waco, TX TechMill waco.startupweek.co techmill.co Denton Arts&Jazz Festival Technology Resource Center of America April 23-25,20211 Denton, TX www.trca.com dentonjazzfest.com UNT Murphy Center for Entrepreneurship and Innovation DFW Open Data Day cob.unt.edu/murphycenter TBD 20211 Frisco, TX www.dfwopendataday.com Note:Events were correct at the time this document was created.Due to the COVID-19 pandemic,details are subject to change. 152 67 ECONOMIC DEVELOPMENT STRATEGIC PLAN CITY OF DENTON,TEXAS SUSTAINABILITY TRADE ASSOCIATIONS RELEVANT CONFERENCES / EVENTS TRADE PUBLICATIONS Conserve North Texas NTAEP Fourth Annual Texas Commission on Green Source DFW conservenorthtexas.ora Environmental Quality(TCEQ)Trade Fair www.greensourcedfw.org Environment Texas May 12,2020/Austin, TX Journal of Renewable and Sustainable Energy pvhour environmenttexas.ora www.ntaep.org/hag aio.scitation.org/journal/rse North Texas Association of Environmental Professionals GRIDNEXT 2020June 3,2020 Houston, TX POWER Magazine www.ntaep.org https://www.treia.orq/gridnext-2020-virtual www.powermag.com North Texas Green Council Renewable Energy Texas STEP Annual Joint DFW Meeting northtexasgreencouncil.org July 21,2020 J Grapevine, TX www.-iournals.elsevier.com/renewable-energy North Texas Renewable Energy Group txstep.org/meetings/annual-dfw Utilities Policy www.ntreg.org Regional Centre of Expertise North Texas Symposium www.-iournals.elsevier.com/utilities-policy Society of Texas Environmental Professionals September 16,2020/Arlington, TX Texas Journal of Oil, Gas,and Energy Law txstep.org sustainability.uta.edu/rce/events/rce-symposium t of oel.org Texas Conservation Alliance TMUA Utility Leadership and Management Conference The Solar Reflector www.tcatexas.org April28-30,2021/Round Rock, TX txses.org/the-solar-reflector Texas Municipal Utilities Association tmua.org/future-conference-dates tmua.ora Texas Public Power Association www.tppa.com Texas Renewable Energy Industries Alliance www.treia.org Texas Solar Energy Society txses.orgtxses.org Note:Events were correct at the time this document was created.Due to the COVID-19 pandemic,details are subject to change. 153 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS 68 COMPETITIVENESS TRADE ASSOCIATIONS RELEVANT CONFERENCES / EVENTS TRADE PUBLICATIONS Association of Texas College&University Facilities TMA Winter Conference BOMA Magazine Professionals January29-30,2027 lAustin, TX www.boma.org/BOMA/Research-Resources www.t-cuf.org www.texmed.org/Winter Development Magazine BOMA Greater Dallas 2020 NACE Conference+Expo www.naiop.org/en/Research-and-Publications/Magazine www.bomadallas.ora June 2-5,2020/Minneapolis,MN www.naceweb.or /conferenceex o/default.htm Texas Hospitals Career&Technical Association of Texas g p www.tha.org/TexasHospitalsMagazine www.ctat.org 2020 Commercial Real Estate Expo September 9,2020�Dallas, TX The American Journal of Medicine NAIOP North Texas p www.am-imed.com www.northtexasnaiop.com www.ntcar.org/ntcar-events/2020-expo NTCAR Reunion and Hall of Fame The Journal of Continuing Higher Education National Association of Colleges and Employers www.tandfonline.com/loi/ujch20 www.naceweb.ora September 22,2020/Dallas, TX www.ntcarhalloffame.org The Journal of Higher Education North Texas Commercial Association of Realtors and www.tandfonline.com/loi/uhei20 Real Estate Professionals THEHRA Summer 2020 www.ntcar.org October 78-20,2020/Galveston, TX The Journal of Real Estate Research Texas Association of Healthcare Facilities Management www.txhehra.org/conferences.html https://aresjournals.org/loi/rees www.tahfm.org 2021 TAHFM Annual Conference Texas Higher Education Human Resources Association March 28-37,2027/Fort Worth, TX www.txhehra.ora www.tahfm.org/general/custom. asp?oaae=2020conference Texas Hospital Association www.tha.org Texas Medical Association www.texmed.ora Note:Events were correct at the time this document was created.Due to the COVID-19 pandemic,details are subject to change. 69 ECONOMIC DEVELOPMENT STRATEGIC PLAN I CITY OF DENTON,TEXAS Economic Development Strategic Plan Implementation Matrix '• IESTM1EDAMUAL COSTS ORGA��TION POTENTIAL LEVEL OF •. t . .. . . P0NSfi3LE Current FoundationalICI • • • GOAL 1.ACCELERATE RECOVERY 6iL 1.1. ECONOMC RECOVERYNERVE CENTER 1.1.1. Pull together a small group oftop-level leadership from the City,the EDPB,and the Denton Chamber of City Chamber EDPB City-Economic None Commerce to form the"economic recovery nerve center." , , ■ Development I ''• ' 1.1.2. Shift the focus ofthe existing economic development structure from relief and policy enforcement to City-Economic cross-functional elements ofeconomic recovery,such as business retention,workforce development,and City,Chamber,EDPB ■ None i ''• ' community services. Development 1.1.3. Develop an internal data dashboard to guide economic recovery etfarts using a limited number of City-Economic City,Chamber,EDPB ■ None I '•• ' indicators that can be tracked over time and shared with partner organizations. Development 1.2. TAKNG TIE PULSE OF THE BUSlI`]ESS CONMN1 Y. 1.2.1. Continue to coordinate with the Denton Chamber of Commerce and Denton Nhin Street Association to City,Chamber,Nhin Street ■ City-Economic None MP assess short-term needs and long-term projections for Denton's businesses. Association Development1.2.2. Stay connected to DFWorganizations coordinating economic recovery and community service efforts City,Chamber,Denton County ■ City-Economic None across the DFWNEtroplex. Development 1.3. VRTUALBUSINESS RETENTION 1.3.1. Continue to develop and maintain a database ofIknton-based businesses. City,Chamber ■ City-Economic Excel or free $7,500 peryear $10,000 for CRM City General Fund I ''• ' Development option system 1.3.2. Shift the City's business visitation efforts to a virtual setting and establish a cadence of meetings with City-Economic City ■ None I ''•' -.w businesses as soon as appropriate. Development City-Economic 1.3.3. Expand existing goals for business touchpoints on a monthly,quarterly,and annual basis. City ■ None I ''• Development 1.3.4. Reevaluate and adjust standard questions and protocols utilized in the City's BRE program to be more City City-Economic None responsive to the COVID-19 crisis and recovery. Development I • 1.3.5. Prioritize business retention efforts based on strategic growth areas(see Goal2),employer size, City City-Economic None employer growth(number of employees,revenue growth,etc.),and lease temvnations. ■ Development I • 1.3.6. Structure BRE efforts to serve several purposes:educate businesses about resources offered by the City ■ City-Economic None I ''• City,identify challenges companies are facing,and identify short-term and long-term issues. Development 1.3.7. Act as a concierge to priority businesses to help navigate processes within other municipal departments City Development Services City-Economic None e. partner with a project facilitator from the City's Development Services department). , ■ Development I • 1.4. WORKFORCE COLLABORATIVE. 1.4.1. Prioritize engagement with the DCWSLT(Denton County Workforce Success Leadership Team)to City,DCMLT,Workforce ■ City-Economic None I ''• ' connect City efforts to the broader regional context. Solutions Development 1.4.2. Catalog which industries have been severely impacted by COVID-19 and detemvne iftargeted City,Denton County,Chamber ■ City-Economic None I • resources can be deployed to support workers in those industries. Development 1.4.3. Use insights and data from business retention efforts and surveys ofthe business community as a baseline for employer demand.Couple this information with other data about unemployment rates and the City,Chamber ■ City-Economic None �� ''• ' - needs ofjobseekers. Development 1.4.4. Develop an inventory oftraining resources across providers,such as NCTC(North Central Texas City,DC'WSLT,Workforce City-Economic College),Workforce Solutions for North Central Texas,and United Way.Include capacity levels and flexibility ■ None I • Solutions Development to streamline,redesign,or create newprograms to meet employer needs. 1.4.5. Engage in demandCity-Economic planning to understand which businesses expect to hire and when. City ■ None I • Development 1.4.6. Identify barriers to accessing training and other workforce resources.Continue to coordinate with City,DCWSLT,Workforce City-Economic None I •' -a-rc partner organizations to help remove these barriers for those seeking jobs. Solutions Development 1.5. RsULUSIVE ECONOMC RECOVERY. 1.5.1. Extend existing collaboration efforts with the City's Community Development Department to coordinate City Commmunity Development City-Economic None resources and efforts to support residents through economic recovery. , ■ Development I ''• 155 Economic Development Strategic Plan Implementation Matrix 1.5.2. Coordinate with the Denton Black Chamber of Commerce and other multicultural organizations to City,Chamber,Denton Black provide targeted information for businesses owned by women and people ofcolor. Chamber Chamber None I • 1.5.3. Continue to collaborate with local and regional nonprofits in gathering information about what City-Community challenges residents are facing due to the economic impact ofthe COVID49 pandemic. City Development None • 1.5.4. Disaggregate social and economic indicators by race and income levels to showhowvuhierable CityNone City-Economic _ populations are faring in comparison to other segments ofthe population. Development I • 1.5.5. Highlight businesses owned by women and people ofcolor in marketing materials and through digital City,Chamber Chamber None I • marketing channels to increase awareness and promote their success. 1.6. REGIONAL COLLABORATION 1.6.1. Continue the City's existing support for the United Way of Denton County Information&Referral City,United Way,Denton City-Community services to assist small businesses. County Development $50,000 Already funded I • 1.6.2. Strengthen the Denton County chamber and economic development wurkgroup and continue to build City-Economic City,Denton County,Chamber � None I ''• ' this network throughout the economic stabilization and recovery periods. Development 1.6.3. Leverage the Denton Innovation Group to develop targeted supports and resources to assist City,Denton Innovation ■ City-Economic None I '•• entrepreneurs through economic recovery. Group,Stoke Development 1.6.4. Connect with regional DFW organizations such as the Dallas Regional Chamber,to expand the City,Chamber,Dallas Regional information-sharing network beyond Denton County. Chamber Chamber None I '•• GOAL 2.FOSTER GROWTH 2A COWCTED DENTON 2AL BRE(BUSMSSRETENTIONANDEVANSION). 2A.1.1. Refine and enlarge the City's database of existing employers.The database should be expanded to City-Economic City,Chamber � Same as 1.3.1 I ''• ' include companies that serve external markets or are suppliers to existing employers. Development 2A $150,000/year 1.2. Ramp up the business visitation program to track trends among Denton employers and identify City-Economic $250,000 to Newjob based incentive business needs. City Development dedicated to $500 000 Up to$1,000,000 program I • Investment Fund 2A.1.3. Communicate success stories that result from BRE visits.These might not translate directly to newjob CityCity-Economic None creation or increased capital investment,but they can still be valuable to businesses. Development I • 2A2. ATIRACTNEWINVESTNENT. 2A2.1. Cultivate relationships with real estate brokers and site selectors. City,Chamber Use existing find hip ty, � Chamber and abatements $2,000,000 $3,000,000 General incentive fund I ''• ' 2A2.2. Create a centralized lead tracking system for Denton. City,Chamber City-Economic Same as 1.3.1INT-PROGRESS Development 2A2.3. Engage with regional economic development organizations,industry groups,and professional networks in the DFWNlrtroplex City,Chamber,Denton County Chamber None •W-4 2A3. WESTPARKIIMTRIALPARK 000 for 000, IIIIVE- City-Development $250,000 to $1, Utility development line 2A3.1. Prioritize infrastructure investments,particularly with respect to roads and utilities. City,Development Services Services Use existing finds $500,000 infrastructure ids.future TIRZ ids. I ''• ' incentive funding 2A3.2. Continue to track vacant properties and parcels,partnering with brokers and developers on new City,Chamber Chamber None developments or redevelopments to increase the useKibess and value of these properties. I ''• ' 2A3.3. Partner with UNr on relocating the sports recreation fields located at Precision Drive and Airport Road city,UNr ■ City-Economic None I • ' to an area outside the industrialparkto improve safety and make better use ofthe land. Development Can be provided as 2A3.4. Provide public infrastructure incentives(such as credits orreimbursements)forprojects aligned to City-Economic $100,000 per reimbursements or credits City,Development Services None $50,000 per year I ''• ' Denton's growth areas. Development year as part of incentives on high priority projects 2A4. CENIER OF EXCELLENCE. 2A4.1. Leverage over$2.8 billion in planned projects from TxDOT in Denton to increase connectivity between City,Development Services City-Economic None Denton and surrounding DFW communities. p Development I '•• 2A4.2. Explore the feasibility of partnership between the businesses located in the Westpark Industrial City,Chamber EDPB City-Economic Nonc Park,NCTC,UNT Center for Logistics&Supply Chain Nhnagement,and the City. , Development 156 Economic Development Strategic Plan Implementation Matrix 2A4.3. Include workforce partners to create career pathways for Denton students and residents into in- cityCity-Economic None demand occupations for Denton's transportation and logistics businesses. ■ Development I • I 2A4.4. Promote opportunities in the transportation,logistics,and supply chain fields to students in Denton City-Economic City,Chamber,EDPB ■ None I • and in economic development marketing materials. Development . CREATIVE DENTON IL 213.1. CHAMPIONANDCONVENE. 2B.1.1. Support the expansion ofnetworking channels and opportunities for relationship building among the City,Chamber, City-Econom No additional staffNo additional staff ic $150,000 for region's entrepreneurs,startups,and students. ,EDPB ■ Development qualified staff City General Fund I ''• ' 2B.1.2. Establish connections with DFW entrepreneurship organizations such as Dallas 1 Milion Clips, 1 City,Chamber,Denton City-Economic None • i' Mllion Clips Frisco,Dallas Innovates,Capital Factory,and the Dallas Entrepreneur Center. Innovation Group,Stoke ■ Development 2B.1.3. Assemble a knowledge resource netwurkto support entrepreneurs and companies with access to City,Chamber,Denton ■ City-Economic None I • financial,legal,policy,and research information needed for their businesses to grow. Innovation Group,Stoke Development 2B.1.4. Partner with local and regional partners to design reverse pitch competitions to engage major City,Chamber,Denton City-Economic None $10 City General Fund or corporations and organizations in the DFW Nbtroplex with needs for innovation. Innovation Group,Stoke ■ Development ,000 for sponsorships private funds I • 2B.1.5. Ensure that targeted resources are available for businesses owned by women and people of color, City-Economic City,Chamber ■ None I • who have historically faced barriers to accessing traditional economic development tools. Development 213.2. ACCESS TO CAPITAL. 213.2.1. Cultivate relationships with the DFW VC(venture capital)community so that local companies are not City,Chamber,Denton City-Economic None I • forced to relocate after they growbeyond their initial rounds of capital Innovation Group,Stoke ■ Development 2B.2.2. Partner with the Denton Angels to expand access to capital for Denton startups.Work with other angel City,Denton Angels,Denton City-Economic None I • net"urks in the DFWMtroplex,and across Texas,to improve deal flow for Denton companies and investors. Innovation Group,Stoke ■ Development 213.2.3. Network with regional entrepreneurship programs so that they become familiar with Denton and the City,Chamber,Denton City-Economic resources available for businesses looking to growand expand within the DFWMtroplex. Innovation Group,Stoke ■ Development None I • 213.2.4. Revise the funding requirements for the EDP Investment Fund to be more inclusive of innovative City-Economic $150 000/year in General incentive fund, startups that might not meet current thresholds for employment and capital investment. Cam'EDPB ■ Development Investment Fund $250,000 $500,000 programmed for I • ' entrepreneurship 2B.3. ECOSYSTEMBT IR DERS. 2B.3.1. Partner with the Denton Innovation Group to define a vision for entrepreneurship in Denton,establish City-Economic Work done in- Ifire limited $100,000 for Cityfunds and private ■ i • goals,measure progress,and connect with City,Denton Innovation Group DFW organizations. Development house consultant entrepreneurship funds ($25,000) plan development 2B.3.2. Launch an accelerator to support the growth ofexisting companies. ■ Development City,Denton Innovation Group, City-Economic N City funds and private Stoke one None $250,000 funds I • 213.3.3. Host a Citywide pitch competition to identify and develop innovative entrepreneurs in Denton.This not City,Chamber,Denton City-Economic only builds Denton's creative brand but also provides the City with a way of identifying top talent in the ■Innovation Group,Stoke Development $10,000 for event or sponsorship costs City General Fund I • community. 2B.4. EI)TECH CLUSTER 213.4.1. Capitalize on Denton's status as an emerging hub for edtech companies to drive additional growth and City,Chamber,Denton City-Economic None IF investment in this sector and to attract more creative professionals to Denton. Innovation Group,Stoke Development 2B.4.2. Create an edtech alliance with entrepreneurial companies,Denton ISD,UNT MMurphy Center for City,UNT,T JJ,Denton City-Economic City funds and private Entrepreneurship and Innovation,and the Center for Women Entrepreneurs at T JJto identify opportunities to Innovation Group,Stoke Development $5,000 far administrative,marketing,or operating costs findsstrengthen and diversify edtech in Denton. 213.4.3. Support the expansion of Denton ISD's annual TIACON(Technology in Action Conference)about City,Denton ISD,Denton City-Economic education technology and curriculum. Innovation Group,Stoke ■ Development $10,000 for sponsorships or support funding City General Fund • 213.5. RECRUIT GROWING STARTUPS. 2B.5.1. Engage with DFW entrepreneurship organizations,talent networks,and industry associations to City,Chamber,Denton City-Economic None I • ' identify new companies. Innovation Group,Stoke ■ Development General incentive fund, 213.5.2. Target successful startups in business incubators/accelerators that are on the cusp of outgrowing their City City-Economic Included in 2B.2.4. programmed for ■ I • existing spaces and are positioned for expansion/relocation to Denton. Development entrepreneurship;Job- based incentive program 2B.5.3. Track VC firms in D FW,Silicon Valley,Austin,and other markets that have recently funded high- CityCity-Economic None I • • 6, growth,innovative businesses. ■ Development 157 Economic Development Strategic Plan Implementation Matrix 2B.5.4. Use resources like the Inc.5000(a list ofthe fastest-growing private firms in the US based on year- City ■ City-Economic None I • over-year revenue growth)to identify firms that would be a good fit for Denton. Development 213.6. PROMOTING DENTON'S CREATIVE BRAND. 2B.6.1. Aggressively utilize the City's social media channels to publicize successes. City ■ City-Economic None I • Development 2R6.2. Pitch stories about successful Denton companies to media outlets,such as the Denton Record- City,Chamber ■ Chamber None I • Chronicle,Dallas Nbming News,Fort Worth Star-Telegram,Dallas Innovates,and DNhgazine. 2B.6.3. Develop a Citywide entrepreneurial recognition program that harnesses the strengths oflocal efforts City,Chamber,Denton ■ Chamber None I • that already exist in Denton. Innovation Group,Stoke 2C. SUSTAINABLE DENPON 2C.1. SATLYSUSTAINABLE STRATEGIC PLAN 2C.1.1. Prioritize the energy efficiency and conservation goal from the Simply Sustainable plan by focusing on City,Development Services, ■ City-Economic None I '•• building standards and incentives for greener residential and business development. D NE Development 2C.1.2. Work with DME and the City's Development Services department to better understand green building City,Development Services City-Economic None standards,including what is currently required of developers. Development I ''• ' None(Scored 2C.1.3. Build a more robust set ofincentives to encourage developers to adopt green building standards. City-Economic None Green Sense Nbre incentives should be offered for developments that meet higher tiers of standards. City,Development Services ■ Development during incentive $50,000 $100,000 Program I • process) 2C.2. TARGET ENVIRONfv1ENTALLYCONSCI0US BUSPESSES. 2C.2.1. Identify businesses that are high electricity users,such as data centers. DME's competitive rates and the ability to power businesses using 100 percent renewables is a good marketing opportunity for both the City,DNIE ■ Chamber None I • company and for Denton. 2C.2.2. Provide technical assistance to developers and businesses that want to leverage federal incentives, City,Development Services, ■ IxVE None I • such as the Business Energy Investment Tax Credit,or obtain IEED certification. DNE 2C.2.3. Netwarkwith regional and statewide organizations focused on clean energy,municipal utilities,and City,Chamber ■ IXV]E None I • data centers to understand trends and develop relationships with industry leaders. 2C.3. TIIQNKGLOBAL,ACT LOCAL. 2C.3.1. Adopt the SDGs and formally make them a priority for the City of Denton.The four SDGs most related CityCity-Economic None to Denton's sustainability and economic development efforts are highlighted here. ■ Development I • ' 2C.3.2. Align performance metrics with the targets and indicators associated with each SD G.Not all targets City-Economic City ■ None I�''• b will be directly applicable,so Denton can also set its own targets aligned to the SDGs. Development 2C.4. GREEN MARKETING. 2C.4.1. Incorporate Denton's Green Business Program in economic development digital marketing.The program can benefit from more targeted promotion to the business conununity. City,Chramber ■ Chamber None I • 2C.4.2. Revise digital marketing materials to include a greater focus on Denton's sustainability goals and 100 City,Chamber Chamber None I • percent renewable energy resources. ■ 2C.4.3. Cultivate relationships with regional and statewide clean energy networks.Treat these networks as a City,Chamber ■ DME None I • channel for promoting Sustainable Denton as well as finthering business attraction. 2D COMPETITIVE DENTON 2D 1. COLE AND HUNTER RANCID 21).1.1. Dedicate staffresources to supporting Hllwood and Stratford in making the Cole and Hunter Ranch City-Economic $100,000 for Revenues from Cole and City,Development Services ■ None None I • vision come to fruition. Development future staff Hunter Ranch development 2D 1.2. Provide concierge services to help the developers navigate processes across City departments and City,Development Services City-Economic None solve any challenges that arise. p ■ Development I • ' 2D 1.3. Continue to warm with FENood and Stratford to ensure that a mix ofhousing options,from high- City,Development Services City-Economic None density to low-density,are built to increase the diversity in Denton's housing stock. p ■ Development I • 213.2. DOWNTOWN DEVELOPMENT. 2D.2.1. Sustain implementation of the City's Downtown Implementation Plan adopted in 2010. City,Development Services ■ City-Economic None I ''•. - Development 158 Economic Development Strategic Plan Implementation Matrix 2D.2.2. Continue utilizing various tools(development incentives,Chapter 380 agreements,TIRZ financing, City,EDPB,Development City-Economic Use existing tools $500,000 $1,000,000 Lbwntown TIRZ fund I '•• ' and historic tax exemptions)to stimulate newprivate investment in the downtown. Services Development 213.2.3. Prioritize development of additional residential and commercial office space in downtown Denton, City,EDPB,Development City-Economic None especially the corridors extendngoffthe square. Services Development I • 2D.3. PROFESSIONAL OFFICE SPACE. 213.3.1. Promote the development of Class Abuildings for office space and creative redevelopment ofexisting City,EDPB Chamber None structures to attract professional services and tech-oriented companies. � I • Up to$11000,000 City,EDPB,Development City-Economic General incentive fund; 213.3.2. Utilize financial incentives to support the development ofnewor refurbished office space. Services Development None None for office space future TTRZ;tax abatement I • incentives 213.3.3. Strengthen relationships with the regional real estate development and brokerage community by City,Chamber Chamber None hosting quarterly or annual meetings with DFWreal estate professional and trade associations. I • 213.4. PfRASTRUCIURE. 213.4.1. Extend basic infrastructure to north Denton around Loop 288 to lay the groundwork for future City-Economic residential and commercial development after TxDOT completes reconstruction of the loop. City,Development Services Development TBD I • 2D4.2. Improve the aesthetics and accessibility ofmain condors leading into the downtown square.Dallas City-Economic City,Development Services 0 TBD Drive and Fort Worth Drive are the main entrances from I 35 into the City core. Development 213.4.3. Launch a Denton Fiber initiative to expand broadband connectivity and access to all businesses and City,EDPB,Development City-Economic TBD I • residents. Services Development 2D.5. DIGITAL MARKETING. 2D.5.1. Refresh the Denton EDP website so that it serves as the City's primary online portal for economic development prospects,site location consultants,commercial real estate brokers,and other business decision-City,Chamber Chamber $10,000 for website upgrades Private funds ]F� makers. 2D.5.2. Establish a digital marketing campaign to highlight Denton's economic development advantages and success stories.Develop baseline digital marketing tools and engage in regular digital marketing activities, City,Chamber Chamber None $10,000 $25,000 Private funds including the following. 2D.5.3. Collaborate with the Denton Chamber ofCorumerce to create digital materials aimed at commercial City,Chamber Chamber Nonc real estate brokers,describing the attractive environment forbusiness relocation. r • arc_ STRENGTHEN comAmrypcLunO 3.1. WORKFORCE COLLABORATIVE. 3.1.1. Build offthe workforce collaborative,detailed in Strategy 1.4,to focus on workforce needs during the City,DCMLT,Workforce City-Economic period ofeconomic recovery. Solutions Development None I • 3.1.2. Continue to convene regular meetings with key employers,Workforce Solutions,NCTC,and other City,DC ASLT,Workforce ■ City-Economic None I • providers to identify business needs and connect unemployed residents to jobs. Solutions,NCTC Development 3.1.3. Over the long term,identify two to three occupations and/or skills that are critical to Denton employers City,DCWSLT,Workforce City-Economic and develop pathways to support residents in moving into those roles. Solutions,NUM Development Included in 2A 1.2 Job-based incentive fund I • 3.1.4. Organize the collaborative around sharing data,coordinating demand and supply,aligning efforts to City,DCMLT,Workforce City-Economic None I • build talent pipeline,and streamlining BRE efforts. Solutions,NCTC Development 3.2. HOUSING AFFORDABILTIY. 3.2.1. Continue to collaborate with the City's Community Development department in supporting the City-Economic City,Community Development 0 None I ''• ' development or redevelopment of affordable housing in south and east Denton. Development 3.2.2. Preserve existing housing by offering financial assistance for repairs or retrofitting to maintain naturally City-Economic Use existing Tax abatements; occurring affordable housing. City,Community Development 0 Development abatements $25,000 per year $50,000 per year Neighborhood I ''• ' empowerment zones 3.2.3. Leverage the federal Opportunity Zones incentive and NewNhrkets Tax Credit to support the City,Community Develo City-Economic None development ofvaluable projects that wrill support the needs of existing residents. y pment Development I • 3.2.4. Identify opportunities for adaptive reuse of existing buildings that can be converted into multiunit City-Economic City,Community Development � None I • housing and preserve existing structures and utility connections. Development 3.2.5. Improve the development reviewprocess to decrease costs for those committed to building workforce City,Community Development, ■ City-Economic None I • and affordable housing. Development Services Development 3.3. GROW YOUR OWN TALENT NIlTIATIVE. 01 159 Economic Development Strategic Plan Implementation Matrix 3.3.1. Support youth entrepreneurship programs at the local level to foster a culture of innovation and cultivate City,Denton ISD,Denton City-Economic an entrepreneurial spirit. Innovation Group,Stoke Development $10,000 for sponsorship programs City General Fund I • 3.3.2. Encourage Denton LSD to incorporate entrepreneurship into academic curricula and increase exposure City,Denton LSD,Denton City-Economic None • and access to Denton's startups. Innovation Group,Stoke Development 3.3.3. Gather data from UNT,TWU,and NUM about graduates,including howmany students stay in Denton Crt City-Economic None and the BMAtroplex versus relocating to other parts ofthe state or country. y,UNT,TWU,NUM I • C RESOtRCT Explore options to update and/or refine Denton's economic development operations,including a Customer City ■ City-Economic Excel or free $2 500 per year $10,000 far CRM City General Fund I • Relationship Nhnagement(CR4 system for information and contact management. Development option system Update the City's incentive policies to align with the strategies and actions outlined in the economic CityCity-Economic None development strategic plan. Development I • Develop cost estimates for implementation of the strategic plan and options for the City to allocate the CityCity-Economic None resources necessary for implementation. Development I • 160 Date: January 15,2021 Report No. 2020-008 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: FY20-21 Acceptance of Sponsorships and Donations Update. BACKGROUND: On February 11, 2020, the City Council approved Ordinance 20-169 outlining requirements for accepting sponsorships and donations. Under the new ordinance, Parks and Recreation will provide Council with a report, at least annually, which includes information on the sponsorships and donations collected. DISCUSSION: The COVID pandemic significantly impacted special events and programs that would typically collect sponsorships during the first quarter of FY 20-21. Special events and programs were suspended for a period of time with gatherings of large groups restricted. The Parks and Recreation Department has collected a total of $3,995 in sponsorships and donations for the following events, programs or projects: Sponsor/Donor Name Sponsorship Project/Program Category First Quarter Value Parks Foundation $1,000 Vela Art Sculpture Special Project Parks Foundation $258 Signs at Cross Special Project Timbers Park MLK Advisory Board $385 Treat to Trunk Special Event Eaties $10 Treat to Trunk Special Event Denton Police Department $100 Treat to Trunk Special Event Mt. Calvary Baptist $80 Treat to Trunk Special Event Denton Together Coalition $25 Treat to Trunk Special Event Juneteenth $40 Treat to Trunk Special Event Joppa Lodge $51 Treat to Trunk Special Event NAACP $40 Treat to Trunk Special Event 161 Date: Report No. Empowered Outreach Church $50 Treat to Trunk Special Event Birdia Johnson for City Council $150 Treat to Trunk Special Event DCTA $700 Treat to Trunk Special Event RSVP $60 Treat to Trunk Special Event SEDNA $25 Treat to Trunk Special Event LJ3 $50 Treat to Trunk Special Event Omega Alpha, Omega Chapter of Alpha Kappa $396 Treat to Trunk Special Event Alpha Denton County Friends of the Family $40 Treat to Trunk Special Event Anonymous $92 ALH Holiday Bags Special Event The Cookie Crave $68 Cookies&Cocoa Special Event Drive Thru Insomnia Cookies $75 Cookies and Cocoa Special Event Drive Thru Eaties $300 Tree Giveaway Special Event Total $3,995 CONCLUSION: The Parks and Recreation Department will continue to seek sponsorships and donations in an effort to enhance and subsidize the costs of programs, events, and projects. STAFF CONTACT: Jennifer Eusse Special Event Supervisor Parks and Recreation Jennifer.Eusse@cityofdenton.com PARTICIPATING DEPARTMENTS: Parks and Recreation Department STAFF TIME TO COMPLETE REPORT: Parks and Recreation Department 1 hour Total Staff Time 1 hours 162 Date: January 15,2021 Report No. 2021-009 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Quarterly Financial Report for the period ending September 30, 2020. BACKGROUND: Attached for your review is the Quarterly Financial Report for the period ending September 30, 2020. If you have any questions or need additional information, please let me know. STAFF CONTACT: Cassey Ogden, Finance Director (940) 349-7195 cassandra.ogden@cityofdenton.com 163 6 a � q q � o 0 CITY OF jL TEXAS 164 L �) 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 September 30, 2020. This report is presented in four sections. 1 . The Executive Dashboard section contains a high level summary of the major operating funds using graphic illustrations and key economic indicators. Narrative disclosures are also included to highlight any significant changes or fluctuations. 2. The Financial Summary section reports the performance of the major operating funds of the City. In addition, the report provides an end of year projection and a comparison to the budget for major revenue sources and expenditure items. 3. The Revenue & Economic Analysis section provides additional analysis regarding key revenue sources and economic indicators. 4. The Quarterly Investment Report section provides a summary of the City's investment portfolio, interest earnings and a brief market outlook. 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. Cassandra Ogden Director of Finance 215 East McKinney Street Denton, TX 76201 940-349-7195 165 Section 1 City of Denton Quarterly Financial Report September 2020 Executive Dashboards 166 City of Denton, Texas `01 General Fund Executive Dashboard D E N T O N FY 2019-20 FY 2019-20 ANNUAL PRELIMINARY FY2019-20 DESCRIPTION BUDGET 1 ACTUALS VARIANCE Beginning Fund Balance Revenue & Expenses (in Millions) as of 09/30/19 $ 30.13 $ 30.74 ■YTD Revenue ■YTD Expenses RESOURCES: $140 AdValoremTaxes 48.63 48.63 0% Sales Tax 39.28 39.34 0% $120 Franchise Fees 4.60 4.60 0% Other Taxes 0.50 0.30 40% Service Fees 8.17 6.85 -16% $1oo Fines and Fees 3.58 2.28 -36% Licenses and Permits 6.63 5.22 -21% $80 Miscellaneous Revenue 3.31 2.29 -31% Transfers In 21.64 27.35 26% $60 Total Revenues 136.34 136.86 0% Total Resources 166.47 167.60 $40 EXPENDITURES: $20 -flT Personal Service 93.24 92.85 0% Material and Sunnlies 3.25 2.47 -24% $- Maintenance and Repairs 1.67 1.32 -21% O O O O O O O O O Insurance 1.57 1.57 0% Miscellaneous 1.50 1.10 -27% Onerations 16.98 15.98 -6% Sales Tax Monthly Average by Quarter Transfers Out 17.73 18.27 3% Fixed Assets 0.56 0.44 -21% $4.0 Total Expenditures 136.50 134.00 -2% $3.5 -Net Income (Loss) (0.16) 2.86 $3.0 Ending Fund Balance $ 29.97 $ 33.60 $2.s TrendsKey $2.0 ➢Service Fees revenues are$1.32M less than budgeted mainly due to the Aquatics Center closure during the $1.5 summer. ➢Fines and Fees revenues are$1.30M less than budgeted mainly due to lower Municipal Court fines and fees. $1.0 ➢Licenses and Permits revenues are$1.41M less than budgeted mainly due to lower Building Permits. ➢Transfers In revenues are$5.71M more than budgeted mainly due to Public Safety payroll reimbursed by the $0.5 Coronavirus Relief Fund. ➢Operations expenditures are$1.00M less than expected mainly due to 380 Agreement tax rebates reductions $_ due to COVID-19 impact. h O 0 O O O 167 O� Oti 0'v 0=ti 0=ti Oti o=ti 0=y Oti O� 0� 'Annual adopted budget as amended or modified.Beginning Fund Balance represents the amount which was a ti ti ti ti ti a estimated in the FY 2019-20 budget process. Note: All figures presented are In millions of dollars. City of Denton, Texas Electric Fund Executive Dashboard ! • ' - - DENTON FY2019-20 FY2019-20 ANNUAL PRELIMINARY FY2019-20 DESCRIPTION BUDGET ACTUALS VARIANCE Revenue & Expenses (in Millions) Beginning Working Capital $250 and Reserves as of9/30/19 $ 55.64 S 77.92 RESOURCES: $200 Rate Revenues 146.49 145.21 0% Transmission Revenue 46.70 48.49 4% $150 Other Revenues 3.98 9.73 145% DEC Revenues 25.07 12.76 -49% Total Revenues 222.24 216.19 -3% $100 Total Resources 277.88 294.11 EXPENDITURES: $50 Purchased Power 74.30 60.16 -19"/° DECFnel 12.48 3.60 -71% $0 Transmission of Power 18.62 16.77 -10% Personnel Service 22.75 19.66 -14% Operation and Maintenance 31.67 27.93 -12% O� O F `S l tio' 0 L 10 10 Debt Service 54.73 54.57 0% ■YTD Revenue ❑YTD Expense Transfers Out 15.85 14.98 -5% Capital Outlay 1.83 5.99 227% 2014-202o Historical Quarterly GWH Sales Total Expenditures 232.23 203.66 -12% 600 Net Income(Loss) (9.99) 12.53 Ending Working Capital 500 and Reserves $ 45.65 S 90.45 400 A A A A A A Key Trends --j Q \,-j ➢Revenues are 3%lower than budgeted. Transmission revenue is$1.8 Million higher than budgeted while DEC Revenue is 300 $12.3 Million less than budget as a result of DEC running fewer hours due to cooler weather in the summer months. Other Revenues are 145%higher than budget as a result of$5.6 Million in TMPA Transmission revenue. 200 ➢Purchased Power expenditures are$14.1 Million less than budget and DEC Fuel is$8.9 Million less than budget as a result of cooler weather in the summer months. Transmission of Power is$1.8 Million less than budget due to filings by other electric utilities. 100 ➢Personnel costs are$3.1 Million less than budget as a result of eliminating positions. ➢Operation and Maintenance costs are$3.7 Million less budget as a result of conservative measures taken to lessen the 0 potential financial impact of COVID-19. This more than offset the increased ROI rate from 3.5%to 6%,which resulted in payments$1.1 Million higher than budget. tid do 3d ao,d tided�°tid tid 3d�o ti°do 3°oo ti°tid 3d ao do ti°3° a°tid do M° ao ➢The Ending Working Capital and Reserves is$44.8 Million higher than budget as a result of lower Purchased Power costs, Note: All figures presented are in millions of dollars. lower DEC Fuel cost,reduced operational costs,and receiving$5.6 Million in unanticipated revenue from TMPA. Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2019-20 budget process. 168 City of Denton, Texas CITY ar Water Fund Executive Dashboard DENTON FY 2019-20 FY 2019-20 ANNUAL PRELIMINARY FY 2019-20 Revenue & Expenses (in Millions) DESCRIPTION BUDGET' AC TUALS VARIANCE $60 Beginning Working Capital $50 and Reserves as of 09/30/192 $ 23.54 $ 25.46 RESOURCES: $40 Water Sales 39.35 39.08 -1% $30 Other Water Revenues 1.16 1.51 30% Transfers In 0.95 1.15 21% $20 Impact Fee Revenue 6.61 6.61 0% $10 Total Revenues 48.07 48.35 1% Total Resources 71.61 73.81 ti� do ti� 10 do �o yo do 10 \�o �o yo IleQQ� �aJ >Jc lJ 0 �eQ EXPENDITURES Personal Service 8.90 8.14 -9% ■YTD Revenue ■YTD Expenses Operations, Services 10.82 9.78 -10% Capital Outlay 13.69 13.84 1% 2014-2020 Historical Quarterly Gallons Sold(in Millions) Debt Service 12.88 12.88 0% 2,500 Transfers Out 4.77 4.90 3% MMMTT Total Expenditures 51.06 49.54 -3% 2,000 Net Income (Loss) (2.99) (1.19) Ending Working Capital and Reserves $ 20.55 $ 24.27 1,soo TrendsKey 1,000 ➢Other Water Revenues are favorable to budget due to increases in tapping fee and raw water resale revenues. 500 ➢Transfers in are higher than budget due to a larger administrative transfer from Electric. 0 ti ti ti ^h 110 b y y 4 4 � � ry0 ry0 0 0 0 0 o, d o 0 0 0 0 0 10, 0 'Annual adopted budget as amended or modified.Beginning Fund Balance represents the amount which was estimated in the FY 2019-20 budget process. 'The Beginning Working Capital balance excludes$13.05M of Impact Fee Reserves and$0.75 million for Development Plan Note: All figures presented are in millions of dollars. Line Reserves. 169 City of Denton, Texas lCuoF Wastewater' Fund Executive Dashboardr DENTON y� FY 2019-20 FY 2019-20 ANNUAL PRELIMINARY FY 2019-20 DES C RIPTIO N BUDGET' AC TUALS VARIANCE Beginning Working Capital Revenue & Expenses(in Millions) and Reserves as of 09/30/192 $ 16.19 $ 16.93 $40 RES O URC ES: $35 Wastewater Fees 25.08 24.03 -4% $30 Other Wastewater Revenue 1.81 2.14 18% $25 Drainage Fees 4.96 5.09 3% $20 Transfer In 0.59 0.59 0% $15 Impact Fee Revenue 4.27 4.27 0% $10 Total Revenues 36.71 36.12 -2% $5 Total Resources 52.90 53.05 $_ EXPENDITURES: tia ti� ti� yo yo do yo �o do �o yo do Personal Service 9.35 8.60 -8% C� �o° oe� �a� �e0 �a` PQ` �a� �o� �o` Poi �eQ Operations, Services 10.22 7.91 -23% ■YTD Revenue ■YTD Expenses Capital Outlay 6.81 8.04 18% Debt Service 7.49 7.48 0% 2014-2020 Historical Quarterly Gallons Billed(in Millions) Transfer Out 4.45 4.87 9% 1,400 Total Expenditures 38.32 36.90 -4% 1,200 Net Income (Loss) (1.61) (0.78) 1,000 Ending Working Capital 800 and Reserves $ 14.58 $ 16.15 600 Key Trends 400 ➢ Other Wastewater Revenues are favorable to budget due to increases in tipping fee 200 and compost revenues. 0 ti� ➢ Operations, Services are favorable to budget due to reductions in materials, tia ti� ti� ti� ti� ti y ti� o a -o n, -a 41D, supplies, and maintenance and repair expenditures. 'Includes Drainage. 2Annual adopted budget as amended or modified.Beginning Fund Balance represents the amount which was estimated in the FY 2019-20 budget process. Note: All figures presented are in millions of dollars. 3The Beginning Working Capital balance excludes$6.77 million of Impact Fee Reserves,$1.0 million for Drainage Reserves, and$0.54 million for Development Plan Line Reserves. 170 --- City of Denton, Texas CITY OF Drainage Operations Executive Dashboard l l --- DENTQN FY 2019-20 FY 2019-20 ANNUAL PRELIMINARY FY 2019-20 Revenue& Expenses(in Millions) DESCRIPTION BUDGET AC TUALS VARIANCE REVENUES: $6.0 Residential Drainage Fees $ 1.90 $ 1.95 3% Nonresidential Drainage Fees 3.06 3.14 3% $5.0 Wastewater Resources 0.04 - -100% General Fund Transfer 0.35 0.35 0% Total Revenues 5.35 5.44 2% $4.0 EXPENDITURES: $3.0 Personal Service 2.31 2.04 -12% Operations, Services 0.94 0.68 -28% $2.0 Capital Outlay 1.14 1.62 42% Debt Service 0.48 0.47 -2% $1.0 Transfer Out 0.48 0.63 Total Expenditures1 5.35 5.44 2% $ J F �� ,� LO LO l0 l0 l0 10 l0 l0 l0 Net Income (Loss) $ - $ - ,o c� 0 O�� >a� Fep Oat Pit �aJ >Jc >J\ PJ� SaQ ■YTD Revenue ■YTD Expenses Trendsk Key ➢Operations, Services expenditures are favorable to budget due to lower than expected materials & supplies and outside services costs. ➢Capital Outlay expenses are over budget due to year-end expenditure true-ups and additional funding provided for the channel rehabilitation drainage project. Note: All figures presented are in millions of dollars. 171 City of Denton, Texas s ItIMMOM Solid Waste Fund Executive Dashboard - DENTON FY2019_20 FY2019_20 ANNUAL PRELEVINARY FY2019-20 DESCRIPTION BUDGET' ACTUALS VARIANCE 10,000 Residential Curbside Collection Tonnage Beginning Working Capital 9,000 and Reserves as of 09/30/192 $ 10.36 $ 9.21 8,000 RESOURCES: 7,000 Collection&Disposal 27.08 28.51 5% 6,000 Recycling 7.04 6.74 -4% 5,000 Other Revenue 1.27 1.63 28% 4,000 Total Revenues 35.39 36.88 4% 3,000 ti Total Resources 45.75 46.09 2,000 EXPENDITURES: 1,000 Personal Service 11.10 10.44 -6% 0 Operations,Services 9.83 8.18 -17% Capital Outlay 3.81 4.41 16% Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Debt Service 8.45 8.45 0% Landfill Closure 0.61 - -100% ■Refuse Tonnage Recycling and ReuseTonnage Transfer Out 4.65 4.37 -6% Total Expenditures 38.45 35.85 -7% Commercial Refuse & Recycling(Front&Side Load) Net Income(Loss) (3.06) 1.03 Cubic Yards Serviced per Week Ending Working Capital and Reserves $ 7.30 $ 10.24 30,000 25,000 Key Trends 20,000 ➢ Collection&Disposal was more than expected because of an increase in Landfill Gate receipts. 15,000 ➢ The increase in Landfill gate receipts was driven by an increase in wholesale and residential tons. ➢ Other revenue increased due to a sale of assets throughout the year. 10,000 ➢ The contribution to the Landfill Closure Fund was suspended this fiscal year until the landfill 5,000 tiai° expansion is finalized. 0 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 'Annual adopted budget as amended or modified.Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2019-20 budget process. ■Commercial Refuse ■Commercial Recycling 2The Beginning Working Capital and Reserves excludes$11.06 million of Landfill Closure/Post Closure reserves. Note: All figures presented are in millions Of dollars. 172 City of Denton, Texas 41) M M Airport Fund Executive Dashboard • DENTON FY2019-20 FY2019-20 - - ANNUAL PRIIEMM%;ARY FY2019-20 DESCRIPTION BUDGET' ACTUALS VARIANCE Beginning Working Capital GAS WELL REVENUE and Reserves as of09/30/18 $ 2.81 $ 2.88 (in millions of dollars by fiscal year) RESOURCES: $5.0 Airport Ground Leases 0.77 0.79 3% FBO Commissions 0.21 0.18 -14% $4.0 Fuel Flowage Fees 0.13 0.12 -8% Total Operating Revenues 1.11 1.09 -2% $3.0 EXPENDITURES: Personal Service 0.52 0.43 -17% $2.0 Operations,Services 0.39 0.20 49% Transfer Out 0.38 0.38 0% $1.0 Total Operating Fkpenditures 1.29 1.01 -22% Net Operating Income(Loss) (0.18) 0.08 $0.0 NON-OPERATINGREVEVUFS: 2018 2019 2020 Investment Income 0.02 0.08 300% Gas Well Royalties 0.36 0.19 -47% GaNlis Well eos Income 0.36 0.00 7 AIRPORT OPERATIONS BY QUARTER (takeoff or landing by fiscal year) Total Non-Operating Revenues 0.38 0.27 -29% NON-OPERATING EXPENDITORES 60,000 TransferOut-Capital 0.25 0.30 20% Total Non-Operating Expenditures 0.25 0.30 20% 50,000 Net Non-Operating Income(Loss) 0.13 (0.03) Net Income(Loss) (0.05) 0.05 40,000 Ending Working Capital and Reserves $ 2.76 $ 2.93 Key 30,000 • ➢Both revenues and expenses were less than budgeted due to COVID-19. 20,000 L] 1l\ 1p' 1tiy 110' aQ 1O, by 14Y fkd tip' 4y 1�y 0 1Q' Ipa Pr 0 '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 2019-20 budget process. 173 CITY City of Denton, Texas OF �� DENTONStreet Improvement Fund Executive Dashboard ..,�! FY2019-20 FY2019-20 ANNUAL PRELIMINARY FY2019-20 DESCRIPTION BUDGET 1 ACTUAL S VARIANCE Revenue&Expenses(in Millions) $1 .0 Beginning Working Capital $15.0 and Reserves as of09/30/19 $ 2.35 $ 3.44 $14.0 $13.0 RESOURCES: $12.0 $11.0 Franchise Fees 13.09 12.97 -1% $10.0 $9.0 Street Cuts 0.37 0.37 0% $8.0 $7.0 Investmentlncome 0.01 0.07 600% $6.0 $5.0 Transfers In 1.18 1.32 12% $4.0 $3.0 Total Revenues 14.65 14.73 1% $2.0 $1.0 Total Resources 17.00 18.17 $ Oct-19 Nov49 D-19 Jan-20 Feb-20 M-20 Ap,20 M.y 20 Jun-20 Ju1-20 Aug-20 Sep-20 ■YTD Revenue E YTD Expenses EXPENDITURES: Personal Service 3.51 3.25 -7% Tons of Asphalt Laid(in Thousands) Materials&Supplies 0.09 0.08 -11% 12 Maintenance&Repairs 7.36 5.78 -21% 9 Operations,Services 0.81 0.75 -7% 6 Transfer Out 3.96 4.15 5% Total Expenditures 15.73 14.01 -11% 3 Net Income(Loss) (1.08) 0.72 01 Qtrl FY18 Qtr3 Qtr4 EFY18-19 EFY19-20 Ending Fund Balance $ 1.27 $ 4.16 TrendsKey Lane Miles Surface Treatment 100 ➢ Maintenance & Repairs are lower than budgeted due to a delay of street 80 60 projects related to weather and the impact of COVID-19. 40 ➢ No surface treatments were completed in the 41" quarter for FY18-19 or for 20 FY19-20. 0 Qtr 1 Qtr 2 Qtr 3 Qn 4 E FY 18-19 FY 19-20 'Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount Note: All figures presented are in millions of dollars. which was estimated in the FY 2019-20 budget process. 174 City of Denton, Texas 1171 Grants Dashboard DENTON FY2019-20 FY2019-20 FY 2019-20 Awards & Expenses (in Millions) GRANT PRELBSNARY FY 2019-20 $80.0 DESCRIPTION AMOUNT ACTUALS VARIANCE 2019-20 Budget $60.0 Comm Developments $ 3.77 $ 1.62 -57% o $40.0 Public Safety 0.63 0.56 -11% 2 Transuortation1 61.80 21.55 -65% $20.0 Other 0.36 0.04 -89% Total Budget 66.56 23.77 -64% $ New Awards G U ~ w G W M LL Q U H Public Safety 1.80 1.72 -4% V ° Transportation 3.21 3.21 0% Coronavirus Relief Fund(CRF) 7.62 4.80 -37% ■Awards ■Expenses Other 0.21 0.21 0% Total New Awards 12.84 9.94 -23% FY 2019-20 Grants Awarded Totals $ 79.40 $ 33.71 -58% CRF OTHER COMM DEV 0.71% PUBLIC 9.60% 4.75% SAFETY Key Trends: 1 3.07 The following grants have been received in FY 2019-20: ➢Texas Intrastate Fire Mutual Aid System:$38,156 1 ➢Federal Equitable Sharing:$243,254 ➢Texas Department of Public Safety's Texas Division of ➢Chapter 59 Asset Forfeitures:$26,105 Emergency Management(TDEM):$16,725 ➢U.S.Marshals Violent Offenders Task:$78,223 ➢Coronavirus Emergency Supplemental Funding:$1,080 \ ➢Organized Crime Drug Enforcement: $18,148 ➢IH35 E FR&Brinker Signal:$204,937 ➢USSS'N Texas Crimes Task Force:$5,000 ➢Fort Worth Drive Utility Improvement:$3,000,000 ➢PD-Law Enforcement Officer Education:$9,600 ➢Airport West Side Runway Grant:$1,958 ➢Sexual Assault Nurse Examiners:$1,779 ➢Collaborative Summer Library Program:$118 ➢National Sexual Assault Kit Initiative Grant:$27,417 ➢Alternative Fueling Facilities Program:$6,450 ➢North Texas Organized Crime Task Force:$8,857 ➢Coronavirus Relief Fund from Denton County:$4,802,113 ➢Ambulance Services-Uncompensated Care Cost:$923,869 ➢TDEM-COVID 19-Public Assistance Grant:$47,422 ➢Urban Search&Rescue Response System:$323,143 ➢Texas Workforce Commission:$152,003 TRANS ➢Humanities Texas Relief Grant:$92 81.87% This grant amount will be spent over several years and the fiscal year 2019-20 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. 175 Section 2 City of Denton Quarterly Financial Report September 2020 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 176 City of Denton General Fund Schedule of Revenues -Budget vs Actuals (Unaudited) For the Period Ended September 30, 2020 PRIOR ANNUAL PRELIMINARY BUDGET VS REVENUE DESCRIPTION Y-T-D BUDGET ACTUALS ACTUALS Current Year-Ad Valorem $ 45,518,886 $ 47,996,976 $ 48,097,387 0% Delinquent-Ad Valorem 373,348 311,978 136,678 -56% Miscellaneous Penalties&Fees 402,957 320,775 397,145 24% Ad Valorem Taxes 46,295,191 48,629,729 48,631,210 0% Sales Tax 38,330,825 39,281,942 39,337,834 0% Franchise-Gas Utilities 341,345 384,313 320,976 -16% Franchise-Private Electric Utilities 121,054 117,980 120,020 2% Franchise-Cable 468,667 363,687 320,569 -12% Franchise-Telecom 229,722 53,301 76,929 44% Franchise-Denton Municipal Utilities 3,824,061 3,679,652 3,760,439 2% Franchise Fees 4,984,849 4,598,933 4,598,933 0% Other Taxes 523,268 501,870 304,294 -39% Ambulance Service Fees 3,057,598 3,679,000 3,817,135 4% Fire Department Fees 195,104 208,000 147,179 -29% Building Inspections Fees 594,962 597,476 574,529 -4% Park Department Fees 1,760,318 2,040,353 226,246 -89% Planning Department Fees 1,134,739 1,362,254 1,909,039 40% Reprographics Fees 324,216 97,603 85,380 -13% Miscellaneous Service Fees 153,224 182,471 88,325 -52% Service Fees 7,220,161 8,167,157 6,847,833 -16% Denton Municipal Fines 1,465,332 1,503,486 967,893 -36% Parking Fines 282,940 262,620 129,640 -51% Miscellaneous Fines and Fees 839,388 725,712 492,558 -32% Court Administrative and Service Fees 1,064,037 1,084,800 689,681 -36% Fines and Fees 3,651,697 3,576,618 2,279,772 -36% Demolition Permits 6,555 4,430 12,665 186% Building Permits 3,784,319 6,526,709 5,155,833 -21% Certificate of Occupancy 70,810 67,226 49,323 -27% Miscellaneous Licenses and Permits 28,136 28,087 7,307 -74% Licenses and Permits 3,889,820 6,626,452 5,225,128 -21% Investment Income 1,114,348 903,382 793,413 -12% Miscellaneous Revenues 1,791,483 2,409,191 1,492,274 -38% Miscellaneous Resources 2,905,831 3,312,573 2,285,687 -31% ROI-Denton Municipal Utilities 8,458,559 8,978,547 11,199,283 25% Transfers 10,631,697 12,662,121 16,154,076 28% Transfers 19,090,256 21,640,668 27,353,359 26% CRF Funding Total General Fund Revenues $ 126,891,898 $ 136,335,942 $ 136,864,050 0% 177 City of Denton General Fund Schedule of Expenditures - Budget vs Actuals (Unaudited) For the Period Ended September 30, 2020 PRIOR ANNUAL PRELIMINARY BUDGET VS Y-T-D BUDGET ACTUALS ACTUALS NEIGHBORHOOD SERVICES Building Inspections $ 3,055,220 $ 3,437,095 $ 3,285,877 4% Community Improvement Services 1,443,258 1,620,557 1,238,232 -24% Libraries 5,847,381 6,195,023 5,894,641 -5% Parks and Recreation 10,291,254 12,114,271 9,495,161 -22% Planning 3,364,924 4,054,801 3,519,496 -13% Gas Well Review 332,675 422,398 399,706 -5% Social Services 637,046 1,716,712 1,198,940 -30% 24,971,758 29,560,857 25,032,053 -15% PUBLIC SAFETY Animal Services 2,014,949 2,293,869 2,270,464 -1% Fire 30,477,640 31,856,795 33,317,554 5% Municipal Court 1,094,975 1,182,784 1,418,427 20% Municipal Judge 422,835 564,530 540,696 4% Police 34,929,226 39,933,339 39,101,488 -2% 68,939,625 75,831,317 76,648,629 1% TRANSPORTATION Traffic Operations 2,062,024 2,310,060 2,474,424 7% Transportation Operations 192,080 - - 0% Street Lighting 825,907 850,000 820,716 -3% 3,080,011 3,160,060 3,295,140 4% ADMINISTRATIVE&COMMUNITY SERVICES City Manager's Office 2,351,618 2,458,145 2,172,622 -12% Economic Development 4,759,609 4,962,803 4,075,220 -18% Facilities Management 4,696,820 - 212 212% Finance 3,327,966 3,965,753 3,680,300 -7% Human Resources 1,762,011 1,826,381 2,226,733 22% Internal Audit 444,879 643,519 466,929 -27% Legal Administration 2,547,530 2,883,241 2,834,145 -2% Public Affairs 1,950,990 2,413,173 1,941,978 -20% Non-Departmental 7,637,622 8,791,300 11,629,316 32% 29,479,045 27,944,315 29,027,455 4% TOTAL EXPENDITURES $ 126,470,439 $ 136,496,549 $ 134,003,277 -2% Beginning FY 19-20,Transportation Operations and Facilities Management are no longer budgeted within the General Fund. 178 City of Denton Electric Fund Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited) For the Period Ended September 30, 2020 PRIOR ANNUAL PRELIMINARY BUDGET VS DESCRIPTION Y-T-D BUDGET ACTUALS ACTUALS Beginning Working Capital and Reserves as of 9/30/19 $ 55,642,370 $ 77,919,436 REVENUES: Rate Revenues $ 147,838,341 146,489,831 145,211,390 -1% Transmission Revenues 44,607,697 46,700,670 48,494,644 4% Other Revenues 8,888,971 3,977,004 9,728,745 145% COVID-19 Revenue Impact - DEC Revenues 37,482,023 25,073,394 12,762,627 -49% Total Revenues 238,817,032 222,240,899 216,197,406 -3% EXPENDITURES: Purchased Power 90,120,153 74,298,356 60,164,760 -19% DEC Fuel 6,954,969 12,475,775 3,599,350 -71% Transmission of Power 16,997,292 18,616,102 16,767,829 -10% Personnel Services 17,795,822 22,747,359 19,662,169 -14% Materials and Supplies 679,912 1,283,850 751,158 -41% Maintenance and Repair 670,898 1,826,609 717,643 -61% Insurance 745,713 1,424,039 1,434,149 1% Return on Investment 6,331,599 7,913,804 8,970,039 13% Franchise Fee 9,039,835 9,448,292 9,413,971 0% Miscellaneous 616,222 1,374,225 1,510,654 10% Operations 4,719,210 8,415,902 5,137,426 -39% Debt Service 50,649,750 54,728,969 54,568,897 0% Interfund Transfers 14,310,408 15,848,533 14,978,366 -5% Capital Outlay 16,312,335 1,826,394 5,992,053 228% Total Expenditures 235,944,118 232,228,209 203,668,464 -12% Net Income(Loss) $ 2,872,914 (9,987,310) 12,528,942 Ending Working Capital and Reserves $ 45,655,060 $ 90,448,378 179 City of Denton Water Fund Schedule of Revenues and Expenditures-Budget vs Projections(Unaudited) For the Period Ended September 30,2020 PRIOR ANNUAL PRELIMINARY BUDGET VS DESCRIPTION Y-T-D BUDGET ACTUALS ACTUALS Beginning Working Capital and Reserves as of 09/30/19' $ 23,539,348 $ 25,457,474 REVENUES: Water Sales Residential $ 18,035,192 20,508,495 20,375,256 -1% Water Sales Commercial 16,203,789 17,661,792 17,090,211 -3% Water for Resale 1,113,851 1,184,134 1,612,230 36% Other Water 1,387,309 865,090 1,209,078 40% Transfers In 1,490,053 949,888 1,149,991 21% Investment Income 427,212 294,000 302,800 3% Impact Fee Revenue 5,700,000 6,605,000 6,605,000 0% Total Revenues 44,357,406 48,068,399 48,344,566 1% EXPENDITURES: Personal Service 7,654,405 8,902,207 8,139,916 -9% Purchased Power 1,277,220 1,410,789 1,342,855 -5% Purchase of Water 2,059 3,000 1,834 -39% Materials and Supplies 1,396,965 1,510,203 1,472,974 -20% Maintenance and Repairs 1,200,652 1,554,503 1,477,259 -5% Insurance 223,433 232,791 232,788 00/, Miscellaneous 245,728 401,060 185,776 -54% Operations,Services 1,434,569 2,317,980 1,767,452 -24% Capital Outlay 15,105,245 13,686,219 13,838,194 1 0/. Return on Investment 1,255,412 1,404,533 1,359,420 -3% Franchise Fee 1,793,445 1,991,812 1,942,028 -2% Debt Service 12,700,195 12,879,020 12,879,020 0% Transfers Out 3,686,482 4,767,646 4,896,659 3% Total Expenditures 47,975,810 51,061,763 49,536,175 -3°/o Net Income(Loss) $ (3,618,404) (2,993,364) (1,191,609) Ending Working Capital and Reserves $ 20,545,984 $ 24,265,865 1 The Beginning Working Capital balance excludes$13,045,131 of Impact Fee Reserves and$750,000 for Development Plan Line Reserves. 2 Annual adopted budget as amended or modified.Beginning Fund Balance represents the amount which was estimated in the FY 2019-20 budget process. 180 City of Denton Wastewater Fund' Schedule of Revenues and Expenditures-Budget vs Projections(Unaudited) For the Period Ended September 30,2020 PRIOR ANNUAL PRELIMINARY BUDGET VS DESCRIPTION Y-T-D BUDGET ACTUALS ACTUALS Beginning Working Capital and Reserves as of 09/30/19 $ 16,190,748 $ 16,927,079 REVENUES: Residential Fees $ 11,536,543 11,545,026 11,422,482 -1% Commercial Fees 11,807,867 12,784,519 11,730,567 -8% Effluent Irrigation Fees 113,177 60,424 119,237 97% Wholesale Fees 699,724 693,802 758,808 9% Other Wastewater Fees 1,513,552 1,580,878 1,916,430 21% Drainage Fees 4,880,196 4,959,200 5,089,545 3% Transfer In 651,795 587,895 587,895 0% Investment Income 297,875 234,858 218,830 -7% Impact Fee Reserves 2,000,000 4,270,000 4,270,000 0% Total Revenues 33,500,729 36,716,602 36,113,794 -2% EXPENDITURES: Personal Service 7,910,033 9,357,192 8,601,781 -8% Purchased Power 1,064,075 1,221,000 1,030,524 -16% Materials and Supplies 1,003,992 1,327,538 988,031 -26% Maintenance and Repairs 1,071,889 1,770,032 1,090,847 -38% Insurance 232,020 265,743 265,743 0% Miscellaneous 73,183 82,218 50,098 -39% Operations,Services 2,072,895 3,024,514 2,364,829 -22% Capital Outlay 10,963,806 6,810,067 8,041,230 18% Return on Investment 871,548 1,196,502 869,825 -27% Franchise Fee 1,245,069 1,334,082 1,242,607 -7% Debt Service 6,858,723 7,485,506 7,479,386 0% Transfers Out 3,695,404 4,450,481 4,872,533 9% Total Expenditures 37,062,637 38,324,875 36,897,434 -4% Net Income(Loss) $ (3,561,908) (1,608,273) (783,640) Ending Working Capital and Reserves $ 14,582,475 $ 16,143,439 ' Includes Drainage. 2 The Beginning Worldng Capital balance excludes$6,766,815 of Impact Fee Reserves,$1,000,000 for Drainage Reserves, and$540,000 for Development Plan Line Reserves. Reserves of$135,000,and Drainage Reserves of$1,000,000. Annual adopted budget as amended or modified.Beginning Fund Balance represents the amount which was estimated in the FY 2019-20 budget process. 181 City of Denton Drainage Operations Schedule of Revenues and Expenditures-Budget vs Projections(Unaudited) For the Period Ended September 30,2020 PRIOR ANNUAL PRELIMINARY BUDGET VS DESCRIPTION Y-T-D BUDGET ACTUALS ACTUALS REVENUES: Residential Drainage Fees $ 1,882,655 $ 1,897,150 $ 1,949,739 3% Nonresidential Drainage Fees 2,997,541 3,062,050 3,139,806 3% Wastewater Resources - 35,000 - -100% Investment Interest Income - - - 0% General Fund Transfer 316,795 352,895 352,895 0% Total Revenues 5,196,991 5,347,095 5,442,440 2% EXPENDITURES: Personal Service 1,696,084 2,304,775 2,036,843 -12% Materials and Supplies 56,702 80,425 52,585 -35% Maintenance and Repairs 128,623 127,500 113,186 -11% Insurance 35,767 41,459 41,459 0% Miscellaneous 14,342 17,200 6,375 -63% Operations,Services 447,521 677,047 468,067 -31% Capital Outlay 1,874,843 1,144,236 1,625,318 42% Debt Service 477,433 477,893 473,464 -1% Transfer Out 465,676 476,560 625,143 31% Total Expenditures 5,196,991 5,347,095 5,442,440 2% Net Income(Loss) $ - $ - $ - 182 City of Denton Solid Waste Fund Schedule of Revenues and Expenditures-Budget vs Projection(Unaudited) For the Period Ended Sepember 30,2020 PRIOR ANNUAL PRELIMINARY BUDGET VS DESCRIPTION Y-T-D BUDGET ACTUALS ACTUALS Beginning Working Capital and Reserves as of 09/30/191 $ 10,355,478 $ 9,205,597 REVENUES: Refuse Fees-Residential $ 5,797,050 5,797,663 5,082,472 -12% Refuse Fees-Commercial 15,202,835 15,432,175 14,045,123 -90/, Residential Recycling 5,318,817 5,331,694 5,448,328 2% Commercial Recycling 1,409,972 1,705,012 1,288,420 -24% Landfill Gate and Material Sales 6,553,633 5,854,458 9,382,403 60% Recycled Material Sales 67,342 61,000 67,343 10% Asset Sales and Interest Income 161,264 688,486 1,007,520 46% Other Revenue 243,748 520,925 559,851 7% Total Revenues 34,754,661 35,391,413 36,881,460 4% EXPENDITURES: Personal Service 9,828,170 11,104,627 10,443,976 -6% Materials and Supplies 224,971 379,463 182,559 -52% Maintenance and Repairs 238,423 327,192 208,421 -36% Insurance 269,506 257,942 259,650 1% Miscellaneous 77,954 102,120 68,433 -33% Operations,Services 6,060,704 6,999,814 5,676,246 -19% Capital Outlay 1,327,649 3,810,010 4,410,619 16% Debt Service 8,995,454 8,451,027 8,449,966 0% Franchise Fee 1,733,559 1,755,737 1,781,445 1% Transfers for Landfill Closure 1,089,201 609,985 - -100% Admin Transfers Out 3,449,699 4,652,484 4,371,889 -6% Total Expenditures 33,295,290 38,450,401 35,853,204 -7% Net Income(Loss) $ 1,459,371 (3,058,988) 1,028,256 Ending Working Capital and Reserves $ 7,296,490 $ 10,233,853 The Beginning Working Capital Reserve excludes$11,057,545 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 2019- 20 budget process. 183 City of Denton Airport Fund Schedule of Revenues and Expenditures-Budget vs Actuals (Unaudited) For the Period Ended September 30, 2020 PRIOR ANNUAL PRELIMINARY BUDGET VS DESCRIPTION Y-T-D BUDGETI ACTUALS ACTUALS Beginning Working Capital and Reserves as of 09/30/19 $ 2,814,692 $ 2,878,940 OPERATING REVENUES: Airport Ground Leases $ 738,820 768,051 788,994 3% FBO Commissions 209,927 211,552 180,955 -14% Miscellaneous 135,897 135,437 124,354 -8% Total Operating Revenues 1,084,644 1,115,040 1,094,304 -2% OPERATING EXPENDITURES: Personal Service 501,861 518,930 431,399 -17% Materials and Supplies 17,554 44,794 15,436 -66% Maintenance and Repairs 31,657 72,400 27,231 -62% Insurance 43,792 24,376 24,376 0% Miscellaneous - 100 - -100% Operations 226,056 250,565 131,787 -47% Transfers Out-Operating 521,547 383,487 381,355 -1% Total Operating Expenses 1,342,467 1,294,652 1,011,584 -22% Operating(Loss) (257,823) (179,612) 82,720 NON-OPERATING REVENUES: Investment Income 101,244 22,263 79,729 258% Gas Well Royalties 313,325 358,900 192,175 -46% Other Non-Operating Revenue - - 5,049 - Total Non-Operating Revenues 414,569 381,163 276,953 -27% NON-OPERATING EXPENDITURES: Transfers Out-Capital 250,000 250,000 300,000 20% Total Non-Operating Expenses 2.50,000 250,000 300,000 20% Non-Operating Income(Loss) 164,569 131,163 (23,047) Net Income(Loss) $ (93,254) (48,449) 59,673 Ending Working Capital $ 2,766,243 S 2,938,613 1 Annual adopted budget as amended or modified.Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2019-20 budget process. 184 City of Denton Street Improvement Fund Schedule of Expenditures - Budget vs Actuals (Unaudited) For the Period Ended Sept 30, 2020 PRIOR ANNUAL PRELIMINARY BUDGET VS DESCRIPTION Y-T-D BUDGETI ACTUALS ACTUALS Beginning Fund Balance as of 9/30/2019 $ 2,348,270 $ 3,441,732 RESOURCES: Franchise Fees $ 12,717,231 13,087,053 12,974,273 -1% Street Cuts 192,014 371,423 369,549 -1% Investment Income 50,522 10,000 69,958 600% Transfers In 1,034,582 1,184,582 1,323,205 12% Total Resources 13,994,349 14,653,058 14,736,985 1% EXPENDITURES: Personal Service 3,282,814 3,505,267 3,250,039 -7% Materials and Supplies 108,903 87,150 75,507 -13% Maintenance and Repairs 6,776,684 7,358,459 5,781,284 -21% Insurance 72,727 94,312 94,312 0% Miscellaneous 5,062 5,000 3,023 -40% Operations,Services 837,101 710,302 656,012 -8% Transfer Out 1,092,753 3,970,626 4,147,213 4% Total Expenditures 12,176,044 15,731,116 14,007,390 -11% Net Income(Loss) $ 1,818,305 (1,078,058) 729,595 Ending Fund Balance $ 1,270,212 $ 4,171,327 'Annual adopted budget as amended or modified.Beginning Fund Balance represents the amount which was estimated in the FY 2019-2f 185 City of Denton Grants Schedule of Expenditures-Budget vs Projection(Unaudited) For the Period Ended September 30,2020 EXPENDITURES ANNUAL PRELIMINIARY BUDGET VS GRANT DESCRIPTION AS OF 9/30/20192 BUDGET ACTUALS ACTUALS FY 2019-20 Budget US Dept of HUD- Community Development Block Grant(CDBG) $ 4,274,427 $ 2,314,276 $ 1,032,271 -55% US Dept of HUD- HOME Investment Partnership Program 3,725,784 1,458,845 589,150 -60% Community Development' 8,000,211 3,773,121 1,621,421 -57% TxDot STEP Comprehensive Grant - 97,315 50,422 -48% Victim Assistance Coordinator Grant - 89,040 82,011 -8% 2019 UASI-Specialized Regional Response Teams Sustainment - 144,137 139,908 -3% Emergency Management Performance Grant - 40,977 37,677 -8% Staffing for Adequate Fire&Emergency Response(SAFER)Grant 736,068 260,913 252,415 -3% Public Safety 736,068 632,382 562,433 -11% Airport Maintenance(RAMP)Grant - 50,000 50,000 0% TxDot-RTR-Mayhill Rd-IH35 E to US 380 39,389,775 9,624,580 7,146,583 -26% TxDot-RTR-Bonnie Brae Rd-IH35 E to US 377 17,236,196 29,630,282 5,548,492 -81% TxDot-IH35E at Loop 288/Lillian Miller Pkwy - 53,865 - -100% TxDot-RTR-McKinney(Formerly FM426) 3,834,606 16,410,716 7,992,872 -51% TxDot-RTR-Hickory Creek FM2181-FM2499 224,556 2,204,917 589,414 -73% TxDot-RTR-North Texas Boulevard Roundabout 67,518 1,946,267 26,541 -99% TxDot-RTR-ITS COMM Trunk Line 1,379,761 375,417 191,839 -49% Bicycle&Pedestrian Projects Grant - 1,500,000 - -1000/, Transportation' 62,132,412 61,796,044 21,545,741 -65% Interlibrary Loan Program(ILL) - 25,000 18,648 -25% TexTreasures Grant - 24,820 24,820 TIFMAS Training Tuition Grant - 9,000 - -100% Miscellaneous New Grants - 300,000 - -100% Other - 358,820 43,468 -88% Total FY 2019-20 Budget 70,868,691 66,560,367 23,773,064 -64% 186 City of Denton Grants Schedule of Expenditures-Budget vs Projection(Unaudited) For the Period Ended September 30,2020 EXPENDITURES ANNUAL PRELIMINIARY BUDGET VS GRANT DESCRIPTION AS OF 9/30/20192 BUDGET ACTUALS ACTUALS New Awards Federal Equitable Sharing - 243,254 243,254 0% Chapter 59 Asset Forfeitures - 26,105 26,105 0% U.S.Marshals Violent Offenders Task Force - 78,223 78,223 0% Organized Crime Drug Enforcement Task Force - 18,148 18,148 0% USSS'North Texas Financial Crimes Task Force - 5,000 5,000 00/, PD-Law Enforcement Officer Standards& Education - 9,600 9,600 0% Sexual Assault Nurse Examiners(SANE) Reimbursement - 1,779 1,779 0% National Sexual Assault Kit Initiative Grant - 27,417 27,417 00/, North Texas Organized Crime Task Force (NTOCTF) - 8,857 8,857 0% Ambulance Services-Uncompensated Care Cost - 923,869 923,869 0% Urban Search&Rescue Response System(TEEX) - 323,143 323,143 0% Texas Intrastate Fire Mutual Aid System- Emergency Response 38,156 38,156 0% Texas Department of Public Safety's Texas Division of Emergency Management(TDEM)- Hurricane Laura - 16,725 16,725 0% Coronavirus Emergency Supplemental Funding Program 82,398 1,080 -99% Public Safety - 1,802,674 1,721,356 -5% TxDot-IH35 E FR&Brinker Signal - 204,937 204,937 0% Improvement - 3,000,000 3,000,000 0% Airport West Side Runway Grant-Porter Land Survey - 1,958 1,958 0% Transportation - 3,206,895 3,206,895 0% Coronavirus Relief Fund(CRF)from Denton County - 7,619,755 4,802,113 -37% Coronavirus Relief Fund(CRF) - 7,619,755 4,802,113 -37% Collaborative Summer Library Program Scholarship Award - 118 118 0% Alternative Fueling Facilities Program - 6,450 6,450 0% Texas Department of Public Safety's Texas Division of Emergency Management(TDEM)- COVID 19-Public Assistance Grant 47,422 47,422 0% Texas Workforce Commission-50%Chargeback Credit 152,003 152,003 0% Humanities Texas Relief Grant 2,860 92 -97% Others - 208,853 206,085 -1% Total New Awards - 12,838,177 9,936,449 -23% TOTALS $ 70,868,691 $ 79,398,544 $ 33,709,513 -58% 1 This grant amount will be spent over several years and the fiscal year 2019-20 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. 187 Section 3 City of Denton Quarterly Financial Report September 2020 REVENUE & ECONOMIC ANALYSIS 188 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. 189 Hilltop5ecurities Asset Management. National Economic Trends Period Ending September 30, 2020 Gross Domestic Product(GDP) Grass Domestic Product The quarter-over-quarter seasonally- Quarterly Annualized Percentage Change adjusted, annualized GDP increase was an eye-popping +33.1%, slightly over the 35.0 33.1 Bloomberg median forecast of+32%,and a 311.0 sharp rebound from the historical -31.4% 25.0 20.0 second quarter plunge. The third quarter 110 gain was the largest in the post-WWII era. 10.0 The previous post-war record had been 00 39 39 27 � .. 5 � +16.7% in 1950. Personal consumption, the largest component of economic growth, -s.o t0.a ylstaocal Aq.3.2% -5.0 rose +40.7% in the third quarter following -15.0 a-33.2%drop in Q2. Residential spending -20.0 -- (housing) surged +59.3% after a -35.6% -35.0 drop. Gross private investment climbed -30.0 +83% after falling -46.6%. Virtually all categories followed a similar plunge/rocket o pattern. However, economic growth remains -3.5% below where it was a year Source US Cer sus Bureau Woomberg ago. Employment The headline unemployment rate fell from Unemployment Rate 8.4%to 7.9%in September,but much of this 16,0 14.7 decline results from a drop in the labor force 14,0 133 participation rate, which unexpectedly retreated from 61.7% to 61.2%. According to the Bureau of Labor Statistics (BLS), the z.o 11 i ILI number of Americans not in the labor force 100 but currently wanting a job, was little 7 9 changed in September at 7.3 million. 8.0 8.4 69 Because these people are not actively looking for work, they are not counted 6.0 among the unemployed. In total, 19.4 3.7 3.7 3.5 3.6 3.5 3s 3.6 3.5 9 million Americans reported being unable to 40 work because their employer closed or lost 20 business during the pandemic. On the g o 0 o v 3 4 3 g o positive side, jobs are returning (albeit at a 7 C d N ] 10 o 0 0 o N o o 0 o slower pace)and the headline unemployment 0 rate is already well below even the more Source:Bureau of Labor Statistics/Bloomberg optimistic forecasts. 190 Inflation Although there's a lot of noise in the Inflation Indicators(Year-Over-Year Percent Change) numbers, year-over-year core CPI has 3.5 ............• CPI-Allltems -CPI-Core tPCE-Core 3.5 climbed from a +1.2% pace in May to +1.7% in both August and September, while year-over-year core PPI has climbed z.s ......... ......................................................................................................... ................................................................... z.s from +0.1% to +1.2%. Neither of these levels are particularly concerning, but the 2.0 .. .................. ... ... ... ..... .................................................... 2.0 quick turnaround suggests to some people 1.5 1.5 that prices are suddenly an issue. What's . ... .... .... .... ... .... .... .... ... .... .... ... ... ... ... ... ... ... ..................... ...... happening is that there wasn't much 1.0 .. ... .... .... .... .... ... .... .... ... ... ... .... ... ... ... ..... ........... .... ... .... .. 1.0 spending going on in the spring, so prices fell and demand built-up. Later, when 0.5 ... ... .... 0.5 everyone was flush with government 0.0 ■ 0.0 support and were able to get out and about, demand exceeded supply and prices rose. -0.5 ....................................................................`....`............................................................................`............................... -0.5 This isn't a long-term trend but it does ' m p m` m .o c c c m O Z O m` m 'R c c` c � O < o a _ w 9 _ = N manifest itself in higher inflation readings. W 00 00 kDtD �j) W � � � � ID 'D ID oo Early indications suggest October prices Source:Bureau of Labor Statistics!Bureau of Economic Analysis/Bloomberg have retreated. Retail Sales Retail Sales%Change Month-Over-Month The retail sales advanced by a better-than- �Retail Sales(M-G-M) —Control Group(M-O-M) expected +1.9% in September, the fastest pace in three months. The category 21.00 breakdown suggests there were significant ISM dollars spent on back-to-school clothes and 12.00 ............................................_..................,...._...,..,... ..__.,...,............- supplies. Clothing and accessory stores 9.00 ..............................................._..........................................................-............................................................. ............................. (+11%), department stores (+9.7%) and 6.00 .................._..........._............_........_............,_.,.---................................................................................. ..................._... sporting goods and bookstores (+5.7%) all 3.00 ..._..............._............_ .......__...... ..................._...................................._............................ ............ .............. posted outsized gains. Almost all major 0.00 categories showed increases last month, -3.00 ,..__.........,_...... __.....................__...,..,.....................,.,............._....I.......---,......... ....................... with auto dealers (+4.0%) and restaurant -6.00 ,.._.......,.._.......,..._,.,.,.,...__..,.,.,....._....................__...,...,..__...,.,._..........,.._....,.,......_............ .............................__.... and bars (+2.1%) also making notable -9.00 ,.__.....,_.._............_,.,.,.,...__..,.,.,....._...,.,.__........................................,.,.,.._....,.,...,._..,.,...,.__.,.,., ....... contributions. On a year-over-year basis, -12.00 ,.._...,.,_.._.........................................................................................,...,.._....,.,...,.__...,.,........_,.,.. ............,.,.,.......,.,.,..__... overall retail sales are now up a remarkable .15.00 ...r.........._....................................._........................................,............._............_..............,.,.,... --. +7.1%,although some sectors have thrived 18.°0 ......... _.... .._. . .----- - ..._.. ._... . _.-__._.... . ._. -...... .... o fl o 6 v g n o 0 0 m N g (online sales +27%, building materials 'D—W W � � � � o o a o o o o o +23.4%, auto dealers +14.4%), while Scums US canmz ourdu,nlmnnam others continue to struggle (eating and drinking establishments -13.7%, clothing stores -12.0%). It should be noted that total outlays, which include services in addition to goods, are still below pre-pandemic levels. 191 Denton County and Texas Home Sales Texas home sales rose+29.6%in the third quarter, and+18.1%over the same three-month period a year ago. The average Texas home price in September $325.6k, down slightly from the record high set in July. The available inventory was just 2.3 months, easily the lowest level since the data series began in 1990. In Denton County, unit home sales rose +29.4% during the third quarter and+21.4% over the same three-month period a year ago. The average home price in September was $388.5k, after reaching a record high of$391k in August. On a year-over-year basis, home prices were up+10.3% in Denton County. Home listings totaled 2,315 in September,a-41.7%decline over last year. The available inventory was just 1.7 months,compared to 3.1 months a year ago,and matching the lowest month's supply in a decade of history. Texas/Denton Cty Home Sales (NSA) 40.0 2200 37.5 35.0 32.5 moo 30.0 r. 27.5 d 25.0 \ / J 1200 0 22.5 20.0 17.5 15.0 700 °c m a 12.5 10.0 —TX Hume Sales 7.5 —• Denton Cty Home Sales 200 5.0 —Linear(TX Hone Sales) Linear(Denton Cty Home Sales) 2.5 0.0 -300 l7 coCID 0 K toCID 0CID K W 0 K WCID 0CID K 0 CID CD CDCD :� cn cn rn rn 8 8 :74 w eo a oo co m 8 8 o No 0 Source:Real Estate Center at Texas AW—MLS Housing Activity The paper was prepared by Hilltop Securities Asset Management,is intended for educational and informational purposes only and does not constitute legal or investment advice,nor is it an offer or a solicitation of an offer to buy or sell any investment or other specific product.Information provided in this paper was obtained from sources that are believed to be reliable;however,it is not guaranteed to be correct,complete,or current,and is not intended to imply or establish standards of care applicable to any attorney or advisor in any particular circumstances.The statements within constitute the views of Hilltop Securities Asset Management as of the date of the report and may differ from the views of other divisions/departments of Hilltop Securities.In addition,the views are subject to change without notice.This paper represents historical information only and is not an indication of future performance. 192 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 13.9% increase from the prior quarter at the national level and a 14.4% increase at the state level. Staff has rated this outlook as Cautious. Fuel Prices Sales Tax Texas Fuel Prices US Fuel Prices $3.00 $12 $2.50 $10 $2.00 $8 i C c $1.50 $6 o $1.00 $4 $0.50 $2 $0.00 $0 4Q'16 2Q'17 4Q'17 2Q'18 4Q'18 2Q'19 4Q'19 2Q'20 4Q'20 Source: U.S. Department of Energy 193 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 4th Quarter of 2019-20 shows an increase of 3.0 for a 1.2% increase over the prior quarter and an increase of 1.7 for a 0.67% increase over the 4th Quarter of 2018-19. Staff has rated this indicator as Negative. Municipal Cost Index 256.00 255.00 254.00 253.00 252.00 251.00 250.00 249.00 248.00 247.00 4Q'18 1Q119 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 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. 194 Hotel Occupancy Tax Analysis I Outlook Positive Description: Tax imposed on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays for the use of a room that is in a hotel. A hotel includes: any building in which the public may obtain sleeping accommodations; motels; a tourist home, house or court; lodging house; inn; rooming house; 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 4th Quarter of FY 2020 was 44.7% less than budget and 70.5% less than prior year's actual. This quarter illustrated a slight increase in hotel activity since the initial COVID-19 Pandemic impact last quarter. Staff has rated the outlook for this economic indicator as Positive. 4th Quarter FY 2019-20 Actual Y-T-D Occupancy Tax Revenue: $ 477,013 $ 2,142,483 FY 2019-20 Budget $ 862,973 $ 3,375,164 Over(Under)Budget $ (385,960) $ (1,232,681) FISCAL YEAR FORECAST Hotel Occupancy Tax Budget: $ 3,375,164 End of Year Projection: $ 2,072,776 End of Year Actual: $ 2,142,483 Variance-Actual to Budget $ (1,232,681) Variance-Actual to Projection $ 69,707 Hotel Occupancy Tax Collections $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr ■FY 2016-17 ■FY 2017-18 ■FY 2018-19 —FY 2019-20 195 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 4th Quarter of FY 2020 compared to revenues from the prior year 4th Quarter shows a 3.24% Increase, and compared to the budget shows a 1.14% increase. Staff has rated this indicator as Positive. 4th Quarter FY 2019-20 Actual Y-T-D Municipal Operations $ 622,887 $ 1,939,605 General Retail &Others 10,276,533 38,909,675 Comptroller Fees (201,640) (763,358) Amount Retained (197,606) (748,090) Total Revenue $ 10,500,174 $ 39,337,832 Expenses: Economic Incentives* Economic Incentives' L$ 609,&_ Net Total 9,890,458 36,561,242 W019-20 Budget 9,586,330 36,270,852 Over(Under) Budget $ 304,128 $ 290,390 Sales Tax Budget: $ 39,281,942 Year End Projection: 39,337,832 Year End Actual: 39,337,832 Variance to Original Budget: $ 55,890 Variance to Year End Projection: $ - Economic Development Expenditure Budget: $ 3,011,090 Year End Projection: 2,776,590 Year End Actual: 2,776,590 Variance to Original Budget: $ 234,500 Variance to Year End Projection: $ - Gross Sales Tax Collections (Millions) $12.0 — $10.0 $8.0 - $6.0 - I $4.0 - -- $2.0 $0.0 - -- - - 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr u FY 2015-16 Actual ■FY 2016-17 Actual u FY 2017-18 Actual u FY 2018-19 Actual o FY 2019-20 Actual 196 Certificates of Occupancy I Outlook I Cautious Description: Certificates of Occupancy (CO) are permits issued in compliance with the 2009 International Building Code (IBC) and applicable City ordinances. The IBC states, "that no building shall be used or occupied, and no change in the existing occupancy classification of a building or structure or portion thereof shall be made, until the building official has issued a certificate of occupancy." Certificates of Occupancy ensure that applicable building, fire and consumer health codes are met. Analysis: Certificates of Occupancy are an economic indicator that provides a framework for the overall condition of the local economy. Certificates of Occupancy decreased 40.19% from the prior quarter and decreased 24.37% from the 4th Quarter of 2019. Staff has rated the outlook for this revenue indicator as Cautious. Certificates of Occupancy 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q '15 '16 '16 '16 '16 '17 '17 '17 '17 '18 '18 '18 '18 '19 '19 '19 '19 '20 '20 120 120 Source: City of Denton's Development Services Department. 197 Residential Permits I Outlook I Cautious Description: Residential Permits are issued in compliance with the 2009 International Residential Code (IRC) and applicable City ordinances. The data presented in this analysis only include new permits issued and not remodels/alterations. Analysis: Residential Permits are an economic indicator that provides a framework for the overall condition of the local economy. In particular, residential permits have a direct correlation with building inspection fees and appraised values. Residential permits decreased 2.33%from the prior quarter and decreased 29.29%from the 4th Quarter of 2019. Staff has rated the outlook for this revenue indicator as Cautious. Residential Permits 350.0 300.0 250.0 200.0 r 150.0 100.0 50.0 0.0 - 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q '15 '16 '16 '16 '16 '17 '17 '17 '17 '18 '18 '18 '18 '19 '19 '19 '19 '20 '20 '20 '20 Source: City of Denton's Development Services Department. 198 Texas Leading Indicators Index I Outlook I Cautious 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 a decrease in the state's rate of growth. The index increased 7.27% from the prior quarter and decreased 13.08%from the 4th Quarter of 2018-19. Staff has rated this indicator as Cautious. Texas Leading Indicators Index 140.0 135.0 130.0 125.0 120.0 115.0 110.0 105.0 100.0 4Q'13 2Q'14 4Q'14 2Q'15 4Q'15 2Q'16 4Q'16 2Q'17 4Q'17 2Q'18 4Q'18 2Q'19 4Q119 2Q120 4Q120 Source: Federal Reserve Bank of Dallas 199 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 6.6%for the 4th Quarter. As a result of the downward unemployment trend, staff has rated the outlook indicator as Positive. Unemployment Rate Index 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 Ji 4Q'14 2Q'15 4Q'15 2Q'16 4Q'16 2Q'17 4Q'17 2Q'18 4Q'18 2Q'19 4Q'19 2Q120 4Q120 f�Dallas-Plano-Irving MD Denton Texas U6 Unemployment United States Source: Federal Reserve Bank of Dallas, U.S. Bureau of Labor Statistics, and Texas Workforce Commission Note: U6 unemployment includes marginally attached workers who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past. Discouraged workers, a subset of the marginally attached, have given a job-market related reason for not looking currently for a job. Persons employed part-time for economic reasons are those who want and are available for full-time work but have had to settle for a part-time schedule. 200 Section 4 City of Denton Quarterly Financial Report September 2020 INVESTMENT REPORT 201 DocuSign Envelope ID:5BDF826E-B152-4EB3-8BF3-5DOB78A76DAF CITY OF DENTON : QUARTERLY INVESTMENT REPORTry 4��er 30,2020 Page f INVESTMENT POOL Policy Par Market Book Unrealized Max. Benchmark :Portfolio: Value Value Value Gain/(Loss) WAM WAM YTM Yield` ---------------------------------------------------------------------- .............. .................... ....... Investment Pool $ 606,600,773 $ 611,503,081 $ 608,013,138 $ 3,489,943 165 550 0.94% 0.13% *Twelve month moving average of a one year U.S.T-bill yield %of Total Par Market Book Unrealized Portfolio Policy Securities By Investment Type: Value Value Value Gaini(Loss)' WAM YTM (Book Value) Max. - -------------- g�7 162 24 197 T.-jF/ H.-iFl % ------------79,ligi,:U.S.Treasuries TiU,:E6, ::U.S.Federal Agencies 191,525,000 194,616,782 192,292,183 2,324,599 352 1.48% 31.63% 100.00% :Municipal Bonds 14,000,000 14,414,520 14,411,758 2,762 275 0.22% 2.37% 15.00% Certificates of Deposit 0 0 0 - 0 0.00% 0.00% 35.00% :Commercial Paper 45,000,000 44,975,115 44,975,457 (342) 73 0.32% 7.40% 15.00% :Local Government Investment Pools 215,372,946 215,372,946 215,372,946 - 1 0.12% 35.42% 50.00% :Demand Deposits 11,702,827 11,702,827 11,702,827 - 1 0.09% 1.92% - Total Portfolio I I $ 606,600,773 $ 611,503,081 $ 608,013,138 $ 3,489,943 165 0.94% 100.00% I I I 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:: I :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: I I 'realized. I I I I I I I I I I I Current 3 Months Ago I 1 3 Month 1 Year Ago 1 Year Ago I !investment Pool Comparisons: 1 09/30/2020 06/30/2020 Difference 09130/2019 Difference I Far Value I$ 606,600,773 $ 523,113,175 $ 83,487,598 $ 596,080,671 $ 10,520,102 1 Parket Value $ 611,503,081 $ 529,289,987 $ 82,213,094 $ 597,577,745 $ 13,925,336 1 I !Book Value $ 608,013,138 $ 524,669,650 $ 83,343,488 $ 595,794,891 $ 12,218,247 1 I I Unrealized Gain(Loss) 3,489,943 $ 4,620,337 $ (1,130,394) $ 1,782,854 $ 1,707,089 1 I I !Weighted Average Maturity 165 245 (80) 282 (117) 1 I I !Yield to Maturity 0.94% 1.31% -0.38% 2.08% -1.14% 1 I I I I I I I I I I !Portfolio Composition: I I I !U.S.Treasuries 21.26% 28.47% -7.21% 26.83% -5.58% 1 I I !U.S.Federal Agencies 31.63% 42.38% -10.76% 49.05% -17.42% 1 I I !Municipal Bonds 2.37% 0.80% 1.58% 0.67% 1.70% 1 I I !Certificates of Deposit 0.00% 0.00% 0.00% 0.84% -0.84% 1 I I !!Commercial Paper 1 7.40% 8.56% -1.17% 6.28% 1.12% 1 I I I Local Government Investment Pools 1 35.42% 19.22% 16.20% 15.88% 19.54% 1 Demand Deposits 1 1.92% 0.57%1 1.36% 0.45%1 1.47% 1 !Bank Collateral Review**: I Institution Collateral Type Market Value Collected Balance Pledge Required Collateral Ratio II--------------------------------------------------------------------------------------------------------------------------------------------------------------------------- !Wells Fargo Demand Deposits !BNY Mellon U.S.Agency MBS $ 25,524,613 $ 11,702,828 >102% 218.11% I I not include FDIC insurance !Depository Ledger Balance Review: Institution Account Type Beginning Bal. Deposits Withdrawals Ending Bal. I --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- I Wells Fargo Bank Checking $ 2,241,468 $ 97,277,947 $ 95,436,723 $ 4,082,692 I I Wells Fargo Bank Checking $ 7,619,779 $ 357 $ - $ 7,620,136 1.------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------I :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: I !Public Funds Investment Act(Texas Government Code,Chapter 2256.023). 1 I----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- DocuSigned by: DwuSilgned by* 32052461... Appl� 194EA41`9 Chief Financial Officer Director of Finance DocuSigned by: DoCuSigned by: BFA579BEB6EC4AA.. -1361 EAA 77rD11011U.;714E I Assistant Director of Finance Treasury Manager Docu Signed by: D29E5DC"F Treasury Analyst I I I ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 202 DocuSign Envelope ID:5BDF826E-B152-4EB3-8BF3-5DOB78A76DAF CITY OF • QUARTERLY INVESTMENT REPORT 4th Fiscal Quarter 2020-September 30,2020 Page 2 INVESTMENT POOL Current 3 Months Ago 3 Month 1 Year Ago 1 Year 09/30/2020 06/30/2020 Difference 09/30/2019 Difference ----------------------------------------------------------------------------------------------- War Value-U.S.Treasuries $ 129,000,000 $ 149,000,000 $ (20,000,000) $ 160,000,000 $ (31,000,000) :Par Value-U.S.Federal Agencies 191,525,000 221,281,000 (29,756,000) 292,281,000 (100,756,000) :Par Value-Municipal Bonds 14,000,000 4,000,000 10,000,000 4,000,000 10,000,000 :Certificates of Deposit 0 - 5,000,000 (5,000,000) :Par Value-Commercial Paper 45,000,000 45,000,000 - 37,500,000 7,500,000 :Local Government Investment Pools 215,372,946 100,855,390 114,517,556 94,609,584 120,763,362 :Demand Deposits 11,702,827 2,976,785 8,726,042 2,690,087 9,012,740 :Total Par Value $ 606,600,773 $ 523,113,175 $ 83,487,598 $ 596,080,671 $ 10,520,102 l Market Value-U.S.Treasuries I $ 130,420,891 $ 151,048,888 $ (20,627,997) $ 160,421,080 $ (30,000,189) Market Value-U.S.Federal Agencies 1 194,616,782 225,243,610 (30,626,828) 293,474,372 (98,857,590) Market Value-Municipal Bonds 1 14,414,520 4,171,929 10,242,591 4,000,000 10,414,520 Certificates of Deposit 1 0 - 5,000,000 (5,000,000) Market Value-Commercial Paper 1 44,975,115 44,993,385 (18,270) 37,382,622 7,592,493 Local Government Investment Pools 1 215,372,946 100,855,390 114,517,556 94,609,584 120,763,362 Demand Deposits 1 11,702,827 2,976,785 8,726,042 2,690,087 9,012,740 :Total Market Value I $ 611,503,081 $ 529,289,987 $ 82,213,094 $ 597,577,745 $ 13,925,336 Book Value-U.S.Treasuries I $ 129,257,967 $ 149,366,856 $ (20,108,889) $ 159,877,995 $ (30,620,027.85) :Book Value-U.S.Federal Agencies 1 192,292,183 222,362,573 (30,070,390) 292,230,562 (99,938,379) :Book Value-Municipal Bonds 1 14,411,758 4,172,413 10,239,345 4,000,000 10,411,758 :Certificates of Deposit 1 0 - 5,000,000 (5,000,000) :Book Value-Commercial Paper 1 44,975,457 44,935,633 39,824 37,386,663 7,588,794 :Local Government Investment Pools 1 215,372,946 100,855,390 114,517,556 94,609,584 120,763,362 :Demand Deposits 1 11,702,827 2,976,785 8,726,042 2,690,087 9,012,740 :Total Book Value I $ 608,013,138 $ 524,669,650 $ 83,343,488 $ 595,794,891 $ 12,218,247 Accrued Interest I $ 1,650,913 $ 2,283,427 $ (632,514) $ 1,925,422 $ (274,509) Cash Value- I $ 613,153,994 $ 531,573,414 $ 81,580,579 $ 599,503,167 $ 13,650,827 :(Total Market Value+Accrued Interest) Unrealized Gain/(Loss) I $ 3,489,943 $ 4,620,337 $ (1,130,394) $ 1,782,854 $ 1,707,089 !Change in Fair Value for the Quarter I $ (1,463,893) $ 889,543 $ (2,353,437) $ 671,478 $ (2,135,371) (GASB 31) Strategy Statement: lThe 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. --------------------------------------------------------------------------------------------------------------------------- 203 DocuSign Envelope ID:5BDF826E-B152-4EB3-8BF3-5DOB78A76DAF CITY OF • QUARTERLY INVESTMENT REPORT INVESTMENT POOL (Based on Book Value) Current 3 Months Ago 1 Year Ago Summary By Security Type: 09/30/2020 06/30/2020 09/30/2019 ------------------------------- ' :U.S.Treasuries-Coupon $ 129,257,967 $ 149,366,856 $ 159,877,995 U.S.Federal Agencies-Amort - - - ;U.S.Federal Agencies-Coupon 192,292,183 212,606,573 276,474,562 ;U.S.Federal Agencies-Callable - 9,756,000 15,756,000 I Municipal Bonds-Coupon 14,411,758 4,172,413 4,000,000 :Certificates of Deposit-CDARS - - - :Certificates of Deposit-SLOC - - 5,000,000 Commercial Paper-Discount 44,975,457 44,935,633 37,386,663 :Local Government Investment Pools 215,372,946 100,855,390 94,609,584 :Demand Deposits 11,702,827 2,976,785 2,690,087 Total Book Value $ 608,013,138 $ 524,669,650 $ 595,794,891 Current 09/30/2020 ■ U.S.Federal Agencies- Coupon ■ 31.63% U.S.Federal Agencies- Callable 0.00% ■ U.S.Treasuries-Coupon 21.26% ■ Commercial Paper-Discourl' 7.40% ■ Demand Deposits 1.92% ■ Local Government Investment Pools 35.42% ■ Municipal Bonds-Coupon 2.37% ----------------------------- ;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 R SEC registered government money market mutual funds(weighted average maturity of less than 60 days). ------------------------------------------------------------------------------------------------------------------------------------------------------------------- Current 3 Months Ago 1 Year Ago :Summary By Security Type: 09/30/2020 06/30/2020 09/30/2019 ------------------------------- :U.S.Treasuries-Coupon 21.26% 28.47% 26.83% U.S.Federal Agencies-Amort - - - U.S.Federal Agencies-Coupon 31.63% 40.52% 46.40% W.S.Federal Agencies-Callable - 1.86% 2.65% Municipal Bonds-Coupon 2.37% 0.80% 0.67% Certificates of Deposit-CDARS - - - :Certifcates of Deposit-SLOC - - 0.84% Commercial Paper-Discount 7.40% 8.56% 6.28% Local Government Investment Pools 35.42% 19.22% 15.88% Demand Deposits 1.92% 0.57% 0.45% I Total 100.00% 100.00% 100.00% 204 DocuSign Envelope ID:5BDF826E-B152-4EB3-8BF3-5D0B78A76DAF CITY OF DENT. QUARTERLY INVESTMENTPOOL (Based on Book Value) Current 3 Months Ago 1 Year Ago ;Summary By Issuer: 09/30/2020 06130/2020 09/30/2019 BAYLOR SCOTT 9,997,289 9,998,500 - DALLAS,TX W TR&SW R REV BOB - - 4,000,000 FFCB 87,544,990 87,565,946 68,582,551 FHLB 59,401,803 79,551,502 142,993,541 !FHLMC 15,056,658 19,998,010 45,854,964 !FNMA 1 30,288,732 35,247,115 34,799,506 ;INDEPENDENT BANK CDs I I - - 5,000,000 iJP MORGAN SECURITIES LLC 1 - 9,966,011 4,966,447 I I - - 9,968,250 ;NESTLE FINANCE INTL LTD 1 4,994,906 NORTHWESTERN UNIVERSITY - - 2,488,863 iPLANO ISD-BLDG 1 4,070,903 4,172,413 - iRBC I I 1 4,992,150 4,972,069 - i STATE OFCALIFORNIA 5,000,000 5,000,000 5,000,000 STATE OF TEXAS 10,340,855 - - ITEXPOOL 25,000,000 25,000,000 25,054,194 TEXSTAR 190,372,946 75,855,390 69,555,390 TOYOTA MOTOR CREDIT CORP 14,986,018 4,999,033 4,968,197 U.S.TREASURY 129,257,967 149,366,856 159,877,995 UNIVERSITY OF NORTH CAROLINA 10,000,000 10,000,000 5,000,000 WELLS FARGO DEMAND DEPOSITS 11,702,827 2,976,785 2,690,087 Total Book Value $ 608,013,138 $ 524,669,650 $ 595,794,891 Current 09/30/2020 ■BAYLOR SCOTT 2 47% 21.26% ■FFCB •FHLB 1.65% ■FHLMC 1.92% 1.64% ■FNMA 31.31% ■PLANO ISD-BLDG ■RBC ■STATE OF CALIFORNIA ■STATE OF TEXAS 14.40% ■TEXPOOL ■TEXSTAR 4 •TOYOTA MOTOR CREDIT CORP ■U.S.TREASURY •UNIVERSITY OF NORTH CAROLINA ■WELLS FARGO DEMAND DEPOSITS 4.11% 9.77% 1.70% 2.48% 0.82% 0.82% 0.67% 4.98% Objective: It is the policy of the City to diversify its investment portfolio by restricting investments in a single issuer/institution to no more than 35 percent of the portfolios total book value and ,to those offering repurchase agreements,collateralized CDs(including standby letters of credit),and local or state of Texas municipal securities to no greater than 15 percent. :The purpose of this requirement is to limit market and credit risk.Commercial paper issuers are further restricted by a 5 percent total portfolio limitation.There are no issuer ;limitations on U.S.Treasuries or FDIC insured products except as they Pertain to the overall 35%certificates of deposit and 15%savings deposit restrictions.Some investment ;types may be further limited. -------------------------------------------------------------------------------------------------------------------------------------------------------------- Current 3 Months Ago 1 Year Ago Summary By Issuer. 09/30/2020 O6/30/2020 08/30/2018 .----------1.64-------------------------------------------------------------------------------------------------------------------------- BAVLOR SCOTT 1.64% 1.91% - DALLAS,TX W TR&SW R REV BOB - - 0.67% FFCB 14.40% 16.69% 11.51% FHLB 9.77% 15.16% 24.00% FHLMC 2.48% 3.81% 7.70% FNMA 4.98% 6.72% 5.84% INDEPENDENT BANK CDs - - 0.84 JP MORGAN SECURITIES LLC 0.67% 1.90% 0.83% KAISER 1.67% NESTLE FINANCE INTL LTD - - 0.84 NORTHWESTERN UNIVERSITY - - 0.42% PLANO ISD-BLDG 0.82% 0.80% - RBC 0.82% 0.95% - STATE OF CALIFORNIA 1.70% 0.95% 0.84% STATE OF TEXAS TEXPOOL 4.11% 4.76% 4.22% TEXSTAR 31.31% 14.46% 11.67% TOYOTA MOTOR CREDIT CORP 2.47% 0.95% 0.83% U.S.TREASURY 21.26% 28.47% 26.83% UNIVERSITY OF NORTH CAROLINA 1.65% 1.90% 0.84% WELLS FARGO DEMAND DEPOSITS 1.92% 0.57% 0.45% Total 100.00% 100.00% 100.00% `Formerly,ViewPoinf Bank 205 DocuSign Envelope ID:5BDF826E-B152-4EB3-8BF3-5DOB78A76DAF CITY OF • • QUARTERLY INVESTMENT REPORT INVESTMENT POOL (Based on Par Value) Current 3 Months Ago 1 Year Ago (Maturity Time Frame: I 09/30/2020 06/30/2020 09/30/2019 _ I :00-03 Months $ 287,075,773 $ 193,588,175 $ 149,799,671 :03-06 Months 112,945,000 35,000,000 118,000,000 :06-12 Months 110,080,000 143,025,000 136,756,000 :12-24 Months 86,500,000 131,500,000 164,025,000 :24 Months&Over 10,000,000 20,000,000 27,500,000 :Total Par Value $ 606,600,773 $ 523,113,175 $ 596,080,671 $650,000,000 $600,000,000 $550,000,000 $500,000,000 $450,000,000 $400,000,000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 Current 3 Months Ago 1 Year Ago ■00-06 Months ■06-12 Months ■12-24 Months 024 Months&Over ;Objective: ;The risk of market price volatility is minimized through maturity diversification. Investment maturities are staggered to provide cash flows based on: ;the anticipated needs of the City.Liquidity is achieved by matching investment maturities with forecasted cash disbursements and by investing in; ;securities with active secondary markets. Short-term local government investment pools and government money market mutual funds help to: !provide daily liquidity and may be utilized as a competitive alternative to other fixed income investments. Ih-------------------------------------------------------------------------------------------------------------------------------------------------------� Current 3 Months Ago 1 Year Ago ;Maturity Time Frame: 09/30/2020 06/30/2020 09/30/2019 I I 00-03 Months 47.21% 37.01% 25.13% 03-06 Months 18.60% 6.69% 19.80 ;06-12 Months 18.21% 27.34% 22.94% :12-24 Months 14.33% 25.14% 27.52 :24 Months&Over 1.65% 3.82% 4.61% Total 100.00% 100.00% 100.00% 206 DocuSign Envelope ID:5BDF826E-B152-4EB3-8BF3-5DOB78A76DAF CITY OF DENT. QUARTERLY ECONOMIC SUMMARY Interest Rate History ;Source: U.S.Federal Reserve Statistical : --------------_________________________________-_______________________________________________-_______________________________________________t :Release(H.15) Fiscal Year 2014.2015 Fiscal Year 2015.2016 Fiscal Year 2016.2017 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 ;Market Sector: Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Fed Funds(effective) 0.12% 0.11% 0.13% 0.14%: 0.24% 0.36% 0.38% 0.40%: 0.54% 0.79% 1.04% 1.15%: :3-Month U.S.T-Bill 0.03% 0.03% 0.02% 0.02%: 0.23% 0.30% 0.27% 0.29%: 0.51% 0.75% 1.00% 1.05%: :2-Year U.S.T-Note 0.64% 0.64% 0.69% 0.71: 0.98% 0.88% 0.73% 0.77: 1.20% 1.31% 1.34% 1.38%: :Portfolio Benchmark* 0.12% 0.15% 0.18% 0.24%: 0.32% 0.41% 0.49% 0.54%: 0.61% 0.69% 0.83% 1.00%: :Portfolio Yield 0.55% 0.57% 0.57% 0.65%: 0.72% 0.79% 0.81% 02L-1 0.95% 1.07% 1.16% 1.25%: I-----------------------------------------------'-----------------------------------------------'----------------- Fiscal Year 2017-2018 Fiscal Year 2018.2019 Fiscal Year 2019.2020 : Dec-17 Mar-18 Jun-18 Sep-18 : Dec-18 Mar-19 Jun-19 Sep-19 : Dec-19 Mar-20 Jun-20 Sep-20 : I Market Sector: Avg Avg Avg Avg_- -__Avg Avg Avg Avg Avg Avg Avg Avg Fed Funds(effective) 1.30% 1.67% 1.90% 2.15%1 2.40% 2.41% 2.37% 1.90%: 1.56% 0.02% 0.08% 0.09%: :3-Month U.S.T-Bill 1.32% 1.71% 1.92% 2.20%: 2.36% 2.39% 2.09% 1.82%: 1.55% 0.09% 0.14% 0.10%: :2-Year U.S.T-Note 1.84% 2.27% 2.53% 2.57%: 2.49% 2.26% 2.10% 1.76%: 1.57% 0.25% 0.15% 0.13%: Portfolio Benchmark* 1.20% 1.46% 1.75% 2.05%: 2.33% 2.48% 2.00% 1.80%: 1.55% 0.33% 0.18% 0.13%; :Portfolio Yield 1_29% 1.42% 1.58% 1.73: 2.01% 2.20% 2.20% 2.08%: 1.96%: 1.62% 1.31% 0.94%: -----------------------------------l----------------------------------------------------------l-----------------------------------i *Twelve month moving average of a one year U.S.T-bill yield FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 3.00% 2.00% - - 1.00% -- 0.00 Dec- Mar-Jun-16 Sep- Dec- Mar-Jun-17 Sep- Dec- Mar-Jun-18 Sep- Dec- Mar-Jun-19 Sep- Dec- Mar-Jun-20 Sep- 20 t Fed Funds -3-Month T-Bill 2-Year T-Note Portfolio Yield Portfolio Benchma : :-------------------------------------------------------- ----------------------- Fiscal Year to Date Earnings ------------------------------------------------------------------------------------------------------------------------------------------------ 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter :Fiscal Year: 3 Months 6 Months 9 Months 12 Months :----------+-----------------------+-----------+-----------------------+-----------+-----------------------+------------------------------------+ :2019-2020 $ 2,982,157; $ 5,750,078; $ 7,712,197; $ 9,296,855; :2018-2019 I $ 2,955,835: I $ 6,122,536: I $ 9,262,499: I$ 12,354,692: :2017-2018 $ 2,138,420 $ 4,317,890 $ 6,515,166 $ 8,955,045 :2016-2017 $ 1,175,753; $ 2,763,135; $ 4,734,315; $ 6,999,226 :2015-2016 $ 849,369 $ 1,771,206 $ 2,743,857 $ 3,961,973 :QUARTERLY COMMENTARY ----------------4-----------------------------------------------------------------------------------------------------------------------------------------------= :0913012020 :The portfolio was in compliance with the City's Investment Policy during the fourth quarter. In July,there were four maturities Source: Hilltop Securities Asset totaling$35 million along with$25 million in purchases. In August,there were five maturities totaling$34.7 million with Management Economic Summary :purchases totaling$15 million. During September,three investments matured totaling$30 million and two new investments :were purchased totaling$20 million.The portfolio's weighted average yield remains higher than the benchmark 12-month :Treasury bill index by 81 basis points.Investments and deposits with daily liquidity was 37.43%. Fed officials,as expected,left ;their monetary policy unchanged at the September FOMC meeting.The committee pledged to seek maximum employment,and maintain its accommodative policy stance until inflation is averaging moderately above its+2.0%target for some time.Staff will continue to monitor the investment portfolio and ensure compliance with the City's Investment Policy and the Public Funds Investment Act. 207 Monthly Reports Portfolio Management Page 1 Portfolio Details - Investments September 30, 2020 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 9128283Q1 4011 U.S.TREASURY 02/04/2019 5,000,000.00 5,027,345.00 4,992,720.42 2.000 2.517 106 01/15/2021 9128285X4 4016 U.S.TREASURY 04/10/2019 15,000,000.00 15,118,365.00 15,006,478.95 2.500 2.366 122 01/31/2021 91282831-2 4022 U.S.TREASURY 05/31/2019 5,000,000.00 5,017,970.00 4,997,013.17 1.875 2.173 75 12/15/2020 9128283X6 4024 U.S.TREASURY 05/31/2019 10,000,000.00 10,079,300.00 10,003,761.48 2.250 2.146 137 02/15/2021 912828S27 4026 U.S.TREASURY 06/17/2019 10,000,000.00 10,075,000.00 9,949,017.14 1.125 1.826 272 06/30/2021 9128283X6 4033 U.S.TREASURY 07/31/2019 10,000,000.00 10,079,300.00 10,012,029.18 2.250 1.922 137 02/15/2021 9128283X6 4039 U.S.TREASURY 09/12/2019 10,000,000.00 10,079,300.00 10,017,428.46 2.250 1.775 137 02/15/2021 912828Y20 4040 U.S.TREASURY 09/12/2019 10,000,000.00 10,196,880.00 10,070,068.36 2.625 1.715 287 07/15/2021 9128283X6 4042 U.S.TREASURY 09/17/2019 10,000,000.00 10,079,300.00 10,014,698.68 2.250 1.849 137 02/15/2021 912828RC6 4043 U.S.TREASURY 09/17/2019 10,000,000.00 10,174,220.00 10,028,652.18 2.125 1.788 318 08/15/2021 9128281358 4046 U.S.TREASURY 11/01/2019 5,000,000.00 5,033,205.00 5,007,716.77 2.125 1.654 122 01/31/2021 912828Y20 4047 U.S.TREASURY 11/25/2019 5,000,000.00 5,098,440.00 5,036,651.14 2.625 1.675 287 07/15/2021 91282821`6 4048 U.S.TREASURY 11/25/2019 5,000,000.00 5,044,920.00 4,975,827.88 1.125 1.664 334 08/31/2021 9128285F3 4049 U.S.TREASURY 11/25/2019 4,000,000.00 4,113,436.00 4,049,692.26 2.875 1.653 379 10/15/2021 9128285A4 4053 U.S.TREASURY 01/08/2020 5,000,000.00 5,124,610.00 5,054,774.69 2.750 1.581 349 09/15/2021 9128283X6 4064 U.S.TREASURY 03/02/2020 10,000,000.00 10,079,300.00 10,041,436.39 2.250 1.133 137 02/15/2021 Subtotal and Average 129,274,646.18 129,000,000.00 130,420,891.00 129,257,967.15 1.860 197 Federal Agency Issues-Coupon 3133EJT74 4006 FFCB 12/12/2018 7,500,000.00 7,744,577.40 7,516,804.56 3.050 2.840 410 11/15/2021 3133EJ4Q9 4009 FFCB 02/04/2019 5,000,000.00 5,033,548.10 4,999,827.83 2.550 2.562 102 01/11/2021 3133EKAUO 4013 FFCB 02/21/2019 10,000,000.00 10,674,111.20 9,999,422.22 2.570 2.572 1,054 08/21/2023 3133EKBV7 4015 FFCB 03/01/2019 10,000,000.00 10,337,048.00 9,999,303.21 2.550 2.555 516 03/01/2022 3133EJJD2 4019 FFCB 05/07/2019 15,000,000.00 15,182,785.20 15,015,484.88 2.540 2.332 186 04/05/2021 3133EKHA7 4023 FFCB 05/31/2019 5,000,000.00 5,023,913.15 5,002,202.70 2.400 2.184 76 12/16/2020 3133ELDU5 4054 FFCB 01/08/2020 10,000,000.00 10,171,325.60 10,000,870.22 1.580 1.572 438 12/13/2021 3133ELHR8 4056 FFCB 01/31/2020 10,000,000.00 10,187,819.80 10,020,256.34 1.600 1.442 477 01/21/2022 3133ELZE7 4072 FFCB 05/14/2020 10,000,000.00 9,999,901.60 9,999,375.22 0.160 0.167 315 08/12/2021 3133ELZN7 4076 FFCB 05/28/2020 5,000,000.00 4,999,437.35 4,991,443.03 0.160 0.265 594 05/18/2022 313376XNO 4029 FHLB 07/12/2019 3,945,000.00 3,972,935.14 3,946,823.48 2.100 1.966 130 02/08/2021 313382K69 4030 FHLB 07/12/2019 10,000,000.00 10,072,743.60 9,990,769.33 1.750 1.960 162 03/12/2021 3130AEWA4 4041 FHLB 09/12/2019 10,000,000.00 10,000,000.00 10,000,000.00 2.625 1.819 0 10/01/2020 3130A1W95 4063 FHLB 03/02/2020 10,000,000.00 10,146,740.60 10,085,239.65 2.250 1.011 253 06/11/2021 3130ABCYO 4067 FHLB 03/16/2020 10,000,000.00 10,312,914.80 10,221,249.94 1.955 0.069 642 07/05/2022 3130AJGL7 4068 FHLB 04/02/2020 5,000,000.00 5,009,967.65 5,000,000.00 0.320 0.320 365 10/01/2021 3130AHSR5 4070 FHLB 04/16/2020 10,000,000.00 10,182,894.60 10,157,720.20 1.625 0.327 445 12/20/2021 3134G9HB6 4027 FHLMC 06/17/2019 10,080,000.00 10,171,610.67 10,058,275.70 1.570 1.921 228 05/17/2021 3134GVJ66 4078 FHLMC 06/15/2020 5,000,000.00 5,006,903.70 4,998,382.47 0.250 0.269 615 06/08/2022 Portfolio CITY Data Updated:SET_MO: 10/29/2020 18:05 AP Run Date:10/29/2020-18:08 208 PM(PRF_PM2)7.3.0 Report Ver.7.3.6.1 Monthly Reports Portfolio Management Page 2 Portfolio Details - Investments September 30, 2020 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 3135GOU84 4001 FNMA 11/30/2018 10,000,000.00 10,022,481.20 10,000,117.68 2.875 2.859 29 10/30/2020 3135GOS38 4066 FNMA 03/16/2020 10,000,000.00 10,238,385.40 10,163,551.93 2.000 0.693 461 01/05/2022 313500027 4071 FNMA 05/14/2020 10,000,000.00 10,124,737.00 10,125,062.61 2.500 0.152 194 04/13/2021 Subtotal and Average 195,659,234.96 191,525,000.00 194,616,781.76 192,292,183.20 1.476 352 Municipal Bonds-Coupon 727199XZ9 4074 PLANOISD-BLDG 05/22/2020 4,000,000.00 4,071,920.00 4,070,902.81 5.000 0.231 137 02/15/2021 882724SY4 4083 TEXAS STATE GENERAL OBLIGATION 09/02/2020 10,000,000.00 10,342,600.00 10,340,855.03 4.000 0.211 329 08/26/2021 Subtotal and Average 14,088,755.98 14,000,000.00 14,414,520.00 14,411,757.84 0.217 275 Commercial Paper Disc.-Amortizing 07287CM17 4086 BAYLOR SCOTT 09/22/2020 10,000,000.00 9,997,870.00 9,997,288.89 0.160 0.162 61 12/01/2020 13068BGB7 4084 State of California 08/20/2020 5,000,000.00 4,999,950.00 5,000,000.00 0.000 48 11/18/2020 78009AL69 4058 RBC 02/13/2020 5,000,000.00 4,998,625.00 4,992,150.00 1.570 1.631 36 11/06/2020 89233GN69 4079 TOYOTA MOTOR CREDIT 07/10/2020 5,000,000.00 4,993,840.00 4,996,093.06 0.290 0.294 97 01/06/2021 89233GNS1 4080 TOYOTA MOTOR CREDIT 07/29/2020 10,000,000.00 9,985,130.00 9,989,925.00 0.310 0.315 117 01/26/2021 09657TJF1 4085 University of North Carolina 08/31/2020 10,000,000.00 9,999,700.00 10,000,000.00 0.000 60 11/30/2020 Subtotal and Average 49,637,189.26 45,000,000.00 44,975,115.00 44,975,456.95 0.320 73 Local Govt Investment Pools SYS3996 3996 LOCAL GOVT INV POOL-TEXPOOL 25,000,000.00 25,000,000.00 25,000,000.00 0.153 0.153 1 SYS3641 3641 LOCAL GOVT INV POOL-TEXSTAR 190,372,945.78 190,372,945.78 190,372,945.78 0.116 0.116 1 Subtotal and Average 171,918,264.17 215,372,945.78 215,372,945.78 215,372,945.78 0.120 1 Demand Deposits SYS3706 3706 DEMAND DEPOSITS- WELLS FARGO 4,082,691.29 4,082,691.29 4,082,691.29 0.250 0.250 1 SYS4082 4082 DEMAND DEPOSITS- WELLS FARGO 07/23/2020 7,620,136.03 7,620,136.03 7,620,136.03 0.000 1 Subtotal and Average 10,811,377.83 11,702,827.32 11,702,827.32 11,702,827.32 0.087 1 Total and Average 571,389,468.38 606,600,773.10 611,503,080.86 608,013,138.24 0.935 165 Portfolio CITY Data Updated:SET_MO: 10/29/2020 18:05 AP Run Date:10/29/2020-18:08 209 PM(PRF_PM2)7.3.0 Monthly Reports Portfolio Management Page 3 Portfolio Details - Cash September 30, 2020 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 571,389,468.38 606,600,773.10 611,503,080.86 608,013,138.24 0.935 165 Portfolio CITY Data Updated:SET_MO: 10/29/2020 18:05 AP Run Date:10/29/2020-18:08 210 PM(PRF_PM2)7.3.0 FY 20/ 21 Council Requests Open Requests Requests Answered by Department FY All Time Request Volume by 1/21 Council Person Paul Meltzer Deb Armntor Community Svcs John Ryan Environmental Svcs Jesse Davis Public Works Mayor Gerard Hudspeth Utilities Birdia Johnson CMO Connie Baker Library 30% Legal 0 1 2 3 4 5 Fire Police Tech Services Airport Requests • _ by Quarter Public Affairs Customer Svc Economic Development 200 159 Development Svcs Finance 100 24 Audit Municipal Court 0 Procurement Paul Meltzer • Deb Armintor • John Ryan 01 20Q1 02 20/21 03 20!21 04 20121 Real Estate • Jesse Davis • Mayor Gerard Hudspeth Risk Birdia Johnson • Connw Baker Other 0 5o 100 150 Total •en Elected Official - Some requests involve multiple departments,causing the Requeststotal requests by department to add up higher than the Submit New 211 total request count 1 Request Council Requests for Information Council Member Requestor�-, lEate Summary of Request Staff Assigned Department ON", 1 Council Member Meltzer 01/03/21 Can staff look into a concern with a business parking a vehicle advertising on the Square? Stephanie Berry Legal Information will be provided in a future Friday Report 2 Mayor Pro Tern Davis 01/07/21 Do we know when Georgetown Dr.will be repaired after the recent utility work there? Antonio Puente Wastewater Information will be provided in the January 15 Friday Report 3 Council Member Armintor 01/08/21 What would it take for the City to become an Bird City Texas? Katherine Barnett Environmental Services Information will be provided in a future Friday Report 4 Council Member Armintor 01/10/21 Can staff clarify when building permits are needed for the properties included in the NAA? Scott McDonald Development Services Information will be provided in a future Friday Report 5 Council Member Meltzer 01/11/21 Can staff provide information regarding the COVID-19 wastewater testing that is included in an Antonio Puente Wastewater Information will be provided in the January 15 Friday Report email from resident 6 Council Member Armintor 01/11/21 Can staff provide information regarding the COVID-19 wastewater testing that is included in an Antonio Puente Wastewater Information will be provided in the January 15 Friday Report email from resident 7 Council Member Armintor 01/11/21 Was the MLK,Jr.Rec Center closed on Sunday during the cold weather? Gary Packan Public Works-Parks Information will be provided in a future Friday Report 8 Mayor Pro Tern Davis 01/12/21 Can we look at ways to make the center turn lane on Malone more safe?Specifically how to keep Brian Jahn Public Works-Traffic Information will be provided in a future Friday Report folks from using it as a passing lane? Mayor Hudspeth 01/14/21 Would staff support and are there funds for a protected bike lane-from the Katy trail to Teasley Gary Packan Public Works-Parks Information will be provided in a future Friday Report 9 street? I believe the street is wide enough to support this modification. This would move the city towards the plan to connect to the South lakes park&move towards connecting Township II to the Rail Trail. 10 Council Member Meltzer 01/15/21 Does staff feel there would be merit to requiring asbestos surveys in residential demolitions and why Scott McDonald Development Services Information will be provided in a future Friday Report or why not 212 January 2021 1 2 New Year's Day Holiday 3 4 5 6 7 8 9 9:00 amCOECancelled 3:00 pm CC Work Session No-2:30pm Agenda 6:30 pm CC Regular Committee 12:00pm Council Se ssion Lune he on 5:00pm P&Z Work Session 6:30pm P&Z Regular Session 10 11 12 13 14 15 16 9:00 am PUB Sp e c is 1 C a lle d Council TIItZ2 1 lam 3:00 pm 11:OO pro-AAB Cancelled—Traffic Safety Cancelled-11:30 a.m EDPB 12pm Cancelled-2:30pm HLC 3pm Agenda Committee Cancelled-5:30 pm-AAB 17 18 e19 20 21 22 23 o Council Meeting 9:00amIVbb>iityCommittee MLK Day Aeting—Canceled 3:00pmCoPwD Holidayivil Service Comm :30p m Cancelled-2:30pm Agenda committee 4:30pm P&Z Work Session 6:30pm P&Z Regular Session 24 25 26 27 28 29 30 9:00 am PUB 10:00 am-CAC 12:00 p.m TIRZ No.1 3:00 pm Board ofEthics Mg 2:00 pm 4th Tuesday Se ssion 31 213 February 2021 M III - . 1 2 3 4 5 6 9:00 am COE 10:00 am Community 8:30 a.m.DEDC Engagement N eting 12:00 pm Bond Conniuttee 11:30 am Council 2:00 pm CC Work Session Luncheon 6:30 pm CC Regular Se ssion 7 8 9 10 11 12 13 9:00 am PUB 2:00 p m 2n d Tu e sd a y 11:00 a.m.EDPB 3:30 p.m.Library Board Se ssion 2:30 pm Audit/Finance 5:30 pm-AAB 14 15 16 17 18 19 20 2:00 pm CC Work Session 9:00amIvbb>ilityConmittee 6:30 pm CC Regular Aeting Se ssion Animal Shelter Advisory 2pm 21 22 23 24 25 26 27 9:00 am PUB 10:00 am-CAC 3:00 pm Board ofEthics 2:00 pm 4th Tuesday Se ssion 28 214 March 2021 EMISSION MM" 1 2 3 4 5 6 9:00 am COE 2:00 pm CC Work Session 11:30 am Traffic Safety 8:30 a.m.DEDC 6:30 pm CC Regular Conumssion Se ssion 11:30 am Council 10:00 am Community Luncheon Engagement 7 8 9 10 11 12 13 9:00 am PUB No Council Mee tin g 11:00 a.m.EDPB 3:30 p.m Library Board 5:30 pm-AAB 14 15 16 17 18 19 20 2:00 pm CC Work Session 9:00 am Ivbbii ity Conmuttee 3:00 pm CoPwD 6:30 pm CC Regular Nteting Se ssion 9:00 Community Partnership Committee 21 22 23 24 25 26 27 9:00 am PUB 10:00 am-CAC 12:00 p.m TIRZNo.1 2:00 pm 4th Tuesday Se ssion 28 29 30 31 o Council Meeting 215 Cityof Denton City Hall 215 E. McKinney St. Denton,Texas 76201 www.cityofdenton.com DENTON Meeting Agenda City Council Tuesday,January 26,2021 2:00 PM Council Work Session Room Special Called Meeting WORK SESSION BEGINS AT 2:00 P.M.IN THE COUNCIL WORK SESSION ROOM CITY COUNCIL CONSIDERATION OF THE CONSENT AGENDA AND ITEMS FOR INDIVIDUAL CONSIDERATION WILL BEGIN IMMEDIATELY FOLLOWING THE WORK SESSION IN THE COUNCIL WORK SESSION ROOM Note: Mayor Gerard Hudspeth and Council Members Birdia Johnson, Connie Baker, Jesse Davis, John Ryan, Deb Armintor and Paul Meltzer will be participating in the work session, closed meeting and the meeting via video/teleconference. REGISTRATION GUIDELINES FOR ADDRESSING THE CITY COUNCIL Due to COVID-19 precautions, members of the public will not be able to attend the January 26, 2021, City Council meeting in-person. To accommodate and receive input on agenda items, citizens will be able to participate in one of the following ways (NOTE: Other than public hearings, citizens are only able to comment one time per agenda item; citizens cannot use both methods to comment on a single agenda item. Public comments are not held for work session reports.): • Virtual White Card — On January 22, the agenda was posted online at www.cityofdenton.com/publicmeetings. Once the agenda is posted, a link to the Virtual White Card, an online form, will be made available under the main heading on the webpage. Within this form, citizens may indicate support or opposition and submit a brief comment about a specific agenda item. Comments may be submitted up until the start of the meeting, at which time, the Virtual White Card form will be closed. Similar to when a citizen submits a white card to indicate their position on the item, these comment forms will be sent directly to City Council members and recorded by the City Secretary. City Council Members review comments received in advance of the meeting and take that public input into consideration prior to voting on an agenda item. The Mayor will announce the number of Comment Cards submitted in support or opposition to an item during the public comment period. Comments will not be read during the meeting. The City Secretary will reflect the number of comments submitted in favor/opposition to an item, the registrant's name, address, and (summary of) comments within the Minutes of the Meeting,as applicable. OR Page 1 Printed on 111512021 216 City Council Meeting Agenda January 26, 2021 • By phone — Citizens wishing to speak over the phone during this Council meeting, may call (940) 349-7800 beginning 30 minutes prior to the meeting start time. Comments by phone will be accepted until the item is opened for discussion by the Council. When the call is initially received, a staff member will receive the caller's information and either: 1) offer to call the citizen back when it is time for them to speak, or 2) record the caller's information, support or opposition, and comment. If the caller chooses to record their support or opposition, rather than speaking during the meeting, the Mayor will announce the number of comments submitted in support or opposition to the item. If the caller wishes to receive a call back, the voice of each caller will be broadcast into the meeting during the public commenting time of their desired agenda item. Individuals will be able to comment once per agenda item,no matter the method. • At regular meetings only, citizens can speak on any topic that is not on the agenda (Open Microphone). Alert the call taker if you wish to speak under the Open Microphone category. If you would like to give a public report, see the information below. After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, January 26, 2021, at 2:00 p.m. in the Council Work Session Room at City Hall, 215 E.McKinney Street,Denton,Texas at which the following items will be considered: WORK SESSION 1. Citizen Comments on Consent Agenda Items This section of the agenda allows citizens to speak on any item listed on the Consent Agenda prior to its consideration. Each speaker will be given a total of three (3) minutes to address any item(s). Any person who wishes to address the City Council regarding these items may do so by utilizing the "By Phone" registration process as referenced under the REGISTRATION GUIDELINES FOR ADDRESSING THE CITY COUNCIL detailed at the beginning of this agenda. Registration is required prior to the time the City Council considers this item. Registrants may call in and remain on hold or receive a call back at the time the Work Session is called to Order and are encouraged to ensure they remain accessible to accept the call. 2. Requests for clarification of agenda items listed on this agenda. 3. Work Session Reports A. ID 20-2117 Receive a report, hold a discussion, and give staff direction regarding an update to the City of Denton's COVID-19 response. B. ID 20-1668 Receive a report, hold a discussion, and give staff direction on plat review in the Extraterritorial Jurisdiction (ETJ) and possible updates to the Interlocal Agreement with Denton County. C. ID 20-2399 Receive a report, hold a discussion, and give staff direction regarding the 2021 May General and June Runoff elections(if any)including locations,dates, and times. D. ID 21-122 Receive a report, hold a discussion, and give staff direction regarding a proposed plan for the annual City Council retreat. E. ID 20-2095 Receive a report, hold a discussion, and give staff direction on pending City Council requests for information. Page 2 Printed on 111512021 217 City Council Meeting Agenda January 26, 2021 Following the completion of the Work Session, the City Council will convene in a Closed Meeting to consider specific item(s) when these items are listed below under the Closed Meeting section of this agenda. The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code,as amended,or as otherwise allowed by law. 1. Closed Meeting: A. ID 21-006 Deliberations regarding Real Property - Under Texas Government Code, Section 551.072; and Consultation with Attorneys Under Texas Government Code, Section 551.071. Receive information from staff, discuss, deliberate, and provide staff with direction pertaining to the potential disposal, exchange, sale, or acquisition of certain real property interests located in the David Hough Survey, Abstract Number 646, generally located in the 2100 block of South Mayhill Road, in the City of Denton, Denton County, Texas. Consultation with the City's attorneys regarding legal issues associated with the potential disposal, exchange, sale, or acquisition involving the real property described above where a public discussion of these legal matters would conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas, or would jeopardize the City's legal position in any negotiation, administrative proceeding,or potential litigation. B. ID 21-027 Deliberations regarding Real Property Under Texas Government Code Section 551.072; Consultation with Attorneys Under Texas Government Code Section 551.071. Receive information from staff, discuss, deliberate, and provide staff with direction pertaining to the potential acquisition of certain real property interests located in and around the J. Rogers Survey, Abstract Number 1084; the J. Withers Survey, Abstract 1343; the M. Rogers Survey, Abstract 1080; and the N. Britton Survey, Abstract Number 051, each in the City of Denton, Denton County, Texas where a public deliberation of such potential acquisitions would have a detrimental effect on the City's position in negotiations with third parties. Consultation with the City's attorneys regarding legal issues associated with the potential acquisitions involving the real property described above where a public discussion of these legal matters would conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas, or would jeopardize the City's legal position in any negotiation, potential administrative proceeding, or potential litigation. C. ID 21-108 Deliberations regarding Personnel Matters - Under Texas Government Code Section 551.074. Deliberate and discuss the evaluation, duties, discipline, dismissal, compensation, and/or contract of the Municipal Judge. Page 3 Printed on 111512021 218 City Council Meeting Agenda January 26, 2021 Any final action, decision, or vote on a matter deliberated in a Closed Meeting will only be taken in an Open Meeting that is held in compliance with Texas Government Code, Chapter 551, except to the extent such final decision, or vote is taken in the Closed Meeting in accordance with the provisions of Section 551.086 of the Texas Government Code (the `Public Power Exception'). The City Council reserves the right to adjourn into a Closed Meeting or Executive Session as authorized by Texas Government Code, Section 551.001, et seq. (The Texas Open Meetings Act) on any item on its open meeting agenda or to reconvene in a continuation of the Closed Meeting on the Closed Meeting items noted above, in accordance with the Texas Open Meetings Act,including,without limitation Sections 551.071-551.086 of the Texas Open Meetings Act. NOTE: Any item for which a formal action at the Special Called Meeting has been taken by Council may be subject to a request for a motion for reconsideration at any time during the meeting, at the Concluding Items Section, or after the meeting. In order to comply with the Texas Open Meetings Act, a request for a motion for reconsideration made during, at the end of, or after a Council meeting will be placed on the agenda and considered at the next official meeting of the City Council. Following the completion of the Closed Meeting, the City Council will convene in a Special Called Meeting to consider the following items: 1. CONSENT AGENDA Each of these items is recommended by Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Listed below are bids, purchase orders, contracts, and other items to be approved under the Consent Agenda (Agenda Items A — F). This listing is provided on the Consent Agenda to allow Council Members to discuss or withdraw an item prior to approval of the Consent Agenda. If no items are pulled, the Consent Agenda Items will be approved with one motion. If items are pulled for separate discussion, they may be considered as the first items following approval of the Consent Agenda. A. ID 21-101 Consider approval of the minutes of January 4,January 5,and January 12,2021. B. ID 21-009 Consider adoption of an ordinance of the City of Denton releasing, abandoning, and vacating a 715.20 square foot electric utility easement granted to the City of Denton by James H. Jones, H.M. Burgess, Billy R. Jones, and J. Dan Harvey, recorded as Instrument No. 1978-2348 in the Deed Records, Denton County, Texas; providing for severability and an effective date. (Park 7 Addition, electric easement abandonment - Mark Laird) C. ID 21-011 Consider adoption of an ordinance approving an encroachment agreement by and between the City of Denton and the Oncor Electric Delivery Company relating to the location of a city street "Taylor Park Boulevard" crossing, ten (10) foot wide sidewalk crossing, four (4) by two (2) foot RCB crossing, twenty-one (21) inch RCP crossing, eighteen (18) inch RCP crossing, eight (8) inch waterline crossing, eight (8) inch sanitary sewer crossing, and a Denton Municipal Electric line bore crossing within the Oncor Easement recorded in Volume 559, Page 570, Deed Records, Denton County, Texas; authorizing the City Manager to execute the agreement; authorizing the expenditure of funds; and providing an effective date. "Cambridge Brook Oncor Encroachment Page q Printed on 111512021 219 City Council Meeting Agenda January 26, 2021 Agreement-Mark Laird" D. ID 21-091 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or his designee, to execute an Interlocal Cooperative Purchasing Agreement with the City of Midlothian, under the Texas Government Code, Section 791.001, to authorize City of Denton contracts for the purchase of various goods and services; authorizing the expenditure of funds therefor; and declaring an effective date (File 7590- award an Interlocal Cooperative Purchasing Agreement with the City of Midlothian). E. ID 21-092 Consider adoption of an ordinance of the City of Denton authorizing the City Manager, or his designee, to accept the TSLAC CARES Grant Program-Cycle 2(Grant CAR2-21007) for State Fiscal Year 2021 (Federal Award Identification #LS-246561-OLS-20) from the Texas State Library and Archives Commission through the Institute of Museum and Library Services, in the amount of $20,929.00 for the period of April 1, 2020, through August 31, 2021; authorizing the City Manager to carry out all duties of the City pursuant to the grant; providing a savings clause; and providing an effective date. F. ID 21-119 Consider adoption of a resolution of the City Council of the City of Denton revising the City's Cash Disbursements policy; and providing an effective date. 2. ITEMS FOR INDIVIDUAL CONSIDERATION A. ID 20-2507 Consider adoption of an ordinance adopted concurrently with the cities of Garland, Greenville, Bryan and Denton, approving the execution by the Texas Municipal Power Agency ("Agency") of an asset purchase agreement for the sale of the Agency's Gibbons Creek Steam Electric Station and related assets in Grimes County, Texas; approving an associated decommissioning budget amendment; and providing an effective date. B. ID 21-090 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or his designee, to execute a contract with Reliable Commercial Services LLC, for the construction of the Denton Street Rehabilitation Project for the City of Denton; providing for the expenditure of funds therefor; and providing an effective date (IFB 7495 - awarded to Reliable Commercial Services LLC,in the not-to-exceed amount of$10,933,808.55). C. ID 20-1635 Consider approval of a resolution of the City Council of the City of Denton, Texas, approving the Economic Development Strategic Plan; and providing an effective date. D. ID 20-1898 Consider nominations and appointments to the Downtown Denton Tax Increment Financing Reinvestment Zone No. One Board (Downtown TIRZ), including appointment of a Board Chair. E. ID 20-2550 Consider nominations/appointments to the City's Economic Development Partnership Board. F. ID 21-029 Consider nominations/appointments to the City's Boards, Commissions, and Committees: Animal Shelter Advisory Committee, Community Development Advisory Committee, Health & Building Standards Commission, Human Services Advisory Committee, Traffic Page 5 Printed on 111512021 220 City Council Meeting Agenda January 26, 2021 Safety Commission, and Zoning Board of Adjustment. 3. CONCLUDING ITEMS A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. B. Possible Continuation of Closed Meeting topics,above posted. CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas,on the 22nd day of January,2021 at CITY SECRETARY NOTE: THE CITY OF DENTON'S DESIGNATED PUBLIC MEETING FACILITIES ARE ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE ACCOMMODATION, SUCH AS SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED, IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 940-349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO THAT REASONABLE ACCOMMODATION CAN BE ARRANGED. Page 6 Printed on 111512021 221 FUTURE WORK SESSION ITEMS MATRIX As of January 15,2021 Meeting Date Currently Slated Work Session Items 2021 19-Jan 2021 No Meeting 72021 May General&June R7times COVID-19 Update ETJ Updatelections-locations,dates, l Retreat Council Requests 26-Jan 2021 20-2117 20-16680-2399 20-2095 1-Feb 2021 Police Department Overview Policy for Naming of Parks Council Requests Luncheon 20-2354 20-2320 20-2271 Feb 1 Affordable Housing Assessment Report Tax Housing Credit Council Requests 2-Feb 2021 20-1844 21-093 20-2272 Feb 2 Economic Development Strategic Plan Stormwater Master TIRZ Study and Funding Options Council Requests 9-Feb 2021 20-1661 20-2182 21-124 20-2273 Feb 9 Fund Balance Policy(General Fund, Loop 288 Building Agreement Delegated Authority 20-21 Utilities Budget and Rates Internal Service Fund,Utilities Council Requests 16-Feb 2021 21-056 TBD 20-2261 20-2394 20-2274 Feb 16 Internal Audit-Utility Payment Capital Project CIP Update Assistance Program Legislative Update Council Requests 23-Feb 2021 20-2531 20-2554 21-080 20-2275 Feb 23 1-March 2021 Joint DISD Meeting Council Requests Luncheon TBD 20-2385 Marl COVID-19 Update Mar.2 Mosquito Abatement Policy Council Requests 2-March 2021 20-1886 TBD 20-2386 Mar 2 9-March 2021 No Meeting Parkland Dedication&Development Ordinance Council Requests 16-March 2021 21-109 20-2387 Mar 16 Council Requests 23-March 2021 20-2388 Mar 23 30-March 2021 No Meeting Accessory Dwelling Units,and Screening Economic Development Incentive C DCA19-0011 Construction Code Review(TBD) 20-2529 July 27 C lE a � C C � Public Art Right-of-Way Ordinance Follow-up DME Solar Programs O ar 41 LA to 0 Redistricting Update Hartlee Field PID cu H June/July 2021 20-1789 Group Home Code Amendment Y s_ O 222 Street Closure Report IMPROVING "TM Upcoming Closures F)FNT(CIN OF DENTON Week of January 18,2021 -January 24,2021 Street/Intersection From To Closure Closure Description Department Upcoming Public Other partme Start Date End Date Info/Notes Meeting Communication Contac Water Distribution will be Email Notification,Direct Bell Ave at Mckinney St 07/08/21 09/04/21 installing a new water main line Water business contact,N/A (940)349-7278 and services. Water Distribution will be Email Notification,Direct Bell Ave at Mingo Rd 06/22/21 07/07/21 installing a new water main line Water business contact,N/A (940)349-7278 and services. Water Distribution will be Email Notification,Direct Bell Ave Withers St Mingo Rd 05/10/21 06/21/21 installing a new water main line Water business contact,N/A (940)349-7278 and services. Water Distribution will be Email Notification,Direct Bell Ave Texas St Withers St 04/15/21 05/07/21 installing a new water main line Water business contact,N/A (940)349-7278 and services. Administratio Water Distribution will be Email Notification,Direct Bell Ave n Dr Texas St 03/18/21 04/14/21 installing a new water main line Water business contact,N/A (940)349-7278 and services. Curb and Gutter Repair.The process starts with Barricading Carmel St Hobson El Paseo 02/08/21 04/09/21 the failed sections of,Curb and Streets N/A (940)349-7146 Gutter remove and install Curbs. Laying new waterline to the Highland Park Bonnie Brae Jasmine 01/25/21 02/03/21 along Highland Park towards Engineering NextDoor (940)268-8946 Bonnie Brae Wastewater Collections will be Precision Dr Airport Rd 1500'north 01/20/21 02/15/21 installing a new wastewater Wastewater main and services. Total 7 Upcoming Closures 223 Street Closure Report IMPROVING Current Closures � /-///(DFNI 11DENTON Week of anuar 18 2021 - anuar 24 2021 \\ January � January r�'I Street/Intersection FromW Closure Closure Description Department Upcoming Public Other epartment Start Date End Date Info/Notes Meeting Communication Contact Georgetown Wastewater Collections will be Amherst Dr Dr Hinkle Dr 09/28/20 01/19/21 installing a new wastewater Wastewater N/A (940)349-8909 main line and services. Administratio Water Distribution will be Email Notification,Direct Bell Ave Chapel Dr n Dr 02/01/21 03/18/21 installing a new water main line Water business contact,N/A (940)349-7278 and services. Water Distribution will be Email Notification,Direct Bell St University Dr Chapel Dr 12/14/20 01/29/21 installing a new water main line Water business contact,N/A (940)349-7278 and services. North South Water Main Phase Engineering, Temporary Flagging in Bonnie Brae IH 35E Scripture 06/15/20 03/01/21 3 Water all lanes for pipe Direct business contact (940)349-8938 delivery. Concrete Street Panel Repair. The process starts with Brinker Colorado 1-35 Service 01/19/21 01/29/21 Barricading the failed sections Streets N/A (940)349-7146 Blvd. Rd of concrete pavement,remove the pavement,and install new concrete. Raintree Riverchase Wastewater Collections will be Creekdale Dr Way Trl 12/09/20 02/20/21 installing a new wastewater Waste Water N/A (940)349-8909 main and services. Elm Hickory Prairie 05/11/20 02/26/21 PEC 4 Utility Project Engineering Direct business contact (940)349-8938 Water Distribution will be Fannin St Welch St Bernard St 12/21/20 01/28/21 installing a new water main line Water N/A (940)349-7278 and services. Infrastructure Safety Upgrades Ft.Worth Dr.(US 377) IH 35E FM1830 10/17/19 02/01/21 &New Sewer Main Install TxDOT (940)349-8938 (temporary closures) Widening of Hickory Creek road from Teasley to FM 2499 with Hickory CreeK Road Teasely FM 2499 10/06/20 02/16/21 an acceleration lane being Engineering NextDoor,Email (940)349-7426 constructed on FM 2499. Notification Project also included drainage upgrades. Current Closures 224 Street/Intersection From To Closure Closure Description Department Upcoming Public Other Department Start Date End Date Info/Notes Meeting Communication Contact Scheduling conflict with Install new curb and gutter.Mill concrete contractor so Daugherty off old pavement and install we move the start date Johnson Street Street Smith Street 10/26/20 01/25/21 new asphalt to match the grade Streets to 10-26-20.80/o Door hangers (940)349-7146 of the new inlets. complete the surface course still needs to be installed. Concrete Street Panel and Sidewalk Repair.The process March Rail Cat Tail Heron Pond 01/11/21 02/12/21 starts with Barricading the failed Streets N/A (940)349-7146 sections of concrete pavement, remove the pavement,and install new concrete. Street Reconstruction Remove and replace curb and Mistywood Lane Woodhaven Jamestown 10/01/20 02/12/21 gutter as needed. Streets N/A (940)349-7146 Remove old asphalt and stabilize subgrade. Install asphalt pavement Prairie Elm Pierce 06/01/20 03/26/21 PEC 4 Utilities Engineering NextDoor,Direct (940)349-8938 business contact Storm drain improvements,as Prairie St. Locust St. Elm St. 03/23/20 03/26/21 part of Pec-4 Ph 1&2 Engineering Direct business contact (940)349-8938 Project. Street closed to thru traffic. Concrete Street Panel and Sidewalk Repair.The process Purdue Drexel Syracuse 01/11/21 02/12/21 starts with Barricading the failed Streets N/A (940)349-7146 sections of concrete pavement, remove the pavement,and install new concrete. Wastewater Collections will be Riverchase Trl Stoneway Dr Waterside PI 12/09/20 02/20/21 installing a new wastewater Waste Water N/A (940)349-8909 main and services. Contractor will be demoing the existing drainage and roadway and then installing drainage improvements across Ryan RD at the Hunter's Creek area. Public Works Ryan Rd Roxbury St FM 2181 01/04/21 02/05/21 They will also be installing a Inspections, NextDoor,Email (940)268-9842 new water line to the property Private Notification and then repaving this section Development of road. Message boards to be put out on December 14th 2020. Current Closures 225 Street/Intersection From Closure Closure Description Department Upcoming Public Other Department Start Date End Date Info/Notes Meeting Communication Contact Waste Water, Greystar will be placing their Public Works Pushed back 2 weeks Spencer Road Bridges St. Mayhill Road 12/07/20 02/08/21 sanitary line along Spencer Rd Inspections, due to a delay with the Email Notification (940)391-6299 for the Elan Denton project. Private Sanitary Sewer install. Development W Windsor Dr 1-35 Winddosr 01/18/21 01/20/21 Stripping all lanes with new Public Works NextDoor,Email (940)231-9965 Frontage Rd Farms Dr signs. Inspections Notification Welch St. Eagle Highland 01/19/21 01/19/21 water tap for 811 S.Welch Water NextDoor,Email (940)349-7278 Notification Construction is set to begin on 8-20-20:Atmos Energy West Hickory Street between N. is currently relocating Welch Street and Carroll Blvd in gas line on the South September of 2020 and Atmos,Streets, side of W.Hickory continue through May of 2021. between Welch and Email Notification,Direct West Hickory Street Welch Carroll 08/31/20 05/29/21 Detailed lane closure Drainage,Water, Bernard.Once Atmos business contact (940)349-8425 information is forthcoming Waste Water finishes,the contractor pending approval of the will mobilize into that contractor's phasing and traffic same area to begin control plans. construction. Public Works Western Blvd Airport Rd Jim Chrystal 12/21/20 03/31/21 Westpark Warehouse Phase 2 Inspections, Direct business contact (940)205-9230 Private Development Branch 08/24/20 08/16/21 Install utilities and road En NextDoor,Email Windsor Hanover Crossing reconstruction Engineering Notification (940)349 7426 Current Closures 226 Street/Intersection From To Closure Closure Description Department Upcoming Public Other Department Start Date End Date Info/Notes Meeting Communication Contact Windsor Stuart Longfellow 08/24/20 08/23/21 Installation of utilities and street Engineering NextDoor,Email (940)349-7426 reconstruction Notification Total 25 Current Closures 227 Street Closure Report IMPROVING �F Completed Closures F)F:'NlrlrocrN' �� i DENTON Week of anuar 18 2021 - anuar 24 2021 January -January Street/Intersection From To Closure Closure Description Department Upcoming Public Other Department Start Date End Date * Info/Notes Meeting Communication Contact Unite Private Networks,and Public Works Avenue C Chestnut Highland 12/14/20 12/18/20 sub-contractor Verticom, Inspections, Direct business contact (940)205-3779 Street Street temporarily closing street to Unite Private install fiber optic service. Networks This project is to add drainage North of upgrades and widen Hickory NextDoor,Email Barrel Strap Road Hickory Ocean Drive 09/07/20 01/04/21 Creek Road.It is also adding an Engineering Notification (940)349-7426 Creek Road acceleration lane to Barrel Strap Road. Wastewater Collections will be Bell Ave Texas St Withers St 11/19/20 12/08/20 installing a new wastewater Wastewater Email Notification (940)349-8909 main and services. Concrete Sidewalk and ADA Ramps Repair.The process Club House at Sombrero 11/30/20 12/23/20 starts with Barricading the failed Streets N/A (940)349-7146 sections of concrete Sidewalk, remove,and install new concrete Concrete Street Panel and Sidewalk Repair.The process Weeler Spainsh 12/07/20 01/15/21 starts with Barricading the failed Clydesdale Ridge Lane sections of concrete pavement, Streets N/A (940)349-7146 remove the pavement,and install new concrete. Public Works Collins Dallas Dr. Johnson St 07/20/20 11/30/20 Haven at Daugherty:Pavement Inspections, N/A (940)205-9230 Private Development Concrete Street Panel.The process starts with Barricading Como Lake Windriver Loon Lake 10/05/20 11/13/20 the failed sections of concrete Streets N/A (940)349-7146 pavement,remove the pavement,and install new concrete. Panhandle New Sewer Line&Water Public Works NextDoor,Email Crow St St Gober St 12/21/20 01/08/21 Services will be installed. Inspections Notification,Direct (940)231-9965 business contact Completed Closures 228 -M Street/Intersection From To Closure Closure Description Department Upcoming Public Other Department Start Date End Date M Info/Notes Meeting Communication Contact Concrete Street Panel and Sidewalk Repair.The process Diamond Poinsettia Cyrus Way 11/16/20 12/04/20 starts with Barricading the failed Streets N/A (940)349-7146 sections of concrete pavement, remove the pavement,and install new concrete. Doris McKamy Tripp Tr 10/26/20 11/20/20 Concrete Panel and Sidewalk Streets repair City of FM 2181 Denton/Cori Lillian Miller 11/18/19 11/30/20 Street Widening TxDOT (940)349-8425 nth City limits Water Distribution will be Foxcroft Cir Emerson Ln Emerson Ln 03/09/20 12/11/20 replacing the water main and Water Intermittent closures N/A (940)349-7278 water services. The road will be closed as a part of the 2019 Street Hercules N.Locust Stuart 08/01/20 11/01/20 construction bundle Project. Engineering NextDoor,Email (940)349-7426 Hercules is set to have Notification,Mail outs reconstruction of the curbs, gutters and the street. Intersection back of Intermittent closures of this NextDoor,Email Hidden Meadows Trail with Vintage Vintage blvd 03/16/20 01/01/21 intersection for construction Engineering (940)349-8938 Blvd right of way activities Notification Highland Park Jasmine st Bonnie Brae 12/03/20 12/17/20 boring a new water and sewer Public Works NextDoor,Email (940)268-8946 line under the KCS Railroad. Inspections Notification Completed about 90% Perform full depth base repairs of the work.Equipment Kings Row Marrianne 288 10/22/20 11/20/20 on Kings Rows. Streets issues so I'm extending N/A (940)349-7146 the project to the end of the week. Storm drain improvements as Locust St. Prairie Highland 03/09/20 01/01/21 part of Pec-4 Ph 1&2 Engineering Direct business contact (940)349-8938 Project.East Side In Closure Concrete Sidewalk Repair.The process starts with Barricading Merlot Riesing Pinot 10/26/20 11/06/20 the failed sections of concrete Streets N/A (940)349-7146 Sidewalk,remove,and install new concrete Mills Road N.Mayhill S.Trinity 11/30/20 12/11/20 Perform Asphalt Base Repairs Streets Equipment issues so Message Boards (940)349-7146 Road at various locations. and weather delays. Completed Closures 229 Street/Intersection From o Closure Closure Description Department Upcoming Public Other Departmen Start Date End Date Info/Notes Meeting Communication Contacl Intersection back of Intermittent closures of this Email Mockernut Rd. with Vintage Vintage 03/16/20 01/01/21 intersection for construction Engineering NextDoor, (940)349-8938 Blvd. Blvd.right of activities. Notification way Water Distribution will be Northcrest Rd Foxcroft Cir Emerson Ln 03/06/20 12/11/20 replacing the water main and Water N/A (940)349-7278 water services. Concrete Street Panel and Sidewalk Repair.The process Paddock Lipizzan English 12/14/20 01/07/21 starts with Barricading the failed Streets N/A (940)349-7146 Saddle sections of concrete pavement, remove the pavement,and install new concrete. Water Distribution will be Precision Airport Rd 1500ft north 10/12/20 12/18/20 installing a new water main and Water N/A (940)349-7278 services Curb and Gutter Repair.The process starts with Barricading Roberts N.Bell Brown 10/19/20 11/20/20 the failed sections of,Curb and Streets N/A (940)349-7146 Gutter remove and install Curbs. Roselawn Bonnie Brae Bernard 05/12/20 11/20/20 Bonnie Brae Phase 1 Engineering North Side lane closure NextDoor (940)349-8938 intersection back of Intermittent closure of the NextDoor,Email Shagbark Dr with Vintage Vintage Blvd 03/16/20 12/03/20 intersection for construction Engineering (940)349-8938 Blvd right of way activities. Notification Concrete Street Panel and Sidewalk Repair.The process Spring Creek Creek Bend Beechwood 10/05/20 12/18/20 starts with Barricading the failed Streets N/A (940)349-7146 sections of concrete pavement, remove the pavement,and install new concrete. NextDoor,Email Stuart Road North of South of Windsor wndsor 09/07/20 11/16/20 Street repairs Engineering Notification (940)349-7426 Road will be closed for paving Public Works Underwood McCormick Ave.B 11/09/20 01/04/21 and sidewalk construction for Inspections N/A (210)563-1599 the new Fire Station#3 Vintage Blvd US377 Hidden 10/23/20 11/20/20 Bonnie Brae Phase 2 Engineering 10/14/20 NextDoor,Public (940)349-8938 Meadows Trl Meeting(s) Windsor Stuart E.Sherman 09/07/20 12/22/20 This closure is to reconstruct Engineering NextDoor,Email (940)349-7426 Windsor Drive Notification Completed Closures 230 Street/Intersection From To Closure Closure Description Department Upcoming Public Other Department Start Date End Date Info/Notes Meeting Communication Contact Total 30 Completed Closures 231